1.2relating to state government; providing supplemental appropriations for
1.3higher education, jobs and economic development, public safety, corrections,
1.4transportation, environment, natural resources, and agriculture, kindergarten
1.5through grade 12 and adult education, health and human services; making
1.6forecast adjustments; modifying prior appropriations; modifying disposition of
1.7certain revenues; dedicating money to the Board of Trustees of the Minnesota
1.8State Colleges and Universities for compensation costs associated with
1.9settlement of employment contracts; dedicating certain funds for homeownership
1.10opportunities for families evicted or given notice of eviction due to a disabled
1.11child in the home; requiring the housing finance agency to improve efforts
1.12to reduce racial and ethnic inequalities in homeownership rates; creating an
1.13office of regenerative medicine development; modifying workforce program
1.14outcomes; creating job training programs; modifying workers' compensation
1.15provisions; providing funding for the Minnesota Racing Commission; providing
1.16a grant to the Mille Lacs Tourism Council; funding Peace Officer Standards
1.17and Training Board; modifying certain provisions pertaining to victims of
1.18domestic violence and sentencing for criminal sexual conduct; continuing the
1.19fire safety advisory committee; providing for disaster assistance for public
1.20entities when federal aid is granted and when federal aid is absent; establishing
1.21certain transportation oversight authority; modifying provisions for railroad
1.22and pipeline safety; modifying certain transportation provisions; providing
1.23compensation for bee deaths due to pesticide poisoning; establishing pollinator
1.24emergency response team; providing nonresident off-highway motorcycle
1.25state trail pass; requiring certain recycling; modifying solid waste reduction;
1.26regulating harmful chemicals in children's products; providing for state parks
1.27and trails license plates, and licensing and inspection of commercial dog and cat
1.28breeders; providing for invasive terrestrial plants and pests center; providing
1.29funding and policy modifications for early childhood, kindergarten through grade
1.3012, and adult education, including general education, education excellence,
1.31special education, facilities, nutrition, community education, self-sufficiency and
1.32lifelong learning, and state agencies; making changes to provisions governing
1.33the Department of Health, Department of Human Services, children and family
1.34services, continuing care, community first services and supports, health care,
1.35public assistance programs, and chemical dependency; modifying the hospital
1.36payment system; modifying provisions governing background studies and
1.37home and community-based services standards; setting fees; providing rate
1.38increases; establishing grant programs; modifying medical assistance provisions;
1.39modifying the use of positive support strategies and emergency manual restraint;
2.1providing for certain grants; defining terms; creating accounts; requiring reports;
2.2providing penalties; authorizing rulemaking;amending Minnesota Statutes 2012,
2.3sections 12.03, by adding subdivisions; 12.221, subdivision 4, by adding a
2.4subdivision; 12A.02, subdivision 2, by adding subdivisions; 12A.03, subdivision
2.53; 12A.15, subdivision 1; 13.46, subdivision 4; 13.643, subdivision 6; 13.7411,
2.6subdivision 8; 13.84, subdivisions 5, 6; 16A.28, by adding a subdivision;
2.718B.01, by adding subdivisions; 18B.03, by adding a subdivision; 18B.04;
2.884.788, subdivision 2; 85.053, subdivision 2; 85.34, subdivision 7; 85A.02,
2.9subdivision 2; 103G.271, subdivision 6; 115A.151; 115A.55, subdivision 4;
2.10115A.551, subdivisions 1, 2a; 115A.557, subdivisions 2, 3; 115E.01, by adding
2.11subdivisions; 115E.08, by adding subdivisions; 116.9401; 116.9402; 116.9403;
2.12116.9405; 116.9406; 116L.98; 121A.19; 122A.40, subdivision 13; 122A.41,
2.13subdivision 6; 122A.415, subdivision 1; 123A.05, subdivision 2; 123A.485;
2.14123A.64; 123B.71, subdivisions 8, 9; 124D.09, subdivisions 9, 13; 124D.111, by
2.15adding a subdivision; 124D.16, subdivision 2; 124D.522; 124D.531, subdivision
2.163; 124D.59, subdivision 2; 125A.76, subdivision 2; 126C.10, subdivisions 25,
2.1726; 127A.45, subdivisions 2, 3; 127A.49, subdivisions 2, 3; 129C.10, subdivision
2.183, by adding a subdivision; 144.0724, as amended; 144.551, subdivision 1;
2.19165.15, subdivision 2; 169.826, by adding a subdivision; 169.8261, by adding a
2.20subdivision; 169.86, subdivision 5; 169.863, by adding a subdivision; 169.865,
2.21subdivisions 1, 2, by adding a subdivision; 169.866, subdivision 3, by adding
2.22a subdivision; 174.24, by adding a subdivision; 176.129, subdivisions 2a,
2.237; 176.135, subdivision 7; 176.136, subdivision 1a; 176.231, subdivision 2;
2.24176.305, subdivision 1a; 179.02, by adding a subdivision; 181A.07, by adding
2.25a subdivision; 219.015, subdivisions 1, 2; 243.167, subdivision 1; 245C.03, by
2.26adding a subdivision; 245C.04, by adding a subdivision; 245C.05, subdivision
2.275; 245C.10, by adding a subdivision; 245C.33, subdivisions 1, 4; 252.451,
2.28subdivision 2; 254B.12; 256.01, by adding a subdivision; 256.9685, subdivisions
2.291, 1a; 256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a, 3b, 6a, 8, 8a,
2.309, 10, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752, subdivision
2.312; 256B.04, by adding a subdivision; 256B.0625, subdivision 30; 256B.0751,
2.32by adding a subdivision; 256B.199; 256B.35, subdivision 1; 256B.441, by
2.33adding a subdivision; 256B.5012, by adding a subdivision; 256I.04, subdivision
2.342b; 256I.05, subdivision 2; 256J.49, subdivision 13; 256J.53, subdivisions 1,
2.352, 5; 256J.531; 257.85, subdivision 11; 260C.212, subdivision 1; 260C.515,
2.36subdivision 4; 260C.611; 299F.012, subdivisions 1, 2; 469.084, by adding
2.37a subdivision; 473.408, by adding a subdivision; 609.135, subdivision 2;
2.38609.3451, subdivision 3; 611A.06, by adding a subdivision; Minnesota Statutes
2.392013 Supplement, sections 16A.724, subdivision 2; 123B.53, subdivisions
2.401, 5; 123B.54; 123B.75, subdivision 5; 124D.11, subdivision 1; 124D.111,
2.41subdivision 1; 124D.165, subdivision 5; 124D.531, subdivision 1; 124D.65,
2.42subdivision 5; 124D.862, subdivisions 1, 2; 125A.0942; 125A.11, subdivision
2.431; 125A.76, subdivisions 1, 2a, 2b, 2c; 125A.79, subdivisions 1, 5, 8; 126C.05,
2.44subdivision 15; 126C.10, subdivisions 2, 2a, 2d, 24, 31; 126C.17, subdivisions
2.456, 7b, 9, 9a; 126C.44; 126C.48, subdivision 8; 127A.47, subdivision 7;
2.46145.4716, subdivision 2; 168.123, subdivision 2; 174.42, subdivision 2; 176.011,
2.47subdivision 15; 245.8251; 245A.03, subdivision 7; 245A.042, subdivision 3;
2.48245A.16, subdivision 1; 245C.08, subdivision 1; 245D.02, subdivisions 3, 4b,
2.498b, 11, 15b, 29, 34, 34a, by adding a subdivision; 245D.03, subdivisions 1, 2,
2.503, by adding a subdivision; 245D.04, subdivision 3; 245D.05, subdivisions 1,
2.511a, 1b, 2, 4, 5; 245D.051; 245D.06, subdivisions 1, 2, 4, 6, 7, 8; 245D.071,
2.52subdivisions 3, 4, 5; 245D.081, subdivision 2; 245D.09, subdivisions 3, 4a;
2.53245D.091, subdivisions 2, 3, 4; 245D.10, subdivisions 3, 4; 245D.11, subdivision
2.542; 256B.04, subdivision 21; 256B.056, subdivision 5c; 256B.0949, subdivision 4;
2.55256B.439, subdivisions 1, 7; 256B.441, subdivision 53; 256B.4912, subdivision
2.561; 256B.69, subdivision 34; 256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12,
2.5713, 15, 16, 17, 18, 23, 24, by adding subdivisions; 256N.22, subdivisions 1, 2,
2.584; 256N.23, subdivision 4; 256N.25, subdivisions 2, 3; 256N.26, subdivision 1;
3.1256N.27, subdivision 4; Laws 2008, chapter 363, article 5, section 4, subdivision
3.27, as amended; Laws 2009, chapter 83, article 1, section 10, subdivision 7; Laws
3.32010, chapter 189, sections 15, subdivision 12; 26, subdivision 4; Laws 2012,
3.4chapter 249, section 11; Laws 2012, chapter 263, section 1; Laws 2012, chapter
3.5287, article 2, sections 1; 3; Laws 2012, First Special Session chapter 1, article 1,
3.6section 28; Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter
3.785, article 1, sections 3, subdivisions 2, 5, 6; 4, subdivisions 1, 2, 3; 5; 13,
3.8subdivision 5; Laws 2013, chapter 86, article 1, sections 12, subdivision 3, as
3.9amended; 13; Laws 2013, chapter 108, article 1, section 24; article 3, section 48;
3.10article 7, section 49; article 14, sections 2, subdivisions 1, 4, as amended, 5, 6,
3.11as amended; 3, subdivisions 1, 4; 4, subdivision 8; 12; Laws 2013, chapter 114,
3.12article 3, section 4, subdivision 3; Laws 2013, chapter 116, article 1, section 58,
3.13subdivisions 2, 3, 4, 5, 6, 7, 11; article 3, section 37, subdivisions 3, 4, 5, 6, 8,
3.1411, 15, 20; article 4, section 9, subdivision 2; article 5, section 31, subdivisions
3.152, 3, 4, 8; article 6, section 12, subdivisions 2, 3, 4, 5, 6; article 7, section 21,
3.16subdivisions 2, 3, 4, 6, 7, 9; article 8, section 5, subdivisions 2, 3, 4, 10, 11, 14;
3.17article 9, sections 1, subdivision 2; 2; Laws 2013, chapter 117, article 1, sections
3.183, subdivisions 2, 3; 4; proposing coding for new law in Minnesota Statutes,
3.19chapters 18B; 19; 84; 85; 87A; 115E; 116; 116J; 123A; 123B; 124D; 129C; 144;
3.20144A; 168; 219; 299A; 347; 473; proposing coding for new law as Minnesota
3.21Statutes, chapter 12B; repealing Minnesota Statutes 2012, sections 115A.551,
3.22subdivision 2; 116J.997; 123B.71, subdivision 1; 175.006, subdivision 1; 175.08;
3.23175.14; 175.26; 176.1311; 176.136, subdivision 3; 176.2615; 176.641; 256.969,
3.24subdivisions 2c, 8b, 9a, 9b, 11, 13, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions
3.253, 4; Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7.
3.26BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:


3.29    Section 1. MINNESOTA STATE COLLEGES AND UNIVERSITIES;
3.30SETTLEMENT OF EMPLOYMENT CONTRACTS.
3.31$17,000,000 in fiscal year 2015 is appropriated from the general fund to the Board
3.32of Trustees of the Minnesota State Colleges and Universities for compensation costs
3.33associated with the settlement of employment contracts for fiscal year 2014. The board's
3.34appropriation base is increased by $14,000,000 in fiscal years 2016 and 2017.


3.37    Section 1. Laws 2013, chapter 85, article 1, section 4, subdivision 1, is amended to read:

3.38

Subdivision 1.Total Appropriation

$

58,748,000

$

42,748,000

3.39The amounts that may be spent for each
3.40purpose are specified in the following
3.41subdivisions.
4.1Unless otherwise specified, this appropriation
4.2is for transfer to the housing development
4.3fund for the programs specified in this
4.4section. Except as otherwise indicated, this
4.5transfer is part of the agency's permanent
4.6budget base.
4.7The Housing Finance Agency will make
4.8continuous improvements to its ongoing
4.9efforts to reduce the racial and ethnic
4.10inequalities in homeownership rates and
4.11will seek opportunities to deploy increasing
4.12levels of resources toward these efforts.

4.13    Sec. 2. Laws 2013, chapter 85, article 1, section 4, subdivision 2, is amended to read:

4.14

Subd. 2.Challenge Program

19,203,000

9,203,000

4.15(a) This appropriation is for the economic
4.16development and housing challenge program
4.17under Minnesota Statutes, section 462A.33.
4.18The agency must continue to strengthen its
4.19efforts to address the disparity rate between
4.20white households and indigenous American
4.21Indians and communities of color. Of this
4.22amount, $1,208,000 each year shall be made
4.23available during the first 11 months of the
4.24fiscal year exclusively for housing projects
4.25for American Indians. Any funds not
4.26committed to housing projects for American
4.27Indians in the first 11 months of the fiscal year
4.28shall be available for any eligible activity
4.29under Minnesota Statues, section 462A.33.
4.30(b) Of this amount, $10,000,000 is a onetime
4.31appropriation and is targeted for housing in
4.32communities and regions that have:
4.33(1)(i) low housing vacancy rates; and
5.1(ii) cooperatively developed a plan that
5.2identifies current and future housing needs;
5.3and
5.4(2)(i) experienced job growth since 2005 and
5.5have at least 2,000 jobs within the commuter
5.6shed;
5.7(ii) evidence of anticipated job expansion; or
5.8(iii) a significant portion of area employees
5.9who commute more than 30 miles between
5.10their residence and their employment.
5.11(c) Priority shall be given to programs and
5.12projects that are land trust programs and
5.13programs that work in coordination with a
5.14land trust program.
5.15(d) Of this amount, $500,000 is for
5.16homeownership opportunities for families
5.17who have been evicted or been given
5.18notice of an eviction due to a disabled
5.19child in the home, including adjustments
5.20for the incremental increase in costs of
5.21addressing the unique housing needs of those
5.22households. Any funds not expended for this
5.23purpose may be returned to the challenge
5.24fund after October 31, 2014.
5.25(d) (e) The base funding for this program in
5.26the 2016-2017 biennium is $12,925,000 each
5.27year.

5.28    Sec. 3. Laws 2013, chapter 85, article 1, section 4, subdivision 3, is amended to read:

5.29 5.30

Subd. 3.Housing Trust Fund

13,276,000 12,776,000

10,276,000

5.31(a) This appropriation is for deposit in the
5.32housing trust fund account created under
5.33Minnesota Statutes, section 462A.201, and
5.34may be used for the purposes provided in
6.1that section. To the extent that these funds
6.2are used for the acquisition of housing, the
6.3agency shall give priority among comparable
6.4projects to projects that focus on creating
6.5safe and stable housing for homeless youth
6.6or projects that provide housing to trafficked
6.7women and children.
6.8(b) $2,000,000 in the first year is a onetime
6.9appropriation for temporary rental assistance
6.10for families with school-age children who
6.11have changed school or home at least
6.12once in the last school year. The agency,
6.13in consultation with the Department of
6.14Education, may establish additional targeting
6.15criteria.
6.16(c) Of this amount, $500,000 the first year
6.17is a onetime appropriation for temporary
6.18rental assistance for adults who are in
6.19the process of being released from state
6.20correctional facilities or on supervised
6.21release in the community who are homeless
6.22or at risk of becoming homeless. The
6.23agency, in consultation with the Department
6.24of Corrections, may establish additional
6.25targeting criteria to identify those adults
6.26most at risk of reentering state correctional
6.27facilities.
6.28(d) Of this amount, $500,000 the first year
6.29is a onetime appropriation for a grant to the
6.30nonprofit organization selected to administer
6.31the state demonstration project for high-risk
6.32adults established under Laws 2007, chapter
6.3354, article 1, section 19.
7.1(e) (d) The base funding for this program in
7.2fiscal years 2016 and 2017 is $11,471,000
7.3each year.

7.4    Sec. 4. AFFORDABLE HOUSING PLAN; DISPARITIES REPORT.
7.5(a) The Housing Finance Agency shall provide the chairs and ranking minority
7.6members of the house of representatives and senate committees with jurisdiction over the
7.7agency with the draft and final versions of its affordable housing plan before and after it
7.8has been submitted to the agency board for consideration.
7.9(b) The Housing Finance Agency shall annually report to the chairs and ranking
7.10minority members of the house of representatives and senate committees with jurisdiction
7.11over the agency on the progress, if any, the agency has made in closing the racial disparity
7.12gap and low-income concentrated housing disparities.

7.17	Section 1. APPROPRIATIONS.

7.18    The sums shown in the columns under "Appropriations" are added to or, if shown
7.19in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 1,
7.20or other law to the specified agencies. The appropriations are from the general fund, or
7.21another named fund, and are available for the fiscal years indicated for each purpose. The
7.22figures "2014" and "2015" used in this article mean that the appropriations listed under
7.23them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
7.24Appropriations for the fiscal year ending June 30, 2014, are effective the day following
7.25final enactment. Reductions may be taken in either fiscal year.

7.26				APPROPRIATIONS
7.27				Available for the Year
7.28				Ending June 30
7.29					2014		2015

7.30 7.31

Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

7.32

Subdivision 1.Total Appropriation

$

0

$

38,350,000

8.1The amounts that may be spent for each
8.2purpose are specified in the following
8.3subdivisions.

8.4 8.5

Subd. 2.Business and Community Development

0

36,250,000

8.6(a) $25,000,000 in fiscal year 2015 is for
8.7grants for the development of broadband
8.8infrastructure under Minnesota Statutes,
8.9section 116J.395, or to supplement revenues
8.10raised by bonds sold by local units of
8.11government for broadband infrastructure
8.12development. This is a onetime appropriation
8.13and is available until June 30, 2017.
8.14(b) $450,000 in fiscal year 2015 is from the
8.15general fund for one or more contracts with
8.16an independent organization to continue to:
8.17(1) collect broadband deployment data from
8.18Minnesota providers, verify its accuracy
8.19through on-the-ground testing, and create
8.20state and county maps available to the public
8.21showing the availability of broadband service
8.22at various upload and download speeds
8.23throughout Minnesota, in order to measure
8.24progress in achieving the state's broadband
8.25goals established in Minnesota Statutes,
8.26section 237.012;
8.27(2) analyze the deployment data collected to
8.28help inform future investments in broadband
8.29infrastructure; and
8.30(3) conduct business and residential surveys
8.31that measure broadband adoption and use in
8.32the state.
8.33Data provided by a broadband provider to the
8.34contractor under this paragraph is nonpublic
8.35data under Minnesota Statutes, section 13.02,
9.1subdivision 9. Maps produced under this
9.2paragraph are public data under Minnesota
9.3Statutes, section 13.03. This is a onetime
9.4appropriation and is available until expended.
9.5(c) $1,000,000 in fiscal year 2015 is from
9.6the general fund for a grant to the Southwest
9.7Initiative Foundation for business revolving
9.8loans or other lending programs. This is a
9.9onetime appropriation and is available until
9.10expended.
9.11(d) $1,000,000 in fiscal year 2015 is from the
9.12general fund for a grant to the West Central
9.13Initiative Foundation for business revolving
9.14loans or other lending programs. This is a
9.15onetime appropriation and is available until
9.16expended.
9.17(e) $1,000,000 in fiscal year 2015 is from
9.18the general fund for a grant to the Southern
9.19Minnesota Initiative Foundation for business
9.20revolving loans or other lending programs.
9.21This is a onetime appropriation and is
9.22available until expended.
9.23(f) $1,000,000 in fiscal year 2015 is from the
9.24general fund for a grant to the Northwest
9.25Minnesota Foundation for business revolving
9.26loans or other lending programs. This is a
9.27onetime appropriation and is available until
9.28expended.
9.29(g) $1,000,000 in fiscal year 2015 is from
9.30the general fund for a grant to the Initiative
9.31Foundation for business revolving loans or
9.32other lending programs. This is a onetime
9.33appropriation and is available until expended.
9.34(h) $1,000,000 in fiscal year 2015 is from
9.35the general fund for a grant to the Northland
10.1Foundation for business revolving loans or
10.2other lending programs. This is a onetime
10.3appropriation and is available until expended.
10.4(i) $1,000,000 in fiscal year 2015 is from the
10.5general fund for a grant to the Urban Initiative
10.6Board under Minnesota Statutes, chapter
10.7116M, for business technical assistance or
10.8organizational capacity building. Funds
10.9available under this paragraph must be
10.10allocated as follows: (1) 50 percent of
10.11the funds must be allocated for projects
10.12in the counties of Dakota, Ramsey, and
10.13Washington; and (2) 50 percent of the funds
10.14must be allocated for projects in the counties
10.15of Anoka, Carver, Hennepin, and Scott. This
10.16is a onetime appropriation and is available
10.17until expended.
10.18(j) $500,000 in fiscal year 2015 is from the
10.19general fund for grants to small business
10.20development centers under Minnesota
10.21Statutes, section 116J.68. Funds made
10.22available under this paragraph may be used to
10.23match funds under the federal Small Business
10.24Development Center (SBDC) program under
10.25United States Code, title 15, section 648, to
10.26provide consulting and technical services, or
10.27to build additional SBDC network capacity
10.28to serve entrepreneurs and small businesses.
10.29The commissioner shall allocate funds
10.30equally among the nine regional centers and
10.31lead center. This is a onetime appropriation
10.32and is available until expended.
10.33(k) $750,000 in fiscal year 2015 is from the
10.34general fund for the innovation voucher pilot
10.35program in article 4, section 9. This is a
11.1onetime appropriation and is available until
11.2expended. Of this amount, up to five percent
11.3may be used for administration. Vouchers
11.4require a 50 percent match by recipients.
11.5(l) $1,600,000 in fiscal year 2015 is
11.6from the general fund for the Minnesota
11.7Jobs Skills Partnership program under
11.8Minnesota Statutes, section 116L.02. Of this
11.9appropriation, $600,000 is onetime and is
11.10available until expended and $1,000,000 is
11.11added to the agency's base budget each year
11.12for fiscal years 2016 and 2017.
11.13(m) $450,000 in fiscal year 2015 is from the
11.14general fund for the Office of Regenerative
11.15Medicine under Minnesota Statutes, sections
11.16116J.886 to 116J.8862. This is a onetime
11.17appropriation and is available until expended.

11.18

Subd. 3.Workforce Development

0

1,600,000

11.19(a) $75,000 in fiscal year 2015 is from
11.20the general fund for workforce program
11.21outcome activities under Minnesota Statutes,
11.22section 116L.98. Up to five percent of
11.23this appropriation may be used by the
11.24commissioner for administration of the
11.25program. This is a onetime appropriation and
11.26is available until expended.
11.27(b) $1,000,000 in fiscal year 2015 is from the
11.28general fund for training rebates under article
11.294, section 11. This is a onetime appropriation
11.30and is available until expended.
11.31(c) $25,000 in fiscal year 2015 is from the
11.32general fund for the information technology
11.33apprenticeship pilot program under article 4,
11.34section 13. This is a onetime appropriation
11.35and is available until expended.

12.1

Subd. 4.General Support Services

0

500,000

12.2$500,000 in fiscal year 2015 is for
12.3establishing and operating the interagency
12.4Olmstead Implementation Office. This is a
12.5onetime appropriation and is available until
12.6expended.

12.7 12.8

Sec. 3. DEPARTMENT OF LABOR AND INDUSTRY

12.9

Subdivision 1.Total Appropriation

$

0

$

275,000

12.10The amounts that may be spent for each
12.11purpose are specified in the following
12.12subdivisions.

12.13

Subd. 2.Labor Standards and Apprenticeship

0

275,000

12.14(a) The base for the department is increased
12.15by $70,000 each year for implementing and
12.16administering a minimum wage inflation
12.17adjustment. This adjustment is available only
12.18if a law is enacted in the 2014 legislative
12.19session that includes an automatic inflation
12.20adjustment to the state minimum wage. The
12.21availability of this appropriation is effective
12.22in the same fiscal year that the inflation
12.23adjustment is first effective.
12.24(b) $25,000 in fiscal year 2015 is from the
12.25general fund for the precision manufacturing
12.26and health care services pilot program under
12.27article 4, section 12. This is a onetime
12.28appropriation and is available until expended.

12.29    Sec. 4. Laws 2013, chapter 85, article 1, section 3, subdivision 2, is amended to read:

12.30 12.31

Subd. 2.Business and Community Development

53,642,000

45,407,000

13.1	Appropriations by Fund
13.2	General	52,942,000	44,707,000
13.3	Remediation	700,000	700,000

13.4(a)(1) $15,000,000 each year is for the
13.5Minnesota investment fund under Minnesota
13.6Statutes, section 116J.8731. Of this amount,
13.7the commissioner of employment and
13.8economic development may use up to three
13.9percent for administrative expenses. This
13.10appropriation is available until spent.
13.11(2) Of the amount available under clause
13.12(1), up to $3,000,000 in fiscal year 2014
13.13is for a loan to facilitate initial investment
13.14in the purchase and operation of a
13.15biopharmaceutical manufacturing facility.
13.16This loan is not subject to the loan limitations
13.17under Minnesota Statutes, section 116J.8731,
13.18and shall be forgiven by the commissioner
13.19of employment and economic development
13.20upon verification of meeting performance
13.21goals. Purchases related to and for the
13.22purposes of this loan award must be made
13.23between January 1, 2013, and June 30, 2015.
13.24The amount under this clause is available
13.25until expended.
13.26(3) Of the amount available under clause (1),
13.27up to $2,000,000 is available for subsequent
13.28investment in the biopharmaceutical facility
13.29project in clause (2). The amount under this
13.30clause is available until expended. Loan
13.31thresholds under clause (2) must be achieved
13.32and maintained to receive funding. Loans
13.33are not subject to the loan limitations under
13.34Minnesota Statutes, section 116J.8731, and
13.35shall be forgiven by the commissioner of
14.1employment and economic development
14.2upon verification of meeting performance
14.3goals. Purchases related to and for the
14.4purposes of loan awards must be made during
14.5the biennium the loan was received.
14.6(4) Notwithstanding any law to the contrary,
14.7the biopharmaceutical manufacturing facility
14.8in this paragraph shall be deemed eligible
14.9for the Minnesota job creation fund under
14.10Minnesota Statutes, section 116J.8748,
14.11by having at least $25,000,000 in capital
14.12investment and 190 retained employees.
14.13(5) For purposes of clauses (1) to (4),
14.14"biopharmaceutical" and "biologics" are
14.15interchangeable and mean medical drugs
14.16or medicinal preparations produced using
14.17technology that uses biological systems,
14.18living organisms, or derivatives of living
14.19organisms, to make or modify products or
14.20processes for specific use. The medical drugs
14.21or medicinal preparations include but are not
14.22limited to proteins, antibodies, nucleic acids,
14.23and vaccines.
14.24(b) $12,000,000 each year is for the
14.25Minnesota job creation fund under Minnesota
14.26Statutes, section 116J.8748. Of this amount,
14.27the commissioner of employment and
14.28economic development may use up to three
14.29percent for administrative expenses. This
14.30appropriation is available until spent. The
14.31base funding for this program shall be
14.32$12,500,000 each year in the fiscal year
14.332016-2017 biennium.
14.34(c) $1,272,000 each year is from the
14.35general fund for contaminated site cleanup
15.1and development grants under Minnesota
15.2Statutes, sections 116J.551 to 116J.558. This
15.3appropriation is available until expended.
15.4(d) $700,000 each year is from the
15.5remediation fund for contaminated site
15.6cleanup and development grants under
15.7Minnesota Statutes, sections 116J.551 to
15.8116J.558 . This appropriation is available
15.9until expended.
15.10(e) $1,425,000 the first year and $1,425,000
15.11the second year are from the general fund for
15.12the business development competitive grant
15.13program. Of this amount, up to five percent
15.14is for administration and monitoring of the
15.15business development competitive grant
15.16program. All grant awards shall be for two
15.17consecutive years. Grants shall be awarded
15.18in the first year.
15.19(f) $4,195,000 each year is from the general
15.20fund for the Minnesota job skills partnership
15.21program under Minnesota Statutes, sections
15.22116L.01 to 116L.17. If the appropriation for
15.23either year is insufficient, the appropriation
15.24for the other year is available. This
15.25appropriation is available until spent.
15.26(g) $6,000,000 the first year is from the
15.27general fund for the redevelopment program
15.28under Minnesota Statutes, section 116J.571.
15.29This is a onetime appropriation and is
15.30available until spent.
15.31(h) $12,000 each year is from the general
15.32fund for a grant to the Upper Minnesota Film
15.33Office.
15.34(i) $325,000 each year is from the general
15.35fund for the Minnesota Film and TV Board.
16.1The appropriation in each year is available
16.2only upon receipt by the board of $1 in
16.3matching contributions of money or in-kind
16.4contributions from nonstate sources for every
16.5$3 provided by this appropriation, except that
16.6each year up to $50,000 is available on July
16.71 even if the required matching contribution
16.8has not been received by that date.
16.9(j) $100,000 each year is for a grant to the
16.10Northern Lights International Music Festival.
16.11(k) $5,000,000 each year is from the general
16.12fund for a grant to the Minnesota Film
16.13and TV Board for the film production jobs
16.14program under Minnesota Statutes, section
16.15116U.26 . This appropriation is available
16.16until expended. The base funding for this
16.17program shall be $1,500,000 each year in the
16.18fiscal year 2016-2017 biennium.
16.19(l) $375,000 each year is from the general
16.20fund for a grant to Enterprise Minnesota, Inc.,
16.21for the small business growth acceleration
16.22program under Minnesota Statutes, section
16.23116O.115 . This is a onetime appropriation.
16.24(m) $160,000 each year is from the general
16.25fund for a grant to develop and implement
16.26a southern and southwestern Minnesota
16.27initiative foundation collaborative pilot
16.28project. Funds available under this paragraph
16.29must be used to support and develop
16.30entrepreneurs in diverse populations in
16.31southern and southwestern Minnesota. This
16.32is a onetime appropriation and is available
16.33until expended.
16.34(n) $100,000 each year is from the general
16.35fund for the Center for Rural Policy
17.1and Development. This is a onetime
17.2appropriation.
17.3(o) $250,000 each year is from the general
17.4fund for the Broadband Development Office.
17.5(p) $250,000 the first year is from the
17.6general fund for a onetime grant to the St.
17.7Paul Planning and Economic Development
17.8Department for neighborhood stabilization
17.9use in NSP3.
17.10(q) $1,235,000 the first year is from the
17.11general fund for a onetime grant to a city
17.12of the second class that is designated as an
17.13economically depressed area by the United
17.14States Department of Commerce. The
17.15appropriation is for economic development,
17.16redevelopment, and job creation programs
17.17and projects. This appropriation is available
17.18until expended.
17.19(r) $875,000 each year is from the general
17.20fund for the Host Community Economic
17.21Development Program established in
17.22Minnesota Statutes, section 116J.548.
17.23(s) $750,000 the first year is from the general
17.24fund for a onetime grant to the city of Morris
17.25for loans or grants to agricultural processing
17.26facilities for energy efficiency improvements.
17.27Funds available under this section shall be
17.28used to increase conservation and promote
17.29energy efficiency through retrofitting existing
17.30systems and installing new systems to
17.31recover waste heat from industrial processes
17.32and reuse energy. This appropriation is not
17.33available until the commissioner determines
17.34that at least $1,250,000 a match of $750,000
17.35 is committed to the project from nonpublic
18.1sources. This appropriation is available until
18.2expended.
18.3EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

18.4    Sec. 5. Laws 2013, chapter 85, article 1, section 3, subdivision 5, is amended to read:

18.5

Subd. 5.Minnesota Trade Office

2,322,000

2,292,000

18.6(a) $330,000 in fiscal year 2014 and $300,000
18.7in fiscal year 2015 are for the STEP grants
18.8in Minnesota Statutes, section 116J.979. Of
18.9the fiscal year 2014 appropriation, $30,000 is
18.10available for expenditure until June 30, 2015,
18.11and is for a grant to Voice of East African
18.12Women, Inc., for establishing trade, export,
18.13and cultural exchange relations between the
18.14state of Minnesota and east African nations.
18.15(b) $180,000 in fiscal year 2014 and
18.16$180,000 in fiscal year 2015 are for the Invest
18.17Minnesota marketing initiative in Minnesota
18.18Statutes, section 116J.9781. Notwithstanding
18.19any other law, this provision does not expire.
18.20(c) $270,000 each year is from the general
18.21fund for the expansion of Minnesota Trade
18.22Offices under Minnesota Statutes, section
18.23116J.978 .
18.24(d) $50,000 each year is from the general
18.25fund for the trade policy advisory group
18.26under Minnesota Statutes, section 116J.9661.
18.27(e) The commissioner of employment and
18.28economic development, in consultation
18.29with the commissioner of agriculture, shall
18.30identify and increase export opportunities for
18.31Minnesota agricultural products.
18.32EFFECTIVE DATE.This section is effective the day following final enactment.

19.1    Sec. 6. Laws 2013, chapter 85, article 1, section 3, subdivision 6, is amended to read:

19.2

Subd. 6.Vocational Rehabilitation

27,691,000

27,691,000

19.3	Appropriations by Fund
19.4	General	20,861,000	20,861,000
19.5 19.6	Workforce Development	6,830,000	6,830,000

19.7(a) $10,800,000 each year is from the general
19.8fund for the state's vocational rehabilitation
19.9program under Minnesota Statutes, chapter
19.10268A.
19.11(b) $2,261,000 each year is from the general
19.12fund for grants to centers for independent
19.13living under Minnesota Statutes, section
19.14268A.11 .
19.15(c) $5,745,000 each year from the general
19.16fund and $6,830,000 each year from the
19.17workforce development fund is for extended
19.18employment services for persons with
19.19severe disabilities under Minnesota Statutes,
19.20section 268A.15. The allocation of extended
19.21employment funds to Courage Center from
19.22July 1, 2012 to June 30, 2013 must be
19.23contracted to Allina Health systems from
19.24July 1, 2013 to June 30, 2014 2015 to provide
19.25extended employment services in accordance
19.26with Minnesota Rules, parts 3300.2005 to
19.273300.2055.
19.28(d) $2,055,000 each year is from the general
19.29fund for grants to programs that provide
19.30employment support services to persons with
19.31mental illness under Minnesota Statutes,
19.32sections 268A.13 and 268A.14. The base
19.33appropriation for this program is $1,555,000
19.34each year in the fiscal year 2016-2017
19.35biennium.

20.1    Sec. 7. Laws 2013, chapter 85, article 1, section 13, subdivision 5, is amended to read:

20.2

Subd. 5.Telecommunications

1,949,000

2,249,000

20.3	Appropriations by Fund
20.4	General	1,009,000	1,009,000
20.5	Special Revenue	940,000	1,240,000

20.6$940,000 in fiscal year 2014 and $1,240,000
20.7in fiscal year 2015 are appropriated to the
20.8commissioner from the telecommunication
20.9access fund for the following transfers. This
20.10appropriation is added to the department's
20.11base.
20.12(1) $500,000 in fiscal year 2014 and $800,000
20.13in fiscal year 2015 to the commissioner of
20.14human services to supplement the ongoing
20.15operational expenses of the Commission
20.16of Deaf, DeafBlind, and Hard-of-Hearing
20.17Minnesotans;
20.18(2) $290,000 in fiscal year 2014 and $290,000
20.19in fiscal year 2015 to the chief information
20.20officer for the purpose of coordinating
20.21technology accessibility and usability; and
20.22(3) $150,000 in fiscal year 2014 and $150,000
20.23in fiscal year 2015 to the Legislative
20.24Coordinating Commission for captioning of
20.25legislative coverage and for a consolidated
20.26access fund for other state agencies. These
20.27transfers are subject to Minnesota Statutes,
20.28section 16A.281.


20.31    Section 1. [116J.394] DEFINITIONS.
20.32(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
20.33the meanings given them.
21.1(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
21.2subdivision 1, paragraph (b).
21.3(c) "Broadband infrastructure" means networks of deployed telecommunications
21.4equipment and technologies necessary to provide high-speed Internet access and other
21.5advanced telecommunications services for end users.
21.6(d) "Commissioner" means the commissioner of employment and economic
21.7development.
21.8(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
21.9final leg connecting the broadband service provider's network to the end-use customer's
21.10on-premises telecommunications equipment.
21.11(f) "Middle-mile infrastructure" means broadband infrastructure that links a
21.12broadband service provider's core network infrastructure to last-mile infrastructure.
21.13(g) "Political subdivision" means any county, city, town, school district, special
21.14district or other political subdivision, or public corporation.
21.15(h) "Underserved areas" means areas of Minnesota in which households or businesses
21.16lack access to wire-line broadband service at speeds that meet the state broadband goals of
21.17ten to 20 megabits per second download and five to ten megabits per second upload.
21.18(i) "Unserved areas" means areas of Minnesota in which households or businesses
21.19lack access to wire-line broadband service at speeds that meet a Federal Communications
21.20Commission threshold of four megabits per second download and one megabit per second
21.21upload.

21.22    Sec. 2. [116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT
21.23GRANT PROGRAM.
21.24    Subdivision 1. Establishment. A grant program is established under the Department
21.25of Employment and Economic Development to award grants to eligible applicants in order
21.26to promote the expansion of access to broadband service in unserved or underserved
21.27areas of the state.
21.28    Subd. 2. Eligible expenditures. Grants may be awarded under this section to fund
21.29the acquisition and installation of middle-mile and last-mile infrastructure that support
21.30broadband service scalable to speeds of at least 100 megabits per second download and
21.31100 megabits per second upload.
21.32    Subd. 3. Eligible applicants. Eligible applicants for grants awarded under this
21.33section include:
21.34(1) an incorporated business or a partnership;
21.35(2) a political subdivision;
22.1(3) an Indian tribe;
22.2(4) a Minnesota nonprofit organization organized under chapter 317A;
22.3(5) a Minnesota cooperative association organized under chapter 308A or 308B; and
22.4(6) a Minnesota limited liability corporation organized under chapter 322B for the
22.5purpose of expanding broadband access.
22.6    Subd. 4. Application process. An eligible applicant must submit an application
22.7to the commissioner on a form prescribed by the commissioner. The commissioner shall
22.8develop administrative procedures governing the application and grant award process.
22.9The commissioner shall act as fiscal agent for the grant program and shall be responsible
22.10for receiving and reviewing grant applications and awarding grants under this section.
22.11    Subd. 5. Application contents. An applicant for a grant under this section shall
22.12provide the following information on the application:
22.13(1) the location of the project;
22.14(2) the kind and amount of broadband infrastructure to be purchased for the project;
22.15(3) evidence regarding the unserved or underserved nature of the community in
22.16which the project is to be located;
22.17(4) the number of households passed that will have access to broadband service as a
22.18result of the project, or whose broadband service will be upgraded as a result of the project;
22.19(5) significant community institutions that will benefit from the proposed project;
22.20(6) evidence of community support for the project;
22.21(7) the total cost of the project;
22.22(8) sources of funding or in-kind contributions for the project that will supplement
22.23any grant award; and
22.24(9) any additional information requested by the commissioner.
22.25    Subd. 6. Awarding grants. (a) In evaluating applications and awarding grants, the
22.26commissioner shall give priority to applications that are constructed in areas identified by
22.27the director of the Office of Broadband Development as unserved.
22.28(b) In evaluating applications and awarding grants, the commissioner may give
22.29priority to applications that:
22.30(1) are constructed in areas identified by the director of the Office of Broadband
22.31Development as underserved;
22.32(2) offer new or substantially upgraded broadband service to important community
22.33institutions including, but not limited to, libraries, educational institutions, public safety
22.34facilities, and healthcare facilities;
22.35(3) facilitate the use of telemedicine and electronic health records;
23.1(4) serve economically distressed areas of the state, as measured by indices of
23.2unemployment, poverty, or population loss that are significantly greater than the statewide
23.3average;
23.4(5) provide technical support and train residents, businesses, and institutions in the
23.5community served by the project to utilize broadband service;
23.6(6) include a component to actively promote the adoption of the newly available
23.7broadband services in the community;
23.8(7) provide evidence of strong support for the project from citizens, government,
23.9businesses, and institutions in the community;
23.10(8) provide access to broadband service to a greater number of unserved or
23.11underserved households and businesses; or
23.12(9) leverage greater amounts of funding for the project from other private and
23.13public sources.
23.14(c) The commissioner shall endeavor to award grants under this section to qualified
23.15applicants in all regions of the state.
23.16EFFECTIVE DATE.This section is effective the day following final enactment.

23.17    Sec. 3. [116J.396] BORDER-TO-BORDER BROADBAND FUND.
23.18    Subdivision 1. Account established. The border-to-border broadband fund account
23.19is established as a separate account in the special revenue fund in the state treasury. The
23.20commissioner shall credit to the account appropriations and transfers to the account.
23.21Earnings, such as interest, dividends, and any other earnings arising from assets of the
23.22account, must be credited to the account. Funds remaining in the account at the end of a
23.23fiscal year are not canceled to the general fund, but remain in the account until expended.
23.24The commissioner shall manage the account.
23.25    Subd. 2. Expenditures. Money in the account may be used only:
23.26(1) for grant awards made under section 116J.395, including up to three percent of
23.27the total amount appropriated for grants awarded under that section for costs incurred by
23.28the Department of Employment and Economic Development to administer that section; or
23.29(2) to supplement revenues raised by bonds sold by local units of government for
23.30broadband infrastructure development.
23.31    Subd. 3. Restrictions. (a) Except as provided in paragraph (c), in any fiscal year, no
23.32more than one-third of the funds expended from the account established in this section
23.33shall be awarded to applicants located in areas whose household density exceeds 100
23.34households per square mile, as determined by the state demographer.
24.1(b) Except as provided in paragraph (c), in any fiscal year, no more than two-thirds
24.2of the funds expended from the account established in this section shall be awarded to
24.3applicants located in areas whose household density is less than 100 households per square
24.4mile, as determined by the state demographer.
24.5(c) If applications are insufficient to exhaust all funds available in a given grant
24.6round under the restrictions imposed in paragraph (a) or (b), the unexpended funds may
24.7be awarded to eligible applicants, as determined by the commissioner, irrespective of the
24.8population density of the area in which the applicant is located.
24.9    Subd. 4. Appropriation. Money in the account is appropriated to the commissioner
24.10for the purposes of subdivision 2.
24.11EFFECTIVE DATE.This section is effective the day following final enactment.

24.12    Sec. 4. [116J.886] CITATION; REGENERATIVE MEDICINE DEVELOPMENT
24.13ACT.
24.14Sections 116J.886 to 116J.8862 shall be known as the Regenerative Medicine
24.15Development Act to promote private sector investment in regenerative medicine to
24.16strengthen the state's economy, reduce the long-term costs related to treating debilitating
24.17illnesses, advance the regenerative medicine industry, and facilitate and expand clinical
24.18research opportunities in the state.

24.19    Sec. 5. [116J.8861] DEFINITIONS.
24.20    Subdivision 1. Definitions. For the purposes of sections 116J.886 to 116J.8862, the
24.21following terms have the meanings given them.
24.22    Subd. 2. Business development services. "Business development services"
24.23means business incubator services and services to facilitate access to existing publicly
24.24or privately financed grants, loans, or loan guarantees, and to support basic or applied
24.25research, development of therapies, and development of pharmacologies and treatments
24.26through preclinical or clinical trials.
24.27    Subd. 3. Commissioner. "Commissioner" means the commissioner of employment
24.28and economic development.
24.29    Subd. 4. Office. "Office" means the Office of Regenerative Medicine Development
24.30established under section 116J.8862.
24.31    Subd. 5. Regenerative medicine. "Regenerative medicine" means the process of
24.32creating or using living, functional tissue to augment, repair, replace, or regenerate organs
24.33and tissue that have been damaged by disease, injury, aging, or other biological processes.
25.1    Subd. 6. Regenerative medicine development project or project. "Regenerative
25.2medicine development project" or "project" means any research, product development,
25.3or commercial venture relating to basic, preclinical, or clinical work to produce a drug,
25.4biological or chemical material, compound, or medical device designed to augment,
25.5repair, replace, or regenerate organs and tissue that have been damaged by disease, injury,
25.6aging, or other biological processes.

25.7    Sec. 6. [116J.8862] OFFICE OF REGENERATIVE MEDICINE
25.8DEVELOPMENT.
25.9    Subdivision 1. Established. The commissioner shall establish an Office of
25.10Regenerative Medicine Development to provide business development services and
25.11outreach to promote and expand the regenerative medicine industry in Minnesota.
25.12    Subd. 2. Consultation. The office must regularly consult with external stakeholders,
25.13and must conduct public meetings to gather input. For the purposes of this section,
25.14external stakeholders must include:
25.15(1) the director of the Minnesota Stem Cell Institute at the University of Minnesota;
25.16(2) a representative of a Minnesota-based trade association with the largest number
25.17of bioscience companies as its membership;
25.18(3) a representative of a Minnesota-based trade association with the largest number
25.19of hospitals as its membership; and
25.20(4) a representative of the largest private entity in Minnesota conducting research
25.21into the benefits and uses of regenerative medicine.
25.22    Subd. 3. Outside funding. The commissioner, on behalf of the office, may accept
25.23appropriations, gifts, grants, and bequests.
25.24    Subd. 4. Public infrastructure grant program. The commissioner shall coordinate
25.25the services and activities of the office with the innovative business development public
25.26infrastructure program under section 116J.435.
25.27    Subd. 5. Fiscal planning. By December 15, 2014, the commissioner shall develop a
25.28long-term budget proposal for the office for fiscal years 2016 to 2024 to provide business
25.29development services to regenerative medicine development projects.
25.30    Subd. 6. Project applications; selection. (a) The office shall provide business
25.31development services to eligible regenerative medicine development projects approved by
25.32the commissioner. To be eligible for business development services under this section, a
25.33regenerative medicine development project must:
25.34(1) demonstrate that at least 70 percent of the project costs are paid from nonstate
25.35sources. The nonstate share may include federal funds and the prior purchase of scientific
26.1equipment and materials incidental to the project, provided the purchase is completed not
26.2more than two years prior to the approval of funding by the commissioner;
26.3(2) not duplicate or supplant any other research or other project already conducted
26.4by the federal government, or for which federal funding is available; and
26.5(3) demonstrate that project activities are carried out directly by the grant recipient.
26.6(b) The commissioner shall establish an application and process for approving
26.7projects. Project applications must include the following information:
26.8(1) evidence that the required match is available and committed;
26.9(2) a detailed estimate, along with necessary supporting evidence, of the total cost
26.10of the project;
26.11(3) an assessment of the potential to attract new or continue existing public and
26.12private research grant awards resulting from the project;
26.13(4) a detailed risk analysis projecting the likelihood of clinical success resulting in
26.14revenues or royalty payments from the project;
26.15(5) an assessment of the likelihood for and potential cost savings for publicly
26.16funded health care and long-term care programs from the project as a result of reducing
26.17the incidence or lowering the treatment costs of debilitating illnesses and diseases over
26.18the next ten years;
26.19(6) a timeline indicating the major milestones of research projects and their
26.20anticipated completion dates, including any previously completed similar research; and
26.21(7) an estimate of any potential current and future employment opportunities
26.22within the state, stimulation of economic growth, and the possibility for advancing the
26.23development of commercially successful and affordable regenerative medicine products,
26.24processes, or services. The application requirements are not in priority order and the
26.25commissioner may weigh each item, depending upon the facts and circumstances, as
26.26the commissioner considers appropriate.
26.27    Subd. 7. Report. The commissioner, on behalf of the office, must report to the
26.28legislative chairs with jurisdiction over economic development by January 1 of each
26.29odd-numbered year on successful economic development projects implemented or
26.30initiated since their last report and on plans for the upcoming year.
26.31    Subd. 8. Sunset. The office established under this section expires June 30, 2024.

26.32    Sec. 7. Minnesota Statutes 2012, section 116L.98, is amended to read:
26.33116L.98 WORKFORCE PROGRAM OUTCOMES.
26.34    Subdivision 1. Requirements. The commissioner shall develop and implement a
26.35set of standard approaches for assessing the outcomes of workforce programs under this
27.1chapter. The outcomes assessed must include, but are not limited to, periodic comparisons
27.2of workforce program participants and nonparticipants uniform outcome measurement
27.3and reporting system for adult workforce-related programs funded in whole or in part by
27.4the workforce development fund.
27.5The commissioner shall also monitor the activities and outcomes of programs and
27.6services funded by legislative appropriations and administered by the department on a
27.7pass-through basis and develop a consistent and equitable method of assessing recipients
27.8for the costs of its monitoring activities.
27.9    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
27.10this subdivision have the meanings given.
27.11(b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates
27.12awarded in recognition of an individual's attainment of measurable technical or
27.13occupational skills necessary to obtain employment or advance with an occupation.
27.14This definition does not include certificates awarded by workforce investment boards or
27.15work-readiness certificates.
27.16(c) "Exit" means to have not received service under a workforce program for 90
27.17consecutive calendar days. The exit date is the last date of service.
27.18(d) "Net impact" means the use of matched control groups and regression analysis to
27.19estimate the impacts attributable to program participation net of other factors, including
27.20observable personal characteristics and economic conditions.
27.21(e) "Pre-enrollment" means the period of time before an individual was enrolled
27.22in a workforce program.
27.23    Subd. 3. Uniform outcome report card; reporting by commissioner. (a) By
27.24December 31 of each even-numbered year, the commissioner must report to the chairs
27.25and ranking minority members of the committees of the house of representatives and the
27.26senate having jurisdiction over economic development and workforce policy and finance
27.27the following information separately for each of the previous two fiscal or calendar years,
27.28for each program subject to the requirements of subdivision 1:
27.29(1) the total number of participants enrolled;
27.30(2) the median pre-enrollment wages based on participant wages for the second
27.31through the fifth calendar quarters immediately preceding the quarter of enrollment
27.32excluding those with zero income;
27.33(3) the total number of participants with zero income in the second through fifth
27.34calendar quarters immediately preceding the quarter of enrollment;
27.35(4) the total number of participants enrolled in training;
27.36(5) the total number of participants enrolled in training by occupational group;
28.1(6) the total number of participants that exited the program and the average
28.2enrollment duration of participants that have exited the program during the year;
28.3(7) the total number of exited participants who completed training;
28.4(8) the total number of exited participants who attained a credential;
28.5(9) the total number of participants employed during three consecutive quarters
28.6immediately following the quarter of exit, by industry;
28.7(10) the median wages of participants employed during three consecutive quarters
28.8immediately following the quarter of exit;
28.9(11) the total number of participants employed during eight consecutive quarters
28.10immediately following the quarter of exit, by industry; and
28.11(12) the median wages of participants employed during eight consecutive quarters
28.12immediately following the quarter of exit.
28.13(b) The report to the legislature must contain participant information by education
28.14level, race and ethnicity, gender, and geography, and a comparison of exited participants
28.15who completed training and those who did not.
28.16(c) The requirements of this section apply to programs administered directly by the
28.17commissioner or administered by other organizations under a grant made by the department.
28.18    Subd. 4. Data to commissioner; uniform report card. (a) A recipient of a future
28.19or past grant or direct appropriation made by or through the department must report data
28.20to the commissioner by September 1 of each even-numbered year on each of the items in
28.21subdivision 3 for each program it administers except wages and number employed, which
28.22the department shall provide. The data must be in a format prescribed by the commissioner.
28.23(b) Beginning July 1, 2014, the commissioner shall provide notice to grant applicants
28.24and recipients regarding the data collection and reporting requirements under this
28.25subdivision and must provide technical assistance to applicants and recipients to assist
28.26in complying with the requirements of this subdivision.
28.27    Subd. 5. Information. The information collected and reported under subdivisions 3
28.28and 4 shall be made available on the department's Web site.
28.29    Subd. 6. Limitations on future appropriations. (a) A program that is a recipient
28.30of public funds and subject to the requirements of this section as of May 1, 2014, is not
28.31eligible for additional state appropriations for any fiscal year beginning after June 30,
28.322015, unless all of the reporting requirements under subdivision 4 have been satisfied.
28.33(b) A program with an initial request for funds on or after the effective date of this
28.34section may be considered for receipt of public funds for the first two fiscal years only
28.35if a plan that demonstrates how the data collection and reporting requirements under
28.36subdivision 4 will be met has been submitted and approved by the commissioner. Any
29.1subsequent request for funds after an initial request is subject to the requirements of
29.2paragraph (a).
29.3    Subd. 7. Workforce program net impact analysis. (a) The commissioner
29.4shall contract with an independent entity to conduct a net impact analysis for adult
29.5workforce-related programs funded in whole or in part by the workforce development
29.6fund. The requirements of this section apply to programs administered directly by the
29.7commissioner or administered by other employment organizations under a grant made by
29.8the department. The net impact methodology used by the independent entity should be
29.9based on the methodology and evaluation design used in paragraph (c) and must include:
29.10(1) standardized statistical methods for estimating the net impacts of workforce
29.11services on individual employment, earnings, incarceration avoidance where appropriate,
29.12and public benefits usage outcomes; and
29.13(2) standardized cost-benefit analysis for understanding the monetary impacts of
29.14workforce services from the participant and taxpayer points of view.
29.15(b) By January 15 of the odd year of every other biennium, the commissioner must
29.16report to the chairs and ranking minority members of the committees of the house of
29.17representatives and senate having jurisdiction over economic development and workforce
29.18policy and finance the following information for each program subject to this subdivision:
29.19(1) the net impact of workforce services on individual employment, earnings, and
29.20public benefits usage outcomes; and
29.21(2) cost-benefit analyses for understanding the monetary impacts of workforce
29.22services from the participant and taxpayer points of view. The report must be made
29.23available to the public in an electronic format on the Department of Employment and
29.24Economic Development's Web site.
29.25The department is authorized to create and maintain data-sharing agreements with
29.26other departments, including corrections, human services, and any other department that
29.27are necessary to complete the analysis. The department shall supply the information
29.28collected for use by the independent entity conducting net impact analysis pursuant to the
29.29data practices requirements under chapters 13, 13A, 13B, and 13C.
29.30(c) By January 15, 2015, the commissioner, in partnership with the Governor's
29.31Workforce Development Council, must report to the chairs and ranking minority members
29.32of the committees of the house of representatives and senate having jurisdiction over
29.33economic development and workforce policy and finance the results of the net impact
29.34pilot project already underway.

30.1    Sec. 8. Minnesota Statutes 2012, section 181A.07, is amended by adding a subdivision
30.2to read:
30.3    Subd. 7. Approved training programs. The commissioner may grant exemptions
30.4from any provisions of sections 181A.01 to 181A.12 for minors participating in training
30.5programs approved by the commissioner; or students in a valid apprenticeship program
30.6taught by or required by a trade union, the commissioner of education, the commissioner
30.7of employment and economic development, the Board of Trustees of the Minnesota State
30.8Colleges and Universities, or the Board of Regents of the University of Minnesota.

30.9    Sec. 9. INNOVATION VOUCHER PILOT PROGRAM.
30.10(a) The commissioner of employment and economic development shall develop and
30.11implement an innovation voucher pilot program to provide financing to small businesses
30.12to purchase technical assistance and services from public higher education institutions
30.13and nonprofit entities to assist in the development or commercialization of innovative
30.14new products or services.
30.15(b) Funds available under this section may be used by a small business to access
30.16technical assistance and other services including, but not limited to: research, technical
30.17development, product development, commercialization, technology exploration, and
30.18improved business practices.
30.19(c) To be eligible for a voucher under this section, a business must enter into an
30.20agreement with the commissioner that includes:
30.21(1) a list of the technical assistance and services the business proposes to purchase
30.22and from whom the services will be purchased; and
30.23(2) deliverable outcomes in one of the following areas:
30.24(i) research and development;
30.25(ii) business model development;
30.26(iii) market feasibility;
30.27(iv) operations; or
30.28(v) other outcomes determined by the commissioner.
30.29As part of the agreement, the commissioner must approve the technical assistance and
30.30services to be purchased, and the entities from which the services or technical assistance
30.31will be purchased.
30.32(d) For the purposes of this section, a small business means a business with fewer
30.33than 25 employees.
30.34(e) A voucher award must not exceed $25,000 per business.
31.1(f) The commissioner must report to the chairs of the committees of the house of
31.2representatives and senate having jurisdiction over economic development and workforce
31.3policy and finance issues by December 1, 2014, on the vouchers awarded to date.

31.4    Sec. 10. COMMISSIONER'S ACCOUNTABILITY PLAN.
31.5By December 1, 2014, the commissioner shall report to the committees of the
31.6house of representatives and senate having jurisdiction over workforce development
31.7and economic development policy and finance issues, on the department's plan, and any
31.8request for funding, to design and implement a performance accountability outcome
31.9measurement system for programs under Minnesota Statutes, chapters 116J and 116L.

31.10    Sec. 11. NEW EMPLOYEE TRAINING PARTNERSHIP.
31.11    Subdivision 1. Training partnership initiative. (a) The commissioner of
31.12employment and economic development shall develop and implement a new employee
31.13training partnership to provide rebates to employers that hire and train new employees. To
31.14be eligible for a rebate under this section, an employer must enter into an agreement with
31.15the commissioner under subdivision 3. The commissioner shall give priority to employers
31.16in counties in which the county unemployment rate over the preceding 12 months exceeded
31.17the state average unemployment rate by 1.5 percentage points over the same period.
31.18(b) Before entering into an agreement with an employer, the commissioner must
31.19investigate the applicability of other training programs and determine whether the job skills
31.20partnership grant program is a more suitable source of funding for the training and whether
31.21the training can be completed in a timely manner that meets the needs of the employer.
31.22    The investigation must be completed within 15 days or as soon as reasonably possible
31.23after the employer has provided the commissioner with all the requested information.
31.24(c) The commissioner shall prescribe the form of all applications for rebates, the
31.25timing for submission of applications, the execution of agreements with the commissioner,
31.26and the payment of rebates.
31.27    Subd. 2. Definitions. (a) For the purposes of this section, the terms in this
31.28subdivision have the meanings given.
31.29(b) "Agreement" means the agreement between an employer and the commissioner
31.30for a training partnership.
31.31(c) "Commissioner" means the commissioner of employment and economic
31.32development.
32.1(d) "Cost of training" means all necessary and incidental costs of providing training
32.2services. The term does not include the cost of purchasing equipment to be owned or used
32.3by the training or educational institution or service.
32.4(e) "Disability" has the meaning given under United States Code, title 42, chapter 126.
32.5(f) "Employee" means an individual employed in a new job.
32.6(g) "Employer" means an individual, corporation, partnership, limited liability
32.7company, or association providing new jobs and entering into an agreement.
32.8(h) "Long-term unemployed" has the meaning given by the United States Department
32.9of Labor, Bureau of Labor Standards.
32.10(i) "New job" means a job:
32.11(1) that is provided by a new or expanding business at a location outside of the
32.12metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2;
32.13(2) that provides 32 hours of work per week for a minimum of nine months of the
32.14year and is permanent with no planned termination date; and
32.15(3) for which the employee hired was not (i) formerly employed by the employer
32.16in the state or (ii) a replacement worker, including a worker newly hired as a result of a
32.17labor dispute.
32.18(j) "Rebate" means a payment by the commissioner to an employer for the cost
32.19of training an employee. Rebates are limited to a maximum of $3,000 per employee,
32.20except that the maximum rebate for the training costs of an employee with a disability, an
32.21employee who was considered long-term unemployed, or an employee who is a veteran,
32.22is $4,000 per employee.
32.23(k) "Training partnership" means a training services and rebate arrangement that is
32.24the subject of an agreement entered into between the commissioner and an employer.
32.25(l) "Training services" means training and education specifically directed to new
32.26jobs, determined to be appropriate by the commissioner, including in-house training;
32.27services provided by institutions of higher education, or federal, state, or local agencies; or
32.28private training or educational services. Administrative services, assessment, and testing
32.29costs may be considered as training services.
32.30    Subd. 3. Agreements; required terms. To be eligible for a rebate under this
32.31section, an employer must enter into an agreement with the commissioner that:
32.32(1) identifies the training costs to be incurred by the employer, who will provide the
32.33training services, and the amount of the rebate to be provided by the commissioner;
32.34(2) provides for a guarantee by the employer of payment for all training costs; and
32.35(3) provides that each employee must be paid wages of at least $13 per hour, plus
32.36benefits, except that during a period not to exceed three weeks, during which an employee
33.1is receiving training services, the employee may be paid wages of at least $11 per hour,
33.2plus benefits.
33.3    Subd. 4. Verification prior to payment of rebate. The commissioner shall not
33.4pay any rebate until all training costs and payment of the training costs by the employer
33.5have been verified.
33.6    Subd. 5. Allocation. (a) The commissioner shall allocate payment for rebates
33.7to employers only after receipt of a complete application for the rebate, including the
33.8provision of all of the required information and the execution of an agreement and
33.9approval by the commissioner. In approving applications, the commissioner must give
33.10priority to employers in counties with high seasonally adjusted unemployment rates.
33.11(b) The commissioner may utilize existing on-the-job training rebate or payment
33.12processes or procedures.
33.13    Subd. 6. Report. By February 1, 2015, the commissioner shall report to the
33.14committees of the house of representatives and the senate having jurisdiction over economic
33.15development policy and finance. The report must include the following information:
33.16(1) the total amount of rebates issued;
33.17(2) the number of individuals receiving training, including disaggregate data
33.18for employees who are individuals with disabilities, veterans, or who were long-term
33.19unemployed;
33.20(3) an analysis of the effectiveness of the rebate in encouraging employment; and
33.21(4) any other information the commissioner determines appropriate.

33.22    Sec. 12. PILOT PROGRAMS; PRECISION MANUFACTURING AND HEALTH
33.23CARE SERVICES.
33.24    The commissioner of labor and industry shall establish pilot programs to develop
33.25competency standards for apprenticeship programs in precision manufacturing and health
33.26care services. The pilot programs shall be administered by the registered apprenticeship
33.27program within the Department of Labor and Industry. In establishing the pilot programs,
33.28the commissioner may convene recognized industry experts and representative employers
33.29to assist in defining credible competency standards acceptable to the information
33.30technology and health care services industries.

33.31    Sec. 13. PILOT PROGRAM; INFORMATION TECHNOLOGY.
33.32    The commissioner of employment and economic development shall establish a pilot
33.33program to develop competency standards for an information technology apprenticeship
33.34program. In establishing the pilot program, the commissioner may convene recognized
34.1industry experts and representative employers to define credible competency standards
34.2acceptable to the information technology industry.

34.3    Sec. 14. OUTCOMES.
34.4    The outcomes expected from each of the pilot programs listed in sections 12 and
34.513 include:
34.6    (1) establishment of competency standards for entry level and at least two additional
34.7higher skill levels for apprenticeship training in each industry;
34.8    (2) verification of competency standards and skill levels and their transferability by
34.9representatives of each respective industry;
34.10    (3) clarification of ways for Minnesota educational institutions to engage in
34.11providing training to meet the competency standards established; and
34.12    (4) participation from the identified industry sectors.

34.13    Sec. 15. REPEALER.
34.14Minnesota Statutes 2012, section 116J.997, is repealed.


34.17    Section 1. Minnesota Statutes 2013 Supplement, section 176.011, subdivision 15,
34.18is amended to read:
34.19    Subd. 15. Occupational disease. (a) "Occupational disease" means a mental
34.20impairment as defined in paragraph (d) or physical disease arising out of and in the
34.21course of employment peculiar to the occupation in which the employee is engaged
34.22and due to causes in excess of the hazards ordinary of employment and shall include
34.23undulant fever. Physical stimulus resulting in mental injury and mental stimulus resulting
34.24in physical injury shall remain compensable. Mental impairment is not considered a
34.25disease if it results from a disciplinary action, work evaluation, job transfer, layoff,
34.26demotion, promotion, termination, retirement, or similar action taken in good faith by the
34.27employer. Ordinary diseases of life to which the general public is equally exposed outside
34.28of employment are not compensable, except where the diseases follow as an incident of an
34.29occupational disease, or where the exposure peculiar to the occupation makes the disease
34.30an occupational disease hazard. A disease arises out of the employment only if there be a
34.31direct causal connection between the conditions under which the work is performed and
34.32if the occupational disease follows as a natural incident of the work as a result of the
34.33exposure occasioned by the nature of the employment. An employer is not liable for
35.1compensation for any occupational disease which cannot be traced to the employment as a
35.2direct and proximate cause and is not recognized as a hazard characteristic of and peculiar
35.3to the trade, occupation, process, or employment or which results from a hazard to which
35.4the worker would have been equally exposed outside of the employment.
35.5(b) If immediately preceding the date of disablement or death, an employee was
35.6employed on active duty with an organized fire or police department of any municipality,
35.7as a member of the Minnesota State Patrol, conservation officer service, state crime bureau,
35.8as a forest officer by the Department of Natural Resources, state correctional officer, or
35.9sheriff or full-time deputy sheriff of any county, and the disease is that of myocarditis,
35.10coronary sclerosis, pneumonia or its sequel, and at the time of employment such employee
35.11was given a thorough physical examination by a licensed doctor of medicine, and a written
35.12report thereof has been made and filed with such organized fire or police department, with
35.13the Minnesota State Patrol, conservation officer service, state crime bureau, Department
35.14of Natural Resources, Department of Corrections, or sheriff's department of any county,
35.15which examination and report negatived any evidence of myocarditis, coronary sclerosis,
35.16pneumonia or its sequel, the disease is presumptively an occupational disease and shall
35.17be presumed to have been due to the nature of employment. If immediately preceding
35.18the date of disablement or death, any individual who by nature of their position provides
35.19emergency medical care, or an employee who was employed as a licensed police officer
35.20under section 626.84, subdivision 1; firefighter; paramedic; state correctional officer;
35.21emergency medical technician; or licensed nurse providing emergency medical care; and
35.22who contracts an infectious or communicable disease to which the employee was exposed
35.23in the course of employment outside of a hospital, then the disease is presumptively an
35.24occupational disease and shall be presumed to have been due to the nature of employment
35.25and the presumption may be rebutted by substantial factors brought by the employer
35.26or insurer. Any substantial factors which shall be used to rebut this presumption and
35.27which are known to the employer or insurer at the time of the denial of liability shall be
35.28communicated to the employee on the denial of liability.
35.29(c) A firefighter on active duty with an organized fire department who is unable
35.30to perform duties in the department by reason of a disabling cancer of a type caused
35.31by exposure to heat, radiation, or a known or suspected carcinogen, as defined by the
35.32International Agency for Research on Cancer, and the carcinogen is reasonably linked to
35.33the disabling cancer, is presumed to have an occupational disease under paragraph (a). If a
35.34firefighter who enters the service after August 1, 1988, is examined by a physician prior to
35.35being hired and the examination discloses the existence of a cancer of a type described
36.1in this paragraph, the firefighter is not entitled to the presumption unless a subsequent
36.2medical determination is made that the firefighter no longer has the cancer.
36.3(d) For the purposes of this chapter, "mental impairment" means a diagnosis of
36.4post-traumatic stress disorder by a licensed psychiatrist or psychologist. For the purposes
36.5of this chapter, "post-traumatic stress disorder" means the condition as described in
36.6the most recently published edition of the Diagnostic and Statistical Manual of Mental
36.7Disorders by the American Psychiatric Association. For purposes of section 79.34,
36.8subdivision 2, one or more compensable mental impairment claims arising out of a single
36.9event or occurrence shall constitute a single loss occurrence.
36.10EFFECTIVE DATE.This section is effective for employees with dates of injury on
36.11or after October 1, 2013.

36.12    Sec. 2. Minnesota Statutes 2012, section 176.129, subdivision 2a, is amended to read:
36.13    Subd. 2a. Payments to fund. (a) On or before April 1 of each year, all self-insured
36.14employers shall report paid indemnity losses and insurers shall report paid indemnity
36.15losses and standard workers' compensation premium in the form and manner prescribed
36.16by the commissioner. On June 1 of each year, the commissioner shall determine the
36.17total amount needed to pay all estimated liabilities, including administrative expenses,
36.18of the special compensation fund for the following fiscal year. The commissioner shall
36.19assess this amount against self-insured employers and insurers. The total amount of the
36.20assessment must be allocated between self-insured employers and insured employers
36.21based on paid indemnity losses for the preceding calendar year, as provided by paragraph
36.22(b). The method of assessing self-insured employers must be based on paid indemnity
36.23losses, as provided by paragraph (c). The method of assessing insured employers is based
36.24on standard workers' compensation premium, as provided by paragraph (c). Each insurer
36.25shall collect the assessment through a policyholder surcharge as provided by paragraph
36.26(d). On or before June 30 of each year, the commissioner shall provide notification to each
36.27self-insured employer and insurer of amounts due. Each self-insured employer and each
36.28insurer shall pay at least one-half of the amount due to the commissioner for deposit into
36.29the special compensation fund on or before August 1 of the same calendar year. The
36.30remaining balance is due on February 1 of the following calendar year. Each insurer must
36.31pay the full amount due as stated in the commissioner's notification, regardless of the
36.32amount the insurer actually collects from the premium policyholder surcharge.
36.33(b) The portion of the total assessment that is allocated to self-insured employers
36.34is the proportion that paid indemnity losses made by all self-insured employers bore to
36.35the total paid indemnity losses made by all self-insured employers and insured employers
37.1during the preceding calendar year. The portion of the total assessment that is allocated
37.2to insured employers is the proportion that paid indemnity losses made on behalf of
37.3all insured employers bore to the total paid indemnity losses made by all self-insured
37.4employers and insured employers during the preceding calendar year.
37.5(c) The portion of the total assessment allocated to self-insured employers that
37.6shall be paid by each self-insured employer must be based upon paid indemnity losses
37.7made by that self-insured employer during the preceding calendar year. The portion of
37.8the total assessment allocated to insured employers that is paid by each insurer must be
37.9based on standard workers' compensation premium earned in the state by that insurer
37.10during the preceding current calendar year. If the current calendar year earned standard
37.11workers' compensation premium is not available, the commissioner shall estimate the
37.12portion of the total assessment allocated to insured employers that is paid by each insurer
37.13using the earned standard workers' compensation premium from the preceding calendar
37.14year. The commissioner shall then perform a reconciliation and final determination of
37.15the portion of the total assessment to be paid by each insurer when the earned standard
37.16workers' compensation premium for the current calendar year is calculable, but the final
37.17determination must not be made after December 1 of the following calendar year. An
37.18employer who has ceased to be self-insured shall continue to be liable for assessments
37.19based on paid indemnity losses arising out of injuries occurring during periods when the
37.20employer was self-insured, unless the self-insured employer has purchased a replacement
37.21policy covering those losses. An insurer who assumes a self-insured employer's obligation
37.22under a replacement policy shall separately report and pay assessments based on indemnity
37.23losses paid by the insurer under the replacement policy. The replacement policy may
37.24provide for reimbursement of the assessment to the insurer by the self-insured employer.
37.25(d) Insurers shall collect the assessments from their insured employers through
37.26a surcharge based on standard workers' compensation premium for each employer.
37.27Assessments when collected do not constitute an element of loss for the purpose of
37.28establishing rates for workers' compensation insurance but for the purpose of collection
37.29are treated as separate costs imposed on insured employers. The premium policyholder
37.30 surcharge is included in the definition of gross premium as defined in section 297I.01 only
37.31for premium tax purposes. An insurer may cancel a policy for nonpayment of the premium
37.32 policyholder surcharge. The premium policyholder surcharge is excluded from the
37.33definition of premium for all other purposes, except as otherwise provided in this paragraph.
37.34(e) For purposes of this section, the workers' compensation assigned risk plan
37.35established under section 79.252, shall report and pay assessments on standard workers'
37.36compensation premium in the same manner as an insurer.
38.1EFFECTIVE DATE.This section is effective for assessments due under Minnesota
38.2Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February
38.31, 2014, and for the first reconciliation and final determination under Minnesota Statutes,
38.4section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.

38.5    Sec. 3. Minnesota Statutes 2012, section 176.129, subdivision 7, is amended to read:
38.6    Subd. 7. Refunds. In case deposit is or has been made pursuant to subdivision
38.72a by mistake or inadvertence, or under circumstances that justice requires a refund,
38.8the commissioner of management and budget is authorized to refund the deposit under
38.9order of the commissioner, a compensation judge, the Workers' Compensation Court of
38.10Appeals, or a district court. Claims for refunds must be submitted to the commissioner
38.11within three years of the assessment due date of reconciliation and final determination
38.12under subdivision 2a. There is appropriated to the commissioner from the fund an amount
38.13sufficient to make the refund and payment.
38.14EFFECTIVE DATE.This section is effective for assessments due under Minnesota
38.15Statutes, section 176.129, subdivision 2a, paragraph (a), on August 1, 2013, and February
38.161, 2014, and for the first reconciliation and final determination under Minnesota Statutes,
38.17section 176.129, subdivision 2a, paragraph (c), due on or before December 1, 2014.

38.18    Sec. 4. Minnesota Statutes 2012, section 176.135, subdivision 7, is amended to read:
38.19    Subd. 7. Medical bills and records. (a) Health care providers shall submit to the
38.20insurer an itemized statement of charges in the standard electronic transaction format when
38.21required by section 62J.536 or, if there is no prescribed standard electronic transaction
38.22format, on a billing form prescribed by the commissioner. Health care providers shall also
38.23submit copies of medical records or reports that substantiate the nature of the charge and its
38.24relationship to the work injury. Health care providers may charge for copies of any records
38.25or reports that are in existence and directly relate to the items for which payment is sought
38.26under this chapter. The commissioner shall adopt a schedule of reasonable charges by rule.
38.27A health care provider shall not collect, attempt to collect, refer a bill for collection,
38.28or commence an action for collection against the employee, employer, or any other party
38.29until the information required by this section has been furnished.
38.30A United States government facility rendering health care services to veterans is not
38.31subject to the uniform billing form requirements of this subdivision.
38.32(b) For medical services provided under this section on or after October 1,
38.332014, the codes from the International Classification of Diseases, Tenth Edition,
38.34Clinical Modification/Procedure Coding System (ICD-10), must be used to report
39.1medical diagnoses and hospital inpatient procedures. The commissioner must replace
39.2the codes from the International Classification of Diseases, Ninth Edition, Clinical
39.3Modification/Procedure Coding System (ICD-9), with equivalent ICD-10 codes wherever
39.4the ICD-9 codes appear in rules adopted under this chapter. The commissioner must use
39.5the General Equivalence Mappings established by the Centers for Medicare and Medicaid
39.6Services to replace the ICD-9 diagnostic codes with ICD-10 codes in the rules.

39.7    Sec. 5. Minnesota Statutes 2012, section 176.136, subdivision 1a, is amended to read:
39.8    Subd. 1a. Relative value fee schedule. (a) The liability of an employer for services
39.9included in the medical fee schedule is limited to the maximum fee allowed by the
39.10schedule in effect on the date of the medical service, or the provider's actual fee, whichever
39.11is lower. The commissioner shall adopt permanent rules regulating fees allowable for
39.12medical, chiropractic, podiatric, surgical, and other health care provider treatment or
39.13service, including those provided to hospital outpatients, by implementing a relative value
39.14fee schedule. The commissioner may adopt by reference, according to the procedures in
39.15paragraph (h), clause (2), the relative value fee schedule tables adopted for the federal
39.16Medicare program. The relative value fee schedule must contain reasonable classifications
39.17including, but not limited to, classifications that differentiate among health care provider
39.18disciplines. The conversion factors for the original relative value fee schedule must
39.19reasonably reflect a 15 percent overall reduction from the medical fee schedule most
39.20recently in effect. The reduction need not be applied equally to all treatment or services,
39.21but must represent a gross 15 percent reduction.
39.22(b) Effective October 1, 2005, the commissioner shall remove all scaling factors
39.23from the relative value units and establish four separate conversion factors according to
39.24paragraphs (c) and (d) for each of the following parts of Minnesota Rules:
39.25(1) medical/surgical services in Minnesota Rules, part 5221.4030, as defined in part
39.265221.0700, subpart 3, item C, subitem (2);
39.27(2) pathology and laboratory services in Minnesota Rules, part 5221.4040, as
39.28defined in part 5221.0700, subpart 3, item C, subitem (3);
39.29(3) physical medicine and rehabilitation services in Minnesota Rules, part
39.305221.4050, as defined in part 5221.0700, subpart 3, item C, subitem (4); and
39.31(4) chiropractic services in Minnesota Rules, part 5221.4060, as defined in part
39.325221.0700, subpart 3, item C, subitem (5).
39.33(c) The four conversion factors established under paragraph (b) shall be calculated
39.34so that there is no change in each maximum fee for each service under the current fee
39.35schedule, except as provided in paragraphs (d) and (e).
40.1(d) By October 1, 2006, the conversion factor for chiropractic services described in
40.2paragraph (b), clause (4), shall be increased to equal 72 percent of the conversion factor
40.3for medical/surgical services described in paragraph (b), clause (1). Beginning October 1,
40.42005, the increase in chiropractic conversion factor shall be phased in over two years by
40.5approximately equal percentage point increases.
40.6(e) When adjusting the conversion factors in accordance with paragraph (g) on
40.7October 1, 2005, and October 1, 2006, the commissioner may adjust by no less than zero,
40.8all of the conversion factors as necessary to offset any overall increase in payments under
40.9the fee schedule resulting from the increase in the chiropractic conversion factor.
40.10(f) The commissioner shall give notice of the relative value units and conversion
40.11factors established under paragraphs (b), (c), and (d) according to the procedures in section
40.1214.386, paragraph (a). The relative value units and conversion factors established under
40.13paragraphs (b), (c), and (d) are not subject to expiration under section 14.386, paragraph (b).
40.14(g) (c) The conversion factors shall be adjusted as follows:
40.15(1) After permanent rules have been adopted to implement this section, the conversion
40.16factors must be adjusted annually on October 1 by no more than the percentage change
40.17computed under section 176.645, but without the annual cap provided by that section.
40.18(2) Each time the workers' compensation relative value fee schedule tables are
40.19updated under paragraph (h), the commissioner shall adjust the conversion factors so that,
40.20for services in both fee schedules, there is no difference between the overall payment in each
40.21category of service listed in paragraph (b) under the new schedule and the overall payment
40.22for that category under the workers' compensation fee schedule most recently in effect.
40.23This adjustment must be made before making any additional adjustment under clause (1).
40.24(h) (d) The commissioner shall give notice of the adjusted conversion factors and
40.25updates to the relative value fee schedule as follows:
40.26(1) The commissioner shall annually give notice in the State Register of the adjusted
40.27conversion factors and any amendments to rules to implement Medicare relative value
40.28tables incorporated by reference under this subdivision. The notices of the adjusted
40.29conversion factors and amended rules to implement the relative value tables are subject
40.30to the requirements of section 14.386, paragraph (a). The annual adjustments to the
40.31conversion factors and the medical fee schedules adopted under this section, including all
40.32previous fee schedules, are not subject to expiration under section 14.386, paragraph (b).
40.33(2) The commissioner shall periodically, but at least once every three years, update
40.34the workers' compensation relative value tables by incorporating by reference the relative
40.35value tables in the national physician fee schedule relative value file established by the
40.36Centers for Medicare and Medicaid Services. The commissioner shall publish the notices
41.1of the incorporation by reference in the State Register at least 60 days before the tables
41.2are to become effective for purposes of payment under this section. Each notice of
41.3incorporation must state the date the incorporated tables will become effective and must
41.4include information on how the Medicare relative value tables may be obtained. The
41.5published notices of incorporation by reference and the incorporated tables are not rules
41.6subject to section 14.386 or other provisions of chapter 14, but have the force and effect of
41.7law as of the date specified in the notices.

41.8    Sec. 6. Minnesota Statutes 2012, section 176.231, subdivision 2, is amended to read:
41.9    Subd. 2. Initial report, written report. Where subdivision 1 requires an injury
41.10to be reported within 48 hours, the employer may make an initial report by telephone,
41.11telegraph, or personal notice, and file a written report of the injury within seven days from
41.12its occurrence or within such time as the commissioner of labor and industry designates.
41.13All written reports of injuries required by subdivision 1 shall include the date of injury.
41.14The reports shall be on a form designed by the commissioner, with a clear copy suitable
41.15for imaging to the commissioner, one copy to the insurer, and one copy to the employee.
41.16The employer must give the employee the "Minnesota Workers' Compensation
41.17System Employee Information Sheet" at the time the employee is given a copy of the
41.18first report of injury.
41.19If an insurer or self-insurer repeatedly fails to pay benefits within three days of the
41.20due date, pursuant to section 176.221, the insurer or self-insurer shall be ordered by the
41.21commissioner to explain, in person, the failure to pay benefits due in a reasonable time.
41.22If prompt payments are not thereafter made, the commissioner shall refer the insurer or
41.23self-insurer to the commissioner of commerce for action pursuant to section 176.225,
41.24subdivision 4 .

41.25    Sec. 7. Minnesota Statutes 2012, section 176.305, subdivision 1a, is amended to read:
41.26    Subd. 1a. Settlement and pretrial conferences; summary decision. The chief
41.27administrative law judge shall promptly assign the petition to a compensation judge under
41.28section 176.307, and shall schedule a settlement conference before a compensation judge,
41.29to be held no later than 180 days after a claim petition was filed, or 45 days after a petition
41.30to discontinue, objection to discontinuance, or request for formal hearing was filed.
41.31All parties must appear at the settlement conference, either personally or by
41.32representative, must be prepared to discuss settlement of all issues, and must be prepared
41.33to discuss or present the information required by the joint rules of the division and the
41.34office. If a representative appears on behalf of a party, the representative must have
42.1authority to fully settle the matter. The parties shall serve and file a pretrial statement no
42.2fewer than five days before the settlement conference.
42.3If settlement is not reached, the chief administrative law judge shall schedule a
42.4hearing to be held within 90 days from the scheduled settlement conference. However,
42.5the hearing must be held earlier than 90 days from the scheduled settlement conference if
42.6this chapter requires an expedited hearing to be held at an earlier date. The hearing must
42.7be held before a compensation judge other than the compensation judge who conducted
42.8the settlement conference. The compensation judge assigned to hold the hearing may
42.9choose to conduct a pretrial conference to clarify the issues and evidence that will be
42.10presented at the hearing.
42.11Cancellations and continuations of proceedings are disfavored but may be granted
42.12upon the showing of good cause under section 176.341, subdivision 4.
42.13The compensation judge conducting the settlement conference may require the
42.14parties to present copies of all documentary evidence not previously filed and a summary
42.15of the evidence they will present at a formal hearing. If appropriate, a written summary
42.16decision shall be issued within ten days after the conference stating the issues and a
42.17determination of each issue. If a party fails to appear at the conference, all issues may
42.18be determined contrary to the absent party's interest, provided the party in attendance
42.19presents a prima facie case.
42.20The summary decision is final unless a written request for a formal hearing is served
42.21on all parties and filed with the commissioner within 30 days after the date of service
42.22and filing of the summary decision. Within ten days after receipt of the request, the
42.23commissioner shall certify the matter to the office for a de novo hearing. In proceedings
42.24under section 176.2615, the summary decision is final and not subject to appeal or de
42.25novo proceedings.

42.26    Sec. 8. REPEALER.
42.27Minnesota Statutes 2012, sections 175.006, subdivision 1; 175.08; 175.14; 175.26;
42.28176.1311; 176.136, subdivision 3; 176.2615; and 176.641, are repealed.


42.31    Section 1. Minnesota Statutes 2012, section 179.02, is amended by adding a
42.32subdivision to read:
43.1    Subd. 6. Receipt of gifts, money; appropriation. (a) The commissioner may apply
43.2for, accept, and disburse gifts, bequests, grants, or payments for services from the United
43.3States, the state, private foundations, or any other source.
43.4    (b) Money received by the commissioner under this subdivision must be deposited in
43.5a separate account in the state treasury and invested by the State Board of Investment. The
43.6amount deposited, including investment earnings, is appropriated to the commissioner
43.7to carry out duties of the commissioner.
43.8EFFECTIVE DATE.This section is effective the day following final enactment.

43.9    Sec. 2. Minnesota Statutes 2012, section 469.084, is amended by adding a subdivision
43.10to read:
43.11    Subd. 1a. Meetings by telephone or other electronic means. The port authority
43.12may conduct meetings as provided by section 13D.015.


43.15    Section 1. Laws 2013, chapter 85, article 1, section 5, is amended to read:

43.16

Sec. 5. EXPLORE MINNESOTA TOURISM

$

13,988,000

$

13,988,000

43.17(a) To develop maximum private sector
43.18involvement in tourism, $500,000 in fiscal
43.19year 2014 and $500,000 in fiscal year 2015
43.20must be matched by Explore Minnesota
43.21Tourism from nonstate sources. Each $1 of
43.22state incentive must be matched with $6 of
43.23private sector funding. Cash match is defined
43.24as revenue to the state or documented cash
43.25expenditures directly expended to support
43.26Explore Minnesota Tourism programs. Up
43.27to one-half of the private sector contribution
43.28may be in-kind or soft match. The incentive
43.29in fiscal year 2014 shall be based on fiscal
43.30year 2013 private sector contributions. The
43.31incentive in fiscal year 2015 shall be based on
43.32fiscal year 2014 private sector contributions.
43.33This incentive is ongoing.
44.1Funding for the marketing grants is available
44.2either year of the biennium. Unexpended
44.3grant funds from the first year are available
44.4in the second year.
44.5(b) $100,000 of the second year appropriation
44.6is for a grant to the Mille Lacs Tourism
44.7Council to enhance marketing activities
44.8related to tourism promotion in the Mille
44.9Lacs Lake area.
44.10(c) $100,000 of the second year appropriation
44.11is for additional marketing activities.

44.12    Sec. 2. RACING COMMISSION.
44.13$100,000 in fiscal year 2014 and $85,000 in fiscal year 2015 are appropriated
44.14from the racing and card playing regulation account in the special revenue fund to the
44.15Minnesota Racing Commission. These appropriations are onetime and are available
44.16either year of the biennium.

44.20

Section 1. SUMMARY OF APPROPRIATIONS.

44.21The amounts shown in this section summarize direct appropriations, by fund, made
44.22in this article.

44.23			2014		2015		Total
44.24	General	$	-0-	$	36,475,000	$	36,496,000
44.25 44.26	State Government Special Revenue		6,359,000		6,865,000		13,224,000
44.27	Total	$	6,359,000	$	43,361,000	$	49,720,000

44.28

Sec. 2. APPROPRIATIONS.

44.29The sums shown in the columns marked "Appropriations" are added to the
44.30appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes
44.31specified in this article. The appropriations are from the general fund, or another named
44.32fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
44.33and "2015" used in this article mean that the addition to the appropriation listed under
45.1them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
45.2Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
45.3day following final enactment.

45.4				APPROPRIATIONS
45.5				Available for the Year
45.6				Ending June 30
45.7					2014		2015

45.8

Sec. 3. DEPARTMENT OF PUBLIC SAFETY

45.9

Subdivision 1.Total Appropriation

$

6,359,000

$

13,126,000

45.10	Appropriations by Fund
45.11	General	-0-	6,261,000
45.12 45.13	State Government Special Revenue	6,359,000	6,865,000

45.14The amounts that may be spent for each
45.15purpose are specified in the following
45.16subdivisions.

45.17

Subd. 2.Emergency Communication Networks

5,059,000

6,865,000

45.18This appropriation is from the state
45.19government special revenue fund for 911
45.20emergency telecommunications services.

45.21

Subd. 3.Office of Justice Programs

-0-

600,000

45.22(a) $300,000 in 2015 is for grants to
45.23fund emergency shelter, housing, or
45.24advocacy services targeted to culturally
45.25specific programming for newer immigrant
45.26populations. The funds must be awarded
45.27to a program or programs that demonstrate
45.28leadership in the community to be served.
45.29This appropriation is added to the base.
45.30(b) $300,000 in 2015 is for grants to sexual
45.31assault advocacy programs for sexual
45.32violence community prevention networks.
45.33For purposes of this section, "sexual
45.34assault" means a violation of Minnesota
46.1Statutes, sections 609.342 to 609.3453. This
46.2appropriation is added to the base.

46.3

Subd. 4.Emergency Management

-0-

5,661,000

46.4$5,661,000 in 2015 is for the disaster
46.5assistance contingency account in Minnesota
46.6Statutes, section 12.221. These funds are
46.7available until spent.

46.8

Subd. 5.Fire Safety Account

1,300,000

-0-

46.9$1,300,000 in 2014 is appropriated from the
46.10fire safety account in the special revenue
46.11fund to the commissioner of public safety
46.12for activities and programs under Minnesota
46.13Statutes, section 299F.012. This is a onetime
46.14appropriation. By January 15, 2015, the
46.15commissioner shall report to the chairs and
46.16ranking minority members of the legislative
46.17committees with jurisdiction over the fire
46.18safety account regarding the balances and
46.19uses of the account.

46.20

Sec. 4. CORRECTIONS

46.21

Subdivision 1.Total Appropriation

$

-0-

$

30,164,000

46.22The amounts that may be spent for each
46.23purpose are specified in the following
46.24subdivisions.

46.25

Subd. 2.Correctional Institutions

-0-

27,321,000

46.26This includes a onetime appropriation of
46.27$11,089,000.

46.28

Subd. 3.Community Services

-0-

1,900,000

46.29

Subd. 4.Operations Support

-0-

900,000

46.30 46.31

Sec. 5. PEACE OFFICER STANDARDS AND TRAINING (POST) BOARD

-0-

50,000

47.1$50,000 in 2015 is for training state and
47.2local community safety personnel in the
47.3use of crisis de-escalation techniques for
47.4use with Minnesota veterans following
47.5their return from active military service in
47.6a combat zone. The director may consult
47.7with any other state or local governmental
47.8official or nongovernmental authority the
47.9director determines to be relevant, to include
47.10postsecondary institutions, when selecting
47.11a service provider for this training. The
47.12training provider must have a demonstrated
47.13understanding of the transitions and
47.14challenges that veterans may experience
47.15during their re-entry into society following
47.16combat service. The training opportunities
47.17provided must be reasonably distributed
47.18statewide. This is a onetime appropriation.

47.19    Sec. 6. Laws 2009, chapter 83, article 1, section 10, subdivision 7, is amended to read:

47.20

Subd. 7.Emergency Communication Networks

66,470,000

70,233,000

47.21This appropriation is from the state
47.22government special revenue fund for 911
47.23emergency telecommunications services.
47.24(a) Public Safety Answering Points.
47.25$13,664,000 each year is to be distributed
47.26as provided in Minnesota Statutes, section
47.27403.113, subdivision 2 .
47.28(b) Medical Resource Communication
47.29Centers. $683,000 each year is for grants
47.30to the Minnesota Emergency Medical
47.31Services Regulatory Board for the Metro
47.32East and Metro West Medical Resource
47.33Communication Centers that were in
47.34operation before January 1, 2000.
48.1(c) ARMER Debt Service. $17,557,000 the
48.2first year and $23,261,000 the second year
48.3are to the commissioner of finance to pay
48.4debt service on revenue bonds issued under
48.5Minnesota Statutes, section 403.275.
48.6Any portion of this appropriation not needed
48.7to pay debt service in a fiscal year may be
48.8used by the commissioner of public safety to
48.9pay cash for any of the capital improvements
48.10for which bond proceeds were appropriated
48.11by Laws 2005, chapter 136, article 1, section
48.129, subdivision 8, or Laws 2007, chapter 54,
48.13article 1, section 10, subdivision 8.
48.14(d) Metropolitan Council Debt Service.
48.15$1,410,000 each year is to the commissioner
48.16of finance for payment to the Metropolitan
48.17Council for debt service on bonds issued
48.18under Minnesota Statutes, section 403.27.
48.19(e) ARMER State Backbone Operating
48.20Costs. $5,060,000 each year is to the
48.21commissioner of transportation for costs
48.22of maintaining and operating the statewide
48.23radio system backbone.
48.24(f) ARMER Improvements. $1,000,000
48.25each year is for the Statewide Radio Board for
48.26costs of design, construction, maintenance
48.27of, and improvements to those elements
48.28of the statewide public safety radio and
48.29communication system that support mutual
48.30aid communications and emergency medical
48.31services or provide enhancement of public
48.32safety communication interoperability.
48.33(g) Next Generation 911. $3,431,000 the
48.34first year and $6,490,000 the second year
48.35are to replace the current system with the
49.1Next Generation Internet Protocol (IP) based
49.2network. This appropriation is available until
49.3expended. The base level of funding for
49.4fiscal year 2012 shall be $2,965,000.
49.5(h) Grants to Local Government.
49.6$5,000,000 the first year is for grants to
49.7local units of government to assist with
49.8the transition to the ARMER system. This
49.9appropriation is available until June 30, 2012.

49.10    Sec. 7. Laws 2013, chapter 86, article 1, section 12, subdivision 3, as amended by
49.11Laws 2013, chapter 140, section 2, is amended to read:

49.12

Subd. 3.Criminal Apprehension

47,588,000

47,197,000

49.13	Appropriations by Fund
49.14	General	42,315,000	42,924,000
49.15	Special Revenue	3,000,000	2,000,000
49.16 49.17	State Government Special Revenue	7,000	7,000
49.18	Trunk Highway	2,266,000	2,266,000

49.19

(a) DWI Lab Analysis; Trunk Highway Fund

49.20Notwithstanding Minnesota Statutes, section
49.21161.20, subdivision 3 , $1,941,000 each year
49.22is from the trunk highway fund for laboratory
49.23analysis related to driving-while-impaired
49.24cases.

49.25

(b) Criminal History System

49.26$50,000 the first year and $580,000 the
49.27second year from the general fund and,
49.28notwithstanding Minnesota Statutes, section
49.29299A.705, subdivision 4 , $3,000,000 the
49.30first year and $2,000,000 the second year
49.31from the vehicle services account in the
49.32special revenue fund are to replace the state
49.33criminal history system. This appropriation
49.34is available until expended. Of this amount,
50.1$2,980,000 the first year and $2,580,000
50.2the second year are for a onetime transfer
50.3to the Office of Enterprise Technology for
50.4start-up costs. Service level agreements
50.5must document all project-related transfers
50.6under this paragraph. Ongoing operating
50.7and support costs for this system shall
50.8be identified and incorporated into future
50.9service level agreements.
50.10The commissioner is authorized to use funds
50.11appropriated under this paragraph for the
50.12purposes specified in paragraph (c).
50.13The general fund base for this program is
50.14$4,930,000 in fiscal year 2016 and $417,000
50.15in fiscal year 2017.

50.16

(c) Criminal Reporting System

50.17$1,360,000 the first year and $1,360,000 the
50.18second year from the general fund are to
50.19replace the state's crime reporting system
50.20 and include one full-time equivalent business
50.21analyst. This appropriation is available until
50.22expended. Of these amounts, $1,360,000
50.23the first year and $1,360,000 $1,290,000
50.24 the second year are for a onetime transfer
50.25to the Office of Enterprise Technology for
50.26start-up costs. Service level agreements
50.27must document all project-related transfers
50.28under this paragraph. Ongoing operating
50.29and support costs for this system shall
50.30be identified and incorporated into future
50.31service level agreements.
50.32The commissioner is authorized to use funds
50.33appropriated under this paragraph for the
50.34purposes specified in paragraph (b).
51.1The base funding for this program is
51.2$1,360,000 in fiscal year 2016 and $380,000
51.3in fiscal year 2017.

51.4

(d) Forensic Laboratory

51.5$125,000 the first year and $125,000 the
51.6second year from the general fund and,
51.7notwithstanding Minnesota Statutes, section
51.8161.20, subdivision 3 , $125,000 the first
51.9year and $125,000 the second year from the
51.10trunk highway fund are to replace forensic
51.11laboratory equipment at the Bureau of
51.12Criminal Apprehension.
51.13$200,000 the first year and $200,000 the
51.14second year from the general fund and,
51.15notwithstanding Minnesota Statutes, section
51.16161.20, subdivision 3 , $200,000 the first
51.17year and $200,000 the second year from the
51.18trunk highway fund are to improve forensic
51.19laboratory staffing at the Bureau of Criminal
51.20Apprehension.

51.21

(e) Livescan Fingerprinting

51.22$310,000 the first year and $389,000 the
51.23second year from the general fund are to
51.24maintain Livescan fingerprinting machines.

51.25

(f) Report

51.26If the vehicle services special revenue account
51.27accrues an unallocated balance in excess
51.28of 50 percent of the previous fiscal year's
51.29expenditures, the commissioner of public
51.30safety shall submit a report to the chairs
51.31and ranking minority members of the house
51.32of representatives and senate committees
51.33with jurisdiction over transportation and
51.34public safety policy and finance. The report
52.1must contain specific policy and legislative
52.2recommendations for reducing the fund
52.3balance and avoiding future excessive fund
52.4balances. The report is due within three
52.5months of the fund balance exceeding the
52.6threshold established in this paragraph.

52.7    Sec. 8. Laws 2013, chapter 86, article 1, section 13, is amended to read:

52.8 52.9

Sec. 13. PEACE OFFICER STANDARDS AND TRAINING (POST) BOARD

$

3,870,000

$

3,870,000

52.10(a) Excess Amounts Transferred
52.11This appropriation is from the peace officer
52.12training account in the special revenue fund.
52.13Any new receipts credited to that account in
52.14the first year in excess of $3,870,000 must be
52.15transferred and credited to the general fund.
52.16Any new receipts credited to that account in
52.17the second year in excess of $3,870,000 must
52.18be transferred and credited to the general
52.19fund.
52.20(b) Peace Officer Training
52.21Reimbursements
52.22$2,734,000 each year is for reimbursements
52.23to local governments for peace officer
52.24training costs.
52.25(c) Training; Sexually Exploited and
52.26Trafficked Youth
52.27Of the appropriation in paragraph (b),
52.28$100,000 the first year is for reimbursements
52.29to local governments for peace officer
52.30training costs on sexually exploited and
52.31trafficked youth, including effectively
52.32identifying sex trafficked victims and
52.33traffickers, investigation techniques, and
53.1assisting sexually exploited youth. These
53.2funds are available until June 30, 2016.
53.3Reimbursement shall be provided on a flat
53.4fee basis of $100 per diem per officer.
53.5EFFECTIVE DATE.This section is effective the day following final enactment.


53.8    Section 1. Minnesota Statutes 2012, section 13.84, subdivision 5, is amended to read:
53.9    Subd. 5. Disclosure. Private or confidential court services data shall not be
53.10disclosed except:
53.11(a) pursuant to section 13.05;
53.12(b) pursuant to a statute specifically authorizing disclosure of court services data;
53.13(c) with the written permission of the source of confidential data;
53.14(d) to the court services department, parole or probation authority or state or local
53.15correctional agency or facility having statutorily granted supervision over the individual
53.16subject of the data;
53.17(e) pursuant to subdivision 6; or
53.18(f) pursuant to a valid court order.; or
53.19(g) pursuant to section 611A.06, subdivision 6.
53.20EFFECTIVE DATE.This section is effective January 1, 2015.

53.21    Sec. 2. Minnesota Statutes 2012, section 13.84, subdivision 6, is amended to read:
53.22    Subd. 6. Public benefit data. (a) The responsible authority or its designee of a
53.23parole or probation authority or correctional agency may release private or confidential
53.24court services data related to:
53.25(1) criminal acts to any law enforcement agency, if necessary for law enforcement
53.26purposes; and
53.27(2) criminal acts or delinquent acts to the victims of criminal or delinquent acts to the
53.28extent that the data are necessary for the victim to assert the victim's legal right to restitution.
53.29(b) A parole or probation authority, a correctional agency, or agencies that provide
53.30correctional services under contract to a correctional agency may release to a law
53.31enforcement agency the following data on defendants, parolees, or probationers: current
54.1address, dates of entrance to and departure from agency programs, and dates and times of
54.2any absences, both authorized and unauthorized, from a correctional program.
54.3(c) The responsible authority or its designee of a juvenile correctional agency may
54.4release private or confidential court services data to a victim of a delinquent act to the
54.5extent the data are necessary to enable the victim to assert the victim's right to request
54.6notice of release under section 611A.06. The data that may be released include only the
54.7name, home address, and placement site of a juvenile who has been placed in a juvenile
54.8correctional facility as a result of a delinquent act.
54.9(d) Upon the victim's written or electronic request and, if the victim and offender
54.10have been household or family members as defined in section 518B.01, subdivision 1,
54.11paragraph (b), the commissioner of corrections or the commissioner's designee may
54.12disclose to the victim of an offender convicted of a crime pursuant to section 609.02,
54.13subdivision 16, notification of the city and five-digit zip code of the offender's residency
54.14upon or after release from a Department of Corrections facility, unless:
54.15(1) the offender is not supervised by the commissioner of corrections or the
54.16commissioner's designee at the time of the victim's request;
54.17(2) the commissioner of corrections or the commissioner's designee does not have
54.18the city or zip code; or
54.19(3) the commissioner of corrections or the commissioner's designee reasonably
54.20believes that disclosure of the city or zip code of the offender's residency creates a risk
54.21to the victim, offender, or public safety.
54.22EFFECTIVE DATE.This section is effective January 1, 2015.

54.23    Sec. 3. Minnesota Statutes 2012, section 243.167, subdivision 1, is amended to read:
54.24    Subdivision 1. Definition. As used in this section, "crime against the person" means
54.25a violation of any of the following or a similar law of another state or of the United States:
54.26section 609.165; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222; 609.223;
54.27609.2231 ; 609.224, subdivision 2 or 4; 609.2242, subdivision 2 or 4; 609.2247; 609.235;
54.28609.245, subdivision 1 ; 609.25; 609.255; 609.3451, subdivision 2 3; 609.498, subdivision
54.291 ; 609.582, subdivision 1; or 617.23, subdivision 2; or any felony-level violation of
54.30section 609.229; 609.377; 609.749; or 624.713.

54.31    Sec. 4. Minnesota Statutes 2012, section 299F.012, subdivision 1, is amended to read:
54.32    Subdivision 1. Authorized programs within department. From the revenues
54.33appropriated from the fire safety account, established under section 297I.06, subdivision
54.343, the commissioner of public safety may expend funds for the activities and programs
55.1identified by the advisory committee established under subdivision 2 and recommended
55.2to the commissioner of public safety. The commissioner shall not expend funds without
55.3the recommendation of the advisory committee established under subdivision 2. The
55.4commissioner shall not expend funds without the recommendation of the advisory
55.5committee established under subdivision 2. These funds are to be used to provide
55.6resources needed for identified activities and programs of the Minnesota fire service and to
55.7ensure the State Fire Marshal Division responsibilities are fulfilled.

55.8    Sec. 5. Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:
55.9    Subd. 2. Fire Service Advisory Committee. (a) The Fire Service Advisory
55.10Committee shall provide recommendations to the commissioner of public safety on
55.11fire service-related issues and shall consist of representatives of each of the following
55.12organizations: two appointed by the president of the Minnesota State Fire Chiefs
55.13Association, two appointed by the president of the Minnesota State Fire Department
55.14Association, two appointed by the president of the Minnesota Professional Fire Fighters,
55.15two appointed by the president of the League of Minnesota Cities, one appointed by the
55.16president of the Minnesota Association of Townships, one appointed by the president
55.17of the Insurance Federation of Minnesota, one appointed jointly by the presidents of
55.18the Minnesota Chapter of the International Association of Arson Investigators and the
55.19Fire Marshals Association of Minnesota, and the commissioner of public safety or the
55.20commissioner's designee. The commissioner of public safety must ensure that at least
55.21three of the members of the advisory committee work and reside in counties outside of the
55.22seven-county metropolitan area. The committee shall provide funding recommendations
55.23to the commissioner of public safety from the fire safety fund for the following purposes:
55.24(1) for the Minnesota Board of Firefighter Training and Education;
55.25(2) for programs and staffing for the State Fire Marshal Division; and
55.26(3) for fire-related regional response team programs and any other fire service
55.27programs that have the potential for statewide impact.
55.28    (b) The committee under paragraph (a) does not expire.

55.29    Sec. 6. Minnesota Statutes 2012, section 609.135, subdivision 2, is amended to read:
55.30    Subd. 2. Stay of sentence maximum periods. (a) If the conviction is for a felony
55.31other than section 609.21, subdivision 1a, paragraph (b) or (c), the stay shall be for not
55.32more than four years or the maximum period for which the sentence of imprisonment
55.33might have been imposed, whichever is longer.
56.1(b) If the conviction is for a gross misdemeanor violation of section 169A.20
56.2or 609.21, subdivision 1a, paragraph (d), or for a felony described in section 609.21,
56.3subdivision 1a , paragraph (b) or (c), the stay shall be for not more than six years. The
56.4court shall provide for unsupervised probation for the last year of the stay unless the court
56.5finds that the defendant needs supervised probation for all or part of the last year.
56.6(c) If the conviction is for a gross misdemeanor violation of section 609.3451,
56.7subdivision 1, the stay shall be for not more than six years.
56.8(c) (d) If the conviction is for a gross misdemeanor not specified in paragraph (b),
56.9the stay shall be for not more than two years.
56.10(d) (e) If the conviction is for any misdemeanor under section 169A.20; 609.746,
56.11subdivision 1 ; 609.79; or 617.23; or for a misdemeanor under section 609.2242 or
56.12609.224, subdivision 1 , in which the victim of the crime was a family or household
56.13member as defined in section 518B.01, the stay shall be for not more than two years. The
56.14court shall provide for unsupervised probation for the second year of the stay unless the
56.15court finds that the defendant needs supervised probation for all or part of the second year.
56.16(e) (f) If the conviction is for a misdemeanor not specified in paragraph (d) (e), the
56.17stay shall be for not more than one year.
56.18(f) (g) The defendant shall be discharged six months after the term of the stay
56.19expires, unless the stay has been revoked or extended under paragraph (g) (h), or the
56.20defendant has already been discharged.
56.21(g) (h) Notwithstanding the maximum periods specified for stays of sentences under
56.22paragraphs (a) to (f) (g), a court may extend a defendant's term of probation for up to one
56.23year if it finds, at a hearing conducted under subdivision 1a, that:
56.24(1) the defendant has not paid court-ordered restitution in accordance with the
56.25payment schedule or structure; and
56.26(2) the defendant is likely to not pay the restitution the defendant owes before the
56.27term of probation expires.
56.28This one-year extension of probation for failure to pay restitution may be extended by
56.29the court for up to one additional year if the court finds, at another hearing conducted
56.30under subdivision 1a, that the defendant still has not paid the court-ordered restitution
56.31that the defendant owes.
56.32Nothing in this subdivision limits the court's ability to refer the case to collections
56.33under section 609.104.
56.34(h) (i) Notwithstanding the maximum periods specified for stays of sentences under
56.35paragraphs (a) to (f) (g), a court may extend a defendant's term of probation for up to three
56.36years if it finds, at a hearing conducted under subdivision 1c, that:
57.1(1) the defendant has failed to complete court-ordered treatment successfully; and
57.2(2) the defendant is likely not to complete court-ordered treatment before the term of
57.3probation expires.
57.4EFFECTIVE DATE.This section is effective August 1, 2014, and applies to crimes
57.5committed on or after that date.

57.6    Sec. 7. Minnesota Statutes 2012, section 609.3451, subdivision 3, is amended to read:
57.7    Subd. 3. Felony. A person is guilty of a felony and may be sentenced to
57.8imprisonment for not more than five ten years or to payment of a fine of not more than
57.9$10,000, or both, if the person violates subdivision 1, clause (2), this section within ten
57.10years after having been previously convicted of or adjudicated delinquent for violating
57.11subdivision 1, clause (2) this section; sections 609.342 to 609.345; or 609.3453; section
57.12 617.23, subdivision 2, clause (1); 617.247; or a statute from another state in conformity
57.13with subdivision 1, clause (2), or section 617.23, subdivision 2, clause (1) therewith.
57.14EFFECTIVE DATE.This section is effective August 1, 2014, and applies to crimes
57.15committed on or after that date.

57.16    Sec. 8. Minnesota Statutes 2012, section 611A.06, is amended by adding a subdivision
57.17to read:
57.18    Subd. 6. Offender location. (a) Upon the victim's written or electronic request
57.19and if the victim and offender have been household or family members as defined in
57.20section 518B.01, subdivision 2, paragraph (b), the commissioner of corrections or the
57.21commissioner's designee shall disclose to the victim of an offender convicted of a crime
57.22pursuant to section 609.02, subdivision 16, notification of the city and five-digit zip code
57.23of the offender's residency upon release from a Department of Corrections facility, unless:
57.24(1) the offender is not supervised by the commissioner of corrections or the
57.25commissioner's designee at the time of the victim's request;
57.26(2) the commissioner of corrections or the commissioner's designee does not have
57.27the city or zip code; or
57.28(3) the commissioner of corrections or the commissioner's designee reasonably
57.29believes that disclosure of the city or zip code of the offender's residency creates a risk
57.30to the victim, offender, or public safety.
57.31(b) All identifying information regarding the victim including, but not limited to, the
57.32notification provided by the commissioner of corrections or the commissioner's designee
58.1is classified as private data on individuals as defined in section 13.02, subdivision 12, and
58.2is accessible only to the victim.
58.3EFFECTIVE DATE.This section is effective January 15, 2015.

58.4    Sec. 9. REVISOR'S INSTRUCTION.
58.5In the next edition of Minnesota Statutes, the revisor of statutes shall change the
58.6headnote of section 609.3451, subdivision 2, from "Penalty" to "Gross misdemeanor."


58.9    Section 1. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision
58.10to read:
58.11    Subd. 5d. Local government. "Local government" has the meaning given in Code
58.12of Federal Regulations, title 44, section 206.2 (2012).

58.13    Sec. 2. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to
58.14read:
58.15    Subd. 6b. Nonfederal share. "Nonfederal share" has the meaning given in section
58.1612A.02, subdivision 7.

58.17    Sec. 3. Minnesota Statutes 2012, section 12.221, subdivision 4, is amended to read:
58.18    Subd. 4. Subgrant agreements; state share. (a) The state director, serving as the
58.19governor's authorized representative, may enter into subgrant agreements with eligible
58.20applicants to provide federal and state financial assistance made available as a result
58.21of a disaster declaration.
58.22(b) When state funds are used to provide the FEMA Public Assistance Program
58.23cost-share requirement for a local government, the state director must award a local
58.24government 100 percent of the nonfederal share of the local government's FEMA Public
58.25Assistance Program costs.

58.26    Sec. 4. Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision
58.27to read:
58.28    Subd. 6. Disaster assistance contingency account; appropriation. (a) A disaster
58.29assistance contingency account is created in the general fund in the state treasury. Money
59.1in the disaster assistance contingency account is appropriated to the commissioner of
59.2public safety to provide:
59.3(1) cost-share for federal assistance under section 12A.15, subdivision 1; and
59.4(2) state public disaster assistance to eligible applicants under chapter 12B.
59.5(b) For appropriations under paragraph (a), clause (1), the amount appropriated is
59.6100 percent of any nonfederal share for state agencies and local governments. Money
59.7appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the
59.8nonfederal share for publicly owned capital improvement projects.
59.9(c) For appropriations under paragraph (a), clause (2), the amount appropriated
59.10is the amount required to pay eligible claims under chapter 12B, as certified by the
59.11commissioner of public safety.
59.12(d) If the amount appropriated is insufficient to cover costs for paragraph (a), clauses
59.13(1) and (2), the commissioner of public safety shall pay up to an additional $4,000,000
59.14from the general fund appropriation provided under this paragraph. No payment shall be
59.15made under this paragraph until:
59.16(1) the commissioner of public safety has given the commissioner of management
59.17and budget an estimate of the additional funds required;
59.18(2) the commissioner of management and budget has reported the estimate to the
59.19chairs of the house of representatives Ways and Means Committee and the senate Finance
59.20Committee; and
59.21(3) the commissioner of management and budget has approved the payments.
59.22(e) Amounts approved by the commissioner of management and budget, up to
59.23$4,000,000 per fiscal year, are appropriated from the general fund to the commissioner
59.24of public safety. By January 15 of each year, the commissioner of management and
59.25budget shall submit a report to the chairs of the house of representatives Ways and
59.26Means Committee and the senate Finance Committee detailing state disaster assistance
59.27appropriations and expenditures under this subdivision during the previous calendar year.
59.28(f) The governor's budget proposal submitted to the legislature under section 16A.11
59.29must include recommended appropriations to the disaster assistance contingency account.
59.30The governor's appropriation recommendations must be informed by the commissioner of
59.31public safety's estimate of the amount of money that will be necessary to:
59.32(1) provide 100 percent of the nonfederal share for state agencies and local
59.33governments that will receive federal financial assistance from FEMA during the next
59.34biennium; and
59.35(2) fully pay all eligible claims under chapter 12B.
59.36(g) Notwithstanding section 16A.28:
60.1(1) funds appropriated or transferred to the disaster assistance contingency account
60.2do not lapse but remain in the account until appropriated; and
60.3(2) funds appropriated from the disaster assistance contingency account do not lapse
60.4and are available until expended.

60.5    Sec. 5. Minnesota Statutes 2012, section 12A.02, subdivision 2, is amended to read:
60.6    Subd. 2. Appropriation. "Appropriation" means an appropriation provided in law
60.7specifically to implement this chapter, including but not limited to a statutory appropriation
60.8to provide the required cost-share for federal disaster assistance under section 12.221.

60.9    Sec. 6. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
60.10to read:
60.11    Subd. 6. Local government. "Local government" has the meaning given in section
60.1212.03, subdivision 5d.

60.13    Sec. 7. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
60.14to read:
60.15    Subd. 7. Nonfederal share. "Nonfederal share" means that portion of total FEMA
60.16Public Assistance Program costs that is no more than 25 percent and is not eligible for
60.17FEMA reimbursement.

60.18    Sec. 8. Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read:
60.19    Subd. 3. Nonduplication of federal assistance. State assistance may not duplicate
60.20or supplement eligible FEMA Public Assistance Program assistance. For eligible Public
60.21Assistance Program costs, any state matching cost-share money made available for
60.22that assistance must be disbursed by the Department of Public Safety to a state agency,
60.23local political subdivision, Indian tribe government, or other applicant. State assistance
60.24distributed by a state agency, other than the Department of Public Safety, to a political
60.25subdivision local government or other applicant for disaster costs that are eligible for
60.26FEMA Public Assistance Program assistance constitutes an advance of funds. Such
60.27advances must be repaid to the applicable state agency when the applicant has received
60.28the FEMA Public Assistance Program assistance, and whatever state matching cost-share
60.29 money may be made available for that assistance, from the Department of Public Safety.

60.30    Sec. 9. Minnesota Statutes 2012, section 12A.15, subdivision 1, is amended to read:
61.1    Subdivision 1. State match cost-share for federal assistance. State appropriations
61.2may be used for payment of the state match for federal disaster assistance to pay 100
61.3percent of the nonfederal share for state agencies. If authorized in law, state appropriations
61.4may be used to pay all or a portion of the local share of the match for federal funds for
61.5political subdivisions and local governments under section 12.221. An appropriation from
61.6the bond proceeds fund may be used to fund federal match obligations as cost-share for
61.7federal disaster assistance for publicly owned capital improvement projects resulting from
61.8the receipt of federal disaster assistance.

61.9    Sec. 10. Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision
61.10to read:
61.11    Subd. 9. Disaster assistance. (a) The commissioner of management and budget
61.12must transfer the unexpended and unencumbered balance of a general fund disaster
61.13assistance appropriation that expires as provided under this section or as otherwise provided
61.14by law to the disaster assistance contingency account in section 12.221, subdivision 6.
61.15(b) Expired disaster assistance transferred to the disaster assistance contingency
61.16account is appropriated as provided under section 12.221, subdivision 6, regardless of the
61.17specific disaster event or purpose for which the expired disaster assistance was originally
61.18appropriated.
61.19(c) The commissioner must report each transfer to the chairs of the house of
61.20representatives Ways and Means Committee and the senate Finance Committee.
61.21(d) For the purposes of this subdivision, "disaster assistance appropriation" means
61.22an appropriation from the general fund to provide cost-share required for federal disaster
61.23assistance or to provide other state disaster assistance under chapter 12A or 12B.

61.24    Sec. 11. EFFECTIVE DATE.
61.25This article is effective the day following final enactment.


61.28    Section 1. [12B.10] PUBLIC DISASTER ASSISTANCE; ABSENT FEDERAL
61.29AID.
61.30This chapter establishes a state public assistance program to provide cost-share
61.31assistance to local governments that sustain significant damage on a per capita basis but
61.32are not eligible for federal disaster assistance or corresponding state assistance under
61.33chapter 12A.

62.1    Sec. 2. [12B.15] DEFINITIONS.
62.2    Subdivision 1. Application. The definitions in this section apply to this chapter.
62.3    Subd. 2. Applicant. "Applicant" means a local government that applies for state
62.4disaster assistance under this chapter.
62.5    Subd. 3. Commissioner. "Commissioner" means the commissioner of public safety.
62.6    Subd. 4. Director. "Director" means the director of the Division of Homeland
62.7Security and Emergency Management in the Department of Public Safety.
62.8    Subd. 5. Disaster. "Disaster" means any catastrophe, including but not limited
62.9to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic
62.10eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire,
62.11flood, or explosion.
62.12    Subd. 6. FEMA. "FEMA" means the Federal Emergency Management Agency.
62.13    Subd. 7. Incident period. "Incident period" means the time interval of a disaster as
62.14delineated by specific start and end dates.
62.15    Subd. 8. Local government. "Local government" has the meaning given in section
62.1612A.03, subdivision 5d.

62.17    Sec. 3. [12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS.
62.18    Subdivision 1. Payment required; eligibility criteria. The director, serving as
62.19the governor's authorized representative, may enter into grant agreements with eligible
62.20applicants to provide state financial assistance made available as a result of a disaster
62.21that satisfies all of the following criteria:
62.22(1) the state and applicable local government declares a disaster or emergency
62.23during the incident period;
62.24(2) damages suffered and eligible costs incurred are the direct result of the disaster;
62.25(3) federal disaster assistance is not available to the applicant because the governor
62.26did not request a presidential declaration of major disaster, the president denied the
62.27governor's request, or the applicant is not eligible for federal disaster assistance because
62.28the state or county did not meet the per capita impact indicator under FEMA's Public
62.29Assistance Program;
62.30(4) the applicant incurred eligible damages that, on a per capita basis, equal or
62.31exceed 50 percent of the countywide per capita impact indicator under FEMA's Public
62.32Assistance Program;
62.33(5) the applicant assumes responsibility for 25 percent of the applicant's total
62.34eligible costs; and
62.35(6) the applicant satisfies all requirements in this chapter.
63.1    Subd. 2. Considerations; other resources available. When evaluating applicant
63.2eligibility under subdivision 1, the director must consider:
63.3(1) the availability of other resources from federal, state, local, private, or other
63.4sources; and
63.5(2) the availability or existence of insurance.

63.6    Sec. 4. [12B.30] ELIGIBLE COSTS.
63.7    Subdivision 1. Eligible costs. Costs eligible for payment under this chapter are
63.8those costs that would be eligible for federal financial assistance under FEMA's Public
63.9Assistance Program.
63.10    Subd. 2. Ineligible costs. Ineligible costs are all costs not included in subdivision
63.111, including but not limited to:
63.12(1) ordinary operating expenses, including salaries and expenses of employees and
63.13public officials that are not directly related to the disaster response;
63.14(2) costs for which payment has been or will be received from any other funding
63.15source;
63.16(3) disaster-related costs that should, in the determination of the director, be covered
63.17and compensated by insurance; and
63.18(4) projects and claims totaling less than the minimum FEMA project threshold.

63.19    Sec. 5. [12B.35] APPLICANT'S SHARE.
63.20An applicant's share of eligible costs incurred must not be less than 25 percent. The
63.21substantiated value of donated materials, equipment, services, and labor may be used as
63.22all or part of the applicant's share of eligible costs, subject to the following:
63.23(1) all items and sources of donation must be indicated on the application and any
63.24supporting documentation submitted to the commissioner;
63.25(2) the rate for calculating the value of donated, nonprofessional labor is the
63.26prevailing federal minimum wage;
63.27(3) the value of donated equipment may not exceed the highway equipment rates
63.28approved by the commissioner of transportation; and
63.29(4) the value of donated materials and professional services must conform to market
63.30rates and be established by invoice.

63.31    Sec. 6. [12B.40] APPLICATION PROCESS.
64.1(a) The director must develop application materials and may update the materials as
64.2needed. Application materials must include instructions and requirements for assistance
64.3under this chapter.
64.4(b) An applicant has 30 days from the end of the incident period or the president's
64.5official denial of the governor's request for a declaration of a major disaster to provide the
64.6director with written notice of intent to apply. The director may deny an application due to
64.7a late notice of intent to apply.
64.8(c) Within 60 days after the end of the incident period or the president's official denial
64.9of the governor's request for a declaration of a major disaster, the applicant must submit a
64.10complete application to the director. A complete application includes the following:
64.11(1) the cause, location of damage, and incident period;
64.12(2) documentation of a local, tribal, county, or state disaster or emergency
64.13declaration in response to the disaster;
64.14(3) a description of damages, an initial damage assessment, and the amount of
64.15eligible costs incurred by the applicant;
64.16(4) a statement or evidence that the applicant has the ability to pay for at least 25
64.17percent of total eligible costs incurred from the disaster; and
64.18(5) a statement or evidence that the local government has incurred damages equal to
64.19or exceeding 50 percent of the federal countywide threshold in effect during the incident
64.20period.
64.21(d) The director must review the application and supporting documentation for
64.22completeness and may return the application with a request for more detailed information.
64.23The director may consult with local public officials to ensure the application reflects the
64.24extent and magnitude of the damage and to reconcile any differences. The application is
64.25not complete until the director receives all requested information.
64.26(e) If the director returns an application with a request for more detailed information
64.27or for correction of deficiencies, the applicant must submit all required information within
64.2830 days of the applicant's receipt of the director's request. The applicant's failure to
64.29provide the requested information in a timely manner without a reasonable explanation
64.30may be cause for denial of the application.
64.31(f) The director has no more than 60 days from the receipt of a complete application
64.32to approve or deny the application, or the application is deemed approved. If the director
64.33denies an application, the director must send a denial letter. If the director approves an
64.34application or the application is automatically deemed approved after 60 days, the director
64.35must notify the applicant of the steps necessary to obtain reimbursement of eligible
65.1costs, including submission of invoices or other documentation substantiating the costs
65.2submitted for reimbursement.

65.3    Sec. 7. [12B.45] CLAIMS PROCESS.
65.4    Subdivision 1. Claims; appeal. (a) An applicant must submit to the director
65.5completed claims for payment of actual and eligible costs on forms provided by the
65.6director. All eligible costs claimed for payment must be documented and consistent with
65.7the eligibility provisions of this chapter.
65.8(b) If the director denies an applicant's claim for payment, the applicant has 30 days
65.9from receipt of the director's determination to appeal in writing to the commissioner. The
65.10appeal must include the applicant's rationale for reversing the director's determination. The
65.11commissioner has 30 days from receipt of the appeal to uphold or modify the director's
65.12determination and formally respond to the applicant. If, within 30 days of receiving
65.13the commissioner's decision, the applicant notifies the commissioner that the applicant
65.14intends to contest the commissioner's decision, the Office of Administrative Hearings shall
65.15conduct a hearing under the contested case provisions of chapter 14.
65.16    Subd. 2. Final inspection. Upon completion of all work by an applicant, the
65.17director may inspect all work claimed by the applicant. The applicant must provide the
65.18director with access to records pertaining to all claimed work and must permit the director
65.19to review all records relating to the work.
65.20    Subd. 3. Closeout. The director must close out an applicant's disaster assistance
65.21application after all of the following occur:
65.22(1) eligible work is complete;
65.23(2) the applicant receives the final amount due or pays any amount owed under
65.24section 12B.50; and
65.25(3) any extant or scheduled audits are complete.
65.26    Subd. 4. Audit. (a) An applicant must account for all funds received under this
65.27chapter in conformance with generally accepted accounting principles and practices. The
65.28applicant must maintain detailed records of expenditures to show that grants received under
65.29this chapter were used for the purpose for which the payment was made. The applicant
65.30must maintain records for five years and make the records available for inspection and
65.31audit by the director or the state auditor. The applicant must keep all financial records for
65.32five years after the final payment, including but not limited to all invoices and canceled
65.33checks or bank statements that support all eligible costs claimed by the applicant.
65.34(b) The director or state auditor may audit all applicant records pertaining to an
65.35application or payment under this chapter.
66.1    Subd. 5. Reporting payments. The director must post on the division Web site a
66.2list of the recipients and amounts of the payments made under this chapter.

66.3    Sec. 8. [12B.50] FUNDING FROM OTHER SOURCES; REPAYMENT
66.4REQUIRED.
66.5If an applicant subsequently recovers eligible costs from another source after
66.6receiving payment under this chapter, the applicant must pay the commissioner an amount
66.7equal to the corresponding state funds received within 30 days. The commissioner must
66.8deposit any repayment in the disaster response contingency account in section 12.221,
66.9subdivision 6.

66.10    Sec. 9. EFFECTIVE DATE.
66.11This article is effective the day following final enactment.

66.15

Section 1. APPROPRIATIONS.

66.16The sums shown in the columns marked "Appropriations" are added to the
66.17appropriations in Laws 2013, chapter 117, article 1, unless otherwise specified, to the
66.18agencies and for the purposes specified in this article. Unless otherwise specified, the
66.19appropriations are not added to the base appropriation for each purpose. The appropriations
66.20are from the general fund, or another named fund, and are available for the fiscal years
66.21indicated for each purpose. The figures "2014" and "2015" used in this article mean that the
66.22appropriations listed under them are available for the fiscal year ending June 30, 2014, or
66.23June 30, 2015, respectively. For purposes of this article, "the first year" is fiscal year 2014,
66.24"the second year" is fiscal year 2015, and "the biennium" is fiscal years 2014 and 2015.

66.25				APPROPRIATIONS
66.26				Available for the Year
66.27				Ending June 30
66.28					2014		2015

66.29 66.30

Sec. 2. DEPARTMENT OF TRANSPORTATION

66.31

Subdivision 1.Total Appropriation

$

10,000,000

$

42,732,000

67.1The amounts that may be spent for each
67.2purpose are specified in the following
67.3subdivisions.

67.4

Subd. 2.Multimodal Systems

67.5

(a) Election Day Transit Service

32,000

67.6This appropriation is for allocation to public
67.7transit systems under Minnesota Statutes,
67.8section 174.24, in amounts that reflect the
67.9respective foregone fare revenues from
67.10transit service under Minnesota Statutes,
67.11section 174.24, subdivision 8.

67.12

(b) Safe Routes to School

250,000

67.13This appropriation is for non-infrastructure
67.14activities in the safe routes to school program
67.15under Minnesota Statutes, section 174.40,
67.16subdivision 7a.

67.17 67.18

(c) Highway-Rail Grade Crossings; Oil and Other Hazardous Material

5,000,000

67.19This appropriation is for development and
67.20implementation of safety improvements at
67.21highway grade crossings along rail corridors
67.22in which oil or other hazardous materials are
67.23transported. The commissioner shall identify
67.24highway-rail grade crossing locations and
67.25improvements in consultation with railroads
67.26and relevant road authorities.

67.27

(d) Port Development Assistance Program

500,000

67.28This appropriation is for grants under the
67.29port development assistance program in
67.30Minnesota Statutes, chapter 457A.

67.31

Subd. 3.State Roads

67.32

(a) Winter-Related Trunk Highway Repair

10,000,000

68.1This appropriation is from the trunk highway
68.2fund for materials and supplies related to
68.3road repair resulting from effects of the
68.42013-2014 winter season.

68.5 68.6

(b) Transportation Economic Development Program

4,000,000

68.7This appropriation is for the transportation
68.8economic development program under
68.9Minnesota Statutes, section 174.12.

68.10

(c) Corridors of Commerce Program

10,000,000

68.11This appropriation is for the corridors
68.12of commerce program under Minnesota
68.13Statutes, section 161.088, and may include
68.14right-of-way acquisition for projects included
68.15in the program. The commissioner may
68.16identify projects based on the most recent
68.17selection process or may perform a new
68.18selection.

68.19

Subd. 4.Local Roads

68.20 68.21

(a) Winter-Related County State-Aid Road Repair

11,448,000

68.22This appropriation is for materials and
68.23supplies related to road repair resulting from
68.24effects of the 2013-2014 winter season.
68.25By September 1, 2014, the commissioner
68.26shall apportion funds to counties in the
68.27same manner as county state-aid highway
68.28funds provided for calendar year 2014 under
68.29Minnesota Statutes, section 162.07.

68.30 68.31

(b) Winter-Related Municipal State-Aid Road Repair

3,552,000

68.32This appropriation is for materials and
68.33supplies related to road repair resulting from
68.34effects of the 2013-2014 winter season.
69.1By September 1, 2014, the commissioner
69.2shall apportion funds to cities in the same
69.3manner as municipal state-aid street funds
69.4provided for calendar year 2014 under
69.5Minnesota Statutes, section 162.13.

69.6

Subd. 5.Willmar District Headquarters

4,370,000

69.7This appropriation is from the trunk
69.8highway fund to complete the Willmar
69.9district headquarters and is added to the
69.10appropriation in Laws 2012, chapter 287,
69.11article 1, section 1, subdivision 2.

69.12

Subd. 6.Little Falls Truck Station

3,580,000

69.13This appropriation is from the trunk highway
69.14fund to complete the Little Falls truck station
69.15and is added to the appropriation in Laws
69.162010, chapter 189, section 15, subdivision 15.

69.17

Sec. 3. METROPOLITAN COUNCIL

69.18

Subdivision 1.Total Appropriation

$

10,400,000

69.19The amounts that may be spent for each
69.20purpose are specified in the following
69.21subdivisions.

69.22 69.23

Subd. 2.Transit Development and Improvements

10,150,000

69.24This appropriation is for:
69.25(1) arterial bus rapid transit development,
69.26which may include but is not limited to
69.27design, engineering, construction, capital
69.28costs, technology, equipment, and rolling
69.29stock;
69.30(2) bus rapid transit station development;
69.31(3) transit shelter improvements under
69.32Minnesota Statutes, section 473.41; and
70.1(4) foregone fare revenues from transit
70.2service under Minnesota Statutes, section
70.3473.408, subdivision 11. The Metropolitan
70.4Council shall allocate amounts under this
70.5appropriation to transit providers receiving
70.6financial assistance under Minnesota
70.7Statutes, section 473.388, based on
70.8respective foregone fare revenues.

70.9

Subd. 3.Suburban Transit Providers

250,000

70.10This appropriation is for allocation to
70.11replacement service providers operating
70.12under Minnesota Statutes, section 473.388,
70.13as provided in this subdivision.
70.14Upon receipt of a prioritized listing of
70.15expenditure items and amounts submitted
70.16by the Suburban Transit Association, or by
70.17all replacement service providers jointly,
70.18the Metropolitan Council shall distribute all
70.19funds appropriated under this subdivision to
70.20each identified replacement service provider,
70.21following the priority order in the listing. An
70.22expenditure item in the listing must be for
70.23nonoperating transit-related expenses.

70.24

Sec. 4. DEPARTMENT OF PUBLIC SAFETY

70.25

Subdivision 1.Total Appropriation

$

2,060,000

70.26The amounts that may be spent for each
70.27purpose are specified in the following
70.28subdivisions.

70.29

Subd. 2.Transit Safety Oversight

60,000

70.30$60,000 in the second year is for light rail
70.31transit safety oversight under Minnesota
70.32Statutes, section 299A.017, and is added to
70.33the base appropriation for the administration
70.34and related services program.

71.1

Subd. 3.Capitol Security

2,000,000

71.2This appropriation is for an increase in
71.3the number of State Patrol troopers or
71.4other security officers assigned to the
71.5Capitol complex, and is added to the base
71.6appropriation for the capitol security budget
71.7activity.

71.8    Sec. 5. TRANSFER; RAILROAD AND PIPELINE SAFETY.
71.9On or before July 31, 2014, the commissioner of management and budget shall
71.10transfer $2,500,000 from the general fund to the railroad and pipeline safety account in the
71.11special revenue fund under Minnesota Statutes, section 299A.55. This is a onetime transfer.

71.12    Sec. 6. Laws 2010, chapter 189, section 15, subdivision 12, is amended to read:

71.13 71.14

Subd. 12.Rochester Maintenance Facility

26,430,000 24,937,000

71.15This appropriation is from the bond proceeds
71.16account in the trunk highway fund.
71.17To prepare a site for and design, construct,
71.18furnish, and equip a new maintenance facility
71.19in Rochester.
71.20EFFECTIVE DATE.This section is effective the day following final enactment.

71.21    Sec. 7. Laws 2010, chapter 189, section 26, subdivision 4, is amended to read:
71.22    Subd. 4. Trunk highway fund bond proceeds account. To provide the money
71.23appropriated in this act from the bond proceeds account in the trunk highway fund, the
71.24commissioner of management and budget shall sell and issue bonds of the state in an
71.25amount up to $32,945,000 $31,452,000 in the manner, upon the terms, and with the effect
71.26prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
71.27Constitution, article XIV, section 11, at the times and in the amounts requested by the
71.28commissioner of transportation. The proceeds of the bonds, except accrued interest and
71.29any premium received from the sale of the bonds, must be credited to the bond proceeds
71.30account in the trunk highway fund.
71.31EFFECTIVE DATE.This section is effective the day following final enactment.

72.1    Sec. 8. Laws 2012, chapter 287, article 2, section 1, is amended to read:
72.2    Section 1. ROCHESTER MAINTENANCE FACILITY.
72.3$16,100,000 $17,593,000 is appropriated to the commissioner of transportation
72.4to design, construct, furnish, and equip the maintenance facility in Rochester and
72.5corresponding remodeling of the existing district headquarters building. This appropriation
72.6is from the bond proceeds account in the trunk highway fund.
72.7EFFECTIVE DATE.This section is effective the day following final enactment.

72.8    Sec. 9. Laws 2012, chapter 287, article 2, section 3, is amended to read:
72.9    Sec. 3. TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.
72.10To provide the money appropriated in this article from the bond proceeds account in
72.11the trunk highway fund, the commissioner of management and budget shall sell and issue
72.12bonds of the state in an amount up to $16,120,000 $17,613,000 in the manner, upon the
72.13terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52,
72.14and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts
72.15requested by the commissioner of transportation. The proceeds of the bonds, except
72.16accrued interest and any premium received from the sale of the bonds, must be credited
72.17to the bond proceeds account in the trunk highway fund.
72.18EFFECTIVE DATE.This section is effective the day following final enactment.

72.19    Sec. 10. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended
72.20to read:
72.21    Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND
72.22SALE AUTHORIZATIONS REDUCED.
72.23(a) The remaining balance of the appropriation in Laws 2010, Second Special
72.24Session chapter 1, article 1, section 7, for the economic development and housing
72.25challenge program, estimated to be $450,000, is transferred to the general fund.
72.26(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
72.27section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section
72.2812A.07 , is reduced by $1,358,000.
72.29(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
72.30section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota
72.31Statutes, section 12A.06, is reduced by $30,000.
73.1(d) The appropriation in Laws 2010, Second Special Session chapter 1, article
73.21, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota
73.3Statutes, section 12A.06, is reduced by $392,000.
73.4(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
73.5section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota
73.6Statutes, section 12A.06, is reduced by $2,000.
73.7(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
73.8section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes,
73.9section 12A.06, is reduced by $5,000.
73.10(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2,
73.11section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes,
73.12section 12A.06, is reduced by $271,000.
73.13(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
73.14section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08,
73.15is reduced by $103,000.
73.16(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session
73.17chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk
73.18highways and trunk highway bridges is canceled. The bond sale authorization in Laws
73.192007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced
73.20by $1,428,000 $534,000.
73.21(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2,
73.22article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for
73.23grants to local governments for capital costs related to rehabilitation and replacement of
73.24local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes,
73.25section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special
73.26Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.
73.27(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1,
73.28article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement
73.29pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond
73.30sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17,
73.31subdivision 2, is reduced by $2,133,000.
73.32(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
73.33section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant
73.34to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.
73.35EFFECTIVE DATE.This section is effective the day following final enactment.

74.1    Sec. 11. Laws 2013, chapter 117, article 1, section 3, subdivision 2, is amended to read:

74.2

Subd. 2.Multimodal Systems

74.3(a) Aeronautics

74.4 74.5

(1) Airport Development and Assistance

13,648,000 14,648,000

13,648,000 16,648,000

74.6This appropriation is from the state
74.7airports fund and must be spent according
74.8to Minnesota Statutes, section 360.305,
74.9subdivision 4 .
74.10The base appropriation for fiscal years 2016
74.11and 2017 is $14,298,000 for each year.
74.12Notwithstanding Minnesota Statutes, section
74.1316A.28, subdivision 6 , this appropriation is
74.14available for five years after appropriation.
74.15If the appropriation for either year is
74.16insufficient, the appropriation for the other
74.17year is available for it.
74.18For the current biennium, the commissioner
74.19of transportation may establish different
74.20local contribution rates for airport projects
74.21than those established in Minnesota Statutes,
74.22section 360.305, subdivision 4.

74.23

(2) Aviation Support and Services

6,386,000

6,386,000

74.24	Appropriations by Fund
74.25	Airports	5,286,000	5,286,000
74.26	Trunk Highway	1,100,000	1,100,000

74.27$65,000 in each year is from the state airports
74.28fund for the Civil Air Patrol.

74.29

(b) Transit

17,226,000

17,245,000

74.30	Appropriations by Fund
74.31	General	16,451,000	16,470,000
74.32	Trunk Highway	775,000	775,000

74.33$100,000 in each year is from the general
74.34fund for the administrative expenses of the
75.1Minnesota Council on Transportation Access
75.2under Minnesota Statutes, section 174.285.
75.3$78,000 in each year is from the general
75.4fund for grants to greater Minnesota transit
75.5providers as reimbursement for the costs of
75.6providing fixed route public transit rides free
75.7of charge under Minnesota Statutes, section
75.8174.24, subdivision 7 , for veterans certified
75.9as disabled.

75.10

(c) Passenger Rail

500,000

500,000

75.11This appropriation is from the general
75.12fund for passenger rail system planning,
75.13alternatives analysis, environmental analysis,
75.14design, and preliminary engineering under
75.15Minnesota Statutes, sections 174.632 to
75.16174.636 .

75.17

(d) Freight

5,653,000

5,153,000

75.18	Appropriations by Fund
75.19	General	756,000	256,000
75.20	Trunk Highway	4,897,000	4,897,000

75.21$500,000 in the first year is from the general
75.22fund to pay for the department's share of costs
75.23associated with the cleanup of contaminated
75.24state rail bank property. This appropriation is
75.25available until expended.

75.26

(e) Safe Routes to School

250,000

250,000

75.27This appropriation is from the general fund
75.28for non-infrastructure activities in the safe
75.29routes to school program under Minnesota
75.30Statutes, section 174.40, subdivision 7a.
75.31EFFECTIVE DATE.This section is effective the day following final enactment.

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

76.1

Subd. 3.State Roads

76.2 76.3

(a) Operations and Maintenance

262,395,000 287,395,000

262,395,000 280,395,000

76.4$5,000,000 in each year is for accelerated
76.5replacement of snow plowing equipment.
76.6The base appropriation for operations and
76.7maintenance for fiscal years 2016 and 2017
76.8is $267,395,000 in each year.

76.9 76.10

(b) Program Planning and Delivery

206,795,000

206,720,000 209,720,000

76.11	Appropriations by Fund
76.12		2014	2015
76.13	H.U.T.D.	75,000	0
76.14 76.15	Trunk Highway	206,720,000	206,720,000 209,720,000

76.16The base appropriation for program planning
76.17and delivery for fiscal years 2016 and 2017
76.18is $206,720,000 in each year.
76.19$250,000 in each year is for the department's
76.20administrative costs for creation and
76.21operation of the Joint Program Office for
76.22Economic Development and Alternative
76.23Finance, including costs of hiring a
76.24consultant and preparing required reports.
76.25$130,000 in each year is available for
76.26administrative costs of the targeted group
76.27business program.
76.28$266,000 in each year is available for grants
76.29to metropolitan planning organizations
76.30outside the seven-county metropolitan area.
76.31$75,000 in each year is available for a
76.32transportation research contingent account
76.33to finance research projects that are
76.34reimbursable from the federal government or
76.35from other sources. If the appropriation for
77.1either year is insufficient, the appropriation
77.2for the other year is available for it.
77.3$900,000 in each year is available for
77.4grants for transportation studies outside
77.5the metropolitan area to identify critical
77.6concerns, problems, and issues. These
77.7grants are available: (1) to regional
77.8development commissions; (2) in regions
77.9where no regional development commission
77.10is functioning, to joint powers boards
77.11established under agreement of two or
77.12more political subdivisions in the region to
77.13exercise the planning functions of a regional
77.14development commission; and (3) in regions
77.15where no regional development commission
77.16or joint powers board is functioning, to the
77.17department's district office for that region.
77.18$75,000 in the first year is from the highway
77.19user tax distribution fund to the commissioner
77.20for a grant to the Humphrey School of Public
77.21Affairs at the University of Minnesota for
77.22WorkPlace Telework program congestion
77.23relief efforts consisting of maintenance of
77.24Web site tools and content. This is a onetime
77.25appropriation and is available in the second
77.26year.

77.27

(c) State Road Construction Activity

77.28 77.29

(1) Economic Recovery Funds - Federal Highway Aid

1,000,000

1,000,000

77.30This appropriation is to complete projects
77.31using funds made available to the
77.32commissioner of transportation under
77.33title XII of the American Recovery and
77.34Reinvestment Act of 2009, Public Law
77.35111-5, and implemented under Minnesota
78.1Statutes, section 161.36, subdivision 7. The
78.2base appropriation is $1,000,000 in fiscal
78.3year 2016 and $0 in fiscal year 2017.

78.4 78.5

(2) State Road Construction

909,400,000 923,400,000

815,600,000

78.6It is estimated that these appropriations will
78.7be funded as follows:

78.8	Appropriations by Fund
78.9 78.10	Federal Highway Aid	489,200,000	482,200,000
78.11 78.12	Highway User Taxes	420,200,000 434,200,000	333,400,000

78.13The commissioner of transportation shall
78.14notify the chairs and ranking minority
78.15members of the legislative committees with
78.16jurisdiction over transportation finance of
78.17any significant events that should cause these
78.18estimates to change.
78.19This appropriation is for the actual
78.20construction, reconstruction, and
78.21improvement of trunk highways, including
78.22design-build contracts and consultant usage
78.23to support these activities. This includes the
78.24cost of actual payment to landowners for
78.25lands acquired for highway rights-of-way,
78.26payment to lessees, interest subsidies, and
78.27relocation expenses.
78.28The base appropriation for state road
78.29construction for fiscal years 2016 and 2017
78.30is $645,000,000 in each year.
78.31$10,000,000 in each year is for the
78.32transportation economic development
78.33program under Minnesota Statutes, section
78.34174.12 .
78.35The commissioner may expend up to one-half
78.36of one percent of the federal appropriations
79.1under this clause as grants to opportunity
79.2industrialization centers and other nonprofit
79.3job training centers for job training programs
79.4related to highway construction.
79.5The commissioner may transfer up to
79.6$15,000,000 each year to the transportation
79.7revolving loan fund.
79.8The commissioner may receive money
79.9covering other shares of the cost of
79.10partnership projects. These receipts are
79.11appropriated to the commissioner for these
79.12projects.
79.13Notwithstanding subdivision 6, the
79.14commissioner may transfer up to $6,000,000
79.15from the trunk highway fund under this
79.16appropriation to the Stillwater lift bridge
79.17endowment account under Minnesota
79.18Statutes, section 165.15.
79.19Of this appropriation, $14,000,000 in the first
79.20year is for the specific improvements to "Old
79.21Highway 14" described in the settlement
79.22agreement and release executed January
79.237, 2014, between the state and Steele and
79.24Waseca Counties.

79.25

(d) Highway Debt Service

158,417,000

189,821,000

79.26$148,917,000 in the first year and
79.27$180,321,000 in the second year are for
79.28transfer to the state bond fund. If an
79.29appropriation is insufficient to make all
79.30transfers required in the year for which it is
79.31made, the commissioner of management and
79.32budget shall notify the senate Committee
79.33on Finance and the house of representatives
79.34Committee on Ways and Means of the
79.35amount of the deficiency and shall then
80.1transfer that amount under the statutory open
80.2appropriation. Any excess appropriation
80.3cancels to the trunk highway fund.

80.4

(e) Electronic Communications

5,171,000

5,171,000

80.5	Appropriations by Fund
80.6	General	3,000	3,000
80.7	Trunk Highway	5,168,000	5,168,000

80.8The general fund appropriation is to equip
80.9and operate the Roosevelt signal tower for
80.10Lake of the Woods weather broadcasting.
80.11EFFECTIVE DATE.This section is effective the day following final enactment.

80.12    Sec. 13. Laws 2013, chapter 117, article 1, section 4, is amended to read:

80.13 80.14

Sec. 4. METROPOLITAN COUNCIL

$

107,889,000

$

76,970,000 76,910,000

80.15This appropriation is from the general fund
80.16for transit system operations under Minnesota
80.17Statutes, sections 473.371 to 473.449.
80.18The base appropriation for fiscal years 2016
80.19and 2017 is $76,686,000 $76,626,000 in
80.20each year.
80.21$37,000,000 in the first year is for the
80.22Southwest Corridor light rail transit line
80.23from the Hiawatha light rail transit line in
80.24downtown Minneapolis to Eden Prairie, to be
80.25used for environmental studies, preliminary
80.26engineering, acquisition of real property, or
80.27interests in real property, and design. This
80.28is a onetime appropriation and is available
80.29until expended.

80.30    Sec. 14. EFFECTIVE DATE; SUPERSEDING PROVISIONS.
80.31Regardless of order of enactment, sections 1 to 5 of this article are not effective if
80.32House File No. 2395 is enacted in the 2014 legislative session.


81.3    Section 1. Minnesota Statutes 2012, section 115E.01, is amended by adding a
81.4subdivision to read:
81.5    Subd. 6a. Incident commander. "Incident commander" means the official at the
81.6site of a discharge who has the responsibility for operations at the site, as established
81.7following National Incident Management System guidelines.

81.8    Sec. 2. Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision
81.9to read:
81.10    Subd. 7a. Listed sensitive area. "Listed sensitive area" means an area or location
81.11listed as an area of special economic or environmental importance in an Area Contingency
81.12Plan or a Sub-Area Contingency Plan prepared under the federal Clean Water Act, United
81.13States Code, title 33, section 1321(j)(4).
81.14EFFECTIVE DATE.This section is effective the day following final enactment.

81.15    Sec. 3. Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision
81.16to read:
81.17    Subd. 11d. Unit train. "Unit train" means a train with more than 25 tanker railcars
81.18carrying oil or hazardous substance cargo.
81.19EFFECTIVE DATE.This section is effective the day following final enactment.

81.20    Sec. 4. [115E.042] PREPAREDNESS AND RESPONSE FOR CERTAIN
81.21RAILROADS AND PIPELINES.
81.22    Subdivision 1. Application. In addition to the requirements of section 115E.04,
81.23a person who owns or operates railroad car rolling stock transporting a unit train must
81.24comply with this section. A person who owns or operates pipeline facilities and is required
81.25to show specific preparedness under section 115E.03, subdivision 2, must comply with
81.26this section as applicable and with the provisions of chapters 299F and 299J.
81.27    Subd. 2. Training. (a) Each railroad must offer training to each fire department
81.28having jurisdiction along the route of unit trains. Initial training under this subdivision
81.29must be offered to each fire department by June 30, 2016, and refresher training must be
81.30offered to each fire department at least once every three years thereafter.
82.1(b) The training must address the general hazards of oil and hazardous substances,
82.2techniques to assess hazards to the environment and to the safety of responders and the
82.3public, factors an incident commander must consider in determining whether to attempt to
82.4suppress a fire or to evacuate the public and emergency responders from an area, and other
82.5strategies for initial response by local emergency responders. The training must include
82.6suggested protocol or practices for local responders to safely accomplish these tasks.
82.7    Subd. 3. Coordination. Beginning June 30, 2015, each railroad and pipeline
82.8company must communicate at least annually with each county or city emergency
82.9manager and a senior fire department officer of each fire department having jurisdiction
82.10along the route of a unit train or a pipeline to ensure coordination of emergency response
82.11activities between the railroad or pipeline company and local responders.
82.12    Subd. 4. Response capabilities; time limits; drills. (a) Following confirmation of a
82.13discharge, a railroad or pipeline company must deliver and deploy sufficient equipment
82.14and trained personnel to contain and recover discharged oil or hazardous substances and to
82.15protect the environment and public safety.
82.16(b) Within one hour of confirmation of a discharge, a railroad or pipeline company
82.17must provide a qualified company employee to advise the incident commander. The
82.18employee may be made available by telephone, and must be authorized to deploy all
82.19necessary response resources of the railroad or pipeline company.
82.20(c) Within three hours of confirmation of a discharge, a railroad or pipeline
82.21company must be capable of delivering monitoring equipment and a trained operator
82.22to assist in protection of responder and public safety. A plan to ensure delivery of
82.23monitoring equipment and an operator to a discharge site must be provided each year to
82.24the commissioner of public safety.
82.25(d) Within three hours of confirmation of a discharge, a railroad or pipeline company
82.26must provide qualified personnel at a discharge site to assess the discharge and to advise
82.27the incident commander.
82.28(e) A railroad or pipeline company must be capable of deploying containment boom
82.29from land across sewer outfalls, creeks, ditches, and other places where oil or hazardous
82.30substances may drain, in order to contain leaked material before it reaches those resources.
82.31The arrangement to provide containment boom and staff may be made by:
82.32(1) training and caching equipment with local jurisdictions;
82.33(2) training and caching equipment with a fire mutual-aid group;
82.34(3) means of an industry cooperative or mutual-aid group;
82.35(4) deployment of a contractor;
82.36(5) deployment of a response organization under state contract; or
83.1(6) other dependable means acceptable to the Pollution Control Agency.
83.2(f) Each arrangement under paragraph (e) must be confirmed each year. Each
83.3arrangement must be tested by drill at least once every five years.
83.4(g) Within eight hours of confirmation of a discharge, a railroad or pipeline company
83.5must be capable of delivering and deploying oil spill containment booms, boats, oil
83.6recovery equipment, trained staff, and all other materials needed to provide:
83.7(1) on-site containment and recovery of a volume of oil equal to ten percent of the
83.8calculated worst case discharge at any location along the route; and
83.9(2) protection of listed sensitive areas and potable water intakes within one mile of
83.10a discharge site and within eight hours of water travel time downstream in any river
83.11or stream that the right-of-way intersects.
83.12(h) Within 60 hours of confirmation of a discharge, a railroad or pipeline company
83.13must be capable of delivering and deploying additional oil spill containment booms,
83.14boats, oil recovery equipment, trained staff, and all other materials needed to provide
83.15containment and recovery of a worst-case oil discharge and to protect listed sensitive areas
83.16and potable water intakes at any location along the route.
83.17(i) Each railroad and pipeline must conduct at least one oil containment, recovery,
83.18and sensitive area protection drill every three years, at a location and time chosen by the
83.19Pollution Control Agency.
83.20    Subd. 5. Prevention and response plans. (a) By June 30, 2015, a railroad or
83.21pipeline company shall submit the prevention and response plan required under section
83.22115E.04, as necessary to comply with the requirements of this section, to the commissioner
83.23of the Pollution Control Agency on a form designated by the commissioner.
83.24(b) By June 30 of every third year following a plan submission under this
83.25subdivision, a railroad and pipeline company must update and resubmit the prevention and
83.26response plan to the commissioner.
83.27EFFECTIVE DATE.Subdivisions 1 to 3 and 5 are effective the day following final
83.28enactment. Subdivision 4 is effective July 1, 2015.

83.29    Sec. 5. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision
83.30to read:
83.31    Subd. 3a. Railroad and pipeline preparedness; pollution control. The Pollution
83.32Control Agency shall carry out environmental protection activities related to railroad
83.33and pipeline discharge preparedness. Duties under this subdivision include, but are not
83.34limited to:
84.1(1) assisting local emergency managers and fire officials in understanding the
84.2hazards of oil and hazardous substances, as well as general strategies for containment and
84.3environmental protection;
84.4(2) assisting railroads and pipeline companies to identify natural resources and
84.5sensitive areas, and to devise strategies to contain and recover oil and hazardous
84.6substances from land and waters along routes;
84.7(3) facilitating cooperation between railroad and pipeline companies for mutual aid
84.8arrangements that provide training, staff, and equipment as required by this chapter;
84.9(4) participating in drills and training sessions;
84.10(5) reviewing each railroad and pipeline company's prevention and response plans
84.11for compliance with the requirements of this chapter, and assessing each company's
84.12readiness to protect the environment;
84.13(6) conducting inspections and drills as necessary to determine the railroad or
84.14pipeline company's compliance with the requirements of this chapter and ability to protect
84.15the environment; and
84.16(7) conducting follow-up corrective action directives, orders, and enforcement as
84.17necessary based on a finding of inadequate environmental protection preparedness.
84.18EFFECTIVE DATE.This section is effective the day following final enactment.

84.19    Sec. 6. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision
84.20to read:
84.21    Subd. 3b. Railroad and pipeline preparedness; public safety. The commissioner
84.22of public safety shall carry out public safety protection activities related to railroad and
84.23pipeline spill and discharge preparedness. Duties under this subdivision include, but
84.24are not limited to:
84.25(1) assisting local emergency managers and fire officials to understand the hazards
84.26of oil and hazardous substances, as well as general strategies for hazard identification,
84.27initial isolation, and other actions necessary to ensure public safety;
84.28(2) assisting railroads and pipeline companies to develop suggested protocols and
84.29practices for local first responder use in protecting the public's safety;
84.30(3) facilitating cooperation between railroads, pipeline companies, county and city
84.31emergency managers, and other public safety organizations;
84.32(4) participating in major exercises and training sessions;
84.33(5) assisting local units of government to incorporate railroad and pipeline hazard
84.34and response information into local emergency operations plans;
85.1(6) monitoring the public safety-related training and planning requirements of
85.2section 115E.03; and
85.3(7) referring noncompliance with section 115E.03 to the Pollution Control Agency.
85.4EFFECTIVE DATE.This section is effective the day following final enactment.

85.5    Sec. 7. Minnesota Statutes 2012, section 219.015, subdivision 1, is amended to read:
85.6    Subdivision 1. Position Positions established; duties. (a) The commissioner of
85.7transportation shall establish a position of three state rail safety inspector positions in
85.8the Office of Freight and Commercial Vehicle Operations of the Minnesota Department
85.9of Transportation. On or after July 1, 2015, the commissioner may establish a fourth
85.10state rail safety inspector position following consultation with railroad companies.
85.11 The commissioner shall apply to and enter into agreements with the Federal Railroad
85.12Administration (FRA) of the United States Department of Transportation to participate
85.13in the federal State Rail Safety Partnership Participation Program for training and
85.14certification of an inspector under authority of United States Code, title 49, sections 20103,
85.1520105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.
85.16     The (b) A state rail safety inspector shall inspect mainline track, secondary track, and
85.17yard and industry track; inspect railroad right-of-way, including adjacent or intersecting
85.18drainage, culverts, bridges, overhead structures, and traffic and other public crossings;
85.19inspect yards and physical plants; review and enforce safety requirements; review
85.20maintenance and repair records; and review railroad security measures.
85.21(c) A state rail safety inspector may perform, but is not limited to, the duties
85.22described in the federal State Rail Safety Participation Program. An inspector may train,
85.23be certified, and participate in any of the federal State Rail Safety Participation Program
85.24disciplines, including track, signal and train control, motive power and equipment,
85.25operating practices compliance, hazardous materials, and highway-rail grade crossings.
85.26    (d) To the extent delegated by the Federal Railroad Administration and authorized
85.27 by the commissioner, the an inspector may issue citations for violations of this chapter, or
85.28to ensure railroad employee and public safety and welfare.
85.29EFFECTIVE DATE.This section is effective the day following final enactment.

85.30    Sec. 8. Minnesota Statutes 2012, section 219.015, subdivision 2, is amended to read:
85.31    Subd. 2. Railroad company assessment; account; appropriation. (a) As provided
85.32in this subdivision, the commissioner shall annually assess railroad companies that are
85.33(1) defined as common carriers under section 218.011,; (2) classified by federal law or
86.1regulation as Class I Railroads, or Class I Rail Carriers, Class II Railroads, or Class II Rail
86.2Carriers; and (3) operating in this state,.
86.3    (b) The assessment must be by a division of state rail safety inspector program costs
86.4in equal proportion between carriers based on route miles operated in Minnesota, assessed
86.5in equal amounts for 365 days of the calendar year. The commissioner shall assess all
86.6start-up or re-establishment costs, and all related costs of initiating the state rail safety
86.7inspector program beginning July 1, 2008. The, and ongoing state rail inspector duties
86.8must begin and be assessed on January 1, 2009.
86.9    (c) The assessments must be deposited in a special account in the special revenue
86.10fund, to be known as the state rail safety inspection account. Money in the account is
86.11appropriated to the commissioner and may be expended to cover the costs incurred for the
86.12establishment and ongoing responsibilities of the state rail safety inspector program.
86.13EFFECTIVE DATE.This section is effective the day following final enactment.

86.14    Sec. 9. [299A.55] RAILROAD AND PIPELINE SAFETY; OIL AND OTHER
86.15HAZARDOUS MATERIALS.
86.16    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
86.17have the meanings given.
86.18(b) "Applicable rail carrier" means a railroad company that is subject to an
86.19assessment under section 219.015, subdivision 2.
86.20(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8.
86.21(d) "Oil" has the meaning given in section 115E.01, subdivision 8.
86.22(e) "Pipeline company" means any individual, partnership, association, or public
86.23or private corporation required to show specific preparedness under section 115E.03,
86.24subdivision 2.
86.25    Subd. 2. Railroad and pipeline safety account. (a) A railroad and pipeline safety
86.26account is created in the special revenue fund. The account consists of funds collected
86.27under subdivision 4 and funds donated, allotted, transferred, or otherwise provided to the
86.28account.
86.29    (b) $208,000 is annually appropriated to the commissioner of the Pollution Control
86.30Agency for environmental protection activities related to railroad and pipeline discharge
86.31preparedness under chapter 115E.
86.32(c) Following the appropriation in paragraph (b), the remaining money in the
86.33account is annually appropriated to the commissioner of public safety for the purposes
86.34specified in subdivision 3.
87.1    Subd. 3. Allocation of railroad and pipeline safety funds. (a) Subject to funding
87.2appropriated for this subdivision, the commissioner shall provide funds for training and
87.3response preparedness related to (1) derailments, discharge incidents, or spills involving
87.4trains carrying oil or other hazardous substances, and (2) pipeline discharge incidents or
87.5spills involving oil or other hazardous substances.
87.6(b) The commissioner shall allocate available funds to the Board of Firefighter
87.7Training and Education under section 299N.02 and the Division of Homeland Security
87.8and Emergency Management.
87.9(c) Prior to making allocations under paragraph (b), the commissioner shall consult
87.10with the Fire Service Advisory Committee under section 299F.012, subdivision 2.
87.11(d) The commissioner and the entities identified in paragraph (b) shall prioritize
87.12uses of funds based on:
87.13(1) firefighter training needs;
87.14(2) community risk from discharge incidents or spills;
87.15(3) geographic balance; and
87.16(4) recommendations of the Fire Service Advisory Committee.
87.17(e) The following are permissible uses of funds provided under this subdivision:
87.18(1) training costs, which may include but are not limited to training curriculum,
87.19trainers, trainee overtime salary, other personnel overtime salary, and tuition;
87.20(2) costs of gear and equipment related to hazardous materials readiness, response,
87.21and management, which may include but is not limited to original purchase, maintenance,
87.22and replacement;
87.23(3) supplies related to the uses under clauses (1) and (2); and
87.24(4) emergency preparedness planning and coordination.
87.25(f) Notwithstanding paragraph (b), from funds in the railroad and pipeline safety
87.26account provided for the purposes under this subdivision, the commissioner may retain a
87.27balance in the account for budgeting in subsequent fiscal years.
87.28    Subd. 4. Assessments; oil and hazardous substances. (a) The commissioner of
87.29public safety shall annually assess $2,500,000 to railroad and pipeline companies based on
87.30the formula specified in paragraph (b). The commissioner shall deposit funds collected
87.31under this subdivision in the railroad and pipeline safety account under subdivision 2.
87.32(b) The assessment for each railroad is 50 percent of the total annual assessment
87.33amount, divided in equal proportion between applicable rail carriers based on route miles
87.34operated in Minnesota. The assessment for each pipeline company is 50 percent of the
87.35total annual assessment amount, divided in equal proportion between companies based on
88.1the yearly aggregate gallons of oil and hazardous substance transported in Minnesota. The
88.2assessment must be in equal amounts for each day of the fiscal year.
88.3(c) The assessments under this subdivision expire July 1, 2019.

88.4    Sec. 10. REPORTS ON INCIDENT PREPAREDNESS FOR OIL AND OTHER
88.5HAZARDOUS MATERIALS TRANSPORTATION.
88.6    Subdivision 1. Report on response preparedness. By January 15, 2015, the
88.7commissioner of public safety shall submit a report on emergency response preparedness
88.8in the public and private sectors for incidents involving oil and other hazardous materials
88.9transported by rail and pipeline to the chairs and ranking minority members of the
88.10legislative committees with jurisdiction over transportation and public safety policy and
88.11finance. At a minimum, the report must:
88.12(1) summarize the preparedness and emergency response framework in the state;
88.13(2) provide an assessment of costs and needs of fire departments and other
88.14emergency first responders for training and equipment to respond to discharge or spill
88.15incidents involving oil and other hazardous materials transported by rail and pipeline;
88.16(3) develop a comprehensive public and private response capacity inventory that,
88.17to the extent feasible, includes statewide identification of major emergency response
88.18equipment, equipment staging locations, mutual aid agreements, and capacities across
88.19industries involved in transportation and storage of oil and other hazardous materials;
88.20(4) provide information and analysis that forms the basis for allocation of funds
88.21under Minnesota Statutes, section 299A.55;
88.22(5) develop benchmarks or assessment criteria for the evaluation under subdivision 2;
88.23(6) assist in long-range oil and other hazardous materials incident preparedness
88.24planning; and
88.25(7) make recommendations for any legislative changes.
88.26    Subd. 2. Evaluation of response preparedness and funding. By November 1,
88.272017, the commissioner of public safety shall submit an evaluation of railroad and pipeline
88.28safety preparedness and funding related to incidents involving oil and other hazardous
88.29materials to the chairs and ranking minority members of the legislative committees with
88.30jurisdiction over transportation and public safety policy and finance. At a minimum,
88.31the evaluation must:
88.32(1) provide an update to the report under subdivision 1 that identifies notable
88.33changes and provides updated information as appropriate;
89.1(2) evaluate the effectiveness of training and response preparedness activities under
89.2Minnesota Statutes, section 299A.55, using the criteria established under subdivision
89.31, clause (5);
89.4(3) identify current sources of funds, funding levels, and any unfunded needs for
89.5preparedness activities;
89.6(4) analyze equity in the distribution of funding sources for preparedness activities,
89.7which must include but is not limited to (i) examination of the public-private partnership
89.8financing model, and (ii) review of balance across industries involved in storage and
89.9distribution of oil and other hazardous materials; and
89.10(5) make recommendations for any programmatic or legislative changes.
89.11EFFECTIVE DATE.This section is effective the day following final enactment.

89.12    Sec. 11. IMPROVEMENTS STUDY ON GRADE CROSSINGS AND
89.13RAIL SAFETY FOR OIL AND OTHER HAZARDOUS MATERIALS
89.14TRANSPORTATION.
89.15(a) The commissioner of transportation shall conduct a study on highway-rail grade
89.16crossing improvement for oil and other hazardous materials transported by rail, and on
89.17rail safety. At a minimum, the study must:
89.18(1) provide information that assists in risk management associated with
89.19transportation of oil and other hazardous materials by rail;
89.20(2) develop criteria to prioritize needs and improvements at highway-rail grade
89.21crossings;
89.22(3) consider alternatives for safety improvements, including but not limited to active
89.23warning devices such as gates and signals, closings, and grade separation;
89.24(4) provide findings and recommendations that serve to direct accelerated
89.25investments in highway-rail grade crossing safety improvements; and
89.26(5) analyze state inspection activities and staffing for track and hazardous materials
89.27under Minnesota Statutes, section 219.015.
89.28(b) The commissioner shall submit an interim update on the study by August 31,
89.292014, and a final report by October 31, 2014, to the chairs and ranking minority members
89.30of the legislative committees with jurisdiction over transportation policy and finance.
89.31EFFECTIVE DATE.This section is effective the day following final enactment.


90.3    Section 1. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:
90.4    Subd. 2. Use of funds. (a) Income derived from the investment of principal in the
90.5account may be used by the commissioner of transportation for operations and routine
90.6maintenance, including bridge safety inspections and reactive repairs, of the Stillwater
90.7lift bridge. No money from this account may be used for any purposes except those
90.8described in this section, and no money from this account may be transferred to any
90.9other account in the state treasury without specific legislative authorization. Any money
90.10transferred from the trunk highway fund may only be used for trunk highway purposes.
90.11 For the purposes of this section:
90.12(1) "Income" is the amount of interest on debt securities and dividends on equity
90.13securities. Any gains or losses from the sale of securities must be added to the principal
90.14of the account.
90.15(2) "Routine maintenance" means activities that are predictable and repetitive, but
90.16not activities that would constitute major repairs or rehabilitation.
90.17(b) Investment management fees incurred by the State Board of Investment are
90.18eligible expenses for reimbursement from the account.
90.19(c) The commissioner of transportation has authority to approve or deny expenditures
90.20of funds in the account.

90.21    Sec. 2. Minnesota Statutes 2013 Supplement, section 168.123, subdivision 2, is
90.22amended to read:
90.23    Subd. 2. Design. (a) The commissioner of veterans affairs shall design the emblem
90.24for the veterans' special plates, subject to the approval of the commissioner, that satisfy the
90.25following requirements:
90.26(a) (b) For a Vietnam veteran who served after July 1, 1961, and before July 1, 1978,
90.27in the active military service in a branch of the armed forces of the United States or a
90.28nation or society allied with the United States the special plates must bear the inscription
90.29"VIETNAM VET."
90.30(b) (c) For a veteran stationed on the island of Oahu, Hawaii, or offshore, during the
90.31attack on Pearl Harbor on December 7, 1941, the special plates must bear the inscription
90.32"PEARL HARBOR SURVIVOR."
90.33(c) (d) For a veteran who served during World War II, the plates must bear the
90.34inscription "WORLD WAR VET."
91.1(d) (e) For a veteran who served during the Korean Conflict, the special plates
91.2must bear the inscription "KOREAN VET."
91.3(e) (f) For a combat wounded veteran who is a recipient of the Purple Heart medal,
91.4the plates must bear the inscription "COMBAT WOUNDED VET" and have a facsimile
91.5or an emblem of the official Purple Heart medal.
91.6    A member of the United States armed forces who is serving actively in the military
91.7and who is a recipient of the Purple Heart medal is also eligible for this license plate.
91.8The commissioner of public safety shall ensure that information regarding the required
91.9proof of eligibility for any applicant under this paragraph who has not yet been issued
91.10military discharge papers is distributed to the public officials responsible for administering
91.11this section.
91.12(f) (g) For a Persian Gulf War veteran, the plates must bear the inscription "GULF
91.13WAR VET." For the purposes of this section, "Persian Gulf War veteran" means a person
91.14who served on active duty after August 1, 1990, in a branch of the armed forces of the
91.15United States or a nation or society allied with the United States or the United Nations
91.16during Operation Desert Shield, Operation Desert Storm, or other military operation in
91.17the Persian Gulf area combat zone as designated in United States Presidential Executive
91.18Order No. 12744, dated January 21, 1991.
91.19(g) (h) For a veteran who served in the Laos War after July 1, 1961, and before July
91.201, 1978, the special plates must bear the inscription "LAOS WAR VET."
91.21(h) (i) For a veteran who is the recipient of:
91.22(1) the Iraq Campaign Medal, the special plates must be inscribed with a facsimile of
91.23that medal and must bear the inscription "IRAQ WAR VET" directly below the special
91.24plate number;
91.25(2) the Afghanistan Campaign Medal, the special plates must be inscribed with a
91.26facsimile of that medal and must bear the inscription "AFGHAN WAR VET" directly
91.27below the special plate number;
91.28(3) the Global War on Terrorism Expeditionary Medal, the special plates must
91.29be inscribed with a facsimile of that medal and must bear the inscription "GWOT
91.30VETERAN" directly below the special plate number; or
91.31(4) the Armed Forces Expeditionary Medal, the special plates must bear an
91.32appropriate inscription that includes a facsimile of that medal.
91.33(i) (j) For a veteran who is the recipient of the Global War on Terrorism Service
91.34Medal, the special plates must be inscribed with a facsimile of that medal and must bear
91.35the inscription "GWOT VETERAN" directly below the special plate number. In addition,
91.36any member of the National Guard or other military reserves who has been ordered to
92.1federally funded state active service under United States Code, title 32, as defined in
92.2section 190.05, subdivision 5b, and who is the recipient of the Global War on Terrorism
92.3Service Medal, is eligible for the license plate described in this paragraph, irrespective of
92.4whether that person qualifies as a veteran under section 197.447.
92.5(j) (k) For a veteran who is the recipient of the Korean Defense Service Medal,
92.6the special plates must be inscribed with a facsimile of that medal and must bear the
92.7inscription "KOREAN DEFENSE SERVICE" directly below the special plate number.
92.8(k) (l) For a veteran who is a recipient of the Bronze Star medal, the plates must
92.9bear the inscription "BRONZE STAR VET" and have a facsimile or an emblem of the
92.10official Bronze Star medal.
92.11(l) (m) For a veteran who is a recipient of the Silver Star medal, the plates must bear
92.12the inscription "SILVER STAR VET" and have a facsimile or an emblem of the official
92.13Silver Star medal.
92.14(n) For a woman veteran, the plates must bear the inscription "WOMAN
92.15VETERAN" and have a facsimile or an emblem as designated by the commissioners of
92.16veterans affairs and public safety.
92.17EFFECTIVE DATE.This section is effective January 1, 2015.

92.18    Sec. 3. Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision
92.19to read:
92.20    Subd. 7. Expiration date. Upon request of the permit applicant, the expiration
92.21date for a permit issued under this section must be the same as the expiration date of the
92.22permitted vehicle's registration.
92.23EFFECTIVE DATE.This section is effective November 30, 2016, and applies
92.24to permits issued on and after that date.

92.25    Sec. 4. Minnesota Statutes 2012, section 169.8261, is amended by adding a subdivision
92.26to read:
92.27    Subd. 3. Expiration date. Upon request of the permit applicant, the expiration
92.28date for a permit issued under this section must be the same as the expiration date of the
92.29permitted vehicle's registration.
92.30EFFECTIVE DATE.This section is effective November 30, 2016, and applies
92.31to permits issued on and after that date.

92.32    Sec. 5. Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:
93.1    Subd. 5. Fees; proceeds deposited; appropriation. The commissioner, with
93.2respect to highways under the commissioner's jurisdiction, may charge a fee for each
93.3permit issued. The fee for an annual permit that expires by law on the date of the
93.4vehicle registration expiration must be based on the proportion of the year that remains
93.5until the expiration date. Unless otherwise specified, all fees for permits issued by the
93.6commissioner of transportation must be deposited in the state treasury and credited to
93.7the trunk highway fund. Except for those annual permits for which the permit fees are
93.8specified elsewhere in this chapter, the fees are:
93.9    (a) $15 for each single trip permit.
93.10    (b) $36 for each job permit. A job permit may be issued for like loads carried on
93.11a specific route for a period not to exceed two months. "Like loads" means loads of the
93.12same product, weight, and dimension.
93.13    (c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
93.14months. Annual permits may be issued for:
93.15    (1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety
93.16or well-being of the public;
93.17    (2) motor vehicles that travel on interstate highways and carry loads authorized
93.18under subdivision 1a;
93.19    (3) motor vehicles operating with gross weights authorized under section 169.826,
93.20subdivision 1a ;
93.21    (4) special pulpwood vehicles described in section 169.863;
93.22    (5) motor vehicles bearing snowplow blades not exceeding ten feet in width;
93.23    (6) noncommercial transportation of a boat by the owner or user of the boat;
93.24    (7) motor vehicles carrying bales of agricultural products authorized under section
93.25169.862 ; and
93.26(8) special milk-hauling vehicles authorized under section 169.867.
93.27    (d) $120 for an oversize annual permit to be issued for a period not to exceed 12
93.28consecutive months. Annual permits may be issued for:
93.29    (1) mobile cranes;
93.30    (2) construction equipment, machinery, and supplies;
93.31    (3) manufactured homes and manufactured storage buildings;
93.32    (4) implements of husbandry;
93.33    (5) double-deck buses;
93.34    (6) commercial boat hauling and transporting waterfront structures, including, but
93.35not limited to, portable boat docks and boat lifts;
94.1    (7) three-vehicle combinations consisting of two empty, newly manufactured trailers
94.2for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however,
94.3the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer
94.4only while operating on twin-trailer routes designated under section 169.81, subdivision 3,
94.5paragraph (c); and
94.6(8) vehicles operating on that portion of marked Trunk Highway 36 described in
94.7section 169.81, subdivision 3, paragraph (e).
94.8    (e) For vehicles that have axle weights exceeding the weight limitations of sections
94.9169.823 to 169.829, an additional cost added to the fees listed above. However, this
94.10paragraph applies to any vehicle described in section 168.013, subdivision 3, paragraph
94.11(b), but only when the vehicle exceeds its gross weight allowance set forth in that
94.12paragraph, and then the additional cost is for all weight, including the allowance weight,
94.13in excess of the permitted maximum axle weight. The additional cost is equal to the
94.14product of the distance traveled times the sum of the overweight axle group cost factors
94.15shown in the following chart:

94.16		Overweight Axle Group Cost Factors
94.17	Weight (pounds)		Cost Per Mile For Each Group Of:
94.18 94.19 94.20 94.21 94.22	exceeding weight limitations on axles		Two consecutive axles spaced within 8 feet or less		Three consecutive axles spaced within 9 feet or less		Four consecutive axles spaced within 14 feet or less
94.23	0-2,000		.12		.05		.04
94.24	2,001-4,000		.14		.06		.05
94.25	4,001-6,000		.18		.07		.06
94.26	6,001-8,000		.21		.09		.07
94.27	8,001-10,000		.26		.10		.08
94.28	10,001-12,000		.30		.12		.09
94.29 94.30	12,001-14,000		Not permitted		.14		.11
94.31 94.32	14,001-16,000		Not permitted		.17		.12
94.33 94.34	16,001-18,000		Not permitted		.19		.15
94.35 94.36	18,001-20,000		Not permitted		Not permitted		.16
94.37 94.38	20,001-22,000		Not permitted		Not permitted		.20

94.39The amounts added are rounded to the nearest cent for each axle or axle group. The
94.40additional cost does not apply to paragraph (c), clauses (1) and (3).
95.1For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
95.2fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
95.3in addition to the normal permit fee. Miles must be calculated based on the distance
95.4already traveled in the state plus the distance from the point of detection to a transportation
95.5loading site or unloading site within the state or to the point of exit from the state.
95.6    (f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
95.7or oversize and overweight, mobile cranes; construction equipment, machinery, and
95.8supplies; implements of husbandry; and commercial boat hauling. The fees for the permit
95.9are as follows:

95.10	Gross Weight (pounds) of Vehicle		Annual Permit Fee
95.11	90,000	or less	$200
95.12	90,001	- 100,000	$300
95.13	100,001	- 110,000	$400
95.14	110,001	- 120,000	$500
95.15	120,001	- 130,000	$600
95.16	130,001	- 140,000	$700
95.17	140,001	- 145,000	$800
95.18	145,001	- 155,000	$900

95.19If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined
95.20under paragraph (e).
95.21    (g) For vehicles which exceed the width limitations set forth in section 169.80 by
95.22more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a)
95.23when the permit is issued while seasonal load restrictions pursuant to section 169.87 are
95.24in effect.
95.25    (h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
95.26refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on
95.27a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
95.28subdivision 2 , 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds
95.29on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.
95.30    (i) $300 for a motor vehicle described in section 169.8261. The fee under this
95.31paragraph must be deposited as follows:
95.32    (1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for
95.33costs related to administering the permit program and inspecting and posting bridges; and
95.34    (2) all remaining money in each fiscal year must be deposited in the bridge
95.35inspection and signing account as provided under subdivision 5b.
95.36    (j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating
95.37under authority of section 169.824, subdivision 2, paragraph (a), clause (2).
96.1EFFECTIVE DATE.This section is effective November 30, 2016, and applies
96.2to permits issued on and after that date.

96.3    Sec. 6. Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision
96.4to read:
96.5    Subd. 3. Expiration date. Upon request of the permit applicant, the expiration
96.6date for a permit issued under this section must be the same as the expiration date of the
96.7permitted vehicle's registration.
96.8EFFECTIVE DATE.This section is effective November 30, 2016, and applies
96.9to permits issued on and after that date.

96.10    Sec. 7. Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:
96.11    Subdivision 1. Six-axle vehicles. (a) A road authority may issue an annual permit
96.12authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw
96.13or unprocessed agricultural products and be operated with a gross vehicle weight of up to:
96.14    (1) 90,000 pounds; and
96.15    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
96.16subdivision 1 .
96.17    (b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or
96.18combination of vehicles operated under this subdivision and transporting only sealed
96.19intermodal containers may be operated on an interstate highway if allowed by the United
96.20States Department of Transportation.
96.21    (c) The fee for a permit issued under this subdivision is $300, or a proportional
96.22amount as provided in section 169.86, subdivision 5.
96.23EFFECTIVE DATE.This section is effective November 30, 2016, and applies
96.24to permits issued on and after that date.

96.25    Sec. 8. Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:
96.26    Subd. 2. Seven-axle vehicles. (a) A road authority may issue an annual permit
96.27authorizing a vehicle or combination of vehicles with a total of seven or more axles to
96.28haul raw or unprocessed agricultural products and be operated with a gross vehicle weight
96.29of up to:
96.30    (1) 97,000 pounds; and
96.31    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
96.32subdivision 1 .
97.1    (b) Drivers of vehicles operating under this subdivision must comply with driver
97.2qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code
97.3of Federal Regulations, title 49, parts 40 and 382.
97.4    (c) The fee for a permit issued under this subdivision is $500, or a proportional
97.5amount as provided in section 169.86, subdivision 5.
97.6EFFECTIVE DATE.This section is effective November 30, 2016, and applies
97.7to permits issued on and after that date.

97.8    Sec. 9. Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision
97.9to read:
97.10    Subd. 5. Expiration date. Upon request of the permit applicant, the expiration
97.11date for a permit issued under this section must be the same as the expiration date of the
97.12permitted vehicle's registration.
97.13EFFECTIVE DATE.This section is effective November 30, 2016, and applies
97.14to permits issued on and after that date.

97.15    Sec. 10. Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:
97.16    Subd. 3. Permit fee; appropriation. Vehicle permits issued under subdivision 1
97.17must be annual permits. The fee is $850 for each vehicle, or a proportional amount as
97.18provided in section 169.86, subdivision 5, and must be deposited in the trunk highway
97.19fund. An amount sufficient to administer the permit program is appropriated from the
97.20trunk highway fund to the commissioner for the costs of administering the permit program.
97.21EFFECTIVE DATE.This section is effective November 30, 2016, and applies
97.22to permits issued on and after that date.

97.23    Sec. 11. Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision
97.24to read:
97.25    Subd. 4. Expiration date. Upon request of the permit applicant, the expiration
97.26date for a permit issued under this section must be the same as the expiration date of the
97.27permitted vehicle's registration.
97.28EFFECTIVE DATE.This section is effective November 30, 2016, and applies
97.29to permits issued on and after that date.

98.1    Sec. 12. Minnesota Statutes 2012, section 174.24, is amended by adding a subdivision
98.2to read:
98.3    Subd. 8. Transit service on election day. An eligible recipient of operating
98.4assistance under this section who contracts or has contracted to provide fixed route public
98.5transit shall provide fixed route public transit service free of charge on a day a state
98.6general election is held.
98.7EFFECTIVE DATE.This section is effective July 1, 2014, and expires November
98.85, 2014.

98.9    Sec. 13. Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is
98.10amended to read:
98.11    Subd. 2. Funding requirement. In each federal fiscal year, the commissioner
98.12shall obtain a total amount in federal authorizations for reimbursement on transportation
98.13alternatives projects that is equal to or greater than the annual average of federal
98.14authorizations on transportation alternatives projects calculated over the preceding four
98.15 federal fiscal years 2009 to 2012.
98.16EFFECTIVE DATE.This section is effective the day following final enactment and
98.17applies to authorizations for federal fiscal year 2015 and subsequent federal fiscal years.

98.18    Sec. 14. [219.375] RAILROAD YARD LIGHTING.
98.19    Subdivision 1. General requirements. (a) All railroad common carriers, and their
98.20officers, agents, and employees, operating a railroad in this state are required to maintain
98.21lighting between sunset and sunrise above switches in railroad yards where:
98.22(1) cars or locomotives are switched or inspected; or
98.23(2) cars are switched to assemble or disassemble trains.
98.24(b) Railroad common carriers shall provide lighting adjacent to those portions of
98.25railroad yard tracks where railroad common carrier employees frequently work on the
98.26ground performing switching, inspection, and repair activities. For purposes of this
98.27section, "frequently work" means at least five days per week.
98.28(c) Railroad yard lighting over switches and inspection areas must:
98.29(1) conform with the guidelines set forth by the American Railway Engineering
98.30and Manufacturing Association (AREMA);
98.31(2) include at least one lighting source for each two-yard track switch segment; and
98.32(3) be displayed from a height of at least 30 feet above the railroad yard lead-track
98.33area.
99.1(d) Lighting over switches and other light sources within railroad yards or at other
99.2railroad locations must be:
99.3(1) maintained to illuminate as designed;
99.4(2) compliant with the National Electrical Code;
99.5(3) kept clear of obstructions; and
99.6(4) focused on the railroad common carrier property designed to be illuminated.
99.7(e) The energy source for lighting is permitted, though not required, to:
99.8(1) be direct wired from a carrier facility power source, have solar panel power with
99.9a battery storage source, or have another constant energy source; or
99.10(2) be designed to have standard or light-emitting diode fixtures or electrical circuits
99.11that include power saving or ambient atmosphere actuating switches.
99.12(f) Railroad common carriers must replace damaged or nonoperative lighting within
99.1348 hours after light source damage has been reported to the carrier.
99.14    Subd. 2. Allowances for unusual conditions. Railroad common carriers are not
99.15required to comply with the requirements of this section during:
99.16(1) maintenance activities;
99.17(2) derailments;
99.18(3) any period of heavy rain or snow, washouts, or similar weather or seismic
99.19conditions; or
99.20(4) a reasonable period after any occurrence identified in clauses (1) to (3), but no
99.21longer than is necessary to achieve compliance with this section.
99.22    Subd. 3. Lighting orders; commissioner authority. (a) When the commissioner
99.23finds that railroad common carrier employees who frequently work adjacent to a portion
99.24of track performing switching, inspection, maintenance, repair, or fueling activities are
99.25exposed to hazard resulting from the lack of lighting, or to the condition of lighting
99.26constructed before July 1, 2014, the commissioner may order a railroad common carrier
99.27to construct lighting adjacent to a portion of track where employees are performing
99.28switching, inspection, maintenance, repair, or fueling activities, or require a railroad
99.29common carrier to modify existing lighting to conform with the standards set forth by
99.30AREMA lighting standards, within a reasonable period of time.
99.31(b) A railroad common carrier, person, or corporation may appeal an order under this
99.32subdivision. An appeal under this paragraph is subject to the processes and requirements
99.33of chapter 14.
99.34    Subd. 4. Failure to correct. If a railroad common carrier, person, or corporation
99.35fails to correct a violation of this section within the time provided in an order issued by
99.36the commissioner of transportation under subdivision 3, and the railroad common carrier,
100.1person, or corporation does not appeal the order, the failure to correct the violation as
100.2ordered by the commissioner constitutes a new and separate offense distinct from the
100.3original violation of this section.
100.4    Subd. 5. Complaints. No formal complaint of an alleged violation of this section
100.5may be filed until the filing party has attempted to address the alleged violations with the
100.6railroad common carrier. Any complaint of an alleged violation must contain a written
100.7statement that the filing party has made a reasonable, good faith attempt to address the
100.8alleged violation.
100.9    Subd. 6. Waiver. Upon written request of a railroad common carrier, the
100.10commissioner of transportation may waive any portion of this section if conditions do
100.11not reasonably permit compliance. The commissioner's decision is subject to section
100.12218.041, and must include an on-site inspection of the area for which the waiver has
100.13been requested. The inspection shall occur between sunset and sunrise, and all parties of
100.14interest shall be permitted to attend.
100.15    Subd. 7. Violations and penalties. A railroad common carrier, corporation, or
100.16person who violates this section is subject to a penalty not to exceed $500 for each violation.
100.17    Subd. 8. Exceptions; applicability. (a) This section establishes minimum standards
100.18for railroad yard lighting. Nothing in this section shall be construed to preclude design of
100.19railroad yard towers with multiple lighting sources, a brighter lighting design, or other
100.20features that exceed the requirements of this section.
100.21(b) This section applies to all Class I and Class II railroad common carrier railroad
100.22yards. This section does not apply to an entity that owns or operates track in Minnesota
100.23that is not a Class I or Class II railroad common carrier as classified by the Federal
100.24Railroad Administration.
100.25(c) Railroad yards and other locations where lighting exists on July 1, 2014, are
100.26deemed compliant with subdivision 1, paragraphs (b) and (c).
100.27EFFECTIVE DATE.This section is effective November 1, 2016.

100.28    Sec. 15. [219.995] MADE IN MINNESOTA SOLAR INSTALLATIONS.
100.29    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
100.30have the meanings given.
100.31(b) "Made in Minnesota" has the meaning given in section 216C.411, paragraph (a).
100.32(c) "Solar photovoltaic module" has the meaning given in section 116C.7791,
100.33subdivision 1, paragraph (e).
100.34    Subd. 2. Made in Minnesota solar energy system requirement. Notwithstanding
100.35any other law to the contrary, if a railroad common carrier engages in any project in
101.1Minnesota for the construction, improvement, maintenance, or repair of any building,
101.2railroad, railroad yard, railroad facility, or land owned or controlled by the railroad
101.3common carrier and the construction, improvement, maintenance, or repair involves
101.4installation of one or more solar photovoltaic modules, the railroad common carrier
101.5must ensure that the solar photovoltaic modules purchased and installed are "Made in
101.6Minnesota" as defined in subdivision 1, paragraph (b).
101.7    Subd. 3. Application. Subdivision 2 does not apply if:
101.8(1) as a condition of the receipt of federal financial assistance for a specific project,
101.9the railroad common carrier is required to use a procurement method that might result in
101.10the award of a contract to a manufacturer that does not meet the "Made in Minnesota"
101.11definition in subdivision 1, paragraph (b);
101.12(2) no solar photovoltaic modules are available that meet the "Made in Minnesota"
101.13definition and fulfill the function required by the project; or
101.14(3) a railroad common carrier's compliance with the "Made in Minnesota" solar
101.15energy system requirement would result in noncompliance with any applicable federal
101.16statute or regulation.

101.17    Sec. 16. [299A.017] STATE SAFETY OVERSIGHT.
101.18    Subdivision 1. Office created. The commissioner of public safety shall establish an
101.19Office of State Safety Oversight in the Department of Public Safety for safety oversight of
101.20rail fixed guideway public transportation systems within the state. The commissioner shall
101.21designate a director of the office.
101.22    Subd. 2. Authority. The director shall implement and has regulatory authority to
101.23enforce the requirements for the state set forth in United States Code, title 49, sections
101.245329 and 5330, federal regulations adopted pursuant to those sections, and successor or
101.25supplemental requirements.

101.26    Sec. 17. Minnesota Statutes 2012, section 473.408, is amended by adding a subdivision
101.27to read:
101.28    Subd. 11. Transit service on election day. (a) The council shall provide regular
101.29route transit, as defined in section 473.385, subdivision 1, paragraph (b), free of charge
101.30on a day a state general election is held.
101.31(b) The requirements under this subdivision apply to operators of regular route
101.32transit (1) receiving financial assistance under section 473.388, or (2) operating under
101.33section 473.405, subdivision 12.
102.1EFFECTIVE DATE.This section is effective July 1, 2014, and expires November
102.25, 2014.

102.3    Sec. 18. [473.41] TRANSIT SHELTERS AND STOPS.
102.4    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
102.5have the meanings given.
102.6(b) "Transit authority" means:
102.7(1) a statutory or home rule charter city, with respect to rights-of-way at bus stop and
102.8train stop locations, transit shelters, and transit passenger seating facilities owned by the
102.9city or established pursuant to a vendor contract with the city;
102.10(2) the Metropolitan Council, with respect to transit shelters and transit passenger
102.11seating facilities owned by the council or established pursuant to a vendor contract with
102.12the council; or
102.13(3) a replacement service provider under section 473.388, with respect to
102.14rights-of-way at bus stop and train stop locations, transit shelters, and transit passenger
102.15seating facilities owned by the provider or established pursuant to a vendor contract
102.16with the provider.
102.17(c) "Transit shelter" means a wholly or partially enclosed structure provided for
102.18public use as a waiting area in conjunction with light rail transit, bus rapid transit, or
102.19regular route transit.
102.20    Subd. 2. Design. (a) A transit authority shall establish design specifications for
102.21establishment and replacement of its transit shelters, which must include:
102.22(1) engineering standards, as appropriate;
102.23(2) maximization of protection from the wind, snow, and other elements, including
102.24but not limited to entrances that are equivalently sized to regular doorways;
102.25(3) to the extent feasible, inclusion of warming capability at each shelter in which
102.26there is a proportionally high number of transit service passenger boardings; and
102.27(4) full accessibility for the elderly and persons with disabilities.
102.28(b) The council shall consult with the Transportation Accessibility Advisory
102.29Committee.
102.30    Subd. 3. Maintenance. A transit authority shall ensure transit shelters are
102.31maintained in good working order and are accessible to all users of the transit system.
102.32This requirement includes but is not limited to:
102.33(1) keeping transit shelters reasonably clean and free from graffiti; and
103.1(2) removing snow and ice in a manner that provides accessibility for the elderly
103.2and persons with disabilities to be able to enter and exit transit shelters, and board and
103.3exit trains at each stop.
103.4EFFECTIVE DATE.This section is effective the day following final enactment.

103.5    Sec. 19. WATERCRAFT DECONTAMINATION SITES; REST AREAS.
103.6Where feasible with existing resources, the commissioners of natural resources
103.7and transportation shall cooperate in an effort to use rest areas as sites for watercraft
103.8decontamination and other activities to prevent the spread of aquatic invasive species.
103.9EFFECTIVE DATE.This section is effective the day following final enactment.

103.10    Sec. 20. WOMAN VETERAN LICENSE PLATES; DESIGN.
103.11The commissioner of veterans affairs, in consultation with the commissioner of
103.12public safety, a representative of the Minnesota Women Veterans Initiative Working
103.13Group, and any interested Minnesota veterans service organization, shall design the
103.14"WOMAN VETERAN" special plates established in Minnesota Statutes, section 168.123,
103.15subdivision 2, subject to the approval of the commissioner of public safety.

103.16    Sec. 21. HIGHWAY 14 TURNBACK.
103.17Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and 161.16, or
103.18any other law to the contrary, the commissioner of transportation may:
103.19(1) by temporary order, take over the road described as "Old Highway 14" in the
103.20settlement agreement and release executed January 7, 2014, between the state and Waseca
103.21and Steele Counties;
103.22(2) expend $35,000,000 or the amount necessary to complete the work required
103.23under the settlement agreement; and
103.24(3) upon completion of the work described in the settlement agreement, release "Old
103.25Highway 14" back to Steele and Waseca Counties.
103.26Upon completion of the work described in the settlement agreement between the
103.27state and Waseca and Steele Counties, the counties shall accept responsibility for the road
103.28described in the agreement as "Old Highway 14."

103.29    Sec. 22. COMMUNITY DESTINATION SIGN PILOT PROGRAM.
103.30    Subdivision 1. Definition. (a) For purposes of this section, the following terms
103.31have the meanings given.
104.1(b) "City" means the city of Two Harbors.
104.2(c) "General retail services" means a business that sells goods or services at retail
104.3and directly to an end-use consumer. General retail services includes but is not limited to:
104.4(1) personal services;
104.5(2) repair services;
104.6(3) hardware stores;
104.7(4) lumber or building supply stores; and
104.8(5) automotive parts sellers.
104.9    Subd. 2. Pilot program established. (a) In consultation with the city of Two
104.10Harbors, the commissioner of transportation shall establish a community destination sign
104.11pilot program for wayfinding within the city to destinations or attractions of interest to
104.12the traveling public.
104.13(b) For purposes of Minnesota Statutes, chapter 173, signs under the pilot program
104.14are official signs.
104.15    Subd. 3. Signage, design. (a) The pilot program must include as eligible attractions
104.16and destinations:
104.17(1) minor traffic generators; and
104.18(2) general retail services, specified by business name, that are identified in a
104.19community wayfinding program established by the city.
104.20(b) The commissioner of transportation, in coordination with the city, may establish
104.21sign design specifications for signs under the pilot program. Design specifications must
104.22allow for placement of:
104.23(1) a city name and city logo or symbol; and
104.24(2) up to five attractions or destinations on a community destination sign assembly.
104.25    Subd. 4. Program costs. The city shall pay costs of design, construction,
104.26erection, and maintenance of the signs and sign assemblies under the pilot program. The
104.27commissioner shall not impose fees for the pilot program.
104.28    Subd. 5. Expiration. The pilot program under this section expires January 1, 2022.
104.29EFFECTIVE DATE.This section is effective the day following final enactment.

104.34

Section 1. SUMMARY OF APPROPRIATIONS.

105.1The amounts shown in this section summarize direct appropriations, by fund, made
105.2in this article.

105.3							2015
105.4	General					$	15,999,000
105.5	Natural Resources						900,000
105.6	Game and Fish						3,000
105.7 105.8	Environment and Natural Resources Trust						490,000
105.9	Total					$	17,392,000

105.10

Sec. 2. APPROPRIATIONS.

105.11The sums shown in the columns marked "Appropriations" are added to the
105.12appropriations in Laws 2013, chapter 114, or appropriated to the agencies and for the
105.13purposes specified in this article. The appropriations are from the general fund, or another
105.14named fund, and are available for the fiscal year indicated for each purpose. The figure
105.15"2015" used in this article means that the addition to the appropriations listed under them
105.16are available for the fiscal year ending June 30, 2015.

105.17				APPROPRIATIONS
105.18				Available for the Year
105.19				Ending June 30
105.20							2015

105.21

Sec. 3. AGRICULTURE.

105.22

Subdivision 1.Total Appropriation

$

1,910,000

105.23The amounts that may be spent for each
105.24purpose are specified in the following
105.25subdivisions.

105.26

Subd. 2.Department of Agriculture

1,600,000

105.27$1,500,000 in 2015 is for a grant to Second
105.28Harvest Heartland on behalf of the six
105.29Feeding America food banks that serve
105.30Minnesota to compensate agricultural
105.31producers and processors for costs incurred
105.32to harvest and package for transfer surplus
105.33fruits, vegetables, or other agricultural
105.34commodities that would otherwise go
105.35unharvested or be discarded. Surplus
106.1commodities must be distributed statewide
106.2to food shelves and other charitable
106.3organizations that are eligible to receive
106.4food from the food banks. Surplus food
106.5acquired under this appropriation must be
106.6from Minnesota producers and processors.
106.7Second Harvest Heartland must report when
106.8required by, and in the form prescribed by,
106.9the commissioner. Second Harvest Heartland
106.10may use up to 11 percent of the grant for
106.11administrative expenses. This appropriation
106.12is added to the base.
106.13$100,000 in 2015 is to compensate experts
106.14evaluating pollinator death or illness as
106.15authorized in Minnesota Statutes, section
106.1618B.04. $65,000 is added to the base.
106.17The commissioner shall examine how other
106.18states are implementing the industrial hemp
106.19research authority provided in Public Law
106.20113-79 and to gauge the interest of Minnesota
106.21higher education institutions. No later than
106.22January 15, 2015, the commissioner
106.23must report the information and items for
106.24legislative consideration to the legislative
106.25committees with jurisdiction over agriculture
106.26policy and finance.

106.27

Subd. 3.Board of Animal Health

310,000

106.28$310,000 in 2015 is to administer the dog and
106.29cat breeder licensing and inspection program.
106.30The base in fiscal year 2016 is $426,000 and
106.31the base in fiscal year 2017 is $435,000.

106.32

Sec. 4. POLLUTION CONTROL AGENCY

106.33

Subdivision 1.Total Appropriation

$

7,349,000

107.1The amounts that may be spent for each
107.2purpose are specified in the following
107.3subdivisions.

107.4

Subd. 2.Water

1,000

107.5$1,000 in 2015 is to compile information
107.6on the presence of plastic microbeads in the
107.7state's waters and their potential impacts
107.8on aquatic ecosystems and human health,
107.9in consultation with the University of
107.10Minnesota. No later than December 15,
107.112014, the commissioner must present the
107.12information to the legislative committees
107.13with jurisdiction over environment and
107.14natural resources policy and finance and
107.15make recommendations. This is a onetime
107.16appropriation.

107.17 107.18

Subd. 3.Environmental Assistance and Cross-Media

7,348,000

107.19$7,000,000 in 2015 is for the purposes
107.20of Minnesota Statutes, section 115A.557,
107.21subdivision 2. This appropriation is added
107.22to the base.
107.23$348,000 in 2015 is for costs incurred
107.24implementing Minnesota Statutes, sections
107.25116.9401 to 116.9425. This is a onetime
107.26appropriation. Of this amount, $13,000
107.27is transferred to the commissioner of
107.28health. The base for this program from the
107.29environmental fund is $744,000 in fiscal year
107.302016 and $495,000 in fiscal year 2017.

107.31

Sec. 5. NATURAL RESOURCES

107.32

Subdivision 1.Total Appropriation

$

2,107,000

107.33	Appropriations by Fund
107.34	General		1,654,000
108.1	Game and Fish		3,000
108.2	Natural Resources		450,000

108.3The amounts that may be spent for each
108.4purpose are specified in the following
108.5subdivisions.

108.6

Subd. 2.Ecological and Water Resources

50,000

108.7$50,000 in 2015 is for a study of the effects
108.8of the Lake Emily dam in Crow Wing County
108.9on water clarity and water levels in Lake
108.10Emily, Lake Mary, and the Little Pine River.
108.11This is a onetime appropriation.

108.12 108.13

Subd. 3.Parks and Trails Management

2,045,000

108.14$1,595,000 in 2015 is for the improvement,
108.15maintenance, and conditions of facilities and
108.16infrastructure in state parks for safety and
108.17general use. This is a onetime appropriation.
108.18$450,000 in 2015 is from the natural
108.19resources fund for state trail, park, and
108.20recreation area operations. This appropriation
108.21is from the revenue deposited in the natural
108.22resources fund under Minnesota Statutes,
108.23section 297A.94, paragraph (e), clause (2).
108.24This is a onetime appropriation.

108.25 108.26

Subd. 4.Fish and Wildlife Management

12,000

108.27$3,000 in 2015 is from the game and fish fund
108.28for a report on aquatic plant management
108.29permitting policies for the management
108.30of narrow-leaved and hybrid cattail in a
108.31range of basin types across the state. The
108.32report shall be submitted to the chairs and
108.33ranking minority members of the house of
108.34representatives and senate committees with
108.35jurisdiction over environment and natural
109.1resources by December 15, 2014, and include
109.2recommendations for any necessary changes
109.3in statutes, rules, or permitting procedures.
109.4This is a onetime appropriation.
109.5$9,000 in 2015 is for the commissioner,
109.6in consultation with interested parties,
109.7agencies, and other states, to develop a
109.8detailed restoration plan to recover the
109.9historical native population of bobwhite
109.10quail in Minnesota for its ecological and
109.11recreational benefits to the citizens of the
109.12state. The commissioner shall conduct public
109.13meetings in developing the plan. No later
109.14than January 15, 2015, the commissioner
109.15must report on the plan's progress to the
109.16legislative committees with jurisdiction over
109.17environment and natural resources policy
109.18and finance. This is a onetime appropriation.

109.19

Sec. 6. METROPOLITAN COUNCIL

$

450,000

109.20$450,000 in 2015 is from the natural
109.21resources fund for metropolitan area regional
109.22parks and trails maintenance and operations.
109.23This appropriation is from the revenue
109.24deposited in the natural resources fund
109.25under Minnesota Statutes, section 297A.94,
109.26paragraph (e), clause (3). This is a onetime
109.27appropriation.

109.28

Sec. 7. UNIVERSITY OF MINNESOTA

$

5,554,000

109.29	Appropriations by Fund
109.30	General		5,064,000
109.31 109.32 109.33	Environment and Natural Resources Trust		490,000

109.34$5,064,000 in 2015 is from the general fund
109.35for the Invasive Terrestrial Plants and Pests
110.1Center requested under this act, including a
110.2director, graduate students, and necessary
110.3supplies. This is a onetime appropriation and
110.4is available until June 30, 2025.
110.5$490,000 in 2015 is from the environment
110.6and natural resources trust fund for the
110.7Invasive Terrestrial Plants and Pests Center
110.8requested under this act, including a director,
110.9graduate students, and necessary supplies.
110.10This is a onetime appropriation and is
110.11available until June 30, 2025.
110.12$970,000 from the environment and natural
110.13resources trust fund appropriated in Laws
110.142011, First Special Session chapter 2, article
110.153, section 2, subdivision 9, paragraph (d),
110.16Reinvest in Minnesota Wetlands Reserve
110.17Acquisition and Restoration Program
110.18Partnership, is transferred to the Board of
110.19Regents of the University of Minnesota for
110.20the Invasive Terrestrial Plants and Pests
110.21Center requested under this act, including a
110.22director, graduate students, and necessary
110.23supplies and is available until June 30, 2025.

110.24    Sec. 8. Laws 2013, chapter 114, article 3, section 4, subdivision 3, is amended to read:

110.25 110.26

Subd. 3.Ecological and Water Resources

27,182,000

31,582,000 31,604,000

110.27	Appropriations by Fund
110.28 110.29	General	12,117,000	16,817,000 16,839,000
110.30	Natural Resources	11,002,000	10,702,000
110.31	Game and Fish	4,063,000	4,063,000

110.32$3,542,000 the first year and $3,242,000 the
110.33second year are from the invasive species
110.34account in the natural resources fund and
110.35$2,906,000 the first year and $3,206,000 the
111.1second year are from the general fund for
111.2management, public awareness, assessment
111.3and monitoring research, and water access
111.4inspection to prevent the spread of invasive
111.5species; management of invasive plants in
111.6public waters; and management of terrestrial
111.7invasive species on state-administered lands.
111.8$5,000,000 the first year and $5,000,000 the
111.9second year are from the water management
111.10account in the natural resources fund for only
111.11the purposes specified in Minnesota Statutes,
111.12section 103G.27, subdivision 2.
111.13$103,000 the first year and $103,000
111.14 $125,000 the second year are for a grant to
111.15the Mississippi Headwaters Board for up to
111.1650 percent of the cost of implementing the
111.17comprehensive plan for the upper Mississippi
111.18within areas under the board's jurisdiction.
111.19 The base for this grant is $103,000. By
111.20January 15, 2015, the board shall submit a
111.21report detailing the results achieved with
111.22the fiscal year 2014 appropriation and the
111.23anticipated results that will be achieved with
111.24the fiscal year 2015 appropriation to the
111.25commissioner and the chairs and ranking
111.26minority members of the senate and house
111.27of representatives committees and divisions
111.28with jurisdiction over environment and
111.29natural resources policy and finance.
111.30$10,000 the first year and $10,000 the second
111.31year are for payment to the Leech Lake Band
111.32of Chippewa Indians to implement the band's
111.33portion of the comprehensive plan for the
111.34upper Mississippi.
112.1$264,000 the first year and $264,000 the
112.2second year are for grants for up to 50
112.3percent of the cost of implementation of
112.4the Red River mediation agreement. The
112.5commissioner shall submit a report to the
112.6chairs of the legislative committees having
112.7primary jurisdiction over environment and
112.8natural resources policy and finance on the
112.9accomplishments achieved with the grants
112.10by January 15, 2015.
112.11$1,643,000 the first year and $1,643,000
112.12the second year are from the heritage
112.13enhancement account in the game and
112.14fish fund for only the purposes specified
112.15in Minnesota Statutes, section 297A.94,
112.16paragraph (e), clause (1).
112.17$1,223,000 the first year and $1,223,000 the
112.18second year are from the nongame wildlife
112.19management account in the natural resources
112.20fund for the purpose of nongame wildlife
112.21management. Notwithstanding Minnesota
112.22Statutes, section 290.431, $100,000 the first
112.23year and $100,000 the second year may
112.24be used for nongame wildlife information,
112.25education, and promotion.
112.26$1,600,000 the first year and $6,000,000 the
112.27second year are from the general fund for the
112.28following activities:
112.29(1) increased financial reimbursement
112.30and technical support to soil and water
112.31conservation districts or other local units
112.32of government for groundwater level
112.33monitoring;
113.1(2) additional surface water monitoring and
113.2analysis, including installation of monitoring
113.3gauges;
113.4(3) additional groundwater analysis to
113.5assist with water appropriation permitting
113.6decisions;
113.7(4) additional permit application review
113.8incorporating surface water and groundwater
113.9technical analysis;
113.10(5) enhancement of precipitation data and
113.11analysis to improve the use of irrigation;
113.12(6) enhanced information technology,
113.13including electronic permitting and
113.14integrated data systems; and
113.15(7) increased compliance and monitoring.
113.16Of this amount, $600,000 the first year is for
113.17silica sand rulemaking and is available until
113.18spent.
113.19The commissioner, in cooperation with the
113.20commissioner of agriculture, shall enforce
113.21compliance with aquatic plant management
113.22requirements regulating the control of
113.23aquatic plants with pesticides and removal of
113.24aquatic plants by mechanical means under
113.25Minnesota Statutes, section 103G.615.


113.29    Section 1. Minnesota Statutes 2012, section 13.643, subdivision 6, is amended to read:
113.30    Subd. 6. Animal premises data. (a) The following data collected and maintained
113.31by the Board of Animal Health related to registration and identification of premises and
113.32animals under chapter 35, are classified as private or nonpublic:
113.33(1) the names and addresses;
114.1(2) the location of the premises where animals are kept; and
114.2(3) the identification number of the premises or the animal.
114.3(b) Except as provided in section 347.58, subdivision 5, data collected and
114.4maintained by the Board of Animal Health under sections 347.57 to 347.64 are classified
114.5as private or nonpublic.
114.6(b) (c) The Board of Animal Health may disclose data collected under paragraph (a)
114.7 or (b) to any person, agency, or to the public if the board determines that the access will
114.8aid in the law enforcement process or the protection of public or animal health or safety.

114.9    Sec. 2. Minnesota Statutes 2012, section 13.7411, subdivision 8, is amended to read:
114.10    Subd. 8. Pollution Control Agency. (a) Hazardous waste generators.
114.11Information provided by hazardous waste generators under section 473.151 and for which
114.12confidentiality is claimed is governed by section 116.075, subdivision 2.
114.13(b) Tests. Trade secret information made available by applicants for certain projects
114.14of the Pollution Control Agency is classified under section 116.54.
114.15(c) Priority chemicals. Information submitted to the Pollution Control Agency
114.16related to priority chemicals in children's products is classified under section 116.9403.

114.17    Sec. 3. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
114.18to read:
114.19    Subd. 1c. Apiary. "Apiary" means a place where a collection of one or more hives
114.20or colonies of bees or the nuclei of bees are kept.

114.21    Sec. 4. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
114.22to read:
114.23    Subd. 2a. Bee. "Bee" means any stage of the common honeybee, Apis mellifera (L).

114.24    Sec. 5. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
114.25to read:
114.26    Subd. 2b. Bee owner. "Bee owner" means a person who owns an apiary.

114.27    Sec. 6. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
114.28to read:
114.29    Subd. 4c. Colony. "Colony" means the aggregate of worker bees, drones, the queen,
114.30and developing young bees living together as a family unit in a hive or other dwelling.

115.1    Sec. 7. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
115.2to read:
115.3    Subd. 11a. Hive. "Hive" means a frame hive, box hive, box, barrel, log gum, skep,
115.4or any other receptacle or container, natural or artificial, or any part of one, which is
115.5used as domicile for bees.

115.6    Sec. 8. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
115.7to read:
115.8    Subd. 20a. Pollinator. "Pollinator" means an insect that pollinates flowers.

115.9    Sec. 9. Minnesota Statutes 2012, section 18B.03, is amended by adding a subdivision
115.10to read:
115.11    Subd. 4. Pollinator enforcement. The commissioner may take enforcement action
115.12under chapter 18D for a violation of this chapter, or any rule adopted under this chapter,
115.13that results in harm to pollinators, including but not limited to applying a pesticide in
115.14a manner inconsistent with the pesticide product's label or labeling and resulting in
115.15pollinator death or willfully applying pesticide in a manner inconsistent with the pesticide
115.16product's label or labeling. The commissioner must deposit any penalty collected under
115.17this subdivision in the pesticide regulatory account in section 18B.05.

115.18    Sec. 10. Minnesota Statutes 2012, section 18B.04, is amended to read:
115.1918B.04 PESTICIDE IMPACT ON ENVIRONMENT.
115.20(a) The commissioner shall:
115.21(1) determine the impact of pesticides on the environment, including the impacts on
115.22surface water and groundwater in this state;
115.23(2) develop best management practices involving pesticide distribution, storage,
115.24handling, use, and disposal; and
115.25(3) cooperate with and assist other state agencies and local governments to protect
115.26public health, pollinators, and the environment from harmful exposure to pesticides.
115.27(b) The commissioner may assemble a group of experts under section 16C.10,
115.28subdivision 2, to consult in the investigation of pollinator deaths or illnesses. The group of
115.29experts may include representatives from local, state, and federal agencies; academia; the
115.30state pollinator bank; or other professionals as deemed necessary by the commissioner.

115.31    Sec. 11. [18B.055] COMPENSATION FOR BEES KILLED BY PESTICIDE;
115.32APPROPRIATION.
116.1    Subdivision 1. Compensation required. (a) The commissioner of agriculture
116.2must compensate a person for an acute pesticide poisoning resulting in the death of bees
116.3owned by the person, provided:
116.4(1) the person who applied the pesticide cannot be determined;
116.5(2) the person who applied the pesticide did so in a manner consistent with the
116.6pesticide product's label or labeling; or
116.7(3) the person who applied the pesticide did so in a manner inconsistent with the
116.8pesticide product's label or labeling.
116.9(b) Except as provided in this section, the bee owner is entitled to the fair market
116.10value of the dead bees as determined by the commissioner upon recommendation by
116.11academic experts and bee keepers. In any fiscal year, a bee owner must not be compensated
116.12for a claim that is less than $100 or compensated more than $20,000 for all eligible claims.
116.13    Subd. 2. Applicator responsible. In the event a person applies a pesticide in a
116.14manner inconsistent with the pesticide product's label or labeling requirements as approved
116.15by the commissioner and is determined to have caused the acute pesticide poisoning of
116.16bees, resulting in death, kept for commercial purposes, then the person so identified must
116.17bear the responsibility of restitution for the value of the bees to the bee owner. In such
116.18cases the commissioner must not provide compensation as provided in this section.
116.19    Subd. 3. Claim form. The bee owner must file a claim on forms provided by the
116.20commissioner and available on the Department of Agriculture's Web site.
116.21    Subd. 4. Determination. The commissioner must determine whether the death of
116.22the bees was caused by an acute pesticide poisoning, whether the pesticide applicator can
116.23be determined, and whether the pesticide applicator applied the pesticide product in a
116.24manner consistent with the pesticide product's label or labeling.
116.25    Subd. 5. Payments; denial of compensation. (a) If the commissioner determines
116.26the bee death was caused by an acute pesticide poisoning and either the pesticide
116.27applicator cannot be determined or the pesticide applicator applied the pesticide product in
116.28a manner consistent with the pesticide product's label or labeling, the commissioner may
116.29award compensation from the pesticide regulatory account. If the pesticide applicator can
116.30be determined and the applicator applied the pesticide product in a manner inconsistent
116.31with the product's label or labeling, the commissioner may collect a penalty from the
116.32pesticide applicator sufficient to compensate the bee owner for the fair market value of the
116.33dead bees and must award the money to the bee owner.
116.34(b) If the commissioner denies compensation claimed by a bee owner under this
116.35section, the commissioner must issue a written decision based upon the available evidence.
116.36The decision must include specification of the facts upon which the decision is based and
117.1the conclusions on the material issues of the claim. The commissioner must mail a copy
117.2of the decision to the bee owner.
117.3(c) A decision to deny compensation claimed under this section is not subject to the
117.4contested case review procedures of chapter 14, but may be reviewed upon a trial de
117.5novo in a court in the county where the loss occurred. The decision of the court may be
117.6appealed as in other civil cases. Review in court may be obtained by filing a petition for
117.7review with the administrator of the court within 60 days following receipt of a decision
117.8under this section. Upon the filing of a petition, the administrator must mail a copy to the
117.9commissioner and set a time for hearing within 90 days of the filing.
117.10    Subd. 6. Deduction from payment. In order to be eligible for compensation under
117.11this section, a bee owner must document that at the time of the loss the bee owner had
117.12insurance sufficient to cover up to 50 percent of the total value of the owner's colony.
117.13The commissioner must reduce payments made under this section by any compensation
117.14received by the bee owner as proceeds from an insurance policy or from another source.
117.15    Subd. 7. Appropriation. The amount necessary to pay claims under this section,
117.16not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory
117.17account in section 18B.05.

117.18    Sec. 12. [19.70] DEFINITIONS.
117.19    Subdivision 1. Scope. For the purposes of this chapter the terms defined in this
117.20section have the meanings given.
117.21    Subd. 2. Abandoned apiary. "Abandoned apiary" means any apiary not regularly
117.22attended in accordance with good beekeeping practices and which constitutes a disease or
117.23parasite hazard to the beekeeping industry.
117.24    Subd. 3. Africanized honeybees. "Africanized honeybees" means Africanized
117.25honeybees using United States Department of Agriculture standards.
117.26    Subd. 4. Bee diseases. "Bee diseases" means infectious, contagious, or harmful
117.27diseases including but not limited to: American or European foulbrood, sacbrood,
117.28chalkbrood, Nosema, bee paralysis, or abnormal condition of egg, larval, pupal, or adult
117.29stages of bees.
117.30    Subd. 5. Bee equipment. "Bee equipment" means hives, supers, frames, veils,
117.31gloves, and any apparatus, tool, machine, vehicle, or other device used in the handling,
117.32moving, or manipulating of bees, honey, wax, or hives, including containers of honey or
117.33wax which may be used in an apiary or in transporting bees and their products and apiary
117.34supplies.
117.35    Subd. 6. Beekeeper. "Beekeeper" means a person who keeps bees.
118.1    Subd. 7. Beekeeping. "Beekeeping" means the moving, raising, and producing of
118.2bees, beeswax, honey, related products, and pollination.
118.3    Subd. 8. Commissioner. "Commissioner" means the commissioner of agriculture
118.4or the commissioner's authorized agents.
118.5    Subd. 9. Department. "Department" means the Department of Agriculture.
118.6    Subd. 10. Exotic parasite. "Exotic parasite" means any parasite harmful to bees
118.7including but not limited to: Varroa jacobsoni, Tropilaelaps clareae, or Acarapis woodi.
118.8    Subd. 11. Queen apiary. "Queen apiary" means any apiary or premises in which
118.9queen bees are reared or kept for sale or gift.

118.10    Sec. 13. Minnesota Statutes 2012, section 84.788, subdivision 2, is amended to read:
118.11    Subd. 2. Exemptions. Registration is not required for off-highway motorcycles:
118.12(1) owned and used by the United States, an Indian tribal government, the state,
118.13another state, or a political subdivision;
118.14(2) registered in another state or country that have not been within this state for
118.15more than 30 consecutive days; or
118.16(3) registered under chapter 168, when operated on forest roads to gain access to a
118.17state forest campground;
118.18(4) used exclusively in organized track racing events;
118.19(5) operated on state or grant-in-aid trails by a nonresident possessing a nonresident
118.20off-highway motorcycle state trail pass; or
118.21(6) operated by a person participating in an event for which the commissioner has
118.22issued a special use permit.

118.23    Sec. 14. [84.7945] NONRESIDENT OFF-HIGHWAY MOTORCYCLE STATE
118.24TRAIL PASS.
118.25    Subdivision 1. Pass required; fee. (a) A tribal member exempt from registration
118.26under section 84.788, subdivision 2, clause (2), or a nonresident, may not operate an
118.27off-highway motorcycle on a state or grant-in-aid off-highway motorcycle trail unless the
118.28operator carries a valid nonresident off-highway motorcycle state trail pass in immediate
118.29possession. The pass must be available for inspection by a peace officer, a conservation
118.30officer, or an employee designated under section 84.0835.
118.31(b) The commissioner of natural resources shall issue a pass upon application and
118.32payment of a $20 fee. The pass is valid from January 1 through December 31. Fees
118.33collected under this section, except for the issuing fee for licensing agents, shall be
118.34deposited in the state treasury and credited to the off-highway motorcycle account in
119.1the natural resources fund and, except for the electronic licensing system commission
119.2established by the commissioner under section 84.027, subdivision 15, must be used for
119.3grants-in-aid to counties and municipalities for off-highway motorcycle organizations to
119.4construct and maintain off-highway motorcycle trails and use areas.
119.5    (c) A nonresident off-highway motorcycle state trail pass is not required for:
119.6    (1) an off-highway motorcycle that is owned and used by the United States, another
119.7state, or a political subdivision thereof that is exempt from registration under section
119.884.788, subdivision 2;
119.9    (2) a person operating an off-highway motorcycle only on the portion of a trail that
119.10is owned by the person or the person's spouse, child, or parent; or
119.11(3) a nonresident operating an off-highway motorcycle that is registered according
119.12to section 84.788.
119.13    Subd. 2. License agents. The commissioner may appoint agents to issue and sell
119.14nonresident off-highway motorcycle state trail passes. The commissioner may revoke the
119.15appointment of an agent at any time. The commissioner may adopt additional rules as
119.16provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted
119.17by the commissioner for accounting and handling of passes pursuant to section 97A.485,
119.18subdivision 11 . An agent shall promptly deposit and remit all money received from the
119.19sale of the passes, exclusive of the issuing fee, to the commissioner.
119.20    Subd. 3. Issuance of passes. The commissioner and agents shall issue and sell
119.21nonresident off-highway motorcycle state trail passes. The commissioner shall also make
119.22the passes available through the electronic licensing system established under section
119.2384.027, subdivision 15.
119.24    Subd. 4. Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass
119.25shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees
119.26for passes issued by the commissioner shall be deposited in the off-highway motorcycle
119.27account in the natural resources fund and retained for the operation of the electronic
119.28licensing system.
119.29    Subd. 5. Duplicate passes. The commissioner and agents shall issue a duplicate
119.30pass to persons whose pass is lost or destroyed using the process established under section
119.3197A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident
119.32off-highway motorcycle state trail pass is $2, with an issuing fee of 50 cents.

119.33    Sec. 15. Minnesota Statutes 2012, section 85.053, subdivision 2, is amended to read:
119.34    Subd. 2. Requirement. Except as provided in section 85.054, a motor vehicle
119.35may not enter a state park, state recreation area, or state wayside over 50 acres in area,
120.1without a state park permit issued under this section or a state parks and trails plate issued
120.2under section 168.1295. Except for vehicles permitted under subdivisions 7, paragraph
120.3(a), clause (2), and 8, the state park permit must be affixed to the lower right corner
120.4windshield of the motor vehicle and must be completely affixed by its own adhesive to
120.5the windshield, or the commissioner may, by written order, provide an alternative means
120.6to display and validate state park permits.

120.7    Sec. 16. [85.056] STATE PARKS AND TRAILS DONATION ACCOUNT.
120.8    Subdivision 1. Establishment. The state parks and trails donation account is
120.9established as a separate account in the natural resources fund. The account shall be
120.10administered by the commissioner of natural resources as provided in this section.
120.11    Subd. 2. Funding sources. The state parks and trails donation account shall consist
120.12of contributions made under section 168.1295 and other contributions. The contributions
120.13may be made in cash, property, land, or interests in land.
120.14    Subd. 3. Uses. Money in the account is appropriated to the commissioner of natural
120.15resources to operate and maintain the state parks and trails system.

120.16    Sec. 17. Minnesota Statutes 2012, section 85.34, subdivision 7, is amended to read:
120.17    Subd. 7. Disposition of proceeds. (a) All revenue derived from the lease of the Fort
120.18Snelling upper bluff, with the exception of payment for costs of the water line as described
120.19in subdivision 6, shall be deposited in the natural resources fund and credited to a state
120.20park account. Interest earned on the money in the account accrues to the account.
120.21(b) Revenue and expenses from the upper bluff shall be tracked separately within
120.22the account. Money in the account derived from the leasing or operation of the property
120.23described in subdivision 1 may be is appropriated annually to the commissioner for
120.24the payment of expenses attributable to the leasing, development, and operation of the
120.25property described in subdivision 1, including, but not limited to, the maintenance, repair,
120.26and rehabilitation of historic buildings and landscapes.

120.27    Sec. 18. Minnesota Statutes 2012, section 85A.02, subdivision 2, is amended to read:
120.28    Subd. 2. Zoological Garden. The board shall acquire, construct, equip, operate
120.29and maintain the Minnesota Zoological Garden at a site in Dakota County legally
120.30described in Laws 1975, chapter 382, section 12. The Zoological Garden shall consist
120.31of adequate facilities and structures for the collection, habitation, preservation, care,
120.32exhibition, examination or study of wild and domestic animals, including, but not limited
120.33to mammals, birds, fish, amphibians, reptiles, crustaceans and mollusks. The board
121.1may provide such lands, buildings and equipment as it deems necessary for parking,
121.2transportation, entertainment, education or instruction of the public in connection with
121.3such Zoological Garden. The Zoological Garden is the official pollinator bank for the state
121.4of Minnesota. For purposes of this subdivision, "pollinator bank" means a program to
121.5avert the extinction of pollinator species by cultivating insurance breeding populations.

121.6    Sec. 19. [87A.10] TRAP SHOOTING SPORTS FACILITY GRANTS.
121.7The commissioner of natural resources shall administer a program to provide
121.8cost-share grants to local recreational trap shooting clubs for up to 50 percent of the costs
121.9of developing or rehabilitating trap shooting sports facilities for public use. A facility
121.10rehabilitated or developed with a grant under this section must be open to the general
121.11public at reasonable times and for a reasonable fee on a walk-in basis. The commissioner
121.12shall give preference to projects that will provide the most opportunities for youth.

121.13    Sec. 20. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
121.14    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
121.15(b) to (f) (g), a water use permit processing fee must be prescribed by the commissioner in
121.16accordance with the schedule of fees in this subdivision for each water use permit in force
121.17at any time during the year. Fees collected under this paragraph are credited to the water
121.18management account in the natural resources fund. The schedule is as follows, with the
121.19stated fee in each clause applied to the total amount appropriated:
121.20    (1) $140 for amounts not exceeding 50,000,000 gallons per year;
121.21    (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
121.22than 100,000,000 gallons per year;
121.23    (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
121.24than 150,000,000 gallons per year;
121.25    (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
121.26less than 200,000,000 gallons per year;
121.27    (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
121.28than 250,000,000 gallons per year;
121.29    (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
121.30less than 300,000,000 gallons per year;
121.31    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
121.32than 350,000,000 gallons per year;
121.33    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
121.34less than 400,000,000 gallons per year;
122.1    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
122.2than 450,000,000 gallons per year;
122.3    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
122.4less than 500,000,000 gallons per year; and
122.5    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
122.6    (b) For once-through cooling systems, a water use processing fee must be prescribed
122.7by the commissioner in accordance with the following schedule of fees for each water use
122.8permit in force at any time during the year:
122.9    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
122.10    (2) for all other users, $420 per 1,000,000 gallons.
122.11    (c) The fee is payable based on the amount of water appropriated during the year
122.12and, except as provided in paragraph (f), the minimum fee is $100.
122.13    (d) For water use processing fees other than once-through cooling systems:
122.14    (1) the fee for a city of the first class may not exceed $250,000 per year;
122.15    (2) the fee for other entities for any permitted use may not exceed:
122.16    (i) $60,000 per year for an entity holding three or fewer permits;
122.17    (ii) $90,000 per year for an entity holding four or five permits; or
122.18    (iii) $300,000 per year for an entity holding more than five permits;
122.19    (3) the fee for agricultural irrigation may not exceed $750 per year;
122.20    (4) the fee for a municipality that furnishes electric service and cogenerates steam
122.21for home heating may not exceed $10,000 for its permit for water use related to the
122.22cogeneration of electricity and steam; and
122.23    (5) no fee is required for a project involving the appropriation of surface water to
122.24prevent flood damage or to remove flood waters during a period of flooding, as determined
122.25by the commissioner.
122.26    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
122.27percent per month calculated from the original due date must be imposed on the unpaid
122.28balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
122.29may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
122.30governmental agency holding a water appropriation permit.
122.31    (f) The minimum water use processing fee for a permit issued for irrigation of
122.32agricultural land is $20 for years in which:
122.33    (1) there is no appropriation of water under the permit; or
122.34    (2) the permit is suspended for more than seven consecutive days between May 1
122.35and October 1.
123.1(g) The commissioner shall waive the water use permit fee for installations and
123.2projects that use storm water runoff or for a public entity that is diverting water to treat a
123.3water quality issue and returning that water to its source without using the water for
123.4any other purpose, unless the commissioner determines that any of the proposed uses
123.5adversely affect surface water or groundwater.
123.6    (g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in
123.7paragraph (a) shall be applied to the volume of water used in each of the months of June,
123.8July, and August that exceeds the volume of water used in January for municipal water
123.9use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
123.10with more than one permit shall be determined based on the total appropriations from all
123.11permits that supply a common distribution system.

123.12    Sec. 21. Minnesota Statutes 2012, section 115A.151, is amended to read:
123.13115A.151 RECYCLABLE MATERIAL CONTAINER REQUIREMENTS;
123.14PUBLIC ENTITIES, SPORTS FACILITIES, AND COMMERCIAL BUILDINGS.
123.15(a) A public entity, the owner of a sports facility, and the owner of a commercial
123.16building shall:
123.17(1) ensure that facilities under its control, from which mixed municipal solid waste
123.18is collected, have containers for at least three recyclable materials, such as, but not limited
123.19to, paper, glass, plastic, and metal; and
123.20(2) transfer all recyclable materials collected to a recycler.
123.21(b) For the purposes of this section:
123.22(1) "public entity" means the state, an office, agency, or institution of the state,
123.23the Metropolitan Council, a metropolitan agency, the Metropolitan Mosquito Control
123.24Commission, the legislature, the courts, a county, a statutory or home rule charter city, a
123.25town, a school district, a special taxing district, or any entity that receives an appropriation
123.26from the state for a capital improvement project after August 1, 2002;
123.27(2) "metropolitan agency" and "Metropolitan Council," have the meanings given
123.28them in section 473.121; and
123.29(3) "Metropolitan Mosquito Control Commission" means the commission created
123.30in section 473.702;
123.31(4) "commercial building" means a building that contains a business classified in
123.32sectors 42 to 81 under the North American Industrial Classification System and that
123.33contracts for two cubic yards or more per week of solid waste collection; and
123.34(5) "sports facility" means a professional or collegiate sports facility at which
123.35competitions take place before a public audience.
124.1EFFECTIVE DATE.This section is effective January 1, 2015.

124.2    Sec. 22. Minnesota Statutes 2012, section 115A.55, subdivision 4, is amended to read:
124.3    Subd. 4. Statewide source reduction goal. (a) It is a goal of the state that there
124.4be a minimum ten percent per capita reduction in the amount of mixed and counties to
124.5reduce the generation of municipal solid waste generated in the state by December 31,
124.62000, based on a reasonable estimate of the amount of mixed municipal solid waste that
124.7was generated in calendar year 1993.
124.8(b) As part of the 1997 report required under section 115A.411, the commissioner
124.9shall submit to the senate and house of representatives committees having jurisdiction
124.10over environment and natural resources and environment and natural resources finance
124.11a proposed strategy for meeting the goal in paragraph (a). The strategy must include a
124.12discussion of the different reduction potentials to be found in various sectors and may
124.13include recommended interim goals. The commissioner shall report progress on meeting
124.14the goal in paragraph (a), as well as recommendations and revisions to the proposed
124.15strategy, as part of the 1999 report required under section 115A.411.
124.16EFFECTIVE DATE.This section is effective the day following final enactment.

124.17    Sec. 23. Minnesota Statutes 2012, section 115A.551, subdivision 1, is amended to read:
124.18    Subdivision 1. Definition. (a) For the purposes of this section, "recycling" means,
124.19in addition to the meaning given in section 115A.03, subdivision 25b, yard waste and
124.20source-separated compostable materials composting, and recycling that occurs through
124.21mechanical or hand separation of materials that are then delivered for reuse in their
124.22original form or for use in manufacturing processes that do not cause the destruction of
124.23recyclable materials in a manner that precludes further use.
124.24(b) For the purposes of this section, "total solid waste generation" means the total
124.25by weight of:
124.26(1) materials separated for recycling;
124.27(2) materials separated for yard waste and source-separated compostable materials
124.28composting;
124.29(3) mixed municipal solid waste plus yard waste, motor and vehicle fluids and
124.30filters, tires, lead acid batteries, and major appliances; and
124.31(4) residential and commercial waste materials that would be mixed municipal solid
124.32waste but for the fact that they are not collected as such.
124.33EFFECTIVE DATE.This section is effective the day following final enactment.

125.1    Sec. 24. Minnesota Statutes 2012, section 115A.551, subdivision 2a, is amended to read:
125.2    Subd. 2a. Supplementary County recycling goals. (a) By December 31, 1996
125.3 2030, each county will have as a goal to recycle the following amounts:
125.4(1) for a county outside of the metropolitan area, 35 percent by weight of total
125.5solid waste generation; and
125.6(2) for a metropolitan county, 50 75 percent by weight of total solid waste generation.
125.7(b) Each county will develop and implement or require political subdivisions within
125.8the county to develop and implement programs, practices, or methods designed to meet its
125.9recycling goal. Nothing in this section or in any other law may be construed to prohibit a
125.10county from establishing a higher recycling goal.
125.11EFFECTIVE DATE.This section is effective the day following final enactment.

125.12    Sec. 25. Minnesota Statutes 2012, section 115A.557, subdivision 2, is amended to read:
125.13    Subd. 2. Purposes for which money may be spent. (a) A county receiving money
125.14distributed by the commissioner under this section may use the money only for the
125.15development and implementation of programs to:
125.16(1) reduce the amount of solid waste generated;
125.17(2) recycle the maximum amount of solid waste technically feasible;
125.18(3) create and support markets for recycled products;
125.19(4) remove problem materials from the solid waste stream and develop proper
125.20disposal options for them;
125.21(5) inform and educate all sectors of the public about proper solid waste management
125.22procedures;
125.23(6) provide technical assistance to public and private entities to ensure proper solid
125.24waste management;
125.25(7) provide educational, technical, and financial assistance for litter prevention; and
125.26(8) process mixed municipal solid waste generated in the county at a resource
125.27recovery facility located in Minnesota; and
125.28(9) compost source-separated compostable materials, including the provision of
125.29receptacles for residential composting.
125.30(b) Beginning in fiscal year 2015 and continuing thereafter, of any money distributed
125.31by the commissioner under this section to a metropolitan county, as defined in section
125.32473.121, subdivision 4, that exceeds the amount the county was eligible to receive under
125.33this section in fiscal year 2014: (1) at least 50 percent must be expended on activities
125.34in paragraph (a), clause (9); and (2) the remainder must be expended on activities in
126.1paragraph (a), clauses (1) to (7) and (9) that advance the county toward achieving its
126.2recycling goal under section 115A.551.
126.3EFFECTIVE DATE.This section is effective the day following final enactment.

126.4    Sec. 26. Minnesota Statutes 2012, section 115A.557, subdivision 3, is amended to read:
126.5    Subd. 3. Eligibility to receive money. (a) To be eligible to receive money distributed
126.6by the commissioner under this section, a county shall within one year of October 4, 1989:
126.7(1) create a separate account in its general fund to credit the money; and
126.8(2) set up accounting procedures to ensure that money in the separate account is
126.9spent only for the purposes in subdivision 2.
126.10(b) In each following year, each county shall also:
126.11(1) have in place an approved solid waste management plan or master plan including
126.12a recycling implementation strategy under section 115A.551, subdivision 7, and a
126.13household hazardous waste management plan under section 115A.96, subdivision 6,
126.14by the dates specified in those provisions;
126.15(2) submit a report by April 1 of each year to the commissioner, which may be
126.16submitted electronically and must be posted on the agency's Web site, detailing for the
126.17previous calendar year:
126.18(i) how the money was spent including, but not limited to, specific recycling and
126.19composting activities undertaken to increase the county's proportion of solid waste
126.20recycled in order to achieve its recycling goal established in section 115A.551; specific
126.21information on the number of employees performing SCORE planning, oversight, and
126.22administration; the percentage of those employees' total work time allocated to SCORE
126.23planning, oversight, and administration; the specific duties and responsibilities of those
126.24employees; and the amount of staff salary for these SCORE duties and responsibilities of
126.25the employees; and
126.26(ii) the resulting gains achieved in solid waste management practices; and
126.27(3) provide evidence to the commissioner that local revenue equal to 25 percent of
126.28the money sought for distribution under this section will be spent for the purposes in
126.29subdivision 2.
126.30(c) The commissioner shall withhold all or part of the funds to be distributed
126.31to a county under this section if the county fails to comply with this subdivision and
126.32subdivision 2.
126.33EFFECTIVE DATE.This section is effective the day following final enactment.

127.1    Sec. 27. Minnesota Statutes 2012, section 116.9401, is amended to read:
127.2116.9401 DEFINITIONS.
127.3(a) For the purposes of sections 116.9401 to 116.9407 116.9425, the following terms
127.4have the meanings given them.
127.5(b) "Agency" means the Pollution Control Agency.
127.6(c) "Alternative" means a substitute process, product, material, chemical, strategy,
127.7or combination of these that is technically feasible and serves a functionally equivalent
127.8purpose to a chemical in a children's product.
127.9(d) "Chemical" means a substance with a distinct molecular composition or a group
127.10of structurally related substances and includes the breakdown products of the substance or
127.11substances that form through decomposition, degradation, or metabolism.
127.12(e) "Chemical of high concern" means a chemical identified on the basis of credible
127.13scientific evidence by a state, federal, or international agency as being known or suspected
127.14with a high degree of probability to:
127.15(1) harm the normal development of a fetus or child or cause other developmental
127.16toxicity;
127.17(2) cause cancer, genetic damage, or reproductive harm;
127.18(3) disrupt the endocrine or hormone system;
127.19(4) damage the nervous system, immune system, or organs, or cause other systemic
127.20toxicity;
127.21(5) be persistent, bioaccumulative, and toxic; or
127.22(6) be very persistent and very bioaccumulative.
127.23(f) "Child" means a person under 12 years of age.
127.24(g) "Children's product" means a consumer product intended for use by children,
127.25such as baby products, toys, car seats, personal care products, and clothing.
127.26(h) "Commissioner" means the commissioner of the Pollution Control Agency.
127.27(i) "Contaminant" means a trace amount of a chemical that is incidental to
127.28manufacturing and serves no intended function in the product component. Contaminant
127.29includes, but is not limited to, unintended by-products of chemical reactions that
127.30occur during the manufacture of the product component, trace impurities in feedstock,
127.31incompletely reacted chemical mixtures, and degradation products.
127.32(j) "Department" means the Department of Health.
127.33(j) (k) "Distributor" means a person who sells consumer products to retail
127.34establishments on a wholesale basis.
127.35(k) (l) "Green chemistry" means an approach to designing and manufacturing
127.36products that minimizes the use and generation of toxic substances.
128.1(m) "Intentionally added chemical" means a chemical in a product that serves an
128.2intended function in the product component.
128.3(l) (n) "Manufacturer" means any person who manufactures a final consumer product
128.4sold at retail or whose brand name is affixed to the consumer product. In the case of a
128.5consumer product imported into the United States, manufacturer includes the importer
128.6or domestic distributor of the consumer product if the person who manufactured or
128.7assembled the consumer product or whose brand name is affixed to the consumer product
128.8does not have a presence in the United States.
128.9(o) "Mouthable" means a product that can be placed into and kept in a child's
128.10mouth to be sucked or chewed, including any product or product part smaller than five
128.11centimeters in one dimension. A product that can only be licked is not mouthable.
128.12(p) "Practical quantification limit" means the lowest concentration of a chemical that
128.13can be reliably measured within specified limits of precision, accuracy, representativeness,
128.14completeness, and comparability under routine laboratory operating conditions and the
128.15value of which:
128.16(1) is based on scientifically defensible, standard analytical methods;
128.17(2) may vary depending on the matrix and analytical method used; and
128.18(3) will be determined by the commissioner, taking into consideration practical
128.19quantification limits established by federal or state agencies.
128.20(m) (q) "Priority chemical" means a chemical identified by the Department of Health
128.21as a chemical of high concern that meets the criteria in section 116.9403.
128.22(r) "Product category" means the brick level of the GS1 Global Product Classification
128.23(GPC) standard, which identifies products that serve a common purpose, are of a similar
128.24form and material, and share the same set of category attributes.
128.25(s) "Product code" means the numeric representation of the item level of the
128.26GS1 electronic product code (EPC), the international article number (EAN), or the
128.27universal product code (UPC), whichever is used by a manufacturer to identify a unique
128.28company-specific or brand-specific product.
128.29(t) "Product component" means a uniquely identifiable material or coating including,
128.30but not limited to, an ink or dye that is intended to be included as a part of a finished
128.31children's product.
128.32(n) (u) "Safer alternative" means:
128.33(1) an alternative whose potential to harm human health or the environment is less
128.34than that of the use of a priority chemical that it could replace.;
128.35(2) an alternative chemical that is not a priority chemical identified by the department
128.36under section 116.9403; or
129.1(3) an alternative chemical that is not identified on the basis of credible scientific
129.2evidence by a state, federal, or international agency as being known or suspected with
129.3a high degree of probability to:
129.4(i) harm the normal development of a fetus or child or cause other developmental
129.5toxicity;
129.6(ii) cause cancer, genetic damage, or reproductive harm;
129.7(iii) disrupt the endocrine or hormone system; or
129.8(iv) damage the nervous system, immune system, or organs, or cause other systemic
129.9toxicity.
129.10(v) "Toy" means a product designed or intended by the manufacturer to be used
129.11by a child at play.
129.12(w) "Trade association" means a membership organization of persons engaging
129.13in a similar or related line of commerce, organized to promote and improve business
129.14conditions in that line of commerce and not to engage in a regular business of a kind
129.15ordinarily carried on for profit.

129.16    Sec. 28. Minnesota Statutes 2012, section 116.9402, is amended to read:
129.17116.9402 IDENTIFICATION OF CHEMICALS OF HIGH CONCERN.
129.18(a) By July 1, 2010, the department shall, after consultation with the agency,
129.19generate a list of chemicals of high concern.
129.20(b) The department must periodically review and revise the list of chemicals of
129.21high concern at least every three years. The department may add chemicals to the list if
129.22the chemical meets one or more of the criteria in section 116.9401, paragraph (e). Any
129.23changes to the list of chemicals of high concern must be published on the department's
129.24Web site and in the State Register when a change is made.
129.25(c) The department shall consider chemicals listed as a suspected carcinogen,
129.26reproductive or developmental toxicant, or as being persistent, bioaccumulative, and
129.27toxic, or very persistent and very bioaccumulative by a state, federal, or international
129.28agency. These agencies may include, but are not limited to, the California Environmental
129.29Protection Agency, the Washington Department of Ecology, the United States Department
129.30of Health, the United States Environmental Protection Agency, the United Nation's World
129.31Health Organization, and European Parliament Annex XIV concerning the Registration,
129.32Evaluation, Authorisation, and Restriction of Chemicals.
129.33(d) The department may consider chemicals listed by another state as harmful to
129.34human health or the environment for possible inclusion in the list of chemicals of high
129.35concern.

130.1    Sec. 29. Minnesota Statutes 2012, section 116.9403, is amended to read:
130.2116.9403 IDENTIFICATION OF PRIORITY CHEMICALS.
130.3    Subdivision 1. Designation; publication. (a) The department, after consultation
130.4with the agency, may designate a chemical of high concern as a priority chemical if the
130.5department finds that the chemical:
130.6(1) has been identified as a high-production volume chemical by the United States
130.7Environmental Protection Agency; and
130.8(2) meets any of the following criteria:
130.9(i) the chemical has been found through biomonitoring to be present in human blood,
130.10including umbilical cord blood, breast milk, urine, or other bodily tissues or fluids;
130.11(ii) the chemical has been found through sampling and analysis to be present in
130.12household dust, indoor air, drinking water, or elsewhere in the home environment; or
130.13(iii) the chemical has been found through monitoring to be present in fish, wildlife,
130.14or the natural environment.
130.15(b) By February 1, 2011, the department shall publish a list of priority chemicals in
130.16the State Register and on the department's Internet Web site and shall update the published
130.17list whenever a new priority chemical is designated. Any proposed changes to the list
130.18of priority chemicals must be published on the department's Web site and in the State
130.19Register and will be subject to a minimum 60-day public comment period. In the 60 days
130.20following the date of publication in the State Register, the public may submit comments
130.21to the department on the proposed changes to the priority chemical list. A final list of
130.22changes to the list of priority chemicals must be published on the department's Web site
130.23following the end of the comment period and the department's review and consideration of
130.24all comments received during this period before finalizing changes to the list.
130.25    Subd. 2. Public data. Notwithstanding section 13.37, subdivision 2, the presence
130.26and concentration and total amount of a priority chemical in a specific children's product
130.27reported to the agency under section 116.9409, clauses (1) to (6), are classified as public
130.28data.
130.29    Subd. 3. Not misappropriation of trade secret. Notwithstanding section 325C.01,
130.30subdivision 3, publication of the presence and concentration and total amount of a priority
130.31chemical in a specific children's product under this section is not misappropriation of
130.32a trade secret.

130.33    Sec. 30. Minnesota Statutes 2012, section 116.9405, is amended to read:
130.34116.9405 APPLICABILITY EXEMPTIONS.
131.1The requirements of sections 116.9401 116.9408 to 116.9407 116.9425 do not
131.2apply to:
131.3(1) chemicals in used previously owned children's products;
131.4(2) priority chemicals used in the manufacturing process, but that are not present
131.5in the final product;
131.6(3) priority chemicals used in agricultural production;
131.7(4) motor vehicles as defined in chapter 168 or watercraft as defined in chapter
131.886B or their component parts, except that the use of priority chemicals in detachable
131.9car seats is not exempt;
131.10(5) priority chemicals generated solely as combustion by-products or that are present
131.11in combustible fuels; in combustible petroleum fuels or in biofuel, as defined in section
131.12239.051, subdivision 5a;
131.13(6) retailers, except if a retailer is also the producer, manufacturer, importer, or
131.14domestic distributor of a children's product containing a priority chemical or the retailer's
131.15brand name is affixed to a children's product containing a priority chemical;
131.16(7) over-the-counter drugs, pharmaceutical products, dietary supplements, or
131.17biologics;
131.18(8) a medical device as defined in the federal Food, Drug, and Cosmetic Act, United
131.19States Code, title 21, section 321(h);
131.20(9) food and food or beverage packaging, except a container containing baby food
131.21or infant formula;
131.22(10) consumer electronics products and electronic components, including but not
131.23limited to personal computers; audio and video equipment; calculators; digital displays;
131.24wireless phones; cameras; game consoles; printers; and handheld electronic and electrical
131.25devices used to access interactive software or their associated peripherals; or products that
131.26comply with the provisions of directive 2002/95/EC of the European Union, adopted by
131.27the European Parliament and Council of the European Union now or hereafter in effect; or
131.28(10) interactive software, such as computer games, and their storage media, such as
131.29compact discs;
131.30    (11) outdoor sport equipment, including snowmobiles as defined in section 84.81,
131.31subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal
131.32watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section
131.3386B.005, subdivision 18 ; and off-highway motorcycles, as defined in section 84.787,
131.34subdivision 7, and all attachments and repair parts for all of this equipment.;
131.35(12) batteries; or
132.1    (13) a children's product, manufactured or distributed by an individual manufacturer
132.2or distributor, if fewer than 3,000 units of the children's product are manufactured or
132.3distributed annually in the United States by that manufacturer.

132.4    Sec. 31. Minnesota Statutes 2012, section 116.9406, is amended to read:
132.5116.9406 DONATIONS TO THE STATE.
132.6The commissioner may accept donations, grants, and other funds to carry out the
132.7purposes of sections 116.9401 to 116.9407 116.9425. All donations, grants, and other
132.8funds must be accepted without preconditions regarding the outcomes of the regulatory
132.9oversight processes set forth in sections 116.9401 to 116.9407 116.9425.

132.10    Sec. 32. [116.9408] CHILDREN'S PRODUCTS; INITIAL NOTIFICATION
132.11ON PRIORITY CHEMICALS.
132.12(a) A manufacturer or distributor of a children's product offered for sale in this state
132.13that contains a priority chemical must, unless the children's product is not subject to
132.14regulation under section 116.9405, provide the information required under this section
132.15to the agency:
132.16(1) within one year of the effective date of this act, if both the designation of the
132.17priority chemical under section 116.9403 and the offering for sale in this state of the
132.18children's product containing the priority chemical occurred prior to the effective date
132.19of this act;
132.20(2) within one year of the priority chemical being designated under section 116.9403,
132.21if the children's product is initially offered for sale in this state before the designation and
132.22the designation is made after the effective date of this act; or
132.23(3) within one year of the initial offering of the children's product for sale in this
132.24state, if the initial offering occurs after the priority chemical is designated under section
132.25116.9403 and the designation is made after the effective date of this act.
132.26(b) An initial notification is required for each children's product that is known
132.27or believed likely to include a priority chemical in any amount and must include the
132.28following information submitted to the agency on a form developed by the commissioner:
132.29(1) the name of the priority chemical and its Chemical Abstracts Service Registry
132.30number;
132.31(2) in which of the following tiers the children's product containing a priority
132.32chemical belongs:
133.1    (i) Tier 1: a mouthable children's product intended to be used by children three years
133.2of age or younger or a children's product intended to be placed in a child's mouth or
133.3directly applied to a child's skin;
133.4    (ii) Tier 2: a children's product intended to be in direct contact with a child's skin for
133.5one hour or longer, including but not limited to clothing, jewelry, bedding, or a car seat;
133.6(iii) Tier 3: a children's product intended to be in direct contact with a child's skin
133.7for less than one hour; or
133.8(iv) Tier 4: a children's product in which a priority chemical is contained only in an
133.9internal component that, under normal use, is unlikely to come into direct contact with
133.10a child's skin or mouth;
133.11(3) a description of the product component in which the priority chemical is present;
133.12and
133.13(4) the name and address of the reporting manufacturer or distributor and the name,
133.14address, and telephone number of the contact person for the reporting manufacturer or
133.15distributor.

133.16    Sec. 33. [116.9409] CHILDREN'S PRODUCTS; FULL PRODUCT REPORTING
133.17INFORMATION ON PRIORITY CHEMICALS; TIMING.
133.18A manufacturer or distributor of a children's product offered for sale in this state
133.19that contains a priority chemical must, unless the children's product is not subject to
133.20regulation under section 116.9405, provide the full product information required under
133.21section 116.9410 to the agency. The maximum length of time between the filing of the
133.22information required under section 116.9408, paragraph (a), and the filing of full product
133.23information required under section 116.9410 varies according to the manufacturer's or
133.24distributor's annual aggregate gross sales, both within and outside the state, as reported in
133.25the manufacturer's or distributor's most recently filed federal tax return, as follows:
133.26(1) for a manufacturer or distributor with gross sales exceeding $1,000,000,000, one
133.27year or, for a priority chemical designated under section 116.9403 before January 1, 2014,
133.28by two years after the effective date of this section;
133.29(2) for a manufacturer or distributor with gross sales exceeding $250,000,000 but
133.30less than or equal to $1,000,000,000, 1-1/2 years or, for a priority chemical designated
133.31under section 116.9403 before January 1, 2014, by 2-1/2 years after the effective date
133.32of this section;
133.33(3) for a manufacturer or distributor with gross sales exceeding $100,000,000 but less
133.34than or equal to $250,000,000, two years or, for a priority chemical designated under section
133.35116.9403 before January 1, 2014, by three years after the effective date of this section;
134.1(4) for a manufacturer or distributor with gross sales exceeding $5,000,000 but
134.2less than or equal to $100,000,000, three years or, for a priority chemical designated
134.3under section 116.9403 before January 1, 2014, by four years after the effective date
134.4of this section;
134.5(5) for a manufacturer or distributor with gross sales exceeding $100,000 but less
134.6than or equal to $5,000,000, four years or, for a priority chemical designated under section
134.7116.9403 before January 1, 2014, by five years after the effective date of this section; and
134.8(6) for a manufacturer or distributor with gross sales less than or equal to $100,000,
134.9five years or, for a priority chemical designated under section 116.9403 before January 1,
134.102014, by six years after the effective date of this section.

134.11    Sec. 34. [116.9410] CHILDREN'S PRODUCTS; FULL PRODUCT REPORTING
134.12INFORMATION ON PRIORITY CHEMICALS.
134.13(a) A manufacturer or distributor of a children's product offered for sale in the state
134.14that contains one or more priority chemicals must, except as provided in paragraph (e) or
134.15if the children's product is not subject to regulation under section 116.9405, provide the
134.16following full product information to the agency on a form developed by the commissioner:
134.17(1) the name of each priority chemical and its Chemical Abstracts Service Registry
134.18number;
134.19(2) in which of the following tiers the children's product containing a priority
134.20chemical belongs:
134.21(i) Tier 1: a mouthable children's product intended to be used by children three years
134.22of age or younger or a children's product intended to be placed in a child's mouth or
134.23directly applied to a child's skin;
134.24(ii) Tier 2: a children's product intended to be in direct contact with a child's skin for
134.25one hour or longer, including but not limited to clothing, jewelry, bedding, or a car seat;
134.26(iii) Tier 3: a children's product intended to be in direct contact with a child's skin
134.27for less than one hour; or
134.28(iv) Tier 4: a children's product in which a priority chemical is contained only in an
134.29internal component that, under normal use, is unlikely to come into direct contact with
134.30a child's skin or mouth;
134.31(3) the product components, materials, or coatings that contain one or more priority
134.32chemicals;
134.33(4) the concentration and total amount of each priority chemical contained in a
134.34children's product, a description of how the concentration was determined, and an
135.1evaluation of the accuracy of the determination. Concentrations at or above the practical
135.2quantification limit must be reported, but may be reported in the following ranges:
135.3(i) greater than or equal to the practical quantification limit but less than 100 ppm;
135.4(ii) greater than or equal to 100 ppm but less than 500 ppm;
135.5(iii) greater than or equal to 500 ppm but less than 1,000 ppm;
135.6(iv) greater than or equal to 1,000 ppm but less than 5,000 ppm;
135.7(v) greater than or equal to 5,000 ppm but less than 10,000 ppm; and
135.8(vi) greater than or equal to 10,000 ppm.
135.9For the purposes of this section, "ppm" means parts per million;
135.10    (5) the product category or categories for the children's product;
135.11(6) a description of the function of the priority chemical in the product, including
135.12whether it is present as a contaminant;
135.13    (7) the name and address of the manufacturer, distributor, or trade association filing
135.14the report and the name, address, and telephone number of the contact person for the
135.15reporting manufacturer, distributor, or trade association;
135.16(8) evidence describing the extent to which a child is likely to be exposed to the
135.17priority chemical through normal use of the children's product;
135.18(9) the number of units of the children's product sold or distributed in Minnesota
135.19or nationally;
135.20(10) any other information the manufacturer or distributor deems relevant; and
135.21(11) any other information requested by the commissioner.
135.22(b) Reporting shall include all intentionally added chemicals at or above the
135.23applicable practical quantification limit, and contaminants present in a product component
135.24at a concentration above 100 ppm.
135.25(c) Reporting parties are not required to include any specific formula information
135.26or the specific name and address of the facility that is responsible for introduction of a
135.27priority chemical into a children's product or product component.
135.28(d) If the information required in paragraph (a) is not submitted in a timely fashion
135.29or is incomplete or otherwise unacceptable as determined by the agency, the agency may
135.30contract with an independent third party of the agency's choice to provide the information
135.31and may assess a fee on the manufacturer or distributor to pay the costs as specified
135.32under section 116.9419.
135.33(e) The agency shall determine on a case-by-case basis if reporting the information
135.34in paragraph (a), clauses (3) to (9), is required by a manufacturer or distributor whose
135.35children's product belongs in Tier 4 under paragraph (a), clause (2).
136.1(f) If a manufacturer claims that any of the information provided to the agency under
136.2this section is trade secret information under section 13.37, subdivision 1, the agency shall
136.3make a determination regarding the claim. Information determined to be public data shall
136.4be posted on the agency's Web site. This paragraph does not apply to the presence and
136.5concentration and total amount of a priority chemical in a specific children's product,
136.6which is governed under section 116.9403, subdivisions 2 and 3.
136.7(g) A trade association may file the information required under this section on behalf
136.8of a manufacturer or distributor, provided that the trade association includes in the filing a
136.9list of the manufacturers or distributors on whose behalf the trade association is reporting
136.10and all the information otherwise required of an individual manufacturer or distributor.

136.11    Sec. 35. [116.9411] CHILDREN'S PRODUCTS; FULL PRODUCT REPORTING
136.12INFORMATION ON PRIORITY CHEMICALS; SECOND AND SUBSEQUENT
136.13REPORTS.
136.14(a) Following the initial submission of the information required under section
136.15116.9410, a manufacturer or distributor of a children's product offered for sale in the state
136.16that continues to contain a priority chemical must submit the information required under
136.17section 116.9410 to the agency every two years.
136.18(b) If a reporting party determines that there has been no change in the information
136.19required to be filed under section 116.9410 since the most recent filing, the reporting party
136.20may submit a written statement indicating that the previously filed data is still valid, in
136.21lieu of a new duplicate complete report, and must submit the required fees.
136.22(c) If a manufacturer or distributor is required to file more than one report under
136.23section 116.9410 on the same priority chemical in the same children's product code, each
136.24subsequent report must include the following information in addition to the information
136.25required under section 116.9410:
136.26(1) the product code of the children's product; and
136.27(2) a description of the manufacturer's attempts to remove the priority chemical
136.28from the children's product and any evaluation made of the use of safer alternatives to
136.29substitute for the priority chemical contained in the children's product, including the
136.30Chemical Abstracts Service Registry numbers of safer alternatives considered. If the
136.31manufacturer claims that any information provided to the agency under this clause is
136.32trade secret information under section 13.37, subdivision 1, the agency shall make a
136.33determination regarding the claim.

137.1    Sec. 36. [116.9412] CHILDREN'S PRODUCTS; REMOVING A PRIORITY
137.2CHEMICAL; REPORTING REQUIREMENT.
137.3A manufacturer or distributor who removes a priority chemical from a children's
137.4product for which an initial notification has been filed under section 116.9408 or for which
137.5full product information has been filed under section 116.9410 must notify the agency
137.6of the removal at the earliest date possible. If the priority chemical removed is replaced
137.7by a safer alternative, the manufacturer or distributor must provide, on a form developed
137.8by the commissioner, the information in section 116.9410, paragraph (a), clauses (1) to
137.9(7), and the name of the safer alternative and its Chemical Abstracts Service Registry
137.10number, or, if not replaced by a chemical alternative, a description of the techniques or
137.11design changes implemented. The safer alternative or nonchemical techniques or design
137.12changes are trade secrets.

137.13    Sec. 37. [116.9419] FEES.
137.14(a) The agency shall, if applicable, assess and collect the following fees from
137.15manufacturers and distributors of children's products offered for sale in this state:
137.16(1) a fee of $1,000 for each full product report required under section 116.9410. If
137.17a children's product contains more than one priority chemical, each priority chemical is
137.18subject to this fee;
137.19(2) a fee equal to the costs billed by the independent contractor plus the agency's
137.20actual incurred costs to bid and administer the contract for each contract issued under
137.21section 116.9410, paragraph (d); and
137.22(3) a fee equal to twice the fee in clause (1) for the second full product report
137.23required under section 116.9410 on the same priority chemical in the same children's
137.24product. The fee for each subsequent full product report required under that section is
137.25correspondingly increased by an amount equal to the fee in clause (1).
137.26(b) No fee is required for filing an initial notification under section 116.9408.
137.27(c) The commissioner shall deposit all fees collected under this section in the
137.28environmental fund. All fees collected under this section are exempt from section
137.2916A.1285.

137.30    Sec. 38. [116.9420] STATE AGENCY DUTIES.
137.31(a) The agency shall publish all data that is required to be filed under sections
137.32116.9410 and 116.9411 and that is not trade secret data on the agency's Web site and
137.33through other means determined by the commissioner.
138.1(b) If a priority chemical continues to be used in a specific children's product after
138.2its manufacturer files a report required under section 116.9411, the commissioner may
138.3recommend options to further reduce or eliminate the use of the priority chemical in the
138.4report required under section 116.9425.
138.5(c) The commissioner, in consultation with the commissioners of commerce and
138.6health, may use fee revenue in excess of program implementation costs to offer grants
138.7awarded competitively to manufacturers or other researchers to develop safer alternatives
138.8to priority chemicals in children's products, to establish alternatives as safer alternatives,
138.9or to accelerate the commercialization of safer alternatives.
138.10(d) The commissioners of health and commerce shall develop and implement
138.11an education effort regarding priority chemicals in children's products. Education and
138.12outreach activities include, but are not limited to, consumer product safety advice;
138.13notification of recalls; identification of target audiences for product alerts and methods
138.14of notification; outreach and feedback at county and state fairs; publicity of reporting
138.15requirements of priority chemicals in children's products; and education of retailers about
138.16reporting requirements.

138.17    Sec. 39. [116.9423] ENFORCEMENT.
138.18The agency shall enforce sections 116.9401 to 116.9424 and rules adopted
138.19thereunder in the manner provided by section 115.071, subdivisions 1, 3, 4, 5, and 6.
138.20Section 115.071, subdivision 2, does not apply to violations of sections 116.9401 to
138.21116.9424 and rules adopted thereunder.

138.22    Sec. 40. [116.9424] RULES.
138.23The commissioner or the commissioner of commerce may adopt rules as necessary
138.24to implement, administer, and enforce sections 116.9401 to 116.9425.

138.25    Sec. 41. [116.9425] REPORT.
138.26By November 15, 2015, and every three years thereafter, the commissioners of the
138.27Pollution Control Agency, health, and commerce shall report to the legislative committees
138.28with jurisdiction over environment and natural resources, commerce, and public health
138.29on the implementation of sections 116.9401 to 116.9424.

138.30    Sec. 42. [168.1295] STATE PARKS AND TRAILS PLATES.
138.31    Subdivision 1. General requirements and procedures. (a) The commissioner shall
138.32issue state parks and trails plates to an applicant who:
139.1(1) is a registered owner of a passenger automobile, recreational vehicle, one ton
139.2pickup truck, or motorcycle;
139.3(2) pays a fee of $10 to cover the costs of handling and manufacturing the plates;
139.4(3) pays the registration tax required under section 168.013;
139.5(4) pays the fees required under this chapter;
139.6(5) contributes a minimum of $50 annually to the state parks and trails donation
139.7account established in section 85.056; and
139.8(6) complies with this chapter and rules governing registration of motor vehicles
139.9and licensing of drivers.
139.10(b) The state parks and trails plate application must indicate that the contribution
139.11specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
139.12and that the applicant may make an additional contribution to the account.
139.13(c) State parks and trails plates may be personalized according to section 168.12,
139.14subdivision 2a.
139.15    Subd. 2. Design. After consultation with interested groups, the commissioners of
139.16natural resources and public safety shall jointly select a suitable symbol for use by the
139.17commissioner of public safety to design the state parks and trails plates.
139.18    Subd. 3. No refund. Contributions under this section must not be refunded.
139.19    Subd. 4. Plate transfers. Notwithstanding section 168.12, subdivision 1, on
139.20payment of a transfer fee of $5, plates issued under this section may be transferred to
139.21another passenger automobile registered to the person to whom the plates were issued.
139.22    Subd. 5. Contribution and fees credited. Contributions under subdivision 1,
139.23paragraph (a), clause (5), must be paid to the commissioner and credited to the state
139.24parks and trails donation account established in section 85.056. The other fees collected
139.25under this section must be deposited in the vehicle services operating account of the
139.26special revenue fund under section 299A.705.
139.27    Subd. 6. Record. The commissioner shall maintain a record of the number of
139.28plates issued under this section.
139.29    Subd. 7. Exemption. Special plates issued under this section are not subject to
139.30section 168.1293, subdivision 2.
139.31EFFECTIVE DATE.This section is effective the day following final enactment and
139.32applies to applications submitted on or after January 1, 2016, or the date the new driver and
139.33vehicle services information technology system is implemented, whichever comes later.

139.34    Sec. 43. [347.57] DEFINITIONS.
140.1    Subdivision 1. Terms. The definitions in this section apply to sections 347.57
140.2to 347.64.
140.3    Subd. 2. Animal. "Animal" means a dog or a cat.
140.4    Subd. 3. Board. "Board" means the Board of Animal Health.
140.5    Subd. 4. Cat. "Cat" means a mammal that is wholly or in part of the species Felis
140.6domesticus. An adult cat is a cat 28 weeks of age or older. A kitten is a cat under 28
140.7weeks of age.
140.8    Subd. 5. Commercial breeder. "Commercial breeder" means a person who
140.9possesses or has an ownership interest in animals and is engaged in the business of
140.10breeding animals for sale or for exchange in return for consideration, and who possesses
140.11ten or more adult intact animals and whose animals produce more than five total litters of
140.12puppies or kittens per year.
140.13    Subd. 6. Confinement area. "Confinement area" means a structure used or
140.14designed for use to restrict an animal to a limited amount of space, such as a room, pen,
140.15cage, kennel, compartment, crate, or hutch.
140.16    Subd. 7. Dog. "Dog" means a mammal that is wholly or in part of the species Canis
140.17familiaris. An adult dog is a dog 28 weeks of age or older. A puppy is a dog under 28
140.18weeks of age.
140.19    Subd. 8. Facility. "Facility" means the place used by a commercial breeder for
140.20breeding animals, and includes all buildings, property, confinement areas, and vehicles.
140.21    Subd. 9. Local animal control authority. "Local animal control authority" means
140.22an agency of the state, county, municipality, or other political subdivision of the state that
140.23is responsible for animal control operations in its jurisdiction.
140.24    Subd. 10. Person. "Person" means a natural person, firm, partnership, corporation,
140.25or association, however organized.
140.26    Subd. 11. Possess. "Possess" means to have custody of or have control over.
140.27    Subd. 12. Veterinarian. "Veterinarian" means a veterinarian in good standing and
140.28licensed in the state of Minnesota.

140.29    Sec. 44. [347.58] LICENSING AND INSPECTIONS.
140.30    Subdivision 1. Licensing. (a) The board may grant an operating license to a
140.31commercial breeder and must enforce sections 347.58 to 347.64.
140.32    (b) Beginning July 1, 2015, a commercial breeder must obtain an annual license
140.33for each facility it owns or operates. More than one building on the same premises is
140.34considered one facility. The initial prelicense inspection fee and the annual license fee is
140.35$10 per adult intact animal, but each fee must not exceed $250.
141.1    (c) The board must perform an announced initial prelicense inspection within 60
141.2days from the date of receiving a license application. A commercial breeder is not in
141.3violation of this section if the commercial breeder has filed a completed license application
141.4with the board and the board has not performed the initial prelicense inspection. The
141.5board must inspect a commercial breeder's facility before an initial license is issued. The
141.6initial prelicense inspection fee must be included with the license application. Upon
141.7completion of the inspection, the inspector must provide the commercial breeder an
141.8inspection certificate signed by the inspector in a format approved by the board.
141.9    (d) The license application must indicate if a commercial breeder operates under
141.10more than one name from a single location or has an ownership interest in any other
141.11facility. License holders must keep separate records for each business name.
141.12    (e) The application must include a statement that includes the following information:
141.13    (1) whether any license held by an applicant under this section or under any other
141.14federal, state, county, or local law, ordinance, or other regulation relating to breeding cats
141.15or dogs was ever suspended, revoked, or denied; and
141.16    (2) whether the applicant was ever convicted of animal cruelty.
141.17    (f) An application from a partnership, corporation, or limited liability company must
141.18include the name and address of all partners, directors, officers, or members and must
141.19include a notation of any partners, directors, officers, members, or others authorized to
141.20represent the partnership, corporation, or limited liability company.
141.21    (g) A nonresident applicant must consent to adjudication of any violation under the
141.22laws of the state of Minnesota and in Minnesota courts.
141.23    (h) A license issued under this section is not transferable.
141.24    (i) A license holder must apply for license renewal annually by submitting a renewal
141.25application on a form approved by the board. The license renewal application must be
141.26postmarked or submitted electronically in a method approved by the board by July 1
141.27of each year. The board may assess a late renewal penalty of up to 50 percent of the
141.28license fee. If a license is not renewed by August 1, the board may require the commercial
141.29breeder to reapply for an initial license.
141.30    (j) A commercial breeder must submit to the board an annual report by July 1 on a
141.31form prepared by the board. The form must include the current number of cats and dogs at
141.32the facility on the date of the report, the number of animals during the preceding year that
141.33were sold, traded, bartered, leased, brokered, given away, euthanized, or deceased from
141.34other causes, and any other information required by the board.
141.35    (k) If a commercial breeder is required to be licensed by the United States
141.36Department of Agriculture, United States Department of Agriculture inspection reports
142.1and records relating to animal care plans and veterinary care must be made available
142.2during an inspection, upon request.
142.3    (l) A commercial breeder must prominently display the commercial breeder's license
142.4at each facility.
142.5(m) A commercial breeder's state license number or a symbol approved by the board
142.6must be included in all of the commercial breeder's advertisements or promotions that
142.7pertain to animals being sold or traded including, but not limited to, all newspapers,
142.8Internet, radio, or flyers.
142.9    (n) A commercial breeder must notify the board by certified mail or electronically
142.10in a method approved by the board within ten days of any change in address, name,
142.11management, or substantial control and ownership of the business or operation.
142.12    (o) The board must refuse to issue an initial license when a commercial breeder:
142.13(1) is in violation of section 343.21; 343.24; 343.27; 343.28; 343.31; 343.37; 346.37;
142.14346.38; 346.39; 346.44; or 346.155;
142.15(2) has failed to meet any of the requirements of this section and section 347.59;
142.16(3) is in violation of a local ordinance regarding breeders;
142.17    (4) has been convicted, other than a petty misdemeanor conviction, of cruelty to
142.18animals under Minnesota law or a substantially similar animal cruelty law of another
142.19jurisdiction;
142.20    (5) has had a substantially similar license denied, revoked, or suspended by another
142.21federal or state authority within the last five years; or
142.22    (6) has falsified any material information requested by the board.
142.23    (p) A person who has been an officer, agent, direct family member, or employee of a
142.24commercial breeder whose license was revoked or suspended and who was responsible for
142.25or participated in the violation that was a basis for the revocation or suspension may not
142.26be licensed while the revocation or suspension is in effect.
142.27    Subd. 2. Inspections. (a) The board must inspect each licensed facility at least
142.28annually. The inspection must be with the commercial breeder or an agent of the
142.29commercial breeder present. The inspector must submit an inspection report to the board
142.30within ten days of each inspection on a form prepared by the board. The inspection report
142.31form must list separately each law, rule, regulation, and ordinance the facility is not in
142.32compliance with and what correction is required for compliance. The inspection report
142.33form must document the animal inventory on the date of the inspection.
142.34(b) If, after the prelicense inspection, the commercial breeder has two consecutive
142.35years of inspections with no violations, the board must inspect the commercial breeder at
143.1least every two years. If the commercial breeder has any violations during an inspection or
143.2if the board has cause, the board must inspect the commercial breeder at least annually.
143.3(c) If a license to operate is suspended, revoked, or denied, the board must be granted
143.4access to the facility during normal business hours to verify that it is not operating.
143.5    Subd. 3. Record requirements. (a) The commercial breeder must keep records on
143.6each animal at the facility that includes:
143.7(1) the name, address, and United States Department of Agriculture license number,
143.8if applicable, from whom an animal was received; the date the commercial breeder
143.9received the animal; the date of the animal's birth; the breed, sex, color, and identifying
143.10marks of the animal; any identifying tag, tattoo, microchip, or collar number; worming
143.11treatments, vaccinations, and name of the person who administered the vaccination;
143.12medication received by the animal while in the possession of the commercial breeder; and
143.13any disease conditions diagnosed by a veterinarian; and
143.14(2) the name and address of the person or entity to whom an animal was transferred.
143.15(b) The commercial breeder must maintain a copy of the records required to be
143.16kept under this subdivision for two years.
143.17    Subd. 4. Veterinary protocol. (a) A commercial breeder must establish and
143.18maintain a written protocol for disease control and prevention, euthanasia, and veterinary
143.19care of animals at each facility. The initial protocol must be developed under the direction
143.20and supervision of the board. A commercial breeder must maintain a written protocol that
143.21is updated at least every 12 months and that is signed and dated by the board or by a
143.22veterinarian along with the commercial breeder. The written protocol must be available to
143.23the board upon request or at the time of inspection.
143.24(b) An animal sold or otherwise distributed by a commercial breeder must be
143.25accompanied by a veterinary health certificate completed by a veterinarian. The certificate
143.26must be completed within 30 days prior to the sale or distribution and must indicate that
143.27the animal is current with vaccinations and has no signs of infectious or contagious
143.28diseases. The certificate accompanying an adult dog that was not spayed or neutered must
143.29indicate that the dog has no signs of infectious or contagious diseases and was tested for
143.30canine brucellosis with a test approved by the board and found to be negative.
143.31    Subd. 5. Posting of information. The board must maintain and post in a timely
143.32manner on its Web site a list of commercial breeders licensed and in good standing
143.33under this section.

143.34    Sec. 45. [347.59] STANDARDS OF CARE.
143.35    (a) A commercial breeder must comply with chapters 343 and 346.
144.1    (b) A commercial breeder must ensure that animals that are part of the commercial
144.2breeder's breeding business operations are cared for as follows:
144.3    (1) cats must not be housed in outdoor confinement areas;
144.4    (2) animals exercised in groups must be compatible and show no signs of contagious
144.5or infectious disease;
144.6    (3) females in estrus must not be housed in the same confinement area with
144.7unneutered males, except for breeding purposes;
144.8    (4) animals must be provided daily enrichment and must be provided positive physical
144.9contact with human beings and compatible animals at least twice daily unless a veterinarian
144.10determines such activities would adversely affect the health or well-being of the animal;
144.11    (5) animals must not be sold, traded, or given away before the age of eight weeks
144.12unless a veterinarian determines it would be in the best interests of the health or well-being
144.13of the animal;
144.14    (6) the commercial breeder must provide identification and tracking for each animal,
144.15which is not transferable to another animal; and
144.16    (7) the commercial breeder must provide adequate staff to maintain the facility and
144.17observe each animal daily to monitor each animal's health and well-being, and to properly
144.18care for the animals.
144.19    (c) A commercial breeder must not knowingly hire staff or independent contractors
144.20who have been convicted of cruelty to animals under the law of any jurisdiction.
144.21(d) A commercial breeder must comply with any additional standards the board
144.22considers necessary to protect the public health and welfare of animals covered under
144.23sections 347.57 to 347.61. The standards must be established by rule.
144.24(e) A United States Department of Agriculture (USDA) licensed breeder or dealer
144.25who is in compliance with the minimum USDA regulations governing the license holder
144.26as they relate to animal confinement areas as of the effective date of this section does not
144.27have to comply with the minimum confinement area measurements under section 346.39,
144.28subdivision 4, for existing confinement areas in each facility the breeder or dealer owns. If
144.29a USDA-licensed breeder or dealer builds a new confinement area after the effective date
144.30of this section, those minimum standards must meet or exceed the minimum specifications
144.31as they relate to confinement area size under section 346.39, subdivision 4.

144.32    Sec. 46. [347.60] INVESTIGATIONS.
144.33(a) The board must initiate an investigation upon receiving a formal complaint
144.34alleging violations of section 347.58 or 347.59.
145.1(b) When a local animal control authority, a peace officer, or a humane agent
145.2appointed under section 343.01 is made aware of an alleged violation under this chapter
145.3or chapter 343 or 346, committed by a commercial breeder, the local animal control
145.4authority, peace officer, or humane agent appointed under section 343.01 must report the
145.5alleged violation in a timely manner to the board.

145.6    Sec. 47. [347.61] CIVIL ENFORCEMENT.
145.7    Subdivision 1. Correction orders. (a) The board may issue a correction order
145.8requiring a commercial breeder to correct a violation of state statutes, rules, and
145.9regulations governing breeding facilities. The correction order must state the deficiencies
145.10that constitute the violation; the specific statute, rule, or regulation violated; and when
145.11the violation must be corrected.
145.12    (b) A commercial breeder may ask the board to reconsider any portion of the
145.13correction order that the commercial breeder believes is in error. The request for
145.14reconsideration must be made in writing by certified mail or electronically in a method
145.15approved by the board within seven days after receipt of the correction order. The
145.16request for reconsideration does not stay the correction order. The board must respond
145.17to the request for reconsideration within 15 days after receiving a request. The board's
145.18disposition of a request for reconsideration is final. The board may extend the time for
145.19complying with a correction order after receiving a request for reconsideration if necessary.
145.20    (c) The board must reinspect the facility within 15 days after the time for correcting
145.21the violation has passed to determine whether the violation has been corrected. If the
145.22violation has been corrected, the board must notify the commercial breeder in writing that
145.23the commercial breeder is in compliance with the correction order. The board may charge
145.24a reinspection fee to determine if a previous violation has been corrected.
145.25    Subd. 2. Administrative penalty orders. After the inspection required under
145.26subdivision 1, paragraph (c), the board may issue an order requiring violations to
145.27be corrected and administratively assessing monetary penalties for violations. The
145.28administrative penalty order must include a citation of the statute, rule, or regulation
145.29violated; a description of the violation; and the amount of the penalty for each violation. A
145.30single correction order may assess a maximum administrative penalty of $5,000.
145.31    Subd. 3. Injunctive relief. In addition to any other remedy provided by law, the
145.32board may bring an action for injunctive relief in the district court in Ramsey County or in
145.33the county in which a violation of the statutes, rules, or regulations governing the breeding
145.34of cats and dogs occurred to enjoin the violation.
146.1    Subd. 4. Cease and desist. The board must issue an order to cease a practice if its
146.2continuation would result in an immediate risk to animal welfare or public health. An
146.3order issued under this subdivision is effective for a maximum of 72 hours. The board or
146.4its designated agent must seek an injunction or take other administrative action authorized
146.5by law to restrain a practice beyond 72 hours. The issuance of a cease-and-desist order
146.6does not preclude other enforcement action by the board.
146.7    Subd. 5. Refusal to reissue license; license suspension or revocation. (a) The
146.8board may suspend, revoke, or refuse to renew a license as follows:
146.9    (1) for failure to comply with a correction order;
146.10    (2) for failure to pay an administrative penalty;
146.11    (3) for failure to meet the requirements of section 347.58 or 347.59; or
146.12    (4) for falsifying information requested by the board.
146.13A license suspension, revocation, or nonrenewal may be appealed through the Office of
146.14Administrative Hearings. A notice of intent to appeal must be filed in writing with the
146.15board within 20 days after receipt of the notice of suspension, revocation, or nonrenewal.
146.16    (b) The board must revoke a license if a commercial breeder has been convicted
146.17of cruelty to animals under Minnesota law or a substantially similar animal cruelty law
146.18of another jurisdiction, or for the denial, revocation, or suspension of a similar license
146.19by another federal or state authority. A license revocation under this subdivision may be
146.20appealed through the Office of Administrative Hearings. A notice of intent to appeal must
146.21be filed in writing with the board within 20 days after receipt of the notice of revocation.
146.22    (c) A commercial breeder whose license is revoked may not reapply for licensure for
146.23two years after the date of revocation. The license is permanently revoked if the basis for
146.24the revocation was a gross misdemeanor or felony conviction for animal cruelty.
146.25    (d) A commercial breeder whose license is suspended or revoked two times is
146.26permanently barred from licensure.
146.27    Subd. 6. Administrative hearing rights. (a) Except as provided in paragraph
146.28(b), if the board proposes to refuse to renew, suspend, or revoke a license, the board
146.29must first notify the commercial breeder in writing of the proposed action and provide an
146.30opportunity to request a hearing under the contested case provisions of chapter 14. If the
146.31commercial breeder does not request a hearing within 20 days after receipt of the notice of
146.32the proposed action, the board may proceed with the action without a hearing.
146.33    (b) The contested case provisions of chapter 14 do not apply when the board denies
146.34a license based on an applicant's failure to meet the minimum qualifications for licensure.
146.35    (c) A commercial breeder may appeal the amount of an administrative penalty
146.36order through the Office of Administrative Hearings pursuant to the procedures set forth
147.1in chapter 14. A commercial breeder wishing to file an appeal must notify the board in
147.2writing within 20 days after receipt of the administrative penalty order.
147.3    Subd. 7. Other jurisdictions. The board may accept as prima facie evidence of
147.4grounds for an enforcement action under this section any enforcement or disciplinary
147.5action from another jurisdiction, if the underlying violation would be grounds for a
147.6violation under the provisions of this section.
147.7    Subd. 8. Appeals. A final order by the board may be appealed to the Minnesota
147.8Court of Appeals.

147.9    Sec. 48. [347.615] BIOSECURITY; ENTRY INTO FACILITIES.
147.10No law enforcement officer, agent of the board, or other official may enter a
147.11commercial breeder facility unless the person follows either the biosecurity procedure
147.12issued by the board or a reasonable biosecurity procedure maintained and prominently
147.13posted by the commercial breeder at each entry to a facility, whichever is more stringent.
147.14This section does not apply in emergency or exigent circumstances.

147.15    Sec. 49. [347.62] PENALTIES.
147.16    (a) A violation of section 347.58 or 347.59 that results in cruelty or torture to an
147.17animal, as those terms are defined in section 343.20, subdivision 3, is subject to the
147.18penalties in section 343.21, subdivisions 9 and 10, relating to pet or companion animals.
147.19    (b) It is a misdemeanor to falsify information in a license application, annual report,
147.20or record.
147.21    (c) It is a misdemeanor for an unlicensed commercial breeder to advertise animals
147.22for sale.
147.23(d) It is a misdemeanor for a commercial breeder to operate without a license.

147.24    Sec. 50. [347.63] DOG AND CAT BREEDERS LICENSING ACCOUNT;
147.25APPROPRIATION.
147.26A dog and cat breeders licensing account is created in the special revenue fund.
147.27All fees and penalties collected by the board under sections 347.58 to 347.62 must be
147.28deposited in the state treasury and credited to the dog and cat breeders licensing account
147.29in the special revenue fund. Money in the account, including interest on the account, is
147.30annually appropriated to the board to administer those sections.

147.31    Sec. 51. [347.64] APPLICABILITY.
147.32Sections 347.57 to 347.63 do not apply to:
148.1(1) any species other than dogs and cats as they are defined in section 347.57; and
148.2(2) veterinary clinics or veterinary hospitals.

148.3    Sec. 52. Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended by
148.4Laws 2009, chapter 37, article 1, section 61, is amended to read:

148.5

Subd. 7.Fish and Wildlife Management

123,000

119,000

148.6	Appropriations by Fund
148.7	General	-0-	(427,000)
148.8	Game and Fish	123,000	546,000

148.9$329,000 in 2009 is a reduction for fish and
148.10wildlife management.
148.11$46,000 in 2009 is a reduction in the
148.12appropriation for the Minnesota Shooting
148.13Sports Education Center.
148.14$52,000 in 2009 is a reduction for licensing.
148.15$123,000 in 2008 and $246,000 in 2009 are
148.16from the game and fish fund to implement
148.17fish virus surveillance, prepare infrastructure
148.18to handle possible outbreaks, and implement
148.19control procedures for highest risk waters
148.20and fish production operations. This is a
148.21onetime appropriation.
148.22Notwithstanding Minnesota Statutes, section
148.23297A.94 , paragraph (e), $300,000 in 2009
148.24is from the second year appropriation in
148.25Laws 2007, chapter 57, article 1, section 4,
148.26subdivision 7, from the heritage enhancement
148.27account in the game and fish fund to study,
148.28predesign, and design a shooting sports
148.29facility in the seven-county metropolitan
148.30area for shooting sports facilities. Of this
148.31amount, $100,000 is for a grant to the Itasca
148.32County Gun Club for shooting sports facility
148.33improvements; and the remaining balance
148.34is for trap shooting facility grants under
149.1Minnesota Statutes, section 87A.10. This is
149.2available onetime only and is available until
149.3expended.
149.4$300,000 in 2009 is appropriated from the
149.5game and fish fund for only activities that
149.6improve, enhance, or protect fish and wildlife
149.7resources. This is a onetime appropriation.

149.8    Sec. 53. Laws 2012, chapter 249, section 11, is amended to read:
149.9    Sec. 11. COSTS OF SCHOOL TRUST LANDS DIRECTOR AND
149.10LEGISLATIVE PERMANENT SCHOOL FUND COMMISSION.
149.11(a) The costs of the school trust lands director, including the costs of hiring staff,
149.12and the Legislative Permanent School Fund Commission for fiscal years 2014 and, 2015,
149.13and 2016 shall be from the state forest development suspense account under Minnesota
149.14Statutes, section 16A.125, and from the minerals management account under Minnesota
149.15Statutes, section 93.2236, as appropriated by the legislature.
149.16(b) The school trust lands director and the Legislative Permanent School Fund
149.17Commission shall submit to the 2014 2015 legislature a proposal to fund the operational
149.18costs of the Legislative Permanent School Fund Commission and school trust lands
149.19director and staff with a cost certification method using revenues generated by the
149.20permanent school fund lands.
149.21EFFECTIVE DATE.This section is effective the day following final enactment.

149.22    Sec. 54. RECOGNITION; COMMERCIAL BREEDER EXCELLENCE.
149.23The Board of Animal Health, in consultation with representatives of the licensed
149.24commercial breeder industry, must develop a program to recognize persons who
149.25demonstrate commercial breeder excellence and exceed the standards and practices
149.26required of commercial breeders under this act.

149.27    Sec. 55. REGISTRATION; INITIAL PRELICENSE INSPECTIONS.
149.28    Subdivision 1. Commercial breeder registration. Beginning July 1, 2014, until
149.29June 30, 2015, a commercial breeder must register each facility it owns or operates by
149.30paying a registration fee not to exceed $250 per facility to the Board of Animal Health.
149.31    Subd. 2. Initial prelicense inspections. Beginning July 1, 2014, the board may
149.32begin the initial prelicense inspections under Minnesota Statutes, section 347.58.
150.1    Subd. 3. Deposits of fees. Fees collected under this section must be deposited in the
150.2dog and cat breeders licensing account in the special revenue fund.

150.3    Sec. 56. BEE VALUATION PROTOCOL REQUIRED.
150.4No later than January 1, 2015, the commissioner of agriculture must report to
150.5the house of representatives and senate committees with jurisdiction over agriculture
150.6finance the protocol that the commissioner developed, in consultation with experts, for
150.7determining the fair market value of bees, hives, colonies, apiaries, and queen apiaries for
150.8purposes of compensation under Minnesota Statutes, section 18B.055.

150.9    Sec. 57. INVASIVE TERRESTRIAL PLANTS AND PESTS CENTER.
150.10    Subdivision 1. Establishment. The Board of Regents of the University of Minnesota
150.11is requested to establish an Invasive Terrestrial Plants and Pests Center to prevent and
150.12minimize the threats posed by terrestrial invasive plants, other weeds, pathogens, and
150.13pests in order to protect the state's prairies, forests, wetlands, and agricultural resources.
150.14With the approval of the board, the College of Food, Agricultural and Natural Resource
150.15Science, in coordination with the College of Biological Sciences, shall administer the
150.16center utilizing the following departments:
150.17(1) Entomology;
150.18(2) Plant Pathology;
150.19(3) Forest Resources;
150.20(4) Horticultural Science;
150.21(5) Fisheries Wildlife and Conservation Biology;
150.22(6) Agronomy and Plant Genetics;
150.23(7) Plant Biology; and
150.24(8) Ecology, Evolution, and Behavior.
150.25The college may also utilize the following research and outreach centers in
150.26achieving the purposes of this section: Cloquet Forestry Center; North Central Research
150.27and Outreach Center; Northwest Research and Outreach Center; Southern Research and
150.28Outreach Center; Southwest Research and Outreach Center; West Central Research and
150.29Outreach Center; Rosemount Research and Outreach Center; Horticultural Research
150.30Center; and Sand Plain Research Center.
150.31    Subd. 2. Purpose. The purpose of the Invasive Terrestrial Plants and Pests Center is
150.32to research and develop effective measures to prevent and minimize the threats posed by
151.1terrestrial invasive plants, pathogens, and pests, including agricultural weeds and pests, in
151.2order to protect the state's native prairies, forests, wetlands, and agricultural resources, by:
151.3(1) creating a prioritized list of pest and plant species that threaten the state's prairies,
151.4forests, wetlands, and agricultural resources and making the list publicly accessible; and
151.5(2) conducting research focused on the species included on the prioritized list
151.6developed under this subdivision that includes:
151.7(i) development of new control methods, including biocontrols;
151.8(ii) development of integrated pest management tools that minimize nontarget
151.9impacts;
151.10(iii) research projects focused on establishment prevention, early detection, and
151.11rapid response;
151.12(iv) an analysis of any consequences related to the management of prioritized species
151.13to the state's water, pollinators, and native prairies and other native species; and
151.14(v) reports on the results that are made publicly accessible.
151.15    Subd. 3. Report. By January 15, each year as a condition of the appropriation
151.16provided under this act, the Board of Regents of the University of Minnesota shall submit
151.17a report to the chairs and ranking minority members of the house of representatives and
151.18senate committees and divisions with jurisdiction over the environment and natural
151.19resources and agriculture on: (1) the activities and outcomes of the center; and (2) any
151.20recommendations for additional funding for education, implementation, or other activities.

151.21    Sec. 58. REPEALER.
151.22Minnesota Statutes 2012, section 115A.551, subdivision 2, is repealed.


151.26    Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
151.27    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
151.28or alternative learning program must reserve revenue in an amount equal to the sum of
151.29(1) at least 90 and no more than 100 percent of the district average general education
151.30revenue per adjusted pupil unit minus an amount equal to the product of the formula
151.31allowance according to section 126C.10, subdivision 2, times .0485 .0466, calculated
151.32without basic skills revenue and transportation sparsity revenue, times the number of
151.33pupil units attending an area learning center or alternative learning program under this
152.1section, plus (2) the amount of basic skills revenue generated by pupils attending the area
152.2learning center or alternative learning program. The amount of reserved revenue under
152.3this subdivision may only be spent on program costs associated with the area learning
152.4center or alternative learning program.
152.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
152.6and later.

152.7    Sec. 2. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is
152.8amended to read:
152.9    Subd. 5. Levy recognition. For fiscal year 2011 2014 and later years, in June of
152.10each year, the school district must recognize as revenue, in the fund for which the levy
152.11was made, the lesser of:
152.12(1) the sum of May, June, and July school district tax settlement revenue received in
152.13that calendar year, plus general education aid according to section 126C.13, subdivision
152.144 , received in July and August of that calendar year; or
152.15(2) the sum of:
152.16(i) the greater of 48.6 percent of the referendum levy certified according to section
152.17126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
152.18according to section 126C.17 in calendar year 2000; plus
152.19(ii) the entire amount of the levy certified in the prior calendar year according
152.20to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue
152.21under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special
152.22School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and
152.23Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a),
152.24and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
152.25(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
152.26school district's general and community service funds, plus or minus auditor's adjustments,
152.27that remains after subtracting the referendum levy certified according to section 126C.17
152.28and the amount recognized according to item (ii).

152.29    Sec. 3. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:
152.30    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its
152.31postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses.
152.32A postsecondary institution may provide information about its programs to a secondary
152.33school or to a pupil or parent and it may advertise or otherwise recruit or solicit a
152.34secondary pupil to enroll in its programs on educational and programmatic grounds only.
153.1An institution must not enroll secondary pupils, for postsecondary enrollment options
153.2purposes, in remedial, developmental, or other courses that are not college level except
153.3when a student eligible to participate in the graduation incentives program under section
153.4124D.68 enrolls full time in a middle or early college program specifically designed to
153.5allow the student to earn dual high school and college credit. In this case, the student shall
153.6receive developmental college credit and not college credit for completing remedial or
153.7developmental courses. Once a pupil has been enrolled in a postsecondary course under
153.8this section, the pupil shall not be displaced by another student.
153.9EFFECTIVE DATE.This section is effective July 1, 2014.

153.10    Sec. 4. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
153.11    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this
153.12section, the department must make payments according to this subdivision for courses that
153.13were taken for secondary credit.
153.14The department must not make payments to a school district or postsecondary
153.15institution for a course taken for postsecondary credit only. The department must not
153.16make payments to a postsecondary institution for a course from which a student officially
153.17withdraws during the first 14 days of the quarter or semester or who has been absent from
153.18the postsecondary institution for the first 15 consecutive school days of the quarter or
153.19semester and is not receiving instruction in the home or hospital.
153.20A postsecondary institution shall receive the following:
153.21(1) for an institution granting quarter credit, the reimbursement per credit hour shall
153.22be an amount equal to 88 percent of the product of the formula allowance minus $415
153.23 $425, multiplied by 1.3 1.2, and divided by 45; or
153.24(2) for an institution granting semester credit, the reimbursement per credit hour
153.25shall be an amount equal to 88 percent of the product of the general revenue formula
153.26allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
153.27The department must pay to each postsecondary institution 100 percent of the
153.28amount in clause (1) or (2) within 30 days of receiving initial enrollment information
153.29each quarter or semester. If changes in enrollment occur during a quarter or semester,
153.30the change shall be reported by the postsecondary institution at the time the enrollment
153.31information for the succeeding quarter or semester is submitted. At any time the
153.32department notifies a postsecondary institution that an overpayment has been made, the
153.33institution shall promptly remit the amount due.
153.34EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

154.1    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
154.2amended to read:
154.3    Subdivision 1. General education revenue. General education revenue must be
154.4paid to a charter school as though it were a district. The general education revenue
154.5for each adjusted pupil unit is the state average general education revenue per pupil
154.6unit, plus the referendum equalization aid allowance in the pupil's district of residence,
154.7minus an amount equal to the product of the formula allowance according to section
154.8126C.10, subdivision 2 , times .0466, calculated without declining enrollment revenue,
154.9local optional revenue, basic skills revenue, extended time revenue, pension adjustment
154.10revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment
154.11revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and
154.12transition revenue as though the school were a school district. The general education
154.13revenue for each extended time pupil unit equals $4,794.
154.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
154.15and later.

154.16    Sec. 6. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
154.17    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten
154.18through grade 12 who meets the following requirements:
154.19(1) the pupil, as declared by a parent or guardian first learned a language other than
154.20English, comes from a home where the language usually spoken is other than English, or
154.21usually speaks a language other than English; and
154.22(2) the pupil is determined by a valid assessment measuring the pupil's English
154.23language proficiency and by developmentally appropriate measures, which might include
154.24observations, teacher judgment, parent recommendations, or developmentally appropriate
154.25assessment instruments, to lack the necessary English skills to participate fully in
154.26academic classes taught in English.
154.27(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school
154.28in grades any grade 4 through 12 who was enrolled in a Minnesota public school on
154.29the dates during in the previous school year when a commissioner provided took a
154.30commissioner-provided assessment that measures measuring the pupil's emerging
154.31academic English was administered, shall not be counted as an English learner in
154.32calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
154.33 generate state English learner aid under section 124D.65, subdivision 5, unless if the pupil
154.34scored below the state cutoff score or is otherwise counted as a nonproficient participant
154.35on an the assessment measuring the pupil's emerging academic English provided by the
155.1commissioner during the previous school year, or, in the judgment of the pupil's classroom
155.2teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate
155.3academic language proficiency in English, including oral academic language, sufficient to
155.4successfully and fully participate in the general core curriculum in the regular classroom.
155.5(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade
155.612 shall not be counted as an English learner in calculating English learner pupil units
155.7under section 126C.05, subdivision 17, and shall not generate state English learner aid
155.8under section 124D.65, subdivision 5, if:
155.9(1) the pupil is not enrolled during the current fiscal year in an educational program
155.10for English learners in accordance with under sections 124D.58 to 124D.64; or
155.11(2) the pupil has generated five six or more years of average daily membership in
155.12Minnesota public schools since July 1, 1996.
155.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
155.14and later.

155.15    Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.65, subdivision 5, is
155.16amended to read:
155.17    Subd. 5. School district EL revenue. (a) A district's English learner programs
155.18revenue equals the product of (1) $704 $726 times (2) the greater of 20 or the adjusted
155.19average daily membership of eligible English learners enrolled in the district during the
155.20current fiscal year.
155.21(b) A pupil ceases to generate state English learner aid in the school year following
155.22the school year in which the pupil attains the state cutoff score on a commissioner-provided
155.23assessment that measures the pupil's emerging academic English.
155.24EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
155.25and later.

155.26    Sec. 8. [124D.695] APPROVED RECOVERY PROGRAM FUNDING.
155.27    Subdivision 1. Approved recovery program. "Approved recovery program" means
155.28a course of instruction offered by a recovery school that provides academic services,
155.29assistance with recovery, and continuing care to students recovering from substance abuse
155.30or dependency. A recovery program may be offered in a transitional academic setting
155.31designed to meet graduation requirements. A recovery program must be approved by the
155.32commissioner of education. The commissioner may specify the manner and form of the
155.33application for the approval of a recovery school or recovery program.
156.1    Subd. 2. Eligibility. An approved recovery program is eligible for an annual
156.2recovery program grant of up to $125,000 to pay for a portion of the costs of recovery
156.3program support staff under this section. "Recovery program support staff" means licensed
156.4alcohol and chemical dependency counselors, licensed school counselors, licensed school
156.5psychologists, licensed school nurses, and licensed school social workers.
156.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
156.7and later.

156.8    Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, is
156.9amended to read:
156.10    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
156.11year program under section 124D.128, an area learning center or an alternative learning
156.12program approved by the commissioner under sections 123A.05 and 123A.06, or a
156.13contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
156.14subdivision 4, for more than 1,020 hours in a school year for a secondary student, more
156.15than 935 hours in a school year for an elementary student, more than 850 hours in a school
156.16year for a kindergarten student without a disability in an all-day kindergarten program,
156.17or more than 425 hours in a school year for a half-day kindergarten student without a
156.18disability, that pupil may be counted as more than one pupil in average daily membership
156.19for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
156.20be determined by the ratio of the number of hours of instruction provided to that pupil in
156.21excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
156.22secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
156.23or the number of hours required for a full-time elementary pupil in the district to 935 for
156.24an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the
156.25number of hours required for a full-time kindergarten student without a disability in the
156.26district to 425 850 for a kindergarten student without a disability; and (iv) the greater of
156.27425 hours or the number of hours required for a half-time kindergarten student without a
156.28disability in the district to 425 for a half-day kindergarten student without a disability.
156.29Hours that occur after the close of the instructional year in June shall be attributable to
156.30the following fiscal year. A student in kindergarten or grades 1 through 12 must not be
156.31counted as more than 1.2 pupils in average daily membership under this subdivision.
156.32(b)(i) To receive general education revenue for a pupil in an area learning center
156.33or alternative learning program that has an independent study component, a district
156.34must meet the requirements in this paragraph. The district must develop, for the pupil,
156.35a continual learning plan consistent with section 124D.128, subdivision 3. Each school
157.1district that has an area learning center or alternative learning program must reserve
157.2revenue in an amount equal to at least 90 and not more than 100 percent of the district
157.3average general education revenue per pupil unit, minus an amount equal to the product
157.4of the formula allowance according to section 126C.10, subdivision 2, times .0466,
157.5calculated without basic skills and transportation sparsity revenue, times the number of
157.6pupil units generated by students attending an area learning center or alternative learning
157.7program. The amount of reserved revenue available under this subdivision may only be
157.8spent for program costs associated with the area learning center or alternative learning
157.9program. Basic skills revenue generated according to section 126C.10, subdivision 4, by
157.10pupils attending the eligible program must be allocated to the program.
157.11(ii) General education revenue for a pupil in a state-approved alternative program
157.12without an independent study component must be prorated for a pupil participating for
157.13less than a full year, or its equivalent. The district must develop a continual learning plan
157.14for the pupil, consistent with section 124D.128, subdivision 3. Each school district that
157.15has an area learning center or alternative learning program must reserve revenue in an
157.16amount equal to at least 90 and not more than 100 percent of the district average general
157.17education revenue per pupil unit, minus an amount equal to the product of the formula
157.18allowance according to section 126C.10, subdivision 2, times .0466, calculated without
157.19basic skills and transportation sparsity revenue, times the number of pupil units generated
157.20by students attending an area learning center or alternative learning program. The amount
157.21of reserved revenue available under this subdivision may only be spent for program costs
157.22associated with the area learning center or alternative learning program. Basic skills
157.23revenue generated according to section 126C.10, subdivision 4, by pupils attending the
157.24eligible program must be allocated to the program.
157.25(iii) General education revenue for a pupil in a state-approved alternative program
157.26that has an independent study component must be paid for each hour of teacher contact
157.27time and each hour of independent study time completed toward a credit or graduation
157.28standards necessary for graduation. Average daily membership for a pupil shall equal the
157.29number of hours of teacher contact time and independent study time divided by 1,020.
157.30(iv) For a state-approved alternative program having an independent study
157.31component, the commissioner shall require a description of the courses in the program, the
157.32kinds of independent study involved, the expected learning outcomes of the courses, and
157.33the means of measuring student performance against the expected outcomes.

157.34    Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2, is
157.35amended to read:
158.1    Subd. 2. Basic revenue. For fiscal year 2014, the basic revenue for each district
158.2equals the formula allowance times the adjusted marginal cost pupil units for the school
158.3year. For fiscal year 2015 and later, the basic revenue for each district equals the formula
158.4allowance times the adjusted pupil units for the school year. The formula allowance for
158.5fiscal year 2013 is $5,224. The formula allowance for fiscal year 2014 is $5,302. The
158.6formula allowance for fiscal year 2015 and later is $5,806 $5,864.
158.7EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
158.8and later.

158.9    Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a,
158.10is amended to read:
158.11    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for
158.12fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal
158.13cost pupil units of the district for each pupil in average daily membership in excess of 1.0
158.14and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended
158.15time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum
158.16of the adjusted pupil units of the district for each pupil in average daily membership in
158.17excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
158.18(b) A school district's extended time revenue may be used for extended day
158.19programs, extended week programs, summer school, and other programming authorized
158.20under the learning year program.
158.21EFFECTIVE DATE.This section is effective the day following final enactment
158.22and applies to revenue for fiscal year 2014 and later.

158.23    Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24,
158.24is amended to read:
158.25    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
158.26    (1) the school district's adjusted pupil unit amount of basic revenue, transition
158.27revenue, and referendum revenue is less than the value of the school district at or
158.28immediately above the 95th percentile of school districts in its equity region for those
158.29revenue categories; and
158.30    (2) the school district's administrative offices are not located in a city of the first
158.31class on July 1, 1999.
158.32    (b) Equity revenue for a qualifying district that receives referendum revenue under
158.33section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil
159.1units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's
159.2equity index computed under subdivision 27.
159.3    (c) Equity revenue for a qualifying district that does not receive referendum revenue
159.4under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil
159.5units for that year times $14.
159.6    (d) A school district's equity revenue is increased by the greater of zero or an amount
159.7equal to the district's resident adjusted pupil units times the difference between ten percent
159.8of the statewide average amount of referendum revenue per resident adjusted pupil unit for
159.9that year and the district's referendum revenue per resident adjusted pupil unit. A school
159.10district's revenue under this paragraph must not exceed $100,000 for that year.
159.11    (e) A school district's equity revenue for a school district located in the metro equity
159.12region or a school district with its administrative offices located in any Minnesota county
159.13in the Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area delineated in
159.142009 by the United States Census Bureau equals the amount computed in paragraphs (b),
159.15(c), and (d) multiplied by 1.25.
159.16    (f) A school district's additional equity revenue equals $50 times its adjusted pupil
159.17units.
159.18EFFECTIVE DATE.The changes in paragraph (d) are effective for revenue for
159.19fiscal year 2015 and later. The changes in paragraph (e) are effective for revenue for
159.20fiscal years 2017 and later.

159.21    Sec. 13. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
159.22    Subd. 25. Regional equity gap. The regional equity gap equals the difference
159.23between the value of the school district at or immediately above the fifth percentile of
159.24adjusted general revenue per adjusted marginal cost pupil unit and the value of the school
159.25district at or immediately above the 95th percentile of adjusted general revenue per
159.26adjusted marginal cost pupil unit.
159.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
159.28and later.

159.29    Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
159.30    Subd. 26. District equity gap. A district's equity gap equals the greater of zero
159.31or the difference between the district's adjusted general revenue and the value of the
159.32school district at or immediately above the regional 95th percentile of adjusted general
159.33revenue per adjusted marginal cost pupil unit.
160.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
160.2and later.

160.3    Sec. 15. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31,
160.4is amended to read:
160.5    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
160.6sum of the transition revenue the district would have received for fiscal year 2015 under
160.7Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater
160.8of zero or the difference between:
160.9    (1) the sum of:
160.10    (i) the general education revenue the district would have received for fiscal year
160.112015 according to Minnesota Statutes 2012, section 126C.10;
160.12(ii) the integration revenue the district received for fiscal year 2013 under Minnesota
160.13Statutes 2012, section 124D.86;
160.14(iii) the pension adjustment the district would have received for fiscal year 2015
160.15under Minnesota Statutes 2012, section 127A.50;
160.16(iv) the special education aid the district would have received for fiscal year 2015
160.17under Minnesota Statutes 2012, section 125A.76; and
160.18(v) the special education excess cost aid the district would have received for fiscal
160.19year 2015 under Minnesota Statutes 2012, section 125A.79; and
160.20(2) the sum of the district's:
160.21(i) general education revenue for fiscal year 2015 excluding transition revenue
160.22under this section;
160.23(ii) achievement and integration revenue for fiscal year 2015 under section
160.24124D.862 ; and
160.25(iii) special education aid for fiscal year 2015 under section 125A.76; and
160.26(iv) alternative teacher compensation revenue for fiscal year 2015 under section
160.27122A.415,
160.28divided by the number of adjusted pupil units for fiscal year 2015.
160.29    (b) A district's transition revenue for fiscal year 2015 and later equals the product of
160.30the district's transition allowance times the district's adjusted pupil units.
160.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
160.32and later.

161.1    Sec. 16. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is
161.2amended to read:
161.3    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
161.4 A district's referendum equalization levy equals the sum of the first tier referendum
161.5equalization levy, the second tier referendum equalization levy, and the third tier
161.6referendum equalization levy.
161.7(b) A district's first tier referendum equalization levy equals the district's first tier
161.8referendum equalization revenue times the lesser of one or the ratio of the district's
161.9referendum market value per resident pupil unit to $880,000.
161.10(c) A district's second tier referendum equalization levy equals the district's second
161.11tier referendum equalization revenue times the lesser of one or the ratio of the district's
161.12referendum market value per resident pupil unit to $510,000.
161.13(d) A district's third tier referendum equalization levy equals the district's third
161.14tier referendum equalization revenue times the lesser of one or the ratio of the district's
161.15referendum market value per resident pupil unit to $290,000.

161.16    Sec. 17. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b,
161.17is amended to read:
161.18    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum
161.19of a district's referendum equalization aid and location equity aid under section 126C.10,
161.20subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
161.21equalization aid the district would have received for fiscal year 2015 under Minnesota
161.22Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
161.23received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs
161.24(a), (b), and (c).
161.25(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and
161.26location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later,
161.27for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must
161.28not be less than the product of (1) the district's referendum equalization aid for fiscal year
161.292015, times (2) the lesser of one or the ratio of the district's referendum revenue for that
161.30school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser
161.31of one or the ratio of the district's referendum market value used for fiscal year 2015
161.32referendum equalization calculations to the district's referendum market value used for
161.33that year's referendum equalization calculations.
161.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
161.35and later.

162.1    Sec. 18. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is
162.2amended to read:
162.3    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
162.4subdivision 1 , may be increased in the amount approved by the voters of the district
162.5at a referendum called for the purpose. The referendum may be called by the board.
162.6The referendum must be conducted one or two calendar years before the increased levy
162.7authority, if approved, first becomes payable. Only one election to approve an increase
162.8may be held in a calendar year. Unless the referendum is conducted by mail under
162.9subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
162.10first Monday in November. The ballot must state the maximum amount of the increased
162.11revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board,
162.12of increased revenue per adjusted pupil unit that differs from year to year over the number
162.13of years for which the increased revenue is authorized or may state that the amount shall
162.14increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
162.15annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
162.16state that existing referendum levy authority is expiring. In this case, the ballot may also
162.17compare the proposed levy authority to the existing expiring levy authority, and express
162.18the proposed increase as the amount, if any, over the expiring referendum levy authority.
162.19The ballot must designate the specific number of years, not to exceed ten, for which the
162.20referendum authorization applies. The ballot, including a ballot on the question to revoke
162.21or reduce the increased revenue amount under paragraph (c), must abbreviate the term
162.22"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may
162.23be modified to read, in cases of renewing existing levies at the same amount per pupil
162.24as in the previous year:
162.25"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
162.26TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
162.27SCHEDULED TO EXPIRE."
162.28    The ballot may contain a textual portion with the information required in this
162.29subdivision and a question stating substantially the following:
162.30    "Shall the increase in the revenue proposed by (petition to) the board of .........,
162.31School District No. .., be approved?"
162.32    If approved, an amount equal to the approved revenue per adjusted pupil unit times
162.33the adjusted pupil units for the school year beginning in the year after the levy is certified
162.34shall be authorized for certification for the number of years approved, if applicable, or
162.35until revoked or reduced by the voters of the district at a subsequent referendum.
163.1    (b) The board must prepare and deliver by first class mail at least 15 days but no more
163.2than 30 days before the day of the referendum to each taxpayer a notice of the referendum
163.3and the proposed revenue increase. The board need not mail more than one notice to any
163.4taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
163.5those shown to be owners on the records of the county auditor or, in any county where
163.6tax statements are mailed by the county treasurer, on the records of the county treasurer.
163.7Every property owner whose name does not appear on the records of the county auditor
163.8or the county treasurer is deemed to have waived this mailed notice unless the owner
163.9has requested in writing that the county auditor or county treasurer, as the case may be,
163.10include the name on the records for this purpose. The notice must project the anticipated
163.11amount of tax increase in annual dollars for typical residential homesteads, agricultural
163.12homesteads, apartments, and commercial-industrial property within the school district.
163.13    The notice for a referendum may state that an existing referendum levy is expiring
163.14and project the anticipated amount of increase over the existing referendum levy in
163.15the first year, if any, in annual dollars for typical residential homesteads, agricultural
163.16homesteads, apartments, and commercial-industrial property within the district.
163.17    The notice must include the following statement: "Passage of this referendum will
163.18result in an increase in your property taxes." However, in cases of renewing existing levies,
163.19the notice may include the following statement: "Passage of this referendum extends an
163.20existing operating referendum at the same amount per pupil as in the previous year."
163.21    (c) A referendum on the question of revoking or reducing the increased revenue
163.22amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
163.23revoke or reduce the revenue amount must state the amount per resident marginal cost
163.24 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved
163.25by the voters of the district pursuant to paragraph (a) must be available to the school
163.26district at least once before it is subject to a referendum on its revocation or reduction for
163.27subsequent years. Only one revocation or reduction referendum may be held to revoke or
163.28reduce referendum revenue for any specific year and for years thereafter.
163.29    (d) The approval of 50 percent plus one of those voting on the question is required to
163.30pass a referendum authorized by this subdivision.
163.31    (e) At least 15 days before the day of the referendum, the district must submit a
163.32copy of the notice required under paragraph (b) to the commissioner and to the county
163.33auditor of each county in which the district is located. Within 15 days after the results
163.34of the referendum have been certified by the board, or in the case of a recount, the
163.35certification of the results of the recount by the canvassing board, the district must notify
163.36the commissioner of the results of the referendum.
164.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
164.2and later.

164.3    Sec. 19. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a,
164.4is amended to read:
164.5    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
164.69, a school district may convert up to $300 per adjusted pupil unit of referendum authority
164.7from voter approved to board approved by a board vote. A district with less than $300 per
164.8adjusted pupil unit of referendum authority after the local optional revenue subtraction
164.9under subdivision 1 may authorize new referendum authority up to the difference between
164.10$300 per adjusted pupil unit and the district's referendum authority. The board may
164.11authorize this levy for up to five years and may subsequently reauthorize that authority
164.12in increments of up to five years.
164.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
164.14and later.

164.15    Sec. 20. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
164.16126C.44 SAFE SCHOOLS LEVY.
164.17    (a) Each district may make a levy on all taxable property located within the district
164.18for the purposes specified in this section. The maximum amount which may be levied for
164.19all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil
164.20units for the school year. The proceeds of the levy must be reserved and used for directly
164.21funding the following purposes or for reimbursing the cities and counties who contract
164.22with the district for the following purposes:
164.23    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of
164.24peace officers and sheriffs for liaison in services in the district's schools;
164.25    (2) to pay the costs for a drug abuse prevention program as defined in section
164.26609.101, subdivision 3 , paragraph (e), in the elementary schools;
164.27    (3) to pay the costs for a gang resistance education training curriculum in the
164.28district's schools;
164.29    (4) to pay the costs for security in the district's schools and on school property;
164.30    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
164.31voluntary opt-in suicide prevention tools, and violence prevention measures taken by
164.32the school district;
165.1    (6) to pay costs for licensed school counselors, licensed school nurses, licensed
165.2school social workers, licensed school psychologists, and licensed alcohol and chemical
165.3dependency counselors to help provide early responses to problems;
165.4    (7) to pay for facility security enhancements including laminated glass, public
165.5announcement systems, emergency communications devices, and equipment and facility
165.6modifications related to violence prevention and facility security;
165.7    (8) to pay for costs associated with improving the school climate; or
165.8    (9) to pay costs for colocating and collaborating with mental health professionals
165.9who are not district employees or contractors.
165.10    (b) For expenditures under paragraph (a), clause (1), the district must initially
165.11attempt to contract for services to be provided by peace officers or sheriffs with the
165.12police department of each city or the sheriff's department of the county within the district
165.13containing the school receiving the services. If a local police department or a county
165.14sheriff's department does not wish to provide the necessary services, the district may
165.15contract for these services with any other police or sheriff's department located entirely or
165.16partially within the school district's boundaries.
165.17    (c) A school district that is a member of an intermediate school district may
165.18include in its authority under this section the costs associated with safe schools activities
165.19authorized under paragraph (a) for intermediate school district programs. This authority
165.20must not exceed $10 $15 times the adjusted marginal cost pupil units of the member
165.21districts. This authority is in addition to any other authority authorized under this section.
165.22Revenue raised under this paragraph must be transferred to the intermediate school district.
165.23EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

165.24    Sec. 21. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
165.25    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
165.26treasurers pursuant to section 276.10, apportionments from the school endowment fund
165.27pursuant to section 127A.33, apportionments by the county auditor pursuant to section
165.28127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
165.29pursuant to chapter 298.
165.30(b) "Cumulative amount guaranteed" means the product of
165.31(1) the cumulative disbursement percentage shown in subdivision 3; times
165.32(2) the sum of
165.33(i) the current year aid payment percentage of the estimated aid and credit
165.34entitlements paid according to subdivision 13; plus
165.35(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
166.1(iii) the other district receipts.
166.2(c) "Payment date" means the date on which state payments to districts are made
166.3by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
166.4or a weekday which is a legal holiday, the payment shall be made on the immediately
166.5preceding business day. The commissioner may make payments on dates other than
166.6those listed in subdivision 3, but only for portions of payments from any preceding
166.7payment dates which could not be processed by the electronic funds transfer method due
166.8to documented extenuating circumstances.
166.9(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
166.10fiscal year 2011, and 60 in fiscal years 2012 and later 90.

166.11    Sec. 22. Minnesota Statutes 2012, section 127A.45, subdivision 3, is amended to read:
166.12    Subd. 3. Payment dates and percentages. (a) The commissioner shall pay to a
166.13district on the dates indicated an amount computed as follows: the cumulative amount
166.14guaranteed minus the sum of (1) the district's other district receipts through the current
166.15payment, and (2) the aid and credit payments through the immediately preceding payment.
166.16For purposes of this computation, the payment dates and the cumulative disbursement
166.17percentages are as follows:

166.18		Payment date	Percentage
166.19	Payment 1	July 15:	5.5
166.20	Payment 2	July 30:	8.0
166.21	Payment 3	August 15:	17.5
166.22	Payment 4	August 30:	20.0
166.23	Payment 5	September 15:	22.5
166.24	Payment 6	September 30:	25.0
166.25	Payment 7	October 15:	27.0
166.26	Payment 8	October 30:	30.0
166.27	Payment 9	November 15:	32.5
166.28	Payment 10	November 30:	36.5
166.29	Payment 11	December 15:	42.0
166.30	Payment 12	December 30:	45.0
166.31	Payment 13	January 15:	50.0
166.32	Payment 14	January 30:	54.0
166.33	Payment 15	February 15:	58.0
166.34	Payment 16	February 28:	63.0
166.35	Payment 17	March 15:	68.0
166.36	Payment 18	March 30:	74.0
166.37	Payment 19	April 15:	78.0
166.38	Payment 20	April 30:	85.0
166.39	Payment 21	May 15:	90.0
167.1	Payment 22	May 30:	95.0
167.2	Payment 23	June 20:	100.0

167.3(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay
167.4to a school district or charter school on the dates indicated an amount computed as follows:

167.5 167.6	Payment 3	August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
167.7 167.8	Payment 4	August 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
167.9 167.10	Payment 6	September 30: 40 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits
167.11 167.12	Payment 8	October 30: 30 percent of the final adjustment for the prior fiscal year for all aid entitlements except state paid property tax credits

167.13(c) Notwithstanding paragraph (b), if the current year aid payment percentage
167.14under subdivision 2, paragraph (d), is less than 90, in addition to the amounts paid under
167.15paragraph (a), the commissioner shall pay to a charter school on the dates indicated an
167.16amount computed as follows:

167.17 167.18	Payment 1	July 15: 75 percent of the final adjustment for the prior fiscal year for all aid entitlements
167.19 167.20	Payment 8	October 30: 25 percent of the final adjustment for the prior fiscal year for all aid entitlements

167.21EFFECTIVE DATE.This section is effective July 1, 2015.

167.22    Sec. 23. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is
167.23amended to read:
167.24    Subd. 7. Alternative attendance programs. (a) The general education aid and
167.25special education aid for districts must be adjusted for each pupil attending a nonresident
167.26district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
167.27adjustments must be made according to this subdivision.
167.28    (b) For purposes of this subdivision, the "unreimbursed cost of providing special
167.29education and services" means the difference between: (1) the actual cost of providing
167.30special instruction and services, including special transportation and unreimbursed
167.31building lease and debt service costs for facilities used primarily for special education, for
167.32a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section
167.33125A.51 , who is enrolled in a program listed in this subdivision, minus (2) if the pupil
167.34receives special instruction and services outside the regular classroom for more than
167.3560 percent of the school day, the amount of general education revenue and referendum
167.36equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable
167.37to that pupil for the portion of time the pupil receives special instruction and services
168.1outside of the regular classroom, excluding portions attributable to district and school
168.2administration, district support services, operations and maintenance, capital expenditures,
168.3and pupil transportation, minus (3) special education aid under section 125A.76
168.4attributable to that pupil, that is received by the district providing special instruction and
168.5services. For purposes of this paragraph, general education revenue and referendum
168.6equalization aid attributable to a pupil must be calculated using the serving district's
168.7average general education revenue and referendum equalization aid per adjusted pupil unit.
168.8(c) For fiscal year 2015 and later, special education aid paid to a resident district
168.9must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
168.10special education and services.
168.11(d) Notwithstanding paragraph (c), special education aid paid to a resident district
168.12must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
168.13education and services provided to students at an intermediate district, cooperative, or
168.14charter school where the percent of students eligible for special education services is at
168.15least 70 percent of the charter school's total enrollment.
168.16    (e) Special education aid paid to the district or cooperative providing special
168.17instruction and services for the pupil, or to the fiscal agent district for a cooperative,
168.18must be increased by the amount of the reduction in the aid paid to the resident district
168.19under paragraphs (c) and (d). If the resident district's special education aid is insufficient
168.20to make the full adjustment, the remaining adjustment shall be made to other state aids
168.21due to the district.
168.22    (f) An area learning center operated by a service cooperative, intermediate district,
168.23education district, or a joint powers cooperative may elect through the action of the
168.24constituent boards to charge the resident district tuition for pupils rather than to have the
168.25general education revenue paid to a fiscal agent school district. Except as provided in
168.26paragraph (e), the district of residence must pay tuition equal to at least 90 and no more
168.27than 100 percent of the district average general education revenue per pupil unit minus
168.28an amount equal to the product of the formula allowance according to section 126C.10,
168.29subdivision 2 , times .0466, calculated without compensatory revenue and transportation
168.30sparsity revenue, times the number of pupil units for pupils attending the area learning
168.31center.
168.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
168.33and later.

168.34    Sec. 24. Laws 2012, chapter 263, section 1, is amended to read:
169.1    Section 1. INNOVATIVE DELIVERY OF EDUCATION SERVICES AND
169.2SHARING OF DISTRICT RESOURCES; PILOT PROJECT.
169.3    Subdivision 1. Establishment; requirements for participation. (a) A five-year
169.4 pilot project for the 2013-2014 through 2017-2018 school years is established to improve
169.5student and school outcomes by allowing groups of school districts to work together to
169.6provide innovative education programs and activities and share district resources. The
169.7pilot project may last until June 30, 2018, or for up to five years, whichever is less, except
169.8that innovation partnerships formed during the period of the pilot project may continue
169.9past June 30, 2018, with the agreement of the partnership members.
169.10(b) To participate in this pilot project to improve student and school outcomes, a
169.11group of two or more school districts must collaborate with school staff and receive formal
169.12school board approval to form a partnership. The partnership must develop a plan to
169.13provide challenging programmatic options for students, create professional development
169.14opportunities for educators, increase student engagement and connection and challenging
169.15learning opportunities for students, or demonstrate efficiencies in delivering financial and
169.16other services. The plan must establish:
169.17(1) collaborative educational goals and objectives;
169.18(2) strategies and processes to implement those goals and objectives, including a
169.19budget process with periodic expenditure reviews;
169.20(3) valid and reliable measures to evaluate progress in realizing the goals and
169.21objectives;
169.22(4) an implementation timeline; and
169.23(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee
169.24schedules, and legal considerations needed to fully implement the plan.
169.25A partnership may invite additional districts to join the partnership during the pilot
169.26project term after notifying the commissioner.
169.27(c) A partnership of interested districts must apply by February 1, 2013, of any year
169.28 to the education commissioner in the form and manner the commissioner determines,
169.29consistent with this section. The application must contain the formal approval adopted by
169.30the school board in each district to participate in the plan.
169.31(d) Notwithstanding other law to the contrary, a participating school district under
169.32this section continues to: receive revenue and maintain its taxation authority; be organized
169.33and governed by an elected school board with general powers under Minnesota Statutes,
169.34section 123B.02; and be subject to employment agreements under Minnesota Statutes,
169.35chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue
169.36to remain employees of the employing school district.
170.1    Subd. 2. Commissioner's role. Interested groups of school districts must submit
170.2a completed application to the commissioner by March 1, 2013, of any year in the form
170.3and manner determined by the commissioner. The education commissioner must convene
170.4an advisory panel composed of a teacher appointed by Education Minnesota, a school
170.5principal appointed by the Minnesota Association of Secondary School Principals, a
170.6school board member appointed by the Minnesota School Boards Association, and a
170.7school superintendent appointed by the Minnesota Association of School Administrators
170.8to advise the commissioner on applicants' qualifications to participate in this pilot project.
170.9The commissioner must select between three and may select up to six qualified applicants
170.10under subdivision 1 by April 1, 2013, of any year to participate in this pilot project,
170.11ensuring an equitable geographical distribution of project participants to the extent
170.12practicable. The commissioner must select only those applicants that fully comply with
170.13the requirements in subdivision 1. The commissioner must terminate a project participant
170.14that fails to effectively implement the goals and objectives contained in its application and
170.15according to its stated timeline.
170.16    Subd. 3. Pilot project evaluation. Participating school districts must submit pilot
170.17project data to the commissioner in the form and manner determined by the commissioner.
170.18The education commissioner must analyze participating districts' progress in realizing
170.19their educational goals and objectives to work together in providing innovative education
170.20programs and activities and sharing resources. The commissioner must include the
170.21analysis of best practices in a report to the legislative committees with jurisdiction over
170.22kindergarten through grade 12 education finance and policy on the efficacy of this pilot
170.23project. The commissioner may shall submit an interim project report at any time by
170.24February 1, 2016, and must submit a final report to the legislature by February 1, 2018
170.25 2019, recommending whether or not to continue or expand the pilot project.

170.26    Sec. 25. Laws 2012, chapter 263, section 1, the effective date, is amended to read:
170.27EFFECTIVE DATE.This section is effective the day following final enactment
170.28and applies to the 2013-2014 through 2017-2018 school years.

170.29    Sec. 26. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
170.30    Subd. 2. General education aid. For general education aid under Minnesota
170.31Statutes, section 126C.13, subdivision 4:

171.1 171.2		$	6,051,766,000 6,851,972,000	.....	2014
171.3 171.4		$	6,370,640,000 6,495,698,000	.....	2015

171.5The 2014 appropriation includes $781,842,000 $780,709,000 for 2013 and
171.6$5,269,924,000 $6,071,263,000 for 2014.
171.7The 2015 appropriation includes $823,040,000 $589,097,000 for 2014 and
171.8$5,547,600,000 $5,906,601,000 for 2015.

171.9    Sec. 27. APPROPRIATIONS.
171.10    Subdivision 1. Department of Education. The sums indicated in this section are
171.11appropriated from the general fund to the Department of Education for the fiscal years
171.12designated.
171.13    Subd. 2. Recovery program grants. For recovery program grants under Minnesota
171.14Statutes, section 124D.695:

171.15

$

500,000

.....

2015

171.16    Sec. 28. REVISOR'S INSTRUCTION.
171.17In Minnesota Statutes, the revisor of statutes shall change the term "location equity"
171.18to "local optional."


171.21    Section 1. Minnesota Statutes 2012, section 122A.40, subdivision 13, is amended to
171.22read:
171.23    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
171.24(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
171.25of the following grounds:
171.26(1) immoral conduct, insubordination, or conviction of a felony;
171.27(2) conduct unbecoming a teacher which requires the immediate removal of the
171.28teacher from classroom or other duties;
171.29(3) failure without justifiable cause to teach without first securing the written release
171.30of the school board;
171.31(4) gross inefficiency which the teacher has failed to correct after reasonable written
171.32notice;
172.1(5) willful neglect of duty; or
172.2(6) continuing physical or mental disability subsequent to a 12 months leave of
172.3absence and inability to qualify for reinstatement in accordance with subdivision 12.
172.4For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
172.5discriminatory practice described in section 363A.13.
172.6Prior to discharging a teacher under this paragraph, the board must notify the teacher
172.7in writing and state its ground for the proposed discharge in reasonable detail. Within
172.8ten days after receipt of this notification the teacher may make a written request for a
172.9hearing before the board and it shall be granted before final action is taken. The board
172.10may suspend a teacher with pay pending the conclusion of the hearing and determination
172.11of the issues raised in the hearing after charges have been filed which constitute ground for
172.12discharge. If a teacher has been charged with a felony and the underlying conduct that
172.13is the subject of the felony charge is a ground for a proposed immediate discharge, the
172.14suspension pending the conclusion of the hearing and determination of the issues may be
172.15without pay. If a hearing under this paragraph is held, the board must reimburse the teacher
172.16for any salary or compensation withheld if the final decision of the board or the arbitrator
172.17does not result in a penalty to or suspension, termination, or discharge of the teacher.
172.18(b) A board must discharge a continuing-contract teacher, effective immediately,
172.19upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
172.20teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
172.21(c) When a teacher is discharged under paragraph (b) or when the commissioner
172.22makes a final determination of child maltreatment involving a teacher under section
172.23626.556, subdivision 11, the school principal or other person having administrative
172.24control of the school must include in the teacher's employment record the information
172.25contained in the record of the disciplinary action or the final maltreatment determination,
172.26consistent with the definition of public data under section 13.41, subdivision 5, and must
172.27provide the Board of Teaching and the licensing division at the department with the
172.28necessary and relevant information to enable the Board of Teaching and the department's
172.29licensing division to fulfill their statutory and administrative duties related to issuing,
172.30renewing, suspending, or revoking a teacher's license. Information received by the Board
172.31of Teaching or the licensing division at the department under this paragraph is governed
172.32by section 13.41 or other applicable law governing data of the receiving entity. In addition
172.33to the background check required under section 123B.03, a school board or other school
172.34hiring authority must contact the Board of Teaching and the department to determine
172.35whether the teacher's license has been suspended or revoked, consistent with the discharge
172.36and final maltreatment determinations identified in this paragraph.
173.1EFFECTIVE DATE.This section is effective the day following final enactment.

173.2    Sec. 2. Minnesota Statutes 2012, section 122A.41, subdivision 6, is amended to read:
173.3    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
173.4in paragraph (b), causes for the discharge or demotion of a teacher either during or after
173.5the probationary period must be:
173.6(1) immoral character, conduct unbecoming a teacher, or insubordination;
173.7(2) failure without justifiable cause to teach without first securing the written release
173.8of the school board having the care, management, or control of the school in which the
173.9teacher is employed;
173.10(3) inefficiency in teaching or in the management of a school, consistent with
173.11subdivision 5, paragraph (b);
173.12(4) affliction with active tuberculosis or other communicable disease must be
173.13considered as cause for removal or suspension while the teacher is suffering from such
173.14disability; or
173.15(5) discontinuance of position or lack of pupils.
173.16For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
173.17discriminatory practice described in section 363A.13.
173.18(b) A probationary or continuing-contract teacher must be discharged immediately
173.19upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
173.20teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
173.21(c) When a teacher is discharged under paragraph (b) or when the commissioner
173.22makes a final determination of child maltreatment involving a teacher under section
173.23626.556, subdivision 11, the school principal or other person having administrative
173.24control of the school must include in the teacher's employment record the information
173.25contained in the record of the disciplinary action or the final maltreatment determination,
173.26consistent with the definition of public data under section 13.41, subdivision 5, and must
173.27provide the Board of Teaching and the licensing division at the department with the
173.28necessary and relevant information to enable the Board of Teaching and the department's
173.29licensing division to fulfill their statutory and administrative duties related to issuing,
173.30renewing, suspending, or revoking a teacher's license. Information received by the Board
173.31of Teaching or the licensing division at the department under this paragraph is governed
173.32by section 13.41 or other applicable law governing data of the receiving entity. In addition
173.33to the background check required under section 123B.03, a school board or other school
173.34hiring authority must contact the Board of Teaching and the department to determine
174.1whether the teacher's license has been suspended or revoked, consistent with the discharge
174.2and final maltreatment determinations identified in this paragraph.
174.3EFFECTIVE DATE.This section is effective the day following final enactment.

174.4    Sec. 3. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
174.5    Subdivision 1. Revenue amount. (a) A school district, intermediate school district,
174.6school site, or charter school that meets the conditions of section 122A.414 and submits an
174.7application approved by the commissioner is eligible for alternative teacher compensation
174.8revenue.
174.9(b) For school district and intermediate school district applications, the commissioner
174.10must consider only those applications to participate that are submitted jointly by a
174.11district and the exclusive representative of the teachers. The application must contain an
174.12alternative teacher professional pay system agreement that:
174.13(1) implements an alternative teacher professional pay system consistent with
174.14section 122A.414; and
174.15(2) is negotiated and adopted according to the Public Employment Labor Relations
174.16Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
174.17district may enter into a contract for a term of two or four years.
174.18Alternative teacher compensation revenue for a qualifying school district or site in
174.19which the school board and the exclusive representative of the teachers agree to place
174.20teachers in the district or at the site on the alternative teacher professional pay system
174.21equals $260 times the number of pupils enrolled at the district or site on October 1 of
174.22the previous fiscal year. Alternative teacher compensation revenue for a qualifying
174.23intermediate school district must be calculated under section 126C.10, subdivision 34
174.24 subdivision 4, paragraphs (a) and (b).
174.25(c) For a newly combined or consolidated district, the revenue shall be computed
174.26using the sum of pupils enrolled on October 1 of the previous year in the districts entering
174.27into the combination or consolidation. The commissioner may adjust the revenue computed
174.28for a site using prior year data to reflect changes attributable to school closings, school
174.29openings, or grade level reconfigurations between the prior year and the current year.
174.30(d) The revenue is available only to school districts, intermediate school districts,
174.31school sites, and charter schools that fully implement an alternative teacher professional
174.32pay system by October 1 of the current school year.
174.33EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
174.34and later.

175.1    Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is
175.2amended to read:
175.3    Subdivision 1. Initial achievement and integration revenue. (a) An eligible
175.4district's initial achievement and integration revenue equals the lesser of 100.3 percent of
175.5the district's expenditures under the budget approved by the commissioner under section
175.6124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive
175.7revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil
175.8units for that year times the ratio of the district's enrollment of protected students for the
175.9previous school year to total enrollment for the previous school year and (2) the greater of
175.10zero or 66 percent of the difference between the district's integration revenue for fiscal
175.11year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
175.12(b) In each year, 0.3 percent of each district's initial achievement and integration
175.13revenue is transferred to the department for the oversight and accountability activities
175.14required under this section and section 124D.861.
175.15EFFECTIVE DATE.This section is effective the day following final enactment
175.16and applies to revenue for fiscal year 2014 and later.

175.17    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is
175.18amended to read:
175.19    Subd. 2. Incentive revenue. An eligible school district's maximum incentive
175.20revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
175.21be A district's incentive revenue equals the lesser of the maximum incentive revenue
175.22or the district's expenditures for implementing a voluntary plan to reduce racial and
175.23economic enrollment disparities through intradistrict and interdistrict activities that have
175.24been approved as a part of the district's achievement and integration plan under the budget
175.25approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).
175.26EFFECTIVE DATE.This section is effective the day following final enactment
175.27and applies to revenue for fiscal year 2014 and later.

175.28    Sec. 6. Laws 2013, chapter 116, article 3, section 37, subdivision 11, is amended to read:
175.29    Subd. 11. Concurrent enrollment program. For concurrent enrollment programs
175.30under Minnesota Statutes, section 124D.091:

175.31		$	2,000,000	.....	2014
175.32 175.33		$	2,000,000 3,897,000	.....	2015

176.1If the appropriation is insufficient, the commissioner must proportionately reduce
176.2the aid payment to each district.
176.3Any balance in the first year does not cancel but is available in the second year. The
176.4annual base budget for this program is $2,000,000 for fiscal years 2016 and 2017.

176.5    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to read:
176.6    Subd. 15. Early childhood literacy programs. For early childhood literacy
176.7programs under Minnesota Statutes, section 119A.50, subdivision 3:

176.8		$	4,125,000	.....	2014
176.9 176.10		$	4,125,000 4,625,000	.....	2015

176.11Up to $4,125,000 each in the first year and $4,625,000 in the second year is for
176.12leveraging federal and private funding to support AmeriCorps members serving in the
176.13Minnesota Reading Corps program established by ServeMinnesota, including costs
176.14associated with the training and teaching of early literacy skills to children age three
176.15to grade 3 and the evaluation of the impact of the program under Minnesota Statutes,
176.16sections 124D.38, subdivision 2, and 124D.42, subdivision 6. Up to $500,000 in fiscal
176.17year 2015 must be used to support priority and focus schools as defined by the Department
176.18of Education and to expand kindergarten programming.
176.19Any balance in the first year does not cancel but is available in the second year.

176.20    Sec. 8. BETTER ALIGNING MINNESOTA'S ALTERNATIVE TEACHER
176.21PROFESSIONAL PAY SYSTEM AND TEACHER DEVELOPMENT AND
176.22EVALUATION PROGRAM.
176.23To better align Minnesota's alternative teacher professional pay system under
176.24Minnesota Statutes, sections 122A.413 to 122A.416, and Minnesota's teacher development
176.25and evaluation program under Minnesota Statutes, sections 122A.40, subdivision 8, and
176.26122A.41, subdivision 5, and effect and fund an improved alignment of this system and
176.27program, the commissioner of education must consult with stakeholders, including, but
176.28not limited to, representatives of the Minnesota Association of School Administrators,
176.29the Minnesota Association of Secondary School Principals, the Minnesota Elementary
176.30School Principals' Association, Education Minnesota, Schools for Equity in Education, the
176.31Minnesota Business Partnership, the Minnesota Chamber of Commerce, the Minnesota
176.32School Boards Association, the Department of Education, the College of Education
176.33and Human Development at the University of Minnesota, the Minnesota Association
176.34of the Colleges for Teacher Education, licensed elementary and secondary school
177.1teachers employed in school districts with an alternative teacher professional pay system
177.2agreement and licensed elementary and secondary school teachers employed in school
177.3districts without an alternative teacher professional pay system agreement, where one or
177.4more of these teachers may be a master teacher, peer evaluator, in another teacher leader
177.5position, or national board certified teacher, a teacher or school administrator employed in
177.6a Minnesota charter school with an alternative teacher professional pay system agreement
177.7and a teacher or school administrator employed in a Minnesota charter school without an
177.8alternative teacher professional pay system agreement, a parent or guardian of a student
177.9currently enrolled in a Minnesota public school, the Association of Metropolitan School
177.10Districts, and the Minnesota Rural Education Association. The commissioner also must
177.11consult with members of the house of representatives and members of the senate.
177.12The commissioner, by February 1, 2015, must submit to the education policy and
177.13finance committees of the legislature written recommendations on better aligning and
177.14financing the alternative teacher professional pay system and teacher development and
177.15evaluation program.
177.16EFFECTIVE DATE.This section is effective the day following final enactment.

177.17    Sec. 9. CAREER AND TECHNICAL EDUCATION PROGRAM INVENTORY.
177.18(a) The commissioner of education must consult with experts knowledgeable about
177.19secondary and postsecondary career and technical education programs to determine the
177.20content and status of particular career and technical education programs in Minnesota
177.21school districts, including cooperating districts under Minnesota Statutes, 123A.33,
177.22subdivision 2, integration districts, and postsecondary institutions partnering with school
177.23districts or offering courses through PSEO or career and technical programs and the rates
177.24of student participation and completion for these various programs, including: agriculture,
177.25food, and natural resources; architecture and construction; arts, audiovisual technology,
177.26and communications; business management and administration; computer science; family
177.27and consumer science; finance; health science; hospitality and tourism; human services;
177.28information technology; manufacturing; marketing; science, technology, engineering, and
177.29mathematics; and transportation, distribution, and logistics.
177.30(b) To accomplish paragraph (a) and to understand the current role of local school
177.31districts and postsecondary institutions in providing career and technical education
177.32programs, the commissioner of education, in consultation with experts, also must examine
177.33the extent to which secondary and postsecondary education programs offer students a
177.34progression of coordinated, nonduplicative courses that adequately prepare students to
177.35successfully complete a career and technical education program.
178.1(c) The commissioner of education must submit a report by February 1, 2015,
178.2to the education policy and finance committees of the legislature, consistent with this
178.3section, and include information about each district's dedicated equipment, resources, and
178.4relationships with postsecondary institutions and the local business community.
178.5EFFECTIVE DATE.This section is effective the day following final enactment.

178.6    Sec. 10. APPROPRIATIONS.
178.7    Subdivision 1. Department of Education. The sums indicated in this section are
178.8appropriated from the general fund to the Department of Education for the fiscal years
178.9designated.
178.10    Subd. 2. Career and technical program inventory. For the career and technical
178.11program inventory program under section 9:

178.12

$

150,000

.....

2015

178.13This is a onetime appropriation.
178.14    Subd. 3. Teacher Professional Pay System and Teacher Evaluation Program
178.15alignment. For the alignment and reporting activities under section 8:

178.16

$

25,000

.....

2015

178.19    Section 1. Minnesota Statutes 2013 Supplement, section 125A.0942, is amended to read:
178.20125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
178.21    Subdivision 1. Restrictive procedures plan. (a) Schools that intend to use
178.22restrictive procedures shall maintain and make publicly accessible in an electronic format
178.23on a school or district Web site or make a paper copy available upon request describing a
178.24restrictive procedures plan for children with disabilities that at least:
178.25(1) lists the restrictive procedures the school intends to use;
178.26(2) describes how the school will implement a range of positive behavior strategies
178.27and provide links to mental health services;
178.28(3) describes how the school will provide training on de-escalation techniques,
178.29consistent with section 122A.09, subdivision 4, paragraph (k);
178.30(4) describes how the school will monitor and review the use of restrictive
178.31procedures, including:
179.1(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a),
179.2clause (5); and
179.3(ii) convening an oversight committee to undertake a quarterly review of the use
179.4of restrictive procedures based on patterns or problems indicated by similarities in the
179.5time of day, day of the week, duration of the use of a procedure, the individuals involved,
179.6or other factors associated with the use of restrictive procedures; the number of times a
179.7restrictive procedure is used schoolwide and for individual children; the number and types
179.8of injuries, if any, resulting from the use of restrictive procedures; whether restrictive
179.9procedures are used in nonemergency situations; the need for additional staff training; and
179.10proposed actions to minimize the use of restrictive procedures; and
179.11(4) (5) includes a written description and documentation of the training staff
179.12completed under subdivision 5.
179.13(b) Schools annually must publicly identify oversight committee members who
179.14must at least include:
179.15(1) a mental health professional, school psychologist, or school social worker;
179.16(2) an expert in positive behavior strategies;
179.17(3) a special education administrator; and
179.18(4) a general education administrator.
179.19    Subd. 2. Restrictive procedures. (a) Restrictive procedures may be used only
179.20by a licensed special education teacher, school social worker, school psychologist,
179.21behavior analyst certified by the National Behavior Analyst Certification Board, a person
179.22with a master's degree in behavior analysis, other licensed education professional,
179.23paraprofessional under section 120B.363, or mental health professional under section
179.24245.4871, subdivision 27 , who has completed the training program under subdivision 5.
179.25(b) A school shall make reasonable efforts to notify the parent on the same day a
179.26restrictive procedure is used on the child, or if the school is unable to provide same-day
179.27notice, notice is sent within two days by written or electronic means or as otherwise
179.28indicated by the child's parent under paragraph (d) (f).
179.29(c) The district must hold a meeting of the individualized education program team,
179.30conduct or review a functional behavioral analysis, review data, consider developing
179.31additional or revised positive behavioral interventions and supports, consider actions to
179.32reduce the use of restrictive procedures, and modify the individualized education program
179.33or behavior intervention plan as appropriate. The district must hold the meeting: within
179.34ten calendar days after district staff use restrictive procedures on two separate school
179.35days within 30 calendar days or a pattern of use emerges and the child's individualized
179.36education program or behavior intervention plan does not provide for using restrictive
180.1procedures in an emergency; or at the request of a parent or the district after restrictive
180.2procedures are used. The district must review use of restrictive procedures at a child's
180.3annual individualized education program meeting when the child's individualized
180.4education program provides for using restrictive procedures in an emergency.
180.5(d) If the individualized education program team under paragraph (c) determines
180.6that existing interventions and supports are ineffective in reducing the use of restrictive
180.7procedures or the district uses restrictive procedures on a child on ten or more school days
180.8during the same school year, the team, as appropriate, either must consult with other
180.9professionals working with the child; consult with experts in behavior analysis, mental
180.10health, communication, or autism; consult with culturally competent professionals;
180.11review existing evaluations, resources, and successful strategies; or consider whether to
180.12reevaluate the child.
180.13(e) At the individualized education program meeting under paragraph (c), the team
180.14must review any known medical or psychological limitations, including any medical
180.15information the parent provides voluntarily, that contraindicate the use of a restrictive
180.16procedure, consider whether to prohibit that restrictive procedure, and document any
180.17prohibition in the individualized education program or behavior intervention plan.
180.18(f) An individualized education program team may plan for using restrictive
180.19procedures and may include these procedures in a child's individualized education
180.20program or behavior intervention plan; however, the restrictive procedures may be used
180.21only in response to behavior that constitutes an emergency, consistent with this section.
180.22The individualized education program or behavior intervention plan shall indicate how the
180.23parent wants to be notified when a restrictive procedure is used.
180.24    Subd. 3. Physical holding or seclusion. (a) Physical holding or seclusion may be
180.25used only in an emergency. A school that uses physical holding or seclusion shall meet the
180.26following requirements:
180.27(1) physical holding or seclusion is the least intrusive intervention that effectively
180.28responds to the emergency;
180.29(2) physical holding or seclusion is not used to discipline a noncompliant child;
180.30(3) physical holding or seclusion ends when the threat of harm ends and the staff
180.31determines the child can safely return to the classroom or activity;
180.32(4) staff directly observes the child while physical holding or seclusion is being used;
180.33(5) each time physical holding or seclusion is used, the staff person who implements
180.34or oversees the physical holding or seclusion documents, as soon as possible after the
180.35incident concludes, the following information:
180.36(i) a description of the incident that led to the physical holding or seclusion;
181.1(ii) why a less restrictive measure failed or was determined by staff to be
181.2inappropriate or impractical;
181.3(iii) the time the physical holding or seclusion began and the time the child was
181.4released; and
181.5(iv) a brief record of the child's behavioral and physical status;
181.6(6) the room used for seclusion must:
181.7(i) be at least six feet by five feet;
181.8(ii) be well lit, well ventilated, adequately heated, and clean;
181.9(iii) have a window that allows staff to directly observe a child in seclusion;
181.10(iv) have tamperproof fixtures, electrical switches located immediately outside the
181.11door, and secure ceilings;
181.12(v) have doors that open out and are unlocked, locked with keyless locks that
181.13have immediate release mechanisms, or locked with locks that have immediate release
181.14mechanisms connected with a fire and emergency system; and
181.15(vi) not contain objects that a child may use to injure the child or others;
181.16(7) before using a room for seclusion, a school must:
181.17(i) receive written notice from local authorities that the room and the locking
181.18mechanisms comply with applicable building, fire, and safety codes; and
181.19(ii) register the room with the commissioner, who may view that room; and
181.20(8) until August 1, 2015, a school district may use prone restraints with children
181.21age five or older if:
181.22(i) the district has provided to the department a list of staff who have had specific
181.23training on the use of prone restraints;
181.24(ii) the district provides information on the type of training that was provided and
181.25by whom;
181.26(iii) only staff who received specific training use prone restraints;
181.27(iv) each incident of the use of prone restraints is reported to the department within
181.28five working days on a form provided by the department; and
181.29(v) the district, before using prone restraints, must review any known medical or
181.30psychological limitations that contraindicate the use of prone restraints.
181.31The department must collect data on districts' use of prone restraints and publish the data
181.32in a readily accessible format on the department's Web site on a quarterly basis.
181.33(b) By March 1, 2014 February 1, 2015, and annually thereafter, stakeholders must
181.34recommend to the commissioner specific and measurable implementation and outcome
181.35goals for reducing the use of restrictive procedures and the commissioner must submit to
181.36the legislature a report on districts' progress in reducing the use of restrictive procedures
182.1that recommends how to further reduce these procedures and eliminate the use of prone
182.2restraints. The statewide plan includes the following components: measurable goals; the
182.3resources, training, technical assistance, mental health services, and collaborative efforts
182.4needed to significantly reduce districts' use of prone restraints; and recommendations
182.5to clarify and improve the law governing districts' use of restrictive procedures. The
182.6commissioner must consult with interested stakeholders when preparing the report,
182.7including representatives of advocacy organizations, special education directors, teachers,
182.8paraprofessionals, intermediate school districts, school boards, day treatment providers,
182.9county social services, state human services department staff, mental health professionals,
182.10and autism experts. By June 30 each year, districts must report summary data on their
182.11use of restrictive procedures to the department, in a form and manner determined by the
182.12commissioner. The summary data must include information about the use of restrictive
182.13procedures, including use of reasonable force under section 121A.582.
182.14    Subd. 4. Prohibitions. The following actions or procedures are prohibited:
182.15(1) engaging in conduct prohibited under section 121A.58;
182.16(2) requiring a child to assume and maintain a specified physical position, activity,
182.17or posture that induces physical pain;
182.18(3) totally or partially restricting a child's senses as punishment;
182.19(4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
182.20substance, or spray as punishment;
182.21(5) denying or restricting a child's access to equipment and devices such as walkers,
182.22wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
182.23except when temporarily removing the equipment or device is needed to prevent injury
182.24to the child or others or serious damage to the equipment or device, in which case the
182.25equipment or device shall be returned to the child as soon as possible;
182.26(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
182.27physical abuse under section 626.556;
182.28(7) withholding regularly scheduled meals or water;
182.29(8) denying access to bathroom facilities; and
182.30(9) physical holding that restricts or impairs a child's ability to breathe, restricts or
182.31impairs a child's ability to communicate distress, places pressure or weight on a child's
182.32head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in
182.33straddling a child's torso.
182.34    Subd. 5. Training for staff. (a) To meet the requirements of subdivision 1, staff
182.35who use restrictive procedures, including paraprofessionals, shall complete training in
182.36the following skills and knowledge areas:
183.1(1) positive behavioral interventions;
183.2(2) communicative intent of behaviors;
183.3(3) relationship building;
183.4(4) alternatives to restrictive procedures, including techniques to identify events and
183.5environmental factors that may escalate behavior;
183.6(5) de-escalation methods;
183.7(6) standards for using restrictive procedures only in an emergency;
183.8(7) obtaining emergency medical assistance;
183.9(8) the physiological and psychological impact of physical holding and seclusion;
183.10(9) monitoring and responding to a child's physical signs of distress when physical
183.11holding is being used;
183.12(10) recognizing the symptoms of and interventions that may cause positional
183.13asphyxia when physical holding is used;
183.14(11) district policies and procedures for timely reporting and documenting each
183.15incident involving use of a restricted procedure; and
183.16(12) schoolwide programs on positive behavior strategies.
183.17(b) The commissioner, after consulting with the commissioner of human services,
183.18must develop and maintain a list of training programs that satisfy the requirements of
183.19paragraph (a). The commissioner also must develop and maintain a list of experts to
183.20help individualized education program teams reduce the use of restrictive procedures.
183.21The district shall maintain records of staff who have been trained and the organization
183.22or professional that conducted the training. The district may collaborate with children's
183.23community mental health providers to coordinate trainings.
183.24    Subd. 6. Behavior supports; reasonable force. (a) School districts are encouraged
183.25to establish effective schoolwide systems of positive behavior interventions and supports.
183.26(b) Nothing in this section or section 125A.0941 precludes the use of reasonable
183.27force under sections 121A.582; 609.06, subdivision 1; and 609.379. For the 2014-2015
183.28school year and later, districts must collect and submit to the commissioner summary
183.29data, consistent with subdivision 3, paragraph (b), on district use of reasonable force
183.30that is consistent with the definition of physical holding or seclusion for a child with a
183.31disability under this section.
183.32EFFECTIVE DATE.This section is effective the day following final enactment.

183.33    Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is
183.34amended to read:
184.1    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and
184.2later, when a school district provides special instruction and services for a pupil with
184.3a disability as defined in section 125A.02 outside the district of residence, excluding
184.4a pupil for whom an adjustment to special education aid is calculated according to
184.5section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the
184.6resident district must be reduced by an amount equal to (1) the actual cost of providing
184.7special instruction and services to the pupil, including a proportionate amount for special
184.8transportation and unreimbursed building lease and debt service costs for facilities used
184.9primarily for special education, plus (2) the amount of general education revenue and
184.10referendum equalization aid attributable to that pupil, calculated using the resident district's
184.11average general education revenue and referendum equalization aid per adjusted pupil
184.12unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity
184.13revenue, minus (3) the amount of special education aid for children with a disability
184.14under section 125A.76 received on behalf of that child, minus (4) if the pupil receives
184.15special instruction and services outside the regular classroom for more than 60 percent
184.16of the school day, the amount of general education revenue and referendum equalization
184.17aid, excluding portions attributable to district and school administration, district support
184.18services, operations and maintenance, capital expenditures, and pupil transportation,
184.19attributable to that pupil for the portion of time the pupil receives special instruction
184.20and services outside of the regular classroom, calculated using the resident district's
184.21average general education revenue and referendum equalization aid per adjusted pupil unit
184.22excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
184.23and the serving district's basic skills revenue, elementary sparsity revenue and secondary
184.24sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
184.25served by a cooperative unit without a fiscal agent school district, the general education
184.26revenue and referendum equalization aid attributable to a pupil must be calculated using
184.27the resident district's average general education revenue and referendum equalization aid
184.28excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
184.29revenue. Special education aid paid to the district or cooperative providing special
184.30instruction and services for the pupil must be increased by the amount of the reduction in
184.31the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
184.32and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
184.33expenditures on the resident school district's books of account under sections 123B.75
184.34and 123B.76. If the resident district's special education aid is insufficient to make the full
184.35adjustment, the remaining adjustment shall be made to other state aid due to the district.
185.1    (b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs
185.2(b) to (d), a charter school where more than 30 percent of enrolled students receive special
185.3education and related services, a site approved under section 125A.515, an intermediate
185.4district, a special education cooperative, or a school district that served as the applicant
185.5agency for a group of school districts for federal special education aids for fiscal year
185.62006 may apply to the commissioner for authority to charge the resident district an
185.7additional amount to recover any remaining unreimbursed costs of serving pupils with
185.8a disability. The application must include a description of the costs and the calculations
185.9used to determine the unreimbursed portion to be charged to the resident district. Amounts
185.10approved by the commissioner under this paragraph must be included in the tuition billings
185.11or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs
185.12(b) to (d), as applicable.
185.13    (c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
185.14(d) and (e) paragraph (b), "general education revenue and referendum equalization aid"
185.15means the sum of the general education revenue according to section 126C.10, subdivision
185.161, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph
185.17(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.
185.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
185.19and later.

185.20    Sec. 3. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is
185.21amended to read:
185.22    Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79,
185.23the definitions in this subdivision apply.
185.24    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
185.25For the purposes of computing basic revenue pursuant to this section, each child with a
185.26disability shall be counted as prescribed in section 126C.05, subdivision 1.
185.27    (c) "Essential personnel" means teachers, cultural liaisons, related services, and
185.28support services staff providing services to students. Essential personnel may also include
185.29special education paraprofessionals or clericals providing support to teachers and students
185.30by preparing paperwork and making arrangements related to special education compliance
185.31requirements, including parent meetings and individualized education programs. Essential
185.32personnel does not include administrators and supervisors.
185.33    (d) "Average daily membership" has the meaning given it in section 126C.05.
186.1    (e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015,
186.21.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the
186.3program growth factor for the previous year for fiscal year 2018 and later.
186.4(f) "Nonfederal special education expenditure" means all direct expenditures that
186.5are necessary and essential to meet the district's obligation to provide special instruction
186.6and services to children with a disability according to sections 124D.454, 125A.03 to
186.7125A.24 , 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
186.8the department under section 125A.75, subdivision 4, excluding expenditures:
186.9(1) reimbursed with federal funds;
186.10(2) reimbursed with other state aids under this chapter;
186.11(3) for general education costs of serving students with a disability;
186.12(4) for facilities;
186.13(5) for pupil transportation; and
186.14(6) for postemployment benefits.
186.15(g) "Old formula special education expenditures" means expenditures eligible for
186.16revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
186.17    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
186.18for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and
186.19fringe benefits of one-to-one instructional and behavior management aides and one-to-one
186.20licensed, certified professionals assigned to a child attending the academy, if the aides or
186.21professionals are required by the child's individualized education program.
186.22(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year
186.232014 and 2.27 percent for fiscal year 2015.
186.24(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
186.25for fiscal year 2015.
186.26(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100
186.27for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education
186.28aid increase limit for the previous fiscal year and $40.
186.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
186.30and later.

186.31    Sec. 4. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
186.32    Subd. 2. Special education initial aid. The special education initial aid equals the
186.33sum of the following amounts computed using current year data:
187.1    (1) 68 percent of the salary of each essential person employed in the district's program
187.2for children with a disability during the fiscal year, whether the person is employed by one
187.3or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
187.4    (2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
187.5for the Blind, 68 percent of the salary of each one to one one-to-one instructional and
187.6behavior management aide and one-to-one licensed, certified professional assigned to
187.7a child attending the academy, if the aides or professionals are required by the child's
187.8individualized education program;
187.9    (3) for special instruction and services provided to any pupil by contracting with
187.10public, private, or voluntary agencies other than school districts, in place of special
187.11instruction and services provided by the district, 52 percent of the difference between
187.12the amount of the contract and the general education revenue, excluding basic skills
187.13revenue and alternative teacher compensation revenue, and referendum equalization aid
187.14attributable to a pupil, calculated using the resident district's average general education
187.15revenue and referendum equalization aid per adjusted pupil unit for the fraction of the
187.16school day the pupil receives services under the contract. This includes children who
187.17are residents of the state, receive services under this subdivision and subdivision 1, and
187.18are placed in a care and treatment facility by court action in a state that does not have a
187.19reciprocity agreement with the commissioner under section 125A.155 as provided for in
187.20section 125A.79, subdivision 8;
187.21    (4) for special instruction and services provided to any pupil by contracting for
187.22services with public, private, or voluntary agencies other than school districts, that are
187.23supplementary to a full educational program provided by the school district, 52 percent of
187.24the amount of the contract for that pupil;
187.25    (5) for supplies and equipment purchased or rented for use in the instruction of
187.26children with a disability, an amount equal to 47 percent of the sum actually expended by
187.27the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
187.28not to exceed an average of $47 in any one school year for each child with a disability
187.29receiving instruction;
187.30    (6) for fiscal years 1997 and later, special education base revenue shall include
187.31amounts under clauses (1) to (5) for special education summer programs provided during
187.32the base year for that fiscal year;
187.33    (7) the cost of providing transportation services for children with disabilities under
187.34section 123B.92, subdivision 1, paragraph (b), clause (4); and
187.35    (8) the district's transition-disabled program initial aid according to section
187.36124D.454, subdivision 3 .
188.1    The department shall establish procedures through the uniform financial accounting
188.2and reporting system to identify and track all revenues generated from third-party billings
188.3as special education revenue at the school district level; include revenue generated from
188.4third-party billings as special education revenue in the annual cross-subsidy report; and
188.5exclude third-party revenue from calculation of excess cost aid to the districts.
188.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
188.7and later.

188.8    Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is
188.9amended to read:
188.10    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's
188.11special education initial aid equals the sum of:
188.12(1) the lesser least of 62 percent of the district's old formula special education
188.13expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50
188.14percent of the district's nonfederal special education expenditures for the prior year,
188.15excluding pupil transportation expenditures, or 56 percent of the product of the sum of the
188.16following amounts, computed using prior fiscal year data, and the program growth factor:
188.17(i) the product of the district's average daily membership served and the sum of:
188.18(A) $450; plus
188.19(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1
188.20who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
188.21who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
188.22(C) .008 times the district's average daily membership served; plus
188.23(ii) $10,400 times the December 1 child count for the primary disability areas of
188.24autism spectrum disorders, developmental delay, and severely multiply impaired; plus
188.25(iii) $18,000 times the December 1 child count for the primary disability areas of
188.26deaf and hard-of-hearing and emotional or behavioral disorders; plus
188.27(iv) $27,000 times the December 1 child count for the primary disability areas of
188.28developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
188.29physically impaired, visually impaired, and deafblind; plus
188.30(2) the cost of providing transportation services for children with disabilities under
188.31section 123B.92, subdivision 1, paragraph (b), clause (4).
188.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
188.33and later.

189.1    Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is
189.2amended to read:
189.3    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross
189.4subsidy reduction aid for a school district, not including a charter school, equals the
189.5lesser of (a) the product of the cross subsidy reduction aid limit and the district's average
189.6daily membership served or (b) the sum of the product of the cross subsidy reduction aid
189.7percentage, the district's average daily membership served, and the sum of:
189.8(1) $450; plus
189.9(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1
189.10who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
189.11who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
189.12(3) .008 times the district's average daily membership served; plus the product of the
189.13cross subsidy aid percentage and the sum of:
189.14(i) $10,100 times the December 1 child count for the primary disability areas of
189.15autism spectrum disorders, developmental delay, and severely multiply impaired; plus
189.16(ii) $17,500 times the December 1 child count for the primary disability areas of
189.17deaf and hard-of-hearing and emotional or behavioral disorders; plus
189.18(iii) $26,000 times the December 1 child count for the primary disability areas of
189.19developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
189.20physically impaired, visually impaired, and deafblind.
189.21EFFECTIVE DATE.This section is effective the day following final enactment
189.22and applies to revenue for fiscal year 2014 and later.

189.23    Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is
189.24amended to read:
189.25    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
189.26district's special education aid equals the sum of the district's special education initial aid
189.27under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and
189.28the district's excess cost aid under section 125A.79, subdivision 7.
189.29(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
189.30the district's special education initial aid under subdivision 2a and the district's excess cost
189.31aid under section 125A.79, subdivision 5.
189.32(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
189.33a school district must not exceed the sum of the special education aid the district would
189.34have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
189.35and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
190.1127A.47, subdivision 7 , and the product of the district's average daily membership served
190.2and the special education aid increase limit.
190.3(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
190.4aid for a school district must not exceed the sum of: (i) the product of the district's average
190.5daily membership served and the special education aid increase limit and (ii) the product
190.6of the sum of the special education aid the district would have received for fiscal year 2016
190.7under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
190.8to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
190.9the district's average daily membership served for the current fiscal year to the district's
190.10average daily membership served for fiscal year 2016, and the program growth factor.
190.11(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education
190.12aid for a school district, not including a charter school, must not be less than the lesser of
190.13(1) the district's nonfederal special education expenditures for that fiscal year or (2) the
190.14product of the sum of the special education aid the district would have received for fiscal
190.15year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted
190.16according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the
190.17ratio of the district's adjusted daily membership for the current fiscal year to the district's
190.18average daily membership for fiscal year 2016, and the program growth factor.
190.19EFFECTIVE DATE.This section is effective the day following final enactment
190.20and applies to revenue for fiscal year 2014 and later.

190.21    Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is
190.22amended to read:
190.23    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
190.24subdivision apply.
190.25    (a) "Unreimbursed old formula special education expenditures" means:
190.26    (1) old formula special education expenditures for the prior fiscal year; minus
190.27    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section
190.28125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under
190.29section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education
190.30initial aid under section 125A.76, subdivision 2a; minus
190.31(3) the amount of general education revenue, excluding local optional revenue, plus
190.32local optional aid and referendum equalization aid for the prior fiscal year attributable
190.33to pupils receiving special instruction and services outside the regular classroom for
190.34more than 60 percent of the school day for the portion of time the pupils receive special
190.35instruction and services outside the regular classroom, excluding portions attributable to
191.1district and school administration, district support services, operations and maintenance,
191.2capital expenditures, and pupil transportation.
191.3(b) "Unreimbursed nonfederal special education expenditures" means:
191.4(1) nonfederal special education expenditures for the prior fiscal year; minus
191.5(2) special education initial aid under section 125A.76, subdivision 2a; minus
191.6(3) for fiscal year 2016 and later, the amount of general education revenue and
191.7referendum equalization aid for the prior fiscal year attributable to pupils receiving
191.8special instruction and services outside the regular classroom for more than 60 percent of
191.9the school day for the portion of time the pupils receive special instruction and services
191.10outside of the regular classroom, excluding portions attributable to district and school
191.11administration, district support services, operations and maintenance, capital expenditures,
191.12and pupil transportation.
191.13    (c) "General revenue" for a school district means the sum of the general education
191.14revenue according to section 126C.10, subdivision 1, excluding alternative teacher
191.15compensation revenue, minus transportation sparsity revenue minus, local optional
191.16revenue, and total operating capital revenue. "General revenue" for a charter school means
191.17the sum of the general education revenue according to section 124D.11, subdivision 1, and
191.18transportation revenue according to section 124D.11, subdivision 2, excluding alternative
191.19teacher compensation revenue, minus referendum equalization aid minus, transportation
191.20sparsity revenue minus, and operating capital revenue.
191.21EFFECTIVE DATE.This section is effective the day following final enactment
191.22and applies to revenue for fiscal year 2014 and later.

191.23    Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is
191.24amended to read:
191.25    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
191.26 excess cost aid equals the greater of:
191.27    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal
191.28special education expenditures and (ii) 7.0 percent of the district's general revenue;
191.29    (2) 62 percent of the difference between (i) the district's unreimbursed old formula
191.30special education expenditures and (ii) 2.5 percent of the district's general revenue; or
191.31    (3) zero.
191.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
191.33and later.

192.1    Sec. 10. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is
192.2amended to read:
192.3    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
192.4services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
192.5treatment facility by court action in a state that does not have a reciprocity agreement with
192.6the commissioner under section 125A.155, the resident school district shall submit the
192.7balance receive special education out-of-state tuition aid equal to the amount of the tuition
192.8bills, minus (1) the general education revenue, excluding basic skills revenue and the local
192.9optional levy attributable to the pupil, calculated using the resident district's average
192.10general education revenue per adjusted pupil unit, and (2) the referendum equalization aid
192.11attributable to the pupil, calculated using the resident district's average general education
192.12revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special
192.13education contracted services initial revenue aid attributable to the pupil.
192.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
192.15and later.

192.16    Sec. 11. Laws 2013, chapter 116, article 5, section 31, subdivision 8, is amended to read:
192.17    Subd. 8. Special education paperwork cost savings. (a) For the contract to
192.18customize a statewide online reporting system and effect special education paperwork
192.19cost savings:

192.20

$

1,763,000

.....

2014

192.21For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not and
192.22must be expended according to this subdivision for online due process reporting.
192.23(b) To ensure a strong focus on outcomes for children with disabilities informs
192.24federal and state compliance and accountability requirements and to increase opportunities
192.25for special educators and related-services providers to focus on teaching children with
192.26disabilities, the commissioner must customize a streamlined, user-friendly statewide
192.27online system, with a single model online form, for effectively and efficiently collecting
192.28and reporting required special education-related data to individuals with a legitimate
192.29educational interest and who are authorized by law to access the data.
192.30(c) The commissioner must consult with qualified experts, including information
192.31technology specialists, licensed special education teachers and directors of special
192.32education, related-services providers, third-party vendors, a designee of the commissioner
192.33of human services, parents of children with disabilities, representatives of advocacy groups
192.34representing children with disabilities, and representatives of school districts and special
193.1education cooperatives on integrating, field testing, customizing, and sustaining this simple,
193.2easily accessible, efficient, and effective online data system for uniform statewide reporting
193.3of required due process compliance data. Among other outcomes, the system must:
193.4    (1) reduce special education teachers' paperwork burden and thereby increase the
193.5teachers' opportunities to focus on teaching children;
193.6(2) to the extent authorized by chapter 13 or other applicable state or federal law
193.7governing access to and dissemination of educational records, provide for efficiently
193.8and effectively transmitting the records of all transferring children with disabilities,
193.9including highly mobile and homeless children with disabilities, among others, and avoid
193.10fragmented service delivery;
193.11(3) address language and other barriers and disparities that prevent parents from
193.12understanding and communicating information about the needs of their children with
193.13disabilities; and
193.14(4) help continuously improve the interface among the online systems serving
193.15children with disabilities in order to maintain and reinforce the children's ability to learn.
193.16(d) The commissioner must use the federal Office of Special Education Programs
193.17model forms for the (1) individualized education program, (2) notice of procedural
193.18safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate
193.19and customize a state-sponsored universal special education online case management
193.20system, consistent with the requirements of state law and this subdivision for customizing
193.21a statewide online reporting system. The commissioner must use a request for proposal
193.22process to contract for the technology and software needed for customizing the online
193.23system in order for the system to be fully functional, consistent with the requirements of
193.24this subdivision. This online system must be made available to school districts without
193.25charge beginning in the 2015-2016 school year. All actions in which data in the system
193.26are entered, updated, accessed, or shared or disseminated outside of the system, must be
193.27recorded in a data audit trail. The audit trail must identify the user responsible for the
193.28action, and the date and time the action occurred. Data contained in the audit trail maintain
193.29the same classification as the underlying data that was affected by the action, and may be
193.30accessed by the responsible authority at any time for purposes of auditing the system's
193.31user activity and security safeguards. For the 2015-2016 through 2017-2018 school years,
193.32school districts may use this online system or may contract with an outside vendor for
193.33compliance reporting. Beginning in the 2018-2019 school year and later, school districts
193.34must use this online system for compliance reporting.
193.35(e) Consistent with this subdivision, the commissioner must establish a public
193.36Internet Web interface to provide information to educators, parents, and the public about
194.1the form and content of required special education reports, to respond to queries from
194.2educators, parents, and the public about specific aspects of special education reports and
194.3reporting, and to use the information garnered from the interface to streamline and revise
194.4special education reporting on the online system under this subdivision. The public Internet
194.5Web interface must not provide access to the educational records of any individual child.
194.6(f) The commissioner annually by February 1 must submit to the legislature a report
194.7on the status, recent changes, and sustainability of the online system under this subdivision.
194.8EFFECTIVE DATE.This section is effective the day following final enactment.

194.9    Sec. 12. RULEMAKING AUTHORITY; SPECIAL EDUCATION TASK FORCE
194.10RECOMMENDATIONS.
194.11The commissioner of education must use the expedited rulemaking process under
194.12Minnesota Statutes, section 14.389, including subdivision 5, to make the rule changes
194.13recommended by the Special Education Case Load and Rule Alignment Task Force in
194.14its 2014 report entitled "Recommendations for Special Education Case Load and Rule
194.15Alignment" submitted to the legislature on February 15, 2014.
194.16EFFECTIVE DATE.This section is effective the day following final enactment.

194.17    Sec. 13. APPROPRIATION.
194.18    Subdivision 1. Department of Education. The sums indicated in this section are
194.19appropriated from the general fund to the Department of Education for the fiscal years
194.20designated.
194.21    Subd. 2. Department assistance. For the commissioner of education to assist
194.22school districts in meeting the needs of children who have experienced a high use of prone
194.23restraints, consistent with Minnesota Statutes 2013 Supplement, section 125A.0942:

194.24

$

250,000

.....

2015

194.25The commissioners of education and human services, or their designees, must
194.26discuss coordinating use of funds and personnel available for this purpose within their
194.27respective departments. This is a onetime appropriation.


194.30    Section 1. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
195.1    Subdivision 1. Schools may be jointly operated. Two or more school districts may
195.2agree to jointly operate a secondary facility. The districts may choose to operate the
195.3facility according to a joint powers agreement under section 123A.78 or 471.59.
195.4    Subd. 2. Expanded program offerings. A jointly operated secondary program
195.5seeking funding under section 123A.485 must demonstrate to the commissioner's
195.6satisfaction that the jointly operated program provides enhanced learning opportunities and
195.7broader curriculum offerings to the students attending that program. The commissioner
195.8must approve or disapprove a cooperative secondary program within 60 days of receipt of
195.9an application.
195.10    Subd. 3. Transfer of employees. If an employee is transferred between two
195.11employer members of the joint powers agreement under this section, the employee's
195.12length of service under section 122A.40, subdivision 5, remains uninterrupted. The
195.13employee shall receive credit on the receiving district's salary schedule for the employee's
195.14educational attainment and years of continuous service in the sending district, or shall
195.15receive a comparable salary, whichever is greater. The employee shall receive credit for
195.16accrued sick leave and rights to severance benefits as if the employee had been employed
195.17by the receiving district during the employee's years of employment in the sending district.
195.18    Subd. 4. Revenue. An approved program that is jointly operated under this section
195.19is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
195.20123A.44 to 123A.446.
195.21    Subd. 5. Duty to maintain elementary and secondary schools met. A school
195.22district operating a joint facility under this section meets the requirements of section
195.23123A.64.
195.24    Subd. 6. Estimated market value limit exclusion. Bonds for a cooperative facility
195.25operated under this section issued by a member school district are not subject to the net
195.26debt limit under section 475.53, subdivision 4.
195.27    Subd. 7. Allocation of levy authority for joint facility. For purposes of determining
195.28each member district's school levy, a jointly operated secondary program may allocate
195.29program costs to each member district according to the joint powers agreement and each
195.30member district may include those costs in its tax levy. The joint powers agreement may
195.31choose to allocate costs on any basis adopted as part of the joint powers agreement.
195.32    Subd. 8. Effect of consolidation. The joint powers agreement may allow member
195.33school districts that choose to consolidate to continue to certify levies separately based on
195.34each component district's characteristics.
195.35    Subd. 9. Bonds. A joint powers district formed under this section may issue bonds
195.36according to section 123A.78 or its member districts may issue bonds individually after
196.1complying with this subdivision. The joint powers board must submit the project for
196.2review and comment under section 123B.71. The joint powers board must hold a hearing
196.3on the proposal. If the bonds are not issued under section 123A.78, each member district
196.4of the joint powers district must submit the question of authorizing borrowing of funds for
196.5the project to the voters of the district at a special election. The question submitted shall
196.6state the total amount of funding needed from that district. The member district may issue
196.7the bonds according to chapter 475 and certify the levy required by section 475.61 only if
196.8a majority of those voting on the question in that district vote in the affirmative and only
196.9after the board has adopted a resolution pledging the full faith and credit of that unit. The
196.10resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
196.11shortages that, together with other funds available, would allow the member school board
196.12to pay the principal and interest on the obligations. The clerk of the joint powers board
196.13must certify the vote of any bond elections to the commissioner. Bonds issued under this
196.14section first qualify for debt service equalization aid in fiscal year 2018.
196.15    Subd. 10. Election. A district entering into a joint powers agreement under this
196.16section may conduct a referendum seeking approval for a new facility. This election may
196.17be held separately or at the same time as a bond election under subdivision 9. If the
196.18election is held at the same time, the questions may be asked separately or as a conjunctive
196.19question. The question must be approved by a majority of those voting on the question.
196.20If asked separately and the question fails, a district may not proceed with the sale of
196.21bonds according to subdivision 9.
196.22EFFECTIVE DATE.This section is effective the day following final enactment.

196.23    Sec. 2. Minnesota Statutes 2012, section 123A.485, is amended to read:
196.24123A.485 CONSOLIDATION TRANSITION REVENUE AID.
196.25    Subdivision 1. Eligibility and use. A district that operates a cooperative facility
196.26under section 123A.482 or that has been reorganized after June 30, 1994, under section
196.27123A.48 is eligible for consolidation transition revenue. Revenue is equal to the sum of
196.28 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue
196.29 aid may only be used according to this section. Revenue must be used for the following
196.30purposes and may be distributed among these purposes at the discretion of the district or
196.31the governing board of the cooperative facility:
196.32(1) to offer early retirement incentives as provided by section 123A.48, subdivision
196.3323 ;
196.34(2) to reduce operating debt as defined in section 123B.82;
197.1(3) to enhance learning opportunities for students in the reorganized district; and
197.2(4) to repay building debt; or
197.3(5) for other costs incurred in the reorganization.
197.4Revenue received and utilized under clause (3) or (4) (5) may be expended for
197.5operating, facilities, and/or equipment.
197.6    Subd. 2. Aid. (a) Consolidation transition aid is equal to $200 $300 times the
197.7number of resident adjusted pupil units in the newly created cooperative facility under
197.8section 123A.482 or the consolidated district in the year of consolidation and $100 times
197.9the number of resident pupil units in the first year following the year of consolidation
197.10 under section 123A.48. The number of pupil units used to calculate aid in either year
197.11shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts
197.12consolidating July 1, 1995, and thereafter A district may receive aid under this section for
197.13not more than five years except as provided in subdivision 4.
197.14(b) If the total appropriation for consolidation transition aid for any fiscal year, plus
197.15any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all
197.16districts the full amount of aid earned, the department must first pay the districts in the first
197.17year following the year of consolidation the full amount of aid earned and distribute any
197.18remaining funds to the newly created districts in the first year of consolidation.
197.19    Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs
197.20of the district under section 123A.48, subdivision 23, the district may levy the difference
197.21over a period of time not to exceed three years.
197.22    Subd. 4. New districts. If a district enters into a cooperative secondary facilities
197.23program or consolidates with another district that has received aid under section 123A.39,
197.24subdivision 3 , or 123A.485 for a combination or consolidation taking effect within
197.25six years of the effective date of the new consolidation or the start of the cooperative
197.26secondary facilities program, only the pupil units in the district or districts not previously
197.27 cooperating or reorganized must be counted for aid purposes under subdivision 2. If
197.28two or more districts consolidate and all districts received aid under subdivision 2 for a
197.29consolidation taking effect within six years of the effective date of the new consolidation,
197.30only one quarter of the pupil units in the newly created district must be used to determine
197.31aid under subdivision 2.
197.32EFFECTIVE DATE.This section is effective for state aid for fiscal year 2017
197.33and later.

198.1    Sec. 3. Minnesota Statutes 2012, section 123A.64, is amended to read:
198.2123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
198.3SCHOOLS.
198.4Each district must maintain classified elementary and secondary schools, grades 1
198.5through 12, unless the district is exempt according to section 123A.61 or 123A.62, has
198.6made an agreement with another district or districts as provided in sections 123A.30,
198.7123A.32 , or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a
198.8grant under sections 123A.441 to 123A.446, or has formed a cooperative under section
198.9123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or
198.10123A.32 must operate a school with the number of grades required by those sections. A
198.11district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or
198.12has received a grant under sections 123A.441 to 123A.446 must operate a school for the
198.13grades not included in the agreement, but not fewer than three grades.

198.14    Sec. 4. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
198.15amended to read:
198.16    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
198.17revenue of a district is defined as follows:
198.18    (1) the amount needed to produce between five and six percent in excess of the
198.19amount needed to meet when due the principal and interest payments on the obligations
198.20of the district for eligible projects according to subdivision 2, including the amounts
198.21necessary for repayment of energy loans according to section 216C.37 or sections 298.292
198.22to 298.298, debt service loans and capital loans, lease purchase payments under section
198.23126C.40, subdivision 2 , alternative facilities levies under section 123B.59, subdivision
198.245 , paragraph (a), minus
198.25    (2) the amount of debt service excess levy reduction for that school year calculated
198.26according to the procedure established by the commissioner.
198.27    (b) The obligations in this paragraph are excluded from eligible debt service revenue:
198.28    (1) obligations under section 123B.61;
198.29    (2) the part of debt service principal and interest paid from the taconite environmental
198.30protection fund or Douglas J. Johnson economic protection trust, excluding the portion of
198.31taconite payments from the Iron Range school consolidation and cooperatively operated
198.32school account under section 298.28, subdivision 7a;
198.33    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
198.34amended by Laws 1992, chapter 499, article 5, section 24; and
198.35    (4) obligations under section 123B.62; and
199.1    (5) obligations equalized under section 123B.535.
199.2    (c) For purposes of this section, if a preexisting school district reorganized under
199.3sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
199.4of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
199.5service equalization aid must be computed separately for each of the preexisting districts.
199.6    (d) For purposes of this section, the adjusted net tax capacity determined according
199.7to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
199.8generally exempted from ad valorem taxes under section 272.02, subdivision 64.
199.9EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

199.10    Sec. 5. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 5, is
199.11amended to read:
199.12    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
199.13district equals the sum of the first tier equalized debt service levy and the second tier
199.14equalized debt service levy.
199.15(b) A district's first tier equalized debt service levy equals the district's first tier debt
199.16service equalization revenue times the lesser of one or the ratio of:
199.17(1) the quotient derived by dividing the adjusted net tax capacity of the district for
199.18the year before the year the levy is certified by the adjusted pupil units in the district for
199.19the school year ending in the year prior to the year the levy is certified; to
199.20(2) $3,550 $4,970.
199.21(c) A district's second tier equalized debt service levy equals the district's second tier
199.22debt service equalization revenue times the lesser of one or the ratio of:
199.23(1) the quotient derived by dividing the adjusted net tax capacity of the district for
199.24the year before the year the levy is certified by the adjusted pupil units in the district for
199.25the school year ending in the year prior to the year the levy is certified; to
199.26(2) $7,900 $8,000.
199.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
199.28and later.

199.29    Sec. 6. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
199.30    Subdivision 1. Definitions. (a) For purposes of this section, the eligible natural
199.31disaster debt service revenue of a district is defined as the amount needed to produce
199.32between five and six percent in excess of the amount needed to meet when due the
200.1principal and interest payments on the obligations of the district that would otherwise
200.2qualify under section 123B.53 under the following conditions:
200.3(1) the district was impacted by a natural disaster event or area occurring January
200.41, 2005, or later, as declared by the President of the United States of America, which is
200.5eligible for Federal Emergency Management Agency payments;
200.6(2) the natural disaster caused $500,000 or more in damages to school district
200.7buildings; and
200.8(3) the repair and replacement costs are not covered by insurance payments or
200.9Federal Emergency Management Agency payments.
200.10(b) For purposes of this section, the adjusted net tax capacity equalizing factor
200.11equals the quotient derived by dividing the total adjusted net tax capacity of all school
200.12districts in the state for the year before the year the levy is certified by the total number of
200.13adjusted pupil units in the state for the year prior to the year the levy is certified.
200.14    (c) For purposes of this section, the adjusted net tax capacity determined according
200.15to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
200.16generally exempted from ad valorem taxes under section 272.02, subdivision 64.
200.17    Subd. 2. Notification. A district eligible for natural disaster debt service
200.18equalization revenue under subdivision 1 must notify the commissioner of the amount of
200.19its intended natural disaster debt service revenue calculated under subdivision 1 for all
200.20bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
200.21    Subd. 3. Natural disaster debt service equalization revenue. The debt service
200.22equalization revenue of a district equals the greater of zero or the eligible debt service
200.23revenue, minus the greater of zero or the difference between:
200.24(1) the amount raised by a levy of ten percent times the adjusted net tax capacity
200.25of the district; and
200.26(2) the district's eligible debt service revenue under section 123B.53.
200.27    Subd. 4. Equalized natural disaster debt service levy. A district's equalized
200.28natural disaster debt service levy equals the district's natural disaster debt service
200.29equalization revenue times the lesser of one or the ratio of:
200.30(1) the quotient derived by dividing the adjusted net tax capacity of the district for
200.31the year before the year the levy is certified by the adjusted pupil units in the district for
200.32the school year ending in the year prior to the year the levy is certified; to
200.33(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
200.34    Subd. 5. Natural disaster debt service equalization aid. A district's natural
200.35disaster debt service equalization aid equals the difference between the district's natural
201.1disaster debt service equalization revenue and the district's equalized natural disaster
201.2debt service levy.
201.3    Subd. 6. Natural disaster debt service equalization aid payment schedule. Debt
201.4service equalization aid must be paid according to section 127A.45, subdivision 10.
201.5EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
201.6revenue for fiscal year 2017 and later.

201.7    Sec. 7. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
201.8123B.54 DEBT SERVICE APPROPRIATION.
201.9    (a) The amount necessary to make debt service equalization aid payments under
201.10section sections 123B.53 and 123B.535 is annually appropriated from the general fund to
201.11the commissioner of education.
201.12    (b) The appropriations in paragraph (a) must be reduced by the amount of any
201.13money specifically appropriated for the same purpose in any year from any state fund.
201.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
201.15and later.

201.16    Sec. 8. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:
201.17    Subd. 8. Review and comment. A school district, a special education cooperative,
201.18or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
201.19initiate an installment contract for purchase or a lease agreement, hold a referendum for
201.20bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
201.21facility that requires an expenditure in excess of $500,000 per school site if it has a capital
201.22loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital
201.23loan outstanding, prior to review and comment by the commissioner. The commissioner
201.24may exempt A facility addition, maintenance project, or remodeling project funded only
201.25with general education aid and levy revenue, deferred maintenance revenue, alternative
201.26facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond
201.27proceeds, or health and safety revenue is exempt from this provision after reviewing a
201.28written request from a school district describing the scope of work. A capital project under
201.29section 123B.63 addressing only technology is exempt from this provision if the district
201.30submits a school board resolution stating that funds approved by the voters will be used
201.31only as authorized in section 126C.10, subdivision 14. A school board shall not separate
201.32portions of a single project into components to avoid the requirements of this subdivision.

202.1    Sec. 9. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
202.2    Subd. 9. Information required. A school board proposing to construct, expand,
202.3or remodel a facility described in that requires a review and comment under subdivision
202.48 shall submit to the commissioner a proposal containing information including at least
202.5the following:
202.6(1) the geographic area and population to be served, preschool through grade 12
202.7student enrollments for the past five years, and student enrollment projections for the
202.8next five years;
202.9(2) a list of existing facilities by year constructed, their uses, and an assessment of
202.10the extent to which alternate facilities are available within the school district boundaries
202.11and in adjacent school districts;
202.12(3) a list of the specific deficiencies of the facility that demonstrate the need for a
202.13new or renovated facility to be provided, the process used to determine the deficiencies, a
202.14list of those deficiencies that will and will not be addressed by the proposed project, and a
202.15list of the specific benefits that the new or renovated facility will provide to the students,
202.16teachers, and community users served by the facility;
202.17(4) the relationship of the project to any priorities established by the school district,
202.18educational cooperatives that provide support services, or other public bodies in the
202.19service area;
202.20(5) a description of the pedestrian, bicycle, and transit connections between the
202.21school and nearby residential areas that make it easier for children, teachers, and parents
202.22to get to the school by walking, bicycling, and taking transit;
202.23(6) a specification of how the project maximizes the opportunity for cooperative use
202.24of existing park, recreation, and other public facilities and whether and how the project
202.25will increase collaboration with other governmental or nonprofit entities;
202.26(7) (4) a description of the project, including the specification of site and outdoor
202.27space acreage and square footage allocations for classrooms, laboratories, and support
202.28spaces; estimated expenditures for the major portions of the project; and the dates the
202.29project will begin and be completed;
202.30(8) (5) a specification of the source of financing the project, including applicable
202.31statutory citations; the scheduled date for a bond issue or school board action; a schedule
202.32of payments, including debt service equalization aid; and the effect of a bond issue on
202.33local property taxes by the property class and valuation;
202.34(9) an analysis of how the proposed new or remodeled facility will affect school
202.35district operational or administrative staffing costs, and how the district's operating budget
202.36will cover any increased operational or administrative staffing costs;
203.1(10) a description of the consultation with local or state transportation officials
203.2on multimodal school site access and safety issues, and the ways that the project will
203.3address those issues;
203.4(11) a description of how indoor air quality issues have been considered and a
203.5certification that the architects and engineers designing the facility will have professional
203.6liability insurance;
203.7(12) as required under section 123B.72, for buildings coming into service after July 1,
203.82002, a certification that the plans and designs for the extensively renovated or new facility's
203.9heating, ventilation, and air conditioning systems will meet or exceed code standards; will
203.10provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and
203.11will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
203.12(13) a specification of any desegregation requirements that cannot be met by any
203.13other reasonable means;
203.14(14) a specification of how the facility will utilize environmentally sustainable
203.15school facility design concepts;
203.16(15) a description of how the architects and engineers have considered the American
203.17National Standards Institute Acoustical Performance Criteria, Design Requirements
203.18and Guidelines for Schools of the maximum background noise level and reverberation
203.19times; and
203.20    (16) any existing information from the relevant local unit of government about the
203.21cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
203.22roads, and sidewalks.
203.23    (6) documents obligating the school district and contractors to comply with items (i)
203.24to (vii) in planning and executing the project:
203.25    (i) section 471.346 governing municipal contracts;
203.26    (ii) sustainable design;
203.27    (iii) school facility commissioning under section 123B.72 certifying the plans and
203.28designs for the heating, ventilating, air conditioning, and air filtration for an extensively
203.29renovated or new facility meet or exceed current code standards, including the ASHRAE
203.30air filtration standard 52.1;
203.31    (iv) American National Standards Institute Acoustical Performance Criteria, Design
203.32Requirements and Guidelines for Schools on maximum background noise level and
203.33reverberation times;
203.34    (v) State Fire Code;
203.35    (vi) chapter 326B governing building codes; and
204.1    (vii) consultation with affected government units about the impact of the project
204.2on utilities, roads, sewers, sidewalks, retention ponds, school bus and automobile traffic,
204.3access to mass transit, and safe access for pedestrians and cyclists.

204.4    Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d,
204.5is amended to read:
204.6    Subd. 2d. Declining enrollment revenue. (a) A school district's declining
204.7enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the
204.8formula allowance for that year and (2) the difference between the adjusted pupil units for
204.9the preceding year and the adjusted pupil units for the current year.
204.10(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil
204.11enrolled at the Crosswinds school shall not generate declining enrollment revenue for the
204.12district or charter school in which the pupil was last counted in average daily membership.

204.13    Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
204.14amended to read:
204.15    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
204.16pursuant to subdivision 1 must be made prior to the reductions in clause (2).
204.17(2) Notwithstanding any other law to the contrary, districts that have revenue
204.18pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
204.19under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
204.20to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon
204.21severed mineral values must reduce the levies authorized by this chapter and chapters
204.22120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
204.23previous year's revenue specified under this clause and the amount attributable to the same
204.24production year distributed to the cities and townships within the school district under
204.25section 298.28, subdivision 2, paragraph (c).
204.26(3) The amount of any voter approved referendum, facilities down payment, and
204.27debt levies shall not be reduced by more than 50 percent under this subdivision, except
204.28that payments under section 298.28, subdivision 7a, may reduce the debt service levy by
204.29more than 50 percent. In administering this paragraph, the commissioner shall first reduce
204.30the nonvoter approved levies of a district; then, if any payments, severed mineral value
204.31tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
204.32reduce any voter approved referendum levies authorized under section 126C.17; then, if
204.33any payments, severed mineral value tax revenue or recognized revenue under paragraph
204.34(2) remains, the commissioner shall reduce any voter approved facilities down payment
205.1levies authorized under section 123B.63 and then, if any payments, severed mineral value
205.2tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
205.3reduce any voter approved debt levies.
205.4(4) Before computing the reduction pursuant to this subdivision of the health and
205.5safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
205.6shall ascertain from each affected school district the amount it proposes to levy under
205.7each section or subdivision. The reduction shall be computed on the basis of the amount
205.8so ascertained.
205.9(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
205.10limitation in paragraph (3), an amount equal to the excess must be distributed from the
205.11school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
205.12year to the cities and townships within the school district in the proportion that their
205.13taxable net tax capacity within the school district bears to the taxable net tax capacity of
205.14the school district for property taxes payable in the year prior to distribution. No city or
205.15township shall receive a distribution greater than its levy for taxes payable in the year prior
205.16to distribution. The commissioner of revenue shall certify the distributions of cities and
205.17towns under this paragraph to the county auditor by September 30 of the year preceding
205.18distribution. The county auditor shall reduce the proposed and final levies of cities and
205.19towns receiving distributions by the amount of their distribution. Distributions to the cities
205.20and towns shall be made at the times provided under section 298.27.

205.21    Sec. 12. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:
205.22    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
205.23375.192 , or otherwise, the net tax capacity or referendum market value of any district for
205.24any taxable year is changed after the taxes for that year have been spread by the county
205.25auditor and the local tax rate as determined by the county auditor based upon the original
205.26net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
205.27prior to February 1 of each year, certify to the commissioner of education the amount of
205.28any resulting net revenue loss that accrued to the district during the preceding year. Each
205.29year, the commissioner shall pay an abatement adjustment to the district in an amount
205.30calculated according to the provisions of this subdivision. This amount shall be deducted
205.31from the amount of the levy authorized by section 126C.46. The amount of the abatement
205.32adjustment must be the product of:
205.33    (1) the net revenue loss as certified by the county auditor, times
205.34    (2) the ratio of:
206.1    (i) the sum of the amounts of the district's certified levy in the third preceding year
206.2according to the following:
206.3    (A) section 123B.57, if the district received health and safety aid according to that
206.4section for the second preceding year;
206.5    (B) section 124D.20, if the district received aid for community education programs
206.6according to that section for the second preceding year;
206.7    (C) section 124D.135, subdivision 3, if the district received early childhood family
206.8education aid according to section 124D.135 for the second preceding year;
206.9    (D) section 126C.17, subdivision 6, if the district received referendum equalization
206.10aid according to that section for the second preceding year;
206.11    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
206.12according to section 126C.10, subdivision 13b, in the second preceding year;
206.13    (F) section 126C.10, subdivision 29, if the district received equity aid according to
206.14section 126C.10, subdivision 30, in the second preceding year;
206.15    (G) section 126C.10, subdivision 32, if the district received transition aid according
206.16to section 126C.10, subdivision 33, in the second preceding year;
206.17    (H) section 123B.53, subdivision 5, if the district received debt service equalization
206.18aid according to section 123B.53, subdivision 6, in the second preceding year;
206.19    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
206.20service equalization aid according to section 123B.535, subdivision 5, in the second
206.21preceding year;
206.22    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
206.23according to section 124D.22, subdivision 4, in the second preceding year;
206.24    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
206.25aid according to section 123B.591, subdivision 4, in the second preceding year; and
206.26    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
206.27compensation equalization aid according to section 126C.10, subdivision 36, paragraph
206.28(a), in the second preceding year; to
206.29    (ii) the total amount of the district's certified levy in the third preceding December,
206.30plus or minus auditor's adjustments.
206.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
206.32and later.

206.33    Sec. 13. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:
206.34    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
206.35district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
207.1decertification of a tax increment district, the school district's aid and levy limitations
207.2must be adjusted for the fiscal year in which the excess tax increment is paid under the
207.3provisions of this subdivision.
207.4    (b) An amount must be subtracted from the district's aid for the current fiscal year
207.5equal to the product of:
207.6    (1) the amount of the payment of excess tax increment to the district, times
207.7    (2) the ratio of:
207.8    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
207.9the excess tax increment is paid according to the following:
207.10    (A) section 123B.57, if the district received health and safety aid according to that
207.11section for the second preceding year;
207.12    (B) section 124D.20, if the district received aid for community education programs
207.13according to that section for the second preceding year;
207.14    (C) section 124D.135, subdivision 3, if the district received early childhood family
207.15education aid according to section 124D.135 for the second preceding year;
207.16    (D) section 126C.17, subdivision 6, if the district received referendum equalization
207.17aid according to that section for the second preceding year;
207.18    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
207.19according to section 126C.10, subdivision 13b, in the second preceding year;
207.20    (F) section 126C.10, subdivision 29, if the district received equity aid according to
207.21section 126C.10, subdivision 30, in the second preceding year;
207.22    (G) section 126C.10, subdivision 32, if the district received transition aid according
207.23to section 126C.10, subdivision 33, in the second preceding year;
207.24    (H) section 123B.53, subdivision 5, if the district received debt service equalization
207.25aid according to section 123B.53, subdivision 6, in the second preceding year;
207.26    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
207.27service equalization aid according to section 123B.535, subdivision 5, in the second
207.28preceding year;
207.29    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
207.30according to section 124D.22, subdivision 4, in the second preceding year;
207.31    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
207.32aid according to section 123B.591, subdivision 4, in the second preceding year; and
207.33    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
207.34compensation equalization aid according to section 126C.10, subdivision 36, paragraph
207.35(a), in the second preceding year; to
208.1    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
208.2auditor's adjustments.
208.3    (c) An amount must be subtracted from the school district's levy limitation for the
208.4next levy certified equal to the difference between:
208.5    (1) the amount of the distribution of excess increment; and
208.6    (2) the amount subtracted from aid pursuant to clause (a).
208.7    If the aid and levy reductions required by this subdivision cannot be made to the aid
208.8for the fiscal year specified or to the levy specified, the reductions must be made from
208.9aid for subsequent fiscal years, and from subsequent levies. The school district must use
208.10the payment of excess tax increment to replace the aid and levy revenue reduced under
208.11this subdivision.
208.12    (d) This subdivision applies only to the total amount of excess increments received
208.13by a district for a calendar year that exceeds $25,000.
208.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
208.15and later.

208.16    Sec. 14. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:
208.17    Subd. 3. Powers and duties of board. (a) The board has the powers necessary for
208.18the care, management, and control of the Perpich Center for Arts Education and any other
208.19school authorized in this chapter, and all its their real and personal property. The powers
208.20shall include, but are not limited to, those listed in this subdivision.
208.21(b) The board may employ and discharge necessary employees, and contract for
208.22other services to ensure the efficient operation of the Center for Arts Education and any
208.23other school authorized in this chapter.
208.24(c) The board may receive and award grants. The board may establish a charitable
208.25foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for
208.26educational purposes and hold, manage, invest, and dispose of them and the proceeds
208.27and income of them according to the terms and conditions of the gift, grant, bequest, or
208.28devise and its acceptance. The board must adopt internal procedures to administer and
208.29monitor aids and grants.
208.30(d) The board may establish or coordinate evening, continuing education, extension,
208.31and summer programs for teachers and pupils.
208.32(e) The board may identify pupils who have artistic talent, either demonstrated or
208.33potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more
208.34than one art form.
208.35(f) The board must educate pupils with artistic talent by providing:
209.1(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th
209.2grades. The total number of pupils accepted under this clause and clause (2) shall not
209.3exceed 310;
209.4(2) additional instruction to pupils for a 13th grade. Pupils eligible for this
209.5instruction are those enrolled in 12th grade who need extra instruction and who apply
209.6to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes
209.7established by the board;
209.8(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;
209.9(4) summer arts institutes for pupils in grades 9 to 12;
209.10(5) artist mentor and extension programs in regional sites; and
209.11(6) teacher education programs for indirect curriculum delivery.
209.12(g) The board may determine the location for the Perpich Center for Arts Education
209.13and any additional facilities related to the center, including the authority to lease a
209.14temporary facility.
209.15(h) The board must plan for the enrollment of pupils on an equal basis from each
209.16congressional district.
209.17(i) The board may establish task forces as needed to advise the board on policies and
209.18issues. The task forces expire as provided in section 15.059, subdivision 6.
209.19(j) The board may request the commissioner of education for assistance and services.
209.20(k) The board may enter into contracts with other public and private agencies
209.21and institutions for residential and building maintenance services if it determines that
209.22these services could be provided more efficiently and less expensively by a contractor
209.23than by the board itself. The board may also enter into contracts with public or private
209.24agencies and institutions, school districts or combinations of school districts, or service
209.25cooperatives to provide supplemental educational instruction and services.
209.26(l) The board may provide or contract for services and programs by and for the
209.27Center for Arts Education, including a store, operating in connection with the center;
209.28theatrical events; and other programs and services that, in the determination of the board,
209.29serve the purposes of the center.
209.30(m) The board may provide for transportation of pupils to and from the Center for
209.31Arts Education for all or part of the school year, as the board considers advisable and
209.32subject to its rules. Notwithstanding any other law to the contrary, the board may charge a
209.33reasonable fee for transportation of pupils. Every driver providing transportation of pupils
209.34under this paragraph must possess all qualifications required by the commissioner of
209.35education. The board may contract for furnishing authorized transportation under rules
209.36established by the commissioner of education and may purchase and furnish gasoline to a
210.1contract carrier for use in the performance of a contract with the board for transportation
210.2of pupils to and from the Center for Arts Education. When transportation is provided,
210.3scheduling of routes, establishment of the location of bus stops, the manner and method of
210.4transportation, the control and discipline of pupils, and any other related matter is within
210.5the sole discretion, control, and management of the board.
210.6(n) The board may provide room and board for its pupils. If the board provides room
210.7and board, it shall charge a reasonable fee for the room and board. The fee is not subject
210.8to chapter 14 and is not a prohibited fee according to sections 123B.34 to 123B.39.
210.9(o) The board may establish and set fees for services and programs. If the board sets
210.10fees not authorized or prohibited by the Minnesota public school fee law, it may do so
210.11without complying with the requirements of section 123B.38.
210.12(p) The board may apply for all competitive grants administered by agencies of the
210.13state and other government or nongovernment sources.
210.14EFFECTIVE DATE.This section is effective the day following final enactment.

210.15    Sec. 15. Minnesota Statutes 2012, section 129C.10, is amended by adding a
210.16subdivision to read:
210.17    Subd. 5a. Interdistrict voluntary integration magnet program. Notwithstanding
210.18Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate
210.19an interdistrict integration magnet program according to section 129C.30. For fiscal year
210.202016 and later, the board must have an approved achievement and integration plan and
210.21budget under section 124D.861.
210.22EFFECTIVE DATE.This section is effective the day following final enactment.

210.23    Sec. 16. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.
210.24    Subdivision 1. Definitions. (a) The following terms having the meanings given
210.25them for this chapter.
210.26(b) "Board" means the board of directors of the Perpich Center for Arts Education.
210.27(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during
210.28the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration
210.29District.
210.30    Subd. 2. Board to operate the Crosswinds school. The board may operate the
210.31Crosswinds school with the powers and duties granted to it under this chapter. A student
210.32may apply to the Crosswinds school under section 124D.03 and the Crosswinds school
210.33may accept students under that section.
211.1    Subd. 3. General education funding. General education revenue must be paid to
211.2the Crosswinds school as though it were a district. The general education revenue for each
211.3adjusted pupil unit is the state average general education revenue per pupil unit, plus
211.4the referendum equalization aid allowance in the pupil's district of residence, minus an
211.5amount equal to the product of the formula allowance according to section 126C.10,
211.6subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue,
211.7extended time revenue, pension adjustment revenue, transition revenue, and transportation
211.8sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue,
211.9pension adjustment revenue, and transition revenue as though the school were a school
211.10district. The general education revenue for each extended time pupil unit equals $4,794.
211.11    Subd. 4. Special education funding. Special education aid must be paid to the
211.12Crosswinds school according to sections 125A.76 and 125A.79, as though it were a
211.13school district. The special education aid paid to the Crosswinds school shall be adjusted
211.14as follows:
211.15(1) if the Crosswinds school does not receive general education revenue on behalf of
211.16the student according to subdivision 3, the aid shall be adjusted as provided in section
211.17125A.11; or
211.18(2) if the Crosswinds school receives general education revenue on behalf of the
211.19student according to subdivision 3, the aid shall be adjusted as provided in section
211.20127A.47, subdivision 7, paragraphs (b) to (d).
211.21    Subd. 5. Pupil transportation. (a) For fiscal year 2015 only, a member district of
211.22Joint Powers District No. 6067, East Metro Integration District, must transport pupils
211.23enrolled at the Crosswinds school in the same manner as they were transported in fiscal
211.24year 2014.
211.25(b) Pupil transportation expenses under this section are reimbursable under section
211.26124D.87.
211.27    Subd. 6. Achievement and integration aid. For fiscal year 2016 and later, the
211.28Crosswinds school is eligible for achievement and integration aid under section 124D.862
211.29as if it were a school district.
211.30    Subd. 7. Other aids, grants, revenue. (a) The Crosswinds school is eligible to
211.31receive other aids, grants, and revenue according to chapters 120A to 129C as though it
211.32were a district.
211.33(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a
211.34grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue
211.35replaces levy revenue that is not general education revenue, except as otherwise provided
211.36in this section.
212.1(c) Federal aid received by the state must be paid to the school if it qualifies for
212.2the aid as though it were a school district.
212.3(d) In the year-end report to the commissioner of education, the Crosswinds school
212.4shall report the total amount of funds received from grants and other outside sources.
212.5    Subd. 8. Year-round programming. The Crosswinds school may operate as a
212.6flexible learning year program under sections 124D.12 to 124D.127.
212.7    Subd. 9. Data requirements. The commissioner of education shall require the
212.8Crosswinds school to follow the budget and accounting procedures required for school
212.9districts and the Crosswinds school shall report all data to the Department of Education in
212.10the form and manner required by the commissioner.

212.11    Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 5, is amended to read:
212.12    Subd. 5. Equity in telecommunications access. For equity in telecommunications
212.13access:

212.14		$	3,750,000	.....	2014
212.15 212.16		$	3,750,000 8,750,000	.....	2015

212.17If the appropriation amount is insufficient, the commissioner shall reduce the
212.18reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
212.19revenue for fiscal years 2014 and 2015 shall be prorated.
212.20Any balance in the first year does not cancel but is available in the second year.
212.21 The base appropriation for this program for fiscal years 2016 and 2017 is $8,750,000
212.22for each year.

212.23    Sec. 18. HARAMBEE COMMUNITY SCHOOL TRANSITION.
212.24    Subdivision 1. Facilities. Notwithstanding the appropriations of state general
212.25obligation bond proceeds in Laws 1994, chapter 643, section 14, subdivision 7, to Joint
212.26Powers District No. 6067, East Metro Integration District, to acquire and better the
212.27Harambee community school, in Maplewood, the real and personal property of the
212.28Harambee school, may be conveyed to Independent School District No. 623, Roseville,
212.29for operation of a multidistrict integration facility that serves students in any grade from
212.30early education through grade 12.
212.31    Subd. 2. Student enrollment. A student enrolled in the Harambee community
212.32school during the 2013-2014 school year may continue to enroll in the Harambee
212.33community school in any subsequent year. For the 2014-2015 school year and later, other
212.34students may apply for enrollment under Minnesota Statutes, section 124D.03.
213.1    Subd. 3. Compensatory revenue; literacy aid; alternative compensation
213.2revenue. For the 2014-2015 school year only, the Department of Education must calculate
213.3compensatory revenue, literacy aid, and alternative compensation revenue for the
213.4Harambee community school based on the October 1, 2013, enrollment counts.
213.5    Subd. 4. Year-round programming. Harambee community school may operate as
213.6a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.
213.7    Subd. 5. Pupil transportation. The board may transport pupils enrolled in the
213.82013-2014 school year to and from the Harambee community school in succeeding school
213.9years regardless of the students' districts of residence. Pupil transportation expenses under
213.10this section are reimbursable under Minnesota Statutes, section 124D.87.

213.11    Sec. 19. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.
213.12    Subdivision 1. Transfer. Notwithstanding the appropriation of state general
213.13obligation bond proceeds in Laws 1998, chapter 404, section 5, subdivision 5; Laws 1999,
213.14chapter 240, article 1, section 3; Laws 2000, chapter 492, article 1, section 5, subdivision
213.152; Laws 2001, First Special Session chapter 12, section 2, subdivision 2; and Laws
213.162005, chapter 20, article 1, section 5, subdivision 3, to acquire and better the Crosswinds
213.17school facilities by the Joint Powers District No. 6067, East Metro Integration District,
213.18in Woodbury, the Crosswinds school may be conveyed to the Perpich Center for Arts
213.19Education for use as an east metropolitan area integration magnet school.
213.20    Subd. 2. Student enrollment. Any student enrolled in the Crosswinds school
213.21during the 2013-2014 school year may continue to enroll in the Crosswinds school in
213.22any subsequent year. For the 2014-2015 school year and later, a student may apply for
213.23enrollment to the school under Minnesota Statutes, section 124D.03.
213.24    Subd. 3. Compensatory revenue, literacy aid, and alternative compensation
213.25revenue. For the 2014-2015 school year only, the Department of Education must calculate
213.26compensatory revenue, literacy aid, and alternative compensation revenue for the
213.27Crosswinds school based on the October 1, 2013, enrollment counts at that site.
213.28    Subd. 4. Title 1 funding. To the extent possible, the Department of Education
213.29must qualify the Crosswinds school for Title 1, and, if applicable, other federal funding
213.30as if the program were still operated by Joint Powers District No. 6067, East Metro
213.31Integration District.
213.32EFFECTIVE DATE.This section is effective the day following final enactment.

213.33    Sec. 20. LEASE LEVY; TRANSPORTATION HUB FOR ROSEMOUNT-APPLE
213.34VALLEY-EAGAN SCHOOL DISTRICT.
214.1Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent
214.2School District No. 196, Rosemount-Apple Valley-Eagan, may lease a transportation
214.3hub under Minnesota Statutes, section 126C.40, subdivision 1. Levy authority under
214.4this section shall not exceed the total levy authority under Minnesota Statutes, section
214.5126C.40, subdivision 1, paragraph (e).
214.6EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

214.7    Sec. 21. REPEALER.
214.8Minnesota Statutes 2012, section 123B.71, subdivision 1, is repealed.


214.11    Section 1. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1,
214.12is amended to read:
214.13    Subdivision 1. School lunch aid computation. Each school year, the state must
214.14pay participants in the national school lunch program the amount of 12.5 cents for each
214.15full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price
214.16lunch served to students.
214.17EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
214.18and later.

214.19    Sec. 2. Minnesota Statutes 2012, section 124D.111, is amended by adding a
214.20subdivision to read:
214.21    Subd. 4. No fees. A participant that receives school lunch aid under this section
214.22must make lunch available without charge to all participating students who qualify for
214.23free or reduced-price meals. The participant must also ensure that any reminders for
214.24payment of outstanding student meal balances do not demean or stigmatize any child
214.25participating in the school lunch program.
214.26EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
214.27and later.

214.28    Sec. 3. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
214.29    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
214.30section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

215.1 215.2		$	13,032,000 12,417,000	.....	2014
215.3 215.4		$	13,293,000 16,185,000	.....	2015

215.8    Section 1. Minnesota Statutes 2012, section 121A.19, is amended to read:
215.9121A.19 DEVELOPMENTAL SCREENING AID.
215.10    Each school year, the state must pay a district for each child or student screened by
215.11the district according to the requirements of section 121A.17. The amount of state aid
215.12for each child or student screened shall be: (1) $75 $80 for a child screened at age three;
215.13(2) $50 $55 for a child screened at age four; (3) $40 for a child screened at age five or
215.14six prior to kindergarten; and (4) $30 for a student screened within 30 days after first
215.15enrolling in a public school kindergarten if the student has not previously been screened
215.16according to the requirements of section 121A.17. If this amount of aid is insufficient,
215.17the district may permanently transfer from the general fund an amount that, when added
215.18to the aid, is sufficient. Developmental screening aid shall not be paid for any student
215.19who is screened more than 30 days after the first day of attendance at a public school
215.20kindergarten, except if a student transfers to another public school kindergarten within
215.2130 days after first enrolling in a Minnesota public school kindergarten program. In this
215.22case, if the student has not been screened, the district to which the student transfers may
215.23receive developmental screening aid for screening that student when the screening is
215.24performed within 30 days of the transfer date.
215.25EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
215.26and later.

215.27    Sec. 2. Minnesota Statutes 2012, section 124D.16, subdivision 2, is amended to read:
215.28    Subd. 2. Amount of aid. (a) A district is eligible to receive school readiness aid
215.29for eligible prekindergarten pupils enrolled in a school readiness program under section
215.30124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been
215.31approved by the commissioner.
215.32(b) For fiscal year 2002 and thereafter, A district must receive school readiness aid
215.33equal to:
216.1(1) the number of four-year-old children in the district on October 1 for the previous
216.2school year times the ratio of 50 percent of the total school readiness aid for that year to
216.3the total number of four-year-old children reported to the commissioner for the previous
216.4school year; plus
216.5(2) the number of pupils enrolled in the school district from families eligible for the
216.6free or reduced school lunch program for the previous school year times the ratio of
216.750 percent of the total school readiness aid for that year to the total number of pupils
216.8in the state from families eligible for the free or reduced school lunch program for the
216.9previous school year.
216.10(c) For fiscal year 2015 and later, total school readiness aid equals $12,000,000.
216.11EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
216.12and later.

216.13    Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5, is
216.14amended to read:
216.15    Subd. 5. Report required. The commissioner shall contract with an independent
216.16contractor to evaluate the early learning scholarship program. The evaluation must
216.17include recommendations regarding the appropriate scholarship amount, efficiency, and
216.18effectiveness of the administration, and impact on kindergarten readiness. By January
216.1915, 2016, the commissioner shall submit a written copy of the evaluation to the chairs
216.20and ranking minority members of the legislative committees and divisions with primary
216.21jurisdiction over kindergarten through grade 12 education.

216.22    Sec. 4. Minnesota Statutes 2012, section 124D.522, is amended to read:
216.23124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
216.24GRANTS.
216.25(a) The commissioner, in consultation with the policy review task force under
216.26section 124D.521, may make grants to nonprofit organizations to provide services that
216.27are not offered by a district adult basic education program or that are supplemental to
216.28either the statewide adult basic education program, or a district's adult basic education
216.29program. The commissioner may make grants for: staff development for adult basic
216.30education teachers and administrators; training for volunteer tutors; training, services, and
216.31materials for serving disabled students through adult basic education programs; statewide
216.32promotion of adult basic education services and programs; development and dissemination
216.33of instructional and administrative technology for adult basic education programs;
217.1programs which primarily serve communities of color; adult basic education distance
217.2learning projects, including television instruction programs; and other supplemental
217.3services to support the mission of adult basic education and innovative delivery of adult
217.4basic education services.
217.5(b) The commissioner must establish eligibility criteria and grant application
217.6procedures. Grants under this section must support services throughout the state, focus on
217.7educational results for adult learners, and promote outcome-based achievement through
217.8adult basic education programs. Beginning in fiscal year 2002, the commissioner may
217.9make grants under this section from the state total adult basic education aid set aside for
217.10supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
217.11for supplemental service grants must be used for grants for adult basic education programs
217.12to encourage and support innovations in adult basic education instruction and service
217.13delivery. A grant to a single organization cannot exceed 20 40 percent of the total
217.14supplemental services aid. Nothing in this section prevents an approved adult basic
217.15education program from using state or federal aid to purchase supplemental services.

217.16    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, is
217.17amended to read:
217.18    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
217.19education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
217.20during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
217.21(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
217.22fiscal years equals:
217.23    (1) the state total adult basic education aid for the preceding fiscal year plus any
217.24amount that is not paid for during the previous fiscal year, as a result of adjustments under
217.25subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
217.26    (2) the lesser of:
217.27    (i) 1.025 1.03; or
217.28    (ii) the average growth in state total contact hours over the prior ten program years.
217.29    Beginning in fiscal year 2002, two Three percent of the state total adult basic
217.30education aid must be set aside for adult basic education supplemental service grants
217.31under section 124D.522.
217.32    (b) The state total adult basic education aid, excluding basic population aid, equals
217.33the difference between the amount computed in paragraph (a), and the state total basic
217.34population aid under subdivision 2.
218.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
218.2and later.

218.3    Sec. 6. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
218.4    Subd. 3. Program revenue. Adult basic education programs established under
218.5section 124D.52 and approved by the commissioner are eligible for revenue under this
218.6subdivision. For fiscal year 2001 and later, adult basic education revenue for each
218.7approved program equals the sum of:
218.8(1) the basic population aid under subdivision 2 for districts participating in the
218.9program during the current program year; plus
218.10(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the
218.11ratio of the contact hours for students participating in the program during the first prior
218.12program year to the state total contact hours during the first prior program year; plus
218.13(3) eight percent times the amount computed in subdivision 1, paragraph (b), times
218.14the ratio of the enrollment of English learners during the second prior school year in
218.15districts participating in the program during the current program year to the state total
218.16enrollment of English learners during the second prior school year in districts participating
218.17in adult basic education programs during the current program year; plus
218.18(4) eight percent times the amount computed in subdivision 1, paragraph (b), times
218.19the ratio of the latest federal census count of the number of adults aged 20 25 or older
218.20with no diploma residing in the districts participating in the program during the current
218.21program year to the latest federal census count of the state total number of adults aged 20
218.22 25 or older with no diploma residing in the districts participating in adult basic education
218.23programs during the current program year.

218.24    Sec. 7. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
218.25    Subd. 2. School readiness. For revenue for school readiness programs under
218.26Minnesota Statutes, sections 124D.15 and 124D.16:

218.27 218.28		$	10,095,000 10,458,000	.....	2014
218.29 218.30		$	10,159,000 11,809,000	.....	2015

218.31The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
218.32 for 2014.
218.33The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
218.34 $10,800,000 for 2015.

219.1    Sec. 8. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
219.2    Subd. 4. Health and developmental screening aid. For health and developmental
219.3screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

219.4		$	3,421,000	.....	2014
219.5 219.6		$	3,344,000 3,569,000	.....	2015

219.7The 2014 appropriation includes $474,000 for 2013 and $2,947,000 for 2014.
219.8The 2015 appropriation includes $463,000 for 2014 and $2,881,000 $3,106,000
219.9 for 2015.

219.10    Sec. 9. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
219.11    Subd. 14. Adult basic education aid. For adult basic education aid under
219.12Minnesota Statutes, section 124D.531:

219.13 219.14		$	47,005,000 48,782,000	.....	2014
219.15 219.16		$	48,145,000 48,415,000	.....	2015

219.17The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 $42,498,000
219.18 for 2014.
219.19The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
219.20 $43,693,000 for 2015.

219.21    Sec. 10. APPROPRIATIONS.
219.22    Subdivision 1. Department of Education. The sums indicated in this section are
219.23appropriated from the general fund to the Department of Education for the fiscal years
219.24designated.
219.25    Subd. 2. Northside Achievement Zone. (a) For a grant to the Northside
219.26Achievement Zone:

219.27

$

1,132,000

.....

2015

219.28(b) Funds appropriated in this subdivision are to reduce multigenerational poverty
219.29and the educational achievement gap through increased enrollment of families within
219.30the zone, and may be used for Northside Achievement Zone programming and services
219.31consistent with federal Promise Neighborhood program agreements and requirements.
219.32(c) The Northside Achievement Zone shall submit a report by October 1, 2015, to
219.33the chairs of the legislative committees with jurisdiction over early childhood through
220.1grade 12 education policy and finance that, at a minimum, summarizes program activities,
220.2specifies performance measures, and analyzes program outcomes.
220.3    (d) The base appropriation for fiscal years 2016 and 2017 is $1,132,000 for each year.
220.4    Subd. 3. St. Paul Promise Neighborhood. (a) For a grant to the St. Paul Promise
220.5Neighborhood:

220.6

$

1,132,000

.....

2015

220.7(b) Funds appropriated in this subdivision are to reduce multigenerational poverty
220.8and the educational achievement gap through increased enrollment of families within the
220.9zone, and may be used for St. Paul Promise Neighborhood programming and services
220.10consistent with federal Promise Neighborhood program agreements and requirements.
220.11(c) The St. Paul Promise Neighborhood shall submit a report by October 1, 2015, to
220.12the chairs of the legislative committees with jurisdiction over early childhood through
220.13grade 12 education policy and finance that, at a minimum, summarizes program activities,
220.14specifies performance measures, and analyzes program outcomes.
220.15    (d) The base appropriation for fiscal years 2016 and 2017 is $1,132,000 for each year.


220.18    Section 1. Laws 2013, chapter 116, article 9, section 1, subdivision 2, is amended to read:
220.19    Subd. 2. Department. (a) For the Department of Education:

220.20		$	20,058,000	.....	2014
220.21 220.22		$	19,308,000 19,716,000	.....	2015

220.23Any balance in the first year does not cancel but is available in the second year.
220.24(b) $260,000 each year is for the Minnesota Children's Museum.
220.25(c) $41,000 each year is for the Minnesota Academy of Science.
220.26(d) $50,000 each year is for the Duluth Children's Museum.
220.27(e) $618,000 each in fiscal year 2014 and $718,000 in fiscal year is 2015 only are
220.28 for the Board of Teaching. Any balance in the first year does not cancel but is available
220.29in the second year.
220.30(f) $167,000 each in fiscal year 2014 and $225,000 in fiscal year is 2015 are for
220.31the Board of School Administrators. Any balance in the first year does not cancel but
220.32is available in the second year.
220.33(g) $75,000 in fiscal year 2015 only is for The Works Museum.
221.1(h) $50,000 in fiscal year 2015 only is for a grant to the Headwaters Science Center
221.2for hands-on science, technology, engineering, and math (STEM) education.
221.3(i) $25,000 each year is for innovation pilot grants under Laws 2012, chapter 263,
221.4section 1.
221.5(j) The expenditures of federal grants and aids as shown in the biennial budget
221.6document and its supplements are approved and appropriated and shall be spent as
221.7indicated.
221.8(h) (k) None of the amounts appropriated under this subdivision may be used for
221.9Minnesota's Washington, D.C. office.
221.10(i) (l) $250,000 each year is for the School Finance Division to enhance financial
221.11data analysis.
221.12(j) (m) $750,000 in fiscal year 2014 only is for departmental costs associated with
221.13teacher development and evaluation. Any balance in the first year does not cancel and
221.14is available in the second year.

221.15    Sec. 2. Laws 2013, chapter 116, article 9, section 2, is amended to read:
221.16    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
221.17The sums indicated in this section are appropriated from the general fund to the
221.18Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

221.19		$	11,749,000	.....	2014
221.20 221.21		$	11,664,000 11,964,000	.....	2015

221.22$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading
221.23kitchen facilities. Any balance in the first year does not cancel but is available in the
221.24second year.

221.25    Sec. 3. APPROPRIATION; RESPONSES TO HEALTH INSURANCE
221.26TRANSPARENCY ACT BID REQUESTS.
221.27    (a) $294,000 is appropriated for fiscal year 2015 from the general fund to the
221.28commissioner of management and budget to comply with the requirements relating to
221.29health insurance transparency similar to those proposed in House File 2180, if enacted in
221.30the 2014 regular legislative session. This is a onetime appropriation.
221.31    (b) If a bill meeting the requirements of paragraph (a) is enacted, the commissioner
221.32of management and budget shall report by January 15, 2015, to the legislative chairs
221.33and ranking minority members with jurisdiction over state government finance on the
221.34ongoing costs incurred by the public employees insurance program in compliance with
222.1the requirements of the health insurance transparency act and may request additional
222.2appropriations, if necessary.


222.6    Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to
222.7read:
222.8    Subd. 3. Enrollment options transportation. For transportation of pupils attending
222.9postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
222.10of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

222.11 222.12		$	44,000 37,000	.....	2014
222.13 222.14		$	48,000 40,000	.....	2015

222.15    Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
222.16    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
222.17127A.49 :

222.18 222.19		$	2,747,000 2,876,000	.....	2014
222.20 222.21		$	3,136,000 3,103,000	.....	2015

222.22The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
222.23 for 2014.
222.24The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
222.25 $2,817,000 for 2015.

222.26    Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
222.27    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
222.28Statutes, section 123A.485:

222.29 222.30		$	472,000 585,000	.....	2014
222.31 222.32		$	480,000 254,000	.....	2015

222.33The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
223.1The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
223.2 for 2015.

223.3    Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
223.4    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
223.5Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

223.6 223.7		$	15,582,000 16,068,000	.....	2014
223.8 223.9		$	16,169,000 16,074,000	.....	2015

223.10The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000
223.11 for 2014.
223.12The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
223.13 $14,522,000 for 2015.

223.14    Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
223.15    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
223.16under Minnesota Statutes, section 123B.92, subdivision 9:

223.17 223.18		$	18,565,000 18,566,000	.....	2014
223.19 223.20		$	18,946,000 17,646,000	.....	2015

223.21The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000
223.22 for 2014.
223.23The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
223.24 $15,880,000 for 2015.

223.25    Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
223.26    Subd. 11. Career and technical aid. For career and technical aid under Minnesota
223.27Statutes, section 124D.4531, subdivision 1b:

223.28 223.29		$	4,320,000 3,959,000	.....	2014
223.30 223.31		$	5,680,000 5,172,000	.....	2015

223.32The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.
223.33The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
223.34 $4,733,000 for 2015.

224.1    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
224.2    Subd. 3. Achievement and integration aid. For achievement and integration aid
224.3under Minnesota Statutes, section 124D.862:

224.4 224.5		$	58,911,000 55,609,000	.....	2014
224.6 224.7		$	68,623,000 62,692,000	.....	2015

224.8The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
224.9The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
224.10 $56,514,000 for 2015.

224.11    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
224.12    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota
224.13Statutes, section 124D.98:

224.14 224.15		$	52,514,000 50,998,000	.....	2014
224.16 224.17		$	53,818,000 47,458,000	.....	2015

224.18The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
224.19 for 2014.
224.20The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
224.21 $42,526,000 for 2015.

224.22    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
224.23    Subd. 5. Interdistrict desegregation or integration transportation grants. For
224.24interdistrict desegregation or integration transportation grants under Minnesota Statutes,
224.25section 124D.87:

224.26 224.27		$	13,968,000 13,521,000	.....	2014
224.28 224.29		$	14,712,000 14,248,000	.....	2015

224.30    Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
224.31    Subd. 6. Success for the future. For American Indian success for the future grants
224.32under Minnesota Statutes, section 124D.81:

224.33 224.34		$	2,137,000 2,214,000	.....	2014
224.35		$	2,137,000	.....	2015

225.1The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
225.2 for 2014.
225.3The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
225.4 $1,924,000 for 2015.

225.5    Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
225.6    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota
225.7Statutes, section 124D.83:

225.8 225.9		$	2,080,000 2,144,000	.....	2014
225.10 225.11		$	2,230,000 2,152,000	.....	2015

225.12The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000
225.13 for 2014.
225.14The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
225.15 $1,944,000 for 2015.

225.16    Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to
225.17read:
225.18    Subd. 20. Alternative compensation. For alternative teacher compensation aid
225.19under Minnesota Statutes, section 122A.415, subdivision 4:

225.20 225.21

$

60,340,000 71,599,000

.....

2015

225.22The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.

225.24    Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
225.25    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
225.26Statutes, section 124D.11, subdivision 4:

225.27 225.28		$	54,484,000 54,763,000	.....	2014
225.29 225.30		$	59,533,000 58,294,000	.....	2015

225.31The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000
225.32 for 2014.
225.33The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
225.34 $52,967,000 for 2015.

226.2    Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
226.3    Subd. 2. Special education; regular. For special education aid under Minnesota
226.4Statutes, section 125A.75:

226.5 226.6		$	997,725,000 1,038,514,000	.....	2014
226.7 226.8		$	1,108,211,000 1,111,641,000	.....	2015

226.9The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000
226.10 $920,282,000 for 2014.
226.11The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and
226.12$938,282,000 $982,092,000 for 2015.

226.13    Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
226.14    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
226.15section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
226.16within the district boundaries for whom no district of residence can be determined:

226.17 226.18		$	1,655,000 1,548,000	.....	2014
226.19 226.20		$	1,752,000 1,674,000	.....	2015

226.21If the appropriation for either year is insufficient, the appropriation for the other
226.22year is available.

226.23    Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
226.24    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
226.25services under Minnesota Statutes, section 125A.75, subdivision 1:

226.26 226.27		$	345,000 351,000	.....	2014
226.28 226.29		$	355,000 346,000	.....	2015

226.30The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
226.31The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
226.32 for 2015.

226.34    Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
227.1    Subd. 2. Health and safety revenue. For health and safety aid according to
227.2Minnesota Statutes, section 123B.57, subdivision 5:

227.3 227.4		$	463,000 473,000	.....	2014
227.5 227.6		$	434,000 651,000	.....	2015

227.7The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.
227.8The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
227.9 for 2015.

227.10    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
227.11    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
227.12Statutes, section 123B.53, subdivision 6:

227.13 227.14		$	19,083,000 19,778,000	.....	2014
227.15 227.16		$	25,060,000 22,591,000	.....	2015

227.17The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
227.18 for 2014.
227.19The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
227.20 $20,660,000 for 2015.

227.21    Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
227.22    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
227.23according to Minnesota Statutes, section 123B.59, subdivision 1:

227.24 227.25		$	19,287,000 19,982,000	.....	2014
227.26		$	19,287,000	.....	2015

227.27The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
227.28 for 2014.
227.29The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
227.30 $17,359,000 for 2015.

227.31    Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
227.32    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
227.33Minnesota Statutes, section 123B.591, subdivision 4:

228.1 228.2		$	3,564,000 3,858,000	.....	2014
228.3 228.4		$	3,730,000 4,024,000	.....	2015

228.5The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000
228.6 for 2014.
228.7The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
228.8 $3,646,000 for 2015.

228.10    Sec. 21. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
228.11    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
228.12Statutes, section 124D.1158:

228.13 228.14		$	5,711,000 5,308,000	.....	2014
228.15 228.16		$	6,022,000 5,607,000	.....	2015

228.17    Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
228.18    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
228.19section 124D.118:

228.20 228.21		$	1,039,000 992,000	.....	2014
228.22 228.23		$	1,049,000 1,002,000	.....	2015

228.24    Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
228.25    Subd. 6. Basic system support. For basic system support grants under Minnesota
228.26Statutes, section 134.355:

228.27 228.28		$	13,570,000 14,058,000	.....	2014
228.29 228.30		$	13,570,000 13,570,000	.....	2015

228.31The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
228.32 for 2014.
228.33The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
228.34 $12,213,000 for 2015.

229.1    Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
229.2    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
229.3Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

229.4 229.5		$	1,300,000 1,346,000	.....	2014
229.6		$	1,300,000	.....	2015

229.7The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
229.8 for 2014.
229.9The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
229.10 $1,170,000 for 2015.

229.11    Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
229.12    Subd. 9. Regional library telecommunications aid. For regional library
229.13telecommunications aid under Minnesota Statutes, section 134.355:

229.14 229.15		$	2,300,000 2,382,000	.....	2014
229.16		$	2,300,000	.....	2015

229.17The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
229.18 for 2014.
229.19The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
229.20 $2,070,000 for 2015.

229.23    Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
229.24    Subd. 3. Early childhood family education aid. For early childhood family
229.25education aid under Minnesota Statutes, section 124D.135:

229.26 229.27		$	22,078,000 22,797,000	.....	2014
229.28 229.29		$	22,425,000 22,001,000	.....	2015

229.30The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
229.31 for 2014.
229.32The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
229.33 $19,803,000 for 2015.

229.34    Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
230.1    Subd. 10. Community education aid. For community education aid under
230.2Minnesota Statutes, section 124D.20:

230.3 230.4		$	935,000 955,000	.....	2014
230.5 230.6		$	1,056,000 1,060,000	.....	2015

230.7The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
230.8The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
230.9 for 2015.

230.10    Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
230.11    Subd. 11. Adults with disabilities program aid. For adults with disabilities
230.12programs under Minnesota Statutes, section 124D.56:

230.13 230.14		$	710,000 735,000	.....	2014
230.15		$	710,000	.....	2015

230.16The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.
230.17The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
230.18 for 2015.


230.22    Section 1. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:
230.23    Subdivision 1. Restricted construction or modification. (a) The following
230.24construction or modification may not be commenced:
230.25(1) any erection, building, alteration, reconstruction, modernization, improvement,
230.26extension, lease, or other acquisition by or on behalf of a hospital that increases the bed
230.27capacity of a hospital, relocates hospital beds from one physical facility, complex, or site
230.28to another, or otherwise results in an increase or redistribution of hospital beds within
230.29the state; and
230.30(2) the establishment of a new hospital.
230.31(b) This section does not apply to:
230.32(1) construction or relocation within a county by a hospital, clinic, or other health
230.33care facility that is a national referral center engaged in substantial programs of patient
231.1care, medical research, and medical education meeting state and national needs that
231.2receives more than 40 percent of its patients from outside the state of Minnesota;
231.3(2) a project for construction or modification for which a health care facility held
231.4an approved certificate of need on May 1, 1984, regardless of the date of expiration of
231.5the certificate;
231.6(3) a project for which a certificate of need was denied before July 1, 1990, if a
231.7timely appeal results in an order reversing the denial;
231.8(4) a project exempted from certificate of need requirements by Laws 1981, chapter
231.9200, section 2;
231.10(5) a project involving consolidation of pediatric specialty hospital services within
231.11the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the
231.12number of pediatric specialty hospital beds among the hospitals being consolidated;
231.13(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds
231.14to an existing licensed hospital that will allow for the reconstruction of a new philanthropic,
231.15pediatric-orthopedic hospital on an existing site and that will not result in a net increase in
231.16the number of hospital beds. Upon completion of the reconstruction, the licenses of both
231.17hospitals must be reinstated at the capacity that existed on each site before the relocation;
231.18(7) the relocation or redistribution of hospital beds within a hospital building or
231.19identifiable complex of buildings provided the relocation or redistribution does not result
231.20in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds
231.21from one physical site or complex to another; or (iii) redistribution of hospital beds within
231.22the state or a region of the state;
231.23(8) relocation or redistribution of hospital beds within a hospital corporate system
231.24that involves the transfer of beds from a closed facility site or complex to an existing site
231.25or complex provided that: (i) no more than 50 percent of the capacity of the closed facility
231.26is transferred; (ii) the capacity of the site or complex to which the beds are transferred
231.27does not increase by more than 50 percent; (iii) the beds are not transferred outside of a
231.28federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or
231.29redistribution does not involve the construction of a new hospital building;
231.30(9) a construction project involving up to 35 new beds in a psychiatric hospital in
231.31Rice County that primarily serves adolescents and that receives more than 70 percent of its
231.32patients from outside the state of Minnesota;
231.33(10) a project to replace a hospital or hospitals with a combined licensed capacity
231.34of 130 beds or less if: (i) the new hospital site is located within five miles of the current
231.35site; and (ii) the total licensed capacity of the replacement hospital, either at the time of
232.1construction of the initial building or as the result of future expansion, will not exceed 70
232.2licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;
232.3(11) the relocation of licensed hospital beds from an existing state facility operated
232.4by the commissioner of human services to a new or existing facility, building, or complex
232.5operated by the commissioner of human services; from one regional treatment center
232.6site to another; or from one building or site to a new or existing building or site on the
232.7same campus;
232.8(12) the construction or relocation of hospital beds operated by a hospital having a
232.9statutory obligation to provide hospital and medical services for the indigent that does not
232.10result in a net increase in the number of hospital beds, notwithstanding section 144.552, 27
232.11beds, of which 12 serve mental health needs, may be transferred from Hennepin County
232.12Medical Center to Regions Hospital under this clause;
232.13(13) a construction project involving the addition of up to 31 new beds in an existing
232.14nonfederal hospital in Beltrami County;
232.15(14) a construction project involving the addition of up to eight new beds in an
232.16existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
232.17(15) a construction project involving the addition of 20 new hospital beds
232.18used for rehabilitation services in an existing hospital in Carver County serving the
232.19southwest suburban metropolitan area. Beds constructed under this clause shall not be
232.20eligible for reimbursement under medical assistance, general assistance medical care,
232.21or MinnesotaCare;
232.22(16) a project for the construction or relocation of up to 20 hospital beds for the
232.23operation of up to two psychiatric facilities or units for children provided that the operation
232.24of the facilities or units have received the approval of the commissioner of human services;
232.25(17) a project involving the addition of 14 new hospital beds to be used for
232.26rehabilitation services in an existing hospital in Itasca County;
232.27(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin
232.28County that closed 20 rehabilitation beds in 2002, provided that the beds are used only
232.29for rehabilitation in the hospital's current rehabilitation building. If the beds are used for
232.30another purpose or moved to another location, the hospital's licensed capacity is reduced
232.31by 20 beds;
232.32(19) a critical access hospital established under section 144.1483, clause (9), and
232.33section 1820 of the federal Social Security Act, United States Code, title 42, section
232.341395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public
232.35Law 105-33, to the extent that the critical access hospital does not seek to exceed the
232.36maximum number of beds permitted such hospital under federal law;
233.1(20) notwithstanding section 144.552, a project for the construction of a new hospital
233.2in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:
233.3(i) the project, including each hospital or health system that will own or control the
233.4entity that will hold the new hospital license, is approved by a resolution of the Maple
233.5Grove City Council as of March 1, 2006;
233.6(ii) the entity that will hold the new hospital license will be owned or controlled by
233.7one or more not-for-profit hospitals or health systems that have previously submitted a
233.8plan or plans for a project in Maple Grove as required under section 144.552, and the
233.9plan or plans have been found to be in the public interest by the commissioner of health
233.10as of April 1, 2005;
233.11(iii) the new hospital's initial inpatient services must include, but are not limited
233.12to, medical and surgical services, obstetrical and gynecological services, intensive
233.13care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics,
233.14behavioral health services, and emergency room services;
233.15(iv) the new hospital:
233.16(A) will have the ability to provide and staff sufficient new beds to meet the growing
233.17needs of the Maple Grove service area and the surrounding communities currently being
233.18served by the hospital or health system that will own or control the entity that will hold
233.19the new hospital license;
233.20(B) will provide uncompensated care;
233.21(C) will provide mental health services, including inpatient beds;
233.22(D) will be a site for workforce development for a broad spectrum of
233.23health-care-related occupations and have a commitment to providing clinical training
233.24programs for physicians and other health care providers;
233.25(E) will demonstrate a commitment to quality care and patient safety;
233.26(F) will have an electronic medical records system, including physician order entry;
233.27(G) will provide a broad range of senior services;
233.28(H) will provide emergency medical services that will coordinate care with regional
233.29providers of trauma services and licensed emergency ambulance services in order to
233.30enhance the continuity of care for emergency medical patients; and
233.31(I) will be completed by December 31, 2009, unless delayed by circumstances
233.32beyond the control of the entity holding the new hospital license; and
233.33(v) as of 30 days following submission of a written plan, the commissioner of health
233.34has not determined that the hospitals or health systems that will own or control the entity
233.35that will hold the new hospital license are unable to meet the criteria of this clause;
233.36(21) a project approved under section 144.553;
234.1(22) a project for the construction of a hospital with up to 25 beds in Cass County
234.2within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's
234.3license holder is approved by the Cass County Board;
234.4(23) a project for an acute care hospital in Fergus Falls that will increase the bed
234.5capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16
234.6and closing a separately licensed 13-bed skilled nursing facility; or
234.7(24) notwithstanding section 144.552, a project for the construction and expansion
234.8of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for
234.9patients who are under 21 years of age on the date of admission. The commissioner
234.10conducted a public interest review of the mental health needs of Minnesota and the Twin
234.11Cities metropolitan area in 2008. No further public interest review shall be conducted for
234.12the construction or expansion project under this clause; or
234.13(25) a project for a 16-bed psychiatric hospital in the city of Thief River Falls, if
234.14the commissioner finds the project is in the public interest after the public interest review
234.15conducted under section 144.552 is complete.
234.16EFFECTIVE DATE.This section is effective the day following final enactment.

234.17    Sec. 2. [144.9513] HEALTHY HOUSING GRANTS.
234.18    Subdivision 1. Definitions. For purposes of this section and sections 144.9501 to
234.19144.9512, the following terms have the meanings given.
234.20(a) "Housing" means a room or group of rooms located within a dwelling forming
234.21a single habitable unit with facilities used or intended to be used for living, sleeping,
234.22cooking, and eating.
234.23(b) "Healthy housing" means housing that is sited, designed, built, renovated, and
234.24maintained in ways that supports the health of residents.
234.25(c) "Housing-based health threat" means a chemical, biologic, or physical agent in
234.26the immediate housing environment which constitutes a potential or actual hazard to
234.27human health at acute or chronic exposure levels.
234.28(d) "Primary prevention" means preventing exposure to housing-based health threats
234.29before seeing clinical symptoms or a diagnosis.
234.30    Subd. 2. Grants; administration. Grant applicants shall submit applications to
234.31the commissioner as directed by a request for proposals. Grants must be competitively
234.32awarded and recipients of a grant under this section must prepare and submit a quarterly
234.33progress report to the commissioner beginning three months after receipt of the grant. The
234.34commissioner shall provide technical assistance and program support as needed to ensure
235.1that housing-based health threats are effectively identified, mitigated, and evaluated by
235.2grantees.
235.3    Subd. 3. Education and training grant; eligible activities. (a) Within the limits of
235.4available appropriations, the commissioner shall make grants to nonprofit organizations,
235.5community health boards, and community action agencies under section 256E.31 with
235.6expertise in providing outreach, education, and training on healthy homes subjects and in
235.7providing comprehensive healthy homes assessments and interventions to provide healthy
235.8housing education, training, and technical assistance services for persons engaged in
235.9addressing housing-based health threats and other individuals impacted by housing-based
235.10health threats.
235.11(b) The grantee may conduct the following activities:
235.12(1) implement and maintain primary prevention programs to reduce housing-based
235.13health threats that include the following:
235.14(i) providing education materials to the general public and to property owners,
235.15contractors, code officials, health care providers, public health professionals, health
235.16educators, nonprofit organizations, and other persons and organizations engaged in
235.17housing and health issues;
235.18(ii) promoting awareness of community, legal, and housing resources; and
235.19(iii) promoting the use of hazard reduction measures in new housing construction
235.20and housing rehabilitation programs;
235.21(2) provide training on identifying and addressing housing-based health threats;
235.22(3) provide technical assistance on the implementation of mitigation measures;
235.23(4) promote adoption of evidence-based best practices for mitigation of
235.24housing-based health threats; or
235.25(5) develop work practices for addressing specific housing-based health threats.

235.26    Sec. 3. [144A.484] INTEGRATED LICENSURE; HOME AND
235.27COMMUNITY-BASED SERVICES DESIGNATION.
235.28    Subdivision 1. Integrated licensing established. (a) From January 1, 2014, to June
235.2930, 2015, the commissioner of health shall enforce the home and community-based services
235.30standards under chapter 245D for those providers who also have a home care license
235.31pursuant to chapter 144A as required under Laws 2013, chapter 108, article 11, section 31,
235.32and article 8, section 60. During this period, the commissioner shall provide technical
235.33assistance on how to achieve and maintain compliance with applicable law or rules
235.34governing the provision of home and community-based services, including complying with
235.35the service recipient rights notice in subdivision 4, clause (4). If, during the survey, the
236.1commissioner finds that the licensee has failed to achieve compliance with an applicable
236.2law or rule under chapter 245D and this failure does not imminently endanger the health,
236.3safety, or rights of the persons served by the program, the commissioner may issue a
236.4licensing survey report with recommendations for achieving and maintaining compliance.
236.5(b) Beginning July 1, 2015, a home care provider applicant or license holder may
236.6apply to the commissioner of health for a home and community-based services designation
236.7for the provision of basic home and community-based services identified under section
236.8245D.03, subdivision 1, paragraph (b). The designation allows the license holder to
236.9provide basic home and community-based services that would otherwise require licensure
236.10under chapter 245D, under the license holder's home care license governed by sections
236.11144A.43 to 144A.481.
236.12    Subd. 2. Application for home and community-based services designation. An
236.13application for a home and community-based services designation must be made on the
236.14forms and in the manner prescribed by the commissioner. The commissioner shall provide
236.15the applicant with instruction for completing the application and provide information
236.16about the requirements of other state agencies that affect the applicant. Application for
236.17the home and community-based services designation is subject to the requirements under
236.18section 144A.473.
236.19    Subd. 3. Home and community-based services designation fees. A home care
236.20provider applicant or licensee applying for the home and community-based services
236.21designation or renewal of a home and community-based services designation must submit
236.22a fee in the amount specified in subdivision 8.
236.23    Subd. 4. Applicability of home and community-based services requirements. A
236.24home care provider with a home and community-based services designation must comply
236.25with the requirements for home care services governed by this chapter. For the provision
236.26of basic home and community-based services, the home care provider must also comply
236.27with the following home and community-based services licensing requirements:
236.28(1) person-centered planning requirements in section 245D.07;
236.29(2) protection standards in section 245D.06;
236.30(3) emergency use of manual restraints in section 245D.061; and
236.31(4) service recipient rights in section 245D.04, subdivision 3, paragraph (a), clauses
236.32(5), (7), (8), (12), and (13), and paragraph (b).
236.33A home care provider with the integrated license-HCBS designation may utilize a bill of
236.34rights which incorporates the service recipient rights in section 245D.04, subdivision 3,
236.35paragraph (a), clauses (5), (7), (8), (12), and (13), and paragraph (b) with the home care
236.36bill of rights in section 144A.44.
237.1    Subd. 5. Monitoring and enforcement. (a) The commissioner shall monitor for
237.2compliance with the home and community-based services requirements identified in
237.3subdivision 5, in accordance with this section and any agreements by the commissioners
237.4of health and human services.
237.5(b) The commissioner shall enforce compliance with applicable home and
237.6community-based services licensing requirements as follows:
237.7(1) the commissioner may deny a home and community-based services designation
237.8in accordance with section 144A.473 or 144A.475; and
237.9(2) if the commissioner finds that the applicant or license holder has failed to comply
237.10with the applicable home and community-based services designation requirements the
237.11commissioner may issue:
237.12(i) a correction order in accordance with section 144A.474;
237.13(ii) an order of conditional license in accordance with section 144A.475;
237.14(iii) a sanction in accordance with section 144A.475; or
237.15(iv) any combination of clauses (i) to (iii).
237.16    Subd. 6. Appeals. A home care provider applicant that has been denied a temporary
237.17license will also be denied their application for the home and community-based services
237.18designation. The applicant may request reconsideration in accordance with section
237.19144A.473, subdivision 3. A licensed home care provider whose application for a home
237.20and community-based services designation has been denied or whose designation has been
237.21suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a
237.22home and community-based services designation in accordance with section 144A.475.
237.23A license holder may request reconsideration of a correction order in accordance with
237.24section 144A.474, subdivision 12.
237.25    Subd. 7. Agreements. The commissioners of health and human services shall enter
237.26into any agreements necessary to implement this section.
237.27    Subd. 8. Fees; home and community-based services designation. (a) The initial
237.28fee for a basic home and community-based services designation is $155. A home care
237.29provider who is seeking to renew the provider's home and community-based services
237.30designation must pay an annual nonrefundable fee with the annual home care license
237.31fee according to the following schedule and based on revenues from the home and
237.32community-based services:

237.33 237.34	Provider Annual Revenue from HCBS	HCBS Designation
237.35	greater than $1,500,000	$320
237.36	greater than $1,275,000 and no more than $1,500,000	$300
238.1	greater than $1,100,000 and no more than $1,275,000	$280
238.2	greater than $950,000 and no more than $1,100,000	$260
238.3	greater than $850,000 and no more than $950,000	$240
238.4	greater than $750,000 and no more than $850,000	$220
238.5	greater than $650,000 and no more than $750,000	$200
238.6	greater than $550,000 and no more than $650,000	$180
238.7	greater than $450,000 and no more than $550,000	$160
238.8	greater than $350,000 and no more than $450,000	$140
238.9	greater than $250,000 and no more than $350,000	$120
238.10	greater than $100,000 and no more than $250,000	$100
238.11	greater than $50,000 and no more than $100,000	$80
238.12	greater than $25,000 and no more than $50,000	$60
238.13	no more than $25,000	$40

238.14(b) Fees and penalties collected under this section shall be deposited in the state
238.15treasury and credited to the state government special revenue fund.
238.16    Subd. 9. Study and report about client bill of rights. The commissioner shall
238.17consult with Aging Services of Minnesota, Care Providers of Minnesota, Minnesota Home
238.18Care Association, Department of Human Services, the Ombudsman for Long-Term Care,
238.19and other stakeholders to review how to streamline the client bill of rights requirements
238.20in sections 144A.44, 144A.441, and 245D.04 for providers whose practices fit into one
238.21or several of these practice areas, while assuring and maintaining the health and safety
238.22of clients. The evaluation shall consider the federal client bill of rights requirements for
238.23Medicare-certified home care providers. The evaluation must determine whether there
238.24are duplications or conflicts of client rights, evaluate how to reduce the complexity of the
238.25client bill of rights requirements for providers and consumers, determine which of the
238.26rights must be included in a client bill of rights document, and evaluate whether there are
238.27other ways to ensure that consumers know their rights. The commissioner shall report to
238.28the chairs of the health and human services committees of the legislature no later than
238.29February 15, 2015, along with any recommendations for legislative changes.
238.30EFFECTIVE DATE.Minnesota Statutes, section 144A.484, subdivisions 2 to 8,
238.31are effective July 1, 2015.

238.32    Sec. 4. Minnesota Statutes 2013 Supplement, section 145.4716, subdivision 2, is
238.33amended to read:
238.34    Subd. 2. Duties of director. The director of child sex trafficking prevention is
238.35responsible for the following:
239.1    (1) developing and providing comprehensive training on sexual exploitation of
239.2youth for social service professionals, medical professionals, public health workers, and
239.3criminal justice professionals;
239.4    (2) collecting, organizing, maintaining, and disseminating information on sexual
239.5exploitation and services across the state, including maintaining a list of resources on the
239.6Department of Health Web site;
239.7    (3) monitoring and applying for federal funding for antitrafficking efforts that may
239.8benefit victims in the state;
239.9    (4) managing grant programs established under sections 145.4716 to 145.4718;
239.10    (5) managing the request for proposals for grants for comprehensive services,
239.11including trauma-informed, culturally specific services;
239.12    (6) identifying best practices in serving sexually exploited youth, as defined in
239.13section 260C.007, subdivision 31;
239.14    (6) (7) providing oversight of and technical support to regional navigators pursuant
239.15to section 145.4717;
239.16    (7) (8) conducting a comprehensive evaluation of the statewide program for safe
239.17harbor of sexually exploited youth; and
239.18    (8) (9) developing a policy consistent with the requirements of chapter 13 for sharing
239.19data related to sexually exploited youth, as defined in section 260C.007, subdivision 31,
239.20among regional navigators and community-based advocates.

239.21    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is
239.22amended to read:
239.23    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for
239.24Medicare and Medicaid Services determines that a provider is designated "high-risk," the
239.25commissioner may withhold payment from providers within that category upon initial
239.26enrollment for a 90-day period. The withholding for each provider must begin on the date
239.27of the first submission of a claim.
239.28(b) An enrolled provider that is also licensed by the commissioner under chapter
239.29245A or that is licensed by the Department of Health under chapter 144A and has a
239.30HCBS designation on the home care license must designate an individual as the entity's
239.31compliance officer. The compliance officer must:
239.32(1) develop policies and procedures to assure adherence to medical assistance laws
239.33and regulations and to prevent inappropriate claims submissions;
239.34(2) train the employees of the provider entity, and any agents or subcontractors of
239.35the provider entity including billers, on the policies and procedures under clause (1);
240.1(3) respond to allegations of improper conduct related to the provision or billing of
240.2medical assistance services, and implement action to remediate any resulting problems;
240.3(4) use evaluation techniques to monitor compliance with medical assistance laws
240.4and regulations;
240.5(5) promptly report to the commissioner any identified violations of medical
240.6assistance laws or regulations; and
240.7    (6) within 60 days of discovery by the provider of a medical assistance
240.8reimbursement overpayment, report the overpayment to the commissioner and make
240.9arrangements with the commissioner for the commissioner's recovery of the overpayment.
240.10The commissioner may require, as a condition of enrollment in medical assistance, that a
240.11provider within a particular industry sector or category establish a compliance program that
240.12contains the core elements established by the Centers for Medicare and Medicaid Services.
240.13(c) The commissioner may revoke the enrollment of an ordering or rendering
240.14provider for a period of not more than one year, if the provider fails to maintain and, upon
240.15request from the commissioner, provide access to documentation relating to written orders
240.16or requests for payment for durable medical equipment, certifications for home health
240.17services, or referrals for other items or services written or ordered by such provider, when
240.18the commissioner has identified a pattern of a lack of documentation. A pattern means a
240.19failure to maintain documentation or provide access to documentation on more than one
240.20occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a
240.21provider under the provisions of section 256B.064.
240.22(d) The commissioner shall terminate or deny the enrollment of any individual or
240.23entity if the individual or entity has been terminated from participation in Medicare or
240.24under the Medicaid program or Children's Health Insurance Program of any other state.
240.25(e) As a condition of enrollment in medical assistance, the commissioner shall
240.26require that a provider designated "moderate" or "high-risk" by the Centers for Medicare
240.27and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
240.28Services, its agents, or its designated contractors and the state agency, its agents, or its
240.29designated contractors to conduct unannounced on-site inspections of any provider location.
240.30The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
240.31list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
240.32and standards used to designate Medicare providers in Code of Federal Regulations, title
240.3342, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
240.34The commissioner's designations are not subject to administrative appeal.
240.35(f) As a condition of enrollment in medical assistance, the commissioner shall
240.36require that a high-risk provider, or a person with a direct or indirect ownership interest in
241.1the provider of five percent or higher, consent to criminal background checks, including
241.2fingerprinting, when required to do so under state law or by a determination by the
241.3commissioner or the Centers for Medicare and Medicaid Services that a provider is
241.4designated high-risk for fraud, waste, or abuse.
241.5(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical
241.6equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in
241.7Minnesota and receiving Medicaid funds must purchase a surety bond that is annually
241.8renewed and designates the Minnesota Department of Human Services as the obligee, and
241.9must be submitted in a form approved by the commissioner.
241.10(2) At the time of initial enrollment or reenrollment, the provider agency must
241.11purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
241.12in the previous calendar year is up to and including $300,000, the provider agency must
241.13purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
241.14in the previous calendar year is over $300,000, the provider agency must purchase a
241.15performance bond of $100,000. The performance bond must allow for recovery of costs
241.16and fees in pursuing a claim on the bond.
241.17(h) The Department of Human Services may require a provider to purchase a
241.18performance surety bond as a condition of initial enrollment, reenrollment, reinstatement,
241.19or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the
241.20department determines there is significant evidence of or potential for fraud and abuse by
241.21the provider, or (3) the provider or category of providers is designated high-risk pursuant
241.22to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The
241.23performance bond must be in an amount of $100,000 or ten percent of the provider's
241.24payments from Medicaid during the immediately preceding 12 months, whichever is
241.25greater. The performance bond must name the Department of Human Services as an
241.26obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.

241.27    Sec. 6. LEGISLATIVE HEALTH CARE WORKFORCE COMMISSION.
241.28    Subdivision 1. Legislative oversight. The Legislative Health Care Workforce
241.29Commission is created to study and make recommendations to the legislature on how to
241.30achieve the goal of strengthening the workforce in healthcare.
241.31    Subd. 2. Membership. The Legislative Health Care Workforce Commission
241.32consists of five members of the senate appointed by the Subcommittee on Committees
241.33of the Committee on Rules and Administration and five members of the house of
241.34representatives appointed by the speaker of the house. The Legislative Health Care
242.1Workforce Commission must include three members of the majority party and two
242.2members of the minority party in each house.
242.3    Subd. 3. Report to the legislature. The Legislative Health Care Workforce
242.4Commission must provide a report making recommendations to the legislature by
242.5December 31, 2014. The report must:
242.6(1) identify current and anticipated health care workforce shortages, by both
242.7provider type and geography;
242.8(2) evaluate the effectiveness of incentives currently available to develop, attract,
242.9and retain a highly skilled health care workforce;
242.10(3) study alternative incentives to develop, attract, and retain a highly skilled and
242.11diverse health care workforce; and
242.12(4) identify current causes and potential solutions to barriers related to the primary
242.13care workforce, including, but not limited to:
242.14(i) training and residency shortages;
242.15(ii) disparities in income between primary care and other providers; and
242.16(iii) negative perceptions of primary care among students.
242.17    Subd. 4. Assistance to the commission. The commissioners of health, human
242.18services, commerce, and other state agencies shall provide assistance and technical
242.19support to the commission at the request of the commission. The commission may
242.20convene subcommittees to provide additional assistance and advice to the commission.
242.21    Subd. 5. Expiration. The Legislative Health Care Workforce Commission expires
242.22on January 1, 2015.
242.23EFFECTIVE DATE.This section is effective the day following final enactment.

242.24    Sec. 7. GRANT PROGRAMS TO ADDRESS MINORITY HEALTH
242.25DISPARITIES.
242.26    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
242.27have the meanings given.
242.28(b) "Dementia" means a condition ascribed within the brain that leads to confusion,
242.29lack of focus, and decreased memory.
242.30(c) "Education activities" means providing materials related to health care topics
242.31in ethnic-specific languages through materials including, but not limited to, Web sites,
242.32brochures, flyers, and other similar vehicles.
242.33(d) "Minority populations" means racial and ethnic groups including, but not limited
242.34to, African-Americans, Native Americans, Hmong, Asians, and other similar groups.
243.1(e) "Outreach" means the active pursuit of people within the minority groups
243.2through specific and targeted activities to contact individuals who may not regularly
243.3be contacted by health care professionals.
243.4    Subd. 2. Grants; distribution. The commissioner of health shall distribute grant
243.5funds to grantees for the following purposes:
243.6(1) dementia education and training to specific minority and under-represented
243.7groups;
243.8(2) a training conference related to immigrant and refugee mental health issues; and
243.9(3) other programs, as prioritized by the commissioner, relating to health disparities
243.10in minority populations, including, but not limited to, a Somali women-led prevention
243.11health care agency located in Minnesota focused on minority women's health disparities.
243.12    Subd. 3. Grants; administration. Grant applicants shall submit applications
243.13to the commissioner of health as directed by a request for proposals. Grants must be
243.14competitively awarded and recipients of a grant under this section must prepare and
243.15submit a quarterly progress report to the commissioner beginning three months after
243.16receipt of the grant. The commissioner shall provide technical assistance and program
243.17support as needed, including, but not limited to, assurance that minority individuals with
243.18dementia are effectively identified, mitigated, and evaluated by grantees.
243.19    Subd. 4. Dementia education and training grant; eligible activities for dementia
243.20outreach. (a) Within the limits of available appropriations, the commissioner shall make
243.21a grant to a nonprofit organization with expertise in providing outreach, education, and
243.22training on dementia, Alzheimer's, and other related disabilities within specific minority
243.23and under-represented groups.
243.24(b) The grantee must conduct the following activities:
243.25(1) providing and making available educational materials to the general public
243.26as well as specific minority populations;
243.27(2) promoting awareness of dementia-related resources and educational materials;
243.28and
243.29(3) promoting the use of materials within health care organizations.

243.30    Sec. 8. FULL-TIME EMPLOYEE RESTRICTION.
243.31No more than one full-time employee may be hired by the Department of Health to
243.32administer the grants under Minnesota Statutes, section 144.9513.


244.3    Section 1. Minnesota Statutes 2012, section 256.01, is amended by adding a
244.4subdivision to read:
244.5    Subd. 38. Contract to match recipient third-party liability information. The
244.6commissioner may enter into a contract with a national organization to match recipient
244.7third-party liability information and provide coverage and insurance primacy information
244.8to the department at no charge to providers and the clearinghouses.

244.9    Sec. 2. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:
244.10    Subdivision 1. Authority. (a) The commissioner shall establish procedures for
244.11determining medical assistance and general assistance medical care payment rates under
244.12a prospective payment system for inpatient hospital services in hospitals that qualify as
244.13vendors of medical assistance. The commissioner shall establish, by rule, procedures for
244.14implementing this section and sections 256.9686, 256.969, and 256.9695. Services must
244.15meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7,
244.16paragraph (b), to be eligible for payment.
244.17(b) The commissioner may reduce the types of inpatient hospital admissions that
244.18are required to be certified as medically necessary after notice in the State Register and a
244.1930-day comment period.

244.20    Sec. 3. Minnesota Statutes 2012, section 256.9685, subdivision 1a, is amended to read:
244.21    Subd. 1a. Administrative reconsideration. Notwithstanding sections section
244.22 256B.04, subdivision 15, and 256D.03, subdivision 7, the commissioner shall establish
244.23an administrative reconsideration process for appeals of inpatient hospital services
244.24determined to be medically unnecessary. A physician or hospital may request a
244.25reconsideration of the decision that inpatient hospital services are not medically necessary
244.26by submitting a written request for review to the commissioner within 30 days after
244.27receiving notice of the decision. The reconsideration process shall take place prior to the
244.28procedures of subdivision 1b and shall be conducted by physicians that are independent
244.29of the case under reconsideration. A majority decision by the physicians is necessary to
244.30make a determination that the services were not medically necessary.

244.31    Sec. 4. Minnesota Statutes 2012, section 256.9686, subdivision 2, is amended to read:
245.1    Subd. 2. Base year. "Base year" means a hospital's fiscal year that is recognized
245.2by the Medicare program or a hospital's fiscal year specified by the commissioner if a
245.3hospital is not required to file information by the Medicare program from which cost and
245.4statistical data are used to establish medical assistance and general assistance medical
245.5care payment rates.

245.6    Sec. 5. Minnesota Statutes 2012, section 256.969, subdivision 1, is amended to read:
245.7    Subdivision 1. Hospital cost index. (a) The hospital cost index shall be the change
245.8in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted
245.9by Data Resources, Inc. The commissioner shall use the indices as forecasted in the
245.10third quarter of the calendar year prior to the rate year. The hospital cost index may be
245.11used to adjust the base year operating payment rate through the rate year on an annually
245.12compounded basis.
245.13(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human
245.14services shall not provide automatic annual inflation adjustments for hospital payment
245.15rates under medical assistance, nor under general assistance medical care, except that
245.16the inflation adjustments under paragraph (a) for medical assistance, excluding general
245.17assistance medical care, shall apply through calendar year 2001. The index for calendar
245.18year 2000 shall be reduced 2.5 percentage points to recover overprojections of the index
245.19from 1994 to 1996. The commissioner of management and budget shall include as a
245.20budget change request in each biennial detailed expenditure budget submitted to the
245.21legislature under section 16A.11 annual adjustments in hospital payment rates under
245.22medical assistance and general assistance medical care, based upon the hospital cost index.

245.23    Sec. 6. Minnesota Statutes 2012, section 256.969, subdivision 2, is amended to read:
245.24    Subd. 2. Diagnostic categories. The commissioner shall use to the extent possible
245.25existing diagnostic classification systems, including such as the system used by the
245.26Medicare program all patient refined diagnosis-related groups (APR-DRGs) or other
245.27similar classification programs to determine the relative values of inpatient services
245.28and case mix indices. The commissioner may combine diagnostic classifications into
245.29diagnostic categories and may establish separate categories and numbers of categories
245.30based on program eligibility or hospital peer group. Relative values shall be recalculated
245.31 recalibrated when the base year is changed. Relative value determinations shall include
245.32paid claims for admissions during each hospital's base year. The commissioner may
245.33extend the time period forward to obtain sufficiently valid information to establish relative
245.34values supplement the diagnostic classification systems data with national averages.
246.1Relative value determinations shall not include property cost data, Medicare crossover
246.2data, and data on admissions that are paid a per day transfer rate under subdivision 14. The
246.3computation of the base year cost per admission must include identified outlier cases and
246.4their weighted costs up to the point that they become outlier cases, but must exclude costs
246.5recognized in outlier payments beyond that point. The commissioner may recategorize the
246.6diagnostic classifications and recalculate recalibrate relative values and case mix indices
246.7to reflect actual hospital practices, the specific character of specialty hospitals, or to reduce
246.8variances within the diagnostic categories after notice in the State Register and a 30-day
246.9comment period. The commissioner shall recategorize the diagnostic classifications and
246.10recalculate relative values and case mix indices based on the two-year schedule in effect
246.11prior to January 1, 2013, reflected in subdivision 2b. The first recategorization shall occur
246.12January 1, 2013, and shall occur every two years after. When rates are not rebased under
246.13subdivision 2b, the commissioner may establish relative values and case mix indices based
246.14on charge data and may update the base year to the most recent data available.

246.15    Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:
246.16    Subd. 2b. Operating Hospital payment rates. (a) For discharges occurring on and
246.17after September 1, 2014, hospital inpatient services for hospitals located in Minnesota
246.18shall be paid according to the following:
246.19    (1) critical access hospitals as defined by Medicare shall be paid using a cost-based
246.20methodology;
246.21    (2) long-term care hospitals as defined by Medicare shall be paid on a per diem
246.22methodology under subdivision 25;
246.23    (3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation
246.24distinct parts as defined by Medicare shall be paid according to the methodology under
246.25subdivision 12; and
246.26    (4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
246.27    (b) In determining operating payment rates for admissions occurring on or after the
246.28rate year beginning January 1, 1991, and every two years after, or more frequently as
246.29determined by the commissioner, the commissioner shall obtain operating data from an
246.30updated base year and establish operating payment rates per admission for each hospital
246.31based on the cost-finding methods and allowable costs of the Medicare program in effect
246.32during the base year. Rates under the general assistance medical care, medical assistance,
246.33and MinnesotaCare programs shall not be rebased to more current data on January 1, 1997,
246.34January 1, 2005, for the first 24 months of the rebased period beginning January 1, 2009.
246.35 For the rebased period beginning January 1, 2011, through August 31, 2014, rates shall not
247.1be rebased, except that a Minnesota long-term hospital shall be rebased effective January 1,
247.22011, based on its most recent Medicare cost report ending on or before September 1, 2008,
247.3with the provisions under subdivisions 9 and 23, based on the rates in effect on December
247.431, 2010. For subsequent rate setting periods after September 1, 2014, in which the base
247.5years are updated, a Minnesota long-term hospital's base year shall remain within the same
247.6period as other hospitals. Effective January 1, 2013, and after, rates shall not be rebased.
247.7(c) Effective for discharges occurring on and after September 1, 2014, payment rates
247.8for hospital inpatient services provided by hospitals located in Minnesota or the local trade
247.9area, except those hospitals paid under the methodologies under paragraph (a), clauses
247.10(2) and (3), shall be rebased incorporating cost and payment methodologies in a manner
247.11similar to Medicare. The base year for the rates effective September 1, 2014, shall be state
247.12fiscal year 2012. The rebasing must be budget neutral, ensuring that the total aggregate
247.13payments under the rebased system are equal to the total aggregate payments made for the
247.14same number and types of services in the base year. Separate budget neutrality calculations
247.15shall be determined for payments made to critical access hospitals and payments made to
247.16hospitals paid under the DRG system. Any rate increases or decreases under subdivision
247.173a that applied to the hospitals being rebased during the base period shall be incorporated
247.18into the budget neutrality calculation. Any rate increases or decreases that did not apply to
247.19the base period shall not be considered in the budget neutrality calculation.
247.20(d) For discharges occurring September 1, 2014, through and including June 30,
247.212016, the rebased rates shall include necessary adjustments to the projected rates that
247.22result in no greater than a five percent increase or decrease from the base year payments
247.23for any hospital. In addition to such adjustments, the commissioner may make adjustments
247.24to rates and must consider the impact of changes on at least the following when evaluating
247.25whether additional adjustments should be made:
247.26(1) pediatric services;
247.27(2) behavioral health services;
247.28(3) trauma services as defined by the National Uniform Billing Committee;
247.29(4) transplant services;
247.30(5) obstetric services, newborn services, and behavioral health services provided
247.31by hospitals outside the seven-county metropolitan area;
247.32(6) outlier admissions;
247.33(7) low volume providers; and
247.34(8) services provided by small rural hospitals that are not critical access hospitals.
247.35    (e) Hospital payment rates established under paragraph (c) shall incorporate the
247.36following:
248.1    (1) for hospitals paid under the DRG methodology, the base year operating payment
248.2rate per admission is standardized by the case mix index and adjusted by the hospital cost
248.3index, relative values, and disproportionate population adjustment. applicable Medicare
248.4wage index and adjusted by the hospital's disproportionate population adjustment;
248.5    (2) for critical access hospitals, interim per diem payment rates shall be based on the
248.6ratio of cost and charges reported on the base year Medicare cost report or reports and
248.7applied to medical assistance utilization data. Final settlement payments for a state fiscal
248.8year will be determined based on a review of the Medicaid cost report for the applicable
248.9state fiscal year;
248.10    (3) the cost and charge data used to establish operating hospital payment rates shall
248.11only reflect inpatient services covered by medical assistance and shall not include property
248.12cost information and costs recognized in outlier payments; and
248.13    (4) in determining hospital payment rates for discharges occurring on or after the
248.14rate year beginning January 1, 2011, through December 31, 2012, the hospital payment
248.15rate per discharge must be based on the cost-finding methods and allowable costs of the
248.16Medicare program in effect during the base year or years.

248.17    Sec. 8. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
248.18to read:
248.19    Subd. 2d. Budget neutrality factor. For the rebased period effective September 1,
248.202014, when rebasing rates under subdivision 2b, paragraph (c), the commissioner must
248.21apply a budget neutrality factor if applicable to all hospitals' rebased rates to ensure that
248.22total DRG and critical access hospital payments to hospitals do not exceed total DRG and
248.23critical access hospital payments that would have been made to hospitals for the same
248.24number and types of services if the relative rates and weights had not been recalibrated
248.25and cost-based payments for critical access hospitals had not been established. For the
248.26purposes of this section, budget neutrality factor equals the percentage change from total
248.27aggregate payments calculated under a new payment system to total aggregate payments
248.28calculated under the old system for the same number and types of services.

248.29    Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
248.30to read:
248.31    Subd. 2e. Interim payments. Notwithstanding subdivision 2b, for discharges
248.32occurring on or after September 1, 2014, and no later than June 30, 2015, the commissioner
248.33may implement an interim payment process to pay hospitals, including payments based on
248.34each hospital's average payments per claim for state fiscal years 2011 and 2012. These
249.1interim payments may be used to pay hospitals if the new payment system and rebasing
249.2under subdivision 2b is not complete by September 1, 2014. Claims paid at interim
249.3payment rates shall be reprocessed and paid at the rates established under the new system
249.4upon implementation of the new system.

249.5    Sec. 10. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
249.6to read:
249.7    Subd. 2f. Report required. (a) The commissioner shall annually report to the
249.8legislature beginning March 1, 2015, and ending March 1, 2016, on the financial impacts
249.9by hospital and policy ramifications, if any, resulting from payment methodology changes
249.10implemented after August 31, 2014, and before December 31, 2015.
249.11(b) The commissioner shall provide, at a minimum, the following information:
249.12(1) case-mix adjusted calculations of net payment impacts for each hospital resulting
249.13from the difference between the payments each hospital would have received under the
249.14payment methodology for discharges before August 31, 2014, and the payments each
249.15hospital has or is expected to receive for the same number and types of services under the
249.16payment methodology implemented effective September 1, 2014;
249.17(2) any adjustments authorized under subdivision 2b, paragraph (d), that were made
249.18and the impacts of those adjustments; and
249.19(3) recommendations for further refinement or improvement of the hospital inpatient
249.20payment system or methodologies.

249.21    Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:
249.22    Subd. 3a. Payments. (a) Acute care hospital billings under the medical
249.23assistance program must not be submitted until the recipient is discharged. However,
249.24the commissioner shall establish monthly interim payments for inpatient hospitals that
249.25have individual patient lengths of stay over 30 days regardless of diagnostic category.
249.26Except as provided in section 256.9693, medical assistance reimbursement for treatment
249.27of mental illness shall be reimbursed based on diagnostic classifications. Individual
249.28hospital payments established under this section and sections 256.9685, 256.9686, and
249.29256.9695 , in addition to third-party and recipient liability, for discharges occurring during
249.30the rate year shall not exceed, in aggregate, the charges for the medical assistance covered
249.31inpatient services paid for the same period of time to the hospital. This payment limitation
249.32shall be calculated separately for medical assistance and general assistance medical
249.33care services. The limitation on general assistance medical care shall be effective for
249.34admissions occurring on or after July 1, 1991. Services that have rates established under
250.1subdivision 11 or 12, must be limited separately from other services. After consulting with
250.2the affected hospitals, the commissioner may consider related hospitals one entity and may
250.3merge the payment rates while maintaining separate provider numbers. The operating and
250.4property base rates per admission or per day shall be derived from the best Medicare and
250.5claims data available when rates are established. The commissioner shall determine the
250.6best Medicare and claims data, taking into consideration variables of recency of the data,
250.7audit disposition, settlement status, and the ability to set rates in a timely manner. The
250.8commissioner shall notify hospitals of payment rates by December 1 of the year preceding
250.9the rate year 30 days prior to implementation. The rate setting data must reflect the
250.10admissions data used to establish relative values. Base year changes from 1981 to the base
250.11year established for the rate year beginning January 1, 1991, and for subsequent rate years,
250.12shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase
250.13under subdivision 1. The commissioner may adjust base year cost, relative value, and case
250.14mix index data to exclude the costs of services that have been discontinued by the October
250.151 of the year preceding the rate year or that are paid separately from inpatient services.
250.16Inpatient stays that encompass portions of two or more rate years shall have payments
250.17established based on payment rates in effect at the time of admission unless the date of
250.18admission preceded the rate year in effect by six months or more. In this case, operating
250.19payment rates for services rendered during the rate year in effect and established based on
250.20the date of admission shall be adjusted to the rate year in effect by the hospital cost index.
250.21    (b) For fee-for-service admissions occurring on or after July 1, 2002, the total
250.22payment, before third-party liability and spenddown, made to hospitals for inpatient
250.23services is reduced by .5 percent from the current statutory rates.
250.24    (c) In addition to the reduction in paragraph (b), the total payment for fee-for-service
250.25admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before
250.26third-party liability and spenddown, is reduced five percent from the current statutory
250.27rates. Mental health services within diagnosis related groups 424 to 432 or corresponding
250.28APR-DRGs, and facilities defined under subdivision 16 are excluded from this paragraph.
250.29    (d) In addition to the reduction in paragraphs (b) and (c), the total payment for
250.30fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for
250.31inpatient services before third-party liability and spenddown, is reduced 6.0 percent from
250.32the current statutory rates. Mental health services within diagnosis related groups 424 to
250.33432 or corresponding APR-DRGs and facilities defined under subdivision 16 are excluded
250.34from this paragraph. Notwithstanding section 256.9686, subdivision 7, for purposes
250.35of this paragraph, medical assistance does not include general assistance medical care.
251.1 Payments made to managed care plans shall be reduced for services provided on or after
251.2January 1, 2006, to reflect this reduction.
251.3    (e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
251.4for fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009,
251.5made to hospitals for inpatient services before third-party liability and spenddown,
251.6is reduced 3.46 percent from the current statutory rates. Mental health services with
251.7diagnosis related groups 424 to 432 or corresponding APR-DRGs and facilities defined
251.8under subdivision 16 are excluded from this paragraph. Payments made to managed care
251.9plans shall be reduced for services provided on or after January 1, 2009, through June
251.1030, 2009, to reflect this reduction.
251.11    (f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
251.12for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011,
251.13made to hospitals for inpatient services before third-party liability and spenddown, is
251.14reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis
251.15related groups 424 to 432 or corresponding APR-DRGs and facilities defined under
251.16subdivision 16 are excluded from this paragraph. Payments made to managed care plans
251.17shall be reduced for services provided on or after July 1, 2009, through June 30, 2011,
251.18to reflect this reduction.
251.19    (g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
251.20for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for
251.21inpatient services before third-party liability and spenddown, is reduced 1.79 percent from
251.22the current statutory rates. Mental health services with diagnosis related groups 424 to 432
251.23or corresponding APR-DRGs and facilities defined under subdivision 16 are excluded
251.24from this paragraph. Payments made to managed care plans shall be reduced for services
251.25provided on or after July 1, 2011, to reflect this reduction.
251.26(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total
251.27payment for fee-for-service admissions occurring on or after July 1, 2009, made to
251.28hospitals for inpatient services before third-party liability and spenddown, is reduced
251.29one percent from the current statutory rates. Facilities defined under subdivision 16 are
251.30excluded from this paragraph. Payments made to managed care plans shall be reduced for
251.31services provided on or after October 1, 2009, to reflect this reduction.
251.32(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total
251.33payment for fee-for-service admissions occurring on or after July 1, 2011, made to
251.34hospitals for inpatient services before third-party liability and spenddown, is reduced
251.351.96 percent from the current statutory rates. Facilities defined under subdivision 16 are
252.1excluded from this paragraph. Payments made to managed care plans shall be reduced for
252.2services provided on or after January 1, 2011, to reflect this reduction.
252.3(j) Effective for discharges on and after September 1, 2014, from hospitals paid
252.4under subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this
252.5subdivision shall be incorporated into the rebased rates established under subdivision 2b,
252.6paragraph (c), and shall not be applied to each claim.

252.7    Sec. 12. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:
252.8    Subd. 3b. Nonpayment for hospital-acquired conditions and for certain
252.9treatments. (a) The commissioner must not make medical assistance payments to a
252.10hospital for any costs of care that result from a condition listed identified in paragraph
252.11(c), if the condition was hospital acquired.
252.12    (b) For purposes of this subdivision, a condition is hospital acquired if it is not
252.13identified by the hospital as present on admission. For purposes of this subdivision,
252.14medical assistance includes general assistance medical care and MinnesotaCare.
252.15(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired
252.16condition listed identified in this paragraph that is represented by an ICD-9-CM or
252.17ICD-10-CM diagnosis code and is designated as a complicating condition or a major
252.18complicating condition:. The list of conditions shall be the hospital-acquired conditions
252.19list defined by the Centers for Medicare and Medicaid Services on an annual basis.
252.20(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);
252.21(2) air embolism (ICD-9-CM code 999.1);
252.22(3) blood incompatibility (ICD-9-CM code 999.6);
252.23(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);
252.24(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing
252.25injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating
252.26condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929;
252.27940-949; and 991-994);
252.28(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);
252.29(7) vascular catheter-associated infection (ICD-9-CM code 999.31);
252.30(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11;
252.31249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and
252.32251.0);
252.33(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain
252.34orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07;
253.181.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and
253.281.85);
253.3(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery
253.4(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity
253.5(ICD-9-CM code 278.01);
253.6(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary
253.7artery bypass graft (procedure codes 36.10 to 36.19); and
253.8(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary
253.9embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement
253.10(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51
253.11to 81.52).
253.12(d) The prohibition in paragraph (a) applies to any additional payments that result
253.13from a hospital-acquired condition listed identified in paragraph (c), including, but not
253.14limited to, additional treatment or procedures, readmission to the facility after discharge,
253.15increased length of stay, change to a higher diagnostic category, or transfer to another
253.16hospital. In the event of a transfer to another hospital, the hospital where the condition
253.17listed identified under paragraph (c) was acquired is responsible for any costs incurred at
253.18the hospital to which the patient is transferred.
253.19(e) A hospital shall not bill a recipient of services for any payment disallowed under
253.20this subdivision.

253.21    Sec. 13. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
253.22to read:
253.23    Subd. 3d. Rate increase. The total payment for fee for service admissions occurring
253.24on or after July 1, 2014, through December 31, 2014, made to hospitals for inpatient
253.25services before third-party liability and spenddown, is increased by three percent from
253.26the current statutory rates. Facilities defined under subdivision 16, long-term hospitals
253.27as determined under the Medicare program, children's hospitals whose inpatients are
253.28predominantly under 18 years of age, and payments under managed care are excluded
253.29from this rate increase.

253.30    Sec. 14. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
253.31to read:
253.32    Subd. 4b. Medical assistance cost reports for services. (a) A hospital that meets
253.33one of the following criteria must annually file medical assistance cost reports within six
253.34months of the end of the hospital's fiscal year:
254.1(1) a hospital designated as a critical access hospital that receives medical assistance
254.2payments; or
254.3(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local
254.4trade area that receives a disproportionate population adjustment under subdivision 9.
254.5For purposes of this subdivision, local trade area has the meaning given in subdivision 17.
254.6(b) The Department of Human Services must suspend payments to any hospital that
254.7fails to file a report required under this subdivision. Payments must remain suspended
254.8until the report has been filed with and accepted by the Department of Human Services
254.9inpatient rates unit.

254.10    Sec. 15. Minnesota Statutes 2012, section 256.969, subdivision 6a, is amended to read:
254.11    Subd. 6a. Special considerations. In determining the payment rates, the
254.12commissioner shall consider whether the circumstances in subdivisions 7 8 to 14 exist.

254.13    Sec. 16. Minnesota Statutes 2012, section 256.969, subdivision 8, is amended to read:
254.14    Subd. 8. Unusual length of stay experience. (a) The commissioner shall establish
254.15day outlier thresholds for each diagnostic category established under subdivision 2 at
254.16two standard deviations beyond the mean length of stay. Payment for the days beyond
254.17the outlier threshold shall be in addition to the operating and property payment rates per
254.18admission established under subdivisions 2, and 2b, and 2c. Payment for outliers shall
254.19be at 70 percent of the allowable operating cost, after adjustment by the case mix index,
254.20hospital cost index, relative values and the disproportionate population adjustment. The
254.21outlier threshold for neonatal and burn diagnostic categories shall be established at one
254.22standard deviation beyond the mean length of stay, and payment shall be at 90 percent
254.23of allowable operating cost calculated in the same manner as other outliers. A hospital
254.24may choose an alternative to the 70 percent outlier payment that is at a minimum of 60
254.25percent and a maximum of 80 percent if the commissioner is notified in writing of the
254.26request by October 1 of the year preceding the rate year. The chosen percentage applies
254.27to all diagnostic categories except burns and neonates. The percentage of allowable cost
254.28that is unrecognized by the outlier payment shall be added back to the base year operating
254.29payment rate per admission.
254.30(b) Effective for transfers occurring on or after September 1, 2014, the commissioner
254.31shall establish payment rates for acute transfers that are based on Medicare methodologies.

254.32    Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 8a, is amended to read:
255.1    Subd. 8a. Short length of stay. Except as provided in subdivision 13, for
255.2admissions occurring on or after July 1, 1995, payment shall be determined as follows and
255.3shall be included in the base year for rate setting purposes:
255.4(1) for an admission that is categorized to a neonatal diagnostic related group
255.5in which the length of stay is less than 50 percent of the average length of stay for the
255.6category in the base year and the patient at admission is equal to or greater than the age of
255.7one, payments shall be established according to the methods of subdivision 14;
255.8(2) For an admission that is categorized to a diagnostic category that includes
255.9neonatal respiratory distress syndrome, the hospital must have a level II or level III
255.10nursery and the patient must receive treatment in that unit or payment will be made
255.11without regard to the syndrome condition.

255.12    Sec. 18. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
255.13to read:
255.14    Subd. 8c. Hospital residents. Payments for hospital residents shall be made
255.15as follows:
255.16(1) payments for the first 180 days of inpatient care shall be the DRG system
255.17payment plus any appropriate outliers; and
255.18(2) payment for all medically necessary patient care subsequent to 180 days shall
255.19be reimbursed at a rate equal to 80 percent of the product of the statewide average
255.20cost-to-charge ratio multiplied by the usual and customary charges.

255.21    Sec. 19. Minnesota Statutes 2012, section 256.969, subdivision 9, is amended to read:
255.22    Subd. 9. Disproportionate numbers of low-income patients served. (a) For
255.23admissions occurring on or after October 1, 1992, through December 31, 1992, the
255.24medical assistance disproportionate population adjustment shall comply with federal law
255.25and shall be paid to a hospital, excluding regional treatment centers and facilities of the
255.26federal Indian Health Service, with a medical assistance inpatient utilization rate in excess
255.27of the arithmetic mean. The adjustment must be determined as follows:
255.28    (1) for a hospital with a medical assistance inpatient utilization rate above the
255.29arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
255.30federal Indian Health Service but less than or equal to one standard deviation above the
255.31mean, the adjustment must be determined by multiplying the total of the operating and
255.32property payment rates by the difference between the hospital's actual medical assistance
255.33inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
255.34treatment centers and facilities of the federal Indian Health Service; and
256.1    (2) for a hospital with a medical assistance inpatient utilization rate above one
256.2standard deviation above the mean, the adjustment must be determined by multiplying
256.3the adjustment that would be determined under clause (1) for that hospital by 1.1. If
256.4federal matching funds are not available for all adjustments under this subdivision, the
256.5commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for
256.6federal match. The commissioner may establish a separate disproportionate population
256.7operating payment rate adjustment under the general assistance medical care program.
256.8For purposes of this subdivision medical assistance does not include general assistance
256.9medical care. The commissioner shall report annually on the number of hospitals likely to
256.10receive the adjustment authorized by this paragraph. The commissioner shall specifically
256.11report on the adjustments received by public hospitals and public hospital corporations
256.12located in cities of the first class.
256.13    (b) For admissions occurring on or after July 1, 1993, the medical assistance
256.14disproportionate population adjustment shall comply with federal law and shall be paid to
256.15a hospital, excluding regional treatment centers and facilities of the federal Indian Health
256.16Service, with a medical assistance inpatient utilization rate in excess of the arithmetic
256.17mean. The adjustment must be determined as follows:
256.18    (1) for a hospital with a medical assistance inpatient utilization rate above the
256.19arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
256.20federal Indian Health Service but less than or equal to one standard deviation above the
256.21mean, the adjustment must be determined by multiplying the total of the operating and
256.22property payment rates by the difference between the hospital's actual medical assistance
256.23inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
256.24treatment centers and facilities of the federal Indian Health Service; and
256.25    (2) for a hospital with a medical assistance inpatient utilization rate above one
256.26standard deviation above the mean, the adjustment must be determined by multiplying
256.27the adjustment that would be determined under clause (1) for that hospital by 1.1. The
256.28commissioner may establish a separate disproportionate population operating payment
256.29rate adjustment under the general assistance medical care program. For purposes of this
256.30subdivision, medical assistance does not include general assistance medical care. The
256.31commissioner shall report annually on the number of hospitals likely to receive the
256.32adjustment authorized by this paragraph. The commissioner shall specifically report on
256.33the adjustments received by public hospitals and public hospital corporations located in
256.34cities of the first class;.
256.35    (3) for a hospital that had medical assistance fee-for-service payment volume during
256.36calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service
257.1payment volume, a medical assistance disproportionate population adjustment shall be
257.2paid in addition to any other disproportionate payment due under this subdivision as
257.3follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995.
257.4For a hospital that had medical assistance fee-for-service payment volume during calendar
257.5year 1991 in excess of eight percent of total medical assistance fee-for-service payment
257.6volume and was the primary hospital affiliated with the University of Minnesota, a
257.7medical assistance disproportionate population adjustment shall be paid in addition to any
257.8other disproportionate payment due under this subdivision as follows: $505,000 due on
257.9the 15th of each month after noon, beginning July 15, 1995; and
257.10    (4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be
257.11reduced to zero.
257.12    (c) The commissioner shall adjust rates paid to a health maintenance organization
257.13under contract with the commissioner to reflect rate increases provided in paragraph (b),
257.14clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those
257.15rates to reflect payments provided in clause (3).
257.16    (d) If federal matching funds are not available for all adjustments under paragraph
257.17(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a
257.18pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
257.19    (e) For purposes of this subdivision, medical assistance does not include general
257.20assistance medical care.
257.21    (f) For hospital services occurring on or after July 1, 2005, to June 30, 2007:
257.22    (1) general assistance medical care expenditures for fee-for-service inpatient and
257.23outpatient hospital payments made by the department shall be considered Medicaid
257.24disproportionate share hospital payments, except as limited below:
257.25     (i) only the portion of Minnesota's disproportionate share hospital allotment under
257.26section 1923(f) of the Social Security Act that is not spent on the disproportionate
257.27population adjustments in paragraph (b), clauses (1) and (2), may be used for general
257.28assistance medical care expenditures;
257.29     (ii) only those general assistance medical care expenditures made to hospitals that
257.30qualify for disproportionate share payments under section 1923 of the Social Security Act
257.31and the Medicaid state plan may be considered disproportionate share hospital payments;
257.32     (iii) only those general assistance medical care expenditures made to an individual
257.33hospital that would not cause the hospital to exceed its individual hospital limits under
257.34section 1923 of the Social Security Act may be considered; and
257.35     (iv) general assistance medical care expenditures may be considered only to the
257.36extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
258.1All hospitals and prepaid health plans participating in general assistance medical care
258.2must provide any necessary expenditure, cost, and revenue information required by the
258.3commissioner as necessary for purposes of obtaining federal Medicaid matching funds for
258.4general assistance medical care expenditures; and
258.5    (2) (c) Certified public expenditures made by Hennepin County Medical Center shall
258.6be considered Medicaid disproportionate share hospital payments. Hennepin County
258.7and Hennepin County Medical Center shall report by June 15, 2007, on payments made
258.8beginning July 1, 2005, or another date specified by the commissioner, that may qualify
258.9for reimbursement under federal law. Based on these reports, the commissioner shall
258.10apply for federal matching funds.
258.11    (g) (d) Upon federal approval of the related state plan amendment, paragraph (f) (c)
258.12 is effective retroactively from July 1, 2005, or the earliest effective date approved by the
258.13Centers for Medicare and Medicaid Services.

258.14    Sec. 20. Minnesota Statutes 2012, section 256.969, subdivision 10, is amended to read:
258.15    Subd. 10. Separate billing by certified registered nurse anesthetists. Hospitals
258.16may must exclude certified registered nurse anesthetist costs from the operating payment
258.17rate as allowed by section 256B.0625, subdivision 11. To be eligible, a hospital must
258.18notify the commissioner in writing by October 1 of even-numbered years to exclude
258.19certified registered nurse anesthetist costs. The hospital must agree that all hospital
258.20claims for the cost and charges of certified registered nurse anesthetist services will not
258.21be included as part of the rates for inpatient services provided during the rate year. In
258.22this case, the operating payment rate shall be adjusted to exclude the cost of certified
258.23registered nurse anesthetist services.
258.24For admissions occurring on or after July 1, 1991, and until the expiration date of
258.25section 256.9695, subdivision 3, services of certified registered nurse anesthetists provided
258.26on an inpatient basis may be paid as allowed by section 256B.0625, subdivision 11, when
258.27the hospital's base year did not include the cost of these services. To be eligible, a hospital
258.28must notify the commissioner in writing by July 1, 1991, of the request and must comply
258.29with all other requirements of this subdivision.

258.30    Sec. 21. Minnesota Statutes 2012, section 256.969, subdivision 12, is amended to read:
258.31    Subd. 12. Rehabilitation distinct parts. (a) Units of hospitals that are recognized
258.32as rehabilitation distinct parts by the Medicare program shall have separate provider
258.33numbers under the medical assistance program for rate establishment and billing
258.34purposes only. These units shall also have operating and property payment rates and the
259.1disproportionate population adjustment, if allowed by federal law, established separately
259.2from other inpatient hospital services.
259.3(b) The commissioner may shall establish separate relative values under subdivision
259.42 for rehabilitation hospitals and distinct parts as defined by the Medicare program.
259.5 Effective for discharges on or after September 1, 2014, the commissioner, to the extent
259.6possible, shall replicate the existing payment rate methodology under the new diagnostic
259.7classification system. The result must be budget neutral, ensuring that the total aggregate
259.8payments under the new system are equal to the total aggregate payments made for the
259.9same number and types of services in the base year, state fiscal year 2012.
259.10(c) For individual hospitals that did not have separate medical assistance
259.11rehabilitation provider numbers or rehabilitation distinct parts in the base year, hospitals
259.12shall provide the information needed to separate rehabilitation distinct part cost and claims
259.13data from other inpatient service data.

259.14    Sec. 22. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:
259.15    Subd. 14. Transfers. Except as provided in subdivisions 11 and 13, (a) Operating
259.16and property payment rates for admissions that result in transfers and transfers shall be
259.17established on a per day payment system. The per day payment rate shall be the sum of
259.18the adjusted operating and property payment rates determined under this subdivision and
259.19subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 to 12, divided by the arithmetic mean length of
259.20stay for the diagnostic category. Each admission that results in a transfer and each transfer
259.21is considered a separate admission to each hospital, and the total of the admission and
259.22transfer payments to each hospital must not exceed the total per admission payment that
259.23would otherwise be made to each hospital under this subdivision and subdivisions 2, 2b,
259.242c, 3a, 4a, 5a, and 7 to 13 8 to 12.
259.25(b) Effective for transfers occurring on and after September 1, 2014, the commissioner
259.26shall establish payment rates for acute transfers that are based on Medicare methodologies.

259.27    Sec. 23. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:
259.28    Subd. 17. Out-of-state hospitals in local trade areas. Out-of-state hospitals that
259.29are located within a Minnesota local trade area and that have more than 20 admissions in
259.30the base year or years shall have rates established using the same procedures and methods
259.31that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area
259.32means a county contiguous to Minnesota and located in a metropolitan statistical area as
259.33determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals
259.34that are not required by law to file information in a format necessary to establish rates shall
260.1have rates established based on the commissioner's estimates of the information. Relative
260.2values of the diagnostic categories shall not be redetermined under this subdivision until
260.3required by rule statute. Hospitals affected by this subdivision shall then be included in
260.4determining relative values. However, hospitals that have rates established based upon
260.5the commissioner's estimates of information shall not be included in determining relative
260.6values. This subdivision is effective for hospital fiscal years beginning on or after July
260.71, 1988. A hospital shall provide the information necessary to establish rates under this
260.8subdivision at least 90 days before the start of the hospital's fiscal year.

260.9    Sec. 24. Minnesota Statutes 2012, section 256.969, subdivision 18, is amended to read:
260.10    Subd. 18. Out-of-state hospitals outside local trade areas. Hospitals that are
260.11not located within Minnesota or a Minnesota local trade area shall have operating and
260.12property inpatient hospital rates established at the average of statewide and local trade area
260.13rates or, at the commissioner's discretion, at an amount negotiated by the commissioner.
260.14Relative values shall not include data from hospitals that have rates established under this
260.15subdivision. Payments, including third-party and recipient liability, established under this
260.16subdivision may not exceed the charges on a claim specific basis for inpatient services that
260.17are covered by medical assistance.

260.18    Sec. 25. Minnesota Statutes 2012, section 256.969, subdivision 25, is amended to read:
260.19    Subd. 25. Long-term hospital rates. (a) Long-term hospitals shall be paid a per
260.20diem rate established by the commissioner.
260.21(b) For admissions occurring on or after April 1, 1995, a long-term hospital as
260.22designated by Medicare that does not have admissions in the base year shall have
260.23inpatient rates established at the average of other hospitals with the same designation. For
260.24subsequent rate-setting periods in which base years are updated, the hospital's base year
260.25shall be the first Medicare cost report filed with the long-term hospital designation and
260.26shall remain in effect until it falls within the same period as other hospitals.

260.27    Sec. 26. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:
260.28    Subd. 30. Payment rates for births. (a) For admissions occurring on or after
260.29October 1, 2009, September 1, 2014, the total operating and property payment rate,
260.30excluding disproportionate population adjustment, for the following diagnosis-related
260.31groups, as they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section
260.32without complicating diagnosis; (2) 372 vaginal delivery with complicating diagnosis;
261.1and (3) 373 vaginal delivery without complicating diagnosis, 5401, 5402, 5403, and 5404
261.2cesarean section, shall be no greater than $3,528.
261.3(b) The rates described in this subdivision do not include newborn care.
261.4(c) Payments to managed care and county-based purchasing plans under section
261.5256B.69 , 256B.692, or 256L.12 shall be reduced for services provided on or after October
261.61, 2009, to reflect the adjustments in paragraph (a).
261.7(d) Prior authorization shall not be required before reimbursement is paid for a
261.8cesarean section delivery.

261.9    Sec. 27. Minnesota Statutes 2012, section 256B.04, is amended by adding a
261.10subdivision to read:
261.11    Subd. 24. Medicaid waiver requests and state plan amendments. Prior to
261.12submitting any Medicaid waiver request or Medicaid state plan amendment to the federal
261.13government for approval, the commissioner shall publish the text of the waiver request or
261.14state plan amendment, and a summary of and explanation of the need for the request, on
261.15the agency's Web site and provide a 30-day public comment period. The commissioner
261.16shall notify the public of the availability of this information through the agency's electronic
261.17subscription service. The commissioner shall consider public comments when preparing
261.18the final waiver request or state plan amendment that is to be submitted to the federal
261.19government for approval. The commissioner shall also publish on the agency's Web site
261.20notice of any federal decision related to the state request for approval, within 30 days of
261.21the decision. This notice must describe any modifications to the state request that have
261.22been agreed to by the commissioner as a condition of receiving federal approval.

261.23    Sec. 28. Minnesota Statutes 2013 Supplement, section 256B.056, subdivision 5c,
261.24is amended to read:
261.25    Subd. 5c. Excess income standard. (a) The excess income standard for parents
261.26and caretaker relatives, pregnant women, infants, and children ages two through 20 is the
261.27standard specified in subdivision 4, paragraph (b).
261.28(b) The excess income standard for a person whose eligibility is based on blindness,
261.29disability, or age of 65 or more years shall equal 75 percent of the federal poverty
261.30guidelines. The excess income standard under this paragraph shall equal 80 percent of
261.31the federal poverty guidelines, effective January 1, 2017.

261.32    Sec. 29. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to
261.33read:
262.1    Subd. 30. Other clinic services. (a) Medical assistance covers rural health clinic
262.2services, federally qualified health center services, nonprofit community health clinic
262.3services, and public health clinic services. Rural health clinic services and federally
262.4qualified health center services mean services defined in United States Code, title 42,
262.5section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified
262.6health center services shall be made according to applicable federal law and regulation.
262.7(b) A federally qualified health center that is beginning initial operation shall submit
262.8an estimate of budgeted costs and visits for the initial reporting period in the form and
262.9detail required by the commissioner. A federally qualified health center that is already in
262.10operation shall submit an initial report using actual costs and visits for the initial reporting
262.11period. Within 90 days of the end of its reporting period, a federally qualified health
262.12center shall submit, in the form and detail required by the commissioner, a report of
262.13its operations, including allowable costs actually incurred for the period and the actual
262.14number of visits for services furnished during the period, and other information required
262.15by the commissioner. Federally qualified health centers that file Medicare cost reports
262.16shall provide the commissioner with a copy of the most recent Medicare cost report filed
262.17with the Medicare program intermediary for the reporting year which support the costs
262.18claimed on their cost report to the state.
262.19(c) In order to continue cost-based payment under the medical assistance program
262.20according to paragraphs (a) and (b), a federally qualified health center or rural health clinic
262.21must apply for designation as an essential community provider within six months of final
262.22adoption of rules by the Department of Health according to section 62Q.19, subdivision
262.237 . For those federally qualified health centers and rural health clinics that have applied
262.24for essential community provider status within the six-month time prescribed, medical
262.25assistance payments will continue to be made according to paragraphs (a) and (b) for the
262.26first three years after application. For federally qualified health centers and rural health
262.27clinics that either do not apply within the time specified above or who have had essential
262.28community provider status for three years, medical assistance payments for health services
262.29provided by these entities shall be according to the same rates and conditions applicable
262.30to the same service provided by health care providers that are not federally qualified
262.31health centers or rural health clinics.
262.32(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally
262.33qualified health center or a rural health clinic to make application for an essential
262.34community provider designation in order to have cost-based payments made according
262.35to paragraphs (a) and (b) no longer apply.
263.1(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b)
263.2shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
263.3(f) Effective January 1, 2001, each federally qualified health center and rural health
263.4clinic may elect to be paid either under the prospective payment system established
263.5in United States Code, title 42, section 1396a(aa), or under an alternative payment
263.6methodology consistent with the requirements of United States Code, title 42, section
263.71396a(aa), and approved by the Centers for Medicare and Medicaid Services. The
263.8alternative payment methodology shall be 100 percent of cost as determined according to
263.9Medicare cost principles.
263.10(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
263.11(1) has nonprofit status as specified in chapter 317A;
263.12(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
263.13(3) is established to provide health services to low-income population groups,
263.14uninsured, high-risk and special needs populations, underserved and other special needs
263.15populations;
263.16(4) employs professional staff at least one-half of which are familiar with the
263.17cultural background of their clients;
263.18(5) charges for services on a sliding fee scale designed to provide assistance to
263.19low-income clients based on current poverty income guidelines and family size; and
263.20(6) does not restrict access or services because of a client's financial limitations or
263.21public assistance status and provides no-cost care as needed.
263.22(h) Effective for dates of service on and after January 1, 2015, all claims for payment
263.23of clinic services provided by federally qualified health centers and rural health clinics
263.24shall be submitted directly to the commissioner and paid by the commissioner. The
263.25commissioner shall provide claims information received by the commissioner under
263.26this paragraph for recipients enrolled in managed care to managed care organizations
263.27on a regular basis.
263.28(i) For clinic services provided prior to January 1, 2015, the commissioner shall
263.29calculate and pay monthly the proposed managed care supplemental payments to clinics
263.30and clinics shall conduct a timely review of the payment calculation data in order to
263.31finalize all supplemental payments in accordance with federal law. Any issues arising
263.32from a clinic's review must be reported to the commissioner by January 1, 2017. Upon
263.33final agreement between the commissioner and a clinic on issues identified under this
263.34subdivision, and in accordance with United States Code, title 42, section 1396a(bb), no
263.35supplemental payments for managed care claims for dates of service prior to January 1,
263.362015, shall be made after June 30, 2017. If the commissioner and clinics are unable to
264.1resolve issues under this subdivision, the parties shall submit the dispute to the arbitration
264.2process under section 14.57.

264.3    Sec. 30. Minnesota Statutes 2012, section 256B.0751, is amended by adding a
264.4subdivision to read:
264.5    Subd. 10. Health care homes advisory committee. (a) The commissioners of
264.6health and human services shall establish a health care homes advisory committee to
264.7advise the commissioners on the ongoing statewide implementation of the health care
264.8homes program authorized in this section.
264.9(b) The commissioners shall establish an advisory committee that includes
264.10representatives of the health care professions such as primary care providers; mental
264.11health providers; nursing and care coordinators; certified health care home clinics with
264.12statewide representation; health plan companies; state agencies; employers; academic
264.13researchers; consumers; and organizations that work to improve health care quality in
264.14Minnesota. At least 25 percent of the committee members must be consumers or patients
264.15in health care homes. The commissioners, in making appointments to the committee, shall
264.16ensure geographic representation of all regions of the state.
264.17(c) The advisory committee shall advise the commissioners on ongoing
264.18implementation of the health care homes program, including, but not limited to, the
264.19following activities:
264.20(1) implementation of certified health care homes across the state on performance
264.21management and implementation of benchmarking;
264.22(2) implementation of modifications to the health care homes program based on
264.23results of the legislatively mandated health care home evaluation;
264.24(3) statewide solutions for engagement of employers and commercial payers;
264.25(4) potential modifications of the health care home rules or statutes;
264.26(5) consumer engagement, including patient and family-centered care, patient
264.27activation in health care, and shared decision making;
264.28(6) oversight for health care home subject matter task forces or workgroups; and
264.29(7) other related issues as requested by the commissioners.
264.30(d) The advisory committee shall have the ability to establish subcommittees on
264.31specific topics. The advisory committee is governed by section 15.059. Notwithstanding
264.32section 15.059, the advisory committee does not expire.

264.33    Sec. 31. Minnesota Statutes 2012, section 256B.199, is amended to read:
264.34256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
265.1    (a) Effective July 1, 2007, The commissioner shall apply for federal matching
265.2funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the
265.3commissioner shall apply for matching funds for expenditures in paragraph (e).
265.4    (b) The commissioner shall apply for federal matching funds for certified public
265.5expenditures as follows:
265.6    (1) Hennepin County, Hennepin County Medical Center, Ramsey County, and
265.7 Regions Hospital, the University of Minnesota, and Fairview-University Medical Center
265.8 shall report quarterly to the commissioner beginning June 1, 2007, payments made during
265.9the second previous quarter that may qualify for reimbursement under federal law;
265.10     (2) based on these reports, the commissioner shall apply for federal matching
265.11funds. These funds are appropriated to the commissioner for the payments under section
265.12256.969, subdivision 27; and
265.13     (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform
265.14the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share
265.15hospital payment money expected to be available in the current federal fiscal year.
265.16    (c) The commissioner shall apply for federal matching funds for general assistance
265.17medical care expenditures as follows:
265.18    (1) for hospital services occurring on or after July 1, 2007, general assistance medical
265.19care expenditures for fee-for-service inpatient and outpatient hospital payments made by
265.20the department shall be used to apply for federal matching funds, except as limited below:
265.21    (i) only those general assistance medical care expenditures made to an individual
265.22hospital that would not cause the hospital to exceed its individual hospital limits under
265.23section 1923 of the Social Security Act may be considered; and
265.24    (ii) general assistance medical care expenditures may be considered only to the extent
265.25of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
265.26    (2) all hospitals must provide any necessary expenditure, cost, and revenue
265.27information required by the commissioner as necessary for purposes of obtaining federal
265.28Medicaid matching funds for general assistance medical care expenditures.
265.29(d) (c) For the period from April 1, 2009, to September 30, 2010, the commissioner
265.30shall apply for additional federal matching funds available as disproportionate share
265.31hospital payments under the American Recovery and Reinvestment Act of 2009. These
265.32funds shall be made available as the state share of payments under section 256.969,
265.33subdivision 28 . The entities required to report certified public expenditures under
265.34paragraph (b), clause (1), shall report additional certified public expenditures as necessary
265.35under this paragraph.
266.1(e) (d) For services provided on or after September 1, 2011, the commissioner shall
266.2apply for additional federal matching funds available as disproportionate share hospital
266.3payments under the MinnesotaCare program according to the requirements and conditions
266.4of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate
266.5share hospital for purposes of this paragraph, if the hospital does not qualify for a payment
266.6under section 256.969, subdivision 9, paragraph (b).

266.7    Sec. 32. Minnesota Statutes 2012, section 256B.35, subdivision 1, is amended to read:
266.8    Subdivision 1. Personal needs allowance. (a) Notwithstanding any law to the
266.9contrary, welfare allowances for clothing and personal needs for individuals receiving
266.10medical assistance while residing in any skilled nursing home, intermediate care facility,
266.11or medical institution including recipients of Supplemental Security Income, in this state
266.12shall not be less than $45 per month from all sources. When benefit amounts for Social
266.13Security or Supplemental Security Income recipients are increased pursuant to United
266.14States Code, title 42, sections 415(i) and 1382f, the commissioner shall, effective in the
266.15month in which the increase takes effect, increase by the same percentage to the nearest
266.16whole dollar the clothing and personal needs allowance for individuals receiving medical
266.17assistance while residing in any skilled nursing home, medical institution, or intermediate
266.18care facility. The commissioner shall provide timely notice to local agencies, providers,
266.19and recipients of increases under this provision.
266.20(b) The personal needs allowance may be paid as part of the Minnesota supplemental
266.21aid program, and payments to recipients of Minnesota supplemental aid may be made once
266.22each three months covering liabilities that accrued during the preceding three months.
266.23(c) The personal needs allowance shall be increased to include income garnished
266.24for child support under a court order, up to a maximum of $250 per month but only to
266.25the extent that the amount garnished is not deducted as a monthly allowance for children
266.26under section 256B.0575, paragraph (a), clause (5).
266.27(d) Solely for the purpose of section 256B.0575, subdivision 1, paragraph (a), clause
266.28(1), the personal needs allowance shall be increased to include income garnished for
266.29spousal maintenance under a judgment and decree for dissolution of marriage, and any
266.30administrative fees garnished for collection efforts.

266.31    Sec. 33. Minnesota Statutes 2013 Supplement, section 256B.69, subdivision 34,
266.32is amended to read:
266.33    Subd. 34. Supplemental recovery program. The commissioner shall conduct a
266.34supplemental recovery program for third-party liabilities, identified through coordination
267.1of benefits, not recovered by managed care plans and county-based purchasing plans for
267.2state public health programs. Any third-party liability identified through coordination
267.3of benefits, and recovered by the commissioner more than six eight months after the
267.4date a managed care plan or county-based purchasing plan receives adjudicates a health
267.5care claim, shall be retained by the commissioner and deposited in the general fund.
267.6The commissioner shall establish a mechanism, including a reconciliation process, for
267.7managed care plans and county-based purchasing plans to coordinate third-party liability
267.8collections efforts resulting from coordination of benefits under this subdivision with the
267.9commissioner to ensure there is no duplication of efforts. The coordination mechanism
267.10must be consistent with the reporting requirements in subdivision 9c. The commissioner
267.11shall share accurate and timely third-party liability data with managed care organizations.

267.12    Sec. 34. Laws 2013, chapter 108, article 1, section 24, the effective date, is amended to
267.13read:
267.14EFFECTIVE DATE.This section is effective January July 1, 2014.
267.15EFFECTIVE DATE.This section is effective the day following final enactment.

267.16    Sec. 35. MEDICAL ASSISTANCE SPENDDOWN REQUIREMENTS.
267.17The commissioner of human services, in consultation with interested stakeholders,
267.18shall review medical assistance spenddown requirements and processes, including those
267.19used in other states, for individuals with disabilities and seniors age 65 years of age or
267.20older. Based on this review, the commissioner shall recommend alternative medical
267.21assistance spenddown payment requirements and processes that:
267.22(1) are practical for current and potential medical assistance recipients, providers,
267.23and the Department of Human Services;
267.24(2) improve the medical assistance payment process for providers; and
267.25(3) allow current and potential medical assistance recipients to obtain consistent
267.26and affordable medical coverage.
267.27The commissioner shall report these recommendations, along with the projected cost,
267.28to the chairs and ranking minority members of the legislative committees and divisions
267.29with jurisdiction over health and human services policy and finance by November 15, 2015.

267.30    Sec. 36. REPEALER.
267.31Minnesota Statutes 2012, sections 256.969, subdivisions 2c, 8b, 9a, 9b, 11, 13, 20,
267.3221, 22, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed.


268.4    Section 1. Minnesota Statutes 2012, section 245C.05, subdivision 5, is amended to read:
268.5    Subd. 5. Fingerprints. (a) Except as provided in paragraph (c), for any background
268.6study completed under this chapter, when the commissioner has reasonable cause to
268.7believe that further pertinent information may exist on the subject of the background
268.8study, the subject shall provide the commissioner with a set of classifiable fingerprints
268.9obtained from an authorized agency.
268.10    (b) For purposes of requiring fingerprints, the commissioner has reasonable cause
268.11when, but not limited to, the:
268.12    (1) information from the Bureau of Criminal Apprehension indicates that the subject
268.13is a multistate offender;
268.14    (2) information from the Bureau of Criminal Apprehension indicates that multistate
268.15offender status is undetermined; or
268.16    (3) commissioner has received a report from the subject or a third party indicating
268.17that the subject has a criminal history in a jurisdiction other than Minnesota.
268.18    (c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for
268.19background studies conducted by the commissioner for child foster care or, adoptions, or a
268.20transfer of permanent legal and physical custody of a child, the subject of the background
268.21study, who is 18 years of age or older, shall provide the commissioner with a set of
268.22classifiable fingerprints obtained from an authorized agency.

268.23    Sec. 2. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is
268.24amended to read:
268.25    Subdivision 1. Background studies conducted by Department of Human
268.26Services. (a) For a background study conducted by the Department of Human Services,
268.27the commissioner shall review:
268.28    (1) information related to names of substantiated perpetrators of maltreatment of
268.29vulnerable adults that has been received by the commissioner as required under section
268.30626.557, subdivision 9c , paragraph (j);
268.31    (2) the commissioner's records relating to the maltreatment of minors in licensed
268.32programs, and from findings of maltreatment of minors as indicated through the social
268.33service information system;
269.1    (3) information from juvenile courts as required in subdivision 4 for individuals
269.2listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
269.3    (4) information from the Bureau of Criminal Apprehension, including information
269.4regarding a background study subject's registration in Minnesota as a predatory offender
269.5under section 243.166;
269.6    (5) except as provided in clause (6), information from the national crime information
269.7system when the commissioner has reasonable cause as defined under section 245C.05,
269.8subdivision 5; and
269.9    (6) for a background study related to a child foster care application for licensure, a
269.10transfer of permanent legal and physical custody of a child under sections 260C.503 to
269.11260C.515, or adoptions, the commissioner shall also review:
269.12    (i) information from the child abuse and neglect registry for any state in which the
269.13background study subject has resided for the past five years; and
269.14    (ii) information from national crime information databases, when the background
269.15study subject is 18 years of age or older.
269.16    (b) Notwithstanding expungement by a court, the commissioner may consider
269.17information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
269.18received notice of the petition for expungement and the court order for expungement is
269.19directed specifically to the commissioner.
269.20    (c) The commissioner shall also review criminal case information received according
269.21to section 245C.04, subdivision 4a, from the Minnesota court information system that
269.22relates to individuals who have already been studied under this chapter and who remain
269.23affiliated with the agency that initiated the background study.

269.24    Sec. 3. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:
269.25    Subdivision 1. Background studies conducted by commissioner. (a) Before
269.26placement of a child for purposes of adoption, the commissioner shall conduct a
269.27background study on individuals listed in section sections 259.41, subdivision 3, and
269.28260C.611, for county agencies and private agencies licensed to place children for adoption.
269.29 When a prospective adoptive parent is seeking to adopt a child who is currently placed in
269.30the prospective adoptive parent's home and is under the guardianship of the commissioner
269.31according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive
269.32parent holds a child foster care license, a new background study is not required when:
269.33(1) a background study was completed on persons required to be studied under section
269.34245C.03 in connection with the application for child foster care licensure after July 1, 2007;
270.1(2) the background study included a review of the information in section 245C.08,
270.2subdivisions 1, 3, and 4; and
270.3(3) as a result of the background study, the individual was either not disqualified
270.4or, if disqualified, the disqualification was set aside under section 245C.22, or a variance
270.5was issued under section 245C.30.
270.6(b) Before the kinship placement agreement is signed for the purpose of transferring
270.7permanent legal and physical custody to a relative under sections 260C.503 to 260C.515,
270.8the commissioner shall conduct a background study on each person age 13 or older living
270.9in the home. When a prospective relative custodian has a child foster care license, a new
270.10background study is not required when:
270.11(1) a background study was completed on persons required to be studied under section
270.12245C.03 in connection with the application for child foster care licensure after July 1, 2007;
270.13(2) the background study included a review of the information in section 245C.08,
270.14subdivisions 1, 3, and 4; and
270.15(3) as a result of the background study, the individual was either not disqualified or,
270.16if disqualified, the disqualification was set aside under section 245C.22, or a variance was
270.17issued under section 245C.30. The commissioner and the county agency shall expedite any
270.18request for a set aside or variance for a background study required under chapter 256N.

270.19    Sec. 4. Minnesota Statutes 2012, section 245C.33, subdivision 4, is amended to read:
270.20    Subd. 4. Information commissioner reviews. (a) The commissioner shall review
270.21the following information regarding the background study subject:
270.22    (1) the information under section 245C.08, subdivisions 1, 3, and 4;
270.23    (2) information from the child abuse and neglect registry for any state in which the
270.24subject has resided for the past five years; and
270.25    (3) information from national crime information databases, when required under
270.26section 245C.08.
270.27    (b) The commissioner shall provide any information collected under this subdivision
270.28to the county or private agency that initiated the background study. The commissioner
270.29shall also provide the agency:
270.30(1) notice whether the information collected shows that the subject of the background
270.31study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and
270.32(2) for background studies conducted under subdivision 1, paragraph (a), the date of
270.33all adoption-related background studies completed on the subject by the commissioner
270.34after June 30, 2007, and the name of the county or private agency that initiated the
270.35adoption-related background study.

271.1    Sec. 5. Minnesota Statutes 2012, section 256J.49, subdivision 13, is amended to read:
271.2    Subd. 13. Work activity. (a) "Work activity" means any activity in a participant's
271.3approved employment plan that leads to employment. For purposes of the MFIP program,
271.4this includes activities that meet the definition of work activity under the participation
271.5requirements of TANF. Work activity includes:
271.6    (1) unsubsidized employment, including work study and paid apprenticeships or
271.7internships;
271.8    (2) subsidized private sector or public sector employment, including grant diversion
271.9as specified in section 256J.69, on-the-job training as specified in section 256J.66, paid
271.10work experience, and supported work when a wage subsidy is provided;
271.11    (3) unpaid work experience, including community service, volunteer work,
271.12the community work experience program as specified in section 256J.67, unpaid
271.13apprenticeships or internships, and supported work when a wage subsidy is not provided.
271.14Unpaid work experience is only an option if the participant has been unable to obtain or
271.15maintain paid employment in the competitive labor market, and no paid work experience
271.16programs are available to the participant. Prior to placing a participant in unpaid work,
271.17the county must inform the participant that the participant will be notified if a paid work
271.18experience or supported work position becomes available. Unless a participant consents in
271.19writing to participate in unpaid work experience, the participant's employment plan may
271.20only include unpaid work experience if including the unpaid work experience in the plan
271.21will meet the following criteria:
271.22    (i) the unpaid work experience will provide the participant specific skills or
271.23experience that cannot be obtained through other work activity options where the
271.24participant resides or is willing to reside; and
271.25    (ii) the skills or experience gained through the unpaid work experience will result
271.26in higher wages for the participant than the participant could earn without the unpaid
271.27work experience;
271.28    (4) job search including job readiness assistance, job clubs, job placement,
271.29job-related counseling, and job retention services;
271.30    (5) job readiness education, including English as a second language (ESL) or
271.31functional work literacy classes as limited by the provisions of section 256J.531,
271.32subdivision 2 , general educational development (GED) or Minnesota adult diploma course
271.33work, high school completion, and adult basic education as limited by the provisions of
271.34section 256J.531, subdivision 1;
272.1    (6) job skills training directly related to employment, including postsecondary
272.2education and training that can reasonably be expected to lead to employment, as limited
272.3by the provisions of section 256J.53;
272.4    (7) providing child care services to a participant who is working in a community
272.5service program;
272.6    (8) activities included in the employment plan that is developed under section
272.7256J.521, subdivision 3 ; and
272.8    (9) preemployment activities including chemical and mental health assessments,
272.9treatment, and services; learning disabilities services; child protective services; family
272.10stabilization services; or other programs designed to enhance employability.
272.11(b) "Work activity" does not include activities done for political purposes as defined
272.12in section 211B.01, subdivision 6.

272.13    Sec. 6. Minnesota Statutes 2012, section 256J.53, subdivision 1, is amended to read:
272.14    Subdivision 1. Length of program. (a) In order for a postsecondary education
272.15or training program to be an approved work activity as defined in section 256J.49,
272.16subdivision 13 , clause (6), it must be a program lasting 24 months four years or less, and
272.17the participant must meet the requirements of subdivisions 2, 3, and 5.
272.18(b) Participants with a high school diploma, general educational development (GED)
272.19credential, or Minnesota adult diploma must be informed of the opportunity to participate
272.20in postsecondary education or training while in the Minnesota family investment program.

272.21    Sec. 7. Minnesota Statutes 2012, section 256J.53, subdivision 2, is amended to read:
272.22    Subd. 2. Approval of postsecondary education or training. (a) In order for a
272.23postsecondary education or training program to be an approved activity in an employment
272.24plan, the plan must include additional work activities if the education and training
272.25activities do not meet the minimum hours required to meet the federal work participation
272.26rate under Code of Federal Regulations, title 45, sections 261.31 and 261.35.
272.27    (b) Participants seeking approval of a who are interested in participating in
272.28 postsecondary education or training plan as part of their employment plan must provide
272.29documentation that discuss their education plans with their job counselor. Job counselors
272.30must work with participants to evaluate options by:
272.31    (1) the employment goal can only be met with the additional education or training;
272.32    (2) advising whether there are suitable employment opportunities that require the
272.33specific education or training in the area in which the participant resides or is willing
272.34to reside;
273.1    (3) the education or training will result in significantly higher wages for the
273.2participant than the participant could earn without the education or training;
273.3    (4) (2) assisting the participant in exploring whether the participant can meet the
273.4requirements for admission into the program; and
273.5    (5) (3) there is a reasonable expectation that the participant will complete the training
273.6program discussing the participant's strengths and challenges based on such factors as the
273.7participant's MFIP assessment, previous education, training, and work history; current
273.8motivation; and changes in previous circumstances.
273.9(b) The requirements of this subdivision do not apply to participants who are in:
273.10(1) a recognized career pathway program that leads to stackable credentials;
273.11(2) a training program lasting 12 weeks or less; or
273.12(3) the final year of a multi-year postsecondary education or training program.

273.13    Sec. 8. Minnesota Statutes 2012, section 256J.53, subdivision 5, is amended to read:
273.14    Subd. 5. Requirements after postsecondary education or training. Upon
273.15completion of an approved education or training program, a participant who does not meet
273.16the participation requirements in section 256J.55, subdivision 1, through unsubsidized
273.17employment must participate in job search. If, after six 12 weeks of job search, the
273.18participant does not find a full-time job consistent with the employment goal, the
273.19participant must accept any offer of full-time suitable employment, or meet with the job
273.20counselor to revise the employment plan to include additional work activities necessary to
273.21meet hourly requirements.

273.22    Sec. 9. Minnesota Statutes 2012, section 256J.531, is amended to read:
273.23256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
273.24    Subdivision 1. Approval of adult basic education. With the exception of classes
273.25related to obtaining a general educational development credential (GED), a participant
273.26must have reading or mathematics proficiency below a ninth grade level in order for adult
273.27basic education classes to be an A participant who lacks a high school diploma, general
273.28educational development (GED) credential, or Minnesota adult diploma must be allowed
273.29to pursue these credentials as an approved work activity, provided that the participant
273.30is making satisfactory progress. Participants eligible to pursue a general educational
273.31development (GED) credential or Minnesota adult diploma under this subdivision must
273.32be informed of the opportunity to participate while in the Minnesota family investment
273.33program. The employment plan must also specify that the participant fulfill no more than
274.1one-half of the participation requirements in section 256J.55, subdivision 1, through
274.2attending adult basic education or general educational development classes.
274.3    Subd. 2. Approval of English as a second language. In order for English as a
274.4second language (ESL) classes to be an approved work activity in an employment plan, a
274.5participant must be below a spoken language proficiency level of SPL6 or its equivalent,
274.6as measured by a nationally recognized test. In approving ESL as a work activity, the job
274.7counselor must give preference to enrollment in a functional work literacy program,
274.8if one is available, over a regular ESL program. A participant may not be approved
274.9for more than a combined total of 24 months of ESL classes while participating in the
274.10diversionary work program and the employment and training services component of
274.11MFIP. The employment plan must also specify that the participant fulfill no more than
274.12one-half of the participation requirements in section 256J.55, subdivision 1, through
274.13attending ESL classes. For participants enrolled in functional work literacy classes, no
274.14more than two-thirds of the participation requirements in section 256J.55, subdivision 1,
274.15may be met through attending functional work literacy classes.

274.16    Sec. 10. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is
274.17amended to read:
274.18    Subdivision 1. General eligibility requirements. (a) To be eligible for guardianship
274.19assistance under this section, there must be a judicial determination under section
274.20260C.515, subdivision 4 , that a transfer of permanent legal and physical custody to a
274.21relative is in the child's best interest. For a child under jurisdiction of a tribal court, a
274.22judicial determination under a similar provision in tribal code indicating that a relative
274.23will assume the duty and authority to provide care, control, and protection of a child who
274.24is residing in foster care, and to make decisions regarding the child's education, health
274.25care, and general welfare until adulthood, and that this is in the child's best interest is
274.26considered equivalent. Additionally, a child must:
274.27(1) have been removed from the child's home pursuant to a voluntary placement
274.28agreement or court order;
274.29(2)(i) have resided in with the prospective relative custodian who has been a
274.30licensed child foster care parent for at least six consecutive months in the home of the
274.31prospective relative custodian; or
274.32(ii) have received from the commissioner an exemption from the requirement in item
274.33(i) from the court that the prospective relative custodian has been a licensed child foster
274.34parent for at least six consecutive months, based on a determination that:
274.35(A) an expedited move to permanency is in the child's best interest;
275.1(B) expedited permanency cannot be completed without provision of guardianship
275.2assistance; and
275.3(C) the prospective relative custodian is uniquely qualified to meet the child's needs,
275.4as defined in section 260C.212, subdivision 2, on a permanent basis;
275.5(D) the child and prospective relative custodian meet the eligibility requirements
275.6of this section; and
275.7(E) efforts were made by the legally responsible agency to place the child with the
275.8prospective relative custodian as a licensed child foster parent for six consecutive months
275.9before permanency, or an explanation why these efforts were not in the child's best interests;
275.10(3) meet the agency determinations regarding permanency requirements in
275.11subdivision 2;
275.12(4) meet the applicable citizenship and immigration requirements in subdivision 3;
275.13(5) have been consulted regarding the proposed transfer of permanent legal and
275.14physical custody to a relative, if the child is at least 14 years of age or is expected to attain
275.1514 years of age prior to the transfer of permanent legal and physical custody; and
275.16(6) have a written, binding agreement under section 256N.25 among the caregiver or
275.17caregivers, the financially responsible agency, and the commissioner established prior to
275.18transfer of permanent legal and physical custody.
275.19(b) In addition to the requirements in paragraph (a), the child's prospective relative
275.20custodian or custodians must meet the applicable background study requirements in
275.21subdivision 4.
275.22(c) To be eligible for title IV-E guardianship assistance, a child must also meet any
275.23additional criteria in section 473(d) of the Social Security Act. The sibling of a child
275.24who meets the criteria for title IV-E guardianship assistance in section 473(d) of the
275.25Social Security Act is eligible for title IV-E guardianship assistance if the child and
275.26sibling are placed with the same prospective relative custodian or custodians, and the
275.27legally responsible agency, relatives, and commissioner agree on the appropriateness of
275.28the arrangement for the sibling. A child who meets all eligibility criteria except those
275.29specific to title IV-E guardianship assistance is entitled to guardianship assistance paid
275.30through funds other than title IV-E.

275.31    Sec. 11. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 2, is
275.32amended to read:
275.33    Subd. 2. Agency determinations regarding permanency. (a) To be eligible for
275.34guardianship assistance, the legally responsible agency must complete the following
276.1determinations regarding permanency for the child prior to the transfer of permanent
276.2legal and physical custody:
276.3(1) a determination that reunification and adoption are not appropriate permanency
276.4options for the child; and
276.5(2) a determination that the child demonstrates a strong attachment to the prospective
276.6relative custodian and the prospective relative custodian has a strong commitment to
276.7caring permanently for the child.
276.8(b) The legally responsible agency shall document the determinations in paragraph
276.9(a) and the eligibility requirements in this section that comply with United States Code,
276.10title 42, sections 673(d) and 675(1)(F). These determinations must be documented in a
276.11kinship placement agreement, which must be in the format prescribed by the commissioner
276.12and must be signed by the prospective relative custodian and the legally responsible
276.13agency. In the case of a Minnesota tribe, the determinations and eligibility requirements
276.14in this section may be provided in an alternative format approved by the commissioner.
276.15 Supporting information for completing each determination must be documented in the
276.16legally responsible agency's case file and make them available for review as requested
276.17by the financially responsible agency and the commissioner during the guardianship
276.18assistance eligibility determination process.

276.19    Sec. 12. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 4, is
276.20amended to read:
276.21    Subd. 4. Background study. (a) A background study under section 245C.33 must be
276.22completed on each prospective relative custodian and any other adult residing in the home
276.23of the prospective relative custodian. The background study must meet the requirements of
276.24United States Code, title 42, section 671(a)(20). A study completed under section 245C.33
276.25meets this requirement. A background study on the prospective relative custodian or adult
276.26residing in the household previously completed under section 245C.04 chapter 245C for the
276.27purposes of child foster care licensure may under chapter 245A or licensure by a Minnesota
276.28tribe, shall be used for the purposes of this section, provided that the background study is
276.29current meets the requirements of this subdivision and the prospective relative custodian is
276.30a licensed child foster parent at the time of the application for guardianship assistance.
276.31(b) If the background study reveals:
276.32(1) a felony conviction at any time for:
276.33(i) child abuse or neglect;
276.34(ii) spousal abuse;
276.35(iii) a crime against a child, including child pornography; or
277.1(iv) a crime involving violence, including rape, sexual assault, or homicide, but not
277.2including other physical assault or battery; or
277.3(2) a felony conviction within the past five years for:
277.4(i) physical assault;
277.5(ii) battery; or
277.6(iii) a drug-related offense;
277.7the prospective relative custodian is prohibited from receiving guardianship assistance
277.8on behalf of an otherwise eligible child.

277.9    Sec. 13. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is
277.10amended to read:
277.11    Subd. 4. Background study. (a) A background study under section 259.41 must be
277.12completed on each prospective adoptive parent. and all other adults residing in the home.
277.13A background study must meet the requirements of United States Code, title 42, section
277.14671(a)(20). A study completed under section 245C.33 meets this requirement. If the
277.15prospective adoptive parent is a licensed child foster parent licensed under chapter 245A
277.16or by a Minnesota tribe, the background study previously completed for the purposes of
277.17child foster care licensure shall be used for the purpose of this section, provided that the
277.18background study meets all other requirements of this subdivision and the prospective
277.19adoptive parent is a licensed child foster parent at the time of the application for adoption
277.20assistance.
277.21(b) If the background study reveals:
277.22(1) a felony conviction at any time for:
277.23(i) child abuse or neglect;
277.24(ii) spousal abuse;
277.25(iii) a crime against a child, including child pornography; or
277.26(iv) a crime involving violence, including rape, sexual assault, or homicide, but not
277.27including other physical assault or battery; or
277.28(2) a felony conviction within the past five years for:
277.29(i) physical assault;
277.30(ii) battery; or
277.31(iii) a drug-related offense;
277.32the adoptive parent is prohibited from receiving adoption assistance on behalf of an
277.33otherwise eligible child.

278.1    Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is
278.2amended to read:
278.3    Subd. 2. Negotiation of agreement. (a) When a child is determined to be eligible
278.4for guardianship assistance or adoption assistance, the financially responsible agency, or,
278.5if there is no financially responsible agency, the agency designated by the commissioner,
278.6must negotiate with the caregiver to develop an agreement under subdivision 1. If and when
278.7the caregiver and agency reach concurrence as to the terms of the agreement, both parties
278.8shall sign the agreement. The agency must submit the agreement, along with the eligibility
278.9determination outlined in sections 256N.22, subdivision 7, and 256N.23, subdivision 7, to
278.10the commissioner for final review, approval, and signature according to subdivision 1.
278.11(b) A monthly payment is provided as part of the adoption assistance or guardianship
278.12assistance agreement to support the care of children unless the child is eligible for adoption
278.13assistance and determined to be an at-risk child, in which case the special at-risk monthly
278.14payment under section 256N.26, subdivision 7, must no payment will be made unless and
278.15until the caregiver obtains written documentation from a qualified expert that the potential
278.16disability upon which eligibility for the agreement was based has manifested itself.
278.17(1) The amount of the payment made on behalf of a child eligible for guardianship
278.18assistance or adoption assistance is determined through agreement between the prospective
278.19relative custodian or the adoptive parent and the financially responsible agency, or, if there
278.20is no financially responsible agency, the agency designated by the commissioner, using
278.21the assessment tool established by the commissioner in section 256N.24, subdivision 2,
278.22and the associated benefit and payments outlined in section 256N.26. Except as provided
278.23under section 256N.24, subdivision 1, paragraph (c), the assessment tool establishes
278.24the monthly benefit level for a child under foster care. The monthly payment under a
278.25guardianship assistance agreement or adoption assistance agreement may be negotiated up
278.26to the monthly benefit level under foster care. In no case may the amount of the payment
278.27under a guardianship assistance agreement or adoption assistance agreement exceed the
278.28foster care maintenance payment which would have been paid during the month if the
278.29child with respect to whom the guardianship assistance or adoption assistance payment is
278.30made had been in a foster family home in the state.
278.31(2) The rate schedule for the agreement is determined based on the age of the
278.32child on the date that the prospective adoptive parent or parents or relative custodian or
278.33custodians sign the agreement.
278.34(3) The income of the relative custodian or custodians or adoptive parent or parents
278.35must not be taken into consideration when determining eligibility for guardianship
278.36assistance or adoption assistance or the amount of the payments under section 256N.26.
279.1(4) With the concurrence of the relative custodian or adoptive parent, the amount of
279.2the payment may be adjusted periodically using the assessment tool established by the
279.3commissioner in section 256N.24, subdivision 2, and the agreement renegotiated under
279.4subdivision 3 when there is a change in the child's needs or the family's circumstances.
279.5(5) The guardianship assistance or adoption assistance agreement of a child who is
279.6identified as at-risk receives the special at-risk monthly payment under section 256N.26,
279.7subdivision 7, unless and until the potential disability manifests itself, as documented by
279.8an appropriate professional, and the commissioner authorizes commencement of payment
279.9by modifying the agreement accordingly. A relative custodian or An adoptive parent
279.10of an at-risk child with a guardianship assistance or an adoption assistance agreement
279.11may request a reassessment of the child under section 256N.24, subdivision 9 10, and
279.12renegotiation of the guardianship assistance or adoption assistance agreement under
279.13subdivision 3 to include a monthly payment, if the caregiver has written documentation
279.14from a qualified expert that the potential disability upon which eligibility for the agreement
279.15was based has manifested itself. Documentation of the disability must be limited to
279.16evidence deemed appropriate by the commissioner.
279.17(c) For guardianship assistance agreements:
279.18(1) the initial amount of the monthly guardianship assistance payment must be
279.19equivalent to the foster care rate in effect at the time that the agreement is signed less any
279.20offsets under section 256N.26, subdivision 11, or a lesser negotiated amount if agreed to
279.21by the prospective relative custodian and specified in that agreement, unless the child is
279.22identified as at-risk or the guardianship assistance agreement is entered into when a child
279.23is under the age of six; and
279.24(2) an at-risk child must be assigned level A as outlined in section 256N.26 and
279.25receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless
279.26and until the potential disability manifests itself, as documented by a qualified expert, and
279.27the commissioner authorizes commencement of payment by modifying the agreement
279.28accordingly; and
279.29(3) (2) the amount of the monthly payment for a guardianship assistance agreement
279.30for a child, other than an at-risk child, who is under the age of six must be as specified in
279.31section 256N.26, subdivision 5.
279.32(d) For adoption assistance agreements:
279.33(1) for a child in foster care with the prospective adoptive parent immediately prior
279.34to adoptive placement, the initial amount of the monthly adoption assistance payment
279.35must be equivalent to the foster care rate in effect at the time that the agreement is signed
279.36less any offsets in section 256N.26, subdivision 11, or a lesser negotiated amount if agreed
280.1to by the prospective adoptive parents and specified in that agreement, unless the child is
280.2identified as at-risk or the adoption assistance agreement is entered into when a child is
280.3under the age of six;
280.4(2) for an at-risk child who must be assigned level A as outlined in section
280.5256N.26 and receive the special at-risk monthly payment under section 256N.26,
280.6subdivision 7, no payment will be made unless and until the potential disability manifests
280.7itself, as documented by an appropriate professional, and the commissioner authorizes
280.8commencement of payment by modifying the agreement accordingly;
280.9(3) the amount of the monthly payment for an adoption assistance agreement for
280.10a child under the age of six, other than an at-risk child, must be as specified in section
280.11256N.26, subdivision 5 ;
280.12(4) for a child who is in the guardianship assistance program immediately prior
280.13to adoptive placement, the initial amount of the adoption assistance payment must be
280.14equivalent to the guardianship assistance payment in effect at the time that the adoption
280.15assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive
280.16parent and specified in that agreement, unless the child is identified as an at-risk child; and
280.17(5) for a child who is not in foster care placement or the guardianship assistance
280.18program immediately prior to adoptive placement or negotiation of the adoption assistance
280.19agreement, the initial amount of the adoption assistance agreement must be determined
280.20using the assessment tool and process in this section and the corresponding payment
280.21amount outlined in section 256N.26.

280.22    Sec. 15. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 3, is
280.23amended to read:
280.24    Subd. 3. Renegotiation of agreement. (a) A relative custodian or adoptive
280.25parent of a child with a guardianship assistance or adoption assistance agreement may
280.26request renegotiation of the agreement when there is a change in the needs of the child
280.27or in the family's circumstances. When a relative custodian or adoptive parent requests
280.28renegotiation of the agreement, a reassessment of the child must be completed consistent
280.29with section 256N.24, subdivisions 9 and 10. If the reassessment indicates that the
280.30child's level has changed, the financially responsible agency or, if there is no financially
280.31responsible agency, the agency designated by the commissioner or the commissioner's
280.32designee, and the caregiver must renegotiate the agreement to include a payment with
280.33the level determined through the reassessment process. The agreement must not be
280.34renegotiated unless the commissioner, the financially responsible agency, and the caregiver
281.1mutually agree to the changes. The effective date of any renegotiated agreement must be
281.2determined by the commissioner.
281.3(b) A relative custodian or An adoptive parent of an at-risk child with a guardianship
281.4assistance or an adoption assistance agreement may request renegotiation of the agreement
281.5to include a monthly payment higher than the special at-risk monthly payment under
281.6section 256N.26, subdivision 7, if the caregiver has written documentation from a
281.7qualified expert that the potential disability upon which eligibility for the agreement
281.8was based has manifested itself. Documentation of the disability must be limited to
281.9evidence deemed appropriate by the commissioner. Prior to renegotiating the agreement, a
281.10reassessment of the child must be conducted as outlined in section 256N.24, subdivision
281.119 . The reassessment must be used to renegotiate the agreement to include an appropriate
281.12monthly payment. The agreement must not be renegotiated unless the commissioner, the
281.13financially responsible agency, and the caregiver mutually agree to the changes. The
281.14effective date of any renegotiated agreement must be determined by the commissioner.
281.15(c) Renegotiation of a guardianship assistance or adoption assistance agreement is
281.16required when one of the circumstances outlined in section 256N.26, subdivision 13,
281.17occurs.

281.18    Sec. 16. Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 1, is
281.19amended to read:
281.20    Subdivision 1. Benefits. (a) There are three benefits under Northstar Care for
281.21Children: medical assistance, basic payment, and supplemental difficulty of care payment.
281.22(b) A child is eligible for medical assistance under subdivision 2.
281.23(c) A child is eligible for the basic payment under subdivision 3, except for a child
281.24assigned level A under section 256N.24, subdivision 1, because the child is determined to
281.25be an at-risk child receiving guardianship assistance or adoption assistance.
281.26(d) A child, including a foster child age 18 to 21, is eligible for an additional
281.27supplemental difficulty of care payment under subdivision 4, as determined by the
281.28assessment under section 256N.24.
281.29(e) An eligible child entering guardianship assistance or adoption assistance under
281.30the age of six receives a basic payment and supplemental difficulty of care payment as
281.31specified in subdivision 5.
281.32(f) A child transitioning in from a pre-Northstar Care for Children program under
281.33section 256N.28, subdivision 7, shall receive basic and difficulty of care supplemental
281.34payments according to those provisions.

282.1    Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is
282.2amended to read:
282.3    Subd. 4. Nonfederal share. (a) The commissioner shall establish a percentage share
282.4of the maintenance payments, reduced by federal reimbursements under title IV-E of the
282.5Social Security Act, to be paid by the state and to be paid by the financially responsible
282.6agency.
282.7(b) These state and local shares must initially be calculated based on the ratio of the
282.8average appropriate expenditures made by the state and all financially responsible agencies
282.9during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation,
282.10appropriate expenditures for the financially responsible agencies must include basic and
282.11difficulty of care payments for foster care reduced by federal reimbursements, but not
282.12including any initial clothing allowance, administrative payments to child care agencies
282.13specified in section 317A.907, child care, or other support or ancillary expenditures. For
282.14purposes of this calculation, appropriate expenditures for the state shall include adoption
282.15assistance and relative custody assistance, reduced by federal reimbursements.
282.16(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017,
282.172018, and 2019, the commissioner shall adjust this initial percentage of state and local
282.18shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and
282.192014, taking into account appropriations for Northstar Care for Children and the turnover
282.20rates of the components. In making these adjustments, the commissioner's goal shall be to
282.21make these state and local expenditures other than the appropriations for Northstar Care
282.22for Children to be the same as they would have been had Northstar Care for Children not
282.23been implemented, or if that is not possible, proportionally higher or lower, as appropriate.
282.24Except for adjustments so that the costs of the phase-in are borne by the state, the state and
282.25local share percentages for fiscal year 2019 must be used for all subsequent years.

282.26    Sec. 18. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:
282.27    Subd. 11. Financial considerations. (a) Payment of relative custody assistance
282.28under a relative custody assistance agreement is subject to the availability of state funds
282.29and payments may be reduced or suspended on order of the commissioner if insufficient
282.30funds are available.
282.31(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner
282.32shall reimburse the local agency in an amount equal to 100 percent of the relative custody
282.33assistance payments provided to relative custodians. The A local agency may not seek and
282.34the commissioner shall not provide reimbursement for the administrative costs associated
282.35with performing the duties described in subdivision 4.
283.1(c) For the purposes of determining eligibility or payment amounts under MFIP,
283.2relative custody assistance payments shall be excluded in determining the family's
283.3available income.
283.4(d) For expenditures made on or before December 31, 2014, upon receipt from a
283.5local agency of a claim for reimbursement, the commissioner shall reimburse the local
283.6agency in an amount equal to 100 percent of the relative custody assistance payments
283.7provided to relative custodians.
283.8(e) For expenditures made on or after January 1, 2015, upon receipt from a local
283.9agency of a claim for reimbursement, the commissioner shall reimburse the local agency as
283.10part of the Northstar Care for Children fiscal reconciliation process under section 256N.27.

283.11    Sec. 19. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:
283.12    Subdivision 1. Out-of-home placement; plan. (a) An out-of-home placement plan
283.13shall be prepared within 30 days after any child is placed in foster care by court order or a
283.14voluntary placement agreement between the responsible social services agency and the
283.15child's parent pursuant to section 260C.227 or chapter 260D.
283.16    (b) An out-of-home placement plan means a written document which is prepared
283.17by the responsible social services agency jointly with the parent or parents or guardian
283.18of the child and in consultation with the child's guardian ad litem, the child's tribe, if the
283.19child is an Indian child, the child's foster parent or representative of the foster care facility,
283.20and, where appropriate, the child. For a child in voluntary foster care for treatment under
283.21chapter 260D, preparation of the out-of-home placement plan shall additionally include
283.22the child's mental health treatment provider. As appropriate, the plan shall be:
283.23    (1) submitted to the court for approval under section 260C.178, subdivision 7;
283.24    (2) ordered by the court, either as presented or modified after hearing, under section
283.25260C.178 , subdivision 7, or 260C.201, subdivision 6; and
283.26    (3) signed by the parent or parents or guardian of the child, the child's guardian ad
283.27litem, a representative of the child's tribe, the responsible social services agency, and, if
283.28possible, the child.
283.29    (c) The out-of-home placement plan shall be explained to all persons involved in its
283.30implementation, including the child who has signed the plan, and shall set forth:
283.31    (1) a description of the foster care home or facility selected, including how the
283.32out-of-home placement plan is designed to achieve a safe placement for the child in the
283.33least restrictive, most family-like, setting available which is in close proximity to the home
283.34of the parent or parents or guardian of the child when the case plan goal is reunification,
284.1and how the placement is consistent with the best interests and special needs of the child
284.2according to the factors under subdivision 2, paragraph (b);
284.3    (2) the specific reasons for the placement of the child in foster care, and when
284.4reunification is the plan, a description of the problems or conditions in the home of the
284.5parent or parents which necessitated removal of the child from home and the changes the
284.6parent or parents must make in order for the child to safely return home;
284.7    (3) a description of the services offered and provided to prevent removal of the child
284.8from the home and to reunify the family including:
284.9    (i) the specific actions to be taken by the parent or parents of the child to eliminate
284.10or correct the problems or conditions identified in clause (2), and the time period during
284.11which the actions are to be taken; and
284.12    (ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made
284.13to achieve a safe and stable home for the child including social and other supportive
284.14services to be provided or offered to the parent or parents or guardian of the child, the
284.15child, and the residential facility during the period the child is in the residential facility;
284.16    (4) a description of any services or resources that were requested by the child or the
284.17child's parent, guardian, foster parent, or custodian since the date of the child's placement
284.18in the residential facility, and whether those services or resources were provided and if
284.19not, the basis for the denial of the services or resources;
284.20    (5) the visitation plan for the parent or parents or guardian, other relatives as defined
284.21in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed
284.22together in foster care, and whether visitation is consistent with the best interest of the
284.23child, during the period the child is in foster care;
284.24    (6) when a child cannot return to or be in the care of either parent, documentation of
284.25steps to finalize the permanency plan for the child, including:
284.26    (i) reasonable efforts to place the child for adoption or legal guardianship of the child
284.27if the court has issued an order terminating the rights of both parents of the child or of the
284.28only known, living parent of the child. At a minimum, the documentation must include
284.29consideration of whether adoption is in the best interests of the child, child-specific
284.30recruitment efforts such as relative search and the use of state, regional, and national
284.31adoption exchanges to facilitate orderly and timely placements in and outside of the state.
284.32A copy of this documentation shall be provided to the court in the review required under
284.33section 260C.317, subdivision 3, paragraph (b); and
284.34    (ii) documentation necessary to support the requirements of the kinship placement
284.35agreement under section 256N.22 when adoption is determined not to be in the child's
284.36best interest;
285.1    (7) efforts to ensure the child's educational stability while in foster care, including:
285.2(i) efforts to ensure that the child remains in the same school in which the child was
285.3enrolled prior to placement or upon the child's move from one placement to another,
285.4including efforts to work with the local education authorities to ensure the child's
285.5educational stability; or
285.6(ii) if it is not in the child's best interest to remain in the same school that the child
285.7was enrolled in prior to placement or move from one placement to another, efforts to
285.8ensure immediate and appropriate enrollment for the child in a new school;
285.9(8) the educational records of the child including the most recent information
285.10available regarding:
285.11    (i) the names and addresses of the child's educational providers;
285.12    (ii) the child's grade level performance;
285.13    (iii) the child's school record;
285.14    (iv) a statement about how the child's placement in foster care takes into account
285.15proximity to the school in which the child is enrolled at the time of placement; and
285.16(v) any other relevant educational information;
285.17    (9) the efforts by the local agency to ensure the oversight and continuity of health
285.18care services for the foster child, including:
285.19(i) the plan to schedule the child's initial health screens;
285.20(ii) how the child's known medical problems and identified needs from the screens,
285.21including any known communicable diseases, as defined in section 144.4172, subdivision
285.222, will be monitored and treated while the child is in foster care;
285.23(iii) how the child's medical information will be updated and shared, including
285.24the child's immunizations;
285.25(iv) who is responsible to coordinate and respond to the child's health care needs,
285.26including the role of the parent, the agency, and the foster parent;
285.27(v) who is responsible for oversight of the child's prescription medications;
285.28(vi) how physicians or other appropriate medical and nonmedical professionals
285.29will be consulted and involved in assessing the health and well-being of the child and
285.30determine the appropriate medical treatment for the child; and
285.31(vii) the responsibility to ensure that the child has access to medical care through
285.32either medical insurance or medical assistance;
285.33(10) the health records of the child including information available regarding:
285.34(i) the names and addresses of the child's health care and dental care providers;
285.35(ii) a record of the child's immunizations;
286.1(iii) the child's known medical problems, including any known communicable
286.2diseases as defined in section 144.4172, subdivision 2;
286.3(iv) the child's medications; and
286.4(v) any other relevant health care information such as the child's eligibility for
286.5medical insurance or medical assistance;
286.6(11) an independent living plan for a child age 16 or older. The plan should include,
286.7but not be limited to, the following objectives:
286.8    (i) educational, vocational, or employment planning;
286.9    (ii) health care planning and medical coverage;
286.10    (iii) transportation including, where appropriate, assisting the child in obtaining a
286.11driver's license;
286.12    (iv) money management, including the responsibility of the agency to ensure that
286.13the youth annually receives, at no cost to the youth, a consumer report as defined under
286.14section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;
286.15    (v) planning for housing;
286.16    (vi) social and recreational skills; and
286.17    (vii) establishing and maintaining connections with the child's family and
286.18community; and
286.19    (12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic
286.20and assessment information, specific services relating to meeting the mental health care
286.21needs of the child, and treatment outcomes.
286.22    (d) The parent or parents or guardian and the child each shall have the right to legal
286.23counsel in the preparation of the case plan and shall be informed of the right at the time
286.24of placement of the child. The child shall also have the right to a guardian ad litem.
286.25If unable to employ counsel from their own resources, the court shall appoint counsel
286.26upon the request of the parent or parents or the child or the child's legal guardian. The
286.27parent or parents may also receive assistance from any person or social services agency
286.28in preparation of the case plan.
286.29    After the plan has been agreed upon by the parties involved or approved or ordered
286.30by the court, the foster parents shall be fully informed of the provisions of the case plan
286.31and shall be provided a copy of the plan.
286.32    Upon discharge from foster care, the parent, adoptive parent, or permanent legal and
286.33physical custodian, as appropriate, and the child, if appropriate, must be provided with
286.34a current copy of the child's health and education record.

286.35    Sec. 20. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:
287.1    Subd. 4. Custody to relative. The court may order permanent legal and physical
287.2custody to a fit and willing relative in the best interests of the child according to the
287.3following conditions requirements:
287.4(1) an order for transfer of permanent legal and physical custody to a relative shall
287.5only be made after the court has reviewed the suitability of the prospective legal and
287.6physical custodian;
287.7(2) in transferring permanent legal and physical custody to a relative, the juvenile
287.8court shall follow the standards applicable under this chapter and chapter 260, and the
287.9procedures in the Minnesota Rules of Juvenile Protection Procedure;
287.10(3) a transfer of legal and physical custody includes responsibility for the protection,
287.11education, care, and control of the child and decision making on behalf of the child;
287.12(4) a permanent legal and physical custodian may not return a child to the permanent
287.13care of a parent from whom the court removed custody without the court's approval and
287.14without notice to the responsible social services agency;
287.15(5) the social services agency may file a petition naming a fit and willing relative as
287.16a proposed permanent legal and physical custodian. A petition for transfer of permanent
287.17legal and physical custody to a relative who is not a parent shall be accompanied by a
287.18kinship placement agreement under section 256N.22, subdivision 2, between the agency
287.19and proposed permanent legal and physical custodian;
287.20(6) another party to the permanency proceeding regarding the child may file a
287.21petition to transfer permanent legal and physical custody to a relative, but the. The petition
287.22must include facts upon which the court can make the determination required under clause
287.23(7) and must be filed not later than the date for the required admit-deny hearing under
287.24section 260C.507; or if the agency's petition is filed under section 260C.503, subdivision
287.252 , the petition must be filed not later than 30 days prior to the trial required under section
287.26260C.509 ; and
287.27(7) where a petition is for transfer of permanent legal and physical custody to a
287.28relative who is not a parent, the court must find that:
287.29(i) transfer of permanent legal and physical custody and receipt of Northstar kinship
287.30assistance under chapter 256N, when requested and the child is eligible, is in the child's
287.31best interests;
287.32(ii) adoption is not in the child's best interests based on the determinations in the
287.33kinship placement agreement required under section 256N.22, subdivision 2;
287.34(iii) the agency made efforts to discuss adoption with the child's parent or parents,
287.35or the agency did not make efforts to discuss adoption and the reasons why efforts were
287.36not made; and
288.1(iv) there are reasons to separate siblings during placement, if applicable;
288.2(8) the court may defer finalization of an order transferring permanent legal and
288.3physical custody to a relative when deferring finalization is necessary to determine
288.4eligibility for Northstar kinship assistance under chapter 256N;
288.5(9) the court may finalize a permanent transfer of physical and legal custody to a
288.6relative regardless of eligibility for Northstar kinship assistance under chapter 256N; and
288.7(7) (10) the juvenile court may maintain jurisdiction over the responsible social
288.8services agency, the parents or guardian of the child, the child, and the permanent legal
288.9and physical custodian for purposes of ensuring appropriate services are delivered to the
288.10child and permanent legal custodian for the purpose of ensuring conditions ordered by the
288.11court related to the care and custody of the child are met.

288.12    Sec. 21. Minnesota Statutes 2012, section 260C.611, is amended to read:
288.13260C.611 ADOPTION STUDY REQUIRED.
288.14(a) An adoption study under section 259.41 approving placement of the child in the
288.15home of the prospective adoptive parent shall be completed before placing any child under
288.16the guardianship of the commissioner in a home for adoption. If a prospective adoptive
288.17parent has a current child foster care license under chapter 245A and is seeking to adopt
288.18a foster child who is placed in the prospective adoptive parent's home and is under the
288.19guardianship of the commissioner according to section 260C.325, subdivision 1, the child
288.20foster care home study meets the requirements of this section for an approved adoption
288.21home study if:
288.22(1) the written home study on which the foster care license was based is completed
288.23in the commissioner's designated format, consistent with the requirements in sections
288.24260C.215, subdivision 4, clause (5); and 259.41, subdivision 2; and Minnesota Rules,
288.25part 2960.3060, subpart 4;
288.26(2) the background studies on each prospective adoptive parent and all required
288.27household members were completed according to section 245C.33;
288.28(3) the commissioner has not issued, within the last three years, a sanction on the
288.29license under section 245A.07 or an order of a conditional license under section 245A.06;
288.30and
288.31(4) the legally responsible agency determines that the individual needs of the child
288.32are being met by the prospective adoptive parent through an assessment under section
288.33256N.24, subdivision 2, or a documented placement decision consistent with section
288.34260C.212, subdivision 2.
289.1(b) If a prospective adoptive parent has previously held a foster care license or
289.2adoptive home study, any update necessary to the foster care license, or updated or new
289.3adoptive home study, if not completed by the licensing authority responsible for the
289.4previous license or home study, shall include collateral information from the previous
289.5licensing or approving agency, if available.

289.6    Sec. 22. Laws 2013, chapter 108, article 3, section 48, is amended to read:
289.7    Sec. 48. REPEALER.
289.8(a) Minnesota Statutes 2012, section 256J.24, subdivision 6, is repealed January
289.9 July 1, 2015 2014.
289.10(b) Minnesota Statutes 2012, section 609.093, is repealed effective the day following
289.11final enactment.
289.12EFFECTIVE DATE.This section is effective July 1, 2014.

289.13    Sec. 23. PARENT AWARE QUALITY RATING AND IMPROVEMENT
289.14SYSTEM ACCESSIBILITY REPORT.
289.15    Subdivision 1. Recommendations. The commissioner of human services, in
289.16consultation with representatives from the child care and early childhood advocacy
289.17community, child care provider organizations, child care providers, organizations
289.18administering Parent Aware, the Departments of Education and Health, counties,
289.19and parents, shall make recommendations to the legislature on increasing statewide
289.20accessibility for child care providers to the Parent Aware quality rating and improvement
289.21system and for increasing access to Parent Aware-rated programs for families with
289.22children. The recommendations must address the following factors impacting accessibility:
289.23(1) availability of rated and nonrated programs by child care provider type, within
289.24rural and underserved areas, and for different cultural and non-English-speaking groups;
289.25(2) time and resources necessary for child care providers to participate in Parent
289.26Aware at various rating levels, including cultural and linguistic considerations;
289.27(3) federal child care development fund regulations; and
289.28(4) other factors as determined by the commissioner.
289.29    Subd. 2. Report. By February 15, 2015, the commissioner of human services
289.30shall report to the legislative committees with jurisdiction over the child care
289.31assistance programs and the Parent Aware quality rating and improvement system with
289.32recommendations to increase access for families and child care providers to Parent Aware,
289.33including benchmarks for achieving the maximum participation in Parent Aware-rated
289.34child care programs by families receiving child care assistance.
290.1The recommendations may also include, but are not limited to, potential
290.2modifications to Minnesota Statutes, sections 119B.09, subdivision 5; and 119B.125,
290.3subdivision 1, if necessary, which may include a delayed effective date, different phase-in
290.4process, or repealer.
290.5EFFECTIVE DATE.This section is effective the day following final enactment.

290.6    Sec. 24. DIRECTION TO COMMISSIONER.
290.7The commissioner of human services shall implement the repeal of the MFIP
290.8family cap July 1, 2014. The commissioner shall make every effort to complete systems
290.9modifications by that date. If systems modifications cannot be completed in time, the
290.10commissioner shall implement a manual procedure to implement the change.

290.11    Sec. 25. REVISOR'S INSTRUCTION.
290.12The revisor of statutes shall change the term "guardianship assistance" to "Northstar
290.13kinship assistance" wherever it appears in Minnesota Statutes and Minnesota Rules to
290.14refer to the program components related to Northstar Care for Children under Minnesota
290.15Statutes, chapter 256N.

290.16    Sec. 26. REPEALER.
290.17Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7, is repealed.


290.20    Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a
290.21subdivision to read:
290.22    Subd. 8. Community first services and supports organizations. The
290.23commissioner shall conduct background studies on any individual required under section
290.24256B.85 to have a background study completed under this chapter.

290.25    Sec. 2. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision
290.26to read:
290.27    Subd. 7. Community first services and supports organizations. (a) The
290.28commissioner shall conduct a background study of an individual required to be studied
290.29under section 245C.03, subdivision 8, at least upon application for initial enrollment
290.30under section 256B.85.
291.1(b) Before an individual described in section 245C.03, subdivision 8, begins a
291.2position allowing direct contact with a person served by an organization required to initiate
291.3a background study under section 256B.85, the organization must receive a notice from
291.4the commissioner that the support worker is:
291.5(1) not disqualified under section 245C.14; or
291.6(2) disqualified, but the individual has received a set-aside of the disqualification
291.7under section 245C.22.

291.8    Sec. 3. Minnesota Statutes 2012, section 245C.10, is amended by adding a subdivision
291.9to read:
291.10    Subd. 10. Community first services and supports organizations. The
291.11commissioner shall recover the cost of background studies initiated by an agency-provider
291.12delivering services under section 256B.85, subdivision 11, or a financial management
291.13services contractor providing service functions under section 256B.85, subdivision 13,
291.14through a fee of no more than $20 per study, charged to the organization responsible for
291.15submitting the background study form. The fees collected under this subdivision are
291.16appropriated to the commissioner for the purpose of conducting background studies.

291.17    Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is
291.18amended to read:
291.19    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
291.20this subdivision have the meanings given.
291.21(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming,
291.22dressing, bathing, mobility, positioning, and transferring.
291.23(c) "Agency-provider model" means a method of CFSS under which a qualified
291.24agency provides services and supports through the agency's own employees and policies.
291.25The agency must allow the participant to have a significant role in the selection and
291.26dismissal of support workers of their choice for the delivery of their specific services
291.27and supports.
291.28(d) "Behavior" means a description of a need for services and supports used to
291.29determine the home care rating and additional service units. The presence of Level I
291.30behavior is used to determine the home care rating. "Level I behavior" means physical
291.31aggression towards self or others or destruction of property that requires the immediate
291.32response of another person. If qualified for a home care rating as described in subdivision
291.338, additional service units can be added as described in subdivision 8, paragraph (f), for
291.34the following behaviors:
292.1(1) Level I behavior;
292.2(2) increased vulnerability due to cognitive deficits or socially inappropriate
292.3behavior; or
292.4(3) increased need for assistance for recipients participants who are verbally
292.5aggressive or resistive to care so that time needed to perform activities of daily living is
292.6increased.
292.7(e) "Budget model" means a service delivery method of CFSS that allows the
292.8use of a service budget and assistance from a vendor fiscal/employer agent financial
292.9management services (FMS) contractor for a participant to directly employ support
292.10workers and purchase supports and goods.
292.11(e) (f) "Complex health-related needs" means an intervention listed in clauses (1)
292.12to (8) that has been ordered by a physician, and is specified in a community support
292.13plan, including:
292.14(1) tube feedings requiring:
292.15(i) a gastrojejunostomy tube; or
292.16(ii) continuous tube feeding lasting longer than 12 hours per day;
292.17(2) wounds described as:
292.18(i) stage III or stage IV;
292.19(ii) multiple wounds;
292.20(iii) requiring sterile or clean dressing changes or a wound vac; or
292.21(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require
292.22specialized care;
292.23(3) parenteral therapy described as:
292.24(i) IV therapy more than two times per week lasting longer than four hours for
292.25each treatment; or
292.26(ii) total parenteral nutrition (TPN) daily;
292.27(4) respiratory interventions, including:
292.28(i) oxygen required more than eight hours per day;
292.29(ii) respiratory vest more than one time per day;
292.30(iii) bronchial drainage treatments more than two times per day;
292.31(iv) sterile or clean suctioning more than six times per day;
292.32(v) dependence on another to apply respiratory ventilation augmentation devices
292.33such as BiPAP and CPAP; and
292.34(vi) ventilator dependence under section 256B.0652;
292.35(5) insertion and maintenance of catheter, including:
292.36(i) sterile catheter changes more than one time per month;
293.1(ii) clean intermittent catheterization, and including self-catheterization more than
293.2six times per day; or
293.3(iii) bladder irrigations;
293.4(6) bowel program more than two times per week requiring more than 30 minutes to
293.5perform each time;
293.6(7) neurological intervention, including:
293.7(i) seizures more than two times per week and requiring significant physical
293.8assistance to maintain safety; or
293.9(ii) swallowing disorders diagnosed by a physician and requiring specialized
293.10assistance from another on a daily basis; and
293.11(8) other congenital or acquired diseases creating a need for significantly increased
293.12direct hands-on assistance and interventions in six to eight activities of daily living.
293.13(f) (g) "Community first services and supports" or "CFSS" means the assistance and
293.14supports program under this section needed for accomplishing activities of daily living,
293.15instrumental activities of daily living, and health-related tasks through hands-on assistance
293.16to accomplish the task or constant supervision and cueing to accomplish the task, or the
293.17purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace
293.18the need for human assistance.
293.19(g) (h) "Community first services and supports service delivery plan" or "service
293.20delivery plan" means a written summary of document detailing the services and supports
293.21chosen by the participant to meet assessed needs that is are within the approved CFSS
293.22service authorization amount. Services and supports are based on the community support
293.23plan identified in section 256B.0911 and coordinated services and support plan and budget
293.24identified in section 256B.0915, subdivision 6, if applicable, that is determined by the
293.25participant to meet the assessed needs, using a person-centered planning process.
293.26(i) "Consultation services" means a Minnesota health care program enrolled provider
293.27organization that is under contract with the department and has the knowledge, skills,
293.28and ability to assist CFSS participants in using either the agency-provider model under
293.29subdivision 11 or the budget model under subdivision 13.
293.30(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and
293.31toileting.
293.32(i) (k) "Dependency" in activities of daily living means a person requires hands-on
293.33assistance or constant supervision and cueing to accomplish one or more of the activities
293.34of daily living every day or on the days during the week that the activity is performed;
293.35however, a child may not be found to be dependent in an activity of daily living if,
293.36because of the child's age, an adult would either perform the activity for the child or assist
294.1the child with the activity and the assistance needed is the assistance appropriate for
294.2a typical child of the same age.
294.3(j) (l) "Extended CFSS" means CFSS services and supports under the
294.4agency-provider model included in a service plan through one of the home and
294.5community-based services waivers and as approved and authorized under sections
294.6256B.0915 ; 256B.092, subdivision 5; and 256B.49, which exceed the amount, duration,
294.7and frequency of the state plan CFSS services for participants.
294.8(k) (m) "Financial management services contractor or vendor" or "FMS contractor"
294.9 means a qualified organization having necessary to use the budget model under subdivision
294.1013 that has a written contract with the department to provide vendor fiscal/employer agent
294.11financial management services necessary to use the budget model under subdivision 13
294.12that (FMS). Services include but are not limited to: participant education and technical
294.13assistance; CFSS service delivery planning and budgeting; filing and payment of federal
294.14and state payroll taxes on behalf of the participant; initiating criminal background
294.15checks; billing, making payments, and for approved CFSS services with authorized
294.16funds; monitoring of spending expenditures; accounting for and disbursing CFSS funds;
294.17providing assistance in obtaining and filing for liability, workers' compensation, and
294.18unemployment coverage; and assisting participant instruction and technical assistance to
294.19 the participant in fulfilling employer-related requirements in accordance with Section
294.203504 of the Internal Revenue Code and the Internal Revenue Service Revenue Procedure
294.2170-6 related regulations and interpretations, including Code of Federal Regulations, title
294.2226, section 31.3504-1.
294.23(l) "Budget model" means a service delivery method of CFSS that allows the use of
294.24an individualized CFSS service delivery plan and service budget and provides assistance
294.25from the financial management services contractor to facilitate participant employment of
294.26support workers and the acquisition of supports and goods.
294.27(m) (n) "Health-related procedures and tasks" means procedures and tasks related
294.28to the specific needs of an individual that can be delegated taught or assigned by a
294.29state-licensed healthcare or mental health professional and performed by a support worker.
294.30(n) (o) "Instrumental activities of daily living" means activities related to
294.31living independently in the community, including but not limited to: meal planning,
294.32preparation, and cooking; shopping for food, clothing, or other essential items; laundry;
294.33housecleaning; assistance with medications; managing finances; communicating needs
294.34and preferences during activities; arranging supports; and assistance with traveling around
294.35and participating in the community.
295.1(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian,
295.2or another representative with legal authority to make decisions about services and
295.3supports for the participant. Other representatives with legal authority to make decisions
295.4include but are not limited to a health care agent or an attorney-in-fact authorized through
295.5a health care directive or power of attorney.
295.6(p) (q) "Medication assistance" means providing verbal or visual reminders to take
295.7regularly scheduled medication, and includes any of the following supports listed in clauses
295.8(1) to (3) and other types of assistance, except that a support worker may not determine
295.9medication dose or time for medication or inject medications into veins, muscles, or skin:
295.10(1) under the direction of the participant or the participant's representative, bringing
295.11medications to the participant including medications given through a nebulizer, opening a
295.12container of previously set-up medications, emptying the container into the participant's
295.13hand, opening and giving the medication in the original container to the participant, or
295.14bringing to the participant liquids or food to accompany the medication;
295.15(2) organizing medications as directed by the participant or the participant's
295.16representative; and
295.17(3) providing verbal or visual reminders to perform regularly scheduled medications.
295.18(q) (r) "Participant's representative" means a parent, family member, advocate,
295.19or other adult authorized by the participant to serve as a representative in connection
295.20with the provision of CFSS. This authorization must be in writing or by another method
295.21that clearly indicates the participant's free choice. The participant's representative must
295.22have no financial interest in the provision of any services included in the participant's
295.23service delivery plan and must be capable of providing the support necessary to assist
295.24the participant in the use of CFSS. If through the assessment process described in
295.25subdivision 5 a participant is determined to be in need of a participant's representative, one
295.26must be selected. If the participant is unable to assist in the selection of a participant's
295.27representative, the legal representative shall appoint one. Two persons may be designated
295.28as a participant's representative for reasons such as divided households and court-ordered
295.29custodies. Duties of a participant's representatives may include:
295.30(1) being available while care is services are provided in a method agreed upon by
295.31the participant or the participant's legal representative and documented in the participant's
295.32CFSS service delivery plan;
295.33(2) monitoring CFSS services to ensure the participant's CFSS service delivery
295.34plan is being followed; and
295.35(3) reviewing and signing CFSS time sheets after services are provided to provide
295.36verification of the CFSS services.
296.1(r) (s) "Person-centered planning process" means a process that is directed by the
296.2participant to plan for services and supports. The person-centered planning process must:
296.3(1) include people chosen by the participant;
296.4(2) provide necessary information and support to ensure that the participant directs
296.5the process to the maximum extent possible, and is enabled to make informed choices
296.6and decisions;
296.7(3) be timely and occur at time and locations of convenience to the participant;
296.8(4) reflect cultural considerations of the participant;
296.9(5) include strategies for solving conflict or disagreement within the process,
296.10including clear conflict-of-interest guidelines for all planning;
296.11(6) provide the participant choices of the services and supports they receive and the
296.12staff providing those services and supports;
296.13(7) include a method for the participant to request updates to the plan; and
296.14(8) record the alternative home and community-based settings that were considered
296.15by the participant.
296.16(s) (t) "Shared services" means the provision of CFSS services by the same CFSS
296.17support worker to two or three participants who voluntarily enter into an agreement to
296.18receive services at the same time and in the same setting by the same provider employer.
296.19(t) "Support specialist" means a professional with the skills and ability to assist the
296.20participant using either the agency-provider model under subdivision 11 or the flexible
296.21spending model under subdivision 13, in services including but not limited to assistance
296.22regarding:
296.23(1) the development, implementation, and evaluation of the CFSS service delivery
296.24plan under subdivision 6;
296.25(2) recruitment, training, or supervision, including supervision of health-related tasks
296.26or behavioral supports appropriately delegated or assigned by a health care professional,
296.27and evaluation of support workers; and
296.28(3) facilitating the use of informal and community supports, goods, or resources.
296.29(u) "Support worker" means an a qualified and trained employee of the agency
296.30provider agency-provider or of the participant employer under the budget model who
296.31has direct contact with the participant and provides services as specified within the
296.32participant's service delivery plan.
296.33(v) "Wages and benefits" means the hourly wages and salaries, the employer's
296.34share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers'
296.35compensation, mileage reimbursement, health and dental insurance, life insurance,
297.1disability insurance, long-term care insurance, uniform allowance, contributions to
297.2employee retirement accounts, or other forms of employee compensation and benefits.
297.3(w) "Worker training and development" means services for developing workers'
297.4skills as required by the participant's individual CFSS delivery plan that are arranged for
297.5or provided by the agency-provider or purchased by the participant employer. These
297.6services include training, education, direct observation and supervision, and evaluation
297.7and coaching of job skills and tasks, including supervision of health-related tasks or
297.8behavioral supports.

297.9    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is
297.10amended to read:
297.11    Subd. 3. Eligibility. (a) CFSS is available to a person who meets one of the
297.12following:
297.13(1) is a recipient an enrollee of medical assistance as determined under section
297.14256B.055 , 256B.056, or 256B.057, subdivisions 5 and 9;
297.15(2) is a recipient of participant in the alternative care program under section
297.16256B.0913 ;
297.17(3) is a waiver recipient participant as defined under section 256B.0915, 256B.092,
297.18256B.093 , or 256B.49; or
297.19(4) has medical services identified in a participant's individualized education
297.20program and is eligible for services as determined in section 256B.0625, subdivision 26.
297.21(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also
297.22meet all of the following:
297.23(1) require assistance and be determined dependent in one activity of daily living or
297.24Level I behavior based on assessment under section 256B.0911; and
297.25(2) is not a recipient of participant under a family support grant under section 252.32;.
297.26(3) lives in the person's own apartment or home including a family foster care setting
297.27licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a
297.28noncertified boarding care home or a boarding and lodging establishment under chapter
297.29157.

297.30    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is
297.31amended to read:
297.32    Subd. 5. Assessment requirements. (a) The assessment of functional need must:
297.33(1) be conducted by a certified assessor according to the criteria established in
297.34section 256B.0911, subdivision 3a;
298.1(2) be conducted face-to-face, initially and at least annually thereafter, or when there
298.2is a significant change in the participant's condition or a change in the need for services
298.3and supports, or at the request of the participant when the participant experiences a change
298.4in condition or needs a change in services or supports; and
298.5(3) be completed using the format established by the commissioner.
298.6(b) A participant who is residing in a facility may be assessed and choose CFSS for
298.7the purpose of using CFSS to return to the community as described in subdivisions 3
298.8and 7, paragraph (a), clause (5).
298.9(c) (b) The results of the assessment and any recommendations and authorizations
298.10for CFSS must be determined and communicated in writing by the lead agency's certified
298.11assessor as defined in section 256B.0911 to the participant and the agency-provider or
298.12financial management services provider FMS contractor chosen by the participant within
298.1340 calendar days and must include the participant's right to appeal under section 256.045,
298.14subdivision 3 .
298.15(d) (c) The lead agency assessor may request authorize a temporary authorization
298.16for CFSS services to be provided under the agency-provider model. Authorization for
298.17a temporary level of CFSS services under the agency-provider model is limited to the
298.18time specified by the commissioner, but shall not exceed 45 days. The level of services
298.19authorized under this provision paragraph shall have no bearing on a future authorization.

298.20    Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is
298.21amended to read:
298.22    Subd. 6. Community first services and support service delivery plan. (a) The
298.23CFSS service delivery plan must be developed, implemented, and evaluated through a
298.24person-centered planning process by the participant, or the participant's representative
298.25or legal representative who may be assisted by a support specialist consultation services
298.26provider. The CFSS service delivery plan must reflect the services and supports that
298.27are important to the participant and for the participant to meet the needs assessed
298.28by the certified assessor and identified in the community support plan under section
298.29256B.0911, subdivision 3 , or the coordinated services and support plan identified in
298.30section 256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be
298.31reviewed by the participant, the consultation services provider, and the agency-provider
298.32or financial management services FMS contractor prior to starting services and at least
298.33annually upon reassessment, or when there is a significant change in the participant's
298.34condition, or a change in the need for services and supports.
299.1(b) The commissioner shall establish the format and criteria for the CFSS service
299.2delivery plan.
299.3(c) The CFSS service delivery plan must be person-centered and:
299.4(1) specify the consultation services provider, agency-provider, or financial
299.5management services FMS contractor selected by the participant;
299.6(2) reflect the setting in which the participant resides that is chosen by the participant;
299.7(3) reflect the participant's strengths and preferences;
299.8(4) include the means to address the clinical and support needs as identified through
299.9an assessment of functional needs;
299.10(5) include individually identified goals and desired outcomes;
299.11(6) reflect the services and supports, paid and unpaid, that will assist the participant
299.12to achieve identified goals, including the costs of the services and supports, and the
299.13providers of those services and supports, including natural supports;
299.14(7) identify the amount and frequency of face-to-face supports and amount and
299.15frequency of remote supports and technology that will be used;
299.16(8) identify risk factors and measures in place to minimize them, including
299.17individualized backup plans;
299.18(9) be understandable to the participant and the individuals providing support;
299.19(10) identify the individual or entity responsible for monitoring the plan;
299.20(11) be finalized and agreed to in writing by the participant and signed by all
299.21individuals and providers responsible for its implementation;
299.22(12) be distributed to the participant and other people involved in the plan; and
299.23(13) prevent the provision of unnecessary or inappropriate care.;
299.24(14) include a detailed budget for expenditures for budget model participants or
299.25participants under the agency-provider model if purchasing goods; and
299.26(15) include a plan for worker training and development detailing what service
299.27components will be used, when the service components will be used, how they will be
299.28provided, and how these service components relate to the participant's individual needs
299.29and CFSS support worker services.
299.30(d) The total units of agency-provider services or the service budget allocation
299.31 amount for the budget model include both annual totals and a monthly average amount
299.32that cover the number of months of the service authorization. The amount used each
299.33month may vary, but additional funds must not be provided above the annual service
299.34authorization amount unless a change in condition is assessed and authorized by the
299.35certified assessor and documented in the community support plan, coordinated services
299.36and supports plan, and CFSS service delivery plan.
300.1(e) In assisting with the development or modification of the plan during the
300.2authorization time period, the consultation services provider shall:
300.3(1) consult with the FMS contractor on the spending budget when applicable; and
300.4(2) consult with the participant or participant's representative, agency-provider, and
300.5case manager/care coordinator.
300.6(f) The service plan must be approved by the consultation services provider for
300.7participants without a case manager/care coordinator. A case manager/care coordinator
300.8must approve the plan for a waiver or alternative care program participant.

300.9    Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 7, is
300.10amended to read:
300.11    Subd. 7. Community first services and supports; covered services. Within the
300.12service unit authorization or service budget allocation amount, services and supports
300.13covered under CFSS include:
300.14(1) assistance to accomplish activities of daily living (ADLs), instrumental activities
300.15of daily living (IADLs), and health-related procedures and tasks through hands-on
300.16assistance to accomplish the task or constant supervision and cueing to accomplish the task;
300.17(2) assistance to acquire, maintain, or enhance the skills necessary for the participant
300.18to accomplish activities of daily living, instrumental activities of daily living, or
300.19health-related tasks;
300.20(3) expenditures for items, services, supports, environmental modifications, or
300.21goods, including assistive technology. These expenditures must:
300.22(i) relate to a need identified in a participant's CFSS service delivery plan;
300.23(ii) increase independence or substitute for human assistance to the extent that
300.24expenditures would otherwise be made for human assistance for the participant's assessed
300.25needs;
300.26(4) observation and redirection for behavior or symptoms where there is a need for
300.27assistance. An assessment of behaviors must meet the criteria in this clause. A recipient
300.28 participant qualifies as having a need for assistance due to behaviors if the recipient's
300.29 participant's behavior requires assistance at least four times per week and shows one or
300.30more of the following behaviors:
300.31(i) physical aggression towards self or others, or destruction of property that requires
300.32the immediate response of another person;
300.33(ii) increased vulnerability due to cognitive deficits or socially inappropriate
300.34behavior; or
301.1(iii) increased need for assistance for recipients participants who are verbally
301.2aggressive or resistive to care so that time needed to perform activities of daily living is
301.3increased;
301.4(5) back-up systems or mechanisms, such as the use of pagers or other electronic
301.5devices, to ensure continuity of the participant's services and supports;
301.6(6) transition costs, including:
301.7(i) deposits for rent and utilities;
301.8(ii) first month's rent and utilities;
301.9(iii) bedding;
301.10(iv) basic kitchen supplies;
301.11(v) other necessities, to the extent that these necessities are not otherwise covered
301.12under any other funding that the participant is eligible to receive; and
301.13(vi) other required necessities for an individual to make the transition from a nursing
301.14facility, institution for mental diseases, or intermediate care facility for persons with
301.15developmental disabilities to a community-based home setting where the participant
301.16resides; and
301.17(7) (6) services provided by a support specialist consultation services provider under
301.18contract with the department and enrolled as a Minnesota health care program provider as
301.19 defined under subdivision 2 that are chosen by the participant. 17;
301.20(7) services provided by an FMS contractor under contract with the department
301.21as defined under subdivision 13;
301.22(8) CFSS services provided by a qualified support worker who is a parent, stepparent,
301.23or legal guardian of a participant under age 18, or who is the participant's spouse. These
301.24support workers shall not provide any medical assistance home and community-based
301.25services in excess of 40 hours per seven-day period regardless of the number of parents,
301.26combination of parents and spouses, or number of children who receive medical assistance
301.27services; and
301.28(9) worker training and development services as defined in subdivision 2, paragraph
301.29(w), and described in subdivision 18a.

301.30    Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is
301.31amended to read:
301.32    Subd. 8. Determination of CFSS service methodology. (a) All community first
301.33services and supports must be authorized by the commissioner or the commissioner's
301.34designee before services begin, except for the assessments established in section
302.1256B.0911 . The authorization for CFSS must be completed as soon as possible following
302.2an assessment but no later than 40 calendar days from the date of the assessment.
302.3(b) The amount of CFSS authorized must be based on the recipient's participant's
302.4 home care rating described in paragraphs (d) and (e) and any additional service units for
302.5which the person participant qualifies as described in paragraph (f).
302.6(c) The home care rating shall be determined by the commissioner or the
302.7commissioner's designee based on information submitted to the commissioner identifying
302.8the following for a recipient participant:
302.9(1) the total number of dependencies of activities of daily living as defined in
302.10subdivision 2, paragraph (b);
302.11(2) the presence of complex health-related needs as defined in subdivision 2,
302.12paragraph (e); and
302.13(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d),
302.14clause (1).
302.15(d) The methodology to determine the total service units for CFSS for each home
302.16care rating is based on the median paid units per day for each home care rating from
302.17fiscal year 2007 data for the PCA program.
302.18(e) Each home care rating is designated by the letters P through Z and EN and has
302.19the following base number of service units assigned:
302.20(1) P home care rating requires Level I behavior or one to three dependencies in
302.21ADLs and qualifies one for five service units;
302.22(2) Q home care rating requires Level I behavior and one to three dependencies in
302.23ADLs and qualifies one for six service units;
302.24(3) R home care rating requires a complex health-related need and one to three
302.25dependencies in ADLs and qualifies one for seven service units;
302.26(4) S home care rating requires four to six dependencies in ADLs and qualifies
302.27one for ten service units;
302.28(5) T home care rating requires four to six dependencies in ADLs and Level I
302.29behavior and qualifies one for 11 service units;
302.30(6) U home care rating requires four to six dependencies in ADLs and a complex
302.31health-related need and qualifies one for 14 service units;
302.32(7) V home care rating requires seven to eight dependencies in ADLs and qualifies
302.33one for 17 service units;
302.34(8) W home care rating requires seven to eight dependencies in ADLs and Level I
302.35behavior and qualifies one for 20 service units;
303.1(9) Z home care rating requires seven to eight dependencies in ADLs and a complex
303.2health-related need and qualifies one for 30 service units; and
303.3(10) EN home care rating includes ventilator dependency as defined in section
303.4256B.0651, subdivision 1 , paragraph (g). Recipients Participants who meet the definition
303.5of ventilator-dependent and the EN home care rating and utilize a combination of
303.6CFSS and other home care services are limited to a total of 96 service units per day for
303.7those services in combination. Additional units may be authorized when a recipient's
303.8 participant's assessment indicates a need for two staff to perform activities. Additional
303.9time is limited to 16 service units per day.
303.10(f) Additional service units are provided through the assessment and identification of
303.11the following:
303.12(1) 30 additional minutes per day for a dependency in each critical activity of daily
303.13living as defined in subdivision 2, paragraph (h) (j);
303.14(2) 30 additional minutes per day for each complex health-related function as
303.15defined in subdivision 2, paragraph (e) (f); and
303.16(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2,
303.17paragraph (d).
303.18(g) The service budget for budget model participants shall be based on:
303.19(1) assessed units as determined by the home care rating; and
303.20(2) an adjustment needed for administrative expenses.

303.21    Sec. 10. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 9, is
303.22amended to read:
303.23    Subd. 9. Noncovered services. (a) Services or supports that are not eligible for
303.24payment under this section include those that:
303.25(1) are not authorized by the certified assessor or included in the written service
303.26delivery plan;
303.27(2) are provided prior to the authorization of services and the approval of the written
303.28CFSS service delivery plan;
303.29(3) are duplicative of other paid services in the written service delivery plan;
303.30(4) supplant natural unpaid supports that appropriately meet a need in the service
303.31plan, are provided voluntarily to the participant, and are selected by the participant in lieu
303.32of other services and supports;
303.33(5) are not effective means to meet the participant's needs; and
303.34(6) are available through other funding sources, including, but not limited to, funding
303.35through title IV-E of the Social Security Act.
304.1(b) Additional services, goods, or supports that are not covered include:
304.2(1) those that are not for the direct benefit of the participant, except that services for
304.3caregivers such as training to improve the ability to provide CFSS are considered to directly
304.4benefit the participant if chosen by the participant and approved in the support plan;
304.5(2) any fees incurred by the participant, such as Minnesota health care programs fees
304.6and co-pays, legal fees, or costs related to advocate agencies;
304.7(3) insurance, except for insurance costs related to employee coverage;
304.8(4) room and board costs for the participant with the exception of allowable
304.9transition costs in subdivision 7, clause (6);
304.10(5) services, supports, or goods that are not related to the assessed needs;
304.11(6) special education and related services provided under the Individuals with
304.12Disabilities Education Act and vocational rehabilitation services provided under the
304.13Rehabilitation Act of 1973;
304.14(7) assistive technology devices and assistive technology services other than those
304.15for back-up systems or mechanisms to ensure continuity of service and supports listed in
304.16subdivision 7;
304.17(8) medical supplies and equipment covered under medical assistance;
304.18(9) environmental modifications, except as specified in subdivision 7;
304.19(10) expenses for travel, lodging, or meals related to training the participant, or the
304.20participant's representative, or legal representative, or paid or unpaid caregivers that
304.21exceed $500 in a 12-month period;
304.22(11) experimental treatments;
304.23(12) any service or good covered by other medical assistance state plan services,
304.24including prescription and over-the-counter medications, compounds, and solutions and
304.25related fees, including premiums and co-payments;
304.26(13) membership dues or costs, except when the service is necessary and appropriate
304.27to treat a physical health condition or to improve or maintain the participant's physical
304.28 health condition. The condition must be identified in the participant's CFSS plan and
304.29monitored by a physician enrolled in a Minnesota health care program enrolled physician;
304.30(14) vacation expenses other than the cost of direct services;
304.31(15) vehicle maintenance or modifications not related to the disability, health
304.32condition, or physical need; and
304.33(16) tickets and related costs to attend sporting or other recreational or entertainment
304.34events.;
304.35(17) services provided and billed by a provider who is not an enrolled CFSS provider;
304.36(18) CFSS provided by a participant's representative or paid legal guardian;
305.1(19) services that are used solely as a child care or babysitting service;
305.2(20) services that are the responsibility or in the daily rate of a residential or program
305.3license holder under the terms of a service agreement and administrative rules;
305.4(21) sterile procedures;
305.5(22) giving of injections into veins, muscles, or skin;
305.6(23) homemaker services that are not an integral part of the assessed CFSS service;
305.7(24) home maintenance or chore services;
305.8(25) home care services, including hospice services if elected by the participant,
305.9covered by Medicare or any other insurance held by the participant;
305.10(26) services to other members of the participant's household;
305.11(27) services not specified as covered under medical assistance as CFSS;
305.12(28) application of restraints or implementation of deprivation procedures;
305.13(29) assessments by CFSS provider organizations or by independently enrolled
305.14registered nurses;
305.15(30) services provided in lieu of legally required staffing in a residential or child
305.16care setting; and
305.17(31) services provided by the residential or program license holder in a residence for
305.18more than four persons.

305.19    Sec. 11. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 10,
305.20is amended to read:
305.21    Subd. 10. Provider Agency-provider and FMS contractor qualifications and,
305.22 general requirements, and duties. (a) Agency-providers delivering services under the
305.23agency-provider model under subdivision 11 or financial management service (FMS)
305.24 FMS contractors under subdivision 13 shall:
305.25(1) enroll as a medical assistance Minnesota health care programs provider and meet
305.26all applicable provider standards and requirements;
305.27(2) comply with medical assistance provider enrollment requirements;
305.28(3) (2) demonstrate compliance with law federal and state laws and policies of for
305.29 CFSS as determined by the commissioner;
305.30(4) (3) comply with background study requirements under chapter 245C and
305.31maintain documentation of background study requests and results;
305.32(5) (4) verify and maintain records of all services and expenditures by the participant,
305.33including hours worked by support workers and support specialists;
306.1(6) (5) not engage in any agency-initiated direct contact or marketing in person, by
306.2telephone, or other electronic means to potential participants, guardians, family members,
306.3or participants' representatives;
306.4(6) directly provide services and not use a subcontractor or reporting agent;
306.5(7) meet the financial requirements established by the commissioner for financial
306.6solvency;
306.7(8) have never had a lead agency contract or provider agreement discontinued due to
306.8fraud, or have never had an owner, board member, or manager fail a state or FBI-based
306.9criminal background check while enrolled or seeking enrollment as a Minnesota health
306.10care programs provider;
306.11(9) have established business practices that include written policies and procedures,
306.12internal controls, and a system that demonstrates the organization's ability to deliver
306.13quality CFSS; and
306.14(10) have an office located in Minnesota.
306.15(b) In conducting general duties, agency-providers and FMS contractors shall:
306.16(7) (1) pay support workers and support specialists based upon actual hours of
306.17services provided;
306.18(2) pay for worker training and development services based upon actual hours of
306.19services provided or the unit cost of the training session purchased;
306.20(8) (3) withhold and pay all applicable federal and state payroll taxes;
306.21(9) (4) make arrangements and pay unemployment insurance, taxes, workers'
306.22compensation, liability insurance, and other benefits, if any;
306.23(10) (5) enter into a written agreement with the participant, participant's
306.24representative, or legal representative that assigns roles and responsibilities to be
306.25performed before services, supports, or goods are provided using a format established by
306.26the commissioner;
306.27(11) (6) report maltreatment as required under sections 626.556 and 626.557; and
306.28(12) (7) provide the participant with a copy of the service-related rights under
306.29subdivision 20 at the start of services and supports.; and
306.30(8) comply with any data requests from the department consistent with the
306.31Minnesota Government Data Practices Act under chapter 13.

306.32    Sec. 12. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 11,
306.33is amended to read:
306.34    Subd. 11. Agency-provider model. (a) The agency-provider model is limited to
306.35the includes services provided by support workers and support specialists staff providing
307.1worker training and development services who are employed by an agency-provider
307.2that is licensed according to chapter 245A or meets other criteria established by the
307.3commissioner, including required training.
307.4(b) The agency-provider shall allow the participant to have a significant role in the
307.5selection and dismissal of the support workers for the delivery of the services and supports
307.6specified in the participant's service delivery plan.
307.7(c) A participant may use authorized units of CFSS services as needed within a
307.8service authorization that is not greater than 12 months. Using authorized units in a
307.9flexible manner in either the agency-provider model or the budget model does not increase
307.10the total amount of services and supports authorized for a participant or included in the
307.11participant's service delivery plan.
307.12(d) A participant may share CFSS services. Two or three CFSS participants may
307.13share services at the same time provided by the same support worker.
307.14(e) The agency-provider must use a minimum of 72.5 percent of the revenue
307.15generated by the medical assistance payment for CFSS for support worker wages and
307.16benefits. The agency-provider must document how this requirement is being met. The
307.17revenue generated by the support specialist worker training and development services
307.18 and the reasonable costs associated with the support specialist worker training and
307.19development services must not be used in making this calculation.
307.20(f) The agency-provider model must be used by individuals who have been restricted
307.21by the Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160
307.22to 9505.2245.
307.23(g) Participants purchasing goods under this model, along with support worker
307.24services, must:
307.25(1) specify the goods in the service delivery plan and detailed budget for
307.26expenditures that must be approved by the consultation services provider or the case
307.27manager/care coordinator; and
307.28(2) use the FMS contractor for the billing and payment of such goods.

307.29    Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12,
307.30is amended to read:
307.31    Subd. 12. Requirements for enrollment of CFSS provider agency-provider
307.32 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of
307.33enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in
307.34a format determined by the commissioner, information and documentation that includes,
307.35but is not limited to, the following:
308.1(1) the CFSS provider agency's agency-provider's current contact information
308.2including address, telephone number, and e-mail address;
308.3(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's
308.4 agency-provider's Medicaid revenue in the previous calendar year is less than or equal
308.5to $300,000, the provider agency agency-provider must purchase a performance bond of
308.6$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous
308.7calendar year is greater than $300,000, the provider agency agency-provider must
308.8purchase a performance bond of $100,000. The performance bond must be in a form
308.9approved by the commissioner, must be renewed annually, and must allow for recovery of
308.10costs and fees in pursuing a claim on the bond;
308.11(3) proof of fidelity bond coverage in the amount of $20,000;
308.12(4) proof of workers' compensation insurance coverage;
308.13(5) proof of liability insurance;
308.14(6) a description of the CFSS provider agency's agency-provider's organization
308.15identifying the names of all owners, managing employees, staff, board of directors, and
308.16the affiliations of the directors, and owners, or staff to other service providers;
308.17(7) a copy of the CFSS provider agency's agency-provider's written policies and
308.18procedures including: hiring of employees; training requirements; service delivery;
308.19and employee and consumer safety including process for notification and resolution
308.20of consumer grievances, identification and prevention of communicable diseases, and
308.21employee misconduct;
308.22(8) copies of all other forms the CFSS provider agency agency-provider uses in the
308.23course of daily business including, but not limited to:
308.24(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time
308.25sheet varies from the standard time sheet for CFSS services approved by the commissioner,
308.26and a letter requesting approval of the CFSS provider agency's agency-provider's
308.27 nonstandard time sheet; and
308.28(ii) the a copy of the participant's individual CFSS provider agency's template for the
308.29CFSS care service delivery plan;
308.30(9) a list of all training and classes that the CFSS provider agency agency-provider
308.31 requires of its staff providing CFSS services;
308.32(10) documentation that the CFSS provider agency agency-provider and staff have
308.33successfully completed all the training required by this section;
308.34(11) documentation of the agency's agency-provider's marketing practices;
308.35(12) disclosure of ownership, leasing, or management of all residential properties
308.36that are used or could be used for providing home care services;
309.1(13) documentation that the agency agency-provider will use at least the following
309.2percentages of revenue generated from the medical assistance rate paid for CFSS services
309.3for employee personal care assistant CFSS support worker wages and benefits: 72.5
309.4percent of revenue from CFSS providers. The revenue generated by the support specialist
309.5 worker training and development services and the reasonable costs associated with the
309.6support specialist worker training and development services shall not be used in making
309.7this calculation; and
309.8(14) documentation that the agency agency-provider does not burden recipients'
309.9 participants' free exercise of their right to choose service providers by requiring personal
309.10care assistants CFSS support workers to sign an agreement not to work with any particular
309.11CFSS recipient participant or for another CFSS provider agency agency-provider after
309.12leaving the agency and that the agency is not taking action on any such agreements or
309.13requirements regardless of the date signed.
309.14(b) CFSS provider agencies agency-providers shall provide to the commissioner
309.15the information specified in paragraph (a).
309.16(c) All CFSS provider agencies agency-providers shall require all employees in
309.17management and supervisory positions and owners of the agency who are active in the
309.18day-to-day management and operations of the agency to complete mandatory training as
309.19determined by the commissioner. Employees in management and supervisory positions
309.20and owners who are active in the day-to-day operations of an agency who have completed
309.21the required training as an employee with a CFSS provider agency agency-provider do
309.22not need to repeat the required training if they are hired by another agency, if they have
309.23completed the training within the past three years. CFSS provider agency agency-provider
309.24 billing staff shall complete training about CFSS program financial management. Any new
309.25owners or employees in management and supervisory positions involved in the day-to-day
309.26operations are required to complete mandatory training as a requisite of working for the
309.27agency. CFSS provider agencies certified for participation in Medicare as home health
309.28agencies are exempt from the training required in this subdivision.
309.29(d) The commissioner shall send annual review notifications to agency-providers 30
309.30days prior to renewal. The notification must:
309.31(1) list the materials and information the agency-provider is required to submit;
309.32(2) provide instructions on submitting information to the commissioner; and
309.33(3) provide a due date by which the commissioner must receive the requested
309.34information.
310.1Agency-providers shall submit the required documentation for annual review within
310.230 days of notification from the commissioner. If no documentation is submitted, the
310.3agency-provider enrollment number must be terminated or suspended.

310.4    Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13,
310.5is amended to read:
310.6    Subd. 13. Budget model. (a) Under the budget model participants can may exercise
310.7more responsibility and control over the services and supports described and budgeted
310.8within the CFSS service delivery plan. Participants must use services provided by an FMS
310.9contractor as defined in subdivision 2, paragraph (m). Under this model, participants may
310.10use their approved service budget allocation to:
310.11(1) directly employ support workers, and pay wages, federal and state payroll taxes,
310.12and premiums for workers' compensation, liability, and health insurance coverage; and
310.13(2) obtain supports and goods as defined in subdivision 7; and.
310.14(3) choose a range of support assistance services from the financial management
310.15services (FMS) contractor related to:
310.16(i) assistance in managing the budget to meet the service delivery plan needs,
310.17consistent with federal and state laws and regulations;
310.18(ii) the employment, training, supervision, and evaluation of workers by the
310.19participant;
310.20(iii) acquisition and payment for supports and goods; and
310.21(iv) evaluation of individual service outcomes as needed for the scope of the
310.22participant's degree of control and responsibility.
310.23(b) Participants who are unable to fulfill any of the functions listed in paragraph (a)
310.24may authorize a legal representative or participant's representative to do so on their behalf.
310.25(c) The commissioner shall disenroll or exclude participants from the budget model
310.26and transfer them to the agency-provider model under the following circumstances that
310.27include but are not limited to:
310.28(1) when a participant has been restricted by the Minnesota restricted recipient
310.29program, in which case the participant may be excluded for a specified time period under
310.30Minnesota Rules, parts 9505.2160 to 9505.2245;
310.31(2) when a participant exits the budget model during the participant's service plan
310.32year. Upon transfer, the participant shall not access the budget model for the remainder of
310.33that service plan year; or
310.34(3) when the department determines that the participant or participant's representative
310.35or legal representative cannot manage participant responsibilities under the budget model.
311.1The commissioner must develop policies for determining if a participant is unable to
311.2manage responsibilities under the budget model.
311.3(d) A participant may appeal in writing to the department under section 256.045,
311.4subdivision 3, to contest the department's decision under paragraph (c), clause (3), to
311.5disenroll or exclude the participant from the budget model.
311.6(c) (e) The FMS contractor shall not provide CFSS services and supports under the
311.7agency-provider service model.
311.8(f) The FMS contractor shall provide service functions as determined by the
311.9commissioner for budget model participants that include but are not limited to:
311.10(1) information and consultation about CFSS;
311.11(2) (1) assistance with the development of the detailed budget for expenditures
311.12portion of the service delivery plan and budget model as requested by the consultation
311.13services provider or participant;
311.14(3) (2) billing and making payments for budget model expenditures;
311.15(4) (3) assisting participants in fulfilling employer-related requirements according to
311.16Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax
311.17Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related
311.18regulations and interpretations, including Code of Federal Regulations, title 26, section
311.1931.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining
311.20worker compensation coverage;
311.21(5) (4) data recording and reporting of participant spending; and
311.22(6) (5) other duties established in the contract with the department, including with
311.23respect to providing assistance to the participant, participant's representative, or legal
311.24representative in performing their employer responsibilities regarding support workers.
311.25The support worker shall not be considered the employee of the financial management
311.26services FMS contractor.; and
311.27(6) billing, payment, and accounting of approved expenditures for goods for
311.28agency-provider participants.
311.29(d) A participant who requests to purchase goods and supports along with support
311.30worker services under the agency-provider model must use the budget model with
311.31a service delivery plan that specifies the amount of services to be authorized to the
311.32agency-provider and the expenditures to be paid by the FMS contractor.
311.33(e) (g) The FMS contractor shall:
311.34(1) not limit or restrict the participant's choice of service or support providers or
311.35service delivery models consistent with any applicable state and federal requirements;
312.1(2) provide the participant, consultation services provider, and the targeted case
312.2manager, if applicable, with a monthly written summary of the spending for services and
312.3supports that were billed against the spending budget;
312.4(3) be knowledgeable of state and federal employment regulations, including those
312.5under the Fair Labor Standards Act of 1938, and comply with the requirements under the
312.6Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the
312.7Internal Revenue Code and related regulations and interpretations, including Code of
312.8Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability
312.9for vendor or fiscal employer agent, and any requirements necessary to process employer
312.10and employee deductions, provide appropriate and timely submission of employer tax
312.11liabilities, and maintain documentation to support medical assistance claims;
312.12(4) have current and adequate liability insurance and bonding and sufficient cash
312.13flow as determined by the commissioner and have on staff or under contract a certified
312.14public accountant or an individual with a baccalaureate degree in accounting;
312.15(5) assume fiscal accountability for state funds designated for the program and be
312.16held liable for any overpayments or violations of applicable statutes or rules, including
312.17but not limited to the Minnesota False Claims Act; and
312.18(6) maintain documentation of receipts, invoices, and bills to track all services and
312.19supports expenditures for any goods purchased and maintain time records of support
312.20workers. The documentation and time records must be maintained for a minimum of
312.21five years from the claim date and be available for audit or review upon request by the
312.22commissioner. Claims submitted by the FMS contractor to the commissioner for payment
312.23must correspond with services, amounts, and time periods as authorized in the participant's
312.24spending service budget and service plan and must contain specific identifying information
312.25as determined by the commissioner.
312.26(f) (h) The commissioner of human services shall:
312.27(1) establish rates and payment methodology for the FMS contractor;
312.28(2) identify a process to ensure quality and performance standards for the FMS
312.29contractor and ensure statewide access to FMS contractors; and
312.30(3) establish a uniform protocol for delivering and administering CFSS services
312.31to be used by eligible FMS contractors.
312.32(g) The commissioner of human services shall disenroll or exclude participants from
312.33the budget model and transfer them to the agency-provider model under the following
312.34circumstances that include but are not limited to:
313.1(1) when a participant has been restricted by the Minnesota restricted recipient
313.2program, the participant may be excluded for a specified time period under Minnesota
313.3Rules, parts 9505.2160 to 9505.2245;
313.4(2) when a participant exits the budget model during the participant's service plan
313.5year. Upon transfer, the participant shall not access the budget model for the remainder of
313.6that service plan year; or
313.7(3) when the department determines that the participant or participant's representative
313.8or legal representative cannot manage participant responsibilities under the budget model.
313.9The commissioner must develop policies for determining if a participant is unable to
313.10manage responsibilities under a budget model.
313.11(h) A participant may appeal under section 256.045, subdivision 3, in writing to the
313.12department to contest the department's decision under paragraph (c), clause (3), to remove
313.13or exclude the participant from the budget model.

313.14    Sec. 15. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 15,
313.15is amended to read:
313.16    Subd. 15. Documentation of support services provided. (a) Support services
313.17provided to a participant by a support worker employed by either an agency-provider
313.18or the participant acting as the employer must be documented daily by each support
313.19worker, on a time sheet form approved by the commissioner. All documentation may be
313.20Web-based, electronic, or paper documentation. The completed form must be submitted
313.21on a monthly regular basis to the provider or the participant and the FMS contractor
313.22selected by the participant to provide assistance with meeting the participant's employer
313.23obligations and kept in the recipient's health participant's record.
313.24(b) The activity documentation must correspond to the written service delivery plan
313.25and be reviewed by the agency-provider or the participant and the FMS contractor when
313.26the participant is acting as the employer of the support worker.
313.27(c) The time sheet must be on a form approved by the commissioner documenting
313.28time the support worker provides services in the home to the participant. The following
313.29criteria must be included in the time sheet:
313.30(1) full name of the support worker and individual provider number;
313.31(2) provider agency-provider name and telephone numbers, if an agency-provider is
313.32 responsible for delivery services under the written service plan;
313.33(3) full name of the participant;
313.34(4) consecutive dates, including month, day, and year, and arrival and departure
313.35times with a.m. or p.m. notations;
314.1(5) signatures of the participant or the participant's representative;
314.2(6) personal signature of the support worker;
314.3(7) any shared care provided, if applicable;
314.4(8) a statement that it is a federal crime to provide false information on CFSS
314.5billings for medical assistance payments; and
314.6(9) dates and location of recipient participant stays in a hospital, care facility, or
314.7incarceration.

314.8    Sec. 16. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 16,
314.9is amended to read:
314.10    Subd. 16. Support workers requirements. (a) Support workers shall:
314.11(1) enroll with the department as a support worker after a background study under
314.12chapter 245C has been completed and the support worker has received a notice from the
314.13commissioner that:
314.14(i) the support worker is not disqualified under section 245C.14; or
314.15(ii) is disqualified, but the support worker has received a set-aside of the
314.16disqualification under section 245C.22;
314.17(2) have the ability to effectively communicate with the participant or the
314.18participant's representative;
314.19(3) have the skills and ability to provide the services and supports according to
314.20the person's participant's CFSS service delivery plan and respond appropriately to the
314.21participant's needs;
314.22(4) not be a participant of CFSS, unless the support services provided by the support
314.23worker differ from those provided to the support worker;
314.24(5) complete the basic standardized training as determined by the commissioner
314.25before completing enrollment. The training must be available in languages other than
314.26English and to those who need accommodations due to disabilities. Support worker
314.27training must include successful completion of the following training components: basic
314.28first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles
314.29and responsibilities of support workers including information about basic body mechanics,
314.30emergency preparedness, orientation to positive behavioral practices, orientation to
314.31responding to a mental health crisis, fraud issues, time cards and documentation, and an
314.32overview of person-centered planning and self-direction. Upon completion of the training
314.33components, the support worker must pass the certification test to provide assistance
314.34to participants;
314.35(6) complete training and orientation on the participant's individual needs; and
315.1(7) maintain the privacy and confidentiality of the participant, and not independently
315.2determine the medication dose or time for medications for the participant.
315.3(b) The commissioner may deny or terminate a support worker's provider enrollment
315.4and provider number if the support worker:
315.5(1) lacks the skills, knowledge, or ability to adequately or safely perform the
315.6required work;
315.7(2) fails to provide the authorized services required by the participant employer;
315.8(3) has been intoxicated by alcohol or drugs while providing authorized services to
315.9the participant or while in the participant's home;
315.10(4) has manufactured or distributed drugs while providing authorized services to the
315.11participant or while in the participant's home; or
315.12(5) has been excluded as a provider by the commissioner of human services, or the
315.13United States Department of Health and Human Services, Office of Inspector General,
315.14from participation in Medicaid, Medicare, or any other federal health care program.
315.15(c) A support worker may appeal in writing to the commissioner to contest the
315.16decision to terminate the support worker's provider enrollment and provider number.
315.17(d) A support worker must not provide or be paid for more than 275 hours of
315.18CFSS per month, regardless of the number of participants the support worker serves or
315.19the number of agency-providers or participant employers by which the support worker
315.20is employed. The department shall not disallow the number of hours per day a support
315.21worker works unless it violates other law.

315.22    Sec. 17. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
315.23a subdivision to read:
315.24    Subd. 16a. Exception to support worker requirements for continuity of services.
315.25The support worker for a participant may be allowed to enroll with a different CFSS
315.26agency-provider or FMS contractor upon initiation, rather than completion, of a new
315.27background study according to chapter 245C, if the following conditions are met:
315.28(1) the commissioner determines that the support worker's change in enrollment or
315.29affiliation is needed to ensure continuity of services and protect the health and safety
315.30of the participant;
315.31(2) the chosen agency-provider or FMS contractor has been continuously enrolled as
315.32a CFSS agency-provider or FMS contractor for at least two years or since the inception of
315.33the CFSS program, whichever is shorter;
315.34(3) the participant served by the support worker chooses to transfer to the CFSS
315.35agency-provider or the FMS contractor to which the support worker is transferring;
316.1(4) the support worker has been continuously enrolled with the former CFSS
316.2agency-provider or FMS contractor since the support worker's last background study
316.3was completed; and
316.4(5) the support worker continues to meet requirements of subdivision 16, excluding
316.5paragraph (a), clause (1).

316.6    Sec. 18. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 17,
316.7is amended to read:
316.8    Subd. 17. Support specialist requirements and payments Consultation services
316.9description and duties. The commissioner shall develop qualifications, scope of
316.10functions, and payment rates and service limits for a support specialist that may provide
316.11additional or specialized assistance necessary to plan, implement, arrange, augment, or
316.12evaluate services and supports.
316.13(a) Consultation services means providing assistance to the participant in making
316.14informed choices regarding CFSS services in general and self-directed tasks in particular
316.15and in developing a person-centered service delivery plan to achieve quality service
316.16outcomes.
316.17(b) Consultation services is a required service that may include but is not limited to:
316.18(1) an initial and annual orientation to CFSS information and policies, including
316.19selecting a service model;
316.20(2) assistance with the development, implementation, management, and evaluation
316.21of the person-centered service delivery plan;
316.22(3) consultation on recruiting, selecting, training, managing, directing, evaluating,
316.23and supervising support workers;
316.24(4) reviewing the use of and access to informal and community supports, goods, or
316.25resources;
316.26(5) assistance with fulfilling responsibilities and requirements of CFSS including
316.27modifying service delivery plans and changing service models; and
316.28(6) assistance with accessing FMS contractors or agency-providers.
316.29(c) Duties of a consultation services provider shall include but are not limited to:
316.30(1) review and finalization of the CFSS service delivery plan by the consultation
316.31services provider organization;
316.32(2) distribution of copies of the final service delivery plan to the participant and
316.33to the agency-provider or FMS contractor, case manager/care coordinator, and other
316.34designated parties;
317.1(3) an evaluation of services upon receiving information from an FMS contractor
317.2indicating spending or participant employer concerns;
317.3(4) a semiannual review of services if the participant does not have a case
317.4manager/care coordinator and when the support worker is a paid parent of a minor
317.5participant or the participant's spouse;
317.6(5) collection and reporting of data as required by the department; and
317.7(6) providing the participant with a copy of the service-related rights under
317.8subdivision 20 at the start of consultation services.

317.9    Sec. 19. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
317.10a subdivision to read:
317.11    Subd. 17a. Consultation service provider qualifications and requirements.
317.12The commissioner shall develop the qualifications and requirements for providers of
317.13consultation services under subdivision 17. These providers must satisfy at least the
317.14following qualifications and requirements:
317.15(1) are under contract with the department;
317.16(2) are not the FMS contractor as defined in subdivision 2, paragraph (m), the CFSS
317.17or HCBS waiver agency-provider or vendor to the participant, or a lead agency;
317.18(3) meet the service standards as established by the commissioner;
317.19(4) employ lead professional staff with a minimum of three years of experience
317.20in providing support planning, support broker, or consultation services and consumer
317.21education to participants using a self-directed program using FMS under medical
317.22assistance;
317.23(5) are knowledgeable about CFSS roles and responsibilities including those of the
317.24certified assessor, FMS contractor, agency-provider, and case manager/care coordinator;
317.25(6) comply with medical assistance provider requirements;
317.26(7) understand the CFSS program and its policies;
317.27(8) are knowledgeable about self-directed principles and the application of the
317.28person-centered planning process;
317.29(9) have general knowledge of the FMS contractor duties and participant
317.30employment model, including all applicable federal, state, and local laws and regulations
317.31regarding tax, labor, employment, and liability and workers' compensation coverage for
317.32household workers; and
317.33(10) have all employees, including lead professional staff, staff in management
317.34and supervisory positions, and owners of the agency who are active in the day-to-day
318.1management and operations of the agency, complete training as specified in the contract
318.2with the department.

318.3    Sec. 20. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 18,
318.4is amended to read:
318.5    Subd. 18. Service unit and budget allocation requirements and limits. (a) For the
318.6agency-provider model, services will be authorized in units of service. The total service
318.7unit amount must be established based upon the assessed need for CFSS services, and must
318.8not exceed the maximum number of units available as determined under subdivision 8.
318.9(b) For the budget model, the service budget allocation allowed for services and
318.10supports is established by multiplying the number of units authorized under subdivision 8
318.11by the payment rate established by the commissioner defined in subdivision 8, paragraph
318.12(g).

318.13    Sec. 21. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
318.14a subdivision to read:
318.15    Subd. 18a. Worker training and development services. (a) The commissioner
318.16shall develop the scope of tasks and functions, service standards, and service limits for
318.17worker training and development services.
318.18(b) Worker training and development services are in addition to the participant's
318.19assessed service units or service budget. Services provided according to this subdivision
318.20must:
318.21(1) help support workers obtain and expand the skills and knowledge necessary to
318.22ensure competency in providing quality services as needed and defined in the participant's
318.23service delivery plan;
318.24(2) be provided or arranged for by the agency-provider under subdivision 11 or
318.25purchased by the participant employer under the budget model under subdivision 13; and
318.26(3) be described in the participant's CFSS service delivery plan and documented in
318.27the participant's file.
318.28(c) Services covered under worker training and development shall include:
318.29(1) support worker training on the participant's individual assessed needs, condition,
318.30or both, provided individually or in a group setting by a skilled and knowledgeable trainer
318.31beyond any training the participant or participant's representative provides;
318.32(2) tuition for professional classes and workshops for the participant's support
318.33workers that relate to the participant's assessed needs, condition, or both;
319.1(3) direct observation, monitoring, coaching, and documentation of support worker
319.2job skills and tasks, beyond any training the participant or participant's representative
319.3provides, including supervision of health-related tasks or behavioral supports that is
319.4conducted by an appropriate professional based on the participant's assessed needs. These
319.5services must be provided within 14 days of the start of services or the start of a new
319.6support worker and must be specified in the participant's service delivery plan; and
319.7(4) reporting service and support concerns to the appropriate provider.
319.8(d) Worker training and development services shall not include:
319.9(1) general agency training, worker orientation, or training on CFSS self-directed
319.10models;
319.11(2) payment for preparation or development time for the trainer or presenter;
319.12(3) payment of the support worker's salary or compensation during the training;
319.13(4) training or supervision provided by the participant, the participant's support
319.14worker, or the participant's informal supports, including the participant's representative; or
319.15(5) services in excess of 96 units per annual service authorization, unless approved
319.16by the department.

319.17    Sec. 22. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 23,
319.18is amended to read:
319.19    Subd. 23. Commissioner's access. When the commissioner is investigating a
319.20possible overpayment of Medicaid funds, the commissioner must be given immediate
319.21access without prior notice to the agency provider agency-provider or FMS contractor's
319.22office during regular business hours and to documentation and records related to services
319.23provided and submission of claims for services provided. Denying the commissioner
319.24access to records is cause for immediate suspension of payment and terminating the agency
319.25provider's enrollment according to section 256B.064 or terminating the FMS contract.

319.26    Sec. 23. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 24,
319.27is amended to read:
319.28    Subd. 24. CFSS agency-providers; background studies. CFSS agency-providers
319.29enrolled to provide personal care assistance CFSS services under the medical assistance
319.30program shall comply with the following:
319.31(1) owners who have a five percent interest or more and all managing employees
319.32are subject to a background study as provided in chapter 245C. This applies to currently
319.33enrolled CFSS agency-providers and those agencies seeking enrollment as a CFSS
320.1agency-provider. "Managing employee" has the same meaning as Code of Federal
320.2Regulations, title 42, section 455. An organization is barred from enrollment if:
320.3(i) the organization has not initiated background studies on owners managing
320.4employees; or
320.5(ii) the organization has initiated background studies on owners and managing
320.6employees, but the commissioner has sent the organization a notice that an owner or
320.7managing employee of the organization has been disqualified under section 245C.14, and
320.8the owner or managing employee has not received a set-aside of the disqualification
320.9under section 245C.22;
320.10(2) a background study must be initiated and completed for all support specialists
320.11 staff who will have direct contact with the participant to provide worker training and
320.12development; and
320.13(3) a background study must be initiated and completed for all support workers.

320.14    Sec. 24. Laws 2013, chapter 108, article 7, section 49, the effective date, is amended to
320.15read:
320.16EFFECTIVE DATE.This section is effective upon federal approval but no earlier
320.17than April 1, 2014. The service will begin 90 days after federal approval or April 1,
320.182014, whichever is later. The commissioner of human services shall notify the revisor of
320.19statutes when this occurs.


320.22    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
320.23    Subd. 4. Licensing data. (a) As used in this subdivision:
320.24    (1) "licensing data" are all data collected, maintained, used, or disseminated by the
320.25welfare system pertaining to persons licensed or registered or who apply for licensure
320.26or registration or who formerly were licensed or registered under the authority of the
320.27commissioner of human services;
320.28    (2) "client" means a person who is receiving services from a licensee or from an
320.29applicant for licensure; and
320.30    (3) "personal and personal financial data" are Social Security numbers, identity
320.31of and letters of reference, insurance information, reports from the Bureau of Criminal
320.32Apprehension, health examination reports, and social/home studies.
321.1    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants,
321.2license holders, and former licensees are public: name, address, telephone number of
321.3licensees, date of receipt of a completed application, dates of licensure, licensed capacity,
321.4type of client preferred, variances granted, record of training and education in child care
321.5and child development, type of dwelling, name and relationship of other family members,
321.6previous license history, class of license, the existence and status of complaints, and the
321.7number of serious injuries to or deaths of individuals in the licensed program as reported
321.8to the commissioner of human services, the local social services agency, or any other
321.9county welfare agency. For purposes of this clause, a serious injury is one that is treated
321.10by a physician.
321.11(ii) When a correction order, an order to forfeit a fine, an order of license suspension,
321.12an order of temporary immediate suspension, an order of license revocation, an order
321.13of license denial, or an order of conditional license has been issued, or a complaint is
321.14resolved, the following data on current and former licensees and applicants are public: the
321.15substance and investigative findings of the licensing or maltreatment complaint, licensing
321.16violation, or substantiated maltreatment; the record of informal resolution of a licensing
321.17violation; orders of hearing; findings of fact; conclusions of law; specifications of the final
321.18correction order, fine, suspension, temporary immediate suspension, revocation, denial, or
321.19conditional license contained in the record of licensing action; whether a fine has been
321.20paid; and the status of any appeal of these actions.
321.21(iii) When a license denial under section 245A.05 or a sanction under section
321.22245A.07 is based on a determination that the license holder or applicant is responsible for
321.23maltreatment under section 626.556 or 626.557, the identity of the applicant or license
321.24holder as the individual responsible for maltreatment is public data at the time of the
321.25issuance of the license denial or sanction.
321.26(iv) When a license denial under section 245A.05 or a sanction under section
321.27245A.07 is based on a determination that the license holder or applicant is disqualified
321.28under chapter 245C, the identity of the license holder or applicant as the disqualified
321.29individual and the reason for the disqualification are public data at the time of the
321.30issuance of the licensing sanction or denial. If the applicant or license holder requests
321.31reconsideration of the disqualification and the disqualification is affirmed, the reason for
321.32the disqualification and the reason to not set aside the disqualification are public data.
321.33    (2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b,
321.34when any person subject to disqualification under section 245C.14 in connection with a
321.35license to provide family day care for children, child care center services, foster care for
321.36children in the provider's home, or foster care or day care services for adults in the provider's
322.1home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is
322.2a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment
322.3is public data. For purposes of this clause, a person is a substantiated perpetrator if the
322.4maltreatment determination has been upheld under section 256.045; 626.556, subdivision
322.510i ; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely
322.6exercised appeal rights under these sections, except as provided under clause (1).
322.7    (3) For applicants who withdraw their application prior to licensure or denial of a
322.8license, the following data are public: the name of the applicant, the city and county in
322.9which the applicant was seeking licensure, the dates of the commissioner's receipt of the
322.10initial application and completed application, the type of license sought, and the date
322.11of withdrawal of the application.
322.12    (4) For applicants who are denied a license, the following data are public: the name
322.13and address of the applicant, the city and county in which the applicant was seeking
322.14licensure, the dates of the commissioner's receipt of the initial application and completed
322.15application, the type of license sought, the date of denial of the application, the nature of
322.16the basis for the denial, the record of informal resolution of a denial, orders of hearings,
322.17findings of fact, conclusions of law, specifications of the final order of denial, and the
322.18status of any appeal of the denial.
322.19    (5) The following data on persons subject to disqualification under section 245C.14 in
322.20connection with a license to provide family day care for children, child care center services,
322.21foster care for children in the provider's home, or foster care or day care services for adults
322.22in the provider's home, are public: the nature of any disqualification set aside under section
322.23245C.22 , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the
322.24nature of any disqualification for which a variance was granted under sections 245A.04,
322.25subdivision 9 ; and 245C.30, and the reasons for granting any variance under section
322.26245A.04, subdivision 9 ; and, if applicable, the disclosure that any person subject to
322.27a background study under section 245C.03, subdivision 1, has successfully passed a
322.28background study. If a licensing sanction under section 245A.07, or a license denial under
322.29section 245A.05, is based on a determination that an individual subject to disqualification
322.30under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction
322.31or denial is public data. As specified in clause (1), item (iv), if the disqualified individual
322.32is the license holder or applicant, the identity of the license holder or applicant and the
322.33reason for the disqualification are public data; and, if the license holder or applicant
322.34requested reconsideration of the disqualification and the disqualification is affirmed, the
322.35reason for the disqualification and the reason to not set aside the disqualification are
323.1public data. If the disqualified individual is an individual other than the license holder or
323.2applicant, the identity of the disqualified individual shall remain private data.
323.3    (6) When maltreatment is substantiated under section 626.556 or 626.557 and the
323.4victim and the substantiated perpetrator are affiliated with a program licensed under
323.5chapter 245A, the commissioner of human services, local social services agency, or
323.6county welfare agency may inform the license holder where the maltreatment occurred of
323.7the identity of the substantiated perpetrator and the victim.
323.8    (7) Notwithstanding clause (1), for child foster care, only the name of the license
323.9holder and the status of the license are public if the county attorney has requested that data
323.10otherwise classified as public data under clause (1) be considered private data based on the
323.11best interests of a child in placement in a licensed program.
323.12    (c) The following are private data on individuals under section 13.02, subdivision
323.1312 , or nonpublic data under section 13.02, subdivision 9: personal and personal financial
323.14data on family day care program and family foster care program applicants and licensees
323.15and their family members who provide services under the license.
323.16    (d) The following are private data on individuals: the identity of persons who have
323.17made reports concerning licensees or applicants that appear in inactive investigative data,
323.18and the records of clients or employees of the licensee or applicant for licensure whose
323.19records are received by the licensing agency for purposes of review or in anticipation of a
323.20contested matter. The names of reporters of complaints or alleged violations of licensing
323.21standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged
323.22maltreatment under sections 626.556 and 626.557, are confidential data and may be
323.23disclosed only as provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
323.24    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under
323.25this subdivision become public data if submitted to a court or administrative law judge as
323.26part of a disciplinary proceeding in which there is a public hearing concerning a license
323.27which has been suspended, immediately suspended, revoked, or denied.
323.28    (f) Data generated in the course of licensing investigations that relate to an alleged
323.29violation of law are investigative data under subdivision 3.
323.30    (g) Data that are not public data collected, maintained, used, or disseminated under
323.31this subdivision that relate to or are derived from a report as defined in section 626.556,
323.32subdivision 2 , or 626.5572, subdivision 18, are subject to the destruction provisions of
323.33sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
323.34    (h) Upon request, not public data collected, maintained, used, or disseminated under
323.35this subdivision that relate to or are derived from a report of substantiated maltreatment as
323.36defined in section 626.556 or 626.557 may be exchanged with the Department of Health
324.1for purposes of completing background studies pursuant to section 144.057 and with
324.2the Department of Corrections for purposes of completing background studies pursuant
324.3to section 241.021.
324.4    (i) Data on individuals collected according to licensing activities under chapters
324.5245A and 245C, data on individuals collected by the commissioner of human services
324.6according to investigations under chapters 245A, 245B, and 245C, and 245D, and
324.7sections 626.556 and 626.557 may be shared with the Department of Human Rights, the
324.8Department of Health, the Department of Corrections, the ombudsman for mental health
324.9and developmental disabilities, and the individual's professional regulatory board when
324.10there is reason to believe that laws or standards under the jurisdiction of those agencies may
324.11have been violated or the information may otherwise be relevant to the board's regulatory
324.12jurisdiction. Background study data on an individual who is the subject of a background
324.13study under chapter 245C for a licensed service for which the commissioner of human
324.14services is the license holder may be shared with the commissioner and the commissioner's
324.15delegate by the licensing division. Unless otherwise specified in this chapter, the identity
324.16of a reporter of alleged maltreatment or licensing violations may not be disclosed.
324.17    (j) In addition to the notice of determinations required under section 626.556,
324.18subdivision 10f , if the commissioner or the local social services agency has determined
324.19that an individual is a substantiated perpetrator of maltreatment of a child based on sexual
324.20abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social
324.21services agency knows that the individual is a person responsible for a child's care in
324.22another facility, the commissioner or local social services agency shall notify the head
324.23of that facility of this determination. The notification must include an explanation of the
324.24individual's available appeal rights and the status of any appeal. If a notice is given under
324.25this paragraph, the government entity making the notification shall provide a copy of the
324.26notice to the individual who is the subject of the notice.
324.27    (k) All not public data collected, maintained, used, or disseminated under this
324.28subdivision and subdivision 3 may be exchanged between the Department of Human
324.29Services, Licensing Division, and the Department of Corrections for purposes of
324.30regulating services for which the Department of Human Services and the Department
324.31of Corrections have regulatory authority.

324.32    Sec. 2. Minnesota Statutes 2012, section 144.0724, as amended by Laws 2014, chapter
324.33147, section 1, is amended to read:
324.34144.0724 RESIDENT REIMBURSEMENT CLASSIFICATION.
325.1    Subdivision 1. Resident reimbursement case mix classifications. The
325.2commissioner of health shall establish resident reimbursement classifications based upon
325.3the assessments of residents of nursing homes and boarding care homes conducted under
325.4this section and according to section 256B.438.
325.5    Subd. 2. Definitions. For purposes of this section, the following terms have the
325.6meanings given.
325.7(a) "Assessment reference date" or "ARD" means the specific end point for
325.8look-back periods in the MDS assessment process. This look-back period is also called
325.9the observation or assessment period.
325.10(b) "Case mix index" means the weighting factors assigned to the RUG-IV
325.11classifications.
325.12(c) "Index maximization" means classifying a resident who could be assigned to
325.13more than one category, to the category with the highest case mix index.
325.14(d) "Minimum data set" or "MDS" means a core set of screening, clinical assessment,
325.15and functional status elements, that include common definitions and coding categories
325.16specified by the Centers for Medicare and Medicaid Services and designated by the
325.17Minnesota Department of Health.
325.18(e) "Representative" means a person who is the resident's guardian or conservator,
325.19the person authorized to pay the nursing home expenses of the resident, a representative of
325.20the Office of Ombudsman for Long-Term Care whose assistance has been requested, or
325.21any other individual designated by the resident.
325.22(f) "Resource utilization groups" or "RUG" means the system for grouping a nursing
325.23facility's residents according to their clinical and functional status identified in data
325.24supplied by the facility's minimum data set.
325.25(g) "Activities of daily living" means grooming, dressing, bathing, transferring,
325.26mobility, positioning, eating, and toileting.
325.27(h) "Nursing facility level of care determination" means the assessment process
325.28that results in a determination of a resident's or prospective resident's need for nursing
325.29facility level of care as established in subdivision 11 for purposes of medical assistance
325.30payment of long-term care services for:
325.31(1) nursing facility services under section 256B.434 or 256B.441;
325.32(2) elderly waiver services under section 256B.0915;
325.33(3) CADI and BI waiver services under section 256B.49; and
325.34(4) state payment of alternative care services under section 256B.0913.
325.35    Subd. 3a. Resident reimbursement classifications beginning January 1, 2012.
325.36(a) Beginning January 1, 2012, resident reimbursement classifications shall be based
326.1on the minimum data set, version 3.0 assessment instrument, or its successor version
326.2mandated by the Centers for Medicare and Medicaid Services that nursing facilities are
326.3required to complete for all residents. The commissioner of health shall establish resident
326.4classifications according to the RUG-IV, 48 group, resource utilization groups. Resident
326.5classification must be established based on the individual items on the minimum data set,
326.6which must be completed according to the Long Term Care Facility Resident Assessment
326.7Instrument User's Manual Version 3.0 or its successor issued by the Centers for Medicare
326.8and Medicaid Services.
326.9(b) Each resident must be classified based on the information from the minimum
326.10data set according to general categories as defined in the Case Mix Classification Manual
326.11for Nursing Facilities issued by the Minnesota Department of Health.
326.12    Subd. 4. Resident assessment schedule. (a) A facility must conduct and
326.13electronically submit to the commissioner of health MDS assessments that conform with
326.14the assessment schedule defined by Code of Federal Regulations, title 42, section 483.20,
326.15and published by the United States Department of Health and Human Services, Centers for
326.16Medicare and Medicaid Services, in the Long Term Care Assessment Instrument User's
326.17Manual, version 3.0, and subsequent updates when issued by the Centers for Medicare
326.18and Medicaid Services. The commissioner of health may substitute successor manuals or
326.19question and answer documents published by the United States Department of Health and
326.20Human Services, Centers for Medicare and Medicaid Services, to replace or supplement
326.21the current version of the manual or document.
326.22(b) The assessments used to determine a case mix classification for reimbursement
326.23include the following:
326.24(1) a new admission assessment;
326.25(2) an annual assessment which must have an assessment reference date (ARD)
326.26within 92 days of the previous assessment and within 366 days of the ARD of the previous
326.27comprehensive assessment;
326.28(3) a significant change in status assessment must be completed within 14 days of
326.29the identification of a significant change;
326.30(4) all quarterly assessments must have an assessment reference date (ARD) within
326.3192 days of the ARD of the previous assessment;
326.32(5) any significant correction to a prior comprehensive assessment, if the assessment
326.33being corrected is the current one being used for RUG classification; and
326.34(6) any significant correction to a prior quarterly assessment, if the assessment being
326.35corrected is the current one being used for RUG classification.
327.1(c) In addition to the assessments listed in paragraph (b), the assessments used to
327.2determine nursing facility level of care include the following:
327.3(1) preadmission screening completed under section 256B.0911, subdivision 4a,
327.4by a county, tribe, or managed care organization under contract with the Department
327.5of Human Services; and
327.6(2) a face-to-face long-term care consultation assessment completed under section
327.7256B.0911, subdivision 3a , 3b, or 4d, by a county, tribe, or managed care organization
327.8under contract with the Department of Human Services.
327.9    Subd. 5. Short stays. (a) A facility must submit to the commissioner of health an
327.10admission assessment for all residents who stay in the facility 14 days or less.
327.11(b) Notwithstanding the admission assessment requirements of paragraph (a), a
327.12facility may elect to accept a short stay rate with a case mix index of 1.0 for all facility
327.13residents who stay 14 days or less in lieu of submitting an admission assessment. Facilities
327.14shall make this election annually.
327.15(c) Nursing facilities must elect one of the options described in paragraphs (a) and
327.16(b) by reporting to the commissioner of health, as prescribed by the commissioner. The
327.17election is effective on July 1 each year.
327.18    Subd. 6. Penalties for late or nonsubmission. (a) A facility that fails to complete
327.19or submit an assessment according to subdivisions 4 and 5 for a RUG-IV classification
327.20within seven days of the time requirements listed in the Long-Term Care Facility Resident
327.21Assessment Instrument User's Manual is subject to a reduced rate for that resident. The
327.22reduced rate shall be the lowest rate for that facility. The reduced rate is effective on the
327.23day of admission for new admission assessments, on the ARD for significant change in
327.24status assessments, or on the day that the assessment was due for all other assessments and
327.25continues in effect until the first day of the month following the date of submission and
327.26acceptance of the resident's assessment.
327.27    (b) If loss of revenue due to penalties incurred by a facility for any period of 92 days
327.28are equal to or greater than 1.0 percent of the total operating costs on the facility's most
327.29recent annual statistical and cost report, a facility may apply to the commissioner of
327.30human services for a reduction in the total penalty amount. The commissioner of human
327.31services, in consultation with the commissioner of health, may, at the sole discretion of
327.32the commissioner of human services, limit the penalty for residents covered by medical
327.33assistance to 15 days.
327.34    Subd. 7. Notice of resident reimbursement classification. (a) The commissioner
327.35of health shall provide to a nursing facility a notice for each resident of the reimbursement
327.36classification established under subdivision 1. The notice must inform the resident of the
328.1classification that was assigned, the opportunity to review the documentation supporting
328.2the classification, the opportunity to obtain clarification from the commissioner, and the
328.3opportunity to request a reconsideration of the classification and the address and telephone
328.4number of the Office of Ombudsman for Long-Term Care. The commissioner must
328.5transmit the notice of resident classification by electronic means to the nursing facility.
328.6A nursing facility is responsible for the distribution of the notice to each resident, to the
328.7person responsible for the payment of the resident's nursing home expenses, or to another
328.8person designated by the resident. This notice must be distributed within three working
328.9days after the facility's receipt of the electronic file of notice of case mix classifications
328.10from the commissioner of health.
328.11    (b) If a facility submits a modification to the most recent assessment used to establish
328.12a case mix classification conducted under subdivision 3 that results in a change in case
328.13mix classification, the facility shall give written notice to the resident or the resident's
328.14representative about the item that was modified and the reason for the modification. The
328.15notice of modified assessment may be provided at the same time that the resident or
328.16resident's representative is provided the resident's modified notice of classification.
328.17    Subd. 8. Request for reconsideration of resident classifications. (a) The resident,
328.18or resident's representative, or the nursing facility or boarding care home may request that
328.19the commissioner of health reconsider the assigned reimbursement classification. The
328.20request for reconsideration must be submitted in writing to the commissioner within
328.2130 days of the day the resident or the resident's representative receives the resident
328.22classification notice. The request for reconsideration must include the name of the
328.23resident, the name and address of the facility in which the resident resides, the reasons
328.24for the reconsideration, and documentation supporting the request. The documentation
328.25accompanying the reconsideration request is limited to a copy of the MDS that determined
328.26the classification and other documents that would support or change the MDS findings.
328.27(b) Upon request, the nursing facility must give the resident or the resident's
328.28representative a copy of the assessment form and the other documentation that was given
328.29to the commissioner of health to support the assessment findings. The nursing facility
328.30shall also provide access to and a copy of other information from the resident's record that
328.31has been requested by or on behalf of the resident to support a resident's reconsideration
328.32request. A copy of any requested material must be provided within three working days of
328.33receipt of a written request for the information. Notwithstanding any law to the contrary,
328.34the facility may not charge a fee for providing copies of the requested documentation.
328.35If a facility fails to provide the material within this time, it is subject to the issuance
328.36of a correction order and penalty assessment under sections 144.653 and 144A.10.
329.1Notwithstanding those sections, any correction order issued under this subdivision must
329.2require that the nursing facility immediately comply with the request for information and
329.3that as of the date of the issuance of the correction order, the facility shall forfeit to the
329.4state a $100 fine for the first day of noncompliance, and an increase in the $100 fine by
329.5$50 increments for each day the noncompliance continues.
329.6(c) In addition to the information required under paragraphs (a) and (b), a
329.7reconsideration request from a nursing facility must contain the following information: (i)
329.8the date the reimbursement classification notices were received by the facility; (ii) the date
329.9the classification notices were distributed to the resident or the resident's representative;
329.10and (iii) a copy of a notice sent to the resident or to the resident's representative. This
329.11notice must inform the resident or the resident's representative that a reconsideration
329.12of the resident's classification is being requested, the reason for the request, that the
329.13resident's rate will change if the request is approved by the commissioner, the extent of the
329.14change, that copies of the facility's request and supporting documentation are available
329.15for review, and that the resident also has the right to request a reconsideration. If the
329.16facility fails to provide the required information listed in item (iii) with the reconsideration
329.17request, the commissioner may request that the facility provide the information within 14
329.18calendar days. The reconsideration request must be denied if the information is then not
329.19provided, and the facility may not make further reconsideration requests on that specific
329.20reimbursement classification.
329.21(d) Reconsideration by the commissioner must be made by individuals not
329.22involved in reviewing the assessment, audit, or reconsideration that established the
329.23disputed classification. The reconsideration must be based upon the assessment that
329.24determined the classification and upon the information provided to the commissioner
329.25under paragraphs (a) and (b). If necessary for evaluating the reconsideration request, the
329.26commissioner may conduct on-site reviews. Within 15 working days of receiving the
329.27request for reconsideration, the commissioner shall affirm or modify the original resident
329.28classification. The original classification must be modified if the commissioner determines
329.29that the assessment resulting in the classification did not accurately reflect characteristics
329.30of the resident at the time of the assessment. The resident and the nursing facility or
329.31boarding care home shall be notified within five working days after the decision is made.
329.32A decision by the commissioner under this subdivision is the final administrative decision
329.33of the agency for the party requesting reconsideration.
329.34(e) The resident classification established by the commissioner shall be the
329.35classification that applies to the resident while the request for reconsideration is pending.
329.36If a request for reconsideration applies to an assessment used to determine nursing facility
330.1level of care under subdivision 4, paragraph (c), the resident shall continue to be eligible
330.2for nursing facility level of care while the request for reconsideration is pending.
330.3(f) The commissioner may request additional documentation regarding a
330.4reconsideration necessary to make an accurate reconsideration determination.
330.5    Subd. 9. Audit authority. (a) The commissioner shall audit the accuracy of resident
330.6assessments performed under section 256B.438 through any of the following: desk
330.7audits; on-site review of residents and their records; and interviews with staff, residents,
330.8or residents' families. The commissioner shall reclassify a resident if the commissioner
330.9determines that the resident was incorrectly classified.
330.10(b) The commissioner is authorized to conduct on-site audits on an unannounced
330.11basis.
330.12(c) A facility must grant the commissioner access to examine the medical records
330.13relating to the resident assessments selected for audit under this subdivision. The
330.14commissioner may also observe and speak to facility staff and residents.
330.15(d) The commissioner shall consider documentation under the time frames for
330.16coding items on the minimum data set as set out in the Long-Term Care Facility Resident
330.17Assessment Instrument User's Manual published by the Centers for Medicare and
330.18Medicaid Services.
330.19(e) The commissioner shall develop an audit selection procedure that includes the
330.20following factors:
330.21(1) Each facility shall be audited annually. If a facility has two successive audits in
330.22which the percentage of change is five percent or less and the facility has not been the
330.23subject of a special audit in the past 36 months, the facility may be audited biannually.
330.24A stratified sample of 15 percent, with a minimum of ten assessments, of the most
330.25current assessments shall be selected for audit. If more than 20 percent of the RUG-IV
330.26classifications are changed as a result of the audit, the audit shall be expanded to a second
330.2715 percent sample, with a minimum of ten assessments. If the total change between
330.28the first and second samples is 35 percent or greater, the commissioner may expand the
330.29audit to all of the remaining assessments.
330.30(2) If a facility qualifies for an expanded audit, the commissioner may audit the
330.31facility again within six months. If a facility has two expanded audits within a 24-month
330.32period, that facility will be audited at least every six months for the next 18 months.
330.33(3) The commissioner may conduct special audits if the commissioner determines
330.34that circumstances exist that could alter or affect the validity of case mix classifications of
330.35residents. These circumstances include, but are not limited to, the following:
330.36(i) frequent changes in the administration or management of the facility;
331.1(ii) an unusually high percentage of residents in a specific case mix classification;
331.2(iii) a high frequency in the number of reconsideration requests received from
331.3a facility;
331.4(iv) frequent adjustments of case mix classifications as the result of reconsiderations
331.5or audits;
331.6(v) a criminal indictment alleging provider fraud;
331.7(vi) other similar factors that relate to a facility's ability to conduct accurate
331.8assessments;
331.9(vii) an atypical pattern of scoring minimum data set items;
331.10(viii) nonsubmission of assessments;
331.11(ix) late submission of assessments; or
331.12(x) a previous history of audit changes of 35 percent or greater.
331.13(f) Within 15 working days of completing the audit process, the commissioner shall
331.14make available electronically the results of the audit to the facility. If the results of the
331.15audit reflect a change in the resident's case mix classification, a case mix classification
331.16notice will be made available electronically to the facility, using the procedure in
331.17subdivision 7, paragraph (a). The notice must contain the resident's classification and a
331.18statement informing the resident, the resident's authorized representative, and the facility
331.19of their right to review the commissioner's documents supporting the classification and to
331.20request a reconsideration of the classification. This notice must also include the address
331.21and telephone number of the Office of Ombudsman for Long-Term Care.
331.22    Subd. 10. Transition. After implementation of this section, reconsiderations
331.23requested for classifications made under section 144.0722, subdivision 1, shall be
331.24determined under section 144.0722, subdivision 3.
331.25    Subd. 11. Nursing facility level of care. (a) For purposes of medical assistance
331.26payment of long-term care services, a recipient must be determined, using assessments
331.27defined in subdivision 4, to meet one of the following nursing facility level of care criteria:
331.28    (1) the person requires formal clinical monitoring at least once per day;
331.29    (2) the person needs the assistance of another person or constant supervision to begin
331.30and complete at least four of the following activities of living: bathing, bed mobility,
331.31dressing, eating, grooming, toileting, transferring, and walking;
331.32    (3) the person needs the assistance of another person or constant supervision to begin
331.33and complete toileting, transferring, or positioning and the assistance cannot be scheduled;
331.34    (4) the person has significant difficulty with memory, using information, daily
331.35decision making, or behavioral needs that require intervention;
331.36    (5) the person has had a qualifying nursing facility stay of at least 90 days;
332.1    (6) the person meets the nursing facility level of care criteria determined 90 days
332.2after admission or on the first quarterly assessment after admission, whichever is later; or
332.3    (7) the person is determined to be at risk for nursing facility admission or
332.4readmission through a face-to-face long-term care consultation assessment as specified
332.5in section 256B.0911, subdivision 3a, 3b, or 4d, by a county, tribe, or managed care
332.6organization under contract with the Department of Human Services. The person is
332.7considered at risk under this clause if the person currently lives alone or will live alone
332.8upon discharge or be homeless without the person's current housing type and also meets
332.9one of the following criteria:
332.10    (i) the person has experienced a fall resulting in a fracture;
332.11    (ii) the person has been determined to be at risk of maltreatment or neglect,
332.12including self-neglect; or
332.13    (iii) the person has a sensory impairment that substantially impacts functional ability
332.14and maintenance of a community residence.
332.15    (b) The assessment used to establish medical assistance payment for nursing facility
332.16services must be the most recent assessment performed under subdivision 4, paragraph
332.17(b), that occurred no more than 90 calendar days before the effective date of medical
332.18assistance eligibility for payment of long-term care services. In no case shall medical
332.19assistance payment for long-term care services occur prior to the date of the determination
332.20of nursing facility level of care.
332.21    (c) The assessment used to establish medical assistance payment for long-term care
332.22services provided under sections 256B.0915 and 256B.49 and alternative care payment
332.23for services provided under section 256B.0913 must be the most recent face-to-face
332.24assessment performed under section 256B.0911, subdivision 3a, 3b, or 4d, that occurred
332.25no more than 60 calendar days before the effective date of medical assistance eligibility
332.26for payment of long-term care services.
332.27    Subd. 12. Appeal of nursing facility level of care determination. (a) A resident or
332.28prospective resident whose level of care determination results in a denial of long-term care
332.29services can appeal the determination as outlined in section 256B.0911, subdivision 3a,
332.30paragraph (h), clause (9).
332.31    (b) The commissioner of human services shall ensure that notice of changes in
332.32eligibility due to a nursing facility level of care determination is provided to each affected
332.33recipient or the recipient's guardian at least 30 days before the effective date of the change.
332.34The notice shall include the following information:
332.35(1) how to obtain further information on the changes;
332.36(2) how to receive assistance in obtaining other services;
333.1(3) a list of community resources; and
333.2(4) appeal rights.
333.3A recipient who meets the criteria in section 256B.0922, subdivision 2, paragraph (a),
333.4clauses (1) and (2), may request continued services pending appeal within the time period
333.5allowed to request an appeal under section 256.045, subdivision 3, paragraph (h). This
333.6paragraph is in effect for appeals filed between January 1, 2015, and December 31, 2016.
333.7EFFECTIVE DATE.This section is effective January 1, 2015.

333.8    Sec. 3. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:
333.9245.8251 POSITIVE SUPPORT STRATEGIES AND EMERGENCY
333.10MANUAL RESTRAINT; LICENSED FACILITIES AND PROGRAMS.
333.11    Subdivision 1. Rules governing the use of positive support strategies and
333.12restricting or prohibiting restrictive interventions. The commissioner of human
333.13services shall, within 24 months of May 23, 2013 by August 31, 2015, adopt rules
333.14governing the use of positive support strategies, safety interventions, and emergency use
333.15of manual restraint, and restricting or prohibiting the use of restrictive interventions, in
333.16all facilities and services licensed under chapter 245D., and in all licensed facilities and
333.17licensed services serving persons with a developmental disability or related condition.
333.18For the purposes of this section, "developmental disability or related condition" has the
333.19meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.
333.20    Subd. 2. Data collection. (a) The commissioner shall, with stakeholder input,
333.21develop identify data collection elements specific to incidents of emergency use of
333.22manual restraint and positive support transition plans for persons receiving services from
333.23providers governed licensed facilities and licensed services under chapter 245D and in
333.24licensed facilities and licensed services serving persons with a developmental disability
333.25or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective
333.26January 1, 2014. Providers Licensed facilities and licensed services shall report the data in
333.27a format and at a frequency determined by the commissioner of human services. Providers
333.28shall submit the data to the commissioner and the Office of the Ombudsman for Mental
333.29Health and Developmental Disabilities.
333.30(b) Beginning July 1, 2013, providers licensed facilities and licensed services
333.31 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data
333.32regarding the use of all controlled procedures identified in Minnesota Rules, part
333.339525.2740, in a format and at a frequency determined by the commissioner. Providers
334.1shall submit the data to the commissioner and the Office of the Ombudsman for Mental
334.2Health and Developmental Disabilities.
334.3    Subd. 3. External program review committee. Rules adopted according to this
334.4section shall establish requirements for an external program review committee appointed
334.5by the commissioner to monitor implementation of the rules and make recommendations
334.6to the commissioner about any needed policy changes after adoption of the rules.
334.7    Subd. 4. Interim review panel. (a) The commissioner shall establish an interim
334.8review panel by August 15, 2014, for the purpose of reviewing requests for emergency
334.9use of procedures that have been part of an approved positive support transition plan
334.10when necessary to protect a person from imminent risk of serious injury as defined in
334.11section 245.91, subdivision 6, due to self-injurious behavior. The panel must make
334.12recommendations to the commissioner to approve or deny these requests based on criteria
334.13to be established by the interim review panel. The interim review panel shall operate until
334.14the external program review committee is established as required under subdivision 3.
334.15(b) Members of the interim review panel shall be selected based on their expertise
334.16and knowledge related to the use of positive support strategies as alternatives to the use
334.17of restrictive interventions. The commissioner shall seek input and recommendations in
334.18establishing the interim review panel. Members of the interim review panel shall include
334.19the following representatives:
334.20(1) an expert in positive supports;
334.21(2) a mental health professional, as defined in section 245.462;
334.22(3) a licensed health professional as defined in section 245D.02, subdivision 14; and
334.23(4) a representative of the Department of Health.

334.24    Sec. 4. Minnesota Statutes 2013 Supplement, section 245A.03, subdivision 7, is
334.25amended to read:
334.26    Subd. 7. Licensing moratorium. (a) The commissioner shall not issue an initial
334.27license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340,
334.28or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under
334.29this chapter for a physical location that will not be the primary residence of the license
334.30holder for the entire period of licensure. If a license is issued during this moratorium, and
334.31the license holder changes the license holder's primary residence away from the physical
334.32location of the foster care license, the commissioner shall revoke the license according
334.33to section 245A.07. The commissioner shall not issue an initial license for a community
334.34residential setting licensed under chapter 245D. Exceptions to the moratorium include:
334.35(1) foster care settings that are required to be registered under chapter 144D;
335.1(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or
335.2community residential setting licenses replacing adult foster care licenses in existence on
335.3December 31, 2013, and determined to be needed by the commissioner under paragraph (b);
335.4(3) new foster care licenses or community residential setting licenses determined to
335.5be needed by the commissioner under paragraph (b) for the closure of a nursing facility,
335.6ICF/DD, or regional treatment center; restructuring of state-operated services that limits
335.7the capacity of state-operated facilities; or allowing movement to the community for
335.8people who no longer require the level of care provided in state-operated facilities as
335.9provided under section 256B.092, subdivision 13, or 256B.49, subdivision 24;
335.10(4) new foster care licenses or community residential setting licenses determined
335.11to be needed by the commissioner under paragraph (b) for persons requiring hospital
335.12level care; or
335.13(5) new foster care licenses or community residential setting licenses determined to
335.14be needed by the commissioner for the transition of people from personal care assistance
335.15to the home and community-based services.
335.16(b) The commissioner shall determine the need for newly licensed foster care
335.17homes or community residential settings as defined under this subdivision. As part of the
335.18determination, the commissioner shall consider the availability of foster care capacity in
335.19the area in which the licensee seeks to operate, and the recommendation of the local
335.20county board. The determination by the commissioner must be final. A determination of
335.21need is not required for a change in ownership at the same address.
335.22(c) When an adult resident served by the program moves out of a foster home
335.23that is not the primary residence of the license holder according to section 256B.49,
335.24subdivision 15 , paragraph (f), or the adult community residential setting, the county
335.25shall immediately inform the Department of Human Services Licensing Division. The
335.26department shall decrease the statewide licensed capacity for adult foster care settings
335.27where the physical location is not the primary residence of the license holder, or for adult
335.28community residential settings, if the voluntary changes described in paragraph (e) are
335.29not sufficient to meet the savings required by reductions in licensed bed capacity under
335.30Laws 2011, First Special Session chapter 9, article 7, sections 1 and 40, paragraph (f),
335.31and maintain statewide long-term care residential services capacity within budgetary
335.32limits. Implementation of the statewide licensed capacity reduction shall begin on July
335.331, 2013. The commissioner shall delicense up to 128 beds by June 30, 2014, using the
335.34needs determination process. Prior to any involuntary reduction of licensed capacity, the
335.35commissioner shall consult with lead agencies and license holders to determine which
335.36adult foster care settings where the physical location is not the primary residence of the
336.1license holder, or community residential settings, are licensed for up to five beds but have
336.2operated at less than full capacity for 12 or more months as of March 1, 2014. The settings
336.3that meet these criteria shall be the first to be considered for any involuntary decrease
336.4in statewide licensed capacity, up to a maximum of 35 beds. If more than 35 beds are
336.5identified that meet these criteria, the commissioner shall prioritize the selection of those
336.6beds to be closed based on the length of time the beds have been vacant. The longer a bed
336.7has been vacant, the higher priority it must be given for closure. Under this paragraph,
336.8the commissioner has the authority to reduce unused licensed capacity of a current foster
336.9care program, or the community residential settings, to accomplish the consolidation or
336.10closure of settings. Under this paragraph, the commissioner has the authority to manage
336.11statewide capacity, including adjusting the capacity available to each county and adjusting
336.12statewide available capacity, to meet the statewide needs identified through the process in
336.13paragraph (e). A decreased licensed capacity according to this paragraph is not subject to
336.14appeal under this chapter.
336.15(d) Residential settings that would otherwise be subject to the decreased license
336.16capacity established in paragraph (c) shall be exempt under the following circumstances:
336.17(1) until August 1, 2013, the license holder's beds occupied by residents whose
336.18primary diagnosis is mental illness and the license holder is:
336.19(i) a provider of assertive community treatment (ACT) or adult rehabilitative mental
336.20health services (ARMHS) as defined in section 256B.0623;
336.21(ii) a mental health center certified under Minnesota Rules, parts 9520.0750 to
336.229520.0870;
336.23(iii) a mental health clinic certified under Minnesota Rules, parts 9520.0750 to
336.249520.0870; or
336.25(iv) a provider of intensive residential treatment services (IRTS) licensed under
336.26Minnesota Rules, parts 9520.0500 to 9520.0670; or
336.27(2) the license holder's beds occupied by residents whose primary diagnosis is
336.28mental illness and the license holder is certified under the requirements in subdivision 6a
336.29or section 245D.33.
336.30(e) A resource need determination process, managed at the state level, using the
336.31available reports required by section 144A.351, and other data and information shall
336.32be used to determine where the reduced capacity required under paragraph (c) will be
336.33implemented. The commissioner shall consult with the stakeholders described in section
336.34144A.351 , and employ a variety of methods to improve the state's capacity to meet
336.35long-term care service needs within budgetary limits, including seeking proposals from
336.36service providers or lead agencies to change service type, capacity, or location to improve
337.1services, increase the independence of residents, and better meet needs identified by the
337.2long-term care services reports and statewide data and information. By February 1, 2013,
337.3and August 1, 2014, and each following year, the commissioner shall provide information
337.4and data on the overall capacity of licensed long-term care services, actions taken under
337.5this subdivision to manage statewide long-term care services and supports resources, and
337.6any recommendations for change to the legislative committees with jurisdiction over
337.7health and human services budget.
337.8    (f) At the time of application and reapplication for licensure, the applicant and the
337.9license holder that are subject to the moratorium or an exclusion established in paragraph
337.10(a) are required to inform the commissioner whether the physical location where the foster
337.11care will be provided is or will be the primary residence of the license holder for the entire
337.12period of licensure. If the primary residence of the applicant or license holder changes, the
337.13applicant or license holder must notify the commissioner immediately. The commissioner
337.14shall print on the foster care license certificate whether or not the physical location is the
337.15primary residence of the license holder.
337.16    (g) License holders of foster care homes identified under paragraph (f) that are not
337.17the primary residence of the license holder and that also provide services in the foster care
337.18home that are covered by a federally approved home and community-based services
337.19waiver, as authorized under section 256B.0915, 256B.092, or 256B.49, must inform the
337.20human services licensing division that the license holder provides or intends to provide
337.21these waiver-funded services.

337.22    Sec. 5. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is
337.23amended to read:
337.24    Subd. 3. Implementation. (a) The commissioner shall implement the
337.25responsibilities of this chapter according to the timelines in paragraphs (b) and (c)
337.26only within the limits of available appropriations or other administrative cost recovery
337.27methodology.
337.28(b) The licensure of home and community-based services according to this section
337.29shall be implemented January 1, 2014. License applications shall be received and
337.30processed on a phased-in schedule as determined by the commissioner beginning July
337.311, 2013. Licenses will be issued thereafter upon the commissioner's determination that
337.32the application is complete according to section 245A.04.
337.33(c) Within the limits of available appropriations or other administrative cost recovery
337.34methodology, implementation of compliance monitoring must be phased in after January
337.351, 2014.
338.1(1) Applicants who do not currently hold a license issued under chapter 245B must
338.2receive an initial compliance monitoring visit after 12 months of the effective date of the
338.3initial license for the purpose of providing technical assistance on how to achieve and
338.4maintain compliance with the applicable law or rules governing the provision of home and
338.5community-based services under chapter 245D. If during the review the commissioner
338.6finds that the license holder has failed to achieve compliance with an applicable law or
338.7rule and this failure does not imminently endanger the health, safety, or rights of the
338.8persons served by the program, the commissioner may issue a licensing review report with
338.9recommendations for achieving and maintaining compliance.
338.10(2) Applicants who do currently hold a license issued under this chapter must receive
338.11a compliance monitoring visit after 24 months of the effective date of the initial license.
338.12(d) Nothing in this subdivision shall be construed to limit the commissioner's
338.13authority to suspend or revoke a license or issue a fine at any time under section 245A.07,
338.14or issue correction orders and make a license conditional for failure to comply with
338.15applicable laws or rules under section 245A.06, based on the nature, chronicity, or severity
338.16of the violation of law or rule and the effect of the violation on the health, safety, or
338.17rights of persons served by the program.
338.18(e) License holders governed under chapter 245D must ensure compliance with the
338.19following requirements within the stated timelines:
338.20(1) service initiation and service planning requirements must be met at the next
338.21annual meeting of the person's support team or by January 1, 2015, whichever is later,
338.22for the following:
338.23    (i) provision of a written notice that identifies the service recipient rights and an
338.24explanation of those rights as required under section 245D.04, subdivision 1;
338.25(ii) service planning for basic support services as required under section 245D.07,
338.26subdivision 2; and
338.27(iii) service planning for intensive support services under section 245D.071,
338.28subdivisions 3 and 4;
338.29(2) staff orientation to program requirements as required under section 245D.09,
338.30subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015.
338.31The license holder may otherwise provide documentation verifying these requirements
338.32were met before January 1, 2014;
338.33(3) development of policy and procedures as required under section 245D.11, must
338.34be completed no later than August 31, 2014;
338.35(4) written or electronic notice and copies of policies and procedures must be
338.36provided to all persons or their legal representatives and case managers as required under
339.1section 245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within
339.230 days of development of the required policies and procedures, whichever is earlier; and
339.3(5) all employees must be informed of the revisions and training must be provided on
339.4implementation of the revised policies and procedures as required under section 245D.10,
339.5subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of
339.6the required policies and procedures, whichever is earlier.

339.7    Sec. 6. Minnesota Statutes 2013 Supplement, section 245A.16, subdivision 1, is
339.8amended to read:
339.9    Subdivision 1. Delegation of authority to agencies. (a) County agencies and
339.10private agencies that have been designated or licensed by the commissioner to perform
339.11licensing functions and activities under section 245A.04 and background studies for family
339.12child care under chapter 245C; to recommend denial of applicants under section 245A.05;
339.13to issue correction orders, to issue variances, and recommend a conditional license under
339.14section 245A.06, or to recommend suspending or revoking a license or issuing a fine under
339.15section 245A.07, shall comply with rules and directives of the commissioner governing
339.16those functions and with this section. The following variances are excluded from the
339.17delegation of variance authority and may be issued only by the commissioner:
339.18    (1) dual licensure of family child care and child foster care, dual licensure of child
339.19and adult foster care, and adult foster care and family child care;
339.20    (2) adult foster care maximum capacity;
339.21    (3) adult foster care minimum age requirement;
339.22    (4) child foster care maximum age requirement;
339.23    (5) variances regarding disqualified individuals except that county agencies may
339.24issue variances under section 245C.30 regarding disqualified individuals when the county
339.25is responsible for conducting a consolidated reconsideration according to sections 245C.25
339.26and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination
339.27and a disqualification based on serious or recurring maltreatment;
339.28    (6) the required presence of a caregiver in the adult foster care residence during
339.29normal sleeping hours; and
339.30    (7) variances for community residential setting licenses under chapter 245D.
339.31Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency
339.32must not grant a license holder a variance to exceed the maximum allowable family child
339.33care license capacity of 14 children.
339.34    (b) County agencies must report information about disqualification reconsiderations
339.35under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances
340.1granted under paragraph (a), clause (5), to the commissioner at least monthly in a format
340.2prescribed by the commissioner.
340.3    (c) For family day care programs, the commissioner may authorize licensing reviews
340.4every two years after a licensee has had at least one annual review.
340.5    (d) For family adult day services programs, the commissioner may authorize
340.6licensing reviews every two years after a licensee has had at least one annual review.
340.7    (e) A license issued under this section may be issued for up to two years.
340.8(f) During implementation of chapter 245D, the commissioner shall consider:
340.9(1) the role of counties in quality assurance;
340.10(2) the duties of county licensing staff; and
340.11(3) the possible use of joint powers agreements, according to section 471.59, with
340.12counties through which some licensing duties under chapter 245D may be delegated by
340.13the commissioner to the counties.
340.14Any consideration related to this paragraph must meet all of the requirements of the
340.15corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.
340.16(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or
340.17successor provisions; and section 245D.061 or successor provisions, for family child
340.18foster care programs providing out-of-home respite, as identified in section 245D.03,
340.19subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority
340.20to county and private agencies.

340.21    Sec. 7. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 3, is
340.22amended to read:
340.23    Subd. 3. Case manager. "Case manager" means the individual designated
340.24to provide waiver case management services, care coordination, or long-term care
340.25consultation, as specified in sections 256B.0913, 256B.0915, 256B.092, and 256B.49,
340.26or successor provisions. For purposes of this chapter, "case manager" includes case
340.27management services as defined in Minnesota Rules, part 9520.0902, subpart 3.

340.28    Sec. 8. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 4b, is
340.29amended to read:
340.30    Subd. 4b. Coordinated service and support plan. "Coordinated service and
340.31support plan" has the meaning given in sections 256B.0913, subdivision 8; 256B.0915,
340.32subdivision 6; 256B.092, subdivision 1b; and 256B.49, subdivision 15, or successor
340.33provisions. For purposes of this chapter, "coordinated service and support plan" includes
341.1the individual program plan or individual treatment plan as defined in Minnesota Rules,
341.2part 9520.0510, subpart 12.

341.3    Sec. 9. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 8b, is
341.4amended to read:
341.5    Subd. 8b. Expanded support team. "Expanded support team" means the members
341.6of the support team defined in subdivision 46 34 and a licensed health or mental health
341.7professional or other licensed, certified, or qualified professionals or consultants working
341.8with the person and included in the team at the request of the person or the person's legal
341.9representative.

341.10    Sec. 10. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11,
341.11is amended to read:
341.12    Subd. 11. Incident. "Incident" means an occurrence which involves a person and
341.13requires the program to make a response that is not a part of the program's ordinary
341.14provision of services to that person, and includes:
341.15(1) serious injury of a person as determined by section 245.91, subdivision 6;
341.16(2) a person's death;
341.17(3) any medical emergency, unexpected serious illness, or significant unexpected
341.18change in an illness or medical condition of a person that requires the program to call
341.19911, physician treatment, or hospitalization;
341.20(4) any mental health crisis that requires the program to call 911 or, a mental
341.21health crisis intervention team, or a similar mental health response team or service when
341.22available and appropriate;
341.23(5) an act or situation involving a person that requires the program to call 911,
341.24law enforcement, or the fire department;
341.25(6) a person's unauthorized or unexplained absence from a program;
341.26(7) conduct by a person receiving services against another person receiving services
341.27that:
341.28(i) is so severe, pervasive, or objectively offensive that it substantially interferes with
341.29a person's opportunities to participate in or receive service or support;
341.30(ii) places the person in actual and reasonable fear of harm;
341.31(iii) places the person in actual and reasonable fear of damage to property of the
341.32person; or
341.33(iv) substantially disrupts the orderly operation of the program;
342.1(8) any sexual activity between persons receiving services involving force or
342.2coercion as defined under section 609.341, subdivisions 3 and 14;
342.3(9) any emergency use of manual restraint as identified in section 245D.061 or
342.4successor provisions; or
342.5(10) a report of alleged or suspected child or vulnerable adult maltreatment under
342.6section 626.556 or 626.557.

342.7    Sec. 11. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 15b,
342.8is amended to read:
342.9    Subd. 15b. Mechanical restraint. (a) Except for devices worn by the person that
342.10trigger electronic alarms to warn staff that a person is leaving a room or area, which
342.11do not, in and of themselves, restrict freedom of movement, or the use of adaptive aids
342.12or equipment or orthotic devices ordered by a health care professional used to treat or
342.13manage a medical condition, "Mechanical restraint" means the use of devices, materials,
342.14or equipment attached or adjacent to the person's body, or the use of practices that are
342.15intended to restrict freedom of movement or normal access to one's body or body parts,
342.16or limits a person's voluntary movement or holds a person immobile as an intervention
342.17precipitated by a person's behavior. The term applies to the use of mechanical restraint
342.18used to prevent injury with persons who engage in self-injurious behaviors, such as
342.19head-banging, gouging, or other actions resulting in tissue damage that have caused or
342.20could cause medical problems resulting from the self-injury.
342.21(b) Mechanical restraint does not include the following:
342.22(1) devices worn by the person that trigger electronic alarms to warn staff that a
342.23person is leaving a room or area, which do not, in and of themselves, restrict freedom of
342.24movement; or
342.25(2) the use of adaptive aids or equipment or orthotic devices ordered by a health care
342.26professional used to treat or manage a medical condition.

342.27    Sec. 12. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 29,
342.28is amended to read:
342.29    Subd. 29. Seclusion. "Seclusion" means the placement of a person alone in: (1)
342.30removing a person involuntarily to a room from which exit is prohibited by a staff person
342.31or a mechanism such as a lock, a device, or an object positioned to hold the door closed
342.32or otherwise prevent the person from leaving the room.; or (2) otherwise involuntarily
342.33removing or separating a person from an area, activity, situation, or social contact with
342.34others and blocking or preventing the person's return.

343.1    Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34,
343.2is amended to read:
343.3    Subd. 34. Support team. "Support team" means the service planning team
343.4identified in section 256B.49, subdivision 15, or; the interdisciplinary team identified in
343.5Minnesota Rules, part 9525.0004, subpart 14; or the case management team as defined in
343.6Minnesota Rules, part 9520.0902, subpart 6.

343.7    Sec. 14. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34a,
343.8is amended to read:
343.9    Subd. 34a. Time out. "Time out" means removing a person involuntarily from an
343.10ongoing activity to a room, either locked or unlocked, or otherwise separating a person
343.11from others in a way that prevents social contact and prevents the person from leaving the
343.12situation if the person chooses the involuntary removal of a person for a period of time to
343.13a designated area from which the person is not prevented from leaving. For the purpose of
343.14this chapter, "time out" does not mean voluntary removal or self-removal for the purpose
343.15of calming, prevention of escalation, or de-escalation of behavior for a period of up to 15
343.16minutes. "Time out" does not include a person voluntarily moving from an ongoing activity
343.17to an unlocked room or otherwise separating from a situation or social contact with others
343.18if the person chooses. For the purposes of this definition, "voluntarily" means without
343.19being forced, compelled, or coerced.; nor does it mean taking a brief "break" or "rest" from
343.20an activity for the purpose of providing the person an opportunity to regain self-control.

343.21    Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.02, is amended by adding
343.22a subdivision to read:
343.23    Subd. 35b. Unlicensed staff. "Unlicensed staff" means individuals not otherwise
343.24licensed or certified by a governmental health board or agency.

343.25    Sec. 16. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is
343.26amended to read:
343.27    Subdivision 1. Applicability. (a) The commissioner shall regulate the provision of
343.28home and community-based services to persons with disabilities and persons age 65 and
343.29older pursuant to this chapter. The licensing standards in this chapter govern the provision
343.30of basic support services and intensive support services.
343.31(b) Basic support services provide the level of assistance, supervision, and care that
343.32is necessary to ensure the health and safety of the person and do not include services that
344.1are specifically directed toward the training, treatment, habilitation, or rehabilitation of
344.2the person. Basic support services include:
344.3(1) in-home and out-of-home respite care services as defined in section 245A.02,
344.4subdivision 15, and under the brain injury, community alternative care, community
344.5alternatives for disabled individuals, developmental disability, and elderly waiver plans,
344.6excluding out-of-home respite care provided to children in a family child foster care home
344.7licensed under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care
344.8license holder complies with the requirements under section 245D.06, subdivisions 5, 6,
344.97, and 8, or successor provisions; and section 245D.061 or successor provisions, which
344.10must be stipulated in the statement of intended use required under Minnesota Rules,
344.11part 2960.3000, subpart 4;
344.12(2) adult companion services as defined under the brain injury, community
344.13alternatives for disabled individuals, and elderly waiver plans, excluding adult companion
344.14services provided under the Corporation for National and Community Services Senior
344.15Companion Program established under the Domestic Volunteer Service Act of 1973,
344.16Public Law 98-288;
344.17(3) personal support as defined under the developmental disability waiver plan;
344.18(4) 24-hour emergency assistance, personal emergency response as defined under the
344.19community alternatives for disabled individuals and developmental disability waiver plans;
344.20(5) night supervision services as defined under the brain injury waiver plan; and
344.21(6) homemaker services as defined under the community alternatives for disabled
344.22individuals, brain injury, community alternative care, developmental disability, and elderly
344.23waiver plans, excluding providers licensed by the Department of Health under chapter
344.24144A and those providers providing cleaning services only.
344.25(c) Intensive support services provide assistance, supervision, and care that is
344.26necessary to ensure the health and safety of the person and services specifically directed
344.27toward the training, habilitation, or rehabilitation of the person. Intensive support services
344.28include:
344.29(1) intervention services, including:
344.30(i) behavioral support services as defined under the brain injury and community
344.31alternatives for disabled individuals waiver plans;
344.32(ii) in-home or out-of-home crisis respite services as defined under the developmental
344.33disability waiver plan; and
344.34(iii) specialist services as defined under the current developmental disability waiver
344.35plan;
344.36(2) in-home support services, including:
345.1(i) in-home family support and supported living services as defined under the
345.2developmental disability waiver plan;
345.3(ii) independent living services training as defined under the brain injury and
345.4community alternatives for disabled individuals waiver plans; and
345.5(iii) semi-independent living services;
345.6(3) residential supports and services, including:
345.7(i) supported living services as defined under the developmental disability waiver
345.8plan provided in a family or corporate child foster care residence, a family adult foster
345.9care residence, a community residential setting, or a supervised living facility;
345.10(ii) foster care services as defined in the brain injury, community alternative care,
345.11and community alternatives for disabled individuals waiver plans provided in a family or
345.12corporate child foster care residence, a family adult foster care residence, or a community
345.13residential setting; and
345.14(iii) residential services provided to more than four persons with developmental
345.15disabilities in a supervised living facility that is certified by the Department of Health as
345.16an ICF/DD, including ICFs/DD;
345.17(4) day services, including:
345.18(i) structured day services as defined under the brain injury waiver plan;
345.19(ii) day training and habilitation services under sections 252.40 to 252.46, and as
345.20defined under the developmental disability waiver plan; and
345.21(iii) prevocational services as defined under the brain injury and community
345.22alternatives for disabled individuals waiver plans; and
345.23(5) supported employment as defined under the brain injury, developmental
345.24disability, and community alternatives for disabled individuals waiver plans.

345.25    Sec. 17. Minnesota Statutes 2013 Supplement, section 245D.03, is amended by adding
345.26a subdivision to read:
345.27    Subd. 1a. Effect. The home and community-based services standards establish
345.28health, safety, welfare, and rights protections for persons receiving services governed by
345.29this chapter. The standards recognize the diversity of persons receiving these services and
345.30require that these services are provided in a manner that meets each person's individual
345.31needs and ensures continuity in service planning, care, and coordination between the
345.32license holder and members of each person's support team or expanded support team.

345.33    Sec. 18. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is
345.34amended to read:
346.1    Subd. 2. Relationship to other standards governing home and community-based
346.2services. (a) A license holder governed by this chapter is also subject to the licensure
346.3requirements under chapter 245A.
346.4(b) A corporate or family child foster care site controlled by a license holder and
346.5providing services governed by this chapter is exempt from compliance with section
346.6245D.04. This exemption applies to foster care homes where at least one resident is
346.7receiving residential supports and services licensed according to this chapter. This chapter
346.8does not apply to corporate or family child foster care homes that do not provide services
346.9licensed under this chapter.
346.10(c) A family adult foster care site controlled by a license holder and providing
346.11services governed by this chapter is exempt from compliance with Minnesota Rules,
346.12parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These
346.13exemptions apply to family adult foster care homes where at least one resident is receiving
346.14residential supports and services licensed according to this chapter. This chapter does
346.15not apply to family adult foster care homes that do not provide services licensed under
346.16this chapter.
346.17(d) A license holder providing services licensed according to this chapter in a
346.18supervised living facility is exempt from compliance with sections section 245D.04;
346.19245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).
346.20(e) A license holder providing residential services to persons in an ICF/DD is exempt
346.21from compliance with sections 245D.04; 245D.05, subdivision 1b; 245D.06, subdivision
346.222 , clauses (4) and (5); 245D.071, subdivisions 4 and 5; 245D.081, subdivision 2; 245D.09,
346.23subdivision 7; 245D.095, subdivision 2; and 245D.11, subdivision 3.
346.24(f) A license holder providing homemaker services licensed according to this chapter
346.25and registered according to chapter 144A is exempt from compliance with section 245D.04.
346.26(g) Nothing in this chapter prohibits a license holder from concurrently serving
346.27persons without disabilities or people who are or are not age 65 and older, provided this
346.28chapter's standards are met as well as other relevant standards.
346.29(h) The documentation required under sections 245D.07 and 245D.071 must meet
346.30the individual program plan requirements identified in section 256B.092 or successor
346.31provisions.

346.32    Sec. 19. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 3, is
346.33amended to read:
346.34    Subd. 3. Variance. If the conditions in section 245A.04, subdivision 9, are met,
346.35the commissioner may grant a variance to any of the requirements in this chapter, except
347.1sections 245D.04; 245D.06, subdivision 4, paragraph (b), and subdivision 6, or successor
347.2provisions; and 245D.061, subdivision 3, or provisions governing data practices and
347.3information rights of persons.

347.4    Sec. 20. Minnesota Statutes 2013 Supplement, section 245D.04, subdivision 3, is
347.5amended to read:
347.6    Subd. 3. Protection-related rights. (a) A person's protection-related rights include
347.7the right to:
347.8(1) have personal, financial, service, health, and medical information kept private,
347.9and be advised of disclosure of this information by the license holder;
347.10(2) access records and recorded information about the person in accordance with
347.11applicable state and federal law, regulation, or rule;
347.12(3) be free from maltreatment;
347.13(4) be free from restraint, time out, or seclusion, restrictive intervention, or other
347.14prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions,
347.15 except for: (i) emergency use of manual restraint to protect the person from imminent
347.16danger to self or others according to the requirements in section 245D.06; 245D.061 or
347.17successor provisions; or (ii) the use of safety interventions as part of a positive support
347.18transition plan under section 245D.06, subdivision 8, or successor provisions;
347.19(5) receive services in a clean and safe environment when the license holder is the
347.20owner, lessor, or tenant of the service site;
347.21(6) be treated with courtesy and respect and receive respectful treatment of the
347.22person's property;
347.23(7) reasonable observance of cultural and ethnic practice and religion;
347.24(8) be free from bias and harassment regarding race, gender, age, disability,
347.25spirituality, and sexual orientation;
347.26(9) be informed of and use the license holder's grievance policy and procedures,
347.27including knowing how to contact persons responsible for addressing problems and to
347.28appeal under section 256.045;
347.29(10) know the name, telephone number, and the Web site, e-mail, and street
347.30addresses of protection and advocacy services, including the appropriate state-appointed
347.31ombudsman, and a brief description of how to file a complaint with these offices;
347.32(11) assert these rights personally, or have them asserted by the person's family,
347.33authorized representative, or legal representative, without retaliation;
347.34(12) give or withhold written informed consent to participate in any research or
347.35experimental treatment;
348.1(13) associate with other persons of the person's choice;
348.2(14) personal privacy; and
348.3(15) engage in chosen activities.
348.4(b) For a person residing in a residential site licensed according to chapter 245A,
348.5or where the license holder is the owner, lessor, or tenant of the residential service site,
348.6protection-related rights also include the right to:
348.7(1) have daily, private access to and use of a non-coin-operated telephone for local
348.8calls and long-distance calls made collect or paid for by the person;
348.9(2) receive and send, without interference, uncensored, unopened mail or electronic
348.10correspondence or communication;
348.11(3) have use of and free access to common areas in the residence; and
348.12(4) privacy for visits with the person's spouse, next of kin, legal counsel, religious
348.13advisor, or others, in accordance with section 363A.09 of the Human Rights Act, including
348.14privacy in the person's bedroom.
348.15(c) Restriction of a person's rights under subdivision 2, clause (10), or paragraph (a),
348.16clauses (13) to (15), or paragraph (b) is allowed only if determined necessary to ensure
348.17the health, safety, and well-being of the person. Any restriction of those rights must be
348.18documented in the person's coordinated service and support plan or coordinated service
348.19and support plan addendum. The restriction must be implemented in the least restrictive
348.20alternative manner necessary to protect the person and provide support to reduce or
348.21eliminate the need for the restriction in the most integrated setting and inclusive manner.
348.22The documentation must include the following information:
348.23(1) the justification for the restriction based on an assessment of the person's
348.24vulnerability related to exercising the right without restriction;
348.25(2) the objective measures set as conditions for ending the restriction;
348.26(3) a schedule for reviewing the need for the restriction based on the conditions
348.27for ending the restriction to occur semiannually from the date of initial approval, at a
348.28minimum, or more frequently if requested by the person, the person's legal representative,
348.29if any, and case manager; and
348.30(4) signed and dated approval for the restriction from the person, or the person's
348.31legal representative, if any. A restriction may be implemented only when the required
348.32approval has been obtained. Approval may be withdrawn at any time. If approval is
348.33withdrawn, the right must be immediately and fully restored.

348.34    Sec. 21. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1, is
348.35amended to read:
349.1    Subdivision 1. Health needs. (a) The license holder is responsible for meeting
349.2health service needs assigned in the coordinated service and support plan or the
349.3coordinated service and support plan addendum, consistent with the person's health needs.
349.4The license holder is responsible for promptly notifying the person's legal representative,
349.5if any, and the case manager of changes in a person's physical and mental health needs
349.6affecting health service needs assigned to the license holder in the coordinated service and
349.7support plan or the coordinated service and support plan addendum, when discovered by
349.8the license holder, unless the license holder has reason to know the change has already
349.9been reported. The license holder must document when the notice is provided.
349.10(b) If responsibility for meeting the person's health service needs has been assigned
349.11to the license holder in the coordinated service and support plan or the coordinated service
349.12and support plan addendum, the license holder must maintain documentation on how the
349.13person's health needs will be met, including a description of the procedures the license
349.14holder will follow in order to:
349.15(1) provide medication setup, assistance, or medication administration according
349.16to this chapter. Unlicensed staff responsible for medication setup or medication
349.17administration under this section must complete training according to section 245D.09,
349.18subdivision 4a, paragraph (d);
349.19(2) monitor health conditions according to written instructions from a licensed
349.20health professional;
349.21(3) assist with or coordinate medical, dental, and other health service appointments; or
349.22(4) use medical equipment, devices, or adaptive aides or technology safely and
349.23correctly according to written instructions from a licensed health professional.

349.24    Sec. 22. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1a,
349.25is amended to read:
349.26    Subd. 1a. Medication setup. (a) For the purposes of this subdivision, "medication
349.27setup" means the arranging of medications according to instructions from the pharmacy,
349.28the prescriber, or a licensed nurse, for later administration when the license holder
349.29is assigned responsibility for medication assistance or medication administration in
349.30the coordinated service and support plan or the coordinated service and support plan
349.31addendum. A prescription label or the prescriber's written or electronically recorded order
349.32for the prescription is sufficient to constitute written instructions from the prescriber.
349.33(b) If responsibility for medication setup is assigned to the license holder in
349.34the coordinated service and support plan or the coordinated service and support plan
349.35addendum, or if the license holder provides it as part of medication assistance or
350.1medication administration, the license holder must document in the person's medication
350.2administration record: dates of setup, name of medication, quantity of dose, times to be
350.3administered, and route of administration at time of setup; and, when the person will be
350.4away from home, to whom the medications were given.

350.5    Sec. 23. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1b,
350.6is amended to read:
350.7    Subd. 1b. Medication assistance. (a) For purposes of this subdivision, "medication
350.8assistance" means any of the following:
350.9(1) bringing to the person and opening a container of previously set up medications,
350.10emptying the container into the person's hand, or opening and giving the medications in
350.11the original container to the person under the direction of the person;
350.12(2) bringing to the person liquids or food to accompany the medication; or
350.13(3) providing reminders to take regularly scheduled medication or perform regularly
350.14scheduled treatments and exercises.
350.15(b) If responsibility for medication assistance is assigned to the license holder
350.16in the coordinated service and support plan or the coordinated service and support
350.17plan addendum, the license holder must ensure that the requirements of subdivision 2,
350.18paragraph (b), have been met when staff provides medication assistance to enable is
350.19provided in a manner that enables a person to self-administer medication or treatment
350.20when the person is capable of directing the person's own care, or when the person's legal
350.21representative is present and able to direct care for the person. For the purposes of this
350.22subdivision, "medication assistance" means any of the following:
350.23(1) bringing to the person and opening a container of previously set up medications,
350.24emptying the container into the person's hand, or opening and giving the medications in
350.25the original container to the person;
350.26(2) bringing to the person liquids or food to accompany the medication; or
350.27(3) providing reminders to take regularly scheduled medication or perform regularly
350.28scheduled treatments and exercises.

350.29    Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 2, is
350.30amended to read:
350.31    Subd. 2. Medication administration. (a) If responsibility for medication
350.32administration is assigned to the license holder in the coordinated service and support
350.33plan or the coordinated service and support plan addendum, the license holder must
350.34implement the following medication administration procedures to ensure a person takes
351.1medications and treatments as prescribed For purposes of this subdivision, "medication
351.2administration" means:
351.3(1) checking the person's medication record;
351.4(2) preparing the medication as necessary;
351.5(3) administering the medication or treatment to the person;
351.6(4) documenting the administration of the medication or treatment or the reason for
351.7not administering the medication or treatment; and
351.8(5) reporting to the prescriber or a nurse any concerns about the medication or
351.9treatment, including side effects, effectiveness, or a pattern of the person refusing to
351.10take the medication or treatment as prescribed. Adverse reactions must be immediately
351.11reported to the prescriber or a nurse.
351.12(b)(1) If responsibility for medication administration is assigned to the license holder
351.13in the coordinated service and support plan or the coordinated service and support plan
351.14addendum, the license holder must implement medication administration procedures
351.15to ensure a person takes medications and treatments as prescribed. The license holder
351.16must ensure that the requirements in clauses (2) to (4) and (3) have been met before
351.17administering medication or treatment.
351.18(2) The license holder must obtain written authorization from the person or the
351.19person's legal representative to administer medication or treatment and must obtain
351.20reauthorization annually as needed. This authorization shall remain in effect unless it is
351.21withdrawn in writing and may be withdrawn at any time. If the person or the person's
351.22legal representative refuses to authorize the license holder to administer medication, the
351.23medication must not be administered. The refusal to authorize medication administration
351.24must be reported to the prescriber as expediently as possible.
351.25(3) The staff person responsible for administering the medication or treatment must
351.26complete medication administration training according to section 245D.09, subdivision
351.27 4a, paragraphs (a) and (c), and, as applicable to the person, paragraph (d).
351.28(4) (3) For a license holder providing intensive support services, the medication or
351.29treatment must be administered according to the license holder's medication administration
351.30policy and procedures as required under section 245D.11, subdivision 2, clause (3).
351.31(c) The license holder must ensure the following information is documented in the
351.32person's medication administration record:
351.33(1) the information on the current prescription label or the prescriber's current
351.34written or electronically recorded order or prescription that includes the person's name,
351.35description of the medication or treatment to be provided, and the frequency and other
352.1information needed to safely and correctly administer the medication or treatment to
352.2ensure effectiveness;
352.3(2) information on any risks or other side effects that are reasonable to expect, and
352.4any contraindications to its use. This information must be readily available to all staff
352.5administering the medication;
352.6(3) the possible consequences if the medication or treatment is not taken or
352.7administered as directed;
352.8(4) instruction on when and to whom to report the following:
352.9(i) if a dose of medication is not administered or treatment is not performed as
352.10prescribed, whether by error by the staff or the person or by refusal by the person; and
352.11(ii) the occurrence of possible adverse reactions to the medication or treatment;
352.12(5) notation of any occurrence of a dose of medication not being administered or
352.13treatment not performed as prescribed, whether by error by the staff or the person or by
352.14refusal by the person, or of adverse reactions, and when and to whom the report was
352.15made; and
352.16(6) notation of when a medication or treatment is started, administered, changed, or
352.17discontinued.

352.18    Sec. 25. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 4, is
352.19amended to read:
352.20    Subd. 4. Reviewing and reporting medication and treatment issues. (a) When
352.21assigned responsibility for medication administration, the license holder must ensure
352.22that the information maintained in the medication administration record is current and
352.23is regularly reviewed to identify medication administration errors. At a minimum, the
352.24review must be conducted every three months, or more frequently as directed in the
352.25coordinated service and support plan or coordinated service and support plan addendum
352.26or as requested by the person or the person's legal representative. Based on the review,
352.27the license holder must develop and implement a plan to correct patterns of medication
352.28administration errors when identified.
352.29(b) If assigned responsibility for medication assistance or medication administration,
352.30the license holder must report the following to the person's legal representative and case
352.31manager as they occur or as otherwise directed in the coordinated service and support plan
352.32or the coordinated service and support plan addendum:
352.33(1) any reports made to the person's physician or prescriber required under
352.34subdivision 2, paragraph (c), clause (4);
353.1(2) a person's refusal or failure to take or receive medication or treatment as
353.2prescribed; or
353.3(3) concerns about a person's self-administration of medication or treatment.

353.4    Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 5, is
353.5amended to read:
353.6    Subd. 5. Injectable medications. Injectable medications may be administered
353.7according to a prescriber's order and written instructions when one of the following
353.8conditions has been met:
353.9(1) a registered nurse or licensed practical nurse will administer the subcutaneous or
353.10intramuscular injection;
353.11(2) a supervising registered nurse with a physician's order has delegated the
353.12administration of subcutaneous injectable medication to an unlicensed staff member
353.13and has provided the necessary training; or
353.14(3) there is an agreement signed by the license holder, the prescriber, and the
353.15person or the person's legal representative specifying what subcutaneous injections may
353.16be given, when, how, and that the prescriber must retain responsibility for the license
353.17holder's giving the injections. A copy of the agreement must be placed in the person's
353.18service recipient record.
353.19Only licensed health professionals are allowed to administer psychotropic
353.20medications by injection.

353.21    Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:
353.22245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.
353.23    Subdivision 1. Conditions for psychotropic medication administration. (a)
353.24When a person is prescribed a psychotropic medication and the license holder is assigned
353.25responsibility for administration of the medication in the person's coordinated service
353.26and support plan or the coordinated service and support plan addendum, the license
353.27holder must ensure that the requirements in paragraphs (b) to (d) and section 245D.05,
353.28subdivision 2, are met.
353.29(b) Use of the medication must be included in the person's coordinated service and
353.30support plan or in the coordinated service and support plan addendum and based on a
353.31prescriber's current written or electronically recorded prescription.
353.32(c) (b) The license holder must develop, implement, and maintain the following
353.33documentation in the person's coordinated service and support plan addendum according
353.34to the requirements in sections 245D.07 and 245D.071:
354.1(1) a description of the target symptoms that the psychotropic medication is to
354.2alleviate; and
354.3(2) documentation methods the license holder will use to monitor and measure
354.4changes in the target symptoms that are to be alleviated by the psychotropic medication if
354.5required by the prescriber. The license holder must collect and report on medication and
354.6symptom-related data as instructed by the prescriber. The license holder must provide
354.7the monitoring data to the expanded support team for review every three months, or as
354.8otherwise requested by the person or the person's legal representative.
354.9For the purposes of this section, "target symptom" refers to any perceptible
354.10diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic
354.11and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or
354.12successive editions, that has been identified for alleviation.
354.13    Subd. 2. Refusal to authorize psychotropic medication. If the person or the
354.14person's legal representative refuses to authorize the administration of a psychotropic
354.15medication as ordered by the prescriber, the license holder must follow the requirement in
354.16section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication.
354.17The refusal to authorize medication administration must be reported to the prescriber as
354.18expediently as possible. After reporting the refusal to the prescriber, the license holder
354.19must follow any directives or orders given by the prescriber. A court order must be
354.20obtained to override the refusal. A refusal may not be overridden without a court order.
354.21Refusal to authorize administration of a specific psychotropic medication is not grounds
354.22for service termination and does not constitute an emergency. A decision to terminate
354.23services must be reached in compliance with section 245D.10, subdivision 3.

354.24    Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 1, is
354.25amended to read:
354.26    Subdivision 1. Incident response and reporting. (a) The license holder must
354.27respond to incidents under section 245D.02, subdivision 11, that occur while providing
354.28services to protect the health and safety of and minimize risk of harm to the person.
354.29(b) The license holder must maintain information about and report incidents to the
354.30person's legal representative or designated emergency contact and case manager within
354.3124 hours of an incident occurring while services are being provided, within 24 hours of
354.32discovery or receipt of information that an incident occurred, unless the license holder
354.33has reason to know that the incident has already been reported, or as otherwise directed
354.34in a person's coordinated service and support plan or coordinated service and support
354.35plan addendum. An incident of suspected or alleged maltreatment must be reported as
355.1required under paragraph (d), and an incident of serious injury or death must be reported
355.2as required under paragraph (e).
355.3(c) When the incident involves more than one person, the license holder must not
355.4disclose personally identifiable information about any other person when making the report
355.5to each person and case manager unless the license holder has the consent of the person.
355.6(d) Within 24 hours of reporting maltreatment as required under section 626.556
355.7or 626.557, the license holder must inform the case manager of the report unless there is
355.8reason to believe that the case manager is involved in the suspected maltreatment. The
355.9license holder must disclose the nature of the activity or occurrence reported and the
355.10agency that received the report.
355.11(e) The license holder must report the death or serious injury of the person as
355.12required in paragraph (b) and to the Department of Human Services Licensing Division,
355.13and the Office of Ombudsman for Mental Health and Developmental Disabilities as
355.14required under section 245.94, subdivision 2a, within 24 hours of the death, or receipt of
355.15information that the death occurred, unless the license holder has reason to know that the
355.16death has already been reported.
355.17(f) When a death or serious injury occurs in a facility certified as an intermediate
355.18care facility for persons with developmental disabilities, the death or serious injury must
355.19be reported to the Department of Health, Office of Health Facility Complaints, and the
355.20Office of Ombudsman for Mental Health and Developmental Disabilities, as required
355.21under sections 245.91 and 245.94, subdivision 2a, unless the license holder has reason to
355.22know that the death has already been reported.
355.23(g) The license holder must conduct an internal review of incident reports of deaths
355.24and serious injuries that occurred while services were being provided and that were not
355.25reported by the program as alleged or suspected maltreatment, for identification of incident
355.26patterns, and implementation of corrective action as necessary to reduce occurrences.
355.27The review must include an evaluation of whether related policies and procedures were
355.28followed, whether the policies and procedures were adequate, whether there is a need for
355.29additional staff training, whether the reported event is similar to past events with the
355.30persons or the services involved, and whether there is a need for corrective action by the
355.31license holder to protect the health and safety of persons receiving services. Based on
355.32the results of this review, the license holder must develop, document, and implement a
355.33corrective action plan designed to correct current lapses and prevent future lapses in
355.34performance by staff or the license holder, if any.
355.35(h) The license holder must verbally report the emergency use of manual restraint
355.36of a person as required in paragraph (b) within 24 hours of the occurrence. The license
356.1holder must ensure the written report and internal review of all incident reports of the
356.2emergency use of manual restraints are completed according to the requirements in section
356.3245D.061 or successor provisions.

356.4    Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 2, is
356.5amended to read:
356.6    Subd. 2. Environment and safety. The license holder must:
356.7(1) ensure the following when the license holder is the owner, lessor, or tenant
356.8of the service site:
356.9(i) the service site is a safe and hazard-free environment;
356.10(ii) that toxic substances or dangerous items are inaccessible to persons served by
356.11the program only to protect the safety of a person receiving services when a known safety
356.12threat exists and not as a substitute for staff supervision or interactions with a person who
356.13is receiving services. If toxic substances or dangerous items are made inaccessible, the
356.14license holder must document an assessment of the physical plant, its environment, and its
356.15population identifying the risk factors which require toxic substances or dangerous items
356.16to be inaccessible and a statement of specific measures to be taken to minimize the safety
356.17risk to persons receiving services and to restore accessibility to all persons receiving
356.18services at the service site;
356.19(iii) doors are locked from the inside to prevent a person from exiting only when
356.20necessary to protect the safety of a person receiving services and not as a substitute for
356.21staff supervision or interactions with the person. If doors are locked from the inside, the
356.22license holder must document an assessment of the physical plant, the environment and
356.23the population served, identifying the risk factors which require the use of locked doors,
356.24and a statement of specific measures to be taken to minimize the safety risk to persons
356.25receiving services at the service site; and
356.26(iv) a staff person is available at the service site who is trained in basic first aid and,
356.27when required in a person's coordinated service and support plan or coordinated service
356.28and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are
356.29present and staff are required to be at the site to provide direct support service. The CPR
356.30training must include in-person instruction, hands-on practice, and an observed skills
356.31assessment under the direct supervision of a CPR instructor;
356.32(2) maintain equipment, vehicles, supplies, and materials owned or leased by the
356.33license holder in good condition when used to provide services;
357.1(3) follow procedures to ensure safe transportation, handling, and transfers of the
357.2person and any equipment used by the person, when the license holder is responsible for
357.3transportation of a person or a person's equipment;
357.4(4) be prepared for emergencies and follow emergency response procedures to
357.5ensure the person's safety in an emergency; and
357.6(5) follow universal precautions and sanitary practices, including hand washing, for
357.7infection prevention and control, and to prevent communicable diseases.

357.8    Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is
357.9amended to read:
357.10    Subd. 4. Funds and property; legal representative restrictions. (a) Whenever the
357.11license holder assists a person with the safekeeping of funds or other property according
357.12to section 245A.04, subdivision 13, the license holder must obtain written authorization
357.13to do so from the person or the person's legal representative and the case manager.
357.14Authorization must be obtained within five working days of service initiation and renewed
357.15annually thereafter. At the time initial authorization is obtained, the license holder must
357.16survey, document, and implement the preferences of the person or the person's legal
357.17representative and the case manager for frequency of receiving a statement that itemizes
357.18receipts and disbursements of funds or other property. The license holder must document
357.19changes to these preferences when they are requested.
357.20(b) A license holder or staff person may not accept powers-of-attorney from a person
357.21receiving services from the license holder for any purpose. This does not apply to license
357.22holders that are Minnesota counties or other units of government or to staff persons
357.23employed by license holders who were acting as attorney-in-fact for specific individuals
357.24prior to implementation of this chapter. The license holder must maintain documentation
357.25of the power-of-attorney in the service recipient record.
357.26(c) A license holder or staff person is restricted from accepting an appointment
357.27as a guardian as follows:
357.28(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency
357.29that provides residence, custodial care, medical care, employment training, or other care
357.30or services for which the individual or agency receives a fee may not be appointed as
357.31guardian unless related to the respondent by blood, marriage, or adoption; and
357.32(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related
357.33individual as defined under section 245A.02, subdivision 13, is excluded from licensure.
357.34Services provided by a license holder to a person under the license holder's guardianship
357.35are not licensed services.
358.1(c) (d) Upon the transfer or death of a person, any funds or other property of the
358.2person must be surrendered to the person or the person's legal representative, or given to
358.3the executor or administrator of the estate in exchange for an itemized receipt.

358.4    Sec. 31. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is
358.5amended to read:
358.6    Subd. 6. Restricted procedures. (a) The following procedures are allowed when
358.7the procedures are implemented in compliance with the standards governing their use as
358.8identified in clauses (1) to (3). Allowed but restricted procedures include:
358.9(1) permitted actions and procedures subject to the requirements in subdivision 7;
358.10(2) procedures identified in a positive support transition plan subject to the
358.11requirements in subdivision 8; or
358.12(3) emergency use of manual restraint subject to the requirements in section
358.13245D.061 .
358.14For purposes of this chapter, this section supersedes the requirements identified in
358.15Minnesota Rules, part 9525.2740.
358.16    (b) A restricted procedure identified in paragraph (a) must not:
358.17    (1) be implemented with a child in a manner that constitutes sexual abuse, neglect,
358.18physical abuse, or mental injury, as defined in section 626.556, subdivision 2;
358.19(2) be implemented with an adult in a manner that constitutes abuse or neglect as
358.20defined in section 626.5572, subdivision 2 or 17;
358.21(3) be implemented in a manner that violates a person's rights identified in section
358.22245D.04;
358.23(4) restrict a person's normal access to a nutritious diet, drinking water, adequate
358.24ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping
358.25conditions, necessary clothing, or any protection required by state licensing standards or
358.26federal regulations governing the program;
358.27(5) deny the person visitation or ordinary contact with legal counsel, a legal
358.28representative, or next of kin;
358.29(6) be used for the convenience of staff, as punishment, as a substitute for adequate
358.30staffing, or as a consequence if the person refuses to participate in the treatment or services
358.31provided by the program;
358.32(7) use prone restraint. For purposes of this section, "prone restraint" means use
358.33of manual restraint that places a person in a face-down position. Prone restraint does
358.34not include brief physical holding of a person who, during an emergency use of manual
359.1restraint, rolls into a prone position, if the person is restored to a standing, sitting, or
359.2side-lying position as quickly as possible;
359.3(8) apply back or chest pressure while a person is in a prone position as identified in
359.4clause (7), supine position, or side-lying position; or
359.5(9) be implemented in a manner that is contraindicated for any of the person's known
359.6medical or psychological limitations.

359.7    Sec. 32. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is
359.8amended to read:
359.9    Subd. 7. Permitted actions and procedures. (a) Use of the instructional techniques
359.10and intervention procedures as identified in paragraphs (b) and (c) is permitted when used
359.11on an intermittent or continuous basis. When used on a continuous basis, it must be
359.12addressed in a person's coordinated service and support plan addendum as identified in
359.13sections 245D.07 and 245D.071. For purposes of this chapter, the requirements of this
359.14subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.
359.15(b) Physical contact or instructional techniques must use the least restrictive
359.16alternative possible to meet the needs of the person and may be used:
359.17(1) to calm or comfort a person by holding that person with no resistance from
359.18that person;
359.19(2) to protect a person known to be at risk or of injury due to frequent falls as a result
359.20of a medical condition;
359.21(3) to facilitate the person's completion of a task or response when the person does
359.22not resist or the person's resistance is minimal in intensity and duration; or
359.23(4) to briefly block or redirect a person's limbs or body without holding the person or
359.24limiting the person's movement to interrupt the person's behavior that may result in injury
359.25to self or others. with less than 60 seconds of physical contact by staff; or
359.26(5) to redirect a person's behavior when the behavior does not pose a serious threat
359.27to the person or others and the behavior is effectively redirected with less than 60 seconds
359.28of physical contact by staff.
359.29(c) Restraint may be used as an intervention procedure to:
359.30(1) allow a licensed health care professional to safely conduct a medical examination
359.31or to provide medical treatment ordered by a licensed health care professional to a person
359.32necessary to promote healing or recovery from an acute, meaning short-term, medical
359.33condition;
359.34(2) assist in the safe evacuation or redirection of a person in the event of an
359.35emergency and the person is at imminent risk of harm.; or
360.1Any use of manual restraint as allowed in this paragraph must comply with the restrictions
360.2identified in section 245D.061, subdivision 3; or
360.3(3) position a person with physical disabilities in a manner specified in the person's
360.4coordinated service and support plan addendum.
360.5Any use of manual restraint as allowed in this paragraph must comply with the restrictions
360.6identified in subdivision 6, paragraph (b).
360.7(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment
360.8ordered by a licensed health professional to treat a diagnosed medical condition do not in
360.9and of themselves constitute the use of mechanical restraint.
360.10(e) Use of an auxiliary device to ensure a person does not unfasten a seat belt when
360.11being transported in a vehicle in accordance with seat belt use requirements in section
360.12169.686 does not constitute the use of mechanical restraint.

360.13    Sec. 33. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is
360.14amended to read:
360.15    Subd. 8. Positive support transition plan. (a) License holders must develop
360.16a positive support transition plan on the forms and in the manner prescribed by the
360.17commissioner for a person who requires intervention in order to maintain safety when
360.18it is known that the person's behavior poses an immediate risk of physical harm to self
360.19or others. The positive support transition plan forms and instructions will supersede the
360.20requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The
360.21positive support transition plan must phase out any existing plans for the emergency
360.22or programmatic use of aversive or deprivation procedures restrictive interventions
360.23 prohibited under this chapter within the following timelines:
360.24(1) for persons receiving services from the license holder before January 1, 2014,
360.25the plan must be developed and implemented by February 1, 2014, and phased out no
360.26later than December 31, 2014; and
360.27(2) for persons admitted to the program on or after January 1, 2014, the plan must be
360.28developed and implemented within 30 calendar days of service initiation and phased out
360.29no later than 11 months from the date of plan implementation.
360.30(b) The commissioner has limited authority to grant approval for the emergency use
360.31of procedures identified in subdivision 6 that had been part of an approved positive support
360.32transition plan when a person is at imminent risk of serious injury as defined in section
360.33245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:
360.34(1) the person's expanded support team approves the emergency use of the
360.35procedures; and
361.1(2) the interim review panel established in section 245.8251, subdivision 4,
361.2recommends commissioner approval of the emergency use of the procedures.
361.3(c) Written requests for the emergency use of the procedures must be developed
361.4and submitted to the commissioner by the designated coordinator with input from the
361.5person's expanded support team in accordance with the requirements set by the interim
361.6review panel, in addition to the following:
361.7(1) a copy of the person's current positive support transition plan and copies of
361.8each positive support transition plan review containing data on the progress of the plan
361.9from the previous year;
361.10(2) documentation of a good faith effort to eliminate the use of the procedures that
361.11had been part of an approved positive support transition plan;
361.12(3) justification for the continued use of the procedures that identifies the imminent
361.13risk of serious injury due to the person's self-injurious behavior if the procedures were
361.14eliminated;
361.15(4) documentation of the clinicians consulted in creating and maintaining the
361.16positive support transition plan; and
361.17(5) documentation of the expanded support team's approval and the recommendation
361.18from the interim panel required under paragraph (b).
361.19(d) A copy of the written request, supporting documentation, and the commissioner's
361.20final determination on the request must be maintained in the person's service recipient
361.21record.

361.22    Sec. 34. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3,
361.23is amended to read:
361.24    Subd. 3. Assessment and initial service planning. (a) Within 15 days of service
361.25initiation the license holder must complete a preliminary coordinated service and support
361.26plan addendum based on the coordinated service and support plan.
361.27(b) Within 45 days of service initiation the license holder must meet with the person,
361.28the person's legal representative, the case manager, and other members of the support team
361.29or expanded support team to assess and determine the following based on the person's
361.30coordinated service and support plan and the requirements in subdivision 4 and section
361.31245D.07, subdivision 1a:
361.32(1) the scope of the services to be provided to support the person's daily needs
361.33and activities;
361.34(2) the person's desired outcomes and the supports necessary to accomplish the
361.35person's desired outcomes;
362.1(3) the person's preferences for how services and supports are provided;
362.2(4) whether the current service setting is the most integrated setting available and
362.3appropriate for the person; and
362.4(5) how services must be coordinated across other providers licensed under this
362.5chapter serving the same person to ensure continuity of care for the person.
362.6(c) Within the scope of services, the license holder must, at a minimum, assess
362.7the following areas:
362.8(1) the person's ability to self-manage health and medical needs to maintain or
362.9improve physical, mental, and emotional well-being, including, when applicable, allergies,
362.10seizures, choking, special dietary needs, chronic medical conditions, self-administration
362.11of medication or treatment orders, preventative screening, and medical and dental
362.12appointments;
362.13(2) the person's ability to self-manage personal safety to avoid injury or accident in
362.14the service setting, including, when applicable, risk of falling, mobility, regulating water
362.15temperature, community survival skills, water safety skills, and sensory disabilities; and
362.16(3) the person's ability to self-manage symptoms or behavior that may otherwise
362.17result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to
362.18(7), suspension or termination of services by the license holder, or other symptoms
362.19or behaviors that may jeopardize the health and safety of the person or others. The
362.20assessments must produce information about the person that is descriptive of the person's
362.21overall strengths, functional skills and abilities, and behaviors or symptoms.
362.22(b) Within the scope of services, the license holder must, at a minimum, complete
362.23assessments in the following areas before the 45-day planning meeting:
362.24(1) the person's ability to self-manage health and medical needs to maintain or
362.25improve physical, mental, and emotional well-being, including, when applicable, allergies,
362.26seizures, choking, special dietary needs, chronic medical conditions, self-administration
362.27of medication or treatment orders, preventative screening, and medical and dental
362.28appointments;
362.29(2) the person's ability to self-manage personal safety to avoid injury or accident in
362.30the service setting, including, when applicable, risk of falling, mobility, regulating water
362.31temperature, community survival skills, water safety skills, and sensory disabilities; and
362.32(3) the person's ability to self-manage symptoms or behavior that may otherwise
362.33result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7),
362.34suspension or termination of services by the license holder, or other symptoms or
362.35behaviors that may jeopardize the health and safety of the person or others.
363.1Assessments must produce information about the person that describes the person's overall
363.2strengths, functional skills and abilities, and behaviors or symptoms. Assessments must
363.3be based on the person's status within the last 12 months at the time of service initiation.
363.4Assessments based on older information must be documented and justified. Assessments
363.5must be conducted annually at a minimum or within 30 days of a written request from the
363.6person or the person's legal representative or case manager. The results must be reviewed
363.7by the support team or expanded support team as part of a service plan review.
363.8(c) Within 45 days of service initiation, the license holder must meet with the
363.9person, the person's legal representative, the case manager, and other members of the
363.10support team or expanded support team to determine the following based on information
363.11obtained from the assessments identified in paragraph (b), the person's identified needs
363.12in the coordinated service and support plan, and the requirements in subdivision 4 and
363.13section 245D.07, subdivision 1a:
363.14(1) the scope of the services to be provided to support the person's daily needs
363.15and activities;
363.16(2) the person's desired outcomes and the supports necessary to accomplish the
363.17person's desired outcomes;
363.18(3) the person's preferences for how services and supports are provided;
363.19(4) whether the current service setting is the most integrated setting available and
363.20appropriate for the person; and
363.21(5) how services must be coordinated across other providers licensed under this
363.22chapter serving the person and members of the support team or expanded support team to
363.23ensure continuity of care and coordination of services for the person.

363.24    Sec. 35. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 4,
363.25is amended to read:
363.26    Subd. 4. Service outcomes and supports. (a) Within ten working days of the
363.2745-day planning meeting, the license holder must develop and document a service plan that
363.28documents the service outcomes and supports based on the assessments completed under
363.29subdivision 3 and the requirements in section 245D.07, subdivision 1a. The outcomes and
363.30supports must be included in the coordinated service and support plan addendum.
363.31(b) The license holder must document the supports and methods to be implemented
363.32to support the accomplishment of person and accomplish outcomes related to acquiring,
363.33retaining, or improving skills and physical, mental, and emotional health and well-being.
363.34The documentation must include:
364.1(1) the methods or actions that will be used to support the person and to accomplish
364.2the service outcomes, including information about:
364.3(i) any changes or modifications to the physical and social environments necessary
364.4when the service supports are provided;
364.5(ii) any equipment and materials required; and
364.6(iii) techniques that are consistent with the person's communication mode and
364.7learning style;
364.8(2) the measurable and observable criteria for identifying when the desired outcome
364.9has been achieved and how data will be collected;
364.10(3) the projected starting date for implementing the supports and methods and
364.11the date by which progress towards accomplishing the outcomes will be reviewed and
364.12evaluated; and
364.13(4) the names of the staff or position responsible for implementing the supports
364.14and methods.
364.15(c) Within 20 working days of the 45-day meeting, the license holder must obtain
364.16dated signatures from the person or the person's legal representative and case manager
364.17to document completion and approval of the assessment and coordinated service and
364.18support plan addendum.

364.19    Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 5,
364.20is amended to read:
364.21    Subd. 5. Progress reviews Service plan review and evaluation. (a) The license
364.22holder must give the person or the person's legal representative and case manager an
364.23opportunity to participate in the ongoing review and development of the service plan
364.24and the methods used to support the person and accomplish outcomes identified in
364.25subdivisions 3 and 4. The license holder, in coordination with the person's support team
364.26or expanded support team, must meet with the person, the person's legal representative,
364.27and the case manager, and participate in progress service plan review meetings following
364.28stated timelines established in the person's coordinated service and support plan or
364.29coordinated service and support plan addendum or within 30 days of a written request
364.30by the person, the person's legal representative, or the case manager, at a minimum of
364.31once per year. The purpose of the service plan review is to determine whether changes
364.32are needed to the service plan based on the assessment information, the license holder's
364.33evaluation of progress towards accomplishing outcomes, or other information provided by
364.34the support team or expanded support team.
365.1(b) The license holder must summarize the person's status and progress toward
365.2achieving the identified outcomes and make recommendations and identify the rationale
365.3for changing, continuing, or discontinuing implementation of supports and methods
365.4identified in subdivision 4 in a written report sent to the person or the person's legal
365.5representative and case manager five working days prior to the review meeting, unless
365.6the person, the person's legal representative, or the case manager requests to receive the
365.7report at the time of the meeting.
365.8(c) Within ten working days of the progress review meeting, the license holder
365.9must obtain dated signatures from the person or the person's legal representative and
365.10the case manager to document approval of any changes to the coordinated service and
365.11support plan addendum.

365.12    Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.081, subdivision 2,
365.13is amended to read:
365.14    Subd. 2. Coordination and evaluation of individual service delivery. (a) Delivery
365.15and evaluation of services provided by the license holder must be coordinated by a
365.16designated staff person. The designated coordinator must provide supervision, support,
365.17and evaluation of activities that include:
365.18(1) oversight of the license holder's responsibilities assigned in the person's
365.19coordinated service and support plan and the coordinated service and support plan
365.20addendum;
365.21(2) taking the action necessary to facilitate the accomplishment of the outcomes
365.22according to the requirements in section 245D.07;
365.23(3) instruction and assistance to direct support staff implementing the coordinated
365.24service and support plan and the service outcomes, including direct observation of service
365.25delivery sufficient to assess staff competency; and
365.26(4) evaluation of the effectiveness of service delivery, methodologies, and progress on
365.27the person's outcomes based on the measurable and observable criteria for identifying when
365.28the desired outcome has been achieved according to the requirements in section 245D.07.
365.29(b) The license holder must ensure that the designated coordinator is competent to
365.30perform the required duties identified in paragraph (a) through education and, training
365.31in human services and disability-related fields, and work experience in providing direct
365.32care services and supports to persons with disabilities relevant to the needs of the general
365.33population of persons served by the license holder and the individual persons for whom
365.34the designated coordinator is responsible. The designated coordinator must have the
365.35skills and ability necessary to develop effective plans and to design and use data systems
366.1to measure effectiveness of services and supports. The license holder must verify and
366.2document competence according to the requirements in section 245D.09, subdivision 3.
366.3The designated coordinator must minimally have:
366.4(1) a baccalaureate degree in a field related to human services, and one year of
366.5full-time work experience providing direct care services to persons with disabilities or
366.6persons age 65 and older;
366.7(2) an associate degree in a field related to human services, and two years of
366.8full-time work experience providing direct care services to persons with disabilities or
366.9persons age 65 and older;
366.10(3) a diploma in a field related to human services from an accredited postsecondary
366.11institution and three years of full-time work experience providing direct care services to
366.12persons with disabilities or persons age 65 and older; or
366.13(4) a minimum of 50 hours of education and training related to human services
366.14and disabilities; and
366.15(5) four years of full-time work experience providing direct care services to persons
366.16with disabilities or persons age 65 and older under the supervision of a staff person who
366.17meets the qualifications identified in clauses (1) to (3).

366.18    Sec. 38. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 3, is
366.19amended to read:
366.20    Subd. 3. Staff qualifications. (a) The license holder must ensure that staff providing
366.21direct support, or staff who have responsibilities related to supervising or managing the
366.22provision of direct support service, are competent as demonstrated through skills and
366.23knowledge training, experience, and education to meet the person's needs and additional
366.24requirements as written in the coordinated service and support plan or coordinated
366.25service and support plan addendum, or when otherwise required by the case manager or
366.26the federal waiver plan. The license holder must verify and maintain evidence of staff
366.27competency, including documentation of:
366.28(1) education and experience qualifications relevant to the job responsibilities
366.29assigned to the staff and to the needs of the general population of persons served by the
366.30program, including a valid degree and transcript, or a current license, registration, or
366.31certification, when a degree or licensure, registration, or certification is required by this
366.32chapter or in the coordinated service and support plan or coordinated service and support
366.33plan addendum;
366.34(2) demonstrated competency in the orientation and training areas required under
366.35this chapter, and when applicable, completion of continuing education required to
367.1maintain professional licensure, registration, or certification requirements. Competency in
367.2these areas is determined by the license holder through knowledge testing and or observed
367.3skill assessment conducted by the trainer or instructor; and
367.4(3) except for a license holder who is the sole direct support staff, periodic
367.5performance evaluations completed by the license holder of the direct support staff
367.6person's ability to perform the job functions based on direct observation.
367.7(b) Staff under 18 years of age may not perform overnight duties or administer
367.8medication.

367.9    Sec. 39. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 4a,
367.10is amended to read:
367.11    Subd. 4a. Orientation to individual service recipient needs. (a) Before having
367.12unsupervised direct contact with a person served by the program, or for whom the staff
367.13person has not previously provided direct support, or any time the plans or procedures
367.14identified in paragraphs (b) to (f) (g) are revised, the staff person must review and receive
367.15instruction on the requirements in paragraphs (b) to (f) (g) as they relate to the staff
367.16person's job functions for that person.
367.17(b) Training and competency evaluations must include the following:
367.18(1) appropriate and safe techniques in personal hygiene and grooming, including
367.19hair care; bathing; care of teeth, gums, and oral prosthetic devices; and other activities of
367.20daily living (ADLs) as defined under section 256B.0659, subdivision 1;
367.21(2) an understanding of what constitutes a healthy diet according to data from the
367.22Centers for Disease Control and Prevention and the skills necessary to prepare that diet;
367.23(3) skills necessary to provide appropriate support in instrumental activities of daily
367.24living (IADLs) as defined under section 256B.0659, subdivision 1; and
367.25(4) demonstrated competence in providing first aid.
367.26(c) The staff person must review and receive instruction on the person's coordinated
367.27service and support plan or coordinated service and support plan addendum as it relates
367.28to the responsibilities assigned to the license holder, and when applicable, the person's
367.29individual abuse prevention plan, to achieve and demonstrate an understanding of the
367.30person as a unique individual, and how to implement those plans.
367.31(d) The staff person must review and receive instruction on medication setup,
367.32assistance, or administration procedures established for the person when medication
367.33administration is assigned to the license holder according to section 245D.05, subdivision
367.341 , paragraph (b). Unlicensed staff may administer medications perform medication setup
367.35or medication administration only after successful completion of a medication setup or
368.1medication administration training, from a training curriculum developed by a registered
368.2nurse, clinical nurse specialist in psychiatric and mental health nursing, certified nurse
368.3practitioner, physician's assistant, or physician or appropriate licensed health professional.
368.4The training curriculum must incorporate an observed skill assessment conducted by the
368.5trainer to ensure unlicensed staff demonstrate the ability to safely and correctly follow
368.6medication procedures.
368.7Medication administration must be taught by a registered nurse, clinical nurse
368.8specialist, certified nurse practitioner, physician's assistant, or physician if, at the time of
368.9service initiation or any time thereafter, the person has or develops a health care condition
368.10that affects the service options available to the person because the condition requires:
368.11(1) specialized or intensive medical or nursing supervision; and
368.12(2) nonmedical service providers to adapt their services to accommodate the health
368.13and safety needs of the person.
368.14(e) The staff person must review and receive instruction on the safe and correct
368.15operation of medical equipment used by the person to sustain life, including but not
368.16limited to ventilators, feeding tubes, or endotracheal tubes. The training must be provided
368.17by a licensed health care professional or a manufacturer's representative and incorporate
368.18an observed skill assessment to ensure staff demonstrate the ability to safely and correctly
368.19operate the equipment according to the treatment orders and the manufacturer's instructions.
368.20(f) The staff person must review and receive instruction on what constitutes use of
368.21restraints, time out, and seclusion, including chemical restraint, and staff responsibilities
368.22related to the prohibitions of their use according to the requirements in section 245D.06,
368.23subdivision 5 or successor provisions, why such procedures are not effective for reducing
368.24or eliminating symptoms or undesired behavior and why they are not safe, and the safe
368.25and correct use of manual restraint on an emergency basis according to the requirements
368.26in section 245D.061 or successor provisions.
368.27(g) The staff person must review and receive instruction on mental health crisis
368.28response, de-escalation techniques, and suicide intervention when providing direct support
368.29to a person with a serious mental illness.
368.30(g) (h) In the event of an emergency service initiation, the license holder must ensure
368.31the training required in this subdivision occurs within 72 hours of the direct support staff
368.32person first having unsupervised contact with the person receiving services. The license
368.33holder must document the reason for the unplanned or emergency service initiation and
368.34maintain the documentation in the person's service recipient record.
368.35(h) (i) License holders who provide direct support services themselves must
368.36complete the orientation required in subdivision 4, clauses (3) to (7).

369.1    Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2,
369.2is amended to read:
369.3    Subd. 2. Behavior professional qualifications. A behavior professional providing
369.4behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c),
369.5clause (1), item (i), as defined in the brain injury and community alternatives for disabled
369.6individuals waiver plans or successor plans, must have competencies in the following
369.7areas related to as required under the brain injury and community alternatives for disabled
369.8individuals waiver plans or successor plans:
369.9(1) ethical considerations;
369.10(2) functional assessment;
369.11(3) functional analysis;
369.12(4) measurement of behavior and interpretation of data;
369.13(5) selecting intervention outcomes and strategies;
369.14(6) behavior reduction and elimination strategies that promote least restrictive
369.15approved alternatives;
369.16(7) data collection;
369.17(8) staff and caregiver training;
369.18(9) support plan monitoring;
369.19(10) co-occurring mental disorders or neurocognitive disorder;
369.20(11) demonstrated expertise with populations being served; and
369.21(12) must be a:
369.22(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the
369.23Board of Psychology competencies in the above identified areas;
369.24(ii) clinical social worker licensed as an independent clinical social worker under
369.25chapter 148D, or a person with a master's degree in social work from an accredited college
369.26or university, with at least 4,000 hours of post-master's supervised experience in the
369.27delivery of clinical services in the areas identified in clauses (1) to (11);
369.28(iii) physician licensed under chapter 147 and certified by the American Board
369.29of Psychiatry and Neurology or eligible for board certification in psychiatry with
369.30competencies in the areas identified in clauses (1) to (11);
369.31(iv) licensed professional clinical counselor licensed under sections 148B.29 to
369.32148B.39 with at least 4,000 hours of post-master's supervised experience in the delivery
369.33of clinical services who has demonstrated competencies in the areas identified in clauses
369.34(1) to (11);
369.35(v) person with a master's degree from an accredited college or university in one
369.36of the behavioral sciences or related fields, with at least 4,000 hours of post-master's
370.1supervised experience in the delivery of clinical services with demonstrated competencies
370.2in the areas identified in clauses (1) to (11); or
370.3(vi) registered nurse who is licensed under sections 148.171 to 148.285, and who is
370.4certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and
370.5mental health nursing by a national nurse certification organization, or who has a master's
370.6degree in nursing or one of the behavioral sciences or related fields from an accredited
370.7college or university or its equivalent, with at least 4,000 hours of post-master's supervised
370.8experience in the delivery of clinical services.

370.9    Sec. 41. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3,
370.10is amended to read:
370.11    Subd. 3. Behavior analyst qualifications. (a) A behavior analyst providing
370.12behavioral support services as identified in section 245D.03, subdivision 1, paragraph
370.13(c), clause (1), item (i), as defined in the brain injury and community alternatives for
370.14disabled individuals waiver plans or successor plans, must have competencies in the
370.15following areas as required under the brain injury and community alternatives for disabled
370.16individuals waiver plans or successor plans:
370.17(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services
370.18discipline; or
370.19(2) meet the qualifications of a mental health practitioner as defined in section
370.20245.462, subdivision 17 .
370.21(b) In addition, a behavior analyst must:
370.22(1) have four years of supervised experience working with individuals who exhibit
370.23challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;
370.24(2) have received ten hours of instruction in functional assessment and functional
370.25analysis;
370.26(3) have received 20 hours of instruction in the understanding of the function of
370.27behavior;
370.28(4) have received ten hours of instruction on design of positive practices behavior
370.29support strategies;
370.30(5) have received 20 hours of instruction on the use of behavior reduction approved
370.31strategies used only in combination with behavior positive practices strategies;
370.32(6) be determined by a behavior professional to have the training and prerequisite
370.33skills required to provide positive practice strategies as well as behavior reduction
370.34approved and permitted intervention to the person who receives behavioral support; and
370.35(7) be under the direct supervision of a behavior professional.

371.1    Sec. 42. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 4,
371.2is amended to read:
371.3    Subd. 4. Behavior specialist qualifications. (a) A behavior specialist providing
371.4behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c),
371.5clause (1), item (i), as defined in the brain injury and community alternatives for disabled
371.6individuals waiver plans or successor plans, must meet the following qualifications have
371.7competencies in the following areas as required under the brain injury and community
371.8alternatives for disabled individuals waiver plans or successor plans:
371.9(1) have an associate's degree in a social services discipline; or
371.10(2) have two years of supervised experience working with individuals who exhibit
371.11challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.
371.12(b) In addition, a behavior specialist must:
371.13(1) have received a minimum of four hours of training in functional assessment;
371.14(2) have received 20 hours of instruction in the understanding of the function of
371.15behavior;
371.16(3) have received ten hours of instruction on design of positive practices behavioral
371.17support strategies;
371.18(4) be determined by a behavior professional to have the training and prerequisite
371.19skills required to provide positive practices strategies as well as behavior reduction
371.20approved intervention to the person who receives behavioral support; and
371.21(5) be under the direct supervision of a behavior professional.

371.22    Sec. 43. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 3, is
371.23amended to read:
371.24    Subd. 3. Service suspension and service termination. (a) The license holder must
371.25establish policies and procedures for temporary service suspension and service termination
371.26that promote continuity of care and service coordination with the person and the case
371.27manager and with other licensed caregivers, if any, who also provide support to the person.
371.28(b) The policy must include the following requirements:
371.29(1) the license holder must notify the person or the person's legal representative and
371.30case manager in writing of the intended termination or temporary service suspension, and
371.31the person's right to seek a temporary order staying the termination of service according to
371.32the procedures in section 256.045, subdivision 4a, or 6, paragraph (c);
371.33(2) notice of the proposed termination of services, including those situations that
371.34began with a temporary service suspension, must be given at least 60 days before the
371.35proposed termination is to become effective when a license holder is providing intensive
372.1supports and services identified in section 245D.03, subdivision 1, paragraph (c), and 30
372.2days prior to termination for all other services licensed under this chapter. This notice
372.3may be given in conjunction with a notice of temporary service suspension;
372.4(3) notice of temporary service suspension must be given on the first day of the
372.5service suspension;
372.6(3) (4) the license holder must provide information requested by the person or case
372.7manager when services are temporarily suspended or upon notice of termination;
372.8(4) (5) prior to giving notice of service termination or temporary service suspension,
372.9the license holder must document actions taken to minimize or eliminate the need for
372.10service suspension or termination;
372.11(5) (6) during the temporary service suspension or service termination notice period,
372.12the license holder will must work with the appropriate county agency support team or
372.13expanded support team to develop reasonable alternatives to protect the person and others;
372.14(6) (7) the license holder must maintain information about the service suspension or
372.15termination, including the written termination notice, in the service recipient record; and
372.16(7) (8) the license holder must restrict temporary service suspension to situations in
372.17which the person's conduct poses an imminent risk of physical harm to self or others and
372.18less restrictive or positive support strategies would not achieve and maintain safety.

372.19    Sec. 44. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 4, is
372.20amended to read:
372.21    Subd. 4. Availability of current written policies and procedures. (a) The license
372.22holder must review and update, as needed, the written policies and procedures required
372.23under this chapter.
372.24(b) (1) The license holder must inform the person and case manager of the policies
372.25and procedures affecting a person's rights under section 245D.04, and provide copies of
372.26those policies and procedures, within five working days of service initiation.
372.27(2) If a license holder only provides basic services and supports, this includes the:
372.28(i) grievance policy and procedure required under subdivision 2; and
372.29(ii) service suspension and termination policy and procedure required under
372.30subdivision 3.
372.31(3) For all other license holders this includes the:
372.32(i) policies and procedures in clause (2);
372.33(ii) emergency use of manual restraints policy and procedure required under section
372.34245D.061, subdivision 10, or successor provisions ; and
372.35(iii) data privacy requirements under section 245D.11, subdivision 3.
373.1(c) The license holder must provide a written notice to all persons or their legal
373.2representatives and case managers at least 30 days before implementing any procedural
373.3revisions to policies affecting a person's service-related or protection-related rights under
373.4section 245D.04 and maltreatment reporting policies and procedures. The notice must
373.5explain the revision that was made and include a copy of the revised policy and procedure.
373.6The license holder must document the reasonable cause for not providing the notice at
373.7least 30 days before implementing the revisions.
373.8(d) Before implementing revisions to required policies and procedures, the license
373.9holder must inform all employees of the revisions and provide training on implementation
373.10of the revised policies and procedures.
373.11(e) The license holder must annually notify all persons, or their legal representatives,
373.12and case managers of any procedural revisions to policies required under this chapter,
373.13other than those in paragraph (c). Upon request, the license holder must provide the
373.14person, or the person's legal representative, and case manager with copies of the revised
373.15policies and procedures.

373.16    Sec. 45. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is
373.17amended to read:
373.18    Subd. 2. Health and safety. The license holder must establish policies and
373.19procedures that promote health and safety by ensuring:
373.20(1) use of universal precautions and sanitary practices in compliance with section
373.21245D.06, subdivision 2 , clause (5);
373.22(2) if the license holder operates a residential program, health service coordination
373.23and care according to the requirements in section 245D.05, subdivision 1;
373.24(3) safe medication assistance and administration according to the requirements
373.25in sections 245D.05, subdivisions 1a, 2, and 5, and 245D.051, that are established in
373.26consultation with a registered nurse, nurse practitioner, physician's assistant, or medical
373.27doctor and require completion of medication administration training according to the
373.28requirements in section 245D.09, subdivision 4a, paragraph (d). Medication assistance
373.29and administration includes, but is not limited to:
373.30(i) providing medication-related services for a person;
373.31(ii) medication setup;
373.32(iii) medication administration;
373.33(iv) medication storage and security;
373.34(v) medication documentation and charting;
374.1(vi) verification and monitoring of effectiveness of systems to ensure safe medication
374.2handling and administration;
374.3(vii) coordination of medication refills;
374.4(viii) handling changes to prescriptions and implementation of those changes;
374.5(ix) communicating with the pharmacy; and
374.6(x) coordination and communication with prescriber;
374.7(4) safe transportation, when the license holder is responsible for transportation of
374.8persons, with provisions for handling emergency situations according to the requirements
374.9in section 245D.06, subdivision 2, clauses (2) to (4);
374.10(5) a plan for ensuring the safety of persons served by the program in emergencies as
374.11defined in section 245D.02, subdivision 8, and procedures for staff to report emergencies
374.12to the license holder. A license holder with a community residential setting or a day service
374.13facility license must ensure the policy and procedures comply with the requirements in
374.14section 245D.22, subdivision 4;
374.15(6) a plan for responding to all incidents as defined in section 245D.02, subdivision
374.1611; and reporting all incidents required to be reported according to section 245D.06,
374.17subdivision 1. The plan must:
374.18(i) provide the contact information of a source of emergency medical care and
374.19transportation; and
374.20(ii) require staff to first call 911 when the staff believes a medical emergency may
374.21be life threatening, or to call the mental health crisis intervention team or similar mental
374.22health response team or service when such a team is available and appropriate when the
374.23person is experiencing a mental health crisis; and
374.24(7) a procedure for the review of incidents and emergencies to identify trends or
374.25patterns, and corrective action if needed. The license holder must establish and maintain
374.26a record-keeping system for the incident and emergency reports. Each incident and
374.27emergency report file must contain a written summary of the incident. The license holder
374.28must conduct a review of incident reports for identification of incident patterns, and
374.29implementation of corrective action as necessary to reduce occurrences. Each incident
374.30report must include:
374.31(i) the name of the person or persons involved in the incident. It is not necessary
374.32to identify all persons affected by or involved in an emergency unless the emergency
374.33resulted in an incident;
374.34(ii) the date, time, and location of the incident or emergency;
374.35(iii) a description of the incident or emergency;
375.1(iv) a description of the response to the incident or emergency and whether a person's
375.2coordinated service and support plan addendum or program policies and procedures were
375.3implemented as applicable;
375.4(v) the name of the staff person or persons who responded to the incident or
375.5emergency; and
375.6(vi) the determination of whether corrective action is necessary based on the results
375.7of the review.

375.8    Sec. 46. Minnesota Statutes 2012, section 252.451, subdivision 2, is amended to read:
375.9    Subd. 2. Vendor participation and reimbursement. Notwithstanding requirements
375.10in chapter chapters 245A and 245D, and sections 252.28, 252.40 to 252.46, and 256B.501,
375.11vendors of day training and habilitation services may enter into written agreements with
375.12qualified businesses to provide additional training and supervision needed by individuals
375.13to maintain their employment.

375.14    Sec. 47. Minnesota Statutes 2012, section 256.9752, subdivision 2, is amended to read:
375.15    Subd. 2. Authority. The Minnesota Board on Aging shall allocate to area agencies
375.16on aging the state and federal funds which are received for the senior nutrition programs
375.17of congregate dining and home-delivered meals in a manner consistent with federal
375.18requirements.

375.19    Sec. 48. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 4,
375.20is amended to read:
375.21    Subd. 4. Diagnosis. (a) A diagnosis must:
375.22    (1) be based upon current DSM criteria including direct observations of the child
375.23and reports from parents or primary caregivers; and
375.24    (2) be completed by both either (i) a licensed physician or advanced practice
375.25registered nurse and or (ii) a mental health professional.
375.26    (b) Additional diagnostic assessment information may be considered including from
375.27special education evaluations and licensed school personnel, and from professionals
375.28licensed in the fields of medicine, speech and language, psychology, occupational therapy,
375.29and physical therapy.
375.30(c) If the commissioner determines there are access problems or delays in diagnosis
375.31for a geographic area due to the lack of qualified professionals, the commissioner shall
375.32waive the requirement in paragraph (a), clause (2), for two professionals and allow a
375.33diagnosis to be made by one professional for that geographic area. This exception must be
376.1limited to a specific period of time until, with stakeholder input as described in subdivision
376.28, there is a determination of an adequate number of professionals available to require two
376.3professionals for each diagnosis.

376.4    Sec. 49. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1,
376.5is amended to read:
376.6    Subdivision 1. Development and implementation of quality profiles. (a) The
376.7commissioner of human services, in cooperation with the commissioner of health, shall
376.8develop and implement quality profiles for nursing facilities and, beginning not later than
376.9July 1, 2014, for home and community-based services providers, except when the quality
376.10profile system would duplicate requirements under section 256B.5011, 256B.5012, or
376.11256B.5013 . For purposes of this section, home and community-based services providers
376.12are defined as providers of home and community-based services under sections 256B.0625,
376.13subdivisions 6a, 7, and 19a; 256B.0913 ,; 256B.0915,; 256B.092, and; 256B.49,; and
376.14256B.85, and intermediate care facilities for persons with developmental disabilities
376.15providers under section 256B.5013. To the extent possible, quality profiles must be
376.16developed for providers of services to older adults and people with disabilities, regardless
376.17of payor source, for the purposes of providing information to consumers. The quality
376.18profiles must be developed using existing data sets maintained by the commissioners of
376.19health and human services to the extent possible. The profiles must incorporate or be
376.20coordinated with information on quality maintained by area agencies on aging, long-term
376.21care trade associations, the ombudsman offices, counties, tribes, health plans, and other
376.22entities and the long-term care database maintained under section 256.975, subdivision 7.
376.23The profiles must be designed to provide information on quality to:
376.24(1) consumers and their families to facilitate informed choices of service providers;
376.25(2) providers to enable them to measure the results of their quality improvement
376.26efforts and compare quality achievements with other service providers; and
376.27(3) public and private purchasers of long-term care services to enable them to
376.28purchase high-quality care.
376.29(b) The profiles must be developed in consultation with the long-term care task
376.30force, area agencies on aging, and representatives of consumers, providers, and labor
376.31unions. Within the limits of available appropriations, the commissioners may employ
376.32consultants to assist with this project.
376.33EFFECTIVE DATE.This section is effective retroactively from February 1, 2014.

377.1    Sec. 50. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 7,
377.2is amended to read:
377.3    Subd. 7. Calculation of home and community-based services quality add-on.
377.4Effective On July 1, 2015, the commissioner shall determine the quality add-on rate
377.5change and adjust payment rates for participating all home and community-based services
377.6providers for services rendered on or after that date. The adjustment to a provider payment
377.7rate determined under this subdivision shall become part of the ongoing rate paid to that
377.8provider. The payment rate for the quality add-on shall be a variable amount based on
377.9each provider's quality score as determined in subdivisions 1 and 2a. All home and
377.10community-based services providers shall receive a minimum rate increase under this
377.11subdivision. In addition to a minimum rate increase, a home and community-based
377.12services provider shall receive a quality add-on payment. The commissioner shall limit
377.13the types of home and community-based services providers that may receive the quality
377.14add-on and based on availability of quality measures and outcome data. The commissioner
377.15shall limit the amount of the minimum rate increase and quality add-on payments to
377.16operate the quality add-on within funds appropriated for this purpose and based on the
377.17availability of the quality measures the equivalent of a one percent rate increase for all
377.18home and community-based services providers.

377.19    Sec. 51. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 53,
377.20is amended to read:
377.21    Subd. 53. Calculation of payment rate for external fixed costs. The commissioner
377.22shall calculate a payment rate for external fixed costs.
377.23    (a) For a facility licensed as a nursing home, the portion related to section 256.9657
377.24shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care
377.25home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the
377.26result of its number of nursing home beds divided by its total number of licensed beds.
377.27    (b) The portion related to the licensure fee under section 144.122, paragraph (d),
377.28shall be the amount of the fee divided by actual resident days.
377.29    (c) The portion related to scholarships shall be determined under section 256B.431,
377.30subdivision 36.
377.31    (d) Until September 30, 2013, the portion related to long-term care consultation shall
377.32be determined according to section 256B.0911, subdivision 6.
377.33    (e) The portion related to development and education of resident and family advisory
377.34councils under section 144A.33 shall be $5 divided by 365.
378.1    (f) The portion related to planned closure rate adjustments shall be as determined
378.2under section 256B.437, subdivision 6, and Minnesota Statutes 2010, section 256B.436.
378.3Planned closure rate adjustments that take effect before October 1, 2014, shall no longer
378.4be included in the payment rate for external fixed costs beginning October 1, 2016.
378.5Planned closure rate adjustments that take effect on or after October 1, 2014, shall no
378.6longer be included in the payment rate for external fixed costs beginning on October 1 of
378.7the first year not less than two years after their effective date.
378.8    (g) The portions related to property insurance, real estate taxes, special assessments,
378.9and payments made in lieu of real estate taxes directly identified or allocated to the nursing
378.10facility shall be the actual amounts divided by actual resident days.
378.11    (h) The portion related to the Public Employees Retirement Association shall be
378.12actual costs divided by resident days.
378.13    (i) The single bed room incentives shall be as determined under section 256B.431,
378.14subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall
378.15no longer be included in the payment rate for external fixed costs beginning October 1,
378.162016. Single bed room incentives that take effect on or after October 1, 2014, shall no
378.17longer be included in the payment rate for external fixed costs beginning on October 1 of
378.18the first year not less than two years after their effective date.
378.19    (j) The portion related to the rate adjustment as provided in subdivision 64.
378.20    (k) The payment rate for external fixed costs shall be the sum of the amounts in
378.21paragraphs (a) to (i) (j).

378.22    Sec. 52. Minnesota Statutes 2012, section 256B.441, is amended by adding a
378.23subdivision to read:
378.24    Subd. 64. Rate adjustment for compensation-related costs. (a) Total payment
378.25rates of all nursing facilities that are reimbursed under this section or section 256B.434
378.26shall be increased effective October 1, 2014, to address compensation costs for nursing
378.27facility employees paid less than $14.00 per hour.
378.28(b) Based on the application in paragraph (d), the commissioner shall calculate
378.29the annualized compensation costs by adding the totals of clauses (1), (2), and (3). The
378.30result must be divided by the resident days from the most recently available cost report to
378.31determine a per diem amount, which must be included in the external fixed cost portion of
378.32the total payment rate under subdivision 53:
378.33(1) the sum of the difference between $9.50 and any hourly wage rate of less than
378.34$9.50, multiplied by the number of compensated hours at that wage rate;
378.35(2) the sum of items (i) to (viii):
379.1(i) for all compensated hours from $8.00 to $8.49 per hour, the number of
379.2compensated hours is multiplied by $0.13;
379.3(ii) for all compensated hours from $8.50 to $8.99 per hour, the number of
379.4compensated hours is multiplied by $0.25;
379.5(iii) for all compensated hours from $9.00 to $9.49 per hour, the number of
379.6compensated hours is multiplied by $0.38;
379.7(iv) for all compensated hours from $9.50 to $10.49 per hour, the number of
379.8compensated hours is multiplied by $0.50;
379.9(v) for all compensated hours from $10.50 to $10.99 per hour, the number of
379.10compensated hours is multiplied by $0.40;
379.11(vi) for all compensated hours from $11.00 to $11.49 per hour, the number of
379.12compensated hours is multiplied by $0.30;
379.13(vii) for all compensated hours from $11.50 to $11.99 per hour, the number of
379.14compensated hours is multiplied by $0.20; and
379.15(viii) for all compensated hours from $12.00 to $13.00 per hour, the number of
379.16compensated hours is multiplied by $0.10; and
379.17(3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal
379.18unemployment taxes, workers' compensation, pensions, and contributions to employee
379.19retirement accounts attributable to the amounts in clauses (1) and (2).
379.20(c) For the rate year beginning October 1, 2014, nursing facilities that receive
379.21approval of the application in paragraph (d) must receive a rate adjustment according to
379.22paragraph (b). The rate adjustment must be used to pay compensation costs for nursing
379.23facility employees paid less than $14.00 per hour. The rate adjustment must continue to
379.24be included in the total payment rate in subsequent years.
379.25(d) To receive a rate adjustment, nursing facilities must submit an application to the
379.26commissioner in a form and manner determined by the commissioner. The application
379.27shall include data for a period beginning with the first pay period after January 1, 2014,
379.28including at least three months of employee compensated hours by wage rate, and a
379.29spending plan that describes how the funds from the rate adjustment will be allocated
379.30for compensation to employees paid less than $14.00 per hour. The application must
379.31be submitted by December 31, 2014. The commissioner may request any additional
379.32information needed to determine the rate adjustment within three weeks of receiving
379.33a complete application. The nursing facility must provide any additional information
379.34requested by the commissioner by March 31, 2015. The commissioner may waive the
379.35deadlines in this subdivision under extraordinary circumstances.
380.1(e) For nursing facilities in which employees are represented by an exclusive
380.2bargaining representative, the commissioner shall approve the application submitted under
380.3this subdivision only upon receipt of a letter of acceptance of the spending plan in regard
380.4to members of the bargaining unit, signed by the exclusive bargaining agent and dated
380.5after May 31, 2014. Upon receipt of the letter of acceptance, the commissioner shall
380.6deem all requirements of this subdivision as having been met in regard to the members of
380.7the bargaining unit.

380.8    Sec. 53. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1,
380.9is amended to read:
380.10    Subdivision 1. Provider qualifications. (a) For the home and community-based
380.11waivers providing services to seniors and individuals with disabilities under sections
380.12256B.0913 , 256B.0915, 256B.092, and 256B.49, the commissioner shall establish:
380.13(1) agreements with enrolled waiver service providers to ensure providers meet
380.14Minnesota health care program requirements;
380.15(2) regular reviews of provider qualifications, and including requests of proof of
380.16documentation; and
380.17(3) processes to gather the necessary information to determine provider qualifications.
380.18    (b) Beginning July 1, 2012, staff that provide direct contact, as defined in section
380.19245C.02, subdivision 11 , for services specified in the federally approved waiver plans
380.20must meet the requirements of chapter 245C prior to providing waiver services and as
380.21part of ongoing enrollment. Upon federal approval, this requirement must also apply to
380.22consumer-directed community supports.
380.23    (c) Beginning January 1, 2014, service owners and managerial officials overseeing
380.24the management or policies of services that provide direct contact as specified in the
380.25federally approved waiver plans must meet the requirements of chapter 245C prior to
380.26reenrollment or revalidation or, for new providers, prior to initial enrollment if they have
380.27not already done so as a part of service licensure requirements.

380.28    Sec. 54. Minnesota Statutes 2012, section 256B.5012, is amended by adding a
380.29subdivision to read:
380.30    Subd. 16. ICF/DD rate increases effective July 1, 2014. (a) For each facility
380.31reimbursed under this section, for the rate period beginning July 1, 2014, the commissioner
380.32shall increase operating payments equal to five percent of the operating payment rates in
380.33effect on July 1, 2014. For each facility, the commissioner shall apply the rate increase
380.34based on occupied beds, using the percentage specified in this subdivision multiplied by
381.1the total payment rate, including the variable rate but excluding the property-related
381.2payment rate in effect on the preceding date.
381.3(b) To receive the rate increase under paragraph (a), each facility reimbursed under
381.4this section must submit to the commissioner documentation that identifies a quality
381.5improvement project the facility will implement by June 30, 2015. Documentation must
381.6be provided in a format specified by the commissioner. Projects must:
381.7(1) improve the quality of life of intermediate care facility residents in a meaningful
381.8way;
381.9(2) improve the quality of services in a measurable way; or
381.10(3) deliver good quality service more efficiently while using the savings to enhance
381.11services for the participants served.
381.12(c) For a facility that fails to submit the documentation described in paragraph (b)
381.13by a date or in a format specified by the commissioner, the commissioner shall reduce
381.14the facility's rate by one percent effective January 1, 2015.
381.15(d) Facilities that receive a rate increase under this subdivision shall use 75 percent
381.16of the rate increase to increase compensation-related costs for employees directly
381.17employed by the facility on or after the effective date of the rate adjustments, except:
381.18(1) persons employed in the central office of a corporation or entity that has an
381.19ownership interest in the facility or exercises control over the facility; and
381.20(2) persons paid by the facility under a management contract.
381.21This requirement is subject to audit by the commissioner.
381.22(e) Compensation-related costs include:
381.23(1) wages and salaries;
381.24(2) the employer's share of FICA taxes, Medicare taxes, state and federal
381.25unemployment taxes, workers' compensation, and mileage reimbursement;
381.26(3) the employer's share of health and dental insurance, life insurance, disability
381.27insurance, long-term care insurance, uniform allowance, pensions, and contributions to
381.28employee retirement accounts; and
381.29(4) other benefits provided and workforce needs, including the recruiting and
381.30training of employees as specified in the distribution plan required under paragraph (f).
381.31(f) A facility that receives a rate adjustment under paragraph (a) that is subject to
381.32paragraphs (d) and (e) shall prepare and produce for the commissioner, upon request, a
381.33plan that specifies the amount of money the provider expects to receive that is subject to
381.34the requirements of paragraphs (d) and (e), as well as how that money will be distributed
381.35to increase compensation for employees. The commissioner may recover funds from a
381.36facility that fails to comply with this requirement.
382.1(g) Within six months after the effective date of the rate adjustment, the facility shall
382.2post the distribution plan required under paragraph (f) for a period of at least six weeks in
382.3an area of the facility's operation to which all eligible employees have access, and shall
382.4provide instructions for employees who believe they have not received the wage and other
382.5compensation-related increases specified in the distribution plan. These instructions must
382.6include a mailing address, e-mail address, and telephone number that an employee may
382.7use to contact the commissioner or the commissioner's representative. Facilities shall
382.8make assurances to the commissioner of compliance with this subdivision using forms
382.9prescribed by the commissioner.
382.10(h) For public employees, the increase for wages and benefits for certain staff is
382.11available and pay rates must be increased only to the extent that the increases comply with
382.12laws governing public employees' collective bargaining. Money received by a provider for
382.13pay increases for public employees under this subdivision may be used only for increases
382.14implemented within one month of the effective date of the rate increase and must not be
382.15used for increases implemented prior to that date.
382.16(i) For a provider that has employees that are represented by an exclusive bargaining
382.17representative, the provider shall obtain a letter of acceptance of the distribution plan, in
382.18regard to the members of the bargaining unit, signed by the exclusive bargaining agent.
382.19Upon receipt of the letter of acceptance, the provider shall be deemed to have met all the
382.20requirements of this subdivision in regard to the members of the bargaining unit. The
382.21provider shall produce the letter of acceptance for the commissioner upon request.

382.22    Sec. 55. PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY
382.231, 2014.
382.24(a) The commissioner of human services shall increase reimbursement rates, grants,
382.25allocations, individual limits, and rate limits, as applicable, by five percent for the rate
382.26period beginning July 1, 2014, for services rendered on or after that date. County or tribal
382.27contracts for services specified in this section must be amended to pass through these rate
382.28increases within 60 days of the effective date.
382.29(b) The rate changes described in this section must be provided to:
382.30(1) home and community-based waiver services for persons with developmental
382.31disabilities, including consumer-directed community supports, under Minnesota Statutes,
382.32section 256B.092;
382.33(2) waiver services under community alternatives for disabled individuals, including
382.34consumer-directed community supports, under Minnesota Statutes, section 256B.49;
383.1(3) community alternative care waiver services, including consumer-directed
383.2community supports, under Minnesota Statutes, section 256B.49;
383.3(4) brain injury waiver services, including consumer-directed community supports,
383.4under Minnesota Statutes, section 256B.49;
383.5(5) home and community-based waiver services for the elderly under Minnesota
383.6Statutes, section 256B.0915;
383.7(6) nursing services and home health services under Minnesota Statutes, section
383.8256B.0625, subdivision 6a;
383.9(7) personal care services and qualified professional supervision of personal care
383.10services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
383.11(8) private duty nursing services under Minnesota Statutes, section 256B.0625,
383.12subdivision 7;
383.13(9) community first services and supports under Minnesota Statutes, section 256B.85;
383.14(10) essential community supports under Minnesota Statutes, section 256B.0922;
383.15(11) day training and habilitation services for adults with developmental disabilities
383.16or related conditions under Minnesota Statutes, sections 252.41 to 252.46, including the
383.17additional cost to counties for rate adjustments to day training and habilitation services
383.18provided as a social service;
383.19(12) alternative care services under Minnesota Statutes, section 256B.0913;
383.20(13) living skills training programs for persons with intractable epilepsy who need
383.21assistance in the transition to independent living under Laws 1988, chapter 689;
383.22(14) consumer support grants under Minnesota Statutes, section 256.476;
383.23(15) semi-independent living services under Minnesota Statutes, section 252.275;
383.24(16) family support grants under Minnesota Statutes, section 252.32;
383.25(17) housing access grants under Minnesota Statutes, section 256B.0658;
383.26(18) self-advocacy grants under Laws 2009, chapter 101;
383.27(19) technology grants under Laws 2009, chapter 79;
383.28(20) aging grants under Minnesota Statutes, sections 256.975 to 256.977 and
383.29256B.0917;
383.30(21) deaf and hard-of-hearing grants, including community support services for deaf
383.31and hard-of-hearing adults with mental illness who use or wish to use sign language as their
383.32primary means of communication under Minnesota Statutes, section 256.01, subdivision 2;
383.33(22) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233,
383.34256C.25, and 256C.261;
383.35(23) Disability Linkage Line grants under Minnesota Statutes, section 256.01,
383.36subdivision 24;
384.1(24) transition initiative grants under Minnesota Statutes, section 256.478;
384.2(25) employment support grants under Minnesota Statutes, section 256B.021,
384.3subdivision 6; and
384.4(26) grants provided to people who are eligible for the Housing Opportunities for
384.5Persons with AIDS program under Minnesota Statutes, section 256B.492.
384.6(c) A managed care plan receiving state payments for the services in paragraph (b)
384.7must include the increases in paragraph (a) in payments to providers. To implement the
384.8rate increase in this section, capitation rates paid by the commissioner to managed care
384.9organizations under Minnesota Statutes, section 256B.69, shall reflect a five percent
384.10increase for the specified services for the period beginning July 1, 2014.
384.11(d) Counties shall increase the budget for each recipient of consumer-directed
384.12community supports by the amounts in paragraph (a) on the effective dates in paragraph (a).
384.13(e) To implement this section, the commissioner shall increase service rates in the
384.14disability waiver payment system authorized in Minnesota Statutes, sections 256B.4913
384.15and 256B.4914.
384.16(f) To receive the rate increase described in this section, providers under paragraphs
384.17(a) and (b) must submit to the commissioner documentation that identifies a quality
384.18improvement project that the provider will implement by June 30, 2015. Documentation
384.19must be provided in a format specified by the commissioner. Projects must:
384.20(1) improve the quality of life of home and community-based services recipients in
384.21a meaningful way;
384.22(2) improve the quality of services in a measurable way; or
384.23(3) deliver good quality service more efficiently while using the savings to enhance
384.24services for the participants served.
384.25Providers listed in paragraph (b), clauses (7), (9), (10), and (13) to (26), are not subject
384.26to this requirement.
384.27(g) For a provider that fails to submit documentation described in paragraph (f) by
384.28a date or in a format specified by the commissioner, the commissioner shall reduce the
384.29provider's rate by one percent effective January 1, 2015.
384.30(h) Providers that receive a rate increase under this subdivision shall use 75 percent
384.31of the rate increase to increase compensation-related costs for employees directly
384.32employed by the facility on or after the effective date of the rate adjustments, except:
384.33(1) persons employed in the central office of a corporation or entity that has an
384.34ownership interest in the facility or exercises control over the facility; and
384.35(2) persons paid by the facility under a management contract.
384.36This requirement is subject to audit by the commissioner.
385.1(i) Compensation-related costs include:
385.2(1) wages and salaries;
385.3(2) the employer's share of FICA taxes, Medicare taxes, state and federal
385.4unemployment taxes, workers' compensation, and mileage reimbursement;
385.5(3) the employer's share of health and dental insurance, life insurance, disability
385.6insurance, long-term care insurance, uniform allowance, pensions, and contributions to
385.7employee retirement accounts; and
385.8(4) other benefits provided and workforce needs, including the recruiting and
385.9training of employees as specified in the distribution plan required under paragraph (l).
385.10(j) For public employees, the increase for wages and benefits for certain staff is
385.11available and pay rates must be increased only to the extent that the increases comply with
385.12laws governing public employees' collective bargaining. Money received by a provider
385.13for pay increases for public employees under this section may be used only for increases
385.14implemented within one month of the effective date of the rate increase and must not be
385.15used for increases implemented prior to that date.
385.16(k) For a provider that has employees that are represented by an exclusive bargaining
385.17representative, the provider shall obtain a letter of acceptance of the distribution plan, in
385.18regard to the members of the bargaining unit, signed by the exclusive bargaining agent.
385.19Upon receipt of the letter of acceptance, the provider shall be deemed to have met all the
385.20requirements of this section in regard to the members of the bargaining unit. The provider
385.21shall produce the letter of acceptance for the commissioner upon request.
385.22(l) A provider that receives a rate adjustment under paragraph (b) that is subject to
385.23paragraphs (h) and (i) shall prepare and produce for the commissioner, upon request, a
385.24plan that specifies the amount of money the provider expects to receive that is subject to
385.25the requirements of paragraphs (h) and (i), as well as how that money will be distributed
385.26to increase compensation for employees. The commissioner may recover funds from a
385.27facility that fails to comply with this requirement.
385.28(m) Within six months after the effective date of the rate adjustment, the provider
385.29shall post the distribution plan required under paragraph (l) for a period of at least six
385.30weeks in an area of the provider's operation to which all eligible employees have access,
385.31and shall provide instructions for employees who believe they have not received the
385.32wage and other compensation-related increases specified in the distribution plan. These
385.33instructions must include a mailing address, e-mail address, and telephone number that
385.34an employee may use to contact the commissioner or the commissioner's representative.
385.35Providers shall make assurances to the commissioner of compliance with this section
385.36using forms prescribed by the commissioner.

386.1    Sec. 56. REVISOR'S INSTRUCTION.
386.2(a) In each section of Minnesota Statutes or part of Minnesota Rules referred to
386.3in column A, the revisor of statutes shall delete the word or phrase in column B and
386.4insert the phrase in column C. The revisor shall also make related grammatical changes
386.5and changes in headnotes.

386.6	Column A	Column B	Column C
386.7 386.8	section 158.13	defective persons	persons with developmental disabilities
386.9 386.10	section 158.14	defective persons	persons with developmental disabilities
386.11 386.12	section 158.17	defective persons	persons with developmental disabilities
386.13 386.14	section 158.18	persons not defective	persons without developmental disabilities
386.15 386.16		defective person	person with developmental disabilities
386.17 386.18		defective persons	persons with developmental disabilities
386.19 386.20	section 158.19	defective	person with developmental disabilities
386.21 386.22	section 256.94	defective	children with developmental disabilities and
386.23 386.24	section 257.175	defective	children with developmental disabilities and
386.25	part 2911.1350	retardation	developmental disability

386.26(b) The revisor of statutes shall change the term "health and safety" to "health and
386.27welfare" in the following statutes: Minnesota Statutes, sections 245D.03, 245D.061,
386.28245D.071, 245D.10, 245D.11, 245D.31, 256B.0915, and 256B.092.


386.31    Section 1. Minnesota Statutes 2013 Supplement, section 16A.724, subdivision 2,
386.32is amended to read:
386.33    Subd. 2. Transfers. (a) Notwithstanding section 295.581, to the extent available
386.34resources in the health care access fund exceed expenditures in that fund, effective for
386.35the biennium beginning July 1, 2007, the commissioner of management and budget shall
386.36transfer the excess funds from the health care access fund to the general fund on June 30
386.37of each year, provided that the amount transferred in any fiscal biennium shall not exceed
386.38$96,000,000. The purpose of this transfer is to meet the rate increase required under Laws
386.392003, First Special Session chapter 14, article 13C, section 2, subdivision 6.
387.1    (b) For fiscal years 2006 to 2011 year 2018 and thereafter, MinnesotaCare shall be a
387.2forecasted program, and, if necessary, the commissioner shall reduce these transfers from
387.3the health care access fund to the general fund to meet annual MinnesotaCare expenditures
387.4or, if necessary, transfer sufficient funds from the general fund to the health care access
387.5fund to meet annual MinnesotaCare expenditures.
387.6(c) Notwithstanding section 295.581, to the extent available resources in the health
387.7care access fund exceed expenditures in that fund after the transfer required in paragraph
387.8(a), effective for the biennium beginning July 1, 2013, the commissioner of management
387.9and budget shall transfer $1,000,000 each fiscal year from the health access fund to
387.10the medical education and research costs fund established under section 62J.692, for
387.11distribution under section 62J.692, subdivision 4, paragraph (c).

387.12    Sec. 2. Minnesota Statutes 2012, section 254B.12, is amended to read:
387.13254B.12 RATE METHODOLOGY.
387.14    Subdivision 1. CCDTF rate methodology established. The commissioner shall
387.15establish a new rate methodology for the consolidated chemical dependency treatment
387.16fund. The new methodology must replace county-negotiated rates with a uniform
387.17statewide methodology that must include a graduated reimbursement scale based on the
387.18patients' level of acuity and complexity. At least biennially, the commissioner shall review
387.19the financial information provided by vendors to determine the need for rate adjustments.
387.20    Subd. 2. Payment methodology for highly specialized vendors. (a)
387.21Notwithstanding subdivision 1, the commissioner shall seek federal authority to develop
387.22a separate payment methodology for chemical dependency treatment services provided
387.23under the consolidated chemical dependency treatment fund for persons who have been
387.24civilly committed to the commissioner, present the most complex and difficult care needs,
387.25and are a potential threat to the community. This payment methodology is effective
387.26for services provided on or after October 1, 2015, or on or after the receipt of federal
387.27approval, whichever is later.
387.28(b) Before implementing an approved payment methodology under paragraph
387.29(a), the commissioner must also receive any necessary legislative approval of required
387.30changes to state law or funding.

387.31    Sec. 3. Minnesota Statutes 2012, section 256I.04, subdivision 2b, is amended to read:
387.32    Subd. 2b. Group residential housing agreements. (a) Agreements between county
387.33agencies and providers of group residential housing must be in writing and must specify
387.34the name and address under which the establishment subject to the agreement does
388.1business and under which the establishment, or service provider, if different from the
388.2group residential housing establishment, is licensed by the Department of Health or the
388.3Department of Human Services; the specific license or registration from the Department
388.4of Health or the Department of Human Services held by the provider and the number
388.5of beds subject to that license; the address of the location or locations at which group
388.6residential housing is provided under this agreement; the per diem and monthly rates that
388.7are to be paid from group residential housing funds for each eligible resident at each
388.8location; the number of beds at each location which are subject to the group residential
388.9housing agreement; whether the license holder is a not-for-profit corporation under section
388.10501(c)(3) of the Internal Revenue Code; and a statement that the agreement is subject to
388.11the provisions of sections 256I.01 to 256I.06 and subject to any changes to those sections.
388.12Group residential housing agreements may be terminated with or without cause by either
388.13the county or the provider with two calendar months prior notice.
388.14(b) The commissioner may enter directly into an agreement with a provider serving
388.15veterans who meet the eligibility criteria of this section and reside in a setting according to
388.16subdivision 2a, located in Stearns County. Responsibility for monitoring and oversight of
388.17this setting shall remain with Stearns County. This agreement may be terminated with
388.18or without cause by either the commissioner or the provider with two calendar months
388.19prior notice. This agreement shall be subject to the requirements of county agreements
388.20and negotiated rates in subdivisions 1, paragraphs (a) and (b), and 2, and sections 256I.05,
388.21subdivisions 1 and 1c, and 256I.06, subdivision 7.
388.22EFFECTIVE DATE.This section is effective July 1, 2015.

388.23    Sec. 4. Minnesota Statutes 2012, section 256I.05, subdivision 2, is amended to read:
388.24    Subd. 2. Monthly rates; exemptions. The maximum group residential housing rate
388.25does not apply This subdivision applies to a residence that on August 1, 1984, was licensed
388.26by the commissioner of health only as a boarding care home, certified by the commissioner
388.27of health as an intermediate care facility, and licensed by the commissioner of human
388.28services under Minnesota Rules, parts 9520.0500 to 9520.0690. Notwithstanding the
388.29provisions of subdivision 1c, the rate paid to a facility reimbursed under this subdivision
388.30shall be determined under section 256B.431, or under section 256B.434 if the facility is
388.31accepted by the commissioner for participation in the alternative payment demonstration
388.32project. The rate paid to this facility shall also include adjustments to the group residential
388.33housing rate according to subdivision 1, and any adjustments applicable to supplemental
388.34service rates statewide.

389.1    Sec. 5. CIVIL COMMITMENT TRAINING PROGRAM.
389.2The commissioner of human services shall develop an online training program for
389.3interested individuals and personnel, specifically county and hospital staff and mental
389.4health providers, to understand, clarify, and interpret the Civil Commitment Act under
389.5Minnesota Statutes, chapter 253B, as it pertains to persons with mental illnesses. The
389.6training must be developed in collaboration with the ombudsman for mental health
389.7and developmental disabilities, Minnesota County Attorneys Association, National
389.8Alliance on Mental Illness of Minnesota, Mental Health Consumer/Survivor Network
389.9of Minnesota, State Advisory Council on Mental Health, Mental Health Association,
389.10Minnesota Psychiatric Society, Hennepin Commitment Defense Panel, Minnesota
389.11Disability Law Center, Minnesota Association of Community Mental Health Programs,
389.12Minnesota Hospital Association, and Minnesota Board of Public Defense. The purpose of
389.13the training is to promote better clarity and interpretation of the civil commitment laws.

389.14    Sec. 6. DIRECTION TO COMMISSIONER; REPORT ON PROGRAM
389.15WAITING LISTS.
389.16In preparing background materials for the 2016-2017 biennium, the commissioner
389.17of human services shall prepare a listing of all of the waiting lists for services that the
389.18department oversees and directs. The listing shall identify the number of persons on those
389.19waiting lists as of October 1, 2014, an estimate of the cost of serving them based on
389.20current average costs, and an estimate of the number of jobs that would be created given
389.21current average levels of staffing if the waiting list were eliminated. The commissioner
389.22is encouraged to engage postsecondary students in the assembly, analysis, and reporting
389.23of this information. The information shall be provided to the governor, the chairs and
389.24ranking minority members of the legislative committees with jurisdiction over health and
389.25human services policy and finance, and the Legislative Reference Library in electronic
389.26form by December 1, 2014.

389.27    Sec. 7. MENTALLY ILL OFFENDERS ARRESTED OR SUBJECT TO
389.28ARREST; WORKING GROUP.
389.29    Subdivision 1. Working group established; study and draft legislation required.
389.30The commissioner of human services may convene a working group to address issues
389.31related to offenders with mental illness who are arrested or subject to arrest. The working
389.32group shall consider the special needs of these offenders and determine how best to
389.33provide for these needs. Specifically, the group shall consider the efficacy of a facility
389.34that would serve as a central point for accepting, assessing, and addressing the needs of
390.1offenders with mental illness brought in by law enforcement as an alternative to arrest or
390.2following arrest. The facility would consolidate and coordinate existing resources as well
390.3as offer new resources that would provide a continuum of care addressing the immediate,
390.4short-term, and long-term needs of these offenders. The facility would do the following for
390.5these offenders: perform timely, credible, and useful mental health assessments; identify
390.6community placement opportunities; coordinate community care; make recommendations
390.7concerning pretrial release when appropriate; and, in some cases, provide direct services
390.8to offenders at the facility or in nearby jails. The working group shall establish criteria
390.9to determine which offenders may be admitted to the facility. The facility would be
390.10located in the metropolitan region and serve the needs of nearby counties. The facility
390.11would represent a partnership between the state, local units of government, and the private
390.12sector. In addition, the working group may consider how similar facilities could function
390.13in outstate areas. When studying this issue, the working group shall examine what other
390.14states have done in this area to determine what programs have been successful and use
390.15those programs as models in developing the program in Minnesota. The working group
390.16may also study and make recommendations on other ways to improve the process for
390.17addressing and assisting these offenders. The commissioner shall enter into an agreement
390.18with NAMI Minnesota to carry out the work of the working group.
390.19    Subd. 2. Membership. The commissioner shall ensure that the working group
390.20has expertise and a broad range of interests represented, including, but not limited to:
390.21prosecutors; law enforcement, including jail staff; correctional officials; probation
390.22officials; criminal defense attorneys; judges; county and city officials; mental health
390.23advocates; mental health professionals; and hospital and health care officials.
390.24    Subd. 3. Administrative issues. (a) The commissioner shall convene the first
390.25meeting of the working group by September 1, 2014. NAMI Minnesota shall provide
390.26meeting space and administrative support to the working group. The working group shall
390.27select a chair from among its members.
390.28(b) The commissioner may solicit in-kind support from work group member
390.29agencies to accomplish its assigned duties.
390.30    Subd. 4. Report required. By January 1, 2015, the working group shall submit a
390.31report to the chairs and ranking minority members of the senate and house of representatives
390.32committees and divisions having jurisdiction over human services and public safety. The
390.33report must summarize the working group's activities and include its recommendations
390.34and draft legislation. The recommendations must be specific and include estimates of the
390.35costs involved in implementing the recommendations, including the funding sources that
390.36might be used to pay for it. The working group shall explore potential funding sources
391.1at the federal, local, and private levels, and provide this information in the report. In
391.2addition, the report must include draft legislation to implement the recommendations.

391.3    Sec. 8. RECOMMENDATIONS; DRAFT LEGISLATION; IMPLEMENTATION
391.4PLAN; UNIFORM PUBLIC ASSISTANCE PROGRAM ELIGIBILITY.
391.5The commissioner of human services, in consultation with counties, tribes, and
391.6program participants, shall prepare draft legislation to implement uniform public
391.7assistance program eligibility and verification for the following programs: general
391.8assistance under Minnesota Statutes, chapter 256D; Minnesota supplemental aid under
391.9Minnesota Statutes, chapter 256D; group residential housing under Minnesota Statutes,
391.10chapter 256I; and the Minnesota family investment program under Minnesota Statutes,
391.11chapter 256J. In order to provide further uniformity and simplification of assistance
391.12programs under Minnesota Statutes, chapters 256D, 256I, and 256J, the commissioner
391.13of human services, in consultation with counties, tribes, and program participants, may
391.14prepare legislation to plan for the implementation of prospective budgeting, three-month
391.15reporting, uniform reporting, and budgeting standards. The commissioner may provide
391.16recommendations and a plan for implementation to the legislative committees with
391.17jurisdiction over health and human services policy and finance.

391.18    Sec. 9. DETOXIFICATION SERVICES; INSTRUCTIONS TO THE
391.19COMMISSIONER.
391.20The commissioner of human services shall develop a plan to include detoxification
391.21services as a covered medical assistance benefit and present the plan to the legislature
391.22by December 15, 2014.

391.25

Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.

391.26The sums shown in the columns marked "Appropriations" are added to or, if shown
391.27in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14
391.28and 15, to the agencies and for the purposes specified in this article. The appropriations
391.29are from the general fund and are available for the fiscal years indicated for each purpose.
391.30The figures "2014" and "2015" used in this article mean that the addition to or subtraction
391.31from the appropriation listed under them is available for the fiscal year ending June 30,
391.322014, or June 30, 2015, respectively. Supplemental appropriations and reductions to
392.1appropriations for the fiscal year ending June 30, 2014, are effective the day following
392.2final enactment unless a different effective date is explicit.

392.3				APPROPRIATIONS
392.4				Available for the Year
392.5				Ending June 30
392.6					2014		2015

392.7 392.8

Sec. 2. COMMISSIONER OF HUMAN SERVICES

392.9

Subdivision 1.Total Appropriation

(1,073,000)

91,753,000

392.10	Appropriations by Fund
392.11	General	(1,073,000)	89,406,000
392.12	Federal TANF	-0-	2,347,000

392.13The appropriation modifications for
392.14each purpose are shown in the following
392.15subdivisions.

392.16

Subd. 2.Central Office Operations

392.17

(a) Operations

-0-

63,000

392.18Base adjustment. The general fund base is
392.19decreased by $6,000 in fiscal years 2016 and
392.202017.

392.21

(b) Health Care

-0-

113,000

392.22Base adjustment. The general fund base is
392.23increased by $108,000 in fiscal years 2016
392.24and 2017.

392.25

(c) Continuing Care

-0-

1,084,000

392.26Base adjustment. The general fund base is
392.27increased by $156,000 in fiscal year 2016
392.28and $19,000 in fiscal year 2017.

392.29

(d) Chemical and Mental Health

-0-

115,000

392.30

Subd. 3.Forecasted Programs

392.31

(a) MFIP/DWP

393.1	Appropriations by Fund
393.2	General	-0-	122,000
393.3	Federal TANF	-0-	1,995,000

393.4

(b) Group Residential Housing

-0-

681,000

393.5

(c) Medical Assistance

(1,058,000)

80,827,000

393.6

(d) Alternative Care

-0-

965,000

393.7

Subd. 4.Grant Programs

393.8

(a) Children's Services Grants

-0-

(3,000)

393.9Base adjustment. The general fund base is
393.10increased by $9,000 in fiscal year 2017.

393.11

(b) Child and Economic Support Grants

-0-

1,669,000

393.12Safe harbor. $569,000 in fiscal year 2015
393.13from the general fund is for housing and
393.14supportive services for sexually exploited
393.15youth.
393.16Homeless youth. $1,100,000 in fiscal year
393.172015 is for purposes of Minnesota Statutes,
393.18section 256K.45.

393.19

(c) Aging and Adult Services Grants

(15,000)

1,541,000

393.20Senior nutrition. $579,000 in fiscal year
393.212015 from the general fund is for congregate
393.22dining services under Minnesota Statutes,
393.23section 256.9752.
393.24Base adjustment. The general fund base is
393.25decreased by $429,000 in fiscal year 2016
393.26and $419,000 in fiscal year 2017.

393.27

(d) Deaf and Hard-of-Hearing Grants

-0-

81,000

393.28Base adjustment. The general fund base is
393.29increased by $6,000 in fiscal years 2016 and
393.302017.

394.1

(e) Disabilities Grants

-0-

1,267,000

394.2Base adjustment. The general fund base is
394.3increased by $224,000 in fiscal year 2016
394.4and $233,000 in fiscal year 2017.

394.5

Subd. 5.State-Operated Services

394.6

(a) SOS Mental Health

-0-

881,000

394.7Civil commitments. $35,000 in fiscal year
394.82015 is for developing an online training
394.9program to help interested parties understand
394.10the civil commitment process.
394.11Base adjustment. The general fund base is
394.12increased by $213,000 in fiscal years 2016
394.13and 2017.

394.14

(b) SOS Enterprise Services

-0-

-0-

394.15Community Addiction Recovery
394.16Enterprise deficiency funding.
394.17Notwithstanding Minnesota Statutes, section
394.18254B.06, subdivision 1, $4,000,000 is
394.19transferred in fiscal years 2014 and 2015
394.20from the consolidated chemical dependency
394.21treatment fund administrative account in the
394.22special revenue fund and deposited into the
394.23enterprise fund for the Community Addiction
394.24Recovery Enterprise. This clause is effective
394.25the day following final enactment.

394.26

Subd. 6.Technical Activities

394.27

MFIP Child Care Assistance

394.28	Appropriations by Fund
394.29	Federal TANF	-0-	352,000

394.30

Sec. 3. COMMISSIONER OF HEALTH.

394.31

Subdivision 1.Total Appropriation

$

967,000

$

1,801,000

395.1	Appropriations by Fund
395.2		2014	2015
395.3	General	1,150,000	1,994,000
395.4 395.5	State Government Special Revenue	817,000	807,000
395.6	Health Care Access	(1,000,000)	(1,000,000)

395.7

Subd. 2.Health Improvement

395.8	Appropriations by Fund
395.9	General	75,000	1,819,000

395.10Poison information centers. $750,000
395.11in fiscal year 2015 from the general fund
395.12is for regional poison information centers
395.13under Minnesota Statutes, section 145.93,
395.14and is added to the base. The appropriation
395.15is (1) to enhance staffing to meet national
395.16accreditation standards; (2) for health care
395.17provider education and training; (3) for
395.18surveillance of emerging toxicology and
395.19poison issues; and (4) to cooperate with local
395.20public health officials on outreach efforts.
395.21Minority health disparity grants. $100,000
395.22in fiscal year 2014 and $475,000 in fiscal
395.23year 2015 are for the commissioner of health
395.24to begin implementing recommendations of
395.25the health equity report under Laws 2013,
395.26chapter 108, article 12, section 102. This
395.27funding is onetime and shall not become part
395.28of base funding. Funds must be distributed
395.29as follows:
395.30(1) $100,000 in fiscal year 2014 and
395.31$100,000 in fiscal year 2015 are for dementia
395.32outreach education and training grants
395.33targeting minority communities under article
395.3425, section 7;
396.1(2) $75,000 in fiscal year 2015 is for planning
396.2and conducting a training conference on
396.3immigrant and refugee mental health issues.
396.4The conference shall include an emphasis
396.5on mental health concerns in the Somali
396.6community. Conference planning shall
396.7include input from the Somali community
396.8and other stakeholders. This is a onetime
396.9appropriation;
396.10(3) up to $150,000 in fiscal year 2015 is
396.11for additional grants, including but not
396.12limited to a grant to a Somali women-led
396.13health care agency. Grantees must use
396.14community-based, participatory research to
396.15address health inequities and provide services
396.16through culturally specific, minority-centered
396.17programs; and
396.18(4) remaining funds shall be used for
396.19redesigning agency grant making to advance
396.20health equity, ensuring that health equity and
396.21the analysis of structural inequities become
396.22integral aspects of all agency divisions and
396.23programs, and awarding additional grants to
396.24address health equity issues.
396.25Safe harbor. $569,000 in fiscal year
396.262015 from the general fund is for grants
396.27for comprehensive services, including
396.28trauma-informed, culturally specific
396.29services, for sexually exploited youth. The
396.30commissioner shall use no more than 6.67
396.31percent of these funds for administration of
396.32the grants.
396.33Base level adjustment. The general fund
396.34base for fiscal year 2016 is $47,619,000.
397.1The general fund base for fiscal year 2017
397.2is $47,669,000.

397.3

Subd. 3.Policy Quality and Compliance

397.4	Appropriations by Fund
397.5	General	-0-	75,000
397.6 397.7	State Government Special Revenue	-0-	143,000
397.8	Health Care Access	(1,000,000)	(1,000,000)

397.9Legislative health care workforce
397.10commission. $75,000 in fiscal year 2015 is
397.11for the health care workforce commission
397.12in article 25, section 6. This is a onetime
397.13appropriation.
397.14Spoken language health care interpreters.
397.15$81,000 in fiscal year 2015 from the state
397.16government special revenue fund is to
397.17develop a proposal to promote health equity
397.18and quality health outcomes through changes
397.19to laws governing spoken language health
397.20care interpreters. The commissioner shall
397.21consult with spoken language health care
397.22interpreters, organizations that employ
397.23these interpreters, organizations that pay for
397.24interpreter services, health care providers
397.25who use interpreters, clients who use
397.26interpreters, and community organizations
397.27serving non-English speaking populations.
397.28The commissioner shall draft legislation
397.29and submit a report that documents the
397.30process followed and the rationale for
397.31the recommendations to the committees
397.32with jurisdiction over health and human
397.33services by January 15, 2015. In drafting the
397.34legislation and report, the commissioner must
397.35consider input received from individuals and
398.1organizations consulted and must address
398.2issues related to:
398.3(1) qualifications for spoken language health
398.4care interpreters that assure quality service to
398.5health care providers and their patients;
398.6(2) methods to support the education and
398.7skills development of spoken language health
398.8care interpreters serving Minnesotans;
398.9(3) the role of an advisory council in
398.10maintaining a quality system for spoken
398.11language health care interpreting in
398.12Minnesota;
398.13(4) management of complaints regarding
398.14spoken language health care interpreters,
398.15including investigation and enforcement
398.16actions;
398.17(5) an appropriate structure for oversight of
398.18spoken language health care interpreters,
398.19including administrative and technology
398.20requirements; and
398.21(6) other issues that address qualifications,
398.22quality, access, and affordability of spoken
398.23language interpreter services.
398.24This is a onetime appropriation.
398.25Base level adjustment. The state
398.26government special revenue fund base
398.27for fiscal years 2016 and 2017 shall be
398.28$16,529,000.

398.29

Subd. 4.Health Protection

398.30	Appropriations by Fund
398.31	General	100,000	100,000
398.32 398.33	State Government Special Revenue	817,000	648,000

399.1Healthy housing. $100,000 in fiscal years
399.22014 and 2015 from the general fund are
399.3for education and training grants under
399.4Minnesota Statutes, section 144.9513,
399.5subdivision 3, and are added to the base.

399.6

Subd. 5.Administrative Support Services

975,000

16,000

399.7	Appropriations by Fund
399.8	General	975,000	-0-
399.9 399.10	State Government Special Revenue	-0-	16,000

399.11Lawsuit settlement. In fiscal year 2014,
399.12$975,000 from the general fund is a onetime
399.13appropriation for the cost of settling the
399.14lawsuit Bearder v. State.

399.15 399.16 399.17

Sec. 4. OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES

$

100,000

$

100,000

399.18    Sec. 5. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108,
399.19article 6, section 32, is amended to read:
399.20    Sec. 6. TRANSFER.
399.21(a) The commissioner of management and budget shall transfer from the health care
399.22access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000
399.23in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal
399.24year 2017.
399.25(b) The commissioner of human services shall determine the difference between the
399.26actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds
399.27and parents and relative caretaker populations with income between 100 and 138 percent of
399.28the federal poverty guidelines and the cost of adding those populations that was estimated
399.29during the 2013 legislative session based on the data from the February 2013 forecast.
399.30(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall
399.31certify and report to the commissioner of management and budget the actual or forecasted
399.32 estimated cost difference of adding 19- and 20-year-olds and parents and relative caretaker
399.33populations with income between 100 and 138 percent of the federal poverty guidelines,
399.34as determined under paragraph (b), to the commissioner of management and budget at
400.1least four weeks prior to the release of a forecast under Minnesota Statutes, section
400.216A.103 , of each fiscal year.
400.3(d) No later than three weeks before the release of the forecast For fiscal years 2014 to
400.42017, forecasts under Minnesota Statutes, section 16A.103, prepared by the commissioner
400.5of management and budget shall reduce the include actual or estimated adjustments to
400.6health care access fund transfer transfers in paragraph (a), by the cumulative differences in
400.7costs reported by the commissioner of human services under according to paragraph (c)
400.8 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under
400.9paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year,
400.10the amount of the cumulative cost differences determined under paragraph (b) is less than
400.11the amount of the original appropriation, the appropriation for that year must be zero.
400.12(e) For each fiscal year from 2014 to 2017, the commissioner of management and
400.13budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in
400.14costs reported by the commissioner of human services under paragraph (c). If, for any
400.15fiscal year, the amount of the cumulative difference in costs reported under paragraph (c)
400.16is positive, no adjustment shall be made.
400.17EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

400.18    Sec. 6. Laws 2013, chapter 108, article 14, section 2, subdivision 5, is amended to read:

400.19

Subd. 5.Forecasted Programs

400.20The amounts that may be spent from this
400.21appropriation for each purpose are as follows:

400.22

(a) MFIP/DWP

400.23	Appropriations by Fund
400.24	General	72,583,000	76,927,000
400.25	Federal TANF	80,342,000	76,851,000

400.26

(b) MFIP Child Care Assistance

61,701,000

69,294,000

400.27

(c) General Assistance

54,787,000

56,068,000

400.28General Assistance Standard. The
400.29commissioner shall set the monthly standard
400.30of assistance for general assistance units
400.31consisting of an adult recipient who is
400.32childless and unmarried or living apart
400.33from parents or a legal guardian at $203.
401.1The commissioner may reduce this amount
401.2according to Laws 1997, chapter 85, article
401.33, section 54.
401.4Emergency General Assistance. The
401.5amount appropriated for emergency general
401.6assistance funds is limited to no more
401.7than $6,729,812 in fiscal year 2014 and
401.8$6,729,812 in fiscal year 2015. Funds
401.9to counties shall be allocated by the
401.10commissioner using the allocation method in
401.11Minnesota Statutes, section 256D.06.

401.12

(d) MN Supplemental Assistance

38,646,000

39,821,000

401.13

(e) Group Residential Housing

141,138,000

150,988,000

401.14

(f) MinnesotaCare

297,707,000

247,284,000

401.15This appropriation is from the health care
401.16access fund.

401.17

(g) Medical Assistance

401.18	Appropriations by Fund
401.19	General	4,443,768,000	4,431,612,000
401.20	Health Care Access	179,550,000	226,081,000

401.21Base Adjustment. The health care access
401.22fund base is $221,035,000 in fiscal year 2016
401.23and $221,035,000 in fiscal year 2017.
401.24Spending to be apportioned. The
401.25commissioner shall apportion expenditures
401.26under this paragraph consistent with the
401.27requirements of section 12.
401.28Support Services for Deaf and
401.29Hard-of-Hearing. $121,000 in fiscal
401.30year 2014 and $141,000 in fiscal year 2015;
401.31and $10,000 in fiscal year 2014 and $13,000
401.32in fiscal year 2015 are from the health care
401.33access fund for the hospital reimbursement
402.1increase in Minnesota Statutes, section
402.2256.969, subdivision 29 , paragraph (b).
402.3Disproportionate Share Payments.
402.4Effective for services provided on or after
402.5July 1, 2011, through June 30, 2015, the
402.6commissioner of human services shall
402.7deposit, in the health care access fund,
402.8additional federal matching funds received
402.9under Minnesota Statutes, section 256B.199,
402.10paragraph (e), as disproportionate share
402.11hospital payments for inpatient hospital
402.12services provided under MinnesotaCare to
402.13lawfully present noncitizens who are not
402.14eligible for MinnesotaCare with federal
402.15financial participation due to immigration
402.16status. The amount deposited shall not exceed
402.17$2,200,000 for the time period specified.
402.18Funding for Services Provided to EMA
402.19Recipients. $2,200,000 in fiscal year 2014 is
402.20from the health care access fund to provide
402.21services to emergency medical assistance
402.22recipients under Minnesota Statutes, section
402.23256B.06, subdivision 4 , paragraph (l). This
402.24is a onetime appropriation and is available in
402.25either year of the biennium.

402.26

(h) Alternative Care

50,776,000

54,922,000

402.27Alternative Care Transfer. Any money
402.28allocated to the alternative care program that
402.29is not spent for the purposes indicated does
402.30not cancel but shall be transferred to the
402.31medical assistance account.

402.32

(i) CD Treatment Fund

81,440,000

74,875,000

402.33Balance Transfer. The commissioner must
402.34transfer $18,188,000 from the consolidated
403.1chemical dependency treatment fund to the
403.2general fund by September 30, 2013.
403.3EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

403.4    Sec. 7. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by
403.5Laws 2013, chapter 144, section 25, is amended to read:

403.6

Subd. 6.Grant Programs

403.7The amounts that may be spent from this
403.8appropriation for each purpose are as follows:

403.9

(a) Support Services Grants

403.10	Appropriations by Fund
403.11	General	8,915,000	13,333,000
403.12	Federal TANF	94,611,000	94,611,000

403.13Paid Work Experience. $2,168,000
403.14each year in fiscal years 2015 and 2016
403.15is from the general fund for paid work
403.16experience for long-term MFIP recipients.
403.17Paid work includes full and partial wage
403.18subsidies and other related services such as
403.19job development, marketing, preworksite
403.20training, job coaching, and postplacement
403.21services. These are onetime appropriations.
403.22Unexpended funds for fiscal year 2015 do not
403.23cancel, but are available to the commissioner
403.24for this purpose in fiscal year 2016.
403.25Work Study Funding for MFIP
403.26Participants. $250,000 each year in fiscal
403.27years 2015 and 2016 is from the general fund
403.28to pilot work study jobs for MFIP recipients
403.29in approved postsecondary education
403.30programs. This is a onetime appropriation.
403.31Unexpended funds for fiscal year 2015 do
403.32not cancel, but are available for this purpose
403.33in fiscal year 2016.
404.1Local Strategies to Reduce Disparities.
404.2$2,000,000 each year in fiscal years 2015
404.3and 2016 is from the general fund for
404.4local projects that focus on services for
404.5subgroups within the MFIP caseload
404.6who are experiencing poor employment
404.7outcomes. These are onetime appropriations.
404.8Unexpended funds for fiscal year 2015 do not
404.9cancel, but are available to the commissioner
404.10for this purpose in fiscal year 2016.
404.11Home Visiting Collaborations for MFIP
404.12Teen Parents. $200,000 per year in fiscal
404.13years 2014 and 2015 is from the general fund
404.14and $200,000 in fiscal year 2016 is from the
404.15federal TANF fund for technical assistance
404.16and training to support local collaborations
404.17that provide home visiting services for
404.18MFIP teen parents. The general fund
404.19appropriation is onetime. The federal TANF
404.20fund appropriation is added to the base.
404.21Performance Bonus Funds for Counties.
404.22The TANF fund base is increased by
404.23$1,500,000 each year in fiscal years 2016
404.24and 2017. The commissioner must allocate
404.25this amount each year to counties that exceed
404.26their expected range of performance on the
404.27annualized three-year self-support index
404.28as defined in Minnesota Statutes, section
404.29256J.751, subdivision 2 , clause (6). This is a
404.30permanent base adjustment. Notwithstanding
404.31any contrary provisions in this article, this
404.32provision expires June 30, 2016.
404.33Base Adjustment. The general fund base is
404.34decreased by $200,000 in fiscal year 2016
404.35and $4,618,000 in fiscal year 2017. The
405.1TANF fund base is increased by $1,700,000
405.2in fiscal years 2016 and 2017.

405.3 405.4

(b) Basic Sliding Fee Child Care Assistance Grants

36,836,000

42,318,000

405.5Base Adjustment. The general fund base is
405.6increased by $3,778,000 in fiscal year 2016
405.7and by $3,849,000 in fiscal year 2017.

405.8

(c) Child Care Development Grants

1,612,000

1,737,000

405.9

(d) Child Support Enforcement Grants

50,000

50,000

405.10Federal Child Support Demonstration
405.11Grants. Federal administrative
405.12reimbursement resulting from the federal
405.13child support grant expenditures authorized
405.14under United States Code, title 42, section
405.151315, is appropriated to the commissioner
405.16for this activity.

405.17

(e) Children's Services Grants

405.18	Appropriations by Fund
405.19	General	49,760,000	52,961,000
405.20	Federal TANF	140,000	140,000

405.21Adoption Assistance and Relative Custody
405.22Assistance. $37,453,000 $36,456,000
405.23 in fiscal year 2014 and $37,453,000
405.24 $36,855,000 in fiscal year 2015 is for the
405.25adoption assistance and relative custody
405.26assistance programs. The commissioner
405.27shall determine with the commissioner of
405.28Minnesota Management and Budget the
405.29appropriation for Northstar Care for Children
405.30effective January 1, 2015. The commissioner
405.31may transfer appropriations for adoption
405.32assistance, relative custody assistance, and
405.33Northstar Care for Children between fiscal
405.34years and among programs to adjust for
405.35transfers across the programs.
406.1Title IV-E Adoption Assistance. Additional
406.2federal reimbursements to the state as a result
406.3of the Fostering Connections to Success
406.4and Increasing Adoptions Act's expanded
406.5eligibility for Title IV-E adoption assistance
406.6are appropriated for postadoption services,
406.7including a parent-to-parent support network.
406.8Privatized Adoption Grants. Federal
406.9reimbursement for privatized adoption grant
406.10and foster care recruitment grant expenditures
406.11is appropriated to the commissioner for
406.12adoption grants and foster care and adoption
406.13administrative purposes.
406.14Adoption Assistance Incentive Grants.
406.15Federal funds available during fiscal years
406.162014 and 2015 for adoption incentive grants
406.17are appropriated for postadoption services,
406.18including a parent-to-parent support network.
406.19Base Adjustment. The general fund base is
406.20increased by $5,913,000 in fiscal year 2016
406.21and by $10,297,000 in fiscal year 2017.

406.22

(f) Child and Community Service Grants

53,301,000

53,301,000

406.23

(g) Child and Economic Support Grants

21,047,000

20,848,000

406.24Minnesota Food Assistance Program.
406.25Unexpended funds for the Minnesota food
406.26assistance program for fiscal year 2014 do
406.27not cancel but are available for this purpose
406.28in fiscal year 2015.
406.29Transitional Housing. $250,000 each year
406.30is for the transitional housing programs under
406.31Minnesota Statutes, section 256E.33.
406.32Emergency Services. $250,000 each year
406.33is for emergency services grants under
406.34Minnesota Statutes, section 256E.36.
407.1Family Assets for Independence. $250,000
407.2each year is for the Family Assets for
407.3Independence Minnesota program. This
407.4appropriation is available in either year of the
407.5biennium and may be transferred between
407.6fiscal years.
407.7Food Shelf Programs. $375,000 in fiscal
407.8year 2014 and $375,000 in fiscal year
407.92015 are for food shelf programs under
407.10Minnesota Statutes, section 256E.34. If the
407.11appropriation for either year is insufficient,
407.12the appropriation for the other year is
407.13available for it. Notwithstanding Minnesota
407.14Statutes, section 256E.34, subdivision 4, no
407.15portion of this appropriation may be used
407.16by Hunger Solutions for its administrative
407.17expenses, including but not limited to rent
407.18and salaries.
407.19Homeless Youth Act. $2,000,000 in fiscal
407.20year 2014 and $2,000,000 in fiscal year 2015
407.21is for purposes of Minnesota Statutes, section
407.22256K.45 .
407.23Safe Harbor Shelter and Housing.
407.24$500,000 in fiscal year 2014 and $500,000 in
407.25fiscal year 2015 is for a safe harbor shelter
407.26and housing fund for housing and supportive
407.27services for youth who are sexually exploited.
407.28High-risk adults. $200,000 in fiscal
407.29year 2014 is for a grant to the nonprofit
407.30organization selected to administer the
407.31demonstration project for high-risk adults
407.32under Laws 2007, chapter 54, article 1,
407.33section 19, in order to complete the project.
407.34This is a onetime appropriation.

407.35

(h) Health Care Grants

408.1	Appropriations by Fund
408.2	General	190,000	190,000
408.3	Health Care Access	190,000	190,000

408.4Emergency Medical Assistance Referral
408.5and Assistance Grants. (a) The
408.6commissioner of human services shall
408.7award grants to nonprofit programs that
408.8provide immigration legal services based
408.9on indigency to provide legal services for
408.10immigration assistance to individuals with
408.11emergency medical conditions or complex
408.12and chronic health conditions who are not
408.13currently eligible for medical assistance
408.14or other public health care programs, but
408.15who may meet eligibility requirements with
408.16immigration assistance.
408.17(b) The grantees, in collaboration with
408.18hospitals and safety net providers, shall
408.19provide referral assistance to connect
408.20individuals identified in paragraph (a) with
408.21alternative resources and services to assist in
408.22meeting their health care needs. $100,000
408.23is appropriated in fiscal year 2014 and
408.24$100,000 in fiscal year 2015. This is a
408.25onetime appropriation.
408.26Base Adjustment. The general fund is
408.27decreased by $100,000 in fiscal year 2016
408.28and $100,000 in fiscal year 2017.

408.29

(i) Aging and Adult Services Grants

14,827,000

15,010,000

408.30Base Adjustment. The general fund is
408.31increased by $1,150,000 in fiscal year 2016
408.32and $1,151,000 in fiscal year 2017.
408.33Community Service Development
408.34Grants and Community Services Grants.
408.35Community service development grants and
409.1community services grants are reduced by
409.2$1,150,000 each year. This is a onetime
409.3reduction.

409.4

(j) Deaf and Hard-of-Hearing Grants

1,771,000

1,785,000

409.5

(k) Disabilities Grants

18,605,000

18,823,000

409.6Advocating Change Together. $310,000 in
409.7fiscal year 2014 is for a grant to Advocating
409.8Change Together (ACT) to maintain and
409.9promote services for persons with intellectual
409.10and developmental disabilities throughout
409.11the state. This appropriation is onetime. Of
409.12this appropriation:
409.13(1) $120,000 is for direct costs associated
409.14with the delivery and evaluation of
409.15peer-to-peer training programs administered
409.16throughout the state, focusing on education,
409.17employment, housing, transportation, and
409.18voting;
409.19(2) $100,000 is for delivery of statewide
409.20conferences focusing on leadership and
409.21skill development within the disability
409.22community; and
409.23(3) $90,000 is for administrative and general
409.24operating costs associated with managing
409.25or maintaining facilities, program delivery,
409.26staff, and technology.
409.27Base Adjustment. The general fund base
409.28is increased by $535,000 in fiscal year 2016
409.29and by $709,000 in fiscal year 2017.

409.30

(l) Adult Mental Health Grants

409.31	Appropriations by Fund
409.32	General	71,199,000	69,530,000
409.33	Health Care Access	750,000	750,000
409.34	Lottery Prize	1,733,000	1,733,000

410.1Compulsive Gambling Treatment. Of the
410.2general fund appropriation, $602,000 in
410.3fiscal year 2014 and $747,000 in fiscal year
410.42015 are for compulsive gambling treatment
410.5under Minnesota Statutes, section 297E.02,
410.6subdivision 3 , paragraph (c).
410.7Problem Gambling. $225,000 in fiscal year
410.82014 and $225,000 in fiscal year 2015 is
410.9appropriated from the lottery prize fund for a
410.10grant to the state affiliate recognized by the
410.11National Council on Problem Gambling. The
410.12affiliate must provide services to increase
410.13public awareness of problem gambling,
410.14education and training for individuals and
410.15organizations providing effective treatment
410.16services to problem gamblers and their
410.17families, and research relating to problem
410.18gambling.
410.19Funding Usage. Up to 75 percent of a fiscal
410.20year's appropriations for adult mental health
410.21grants may be used to fund allocations in that
410.22portion of the fiscal year ending December
410.2331.
410.24Base Adjustment. The general fund base is
410.25decreased by $4,427,000 in fiscal years 2016
410.26and 2017.
410.27Mental Health Pilot Project. $230,000
410.28each year is for a grant to the Zumbro
410.29Valley Mental Health Center. The grant
410.30shall be used to implement a pilot project
410.31to test an integrated behavioral health care
410.32coordination model. The grant recipient must
410.33report measurable outcomes and savings
410.34to the commissioner of human services
411.1by January 15, 2016. This is a onetime
411.2appropriation.
411.3High-risk adults. $200,000 in fiscal
411.4year 2014 is for a grant to the nonprofit
411.5organization selected to administer the
411.6demonstration project for high-risk adults
411.7under Laws 2007, chapter 54, article 1,
411.8section 19, in order to complete the project.
411.9This is a onetime appropriation.

411.10

(m) Child Mental Health Grants

18,246,000

20,636,000

411.11Text Message Suicide Prevention
411.12Program. $625,000 in fiscal year 2014 and
411.13$625,000 in fiscal year 2015 is for a grant
411.14to a nonprofit organization to establish and
411.15implement a statewide text message suicide
411.16prevention program. The program shall
411.17implement a suicide prevention counseling
411.18text line designed to use text messaging to
411.19connect with crisis counselors and to obtain
411.20emergency information and referrals to
411.21local resources in the local community. The
411.22program shall include training within schools
411.23and communities to encourage the use of the
411.24program.
411.25Mental Health First Aid Training. $22,000
411.26in fiscal year 2014 and $23,000 in fiscal
411.27year 2015 is to train teachers, social service
411.28personnel, law enforcement, and others who
411.29come into contact with children with mental
411.30illnesses, in children and adolescents mental
411.31health first aid training.
411.32Funding Usage. Up to 75 percent of a fiscal
411.33year's appropriation for child mental health
411.34grants may be used to fund allocations in that
412.1portion of the fiscal year ending December
412.231.

412.3

(n) CD Treatment Support Grants

1,816,000

1,816,000

412.4SBIRT Training. (1) $300,000 each year is
412.5for grants to train primary care clinicians to
412.6provide substance abuse brief intervention
412.7and referral to treatment (SBIRT). This is a
412.8onetime appropriation. The commissioner of
412.9human services shall apply to SAMHSA for
412.10an SBIRT professional training grant.
412.11(2) If the commissioner of human services
412.12receives a grant under clause (1) funds
412.13appropriated under this clause, equal to
412.14the grant amount, up to the available
412.15appropriation, shall be transferred to the
412.16Minnesota Organization on Fetal Alcohol
412.17Syndrome (MOFAS). MOFAS must use
412.18the funds for grants. Grant recipients must
412.19be selected from communities that are
412.20not currently served by federal Substance
412.21Abuse Prevention and Treatment Block
412.22Grant funds. Grant money must be used to
412.23reduce the rates of fetal alcohol syndrome
412.24and fetal alcohol effects, and the number of
412.25drug-exposed infants. Grant money may be
412.26used for prevention and intervention services
412.27and programs, including, but not limited to,
412.28community grants, professional eduction,
412.29public awareness, and diagnosis.
412.30Fetal Alcohol Syndrome Grant. $180,000
412.31each year from the general fund is for a
412.32grant to the Minnesota Organization on Fetal
412.33Alcohol Syndrome (MOFAS) to support
412.34nonprofit Fetal Alcohol Spectrum Disorders
412.35(FASD) outreach prevention programs
413.1in Olmsted County. This is a onetime
413.2appropriation.
413.3Base Adjustment. The general fund base is
413.4decreased by $480,000 in fiscal year 2016
413.5and $480,000 in fiscal year 2017.
413.6EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

413.7    Sec. 8. Laws 2013, chapter 108, article 14, section 3, subdivision 1, is amended to read:

413.8 413.9

Subdivision 1.Total Appropriation

$

169,326,000 169,026,000

$

165,531,000 165,231,000

413.10	Appropriations by Fund
413.11		2014	2015
413.12	General	79,476,000	74,256,000
413.13 413.14	State Government Special Revenue	48,094,000	50,119,000
413.15	Health Care Access	29,743,000	29,143,000
413.16	Federal TANF	11,713,000	11,713,000
413.17	Special Revenue	300,000	300,000

413.18The amounts that may be spent for each
413.19purpose are specified in the following
413.20subdivisions.

413.21    Sec. 9. Laws 2013, chapter 108, article 14, section 3, subdivision 4, is amended to read:

413.22

Subd. 4.Health Protection

413.23	Appropriations by Fund
413.24	General	9,201,000	9,201,000
413.25 413.26	State Government Special Revenue	32,633,000	32,636,000
413.27	Special Revenue	300,000	300,000

413.28Infectious Disease Laboratory. Of the
413.29general fund appropriation, $200,000 in
413.30fiscal year 2014 and $200,000 in fiscal year
413.312015 are to monitor infectious disease trends
413.32and investigate infectious disease outbreaks.
413.33Surveillance for Elevated Blood Lead
413.34Levels. Of the general fund appropriation,
414.1$100,000 in fiscal year 2014 and $100,000
414.2in fiscal year 2015 are for the blood lead
414.3surveillance system under Minnesota
414.4Statutes, section 144.9502.
414.5Base Level Adjustment. The state
414.6government special revenue base is increased
414.7by $6,000 in fiscal year 2016 and by $13,000
414.8in fiscal year 2017.

414.9    Sec. 10. Laws 2013, chapter 108, article 14, section 4, subdivision 8, is amended to read:

414.10 414.11

Subd. 8.Board of Nursing Home Administrators

3,742,000

2,252,000

414.12Administrative Services Unit - Operating
414.13Costs. Of this appropriation, $676,000
414.14in fiscal year 2014 and $626,000 in
414.15fiscal year 2015 are for operating costs
414.16of the administrative services unit. The
414.17administrative services unit may receive
414.18and expend reimbursements for services
414.19performed by other agencies.
414.20Administrative Services Unit - Volunteer
414.21Health Care Provider Program. Of this
414.22appropriation, $150,000 in fiscal year 2014
414.23and $150,000 in fiscal year 2015 are to pay
414.24for medical professional liability coverage
414.25required under Minnesota Statutes, section
414.26214.40 .
414.27Administrative Services Unit - Contested
414.28Cases and Other Legal Proceedings. Of
414.29this appropriation, $200,000 in fiscal year
414.302014 and $200,000 in fiscal year 2015 are
414.31for costs of contested case hearings and other
414.32unanticipated costs of legal proceedings
414.33involving health-related boards funded
414.34under this section. Upon certification of a
415.1health-related board to the administrative
415.2services unit that the costs will be incurred
415.3and that there is insufficient money available
415.4to pay for the costs out of money currently
415.5available to that board, the administrative
415.6services unit is authorized to transfer money
415.7from this appropriation to the board for
415.8payment of those costs with the approval
415.9of the commissioner of management and
415.10budget. This appropriation does not cancel
415.11and is available until expended.
415.12This appropriation includes $44,000 in
415.13fiscal year 2014 for rulemaking. This is
415.14a onetime appropriation. $1,441,000 in
415.15fiscal year 2014 and $420,000 in fiscal year
415.162015 are for the development of a shared
415.17disciplinary, regulatory, licensing, and
415.18information management system. $391,000
415.19in fiscal year 2014 is a onetime appropriation
415.20for retirement costs in the health-related
415.21boards. This funding may be transferred to
415.22the health boards incurring retirement costs.
415.23These funds are available either year of the
415.24biennium.
415.25This appropriation includes $16,000 in fiscal
415.26years 2014 and 2015 for evening security,
415.27$2,000 in fiscal years 2014 and 2015 for a
415.28state vehicle lease, and $18,000 in fiscal
415.29years 2014 and 2015 for shared office space
415.30and administrative support. $205,000 in
415.31fiscal year 2014 and $221,000 in fiscal year
415.322015 are for shared information technology
415.33services, equipment, and maintenance.
415.34The remaining balance of the state
415.35government special revenue fund
416.1appropriation in Laws 2011, First Special
416.2Session chapter 9, article 10, section 8,
416.3subdivision 8, for Board of Nursing Home
416.4Administrators rulemaking, estimated to
416.5be $44,000, is canceled, and the remaining
416.6balance of the state government special
416.7revenue fund appropriation in Laws 2011,
416.8First Special Session chapter 9, article 10,
416.9section 8, subdivision 8, for electronic
416.10licensing system adaptors, estimated to be
416.11$761,000, and for the development and
416.12implementation of a disciplinary, regulatory,
416.13licensing, and information management
416.14system, estimated to be $1,100,000, are
416.15canceled. This paragraph is effective the day
416.16following final enactment.
416.17Base Adjustment. The base is decreased by
416.18$370,000 in fiscal years 2016 and 2017.
416.19EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

416.20    Sec. 11. Laws 2013, chapter 108, article 14, section 12, is amended to read:
416.21    Sec. 12. APPROPRIATION ADJUSTMENTS.
416.22(a) The general fund appropriation in section 2, subdivision 5, paragraph (g),
416.23includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015;
416.24$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical
416.25assistance eligibility and administration changes related to:
416.26(1) eligibility for children age two to 18 with income up to 275 percent of the federal
416.27poverty guidelines;
416.28(2) eligibility for pregnant women with income up to 275 percent of the federal
416.29poverty guidelines;
416.30(3) Affordable Care Act enrollment and renewal processes, including elimination
416.31of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes
416.32in verification requirements, and other changes in the eligibility determination and
416.33enrollment and renewal process;
416.34(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;
417.1(5) eligibility related to spousal impoverishment provisions for waiver recipients; and
417.2(6) presumptive eligibility determinations by hospitals.
417.3(b) the commissioner of human services shall determine the difference between the
417.4actual or forecasted estimated costs to the medical assistance program attributable to
417.5the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a),
417.6clauses (1) to (6), that were estimated during the 2013 legislative session based on data
417.7from the 2013 February forecast. The costs in this paragraph must be calculated between
417.8January 1, 2014, and June 30, 2017.
417.9(c) For each fiscal year from 2014 to 2017, the commissioner of human services
417.10shall certify the actual or forecasted estimated cost differences to the medical assistance
417.11program determined under paragraph (b), and report the difference in costs to the
417.12commissioner of management and budget at least four weeks prior to a forecast under
417.13Minnesota Statutes, section 16A.103. No later than three weeks before the release of
417.14the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section
417.1516A.103 , prepared by the commissioner of management and budget shall reduce include
417.16actual or estimated adjustments to the health care access fund appropriation in section
417.172, subdivision 5, paragraph (g), by the cumulative difference in costs determined in
417.18 according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost
417.19differences determined under paragraph (b) is positive, no adjustment shall be made to the
417.20health care access fund appropriation. If for any fiscal year, the amount of the cumulative
417.21cost differences determined under paragraph (b) is less than the original appropriation, the
417.22appropriation for that fiscal year is zero.
417.23(d) For each fiscal year from 2014 to 2017, the commissioner of management and
417.24budget must adjust the health care access fund appropriation by the cumulative difference
417.25in costs reported by the commissioner of human services under paragraph (b). If, for any
417.26fiscal year, the amount of the cumulative difference in costs determined under paragraph
417.27(b) is positive, no adjustment shall be made to the health care access fund appropriation.
417.28(e) This section expires on January 1, 2018.
417.29EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

417.30    Sec. 12. EXPIRATION OF UNCODIFIED LANGUAGE.
417.31All uncodified language in this article expires on June 30, 2015, unless a different
417.32expiration date is specified.

418.3

Section 1. HUMAN SERVICES APPROPRIATION.

418.4The sums shown in the columns marked "Appropriations" are added to or, if shown
418.5in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article
418.614, from the general fund or any fund named to the Department of Human Services for
418.7the purposes specified in this article, to be available for the fiscal year indicated for each
418.8purpose. The figures "2014" and "2015" used in this article mean that the appropriations
418.9listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015,
418.10respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
418.11"The biennium" is fiscal years 2014 and 2015.

418.12				APPROPRIATIONS
418.13				Available for the Year
418.14				Ending June 30
418.15					2014		2015

418.16 418.17

Sec. 2. COMMISSIONER OF HUMAN SERVICES

418.18

Subdivision 1.Total Appropriation

$

(196,927)

$

64,288

418.19	Appropriations by Fund
418.20	General Fund	(153,497)	(25,282)
418.21 418.22	Health Care Access Fund	(36,533)	91,294
418.23	Federal TANF	(6,897)	(1,724)

418.24

Subd. 2.Forecasted Programs

418.25

(a) MFIP/DWP

418.26	Appropriations by Fund
418.27	General Fund	3,571	173
418.28	Federal TANF	(6,475)	(1,298)

418.29

(b) MFIP Child Care Assistance

(684)

11,114

418.30

(c) General Assistance

(2,569)

(1,940)

418.31

(d) Minnesota Supplemental Aid

(690)

(614)

418.32

(e) Group Residential Housing

250

(1,740)

418.33

(f) MinnesotaCare

(34,838)

96,340

419.1These appropriations are from the health care
419.2access fund.

419.3

(g) Medical Assistance

419.4	Appropriations by Fund
419.5	General Fund	(149,494)	(27,075)
419.6 419.7	Health Care Access Fund	(1,695)	(5,046)

419.8

(h) Alternative Care Program

(6,936)

(13,260)

419.9

(i) CCDTF Entitlements

3,055

8,060

419.10

Subd. 3.Technical Activities

(422)

(426)

419.11These appropriations are from the federal
419.12TANF fund.

419.13    Sec. 3. Laws 2013, chapter 108, article 14, section 2, subdivision 1, is amended to read:

419.14 419.15

Subdivision 1.Total Appropriation

$

6,438,485,000 6,437,815,000

$

6,457,117,000 6,456,311,000

419.16	Appropriations by Fund
419.17		2014	2015
419.18 419.19	General	5,654,765,000 5,654,095,000	5,677,458,000 5,676,652,000
419.20 419.21	State Government Special Revenue	4,099,000	4,510,000
419.22	Health Care Access	519,816,000	518,446,000
419.23	Federal TANF	257,915,000	254,813,000
419.24	Lottery Prize Fund	1,890,000	1,890,000

419.25Receipts for Systems Projects.
419.26Appropriations and federal receipts for
419.27information systems projects for MAXIS,
419.28PRISM, MMIS, and SSIS must be deposited
419.29in the state system account authorized
419.30in Minnesota Statutes, section 256.014.
419.31Money appropriated for computer projects
419.32approved by the commissioner of Minnesota
419.33information technology services, funded
419.34by the legislature, and approved by the
419.35commissioner of management and budget,
420.1may be transferred from one project to
420.2another and from development to operations
420.3as the commissioner of human services
420.4considers necessary. Any unexpended
420.5balance in the appropriation for these
420.6projects does not cancel but is available for
420.7ongoing development and operations.
420.8Nonfederal Share Transfers. The
420.9nonfederal share of activities for which
420.10federal administrative reimbursement is
420.11appropriated to the commissioner may be
420.12transferred to the special revenue fund.
420.13ARRA Supplemental Nutrition Assistance
420.14Benefit Increases. The funds provided for
420.15food support benefit increases under the
420.16Supplemental Nutrition Assistance Program
420.17provisions of the American Recovery and
420.18Reinvestment Act (ARRA) of 2009 must be
420.19used for benefit increases beginning July 1,
420.202009.
420.21Supplemental Nutrition Assistance
420.22Program Employment and Training.
420.23(1) Notwithstanding Minnesota Statutes,
420.24sections 256D.051, subdivisions 1a, 6b,
420.25and 6c, and 256J.626, federal Supplemental
420.26Nutrition Assistance employment and
420.27training funds received as reimbursement of
420.28MFIP consolidated fund grant expenditures
420.29for diversionary work program participants
420.30and child care assistance program
420.31expenditures must be deposited in the general
420.32fund. The amount of funds must be limited to
420.33$4,900,000 per year in fiscal years 2014 and
420.342015, and to $4,400,000 per year in fiscal
421.1years 2016 and 2017, contingent on approval
421.2by the federal Food and Nutrition Service.
421.3(2) Consistent with the receipt of the federal
421.4funds, the commissioner may adjust the
421.5level of working family credit expenditures
421.6claimed as TANF maintenance of effort.
421.7Notwithstanding any contrary provision in
421.8this article, this rider expires June 30, 2017.
421.9TANF Maintenance of Effort. (a) In order
421.10to meet the basic maintenance of effort
421.11(MOE) requirements of the TANF block grant
421.12specified under Code of Federal Regulations,
421.13title 45, section 263.1, the commissioner may
421.14only report nonfederal money expended for
421.15allowable activities listed in the following
421.16clauses as TANF/MOE expenditures:
421.17(1) MFIP cash, diversionary work program,
421.18and food assistance benefits under Minnesota
421.19Statutes, chapter 256J;
421.20(2) the child care assistance programs
421.21under Minnesota Statutes, sections 119B.03
421.22and 119B.05, and county child care
421.23administrative costs under Minnesota
421.24Statutes, section 119B.15;
421.25(3) state and county MFIP administrative
421.26costs under Minnesota Statutes, chapters
421.27256J and 256K;
421.28(4) state, county, and tribal MFIP
421.29employment services under Minnesota
421.30Statutes, chapters 256J and 256K;
421.31(5) expenditures made on behalf of legal
421.32noncitizen MFIP recipients who qualify for
421.33the MinnesotaCare program under Minnesota
421.34Statutes, chapter 256L;
422.1(6) qualifying working family credit
422.2expenditures under Minnesota Statutes,
422.3section 290.0671;
422.4(7) qualifying Minnesota education credit
422.5expenditures under Minnesota Statutes,
422.6section 290.0674; and
422.7(8) qualifying Head Start expenditures under
422.8Minnesota Statutes, section 119A.50.
422.9(b) The commissioner shall ensure that
422.10sufficient qualified nonfederal expenditures
422.11are made each year to meet the state's
422.12TANF/MOE requirements. For the activities
422.13listed in paragraph (a), clauses (2) to
422.14(8), the commissioner may only report
422.15expenditures that are excluded from the
422.16definition of assistance under Code of
422.17Federal Regulations, title 45, section 260.31.
422.18(c) For fiscal years beginning with state fiscal
422.19year 2003, the commissioner shall ensure
422.20that the maintenance of effort used by the
422.21commissioner of management and budget
422.22for the February and November forecasts
422.23required under Minnesota Statutes, section
422.2416A.103 , contains expenditures under
422.25paragraph (a), clause (1), equal to at least 16
422.26percent of the total required under Code of
422.27Federal Regulations, title 45, section 263.1.
422.28(d) The requirement in Minnesota Statutes,
422.29section 256.011, subdivision 3, that federal
422.30grants or aids secured or obtained under that
422.31subdivision be used to reduce any direct
422.32appropriations provided by law, do not apply
422.33if the grants or aids are federal TANF funds.
422.34(e) For the federal fiscal years beginning on
422.35or after October 1, 2007, the commissioner
423.1may not claim an amount of TANF/MOE in
423.2excess of the 75 percent standard in Code
423.3of Federal Regulations, title 45, section
423.4263.1(a)(2), except:
423.5(1) to the extent necessary to meet the 80
423.6percent standard under Code of Federal
423.7Regulations, title 45, section 263.1(a)(1),
423.8if it is determined by the commissioner
423.9that the state will not meet the TANF work
423.10participation target rate for the current year;
423.11(2) to provide any additional amounts
423.12under Code of Federal Regulations, title 45,
423.13section 264.5, that relate to replacement of
423.14TANF funds due to the operation of TANF
423.15penalties; and
423.16(3) to provide any additional amounts that
423.17may contribute to avoiding or reducing
423.18TANF work participation penalties through
423.19the operation of the excess MOE provisions
423.20of Code of Federal Regulations, title 45,
423.21section 261.43 (a)(2).
423.22For the purposes of clauses (1) to (3),
423.23the commissioner may supplement the
423.24MOE claim with working family credit
423.25expenditures or other qualified expenditures
423.26to the extent such expenditures are otherwise
423.27available after considering the expenditures
423.28allowed in this subdivision and subdivisions
423.292 and 3.
423.30(f) Notwithstanding any contrary provision
423.31in this article, paragraphs (a) to (e) expire
423.32June 30, 2017.
423.33Working Family Credit Expenditures
423.34as TANF/MOE. The commissioner may
423.35claim as TANF maintenance of effort up to
424.1$6,707,000 per year of working family credit
424.2expenditures in each fiscal year.
424.3EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

424.4    Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 4, as amended by
424.5Laws 2013, chapter 144, section 24, is amended to read:

424.6

Subd. 4.Central Office

424.7The amounts that may be spent from this
424.8appropriation for each purpose are as follows:

424.9

(a) Operations

424.10	Appropriations by Fund
424.11	General	101,979,000	96,858,000
424.12 424.13	State Government Special Revenue	3,974,000	4,385,000
424.14	Health Care Access	13,177,000	13,004,000
424.15	Federal TANF	100,000	100,000

424.16DHS Receipt Center Accounting. The
424.17commissioner is authorized to transfer
424.18appropriations to, and account for DHS
424.19receipt center operations in, the special
424.20revenue fund.
424.21Administrative Recovery; Set-Aside. The
424.22commissioner may invoice local entities
424.23through the SWIFT accounting system as an
424.24alternative means to recover the actual cost
424.25of administering the following provisions:
424.26(1) Minnesota Statutes, section 125A.744,
424.27subdivision 3 ;
424.28(2) Minnesota Statutes, section 245.495,
424.29paragraph (b);
424.30(3) Minnesota Statutes, section 256B.0625,
424.31subdivision 20 , paragraph (k);
424.32(4) Minnesota Statutes, section 256B.0924,
424.33subdivision 6 , paragraph (g);
425.1(5) Minnesota Statutes, section 256B.0945,
425.2subdivision 4 , paragraph (d); and
425.3(6) Minnesota Statutes, section 256F.10,
425.4subdivision 6 , paragraph (b).
425.5Systems Modernization. The following
425.6amounts are appropriated for transfer to
425.7the state systems account authorized in
425.8Minnesota Statutes, section 256.014:
425.9(1) $1,825,000 in fiscal year 2014 and
425.10$2,502,000 in fiscal year 2015 is for the
425.11state share of Medicaid-allocated costs of
425.12the health insurance exchange information
425.13technology and operational structure. The
425.14funding base is $3,222,000 in fiscal year 2016
425.15and $3,037,000 in fiscal year 2017 but shall
425.16not be included in the base thereafter; and
425.17(2) $9,344,000 in fiscal year 2014 and
425.18$3,660,000 in fiscal year 2015 are for the
425.19modernization and streamlining of agency
425.20eligibility and child support systems. The
425.21funding base is $5,921,000 in fiscal year
425.222016 and $1,792,000 in fiscal year 2017 but
425.23shall not be included in the base thereafter.
425.24The unexpended balance of the $9,344,000
425.25appropriation in fiscal year 2014 and the
425.26$3,660,000 appropriation in fiscal year 2015
425.27must be transferred from the Department of
425.28Human Services state systems account to
425.29the Office of Enterprise Technology when
425.30the Office of Enterprise Technology has
425.31negotiated a federally approved internal
425.32service fund rates and billing process with
425.33sufficient internal accounting controls to
425.34properly maximize federal reimbursement
425.35to Minnesota for human services system
426.1modernization projects, but not later than
426.2June 30, 2015.
426.3If contingent funding is fully or partially
426.4disbursed under article 15, section 3, and
426.5transferred to the state systems account, the
426.6unexpended balance of that appropriation
426.7must be transferred to the Office of Enterprise
426.8Technology in accordance with this clause.
426.9Contingent funding must not exceed
426.10$11,598,000 for the biennium.
426.11Base Adjustment. The general fund base
426.12is increased by $2,868,000 in fiscal year
426.132016 and decreased by $1,206,000 in fiscal
426.14year 2017. The health access fund base is
426.15decreased by $551,000 in fiscal years 2016
426.16and 2017. The state government special
426.17revenue fund base is increased by $4,000 in
426.18fiscal year 2016 and decreased by $236,000
426.19in fiscal year 2017.

426.20

(b) Children and Families

426.21	Appropriations by Fund
426.22	General	8,023,000	8,015,000
426.23	Federal TANF	2,282,000	2,282,000

426.24Financial Institution Data Match and
426.25Payment of Fees. The commissioner is
426.26authorized to allocate up to $310,000 each
426.27year in fiscal years 2014 and 2015 from the
426.28PRISM special revenue account to make
426.29payments to financial institutions in exchange
426.30for performing data matches between account
426.31information held by financial institutions
426.32and the public authority's database of child
426.33support obligors as authorized by Minnesota
426.34Statutes, section 13B.06, subdivision 7.
427.1Base Adjustment. The general fund base is
427.2decreased by $300,000 in fiscal years 2016
427.3and 2017. The TANF fund base is increased
427.4by $300,000 in fiscal years 2016 and 2017.

427.5

(c) Health Care

427.6	Appropriations by Fund
427.7	General	14,028,000	13,826,000
427.8	Health Care Access	28,442,000	31,137,000

427.9Base Adjustment. The general fund base
427.10is decreased by $86,000 in fiscal year 2016
427.11and by $86,000 in fiscal year 2017. The
427.12health care access fund base is increased
427.13by $6,954,000 in fiscal year 2016 and by
427.14$5,489,000 in fiscal year 2017.

427.15

(d) Continuing Care

427.16	Appropriations by Fund
427.17	General	20,993,000	22,359,000
427.18 427.19	State Government Special Revenue	125,000	125,000

427.20Base Adjustment. The general fund base is
427.21increased by $1,690,000 in fiscal year 2016
427.22and by $798,000 in fiscal year 2017.

427.23

(e) Chemical and Mental Health

427.24	Appropriations by Fund
427.25 427.26	General	4,639,000 4,571,000	4,490,000 4,431,000
427.27	Lottery Prize Fund	157,000	157,000

427.28Of the general fund appropriation, $68,000
427.29in fiscal year 2014 and $59,000 in fiscal year
427.302015 are for compulsive gambling treatment
427.31under Minnesota Statutes, section 297E.02,
427.32subdivision 3, paragraph (c).
427.33EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

428.1    Sec. 5. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by
428.2Laws 2013, chapter 144, section 25, is amended to read:

428.3

Subd. 6.Grant Programs

428.4The amounts that may be spent from this
428.5appropriation for each purpose are as follows:

428.6

(a) Support Services Grants

428.7	Appropriations by Fund
428.8	General	8,915,000	13,333,000
428.9	Federal TANF	94,611,000	94,611,000

428.10Paid Work Experience. $2,168,000
428.11each year in fiscal years 2015 and 2016
428.12is from the general fund for paid work
428.13experience for long-term MFIP recipients.
428.14Paid work includes full and partial wage
428.15subsidies and other related services such as
428.16job development, marketing, preworksite
428.17training, job coaching, and postplacement
428.18services. These are onetime appropriations.
428.19Unexpended funds for fiscal year 2015 do not
428.20cancel, but are available to the commissioner
428.21for this purpose in fiscal year 2016.
428.22Work Study Funding for MFIP
428.23Participants. $250,000 each year in fiscal
428.24years 2015 and 2016 is from the general fund
428.25to pilot work study jobs for MFIP recipients
428.26in approved postsecondary education
428.27programs. This is a onetime appropriation.
428.28Unexpended funds for fiscal year 2015 do
428.29not cancel, but are available for this purpose
428.30in fiscal year 2016.
428.31Local Strategies to Reduce Disparities.
428.32$2,000,000 each year in fiscal years 2015
428.33and 2016 is from the general fund for
428.34local projects that focus on services for
428.35subgroups within the MFIP caseload
429.1who are experiencing poor employment
429.2outcomes. These are onetime appropriations.
429.3Unexpended funds for fiscal year 2015 do not
429.4cancel, but are available to the commissioner
429.5for this purpose in fiscal year 2016.
429.6Home Visiting Collaborations for MFIP
429.7Teen Parents. $200,000 per year in fiscal
429.8years 2014 and 2015 is from the general fund
429.9and $200,000 in fiscal year 2016 is from the
429.10federal TANF fund for technical assistance
429.11and training to support local collaborations
429.12that provide home visiting services for
429.13MFIP teen parents. The general fund
429.14appropriation is onetime. The federal TANF
429.15fund appropriation is added to the base.
429.16Performance Bonus Funds for Counties.
429.17The TANF fund base is increased by
429.18$1,500,000 each year in fiscal years 2016
429.19and 2017. The commissioner must allocate
429.20this amount each year to counties that exceed
429.21their expected range of performance on the
429.22annualized three-year self-support index
429.23as defined in Minnesota Statutes, section
429.24256J.751, subdivision 2 , clause (6). This is a
429.25permanent base adjustment. Notwithstanding
429.26any contrary provisions in this article, this
429.27provision expires June 30, 2016.
429.28Base Adjustment. The general fund base is
429.29decreased by $200,000 in fiscal year 2016
429.30and $4,618,000 in fiscal year 2017. The
429.31TANF fund base is increased by $1,700,000
429.32in fiscal years 2016 and 2017.

429.33 429.34

(b) Basic Sliding Fee Child Care Assistance Grants

36,836,000

42,318,000

430.1Base Adjustment. The general fund base is
430.2increased by $3,778,000 in fiscal year 2016
430.3and by $3,849,000 in fiscal year 2017.

430.4

(c) Child Care Development Grants

1,612,000

1,737,000

430.5

(d) Child Support Enforcement Grants

50,000

50,000

430.6Federal Child Support Demonstration
430.7Grants. Federal administrative
430.8reimbursement resulting from the federal
430.9child support grant expenditures authorized
430.10under United States Code, title 42, section
430.111315, is appropriated to the commissioner
430.12for this activity.

430.13

(e) Children's Services Grants

430.14	Appropriations by Fund
430.15	General	49,760,000	52,961,000
430.16	Federal TANF	140,000	140,000

430.17Adoption Assistance and Relative Custody
430.18Assistance. $37,453,000 in fiscal year 2014
430.19and $37,453,000 in fiscal year 2015 is for
430.20the adoption assistance and relative custody
430.21assistance programs. The commissioner
430.22shall determine with the commissioner of
430.23Minnesota Management and Budget the
430.24appropriation for Northstar Care for Children
430.25effective January 1, 2015. The commissioner
430.26may transfer appropriations for adoption
430.27assistance, relative custody assistance, and
430.28Northstar Care for Children between fiscal
430.29years and among programs to adjust for
430.30transfers across the programs.
430.31Title IV-E Adoption Assistance. Additional
430.32federal reimbursements to the state as a result
430.33of the Fostering Connections to Success
430.34and Increasing Adoptions Act's expanded
430.35eligibility for Title IV-E adoption assistance
431.1are appropriated for postadoption services,
431.2including a parent-to-parent support network.
431.3Privatized Adoption Grants. Federal
431.4reimbursement for privatized adoption grant
431.5and foster care recruitment grant expenditures
431.6is appropriated to the commissioner for
431.7adoption grants and foster care and adoption
431.8administrative purposes.
431.9Adoption Assistance Incentive Grants.
431.10Federal funds available during fiscal years
431.112014 and 2015 for adoption incentive grants
431.12are appropriated for postadoption services,
431.13including a parent-to-parent support network.
431.14Base Adjustment. The general fund base is
431.15increased by $5,913,000 in fiscal year 2016
431.16and by $10,297,000 in fiscal year 2017.

431.17

(f) Child and Community Service Grants

53,301,000

53,301,000

431.18

(g) Child and Economic Support Grants

21,047,000

20,848,000

431.19Minnesota Food Assistance Program.
431.20Unexpended funds for the Minnesota food
431.21assistance program for fiscal year 2014 do
431.22not cancel but are available for this purpose
431.23in fiscal year 2015.
431.24Transitional Housing. $250,000 each year
431.25is for the transitional housing programs under
431.26Minnesota Statutes, section 256E.33.
431.27Emergency Services. $250,000 each year
431.28is for emergency services grants under
431.29Minnesota Statutes, section 256E.36.
431.30Family Assets for Independence. $250,000
431.31each year is for the Family Assets for
431.32Independence Minnesota program. This
431.33appropriation is available in either year of the
432.1biennium and may be transferred between
432.2fiscal years.
432.3Food Shelf Programs. $375,000 in fiscal
432.4year 2014 and $375,000 in fiscal year
432.52015 are for food shelf programs under
432.6Minnesota Statutes, section 256E.34. If the
432.7appropriation for either year is insufficient,
432.8the appropriation for the other year is
432.9available for it. Notwithstanding Minnesota
432.10Statutes, section 256E.34, subdivision 4, no
432.11portion of this appropriation may be used
432.12by Hunger Solutions for its administrative
432.13expenses, including but not limited to rent
432.14and salaries.
432.15Homeless Youth Act. $2,000,000 in fiscal
432.16year 2014 and $2,000,000 in fiscal year 2015
432.17is for purposes of Minnesota Statutes, section
432.18256K.45 .
432.19Safe Harbor Shelter and Housing.
432.20$500,000 in fiscal year 2014 and $500,000 in
432.21fiscal year 2015 is for a safe harbor shelter
432.22and housing fund for housing and supportive
432.23services for youth who are sexually exploited.

432.24

(h) Health Care Grants

432.25	Appropriations by Fund
432.26	General	190,000	190,000
432.27	Health Care Access	190,000	190,000

432.28Emergency Medical Assistance Referral
432.29and Assistance Grants. (a) The
432.30commissioner of human services shall
432.31award grants to nonprofit programs that
432.32provide immigration legal services based
432.33on indigency to provide legal services for
432.34immigration assistance to individuals with
432.35emergency medical conditions or complex
433.1and chronic health conditions who are not
433.2currently eligible for medical assistance
433.3or other public health care programs, but
433.4who may meet eligibility requirements with
433.5immigration assistance.
433.6(b) The grantees, in collaboration with
433.7hospitals and safety net providers, shall
433.8provide referral assistance to connect
433.9individuals identified in paragraph (a) with
433.10alternative resources and services to assist in
433.11meeting their health care needs. $100,000
433.12is appropriated in fiscal year 2014 and
433.13$100,000 in fiscal year 2015. This is a
433.14onetime appropriation.
433.15Base Adjustment. The general fund is
433.16decreased by $100,000 in fiscal year 2016
433.17and $100,000 in fiscal year 2017.

433.18

(i) Aging and Adult Services Grants

14,827,000

15,010,000

433.19Base Adjustment. The general fund is
433.20increased by $1,150,000 in fiscal year 2016
433.21and $1,151,000 in fiscal year 2017.
433.22Community Service Development
433.23Grants and Community Services Grants.
433.24Community service development grants and
433.25community services grants are reduced by
433.26$1,150,000 each year. This is a onetime
433.27reduction.

433.28

(j) Deaf and Hard-of-Hearing Grants

1,771,000

1,785,000

433.29

(k) Disabilities Grants

18,605,000

18,823,000

433.30Advocating Change Together. $310,000 in
433.31fiscal year 2014 is for a grant to Advocating
433.32Change Together (ACT) to maintain and
433.33promote services for persons with intellectual
433.34and developmental disabilities throughout
434.1the state. This appropriation is onetime. Of
434.2this appropriation:
434.3(1) $120,000 is for direct costs associated
434.4with the delivery and evaluation of
434.5peer-to-peer training programs administered
434.6throughout the state, focusing on education,
434.7employment, housing, transportation, and
434.8voting;
434.9(2) $100,000 is for delivery of statewide
434.10conferences focusing on leadership and
434.11skill development within the disability
434.12community; and
434.13(3) $90,000 is for administrative and general
434.14operating costs associated with managing
434.15or maintaining facilities, program delivery,
434.16staff, and technology.
434.17Base Adjustment. The general fund base
434.18is increased by $535,000 in fiscal year 2016
434.19and by $709,000 in fiscal year 2017.

434.20

(l) Adult Mental Health Grants

434.21	Appropriations by Fund
434.22 434.23	General	71,199,000 70,597,000	69,530,000 68,783,000
434.24	Health Care Access	750,000	750,000
434.25	Lottery Prize	1,733,000	1,733,000

434.26Compulsive Gambling Treatment. Of the
434.27general fund appropriation, $602,000 in
434.28fiscal year 2014 and $747,000 in fiscal year
434.292015 are for compulsive gambling treatment
434.30under Minnesota Statutes, section 297E.02,
434.31subdivision 3, paragraph (c).
434.32Problem Gambling. $225,000 in fiscal year
434.332014 and $225,000 in fiscal year 2015 is
434.34appropriated from the lottery prize fund for a
434.35grant to the state affiliate recognized by the
435.1National Council on Problem Gambling. The
435.2affiliate must provide services to increase
435.3public awareness of problem gambling,
435.4education and training for individuals and
435.5organizations providing effective treatment
435.6services to problem gamblers and their
435.7families, and research relating to problem
435.8gambling.
435.9Funding Usage. Up to 75 percent of a fiscal
435.10year's appropriations for adult mental health
435.11grants may be used to fund allocations in that
435.12portion of the fiscal year ending December
435.1331.
435.14Base Adjustment. The general fund base is
435.15decreased by $4,427,000 $4,441,000 in fiscal
435.16years 2016 and 2017.
435.17Mental Health Pilot Project. $230,000
435.18each year is for a grant to the Zumbro
435.19Valley Mental Health Center. The grant
435.20shall be used to implement a pilot project
435.21to test an integrated behavioral health care
435.22coordination model. The grant recipient must
435.23report measurable outcomes and savings
435.24to the commissioner of human services
435.25by January 15, 2016. This is a onetime
435.26appropriation.
435.27High-risk adults. $200,000 in fiscal
435.28year 2014 is for a grant to the nonprofit
435.29organization selected to administer the
435.30demonstration project for high-risk adults
435.31under Laws 2007, chapter 54, article 1,
435.32section 19, in order to complete the project.
435.33This is a onetime appropriation.

435.34

(m) Child Mental Health Grants

18,246,000

20,636,000

436.1Text Message Suicide Prevention
436.2Program. $625,000 in fiscal year 2014 and
436.3$625,000 in fiscal year 2015 is for a grant
436.4to a nonprofit organization to establish and
436.5implement a statewide text message suicide
436.6prevention program. The program shall
436.7implement a suicide prevention counseling
436.8text line designed to use text messaging to
436.9connect with crisis counselors and to obtain
436.10emergency information and referrals to
436.11local resources in the local community. The
436.12program shall include training within schools
436.13and communities to encourage the use of the
436.14program.
436.15Mental Health First Aid Training. $22,000
436.16in fiscal year 2014 and $23,000 in fiscal
436.17year 2015 is to train teachers, social service
436.18personnel, law enforcement, and others who
436.19come into contact with children with mental
436.20illnesses, in children and adolescents mental
436.21health first aid training.
436.22Funding Usage. Up to 75 percent of a fiscal
436.23year's appropriation for child mental health
436.24grants may be used to fund allocations in that
436.25portion of the fiscal year ending December
436.2631.

436.27

(n) CD Treatment Support Grants

1,816,000

1,816,000

436.28SBIRT Training. (1) $300,000 each year is
436.29for grants to train primary care clinicians to
436.30provide substance abuse brief intervention
436.31and referral to treatment (SBIRT). This is a
436.32onetime appropriation. The commissioner of
436.33human services shall apply to SAMHSA for
436.34an SBIRT professional training grant.
437.1(2) If the commissioner of human services
437.2receives a grant under clause (1) funds
437.3appropriated under this clause, equal to
437.4the grant amount, up to the available
437.5appropriation, shall be transferred to the
437.6Minnesota Organization on Fetal Alcohol
437.7Syndrome (MOFAS). MOFAS must use
437.8the funds for grants. Grant recipients must
437.9be selected from communities that are
437.10not currently served by federal Substance
437.11Abuse Prevention and Treatment Block
437.12Grant funds. Grant money must be used to
437.13reduce the rates of fetal alcohol syndrome
437.14and fetal alcohol effects, and the number of
437.15drug-exposed infants. Grant money may be
437.16used for prevention and intervention services
437.17and programs, including, but not limited to,
437.18community grants, professional eduction,
437.19public awareness, and diagnosis.
437.20Fetal Alcohol Syndrome Grant. $180,000
437.21each year from the general fund is for a
437.22grant to the Minnesota Organization on Fetal
437.23Alcohol Syndrome (MOFAS) to support
437.24nonprofit Fetal Alcohol Spectrum Disorders
437.25(FASD) outreach prevention programs
437.26in Olmsted County. This is a onetime
437.27appropriation.
437.28Base Adjustment. The general fund base is
437.29decreased by $480,000 in fiscal year 2016
437.30and $480,000 in fiscal year 2017.
437.31EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

437.32    Sec. 6. EFFECTIVE DATE.
437.33Sections 1 and 2 are effective the day following final enactment.