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 forecast
1.6adjustments; modifying prior appropriations; modifying disposition of certain
1.7revenues; dedicating money to the Board of Trustees of the Minnesota State
1.8Colleges and Universities for compensation costs associated with settlement of
1.9employment contracts; dedicating certain funds for homeownership opportunities
1.10for families evicted or given notice of eviction due to a disabled child in the
1.11home; requiring the housing finance agency to improve efforts to reduce racial
1.12and ethnic inequalities in homeownership rates; creating an office of regenerative
1.13medicine development; modifying workforce program outcomes; creating job
1.14training programs; providing funding for the Minnesota Racing Commission;
1.15providing a grant to the Mille Lacs Tourism Council; funding Peace Officer
1.16Standards and Training Board; modifying certain provisions pertaining to victims
1.17of domestic violence and sentencing for criminal sexual conduct; continuing
1.18the fire safety advisory committee; providing for disaster assistance for public
1.19entities when federal aid is granted and when federal aid is absent; establishing
1.20certain transportation oversight authority; modifying provisions for railroad
1.21and pipeline safety; modifying certain transportation provisions; providing
1.22compensation for bee deaths due to pesticide poisoning; establishing pollinator
1.23emergency response team; providing nonresident off-highway motorcycle
1.24state trail pass; requiring certain recycling; modifying solid waste reduction;
1.25regulating harmful chemicals in children's products; providing for state parks
1.26and trails license plates, and licensing and inspection of commercial dog and cat
1.27breeders; providing for invasive terrestrial plants and pests center; providing
1.28funding and policy modifications for early childhood, kindergarten through grade
1.2912, and adult education, including general education, education excellence,
1.30special education, facilities, nutrition, community education, self-sufficiency and
1.31lifelong learning, and state agencies; making changes to provisions governing
1.32the Department of Health, Department of Human Services, children and family
1.33services, continuing care, community first services and supports, health care,
1.34public assistance programs, and chemical dependency; providing for unborn
1.35child protection; modifying the hospital payment system; modifying provisions
1.36governing background studies and home and community-based services
1.37standards; setting fees; providing rate increases; establishing grant programs;
1.38modifying medical assistance provisions; modifying the use of positive support
1.39strategies and emergency manual restraint; providing for certain grants; defining
2.1terms; creating accounts; requiring reports; providing penalties; authorizing
2.2rulemaking;amending Minnesota Statutes 2012, sections 12.03, by adding
2.3subdivisions; 12.221, subdivision 4, by adding a subdivision; 12A.02, subdivision
2.42, by adding subdivisions; 12A.03, subdivision 3; 12A.15, subdivision 1; 13.46,
2.5subdivision 4; 13.643, subdivision 6; 13.7411, subdivision 8; 13.84, subdivisions
2.65, 6; 16A.28, by adding a subdivision; 18B.01, by adding subdivisions; 18B.03,
2.7by adding a subdivision; 18B.04; 84.788, subdivision 2; 85.053, subdivision 2;
2.885.34, subdivision 7; 85A.02, subdivision 2; 103G.271, subdivision 6; 115A.151;
2.9115A.55, subdivision 4; 115A.551, subdivisions 1, 2a; 115A.557, subdivisions 2,
2.103; 115B.39, subdivision 2; 115E.01, by adding subdivisions; 115E.08, by adding
2.11subdivisions; 116.9401; 116.9402; 116.9403; 116.9405; 116.9406; 116L.98;
2.12119B.09, subdivision 9a, by adding a subdivision; 121A.19; 122A.40, subdivision
2.1313; 122A.41, subdivision 6; 122A.415, subdivision 1; 123A.05, subdivision
2.142; 123A.485; 123A.64; 123B.57, subdivision 6; 123B.71, subdivisions 8, 9;
2.15124D.09, subdivisions 9, 13; 124D.111, by adding a subdivision; 124D.16,
2.16subdivision 2; 124D.522; 124D.531, subdivision 3; 124D.59, subdivision 2;
2.17125A.76, subdivision 2; 126C.10, subdivisions 25, 26; 127A.45, subdivisions 2,
2.183; 127A.49, subdivisions 2, 3; 129C.10, subdivision 3, by adding a subdivision;
2.19144.0724, as amended; 144.551, subdivision 1; 145.4131, subdivision 1;
2.20165.15, subdivision 2; 169.826, by adding a subdivision; 169.8261, by adding a
2.21subdivision; 169.86, subdivision 5; 169.863, by adding a subdivision; 169.865,
2.22subdivisions 1, 2, by adding a subdivision; 169.866, subdivision 3, by adding
2.23a subdivision; 174.24, by adding a subdivision; 174.56, subdivision 1, by
2.24adding a subdivision; 179.02, by adding a subdivision; 181A.07, by adding
2.25a subdivision; 219.015, subdivisions 1, 2; 243.167, subdivision 1; 245A.03,
2.26subdivision 2c; 245C.03, by adding a subdivision; 245C.04, by adding a
2.27subdivision; 245C.05, subdivision 5; 245C.10, by adding a subdivision; 245C.33,
2.28subdivisions 1, 4; 252.27, by adding a subdivision; 252.451, subdivision 2;
2.29254B.12; 256.01, by adding a subdivision; 256.9685, subdivisions 1, 1a;
2.30256.9686, subdivision 2; 256.969, subdivisions 1, 2, 2b, 3a, 3b, 3c, 6a, 8, 8a, 9,
2.3110, 12, 14, 17, 18, 25, 30, by adding subdivisions; 256.9752, subdivision 2;
2.32256B.04, by adding a subdivision; 256B.0625, subdivisions 18b, 18c, 18d, 18g,
2.3330, by adding a subdivision; 256B.0751, by adding a subdivision; 256B.199;
2.34256B.35, subdivision 1; 256B.431, by adding a subdivision; 256B.434, by
2.35adding a subdivision; 256B.441, by adding a subdivision; 256B.5012, by
2.36adding a subdivision; 256I.04, subdivision 2b; 256I.05, subdivision 2; 256J.49,
2.37subdivision 13; 256J.53, subdivisions 1, 2, 5; 256J.531; 257.85, subdivision
2.3811; 260C.212, subdivision 1; 260C.515, subdivision 4; 260C.611; 299F.012,
2.39subdivisions 1, 2; 469.084, by adding a subdivision; 473.408, by adding a
2.40subdivision; 609.135, subdivision 2; 609.3451, subdivision 3; 611A.06, by
2.41adding a subdivision; Minnesota Statutes 2013 Supplement, sections 16A.724,
2.42subdivision 2; 123B.53, subdivisions 1, 5; 123B.54; 123B.75, subdivision 5;
2.43124D.11, subdivision 1; 124D.111, subdivision 1; 124D.165, subdivision 5;
2.44124D.531, subdivision 1; 124D.65, subdivision 5; 124D.862, subdivisions 1,
2.452; 125A.0942; 125A.11, subdivision 1; 125A.76, subdivisions 1, 2a, 2b, 2c;
2.46125A.79, subdivisions 1, 5, 8; 126C.05, subdivision 15; 126C.10, subdivisions 2,
2.472a, 2d, 24, 31; 126C.17, subdivisions 6, 7b, 9, 9a; 126C.44; 126C.48, subdivision
2.488; 127A.47, subdivision 7; 145.4716, subdivision 2; 168.123, subdivision 2;
2.49174.42, subdivision 2; 245.8251; 245A.03, subdivision 7; 245A.042, subdivision
2.503; 245A.16, subdivision 1; 245C.08, subdivision 1; 245D.02, subdivisions 3, 4b,
2.518b, 11, 15b, 29, 34, 34a, by adding a subdivision; 245D.03, subdivisions 1, 2,
2.523, by adding a subdivision; 245D.04, subdivision 3; 245D.05, subdivisions 1,
2.531a, 1b, 2, 4, 5; 245D.051; 245D.06, subdivisions 1, 2, 4, 6, 7, 8; 245D.071,
2.54subdivisions 3, 4, 5; 245D.081, subdivision 2; 245D.09, subdivisions 3, 4a;
2.55245D.091, subdivisions 2, 3, 4; 245D.10, subdivisions 3, 4; 245D.11, subdivision
2.562; 256B.04, subdivision 21; 256B.056, subdivision 5c; 256B.0625, subdivisions
2.5717, 18e; 256B.0949, subdivisions 4, 11; 256B.439, subdivisions 1, 7; 256B.441,
2.58subdivision 53; 256B.4912, subdivision 1; 256B.492; 256B.69, subdivision 34;
3.1256B.85, subdivisions 2, 3, 5, 6, 7, 8, 9, 10, 11, 12, 13, 15, 16, 17, 18, 23, 24,
3.2by adding subdivisions; 256N.22, subdivisions 1, 2, 4; 256N.23, subdivision 4;
3.3256N.25, subdivisions 2, 3; 256N.26, subdivision 1; 256N.27, subdivision 4;
3.4Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended; Laws
3.52009, chapter 83, article 1, section 10, subdivision 7; Laws 2010, chapter 189,
3.6sections 15, subdivision 12; 26, subdivision 4; Laws 2012, chapter 249, section
3.711; Laws 2012, chapter 263, section 1; Laws 2012, chapter 287, article 2,
3.8sections 1; 3; Laws 2012, First Special Session chapter 1, article 1, section 28;
3.9Laws 2013, chapter 1, section 6, as amended; Laws 2013, chapter 85, article 1,
3.10sections 3, subdivisions 2, 5, 6; 4, subdivisions 1, 2; 5; 13, subdivision 5; Laws
3.112013, chapter 86, article 1, sections 12, subdivision 3, as amended; 13; Laws
3.122013, chapter 108, article 1, section 24; article 3, section 48; article 7, sections
3.1314; 49; article 14, sections 2, subdivisions 1, 4, as amended, 5, 6, as amended; 3,
3.14subdivisions 1, 4; 4, subdivision 8; 12; Laws 2013, chapter 114, article 3, section
3.154, subdivision 3; Laws 2013, chapter 116, article 1, section 58, subdivisions 2, 3,
3.164, 5, 6, 7, 11; article 3, section 37, subdivisions 3, 4, 5, 6, 8, 11, 15, 20; article
3.174, section 9, subdivision 2; article 5, section 31, subdivisions 2, 3, 4, 8; article
3.186, section 12, subdivisions 2, 3, 4, 5, 6; article 7, section 21, subdivisions 2, 3,
3.194, 6, 7, 9; article 8, section 5, subdivisions 2, 3, 4, 10, 11, 14; article 9, sections
3.201, subdivision 2; 2; Laws 2013, chapter 117, article 1, sections 3, subdivisions
3.212, 3; 4; proposing coding for new law in Minnesota Statutes, chapters 8; 18B;
3.2219; 84; 85; 87A; 115E; 116; 116J; 123A; 123B; 124D; 129C; 144; 144A; 145;
3.23168; 219; 299A; 347; 473; proposing coding for new law as Minnesota Statutes,
3.24chapter 12B; repealing Minnesota Statutes 2012, sections 115A.551, subdivision
3.252; 116J.997; 123B.71, subdivision 1; 256.969, subdivisions 2c, 8b, 9a, 9b, 11,
3.2613, 20, 21, 22, 26, 27, 28; 256.9695, subdivisions 3, 4; Minnesota Statutes 2013
3.27Supplement, sections 256B.0625, subdivision 18f; 256N.26, subdivision 7.
3.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:


3.31    Section 1. MINNESOTA STATE COLLEGES AND UNIVERSITIES;
3.32SETTLEMENT OF EMPLOYMENT CONTRACTS.
3.33$17,000,000 in fiscal year 2015 is appropriated from the general fund to the Board
3.34of Trustees of the Minnesota State Colleges and Universities for compensation costs
3.35associated with the settlement of employment contracts for fiscal year 2014. The board's
3.36appropriation base is increased by $14,000,000 in fiscal years 2016 and 2017.


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

3.40

Subdivision 1.Total Appropriation

$

58,748,000

$

42,748,000

4.1The amounts that may be spent for each
4.2purpose are specified in the following
4.3subdivisions.
4.4Unless otherwise specified, this appropriation
4.5is for transfer to the housing development
4.6fund for the programs specified in this
4.7section. Except as otherwise indicated, this
4.8transfer is part of the agency's permanent
4.9budget base.
4.10The Housing Finance Agency will make
4.11continuous improvements to its ongoing
4.12efforts to reduce the racial and ethnic
4.13inequalities in homeownership rates and
4.14will seek opportunities to deploy increasing
4.15levels of resources toward these efforts.

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

4.17

Subd. 2.Challenge Program

19,203,000

9,203,000

4.18(a) This appropriation is for the economic
4.19development and housing challenge program
4.20under Minnesota Statutes, section 462A.33.
4.21The agency must continue to strengthen its
4.22efforts to address the disparity rate between
4.23white households and indigenous American
4.24Indians and communities of color. Of this
4.25amount, $1,208,000 each year shall be made
4.26available during the first 11 months of the
4.27fiscal year exclusively for housing projects
4.28for American Indians. Any funds not
4.29committed to housing projects for American
4.30Indians in the first 11 months of the fiscal year
4.31shall be available for any eligible activity
4.32under Minnesota Statues, section 462A.33.
5.1(b) Of this amount, $10,000,000 is a onetime
5.2appropriation and is targeted for housing in
5.3communities and regions that have:
5.4(1)(i) low housing vacancy rates; and
5.5(ii) cooperatively developed a plan that
5.6identifies current and future housing needs;
5.7and
5.8(2)(i) experienced job growth since 2005 and
5.9have at least 2,000 jobs within the commuter
5.10shed;
5.11(ii) evidence of anticipated job expansion; or
5.12(iii) a significant portion of area employees
5.13who commute more than 30 miles between
5.14their residence and their employment.
5.15(c) Priority shall be given to programs and
5.16projects that are land trust programs and
5.17programs that work in coordination with a
5.18land trust program.
5.19(d) Of this amount, $500,000 is for
5.20homeownership opportunities for families
5.21who have been evicted or been given
5.22notice of an eviction due to a disabled
5.23child in the home, including adjustments
5.24for the incremental increase in costs of
5.25addressing the unique housing needs of those
5.26households. Any funds not expended for this
5.27purpose may be returned to the challenge
5.28fund after October 31, 2014.
5.29(d) (e) The base funding for this program in
5.30the 2016-2017 biennium is $12,925,000 each
5.31year.

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

6.1 6.2

Subd. 3.Housing Trust Fund

13,276,000 12,776,000

10,276,000 10,776,000

6.3(a) This appropriation is for deposit in the
6.4housing trust fund account created under
6.5Minnesota Statutes, section 462A.201, and
6.6may be used for the purposes provided in
6.7that section. To the extent that these funds
6.8are used for the acquisition of housing, the
6.9agency shall give priority among comparable
6.10projects to projects that focus on creating
6.11safe and stable housing for homeless youth
6.12or projects that provide housing to trafficked
6.13women and children.
6.14(b) $2,000,000 in the first year is a and
6.15$500,000 in the second year are onetime
6.16appropriation appropriations for temporary
6.17rental assistance for families with school-age
6.18children who have changed school or home
6.19at least once in the last school year. The
6.20agency, in consultation with the Department
6.21of Education, may establish additional
6.22targeting criteria.
6.23(c) Of this amount, $500,000 the first year
6.24is a onetime appropriation for temporary
6.25rental assistance for adults who are in
6.26the process of being released from state
6.27correctional facilities or on supervised
6.28release in the community who are homeless
6.29or at risk of becoming homeless. The
6.30agency, in consultation with the Department
6.31of Corrections, may establish additional
6.32targeting criteria to identify those adults
6.33most at risk of reentering state correctional
6.34facilities.
7.1(d) Of this amount, $500,000 the first year
7.2is a onetime appropriation for a grant to the
7.3nonprofit organization selected to administer
7.4the state demonstration project for high-risk
7.5adults established under Laws 2007, chapter
7.654, article 1, section 19.
7.7(e) (d) The base funding for this program in
7.8fiscal years 2016 and 2017 is $11,471,000
7.9each year.
7.10EFFECTIVE DATE.This section is effective the day following final enactment.

7.11    Sec. 4. AFFORDABLE HOUSING PLAN; DISPARITIES REPORT.
7.12(a) The Housing Finance Agency shall provide the chairs and ranking minority
7.13members of the house of representatives and senate committees with jurisdiction over the
7.14agency with the draft and final versions of its affordable housing plan before and after it
7.15has been submitted to the agency board for consideration.
7.16(b) The Housing Finance Agency shall annually report to the chairs and ranking
7.17minority members of the house of representatives and senate committees with jurisdiction
7.18over the agency on the progress, if any, the agency has made in closing the racial disparity
7.19gap and low-income concentrated housing disparities.

7.24	Section 1. APPROPRIATIONS.

7.25    The sums shown in the columns under "Appropriations" are added to or, if shown
7.26in parentheses, subtracted from the appropriations in Laws 2013, chapter 85, article 1,
7.27or other law to the specified agencies. The appropriations are from the general fund, or
7.28another named fund, and are available for the fiscal years indicated for each purpose. The
7.29figures "2014" and "2015" used in this article mean that the appropriations listed under
7.30them are available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
7.31Appropriations for the fiscal year ending June 30, 2014, are effective the day following
7.32final enactment. Reductions may be taken in either fiscal year.

8.1				APPROPRIATIONS
8.2				Available for the Year
8.3				Ending June 30
8.4					2014		2015

8.5 8.6

Sec. 2. DEPARTMENT OF EMPLOYMENT AND ECONOMIC DEVELOPMENT

8.7

Subdivision 1.Total Appropriation

$

0

$

37,350,000

8.8The amounts that may be spent for each
8.9purpose are specified in the following
8.10subdivisions.

8.11 8.12

Subd. 2.Business and Community Development

0

35,750,000

8.13(a) $25,000,000 in fiscal year 2015 is from the
8.14general fund for grants for the development
8.15of broadband infrastructure under Minnesota
8.16Statutes, section 116J.395, or to supplement
8.17revenues raised by bonds sold by local units
8.18of government for broadband infrastructure
8.19development. This is a onetime appropriation
8.20and is available until June 30, 2017.
8.21(b) $450,000 in fiscal year 2015 is from the
8.22general fund for one or more contracts with an
8.23independent organization that has extensive
8.24experience working with Minnesota
8.25broadband providers to continue to:
8.26(1) collect broadband deployment data from
8.27Minnesota providers, verify its accuracy
8.28through on-the-ground testing, and create
8.29state and county maps available to the public
8.30showing the availability of broadband service
8.31at various upload and download speeds
8.32throughout Minnesota, in order to measure
8.33progress in achieving the state's broadband
8.34goals established in Minnesota Statutes,
8.35section 237.012;
9.1(2) analyze the deployment data collected to
9.2help inform future investments in broadband
9.3infrastructure; and
9.4(3) conduct business and residential surveys
9.5that measure broadband adoption and use in
9.6the state.
9.7Data provided by a broadband provider to the
9.8contractor under this paragraph is nonpublic
9.9data under Minnesota Statutes, section 13.02,
9.10subdivision 9. Maps produced under this
9.11paragraph are public data under Minnesota
9.12Statutes, section 13.03. This is a onetime
9.13appropriation and is available until expended.
9.14(c) $1,000,000 in fiscal year 2015 is from
9.15the general fund for a grant to the Southwest
9.16Initiative Foundation for business revolving
9.17loans or other lending programs. This is a
9.18onetime appropriation and is available until
9.19expended.
9.20(d) $1,000,000 in fiscal year 2015 is from the
9.21general fund for a grant to the West Central
9.22Initiative Foundation for business revolving
9.23loans or other lending programs. This is a
9.24onetime appropriation and is available until
9.25expended.
9.26(e) $1,000,000 in fiscal year 2015 is from
9.27the general fund for a grant to the Southern
9.28Minnesota Initiative Foundation for business
9.29revolving loans or other lending programs.
9.30This is a onetime appropriation and is
9.31available until expended.
9.32(f) $1,000,000 in fiscal year 2015 is from the
9.33general fund for a grant to the Northwest
9.34Minnesota Foundation for business revolving
9.35loans or other lending programs. This is a
10.1onetime appropriation and is available until
10.2expended.
10.3(g) $1,000,000 in fiscal year 2015 is from
10.4the general fund for a grant to the Initiative
10.5Foundation for business revolving loans or
10.6other lending programs. This is a onetime
10.7appropriation and is available until expended.
10.8(h) $1,000,000 in fiscal year 2015 is from
10.9the general fund for a grant to the Northland
10.10Foundation for business revolving loans or
10.11other lending programs. This is a onetime
10.12appropriation and is available until expended.
10.13(i) $1,000,000 in fiscal year 2015 is from the
10.14general fund for a grant to the Urban Initiative
10.15Board under Minnesota Statutes, chapter
10.16116M, for business technical assistance or
10.17organizational capacity building. Funds
10.18available under this paragraph must be
10.19allocated as follows: (1) 50 percent of
10.20the funds must be allocated for projects
10.21in the counties of Dakota, Ramsey, and
10.22Washington; and (2) 50 percent of the funds
10.23must be allocated for projects in the counties
10.24of Anoka, Carver, Hennepin, and Scott. This
10.25is a onetime appropriation and is available
10.26until expended.
10.27(j) $500,000 in fiscal year 2015 is from the
10.28general fund for grants to small business
10.29development centers under Minnesota
10.30Statutes, section 116J.68. Funds made
10.31available under this paragraph may be used to
10.32match funds under the federal Small Business
10.33Development Center (SBDC) program under
10.34United States Code, title 15, section 648, to
10.35provide consulting and technical services, or
11.1to build additional SBDC network capacity
11.2to serve entrepreneurs and small businesses.
11.3The commissioner shall allocate funds
11.4equally among the nine regional centers and
11.5lead center. This is a onetime appropriation
11.6and is available until expended.
11.7(k) $750,000 in fiscal year 2015 is from the
11.8general fund for the innovation voucher pilot
11.9program in article 4, section 9. This is a
11.10onetime appropriation and is available until
11.11expended. Of this amount, up to five percent
11.12may be used for administration. Vouchers
11.13require a 50 percent match by recipients.
11.14(l) $1,600,000 in fiscal year 2015 is
11.15from the general fund for the Minnesota
11.16Jobs Skills Partnership program under
11.17Minnesota Statutes, section 116L.02. Of this
11.18appropriation, $600,000 is onetime and is
11.19available until expended and $1,000,000 is
11.20added to the agency's base budget each year
11.21for fiscal years 2016 and 2017.
11.22(m) $450,000 in fiscal year 2015 is from the
11.23general fund for the Office of Regenerative
11.24Medicine under Minnesota Statutes, sections
11.25116J.886 to 116J.8862. This is a onetime
11.26appropriation and is available until expended.

11.27

Subd. 3.Workforce Development

0

1,100,000

11.28(a) $75,000 in fiscal year 2015 is from
11.29the general fund for workforce program
11.30outcome activities under Minnesota Statutes,
11.31section 116L.98. Up to five percent of
11.32this appropriation may be used by the
11.33commissioner for administration of the
11.34program. This is a onetime appropriation and
11.35is available until expended.
12.1(b) $1,000,000 in fiscal year 2015 is from the
12.2general fund for training rebates under article
12.34, section 11. This is a onetime appropriation
12.4and is available until expended.
12.5(c) $25,000 in fiscal year 2015 is from the
12.6general fund for the information technology
12.7apprenticeship pilot program under article 4,
12.8section 13. This is a onetime appropriation
12.9and is available until expended.

12.10

Subd. 4.General Support Services

0

500,000

12.11$500,000 in fiscal year 2015 is for
12.12establishing and operating the interagency
12.13Olmstead Implementation Office. This is a
12.14onetime appropriation and is available until
12.15expended.

12.16 12.17

Sec. 3. DEPARTMENT OF LABOR AND INDUSTRY

12.18

Subdivision 1.Total Appropriation

$

0

$

25,000

12.19The amounts that may be spent for each
12.20purpose are specified in the following
12.21subdivisions.

12.22

Subd. 2.Labor Standards and Apprenticeship

0

25,000

12.23(a) The base for the department is increased
12.24by $70,000 each year for implementing and
12.25administering a minimum wage inflation
12.26adjustment. This adjustment is available only
12.27if a law is enacted in the 2014 legislative
12.28session that includes an automatic inflation
12.29adjustment to the state minimum wage. The
12.30availability of this appropriation is effective
12.31in the same fiscal year that the inflation
12.32adjustment is first effective.
12.33(b) $25,000 in fiscal year 2015 is from the
12.34general fund for the precision manufacturing
13.1and health care services pilot program under
13.2article 4, section 12. This is a onetime
13.3appropriation and is available until expended.

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

13.5 13.6

Subd. 2.Business and Community Development

53,642,000

45,407,000

13.7	Appropriations by Fund
13.8	General	52,942,000	44,707,000
13.9	Remediation	700,000	700,000

13.10(a)(1) $15,000,000 each year is for the
13.11Minnesota investment fund under Minnesota
13.12Statutes, section 116J.8731. Of this amount,
13.13the commissioner of employment and
13.14economic development may use up to three
13.15percent for administrative expenses. This
13.16appropriation is available until spent.
13.17(2) Of the amount available under clause
13.18(1), up to $3,000,000 in fiscal year 2014
13.19is for a loan to facilitate initial investment
13.20in the purchase and operation of a
13.21biopharmaceutical manufacturing facility.
13.22This loan is not subject to the loan limitations
13.23under Minnesota Statutes, section 116J.8731,
13.24and shall be forgiven by the commissioner
13.25of employment and economic development
13.26upon verification of meeting performance
13.27goals. Purchases related to and for the
13.28purposes of this loan award must be made
13.29between January 1, 2013, and June 30, 2015.
13.30The amount under this clause is available
13.31until expended.
13.32(3) Of the amount available under clause (1),
13.33up to $2,000,000 is available for subsequent
13.34investment in the biopharmaceutical facility
13.35project in clause (2). The amount under this
14.1clause is available until expended. Loan
14.2thresholds under clause (2) must be achieved
14.3and maintained to receive funding. Loans
14.4are not subject to the loan limitations under
14.5Minnesota Statutes, section 116J.8731, and
14.6shall be forgiven by the commissioner of
14.7employment and economic development
14.8upon verification of meeting performance
14.9goals. Purchases related to and for the
14.10purposes of loan awards must be made during
14.11the biennium the loan was received.
14.12(4) Notwithstanding any law to the contrary,
14.13the biopharmaceutical manufacturing facility
14.14in this paragraph shall be deemed eligible
14.15for the Minnesota job creation fund under
14.16Minnesota Statutes, section 116J.8748,
14.17by having at least $25,000,000 in capital
14.18investment and 190 retained employees.
14.19(5) For purposes of clauses (1) to (4),
14.20"biopharmaceutical" and "biologics" are
14.21interchangeable and mean medical drugs
14.22or medicinal preparations produced using
14.23technology that uses biological systems,
14.24living organisms, or derivatives of living
14.25organisms, to make or modify products or
14.26processes for specific use. The medical drugs
14.27or medicinal preparations include but are not
14.28limited to proteins, antibodies, nucleic acids,
14.29and vaccines.
14.30(b) $12,000,000 each year is for the
14.31Minnesota job creation fund under Minnesota
14.32Statutes, section 116J.8748. Of this amount,
14.33the commissioner of employment and
14.34economic development may use up to three
14.35percent for administrative expenses. This
15.1appropriation is available until spent. The
15.2base funding for this program shall be
15.3$12,500,000 each year in the fiscal year
15.42016-2017 biennium.
15.5(c) $1,272,000 each year is from the
15.6general fund for contaminated site cleanup
15.7and development grants under Minnesota
15.8Statutes, sections 116J.551 to 116J.558. This
15.9appropriation is available until expended.
15.10(d) $700,000 each year is from the
15.11remediation fund for contaminated site
15.12cleanup and development grants under
15.13Minnesota Statutes, sections 116J.551 to
15.14116J.558 . This appropriation is available
15.15until expended.
15.16(e) $1,425,000 the first year and $1,425,000
15.17the second year are from the general fund for
15.18the business development competitive grant
15.19program. Of this amount, up to five percent
15.20is for administration and monitoring of the
15.21business development competitive grant
15.22program. All grant awards shall be for two
15.23consecutive years. Grants shall be awarded
15.24in the first year.
15.25(f) $4,195,000 each year is from the general
15.26fund for the Minnesota job skills partnership
15.27program under Minnesota Statutes, sections
15.28116L.01 to 116L.17. If the appropriation for
15.29either year is insufficient, the appropriation
15.30for the other year is available. This
15.31appropriation is available until spent.
15.32(g) $6,000,000 the first year is from the
15.33general fund for the redevelopment program
15.34under Minnesota Statutes, section 116J.571.
16.1This is a onetime appropriation and is
16.2available until spent.
16.3(h) $12,000 each year is from the general
16.4fund for a grant to the Upper Minnesota Film
16.5Office.
16.6(i) $325,000 each year is from the general
16.7fund for the Minnesota Film and TV Board.
16.8The appropriation in each year is available
16.9only upon receipt by the board of $1 in
16.10matching contributions of money or in-kind
16.11contributions from nonstate sources for every
16.12$3 provided by this appropriation, except that
16.13each year up to $50,000 is available on July
16.141 even if the required matching contribution
16.15has not been received by that date.
16.16(j) $100,000 each year is for a grant to the
16.17Northern Lights International Music Festival.
16.18(k) $5,000,000 each year is from the general
16.19fund for a grant to the Minnesota Film
16.20and TV Board for the film production jobs
16.21program under Minnesota Statutes, section
16.22116U.26 . This appropriation is available
16.23until expended. The base funding for this
16.24program shall be $1,500,000 each year in the
16.25fiscal year 2016-2017 biennium.
16.26(l) $375,000 each year is from the general
16.27fund for a grant to Enterprise Minnesota, Inc.,
16.28for the small business growth acceleration
16.29program under Minnesota Statutes, section
16.30116O.115 . This is a onetime appropriation.
16.31(m) $160,000 each year is from the general
16.32fund for a grant to develop and implement
16.33a southern and southwestern Minnesota
16.34initiative foundation collaborative pilot
16.35project. Funds available under this paragraph
17.1must be used to support and develop
17.2entrepreneurs in diverse populations in
17.3southern and southwestern Minnesota. This
17.4is a onetime appropriation and is available
17.5until expended.
17.6(n) $100,000 each year is from the general
17.7fund for the Center for Rural Policy
17.8and Development. This is a onetime
17.9appropriation.
17.10(o) $250,000 each year is from the general
17.11fund for the Broadband Development Office.
17.12(p) $250,000 the first year is from the
17.13general fund for a onetime grant to the St.
17.14Paul Planning and Economic Development
17.15Department for neighborhood stabilization
17.16use in NSP3.
17.17(q) $1,235,000 the first year is from the
17.18general fund for a onetime grant to a city
17.19of the second class that is designated as an
17.20economically depressed area by the United
17.21States Department of Commerce. The
17.22appropriation is for economic development,
17.23redevelopment, and job creation programs
17.24and projects. This appropriation is available
17.25until expended.
17.26(r) $875,000 each year is from the general
17.27fund for the Host Community Economic
17.28Development Program established in
17.29Minnesota Statutes, section 116J.548.
17.30(s) $750,000 the first year is from the general
17.31fund for a onetime grant to the city of Morris
17.32for loans or grants to agricultural processing
17.33facilities for energy efficiency improvements.
17.34Funds available under this section shall be
17.35used to increase conservation and promote
18.1energy efficiency through retrofitting existing
18.2systems and installing new systems to
18.3recover waste heat from industrial processes
18.4and reuse energy. This appropriation is not
18.5available until the commissioner determines
18.6that at least $1,250,000 a match of $750,000
18.7 is committed to the project from nonpublic
18.8sources. This appropriation is available until
18.9expended.
18.10EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

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

18.12

Subd. 5.Minnesota Trade Office

2,322,000

2,292,000

18.13(a) $330,000 in fiscal year 2014 and $300,000
18.14in fiscal year 2015 are for the STEP grants
18.15in Minnesota Statutes, section 116J.979. Of
18.16the fiscal year 2014 appropriation, $30,000
18.17is available for expenditure until June 30,
18.182015, for establishing trade, export, and
18.19cultural exchange relations between the state
18.20of Minnesota and east African nations.
18.21(b) $180,000 in fiscal year 2014 and
18.22$180,000 in fiscal year 2015 are for the Invest
18.23Minnesota marketing initiative in Minnesota
18.24Statutes, section 116J.9781. Notwithstanding
18.25any other law, this provision does not expire.
18.26(c) $270,000 each year is from the general
18.27fund for the expansion of Minnesota Trade
18.28Offices under Minnesota Statutes, section
18.29116J.978 .
18.30(d) $50,000 each year is from the general
18.31fund for the trade policy advisory group
18.32under Minnesota Statutes, section 116J.9661.
19.1(e) The commissioner of employment and
19.2economic development, in consultation
19.3with the commissioner of agriculture, shall
19.4identify and increase export opportunities for
19.5Minnesota agricultural products.
19.6EFFECTIVE DATE.This section is effective the day following final enactment.

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

19.8

Subd. 6.Vocational Rehabilitation

27,691,000

27,691,000

19.9	Appropriations by Fund
19.10	General	20,861,000	20,861,000
19.11 19.12	Workforce Development	6,830,000	6,830,000

19.13(a) $10,800,000 each year is from the general
19.14fund for the state's vocational rehabilitation
19.15program under Minnesota Statutes, chapter
19.16268A.
19.17(b) $2,261,000 each year is from the general
19.18fund for grants to centers for independent
19.19living under Minnesota Statutes, section
19.20268A.11 .
19.21(c) $5,745,000 each year from the general
19.22fund and $6,830,000 each year from the
19.23workforce development fund is for extended
19.24employment services for persons with
19.25severe disabilities under Minnesota Statutes,
19.26section 268A.15. The allocation of extended
19.27employment funds to Courage Center from
19.28July 1, 2012 to June 30, 2013 must be
19.29contracted to Allina Health systems from
19.30July 1, 2013 to June 30, 2014 2015 to provide
19.31extended employment services in accordance
19.32with Minnesota Rules, parts 3300.2005 to
19.333300.2055.
20.1(d) $2,055,000 each year is from the general
20.2fund for grants to programs that provide
20.3employment support services to persons with
20.4mental illness under Minnesota Statutes,
20.5sections 268A.13 and 268A.14. The base
20.6appropriation for this program is $1,555,000
20.7each year in the fiscal year 2016-2017
20.8biennium.

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

20.10

Subd. 5.Telecommunications

1,949,000

2,249,000

20.11	Appropriations by Fund
20.12	General	1,009,000	1,009,000
20.13	Special Revenue	940,000	1,240,000

20.14$940,000 in fiscal year 2014 and $1,240,000
20.15in fiscal year 2015 are appropriated to the
20.16commissioner from the telecommunication
20.17access fund for the following transfers. This
20.18appropriation is added to the department's
20.19base.
20.20(1) $500,000 in fiscal year 2014 and $800,000
20.21in fiscal year 2015 to the commissioner of
20.22human services to supplement the ongoing
20.23operational expenses of the Commission
20.24of Deaf, DeafBlind, and Hard-of-Hearing
20.25Minnesotans;
20.26(2) $290,000 in fiscal year 2014 and $290,000
20.27in fiscal year 2015 to the chief information
20.28officer for the purpose of coordinating
20.29technology accessibility and usability; and
20.30(3) $150,000 in fiscal year 2014 and $150,000
20.31in fiscal year 2015 to the Legislative
20.32Coordinating Commission for captioning of
20.33legislative coverage and for a consolidated
20.34access fund for other state agencies. These
21.1transfers are subject to Minnesota Statutes,
21.2section 16A.281.


21.5    Section 1. [116J.394] DEFINITIONS.
21.6(a) For the purposes of sections 116J.394 to 116J.396, the following terms have
21.7the meanings given them.
21.8(b) "Broadband" or "broadband service" has the meaning given in section 116J.39,
21.9subdivision 1, paragraph (b).
21.10(c) "Broadband infrastructure" means networks of deployed telecommunications
21.11equipment and technologies necessary to provide high-speed Internet access and other
21.12advanced telecommunications services for end users.
21.13(d) "Commissioner" means the commissioner of employment and economic
21.14development.
21.15(e) "Last-mile infrastructure" means broadband infrastructure that serves as the
21.16final leg connecting the broadband service provider's network to the end-use customer's
21.17on-premises telecommunications equipment.
21.18(f) "Middle-mile infrastructure" means broadband infrastructure that links a
21.19broadband service provider's core network infrastructure to last-mile infrastructure.
21.20(g) "Political subdivision" means any county, city, town, school district, special
21.21district or other political subdivision, or public corporation.
21.22(h) "Underserved areas" means areas of Minnesota in which households or businesses
21.23lack access to wire-line broadband service at speeds that meet the state broadband goals of
21.24ten to 20 megabits per second download and five to ten megabits per second upload.
21.25(i) "Unserved areas" means areas of Minnesota in which households or businesses
21.26lack access to wire-line broadband service at speeds that meet a Federal Communications
21.27Commission threshold of four megabits per second download and one megabit per second
21.28upload.

21.29    Sec. 2. [116J.395] BORDER-TO-BORDER BROADBAND DEVELOPMENT
21.30GRANT PROGRAM.
21.31    Subdivision 1. Establishment. A grant program is established under the Department
21.32of Employment and Economic Development to award grants to eligible applicants in order
21.33to promote the expansion of access to broadband service in unserved or underserved
21.34areas of the state.
22.1    Subd. 2. Eligible expenditures. Grants may be awarded under this section to fund
22.2the acquisition and installation of middle-mile and last-mile infrastructure that support
22.3broadband service scalable to speeds of at least 100 megabits per second download and
22.4100 megabits per second upload.
22.5    Subd. 3. Eligible applicants. Eligible applicants for grants awarded under this
22.6section include:
22.7(1) an incorporated business or a partnership;
22.8(2) a political subdivision;
22.9(3) an Indian tribe;
22.10(4) a Minnesota nonprofit organization organized under chapter 317A;
22.11(5) a Minnesota cooperative association organized under chapter 308A or 308B; and
22.12(6) a Minnesota limited liability corporation organized under chapter 322B for the
22.13purpose of expanding broadband access.
22.14    Subd. 4. Application process. An eligible applicant must submit an application
22.15to the commissioner on a form prescribed by the commissioner. The commissioner shall
22.16develop administrative procedures governing the application and grant award process.
22.17The commissioner shall act as fiscal agent for the grant program and shall be responsible
22.18for receiving and reviewing grant applications and awarding grants under this section.
22.19    Subd. 5. Application contents. An applicant for a grant under this section shall
22.20provide the following information on the application:
22.21(1) the location of the project;
22.22(2) the kind and amount of broadband infrastructure to be purchased for the project;
22.23(3) evidence regarding the unserved or underserved nature of the community in
22.24which the project is to be located;
22.25(4) the number of households passed that will have access to broadband service as a
22.26result of the project, or whose broadband service will be upgraded as a result of the project;
22.27(5) significant community institutions that will benefit from the proposed project;
22.28(6) evidence of community support for the project;
22.29(7) the total cost of the project;
22.30(8) sources of funding or in-kind contributions for the project that will supplement
22.31any grant award; and
22.32(9) any additional information requested by the commissioner.
22.33    Subd. 6. Awarding grants. (a) In evaluating applications and awarding grants, the
22.34commissioner shall give priority to applications that are constructed in areas identified by
22.35the director of the Office of Broadband Development as unserved.
23.1(b) In evaluating applications and awarding grants, the commissioner may give
23.2priority to applications that:
23.3(1) are constructed in areas identified by the director of the Office of Broadband
23.4Development as underserved;
23.5(2) offer new or substantially upgraded broadband service to important community
23.6institutions including, but not limited to, libraries, educational institutions, public safety
23.7facilities, and healthcare facilities;
23.8(3) facilitate the use of telemedicine and electronic health records;
23.9(4) serve economically distressed areas of the state, as measured by indices of
23.10unemployment, poverty, or population loss that are significantly greater than the statewide
23.11average;
23.12(5) provide technical support and train residents, businesses, and institutions in the
23.13community served by the project to utilize broadband service;
23.14(6) include a component to actively promote the adoption of the newly available
23.15broadband services in the community;
23.16(7) provide evidence of strong support for the project from citizens, government,
23.17businesses, and institutions in the community;
23.18(8) provide access to broadband service to a greater number of unserved or
23.19underserved households and businesses; or
23.20(9) leverage greater amounts of funding for the project from other private and
23.21public sources.
23.22(c) The commissioner shall endeavor to award grants under this section to qualified
23.23applicants in all regions of the state.
23.24EFFECTIVE DATE.This section is effective the day following final enactment.

23.25    Sec. 3. [116J.396] BORDER-TO-BORDER BROADBAND FUND.
23.26    Subdivision 1. Account established. The border-to-border broadband fund account
23.27is established as a separate account in the special revenue fund in the state treasury. The
23.28commissioner shall credit to the account appropriations and transfers to the account.
23.29Earnings, such as interest, dividends, and any other earnings arising from assets of the
23.30account, must be credited to the account. Funds remaining in the account at the end of a
23.31fiscal year are not canceled to the general fund, but remain in the account until expended.
23.32The commissioner shall manage the account.
23.33    Subd. 2. Expenditures. Money in the account may be used only:
24.1(1) for grant awards made under section 116J.395, including up to three percent of
24.2the total amount appropriated for grants awarded under that section for costs incurred by
24.3the Department of Employment and Economic Development to administer that section; or
24.4(2) to supplement revenues raised by bonds sold by local units of government for
24.5broadband infrastructure development.
24.6    Subd. 3. Appropriation. Money in the account is appropriated to the commissioner
24.7for the purposes of subdivision 2.
24.8EFFECTIVE DATE.This section is effective the day following final enactment.

24.9    Sec. 4. [116J.886] CITATION; REGENERATIVE MEDICINE DEVELOPMENT
24.10ACT.
24.11Sections 116J.886 to 116J.8862 shall be known as the Regenerative Medicine
24.12Development Act to promote private sector investment in regenerative medicine to
24.13strengthen the state's economy, reduce the long-term costs related to treating debilitating
24.14illnesses, advance the regenerative medicine industry, and facilitate and expand clinical
24.15research opportunities in the state.

24.16    Sec. 5. [116J.8861] DEFINITIONS.
24.17    Subdivision 1. Definitions. For the purposes of sections 116J.886 to 116J.8862, the
24.18following terms have the meanings given them.
24.19    Subd. 2. Business development services. "Business development services"
24.20means business incubator services and services to facilitate access to existing publicly
24.21or privately financed grants, loans, or loan guarantees, and to support basic or applied
24.22research, development of therapies, and development of pharmacologies and treatments
24.23through preclinical or clinical trials.
24.24    Subd. 3. Commissioner. "Commissioner" means the commissioner of employment
24.25and economic development.
24.26    Subd. 4. Office. "Office" means the Office of Regenerative Medicine Development
24.27established under section 116J.8862.
24.28    Subd. 5. Regenerative medicine. "Regenerative medicine" means the process of
24.29creating or using living, functional tissue to augment, repair, replace, or regenerate organs
24.30and tissue that have been damaged by disease, injury, aging, or other biological processes.
24.31    Subd. 6. Regenerative medicine development project or project. "Regenerative
24.32medicine development project" or "project" means any research, product development,
24.33or commercial venture relating to basic, preclinical, or clinical work to produce a drug,
24.34biological or chemical material, compound, or medical device designed to augment,
25.1repair, replace, or regenerate organs and tissue that have been damaged by disease, injury,
25.2aging, or other biological processes.

25.3    Sec. 6. [116J.8862] OFFICE OF REGENERATIVE MEDICINE
25.4DEVELOPMENT.
25.5    Subdivision 1. Established. The commissioner shall establish an Office of
25.6Regenerative Medicine Development to provide business development services and
25.7outreach to promote and expand the regenerative medicine industry in Minnesota.
25.8    Subd. 2. Consultation. The office must regularly consult with external stakeholders,
25.9and must conduct public meetings to gather input. For the purposes of this section,
25.10external stakeholders must include:
25.11(1) the director of the Minnesota Stem Cell Institute at the University of Minnesota;
25.12(2) a representative of a Minnesota-based trade association with the largest number
25.13of bioscience companies as its membership;
25.14(3) a representative of a Minnesota-based trade association with the largest number
25.15of hospitals as its membership; and
25.16(4) a representative of the largest private entity in Minnesota conducting research
25.17into the benefits and uses of regenerative medicine.
25.18    Subd. 3. Outside funding. The commissioner, on behalf of the office, may accept
25.19appropriations, gifts, grants, and bequests.
25.20    Subd. 4. Public infrastructure grant program. The commissioner shall coordinate
25.21the services and activities of the office with the innovative business development public
25.22infrastructure program under section 116J.435.
25.23    Subd. 5. Fiscal planning. By December 15, 2014, the commissioner shall develop a
25.24long-term budget proposal for the office for fiscal years 2016 to 2024 to provide business
25.25development services to regenerative medicine development projects.
25.26    Subd. 6. Project applications; selection. (a) The office shall provide business
25.27development services to eligible regenerative medicine development projects approved by
25.28the commissioner. To be eligible for business development services under this section, a
25.29regenerative medicine development project must:
25.30(1) demonstrate that at least 70 percent of the project costs are paid from nonstate
25.31sources. The nonstate share may include federal funds and the prior purchase of scientific
25.32equipment and materials incidental to the project, provided the purchase is completed not
25.33more than two years prior to the approval of funding by the commissioner;
25.34(2) not duplicate or supplant any other research or other project already conducted
25.35by the federal government, or for which federal funding is available; and
26.1(3) demonstrate that project activities are carried out directly by the grant recipient.
26.2(b) The commissioner shall establish an application and process for approving
26.3projects. Project applications must include the following information:
26.4(1) evidence that the required match is available and committed;
26.5(2) a detailed estimate, along with necessary supporting evidence, of the total cost
26.6of the project;
26.7(3) an assessment of the potential to attract new or continue existing public and
26.8private research grant awards resulting from the project;
26.9(4) a detailed risk analysis projecting the likelihood of clinical success resulting in
26.10revenues or royalty payments from the project;
26.11(5) an assessment of the likelihood for and potential cost savings for publicly
26.12funded health care and long-term care programs from the project as a result of reducing
26.13the incidence or lowering the treatment costs of debilitating illnesses and diseases over
26.14the next ten years;
26.15(6) a timeline indicating the major milestones of research projects and their
26.16anticipated completion dates, including any previously completed similar research; and
26.17(7) an estimate of any potential current and future employment opportunities
26.18within the state, stimulation of economic growth, and the possibility for advancing the
26.19development of commercially successful and affordable regenerative medicine products,
26.20processes, or services. The application requirements are not in priority order and the
26.21commissioner may weigh each item, depending upon the facts and circumstances, as
26.22the commissioner considers appropriate.
26.23    Subd. 7. Report. The commissioner, on behalf of the office, must report to the
26.24legislative chairs with jurisdiction over economic development by January 1 of each
26.25odd-numbered year on successful economic development projects implemented or
26.26initiated since their last report and on plans for the upcoming year.
26.27    Subd. 8. Sunset. The office established under this section expires June 30, 2024.

26.28    Sec. 7. Minnesota Statutes 2012, section 116L.98, is amended to read:
26.29116L.98 WORKFORCE PROGRAM OUTCOMES.
26.30    Subdivision 1. Requirements. The commissioner shall develop and implement a
26.31set of standard approaches for assessing the outcomes of workforce programs under this
26.32chapter. The outcomes assessed must include, but are not limited to, periodic comparisons
26.33of workforce program participants and nonparticipants uniform outcome measurement
26.34and reporting system for adult workforce-related programs funded in whole or in part by
26.35the workforce development fund.
27.1The commissioner shall also monitor the activities and outcomes of programs and
27.2services funded by legislative appropriations and administered by the department on a
27.3pass-through basis and develop a consistent and equitable method of assessing recipients
27.4for the costs of its monitoring activities.
27.5    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
27.6this subdivision have the meanings given.
27.7(b) "Credential" means postsecondary degrees, diplomas, licenses, and certificates
27.8awarded in recognition of an individual's attainment of measurable technical or
27.9occupational skills necessary to obtain employment or advance with an occupation.
27.10This definition does not include certificates awarded by workforce investment boards or
27.11work-readiness certificates.
27.12(c) "Exit" means to have not received service under a workforce program for 90
27.13consecutive calendar days. The exit date is the last date of service.
27.14(d) "Net impact" means the use of matched control groups and regression analysis to
27.15estimate the impacts attributable to program participation net of other factors, including
27.16observable personal characteristics and economic conditions.
27.17(e) "Pre-enrollment" means the period of time before an individual was enrolled
27.18in a workforce program.
27.19    Subd. 3. Uniform outcome report card; reporting by commissioner. (a) By
27.20December 31 of each even-numbered year, the commissioner must report to the chairs
27.21and ranking minority members of the committees of the house of representatives and the
27.22senate having jurisdiction over economic development and workforce policy and finance
27.23the following information separately for each of the previous two fiscal or calendar years,
27.24for each program subject to the requirements of subdivision 1:
27.25(1) the total number of participants enrolled;
27.26(2) the median pre-enrollment wages based on participant wages for the second
27.27through the fifth calendar quarters immediately preceding the quarter of enrollment
27.28excluding those with zero income;
27.29(3) the total number of participants with zero income in the second through fifth
27.30calendar quarters immediately preceding the quarter of enrollment;
27.31(4) the total number of participants enrolled in training;
27.32(5) the total number of participants enrolled in training by occupational group;
27.33(6) the total number of participants that exited the program and the average
27.34enrollment duration of participants that have exited the program during the year;
27.35(7) the total number of exited participants who completed training;
27.36(8) the total number of exited participants who attained a credential;
28.1(9) the total number of participants employed during three consecutive quarters
28.2immediately following the quarter of exit, by industry;
28.3(10) the median wages of participants employed during three consecutive quarters
28.4immediately following the quarter of exit;
28.5(11) the total number of participants employed during eight consecutive quarters
28.6immediately following the quarter of exit, by industry; and
28.7(12) the median wages of participants employed during eight consecutive quarters
28.8immediately following the quarter of exit.
28.9(b) The report to the legislature must contain participant information by education
28.10level, race and ethnicity, gender, and geography, and a comparison of exited participants
28.11who completed training and those who did not.
28.12(c) The requirements of this section apply to programs administered directly by the
28.13commissioner or administered by other organizations under a grant made by the department.
28.14    Subd. 4. Data to commissioner; uniform report card. (a) A recipient of a future
28.15or past grant or direct appropriation made by or through the department must report data
28.16to the commissioner by September 1 of each even-numbered year on each of the items in
28.17subdivision 3 for each program it administers except wages and number employed, which
28.18the department shall provide. The data must be in a format prescribed by the commissioner.
28.19(b) Beginning July 1, 2014, the commissioner shall provide notice to grant applicants
28.20and recipients regarding the data collection and reporting requirements under this
28.21subdivision and must provide technical assistance to applicants and recipients to assist
28.22in complying with the requirements of this subdivision.
28.23    Subd. 5. Information. The information collected and reported under subdivisions 3
28.24and 4 shall be made available on the department's Web site.
28.25    Subd. 6. Limitations on future appropriations. (a) A program that is a recipient
28.26of public funds and subject to the requirements of this section as of May 1, 2014, is not
28.27eligible for additional state appropriations for any fiscal year beginning after June 30,
28.282015, unless all of the reporting requirements under subdivision 4 have been satisfied.
28.29(b) A program with an initial request for funds on or after the effective date of this
28.30section may be considered for receipt of public funds for the first two fiscal years only
28.31if a plan that demonstrates how the data collection and reporting requirements under
28.32subdivision 4 will be met has been submitted and approved by the commissioner. Any
28.33subsequent request for funds after an initial request is subject to the requirements of
28.34paragraph (a).
28.35    Subd. 7. Workforce program net impact analysis. (a) The commissioner
28.36shall contract with an independent entity to conduct a net impact analysis for adult
29.1workforce-related programs funded in whole or in part by the workforce development
29.2fund. The requirements of this section apply to programs administered directly by the
29.3commissioner or administered by other employment organizations under a grant made by
29.4the department. The net impact methodology used by the independent entity should be
29.5based on the methodology and evaluation design used in paragraph (c) and must include:
29.6(1) standardized statistical methods for estimating the net impacts of workforce
29.7services on individual employment, earnings, incarceration avoidance where appropriate,
29.8and public benefits usage outcomes; and
29.9(2) standardized cost-benefit analysis for understanding the monetary impacts of
29.10workforce services from the participant and taxpayer points of view.
29.11(b) By January 15 of the odd year of every other biennium, the commissioner must
29.12report to the chairs and ranking minority members of the committees of the house of
29.13representatives and senate having jurisdiction over economic development and workforce
29.14policy and finance the following information for each program subject to this subdivision:
29.15(1) the net impact of workforce services on individual employment, earnings, and
29.16public benefits usage outcomes; and
29.17(2) cost-benefit analyses for understanding the monetary impacts of workforce
29.18services from the participant and taxpayer points of view. The report must be made
29.19available to the public in an electronic format on the Department of Employment and
29.20Economic Development's Web site.
29.21The department is authorized to create and maintain data-sharing agreements with
29.22other departments, including corrections, human services, and any other department that
29.23are necessary to complete the analysis. The department shall supply the information
29.24collected for use by the independent entity conducting net impact analysis pursuant to the
29.25data practices requirements under chapters 13, 13A, 13B, and 13C.
29.26(c) By January 15, 2015, the commissioner, in partnership with the Governor's
29.27Workforce Development Council, must report to the chairs and ranking minority members
29.28of the committees of the house of representatives and senate having jurisdiction over
29.29economic development and workforce policy and finance the results of the net impact
29.30pilot project already underway.

29.31    Sec. 8. Minnesota Statutes 2012, section 181A.07, is amended by adding a subdivision
29.32to read:
29.33    Subd. 7. Approved training programs. The commissioner may grant exemptions
29.34from any provisions of sections 181A.01 to 181A.12 for minors participating in training
29.35programs approved by the commissioner; or students in a valid apprenticeship program
30.1taught by or required by a trade union, the commissioner of education, the commissioner
30.2of employment and economic development, the Board of Trustees of the Minnesota State
30.3Colleges and Universities, or the Board of Regents of the University of Minnesota.

30.4    Sec. 9. INNOVATION VOUCHER PILOT PROGRAM.
30.5(a) The commissioner of employment and economic development shall develop and
30.6implement an innovation voucher pilot program to provide financing to small businesses
30.7to purchase technical assistance and services from public higher education institutions
30.8and nonprofit entities to assist in the development or commercialization of innovative
30.9new products or services.
30.10(b) Funds available under this section may be used by a small business to access
30.11technical assistance and other services including, but not limited to: research, technical
30.12development, product development, commercialization, technology exploration, and
30.13improved business practices.
30.14(c) To be eligible for a voucher under this section, a business must enter into an
30.15agreement with the commissioner that includes:
30.16(1) a list of the technical assistance and services the business proposes to purchase
30.17and from whom the services will be purchased; and
30.18(2) deliverable outcomes in one of the following areas:
30.19(i) research and development;
30.20(ii) business model development;
30.21(iii) market feasibility;
30.22(iv) operations; or
30.23(v) other outcomes determined by the commissioner.
30.24As part of the agreement, the commissioner must approve the technical assistance and
30.25services to be purchased, and the entities from which the services or technical assistance
30.26will be purchased.
30.27(d) For the purposes of this section, a small business means a business with fewer
30.28than 40 employees.
30.29(e) A voucher award must not exceed $25,000 per business.
30.30(f) The commissioner must report to the chairs of the committees of the house of
30.31representatives and senate having jurisdiction over economic development and workforce
30.32policy and finance issues by December 1, 2014, on the vouchers awarded to date.

30.33    Sec. 10. COMMISSIONER'S ACCOUNTABILITY PLAN.
31.1By December 1, 2014, the commissioner shall report to the committees of the
31.2house of representatives and senate having jurisdiction over workforce development
31.3and economic development policy and finance issues, on the department's plan, and any
31.4request for funding, to design and implement a performance accountability outcome
31.5measurement system for programs under Minnesota Statutes, chapters 116J and 116L.

31.6    Sec. 11. NEW EMPLOYEE TRAINING PARTNERSHIP.
31.7    Subdivision 1. Training partnership initiative. (a) The commissioner of
31.8employment and economic development shall develop and implement a new employee
31.9training partnership to provide rebates to employers that hire and train new employees. To
31.10be eligible for a rebate under this section, an employer must enter into an agreement with
31.11the commissioner under subdivision 3. The commissioner shall give priority to employers
31.12in counties in which the county unemployment rate over the preceding 12 months exceeded
31.13the state average unemployment rate by 1.5 percentage points over the same period.
31.14(b) Before entering into an agreement with an employer, the commissioner must
31.15investigate the applicability of other training programs and determine whether the job skills
31.16partnership grant program is a more suitable source of funding for the training and whether
31.17the training can be completed in a timely manner that meets the needs of the employer.
31.18    The investigation must be completed within 15 days or as soon as reasonably possible
31.19after the employer has provided the commissioner with all the requested information.
31.20(c) The commissioner shall prescribe the form of all applications for rebates, the
31.21timing for submission of applications, the execution of agreements with the commissioner,
31.22and the payment of rebates.
31.23    Subd. 2. Definitions. (a) For the purposes of this section, the terms in this
31.24subdivision have the meanings given.
31.25(b) "Agreement" means the agreement between an employer and the commissioner
31.26for a training partnership.
31.27(c) "Commissioner" means the commissioner of employment and economic
31.28development.
31.29(d) "Cost of training" means all necessary and incidental costs of providing training
31.30services. The term does not include the cost of purchasing equipment to be owned or used
31.31by the training or educational institution or service.
31.32(e) "Disability" has the meaning given under United States Code, title 42, chapter 126.
31.33(f) "Employee" means an individual employed in a new job.
31.34(g) "Employer" means an individual, corporation, partnership, limited liability
31.35company, or association providing new jobs and entering into an agreement.
32.1(h) "Long-term unemployed" has the meaning given by the United States Department
32.2of Labor, Bureau of Labor Standards.
32.3(i) "New job" means a job:
32.4(1) that is provided by a new or expanding business at a location outside of the
32.5metropolitan area, as defined in Minnesota Statutes, section 473.121, subdivision 2;
32.6(2) that provides 32 hours of work per week for a minimum of nine months of the
32.7year and is permanent with no planned termination date; and
32.8(3) for which the employee hired was not (i) formerly employed by the employer
32.9in the state or (ii) a replacement worker, including a worker newly hired as a result of a
32.10labor dispute.
32.11(j) "Rebate" means a payment by the commissioner to an employer for the cost
32.12of training an employee. Rebates are limited to a maximum of $3,000 per employee,
32.13except that the maximum rebate for the training costs of an employee with a disability, an
32.14employee who was considered long-term unemployed, or an employee who is a veteran,
32.15is $4,000 per employee.
32.16(k) "Training partnership" means a training services and rebate arrangement that is
32.17the subject of an agreement entered into between the commissioner and an employer.
32.18(l) "Training services" means training and education specifically directed to new
32.19jobs, determined to be appropriate by the commissioner, including in-house training;
32.20services provided by institutions of higher education, or federal, state, or local agencies; or
32.21private training or educational services. Administrative services, assessment, and testing
32.22costs may be considered as training services.
32.23    Subd. 3. Agreements; required terms. To be eligible for a rebate under this
32.24section, an employer must enter into an agreement with the commissioner that:
32.25(1) identifies the training costs to be incurred by the employer, who will provide the
32.26training services, and the amount of the rebate to be provided by the commissioner;
32.27(2) provides for a guarantee by the employer of payment for all training costs; and
32.28(3) provides that each employee must be paid wages of at least $13 per hour, plus
32.29benefits, except that during a period not to exceed three weeks, during which an employee
32.30is receiving training services, the employee may be paid wages of at least $11 per hour,
32.31plus benefits.
32.32    Subd. 4. Verification prior to payment of rebate. The commissioner shall not
32.33pay any rebate until all training costs and payment of the training costs by the employer
32.34have been verified.
32.35    Subd. 5. Allocation. (a) The commissioner shall allocate payment for rebates
32.36to employers only after receipt of a complete application for the rebate, including the
33.1provision of all of the required information and the execution of an agreement and
33.2approval by the commissioner. In approving applications, the commissioner must give
33.3priority to employers in counties with high seasonally adjusted unemployment rates.
33.4(b) The commissioner may utilize existing on-the-job training rebate or payment
33.5processes or procedures.
33.6    Subd. 6. Report. By February 1, 2015, the commissioner shall report to the
33.7committees of the house of representatives and the senate having jurisdiction over economic
33.8development policy and finance. The report must include the following information:
33.9(1) the total amount of rebates issued;
33.10(2) the number of individuals receiving training, including disaggregate data
33.11for employees who are individuals with disabilities, veterans, or who were long-term
33.12unemployed;
33.13(3) an analysis of the effectiveness of the rebate in encouraging employment; and
33.14(4) any other information the commissioner determines appropriate.

33.15    Sec. 12. PILOT PROGRAMS; PRECISION MANUFACTURING AND HEALTH
33.16CARE SERVICES.
33.17    The commissioner of labor and industry shall establish pilot programs to develop
33.18competency standards for apprenticeship programs in precision manufacturing and health
33.19care services. The pilot programs shall be administered by the registered apprenticeship
33.20program within the Department of Labor and Industry. In establishing the pilot programs,
33.21the commissioner may convene recognized industry experts and representative employers
33.22to assist in defining credible competency standards acceptable to the information
33.23technology and health care services industries.

33.24    Sec. 13. PILOT PROGRAM; INFORMATION TECHNOLOGY.
33.25    The commissioner of employment and economic development shall establish a pilot
33.26program to develop competency standards for an information technology apprenticeship
33.27program. In establishing the pilot program, the commissioner may convene recognized
33.28industry experts and representative employers to define credible competency standards
33.29acceptable to the information technology industry.

33.30    Sec. 14. OUTCOMES.
33.31    The outcomes expected from each of the pilot programs listed in sections 12 and
33.3213 include:
34.1    (1) establishment of competency standards for entry level and at least two additional
34.2higher skill levels for apprenticeship training in each industry;
34.3    (2) verification of competency standards and skill levels and their transferability by
34.4representatives of each respective industry;
34.5    (3) clarification of ways for Minnesota educational institutions to engage in
34.6providing training to meet the competency standards established; and
34.7    (4) participation from the identified industry sectors.

34.8    Sec. 15. REPEALER.
34.9Minnesota Statutes 2012, section 116J.997, is repealed.


34.12    Section 1. Minnesota Statutes 2012, section 179.02, is amended by adding a
34.13subdivision to read:
34.14    Subd. 6. Receipt of gifts, money; appropriation. (a) The commissioner may apply
34.15for, accept, and disburse gifts, bequests, grants, or payments for services from the United
34.16States, the state, private foundations, or any other source.
34.17    (b) Money received by the commissioner under this subdivision must be deposited in
34.18a separate account in the state treasury and invested by the State Board of Investment. The
34.19amount deposited, including investment earnings, is appropriated to the commissioner
34.20to carry out duties of the commissioner.
34.21(c) The commissioner must post and maintain, on the Bureau of Mediation Services
34.22Web site, a list of the sources of funds and amounts received under this subdivision.
34.23EFFECTIVE DATE.This section is effective the day following final enactment.

34.24    Sec. 2. Minnesota Statutes 2012, section 469.084, is amended by adding a subdivision
34.25to read:
34.26    Subd. 1a. Meetings by telephone or other electronic means. The port authority
34.27may conduct meetings as provided by section 13D.015.


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

35.1

Sec. 5. EXPLORE MINNESOTA TOURISM

$

13,988,000

$

13,988,000

35.2(a) To develop maximum private sector
35.3involvement in tourism, $500,000 in fiscal
35.4year 2014 and $500,000 in fiscal year 2015
35.5must be matched by Explore Minnesota
35.6Tourism from nonstate sources. Each $1 of
35.7state incentive must be matched with $6 of
35.8private sector funding. Cash match is defined
35.9as revenue to the state or documented cash
35.10expenditures directly expended to support
35.11Explore Minnesota Tourism programs. Up
35.12to one-half of the private sector contribution
35.13may be in-kind or soft match. The incentive
35.14in fiscal year 2014 shall be based on fiscal
35.15year 2013 private sector contributions. The
35.16incentive in fiscal year 2015 shall be based on
35.17fiscal year 2014 private sector contributions.
35.18This incentive is ongoing.
35.19Funding for the marketing grants is available
35.20either year of the biennium. Unexpended
35.21grant funds from the first year are available
35.22in the second year.
35.23(b) $100,000 of the second year appropriation
35.24is for a grant to the Mille Lacs Tourism
35.25Council to enhance marketing activities
35.26related to tourism promotion in the Mille
35.27Lacs Lake area.
35.28(c) $100,000 of the second year appropriation
35.29is for additional marketing activities.

35.30    Sec. 2. RACING COMMISSION.
35.31$100,000 in fiscal year 2014 and $85,000 in fiscal year 2015 are appropriated
35.32from the racing and card playing regulation account in the special revenue fund to the
35.33Minnesota Racing Commission. These appropriations are onetime and are available
35.34either year of the biennium.

36.4	Section 1. SUMMARY OF APPROPRIATIONS.

36.5The amounts shown in this section summarize direct appropriations, by fund, made
36.6in this article.

36.7			2014		2015		Total
36.8	General	$	-0-	$	36,475,000	$	36,496,000
36.9 36.10	State Government Special Revenue		6,359,000		6,865,000		13,224,000
36.11	Total	$	6,359,000	$	43,361,000	$	49,720,000

36.12

Sec. 2. APPROPRIATIONS.

36.13The sums shown in the columns marked "Appropriations" are added to the
36.14appropriations in Laws 2013, chapter 86, article 1, to the agencies and for the purposes
36.15specified in this article. The appropriations are from the general fund, or another named
36.16fund, and are available for the fiscal years indicated for each purpose. The figures "2014"
36.17and "2015" used in this article mean that the addition to the appropriation listed under
36.18them is available for the fiscal year ending June 30, 2014, or June 30, 2015, respectively.
36.19Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the
36.20day following final enactment.

36.21				APPROPRIATIONS
36.22				Available for the Year
36.23				Ending June 30
36.24					2014		2015

36.25

Sec. 3. DEPARTMENT OF PUBLIC SAFETY

36.26

Subdivision 1.Total Appropriation

$

6,359,000

$

13,126,000

36.27	Appropriations by Fund
36.28	General	-0-	6,261,000
36.29 36.30	State Government Special Revenue	6,359,000	6,865,000

36.31The amounts that may be spent for each
36.32purpose are specified in the following
36.33subdivisions.

36.34

Subd. 2.Emergency Communication Networks

5,059,000

6,865,000

37.1This appropriation is from the state
37.2government special revenue fund for 911
37.3emergency telecommunications services.

37.4

Subd. 3.Office of Justice Programs

-0-

600,000

37.5(a) $300,000 in 2015 is for grants to
37.6fund emergency shelter, housing, or
37.7advocacy services targeted to culturally
37.8specific programming for newer immigrant
37.9populations. The funds must be awarded
37.10to a program or programs that demonstrate
37.11leadership in the community to be served.
37.12This appropriation is added to the base.
37.13(b) $300,000 in 2015 is for grants to sexual
37.14assault advocacy programs for sexual
37.15violence community prevention networks.
37.16For purposes of this section, "sexual
37.17assault" means a violation of Minnesota
37.18Statutes, sections 609.342 to 609.3453. This
37.19appropriation is added to the base.

37.20

Subd. 4.Emergency Management

-0-

5,661,000

37.21$5,661,000 in 2015 is for the disaster
37.22assistance contingency account in Minnesota
37.23Statutes, section 12.221. These funds are
37.24available until spent.

37.25

Subd. 5.Fire Safety Account

1,300,000

-0-

37.26$1,300,000 in 2014 is appropriated from the
37.27fire safety account in the special revenue
37.28fund to the commissioner of public safety
37.29for activities and programs under Minnesota
37.30Statutes, section 299F.012. This is a onetime
37.31appropriation. By January 15, 2015, the
37.32commissioner shall report to the chairs and
37.33ranking minority members of the legislative
37.34committees with jurisdiction over the fire
38.1safety account regarding the balances and
38.2uses of the account.

38.3

Sec. 4. CORRECTIONS

38.4

Subdivision 1.Total Appropriation

$

-0-

$

30,164,000

38.5The amounts that may be spent for each
38.6purpose are specified in the following
38.7subdivisions.

38.8

Subd. 2.Correctional Institutions

-0-

27,321,000

38.9This includes a onetime appropriation of
38.10$11,089,000.

38.11

Subd. 3.Community Services

-0-

1,900,000

38.12

Subd. 4.Operations Support

-0-

900,000

38.13 38.14

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

-0-

50,000

38.15$50,000 in 2015 is for training state and
38.16local community safety personnel in the
38.17use of crisis de-escalation techniques for
38.18use with Minnesota veterans following
38.19their return from active military service in
38.20a combat zone. The director may consult
38.21with any other state or local governmental
38.22official or nongovernmental authority the
38.23director determines to be relevant, to include
38.24postsecondary institutions, when selecting
38.25a service provider for this training. The
38.26training provider must have a demonstrated
38.27understanding of the transitions and
38.28challenges that veterans may experience
38.29during their re-entry into society following
38.30combat service. The training opportunities
38.31provided must be reasonably distributed
38.32statewide. This is a onetime appropriation.

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

39.2

Subd. 7.Emergency Communication Networks

66,470,000

70,233,000

39.3This appropriation is from the state
39.4government special revenue fund for 911
39.5emergency telecommunications services.
39.6(a) Public Safety Answering Points.
39.7$13,664,000 each year is to be distributed
39.8as provided in Minnesota Statutes, section
39.9403.113, subdivision 2 .
39.10(b) Medical Resource Communication
39.11Centers. $683,000 each year is for grants
39.12to the Minnesota Emergency Medical
39.13Services Regulatory Board for the Metro
39.14East and Metro West Medical Resource
39.15Communication Centers that were in
39.16operation before January 1, 2000.
39.17(c) ARMER Debt Service. $17,557,000 the
39.18first year and $23,261,000 the second year
39.19are to the commissioner of finance to pay
39.20debt service on revenue bonds issued under
39.21Minnesota Statutes, section 403.275.
39.22Any portion of this appropriation not needed
39.23to pay debt service in a fiscal year may be
39.24used by the commissioner of public safety to
39.25pay cash for any of the capital improvements
39.26for which bond proceeds were appropriated
39.27by Laws 2005, chapter 136, article 1, section
39.289, subdivision 8, or Laws 2007, chapter 54,
39.29article 1, section 10, subdivision 8.
39.30(d) Metropolitan Council Debt Service.
39.31 $1,410,000 each year is to the commissioner
39.32of finance for payment to the Metropolitan
39.33Council for debt service on bonds issued
39.34under Minnesota Statutes, section 403.27.
40.1(e) (d) ARMER State Backbone Operating
40.2Costs. $5,060,000 each year is to the
40.3commissioner of transportation for costs
40.4of maintaining and operating the statewide
40.5radio system backbone.
40.6(f) (e) ARMER Improvements. $1,000,000
40.7each year is for the Statewide Radio Board for
40.8costs of design, construction, maintenance
40.9of, and improvements to those elements
40.10of the statewide public safety radio and
40.11communication system that support mutual
40.12aid communications and emergency medical
40.13services or provide enhancement of public
40.14safety communication interoperability.
40.15(g) (f) Next Generation 911. $3,431,000
40.16the first year and $6,490,000 the second year
40.17are to replace the current system with the
40.18Next Generation Internet Protocol (IP) based
40.19network. This appropriation is available until
40.20expended. The base level of funding for
40.21fiscal year 2012 shall be $2,965,000.
40.22(h) (g) Grants to Local Government.
40.23$5,000,000 the first year is for grants to
40.24local units of government to assist with
40.25the transition to the ARMER system. This
40.26appropriation is available until June 30, 2012.

40.27    Sec. 7. Laws 2013, chapter 86, article 1, section 12, subdivision 3, as amended by
40.28Laws 2013, chapter 140, section 2, is amended to read:

40.29

Subd. 3.Criminal Apprehension

47,588,000

47,197,000

40.30	Appropriations by Fund
40.31	General	42,315,000	42,924,000
40.32	Special Revenue	3,000,000	2,000,000
40.33 40.34	State Government Special Revenue	7,000	7,000
40.35	Trunk Highway	2,266,000	2,266,000

41.1

(a) DWI Lab Analysis; Trunk Highway Fund

41.2Notwithstanding Minnesota Statutes, section
41.3161.20, subdivision 3 , $1,941,000 each year
41.4is from the trunk highway fund for laboratory
41.5analysis related to driving-while-impaired
41.6cases.

41.7

(b) Criminal History System

41.8$50,000 the first year and $580,000 the
41.9second year from the general fund and,
41.10notwithstanding Minnesota Statutes, section
41.11299A.705, subdivision 4 , $3,000,000 the
41.12first year and $2,000,000 the second year
41.13from the vehicle services account in the
41.14special revenue fund are to replace the state
41.15criminal history system. This appropriation
41.16is available until expended. Of this amount,
41.17$2,980,000 the first year and $2,580,000
41.18the second year are for a onetime transfer
41.19to the Office of Enterprise Technology for
41.20start-up costs. Service level agreements
41.21must document all project-related transfers
41.22under this paragraph. Ongoing operating
41.23and support costs for this system shall
41.24be identified and incorporated into future
41.25service level agreements.
41.26The commissioner is authorized to use funds
41.27appropriated under this paragraph for the
41.28purposes specified in paragraph (c).
41.29The general fund base for this program is
41.30$4,930,000 in fiscal year 2016 and $417,000
41.31in fiscal year 2017.

41.32

(c) Criminal Reporting System

41.33$1,360,000 the first year and $1,360,000 the
41.34second year from the general fund are to
42.1replace the state's crime reporting system
42.2 and include one full-time equivalent business
42.3analyst. This appropriation is available until
42.4expended. Of these amounts, $1,360,000
42.5the first year and $1,360,000 $1,290,000
42.6 the second year are for a onetime transfer
42.7to the Office of Enterprise Technology for
42.8start-up costs. Service level agreements
42.9must document all project-related transfers
42.10under this paragraph. Ongoing operating
42.11and support costs for this system shall
42.12be identified and incorporated into future
42.13service level agreements.
42.14The commissioner is authorized to use funds
42.15appropriated under this paragraph for the
42.16purposes specified in paragraph (b).
42.17The base funding for this program is
42.18$1,360,000 in fiscal year 2016 and $380,000
42.19in fiscal year 2017.

42.20

(d) Forensic Laboratory

42.21$125,000 the first year and $125,000 the
42.22second year from the general fund and,
42.23notwithstanding Minnesota Statutes, section
42.24161.20, subdivision 3 , $125,000 the first
42.25year and $125,000 the second year from the
42.26trunk highway fund are to replace forensic
42.27laboratory equipment at the Bureau of
42.28Criminal Apprehension.
42.29$200,000 the first year and $200,000 the
42.30second year from the general fund and,
42.31notwithstanding Minnesota Statutes, section
42.32161.20, subdivision 3 , $200,000 the first
42.33year and $200,000 the second year from the
42.34trunk highway fund are to improve forensic
43.1laboratory staffing at the Bureau of Criminal
43.2Apprehension.

43.3

(e) Livescan Fingerprinting

43.4$310,000 the first year and $389,000 the
43.5second year from the general fund are to
43.6maintain Livescan fingerprinting machines.

43.7

(f) Report

43.8If the vehicle services special revenue account
43.9accrues an unallocated balance in excess
43.10of 50 percent of the previous fiscal year's
43.11expenditures, the commissioner of public
43.12safety shall submit a report to the chairs
43.13and ranking minority members of the house
43.14of representatives and senate committees
43.15with jurisdiction over transportation and
43.16public safety policy and finance. The report
43.17must contain specific policy and legislative
43.18recommendations for reducing the fund
43.19balance and avoiding future excessive fund
43.20balances. The report is due within three
43.21months of the fund balance exceeding the
43.22threshold established in this paragraph.

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

43.24 43.25

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

$

3,870,000

$

3,870,000

43.26(a) Excess Amounts Transferred
43.27This appropriation is from the peace officer
43.28training account in the special revenue fund.
43.29Any new receipts credited to that account in
43.30the first year in excess of $3,870,000 must be
43.31transferred and credited to the general fund.
43.32Any new receipts credited to that account in
43.33the second year in excess of $3,870,000 must
44.1be transferred and credited to the general
44.2fund.
44.3(b) Peace Officer Training
44.4Reimbursements
44.5$2,734,000 each year is for reimbursements
44.6to local governments for peace officer
44.7training costs.
44.8(c) Training; Sexually Exploited and
44.9Trafficked Youth
44.10Of the appropriation in paragraph (b),
44.11$100,000 the first year is for reimbursements
44.12to local governments for peace officer
44.13training costs on sexually exploited and
44.14trafficked youth, including effectively
44.15identifying sex trafficked victims and
44.16traffickers, investigation techniques, and
44.17assisting sexually exploited youth. These
44.18funds are available until June 30, 2016.
44.19Reimbursement shall be provided on a flat
44.20fee basis of $100 per diem per officer.
44.21EFFECTIVE DATE.This section is effective the day following final enactment.


44.24    Section 1. Minnesota Statutes 2012, section 13.84, subdivision 5, is amended to read:
44.25    Subd. 5. Disclosure. Private or confidential court services data shall not be
44.26disclosed except:
44.27(a) pursuant to section 13.05;
44.28(b) pursuant to a statute specifically authorizing disclosure of court services data;
44.29(c) with the written permission of the source of confidential data;
44.30(d) to the court services department, parole or probation authority or state or local
44.31correctional agency or facility having statutorily granted supervision over the individual
44.32subject of the data;
44.33(e) pursuant to subdivision 6; or
45.1(f) pursuant to a valid court order.; or
45.2(g) pursuant to section 611A.06, subdivision 6.
45.3EFFECTIVE DATE.This section is effective January 1, 2015.

45.4    Sec. 2. Minnesota Statutes 2012, section 13.84, subdivision 6, is amended to read:
45.5    Subd. 6. Public benefit data. (a) The responsible authority or its designee of a
45.6parole or probation authority or correctional agency may release private or confidential
45.7court services data related to:
45.8(1) criminal acts to any law enforcement agency, if necessary for law enforcement
45.9purposes; and
45.10(2) criminal acts or delinquent acts to the victims of criminal or delinquent acts to the
45.11extent that the data are necessary for the victim to assert the victim's legal right to restitution.
45.12(b) A parole or probation authority, a correctional agency, or agencies that provide
45.13correctional services under contract to a correctional agency may release to a law
45.14enforcement agency the following data on defendants, parolees, or probationers: current
45.15address, dates of entrance to and departure from agency programs, and dates and times of
45.16any absences, both authorized and unauthorized, from a correctional program.
45.17(c) The responsible authority or its designee of a juvenile correctional agency may
45.18release private or confidential court services data to a victim of a delinquent act to the
45.19extent the data are necessary to enable the victim to assert the victim's right to request
45.20notice of release under section 611A.06. The data that may be released include only the
45.21name, home address, and placement site of a juvenile who has been placed in a juvenile
45.22correctional facility as a result of a delinquent act.
45.23(d) Upon the victim's written or electronic request and, if the victim and offender
45.24have been household or family members as defined in section 518B.01, subdivision 1,
45.25paragraph (b), the commissioner of corrections or the commissioner's designee may
45.26disclose to the victim of an offender convicted of a crime pursuant to section 609.02,
45.27subdivision 16, notification of the city and five-digit zip code of the offender's residency
45.28upon or after release from a Department of Corrections facility, unless:
45.29(1) the offender is not supervised by the commissioner of corrections or the
45.30commissioner's designee at the time of the victim's request;
45.31(2) the commissioner of corrections or the commissioner's designee does not have
45.32the city or zip code; or
45.33(3) the commissioner of corrections or the commissioner's designee reasonably
45.34believes that disclosure of the city or zip code of the offender's residency creates a risk
45.35to the victim, offender, or public safety.
46.1EFFECTIVE DATE.This section is effective January 1, 2015.

46.2    Sec. 3. Minnesota Statutes 2012, section 243.167, subdivision 1, is amended to read:
46.3    Subdivision 1. Definition. As used in this section, "crime against the person" means
46.4a violation of any of the following or a similar law of another state or of the United States:
46.5section 609.165; 609.185; 609.19; 609.195; 609.20; 609.205; 609.221; 609.222; 609.223;
46.6609.2231 ; 609.224, subdivision 2 or 4; 609.2242, subdivision 2 or 4; 609.2247; 609.235;
46.7609.245, subdivision 1 ; 609.25; 609.255; 609.3451, subdivision 2 3; 609.498, subdivision
46.81 ; 609.582, subdivision 1; or 617.23, subdivision 2; or any felony-level violation of
46.9section 609.229; 609.377; 609.749; or 624.713.

46.10    Sec. 4. Minnesota Statutes 2012, section 299F.012, subdivision 1, is amended to read:
46.11    Subdivision 1. Authorized programs within department. From the revenues
46.12appropriated from the fire safety account, established under section 297I.06, subdivision
46.133, the commissioner of public safety may expend funds for the activities and programs
46.14identified by the advisory committee established under subdivision 2 and recommended
46.15to the commissioner of public safety. The commissioner shall not expend funds without
46.16the recommendation of the advisory committee established under subdivision 2. The
46.17commissioner shall not expend funds without the recommendation of the advisory
46.18committee established under subdivision 2. These funds are to be used to provide
46.19resources needed for identified activities and programs of the Minnesota fire service and to
46.20ensure the State Fire Marshal Division responsibilities are fulfilled.

46.21    Sec. 5. Minnesota Statutes 2012, section 299F.012, subdivision 2, is amended to read:
46.22    Subd. 2. Fire Service Advisory Committee. (a) The Fire Service Advisory
46.23Committee shall provide recommendations to the commissioner of public safety on
46.24fire service-related issues and shall consist of representatives of each of the following
46.25organizations: two appointed by the president of the Minnesota State Fire Chiefs
46.26Association, two appointed by the president of the Minnesota State Fire Department
46.27Association, two appointed by the president of the Minnesota Professional Fire Fighters,
46.28two appointed by the president of the League of Minnesota Cities, one appointed by the
46.29president of the Minnesota Association of Townships, one appointed by the president
46.30of the Insurance Federation of Minnesota, one appointed jointly by the presidents of
46.31the Minnesota Chapter of the International Association of Arson Investigators and the
46.32Fire Marshals Association of Minnesota, and the commissioner of public safety or the
46.33commissioner's designee. The commissioner of public safety must ensure that at least
47.1three of the members of the advisory committee work and reside in counties outside of the
47.2seven-county metropolitan area. The committee shall provide funding recommendations
47.3to the commissioner of public safety from the fire safety fund for the following purposes:
47.4(1) for the Minnesota Board of Firefighter Training and Education;
47.5(2) for programs and staffing for the State Fire Marshal Division; and
47.6(3) for fire-related regional response team programs and any other fire service
47.7programs that have the potential for statewide impact.
47.8    (b) The committee under paragraph (a) does not expire.

47.9    Sec. 6. Minnesota Statutes 2012, section 609.135, subdivision 2, is amended to read:
47.10    Subd. 2. Stay of sentence maximum periods. (a) If the conviction is for a felony
47.11other than section 609.21, subdivision 1a, paragraph (b) or (c), the stay shall be for not
47.12more than four years or the maximum period for which the sentence of imprisonment
47.13might have been imposed, whichever is longer.
47.14(b) If the conviction is for a gross misdemeanor violation of section 169A.20
47.15or 609.21, subdivision 1a, paragraph (d), or for a felony described in section 609.21,
47.16subdivision 1a , paragraph (b) or (c), the stay shall be for not more than six years. The
47.17court shall provide for unsupervised probation for the last year of the stay unless the court
47.18finds that the defendant needs supervised probation for all or part of the last year.
47.19(c) If the conviction is for a gross misdemeanor violation of section 609.3451,
47.20subdivision 1, the stay shall be for not more than six years.
47.21(c) (d) If the conviction is for a gross misdemeanor not specified in paragraph (b),
47.22the stay shall be for not more than two years.
47.23(d) (e) If the conviction is for any misdemeanor under section 169A.20; 609.746,
47.24subdivision 1 ; 609.79; or 617.23; or for a misdemeanor under section 609.2242 or
47.25609.224, subdivision 1 , in which the victim of the crime was a family or household
47.26member as defined in section 518B.01, the stay shall be for not more than two years. The
47.27court shall provide for unsupervised probation for the second year of the stay unless the
47.28court finds that the defendant needs supervised probation for all or part of the second year.
47.29(e) (f) If the conviction is for a misdemeanor not specified in paragraph (d) (e), the
47.30stay shall be for not more than one year.
47.31(f) (g) The defendant shall be discharged six months after the term of the stay
47.32expires, unless the stay has been revoked or extended under paragraph (g) (h), or the
47.33defendant has already been discharged.
48.1(g) (h) Notwithstanding the maximum periods specified for stays of sentences under
48.2paragraphs (a) to (f) (g), a court may extend a defendant's term of probation for up to one
48.3year if it finds, at a hearing conducted under subdivision 1a, that:
48.4(1) the defendant has not paid court-ordered restitution in accordance with the
48.5payment schedule or structure; and
48.6(2) the defendant is likely to not pay the restitution the defendant owes before the
48.7term of probation expires.
48.8This one-year extension of probation for failure to pay restitution may be extended by
48.9the court for up to one additional year if the court finds, at another hearing conducted
48.10under subdivision 1a, that the defendant still has not paid the court-ordered restitution
48.11that the defendant owes.
48.12Nothing in this subdivision limits the court's ability to refer the case to collections
48.13under section 609.104.
48.14(h) (i) Notwithstanding the maximum periods specified for stays of sentences under
48.15paragraphs (a) to (f) (g), a court may extend a defendant's term of probation for up to three
48.16years if it finds, at a hearing conducted under subdivision 1c, that:
48.17(1) the defendant has failed to complete court-ordered treatment successfully; and
48.18(2) the defendant is likely not to complete court-ordered treatment before the term of
48.19probation expires.
48.20EFFECTIVE DATE.This section is effective August 1, 2014, and applies to crimes
48.21committed on or after that date.

48.22    Sec. 7. Minnesota Statutes 2012, section 609.3451, subdivision 3, is amended to read:
48.23    Subd. 3. Felony. A person is guilty of a felony and may be sentenced to
48.24imprisonment for not more than five ten years or to payment of a fine of not more than
48.25$10,000, or both, if the person violates subdivision 1, clause (2), this section within ten
48.26years after having been previously convicted of or adjudicated delinquent for violating
48.27subdivision 1, clause (2) this section; sections 609.342 to 609.345; or 609.3453; section
48.28 617.23, subdivision 2, clause (1); 617.247; or a statute from another state in conformity
48.29with subdivision 1, clause (2), or section 617.23, subdivision 2, clause (1) therewith.
48.30EFFECTIVE DATE.This section is effective August 1, 2014, and applies to crimes
48.31committed on or after that date.

48.32    Sec. 8. Minnesota Statutes 2012, section 611A.06, is amended by adding a subdivision
48.33to read:
49.1    Subd. 6. Offender location. (a) Upon the victim's written or electronic request
49.2and if the victim and offender have been household or family members as defined in
49.3section 518B.01, subdivision 2, paragraph (b), the commissioner of corrections or the
49.4commissioner's designee shall disclose to the victim of an offender convicted of a crime
49.5pursuant to section 609.02, subdivision 16, notification of the city and five-digit zip code
49.6of the offender's residency upon release from a Department of Corrections facility, unless:
49.7(1) the offender is not supervised by the commissioner of corrections or the
49.8commissioner's designee at the time of the victim's request;
49.9(2) the commissioner of corrections or the commissioner's designee does not have
49.10the city or zip code; or
49.11(3) the commissioner of corrections or the commissioner's designee reasonably
49.12believes that disclosure of the city or zip code of the offender's residency creates a risk
49.13to the victim, offender, or public safety.
49.14(b) All identifying information regarding the victim including, but not limited to, the
49.15notification provided by the commissioner of corrections or the commissioner's designee
49.16is classified as private data on individuals as defined in section 13.02, subdivision 12, and
49.17is accessible only to the victim.
49.18EFFECTIVE DATE.This section is effective January 15, 2015.

49.19    Sec. 9. REVISOR'S INSTRUCTION.
49.20In the next edition of Minnesota Statutes, the revisor of statutes shall change the
49.21headnote of section 609.3451, subdivision 2, from "Penalty" to "Gross misdemeanor."


49.24    Section 1. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision
49.25to read:
49.26    Subd. 5d. Local government. "Local government" has the meaning given in Code
49.27of Federal Regulations, title 44, section 206.2 (2012).

49.28    Sec. 2. Minnesota Statutes 2012, section 12.03, is amended by adding a subdivision to
49.29read:
49.30    Subd. 6b. Nonfederal share. "Nonfederal share" has the meaning given in section
49.3112A.02, subdivision 7.

50.1    Sec. 3. Minnesota Statutes 2012, section 12.221, subdivision 4, is amended to read:
50.2    Subd. 4. Subgrant agreements; state share. (a) The state director, serving as the
50.3governor's authorized representative, may enter into subgrant agreements with eligible
50.4applicants to provide federal and state financial assistance made available as a result
50.5of a disaster declaration.
50.6(b) When state funds are used to provide the FEMA Public Assistance Program
50.7cost-share requirement for a local government, the state director must award a local
50.8government 100 percent of the nonfederal share of the local government's FEMA Public
50.9Assistance Program costs.

50.10    Sec. 4. Minnesota Statutes 2012, section 12.221, is amended by adding a subdivision
50.11to read:
50.12    Subd. 6. Disaster assistance contingency account; appropriation. (a) A disaster
50.13assistance contingency account is created in the general fund in the state treasury. Money
50.14in the disaster assistance contingency account is appropriated to the commissioner of
50.15public safety to provide:
50.16(1) cost-share for federal assistance under section 12A.15, subdivision 1; and
50.17(2) state public disaster assistance to eligible applicants under chapter 12B.
50.18(b) For appropriations under paragraph (a), clause (1), the amount appropriated is
50.19100 percent of any nonfederal share for state agencies and local governments. Money
50.20appropriated under paragraph (a), clause (1), may be used to pay all or a portion of the
50.21nonfederal share for publicly owned capital improvement projects.
50.22(c) For appropriations under paragraph (a), clause (2), the amount appropriated
50.23is the amount required to pay eligible claims under chapter 12B, as certified by the
50.24commissioner of public safety.
50.25(d) If the amount appropriated is insufficient to cover costs for paragraph (a), clauses
50.26(1) and (2), the commissioner of public safety shall pay up to an additional $4,000,000
50.27from the general fund appropriation provided under this paragraph. No payment shall be
50.28made under this paragraph until:
50.29(1) the commissioner of public safety has given the commissioner of management
50.30and budget an estimate of the additional funds required;
50.31(2) the commissioner of management and budget has reported the estimate to the
50.32chairs of the house of representatives Ways and Means Committee and the senate Finance
50.33Committee; and
50.34(3) the commissioner of management and budget has approved the payments.
51.1(e) Amounts approved by the commissioner of management and budget, up to
51.2$4,000,000 per fiscal year, are appropriated from the general fund to the commissioner
51.3of public safety. By January 15 of each year, the commissioner of management and
51.4budget shall submit a report to the chairs of the house of representatives Ways and
51.5Means Committee and the senate Finance Committee detailing state disaster assistance
51.6appropriations and expenditures under this subdivision during the previous calendar year.
51.7(f) The governor's budget proposal submitted to the legislature under section 16A.11
51.8must include recommended appropriations to the disaster assistance contingency account.
51.9The governor's appropriation recommendations must be informed by the commissioner of
51.10public safety's estimate of the amount of money that will be necessary to:
51.11(1) provide 100 percent of the nonfederal share for state agencies and local
51.12governments that will receive federal financial assistance from FEMA during the next
51.13biennium; and
51.14(2) fully pay all eligible claims under chapter 12B.
51.15(g) Notwithstanding section 16A.28:
51.16(1) funds appropriated or transferred to the disaster assistance contingency account
51.17do not lapse but remain in the account until appropriated; and
51.18(2) funds appropriated from the disaster assistance contingency account do not lapse
51.19and are available until expended.

51.20    Sec. 5. Minnesota Statutes 2012, section 12A.02, subdivision 2, is amended to read:
51.21    Subd. 2. Appropriation. "Appropriation" means an appropriation provided in law
51.22specifically to implement this chapter, including but not limited to a statutory appropriation
51.23to provide the required cost-share for federal disaster assistance under section 12.221.

51.24    Sec. 6. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
51.25to read:
51.26    Subd. 6. Local government. "Local government" has the meaning given in section
51.2712.03, subdivision 5d.

51.28    Sec. 7. Minnesota Statutes 2012, section 12A.02, is amended by adding a subdivision
51.29to read:
51.30    Subd. 7. Nonfederal share. "Nonfederal share" means that portion of total FEMA
51.31Public Assistance Program costs that is no more than 25 percent and is not eligible for
51.32FEMA reimbursement.

52.1    Sec. 8. Minnesota Statutes 2012, section 12A.03, subdivision 3, is amended to read:
52.2    Subd. 3. Nonduplication of federal assistance. State assistance may not duplicate
52.3or supplement eligible FEMA Public Assistance Program assistance. For eligible Public
52.4Assistance Program costs, any state matching cost-share money made available for
52.5that assistance must be disbursed by the Department of Public Safety to a state agency,
52.6local political subdivision, Indian tribe government, or other applicant. State assistance
52.7distributed by a state agency, other than the Department of Public Safety, to a political
52.8subdivision local government or other applicant for disaster costs that are eligible for
52.9FEMA Public Assistance Program assistance constitutes an advance of funds. Such
52.10advances must be repaid to the applicable state agency when the applicant has received
52.11the FEMA Public Assistance Program assistance, and whatever state matching cost-share
52.12 money may be made available for that assistance, from the Department of Public Safety.

52.13    Sec. 9. Minnesota Statutes 2012, section 12A.15, subdivision 1, is amended to read:
52.14    Subdivision 1. State match cost-share for federal assistance. State appropriations
52.15may be used for payment of the state match for federal disaster assistance to pay 100
52.16percent of the nonfederal share for state agencies. If authorized in law, state appropriations
52.17may be used to pay all or a portion of the local share of the match for federal funds for
52.18political subdivisions and local governments under section 12.221. An appropriation from
52.19the bond proceeds fund may be used to fund federal match obligations as cost-share for
52.20federal disaster assistance for publicly owned capital improvement projects resulting from
52.21the receipt of federal disaster assistance.

52.22    Sec. 10. Minnesota Statutes 2012, section 16A.28, is amended by adding a subdivision
52.23to read:
52.24    Subd. 9. Disaster assistance. (a) The commissioner of management and budget
52.25must transfer the unexpended and unencumbered balance of a general fund disaster
52.26assistance appropriation that expires as provided under this section or as otherwise provided
52.27by law to the disaster assistance contingency account in section 12.221, subdivision 6.
52.28(b) Expired disaster assistance transferred to the disaster assistance contingency
52.29account is appropriated as provided under section 12.221, subdivision 6, regardless of the
52.30specific disaster event or purpose for which the expired disaster assistance was originally
52.31appropriated.
52.32(c) The commissioner must report each transfer to the chairs of the house of
52.33representatives Ways and Means Committee and the senate Finance Committee.
53.1(d) For the purposes of this subdivision, "disaster assistance appropriation" means
53.2an appropriation from the general fund to provide cost-share required for federal disaster
53.3assistance or to provide other state disaster assistance under chapter 12A or 12B.

53.4    Sec. 11. EFFECTIVE DATE.
53.5This article is effective the day following final enactment.


53.8    Section 1. [12B.10] PUBLIC DISASTER ASSISTANCE; ABSENT FEDERAL
53.9AID.
53.10This chapter establishes a state public assistance program to provide cost-share
53.11assistance to local governments that sustain significant damage on a per capita basis but
53.12are not eligible for federal disaster assistance or corresponding state assistance under
53.13chapter 12A.

53.14    Sec. 2. [12B.15] DEFINITIONS.
53.15    Subdivision 1. Application. The definitions in this section apply to this chapter.
53.16    Subd. 2. Applicant. "Applicant" means a local government that applies for state
53.17disaster assistance under this chapter.
53.18    Subd. 3. Commissioner. "Commissioner" means the commissioner of public safety.
53.19    Subd. 4. Director. "Director" means the director of the Division of Homeland
53.20Security and Emergency Management in the Department of Public Safety.
53.21    Subd. 5. Disaster. "Disaster" means any catastrophe, including but not limited
53.22to a tornado, storm, high water, wind-driven water, tidal wave, earthquake, volcanic
53.23eruption, landslide, mudslide, snowstorm, or drought or, regardless of cause, any fire,
53.24flood, or explosion.
53.25    Subd. 6. FEMA. "FEMA" means the Federal Emergency Management Agency.
53.26    Subd. 7. Incident period. "Incident period" means the time interval of a disaster as
53.27delineated by specific start and end dates.
53.28    Subd. 8. Local government. "Local government" has the meaning given in section
53.2912A.03, subdivision 5d.

53.30    Sec. 3. [12B.25] ELIGIBILITY CRITERIA; CONSIDERATIONS.
53.31    Subdivision 1. Payment required; eligibility criteria. The director, serving as
53.32the governor's authorized representative, may enter into grant agreements with eligible
54.1applicants to provide state financial assistance made available as a result of a disaster
54.2that satisfies all of the following criteria:
54.3(1) the state and applicable local government declares a disaster or emergency
54.4during the incident period;
54.5(2) damages suffered and eligible costs incurred are the direct result of the disaster;
54.6(3) federal disaster assistance is not available to the applicant because the governor
54.7did not request a presidential declaration of major disaster, the president denied the
54.8governor's request, or the applicant is not eligible for federal disaster assistance because
54.9the state or county did not meet the per capita impact indicator under FEMA's Public
54.10Assistance Program;
54.11(4) the applicant incurred eligible damages that, on a per capita basis, equal or
54.12exceed 50 percent of the countywide per capita impact indicator under FEMA's Public
54.13Assistance Program;
54.14(5) the applicant assumes responsibility for 25 percent of the applicant's total
54.15eligible costs; and
54.16(6) the applicant satisfies all requirements in this chapter.
54.17    Subd. 2. Considerations; other resources available. When evaluating applicant
54.18eligibility under subdivision 1, the director must consider:
54.19(1) the availability of other resources from federal, state, local, private, or other
54.20sources; and
54.21(2) the availability or existence of insurance.

54.22    Sec. 4. [12B.30] ELIGIBLE COSTS.
54.23    Subdivision 1. Eligible costs. Costs eligible for payment under this chapter are
54.24those costs that would be eligible for federal financial assistance under FEMA's Public
54.25Assistance Program.
54.26    Subd. 2. Ineligible costs. Ineligible costs are all costs not included in subdivision
54.271, including but not limited to:
54.28(1) ordinary operating expenses, including salaries and expenses of employees and
54.29public officials that are not directly related to the disaster response;
54.30(2) costs for which payment has been or will be received from any other funding
54.31source;
54.32(3) disaster-related costs that should, in the determination of the director, be covered
54.33and compensated by insurance; and
54.34(4) projects and claims totaling less than the minimum FEMA project threshold.

55.1    Sec. 5. [12B.35] APPLICANT'S SHARE.
55.2An applicant's share of eligible costs incurred must not be less than 25 percent. The
55.3substantiated value of donated materials, equipment, services, and labor may be used as
55.4all or part of the applicant's share of eligible costs, subject to the following:
55.5(1) all items and sources of donation must be indicated on the application and any
55.6supporting documentation submitted to the commissioner;
55.7(2) the rate for calculating the value of donated, nonprofessional labor is the
55.8prevailing federal minimum wage;
55.9(3) the value of donated equipment may not exceed the highway equipment rates
55.10approved by the commissioner of transportation; and
55.11(4) the value of donated materials and professional services must conform to market
55.12rates and be established by invoice.

55.13    Sec. 6. [12B.40] APPLICATION PROCESS.
55.14(a) The director must develop application materials and may update the materials as
55.15needed. Application materials must include instructions and requirements for assistance
55.16under this chapter.
55.17(b) An applicant has 30 days from the end of the incident period or the president's
55.18official denial of the governor's request for a declaration of a major disaster to provide the
55.19director with written notice of intent to apply. The director may deny an application due to
55.20a late notice of intent to apply.
55.21(c) Within 60 days after the end of the incident period or the president's official denial
55.22of the governor's request for a declaration of a major disaster, the applicant must submit a
55.23complete application to the director. A complete application includes the following:
55.24(1) the cause, location of damage, and incident period;
55.25(2) documentation of a local, tribal, county, or state disaster or emergency
55.26declaration in response to the disaster;
55.27(3) a description of damages, an initial damage assessment, and the amount of
55.28eligible costs incurred by the applicant;
55.29(4) a statement or evidence that the applicant has the ability to pay for at least 25
55.30percent of total eligible costs incurred from the disaster; and
55.31(5) a statement or evidence that the local government has incurred damages equal to
55.32or exceeding 50 percent of the federal countywide threshold in effect during the incident
55.33period.
55.34(d) The director must review the application and supporting documentation for
55.35completeness and may return the application with a request for more detailed information.
56.1The director may consult with local public officials to ensure the application reflects the
56.2extent and magnitude of the damage and to reconcile any differences. The application is
56.3not complete until the director receives all requested information.
56.4(e) If the director returns an application with a request for more detailed information
56.5or for correction of deficiencies, the applicant must submit all required information within
56.630 days of the applicant's receipt of the director's request. The applicant's failure to
56.7provide the requested information in a timely manner without a reasonable explanation
56.8may be cause for denial of the application.
56.9(f) The director has no more than 60 days from the receipt of a complete application
56.10to approve or deny the application, or the application is deemed approved. If the director
56.11denies an application, the director must send a denial letter. If the director approves an
56.12application or the application is automatically deemed approved after 60 days, the director
56.13must notify the applicant of the steps necessary to obtain reimbursement of eligible
56.14costs, including submission of invoices or other documentation substantiating the costs
56.15submitted for reimbursement.

56.16    Sec. 7. [12B.45] CLAIMS PROCESS.
56.17    Subdivision 1. Claims; appeal. (a) An applicant must submit to the director
56.18completed claims for payment of actual and eligible costs on forms provided by the
56.19director. All eligible costs claimed for payment must be documented and consistent with
56.20the eligibility provisions of this chapter.
56.21(b) If the director denies an applicant's claim for payment, the applicant has 30 days
56.22from receipt of the director's determination to appeal in writing to the commissioner. The
56.23appeal must include the applicant's rationale for reversing the director's determination. The
56.24commissioner has 30 days from receipt of the appeal to uphold or modify the director's
56.25determination and formally respond to the applicant. If, within 30 days of receiving
56.26the commissioner's decision, the applicant notifies the commissioner that the applicant
56.27intends to contest the commissioner's decision, the Office of Administrative Hearings shall
56.28conduct a hearing under the contested case provisions of chapter 14.
56.29    Subd. 2. Final inspection. Upon completion of all work by an applicant, the
56.30director may inspect all work claimed by the applicant. The applicant must provide the
56.31director with access to records pertaining to all claimed work and must permit the director
56.32to review all records relating to the work.
56.33    Subd. 3. Closeout. The director must close out an applicant's disaster assistance
56.34application after all of the following occur:
56.35(1) eligible work is complete;
57.1(2) the applicant receives the final amount due or pays any amount owed under
57.2section 12B.50; and
57.3(3) any extant or scheduled audits are complete.
57.4    Subd. 4. Audit. (a) An applicant must account for all funds received under this
57.5chapter in conformance with generally accepted accounting principles and practices. The
57.6applicant must maintain detailed records of expenditures to show that grants received under
57.7this chapter were used for the purpose for which the payment was made. The applicant
57.8must maintain records for five years and make the records available for inspection and
57.9audit by the director or the state auditor. The applicant must keep all financial records for
57.10five years after the final payment, including but not limited to all invoices and canceled
57.11checks or bank statements that support all eligible costs claimed by the applicant.
57.12(b) The director or state auditor may audit all applicant records pertaining to an
57.13application or payment under this chapter.
57.14    Subd. 5. Reporting payments. The director must post on the division Web site a
57.15list of the recipients and amounts of the payments made under this chapter.

57.16    Sec. 8. [12B.50] FUNDING FROM OTHER SOURCES; REPAYMENT
57.17REQUIRED.
57.18If an applicant subsequently recovers eligible costs from another source after
57.19receiving payment under this chapter, the applicant must pay the commissioner an amount
57.20equal to the corresponding state funds received within 30 days. The commissioner must
57.21deposit any repayment in the disaster response contingency account in section 12.221,
57.22subdivision 6.

57.23    Sec. 9. EFFECTIVE DATE.
57.24This article is effective the day following final enactment.

57.28

Section 1. APPROPRIATIONS.

57.29The sums shown in the columns marked "Appropriations" are added to the
57.30appropriations in Laws 2013, chapter 117, article 1, unless otherwise specified, to the
57.31agencies and for the purposes specified in this article. Unless otherwise specified, the
57.32appropriations are not added to the base appropriation for each purpose. The appropriations
58.1are from the general fund, or another named fund, and are available for the fiscal years
58.2indicated for each purpose. The figures "2014" and "2015" used in this article mean that the
58.3appropriations listed under them are available for the fiscal year ending June 30, 2014, or
58.4June 30, 2015, respectively. For purposes of this article, "the first year" is fiscal year 2014,
58.5"the second year" is fiscal year 2015, and "the biennium" is fiscal years 2014 and 2015.

58.6				APPROPRIATIONS
58.7				Available for the Year
58.8				Ending June 30
58.9					2014		2015

58.10 58.11

Sec. 2. DEPARTMENT OF TRANSPORTATION

58.12

Subdivision 1.Total Appropriation

$

10,000,000

$

42,732,000

58.13The amounts that may be spent for each
58.14purpose are specified in the following
58.15subdivisions.

58.16

Subd. 2.Multimodal Systems

58.17

(a) Election Day Transit Service

32,000

58.18This appropriation is for allocation to public
58.19transit systems under Minnesota Statutes,
58.20section 174.24, in amounts that reflect the
58.21respective foregone fare revenues from
58.22transit service under Minnesota Statutes,
58.23section 174.24, subdivision 8.

58.24

(b) Safe Routes to School

250,000

58.25This appropriation is for non-infrastructure
58.26activities in the safe routes to school program
58.27under Minnesota Statutes, section 174.40,
58.28subdivision 7a.

58.29 58.30

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

5,000,000

58.31This appropriation is for development and
58.32implementation of safety improvements at
58.33highway grade crossings along rail corridors
58.34in which oil or other hazardous materials are
59.1transported. The commissioner shall identify
59.2highway-rail grade crossing locations and
59.3improvements in consultation with railroads
59.4and relevant road authorities.

59.5

(d) Port Development Assistance Program

500,000

59.6This appropriation is for grants under the
59.7port development assistance program in
59.8Minnesota Statutes, chapter 457A.

59.9

Subd. 3.State Roads

59.10

(a) Winter-Related Trunk Highway Repair

10,000,000

59.11This appropriation is from the trunk highway
59.12fund for materials and supplies related to
59.13road repair resulting from effects of the
59.142013-2014 winter season.

59.15 59.16

(b) Transportation Economic Development Program

4,000,000

59.17This appropriation is for the transportation
59.18economic development program under
59.19Minnesota Statutes, section 174.12.

59.20

(c) Corridors of Commerce Program

10,000,000

59.21This appropriation is for the corridors
59.22of commerce program under Minnesota
59.23Statutes, section 161.088, and may include
59.24right-of-way acquisition for projects included
59.25in the program. The commissioner may
59.26identify projects based on the most recent
59.27selection process or may perform a new
59.28selection.

59.29

Subd. 4.Local Roads

59.30 59.31

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

11,448,000

60.1This appropriation is for materials and
60.2supplies related to road repair resulting from
60.3effects of the 2013-2014 winter season.
60.4By September 1, 2014, the commissioner
60.5shall apportion funds to counties in the
60.6same manner as county state-aid highway
60.7funds provided for calendar year 2014 under
60.8Minnesota Statutes, section 162.07.

60.9 60.10

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

3,552,000

60.11This appropriation is for materials and
60.12supplies related to road repair resulting from
60.13effects of the 2013-2014 winter season.
60.14By September 1, 2014, the commissioner
60.15shall apportion funds to cities in the same
60.16manner as municipal state-aid street funds
60.17provided for calendar year 2014 under
60.18Minnesota Statutes, section 162.13.

60.19

Subd. 5.Willmar District Headquarters

4,370,000

60.20This appropriation is from the trunk
60.21highway fund to complete the Willmar
60.22district headquarters and is added to the
60.23appropriation in Laws 2012, chapter 287,
60.24article 1, section 1, subdivision 2.

60.25

Subd. 6.Little Falls Truck Station

3,580,000

60.26This appropriation is from the trunk highway
60.27fund to complete the Little Falls truck station
60.28and is added to the appropriation in Laws
60.292010, chapter 189, section 15, subdivision 15.
60.30EFFECTIVE DATE.This section is effective the day following final enactment.

60.31

Sec. 3. METROPOLITAN COUNCIL

60.32

Subdivision 1.Total Appropriation

$

10,400,000

61.1The amounts that may be spent for each
61.2purpose are specified in the following
61.3subdivisions.

61.4 61.5

Subd. 2.Transit Development and Improvements

10,150,000

61.6This appropriation is for:
61.7(1) arterial bus rapid transit development,
61.8which may include but is not limited to
61.9design, engineering, construction, capital
61.10costs, technology, equipment, and rolling
61.11stock;
61.12(2) bus rapid transit station development;
61.13(3) transit shelter improvements under
61.14Minnesota Statutes, section 473.41; and
61.15(4) foregone fare revenues from transit
61.16service under Minnesota Statutes, section
61.17473.408, subdivision 11. The Metropolitan
61.18Council shall allocate amounts under this
61.19appropriation to transit providers receiving
61.20financial assistance under Minnesota
61.21Statutes, section 473.388, based on
61.22respective foregone fare revenues.

61.23

Subd. 3.Suburban Transit Providers

250,000

61.24This appropriation is for allocation to
61.25replacement service providers operating
61.26under Minnesota Statutes, section 473.388,
61.27as provided in this subdivision.
61.28Upon receipt of a prioritized listing of
61.29expenditure items and amounts submitted
61.30by the Suburban Transit Association, or by
61.31all replacement service providers jointly,
61.32the Metropolitan Council shall distribute all
61.33funds appropriated under this subdivision to
61.34each identified replacement service provider,
62.1following the priority order in the listing. An
62.2expenditure item in the listing must be for
62.3nonoperating transit-related expenses.

62.4

Sec. 4. DEPARTMENT OF PUBLIC SAFETY

62.5

Subdivision 1.Total Appropriation

$

2,060,000

62.6The amounts that may be spent for each
62.7purpose are specified in the following
62.8subdivisions.

62.9

Subd. 2.Transit Safety Oversight

60,000

62.10$60,000 in the second year is for light rail
62.11transit safety oversight under Minnesota
62.12Statutes, section 299A.017, and is added to
62.13the base appropriation for the administration
62.14and related services program.

62.15

Subd. 3.Capitol Security

2,000,000

62.16This appropriation is for an increase in
62.17the number of State Patrol troopers or
62.18other security officers assigned to the
62.19Capitol complex, and is added to the base
62.20appropriation for the capitol security budget
62.21activity.

62.22    Sec. 5. TRANSFER; RAILROAD AND PIPELINE SAFETY.
62.23On or before July 31, 2014, the commissioner of management and budget shall
62.24transfer $2,500,000 from the general fund to the railroad and pipeline safety account in the
62.25special revenue fund under Minnesota Statutes, section 299A.55. This is a onetime transfer.

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

62.27 62.28

Subd. 12.Rochester Maintenance Facility

26,430,000 24,937,000

62.29This appropriation is from the bond proceeds
62.30account in the trunk highway fund.
63.1To prepare a site for and design, construct,
63.2furnish, and equip a new maintenance facility
63.3in Rochester.
63.4EFFECTIVE DATE.This section is effective the day following final enactment.

63.5    Sec. 7. Laws 2010, chapter 189, section 26, subdivision 4, is amended to read:
63.6    Subd. 4. Trunk highway fund bond proceeds account. To provide the money
63.7appropriated in this act from the bond proceeds account in the trunk highway fund, the
63.8commissioner of management and budget shall sell and issue bonds of the state in an
63.9amount up to $32,945,000 $31,452,000 in the manner, upon the terms, and with the effect
63.10prescribed by Minnesota Statutes, sections 167.50 to 167.52, and by the Minnesota
63.11Constitution, article XIV, section 11, at the times and in the amounts requested by the
63.12commissioner of transportation. The proceeds of the bonds, except accrued interest and
63.13any premium received from the sale of the bonds, must be credited to the bond proceeds
63.14account in the trunk highway fund.
63.15EFFECTIVE DATE.This section is effective the day following final enactment.

63.16    Sec. 8. Laws 2012, chapter 287, article 2, section 1, is amended to read:
63.17    Section 1. ROCHESTER MAINTENANCE FACILITY.
63.18$16,100,000 $17,593,000 is appropriated to the commissioner of transportation
63.19to design, construct, furnish, and equip the maintenance facility in Rochester and
63.20corresponding remodeling of the existing district headquarters building. This appropriation
63.21is from the bond proceeds account in the trunk highway fund.
63.22EFFECTIVE DATE.This section is effective the day following final enactment.

63.23    Sec. 9. Laws 2012, chapter 287, article 2, section 3, is amended to read:
63.24    Sec. 3. TRUNK HIGHWAY FUND BOND PROCEEDS ACCOUNT.
63.25To provide the money appropriated in this article from the bond proceeds account in
63.26the trunk highway fund, the commissioner of management and budget shall sell and issue
63.27bonds of the state in an amount up to $16,120,000 $17,613,000 in the manner, upon the
63.28terms, and with the effect prescribed by Minnesota Statutes, sections 167.50 to 167.52,
63.29and by the Minnesota Constitution, article XIV, section 11, at the times and in the amounts
63.30requested by the commissioner of transportation. The proceeds of the bonds, except
63.31accrued interest and any premium received from the sale of the bonds, must be credited
63.32to the bond proceeds account in the trunk highway fund.
64.1EFFECTIVE DATE.This section is effective the day following final enactment.

64.2    Sec. 10. Laws 2012, First Special Session chapter 1, article 1, section 28, is amended
64.3to read:
64.4    Sec. 28. TRANSFERS, REDUCTIONS, CANCELLATIONS, AND BOND
64.5SALE AUTHORIZATIONS REDUCED.
64.6(a) The remaining balance of the appropriation in Laws 2010, Second Special
64.7Session chapter 1, article 1, section 7, for the economic development and housing
64.8challenge program, estimated to be $450,000, is transferred to the general fund.
64.9(b) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
64.10section 5, for Minnesota investment fund grants pursuant to Minnesota Statutes, section
64.1112A.07 , is reduced by $1,358,000.
64.12(c) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
64.13section 12, subdivision 2, for disaster enrollment impact aid pursuant to Minnesota
64.14Statutes, section 12A.06, is reduced by $30,000.
64.15(d) The appropriation in Laws 2010, Second Special Session chapter 1, article
64.161, section 12, subdivision 3, for disaster relief facilities grants pursuant to Minnesota
64.17Statutes, section 12A.06, is reduced by $392,000.
64.18(e) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
64.19section 12, subdivision 4, for disaster relief operating grants pursuant to Minnesota
64.20Statutes, section 12A.06, is reduced by $2,000.
64.21(f) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
64.22section 12, subdivision 5, for pupil transportation aid pursuant to Minnesota Statutes,
64.23section 12A.06, is reduced by $5,000.
64.24(g) The appropriation in Laws 2010, Second Special Session chapter 1, article 2,
64.25section 5, subdivision 3, for pupil transportation aid pursuant to Minnesota Statutes,
64.26section 12A.06, is reduced by $271,000.
64.27(h) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
64.28section 13, for public health activities pursuant to Minnesota Statutes, section 12A.08,
64.29is reduced by $103,000.
64.30(i) $1,428,000 $534,000 of the appropriation in Laws 2007, First Special Session
64.31chapter 2, article 1, section 4, subdivision 3, for reconstruction and repair of trunk
64.32highways and trunk highway bridges is canceled. The bond sale authorization in Laws
64.332007, First Special Session chapter 2, article 1, section 15, subdivision 2, is reduced
64.34by $1,428,000 $534,000.
65.1(j) $5,680,000 of the appropriation in Laws 2007, First Special Session chapter 2,
65.2article 1, section 4, subdivision 4, as amended by Laws 2008, chapter 289, section 2, for
65.3grants to local governments for capital costs related to rehabilitation and replacement of
65.4local roads and bridges damaged or destroyed by flooding pursuant to Minnesota Statutes,
65.5section 174.50, is canceled. The bond sale authorization in Laws 2007, First Special
65.6Session chapter 2, article 1, section 15, subdivision 3, is reduced by $5,680,000.
65.7(k) $2,133,000 of the appropriation in Laws 2010, Second Special Session chapter 1,
65.8article 1, section 4, subdivision 3, for local road and bridge rehabilitation and replacement
65.9pursuant to Minnesota Statutes, section 12A.16, subdivision 3, is canceled. The bond
65.10sale authorization in Laws 2010, Second Special Session chapter 1, article 1, section 17,
65.11subdivision 2, is reduced by $2,133,000.
65.12(l) The appropriation in Laws 2010, Second Special Session chapter 1, article 1,
65.13section 4, subdivision 2, for state road infrastructure operations and maintenance pursuant
65.14to Minnesota Statutes, section 12A.16, subdivision 1, is reduced by $819,000.
65.15EFFECTIVE DATE.This section is effective the day following final enactment.

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

65.17

Subd. 2.Multimodal Systems

65.18(a) Aeronautics

65.19 65.20

(1) Airport Development and Assistance

13,648,000 14,648,000

13,648,000 16,648,000

65.21This appropriation is from the state
65.22airports fund and must be spent according
65.23to Minnesota Statutes, section 360.305,
65.24subdivision 4 .
65.25The base appropriation for fiscal years 2016
65.26and 2017 is $14,298,000 for each year.
65.27Notwithstanding Minnesota Statutes, section
65.2816A.28, subdivision 6 , this appropriation is
65.29available for five years after appropriation.
65.30If the appropriation for either year is
65.31insufficient, the appropriation for the other
65.32year is available for it.
66.1For the current biennium, the commissioner
66.2of transportation may establish different
66.3local contribution rates for airport projects
66.4than those established in Minnesota Statutes,
66.5section 360.305, subdivision 4.

66.6

(2) Aviation Support and Services

6,386,000

6,386,000

66.7	Appropriations by Fund
66.8	Airports	5,286,000	5,286,000
66.9	Trunk Highway	1,100,000	1,100,000

66.10$65,000 in each year is from the state airports
66.11fund for the Civil Air Patrol.

66.12

(b) Transit

17,226,000

17,245,000

66.13	Appropriations by Fund
66.14	General	16,451,000	16,470,000
66.15	Trunk Highway	775,000	775,000

66.16$100,000 in each year is from the general
66.17fund for the administrative expenses of the
66.18Minnesota Council on Transportation Access
66.19under Minnesota Statutes, section 174.285.
66.20$78,000 in each year is from the general
66.21fund for grants to greater Minnesota transit
66.22providers as reimbursement for the costs of
66.23providing fixed route public transit rides free
66.24of charge under Minnesota Statutes, section
66.25174.24, subdivision 7 , for veterans certified
66.26as disabled.

66.27

(c) Passenger Rail

500,000

500,000

66.28This appropriation is from the general
66.29fund for passenger rail system planning,
66.30alternatives analysis, environmental analysis,
66.31design, and preliminary engineering under
66.32Minnesota Statutes, sections 174.632 to
66.33174.636 .

66.34

(d) Freight

5,653,000

5,153,000

67.1	Appropriations by Fund
67.2	General	756,000	256,000
67.3	Trunk Highway	4,897,000	4,897,000

67.4$500,000 in the first year is from the general
67.5fund to pay for the department's share of costs
67.6associated with the cleanup of contaminated
67.7state rail bank property. This appropriation is
67.8available until expended.

67.9

(e) Safe Routes to School

250,000

250,000

67.10This appropriation is from the general fund
67.11for non-infrastructure activities in the safe
67.12routes to school program under Minnesota
67.13Statutes, section 174.40, subdivision 7a.
67.14EFFECTIVE DATE.This section is effective the day following final enactment.

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

67.16

Subd. 3.State Roads

67.17 67.18

(a) Operations and Maintenance

262,395,000 287,395,000

262,395,000 280,395,000

67.19$5,000,000 in each year is for accelerated
67.20replacement of snow plowing equipment.
67.21The base appropriation for operations and
67.22maintenance for fiscal years 2016 and 2017
67.23is $267,395,000 in each year.

67.24 67.25

(b) Program Planning and Delivery

206,795,000

206,720,000 209,720,000

67.26	Appropriations by Fund
67.27		2014	2015
67.28	H.U.T.D.	75,000	0
67.29 67.30	Trunk Highway	206,720,000	206,720,000 209,720,000

67.31The base appropriation for program planning
67.32and delivery for fiscal years 2016 and 2017
67.33is $206,720,000 in each year.
68.1$250,000 in each year is for the department's
68.2administrative costs for creation and
68.3operation of the Joint Program Office for
68.4Economic Development and Alternative
68.5Finance, including costs of hiring a
68.6consultant and preparing required reports.
68.7$130,000 in each year is available for
68.8administrative costs of the targeted group
68.9business program.
68.10$266,000 in each year is available for grants
68.11to metropolitan planning organizations
68.12outside the seven-county metropolitan area.
68.13$75,000 in each year is available for a
68.14transportation research contingent account
68.15to finance research projects that are
68.16reimbursable from the federal government or
68.17from other sources. If the appropriation for
68.18either year is insufficient, the appropriation
68.19for the other year is available for it.
68.20$900,000 in each year is available for
68.21grants for transportation studies outside
68.22the metropolitan area to identify critical
68.23concerns, problems, and issues. These
68.24grants are available: (1) to regional
68.25development commissions; (2) in regions
68.26where no regional development commission
68.27is functioning, to joint powers boards
68.28established under agreement of two or
68.29more political subdivisions in the region to
68.30exercise the planning functions of a regional
68.31development commission; and (3) in regions
68.32where no regional development commission
68.33or joint powers board is functioning, to the
68.34department's district office for that region.
69.1$75,000 in the first year is from the highway
69.2user tax distribution fund to the commissioner
69.3for a grant to the Humphrey School of Public
69.4Affairs at the University of Minnesota for
69.5WorkPlace Telework program congestion
69.6relief efforts consisting of maintenance of
69.7Web site tools and content. This is a onetime
69.8appropriation and is available in the second
69.9year.

69.10

(c) State Road Construction Activity

69.11 69.12

(1) Economic Recovery Funds - Federal Highway Aid

1,000,000

1,000,000

69.13This appropriation is to complete projects
69.14using funds made available to the
69.15commissioner of transportation under
69.16title XII of the American Recovery and
69.17Reinvestment Act of 2009, Public Law
69.18111-5, and implemented under Minnesota
69.19Statutes, section 161.36, subdivision 7. The
69.20base appropriation is $1,000,000 in fiscal
69.21year 2016 and $0 in fiscal year 2017.

69.22 69.23

(2) State Road Construction

909,400,000 923,400,000

815,600,000

69.24It is estimated that these appropriations will
69.25be funded as follows:

69.26	Appropriations by Fund
69.27 69.28	Federal Highway Aid	489,200,000	482,200,000
69.29 69.30	Highway User Taxes	420,200,000 434,200,000	333,400,000

69.31The commissioner of transportation shall
69.32notify the chairs and ranking minority
69.33members of the legislative committees with
69.34jurisdiction over transportation finance of
69.35any significant events that should cause these
69.36estimates to change.
70.1This appropriation is for the actual
70.2construction, reconstruction, and
70.3improvement of trunk highways, including
70.4design-build contracts and consultant usage
70.5to support these activities. This includes the
70.6cost of actual payment to landowners for
70.7lands acquired for highway rights-of-way,
70.8payment to lessees, interest subsidies, and
70.9relocation expenses.
70.10The base appropriation for state road
70.11construction for fiscal years 2016 and 2017
70.12is $645,000,000 in each year.
70.13$10,000,000 in each year is for the
70.14transportation economic development
70.15program under Minnesota Statutes, section
70.16174.12 .
70.17The commissioner may expend up to one-half
70.18of one percent of the federal appropriations
70.19under this clause as grants to opportunity
70.20industrialization centers and other nonprofit
70.21job training centers for job training programs
70.22related to highway construction.
70.23The commissioner may transfer up to
70.24$15,000,000 each year to the transportation
70.25revolving loan fund.
70.26The commissioner may receive money
70.27covering other shares of the cost of
70.28partnership projects. These receipts are
70.29appropriated to the commissioner for these
70.30projects.
70.31Notwithstanding subdivision 6, the
70.32commissioner may transfer up to $6,000,000
70.33from the trunk highway fund under this
70.34appropriation to the Stillwater lift bridge
71.1endowment account under Minnesota
71.2Statutes, section 165.15.
71.3Of this appropriation, $14,000,000 in the first
71.4year is for the specific improvements to "Old
71.5Highway 14" described in the settlement
71.6agreement and release executed January
71.77, 2014, between the state and Steele and
71.8Waseca Counties.

71.9

(d) Highway Debt Service

158,417,000

189,821,000

71.10$148,917,000 in the first year and
71.11$180,321,000 in the second year are for
71.12transfer to the state bond fund. If an
71.13appropriation is insufficient to make all
71.14transfers required in the year for which it is
71.15made, the commissioner of management and
71.16budget shall notify the senate Committee
71.17on Finance and the house of representatives
71.18Committee on Ways and Means of the
71.19amount of the deficiency and shall then
71.20transfer that amount under the statutory open
71.21appropriation. Any excess appropriation
71.22cancels to the trunk highway fund.

71.23

(e) Electronic Communications

5,171,000

5,171,000

71.24	Appropriations by Fund
71.25	General	3,000	3,000
71.26	Trunk Highway	5,168,000	5,168,000

71.27The general fund appropriation is to equip
71.28and operate the Roosevelt signal tower for
71.29Lake of the Woods weather broadcasting.
71.30EFFECTIVE DATE.This section is effective the day following final enactment.

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

71.32 71.33

Sec. 4. METROPOLITAN COUNCIL

$

107,889,000

$

76,970,000 76,910,000

72.1This appropriation is from the general fund
72.2for transit system operations under Minnesota
72.3Statutes, sections 473.371 to 473.449.
72.4The base appropriation for fiscal years 2016
72.5and 2017 is $76,686,000 $76,626,000 in
72.6each year.
72.7$37,000,000 in the first year is for the
72.8Southwest Corridor light rail transit line
72.9from the Hiawatha light rail transit line in
72.10downtown Minneapolis to Eden Prairie, to be
72.11used for environmental studies, preliminary
72.12engineering, acquisition of real property, or
72.13interests in real property, and design. This
72.14is a onetime appropriation and is available
72.15until expended.

72.16    Sec. 14. EFFECTIVE DATE; SUPERSEDING PROVISIONS.
72.17Regardless of order of enactment, sections 1 to 5 of this article are not effective if
72.18House File No. 2395 is enacted in the 2014 legislative session.


72.21    Section 1. Minnesota Statutes 2012, section 115E.01, is amended by adding a
72.22subdivision to read:
72.23    Subd. 6a. Incident commander. "Incident commander" means the official at the
72.24site of a discharge who has the responsibility for operations at the site, as established
72.25following National Incident Management System guidelines.

72.26    Sec. 2. Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision
72.27to read:
72.28    Subd. 7a. Listed sensitive area. "Listed sensitive area" means an area or location
72.29listed as an area of special economic or environmental importance in an Area Contingency
72.30Plan or a Sub-Area Contingency Plan prepared under the federal Clean Water Act, United
72.31States Code, title 33, section 1321(j)(4).
72.32EFFECTIVE DATE.This section is effective the day following final enactment.

73.1    Sec. 3. Minnesota Statutes 2012, section 115E.01, is amended by adding a subdivision
73.2to read:
73.3    Subd. 11d. Unit train. "Unit train" means a train with more than 25 tanker railcars
73.4carrying oil or hazardous substance cargo.
73.5EFFECTIVE DATE.This section is effective the day following final enactment.

73.6    Sec. 4. [115E.042] PREPAREDNESS AND RESPONSE FOR CERTAIN
73.7RAILROADS AND PIPELINES.
73.8    Subdivision 1. Application. In addition to the requirements of section 115E.04,
73.9a person who owns or operates railroad car rolling stock transporting a unit train must
73.10comply with this section. A person who owns or operates pipeline facilities and is required
73.11to show specific preparedness under section 115E.03, subdivision 2, must comply with
73.12this section as applicable and with the provisions of chapters 299F and 299J.
73.13    Subd. 2. Training. (a) Each railroad must offer training to each fire department
73.14having jurisdiction along the route of unit trains. Initial training under this subdivision
73.15must be offered to each fire department by June 30, 2016, and refresher training must be
73.16offered to each fire department at least once every three years thereafter.
73.17(b) The training must address the general hazards of oil and hazardous substances,
73.18techniques to assess hazards to the environment and to the safety of responders and the
73.19public, factors an incident commander must consider in determining whether to attempt to
73.20suppress a fire or to evacuate the public and emergency responders from an area, and other
73.21strategies for initial response by local emergency responders. The training must include
73.22suggested protocol or practices for local responders to safely accomplish these tasks.
73.23    Subd. 3. Coordination. Beginning June 30, 2015, each railroad and pipeline
73.24company must communicate at least annually with each county or city emergency
73.25manager and a senior fire department officer of each fire department having jurisdiction
73.26along the route of a unit train or a pipeline to ensure coordination of emergency response
73.27activities between the railroad or pipeline company and local responders.
73.28    Subd. 4. Response capabilities; time limits; drills. (a) Following confirmation of a
73.29discharge, a railroad or pipeline company must deliver and deploy sufficient equipment
73.30and trained personnel to contain and recover discharged oil or hazardous substances and to
73.31protect the environment and public safety.
73.32(b) Within one hour of confirmation of a discharge, a railroad or pipeline company
73.33must provide a qualified company employee to advise the incident commander. The
73.34employee may be made available by telephone, and must be authorized to deploy all
73.35necessary response resources of the railroad or pipeline company.
74.1(c) Within three hours of confirmation of a discharge, a railroad or pipeline
74.2company must be capable of delivering monitoring equipment and a trained operator
74.3to assist in protection of responder and public safety. A plan to ensure delivery of
74.4monitoring equipment and an operator to a discharge site must be provided each year to
74.5the commissioner of public safety.
74.6(d) Within three hours of confirmation of a discharge, a railroad or pipeline company
74.7must provide qualified personnel at a discharge site to assess the discharge and to advise
74.8the incident commander.
74.9(e) A railroad or pipeline company must be capable of deploying containment boom
74.10from land across sewer outfalls, creeks, ditches, and other places where oil or hazardous
74.11substances may drain, in order to contain leaked material before it reaches those resources.
74.12The arrangement to provide containment boom and staff may be made by:
74.13(1) training and caching equipment with local jurisdictions;
74.14(2) training and caching equipment with a fire mutual-aid group;
74.15(3) means of an industry cooperative or mutual-aid group;
74.16(4) deployment of a contractor;
74.17(5) deployment of a response organization under state contract; or
74.18(6) other dependable means acceptable to the Pollution Control Agency.
74.19(f) Each arrangement under paragraph (e) must be confirmed each year. Each
74.20arrangement must be tested by drill at least once every five years.
74.21(g) Within eight hours of confirmation of a discharge, a railroad or pipeline company
74.22must be capable of delivering and deploying oil spill containment booms, boats, oil
74.23recovery equipment, trained staff, and all other materials needed to provide:
74.24(1) on-site containment and recovery of a volume of oil equal to ten percent of the
74.25calculated worst case discharge at any location along the route; and
74.26(2) protection of listed sensitive areas and potable water intakes within one mile of
74.27a discharge site and within eight hours of water travel time downstream in any river
74.28or stream that the right-of-way intersects.
74.29(h) Within 60 hours of confirmation of a discharge, a railroad or pipeline company
74.30must be capable of delivering and deploying additional oil spill containment booms,
74.31boats, oil recovery equipment, trained staff, and all other materials needed to provide
74.32containment and recovery of a worst-case oil discharge and to protect listed sensitive areas
74.33and potable water intakes at any location along the route.
74.34(i) Each railroad and pipeline must conduct at least one oil containment, recovery,
74.35and sensitive area protection drill every three years, at a location and time chosen by the
74.36Pollution Control Agency.
75.1    Subd. 5. Prevention and response plans. (a) By June 30, 2015, a railroad or
75.2pipeline company shall submit the prevention and response plan required under section
75.3115E.04, as necessary to comply with the requirements of this section, to the commissioner
75.4of the Pollution Control Agency on a form designated by the commissioner.
75.5(b) By June 30 of every third year following a plan submission under this
75.6subdivision, a railroad and pipeline company must update and resubmit the prevention and
75.7response plan to the commissioner.
75.8EFFECTIVE DATE.Subdivisions 1 to 3 and 5 are effective the day following final
75.9enactment. Subdivision 4 is effective July 1, 2015.

75.10    Sec. 5. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision
75.11to read:
75.12    Subd. 3a. Railroad and pipeline preparedness; pollution control. The Pollution
75.13Control Agency shall carry out environmental protection activities related to railroad
75.14and pipeline discharge preparedness. Duties under this subdivision include, but are not
75.15limited to:
75.16(1) assisting local emergency managers and fire officials in understanding the
75.17hazards of oil and hazardous substances, as well as general strategies for containment and
75.18environmental protection;
75.19(2) assisting railroads and pipeline companies to identify natural resources and
75.20sensitive areas, and to devise strategies to contain and recover oil and hazardous
75.21substances from land and waters along routes;
75.22(3) facilitating cooperation between railroad and pipeline companies for mutual aid
75.23arrangements that provide training, staff, and equipment as required by this chapter;
75.24(4) participating in drills and training sessions;
75.25(5) reviewing each railroad and pipeline company's prevention and response plans
75.26for compliance with the requirements of this chapter, and assessing each company's
75.27readiness to protect the environment;
75.28(6) conducting inspections and drills as necessary to determine the railroad or
75.29pipeline company's compliance with the requirements of this chapter and ability to protect
75.30the environment; and
75.31(7) conducting follow-up corrective action directives, orders, and enforcement as
75.32necessary based on a finding of inadequate environmental protection preparedness.
75.33EFFECTIVE DATE.This section is effective the day following final enactment.

76.1    Sec. 6. Minnesota Statutes 2012, section 115E.08, is amended by adding a subdivision
76.2to read:
76.3    Subd. 3b. Railroad and pipeline preparedness; public safety. The commissioner
76.4of public safety shall carry out public safety protection activities related to railroad and
76.5pipeline spill and discharge preparedness. Duties under this subdivision include, but
76.6are not limited to:
76.7(1) assisting local emergency managers and fire officials to understand the hazards
76.8of oil and hazardous substances, as well as general strategies for hazard identification,
76.9initial isolation, and other actions necessary to ensure public safety;
76.10(2) assisting railroads and pipeline companies to develop suggested protocols and
76.11practices for local first responder use in protecting the public's safety;
76.12(3) facilitating cooperation between railroads, pipeline companies, county and city
76.13emergency managers, and other public safety organizations;
76.14(4) participating in major exercises and training sessions;
76.15(5) assisting local units of government to incorporate railroad and pipeline hazard
76.16and response information into local emergency operations plans;
76.17(6) monitoring the public safety-related training and planning requirements of
76.18section 115E.03; and
76.19(7) referring noncompliance with section 115E.03 to the Pollution Control Agency.
76.20EFFECTIVE DATE.This section is effective the day following final enactment.

76.21    Sec. 7. Minnesota Statutes 2012, section 219.015, subdivision 1, is amended to read:
76.22    Subdivision 1. Position Positions established; duties. (a) The commissioner of
76.23transportation shall establish a position of three state rail safety inspector positions in
76.24the Office of Freight and Commercial Vehicle Operations of the Minnesota Department
76.25of Transportation. On or after July 1, 2015, the commissioner may establish a fourth
76.26state rail safety inspector position following consultation with railroad companies.
76.27 The commissioner shall apply to and enter into agreements with the Federal Railroad
76.28Administration (FRA) of the United States Department of Transportation to participate
76.29in the federal State Rail Safety Partnership Participation Program for training and
76.30certification of an inspector under authority of United States Code, title 49, sections 20103,
76.3120105, 20106, and 20113, and Code of Federal Regulations, title 49, part 212.
76.32     The (b) A state rail safety inspector shall inspect mainline track, secondary track, and
76.33yard and industry track; inspect railroad right-of-way, including adjacent or intersecting
76.34drainage, culverts, bridges, overhead structures, and traffic and other public crossings;
77.1inspect yards and physical plants; review and enforce safety requirements; review
77.2maintenance and repair records; and review railroad security measures.
77.3(c) A state rail safety inspector may perform, but is not limited to, the duties
77.4described in the federal State Rail Safety Participation Program. An inspector may train,
77.5be certified, and participate in any of the federal State Rail Safety Participation Program
77.6disciplines, including track, signal and train control, motive power and equipment,
77.7operating practices compliance, hazardous materials, and highway-rail grade crossings.
77.8    (d) To the extent delegated by the Federal Railroad Administration and authorized
77.9 by the commissioner, the an inspector may issue citations for violations of this chapter, or
77.10to ensure railroad employee and public safety and welfare.
77.11EFFECTIVE DATE.This section is effective the day following final enactment.

77.12    Sec. 8. Minnesota Statutes 2012, section 219.015, subdivision 2, is amended to read:
77.13    Subd. 2. Railroad company assessment; account; appropriation. (a) As provided
77.14in this subdivision, the commissioner shall annually assess railroad companies that are
77.15(1) defined as common carriers under section 218.011,; (2) classified by federal law or
77.16regulation as Class I Railroads, or Class I Rail Carriers, Class II Railroads, or Class II Rail
77.17Carriers; and (3) operating in this state,.
77.18    (b) The assessment must be by a division of state rail safety inspector program costs
77.19in equal proportion between carriers based on route miles operated in Minnesota, assessed
77.20in equal amounts for 365 days of the calendar year. The commissioner shall assess all
77.21start-up or re-establishment costs, and all related costs of initiating the state rail safety
77.22inspector program beginning July 1, 2008. The, and ongoing state rail inspector duties
77.23must begin and be assessed on January 1, 2009.
77.24    (c) The assessments must be deposited in a special account in the special revenue
77.25fund, to be known as the state rail safety inspection account. Money in the account is
77.26appropriated to the commissioner and may be expended to cover the costs incurred for the
77.27establishment and ongoing responsibilities of the state rail safety inspector program.
77.28EFFECTIVE DATE.This section is effective the day following final enactment.

77.29    Sec. 9. [299A.55] RAILROAD AND PIPELINE SAFETY; OIL AND OTHER
77.30HAZARDOUS MATERIALS.
77.31    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
77.32have the meanings given.
78.1(b) "Applicable rail carrier" means a railroad company that is subject to an
78.2assessment under section 219.015, subdivision 2.
78.3(c) "Hazardous substance" has the meaning given in section 115B.02, subdivision 8.
78.4(d) "Oil" has the meaning given in section 115E.01, subdivision 8.
78.5(e) "Pipeline company" means any individual, partnership, association, or public
78.6or private corporation required to show specific preparedness under section 115E.03,
78.7subdivision 2.
78.8    Subd. 2. Railroad and pipeline safety account. (a) A railroad and pipeline safety
78.9account is created in the special revenue fund. The account consists of funds collected
78.10under subdivision 4 and funds donated, allotted, transferred, or otherwise provided to the
78.11account.
78.12    (b) $208,000 is annually appropriated to the commissioner of the Pollution Control
78.13Agency for environmental protection activities related to railroad and pipeline discharge
78.14preparedness under chapter 115E.
78.15(c) Following the appropriation in paragraph (b), the remaining money in the
78.16account is annually appropriated to the commissioner of public safety for the purposes
78.17specified in subdivision 3.
78.18    Subd. 3. Allocation of railroad and pipeline safety funds. (a) Subject to funding
78.19appropriated for this subdivision, the commissioner shall provide funds for training and
78.20response preparedness related to (1) derailments, discharge incidents, or spills involving
78.21trains carrying oil or other hazardous substances, and (2) pipeline discharge incidents or
78.22spills involving oil or other hazardous substances.
78.23(b) The commissioner shall allocate available funds to the Board of Firefighter
78.24Training and Education under section 299N.02 and the Division of Homeland Security
78.25and Emergency Management.
78.26(c) Prior to making allocations under paragraph (b), the commissioner shall consult
78.27with the Fire Service Advisory Committee under section 299F.012, subdivision 2.
78.28(d) The commissioner and the entities identified in paragraph (b) shall prioritize
78.29uses of funds based on:
78.30(1) firefighter training needs;
78.31(2) community risk from discharge incidents or spills;
78.32(3) geographic balance; and
78.33(4) recommendations of the Fire Service Advisory Committee.
78.34(e) The following are permissible uses of funds provided under this subdivision:
78.35(1) training costs, which may include but are not limited to training curriculum,
78.36trainers, trainee overtime salary, other personnel overtime salary, and tuition;
79.1(2) costs of gear and equipment related to hazardous materials readiness, response,
79.2and management, which may include but is not limited to original purchase, maintenance,
79.3and replacement;
79.4(3) supplies related to the uses under clauses (1) and (2); and
79.5(4) emergency preparedness planning and coordination.
79.6(f) Notwithstanding paragraph (b), from funds in the railroad and pipeline safety
79.7account provided for the purposes under this subdivision, the commissioner may retain a
79.8balance in the account for budgeting in subsequent fiscal years.
79.9    Subd. 4. Assessments; oil and hazardous substances. (a) The commissioner of
79.10public safety shall annually assess $2,500,000 to railroad and pipeline companies based on
79.11the formula specified in paragraph (b). The commissioner shall deposit funds collected
79.12under this subdivision in the railroad and pipeline safety account under subdivision 2.
79.13(b) The assessment for each railroad is 50 percent of the total annual assessment
79.14amount, divided in equal proportion between applicable rail carriers based on route miles
79.15operated in Minnesota. The assessment for each pipeline company is 50 percent of the
79.16total annual assessment amount, divided in equal proportion between companies based on
79.17the yearly aggregate gallons of oil and hazardous substance transported in Minnesota. The
79.18assessment must be in equal amounts for each day of the fiscal year.
79.19(c) The assessments under this subdivision expire July 1, 2019.

79.20    Sec. 10. REPORTS ON INCIDENT PREPAREDNESS FOR OIL AND OTHER
79.21HAZARDOUS MATERIALS TRANSPORTATION.
79.22    Subdivision 1. Report on response preparedness. By January 15, 2015, the
79.23commissioner of public safety shall submit a report on emergency response preparedness
79.24in the public and private sectors for incidents involving oil and other hazardous materials
79.25transported by rail and pipeline to the chairs and ranking minority members of the
79.26legislative committees with jurisdiction over transportation and public safety policy and
79.27finance. At a minimum, the report must:
79.28(1) summarize the preparedness and emergency response framework in the state;
79.29(2) provide an assessment of costs and needs of fire departments and other
79.30emergency first responders for training and equipment to respond to discharge or spill
79.31incidents involving oil and other hazardous materials transported by rail and pipeline;
79.32(3) develop a comprehensive public and private response capacity inventory that,
79.33to the extent feasible, includes statewide identification of major emergency response
79.34equipment, equipment staging locations, mutual aid agreements, and capacities across
79.35industries involved in transportation and storage of oil and other hazardous materials;
80.1(4) provide information and analysis that forms the basis for allocation of funds
80.2under Minnesota Statutes, section 299A.55;
80.3(5) develop benchmarks or assessment criteria for the evaluation under subdivision 2;
80.4(6) assist in long-range oil and other hazardous materials incident preparedness
80.5planning; and
80.6(7) make recommendations for any legislative changes.
80.7    Subd. 2. Evaluation of response preparedness and funding. By November 1,
80.82017, the commissioner of public safety shall submit an evaluation of railroad and pipeline
80.9safety preparedness and funding related to incidents involving oil and other hazardous
80.10materials to the chairs and ranking minority members of the legislative committees with
80.11jurisdiction over transportation and public safety policy and finance. At a minimum,
80.12the evaluation must:
80.13(1) provide an update to the report under subdivision 1 that identifies notable
80.14changes and provides updated information as appropriate;
80.15(2) evaluate the effectiveness of training and response preparedness activities under
80.16Minnesota Statutes, section 299A.55, using the criteria established under subdivision
80.171, clause (5);
80.18(3) identify current sources of funds, funding levels, and any unfunded needs for
80.19preparedness activities;
80.20(4) analyze equity in the distribution of funding sources for preparedness activities,
80.21which must include but is not limited to (i) examination of the public-private partnership
80.22financing model, and (ii) review of balance across industries involved in storage and
80.23distribution of oil and other hazardous materials; and
80.24(5) make recommendations for any programmatic or legislative changes.
80.25EFFECTIVE DATE.This section is effective the day following final enactment.

80.26    Sec. 11. IMPROVEMENTS STUDY ON GRADE CROSSINGS AND
80.27RAIL SAFETY FOR OIL AND OTHER HAZARDOUS MATERIALS
80.28TRANSPORTATION.
80.29(a) The commissioner of transportation shall conduct a study on highway-rail grade
80.30crossing improvement for oil and other hazardous materials transported by rail, and on
80.31rail safety. At a minimum, the study must:
80.32(1) provide information that assists in risk management associated with
80.33transportation of oil and other hazardous materials by rail;
80.34(2) develop criteria to prioritize needs and improvements at highway-rail grade
80.35crossings;
81.1(3) consider alternatives for safety improvements, including but not limited to active
81.2warning devices such as gates and signals, closings, and grade separation;
81.3(4) provide findings and recommendations that serve to direct accelerated
81.4investments in highway-rail grade crossing safety improvements; and
81.5(5) analyze state inspection activities and staffing for track and hazardous materials
81.6under Minnesota Statutes, section 219.015.
81.7(b) The commissioner shall submit an interim update on the study by August 31,
81.82014, and a final report by October 31, 2014, to the chairs and ranking minority members
81.9of the legislative committees with jurisdiction over transportation policy and finance.
81.10EFFECTIVE DATE.This section is effective the day following final enactment.


81.13    Section 1. Minnesota Statutes 2012, section 165.15, subdivision 2, is amended to read:
81.14    Subd. 2. Use of funds. (a) Income derived from the investment of principal in the
81.15account may be used by the commissioner of transportation for operations and routine
81.16maintenance, including bridge safety inspections and reactive repairs, of the Stillwater
81.17lift bridge. No money from this account may be used for any purposes except those
81.18described in this section, and no money from this account may be transferred to any
81.19other account in the state treasury without specific legislative authorization. Any money
81.20transferred from the trunk highway fund may only be used for trunk highway purposes.
81.21 For the purposes of this section:
81.22(1) "Income" is the amount of interest on debt securities and dividends on equity
81.23securities. Any gains or losses from the sale of securities must be added to the principal
81.24of the account.
81.25(2) "Routine maintenance" means activities that are predictable and repetitive, but
81.26not activities that would constitute major repairs or rehabilitation.
81.27(b) Investment management fees incurred by the State Board of Investment are
81.28eligible expenses for reimbursement from the account.
81.29(c) The commissioner of transportation has authority to approve or deny expenditures
81.30of funds in the account.

81.31    Sec. 2. Minnesota Statutes 2013 Supplement, section 168.123, subdivision 2, is
81.32amended to read:
82.1    Subd. 2. Design. (a) The commissioner of veterans affairs shall design the emblem
82.2for the veterans' special plates, subject to the approval of the commissioner, that satisfy the
82.3following requirements:
82.4(a) (b) For a Vietnam veteran who served after July 1, 1961, and before July 1, 1978,
82.5in the active military service in a branch of the armed forces of the United States or a
82.6nation or society allied with the United States the special plates must bear the inscription
82.7"VIETNAM VET."
82.8(b) (c) For a veteran stationed on the island of Oahu, Hawaii, or offshore, during the
82.9attack on Pearl Harbor on December 7, 1941, the special plates must bear the inscription
82.10"PEARL HARBOR SURVIVOR."
82.11(c) (d) For a veteran who served during World War II, the plates must bear the
82.12inscription "WORLD WAR VET."
82.13(d) (e) For a veteran who served during the Korean Conflict, the special plates
82.14must bear the inscription "KOREAN VET."
82.15(e) (f) For a combat wounded veteran who is a recipient of the Purple Heart medal,
82.16the plates must bear the inscription "COMBAT WOUNDED VET" and have a facsimile
82.17or an emblem of the official Purple Heart medal.
82.18    A member of the United States armed forces who is serving actively in the military
82.19and who is a recipient of the Purple Heart medal is also eligible for this license plate.
82.20The commissioner of public safety shall ensure that information regarding the required
82.21proof of eligibility for any applicant under this paragraph who has not yet been issued
82.22military discharge papers is distributed to the public officials responsible for administering
82.23this section.
82.24(f) (g) For a Persian Gulf War veteran, the plates must bear the inscription "GULF
82.25WAR VET." For the purposes of this section, "Persian Gulf War veteran" means a person
82.26who served on active duty after August 1, 1990, in a branch of the armed forces of the
82.27United States or a nation or society allied with the United States or the United Nations
82.28during Operation Desert Shield, Operation Desert Storm, or other military operation in
82.29the Persian Gulf area combat zone as designated in United States Presidential Executive
82.30Order No. 12744, dated January 21, 1991.
82.31(g) (h) For a veteran who served in the Laos War after July 1, 1961, and before July
82.321, 1978, the special plates must bear the inscription "LAOS WAR VET."
82.33(h) (i) For a veteran who is the recipient of:
82.34(1) the Iraq Campaign Medal, the special plates must be inscribed with a facsimile of
82.35that medal and must bear the inscription "IRAQ WAR VET" directly below the special
82.36plate number;
83.1(2) the Afghanistan Campaign Medal, the special plates must be inscribed with a
83.2facsimile of that medal and must bear the inscription "AFGHAN WAR VET" directly
83.3below the special plate number;
83.4(3) the Global War on Terrorism Expeditionary Medal, the special plates must
83.5be inscribed with a facsimile of that medal and must bear the inscription "GWOT
83.6VETERAN" directly below the special plate number; or
83.7(4) the Armed Forces Expeditionary Medal, the special plates must bear an
83.8appropriate inscription that includes a facsimile of that medal.
83.9(i) (j) For a veteran who is the recipient of the Global War on Terrorism Service
83.10Medal, the special plates must be inscribed with a facsimile of that medal and must bear
83.11the inscription "GWOT VETERAN" directly below the special plate number. In addition,
83.12any member of the National Guard or other military reserves who has been ordered to
83.13federally funded state active service under United States Code, title 32, as defined in
83.14section 190.05, subdivision 5b, and who is the recipient of the Global War on Terrorism
83.15Service Medal, is eligible for the license plate described in this paragraph, irrespective of
83.16whether that person qualifies as a veteran under section 197.447.
83.17(j) (k) For a veteran who is the recipient of the Korean Defense Service Medal,
83.18the special plates must be inscribed with a facsimile of that medal and must bear the
83.19inscription "KOREAN DEFENSE SERVICE" directly below the special plate number.
83.20(k) (l) For a veteran who is a recipient of the Bronze Star medal, the plates must
83.21bear the inscription "BRONZE STAR VET" and have a facsimile or an emblem of the
83.22official Bronze Star medal.
83.23(l) (m) For a veteran who is a recipient of the Silver Star medal, the plates must bear
83.24the inscription "SILVER STAR VET" and have a facsimile or an emblem of the official
83.25Silver Star medal.
83.26(n) For a woman veteran, the plates must bear the inscription "WOMAN
83.27VETERAN" and have a facsimile or an emblem as designated by the commissioners of
83.28veterans affairs and public safety.
83.29EFFECTIVE DATE.This section is effective January 1, 2015.

83.30    Sec. 3. Minnesota Statutes 2012, section 169.826, is amended by adding a subdivision
83.31to read:
83.32    Subd. 7. Expiration date. Upon request of the permit applicant, the expiration
83.33date for a permit issued under this section must be the same as the expiration date of the
83.34permitted vehicle's registration.
84.1EFFECTIVE DATE.This section is effective November 30, 2016, and applies
84.2to permits issued on and after that date.

84.3    Sec. 4. Minnesota Statutes 2012, section 169.8261, is amended by adding a subdivision
84.4to read:
84.5    Subd. 3. Expiration date. Upon request of the permit applicant, the expiration
84.6date for a permit issued under this section must be the same as the expiration date of the
84.7permitted vehicle's registration.
84.8EFFECTIVE DATE.This section is effective November 30, 2016, and applies
84.9to permits issued on and after that date.

84.10    Sec. 5. Minnesota Statutes 2012, section 169.86, subdivision 5, is amended to read:
84.11    Subd. 5. Fees; proceeds deposited; appropriation. The commissioner, with
84.12respect to highways under the commissioner's jurisdiction, may charge a fee for each
84.13permit issued. The fee for an annual permit that expires by law on the date of the
84.14vehicle registration expiration must be based on the proportion of the year that remains
84.15until the expiration date. Unless otherwise specified, all fees for permits issued by the
84.16commissioner of transportation must be deposited in the state treasury and credited to
84.17the trunk highway fund. Except for those annual permits for which the permit fees are
84.18specified elsewhere in this chapter, the fees are:
84.19    (a) $15 for each single trip permit.
84.20    (b) $36 for each job permit. A job permit may be issued for like loads carried on
84.21a specific route for a period not to exceed two months. "Like loads" means loads of the
84.22same product, weight, and dimension.
84.23    (c) $60 for an annual permit to be issued for a period not to exceed 12 consecutive
84.24months. Annual permits may be issued for:
84.25    (1) motor vehicles used to alleviate a temporary crisis adversely affecting the safety
84.26or well-being of the public;
84.27    (2) motor vehicles that travel on interstate highways and carry loads authorized
84.28under subdivision 1a;
84.29    (3) motor vehicles operating with gross weights authorized under section 169.826,
84.30subdivision 1a ;
84.31    (4) special pulpwood vehicles described in section 169.863;
84.32    (5) motor vehicles bearing snowplow blades not exceeding ten feet in width;
84.33    (6) noncommercial transportation of a boat by the owner or user of the boat;
85.1    (7) motor vehicles carrying bales of agricultural products authorized under section
85.2169.862 ; and
85.3(8) special milk-hauling vehicles authorized under section 169.867.
85.4    (d) $120 for an oversize annual permit to be issued for a period not to exceed 12
85.5consecutive months. Annual permits may be issued for:
85.6    (1) mobile cranes;
85.7    (2) construction equipment, machinery, and supplies;
85.8    (3) manufactured homes and manufactured storage buildings;
85.9    (4) implements of husbandry;
85.10    (5) double-deck buses;
85.11    (6) commercial boat hauling and transporting waterfront structures, including, but
85.12not limited to, portable boat docks and boat lifts;
85.13    (7) three-vehicle combinations consisting of two empty, newly manufactured trailers
85.14for cargo, horses, or livestock, not to exceed 28-1/2 feet per trailer; provided, however,
85.15the permit allows the vehicles to be moved from a trailer manufacturer to a trailer dealer
85.16only while operating on twin-trailer routes designated under section 169.81, subdivision 3,
85.17paragraph (c); and
85.18(8) vehicles operating on that portion of marked Trunk Highway 36 described in
85.19section 169.81, subdivision 3, paragraph (e).
85.20    (e) For vehicles that have axle weights exceeding the weight limitations of sections
85.21169.823 to 169.829, an additional cost added to the fees listed above. However, this
85.22paragraph applies to any vehicle described in section 168.013, subdivision 3, paragraph
85.23(b), but only when the vehicle exceeds its gross weight allowance set forth in that
85.24paragraph, and then the additional cost is for all weight, including the allowance weight,
85.25in excess of the permitted maximum axle weight. The additional cost is equal to the
85.26product of the distance traveled times the sum of the overweight axle group cost factors
85.27shown in the following chart:

85.28		Overweight Axle Group Cost Factors
85.29	Weight (pounds)		Cost Per Mile For Each Group Of:
85.30 85.31 85.32 85.33 85.34	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
85.35	0-2,000		.12		.05		.04
85.36	2,001-4,000		.14		.06		.05
85.37	4,001-6,000		.18		.07		.06
85.38	6,001-8,000		.21		.09		.07
85.39	8,001-10,000		.26		.10		.08
86.1	10,001-12,000		.30		.12		.09
86.2 86.3	12,001-14,000		Not permitted		.14		.11
86.4 86.5	14,001-16,000		Not permitted		.17		.12
86.6 86.7	16,001-18,000		Not permitted		.19		.15
86.8 86.9	18,001-20,000		Not permitted		Not permitted		.16
86.10 86.11	20,001-22,000		Not permitted		Not permitted		.20

86.12The amounts added are rounded to the nearest cent for each axle or axle group. The
86.13additional cost does not apply to paragraph (c), clauses (1) and (3).
86.14For a vehicle found to exceed the appropriate maximum permitted weight, a cost-per-mile
86.15fee of 22 cents per ton, or fraction of a ton, over the permitted maximum weight is imposed
86.16in addition to the normal permit fee. Miles must be calculated based on the distance
86.17already traveled in the state plus the distance from the point of detection to a transportation
86.18loading site or unloading site within the state or to the point of exit from the state.
86.19    (f) As an alternative to paragraph (e), an annual permit may be issued for overweight,
86.20or oversize and overweight, mobile cranes; construction equipment, machinery, and
86.21supplies; implements of husbandry; and commercial boat hauling. The fees for the permit
86.22are as follows:

86.23	Gross Weight (pounds) of Vehicle		Annual Permit Fee
86.24	90,000	or less	$200
86.25	90,001	- 100,000	$300
86.26	100,001	- 110,000	$400
86.27	110,001	- 120,000	$500
86.28	120,001	- 130,000	$600
86.29	130,001	- 140,000	$700
86.30	140,001	- 145,000	$800
86.31	145,001	- 155,000	$900

86.32If the gross weight of the vehicle is more than 155,000 pounds the permit fee is determined
86.33under paragraph (e).
86.34    (g) For vehicles which exceed the width limitations set forth in section 169.80 by
86.35more than 72 inches, an additional cost equal to $120 added to the amount in paragraph (a)
86.36when the permit is issued while seasonal load restrictions pursuant to section 169.87 are
86.37in effect.
86.38    (h) $85 for an annual permit to be issued for a period not to exceed 12 months, for
86.39refuse-compactor vehicles that carry a gross weight of not more than: 22,000 pounds on
86.40a single rear axle; 38,000 pounds on a tandem rear axle; or, subject to section 169.828,
87.1subdivision 2 , 46,000 pounds on a tridem rear axle. A permit issued for up to 46,000 pounds
87.2on a tridem rear axle must limit the gross vehicle weight to not more than 62,000 pounds.
87.3    (i) $300 for a motor vehicle described in section 169.8261. The fee under this
87.4paragraph must be deposited as follows:
87.5    (1) the first $50,000 in each fiscal year must be deposited in the trunk highway fund for
87.6costs related to administering the permit program and inspecting and posting bridges; and
87.7    (2) all remaining money in each fiscal year must be deposited in the bridge
87.8inspection and signing account as provided under subdivision 5b.
87.9    (j) Beginning August 1, 2006, $200 for an annual permit for a vehicle operating
87.10under authority of section 169.824, subdivision 2, paragraph (a), clause (2).
87.11EFFECTIVE DATE.This section is effective November 30, 2016, and applies
87.12to permits issued on and after that date.

87.13    Sec. 6. Minnesota Statutes 2012, section 169.863, is amended by adding a subdivision
87.14to read:
87.15    Subd. 3. Expiration date. Upon request of the permit applicant, the expiration
87.16date for a permit issued under this section must be the same as the expiration date of the
87.17permitted vehicle's registration.
87.18EFFECTIVE DATE.This section is effective November 30, 2016, and applies
87.19to permits issued on and after that date.

87.20    Sec. 7. Minnesota Statutes 2012, section 169.865, subdivision 1, is amended to read:
87.21    Subdivision 1. Six-axle vehicles. (a) A road authority may issue an annual permit
87.22authorizing a vehicle or combination of vehicles with a total of six or more axles to haul raw
87.23or unprocessed agricultural products and be operated with a gross vehicle weight of up to:
87.24    (1) 90,000 pounds; and
87.25    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
87.26subdivision 1 .
87.27    (b) Notwithstanding subdivision 3, paragraph (a), clause (4), a vehicle or
87.28combination of vehicles operated under this subdivision and transporting only sealed
87.29intermodal containers may be operated on an interstate highway if allowed by the United
87.30States Department of Transportation.
87.31    (c) The fee for a permit issued under this subdivision is $300, or a proportional
87.32amount as provided in section 169.86, subdivision 5.
88.1EFFECTIVE DATE.This section is effective November 30, 2016, and applies
88.2to permits issued on and after that date.

88.3    Sec. 8. Minnesota Statutes 2012, section 169.865, subdivision 2, is amended to read:
88.4    Subd. 2. Seven-axle vehicles. (a) A road authority may issue an annual permit
88.5authorizing a vehicle or combination of vehicles with a total of seven or more axles to
88.6haul raw or unprocessed agricultural products and be operated with a gross vehicle weight
88.7of up to:
88.8    (1) 97,000 pounds; and
88.9    (2) 99,000 pounds during the period set by the commissioner under section 169.826,
88.10subdivision 1 .
88.11    (b) Drivers of vehicles operating under this subdivision must comply with driver
88.12qualification requirements adopted under section 221.0314, subdivisions 2 to 5, and Code
88.13of Federal Regulations, title 49, parts 40 and 382.
88.14    (c) The fee for a permit issued under this subdivision is $500, or a proportional
88.15amount as provided in section 169.86, subdivision 5.
88.16EFFECTIVE DATE.This section is effective November 30, 2016, and applies
88.17to permits issued on and after that date.

88.18    Sec. 9. Minnesota Statutes 2012, section 169.865, is amended by adding a subdivision
88.19to read:
88.20    Subd. 5. Expiration date. Upon request of the permit applicant, the expiration
88.21date for a permit issued under this section must be the same as the expiration date of the
88.22permitted vehicle's registration.
88.23EFFECTIVE DATE.This section is effective November 30, 2016, and applies
88.24to permits issued on and after that date.

88.25    Sec. 10. Minnesota Statutes 2012, section 169.866, subdivision 3, is amended to read:
88.26    Subd. 3. Permit fee; appropriation. Vehicle permits issued under subdivision 1
88.27must be annual permits. The fee is $850 for each vehicle, or a proportional amount as
88.28provided in section 169.86, subdivision 5, and must be deposited in the trunk highway
88.29fund. An amount sufficient to administer the permit program is appropriated from the
88.30trunk highway fund to the commissioner for the costs of administering the permit program.
88.31EFFECTIVE DATE.This section is effective November 30, 2016, and applies
88.32to permits issued on and after that date.

89.1    Sec. 11. Minnesota Statutes 2012, section 169.866, is amended by adding a subdivision
89.2to read:
89.3    Subd. 4. Expiration date. Upon request of the permit applicant, the expiration
89.4date for a permit issued under this section must be the same as the expiration date of the
89.5permitted vehicle's registration.
89.6EFFECTIVE DATE.This section is effective November 30, 2016, and applies
89.7to permits issued on and after that date.

89.8    Sec. 12. Minnesota Statutes 2012, section 174.24, is amended by adding a subdivision
89.9to read:
89.10    Subd. 8. Transit service on election day. An eligible recipient of operating
89.11assistance under this section who contracts or has contracted to provide fixed route public
89.12transit shall provide fixed route public transit service free of charge on a day a state
89.13general election is held.
89.14EFFECTIVE DATE.This section is effective July 1, 2014, and expires November
89.155, 2014.

89.16    Sec. 13. Minnesota Statutes 2013 Supplement, section 174.42, subdivision 2, is
89.17amended to read:
89.18    Subd. 2. Funding requirement. In each federal fiscal year, the commissioner
89.19shall obtain a total amount in federal authorizations for reimbursement on transportation
89.20alternatives projects that is equal to or greater than the annual average of federal
89.21authorizations on transportation alternatives projects calculated over the preceding four
89.22 federal fiscal years 2009 to 2012.
89.23EFFECTIVE DATE.This section is effective the day following final enactment and
89.24applies to authorizations for federal fiscal year 2015 and subsequent federal fiscal years.

89.25    Sec. 14. Minnesota Statutes 2012, section 174.56, subdivision 1, is amended to read:
89.26    Subdivision 1. Report required. (a) The commissioner of transportation shall
89.27submit a report by December 15 of each year on (1) the status of major highway projects
89.28completed during the previous two years or under construction or planned during the year
89.29of the report and for the ensuing 15 years, and (2) trunk highway fund expenditures, and
89.30(3) efficiencies achieved in the previous biennium.
89.31(b) For purposes of this section, a "major highway project" is a highway project that
89.32has a total cost for all segments that the commissioner estimates at the time of the report
90.1to be at least (1) $15,000,000 in the metropolitan highway construction district, or (2)
90.2$5,000,000 in any nonmetropolitan highway construction district.

90.3    Sec. 15. Minnesota Statutes 2012, section 174.56, is amended by adding a subdivision
90.4to read:
90.5    Subd. 2b. Efficiencies. The commissioner shall include in the report information on
90.6efficiencies implemented in the previous biennium in planning and project management
90.7and delivery, along with an explanation of the efficiencies used to achieve the savings and
90.8the methodology used in the calculations. The level of savings achieved must equal, in
90.9comparison with the total state road construction budget for that year, a minimum of five
90.10percent in fiscal year 2015. The report must identify the projects that have been advanced
90.11or completed due to the implementation of efficiency measures.

90.12    Sec. 16. [219.375] RAILROAD YARD LIGHTING.
90.13    Subdivision 1. General requirements. (a) All railroad common carriers, and their
90.14officers, agents, and employees, operating a railroad in this state are required to maintain
90.15lighting between sunset and sunrise above switches in railroad yards where:
90.16(1) cars or locomotives are switched or inspected; or
90.17(2) cars are switched to assemble or disassemble trains.
90.18(b) Railroad common carriers shall provide lighting adjacent to those portions of
90.19railroad yard tracks where railroad common carrier employees frequently work on the
90.20ground performing switching, inspection, and repair activities. For purposes of this
90.21section, "frequently work" means at least five days per week.
90.22(c) Railroad yard lighting over switches and inspection areas must:
90.23(1) conform with the guidelines set forth by the American Railway Engineering
90.24and Manufacturing Association (AREMA);
90.25(2) include at least one lighting source for each two-yard track switch segment; and
90.26(3) be displayed from a height of at least 30 feet above the railroad yard lead-track
90.27area.
90.28(d) Lighting over switches and other light sources within railroad yards or at other
90.29railroad locations must be:
90.30(1) maintained to illuminate as designed;
90.31(2) compliant with the National Electrical Code;
90.32(3) kept clear of obstructions; and
90.33(4) focused on the railroad common carrier property designed to be illuminated.
90.34(e) The energy source for lighting is permitted, though not required, to:
91.1(1) be direct wired from a carrier facility power source, have solar panel power with
91.2a battery storage source, or have another constant energy source; or
91.3(2) be designed to have standard or light-emitting diode fixtures or electrical circuits
91.4that include power saving or ambient atmosphere actuating switches.
91.5(f) Railroad common carriers must replace damaged or nonoperative lighting within
91.648 hours after light source damage has been reported to the carrier.
91.7    Subd. 2. Allowances for unusual conditions. Railroad common carriers are not
91.8required to comply with the requirements of this section during:
91.9(1) maintenance activities;
91.10(2) derailments;
91.11(3) any period of heavy rain or snow, washouts, or similar weather or seismic
91.12conditions; or
91.13(4) a reasonable period after any occurrence identified in clauses (1) to (3), but no
91.14longer than is necessary to achieve compliance with this section.
91.15    Subd. 3. Lighting orders; commissioner authority. (a) When the commissioner
91.16finds that railroad common carrier employees who frequently work adjacent to a portion
91.17of track performing switching, inspection, maintenance, repair, or fueling activities are
91.18exposed to hazard resulting from the lack of lighting, or to the condition of lighting
91.19constructed before July 1, 2014, the commissioner may order a railroad common carrier
91.20to construct lighting adjacent to a portion of track where employees are performing
91.21switching, inspection, maintenance, repair, or fueling activities, or require a railroad
91.22common carrier to modify existing lighting to conform with the standards set forth by
91.23AREMA lighting standards, within a reasonable period of time.
91.24(b) A railroad common carrier, person, or corporation may appeal an order under this
91.25subdivision. An appeal under this paragraph is subject to the processes and requirements
91.26of chapter 14.
91.27    Subd. 4. Failure to correct. If a railroad common carrier, person, or corporation
91.28fails to correct a violation of this section within the time provided in an order issued by
91.29the commissioner of transportation under subdivision 3, and the railroad common carrier,
91.30person, or corporation does not appeal the order, the failure to correct the violation as
91.31ordered by the commissioner constitutes a new and separate offense distinct from the
91.32original violation of this section.
91.33    Subd. 5. Complaints. No formal complaint of an alleged violation of this section
91.34may be filed until the filing party has attempted to address the alleged violations with the
91.35railroad common carrier. Any complaint of an alleged violation must contain a written
92.1statement that the filing party has made a reasonable, good faith attempt to address the
92.2alleged violation.
92.3    Subd. 6. Waiver. Upon written request of a railroad common carrier, the
92.4commissioner of transportation may waive any portion of this section if conditions do
92.5not reasonably permit compliance. The commissioner's decision is subject to section
92.6218.041, and must include an on-site inspection of the area for which the waiver has
92.7been requested. The inspection shall occur between sunset and sunrise, and all parties of
92.8interest shall be permitted to attend.
92.9    Subd. 7. Violations and penalties. A railroad common carrier, corporation, or
92.10person who violates this section is subject to a penalty not to exceed $500 for each violation.
92.11    Subd. 8. Exceptions; applicability. (a) This section establishes minimum standards
92.12for railroad yard lighting. Nothing in this section shall be construed to preclude design of
92.13railroad yard towers with multiple lighting sources, a brighter lighting design, or other
92.14features that exceed the requirements of this section.
92.15(b) This section applies to all Class I and Class II railroad common carrier railroad
92.16yards. This section does not apply to an entity that owns or operates track in Minnesota
92.17that is not a Class I or Class II railroad common carrier as classified by the Federal
92.18Railroad Administration.
92.19(c) Railroad yards and other locations where lighting exists on July 1, 2014, are
92.20deemed compliant with subdivision 1, paragraphs (b) and (c).
92.21EFFECTIVE DATE.This section is effective November 1, 2016.

92.22    Sec. 17. [219.995] MADE IN MINNESOTA SOLAR INSTALLATIONS.
92.23    Subdivision 1. Definitions. (a) For the purposes of this section, the following terms
92.24have the meanings given.
92.25(b) "Made in Minnesota" has the meaning given in section 216C.411, paragraph (a).
92.26(c) "Solar photovoltaic module" has the meaning given in section 116C.7791,
92.27subdivision 1, paragraph (e).
92.28    Subd. 2. Made in Minnesota solar energy system requirement. Notwithstanding
92.29any other law to the contrary, if a railroad common carrier engages in any project in
92.30Minnesota for the construction, improvement, maintenance, or repair of any building,
92.31railroad, railroad yard, railroad facility, or land owned or controlled by the railroad
92.32common carrier and the construction, improvement, maintenance, or repair involves
92.33installation of one or more solar photovoltaic modules, the railroad common carrier
92.34must ensure that the solar photovoltaic modules purchased and installed are "Made in
92.35Minnesota" as defined in subdivision 1, paragraph (b).
93.1    Subd. 3. Application. Subdivision 2 does not apply if:
93.2(1) as a condition of the receipt of federal financial assistance for a specific project,
93.3the railroad common carrier is required to use a procurement method that might result in
93.4the award of a contract to a manufacturer that does not meet the "Made in Minnesota"
93.5definition in subdivision 1, paragraph (b);
93.6(2) no solar photovoltaic modules are available that meet the "Made in Minnesota"
93.7definition and fulfill the function required by the project; or
93.8(3) a railroad common carrier's compliance with the "Made in Minnesota" solar
93.9energy system requirement would result in noncompliance with any applicable federal
93.10statute or regulation.

93.11    Sec. 18. [299A.017] STATE SAFETY OVERSIGHT.
93.12    Subdivision 1. Office created. The commissioner of public safety shall establish an
93.13Office of State Safety Oversight in the Department of Public Safety for safety oversight of
93.14rail fixed guideway public transportation systems within the state. The commissioner shall
93.15designate a director of the office.
93.16    Subd. 2. Authority. The director shall implement and has regulatory authority to
93.17enforce the requirements for the state set forth in United States Code, title 49, sections
93.185329 and 5330, federal regulations adopted pursuant to those sections, and successor or
93.19supplemental requirements.

93.20    Sec. 19. Minnesota Statutes 2012, section 473.408, is amended by adding a subdivision
93.21to read:
93.22    Subd. 11. Transit service on election day. (a) The council shall provide regular
93.23route transit, as defined in section 473.385, subdivision 1, paragraph (b), free of charge
93.24on a day a state general election is held.
93.25(b) The requirements under this subdivision apply to operators of regular route
93.26transit (1) receiving financial assistance under section 473.388, or (2) operating under
93.27section 473.405, subdivision 12.
93.28EFFECTIVE DATE.This section is effective July 1, 2014, and expires November
93.295, 2014.

93.30    Sec. 20. [473.41] TRANSIT SHELTERS AND STOPS.
93.31    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
93.32have the meanings given.
93.33(b) "Transit authority" means:
94.1(1) a statutory or home rule charter city, with respect to rights-of-way at bus stop and
94.2train stop locations, transit shelters, and transit passenger seating facilities owned by the
94.3city or established pursuant to a vendor contract with the city;
94.4(2) the Metropolitan Council, with respect to transit shelters and transit passenger
94.5seating facilities owned by the council or established pursuant to a vendor contract with
94.6the council; or
94.7(3) a replacement service provider under section 473.388, with respect to
94.8rights-of-way at bus stop and train stop locations, transit shelters, and transit passenger
94.9seating facilities owned by the provider or established pursuant to a vendor contract
94.10with the provider.
94.11(c) "Transit shelter" means a wholly or partially enclosed structure provided for
94.12public use as a waiting area in conjunction with light rail transit, bus rapid transit, or
94.13regular route transit.
94.14    Subd. 2. Design. (a) A transit authority shall establish design specifications for
94.15establishment and replacement of its transit shelters, which must include:
94.16(1) engineering standards, as appropriate;
94.17(2) maximization of protection from the wind, snow, and other elements, including
94.18but not limited to entrances that are equivalently sized to regular doorways;
94.19(3) to the extent feasible, inclusion of warming capability at each shelter in which
94.20there is a proportionally high number of transit service passenger boardings; and
94.21(4) full accessibility for the elderly and persons with disabilities.
94.22(b) The council shall consult with the Transportation Accessibility Advisory
94.23Committee.
94.24    Subd. 3. Maintenance. A transit authority shall ensure transit shelters are
94.25maintained in good working order and are accessible to all users of the transit system.
94.26This requirement includes but is not limited to:
94.27(1) keeping transit shelters reasonably clean and free from graffiti; and
94.28(2) removing snow and ice in a manner that provides accessibility for the elderly
94.29and persons with disabilities to be able to enter and exit transit shelters, and board and
94.30exit trains at each stop.
94.31EFFECTIVE DATE.This section is effective the day following final enactment.

94.32    Sec. 21. WATERCRAFT DECONTAMINATION SITES; REST AREAS.
94.33Where feasible with existing resources, the commissioners of natural resources
94.34and transportation shall cooperate in an effort to use rest areas as sites for watercraft
94.35decontamination and other activities to prevent the spread of aquatic invasive species.
95.1EFFECTIVE DATE.This section is effective the day following final enactment.

95.2    Sec. 22. WOMAN VETERAN LICENSE PLATES; DESIGN.
95.3The commissioner of veterans affairs, in consultation with the commissioner of
95.4public safety, a representative of the Minnesota Women Veterans Initiative Working
95.5Group, and any interested Minnesota veterans service organization, shall design the
95.6"WOMAN VETERAN" special plates established in Minnesota Statutes, section 168.123,
95.7subdivision 2, subject to the approval of the commissioner of public safety.

95.8    Sec. 23. HIGHWAY 14 TURNBACK.
95.9Notwithstanding Minnesota Statutes, sections 161.081, subdivision 3, and 161.16, or
95.10any other law to the contrary, the commissioner of transportation may:
95.11(1) by temporary order, take over the road described as "Old Highway 14" in the
95.12settlement agreement and release executed January 7, 2014, between the state and Waseca
95.13and Steele Counties;
95.14(2) expend $35,000,000 or the amount necessary to complete the work required
95.15under the settlement agreement; and
95.16(3) upon completion of the work described in the settlement agreement, release "Old
95.17Highway 14" back to Steele and Waseca Counties.
95.18Upon completion of the work described in the settlement agreement between the
95.19state and Waseca and Steele Counties, the counties shall accept responsibility for the road
95.20described in the agreement as "Old Highway 14."

95.21    Sec. 24. COMMUNITY DESTINATION SIGN PILOT PROGRAM.
95.22    Subdivision 1. Definition. (a) For purposes of this section, the following terms
95.23have the meanings given.
95.24(b) "City" means the city of Two Harbors.
95.25(c) "General retail services" means a business that sells goods or services at retail
95.26and directly to an end-use consumer. General retail services includes but is not limited to:
95.27(1) personal services;
95.28(2) repair services;
95.29(3) hardware stores;
95.30(4) lumber or building supply stores; and
95.31(5) automotive parts sellers.
95.32    Subd. 2. Pilot program established. (a) In consultation with the city of Two
95.33Harbors, the commissioner of transportation shall establish a community destination sign
96.1pilot program for wayfinding within the city to destinations or attractions of interest to
96.2the traveling public.
96.3(b) For purposes of Minnesota Statutes, chapter 173, signs under the pilot program
96.4are official signs.
96.5    Subd. 3. Signage, design. (a) The pilot program must include as eligible attractions
96.6and destinations:
96.7(1) minor traffic generators; and
96.8(2) general retail services, specified by business name, that are identified in a
96.9community wayfinding program established by the city.
96.10(b) The commissioner of transportation, in coordination with the city, may establish
96.11sign design specifications for signs under the pilot program. Design specifications must
96.12allow for placement of:
96.13(1) a city name and city logo or symbol; and
96.14(2) up to five attractions or destinations on a community destination sign assembly.
96.15    Subd. 4. Program costs. The city shall pay costs of design, construction,
96.16erection, and maintenance of the signs and sign assemblies under the pilot program. The
96.17commissioner shall not impose fees for the pilot program.
96.18    Subd. 5. Expiration. The pilot program under this section expires January 1, 2022.
96.19EFFECTIVE DATE.This section is effective the day following final enactment.

96.24

Section 1. SUMMARY OF APPROPRIATIONS.

96.25The amounts shown in this section summarize direct appropriations, by fund, made
96.26in this article.

96.27							2015
96.28	General					$	15,999,000
96.29	Natural Resources						900,000
96.30	Game and Fish						3,000
96.31 96.32	Environment and Natural Resources Trust						490,000
96.33	Total					$	17,392,000

96.34

Sec. 2. APPROPRIATIONS.

97.1The sums shown in the columns marked "Appropriations" are added to the
97.2appropriations in Laws 2013, chapter 114, or appropriated to the agencies and for the
97.3purposes specified in this article. The appropriations are from the general fund, or another
97.4named fund, and are available for the fiscal year indicated for each purpose. The figure
97.5"2015" used in this article means that the addition to the appropriations listed under them
97.6are available for the fiscal year ending June 30, 2015.

97.7				APPROPRIATIONS
97.8				Available for the Year
97.9				Ending June 30
97.10							2015

97.11

Sec. 3. AGRICULTURE.

97.12

Subdivision 1.Total Appropriation

$

1,910,000

97.13The amounts that may be spent for each
97.14purpose are specified in the following
97.15subdivisions.

97.16

Subd. 2.Department of Agriculture

1,600,000

97.17$1,500,000 in 2015 is for a grant to Second
97.18Harvest Heartland on behalf of the six
97.19Feeding America food banks that serve
97.20Minnesota to compensate agricultural
97.21producers and processors for costs incurred
97.22to harvest and package for transfer surplus
97.23fruits, vegetables, or other agricultural
97.24commodities that would otherwise go
97.25unharvested or be discarded. Surplus
97.26commodities must be distributed statewide
97.27to food shelves and other charitable
97.28organizations that are eligible to receive
97.29food from the food banks. Surplus food
97.30acquired under this appropriation must be
97.31from Minnesota producers and processors.
97.32Second Harvest Heartland must report when
97.33required by, and in the form prescribed by,
97.34the commissioner. Second Harvest Heartland
97.35may use up to 11 percent of the grant for
98.1administrative expenses. This appropriation
98.2is added to the base.
98.3$100,000 in 2015 is to compensate experts
98.4evaluating pollinator death or illness as
98.5authorized in Minnesota Statutes, section
98.618B.04. $65,000 is added to the base.
98.7The commissioner shall examine how other
98.8states are implementing the industrial hemp
98.9research authority provided in Public Law
98.10113-79 and gauge the interest of Minnesota
98.11higher education institutions. No later
98.12than January 15, 2015, the commissioner
98.13must report the information and items for
98.14legislative consideration to the legislative
98.15committees with jurisdiction over agriculture
98.16policy and finance.

98.17

Subd. 3.Board of Animal Health

310,000

98.18$310,000 in 2015 is to administer the dog and
98.19cat breeder licensing and inspection program.
98.20The base in fiscal year 2016 is $426,000 and
98.21the base in fiscal year 2017 is $435,000.

98.22

Sec. 4. POLLUTION CONTROL AGENCY

98.23

Subdivision 1.Total Appropriation

$

7,349,000

98.24The amounts that may be spent for each
98.25purpose are specified in the following
98.26subdivisions.

98.27

Subd. 2.Water

1,000

98.28$1,000 in 2015 is to compile information
98.29on the presence of plastic microbeads in the
98.30state's waters and their potential impacts
98.31on aquatic ecosystems and human health,
98.32in consultation with the University of
98.33Minnesota. No later than December 15,
99.12014, the commissioner must present the
99.2information to the legislative committees
99.3with jurisdiction over environment and
99.4natural resources policy and finance and
99.5make recommendations. This is a onetime
99.6appropriation.

99.7 99.8

Subd. 3.Environmental Assistance and Cross-Media

7,348,000

99.9$7,000,000 in 2015 is for the purposes
99.10of Minnesota Statutes, section 115A.557,
99.11subdivision 2. This appropriation is added
99.12to the base.
99.13$348,000 in 2015 is for costs incurred
99.14implementing Minnesota Statutes, sections
99.15116.9401 to 116.9425. This is a onetime
99.16appropriation. Of this amount, $13,000
99.17is transferred to the commissioner of
99.18health. The base for this program from the
99.19environmental fund is $744,000 in fiscal year
99.202016 and $495,000 in fiscal year 2017.

99.21

Sec. 5. NATURAL RESOURCES

99.22

Subdivision 1.Total Appropriation

$

2,107,000

99.23	Appropriations by Fund
99.24	General		1,654,000
99.25	Game and Fish		3,000
99.26	Natural Resources		450,000

99.27The amounts that may be spent for each
99.28purpose are specified in the following
99.29subdivisions.

99.30

Subd. 2.Ecological and Water Resources

50,000

99.31$50,000 in 2015 is for a study of the effects
99.32of the Lake Emily dam in Crow Wing County
99.33on water clarity and water levels in Lake
100.1Emily, Lake Mary, and the Little Pine River.
100.2This is a onetime appropriation.

100.3 100.4

Subd. 3.Parks and Trails Management

2,045,000

100.5$1,595,000 in 2015 is for the improvement,
100.6maintenance, and conditions of facilities and
100.7infrastructure in state parks for safety and
100.8general use. This is a onetime appropriation.
100.9$450,000 in 2015 is from the natural
100.10resources fund for state trail, park, and
100.11recreation area operations. This appropriation
100.12is from the revenue deposited in the natural
100.13resources fund under Minnesota Statutes,
100.14section 297A.94, paragraph (e), clause (2).
100.15This is a onetime appropriation.

100.16 100.17

Subd. 4.Fish and Wildlife Management

12,000

100.18$3,000 in 2015 is from the game and fish fund
100.19for a report on aquatic plant management
100.20permitting policies for the management
100.21of narrow-leaved and hybrid cattail in a
100.22range of basin types across the state. The
100.23report shall be submitted to the chairs and
100.24ranking minority members of the house of
100.25representatives and senate committees with
100.26jurisdiction over environment and natural
100.27resources by December 15, 2014, and include
100.28recommendations for any necessary changes
100.29in statutes, rules, or permitting procedures.
100.30This is a onetime appropriation.
100.31$9,000 in 2015 is for the commissioner,
100.32in consultation with interested parties,
100.33agencies, and other states, to develop a
100.34detailed restoration plan to recover the
100.35historical native population of bobwhite
101.1quail in Minnesota for its ecological and
101.2recreational benefits to the citizens of the
101.3state. The commissioner shall conduct public
101.4meetings in developing the plan. No later
101.5than January 15, 2015, the commissioner
101.6must report on the plan's progress to the
101.7legislative committees with jurisdiction over
101.8environment and natural resources policy
101.9and finance. This is a onetime appropriation.

101.10

Sec. 6. METROPOLITAN COUNCIL

$

450,000

101.11$450,000 in 2015 is from the natural
101.12resources fund for metropolitan area regional
101.13parks and trails maintenance and operations.
101.14This appropriation is from the revenue
101.15deposited in the natural resources fund
101.16under Minnesota Statutes, section 297A.94,
101.17paragraph (e), clause (3). This is a onetime
101.18appropriation.

101.19

Sec. 7. UNIVERSITY OF MINNESOTA

$

5,554,000

101.20	Appropriations by Fund
101.21	General		5,064,000
101.22 101.23 101.24	Environment and Natural Resources Trust		490,000

101.25$3,864,000 in 2015 is from the general fund
101.26for the Invasive Terrestrial Plants and Pests
101.27Center requested under this act, including a
101.28director, graduate students, and necessary
101.29supplies. This is a onetime appropriation and
101.30is available until June 30, 2025.
101.31$490,000 in 2015 is from the environment
101.32and natural resources trust fund for the
101.33Invasive Terrestrial Plants and Pests Center
101.34requested under this act, including a director,
101.35graduate students, and necessary supplies.
102.1This is a onetime appropriation and is
102.2available until June 30, 2025.
102.3$970,000 from the environment and natural
102.4resources trust fund appropriated in Laws
102.52011, First Special Session chapter 2, article
102.63, section 2, subdivision 9, paragraph (d),
102.7Reinvest in Minnesota Wetlands Reserve
102.8Acquisition and Restoration Program
102.9Partnership, is transferred to the Board of
102.10Regents of the University of Minnesota for
102.11the Invasive Terrestrial Plants and Pests
102.12Center requested under this act, including a
102.13director, graduate students, and necessary
102.14supplies and is available until June 30, 2025.
102.15$1,200,000 in 2015 is for the Veterinary
102.16Diagnostic Laboratory to research porcine
102.17epidemic diarrhea virus and other emerging
102.18livestock diseases. Any unexpended balance
102.19as of June 30, 2015, is for the Invasive
102.20Terrestrial Plants and Pests Center requested
102.21under this act and is available until June 30,
102.222025.

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

102.24 102.25

Subd. 3.Ecological and Water Resources

27,182,000

31,582,000 31,604,000

102.26	Appropriations by Fund
102.27 102.28	General	12,117,000	16,817,000 16,839,000
102.29	Natural Resources	11,002,000	10,702,000
102.30	Game and Fish	4,063,000	4,063,000

102.31$3,542,000 the first year and $3,242,000 the
102.32second year are from the invasive species
102.33account in the natural resources fund and
102.34$2,906,000 the first year and $3,206,000 the
102.35second year are from the general fund for
103.1management, public awareness, assessment
103.2and monitoring research, and water access
103.3inspection to prevent the spread of invasive
103.4species; management of invasive plants in
103.5public waters; and management of terrestrial
103.6invasive species on state-administered lands.
103.7$5,000,000 the first year and $5,000,000 the
103.8second year are from the water management
103.9account in the natural resources fund for only
103.10the purposes specified in Minnesota Statutes,
103.11section 103G.27, subdivision 2.
103.12$103,000 the first year and $103,000
103.13 $125,000 the second year are for a grant to
103.14the Mississippi Headwaters Board for up to
103.1550 percent of the cost of implementing the
103.16comprehensive plan for the upper Mississippi
103.17within areas under the board's jurisdiction.
103.18 The base for this grant is $103,000. By
103.19January 15, 2015, the board shall submit a
103.20report detailing the results achieved with
103.21the fiscal year 2014 appropriation and the
103.22anticipated results that will be achieved with
103.23the fiscal year 2015 appropriation to the
103.24commissioner and the chairs and ranking
103.25minority members of the senate and house
103.26of representatives committees and divisions
103.27with jurisdiction over environment and
103.28natural resources policy and finance.
103.29$10,000 the first year and $10,000 the second
103.30year are for payment to the Leech Lake Band
103.31of Chippewa Indians to implement the band's
103.32portion of the comprehensive plan for the
103.33upper Mississippi.
103.34$264,000 the first year and $264,000 the
103.35second year are for grants for up to 50
104.1percent of the cost of implementation of
104.2the Red River mediation agreement. The
104.3commissioner shall submit a report to the
104.4chairs of the legislative committees having
104.5primary jurisdiction over environment and
104.6natural resources policy and finance on the
104.7accomplishments achieved with the grants
104.8by January 15, 2015.
104.9$1,643,000 the first year and $1,643,000
104.10the second year are from the heritage
104.11enhancement account in the game and
104.12fish fund for only the purposes specified
104.13in Minnesota Statutes, section 297A.94,
104.14paragraph (e), clause (1).
104.15$1,223,000 the first year and $1,223,000 the
104.16second year are from the nongame wildlife
104.17management account in the natural resources
104.18fund for the purpose of nongame wildlife
104.19management. Notwithstanding Minnesota
104.20Statutes, section 290.431, $100,000 the first
104.21year and $100,000 the second year may
104.22be used for nongame wildlife information,
104.23education, and promotion.
104.24$1,600,000 the first year and $6,000,000 the
104.25second year are from the general fund for the
104.26following activities:
104.27(1) increased financial reimbursement
104.28and technical support to soil and water
104.29conservation districts or other local units
104.30of government for groundwater level
104.31monitoring;
104.32(2) additional surface water monitoring and
104.33analysis, including installation of monitoring
104.34gauges;
105.1(3) additional groundwater analysis to
105.2assist with water appropriation permitting
105.3decisions;
105.4(4) additional permit application review
105.5incorporating surface water and groundwater
105.6technical analysis;
105.7(5) enhancement of precipitation data and
105.8analysis to improve the use of irrigation;
105.9(6) enhanced information technology,
105.10including electronic permitting and
105.11integrated data systems; and
105.12(7) increased compliance and monitoring.
105.13Of this amount, $600,000 the first year is for
105.14silica sand rulemaking and is available until
105.15spent.
105.16The commissioner, in cooperation with the
105.17commissioner of agriculture, shall enforce
105.18compliance with aquatic plant management
105.19requirements regulating the control of
105.20aquatic plants with pesticides and removal of
105.21aquatic plants by mechanical means under
105.22Minnesota Statutes, section 103G.615.


105.26    Section 1. Minnesota Statutes 2012, section 13.643, subdivision 6, is amended to read:
105.27    Subd. 6. Animal premises data. (a) The following data collected and maintained
105.28by the Board of Animal Health related to registration and identification of premises and
105.29animals under chapter 35, are classified as private or nonpublic:
105.30(1) the names and addresses;
105.31(2) the location of the premises where animals are kept; and
105.32(3) the identification number of the premises or the animal.
106.1(b) Except as provided in section 347.58, subdivision 5, data collected and
106.2maintained by the Board of Animal Health under sections 347.57 to 347.64 are classified
106.3as private or nonpublic.
106.4(b) (c) The Board of Animal Health may disclose data collected under paragraph (a)
106.5 or (b) to any person, agency, or to the public if the board determines that the access will
106.6aid in the law enforcement process or the protection of public or animal health or safety.

106.7    Sec. 2. Minnesota Statutes 2012, section 13.7411, subdivision 8, is amended to read:
106.8    Subd. 8. Pollution Control Agency. (a) Hazardous waste generators.
106.9Information provided by hazardous waste generators under section 473.151 and for which
106.10confidentiality is claimed is governed by section 116.075, subdivision 2.
106.11(b) Tests. Trade secret information made available by applicants for certain projects
106.12of the Pollution Control Agency is classified under section 116.54.
106.13(c) Priority chemicals. Information submitted to the Pollution Control Agency
106.14related to priority chemicals in children's products is classified under section 116.9403.

106.15    Sec. 3. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
106.16to read:
106.17    Subd. 1c. Apiary. "Apiary" means a place where a collection of one or more hives
106.18or colonies of bees or the nuclei of bees are kept.

106.19    Sec. 4. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
106.20to read:
106.21    Subd. 2a. Bee. "Bee" means any stage of the common honeybee, Apis mellifera (L).

106.22    Sec. 5. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
106.23to read:
106.24    Subd. 2b. Bee owner. "Bee owner" means a person who owns an apiary.

106.25    Sec. 6. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
106.26to read:
106.27    Subd. 4c. Colony. "Colony" means the aggregate of worker bees, drones, the queen,
106.28and developing young bees living together as a family unit in a hive or other dwelling.

106.29    Sec. 7. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
106.30to read:
107.1    Subd. 11a. Hive. "Hive" means a frame hive, box hive, box, barrel, log gum, skep,
107.2or any other receptacle or container, natural or artificial, or any part of one, which is
107.3used as domicile for bees.

107.4    Sec. 8. Minnesota Statutes 2012, section 18B.01, is amended by adding a subdivision
107.5to read:
107.6    Subd. 20a. Pollinator. "Pollinator" means an insect that pollinates flowers.

107.7    Sec. 9. Minnesota Statutes 2012, section 18B.03, is amended by adding a subdivision
107.8to read:
107.9    Subd. 4. Pollinator enforcement. The commissioner may take enforcement action
107.10under chapter 18D for a violation of this chapter, or any rule adopted under this chapter,
107.11that results in harm to pollinators, including but not limited to applying a pesticide in
107.12a manner inconsistent with the pesticide product's label or labeling and resulting in
107.13pollinator death or willfully applying pesticide in a manner inconsistent with the pesticide
107.14product's label or labeling. The commissioner must deposit any penalty collected under
107.15this subdivision in the pesticide regulatory account in section 18B.05.

107.16    Sec. 10. Minnesota Statutes 2012, section 18B.04, is amended to read:
107.1718B.04 PESTICIDE IMPACT ON ENVIRONMENT.
107.18(a) The commissioner shall:
107.19(1) determine the impact of pesticides on the environment, including the impacts on
107.20surface water and groundwater in this state;
107.21(2) develop best management practices involving pesticide distribution, storage,
107.22handling, use, and disposal; and
107.23(3) cooperate with and assist other state agencies and local governments to protect
107.24public health, pollinators, and the environment from harmful exposure to pesticides.
107.25(b) The commissioner may assemble a group of experts under section 16C.10,
107.26subdivision 2, to consult in the investigation of pollinator deaths or illnesses. The group of
107.27experts may include representatives from local, state, and federal agencies; academia; the
107.28state pollinator bank; or other professionals as deemed necessary by the commissioner.

107.29    Sec. 11. [18B.055] COMPENSATION FOR BEES KILLED BY PESTICIDE;
107.30APPROPRIATION.
108.1    Subdivision 1. Compensation required. (a) The commissioner of agriculture
108.2must compensate a person for an acute pesticide poisoning resulting in the death of bees
108.3owned by the person, provided:
108.4(1) the person who applied the pesticide cannot be determined;
108.5(2) the person who applied the pesticide did so in a manner consistent with the
108.6pesticide product's label or labeling; or
108.7(3) the person who applied the pesticide did so in a manner inconsistent with the
108.8pesticide product's label or labeling.
108.9(b) Except as provided in this section, the bee owner is entitled to the fair market
108.10value of the dead bees as determined by the commissioner upon recommendation by
108.11academic experts and bee keepers. In any fiscal year, a bee owner must not be compensated
108.12for a claim that is less than $100 or compensated more than $20,000 for all eligible claims.
108.13    Subd. 2. Applicator responsible. In the event a person applies a pesticide in a
108.14manner inconsistent with the pesticide product's label or labeling requirements as approved
108.15by the commissioner and is determined to have caused the acute pesticide poisoning of
108.16bees, resulting in death, kept for commercial purposes, then the person so identified must
108.17bear the responsibility of restitution for the value of the bees to the bee owner. In such
108.18cases the commissioner must not provide compensation as provided in this section.
108.19    Subd. 3. Claim form. The bee owner must file a claim on forms provided by the
108.20commissioner and available on the Department of Agriculture's Web site.
108.21    Subd. 4. Determination. The commissioner must determine whether the death of
108.22the bees was caused by an acute pesticide poisoning, whether the pesticide applicator can
108.23be determined, and whether the pesticide applicator applied the pesticide product in a
108.24manner consistent with the pesticide product's label or labeling.
108.25    Subd. 5. Payments; denial of compensation. (a) If the commissioner determines
108.26the bee death was caused by an acute pesticide poisoning and either the pesticide
108.27applicator cannot be determined or the pesticide applicator applied the pesticide product in
108.28a manner consistent with the pesticide product's label or labeling, the commissioner may
108.29award compensation from the pesticide regulatory account. If the pesticide applicator can
108.30be determined and the applicator applied the pesticide product in a manner inconsistent
108.31with the product's label or labeling, the commissioner may collect a penalty from the
108.32pesticide applicator sufficient to compensate the bee owner for the fair market value of the
108.33dead bees and must award the money to the bee owner.
108.34(b) If the commissioner denies compensation claimed by a bee owner under this
108.35section, the commissioner must issue a written decision based upon the available evidence.
108.36The decision must include specification of the facts upon which the decision is based and
109.1the conclusions on the material issues of the claim. The commissioner must mail a copy
109.2of the decision to the bee owner.
109.3(c) A decision to deny compensation claimed under this section is not subject to the
109.4contested case review procedures of chapter 14, but may be reviewed upon a trial de
109.5novo in a court in the county where the loss occurred. The decision of the court may be
109.6appealed as in other civil cases. Review in court may be obtained by filing a petition for
109.7review with the administrator of the court within 60 days following receipt of a decision
109.8under this section. Upon the filing of a petition, the administrator must mail a copy to the
109.9commissioner and set a time for hearing within 90 days of the filing.
109.10    Subd. 6. Deduction from payment. In order to be eligible for compensation under
109.11this section, a bee owner must document that at the time of the loss the bee owner had
109.12insurance sufficient to cover up to 50 percent of the total value of the owner's colony.
109.13The commissioner must reduce payments made under this section by any compensation
109.14received by the bee owner as proceeds from an insurance policy or from another source.
109.15    Subd. 7. Appropriation. The amount necessary to pay claims under this section,
109.16not to exceed $150,000 per fiscal year, is appropriated from the pesticide regulatory
109.17account in section 18B.05.

109.18    Sec. 12. [19.70] DEFINITIONS.
109.19    Subdivision 1. Scope. For the purposes of this chapter the terms defined in this
109.20section have the meanings given.
109.21    Subd. 2. Abandoned apiary. "Abandoned apiary" means any apiary not regularly
109.22attended in accordance with good beekeeping practices and which constitutes a disease or
109.23parasite hazard to the beekeeping industry.
109.24    Subd. 3. Africanized honeybees. "Africanized honeybees" means Africanized
109.25honeybees using United States Department of Agriculture standards.
109.26    Subd. 4. Bee diseases. "Bee diseases" means infectious, contagious, or harmful
109.27diseases including but not limited to: American or European foulbrood, sacbrood,
109.28chalkbrood, Nosema, bee paralysis, or abnormal condition of egg, larval, pupal, or adult
109.29stages of bees.
109.30    Subd. 5. Bee equipment. "Bee equipment" means hives, supers, frames, veils,
109.31gloves, and any apparatus, tool, machine, vehicle, or other device used in the handling,
109.32moving, or manipulating of bees, honey, wax, or hives, including containers of honey or
109.33wax which may be used in an apiary or in transporting bees and their products and apiary
109.34supplies.
109.35    Subd. 6. Beekeeper. "Beekeeper" means a person who keeps bees.
110.1    Subd. 7. Beekeeping. "Beekeeping" means the moving, raising, and producing of
110.2bees, beeswax, honey, related products, and pollination.
110.3    Subd. 8. Commissioner. "Commissioner" means the commissioner of agriculture
110.4or the commissioner's authorized agents.
110.5    Subd. 9. Department. "Department" means the Department of Agriculture.
110.6    Subd. 10. Exotic parasite. "Exotic parasite" means any parasite harmful to bees
110.7including but not limited to: Varroa jacobsoni, Tropilaelaps clareae, or Acarapis woodi.
110.8    Subd. 11. Queen apiary. "Queen apiary" means any apiary or premises in which
110.9queen bees are reared or kept for sale or gift.

110.10    Sec. 13. Minnesota Statutes 2012, section 84.788, subdivision 2, is amended to read:
110.11    Subd. 2. Exemptions. Registration is not required for off-highway motorcycles:
110.12(1) owned and used by the United States, an Indian tribal government, the state,
110.13another state, or a political subdivision;
110.14(2) registered in another state or country that have not been within this state for
110.15more than 30 consecutive days; or
110.16(3) registered under chapter 168, when operated on forest roads to gain access to a
110.17state forest campground;
110.18(4) used exclusively in organized track racing events;
110.19(5) operated on state or grant-in-aid trails by a nonresident possessing a nonresident
110.20off-highway motorcycle state trail pass; or
110.21(6) operated by a person participating in an event for which the commissioner has
110.22issued a special use permit.

110.23    Sec. 14. [84.7945] NONRESIDENT OFF-HIGHWAY MOTORCYCLE STATE
110.24TRAIL PASS.
110.25    Subdivision 1. Pass required; fee. (a) A tribal member exempt from registration
110.26under section 84.788, subdivision 2, clause (2), or a nonresident, may not operate an
110.27off-highway motorcycle on a state or grant-in-aid off-highway motorcycle trail unless the
110.28operator carries a valid nonresident off-highway motorcycle state trail pass in immediate
110.29possession. The pass must be available for inspection by a peace officer, a conservation
110.30officer, or an employee designated under section 84.0835.
110.31(b) The commissioner of natural resources shall issue a pass upon application and
110.32payment of a $20 fee. The pass is valid from January 1 through December 31. Fees
110.33collected under this section, except for the issuing fee for licensing agents, shall be
110.34deposited in the state treasury and credited to the off-highway motorcycle account in
111.1the natural resources fund and, except for the electronic licensing system commission
111.2established by the commissioner under section 84.027, subdivision 15, must be used for
111.3grants-in-aid to counties and municipalities for off-highway motorcycle organizations to
111.4construct and maintain off-highway motorcycle trails and use areas.
111.5    (c) A nonresident off-highway motorcycle state trail pass is not required for:
111.6    (1) an off-highway motorcycle that is owned and used by the United States, another
111.7state, or a political subdivision thereof that is exempt from registration under section
111.884.788, subdivision 2;
111.9    (2) a person operating an off-highway motorcycle only on the portion of a trail that
111.10is owned by the person or the person's spouse, child, or parent; or
111.11(3) a nonresident operating an off-highway motorcycle that is registered according
111.12to section 84.788.
111.13    Subd. 2. License agents. The commissioner may appoint agents to issue and sell
111.14nonresident off-highway motorcycle state trail passes. The commissioner may revoke the
111.15appointment of an agent at any time. The commissioner may adopt additional rules as
111.16provided in section 97A.485, subdivision 11. An agent shall observe all rules adopted
111.17by the commissioner for accounting and handling of passes pursuant to section 97A.485,
111.18subdivision 11 . An agent shall promptly deposit and remit all money received from the
111.19sale of the passes, exclusive of the issuing fee, to the commissioner.
111.20    Subd. 3. Issuance of passes. The commissioner and agents shall issue and sell
111.21nonresident off-highway motorcycle state trail passes. The commissioner shall also make
111.22the passes available through the electronic licensing system established under section
111.2384.027, subdivision 15.
111.24    Subd. 4. Agent's fee. In addition to the fee for a pass, an issuing fee of $1 per pass
111.25shall be charged. The issuing fee may be retained by the seller of the pass. Issuing fees
111.26for passes issued by the commissioner shall be deposited in the off-highway motorcycle
111.27account in the natural resources fund and retained for the operation of the electronic
111.28licensing system.
111.29    Subd. 5. Duplicate passes. The commissioner and agents shall issue a duplicate
111.30pass to persons whose pass is lost or destroyed using the process established under section
111.3197A.405, subdivision 3, and rules adopted thereunder. The fee for a duplicate nonresident
111.32off-highway motorcycle state trail pass is $2, with an issuing fee of 50 cents.

111.33    Sec. 15. Minnesota Statutes 2012, section 85.053, subdivision 2, is amended to read:
111.34    Subd. 2. Requirement. Except as provided in section 85.054, a motor vehicle
111.35may not enter a state park, state recreation area, or state wayside over 50 acres in area,
112.1without a state park permit issued under this section or a state parks and trails plate issued
112.2under section 168.1295. Except for vehicles permitted under subdivisions 7, paragraph
112.3(a), clause (2), and 8, the state park permit must be affixed to the lower right corner
112.4windshield of the motor vehicle and must be completely affixed by its own adhesive to
112.5the windshield, or the commissioner may, by written order, provide an alternative means
112.6to display and validate state park permits.

112.7    Sec. 16. [85.056] STATE PARKS AND TRAILS DONATION ACCOUNT.
112.8    Subdivision 1. Establishment. The state parks and trails donation account is
112.9established as a separate account in the natural resources fund. The account shall be
112.10administered by the commissioner of natural resources as provided in this section.
112.11    Subd. 2. Funding sources. The state parks and trails donation account shall consist
112.12of contributions made under section 168.1295 and other contributions. The contributions
112.13may be made in cash, property, land, or interests in land.
112.14    Subd. 3. Uses. Money in the account is appropriated to the commissioner of natural
112.15resources to operate and maintain the state parks and trails system.

112.16    Sec. 17. Minnesota Statutes 2012, section 85.34, subdivision 7, is amended to read:
112.17    Subd. 7. Disposition of proceeds. (a) All revenue derived from the lease of the Fort
112.18Snelling upper bluff, with the exception of payment for costs of the water line as described
112.19in subdivision 6, shall be deposited in the natural resources fund and credited to a state
112.20park account. Interest earned on the money in the account accrues to the account.
112.21(b) Revenue and expenses from the upper bluff shall be tracked separately within
112.22the account. Money in the account derived from the leasing or operation of the property
112.23described in subdivision 1 may be is appropriated annually to the commissioner for
112.24the payment of expenses attributable to the leasing, development, and operation of the
112.25property described in subdivision 1, including, but not limited to, the maintenance, repair,
112.26and rehabilitation of historic buildings and landscapes.

112.27    Sec. 18. Minnesota Statutes 2012, section 85A.02, subdivision 2, is amended to read:
112.28    Subd. 2. Zoological Garden. The board shall acquire, construct, equip, operate
112.29and maintain the Minnesota Zoological Garden at a site in Dakota County legally
112.30described in Laws 1975, chapter 382, section 12. The Zoological Garden shall consist
112.31of adequate facilities and structures for the collection, habitation, preservation, care,
112.32exhibition, examination or study of wild and domestic animals, including, but not limited
112.33to mammals, birds, fish, amphibians, reptiles, crustaceans and mollusks. The board
113.1may provide such lands, buildings and equipment as it deems necessary for parking,
113.2transportation, entertainment, education or instruction of the public in connection with
113.3such Zoological Garden. The Zoological Garden is the official pollinator bank for the state
113.4of Minnesota. For purposes of this subdivision, "pollinator bank" means a program to
113.5avert the extinction of pollinator species by cultivating insurance breeding populations.

113.6    Sec. 19. [87A.10] TRAP SHOOTING SPORTS FACILITY GRANTS.
113.7The commissioner of natural resources shall administer a program to provide
113.8cost-share grants to local recreational trap shooting clubs for up to 50 percent of the costs
113.9of developing or rehabilitating trap shooting sports facilities for public use. A facility
113.10rehabilitated or developed with a grant under this section must be open to the general
113.11public at reasonable times and for a reasonable fee on a walk-in basis. The commissioner
113.12shall give preference to projects that will provide the most opportunities for youth.

113.13    Sec. 20. Minnesota Statutes 2012, section 103G.271, subdivision 6, is amended to read:
113.14    Subd. 6. Water use permit processing fee. (a) Except as described in paragraphs
113.15(b) to (f) (g), a water use permit processing fee must be prescribed by the commissioner in
113.16accordance with the schedule of fees in this subdivision for each water use permit in force
113.17at any time during the year. Fees collected under this paragraph are credited to the water
113.18management account in the natural resources fund. The schedule is as follows, with the
113.19stated fee in each clause applied to the total amount appropriated:
113.20    (1) $140 for amounts not exceeding 50,000,000 gallons per year;
113.21    (2) $3.50 per 1,000,000 gallons for amounts greater than 50,000,000 gallons but less
113.22than 100,000,000 gallons per year;
113.23    (3) $4 per 1,000,000 gallons for amounts greater than 100,000,000 gallons but less
113.24than 150,000,000 gallons per year;
113.25    (4) $4.50 per 1,000,000 gallons for amounts greater than 150,000,000 gallons but
113.26less than 200,000,000 gallons per year;
113.27    (5) $5 per 1,000,000 gallons for amounts greater than 200,000,000 gallons but less
113.28than 250,000,000 gallons per year;
113.29    (6) $5.50 per 1,000,000 gallons for amounts greater than 250,000,000 gallons but
113.30less than 300,000,000 gallons per year;
113.31    (7) $6 per 1,000,000 gallons for amounts greater than 300,000,000 gallons but less
113.32than 350,000,000 gallons per year;
113.33    (8) $6.50 per 1,000,000 gallons for amounts greater than 350,000,000 gallons but
113.34less than 400,000,000 gallons per year;
114.1    (9) $7 per 1,000,000 gallons for amounts greater than 400,000,000 gallons but less
114.2than 450,000,000 gallons per year;
114.3    (10) $7.50 per 1,000,000 gallons for amounts greater than 450,000,000 gallons but
114.4less than 500,000,000 gallons per year; and
114.5    (11) $8 per 1,000,000 gallons for amounts greater than 500,000,000 gallons per year.
114.6    (b) For once-through cooling systems, a water use processing fee must be prescribed
114.7by the commissioner in accordance with the following schedule of fees for each water use
114.8permit in force at any time during the year:
114.9    (1) for nonprofit corporations and school districts, $200 per 1,000,000 gallons; and
114.10    (2) for all other users, $420 per 1,000,000 gallons.
114.11    (c) The fee is payable based on the amount of water appropriated during the year
114.12and, except as provided in paragraph (f), the minimum fee is $100.
114.13    (d) For water use processing fees other than once-through cooling systems:
114.14    (1) the fee for a city of the first class may not exceed $250,000 per year;
114.15    (2) the fee for other entities for any permitted use may not exceed:
114.16    (i) $60,000 per year for an entity holding three or fewer permits;
114.17    (ii) $90,000 per year for an entity holding four or five permits; or
114.18    (iii) $300,000 per year for an entity holding more than five permits;
114.19    (3) the fee for agricultural irrigation may not exceed $750 per year;
114.20    (4) the fee for a municipality that furnishes electric service and cogenerates steam
114.21for home heating may not exceed $10,000 for its permit for water use related to the
114.22cogeneration of electricity and steam; and
114.23    (5) no fee is required for a project involving the appropriation of surface water to
114.24prevent flood damage or to remove flood waters during a period of flooding, as determined
114.25by the commissioner.
114.26    (e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two
114.27percent per month calculated from the original due date must be imposed on the unpaid
114.28balance of fees remaining 30 days after the sending of a second notice of fees due. A fee
114.29may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal
114.30governmental agency holding a water appropriation permit.
114.31    (f) The minimum water use processing fee for a permit issued for irrigation of
114.32agricultural land is $20 for years in which:
114.33    (1) there is no appropriation of water under the permit; or
114.34    (2) the permit is suspended for more than seven consecutive days between May 1
114.35and October 1.
115.1(g) The commissioner shall waive the water use permit fee for installations and
115.2projects that use storm water runoff or for a public entity that is diverting water to treat a
115.3water quality issue and returning that water to its source without using the water for
115.4any other purpose, unless the commissioner determines that any of the proposed uses
115.5adversely affect surface water or groundwater.
115.6    (g) (h) A surcharge of $30 per million gallons in addition to the fee prescribed in
115.7paragraph (a) shall be applied to the volume of water used in each of the months of June,
115.8July, and August that exceeds the volume of water used in January for municipal water
115.9use, irrigation of golf courses, and landscape irrigation. The surcharge for municipalities
115.10with more than one permit shall be determined based on the total appropriations from all
115.11permits that supply a common distribution system.

115.12    Sec. 21. Minnesota Statutes 2012, section 115A.151, is amended to read:
115.13115A.151 RECYCLABLE MATERIAL CONTAINER REQUIREMENTS;
115.14PUBLIC ENTITIES AND SPORTS FACILITIES.
115.15(a) A public entity and the owner of a sports facility shall:
115.16(1) ensure that facilities under its control, from which mixed municipal solid waste
115.17is collected, have containers for at least three recyclable materials, such as, but not limited
115.18to, paper, glass, plastic, and metal; and
115.19(2) transfer all recyclable materials collected to a recycler.
115.20(b) For the purposes of this section:
115.21(1) "public entity" means the state, an office, agency, or institution of the state,
115.22the Metropolitan Council, a metropolitan agency, the Metropolitan Mosquito Control
115.23Commission, the legislature, the courts, a county, a statutory or home rule charter city, a
115.24town, a school district, a special taxing district, or any entity that receives an appropriation
115.25from the state for a capital improvement project after August 1, 2002;
115.26(2) "metropolitan agency" and "Metropolitan Council," have the meanings given
115.27them in section 473.121; and
115.28(3) "Metropolitan Mosquito Control Commission" means the commission created
115.29in section 473.702; and
115.30(4) "sports facility" means a professional or collegiate sports facility at which
115.31competitions take place before a public audience.
115.32EFFECTIVE DATE.This section is effective January 1, 2015.

115.33    Sec. 22. Minnesota Statutes 2012, section 115A.55, subdivision 4, is amended to read:
116.1    Subd. 4. Statewide source reduction goal. (a) It is a goal of the state that there
116.2be a minimum ten percent per capita reduction in the amount of mixed and counties to
116.3reduce the generation of municipal solid waste generated in the state by December 31,
116.42000, based on a reasonable estimate of the amount of mixed municipal solid waste that
116.5was generated in calendar year 1993.
116.6(b) As part of the 1997 report required under section 115A.411, the commissioner
116.7shall submit to the senate and house of representatives committees having jurisdiction
116.8over environment and natural resources and environment and natural resources finance
116.9a proposed strategy for meeting the goal in paragraph (a). The strategy must include a
116.10discussion of the different reduction potentials to be found in various sectors and may
116.11include recommended interim goals. The commissioner shall report progress on meeting
116.12the goal in paragraph (a), as well as recommendations and revisions to the proposed
116.13strategy, as part of the 1999 report required under section 115A.411.
116.14EFFECTIVE DATE.This section is effective the day following final enactment.

116.15    Sec. 23. Minnesota Statutes 2012, section 115A.551, subdivision 1, is amended to read:
116.16    Subdivision 1. Definition. (a) For the purposes of this section, "recycling" means,
116.17in addition to the meaning given in section 115A.03, subdivision 25b, yard waste and
116.18source-separated compostable materials composting, and recycling that occurs through
116.19mechanical or hand separation of materials that are then delivered for reuse in their
116.20original form or for use in manufacturing processes that do not cause the destruction of
116.21recyclable materials in a manner that precludes further use.
116.22(b) For the purposes of this section, "total solid waste generation" means the total
116.23by weight of:
116.24(1) materials separated for recycling;
116.25(2) materials separated for yard waste and source-separated compostable materials
116.26composting;
116.27(3) mixed municipal solid waste plus yard waste, motor and vehicle fluids and
116.28filters, tires, lead acid batteries, and major appliances; and
116.29(4) residential waste materials that would be mixed municipal solid waste but for
116.30the fact that they are not collected as such.
116.31EFFECTIVE DATE.This section is effective the day following final enactment.

116.32    Sec. 24. Minnesota Statutes 2012, section 115A.551, subdivision 2a, is amended to read:
117.1    Subd. 2a. Supplementary County recycling goals. (a) By December 31, 1996
117.2 2030, each county will have as a goal to recycle the following amounts:
117.3(1) for a county outside of the metropolitan area, 35 percent by weight of total
117.4solid waste generation; and
117.5(2) for a metropolitan county, 50 75 percent by weight of total solid waste generation.
117.6(b) Each county will develop and implement or require political subdivisions within
117.7the county to develop and implement programs, practices, or methods designed to meet its
117.8recycling goal. Nothing in this section or in any other law may be construed to prohibit a
117.9county from establishing a higher recycling goal.
117.10EFFECTIVE DATE.This section is effective the day following final enactment.

117.11    Sec. 25. Minnesota Statutes 2012, section 115A.557, subdivision 2, is amended to read:
117.12    Subd. 2. Purposes for which money may be spent. (a) A county receiving money
117.13distributed by the commissioner under this section may use the money only for the
117.14development and implementation of programs to:
117.15(1) reduce the amount of solid waste generated;
117.16(2) recycle the maximum amount of solid waste technically feasible;
117.17(3) create and support markets for recycled products;
117.18(4) remove problem materials from the solid waste stream and develop proper
117.19disposal options for them;
117.20(5) inform and educate all sectors of the public about proper solid waste management
117.21procedures;
117.22(6) provide technical assistance to public and private entities to ensure proper solid
117.23waste management;
117.24(7) provide educational, technical, and financial assistance for litter prevention; and
117.25(8) process mixed municipal solid waste generated in the county at a resource
117.26recovery facility located in Minnesota; and
117.27(9) compost source-separated compostable materials, including the provision of
117.28receptacles for residential composting.
117.29(b) Beginning in fiscal year 2015 and continuing thereafter, of any money distributed
117.30by the commissioner under this section to a metropolitan county, as defined in section
117.31473.121, subdivision 4, that exceeds the amount the county was eligible to receive under
117.32this section in fiscal year 2014: (1) at least 50 percent must be expended on activities
117.33in paragraph (a), clause (9); and (2) the remainder must be expended on activities in
117.34paragraph (a), clauses (1) to (7) and (9) that advance the county toward achieving its
117.35recycling goal under section 115A.551.
118.1EFFECTIVE DATE.This section is effective the day following final enactment.

118.2    Sec. 26. Minnesota Statutes 2012, section 115A.557, subdivision 3, is amended to read:
118.3    Subd. 3. Eligibility to receive money. (a) To be eligible to receive money distributed
118.4by the commissioner under this section, a county shall within one year of October 4, 1989:
118.5(1) create a separate account in its general fund to credit the money; and
118.6(2) set up accounting procedures to ensure that money in the separate account is
118.7spent only for the purposes in subdivision 2.
118.8(b) In each following year, each county shall also:
118.9(1) have in place an approved solid waste management plan or master plan including
118.10a recycling implementation strategy under section 115A.551, subdivision 7, and a
118.11household hazardous waste management plan under section 115A.96, subdivision 6,
118.12by the dates specified in those provisions;
118.13(2) submit a report by April 1 of each year to the commissioner, which may be
118.14submitted electronically and must be posted on the agency's Web site, detailing for the
118.15previous calendar year:
118.16(i) how the money was spent including, but not limited to, specific recycling and
118.17composting activities undertaken to increase the county's proportion of solid waste
118.18recycled in order to achieve its recycling goal established in section 115A.551; specific
118.19information on the number of employees performing SCORE planning, oversight, and
118.20administration; the percentage of those employees' total work time allocated to SCORE
118.21planning, oversight, and administration; the specific duties and responsibilities of those
118.22employees; and the amount of staff salary for these SCORE duties and responsibilities of
118.23the employees; and
118.24(ii) the resulting gains achieved in solid waste management practices; and
118.25(3) provide evidence to the commissioner that local revenue equal to 25 percent of
118.26the money sought for distribution under this section will be spent for the purposes in
118.27subdivision 2.
118.28(c) The commissioner shall withhold all or part of the funds to be distributed
118.29to a county under this section if the county fails to comply with this subdivision and
118.30subdivision 2.
118.31EFFECTIVE DATE.This section is effective the day following final enactment.

118.32    Sec. 27. Minnesota Statutes 2012, section 115B.39, subdivision 2, is amended to read:
119.1    Subd. 2. Definitions. (a) In addition to the definitions in this subdivision, the
119.2definitions in sections 115A.03 and 115B.02 apply to sections 115B.39 to 115B.445,
119.3except as specifically modified in this subdivision.
119.4(b) "Cleanup order" means a consent order between responsible persons and the
119.5agency or an order issued by the United States Environmental Protection Agency under
119.6section 106 of the federal Superfund Act.
119.7(c) "Closure" means actions to prevent or minimize the threat to public health and
119.8the environment posed by a mixed municipal solid waste disposal facility that has stopped
119.9accepting waste by controlling the sources of releases or threatened releases at the facility.
119.10"Closure" includes removing contaminated equipment and liners; applying final cover;
119.11grading and seeding final cover; installing wells, borings, and other monitoring devices;
119.12constructing groundwater and surface water diversion structures; and installing gas control
119.13systems and site security systems, as necessary. The commissioner may authorize use of
119.14final cover that includes processed materials that meet the requirements in Code of Federal
119.15Regulations, title 40, section 503.32, paragraph (a).
119.16(d) "Closure upgrade" means construction activity that will, at a minimum, modify
119.17an existing cover so that it satisfies current rule requirements for mixed municipal solid
119.18waste land disposal facilities.
119.19(e) "Contingency action" means organized, planned, or coordinated courses of action
119.20to be followed in case of fire, explosion, or release of solid waste, waste by-products, or
119.21leachate that could threaten human health or the environment.
119.22(f) "Corrective action" means steps taken to repair facility structures including
119.23liners, monitoring wells, separation equipment, covers, and aeration devices and to bring
119.24the facility into compliance with design, construction, groundwater, surface water, and air
119.25emission standards.
119.26(g) "Decomposition gases" means gases produced by chemical or microbial activity
119.27during the decomposition of solid waste.
119.28(h) "Dump materials" means nonhazardous mixed municipal solid wastes disposed
119.29at a Minnesota waste disposal site other than a qualified facility prior to 1973.
119.30(i) "Environmental response action" means response action at a qualified facility,
119.31including corrective action, closure, postclosure care; contingency action; environmental
119.32studies, including remedial investigations and feasibility studies; engineering, including
119.33remedial design; removal; remedial action; site construction; and other similar
119.34cleanup-related activities.
119.35(j) "Environmental response costs" means:
120.1(1) costs of environmental response action, not including legal or administrative
120.2expenses; and
120.3(2) costs required to be paid to the federal government under section 107(a) of
120.4the federal Superfund Act, as amended.
120.5(k) "Postclosure" or "postclosure care" means actions taken for the care, maintenance,
120.6and monitoring of closure actions at a mixed municipal solid waste disposal facility.
120.7(l) "Qualified facility" means a mixed municipal solid waste disposal facility as
120.8described in the most recent agency permit, including adjacent property used for solid
120.9waste disposal that did not occur under a permit from the agency, that:
120.10(1)(i) is or was permitted by the agency;
120.11(ii) stopped accepting solid waste, except demolition debris, for disposal by April 9,
120.121994; and
120.13(iii) stopped accepting demolition debris for disposal by June 1, 1994, except that
120.14demolition debris may be accepted until May 1, 1995, at a permitted area where disposal
120.15of demolition debris is allowed, if the area where the demolition debris is deposited is at
120.16least 50 feet from the fill boundary of the area where mixed municipal solid waste was
120.17deposited; or
120.18(2)(i) is or was permitted by the agency; and
120.19(ii) (i) stopped accepting waste by January 1, 2000, except that demolition debris,
120.20industrial waste, and municipal solid waste combustor ash may be accepted until January
120.211, 2001, at a permitted area where disposal of such waste is allowed, if the area where
120.22the waste is deposited is at least 50 feet from the fill boundary of the area where mixed
120.23municipal solid waste was deposited; or
120.24(ii) stopped accepting waste by January 1, 2019, and is located in a county that
120.25meets all applicable recycling goals in section 115A.551 and that has arranged for all
120.26mixed municipal solid waste generated in the county to be delivered to and processed by a
120.27resource recovery facility located in the county for at least 20 years.
120.28EFFECTIVE DATE.This section is effective the day following final enactment.

120.29    Sec. 28. Minnesota Statutes 2012, section 116.9401, is amended to read:
120.30116.9401 DEFINITIONS.
120.31(a) For the purposes of sections 116.9401 to 116.9407 116.9425, the following terms
120.32have the meanings given them.
120.33(b) "Agency" means the Pollution Control Agency.
121.1(c) "Alternative" means a substitute process, product, material, chemical, strategy,
121.2or combination of these that is technically feasible and serves a functionally equivalent
121.3purpose to a chemical in a children's product.
121.4(d) "Chemical" means a substance with a distinct molecular composition or a group
121.5of structurally related substances and includes the breakdown products of the substance or
121.6substances that form through decomposition, degradation, or metabolism.
121.7(e) "Chemical of high concern" means a chemical identified on the basis of credible
121.8scientific evidence by a state, federal, or international agency as being known or suspected
121.9with a high degree of probability to:
121.10(1) harm the normal development of a fetus or child or cause other developmental
121.11toxicity;
121.12(2) cause cancer, genetic damage, or reproductive harm;
121.13(3) disrupt the endocrine or hormone system;
121.14(4) damage the nervous system, immune system, or organs, or cause other systemic
121.15toxicity;
121.16(5) be persistent, bioaccumulative, and toxic; or
121.17(6) be very persistent and very bioaccumulative.
121.18(f) "Child" means a person under 12 years of age.
121.19(g) "Children's product" means a consumer product intended for use by children,
121.20such as baby products, toys, car seats, personal care products, and clothing.
121.21(h) "Commissioner" means the commissioner of the Pollution Control Agency.
121.22(i) "Contaminant" means a trace amount of a chemical that is incidental to
121.23manufacturing and serves no intended function in the product component. Contaminant
121.24includes, but is not limited to, unintended by-products of chemical reactions that
121.25occur during the manufacture of the product component, trace impurities in feedstock,
121.26incompletely reacted chemical mixtures, and degradation products.
121.27(j) "Department" means the Department of Health.
121.28(j) (k) "Distributor" means a person who sells consumer products to retail
121.29establishments on a wholesale basis.
121.30(k) (l) "Green chemistry" means an approach to designing and manufacturing
121.31products that minimizes the use and generation of toxic substances.
121.32(m) "Intentionally added chemical" means a chemical in a product that serves an
121.33intended function in the product component.
121.34(l) (n) "Manufacturer" means any person who manufactures a final consumer product
121.35sold at retail or whose brand name is affixed to the consumer product. In the case of a
121.36consumer product imported into the United States, manufacturer includes the importer
122.1or domestic distributor of the consumer product if the person who manufactured or
122.2assembled the consumer product or whose brand name is affixed to the consumer product
122.3does not have a presence in the United States.
122.4(o) "Mouthable" means a product that can be placed into and kept in a child's
122.5mouth to be sucked or chewed, including any product or product part smaller than five
122.6centimeters in one dimension. A product that can only be licked is not mouthable.
122.7(p) "Practical quantification limit" means the lowest concentration of a chemical that
122.8can be reliably measured within specified limits of precision, accuracy, representativeness,
122.9completeness, and comparability under routine laboratory operating conditions and the
122.10value of which:
122.11(1) is based on scientifically defensible, standard analytical methods;
122.12(2) may vary depending on the matrix and analytical method used; and
122.13(3) will be determined by the commissioner, taking into consideration practical
122.14quantification limits established by federal or state agencies.
122.15(m) (q) "Priority chemical" means a chemical identified by the Department of Health
122.16as a chemical of high concern that meets the criteria in section 116.9403.
122.17(r) "Product category" means the brick level of the GS1 Global Product Classification
122.18(GPC) standard, which identifies products that serve a common purpose, are of a similar
122.19form and material, and share the same set of category attributes.
122.20(s) "Product code" means the numeric representation of the item level of the
122.21GS1 electronic product code (EPC), the international article number (EAN), or the
122.22universal product code (UPC), whichever is used by a manufacturer to identify a unique
122.23company-specific or brand-specific product.
122.24(t) "Product component" means a uniquely identifiable material or coating including,
122.25but not limited to, an ink or dye that is intended to be included as a part of a finished
122.26children's product.
122.27(n) (u) "Safer alternative" means:
122.28(1) an alternative whose potential to harm human health or the environment is less
122.29than that of the use of a priority chemical that it could replace.;
122.30(2) an alternative chemical that is not a priority chemical identified by the department
122.31under section 116.9403; or
122.32(3) an alternative chemical that is not identified on the basis of credible scientific
122.33evidence by a state, federal, or international agency as being known or suspected with
122.34a high degree of probability to:
122.35(i) harm the normal development of a fetus or child or cause other developmental
122.36toxicity;
123.1(ii) cause cancer, genetic damage, or reproductive harm;
123.2(iii) disrupt the endocrine or hormone system; or
123.3(iv) damage the nervous system, immune system, or organs, or cause other systemic
123.4toxicity.
123.5(v) "Toy" means a product designed or intended by the manufacturer to be used
123.6by a child at play.
123.7(w) "Trade association" means a membership organization of persons engaging
123.8in a similar or related line of commerce, organized to promote and improve business
123.9conditions in that line of commerce and not to engage in a regular business of a kind
123.10ordinarily carried on for profit.

123.11    Sec. 29. Minnesota Statutes 2012, section 116.9402, is amended to read:
123.12116.9402 IDENTIFICATION OF CHEMICALS OF HIGH CONCERN.
123.13(a) By July 1, 2010, the department shall, after consultation with the agency,
123.14generate a list of chemicals of high concern.
123.15(b) The department must periodically review and revise the list of chemicals of
123.16high concern at least every three years. The department may add chemicals to the list if
123.17the chemical meets one or more of the criteria in section 116.9401, paragraph (e). Any
123.18changes to the list of chemicals of high concern must be published on the department's
123.19Web site and in the State Register when a change is made.
123.20(c) The department shall consider chemicals listed as a suspected carcinogen,
123.21reproductive or developmental toxicant, or as being persistent, bioaccumulative, and
123.22toxic, or very persistent and very bioaccumulative by a state, federal, or international
123.23agency. These agencies may include, but are not limited to, the California Environmental
123.24Protection Agency, the Washington Department of Ecology, the United States Department
123.25of Health, the United States Environmental Protection Agency, the United Nation's World
123.26Health Organization, and European Parliament Annex XIV concerning the Registration,
123.27Evaluation, Authorisation, and Restriction of Chemicals.
123.28(d) The department may consider chemicals listed by another state as harmful to
123.29human health or the environment for possible inclusion in the list of chemicals of high
123.30concern.

123.31    Sec. 30. Minnesota Statutes 2012, section 116.9403, is amended to read:
123.32116.9403 IDENTIFICATION OF PRIORITY CHEMICALS.
124.1    Subdivision 1. Designation; publication. (a) The department, after consultation
124.2with the agency, may designate a chemical of high concern as a priority chemical if the
124.3department finds that the chemical:
124.4(1) has been identified as a high-production volume chemical by the United States
124.5Environmental Protection Agency; and
124.6(2) meets any of the following criteria:
124.7(i) the chemical has been found through biomonitoring to be present in human blood,
124.8including umbilical cord blood, breast milk, urine, or other bodily tissues or fluids;
124.9(ii) the chemical has been found through sampling and analysis to be present in
124.10household dust, indoor air, drinking water, or elsewhere in the home environment; or
124.11(iii) the chemical has been found through monitoring to be present in fish, wildlife,
124.12or the natural environment.
124.13(b) By February 1, 2011, the department shall publish a list of priority chemicals in
124.14the State Register and on the department's Internet Web site and shall update the published
124.15list whenever a new priority chemical is designated. Any proposed changes to the list
124.16of priority chemicals must be published on the department's Web site and in the State
124.17Register and will be subject to a minimum 60-day public comment period. In the 60 days
124.18following the date of publication in the State Register, the public may submit comments
124.19to the department on the proposed changes to the priority chemical list. A final list of
124.20changes to the list of priority chemicals must be published on the department's Web site
124.21following the end of the comment period and the department's review and consideration of
124.22all comments received during this period before finalizing changes to the list.
124.23    Subd. 2. Public data. Notwithstanding section 13.37, subdivision 2, the presence
124.24and concentration and total amount of a priority chemical in a specific children's product
124.25reported to the agency under section 116.9409, clauses (1) to (6), are classified as public
124.26data.
124.27    Subd. 3. Not misappropriation of trade secret. Notwithstanding section 325C.01,
124.28subdivision 3, publication of the presence and concentration and total amount of a priority
124.29chemical in a specific children's product under this section is not misappropriation of
124.30a trade secret.

124.31    Sec. 31. Minnesota Statutes 2012, section 116.9405, is amended to read:
124.32116.9405 APPLICABILITY EXEMPTIONS.
124.33The requirements of sections 116.9401 116.9408 to 116.9407 116.9425 do not
124.34apply to:
124.35(1) chemicals in used previously owned children's products;
125.1(2) priority chemicals used in the manufacturing process, but that are not present
125.2in the final product;
125.3(3) priority chemicals used in agricultural production;
125.4(4) motor vehicles as defined in chapter 168 or watercraft as defined in chapter
125.586B or their component parts, except that the use of priority chemicals in detachable
125.6car seats is not exempt;
125.7(5) priority chemicals generated solely as combustion by-products or that are present
125.8in combustible fuels; in combustible petroleum fuels or in biofuel, as defined in section
125.9239.051, subdivision 5a;
125.10(6) retailers, except if a retailer is also the producer, manufacturer, importer, or
125.11domestic distributor of a children's product containing a priority chemical or the retailer's
125.12brand name is affixed to a children's product containing a priority chemical;
125.13(7) over-the-counter drugs, pharmaceutical products, dietary supplements, or
125.14biologics;
125.15(8) a medical device as defined in the federal Food, Drug, and Cosmetic Act, United
125.16States Code, title 21, section 321(h);
125.17(9) food and food or beverage packaging, except a container containing baby food
125.18or infant formula;
125.19(10) consumer electronics products and electronic components, including but not
125.20limited to personal computers; audio and video equipment; calculators; digital displays;
125.21wireless phones; cameras; game consoles; printers; and handheld electronic and electrical
125.22devices used to access interactive software or their associated peripherals; or products that
125.23comply with the provisions of directive 2002/95/EC of the European Union, adopted by
125.24the European Parliament and Council of the European Union now or hereafter in effect; or
125.25(10) interactive software, such as computer games, and their storage media, such as
125.26compact discs;
125.27    (11) outdoor sport equipment, including snowmobiles as defined in section 84.81,
125.28subdivision 3; all-terrain vehicles as defined in section 84.92, subdivision 8; personal
125.29watercraft as defined in section 86B.005, subdivision 14a; watercraft as defined in section
125.3086B.005, subdivision 18 ; and off-highway motorcycles, as defined in section 84.787,
125.31subdivision 7, and all attachments and repair parts for all of this equipment.;
125.32(12) batteries; or
125.33    (13) a children's product, manufactured or distributed by an individual manufacturer
125.34or distributor, if fewer than 3,000 units of the children's product are manufactured or
125.35distributed annually in the United States by that manufacturer.

126.1    Sec. 32. Minnesota Statutes 2012, section 116.9406, is amended to read:
126.2116.9406 DONATIONS TO THE STATE.
126.3The commissioner may accept donations, grants, and other funds to carry out the
126.4purposes of sections 116.9401 to 116.9407 116.9425. All donations, grants, and other
126.5funds must be accepted without preconditions regarding the outcomes of the regulatory
126.6oversight processes set forth in sections 116.9401 to 116.9407 116.9425.

126.7    Sec. 33. [116.9408] CHILDREN'S PRODUCTS; INITIAL NOTIFICATION
126.8ON PRIORITY CHEMICALS.
126.9(a) A manufacturer or distributor of a children's product offered for sale in this state
126.10that contains a priority chemical must, unless the children's product is not subject to
126.11regulation under section 116.9405, provide the information required under this section
126.12to the agency:
126.13(1) within one year of the effective date of this act, if both the designation of the
126.14priority chemical under section 116.9403 and the offering for sale in this state of the
126.15children's product containing the priority chemical occurred prior to the effective date
126.16of this act;
126.17(2) within one year of the priority chemical being designated under section 116.9403,
126.18if the children's product is initially offered for sale in this state before the designation and
126.19the designation is made after the effective date of this act; or
126.20(3) within one year of the initial offering of the children's product for sale in this
126.21state, if the initial offering occurs after the priority chemical is designated under section
126.22116.9403 and the designation is made after the effective date of this act.
126.23(b) An initial notification is required for each children's product that is known
126.24or believed likely to include a priority chemical in any amount and must include the
126.25following information submitted to the agency on a form developed by the commissioner:
126.26(1) the name of the priority chemical and its Chemical Abstracts Service Registry
126.27number;
126.28(2) in which of the following tiers the children's product containing a priority
126.29chemical belongs:
126.30    (i) Tier 1: a mouthable children's product intended to be used by children three years
126.31of age or younger or a children's product intended to be placed in a child's mouth or
126.32directly applied to a child's skin;
126.33    (ii) Tier 2: a children's product intended to be in direct contact with a child's skin for
126.34one hour or longer, including but not limited to clothing, jewelry, bedding, or a car seat;
127.1(iii) Tier 3: a children's product intended to be in direct contact with a child's skin
127.2for less than one hour; or
127.3(iv) Tier 4: a children's product in which a priority chemical is contained only in an
127.4internal component that, under normal use, is unlikely to come into direct contact with
127.5a child's skin or mouth;
127.6(3) a description of the product component in which the priority chemical is present;
127.7and
127.8(4) the name and address of the reporting manufacturer or distributor and the name,
127.9address, and telephone number of the contact person for the reporting manufacturer or
127.10distributor.

127.11    Sec. 34. [116.9409] CHILDREN'S PRODUCTS; FULL PRODUCT REPORTING
127.12INFORMATION ON PRIORITY CHEMICALS; TIMING.
127.13A manufacturer or distributor of a children's product offered for sale in this state
127.14that contains a priority chemical must, unless the children's product is not subject to
127.15regulation under section 116.9405, provide the full product information required under
127.16section 116.9410 to the agency. The maximum length of time between the filing of the
127.17information required under section 116.9408, paragraph (a), and the filing of full product
127.18information required under section 116.9410 varies according to the manufacturer's or
127.19distributor's annual aggregate gross sales, both within and outside the state, as reported in
127.20the manufacturer's or distributor's most recently filed federal tax return, as follows:
127.21(1) for a manufacturer or distributor with gross sales exceeding $1,000,000,000, one
127.22year or, for a priority chemical designated under section 116.9403 before January 1, 2014,
127.23by two years after the effective date of this section;
127.24(2) for a manufacturer or distributor with gross sales exceeding $250,000,000 but
127.25less than or equal to $1,000,000,000, 1-1/2 years or, for a priority chemical designated
127.26under section 116.9403 before January 1, 2014, by 2-1/2 years after the effective date
127.27of this section;
127.28(3) for a manufacturer or distributor with gross sales exceeding $100,000,000 but less
127.29than or equal to $250,000,000, two years or, for a priority chemical designated under section
127.30116.9403 before January 1, 2014, by three years after the effective date of this section;
127.31(4) for a manufacturer or distributor with gross sales exceeding $5,000,000 but
127.32less than or equal to $100,000,000, three years or, for a priority chemical designated
127.33under section 116.9403 before January 1, 2014, by four years after the effective date
127.34of this section;
128.1(5) for a manufacturer or distributor with gross sales exceeding $100,000 but less
128.2than or equal to $5,000,000, four years or, for a priority chemical designated under section
128.3116.9403 before January 1, 2014, by five years after the effective date of this section; and
128.4(6) for a manufacturer or distributor with gross sales less than or equal to $100,000,
128.5five years or, for a priority chemical designated under section 116.9403 before January 1,
128.62014, by six years after the effective date of this section.

128.7    Sec. 35. [116.9410] CHILDREN'S PRODUCTS; FULL PRODUCT REPORTING
128.8INFORMATION ON PRIORITY CHEMICALS.
128.9(a) A manufacturer or distributor of a children's product offered for sale in the state
128.10that contains one or more priority chemicals must, except as provided in paragraph (e) or
128.11if the children's product is not subject to regulation under section 116.9405, provide the
128.12following full product information to the agency on a form developed by the commissioner:
128.13(1) the name of each priority chemical and its Chemical Abstracts Service Registry
128.14number;
128.15(2) in which of the following tiers the children's product containing a priority
128.16chemical belongs:
128.17(i) Tier 1: a mouthable children's product intended to be used by children three years
128.18of age or younger or a children's product intended to be placed in a child's mouth or
128.19directly applied to a child's skin;
128.20(ii) Tier 2: a children's product intended to be in direct contact with a child's skin for
128.21one hour or longer, including but not limited to clothing, jewelry, bedding, or a car seat;
128.22(iii) Tier 3: a children's product intended to be in direct contact with a child's skin
128.23for less than one hour; or
128.24(iv) Tier 4: a children's product in which a priority chemical is contained only in an
128.25internal component that, under normal use, is unlikely to come into direct contact with
128.26a child's skin or mouth;
128.27(3) the product components, materials, or coatings that contain one or more priority
128.28chemicals;
128.29(4) the concentration and total amount of each priority chemical contained in a
128.30children's product, a description of how the concentration was determined, and an
128.31evaluation of the accuracy of the determination. Concentrations at or above the practical
128.32quantification limit must be reported, but may be reported in the following ranges:
128.33(i) greater than or equal to the practical quantification limit but less than 100 ppm;
128.34(ii) greater than or equal to 100 ppm but less than 500 ppm;
128.35(iii) greater than or equal to 500 ppm but less than 1,000 ppm;
129.1(iv) greater than or equal to 1,000 ppm but less than 5,000 ppm;
129.2(v) greater than or equal to 5,000 ppm but less than 10,000 ppm; and
129.3(vi) greater than or equal to 10,000 ppm.
129.4For the purposes of this section, "ppm" means parts per million;
129.5    (5) the product category or categories for the children's product;
129.6(6) a description of the function of the priority chemical in the product, including
129.7whether it is present as a contaminant;
129.8    (7) the name and address of the manufacturer, distributor, or trade association filing
129.9the report and the name, address, and telephone number of the contact person for the
129.10reporting manufacturer, distributor, or trade association;
129.11(8) evidence describing the extent to which a child is likely to be exposed to the
129.12priority chemical through normal use of the children's product;
129.13(9) the number of units of the children's product sold or distributed in Minnesota
129.14or nationally;
129.15(10) any other information the manufacturer or distributor deems relevant; and
129.16(11) any other information requested by the commissioner.
129.17(b) Reporting shall include all intentionally added chemicals at or above the
129.18applicable practical quantification limit, and contaminants present in a product component
129.19at a concentration above 100 ppm.
129.20(c) Reporting parties are not required to include any specific formula information
129.21or the specific name and address of the facility that is responsible for introduction of a
129.22priority chemical into a children's product or product component.
129.23(d) If the information required in paragraph (a) is not submitted in a timely fashion
129.24or is incomplete or otherwise unacceptable as determined by the agency, the agency may
129.25contract with an independent third party of the agency's choice to provide the information
129.26and may assess a fee on the manufacturer or distributor to pay the costs as specified
129.27under section 116.9419.
129.28(e) The agency shall determine on a case-by-case basis if reporting the information
129.29in paragraph (a), clauses (3) to (9), is required by a manufacturer or distributor whose
129.30children's product belongs in Tier 4 under paragraph (a), clause (2).
129.31(f) If a manufacturer claims that any of the information provided to the agency under
129.32this section is trade secret information under section 13.37, subdivision 1, the agency shall
129.33make a determination regarding the claim. Information determined to be public data shall
129.34be posted on the agency's Web site. This paragraph does not apply to the presence and
129.35concentration and total amount of a priority chemical in a specific children's product,
129.36which is governed under section 116.9403, subdivisions 2 and 3.
130.1(g) A trade association may file the information required under this section on behalf
130.2of a manufacturer or distributor, provided that the trade association includes in the filing a
130.3list of the manufacturers or distributors on whose behalf the trade association is reporting
130.4and all the information otherwise required of an individual manufacturer or distributor.

130.5    Sec. 36. [116.9411] CHILDREN'S PRODUCTS; FULL PRODUCT REPORTING
130.6INFORMATION ON PRIORITY CHEMICALS; SECOND AND SUBSEQUENT
130.7REPORTS.
130.8(a) Following the initial submission of the information required under section
130.9116.9410, a manufacturer or distributor of a children's product offered for sale in the state
130.10that continues to contain a priority chemical must submit the information required under
130.11section 116.9410 to the agency every two years.
130.12(b) If a reporting party determines that there has been no change in the information
130.13required to be filed under section 116.9410 since the most recent filing, the reporting party
130.14may submit a written statement indicating that the previously filed data is still valid, in
130.15lieu of a new duplicate complete report, and must submit the required fees.
130.16(c) If a manufacturer or distributor is required to file more than one report under
130.17section 116.9410 on the same priority chemical in the same children's product code, each
130.18subsequent report must include the following information in addition to the information
130.19required under section 116.9410:
130.20(1) the product code of the children's product; and
130.21(2) a description of the manufacturer's attempts to remove the priority chemical
130.22from the children's product and any evaluation made of the use of safer alternatives to
130.23substitute for the priority chemical contained in the children's product, including the
130.24Chemical Abstracts Service Registry numbers of safer alternatives considered. If the
130.25manufacturer claims that any information provided to the agency under this clause is
130.26trade secret information under section 13.37, subdivision 1, the agency shall make a
130.27determination regarding the claim.

130.28    Sec. 37. [116.9412] CHILDREN'S PRODUCTS; REMOVING A PRIORITY
130.29CHEMICAL; REPORTING REQUIREMENT.
130.30A manufacturer or distributor who removes a priority chemical from a children's
130.31product for which an initial notification has been filed under section 116.9408 or for which
130.32full product information has been filed under section 116.9410 must notify the agency
130.33of the removal at the earliest date possible. If the priority chemical removed is replaced
130.34by a safer alternative, the manufacturer or distributor must provide, on a form developed
131.1by the commissioner, the information in section 116.9410, paragraph (a), clauses (1) to
131.2(7), and the name of the safer alternative and its Chemical Abstracts Service Registry
131.3number, or, if not replaced by a chemical alternative, a description of the techniques or
131.4design changes implemented. The safer alternative or nonchemical techniques or design
131.5changes are trade secrets.

131.6    Sec. 38. [116.9419] FEES.
131.7(a) The agency shall, if applicable, assess and collect the following fees from
131.8manufacturers and distributors of children's products offered for sale in this state:
131.9(1) a fee of $1,000 for each full product report required under section 116.9410. If
131.10a children's product contains more than one priority chemical, each priority chemical is
131.11subject to this fee;
131.12(2) a fee equal to the costs billed by the independent contractor plus the agency's
131.13actual incurred costs to bid and administer the contract for each contract issued under
131.14section 116.9410, paragraph (d); and
131.15(3) a fee equal to twice the fee in clause (1) for the second full product report
131.16required under section 116.9410 on the same priority chemical in the same children's
131.17product. The fee for each subsequent full product report required under that section is
131.18correspondingly increased by an amount equal to the fee in clause (1).
131.19(b) No fee is required for filing an initial notification under section 116.9408.
131.20(c) The commissioner shall deposit all fees collected under this section in the
131.21environmental fund. All fees collected under this section are exempt from section
131.2216A.1285.

131.23    Sec. 39. [116.9420] STATE AGENCY DUTIES.
131.24(a) The agency shall publish all data that is required to be filed under sections
131.25116.9410 and 116.9411 and that is not trade secret data on the agency's Web site and
131.26through other means determined by the commissioner.
131.27(b) If a priority chemical continues to be used in a specific children's product after
131.28its manufacturer files a report required under section 116.9411, the commissioner may
131.29recommend options to further reduce or eliminate the use of the priority chemical in the
131.30report required under section 116.9425.
131.31(c) The commissioner, in consultation with the commissioners of commerce and
131.32health, may use fee revenue in excess of program implementation costs to offer grants
131.33awarded competitively to manufacturers or other researchers to develop safer alternatives
132.1to priority chemicals in children's products, to establish alternatives as safer alternatives,
132.2or to accelerate the commercialization of safer alternatives.
132.3(d) The commissioners of health and commerce shall develop and implement
132.4an education effort regarding priority chemicals in children's products. Education and
132.5outreach activities include, but are not limited to, consumer product safety advice;
132.6notification of recalls; identification of target audiences for product alerts and methods
132.7of notification; outreach and feedback at county and state fairs; publicity of reporting
132.8requirements of priority chemicals in children's products; and education of retailers about
132.9reporting requirements.

132.10    Sec. 40. [116.9423] ENFORCEMENT.
132.11The agency shall enforce sections 116.9401 to 116.9424 and rules adopted
132.12thereunder in the manner provided by section 115.071, subdivisions 1, 3, 4, 5, and 6.
132.13Section 115.071, subdivision 2, does not apply to violations of sections 116.9401 to
132.14116.9424 and rules adopted thereunder.

132.15    Sec. 41. [116.9424] RULES.
132.16The commissioner or the commissioner of commerce may adopt rules as necessary
132.17to implement, administer, and enforce sections 116.9401 to 116.9425.

132.18    Sec. 42. [116.9425] REPORT.
132.19By November 15, 2015, and every three years thereafter, the commissioners of the
132.20Pollution Control Agency, health, and commerce shall report to the legislative committees
132.21with jurisdiction over environment and natural resources, commerce, and public health
132.22on the implementation of sections 116.9401 to 116.9424.

132.23    Sec. 43. [168.1295] STATE PARKS AND TRAILS PLATES.
132.24    Subdivision 1. General requirements and procedures. (a) The commissioner shall
132.25issue state parks and trails plates to an applicant who:
132.26(1) is a registered owner of a passenger automobile, recreational vehicle, one ton
132.27pickup truck, or motorcycle;
132.28(2) pays a fee of $10 to cover the costs of handling and manufacturing the plates;
132.29(3) pays the registration tax required under section 168.013;
132.30(4) pays the fees required under this chapter;
132.31(5) contributes a minimum of $50 annually to the state parks and trails donation
132.32account established in section 85.056; and
133.1(6) complies with this chapter and rules governing registration of motor vehicles
133.2and licensing of drivers.
133.3(b) The state parks and trails plate application must indicate that the contribution
133.4specified under paragraph (a), clause (5), is a minimum contribution to receive the plate
133.5and that the applicant may make an additional contribution to the account.
133.6(c) State parks and trails plates may be personalized according to section 168.12,
133.7subdivision 2a.
133.8    Subd. 2. Design. After consultation with interested groups, the commissioners of
133.9natural resources and public safety shall jointly select a suitable symbol for use by the
133.10commissioner of public safety to design the state parks and trails plates.
133.11    Subd. 3. No refund. Contributions under this section must not be refunded.
133.12    Subd. 4. Plate transfers. Notwithstanding section 168.12, subdivision 1, on
133.13payment of a transfer fee of $5, plates issued under this section may be transferred to
133.14another passenger automobile registered to the person to whom the plates were issued.
133.15    Subd. 5. Contribution and fees credited. Contributions under subdivision 1,
133.16paragraph (a), clause (5), must be paid to the commissioner and credited to the state
133.17parks and trails donation account established in section 85.056. The other fees collected
133.18under this section must be deposited in the vehicle services operating account of the
133.19special revenue fund under section 299A.705.
133.20    Subd. 6. Record. The commissioner shall maintain a record of the number of
133.21plates issued under this section.
133.22    Subd. 7. Exemption. Special plates issued under this section are not subject to
133.23section 168.1293, subdivision 2.
133.24EFFECTIVE DATE.This section is effective the day following final enactment and
133.25applies to applications submitted on or after January 1, 2016, or the date the new driver and
133.26vehicle services information technology system is implemented, whichever comes later.

133.27    Sec. 44. [347.57] DEFINITIONS.
133.28    Subdivision 1. Terms. The definitions in this section apply to sections 347.57
133.29to 347.64.
133.30    Subd. 2. Animal. "Animal" means a dog or a cat.
133.31    Subd. 3. Board. "Board" means the Board of Animal Health.
133.32    Subd. 4. Cat. "Cat" means a mammal that is wholly or in part of the species Felis
133.33domesticus. An adult cat is a cat 28 weeks of age or older. A kitten is a cat under 28
133.34weeks of age.
134.1    Subd. 5. Commercial breeder. "Commercial breeder" means a person who
134.2possesses or has an ownership interest in animals and is engaged in the business of
134.3breeding animals for sale or for exchange in return for consideration, and who possesses
134.4ten or more adult intact animals and whose animals produce more than five total litters of
134.5puppies or kittens per year.
134.6    Subd. 6. Confinement area. "Confinement area" means a structure used or
134.7designed for use to restrict an animal to a limited amount of space, such as a room, pen,
134.8cage, kennel, compartment, crate, or hutch.
134.9    Subd. 7. Dog. "Dog" means a mammal that is wholly or in part of the species Canis
134.10familiaris. An adult dog is a dog 28 weeks of age or older. A puppy is a dog under 28
134.11weeks of age.
134.12    Subd. 8. Facility. "Facility" means the place used by a commercial breeder for
134.13breeding animals, and includes all buildings, property, confinement areas, and vehicles.
134.14    Subd. 9. Local animal control authority. "Local animal control authority" means
134.15an agency of the state, county, municipality, or other political subdivision of the state that
134.16is responsible for animal control operations in its jurisdiction.
134.17    Subd. 10. Person. "Person" means a natural person, firm, partnership, corporation,
134.18or association, however organized.
134.19    Subd. 11. Possess. "Possess" means to have custody of or have control over.
134.20    Subd. 12. Veterinarian. "Veterinarian" means a veterinarian in good standing and
134.21licensed in the state of Minnesota.

134.22    Sec. 45. [347.58] LICENSING AND INSPECTIONS.
134.23    Subdivision 1. Licensing. (a) The board may grant an operating license to a
134.24commercial breeder and must enforce sections 347.58 to 347.64.
134.25    (b) Beginning July 1, 2015, a commercial breeder must obtain an annual license
134.26for each facility it owns or operates. More than one building on the same premises is
134.27considered one facility. The initial prelicense inspection fee and the annual license fee is
134.28$10 per adult intact animal, but each fee must not exceed $250.
134.29    (c) The board must perform an announced initial prelicense inspection within 60
134.30days from the date of receiving a license application. A commercial breeder is not in
134.31violation of this section if the commercial breeder has filed a completed license application
134.32with the board and the board has not performed the initial prelicense inspection. The
134.33board must inspect a commercial breeder's facility before an initial license is issued. The
134.34initial prelicense inspection fee must be included with the license application. Upon
135.1completion of the inspection, the inspector must provide the commercial breeder an
135.2inspection certificate signed by the inspector in a format approved by the board.
135.3    (d) The license application must indicate if a commercial breeder operates under
135.4more than one name from a single location or has an ownership interest in any other
135.5facility. License holders must keep separate records for each business name.
135.6    (e) The application must include a statement that includes the following information:
135.7    (1) whether any license held by an applicant under this section or under any other
135.8federal, state, county, or local law, ordinance, or other regulation relating to breeding cats
135.9or dogs was ever suspended, revoked, or denied; and
135.10    (2) whether the applicant was ever convicted of animal cruelty.
135.11    (f) An application from a partnership, corporation, or limited liability company must
135.12include the name and address of all partners, directors, officers, or members and must
135.13include a notation of any partners, directors, officers, members, or others authorized to
135.14represent the partnership, corporation, or limited liability company.
135.15    (g) A nonresident applicant must consent to adjudication of any violation under the
135.16laws of the state of Minnesota and in Minnesota courts.
135.17    (h) A license issued under this section is not transferable.
135.18    (i) A license holder must apply for license renewal annually by submitting a renewal
135.19application on a form approved by the board. The license renewal application must be
135.20postmarked or submitted electronically in a method approved by the board by July 1
135.21of each year. The board may assess a late renewal penalty of up to 50 percent of the
135.22license fee. If a license is not renewed by August 1, the board may require the commercial
135.23breeder to reapply for an initial license.
135.24    (j) A commercial breeder must submit to the board an annual report by July 1 on a
135.25form prepared by the board. The form must include the current number of cats and dogs at
135.26the facility on the date of the report, the number of animals during the preceding year that
135.27were sold, traded, bartered, leased, brokered, given away, euthanized, or deceased from
135.28other causes, and any other information required by the board.
135.29    (k) If a commercial breeder is required to be licensed by the United States
135.30Department of Agriculture, United States Department of Agriculture inspection reports
135.31and records relating to animal care plans and veterinary care must be made available
135.32during an inspection, upon request.
135.33    (l) A commercial breeder must prominently display the commercial breeder's license
135.34at each facility.
135.35(m) A commercial breeder's state license number or a symbol approved by the board
135.36must be included in all of the commercial breeder's advertisements or promotions that
136.1pertain to animals being sold or traded including, but not limited to, all newspapers,
136.2Internet, radio, or flyers.
136.3    (n) A commercial breeder must notify the board by certified mail or electronically
136.4in a method approved by the board within ten days of any change in address, name,
136.5management, or substantial control and ownership of the business or operation.
136.6    (o) The board must refuse to issue an initial license when a commercial breeder:
136.7(1) is in violation of section 343.21; 343.24; 343.27; 343.28; 343.31; 343.37; 346.37;
136.8346.38; 346.39; 346.44; or 346.155;
136.9(2) has failed to meet any of the requirements of this section and section 347.59;
136.10(3) is in violation of a local ordinance regarding breeders;
136.11    (4) has been convicted, other than a petty misdemeanor conviction, of cruelty to
136.12animals under Minnesota law or a substantially similar animal cruelty law of another
136.13jurisdiction;
136.14    (5) has had a substantially similar license denied, revoked, or suspended by another
136.15federal or state authority within the last five years; or
136.16    (6) has falsified any material information requested by the board.
136.17    (p) A person who has been an officer, agent, direct family member, or employee of a
136.18commercial breeder whose license was revoked or suspended and who was responsible for
136.19or participated in the violation that was a basis for the revocation or suspension may not
136.20be licensed while the revocation or suspension is in effect.
136.21    Subd. 2. Inspections. (a) The board must inspect each licensed facility at least
136.22annually. The inspection must be with the commercial breeder or an agent of the
136.23commercial breeder present. The inspector must submit an inspection report to the board
136.24within ten days of each inspection on a form prepared by the board. The inspection report
136.25form must list separately each law, rule, regulation, and ordinance the facility is not in
136.26compliance with and what correction is required for compliance. The inspection report
136.27form must document the animal inventory on the date of the inspection.
136.28(b) If, after the prelicense inspection, the commercial breeder has two consecutive
136.29years of inspections with no violations, the board must inspect the commercial breeder at
136.30least every two years. If the commercial breeder has any violations during an inspection or
136.31if the board has cause, the board must inspect the commercial breeder at least annually.
136.32(c) If a license to operate is suspended, revoked, or denied, the board must be granted
136.33access to the facility during normal business hours to verify that it is not operating.
136.34    Subd. 3. Record requirements. (a) The commercial breeder must keep records on
136.35each animal at the facility that includes:
137.1(1) the name, address, and United States Department of Agriculture license number,
137.2if applicable, from whom an animal was received; the date the commercial breeder
137.3received the animal; the date of the animal's birth; the breed, sex, color, and identifying
137.4marks of the animal; any identifying tag, tattoo, microchip, or collar number; worming
137.5treatments, vaccinations, and name of the person who administered the vaccination;
137.6medication received by the animal while in the possession of the commercial breeder; and
137.7any disease conditions diagnosed by a veterinarian; and
137.8(2) the name and address of the person or entity to whom an animal was transferred.
137.9(b) The commercial breeder must maintain a copy of the records required to be
137.10kept under this subdivision for two years.
137.11    Subd. 4. Veterinary protocol. (a) A commercial breeder must establish and
137.12maintain a written protocol for disease control and prevention, euthanasia, and veterinary
137.13care of animals at each facility. The initial protocol must be developed under the direction
137.14and supervision of the board. A commercial breeder must maintain a written protocol that
137.15is updated at least every 12 months and that is signed and dated by the board or by a
137.16veterinarian along with the commercial breeder. The written protocol must be available to
137.17the board upon request or at the time of inspection.
137.18(b) An animal sold or otherwise distributed by a commercial breeder must be
137.19accompanied by a veterinary health certificate completed by a veterinarian. The certificate
137.20must be completed within 30 days prior to the sale or distribution and must indicate that
137.21the animal is current with vaccinations and has no signs of infectious or contagious
137.22diseases. The certificate accompanying an adult dog that was not spayed or neutered must
137.23indicate that the dog has no signs of infectious or contagious diseases and was tested for
137.24canine brucellosis with a test approved by the board and found to be negative.
137.25    Subd. 5. Posting of information. The board must maintain and post in a timely
137.26manner on its Web site a list of commercial breeders licensed and in good standing
137.27under this section.

137.28    Sec. 46. [347.59] STANDARDS OF CARE.
137.29    (a) A commercial breeder must comply with chapters 343 and 346.
137.30    (b) A commercial breeder must ensure that animals that are part of the commercial
137.31breeder's breeding business operations are cared for as follows:
137.32    (1) cats must not be housed in outdoor confinement areas;
137.33    (2) animals exercised in groups must be compatible and show no signs of contagious
137.34or infectious disease;
138.1    (3) females in estrus must not be housed in the same confinement area with
138.2unneutered males, except for breeding purposes;
138.3    (4) animals must be provided daily enrichment and must be provided positive physical
138.4contact with human beings and compatible animals at least twice daily unless a veterinarian
138.5determines such activities would adversely affect the health or well-being of the animal;
138.6    (5) animals must not be sold, traded, or given away before the age of eight weeks
138.7unless a veterinarian determines it would be in the best interests of the health or well-being
138.8of the animal;
138.9    (6) the commercial breeder must provide identification and tracking for each animal,
138.10which is not transferable to another animal; and
138.11    (7) the commercial breeder must provide adequate staff to maintain the facility and
138.12observe each animal daily to monitor each animal's health and well-being, and to properly
138.13care for the animals.
138.14    (c) A commercial breeder must not knowingly hire staff or independent contractors
138.15who have been convicted of cruelty to animals under the law of any jurisdiction.
138.16(d) A commercial breeder must comply with any additional standards the board
138.17considers necessary to protect the public health and welfare of animals covered under
138.18sections 347.57 to 347.61. The standards must be established by rule.
138.19(e) A United States Department of Agriculture (USDA) licensed breeder or dealer
138.20who is in compliance with the minimum USDA regulations governing the license holder
138.21as they relate to animal confinement areas as of the effective date of this section does not
138.22have to comply with the minimum confinement area measurements under section 346.39,
138.23subdivision 4, for existing confinement areas in each facility the breeder or dealer owns. If
138.24a USDA-licensed breeder or dealer builds a new confinement area after the effective date
138.25of this section, those minimum standards must meet or exceed the minimum specifications
138.26as they relate to confinement area size under section 346.39, subdivision 4.

138.27    Sec. 47. [347.60] INVESTIGATIONS.
138.28(a) The board must initiate an investigation upon receiving a formal complaint
138.29alleging violations of section 347.58 or 347.59.
138.30(b) When a local animal control authority, a peace officer, or a humane agent
138.31appointed under section 343.01 is made aware of an alleged violation under this chapter
138.32or chapter 343 or 346, committed by a commercial breeder, the local animal control
138.33authority, peace officer, or humane agent appointed under section 343.01 must report the
138.34alleged violation in a timely manner to the board.

139.1    Sec. 48. [347.61] CIVIL ENFORCEMENT.
139.2    Subdivision 1. Correction orders. (a) The board may issue a correction order
139.3requiring a commercial breeder to correct a violation of state statutes, rules, and
139.4regulations governing breeding facilities. The correction order must state the deficiencies
139.5that constitute the violation; the specific statute, rule, or regulation violated; and when
139.6the violation must be corrected.
139.7    (b) A commercial breeder may ask the board to reconsider any portion of the
139.8correction order that the commercial breeder believes is in error. The request for
139.9reconsideration must be made in writing by certified mail or electronically in a method
139.10approved by the board within seven days after receipt of the correction order. The
139.11request for reconsideration does not stay the correction order. The board must respond
139.12to the request for reconsideration within 15 days after receiving a request. The board's
139.13disposition of a request for reconsideration is final. The board may extend the time for
139.14complying with a correction order after receiving a request for reconsideration if necessary.
139.15    (c) The board must reinspect the facility within 15 days after the time for correcting
139.16the violation has passed to determine whether the violation has been corrected. If the
139.17violation has been corrected, the board must notify the commercial breeder in writing that
139.18the commercial breeder is in compliance with the correction order. The board may charge
139.19a reinspection fee to determine if a previous violation has been corrected.
139.20    Subd. 2. Administrative penalty orders. After the inspection required under
139.21subdivision 1, paragraph (c), the board may issue an order requiring violations to
139.22be corrected and administratively assessing monetary penalties for violations. The
139.23administrative penalty order must include a citation of the statute, rule, or regulation
139.24violated; a description of the violation; and the amount of the penalty for each violation. A
139.25single correction order may assess a maximum administrative penalty of $5,000.
139.26    Subd. 3. Injunctive relief. In addition to any other remedy provided by law, the
139.27board may bring an action for injunctive relief in the district court in Ramsey County or in
139.28the county in which a violation of the statutes, rules, or regulations governing the breeding
139.29of cats and dogs occurred to enjoin the violation.
139.30    Subd. 4. Cease and desist. The board must issue an order to cease a practice if its
139.31continuation would result in an immediate risk to animal welfare or public health. An
139.32order issued under this subdivision is effective for a maximum of 72 hours. The board or
139.33its designated agent must seek an injunction or take other administrative action authorized
139.34by law to restrain a practice beyond 72 hours. The issuance of a cease-and-desist order
139.35does not preclude other enforcement action by the board.
140.1    Subd. 5. Refusal to reissue license; license suspension or revocation. (a) The
140.2board may suspend, revoke, or refuse to renew a license as follows:
140.3    (1) for failure to comply with a correction order;
140.4    (2) for failure to pay an administrative penalty;
140.5    (3) for failure to meet the requirements of section 347.58 or 347.59; or
140.6    (4) for falsifying information requested by the board.
140.7A license suspension, revocation, or nonrenewal may be appealed through the Office of
140.8Administrative Hearings. A notice of intent to appeal must be filed in writing with the
140.9board within 20 days after receipt of the notice of suspension, revocation, or nonrenewal.
140.10    (b) The board must revoke a license if a commercial breeder has been convicted
140.11of cruelty to animals under Minnesota law or a substantially similar animal cruelty law
140.12of another jurisdiction, or for the denial, revocation, or suspension of a similar license
140.13by another federal or state authority. A license revocation under this subdivision may be
140.14appealed through the Office of Administrative Hearings. A notice of intent to appeal must
140.15be filed in writing with the board within 20 days after receipt of the notice of revocation.
140.16    (c) A commercial breeder whose license is revoked may not reapply for licensure for
140.17two years after the date of revocation. The license is permanently revoked if the basis for
140.18the revocation was a gross misdemeanor or felony conviction for animal cruelty.
140.19    (d) A commercial breeder whose license is suspended or revoked two times is
140.20permanently barred from licensure.
140.21    Subd. 6. Administrative hearing rights. (a) Except as provided in paragraph
140.22(b), if the board proposes to refuse to renew, suspend, or revoke a license, the board
140.23must first notify the commercial breeder in writing of the proposed action and provide an
140.24opportunity to request a hearing under the contested case provisions of chapter 14. If the
140.25commercial breeder does not request a hearing within 20 days after receipt of the notice of
140.26the proposed action, the board may proceed with the action without a hearing.
140.27    (b) The contested case provisions of chapter 14 do not apply when the board denies
140.28a license based on an applicant's failure to meet the minimum qualifications for licensure.
140.29    (c) A commercial breeder may appeal the amount of an administrative penalty
140.30order through the Office of Administrative Hearings pursuant to the procedures set forth
140.31in chapter 14. A commercial breeder wishing to file an appeal must notify the board in
140.32writing within 20 days after receipt of the administrative penalty order.
140.33    Subd. 7. Other jurisdictions. The board may accept as prima facie evidence of
140.34grounds for an enforcement action under this section any enforcement or disciplinary
140.35action from another jurisdiction, if the underlying violation would be grounds for a
140.36violation under the provisions of this section.
141.1    Subd. 8. Appeals. A final order by the board may be appealed to the Minnesota
141.2Court of Appeals.

141.3    Sec. 49. [347.615] BIOSECURITY; ENTRY INTO FACILITIES.
141.4No law enforcement officer, agent of the board, or other official may enter a
141.5commercial breeder facility unless the person follows either the biosecurity procedure
141.6issued by the board or a reasonable biosecurity procedure maintained and prominently
141.7posted by the commercial breeder at each entry to a facility, whichever is more stringent.
141.8This section does not apply in emergency or exigent circumstances.

141.9    Sec. 50. [347.62] PENALTIES.
141.10    (a) A violation of section 347.58 or 347.59 that results in cruelty or torture to an
141.11animal, as those terms are defined in section 343.20, subdivision 3, is subject to the
141.12penalties in section 343.21, subdivisions 9 and 10, relating to pet or companion animals.
141.13    (b) It is a misdemeanor to falsify information in a license application, annual report,
141.14or record.
141.15    (c) It is a misdemeanor for an unlicensed commercial breeder to advertise animals
141.16for sale.
141.17(d) It is a misdemeanor for a commercial breeder to operate without a license.

141.18    Sec. 51. [347.63] DOG AND CAT BREEDERS LICENSING ACCOUNT;
141.19APPROPRIATION.
141.20A dog and cat breeders licensing account is created in the special revenue fund.
141.21All fees and penalties collected by the board under sections 347.58 to 347.62 must be
141.22deposited in the state treasury and credited to the dog and cat breeders licensing account
141.23in the special revenue fund. Money in the account, including interest on the account, is
141.24annually appropriated to the board to administer those sections.

141.25    Sec. 52. [347.64] APPLICABILITY.
141.26Sections 347.57 to 347.63 do not apply to:
141.27(1) any species other than dogs and cats as they are defined in section 347.57; and
141.28(2) veterinary clinics or veterinary hospitals.

141.29    Sec. 53. Laws 2008, chapter 363, article 5, section 4, subdivision 7, as amended by
141.30Laws 2009, chapter 37, article 1, section 61, is amended to read:

141.31

Subd. 7.Fish and Wildlife Management

123,000

119,000

142.1	Appropriations by Fund
142.2	General	-0-	(427,000)
142.3	Game and Fish	123,000	546,000

142.4$329,000 in 2009 is a reduction for fish and
142.5wildlife management.
142.6$46,000 in 2009 is a reduction in the
142.7appropriation for the Minnesota Shooting
142.8Sports Education Center.
142.9$52,000 in 2009 is a reduction for licensing.
142.10$123,000 in 2008 and $246,000 in 2009 are
142.11from the game and fish fund to implement
142.12fish virus surveillance, prepare infrastructure
142.13to handle possible outbreaks, and implement
142.14control procedures for highest risk waters
142.15and fish production operations. This is a
142.16onetime appropriation.
142.17Notwithstanding Minnesota Statutes, section
142.18297A.94 , paragraph (e), $300,000 in 2009
142.19is from the second year appropriation in
142.20Laws 2007, chapter 57, article 1, section 4,
142.21subdivision 7, from the heritage enhancement
142.22account in the game and fish fund to study,
142.23predesign, and design a shooting sports
142.24facility in the seven-county metropolitan
142.25area for shooting sports facilities. Of this
142.26amount, $100,000 is for a grant to the Itasca
142.27County Gun Club for shooting sports facility
142.28improvements; and the remaining balance
142.29is for trap shooting facility grants under
142.30Minnesota Statutes, section 87A.10. This is
142.31available onetime only and is available until
142.32expended.
142.33$300,000 in 2009 is appropriated from the
142.34game and fish fund for only activities that
143.1improve, enhance, or protect fish and wildlife
143.2resources. This is a onetime appropriation.

143.3    Sec. 54. Laws 2012, chapter 249, section 11, is amended to read:
143.4    Sec. 11. COSTS OF SCHOOL TRUST LANDS DIRECTOR AND
143.5LEGISLATIVE PERMANENT SCHOOL FUND COMMISSION.
143.6(a) The costs of the school trust lands director, including the costs of hiring staff,
143.7and the Legislative Permanent School Fund Commission for fiscal years 2014 and, 2015,
143.8and 2016 shall be from the state forest development suspense account under Minnesota
143.9Statutes, section 16A.125, and from the minerals management account under Minnesota
143.10Statutes, section 93.2236, as appropriated by the legislature.
143.11(b) The school trust lands director and the Legislative Permanent School Fund
143.12Commission shall submit to the 2014 2015 legislature a proposal to fund the operational
143.13costs of the Legislative Permanent School Fund Commission and school trust lands
143.14director and staff with a cost certification method using revenues generated by the
143.15permanent school fund lands.
143.16EFFECTIVE DATE.This section is effective the day following final enactment.

143.17    Sec. 55. RECOGNITION; COMMERCIAL BREEDER EXCELLENCE.
143.18The Board of Animal Health, in consultation with representatives of the licensed
143.19commercial breeder industry, must develop a program to recognize persons who
143.20demonstrate commercial breeder excellence and exceed the standards and practices
143.21required of commercial breeders under this act.

143.22    Sec. 56. REGISTRATION; INITIAL PRELICENSE INSPECTIONS.
143.23    Subdivision 1. Commercial breeder registration. Beginning July 1, 2014, until
143.24June 30, 2015, a commercial breeder must register each facility it owns or operates by
143.25paying a registration fee not to exceed $250 per facility to the Board of Animal Health.
143.26    Subd. 2. Initial prelicense inspections. Beginning July 1, 2014, the board may
143.27begin the initial prelicense inspections under Minnesota Statutes, section 347.58.
143.28    Subd. 3. Deposits of fees. Fees collected under this section must be deposited in the
143.29dog and cat breeders licensing account in the special revenue fund.

143.30    Sec. 57. BEE VALUATION PROTOCOL REQUIRED.
143.31No later than January 1, 2015, the commissioner of agriculture must report to
143.32the house of representatives and senate committees with jurisdiction over agriculture
144.1finance the protocol that the commissioner developed, in consultation with experts, for
144.2determining the fair market value of bees, hives, colonies, apiaries, and queen apiaries for
144.3purposes of compensation under Minnesota Statutes, section 18B.055.

144.4    Sec. 58. INVASIVE TERRESTRIAL PLANTS AND PESTS CENTER.
144.5    Subdivision 1. Establishment. The Board of Regents of the University of Minnesota
144.6is requested to establish an Invasive Terrestrial Plants and Pests Center to prevent and
144.7minimize the threats posed by terrestrial invasive plants, other weeds, pathogens, and
144.8pests in order to protect the state's prairies, forests, wetlands, and agricultural resources.
144.9With the approval of the board, the College of Food, Agricultural and Natural Resource
144.10Science, in coordination with the College of Biological Sciences, shall administer the
144.11center utilizing the following departments:
144.12(1) Entomology;
144.13(2) Plant Pathology;
144.14(3) Forest Resources;
144.15(4) Horticultural Science;
144.16(5) Fisheries Wildlife and Conservation Biology;
144.17(6) Agronomy and Plant Genetics;
144.18(7) Plant Biology; and
144.19(8) Ecology, Evolution, and Behavior.
144.20The college may also utilize the following research and outreach centers in
144.21achieving the purposes of this section: Cloquet Forestry Center; North Central Research
144.22and Outreach Center; Northwest Research and Outreach Center; Southern Research and
144.23Outreach Center; Southwest Research and Outreach Center; West Central Research and
144.24Outreach Center; Rosemount Research and Outreach Center; Horticultural Research
144.25Center; and Sand Plain Research Center.
144.26    Subd. 2. Purpose. The purpose of the Invasive Terrestrial Plants and Pests Center is
144.27to research and develop effective measures to prevent and minimize the threats posed by
144.28terrestrial invasive plants, pathogens, and pests, including agricultural weeds and pests, in
144.29order to protect the state's native prairies, forests, wetlands, and agricultural resources, by:
144.30(1) creating a prioritized list of pest and plant species that threaten the state's prairies,
144.31forests, wetlands, and agricultural resources and making the list publicly accessible; and
144.32(2) conducting research focused on the species included on the prioritized list
144.33developed under this subdivision that includes:
144.34(i) development of new control methods, including biocontrols;
145.1(ii) development of integrated pest management tools that minimize nontarget
145.2impacts;
145.3(iii) research projects focused on establishment prevention, early detection, and
145.4rapid response;
145.5(iv) an analysis of any consequences related to the management of prioritized species
145.6to the state's water, pollinators, and native prairies and other native species; and
145.7(v) reports on the results that are made publicly accessible.
145.8    Subd. 3. Report. By January 15, each year as a condition of the appropriation
145.9provided under this act, the Board of Regents of the University of Minnesota shall submit
145.10a report to the chairs and ranking minority members of the house of representatives and
145.11senate committees and divisions with jurisdiction over the environment and natural
145.12resources and agriculture on: (1) the activities and outcomes of the center; and (2) any
145.13recommendations for additional funding for education, implementation, or other activities.

145.14    Sec. 59. REPEALER.
145.15Minnesota Statutes 2012, section 115A.551, subdivision 2, is repealed.


145.19    Section 1. Minnesota Statutes 2012, section 123A.05, subdivision 2, is amended to read:
145.20    Subd. 2. Reserve revenue. Each district that is a member of an area learning center
145.21or alternative learning program must reserve revenue in an amount equal to the sum of
145.22(1) at least 90 and no more than 100 percent of the district average general education
145.23revenue per adjusted pupil unit minus an amount equal to the product of the formula
145.24allowance according to section 126C.10, subdivision 2, times .0485 .0466, calculated
145.25without basic skills revenue and transportation sparsity revenue, times the number of
145.26pupil units attending an area learning center or alternative learning program under this
145.27section, plus (2) the amount of basic skills revenue generated by pupils attending the area
145.28learning center or alternative learning program. The amount of reserved revenue under
145.29this subdivision may only be spent on program costs associated with the area learning
145.30center or alternative learning program.
145.31EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
145.32and later.

146.1    Sec. 2. Minnesota Statutes 2013 Supplement, section 123B.75, subdivision 5, is
146.2amended to read:
146.3    Subd. 5. Levy recognition. For fiscal year 2011 2014 and later years, in June of
146.4each year, the school district must recognize as revenue, in the fund for which the levy
146.5was made, the lesser of:
146.6(1) the sum of May, June, and July school district tax settlement revenue received in
146.7that calendar year, plus general education aid according to section 126C.13, subdivision
146.84 , received in July and August of that calendar year; or
146.9(2) the sum of:
146.10(i) the greater of 48.6 percent of the referendum levy certified according to section
146.11126C.17 in the prior calendar year, or 31 percent of the referendum levy certified
146.12according to section 126C.17 in calendar year 2000; plus
146.13(ii) the entire amount of the levy certified in the prior calendar year according
146.14to section 124D.4531, 124D.86, subdivision 4, for school districts receiving revenue
146.15under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 124D.862, for Special
146.16School District No. 1, Minneapolis, Independent School District No. 625, St. Paul, and
146.17Independent School District No. 709, Duluth; 126C.41, subdivisions 1, 2, paragraph (a),
146.18and 3, paragraphs (b), (c), and (d); 126C.43, subdivision 2; and 126C.48, subdivision 6; plus
146.19(iii) 48.6 percent of the amount of the levy certified in the prior calendar year for the
146.20school district's general and community service funds, plus or minus auditor's adjustments,
146.21that remains after subtracting the referendum levy certified according to section 126C.17
146.22and the amount recognized according to item (ii).

146.23    Sec. 3. Minnesota Statutes 2012, section 124D.09, subdivision 9, is amended to read:
146.24    Subd. 9. Enrollment priority. A postsecondary institution shall give priority to its
146.25postsecondary students when enrolling 10th, 11th, and 12th grade pupils in its courses.
146.26A postsecondary institution may provide information about its programs to a secondary
146.27school or to a pupil or parent and it may advertise or otherwise recruit or solicit a
146.28secondary pupil to enroll in its programs on educational and programmatic grounds only.
146.29An institution must not enroll secondary pupils, for postsecondary enrollment options
146.30purposes, in remedial, developmental, or other courses that are not college level except
146.31when a student eligible to participate in the graduation incentives program under section
146.32124D.68 enrolls full time in a middle or early college program specifically designed to
146.33allow the student to earn dual high school and college credit. In this case, the student shall
146.34receive developmental college credit and not college credit for completing remedial or
147.1developmental courses. Once a pupil has been enrolled in a postsecondary course under
147.2this section, the pupil shall not be displaced by another student.
147.3EFFECTIVE DATE.This section is effective July 1, 2014.

147.4    Sec. 4. Minnesota Statutes 2012, section 124D.09, subdivision 13, is amended to read:
147.5    Subd. 13. Financial arrangements. For a pupil enrolled in a course under this
147.6section, the department must make payments according to this subdivision for courses that
147.7were taken for secondary credit.
147.8The department must not make payments to a school district or postsecondary
147.9institution for a course taken for postsecondary credit only. The department must not
147.10make payments to a postsecondary institution for a course from which a student officially
147.11withdraws during the first 14 days of the quarter or semester or who has been absent from
147.12the postsecondary institution for the first 15 consecutive school days of the quarter or
147.13semester and is not receiving instruction in the home or hospital.
147.14A postsecondary institution shall receive the following:
147.15(1) for an institution granting quarter credit, the reimbursement per credit hour shall
147.16be an amount equal to 88 percent of the product of the formula allowance minus $415
147.17 $425, multiplied by 1.3 1.2, and divided by 45; or
147.18(2) for an institution granting semester credit, the reimbursement per credit hour
147.19shall be an amount equal to 88 percent of the product of the general revenue formula
147.20allowance minus $415 $425, multiplied by 1.3 1.2, and divided by 30.
147.21The department must pay to each postsecondary institution 100 percent of the
147.22amount in clause (1) or (2) within 30 days of receiving initial enrollment information
147.23each quarter or semester. If changes in enrollment occur during a quarter or semester,
147.24the change shall be reported by the postsecondary institution at the time the enrollment
147.25information for the succeeding quarter or semester is submitted. At any time the
147.26department notifies a postsecondary institution that an overpayment has been made, the
147.27institution shall promptly remit the amount due.
147.28EFFECTIVE DATE.This section is effective for fiscal year 2015 and later.

147.29    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.11, subdivision 1, is
147.30amended to read:
147.31    Subdivision 1. General education revenue. General education revenue must be
147.32paid to a charter school as though it were a district. The general education revenue
147.33for each adjusted pupil unit is the state average general education revenue per pupil
148.1unit, plus the referendum equalization aid allowance in the pupil's district of residence,
148.2minus an amount equal to the product of the formula allowance according to section
148.3126C.10, subdivision 2 , times .0466, calculated without declining enrollment revenue,
148.4local optional revenue, basic skills revenue, extended time revenue, pension adjustment
148.5revenue, transition revenue, and transportation sparsity revenue, plus declining enrollment
148.6revenue, basic skills revenue, extended time revenue, pension adjustment revenue, and
148.7transition revenue as though the school were a school district. The general education
148.8revenue for each extended time pupil unit equals $4,794.
148.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
148.10and later.

148.11    Sec. 6. Minnesota Statutes 2012, section 124D.59, subdivision 2, is amended to read:
148.12    Subd. 2. English learner. (a) "English learner" means a pupil in kindergarten
148.13through grade 12 who meets the following requirements:
148.14(1) the pupil, as declared by a parent or guardian first learned a language other than
148.15English, comes from a home where the language usually spoken is other than English, or
148.16usually speaks a language other than English; and
148.17(2) the pupil is determined by a valid assessment measuring the pupil's English
148.18language proficiency and by developmentally appropriate measures, which might include
148.19observations, teacher judgment, parent recommendations, or developmentally appropriate
148.20assessment instruments, to lack the necessary English skills to participate fully in
148.21academic classes taught in English.
148.22(b) Notwithstanding paragraph (a), A pupil enrolled in a Minnesota public school
148.23in grades any grade 4 through 12 who was enrolled in a Minnesota public school on
148.24the dates during in the previous school year when a commissioner provided took a
148.25commissioner-provided assessment that measures measuring the pupil's emerging
148.26academic English was administered, shall not be counted as an English learner in
148.27calculating English learner pupil units under section 126C.05, subdivision 17, and shall not
148.28 generate state English learner aid under section 124D.65, subdivision 5, unless if the pupil
148.29scored below the state cutoff score or is otherwise counted as a nonproficient participant
148.30on an the assessment measuring the pupil's emerging academic English provided by the
148.31commissioner during the previous school year, or, in the judgment of the pupil's classroom
148.32teachers, consistent with section 124D.61, clause (1), the pupil is unable to demonstrate
148.33academic language proficiency in English, including oral academic language, sufficient to
148.34successfully and fully participate in the general core curriculum in the regular classroom.
149.1(c) Notwithstanding paragraphs (a) and (b), a pupil in kindergarten through grade
149.212 shall not be counted as an English learner in calculating English learner pupil units
149.3under section 126C.05, subdivision 17, and shall not generate state English learner aid
149.4under section 124D.65, subdivision 5, if:
149.5(1) the pupil is not enrolled during the current fiscal year in an educational program
149.6for English learners in accordance with under sections 124D.58 to 124D.64; or
149.7(2) the pupil has generated five six or more years of average daily membership in
149.8Minnesota public schools since July 1, 1996.
149.9EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
149.10and later.

149.11    Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.65, subdivision 5, is
149.12amended to read:
149.13    Subd. 5. School district EL revenue. (a) A district's English learner programs
149.14revenue equals the product of (1) $704 $726 times (2) the greater of 20 or the adjusted
149.15average daily membership of eligible English learners enrolled in the district during the
149.16current fiscal year.
149.17(b) A pupil ceases to generate state English learner aid in the school year following
149.18the school year in which the pupil attains the state cutoff score on a commissioner-provided
149.19assessment that measures the pupil's emerging academic English.
149.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
149.21and later.

149.22    Sec. 8. [124D.695] APPROVED RECOVERY PROGRAM FUNDING.
149.23    Subdivision 1. Approved recovery program. "Approved recovery program" means
149.24a course of instruction offered by a recovery school that provides academic services,
149.25assistance with recovery, and continuing care to students recovering from substance abuse
149.26or dependency. A recovery program may be offered in a transitional academic setting
149.27designed to meet graduation requirements. A recovery program must be approved by the
149.28commissioner of education. The commissioner may specify the manner and form of the
149.29application for the approval of a recovery school or recovery program.
149.30    Subd. 2. Eligibility. An approved recovery program is eligible for an annual
149.31recovery program grant of up to $125,000 to pay for a portion of the costs of recovery
149.32program support staff under this section. "Recovery program support staff" means licensed
150.1alcohol and chemical dependency counselors, licensed school counselors, licensed school
150.2psychologists, licensed school nurses, and licensed school social workers.
150.3EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
150.4and later.

150.5    Sec. 9. Minnesota Statutes 2013 Supplement, section 126C.05, subdivision 15, is
150.6amended to read:
150.7    Subd. 15. Learning year pupil units. (a) When a pupil is enrolled in a learning
150.8year program under section 124D.128, an area learning center or an alternative learning
150.9program approved by the commissioner under sections 123A.05 and 123A.06, or a
150.10contract alternative program under section 124D.68, subdivision 3, paragraph (d), or
150.11subdivision 4, for more than 1,020 hours in a school year for a secondary student, more
150.12than 935 hours in a school year for an elementary student, more than 850 hours in a school
150.13year for a kindergarten student without a disability in an all-day kindergarten program,
150.14or more than 425 hours in a school year for a half-day kindergarten student without a
150.15disability, that pupil may be counted as more than one pupil in average daily membership
150.16for purposes of section 126C.10, subdivision 2a. The amount in excess of one pupil must
150.17be determined by the ratio of the number of hours of instruction provided to that pupil in
150.18excess of: (i) the greater of 1,020 hours or the number of hours required for a full-time
150.19secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours
150.20or the number of hours required for a full-time elementary pupil in the district to 935 for
150.21an elementary pupil in grades 1 through 6; and (iii) the greater of 425 850 hours or the
150.22number of hours required for a full-time kindergarten student without a disability in the
150.23district to 425 850 for a kindergarten student without a disability; and (iv) the greater of
150.24425 hours or the number of hours required for a half-time kindergarten student without a
150.25disability in the district to 425 for a half-day kindergarten student without a disability.
150.26Hours that occur after the close of the instructional year in June shall be attributable to
150.27the following fiscal year. A student in kindergarten or grades 1 through 12 must not be
150.28counted as more than 1.2 pupils in average daily membership under this subdivision.
150.29(b)(i) To receive general education revenue for a pupil in an area learning center
150.30or alternative learning program that has an independent study component, a district
150.31must meet the requirements in this paragraph. The district must develop, for the pupil,
150.32a continual learning plan consistent with section 124D.128, subdivision 3. Each school
150.33district that has an area learning center or alternative learning program must reserve
150.34revenue in an amount equal to at least 90 and not more than 100 percent of the district
150.35average general education revenue per pupil unit, minus an amount equal to the product
151.1of the formula allowance according to section 126C.10, subdivision 2, times .0466,
151.2calculated without basic skills and transportation sparsity revenue, times the number of
151.3pupil units generated by students attending an area learning center or alternative learning
151.4program. The amount of reserved revenue available under this subdivision may only be
151.5spent for program costs associated with the area learning center or alternative learning
151.6program. Basic skills revenue generated according to section 126C.10, subdivision 4, by
151.7pupils attending the eligible program must be allocated to the program.
151.8(ii) General education revenue for a pupil in a state-approved alternative program
151.9without an independent study component must be prorated for a pupil participating for
151.10less than a full year, or its equivalent. The district must develop a continual learning plan
151.11for the pupil, consistent with section 124D.128, subdivision 3. Each school district that
151.12has an area learning center or alternative learning program must reserve revenue in an
151.13amount equal to at least 90 and not more than 100 percent of the district average general
151.14education revenue per pupil unit, minus an amount equal to the product of the formula
151.15allowance according to section 126C.10, subdivision 2, times .0466, calculated without
151.16basic skills and transportation sparsity revenue, times the number of pupil units generated
151.17by students attending an area learning center or alternative learning program. The amount
151.18of reserved revenue available under this subdivision may only be spent for program costs
151.19associated with the area learning center or alternative learning program. Basic skills
151.20revenue generated according to section 126C.10, subdivision 4, by pupils attending the
151.21eligible program must be allocated to the program.
151.22(iii) General education revenue for a pupil in a state-approved alternative program
151.23that has an independent study component must be paid for each hour of teacher contact
151.24time and each hour of independent study time completed toward a credit or graduation
151.25standards necessary for graduation. Average daily membership for a pupil shall equal the
151.26number of hours of teacher contact time and independent study time divided by 1,020.
151.27(iv) For a state-approved alternative program having an independent study
151.28component, the commissioner shall require a description of the courses in the program, the
151.29kinds of independent study involved, the expected learning outcomes of the courses, and
151.30the means of measuring student performance against the expected outcomes.

151.31    Sec. 10. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2, is
151.32amended to read:
151.33    Subd. 2. Basic revenue. For fiscal year 2014, the basic revenue for each district
151.34equals the formula allowance times the adjusted marginal cost pupil units for the school
151.35year. For fiscal year 2015 and later, the basic revenue for each district equals the formula
152.1allowance times the adjusted pupil units for the school year. The formula allowance for
152.2fiscal year 2013 is $5,224. The formula allowance for fiscal year 2014 is $5,302. The
152.3formula allowance for fiscal year 2015 and later is $5,806 $5,864.
152.4EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
152.5and later.

152.6    Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2a,
152.7is amended to read:
152.8    Subd. 2a. Extended time revenue. (a) A school district's extended time revenue for
152.9fiscal year 2014 is equal to the product of $4,601 and the sum of the adjusted marginal
152.10cost pupil units of the district for each pupil in average daily membership in excess of 1.0
152.11and less than 1.2 according to section 126C.05, subdivision 8. A school district's extended
152.12time revenue for fiscal year 2015 and later is equal to the product of $5,017 and the sum
152.13of the adjusted pupil units of the district for each pupil in average daily membership in
152.14excess of 1.0 and less than 1.2 according to section 126C.05, subdivision 8.
152.15(b) A school district's extended time revenue may be used for extended day
152.16programs, extended week programs, summer school, and other programming authorized
152.17under the learning year program.
152.18EFFECTIVE DATE.This section is effective the day following final enactment
152.19and applies to revenue for fiscal year 2014 and later.

152.20    Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 24,
152.21is amended to read:
152.22    Subd. 24. Equity revenue. (a) A school district qualifies for equity revenue if:
152.23    (1) the school district's adjusted pupil unit amount of basic revenue, transition
152.24revenue, and referendum revenue is less than the value of the school district at or
152.25immediately above the 95th percentile of school districts in its equity region for those
152.26revenue categories; and
152.27    (2) the school district's administrative offices are not located in a city of the first
152.28class on July 1, 1999.
152.29    (b) Equity revenue for a qualifying district that receives referendum revenue under
152.30section 126C.17, subdivision 4, equals the product of (1) the district's adjusted pupil
152.31units for that year; times (2) the sum of (i) $14, plus (ii) $80, times the school district's
152.32equity index computed under subdivision 27.
153.1    (c) Equity revenue for a qualifying district that does not receive referendum revenue
153.2under section 126C.17, subdivision 4, equals the product of the district's adjusted pupil
153.3units for that year times $14.
153.4    (d) A school district's equity revenue is increased by the greater of zero or an amount
153.5equal to the district's resident adjusted pupil units times the difference between ten percent
153.6of the statewide average amount of referendum revenue per resident adjusted pupil unit for
153.7that year and the district's referendum revenue per resident adjusted pupil unit. A school
153.8district's revenue under this paragraph must not exceed $100,000 for that year.
153.9    (e) A school district's equity revenue for a school district located in the metro equity
153.10region or a school district with its administrative offices located in any Minnesota county
153.11in the Minneapolis-St. Paul-Bloomington Metropolitan Statistical Area delineated in
153.122009 by the United States Census Bureau equals the amount computed in paragraphs (b),
153.13(c), and (d) multiplied by 1.25.
153.14    (f) A school district's additional equity revenue equals $50 times its adjusted pupil
153.15units.
153.16EFFECTIVE DATE.The changes in paragraph (d) are effective for revenue for
153.17fiscal year 2015 and later. The changes in paragraph (e) are effective for revenue for
153.18fiscal years 2017 and later.

153.19    Sec. 13. Minnesota Statutes 2012, section 126C.10, subdivision 25, is amended to read:
153.20    Subd. 25. Regional equity gap. The regional equity gap equals the difference
153.21between the value of the school district at or immediately above the fifth percentile of
153.22adjusted general revenue per adjusted marginal cost pupil unit and the value of the school
153.23district at or immediately above the 95th percentile of adjusted general revenue per
153.24adjusted marginal cost pupil unit.
153.25EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
153.26and later.

153.27    Sec. 14. Minnesota Statutes 2012, section 126C.10, subdivision 26, is amended to read:
153.28    Subd. 26. District equity gap. A district's equity gap equals the greater of zero
153.29or the difference between the district's adjusted general revenue and the value of the
153.30school district at or immediately above the regional 95th percentile of adjusted general
153.31revenue per adjusted marginal cost pupil unit.
153.32EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
153.33and later.

154.1    Sec. 15. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 31,
154.2is amended to read:
154.3    Subd. 31. Transition revenue. (a) A district's transition allowance equals the
154.4sum of the transition revenue the district would have received for fiscal year 2015 under
154.5Minnesota Statutes 2012, section 126C.10, subdivisions 31, 31a, and 31c, and the greater
154.6of zero or the difference between:
154.7    (1) the sum of:
154.8    (i) the general education revenue the district would have received for fiscal year
154.92015 according to Minnesota Statutes 2012, section 126C.10;
154.10(ii) the integration revenue the district received for fiscal year 2013 under Minnesota
154.11Statutes 2012, section 124D.86;
154.12(iii) the pension adjustment the district would have received for fiscal year 2015
154.13under Minnesota Statutes 2012, section 127A.50;
154.14(iv) the special education aid the district would have received for fiscal year 2015
154.15under Minnesota Statutes 2012, section 125A.76; and
154.16(v) the special education excess cost aid the district would have received for fiscal
154.17year 2015 under Minnesota Statutes 2012, section 125A.79; and
154.18(2) the sum of the district's:
154.19(i) general education revenue for fiscal year 2015 excluding transition revenue
154.20under this section;
154.21(ii) achievement and integration revenue for fiscal year 2015 under section
154.22124D.862 ; and
154.23(iii) special education aid for fiscal year 2015 under section 125A.76; and
154.24(iv) alternative teacher compensation revenue for fiscal year 2015 under section
154.25122A.415,
154.26divided by the number of adjusted pupil units for fiscal year 2015.
154.27    (b) A district's transition revenue for fiscal year 2015 and later equals the product of
154.28the district's transition allowance times the district's adjusted pupil units.
154.29EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
154.30and later.

154.31    Sec. 16. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 6, is
154.32amended to read:
154.33    Subd. 6. Referendum equalization levy. (a) For fiscal year 2003 and later,
154.34 A district's referendum equalization levy equals the sum of the first tier referendum
155.1equalization levy, the second tier referendum equalization levy, and the third tier
155.2referendum equalization levy.
155.3(b) A district's first tier referendum equalization levy equals the district's first tier
155.4referendum equalization revenue times the lesser of one or the ratio of the district's
155.5referendum market value per resident pupil unit to $880,000.
155.6(c) A district's second tier referendum equalization levy equals the district's second
155.7tier referendum equalization revenue times the lesser of one or the ratio of the district's
155.8referendum market value per resident pupil unit to $510,000.
155.9(d) A district's third tier referendum equalization levy equals the district's third
155.10tier referendum equalization revenue times the lesser of one or the ratio of the district's
155.11referendum market value per resident pupil unit to $290,000.

155.12    Sec. 17. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 7b,
155.13is amended to read:
155.14    Subd. 7b. Referendum aid guarantee. (a) Notwithstanding subdivision 7, the sum
155.15of a district's referendum equalization aid and location equity aid under section 126C.10,
155.16subdivision 2e, for fiscal year 2015 must not be less than the sum of the referendum
155.17equalization aid the district would have received for fiscal year 2015 under Minnesota
155.18Statutes 2012, section 126C.17, subdivision 7, and the adjustment the district would have
155.19received under Minnesota Statutes 2012, section 127A.47, subdivision 7, paragraphs
155.20(a), (b), and (c).
155.21(b) Notwithstanding subdivision 7, the sum of referendum equalization aid and
155.22location equity aid under section 126C.10, subdivision 2e, for fiscal year 2016 and later,
155.23for a district qualifying for additional aid under paragraph (a) for fiscal year 2015, must
155.24not be less than the product of (1) the district's referendum equalization aid for fiscal year
155.252015, times (2) the lesser of one or the ratio of the district's referendum revenue for that
155.26school year to the district's referendum revenue for fiscal year 2015, times (3) the lesser
155.27of one or the ratio of the district's referendum market value used for fiscal year 2015
155.28referendum equalization calculations to the district's referendum market value used for
155.29that year's referendum equalization calculations.
155.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
155.31and later.

155.32    Sec. 18. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9, is
155.33amended to read:
156.1    Subd. 9. Referendum revenue. (a) The revenue authorized by section 126C.10,
156.2subdivision 1 , may be increased in the amount approved by the voters of the district
156.3at a referendum called for the purpose. The referendum may be called by the board.
156.4The referendum must be conducted one or two calendar years before the increased levy
156.5authority, if approved, first becomes payable. Only one election to approve an increase
156.6may be held in a calendar year. Unless the referendum is conducted by mail under
156.7subdivision 11, paragraph (a), the referendum must be held on the first Tuesday after the
156.8first Monday in November. The ballot must state the maximum amount of the increased
156.9revenue per adjusted pupil unit. The ballot may state a schedule, determined by the board,
156.10of increased revenue per adjusted pupil unit that differs from year to year over the number
156.11of years for which the increased revenue is authorized or may state that the amount shall
156.12increase annually by the rate of inflation. For this purpose, the rate of inflation shall be the
156.13annual inflationary increase calculated under subdivision 2, paragraph (b). The ballot may
156.14state that existing referendum levy authority is expiring. In this case, the ballot may also
156.15compare the proposed levy authority to the existing expiring levy authority, and express
156.16the proposed increase as the amount, if any, over the expiring referendum levy authority.
156.17The ballot must designate the specific number of years, not to exceed ten, for which the
156.18referendum authorization applies. The ballot, including a ballot on the question to revoke
156.19or reduce the increased revenue amount under paragraph (c), must abbreviate the term
156.20"per adjusted pupil unit" as "per pupil." The notice required under section 275.60 may
156.21be modified to read, in cases of renewing existing levies at the same amount per pupil
156.22as in the previous year:
156.23"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU ARE VOTING
156.24TO EXTEND AN EXISTING PROPERTY TAX REFERENDUM THAT IS
156.25SCHEDULED TO EXPIRE."
156.26    The ballot may contain a textual portion with the information required in this
156.27subdivision and a question stating substantially the following:
156.28    "Shall the increase in the revenue proposed by (petition to) the board of .........,
156.29School District No. .., be approved?"
156.30    If approved, an amount equal to the approved revenue per adjusted pupil unit times
156.31the adjusted pupil units for the school year beginning in the year after the levy is certified
156.32shall be authorized for certification for the number of years approved, if applicable, or
156.33until revoked or reduced by the voters of the district at a subsequent referendum.
156.34    (b) The board must prepare and deliver by first class mail at least 15 days but no more
156.35than 30 days before the day of the referendum to each taxpayer a notice of the referendum
156.36and the proposed revenue increase. The board need not mail more than one notice to any
157.1taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be
157.2those shown to be owners on the records of the county auditor or, in any county where
157.3tax statements are mailed by the county treasurer, on the records of the county treasurer.
157.4Every property owner whose name does not appear on the records of the county auditor
157.5or the county treasurer is deemed to have waived this mailed notice unless the owner
157.6has requested in writing that the county auditor or county treasurer, as the case may be,
157.7include the name on the records for this purpose. The notice must project the anticipated
157.8amount of tax increase in annual dollars for typical residential homesteads, agricultural
157.9homesteads, apartments, and commercial-industrial property within the school district.
157.10    The notice for a referendum may state that an existing referendum levy is expiring
157.11and project the anticipated amount of increase over the existing referendum levy in
157.12the first year, if any, in annual dollars for typical residential homesteads, agricultural
157.13homesteads, apartments, and commercial-industrial property within the district.
157.14    The notice must include the following statement: "Passage of this referendum will
157.15result in an increase in your property taxes." However, in cases of renewing existing levies,
157.16the notice may include the following statement: "Passage of this referendum extends an
157.17existing operating referendum at the same amount per pupil as in the previous year."
157.18    (c) A referendum on the question of revoking or reducing the increased revenue
157.19amount authorized pursuant to paragraph (a) may be called by the board. A referendum to
157.20revoke or reduce the revenue amount must state the amount per resident marginal cost
157.21 adjusted pupil unit by which the authority is to be reduced. Revenue authority approved
157.22by the voters of the district pursuant to paragraph (a) must be available to the school
157.23district at least once before it is subject to a referendum on its revocation or reduction for
157.24subsequent years. Only one revocation or reduction referendum may be held to revoke or
157.25reduce referendum revenue for any specific year and for years thereafter.
157.26    (d) The approval of 50 percent plus one of those voting on the question is required to
157.27pass a referendum authorized by this subdivision.
157.28    (e) At least 15 days before the day of the referendum, the district must submit a
157.29copy of the notice required under paragraph (b) to the commissioner and to the county
157.30auditor of each county in which the district is located. Within 15 days after the results
157.31of the referendum have been certified by the board, or in the case of a recount, the
157.32certification of the results of the recount by the canvassing board, the district must notify
157.33the commissioner of the results of the referendum.
157.34EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
157.35and later.

158.1    Sec. 19. Minnesota Statutes 2013 Supplement, section 126C.17, subdivision 9a,
158.2is amended to read:
158.3    Subd. 9a. Board-approved referendum allowance. Notwithstanding subdivision
158.49, a school district may convert up to $300 per adjusted pupil unit of referendum authority
158.5from voter approved to board approved by a board vote. A district with less than $300 per
158.6adjusted pupil unit of referendum authority after the local optional revenue subtraction
158.7under subdivision 1 may authorize new referendum authority up to the difference between
158.8$300 per adjusted pupil unit and the district's referendum authority. The board may
158.9authorize this levy for up to five years and may subsequently reauthorize that authority
158.10in increments of up to five years.
158.11EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
158.12and later.

158.13    Sec. 20. Minnesota Statutes 2013 Supplement, section 126C.44, is amended to read:
158.14126C.44 SAFE SCHOOLS LEVY.
158.15    (a) Each district may make a levy on all taxable property located within the district
158.16for the purposes specified in this section. The maximum amount which may be levied for
158.17all costs under this section shall be equal to $36 multiplied by the district's adjusted pupil
158.18units for the school year. The proceeds of the levy must be reserved and used for directly
158.19funding the following purposes or for reimbursing the cities and counties who contract
158.20with the district for the following purposes:
158.21    (1) to pay the costs incurred for the salaries, benefits, and transportation costs of
158.22peace officers and sheriffs for liaison in services in the district's schools;
158.23    (2) to pay the costs for a drug abuse prevention program as defined in section
158.24609.101, subdivision 3 , paragraph (e), in the elementary schools;
158.25    (3) to pay the costs for a gang resistance education training curriculum in the
158.26district's schools;
158.27    (4) to pay the costs for security in the district's schools and on school property;
158.28    (5) to pay the costs for other crime prevention, drug abuse, student and staff safety,
158.29voluntary opt-in suicide prevention tools, and violence prevention measures taken by
158.30the school district;
158.31    (6) to pay costs for licensed school counselors, licensed school nurses, licensed
158.32school social workers, licensed school psychologists, and licensed alcohol and chemical
158.33dependency counselors to help provide early responses to problems;
159.1    (7) to pay for facility security enhancements including laminated glass, public
159.2announcement systems, emergency communications devices, and equipment and facility
159.3modifications related to violence prevention and facility security;
159.4    (8) to pay for costs associated with improving the school climate; or
159.5    (9) to pay costs for colocating and collaborating with mental health professionals
159.6who are not district employees or contractors.
159.7    (b) For expenditures under paragraph (a), clause (1), the district must initially
159.8attempt to contract for services to be provided by peace officers or sheriffs with the
159.9police department of each city or the sheriff's department of the county within the district
159.10containing the school receiving the services. If a local police department or a county
159.11sheriff's department does not wish to provide the necessary services, the district may
159.12contract for these services with any other police or sheriff's department located entirely or
159.13partially within the school district's boundaries.
159.14    (c) A school district that is a member of an intermediate school district may
159.15include in its authority under this section the costs associated with safe schools activities
159.16authorized under paragraph (a) for intermediate school district programs. This authority
159.17must not exceed $10 $15 times the adjusted marginal cost pupil units of the member
159.18districts. This authority is in addition to any other authority authorized under this section.
159.19Revenue raised under this paragraph must be transferred to the intermediate school district.
159.20EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

159.21    Sec. 21. Minnesota Statutes 2012, section 127A.45, subdivision 2, is amended to read:
159.22    Subd. 2. Definitions. (a) "Other district receipts" means payments by county
159.23treasurers pursuant to section 276.10, apportionments from the school endowment fund
159.24pursuant to section 127A.33, apportionments by the county auditor pursuant to section
159.25127A.34, subdivision 2 , and payments to school districts by the commissioner of revenue
159.26pursuant to chapter 298.
159.27(b) "Cumulative amount guaranteed" means the product of
159.28(1) the cumulative disbursement percentage shown in subdivision 3; times
159.29(2) the sum of
159.30(i) the current year aid payment percentage of the estimated aid and credit
159.31entitlements paid according to subdivision 13; plus
159.32(ii) 100 percent of the entitlements paid according to subdivisions 11 and 12; plus
159.33(iii) the other district receipts.
159.34(c) "Payment date" means the date on which state payments to districts are made
159.35by the electronic funds transfer method. If a payment date falls on a Saturday, a Sunday,
160.1or a weekday which is a legal holiday, the payment shall be made on the immediately
160.2preceding business day. The commissioner may make payments on dates other than
160.3those listed in subdivision 3, but only for portions of payments from any preceding
160.4payment dates which could not be processed by the electronic funds transfer method due
160.5to documented extenuating circumstances.
160.6(d) The current year aid payment percentage equals 73 in fiscal year 2010 and 70 in
160.7fiscal year 2011, and 60 in fiscal years 2012 and later 90.

160.8    Sec. 22. Minnesota Statutes 2012, section 127A.45, subdivision 3, is amended to read:
160.9    Subd. 3. Payment dates and percentages. (a) The commissioner shall pay to a
160.10district on the dates indicated an amount computed as follows: the cumulative amount
160.11guaranteed minus the sum of (1) the district's other district receipts through the current
160.12payment, and (2) the aid and credit payments through the immediately preceding payment.
160.13For purposes of this computation, the payment dates and the cumulative disbursement
160.14percentages are as follows:

160.15		Payment date	Percentage
160.16	Payment 1	July 15:	5.5
160.17	Payment 2	July 30:	8.0
160.18	Payment 3	August 15:	17.5
160.19	Payment 4	August 30:	20.0
160.20	Payment 5	September 15:	22.5
160.21	Payment 6	September 30:	25.0
160.22	Payment 7	October 15:	27.0
160.23	Payment 8	October 30:	30.0
160.24	Payment 9	November 15:	32.5
160.25	Payment 10	November 30:	36.5
160.26	Payment 11	December 15:	42.0
160.27	Payment 12	December 30:	45.0
160.28	Payment 13	January 15:	50.0
160.29	Payment 14	January 30:	54.0
160.30	Payment 15	February 15:	58.0
160.31	Payment 16	February 28:	63.0
160.32	Payment 17	March 15:	68.0
160.33	Payment 18	March 30:	74.0
160.34	Payment 19	April 15:	78.0
160.35	Payment 20	April 30:	85.0
160.36	Payment 21	May 15:	90.0
160.37	Payment 22	May 30:	95.0
160.38	Payment 23	June 20:	100.0

161.1(b) In addition to the amounts paid under paragraph (a), the commissioner shall pay
161.2to a school district or charter school on the dates indicated an amount computed as follows:

161.3 161.4	Payment 3	August 15: the final adjustment for the prior fiscal year for the state paid property tax credits established in section 273.1392
161.5 161.6	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
161.7 161.8	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
161.9 161.10	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

161.11(c) Notwithstanding paragraph (b), if the current year aid payment percentage
161.12under subdivision 2, paragraph (d), is less than 90, in addition to the amounts paid under
161.13paragraph (a), the commissioner shall pay to a charter school on the dates indicated an
161.14amount computed as follows:

161.15 161.16	Payment 1	July 15: 75 percent of the final adjustment for the prior fiscal year for all aid entitlements
161.17 161.18	Payment 8	October 30: 25 percent of the final adjustment for the prior fiscal year for all aid entitlements

161.19EFFECTIVE DATE.This section is effective July 1, 2015.

161.20    Sec. 23. Minnesota Statutes 2013 Supplement, section 127A.47, subdivision 7, is
161.21amended to read:
161.22    Subd. 7. Alternative attendance programs. (a) The general education aid and
161.23special education aid for districts must be adjusted for each pupil attending a nonresident
161.24district under sections 123A.05 to 123A.08, 124D.03, 124D.08, and 124D.68. The
161.25adjustments must be made according to this subdivision.
161.26    (b) For purposes of this subdivision, the "unreimbursed cost of providing special
161.27education and services" means the difference between: (1) the actual cost of providing
161.28special instruction and services, including special transportation and unreimbursed
161.29building lease and debt service costs for facilities used primarily for special education, for
161.30a pupil with a disability, as defined in section 125A.02, or a pupil, as defined in section
161.31125A.51 , who is enrolled in a program listed in this subdivision, minus (2) if the pupil
161.32receives special instruction and services outside the regular classroom for more than
161.3360 percent of the school day, the amount of general education revenue and referendum
161.34equalization aid as defined in section 125A.11, subdivision 1, paragraph (c), attributable
161.35to that pupil for the portion of time the pupil receives special instruction and services
161.36outside of the regular classroom, excluding portions attributable to district and school
161.37administration, district support services, operations and maintenance, capital expenditures,
162.1and pupil transportation, minus (3) special education aid under section 125A.76
162.2attributable to that pupil, that is received by the district providing special instruction and
162.3services. For purposes of this paragraph, general education revenue and referendum
162.4equalization aid attributable to a pupil must be calculated using the serving district's
162.5average general education revenue and referendum equalization aid per adjusted pupil unit.
162.6(c) For fiscal year 2015 and later, special education aid paid to a resident district
162.7must be reduced by an amount equal to 90 percent of the unreimbursed cost of providing
162.8special education and services.
162.9(d) Notwithstanding paragraph (c), special education aid paid to a resident district
162.10must be reduced by an amount equal to 100 percent of the unreimbursed cost of special
162.11education and services provided to students at an intermediate district, cooperative, or
162.12charter school where the percent of students eligible for special education services is at
162.13least 70 percent of the charter school's total enrollment.
162.14    (e) Special education aid paid to the district or cooperative providing special
162.15instruction and services for the pupil, or to the fiscal agent district for a cooperative,
162.16must be increased by the amount of the reduction in the aid paid to the resident district
162.17under paragraphs (c) and (d). If the resident district's special education aid is insufficient
162.18to make the full adjustment, the remaining adjustment shall be made to other state aids
162.19due to the district.
162.20    (f) An area learning center operated by a service cooperative, intermediate district,
162.21education district, or a joint powers cooperative may elect through the action of the
162.22constituent boards to charge the resident district tuition for pupils rather than to have the
162.23general education revenue paid to a fiscal agent school district. Except as provided in
162.24paragraph (e), the district of residence must pay tuition equal to at least 90 and no more
162.25than 100 percent of the district average general education revenue per pupil unit minus
162.26an amount equal to the product of the formula allowance according to section 126C.10,
162.27subdivision 2 , times .0466, calculated without compensatory revenue and transportation
162.28sparsity revenue, times the number of pupil units for pupils attending the area learning
162.29center.
162.30EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
162.31and later.

162.32    Sec. 24. Laws 2012, chapter 263, section 1, is amended to read:
162.33    Section 1. INNOVATIVE DELIVERY OF EDUCATION SERVICES AND
162.34SHARING OF DISTRICT RESOURCES; PILOT PROJECT.
163.1    Subdivision 1. Establishment; requirements for participation. (a) A five-year
163.2 pilot project for the 2013-2014 through 2017-2018 school years is established to improve
163.3student and school outcomes by allowing groups of school districts to work together to
163.4provide innovative education programs and activities and share district resources. The
163.5pilot project may last until June 30, 2018, or for up to five years, whichever is less, except
163.6that innovation partnerships formed during the period of the pilot project may continue
163.7past June 30, 2018, with the agreement of the partnership members.
163.8(b) To participate in this pilot project to improve student and school outcomes, a
163.9group of two or more school districts must collaborate with school staff and receive formal
163.10school board approval to form a partnership. The partnership must develop a plan to
163.11provide challenging programmatic options for students, create professional development
163.12opportunities for educators, increase student engagement and connection and challenging
163.13learning opportunities for students, or demonstrate efficiencies in delivering financial and
163.14other services. The plan must establish:
163.15(1) collaborative educational goals and objectives;
163.16(2) strategies and processes to implement those goals and objectives, including a
163.17budget process with periodic expenditure reviews;
163.18(3) valid and reliable measures to evaluate progress in realizing the goals and
163.19objectives;
163.20(4) an implementation timeline; and
163.21(5) other applicable conditions, regulations, responsibilities, duties, provisions, fee
163.22schedules, and legal considerations needed to fully implement the plan.
163.23A partnership may invite additional districts to join the partnership during the pilot
163.24project term after notifying the commissioner.
163.25(c) A partnership of interested districts must apply by February 1, 2013, of any year
163.26 to the education commissioner in the form and manner the commissioner determines,
163.27consistent with this section. The application must contain the formal approval adopted by
163.28the school board in each district to participate in the plan.
163.29(d) Notwithstanding other law to the contrary, a participating school district under
163.30this section continues to: receive revenue and maintain its taxation authority; be organized
163.31and governed by an elected school board with general powers under Minnesota Statutes,
163.32section 123B.02; and be subject to employment agreements under Minnesota Statutes,
163.33chapter 122A, and Minnesota Statutes, section 179A.20; and district employees continue
163.34to remain employees of the employing school district.
163.35    Subd. 2. Commissioner's role. Interested groups of school districts must submit
163.36a completed application to the commissioner by March 1, 2013, of any year in the form
164.1and manner determined by the commissioner. The education commissioner must convene
164.2an advisory panel composed of a teacher appointed by Education Minnesota, a school
164.3principal appointed by the Minnesota Association of Secondary School Principals, a
164.4school board member appointed by the Minnesota School Boards Association, and a
164.5school superintendent appointed by the Minnesota Association of School Administrators
164.6to advise the commissioner on applicants' qualifications to participate in this pilot project.
164.7The commissioner must select between three and may select up to six qualified applicants
164.8under subdivision 1 by April 1, 2013, of any year to participate in this pilot project,
164.9ensuring an equitable geographical distribution of project participants to the extent
164.10practicable. The commissioner must select only those applicants that fully comply with
164.11the requirements in subdivision 1. The commissioner must terminate a project participant
164.12that fails to effectively implement the goals and objectives contained in its application and
164.13according to its stated timeline.
164.14    Subd. 3. Pilot project evaluation. Participating school districts must submit pilot
164.15project data to the commissioner in the form and manner determined by the commissioner.
164.16The education commissioner must analyze participating districts' progress in realizing
164.17their educational goals and objectives to work together in providing innovative education
164.18programs and activities and sharing resources. The commissioner must include the
164.19analysis of best practices in a report to the legislative committees with jurisdiction over
164.20kindergarten through grade 12 education finance and policy on the efficacy of this pilot
164.21project. The commissioner may shall submit an interim project report at any time by
164.22February 1, 2016, and must submit a final report to the legislature by February 1, 2018
164.23 2019, recommending whether or not to continue or expand the pilot project.

164.24    Sec. 25. Laws 2012, chapter 263, section 1, the effective date, is amended to read:
164.25EFFECTIVE DATE.This section is effective the day following final enactment
164.26and applies to the 2013-2014 through 2017-2018 school years.

164.27    Sec. 26. Laws 2013, chapter 116, article 1, section 58, subdivision 2, is amended to read:
164.28    Subd. 2. General education aid. For general education aid under Minnesota
164.29Statutes, section 126C.13, subdivision 4:

164.30 164.31		$	6,051,766,000 6,851,972,000	.....	2014
164.32 164.33		$	6,370,640,000 6,495,698,000	.....	2015

165.1The 2014 appropriation includes $781,842,000 $780,709,000 for 2013 and
165.2$5,269,924,000 $6,071,263,000 for 2014.
165.3The 2015 appropriation includes $823,040,000 $589,097,000 for 2014 and
165.4$5,547,600,000 $5,906,601,000 for 2015.

165.5    Sec. 27. APPROPRIATIONS.
165.6    Subdivision 1. Department of Education. The sums indicated in this section are
165.7appropriated from the general fund to the Department of Education for the fiscal years
165.8designated.
165.9    Subd. 2. Recovery program grants. For recovery program grants under Minnesota
165.10Statutes, section 124D.695:

165.11

$

500,000

.....

2015

165.12    Sec. 28. REVISOR'S INSTRUCTION.
165.13In Minnesota Statutes, the revisor of statutes shall change the term "location equity"
165.14to "local optional."


165.17    Section 1. Minnesota Statutes 2012, section 122A.40, subdivision 13, is amended to
165.18read:
165.19    Subd. 13. Immediate discharge. (a) Except as otherwise provided in paragraph
165.20(b), a board may discharge a continuing-contract teacher, effective immediately, upon any
165.21of the following grounds:
165.22(1) immoral conduct, insubordination, or conviction of a felony;
165.23(2) conduct unbecoming a teacher which requires the immediate removal of the
165.24teacher from classroom or other duties;
165.25(3) failure without justifiable cause to teach without first securing the written release
165.26of the school board;
165.27(4) gross inefficiency which the teacher has failed to correct after reasonable written
165.28notice;
165.29(5) willful neglect of duty; or
165.30(6) continuing physical or mental disability subsequent to a 12 months leave of
165.31absence and inability to qualify for reinstatement in accordance with subdivision 12.
166.1For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
166.2discriminatory practice described in section 363A.13.
166.3Prior to discharging a teacher under this paragraph, the board must notify the teacher
166.4in writing and state its ground for the proposed discharge in reasonable detail. Within
166.5ten days after receipt of this notification the teacher may make a written request for a
166.6hearing before the board and it shall be granted before final action is taken. The board
166.7may suspend a teacher with pay pending the conclusion of the hearing and determination
166.8of the issues raised in the hearing after charges have been filed which constitute ground for
166.9discharge. If a teacher has been charged with a felony and the underlying conduct that
166.10is the subject of the felony charge is a ground for a proposed immediate discharge, the
166.11suspension pending the conclusion of the hearing and determination of the issues may be
166.12without pay. If a hearing under this paragraph is held, the board must reimburse the teacher
166.13for any salary or compensation withheld if the final decision of the board or the arbitrator
166.14does not result in a penalty to or suspension, termination, or discharge of the teacher.
166.15(b) A board must discharge a continuing-contract teacher, effective immediately,
166.16upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
166.17teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
166.18(c) When a teacher is discharged under paragraph (b) or when the commissioner
166.19makes a final determination of child maltreatment involving a teacher under section
166.20626.556, subdivision 11, the school principal or other person having administrative
166.21control of the school must include in the teacher's employment record the information
166.22contained in the record of the disciplinary action or the final maltreatment determination,
166.23consistent with the definition of public data under section 13.41, subdivision 5, and must
166.24provide the Board of Teaching and the licensing division at the department with the
166.25necessary and relevant information to enable the Board of Teaching and the department's
166.26licensing division to fulfill their statutory and administrative duties related to issuing,
166.27renewing, suspending, or revoking a teacher's license. Information received by the Board
166.28of Teaching or the licensing division at the department under this paragraph is governed
166.29by section 13.41 or other applicable law governing data of the receiving entity. In addition
166.30to the background check required under section 123B.03, a school board or other school
166.31hiring authority must contact the Board of Teaching and the department to determine
166.32whether the teacher's license has been suspended or revoked, consistent with the discharge
166.33and final maltreatment determinations identified in this paragraph. Unless restricted by
166.34federal or state data practices law or by the terms of a collective bargaining agreement,
166.35the responsible authority for a school district must disseminate to another school district
166.36private personnel data on a current or former teacher employee or contractor of the district,
167.1including the results of background investigations, if the requesting school district seeks
167.2the information because the subject of the data has applied for employment with the
167.3requesting school district.
167.4EFFECTIVE DATE.This section is effective the day following final enactment.

167.5    Sec. 2. Minnesota Statutes 2012, section 122A.41, subdivision 6, is amended to read:
167.6    Subd. 6. Grounds for discharge or demotion. (a) Except as otherwise provided
167.7in paragraph (b), causes for the discharge or demotion of a teacher either during or after
167.8the probationary period must be:
167.9(1) immoral character, conduct unbecoming a teacher, or insubordination;
167.10(2) failure without justifiable cause to teach without first securing the written release
167.11of the school board having the care, management, or control of the school in which the
167.12teacher is employed;
167.13(3) inefficiency in teaching or in the management of a school, consistent with
167.14subdivision 5, paragraph (b);
167.15(4) affliction with active tuberculosis or other communicable disease must be
167.16considered as cause for removal or suspension while the teacher is suffering from such
167.17disability; or
167.18(5) discontinuance of position or lack of pupils.
167.19For purposes of this paragraph, conduct unbecoming a teacher includes an unfair
167.20discriminatory practice described in section 363A.13.
167.21(b) A probationary or continuing-contract teacher must be discharged immediately
167.22upon receipt of notice under section 122A.20, subdivision 1, paragraph (b), that the
167.23teacher's license has been revoked due to a conviction for child abuse or sexual abuse.
167.24(c) When a teacher is discharged under paragraph (b) or when the commissioner
167.25makes a final determination of child maltreatment involving a teacher under section
167.26626.556, subdivision 11, the school principal or other person having administrative
167.27control of the school must include in the teacher's employment record the information
167.28contained in the record of the disciplinary action or the final maltreatment determination,
167.29consistent with the definition of public data under section 13.41, subdivision 5, and must
167.30provide the Board of Teaching and the licensing division at the department with the
167.31necessary and relevant information to enable the Board of Teaching and the department's
167.32licensing division to fulfill their statutory and administrative duties related to issuing,
167.33renewing, suspending, or revoking a teacher's license. Information received by the Board
167.34of Teaching or the licensing division at the department under this paragraph is governed
167.35by section 13.41 or other applicable law governing data of the receiving entity. In addition
168.1to the background check required under section 123B.03, a school board or other school
168.2hiring authority must contact the Board of Teaching and the department to determine
168.3whether the teacher's license has been suspended or revoked, consistent with the discharge
168.4and final maltreatment determinations identified in this paragraph. Unless restricted by
168.5federal or state data practices law or by the terms of a collective bargaining agreement,
168.6the responsible authority for a school district must disseminate to another school district
168.7private personnel data on a current or former teacher employee or contractor of the district,
168.8including the results of background investigations, if the requesting school district seeks
168.9the information because the subject of the data has applied for employment with the
168.10requesting school district.
168.11EFFECTIVE DATE.This section is effective the day following final enactment.

168.12    Sec. 3. Minnesota Statutes 2012, section 122A.415, subdivision 1, is amended to read:
168.13    Subdivision 1. Revenue amount. (a) A school district, intermediate school district,
168.14school site, or charter school that meets the conditions of section 122A.414 and submits an
168.15application approved by the commissioner is eligible for alternative teacher compensation
168.16revenue.
168.17(b) For school district and intermediate school district applications, the commissioner
168.18must consider only those applications to participate that are submitted jointly by a
168.19district and the exclusive representative of the teachers. The application must contain an
168.20alternative teacher professional pay system agreement that:
168.21(1) implements an alternative teacher professional pay system consistent with
168.22section 122A.414; and
168.23(2) is negotiated and adopted according to the Public Employment Labor Relations
168.24Act under chapter 179A, except that notwithstanding section 179A.20, subdivision 3, a
168.25district may enter into a contract for a term of two or four years.
168.26Alternative teacher compensation revenue for a qualifying school district or site in
168.27which the school board and the exclusive representative of the teachers agree to place
168.28teachers in the district or at the site on the alternative teacher professional pay system
168.29equals $260 times the number of pupils enrolled at the district or site on October 1 of
168.30the previous fiscal year. Alternative teacher compensation revenue for a qualifying
168.31intermediate school district must be calculated under section 126C.10, subdivision 34
168.32 subdivision 4, paragraphs (a) and (b).
168.33(c) For a newly combined or consolidated district, the revenue shall be computed
168.34using the sum of pupils enrolled on October 1 of the previous year in the districts entering
168.35into the combination or consolidation. The commissioner may adjust the revenue computed
169.1for a site using prior year data to reflect changes attributable to school closings, school
169.2openings, or grade level reconfigurations between the prior year and the current year.
169.3(d) The revenue is available only to school districts, intermediate school districts,
169.4school sites, and charter schools that fully implement an alternative teacher professional
169.5pay system by October 1 of the current school year.
169.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
169.7and later.

169.8    Sec. 4. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 1, is
169.9amended to read:
169.10    Subdivision 1. Initial achievement and integration revenue. (a) An eligible
169.11district's initial achievement and integration revenue equals the lesser of 100.3 percent of
169.12the district's expenditures under the budget approved by the commissioner under section
169.13124D.861, subdivision 3, paragraph (c), excluding expenditures used to generate incentive
169.14revenue under subdivision 2, or the sum of (1) $350 times the district's adjusted pupil
169.15units for that year times the ratio of the district's enrollment of protected students for the
169.16previous school year to total enrollment for the previous school year and (2) the greater of
169.17zero or 66 percent of the difference between the district's integration revenue for fiscal
169.18year 2013 and the district's integration revenue for fiscal year 2014 under clause (1).
169.19(b) In each year, 0.3 percent of each district's initial achievement and integration
169.20revenue is transferred to the department for the oversight and accountability activities
169.21required under this section and section 124D.861.
169.22EFFECTIVE DATE.This section is effective the day following final enactment
169.23and applies to revenue for fiscal year 2014 and later.

169.24    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.862, subdivision 2, is
169.25amended to read:
169.26    Subd. 2. Incentive revenue. An eligible school district's maximum incentive
169.27revenue equals $10 per adjusted pupil unit. In order to receive this revenue, a district must
169.28be A district's incentive revenue equals the lesser of the maximum incentive revenue
169.29or the district's expenditures for implementing a voluntary plan to reduce racial and
169.30economic enrollment disparities through intradistrict and interdistrict activities that have
169.31been approved as a part of the district's achievement and integration plan under the budget
169.32approved by the commissioner under section 124D.861, subdivision 3, paragraph (c).
170.1EFFECTIVE DATE.This section is effective the day following final enactment
170.2and applies to revenue for fiscal year 2014 and later.

170.3    Sec. 6. Laws 2013, chapter 116, article 3, section 37, subdivision 11, is amended to read:
170.4    Subd. 11. Concurrent enrollment program. For concurrent enrollment programs
170.5under Minnesota Statutes, section 124D.091:

170.6		$	2,000,000	.....	2014
170.7 170.8		$	2,000,000 3,897,000	.....	2015

170.9If the appropriation is insufficient, the commissioner must proportionately reduce
170.10the aid payment to each district.
170.11Any balance in the first year does not cancel but is available in the second year. The
170.12annual base budget for this program is $2,000,000 for fiscal years 2016 and 2017.

170.13    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 15, is amended to read:
170.14    Subd. 15. Early childhood literacy programs. For early childhood literacy
170.15programs under Minnesota Statutes, section 119A.50, subdivision 3:

170.16		$	4,125,000	.....	2014
170.17 170.18		$	4,125,000 4,625,000	.....	2015

170.19Up to $4,125,000 each in the first year and $4,625,000 in the second year is for
170.20leveraging federal and private funding to support AmeriCorps members serving in the
170.21Minnesota Reading Corps program established by ServeMinnesota, including costs
170.22associated with the training and teaching of early literacy skills to children age three
170.23to grade 3 and the evaluation of the impact of the program under Minnesota Statutes,
170.24sections 124D.38, subdivision 2, and 124D.42, subdivision 6. Up to $500,000 in fiscal
170.25year 2015 must be used to support priority and focus schools as defined by the Department
170.26of Education and to expand kindergarten programming.
170.27Any balance in the first year does not cancel but is available in the second year.

170.28    Sec. 8. BETTER ALIGNING MINNESOTA'S ALTERNATIVE TEACHER
170.29PROFESSIONAL PAY SYSTEM AND TEACHER DEVELOPMENT AND
170.30EVALUATION PROGRAM.
170.31To better align Minnesota's alternative teacher professional pay system under
170.32Minnesota Statutes, sections 122A.413 to 122A.416, and Minnesota's teacher development
170.33and evaluation program under Minnesota Statutes, sections 122A.40, subdivision 8, and
170.34122A.41, subdivision 5, and effect and fund an improved alignment of this system and
171.1program, the commissioner of education must consult with stakeholders, including, but
171.2not limited to, representatives of the Minnesota Association of School Administrators,
171.3the Minnesota Association of Secondary School Principals, the Minnesota Elementary
171.4School Principals' Association, Education Minnesota, Schools for Equity in Education, the
171.5Minnesota Business Partnership, the Minnesota Chamber of Commerce, the Minnesota
171.6School Boards Association, the Department of Education, the College of Education
171.7and Human Development at the University of Minnesota, the Minnesota Association
171.8of the Colleges for Teacher Education, licensed elementary and secondary school
171.9teachers employed in school districts with an alternative teacher professional pay system
171.10agreement and licensed elementary and secondary school teachers employed in school
171.11districts without an alternative teacher professional pay system agreement, where one or
171.12more of these teachers may be a master teacher, peer evaluator, in another teacher leader
171.13position, or national board certified teacher, a teacher or school administrator employed in
171.14a Minnesota charter school with an alternative teacher professional pay system agreement
171.15and a teacher or school administrator employed in a Minnesota charter school without an
171.16alternative teacher professional pay system agreement, a parent or guardian of a student
171.17currently enrolled in a Minnesota public school, the Association of Metropolitan School
171.18Districts, and the Minnesota Rural Education Association. The commissioner also must
171.19consult with members of the house of representatives and members of the senate.
171.20The commissioner, by February 1, 2015, must submit to the education policy and
171.21finance committees of the legislature written recommendations on better aligning and
171.22financing the alternative teacher professional pay system and teacher development and
171.23evaluation program.
171.24EFFECTIVE DATE.This section is effective the day following final enactment.

171.25    Sec. 9. CAREER AND TECHNICAL EDUCATION PROGRAM INVENTORY.
171.26(a) The commissioner of education must consult with experts knowledgeable about
171.27secondary and postsecondary career and technical education programs to determine the
171.28content and status of particular career and technical education programs in Minnesota
171.29school districts, including cooperating districts under Minnesota Statutes, 123A.33,
171.30subdivision 2, integration districts, and postsecondary institutions partnering with school
171.31districts or offering courses through PSEO or career and technical programs and the rates
171.32of student participation and completion for these various programs, including: agriculture,
171.33food, and natural resources; architecture and construction; arts, audiovisual technology,
171.34and communications; business management and administration; computer science; family
171.35and consumer science; finance; health science; hospitality and tourism; human services;
172.1information technology; manufacturing; marketing; science, technology, engineering, and
172.2mathematics; and transportation, distribution, and logistics.
172.3(b) To accomplish paragraph (a) and to understand the current role of local school
172.4districts and postsecondary institutions in providing career and technical education
172.5programs, the commissioner of education, in consultation with experts, also must examine
172.6the extent to which secondary and postsecondary education programs offer students a
172.7progression of coordinated, nonduplicative courses that adequately prepare students to
172.8successfully complete a career and technical education program.
172.9(c) The commissioner of education must submit a report by February 1, 2015,
172.10to the education policy and finance committees of the legislature, consistent with this
172.11section, and include information about each district's dedicated equipment, resources, and
172.12relationships with postsecondary institutions and the local business community.
172.13EFFECTIVE DATE.This section is effective the day following final enactment.

172.14    Sec. 10. APPROPRIATIONS.
172.15    Subdivision 1. Department of Education. The sums indicated in this section are
172.16appropriated from the general fund to the Department of Education for the fiscal years
172.17designated.
172.18    Subd. 2. Career and technical program inventory. For the career and technical
172.19program inventory program under section 9:

172.20

$

150,000

.....

2015

172.21This is a onetime appropriation.
172.22    Subd. 3. Teacher Professional Pay System and Teacher Evaluation Program
172.23alignment. For the alignment and reporting activities under section 8:

172.24

$

25,000

.....

2015

172.27    Section 1. Minnesota Statutes 2013 Supplement, section 125A.0942, is amended to read:
172.28125A.0942 STANDARDS FOR RESTRICTIVE PROCEDURES.
172.29    Subdivision 1. Restrictive procedures plan. (a) Schools that intend to use
172.30restrictive procedures shall maintain and make publicly accessible in an electronic format
173.1on a school or district Web site or make a paper copy available upon request describing a
173.2restrictive procedures plan for children with disabilities that at least:
173.3(1) lists the restrictive procedures the school intends to use;
173.4(2) describes how the school will implement a range of positive behavior strategies
173.5and provide links to mental health services;
173.6(3) describes how the school will provide training on de-escalation techniques,
173.7consistent with section 122A.09, subdivision 4, paragraph (k);
173.8(4) describes how the school will monitor and review the use of restrictive
173.9procedures, including:
173.10(i) conducting post-use debriefings, consistent with subdivision 3, paragraph (a),
173.11clause (5); and
173.12(ii) convening an oversight committee to undertake a quarterly review of the use
173.13of restrictive procedures based on patterns or problems indicated by similarities in the
173.14time of day, day of the week, duration of the use of a procedure, the individuals involved,
173.15or other factors associated with the use of restrictive procedures; the number of times a
173.16restrictive procedure is used schoolwide and for individual children; the number and types
173.17of injuries, if any, resulting from the use of restrictive procedures; whether restrictive
173.18procedures are used in nonemergency situations; the need for additional staff training; and
173.19proposed actions to minimize the use of restrictive procedures; and
173.20(4) (5) includes a written description and documentation of the training staff
173.21completed under subdivision 5.
173.22(b) Schools annually must publicly identify oversight committee members who
173.23must at least include:
173.24(1) a mental health professional, school psychologist, or school social worker;
173.25(2) an expert in positive behavior strategies;
173.26(3) a special education administrator; and
173.27(4) a general education administrator.
173.28    Subd. 2. Restrictive procedures. (a) Restrictive procedures may be used only
173.29by a licensed special education teacher, school social worker, school psychologist,
173.30behavior analyst certified by the National Behavior Analyst Certification Board, a person
173.31with a master's degree in behavior analysis, other licensed education professional,
173.32paraprofessional under section 120B.363, or mental health professional under section
173.33245.4871, subdivision 27 , who has completed the training program under subdivision 5.
173.34(b) A school shall make reasonable efforts to notify the parent on the same day a
173.35restrictive procedure is used on the child, or if the school is unable to provide same-day
174.1notice, notice is sent within two days by written or electronic means or as otherwise
174.2indicated by the child's parent under paragraph (d) (f).
174.3(c) The district must hold a meeting of the individualized education program team,
174.4conduct or review a functional behavioral analysis, review data, consider developing
174.5additional or revised positive behavioral interventions and supports, consider actions to
174.6reduce the use of restrictive procedures, and modify the individualized education program
174.7or behavior intervention plan as appropriate. The district must hold the meeting: within
174.8ten calendar days after district staff use restrictive procedures on two separate school
174.9days within 30 calendar days or a pattern of use emerges and the child's individualized
174.10education program or behavior intervention plan does not provide for using restrictive
174.11procedures in an emergency; or at the request of a parent or the district after restrictive
174.12procedures are used. The district must review use of restrictive procedures at a child's
174.13annual individualized education program meeting when the child's individualized
174.14education program provides for using restrictive procedures in an emergency.
174.15(d) If the individualized education program team under paragraph (c) determines
174.16that existing interventions and supports are ineffective in reducing the use of restrictive
174.17procedures or the district uses restrictive procedures on a child on ten or more school days
174.18during the same school year, the team, as appropriate, either must consult with other
174.19professionals working with the child; consult with experts in behavior analysis, mental
174.20health, communication, or autism; consult with culturally competent professionals;
174.21review existing evaluations, resources, and successful strategies; or consider whether to
174.22reevaluate the child.
174.23(e) At the individualized education program meeting under paragraph (c), the team
174.24must review any known medical or psychological limitations, including any medical
174.25information the parent provides voluntarily, that contraindicate the use of a restrictive
174.26procedure, consider whether to prohibit that restrictive procedure, and document any
174.27prohibition in the individualized education program or behavior intervention plan.
174.28(f) An individualized education program team may plan for using restrictive
174.29procedures and may include these procedures in a child's individualized education
174.30program or behavior intervention plan; however, the restrictive procedures may be used
174.31only in response to behavior that constitutes an emergency, consistent with this section.
174.32The individualized education program or behavior intervention plan shall indicate how the
174.33parent wants to be notified when a restrictive procedure is used.
174.34    Subd. 3. Physical holding or seclusion. (a) Physical holding or seclusion may be
174.35used only in an emergency. A school that uses physical holding or seclusion shall meet the
174.36following requirements:
175.1(1) physical holding or seclusion is the least intrusive intervention that effectively
175.2responds to the emergency;
175.3(2) physical holding or seclusion is not used to discipline a noncompliant child;
175.4(3) physical holding or seclusion ends when the threat of harm ends and the staff
175.5determines the child can safely return to the classroom or activity;
175.6(4) staff directly observes the child while physical holding or seclusion is being used;
175.7(5) each time physical holding or seclusion is used, the staff person who implements
175.8or oversees the physical holding or seclusion documents, as soon as possible after the
175.9incident concludes, the following information:
175.10(i) a description of the incident that led to the physical holding or seclusion;
175.11(ii) why a less restrictive measure failed or was determined by staff to be
175.12inappropriate or impractical;
175.13(iii) the time the physical holding or seclusion began and the time the child was
175.14released; and
175.15(iv) a brief record of the child's behavioral and physical status;
175.16(6) the room used for seclusion must:
175.17(i) be at least six feet by five feet;
175.18(ii) be well lit, well ventilated, adequately heated, and clean;
175.19(iii) have a window that allows staff to directly observe a child in seclusion;
175.20(iv) have tamperproof fixtures, electrical switches located immediately outside the
175.21door, and secure ceilings;
175.22(v) have doors that open out and are unlocked, locked with keyless locks that
175.23have immediate release mechanisms, or locked with locks that have immediate release
175.24mechanisms connected with a fire and emergency system; and
175.25(vi) not contain objects that a child may use to injure the child or others;
175.26(7) before using a room for seclusion, a school must:
175.27(i) receive written notice from local authorities that the room and the locking
175.28mechanisms comply with applicable building, fire, and safety codes; and
175.29(ii) register the room with the commissioner, who may view that room; and
175.30(8) until August 1, 2015, a school district may use prone restraints with children
175.31age five or older if:
175.32(i) the district has provided to the department a list of staff who have had specific
175.33training on the use of prone restraints;
175.34(ii) the district provides information on the type of training that was provided and
175.35by whom;
175.36(iii) only staff who received specific training use prone restraints;
176.1(iv) each incident of the use of prone restraints is reported to the department within
176.2five working days on a form provided by the department; and
176.3(v) the district, before using prone restraints, must review any known medical or
176.4psychological limitations that contraindicate the use of prone restraints.
176.5The department must collect data on districts' use of prone restraints and publish the data
176.6in a readily accessible format on the department's Web site on a quarterly basis.
176.7(b) By March 1, 2014 February 1, 2015, and annually thereafter, stakeholders must
176.8recommend to the commissioner specific and measurable implementation and outcome
176.9goals for reducing the use of restrictive procedures and the commissioner must submit to
176.10the legislature a report on districts' progress in reducing the use of restrictive procedures
176.11that recommends how to further reduce these procedures and eliminate the use of prone
176.12restraints. The statewide plan includes the following components: measurable goals; the
176.13resources, training, technical assistance, mental health services, and collaborative efforts
176.14needed to significantly reduce districts' use of prone restraints; and recommendations
176.15to clarify and improve the law governing districts' use of restrictive procedures. The
176.16commissioner must consult with interested stakeholders when preparing the report,
176.17including representatives of advocacy organizations, special education directors, teachers,
176.18paraprofessionals, intermediate school districts, school boards, day treatment providers,
176.19county social services, state human services department staff, mental health professionals,
176.20and autism experts. By June 30 each year, districts must report summary data on their
176.21use of restrictive procedures to the department, in a form and manner determined by the
176.22commissioner. The summary data must include information about the use of restrictive
176.23procedures, including use of reasonable force under section 121A.582.
176.24    Subd. 4. Prohibitions. The following actions or procedures are prohibited:
176.25(1) engaging in conduct prohibited under section 121A.58;
176.26(2) requiring a child to assume and maintain a specified physical position, activity,
176.27or posture that induces physical pain;
176.28(3) totally or partially restricting a child's senses as punishment;
176.29(4) presenting an intense sound, light, or other sensory stimuli using smell, taste,
176.30substance, or spray as punishment;
176.31(5) denying or restricting a child's access to equipment and devices such as walkers,
176.32wheelchairs, hearing aids, and communication boards that facilitate the child's functioning,
176.33except when temporarily removing the equipment or device is needed to prevent injury
176.34to the child or others or serious damage to the equipment or device, in which case the
176.35equipment or device shall be returned to the child as soon as possible;
177.1(6) interacting with a child in a manner that constitutes sexual abuse, neglect, or
177.2physical abuse under section 626.556;
177.3(7) withholding regularly scheduled meals or water;
177.4(8) denying access to bathroom facilities; and
177.5(9) physical holding that restricts or impairs a child's ability to breathe, restricts or
177.6impairs a child's ability to communicate distress, places pressure or weight on a child's
177.7head, throat, neck, chest, lungs, sternum, diaphragm, back, or abdomen, or results in
177.8straddling a child's torso.
177.9    Subd. 5. Training for staff. (a) To meet the requirements of subdivision 1, staff
177.10who use restrictive procedures, including paraprofessionals, shall complete training in
177.11the following skills and knowledge areas:
177.12(1) positive behavioral interventions;
177.13(2) communicative intent of behaviors;
177.14(3) relationship building;
177.15(4) alternatives to restrictive procedures, including techniques to identify events and
177.16environmental factors that may escalate behavior;
177.17(5) de-escalation methods;
177.18(6) standards for using restrictive procedures only in an emergency;
177.19(7) obtaining emergency medical assistance;
177.20(8) the physiological and psychological impact of physical holding and seclusion;
177.21(9) monitoring and responding to a child's physical signs of distress when physical
177.22holding is being used;
177.23(10) recognizing the symptoms of and interventions that may cause positional
177.24asphyxia when physical holding is used;
177.25(11) district policies and procedures for timely reporting and documenting each
177.26incident involving use of a restricted procedure; and
177.27(12) schoolwide programs on positive behavior strategies.
177.28(b) The commissioner, after consulting with the commissioner of human services,
177.29must develop and maintain a list of training programs that satisfy the requirements of
177.30paragraph (a). The commissioner also must develop and maintain a list of experts to
177.31help individualized education program teams reduce the use of restrictive procedures.
177.32The district shall maintain records of staff who have been trained and the organization
177.33or professional that conducted the training. The district may collaborate with children's
177.34community mental health providers to coordinate trainings.
177.35    Subd. 6. Behavior supports; reasonable force. (a) School districts are encouraged
177.36to establish effective schoolwide systems of positive behavior interventions and supports.
178.1(b) Nothing in this section or section 125A.0941 precludes the use of reasonable
178.2force under sections 121A.582; 609.06, subdivision 1; and 609.379. For the 2014-2015
178.3school year and later, districts must collect and submit to the commissioner summary
178.4data, consistent with subdivision 3, paragraph (b), on district use of reasonable force
178.5that is consistent with the definition of physical holding or seclusion for a child with a
178.6disability under this section.
178.7EFFECTIVE DATE.This section is effective the day following final enactment.

178.8    Sec. 2. Minnesota Statutes 2013 Supplement, section 125A.11, subdivision 1, is
178.9amended to read:
178.10    Subdivision 1. Nonresident tuition rate; other costs. (a) For fiscal year 2015 and
178.11later, when a school district provides special instruction and services for a pupil with
178.12a disability as defined in section 125A.02 outside the district of residence, excluding
178.13a pupil for whom an adjustment to special education aid is calculated according to
178.14section 127A.47, subdivision 7, paragraphs (b) to (d), special education aid paid to the
178.15resident district must be reduced by an amount equal to (1) the actual cost of providing
178.16special instruction and services to the pupil, including a proportionate amount for special
178.17transportation and unreimbursed building lease and debt service costs for facilities used
178.18primarily for special education, plus (2) the amount of general education revenue and
178.19referendum equalization aid attributable to that pupil, calculated using the resident district's
178.20average general education revenue and referendum equalization aid per adjusted pupil
178.21unit excluding basic skills revenue, elementary sparsity revenue and secondary sparsity
178.22revenue, minus (3) the amount of special education aid for children with a disability
178.23under section 125A.76 received on behalf of that child, minus (4) if the pupil receives
178.24special instruction and services outside the regular classroom for more than 60 percent
178.25of the school day, the amount of general education revenue and referendum equalization
178.26aid, excluding portions attributable to district and school administration, district support
178.27services, operations and maintenance, capital expenditures, and pupil transportation,
178.28attributable to that pupil for the portion of time the pupil receives special instruction
178.29and services outside of the regular classroom, calculated using the resident district's
178.30average general education revenue and referendum equalization aid per adjusted pupil unit
178.31excluding basic skills revenue, elementary sparsity revenue and secondary sparsity revenue
178.32and the serving district's basic skills revenue, elementary sparsity revenue and secondary
178.33sparsity revenue per adjusted pupil unit. Notwithstanding clauses (1) and (4), for pupils
178.34served by a cooperative unit without a fiscal agent school district, the general education
178.35revenue and referendum equalization aid attributable to a pupil must be calculated using
179.1the resident district's average general education revenue and referendum equalization aid
179.2excluding compensatory revenue, elementary sparsity revenue, and secondary sparsity
179.3revenue. Special education aid paid to the district or cooperative providing special
179.4instruction and services for the pupil must be increased by the amount of the reduction in
179.5the aid paid to the resident district. Amounts paid to cooperatives under this subdivision
179.6and section 127A.47, subdivision 7, shall be recognized and reported as revenues and
179.7expenditures on the resident school district's books of account under sections 123B.75
179.8and 123B.76. If the resident district's special education aid is insufficient to make the full
179.9adjustment, the remaining adjustment shall be made to other state aid due to the district.
179.10    (b) Notwithstanding paragraph (a) and section 127A.47, subdivision 7, paragraphs
179.11(b) to (d), a charter school where more than 30 percent of enrolled students receive special
179.12education and related services, a site approved under section 125A.515, an intermediate
179.13district, a special education cooperative, or a school district that served as the applicant
179.14agency for a group of school districts for federal special education aids for fiscal year
179.152006 may apply to the commissioner for authority to charge the resident district an
179.16additional amount to recover any remaining unreimbursed costs of serving pupils with
179.17a disability. The application must include a description of the costs and the calculations
179.18used to determine the unreimbursed portion to be charged to the resident district. Amounts
179.19approved by the commissioner under this paragraph must be included in the tuition billings
179.20or aid adjustments under paragraph (a), or section 127A.47, subdivision 7, paragraphs
179.21(b) to (d), as applicable.
179.22    (c) For purposes of this subdivision and section 127A.47, subdivision 7, paragraphs
179.23(d) and (e) paragraph (b), "general education revenue and referendum equalization aid"
179.24means the sum of the general education revenue according to section 126C.10, subdivision
179.251, excluding the local optional levy according to section 126C.10, subdivision 2e, paragraph
179.26(c), plus the referendum equalization aid according to section 126C.17, subdivision 7.
179.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
179.28and later.

179.29    Sec. 3. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 1, is
179.30amended to read:
179.31    Subdivision 1. Definitions. (a) For the purposes of this section and section 125A.79,
179.32the definitions in this subdivision apply.
179.33    (b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2.
179.34For the purposes of computing basic revenue pursuant to this section, each child with a
179.35disability shall be counted as prescribed in section 126C.05, subdivision 1.
180.1    (c) "Essential personnel" means teachers, cultural liaisons, related services, and
180.2support services staff providing services to students. Essential personnel may also include
180.3special education paraprofessionals or clericals providing support to teachers and students
180.4by preparing paperwork and making arrangements related to special education compliance
180.5requirements, including parent meetings and individualized education programs. Essential
180.6personnel does not include administrators and supervisors.
180.7    (d) "Average daily membership" has the meaning given it in section 126C.05.
180.8    (e) "Program growth factor" means 1.046 for fiscal years 2012 though through 2015,
180.91.0 for fiscal year 2016, 1.046 for fiscal year 2017, and the product of 1.046 and the
180.10program growth factor for the previous year for fiscal year 2018 and later.
180.11(f) "Nonfederal special education expenditure" means all direct expenditures that
180.12are necessary and essential to meet the district's obligation to provide special instruction
180.13and services to children with a disability according to sections 124D.454, 125A.03 to
180.14125A.24 , 125A.259 to 125A.48, and 125A.65 as submitted by the district and approved by
180.15the department under section 125A.75, subdivision 4, excluding expenditures:
180.16(1) reimbursed with federal funds;
180.17(2) reimbursed with other state aids under this chapter;
180.18(3) for general education costs of serving students with a disability;
180.19(4) for facilities;
180.20(5) for pupil transportation; and
180.21(6) for postemployment benefits.
180.22(g) "Old formula special education expenditures" means expenditures eligible for
180.23revenue under Minnesota Statutes 2012, section 125A.76, subdivision 2.
180.24    (h) For the Minnesota State Academy for the Deaf and the Minnesota State Academy
180.25for the Blind, expenditures under paragraphs (f) and (g) are limited to the salary and
180.26fringe benefits of one-to-one instructional and behavior management aides and one-to-one
180.27licensed, certified professionals assigned to a child attending the academy, if the aides or
180.28professionals are required by the child's individualized education program.
180.29(h) (i) "Cross subsidy reduction aid percentage" means 1.0 percent for fiscal year
180.302014 and 2.27 percent for fiscal year 2015.
180.31(i) (j) "Cross subsidy reduction aid limit" means $20 for fiscal year 2014 and $48
180.32for fiscal year 2015.
180.33(j) (k) "Special education aid increase limit" means $80 for fiscal year 2016, $100
180.34for fiscal year 2017, and, for fiscal year 2018 and later, the sum of the special education
180.35aid increase limit for the previous fiscal year and $40.
181.1EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
181.2and later.

181.3    Sec. 4. Minnesota Statutes 2012, section 125A.76, subdivision 2, is amended to read:
181.4    Subd. 2. Special education initial aid. The special education initial aid equals the
181.5sum of the following amounts computed using current year data:
181.6    (1) 68 percent of the salary of each essential person employed in the district's program
181.7for children with a disability during the fiscal year, whether the person is employed by one
181.8or more districts or a Minnesota correctional facility operating on a fee-for-service basis;
181.9    (2) for the Minnesota State Academy for the Deaf or the Minnesota State Academy
181.10for the Blind, 68 percent of the salary of each one to one one-to-one instructional and
181.11behavior management aide and one-to-one licensed, certified professional assigned to
181.12a child attending the academy, if the aides or professionals are required by the child's
181.13individualized education program;
181.14    (3) for special instruction and services provided to any pupil by contracting with
181.15public, private, or voluntary agencies other than school districts, in place of special
181.16instruction and services provided by the district, 52 percent of the difference between
181.17the amount of the contract and the general education revenue, excluding basic skills
181.18revenue and alternative teacher compensation revenue, and referendum equalization aid
181.19attributable to a pupil, calculated using the resident district's average general education
181.20revenue and referendum equalization aid per adjusted pupil unit for the fraction of the
181.21school day the pupil receives services under the contract. This includes children who
181.22are residents of the state, receive services under this subdivision and subdivision 1, and
181.23are placed in a care and treatment facility by court action in a state that does not have a
181.24reciprocity agreement with the commissioner under section 125A.155 as provided for in
181.25section 125A.79, subdivision 8;
181.26    (4) for special instruction and services provided to any pupil by contracting for
181.27services with public, private, or voluntary agencies other than school districts, that are
181.28supplementary to a full educational program provided by the school district, 52 percent of
181.29the amount of the contract for that pupil;
181.30    (5) for supplies and equipment purchased or rented for use in the instruction of
181.31children with a disability, an amount equal to 47 percent of the sum actually expended by
181.32the district, or a Minnesota correctional facility operating on a fee-for-service basis, but
181.33not to exceed an average of $47 in any one school year for each child with a disability
181.34receiving instruction;
182.1    (6) for fiscal years 1997 and later, special education base revenue shall include
182.2amounts under clauses (1) to (5) for special education summer programs provided during
182.3the base year for that fiscal year;
182.4    (7) the cost of providing transportation services for children with disabilities under
182.5section 123B.92, subdivision 1, paragraph (b), clause (4); and
182.6    (8) the district's transition-disabled program initial aid according to section
182.7124D.454, subdivision 3 .
182.8    The department shall establish procedures through the uniform financial accounting
182.9and reporting system to identify and track all revenues generated from third-party billings
182.10as special education revenue at the school district level; include revenue generated from
182.11third-party billings as special education revenue in the annual cross-subsidy report; and
182.12exclude third-party revenue from calculation of excess cost aid to the districts.
182.13EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
182.14and later.

182.15    Sec. 5. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2a, is
182.16amended to read:
182.17    Subd. 2a. Special education initial aid. For fiscal year 2016 and later, a district's
182.18special education initial aid equals the sum of:
182.19(1) the lesser least of 62 percent of the district's old formula special education
182.20expenditures for the prior fiscal year, excluding pupil transportation expenditures, 50
182.21percent of the district's nonfederal special education expenditures for the prior year,
182.22excluding pupil transportation expenditures, or 56 percent of the product of the sum of the
182.23following amounts, computed using prior fiscal year data, and the program growth factor:
182.24(i) the product of the district's average daily membership served and the sum of:
182.25(A) $450; plus
182.26(B) $400 times the ratio of the sum of the number of pupils enrolled on October 1
182.27who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
182.28who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
182.29(C) .008 times the district's average daily membership served; plus
182.30(ii) $10,400 times the December 1 child count for the primary disability areas of
182.31autism spectrum disorders, developmental delay, and severely multiply impaired; plus
182.32(iii) $18,000 times the December 1 child count for the primary disability areas of
182.33deaf and hard-of-hearing and emotional or behavioral disorders; plus
183.1(iv) $27,000 times the December 1 child count for the primary disability areas of
183.2developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
183.3physically impaired, visually impaired, and deafblind; plus
183.4(2) the cost of providing transportation services for children with disabilities under
183.5section 123B.92, subdivision 1, paragraph (b), clause (4).
183.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
183.7and later.

183.8    Sec. 6. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2b, is
183.9amended to read:
183.10    Subd. 2b. Cross subsidy reduction aid. For fiscal years 2014 and 2015, the cross
183.11subsidy reduction aid for a school district, not including a charter school, equals the
183.12lesser of (a) the product of the cross subsidy reduction aid limit and the district's average
183.13daily membership served or (b) the sum of the product of the cross subsidy reduction aid
183.14percentage, the district's average daily membership served, and the sum of:
183.15(1) $450; plus
183.16(2) $400 times the ratio of the sum of the number of pupils enrolled on October 1
183.17who are eligible to receive free lunch plus one-half of the pupils enrolled on October 1
183.18who are eligible to receive reduced-price lunch to the total October 1 enrollment; plus
183.19(3) .008 times the district's average daily membership served; plus the product of the
183.20cross subsidy aid percentage and the sum of:
183.21(i) $10,100 times the December 1 child count for the primary disability areas of
183.22autism spectrum disorders, developmental delay, and severely multiply impaired; plus
183.23(ii) $17,500 times the December 1 child count for the primary disability areas of
183.24deaf and hard-of-hearing and emotional or behavioral disorders; plus
183.25(iii) $26,000 times the December 1 child count for the primary disability areas of
183.26developmentally cognitive mild-moderate, developmentally cognitive severe-profound,
183.27physically impaired, visually impaired, and deafblind.
183.28EFFECTIVE DATE.This section is effective the day following final enactment
183.29and applies to revenue for fiscal year 2014 and later.

183.30    Sec. 7. Minnesota Statutes 2013 Supplement, section 125A.76, subdivision 2c, is
183.31amended to read:
183.32    Subd. 2c. Special education aid. (a) For fiscal year 2014 and fiscal year 2015, a
183.33district's special education aid equals the sum of the district's special education initial aid
184.1under subdivision 5, the district's cross subsidy reduction aid under subdivision 2b, and
184.2the district's excess cost aid under section 125A.79, subdivision 7.
184.3(b) For fiscal year 2016 and later, a district's special education aid equals the sum of
184.4the district's special education initial aid under subdivision 2a and the district's excess cost
184.5aid under section 125A.79, subdivision 5.
184.6(c) Notwithstanding paragraph (b), for fiscal year 2016, the special education aid for
184.7a school district must not exceed the sum of the special education aid the district would
184.8have received for fiscal year 2016 under Minnesota Statutes 2012, sections 125A.76
184.9and 125A.79, as adjusted according to Minnesota Statutes 2012, sections 125A.11 and
184.10127A.47, subdivision 7 , and the product of the district's average daily membership served
184.11and the special education aid increase limit.
184.12(d) Notwithstanding paragraph (b), for fiscal year 2017 and later, the special education
184.13aid for a school district must not exceed the sum of: (i) the product of the district's average
184.14daily membership served and the special education aid increase limit and (ii) the product
184.15of the sum of the special education aid the district would have received for fiscal year 2016
184.16under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted according
184.17to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the ratio of
184.18the district's average daily membership served for the current fiscal year to the district's
184.19average daily membership served for fiscal year 2016, and the program growth factor.
184.20(e) Notwithstanding paragraph (b), for fiscal year 2016 and later the special education
184.21aid for a school district, not including a charter school, must not be less than the lesser of
184.22(1) the district's nonfederal special education expenditures for that fiscal year or (2) the
184.23product of the sum of the special education aid the district would have received for fiscal
184.24year 2016 under Minnesota Statutes 2012, sections 125A.76 and 125A.79, as adjusted
184.25according to Minnesota Statutes 2012, sections 125A.11 and 127A.47, subdivision 7, the
184.26ratio of the district's adjusted daily membership for the current fiscal year to the district's
184.27average daily membership for fiscal year 2016, and the program growth factor.
184.28EFFECTIVE DATE.This section is effective the day following final enactment
184.29and applies to revenue for fiscal year 2014 and later.

184.30    Sec. 8. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 1, is
184.31amended to read:
184.32    Subdivision 1. Definitions. For the purposes of this section, the definitions in this
184.33subdivision apply.
184.34    (a) "Unreimbursed old formula special education expenditures" means:
184.35    (1) old formula special education expenditures for the prior fiscal year; minus
185.1    (2) for fiscal years 2014 and 2015, the sum of the special education aid under section
185.2125A.76, subdivision 5, for the prior fiscal year and the cross subsidy reduction aid under
185.3section 125A.76, subdivision 2b, and for fiscal year 2016 and later, the special education
185.4initial aid under section 125A.76, subdivision 2a; minus
185.5(3) the amount of general education revenue, excluding local optional revenue, plus
185.6local optional aid and referendum equalization aid for the prior fiscal year attributable
185.7to pupils receiving special instruction and services outside the regular classroom for
185.8more than 60 percent of the school day for the portion of time the pupils receive special
185.9instruction and services outside the regular classroom, excluding portions attributable to
185.10district and school administration, district support services, operations and maintenance,
185.11capital expenditures, and pupil transportation.
185.12(b) "Unreimbursed nonfederal special education expenditures" means:
185.13(1) nonfederal special education expenditures for the prior fiscal year; minus
185.14(2) special education initial aid under section 125A.76, subdivision 2a; minus
185.15(3) for fiscal year 2016 and later, the amount of general education revenue and
185.16referendum equalization aid for the prior fiscal year attributable to pupils receiving
185.17special instruction and services outside the regular classroom for more than 60 percent of
185.18the school day for the portion of time the pupils receive special instruction and services
185.19outside of the regular classroom, excluding portions attributable to district and school
185.20administration, district support services, operations and maintenance, capital expenditures,
185.21and pupil transportation.
185.22    (c) "General revenue" for a school district means the sum of the general education
185.23revenue according to section 126C.10, subdivision 1, excluding alternative teacher
185.24compensation revenue, minus transportation sparsity revenue minus, local optional
185.25revenue, and total operating capital revenue. "General revenue" for a charter school means
185.26the sum of the general education revenue according to section 124D.11, subdivision 1, and
185.27transportation revenue according to section 124D.11, subdivision 2, excluding alternative
185.28teacher compensation revenue, minus referendum equalization aid minus, transportation
185.29sparsity revenue minus, and operating capital revenue.
185.30EFFECTIVE DATE.This section is effective the day following final enactment
185.31and applies to revenue for fiscal year 2014 and later.

185.32    Sec. 9. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 5, is
185.33amended to read:
185.34    Subd. 5. Initial Excess cost aid. For fiscal year 2016 and later, a district's initial
185.35 excess cost aid equals the greater of:
186.1    (1) 56 percent of the difference between (i) the district's unreimbursed nonfederal
186.2special education expenditures and (ii) 7.0 percent of the district's general revenue;
186.3    (2) 62 percent of the difference between (i) the district's unreimbursed old formula
186.4special education expenditures and (ii) 2.5 percent of the district's general revenue; or
186.5    (3) zero.
186.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
186.7and later.

186.8    Sec. 10. Minnesota Statutes 2013 Supplement, section 125A.79, subdivision 8, is
186.9amended to read:
186.10    Subd. 8. Out-of-state tuition. For children who are residents of the state, receive
186.11services under section 125A.76, subdivisions 1 and 2, and are placed in a care and
186.12treatment facility by court action in a state that does not have a reciprocity agreement with
186.13the commissioner under section 125A.155, the resident school district shall submit the
186.14balance receive special education out-of-state tuition aid equal to the amount of the tuition
186.15bills, minus (1) the general education revenue, excluding basic skills revenue and the local
186.16optional levy attributable to the pupil, calculated using the resident district's average
186.17general education revenue per adjusted pupil unit, and (2) the referendum equalization aid
186.18attributable to the pupil, calculated using the resident district's average general education
186.19revenue and referendum equalization aid per adjusted pupil unit minus, and (3) the special
186.20education contracted services initial revenue aid attributable to the pupil.
186.21EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
186.22and later.

186.23    Sec. 11. Laws 2013, chapter 116, article 5, section 31, subdivision 8, is amended to read:
186.24    Subd. 8. Special education paperwork cost savings. (a) For the contract to
186.25customize a statewide online reporting system and effect special education paperwork
186.26cost savings:

186.27

$

1,763,000

.....

2014

186.28For a transfer to MNIT. This appropriation is available in fiscal year 2015 if not and
186.29must be expended according to this subdivision for online due process reporting.
186.30(b) To ensure a strong focus on outcomes for children with disabilities informs
186.31federal and state compliance and accountability requirements and to increase opportunities
186.32for special educators and related-services providers to focus on teaching children with
186.33disabilities, the commissioner must customize a streamlined, user-friendly statewide
187.1online system, with a single model online form, for effectively and efficiently collecting
187.2and reporting required special education-related data to individuals with a legitimate
187.3educational interest and who are authorized by law to access the data.
187.4(c) The commissioner must consult with qualified experts, including information
187.5technology specialists, licensed special education teachers and directors of special
187.6education, related-services providers, third-party vendors, a designee of the commissioner
187.7of human services, parents of children with disabilities, representatives of advocacy groups
187.8representing children with disabilities, and representatives of school districts and special
187.9education cooperatives on integrating, field testing, customizing, and sustaining this simple,
187.10easily accessible, efficient, and effective online data system for uniform statewide reporting
187.11of required due process compliance data. Among other outcomes, the system must:
187.12    (1) reduce special education teachers' paperwork burden and thereby increase the
187.13teachers' opportunities to focus on teaching children;
187.14(2) to the extent authorized by chapter 13 or other applicable state or federal law
187.15governing access to and dissemination of educational records, provide for efficiently
187.16and effectively transmitting the records of all transferring children with disabilities,
187.17including highly mobile and homeless children with disabilities, among others, and avoid
187.18fragmented service delivery;
187.19(3) address language and other barriers and disparities that prevent parents from
187.20understanding and communicating information about the needs of their children with
187.21disabilities; and
187.22(4) help continuously improve the interface among the online systems serving
187.23children with disabilities in order to maintain and reinforce the children's ability to learn.
187.24(d) The commissioner must use the federal Office of Special Education Programs
187.25model forms for the (1) individualized education program, (2) notice of procedural
187.26safeguards, and (3) prior written notice that are consistent with Part B of IDEA to integrate
187.27and customize a state-sponsored universal special education online case management
187.28system, consistent with the requirements of state law and this subdivision for customizing
187.29a statewide online reporting system. The commissioner must use a request for proposal
187.30process to contract for the technology and software needed for customizing the online
187.31system in order for the system to be fully functional, consistent with the requirements of
187.32this subdivision. This online system must be made available to school districts without
187.33charge beginning in the 2015-2016 school year. For the 2015-2016 through 2017-2018
187.34school years, school districts may use this online system or may contract with an outside
187.35vendor for compliance reporting. Beginning in the 2018-2019 school year and later,
187.36school districts must use this online system for compliance reporting.
188.1(e) All data on individuals maintained in the statewide reporting system are
188.2classified as provided in chapter 13 or other applicable state or federal law. An authorized
188.3individual's ability to enter, update, or access data must be limited through the use of
188.4role-based access codes corresponding to that individual's official duties or training level,
188.5and the statutory authorization that grants access for a particular purpose. Any action
188.6in which data in the system are entered, updated, accessed, or shared or disseminated
188.7outside of the system must be recorded in an audit trail. The audit trail must identify the
188.8specific user responsible for the action, the date and time the action occurred, and the
188.9purpose for the action. Data contained in the audit trail maintain the same classification
188.10as the underlying data affected by the action, provided the responsible authority makes
188.11the data available to a student or the student's parent upon request, and the responsible
188.12authority may access the data to audit the system's user activity and security safeguards.
188.13Before entering data on a student, the responsible authority must provide the student or the
188.14student's parent written notice of the data practices rights and responsibilities required by
188.15this subdivision and a reasonable opportunity to refuse consent to have the student's data
188.16included in the system. Upon receiving the student or the student's parent written refusal
188.17to consent, the school district must not enter data on that student into the system and must
188.18delete any existing data on that student currently in the system.
188.19(f) Consistent with this subdivision, the commissioner must establish a public
188.20Internet Web interface to provide information to educators, parents, and the public about
188.21the form and content of required special education reports, to respond to queries from
188.22educators, parents, and the public about specific aspects of special education reports
188.23and reporting, and to use the information garnered from the interface to streamline and
188.24revise special education reporting on the online system under this subdivision. The public
188.25Internet Web interface must have a prominently-linked page describing the rights and
188.26responsibilities of students and parents whose data are included in the statewide reporting
188.27system, and include information on the data practices rights of students and parents
188.28provided by this subdivision and a form students or parents may use to refuse consent to
188.29have a student's data included in the system. The public Internet Web interface must not
188.30provide access to the educational records of any individual child.
188.31(g) The commissioner annually by February 1 must submit to the legislature a report
188.32on the status, recent changes, and sustainability of the online system under this subdivision.
188.33EFFECTIVE DATE.This section is effective the day following final enactment.

188.34    Sec. 12. RULEMAKING AUTHORITY; SPECIAL EDUCATION TASK FORCE
188.35RECOMMENDATIONS.
189.1The commissioner of education must use the expedited rulemaking process under
189.2Minnesota Statutes, section 14.389, including subdivision 5, to make the specific rule
189.3changes recommended by the Special Education Case Load and Rule Alignment Task
189.4Force in its 2014 report entitled "Recommendations for Special Education Case Load and
189.5Rule Alignment" submitted to the legislature on February 15, 2014.
189.6EFFECTIVE DATE.This section is effective the day following final enactment.

189.7    Sec. 13. APPROPRIATION.
189.8    Subdivision 1. Department of Education. The sums indicated in this section are
189.9appropriated from the general fund to the Department of Education for the fiscal years
189.10designated.
189.11    Subd. 2. Department assistance. For the commissioner of education to assist
189.12school districts in meeting the needs of children who have experienced a high use of prone
189.13restraints, consistent with Minnesota Statutes 2013 Supplement, section 125A.0942:

189.14

$

250,000

.....

2015

189.15The commissioners of education and human services, or their designees, must
189.16discuss coordinating use of funds and personnel available for this purpose within their
189.17respective departments. This is a onetime appropriation.


189.20    Section 1. [123A.482] JOINT POWERS COOPERATIVE FACILITY.
189.21    Subdivision 1. Schools may be jointly operated. Two or more school districts may
189.22agree to jointly operate a secondary facility. The districts may choose to operate the
189.23facility according to a joint powers agreement under section 123A.78 or 471.59.
189.24    Subd. 2. Expanded program offerings. A jointly operated secondary program
189.25seeking funding under section 123A.485 must demonstrate to the commissioner's
189.26satisfaction that the jointly operated program provides enhanced learning opportunities and
189.27broader curriculum offerings to the students attending that program. The commissioner
189.28must approve or disapprove a cooperative secondary program within 60 days of receipt of
189.29an application.
189.30    Subd. 3. Transfer of employees. If an employee is transferred between two
189.31employer members of the joint powers agreement under this section, the employee's
189.32length of service under section 122A.40, subdivision 5, remains uninterrupted. The
190.1employee shall receive credit on the receiving district's salary schedule for the employee's
190.2educational attainment and years of continuous service in the sending district, or shall
190.3receive a comparable salary, whichever is greater. The employee shall receive credit for
190.4accrued sick leave and rights to severance benefits as if the employee had been employed
190.5by the receiving district during the employee's years of employment in the sending district.
190.6    Subd. 4. Revenue. An approved program that is jointly operated under this section
190.7is eligible for aid under section 123A.485 and qualifies for a facilities grant under sections
190.8123A.44 to 123A.446.
190.9    Subd. 5. Duty to maintain elementary and secondary schools met. A school
190.10district operating a joint facility under this section meets the requirements of section
190.11123A.64.
190.12    Subd. 6. Estimated market value limit exclusion. Bonds for a cooperative facility
190.13operated under this section issued by a member school district are not subject to the net
190.14debt limit under section 475.53, subdivision 4.
190.15    Subd. 7. Allocation of levy authority for joint facility. For purposes of determining
190.16each member district's school levy, a jointly operated secondary program may allocate
190.17program costs to each member district according to the joint powers agreement and each
190.18member district may include those costs in its tax levy. The joint powers agreement may
190.19choose to allocate costs on any basis adopted as part of the joint powers agreement.
190.20    Subd. 8. Effect of consolidation. The joint powers agreement may allow member
190.21school districts that choose to consolidate to continue to certify levies separately based on
190.22each component district's characteristics.
190.23    Subd. 9. Bonds. A joint powers district formed under this section may issue bonds
190.24according to section 123A.78 or its member districts may issue bonds individually after
190.25complying with this subdivision. The joint powers board must submit the project for
190.26review and comment under section 123B.71. The joint powers board must hold a hearing
190.27on the proposal. If the bonds are not issued under section 123A.78, each member district
190.28of the joint powers district must submit the question of authorizing borrowing of funds for
190.29the project to the voters of the district at a special election. The question submitted shall
190.30state the total amount of funding needed from that district. The member district may issue
190.31the bonds according to chapter 475 and certify the levy required by section 475.61 only if
190.32a majority of those voting on the question in that district vote in the affirmative and only
190.33after the board has adopted a resolution pledging the full faith and credit of that unit. The
190.34resolution must irrevocably commit that unit to pay an agreed-upon share of any debt levy
190.35shortages that, together with other funds available, would allow the member school board
190.36to pay the principal and interest on the obligations. The clerk of the joint powers board
191.1must certify the vote of any bond elections to the commissioner. Bonds issued under this
191.2section first qualify for debt service equalization aid in fiscal year 2018.
191.3    Subd. 10. Election. A district entering into a joint powers agreement under this
191.4section may conduct a referendum seeking approval for a new facility. This election may
191.5be held separately or at the same time as a bond election under subdivision 9. If the
191.6election is held at the same time, the questions may be asked separately or as a conjunctive
191.7question. The question must be approved by a majority of those voting on the question.
191.8If asked separately and the question fails, a district may not proceed with the sale of
191.9bonds according to subdivision 9.
191.10EFFECTIVE DATE.This section is effective the day following final enactment.

191.11    Sec. 2. Minnesota Statutes 2012, section 123A.485, is amended to read:
191.12123A.485 CONSOLIDATION TRANSITION REVENUE AID.
191.13    Subdivision 1. Eligibility and use. A district that operates a cooperative facility
191.14under section 123A.482 or that has been reorganized after June 30, 1994, under section
191.15123A.48 is eligible for consolidation transition revenue. Revenue is equal to the sum of
191.16 aid under subdivision 2 and levy under subdivision 3. Consolidation transition revenue
191.17 aid may only be used according to this section. Revenue must be used for the following
191.18purposes and may be distributed among these purposes at the discretion of the district or
191.19the governing board of the cooperative facility:
191.20(1) to offer early retirement incentives as provided by section 123A.48, subdivision
191.2123 ;
191.22(2) to reduce operating debt as defined in section 123B.82;
191.23(3) to enhance learning opportunities for students in the reorganized district; and
191.24(4) to repay building debt; or
191.25(5) for other costs incurred in the reorganization.
191.26Revenue received and utilized under clause (3) or (4) (5) may be expended for
191.27operating, facilities, and/or equipment.
191.28    Subd. 2. Aid. (a) Consolidation transition aid is equal to $200 $300 times the
191.29number of resident adjusted pupil units in the newly created cooperative facility under
191.30section 123A.482 or the consolidated district in the year of consolidation and $100 times
191.31the number of resident pupil units in the first year following the year of consolidation
191.32 under section 123A.48. The number of pupil units used to calculate aid in either year
191.33shall not exceed 1,000 for districts consolidating July 1, 1994, and 1,500 for districts
192.1consolidating July 1, 1995, and thereafter A district may receive aid under this section for
192.2not more than five years except as provided in subdivision 4.
192.3(b) If the total appropriation for consolidation transition aid for any fiscal year, plus
192.4any amount transferred under section 127A.41, subdivision 8, is insufficient to pay all
192.5districts the full amount of aid earned, the department must first pay the districts in the first
192.6year following the year of consolidation the full amount of aid earned and distribute any
192.7remaining funds to the newly created districts in the first year of consolidation.
192.8    Subd. 3. Levy. If the aid available in subdivision 2 is insufficient to cover the costs
192.9of the district under section 123A.48, subdivision 23, the district may levy the difference
192.10over a period of time not to exceed three years.
192.11    Subd. 4. New districts. If a district enters into a cooperative secondary facilities
192.12program or consolidates with another district that has received aid under section 123A.39,
192.13subdivision 3 , or 123A.485 for a combination or consolidation taking effect within
192.14six years of the effective date of the new consolidation or the start of the cooperative
192.15secondary facilities program, only the pupil units in the district or districts not previously
192.16 cooperating or reorganized must be counted for aid purposes under subdivision 2. If
192.17two or more districts consolidate and all districts received aid under subdivision 2 for a
192.18consolidation taking effect within six years of the effective date of the new consolidation,
192.19only one quarter of the pupil units in the newly created district must be used to determine
192.20aid under subdivision 2.
192.21EFFECTIVE DATE.This section is effective for state aid for fiscal year 2017
192.22and later.

192.23    Sec. 3. Minnesota Statutes 2012, section 123A.64, is amended to read:
192.24123A.64 DUTY TO MAINTAIN ELEMENTARY AND SECONDARY
192.25SCHOOLS.
192.26Each district must maintain classified elementary and secondary schools, grades 1
192.27through 12, unless the district is exempt according to section 123A.61 or 123A.62, has
192.28made an agreement with another district or districts as provided in sections 123A.30,
192.29123A.32 , or sections 123A.35 to 123A.43, or 123A.17, subdivision 7, or has received a
192.30grant under sections 123A.441 to 123A.446, or has formed a cooperative under section
192.31123A.482. A district that has an agreement according to sections 123A.35 to 123A.43 or
192.32123A.32 must operate a school with the number of grades required by those sections. A
192.33district that has an agreement according to section 123A.30 or 123A.17, subdivision 7, or
193.1has received a grant under sections 123A.441 to 123A.446 must operate a school for the
193.2grades not included in the agreement, but not fewer than three grades.

193.3    Sec. 4. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 1, is
193.4amended to read:
193.5    Subdivision 1. Definitions. (a) For purposes of this section, the eligible debt service
193.6revenue of a district is defined as follows:
193.7    (1) the amount needed to produce between five and six percent in excess of the
193.8amount needed to meet when due the principal and interest payments on the obligations
193.9of the district for eligible projects according to subdivision 2, including the amounts
193.10necessary for repayment of energy loans according to section 216C.37 or sections 298.292
193.11to 298.298, debt service loans and capital loans, lease purchase payments under section
193.12126C.40, subdivision 2 , alternative facilities levies under section 123B.59, subdivision
193.135 , paragraph (a), minus
193.14    (2) the amount of debt service excess levy reduction for that school year calculated
193.15according to the procedure established by the commissioner.
193.16    (b) The obligations in this paragraph are excluded from eligible debt service revenue:
193.17    (1) obligations under section 123B.61;
193.18    (2) the part of debt service principal and interest paid from the taconite environmental
193.19protection fund or Douglas J. Johnson economic protection trust, excluding the portion of
193.20taconite payments from the Iron Range school consolidation and cooperatively operated
193.21school account under section 298.28, subdivision 7a;
193.22    (3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as
193.23amended by Laws 1992, chapter 499, article 5, section 24; and
193.24    (4) obligations under section 123B.62; and
193.25    (5) obligations equalized under section 123B.535.
193.26    (c) For purposes of this section, if a preexisting school district reorganized under
193.27sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement
193.28of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt
193.29service equalization aid must be computed separately for each of the preexisting districts.
193.30    (d) For purposes of this section, the adjusted net tax capacity determined according
193.31to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
193.32generally exempted from ad valorem taxes under section 272.02, subdivision 64.
193.33EFFECTIVE DATE.This section is effective for fiscal year 2017 and later.

194.1    Sec. 5. Minnesota Statutes 2013 Supplement, section 123B.53, subdivision 5, is
194.2amended to read:
194.3    Subd. 5. Equalized debt service levy. (a) The equalized debt service levy of a
194.4district equals the sum of the first tier equalized debt service levy and the second tier
194.5equalized debt service levy.
194.6(b) A district's first tier equalized debt service levy equals the district's first tier debt
194.7service equalization revenue times the lesser of one or the ratio of:
194.8(1) the quotient derived by dividing the adjusted net tax capacity of the district for
194.9the year before the year the levy is certified by the adjusted pupil units in the district for
194.10the school year ending in the year prior to the year the levy is certified; to
194.11(2) $3,550 $4,970.
194.12(c) A district's second tier equalized debt service levy equals the district's second tier
194.13debt service equalization revenue times the lesser of one or the ratio of:
194.14(1) the quotient derived by dividing the adjusted net tax capacity of the district for
194.15the year before the year the levy is certified by the adjusted pupil units in the district for
194.16the school year ending in the year prior to the year the levy is certified; to
194.17(2) $7,900 $8,000.
194.18EFFECTIVE DATE.This section is effective for revenue for fiscal year 2016
194.19and later.

194.20    Sec. 6. [123B.535] NATURAL DISASTER DEBT SERVICE EQUALIZATION.
194.21    Subdivision 1. Definitions. (a) For purposes of this section, the eligible natural
194.22disaster debt service revenue of a district is defined as the amount needed to produce
194.23between five and six percent in excess of the amount needed to meet when due the
194.24principal and interest payments on the obligations of the district that would otherwise
194.25qualify under section 123B.53 under the following conditions:
194.26(1) the district was impacted by a natural disaster event or area occurring January
194.271, 2005, or later, as declared by the President of the United States of America, which is
194.28eligible for Federal Emergency Management Agency payments;
194.29(2) the natural disaster caused $500,000 or more in damages to school district
194.30buildings; and
194.31(3) the repair and replacement costs are not covered by insurance payments or
194.32Federal Emergency Management Agency payments.
194.33(b) For purposes of this section, the adjusted net tax capacity equalizing factor
194.34equals the quotient derived by dividing the total adjusted net tax capacity of all school
195.1districts in the state for the year before the year the levy is certified by the total number of
195.2adjusted pupil units in the state for the year prior to the year the levy is certified.
195.3    (c) For purposes of this section, the adjusted net tax capacity determined according
195.4to sections 127A.48 and 273.1325 shall be adjusted to include the tax capacity of property
195.5generally exempted from ad valorem taxes under section 272.02, subdivision 64.
195.6    Subd. 2. Notification. A district eligible for natural disaster debt service
195.7equalization revenue under subdivision 1 must notify the commissioner of the amount of
195.8its intended natural disaster debt service revenue calculated under subdivision 1 for all
195.9bonds sold prior to the notification by July 1 of the calendar year the levy is certified.
195.10    Subd. 3. Natural disaster debt service equalization revenue. The debt service
195.11equalization revenue of a district equals the greater of zero or the eligible debt service
195.12revenue, minus the greater of zero or the difference between:
195.13(1) the amount raised by a levy of ten percent times the adjusted net tax capacity
195.14of the district; and
195.15(2) the district's eligible debt service revenue under section 123B.53.
195.16    Subd. 4. Equalized natural disaster debt service levy. A district's equalized
195.17natural disaster debt service levy equals the district's natural disaster debt service
195.18equalization revenue times the lesser of one or the ratio of:
195.19(1) the quotient derived by dividing the adjusted net tax capacity of the district for
195.20the year before the year the levy is certified by the adjusted pupil units in the district for
195.21the school year ending in the year prior to the year the levy is certified; to
195.22(2) 300 percent of the statewide adjusted net tax capacity equalizing factor.
195.23    Subd. 5. Natural disaster debt service equalization aid. A district's natural
195.24disaster debt service equalization aid equals the difference between the district's natural
195.25disaster debt service equalization revenue and the district's equalized natural disaster
195.26debt service levy.
195.27    Subd. 6. Natural disaster debt service equalization aid payment schedule. Debt
195.28service equalization aid must be paid according to section 127A.45, subdivision 10.
195.29EFFECTIVE DATE.This section is effective for taxes payable in 2016 and
195.30revenue for fiscal year 2017 and later.

195.31    Sec. 7. Minnesota Statutes 2013 Supplement, section 123B.54, is amended to read:
195.32123B.54 DEBT SERVICE APPROPRIATION.
196.1    (a) The amount necessary to make debt service equalization aid payments under
196.2section sections 123B.53 and 123B.535 is annually appropriated from the general fund to
196.3the commissioner of education.
196.4    (b) The appropriations in paragraph (a) must be reduced by the amount of any
196.5money specifically appropriated for the same purpose in any year from any state fund.
196.6EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
196.7and later.

196.8    Sec. 8. Minnesota Statutes 2012, section 123B.57, subdivision 6, is amended to read:
196.9    Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may be
196.10used only for approved expenditures necessary for the correction of fire and life safety
196.11hazards; design, purchase, installation, maintenance, and inspection of fire protection and
196.12alarm equipment; purchase or construction of appropriate facilities for the storage of
196.13combustible and flammable materials; inventories and facility modifications not related
196.14to a remodeling project to comply with lab safety requirements under section 121A.31;
196.15inspection, testing, repair, removal or encapsulation, and disposal of asbestos-containing
196.16building materials; cleanup and disposal of polychlorinated biphenyls; cleanup and
196.17disposal of hazardous and infectious wastes; cleanup, removal, disposal, and repairs
196.18related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel oil,
196.19and special fuel, as defined in section 296A.01; correction of occupational safety and
196.20health administration regulated hazards; indoor air quality inspections, investigations, and
196.21testing; mold abatement; upgrades or replacement of mechanical ventilation systems
196.22to meet American Society of Heating, Refrigerating and Air Conditioning Engineers
196.23standards and State Mechanical Code; design, materials, and installation of local exhaust
196.24ventilation systems, including required make-up air for controlling regulated hazardous
196.25substances; correction of Department of Health Food Code violations; correction of
196.26swimming pool hazards excluding depth correction; playground safety inspections,
196.27repair of unsafe outdoor playground equipment, and the installation of impact surfacing
196.28materials; bleacher repair or rebuilding to comply with the order of a building code
196.29inspector under section 326B.112; testing and mitigation of elevated radon hazards; lead
196.30testing; copper in water testing; cleanup after major weather-related disasters or flooding;
196.31reduction of excessive organic and inorganic levels in wells and capping of abandoned
196.32wells; installation and testing of boiler backflow valves to prevent contamination of
196.33potable water; vaccinations, titers, and preventative supplies for bloodborne pathogen
196.34compliance; costs to comply with the Janet B. Johnson Parents' Right to Know Act;
196.35automated external defibrillators and other emergency plan equipment and supplies
197.1specific to the district's emergency action plan; compliance with the National Emission
197.2Standards for Hazardous Air Pollutants for school generators established by the
197.3United States Environmental Protection Agency; and health, safety, and environmental
197.4management costs associated with implementing the district's health and safety program
197.5including costs to establish and operate safety committees, in school buildings or property
197.6owned or being acquired by the district. Testing and calibration activities are permitted for
197.7existing mechanical ventilation systems at intervals no less than every five years.
197.8(b) For fiscal years 2014 through 2017, a school district must not include expenses
197.9related to emission compliance projects for school generators in its health and safety
197.10revenue unless it reduces its approved spending on other qualified health and safety
197.11projects by the same amount.
197.12EFFECTIVE DATE.This section is effective the day following final enactment.

197.13    Sec. 9. Minnesota Statutes 2012, section 123B.71, subdivision 8, is amended to read:
197.14    Subd. 8. Review and comment. A school district, a special education cooperative,
197.15or a cooperative unit of government, as defined in section 123A.24, subdivision 2, must not
197.16initiate an installment contract for purchase or a lease agreement, hold a referendum for
197.17bonds, nor solicit bids for new construction, expansion, or remodeling of an educational
197.18facility that requires an expenditure in excess of $500,000 per school site if it has a capital
197.19loan outstanding, or $1,400,000 $2,000,000 per school site if it does not have a capital
197.20loan outstanding, prior to review and comment by the commissioner. The commissioner
197.21may exempt A facility addition, maintenance project, or remodeling project funded only
197.22with general education aid and levy revenue, deferred maintenance revenue, alternative
197.23facilities bonding and levy program revenue, lease levy proceeds, capital facilities bond
197.24proceeds, or health and safety revenue is exempt from this provision after reviewing a
197.25written request from a school district describing the scope of work. A capital project under
197.26section 123B.63 addressing only technology is exempt from this provision if the district
197.27submits a school board resolution stating that funds approved by the voters will be used
197.28only as authorized in section 126C.10, subdivision 14. A school board shall not separate
197.29portions of a single project into components to avoid the requirements of this subdivision.

197.30    Sec. 10. Minnesota Statutes 2012, section 123B.71, subdivision 9, is amended to read:
197.31    Subd. 9. Information required. A school board proposing to construct, expand,
197.32or remodel a facility described in that requires a review and comment under subdivision
197.338 shall submit to the commissioner a proposal containing information including at least
197.34the following:
198.1(1) the geographic area and population to be served, preschool through grade 12
198.2student enrollments for the past five years, and student enrollment projections for the
198.3next five years;
198.4(2) a list of existing facilities by year constructed, their uses, and an assessment of
198.5the extent to which alternate facilities are available within the school district boundaries
198.6and in adjacent school districts;
198.7(3) a list of the specific deficiencies of the facility that demonstrate the need for a
198.8new or renovated facility to be provided, the process used to determine the deficiencies, a
198.9list of those deficiencies that will and will not be addressed by the proposed project, and a
198.10list of the specific benefits that the new or renovated facility will provide to the students,
198.11teachers, and community users served by the facility;
198.12(4) the relationship of the project to any priorities established by the school district,
198.13educational cooperatives that provide support services, or other public bodies in the
198.14service area;
198.15(5) a description of the pedestrian, bicycle, and transit connections between the
198.16school and nearby residential areas that make it easier for children, teachers, and parents
198.17to get to the school by walking, bicycling, and taking transit;
198.18(6) a specification of how the project maximizes the opportunity for cooperative use
198.19of existing park, recreation, and other public facilities and whether and how the project
198.20will increase collaboration with other governmental or nonprofit entities;
198.21(7) (4) a description of the project, including the specification of site and outdoor
198.22space acreage and square footage allocations for classrooms, laboratories, and support
198.23spaces; estimated expenditures for the major portions of the project; and the dates the
198.24project will begin and be completed;
198.25(8) (5) a specification of the source of financing the project, including applicable
198.26statutory citations; the scheduled date for a bond issue or school board action; a schedule
198.27of payments, including debt service equalization aid; and the effect of a bond issue on
198.28local property taxes by the property class and valuation;
198.29(9) an analysis of how the proposed new or remodeled facility will affect school
198.30district operational or administrative staffing costs, and how the district's operating budget
198.31will cover any increased operational or administrative staffing costs;
198.32(10) a description of the consultation with local or state transportation officials
198.33on multimodal school site access and safety issues, and the ways that the project will
198.34address those issues;
199.1(11) a description of how indoor air quality issues have been considered and a
199.2certification that the architects and engineers designing the facility will have professional
199.3liability insurance;
199.4(12) as required under section 123B.72, for buildings coming into service after July 1,
199.52002, a certification that the plans and designs for the extensively renovated or new facility's
199.6heating, ventilation, and air conditioning systems will meet or exceed code standards; will
199.7provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and
199.8will provide an indoor air quality filtration system that meets ASHRAE standard 52.1;
199.9(13) a specification of any desegregation requirements that cannot be met by any
199.10other reasonable means;
199.11(14) a specification of how the facility will utilize environmentally sustainable
199.12school facility design concepts;
199.13(15) a description of how the architects and engineers have considered the American
199.14National Standards Institute Acoustical Performance Criteria, Design Requirements
199.15and Guidelines for Schools of the maximum background noise level and reverberation
199.16times; and
199.17    (16) any existing information from the relevant local unit of government about the
199.18cumulative costs to provide infrastructure to serve the school, such as utilities, sewer,
199.19roads, and sidewalks.
199.20    (6) documents obligating the school district and contractors to comply with items (i)
199.21to (vii) in planning and executing the project:
199.22    (i) section 471.346 governing municipal contracts;
199.23    (ii) sustainable design;
199.24    (iii) school facility commissioning under section 123B.72 certifying the plans and
199.25designs for the heating, ventilating, air conditioning, and air filtration for an extensively
199.26renovated or new facility meet or exceed current code standards, including the ASHRAE
199.27air filtration standard 52.1;
199.28    (iv) American National Standards Institute Acoustical Performance Criteria, Design
199.29Requirements and Guidelines for Schools on maximum background noise level and
199.30reverberation times;
199.31    (v) State Fire Code;
199.32    (vi) chapter 326B governing building codes; and
199.33    (vii) consultation with affected government units about the impact of the project
199.34on utilities, roads, sewers, sidewalks, retention ponds, school bus and automobile traffic,
199.35access to mass transit, and safe access for pedestrians and cyclists.

200.1    Sec. 11. Minnesota Statutes 2013 Supplement, section 126C.10, subdivision 2d,
200.2is amended to read:
200.3    Subd. 2d. Declining enrollment revenue. (a) A school district's declining
200.4enrollment revenue equals the greater of zero or the product of: (1) 28 percent of the
200.5formula allowance for that year and (2) the difference between the adjusted pupil units for
200.6the preceding year and the adjusted pupil units for the current year.
200.7(b) Notwithstanding paragraph (a), for fiscal years 2015, 2016, and 2017 only, a pupil
200.8enrolled at the Crosswinds school shall not generate declining enrollment revenue for the
200.9district or charter school in which the pupil was last counted in average daily membership.

200.10    Sec. 12. Minnesota Statutes 2013 Supplement, section 126C.48, subdivision 8, is
200.11amended to read:
200.12    Subd. 8. Taconite payment and other reductions. (1) Reductions in levies
200.13pursuant to subdivision 1 must be made prior to the reductions in clause (2).
200.14(2) Notwithstanding any other law to the contrary, districts that have revenue
200.15pursuant to sections 298.018; 298.225; 298.24 to 298.28, except an amount distributed
200.16under sections 298.26; 298.28, subdivision 4, paragraphs (c), clause (ii), and (d); 298.34
200.17to 298.39; 298.391 to 298.396; 298.405; 477A.15; and any law imposing a tax upon
200.18severed mineral values must reduce the levies authorized by this chapter and chapters
200.19120B, 122A, 123A, 123B, 124A, 124D, 125A, and 127A by 95 percent of the sum of the
200.20previous year's revenue specified under this clause and the amount attributable to the same
200.21production year distributed to the cities and townships within the school district under
200.22section 298.28, subdivision 2, paragraph (c).
200.23(3) The amount of any voter approved referendum, facilities down payment, and
200.24debt levies shall not be reduced by more than 50 percent under this subdivision, except
200.25that payments under section 298.28, subdivision 7a, may reduce the debt service levy by
200.26more than 50 percent. In administering this paragraph, the commissioner shall first reduce
200.27the nonvoter approved levies of a district; then, if any payments, severed mineral value
200.28tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
200.29reduce any voter approved referendum levies authorized under section 126C.17; then, if
200.30any payments, severed mineral value tax revenue or recognized revenue under paragraph
200.31(2) remains, the commissioner shall reduce any voter approved facilities down payment
200.32levies authorized under section 123B.63 and then, if any payments, severed mineral value
200.33tax revenue or recognized revenue under paragraph (2) remains, the commissioner shall
200.34reduce any voter approved debt levies.
201.1(4) Before computing the reduction pursuant to this subdivision of the health and
201.2safety levy authorized by sections 123B.57 and 126C.40, subdivision 5, the commissioner
201.3shall ascertain from each affected school district the amount it proposes to levy under
201.4each section or subdivision. The reduction shall be computed on the basis of the amount
201.5so ascertained.
201.6(5) To the extent the levy reduction calculated under paragraph (2) exceeds the
201.7limitation in paragraph (3), an amount equal to the excess must be distributed from the
201.8school district's distribution under sections 298.225, 298.28, and 477A.15 in the following
201.9year to the cities and townships within the school district in the proportion that their
201.10taxable net tax capacity within the school district bears to the taxable net tax capacity of
201.11the school district for property taxes payable in the year prior to distribution. No city or
201.12township shall receive a distribution greater than its levy for taxes payable in the year prior
201.13to distribution. The commissioner of revenue shall certify the distributions of cities and
201.14towns under this paragraph to the county auditor by September 30 of the year preceding
201.15distribution. The county auditor shall reduce the proposed and final levies of cities and
201.16towns receiving distributions by the amount of their distribution. Distributions to the cities
201.17and towns shall be made at the times provided under section 298.27.

201.18    Sec. 13. Minnesota Statutes 2012, section 127A.49, subdivision 2, is amended to read:
201.19    Subd. 2. Abatements. Whenever by virtue of chapter 278, sections 270C.86,
201.20375.192 , or otherwise, the net tax capacity or referendum market value of any district for
201.21any taxable year is changed after the taxes for that year have been spread by the county
201.22auditor and the local tax rate as determined by the county auditor based upon the original
201.23net tax capacity is applied upon the changed net tax capacities, the county auditor shall,
201.24prior to February 1 of each year, certify to the commissioner of education the amount of
201.25any resulting net revenue loss that accrued to the district during the preceding year. Each
201.26year, the commissioner shall pay an abatement adjustment to the district in an amount
201.27calculated according to the provisions of this subdivision. This amount shall be deducted
201.28from the amount of the levy authorized by section 126C.46. The amount of the abatement
201.29adjustment must be the product of:
201.30    (1) the net revenue loss as certified by the county auditor, times
201.31    (2) the ratio of:
201.32    (i) the sum of the amounts of the district's certified levy in the third preceding year
201.33according to the following:
201.34    (A) section 123B.57, if the district received health and safety aid according to that
201.35section for the second preceding year;
202.1    (B) section 124D.20, if the district received aid for community education programs
202.2according to that section for the second preceding year;
202.3    (C) section 124D.135, subdivision 3, if the district received early childhood family
202.4education aid according to section 124D.135 for the second preceding year;
202.5    (D) section 126C.17, subdivision 6, if the district received referendum equalization
202.6aid according to that section for the second preceding year;
202.7    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
202.8according to section 126C.10, subdivision 13b, in the second preceding year;
202.9    (F) section 126C.10, subdivision 29, if the district received equity aid according to
202.10section 126C.10, subdivision 30, in the second preceding year;
202.11    (G) section 126C.10, subdivision 32, if the district received transition aid according
202.12to section 126C.10, subdivision 33, in the second preceding year;
202.13    (H) section 123B.53, subdivision 5, if the district received debt service equalization
202.14aid according to section 123B.53, subdivision 6, in the second preceding year;
202.15    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
202.16service equalization aid according to section 123B.535, subdivision 5, in the second
202.17preceding year;
202.18    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
202.19according to section 124D.22, subdivision 4, in the second preceding year;
202.20    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
202.21aid according to section 123B.591, subdivision 4, in the second preceding year; and
202.22    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
202.23compensation equalization aid according to section 126C.10, subdivision 36, paragraph
202.24(a), in the second preceding year; to
202.25    (ii) the total amount of the district's certified levy in the third preceding December,
202.26plus or minus auditor's adjustments.
202.27EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
202.28and later.

202.29    Sec. 14. Minnesota Statutes 2012, section 127A.49, subdivision 3, is amended to read:
202.30    Subd. 3. Excess tax increment. (a) If a return of excess tax increment is made to a
202.31district pursuant to sections 469.176, subdivision 2, and 469.177, subdivision 9, or upon
202.32decertification of a tax increment district, the school district's aid and levy limitations
202.33must be adjusted for the fiscal year in which the excess tax increment is paid under the
202.34provisions of this subdivision.
203.1    (b) An amount must be subtracted from the district's aid for the current fiscal year
203.2equal to the product of:
203.3    (1) the amount of the payment of excess tax increment to the district, times
203.4    (2) the ratio of:
203.5    (i) the sum of the amounts of the district's certified levy for the fiscal year in which
203.6the excess tax increment is paid according to the following:
203.7    (A) section 123B.57, if the district received health and safety aid according to that
203.8section for the second preceding year;
203.9    (B) section 124D.20, if the district received aid for community education programs
203.10according to that section for the second preceding year;
203.11    (C) section 124D.135, subdivision 3, if the district received early childhood family
203.12education aid according to section 124D.135 for the second preceding year;
203.13    (D) section 126C.17, subdivision 6, if the district received referendum equalization
203.14aid according to that section for the second preceding year;
203.15    (E) section 126C.10, subdivision 13a, if the district received operating capital aid
203.16according to section 126C.10, subdivision 13b, in the second preceding year;
203.17    (F) section 126C.10, subdivision 29, if the district received equity aid according to
203.18section 126C.10, subdivision 30, in the second preceding year;
203.19    (G) section 126C.10, subdivision 32, if the district received transition aid according
203.20to section 126C.10, subdivision 33, in the second preceding year;
203.21    (H) section 123B.53, subdivision 5, if the district received debt service equalization
203.22aid according to section 123B.53, subdivision 6, in the second preceding year;
203.23    (I) section 123B.535, subdivision 4, if the district received natural disaster debt
203.24service equalization aid according to section 123B.535, subdivision 5, in the second
203.25preceding year;
203.26    (I) (J) section 124D.22, subdivision 3, if the district received school-age care aid
203.27according to section 124D.22, subdivision 4, in the second preceding year;
203.28    (J) (K) section 123B.591, subdivision 3, if the district received deferred maintenance
203.29aid according to section 123B.591, subdivision 4, in the second preceding year; and
203.30    (K) (L) section 126C.10, subdivision 35, if the district received alternative teacher
203.31compensation equalization aid according to section 126C.10, subdivision 36, paragraph
203.32(a), in the second preceding year; to
203.33    (ii) the total amount of the district's certified levy for the fiscal year, plus or minus
203.34auditor's adjustments.
203.35    (c) An amount must be subtracted from the school district's levy limitation for the
203.36next levy certified equal to the difference between:
204.1    (1) the amount of the distribution of excess increment; and
204.2    (2) the amount subtracted from aid pursuant to clause (a).
204.3    If the aid and levy reductions required by this subdivision cannot be made to the aid
204.4for the fiscal year specified or to the levy specified, the reductions must be made from
204.5aid for subsequent fiscal years, and from subsequent levies. The school district must use
204.6the payment of excess tax increment to replace the aid and levy revenue reduced under
204.7this subdivision.
204.8    (d) This subdivision applies only to the total amount of excess increments received
204.9by a district for a calendar year that exceeds $25,000.
204.10EFFECTIVE DATE.This section is effective for revenue for fiscal year 2017
204.11and later.

204.12    Sec. 15. Minnesota Statutes 2012, section 129C.10, subdivision 3, is amended to read:
204.13    Subd. 3. Powers and duties of board. (a) The board has the powers necessary for
204.14the care, management, and control of the Perpich Center for Arts Education and any other
204.15school authorized in this chapter, and all its their real and personal property. The powers
204.16shall include, but are not limited to, those listed in this subdivision.
204.17(b) The board may employ and discharge necessary employees, and contract for
204.18other services to ensure the efficient operation of the Center for Arts Education and any
204.19other school authorized in this chapter.
204.20(c) The board may receive and award grants. The board may establish a charitable
204.21foundation and accept, in trust or otherwise, any gift, grant, bequest, or devise for
204.22educational purposes and hold, manage, invest, and dispose of them and the proceeds
204.23and income of them according to the terms and conditions of the gift, grant, bequest, or
204.24devise and its acceptance. The board must adopt internal procedures to administer and
204.25monitor aids and grants.
204.26(d) The board may establish or coordinate evening, continuing education, extension,
204.27and summer programs for teachers and pupils.
204.28(e) The board may identify pupils who have artistic talent, either demonstrated or
204.29potential, in dance, literary arts, media arts, music, theater, and visual arts, or in more
204.30than one art form.
204.31(f) The board must educate pupils with artistic talent by providing:
204.32(1) an interdisciplinary academic and arts program for pupils in the 11th and 12th
204.33grades. The total number of pupils accepted under this clause and clause (2) shall not
204.34exceed 310;
205.1(2) additional instruction to pupils for a 13th grade. Pupils eligible for this
205.2instruction are those enrolled in 12th grade who need extra instruction and who apply
205.3to the board, or pupils enrolled in the 12th grade who do not meet learner outcomes
205.4established by the board;
205.5(3) intensive arts seminars for one or two weeks for pupils in grades 9 to 12;
205.6(4) summer arts institutes for pupils in grades 9 to 12;
205.7(5) artist mentor and extension programs in regional sites; and
205.8(6) teacher education programs for indirect curriculum delivery.
205.9(g) The board may determine the location for the Perpich Center for Arts Education
205.10and any additional facilities related to the center, including the authority to lease a
205.11temporary facility.
205.12(h) The board must plan for the enrollment of pupils on an equal basis from each
205.13congressional district.
205.14(i) The board may establish task forces as needed to advise the board on policies and
205.15issues. The task forces expire as provided in section 15.059, subdivision 6.
205.16(j) The board may request the commissioner of education for assistance and services.
205.17(k) The board may enter into contracts with other public and private agencies
205.18and institutions for residential and building maintenance services if it determines that
205.19these services could be provided more efficiently and less expensively by a contractor
205.20than by the board itself. The board may also enter into contracts with public or private
205.21agencies and institutions, school districts or combinations of school districts, or service
205.22cooperatives to provide supplemental educational instruction and services.
205.23(l) The board may provide or contract for services and programs by and for the
205.24Center for Arts Education, including a store, operating in connection with the center;
205.25theatrical events; and other programs and services that, in the determination of the board,
205.26serve the purposes of the center.
205.27(m) The board may provide for transportation of pupils to and from the Center for
205.28Arts Education for all or part of the school year, as the board considers advisable and
205.29subject to its rules. Notwithstanding any other law to the contrary, the board may charge a
205.30reasonable fee for transportation of pupils. Every driver providing transportation of pupils
205.31under this paragraph must possess all qualifications required by the commissioner of
205.32education. The board may contract for furnishing authorized transportation under rules
205.33established by the commissioner of education and may purchase and furnish gasoline to a
205.34contract carrier for use in the performance of a contract with the board for transportation
205.35of pupils to and from the Center for Arts Education. When transportation is provided,
205.36scheduling of routes, establishment of the location of bus stops, the manner and method of
206.1transportation, the control and discipline of pupils, and any other related matter is within
206.2the sole discretion, control, and management of the board.
206.3(n) The board may provide room and board for its pupils. If the board provides room
206.4and board, it shall charge a reasonable fee for the room and board. The fee is not subject
206.5to chapter 14 and is not a prohibited fee according to sections 123B.34 to 123B.39.
206.6(o) The board may establish and set fees for services and programs. If the board sets
206.7fees not authorized or prohibited by the Minnesota public school fee law, it may do so
206.8without complying with the requirements of section 123B.38.
206.9(p) The board may apply for all competitive grants administered by agencies of the
206.10state and other government or nongovernment sources.
206.11EFFECTIVE DATE.This section is effective the day following final enactment.

206.12    Sec. 16. Minnesota Statutes 2012, section 129C.10, is amended by adding a
206.13subdivision to read:
206.14    Subd. 5a. Interdistrict voluntary integration magnet program. Notwithstanding
206.15Minnesota Rules, parts 3535.0110 and 3535.0150, the board may establish and operate
206.16an interdistrict integration magnet program according to section 129C.30. For fiscal year
206.172016 and later, the board must have an approved achievement and integration plan and
206.18budget under section 124D.861.
206.19EFFECTIVE DATE.This section is effective the day following final enactment.

206.20    Sec. 17. [129C.30] CROSSWINDS INTEGRATION MAGNET SCHOOL.
206.21    Subdivision 1. Definitions. (a) The following terms having the meanings given
206.22them for this chapter.
206.23(b) "Board" means the board of directors of the Perpich Center for Arts Education.
206.24(c) "Crosswinds school" means the Crosswinds school in Woodbury operated during
206.25the 2012-2013 school year by Joint Powers District No. 6067, East Metro Integration
206.26District.
206.27    Subd. 2. Board to operate the Crosswinds school. The board may operate the
206.28Crosswinds school with the powers and duties granted to it under this chapter. A student
206.29may apply to the Crosswinds school under section 124D.03 and the Crosswinds school
206.30may accept students under that section.
206.31    Subd. 3. General education funding. General education revenue must be paid to
206.32the Crosswinds school as though it were a district. The general education revenue for each
206.33adjusted pupil unit is the state average general education revenue per pupil unit, plus
207.1the referendum equalization aid allowance in the pupil's district of residence, minus an
207.2amount equal to the product of the formula allowance according to section 126C.10,
207.3subdivision 2, times .0466, calculated without declining enrollment, basic skills revenue,
207.4extended time revenue, pension adjustment revenue, transition revenue, and transportation
207.5sparsity revenue, plus declining enrollment, basic skills revenue, extended time revenue,
207.6pension adjustment revenue, and transition revenue as though the school were a school
207.7district. The general education revenue for each extended time pupil unit equals $4,794.
207.8    Subd. 4. Special education funding. Special education aid must be paid to the
207.9Crosswinds school according to sections 125A.76 and 125A.79, as though it were a
207.10school district. The special education aid paid to the Crosswinds school shall be adjusted
207.11as follows:
207.12(1) if the Crosswinds school does not receive general education revenue on behalf of
207.13the student according to subdivision 3, the aid shall be adjusted as provided in section
207.14125A.11; or
207.15(2) if the Crosswinds school receives general education revenue on behalf of the
207.16student according to subdivision 3, the aid shall be adjusted as provided in section
207.17127A.47, subdivision 7, paragraphs (b) to (d).
207.18    Subd. 5. Pupil transportation. (a) For fiscal year 2015 only, a member district of
207.19Joint Powers District No. 6067, East Metro Integration District, must transport pupils
207.20enrolled at the Crosswinds school in the same manner as they were transported in fiscal
207.21year 2014.
207.22(b) Pupil transportation expenses under this section are reimbursable under section
207.23124D.87.
207.24    Subd. 6. Achievement and integration aid. For fiscal year 2016 and later, the
207.25Crosswinds school is eligible for achievement and integration aid under section 124D.862
207.26as if it were a school district.
207.27    Subd. 7. Other aids, grants, revenue. (a) The Crosswinds school is eligible to
207.28receive other aids, grants, and revenue according to chapters 120A to 129C as though it
207.29were a district.
207.30(b) Notwithstanding paragraph (a), the Crosswinds school may not receive aid, a
207.31grant, or revenue if a levy is required to obtain the money, or if the aid, grant, or revenue
207.32replaces levy revenue that is not general education revenue, except as otherwise provided
207.33in this section.
207.34(c) Federal aid received by the state must be paid to the school if it qualifies for
207.35the aid as though it were a school district.
208.1(d) In the year-end report to the commissioner of education, the Crosswinds school
208.2shall report the total amount of funds received from grants and other outside sources.
208.3    Subd. 8. Year-round programming. The Crosswinds school may operate as a
208.4flexible learning year program under sections 124D.12 to 124D.127.
208.5    Subd. 9. Data requirements. The commissioner of education shall require the
208.6Crosswinds school to follow the budget and accounting procedures required for school
208.7districts and the Crosswinds school shall report all data to the Department of Education in
208.8the form and manner required by the commissioner.

208.9    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 5, is amended to read:
208.10    Subd. 5. Equity in telecommunications access. For equity in telecommunications
208.11access:

208.12		$	3,750,000	.....	2014
208.13 208.14		$	3,750,000 8,750,000	.....	2015

208.15If the appropriation amount is insufficient, the commissioner shall reduce the
208.16reimbursement rate in Minnesota Statutes, section 125B.26, subdivisions 4 and 5, and the
208.17revenue for fiscal years 2014 and 2015 shall be prorated.
208.18Any balance in the first year does not cancel but is available in the second year.
208.19 The base appropriation for this program for fiscal years 2016 and 2017 is $8,750,000
208.20for each year.

208.21    Sec. 19. HARAMBEE COMMUNITY SCHOOL TRANSITION.
208.22    Subdivision 1. Student enrollment. A student enrolled in the Harambee community
208.23school during the 2013-2014 school year may continue to enroll in the Harambee
208.24community school in any subsequent year. For the 2014-2015 school year and later, other
208.25students may apply for enrollment under Minnesota Statutes, section 124D.03.
208.26    Subd. 2. Compensatory revenue; literacy aid; alternative compensation
208.27revenue. For the 2014-2015 school year only, the Department of Education must calculate
208.28compensatory revenue, literacy aid, and alternative compensation revenue for the
208.29Harambee community school based on the October 1, 2013, enrollment counts.
208.30    Subd. 3. Year-round programming. Harambee community school may operate as
208.31a flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127.
208.32    Subd. 4. Pupil transportation. The board may transport pupils enrolled in the
208.332013-2014 school year to and from the Harambee community school in succeeding school
209.1years regardless of the students' districts of residence. Pupil transportation expenses under
209.2this section are reimbursable under Minnesota Statutes, section 124D.87.

209.3    Sec. 20. TRANSITION REQUIREMENTS; CROSSWINDS SCHOOL.
209.4    Subdivision 1. Student enrollment. Any student enrolled in the Crosswinds school
209.5during the 2013-2014 school year may continue to enroll in the Crosswinds school in
209.6any subsequent year. For the 2014-2015 school year and later, a student may apply for
209.7enrollment to the school under Minnesota Statutes, section 124D.03.
209.8    Subd. 2. Compensatory revenue, literacy aid, and alternative compensation
209.9revenue. For the 2014-2015 school year only, the Department of Education must calculate
209.10compensatory revenue, literacy aid, and alternative compensation revenue for the
209.11Crosswinds school based on the October 1, 2013, enrollment counts at that site.
209.12    Subd. 3. Title 1 funding. To the extent possible, the Department of Education
209.13must qualify the Crosswinds school for Title 1, and, if applicable, other federal funding
209.14as if the program were still operated by Joint Powers District No. 6067, East Metro
209.15Integration District.
209.16EFFECTIVE DATE.This section is effective the day following final enactment.

209.17    Sec. 21. LEASE LEVY; TRANSPORTATION HUB FOR ROSEMOUNT-APPLE
209.18VALLEY-EAGAN SCHOOL DISTRICT.
209.19Notwithstanding Minnesota Statutes, section 126C.40, subdivision 1, Independent
209.20School District No. 196, Rosemount-Apple Valley-Eagan, may lease a transportation
209.21hub under Minnesota Statutes, section 126C.40, subdivision 1. Levy authority under
209.22this section shall not exceed the total levy authority under Minnesota Statutes, section
209.23126C.40, subdivision 1, paragraph (e).
209.24EFFECTIVE DATE.This section is effective for taxes payable in 2015 and later.

209.25    Sec. 22. REPEALER.
209.26Minnesota Statutes 2012, section 123B.71, subdivision 1, is repealed.


209.29    Section 1. Minnesota Statutes 2013 Supplement, section 124D.111, subdivision 1,
209.30is amended to read:
210.1    Subdivision 1. School lunch aid computation. Each school year, the state must
210.2pay participants in the national school lunch program the amount of 12.5 cents for each
210.3full paid, reduced-price, and free student lunch and 52.5 cents for each reduced-price
210.4lunch served to students.
210.5EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
210.6and later.

210.7    Sec. 2. Minnesota Statutes 2012, section 124D.111, is amended by adding a
210.8subdivision to read:
210.9    Subd. 4. No fees. A participant that receives school lunch aid under this section
210.10must make lunch available without charge to all participating students who qualify for
210.11free or reduced-price meals. The participant must also ensure that any reminders for
210.12payment of outstanding student meal balances do not demean or stigmatize any child
210.13participating in the school lunch program.
210.14EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
210.15and later.

210.16    Sec. 3. Laws 2013, chapter 116, article 7, section 21, subdivision 2, is amended to read:
210.17    Subd. 2. School lunch. For school lunch aid according to Minnesota Statutes,
210.18section 124D.111, and Code of Federal Regulations, title 7, section 210.17:

210.19 210.20		$	13,032,000 12,417,000	.....	2014
210.21 210.22		$	13,293,000 16,185,000	.....	2015

210.26    Section 1. Minnesota Statutes 2012, section 121A.19, is amended to read:
210.27121A.19 DEVELOPMENTAL SCREENING AID.
210.28    Each school year, the state must pay a district for each child or student screened by
210.29the district according to the requirements of section 121A.17. The amount of state aid
210.30for each child or student screened shall be: (1) $75 $80 for a child screened at age three;
210.31(2) $50 $55 for a child screened at age four; (3) $40 for a child screened at age five or
210.32six prior to kindergarten; and (4) $30 for a student screened within 30 days after first
211.1enrolling in a public school kindergarten if the student has not previously been screened
211.2according to the requirements of section 121A.17. If this amount of aid is insufficient,
211.3the district may permanently transfer from the general fund an amount that, when added
211.4to the aid, is sufficient. Developmental screening aid shall not be paid for any student
211.5who is screened more than 30 days after the first day of attendance at a public school
211.6kindergarten, except if a student transfers to another public school kindergarten within
211.730 days after first enrolling in a Minnesota public school kindergarten program. In this
211.8case, if the student has not been screened, the district to which the student transfers may
211.9receive developmental screening aid for screening that student when the screening is
211.10performed within 30 days of the transfer date.
211.11EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
211.12and later.

211.13    Sec. 2. Minnesota Statutes 2012, section 124D.16, subdivision 2, is amended to read:
211.14    Subd. 2. Amount of aid. (a) A district is eligible to receive school readiness aid
211.15for eligible prekindergarten pupils enrolled in a school readiness program under section
211.16124D.15 if the biennial plan required by section 124D.15, subdivision 3a, has been
211.17approved by the commissioner.
211.18(b) For fiscal year 2002 and thereafter, A district must receive school readiness aid
211.19equal to:
211.20(1) the number of four-year-old children in the district on October 1 for the previous
211.21school year times the ratio of 50 percent of the total school readiness aid for that year to
211.22the total number of four-year-old children reported to the commissioner for the previous
211.23school year; plus
211.24(2) the number of pupils enrolled in the school district from families eligible for the
211.25free or reduced school lunch program for the previous school year times the ratio of
211.2650 percent of the total school readiness aid for that year to the total number of pupils
211.27in the state from families eligible for the free or reduced school lunch program for the
211.28previous school year.
211.29(c) For fiscal year 2015 and later, total school readiness aid equals $12,000,000.
211.30EFFECTIVE DATE.This section is effective for state aid for fiscal year 2015
211.31and later.

211.32    Sec. 3. Minnesota Statutes 2013 Supplement, section 124D.165, subdivision 5, is
211.33amended to read:
212.1    Subd. 5. Report required. The commissioner shall contract with an independent
212.2contractor to evaluate the early learning scholarship program. The evaluation must
212.3include recommendations regarding the appropriate scholarship amount, efficiency, and
212.4effectiveness of the administration, and impact on kindergarten readiness. By January
212.515, 2016, the commissioner shall submit a written copy of the evaluation to the chairs
212.6and ranking minority members of the legislative committees and divisions with primary
212.7jurisdiction over kindergarten through grade 12 education.

212.8    Sec. 4. Minnesota Statutes 2012, section 124D.522, is amended to read:
212.9124D.522 ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE
212.10GRANTS.
212.11(a) The commissioner, in consultation with the policy review task force under
212.12section 124D.521, may make grants to nonprofit organizations to provide services that
212.13are not offered by a district adult basic education program or that are supplemental to
212.14either the statewide adult basic education program, or a district's adult basic education
212.15program. The commissioner may make grants for: staff development for adult basic
212.16education teachers and administrators; training for volunteer tutors; training, services, and
212.17materials for serving disabled students through adult basic education programs; statewide
212.18promotion of adult basic education services and programs; development and dissemination
212.19of instructional and administrative technology for adult basic education programs;
212.20programs which primarily serve communities of color; adult basic education distance
212.21learning projects, including television instruction programs; and other supplemental
212.22services to support the mission of adult basic education and innovative delivery of adult
212.23basic education services.
212.24(b) The commissioner must establish eligibility criteria and grant application
212.25procedures. Grants under this section must support services throughout the state, focus on
212.26educational results for adult learners, and promote outcome-based achievement through
212.27adult basic education programs. Beginning in fiscal year 2002, the commissioner may
212.28make grants under this section from the state total adult basic education aid set aside for
212.29supplemental service grants under section 124D.531. Up to one-fourth of the appropriation
212.30for supplemental service grants must be used for grants for adult basic education programs
212.31to encourage and support innovations in adult basic education instruction and service
212.32delivery. A grant to a single organization cannot exceed 20 40 percent of the total
212.33supplemental services aid. Nothing in this section prevents an approved adult basic
212.34education program from using state or federal aid to purchase supplemental services.

213.1    Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.531, subdivision 1, is
213.2amended to read:
213.3    Subdivision 1. State total adult basic education aid. (a) The state total adult basic
213.4education aid for fiscal year 2011 equals $44,419,000, plus any amount that is not paid
213.5during the previous fiscal year as a result of adjustments under subdivision 4, paragraph
213.6(a), or section 124D.52, subdivision 3. The state total adult basic education aid for later
213.7fiscal years equals:
213.8    (1) the state total adult basic education aid for the preceding fiscal year plus any
213.9amount that is not paid for during the previous fiscal year, as a result of adjustments under
213.10subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
213.11    (2) the lesser of:
213.12    (i) 1.025 1.03; or
213.13    (ii) the average growth in state total contact hours over the prior ten program years.
213.14    Beginning in fiscal year 2002, two Three percent of the state total adult basic
213.15education aid must be set aside for adult basic education supplemental service grants
213.16under section 124D.522.
213.17    (b) The state total adult basic education aid, excluding basic population aid, equals
213.18the difference between the amount computed in paragraph (a), and the state total basic
213.19population aid under subdivision 2.
213.20EFFECTIVE DATE.This section is effective for revenue for fiscal year 2015
213.21and later.

213.22    Sec. 6. Minnesota Statutes 2012, section 124D.531, subdivision 3, is amended to read:
213.23    Subd. 3. Program revenue. Adult basic education programs established under
213.24section 124D.52 and approved by the commissioner are eligible for revenue under this
213.25subdivision. For fiscal year 2001 and later, adult basic education revenue for each
213.26approved program equals the sum of:
213.27(1) the basic population aid under subdivision 2 for districts participating in the
213.28program during the current program year; plus
213.29(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the
213.30ratio of the contact hours for students participating in the program during the first prior
213.31program year to the state total contact hours during the first prior program year; plus
213.32(3) eight percent times the amount computed in subdivision 1, paragraph (b), times
213.33the ratio of the enrollment of English learners during the second prior school year in
213.34districts participating in the program during the current program year to the state total
214.1enrollment of English learners during the second prior school year in districts participating
214.2in adult basic education programs during the current program year; plus
214.3(4) eight percent times the amount computed in subdivision 1, paragraph (b), times
214.4the ratio of the latest federal census count of the number of adults aged 20 25 or older
214.5with no diploma residing in the districts participating in the program during the current
214.6program year to the latest federal census count of the state total number of adults aged 20
214.7 25 or older with no diploma residing in the districts participating in adult basic education
214.8programs during the current program year.

214.9    Sec. 7. Laws 2013, chapter 116, article 8, section 5, subdivision 2, is amended to read:
214.10    Subd. 2. School readiness. For revenue for school readiness programs under
214.11Minnesota Statutes, sections 124D.15 and 124D.16:

214.12 214.13		$	10,095,000 10,458,000	.....	2014
214.14 214.15		$	10,159,000 11,809,000	.....	2015

214.16The 2014 appropriation includes $1,372,000 for 2013 and $8,723,000 $9,086,000
214.17 for 2014.
214.18The 2015 appropriation includes $1,372,000 $1,009,000 for 2014 and $8,787,000
214.19 $10,800,000 for 2015.

214.20    Sec. 8. Laws 2013, chapter 116, article 8, section 5, subdivision 4, is amended to read:
214.21    Subd. 4. Health and developmental screening aid. For health and developmental
214.22screening aid under Minnesota Statutes, sections 121A.17 and 121A.19:

214.23		$	3,421,000	.....	2014
214.24 214.25		$	3,344,000 3,569,000	.....	2015

214.26The 2014 appropriation includes $474,000 for 2013 and $2,947,000 for 2014.
214.27The 2015 appropriation includes $463,000 for 2014 and $2,881,000 $3,106,000
214.28 for 2015.

214.29    Sec. 9. Laws 2013, chapter 116, article 8, section 5, subdivision 14, is amended to read:
214.30    Subd. 14. Adult basic education aid. For adult basic education aid under
214.31Minnesota Statutes, section 124D.531:

214.32 214.33		$	47,005,000 48,782,000	.....	2014
214.34 214.35		$	48,145,000 48,415,000	.....	2015

215.1The 2014 appropriation includes $6,284,000 for 2013 and $40,721,000 $42,498,000
215.2 for 2014.
215.3The 2015 appropriation includes $6,409,000 $4,722,000 for 2014 and $41,736,000
215.4 $43,693,000 for 2015.

215.5    Sec. 10. APPROPRIATIONS.
215.6    Subdivision 1. Department of Education. The sums indicated in this section are
215.7appropriated from the general fund to the Department of Education for the fiscal years
215.8designated.
215.9    Subd. 2. Northside Achievement Zone. (a) For a grant to the Northside
215.10Achievement Zone:

215.11

$

1,132,000

.....

2015

215.12(b) Funds appropriated in this subdivision are to reduce multigenerational poverty
215.13and the educational achievement gap through increased enrollment of families within
215.14the zone, and may be used for Northside Achievement Zone programming and services
215.15consistent with federal Promise Neighborhood program agreements and requirements.
215.16(c) The Northside Achievement Zone shall submit a report by October 1, 2015, to
215.17the chairs of the legislative committees with jurisdiction over early childhood through
215.18grade 12 education policy and finance that, at a minimum, summarizes program activities,
215.19specifies performance measures, and analyzes program outcomes.
215.20    (d) The base appropriation for fiscal years 2016 and 2017 is $1,132,000 for each year.
215.21    Subd. 3. St. Paul Promise Neighborhood. (a) For a grant to the St. Paul Promise
215.22Neighborhood:

215.23

$

1,132,000

.....

2015

215.24(b) Funds appropriated in this subdivision are to reduce multigenerational poverty
215.25and the educational achievement gap through increased enrollment of families within the
215.26zone, and may be used for St. Paul Promise Neighborhood programming and services
215.27consistent with federal Promise Neighborhood program agreements and requirements.
215.28(c) The St. Paul Promise Neighborhood shall submit a report by October 1, 2015, to
215.29the chairs of the legislative committees with jurisdiction over early childhood through
215.30grade 12 education policy and finance that, at a minimum, summarizes program activities,
215.31specifies performance measures, and analyzes program outcomes.
215.32    (d) The base appropriation for fiscal years 2016 and 2017 is $1,132,000 for each year.


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

216.5		$	20,058,000	.....	2014
216.6 216.7		$	19,308,000 19,716,000	.....	2015

216.8Any balance in the first year does not cancel but is available in the second year.
216.9(b) $260,000 each year is for the Minnesota Children's Museum.
216.10(c) $41,000 each year is for the Minnesota Academy of Science.
216.11(d) $50,000 each year is for the Duluth Children's Museum.
216.12(e) $618,000 each in fiscal year 2014 and $718,000 in fiscal year is 2015 only are
216.13 for the Board of Teaching. Any balance in the first year does not cancel but is available
216.14in the second year.
216.15(f) $167,000 each in fiscal year 2014 and $225,000 in fiscal year is 2015 are for
216.16the Board of School Administrators. Any balance in the first year does not cancel but
216.17is available in the second year.
216.18(g) $75,000 in fiscal year 2015 only is for The Works Museum.
216.19(h) $50,000 in fiscal year 2015 only is for a grant to the Headwaters Science Center
216.20for hands-on science, technology, engineering, and math (STEM) education.
216.21(i) $25,000 each year is for innovation pilot grants under Laws 2012, chapter 263,
216.22section 1.
216.23(j) The expenditures of federal grants and aids as shown in the biennial budget
216.24document and its supplements are approved and appropriated and shall be spent as
216.25indicated.
216.26(h) (k) None of the amounts appropriated under this subdivision may be used for
216.27Minnesota's Washington, D.C. office.
216.28(i) (l) $250,000 each year is for the School Finance Division to enhance financial
216.29data analysis.
216.30(j) (m) $750,000 in fiscal year 2014 only is for departmental costs associated with
216.31teacher development and evaluation. Any balance in the first year does not cancel and
216.32is available in the second year.

216.33    Sec. 2. Laws 2013, chapter 116, article 9, section 2, is amended to read:
216.34    Sec. 2. APPROPRIATIONS; MINNESOTA STATE ACADEMIES.
217.1The sums indicated in this section are appropriated from the general fund to the
217.2Minnesota State Academies for the Deaf and the Blind for the fiscal years designated:

217.3		$	11,749,000	.....	2014
217.4 217.5		$	11,664,000 11,964,000	.....	2015

217.6$85,000 of the fiscal year 2014 appropriation is for costs associated with upgrading
217.7kitchen facilities. Any balance in the first year does not cancel but is available in the
217.8second year.

217.9    Sec. 3. APPROPRIATION; RESPONSES TO HEALTH INSURANCE
217.10TRANSPARENCY ACT BID REQUESTS.
217.11    (a) $294,000 is appropriated for fiscal year 2015 from the general fund to the
217.12commissioner of management and budget to comply with the requirements relating to
217.13health insurance transparency similar to those proposed in House File 2180, if enacted in
217.14the 2014 regular legislative session. This is a onetime appropriation.
217.15    (b) If a bill meeting the requirements of paragraph (a) is enacted, the commissioner
217.16of management and budget shall report by January 15, 2015, to the legislative chairs
217.17and ranking minority members with jurisdiction over state government finance on the
217.18ongoing costs incurred by the public employees insurance program in compliance with
217.19the requirements of the health insurance transparency act and may request additional
217.20appropriations, if necessary.


217.24    Section 1. Laws 2013, chapter 116, article 1, section 58, subdivision 3, is amended to
217.25read:
217.26    Subd. 3. Enrollment options transportation. For transportation of pupils attending
217.27postsecondary institutions under Minnesota Statutes, section 124D.09, or for transportation
217.28of pupils attending nonresident districts under Minnesota Statutes, section 124D.03:

217.29 217.30		$	44,000 37,000	.....	2014
217.31 217.32		$	48,000 40,000	.....	2015

217.33    Sec. 2. Laws 2013, chapter 116, article 1, section 58, subdivision 4, is amended to read:
218.1    Subd. 4. Abatement revenue. For abatement aid under Minnesota Statutes, section
218.2127A.49 :

218.3 218.4		$	2,747,000 2,876,000	.....	2014
218.5 218.6		$	3,136,000 3,103,000	.....	2015

218.7The 2014 appropriation includes $301,000 for 2013 and $2,446,000 $2,575,000
218.8 for 2014.
218.9The 2015 appropriation includes $385,000 $286,000 for 2014 and $2,751,000
218.10 $2,817,000 for 2015.

218.11    Sec. 3. Laws 2013, chapter 116, article 1, section 58, subdivision 5, is amended to read:
218.12    Subd. 5. Consolidation transition. For districts consolidating under Minnesota
218.13Statutes, section 123A.485:

218.14 218.15		$	472,000 585,000	.....	2014
218.16 218.17		$	480,000 254,000	.....	2015

218.18The 2014 appropriation includes $40,000 for 2013 and $432,000 $545,000 for 2014.
218.19The 2015 appropriation includes $68,000 $60,000 for 2014 and $412,000 $194,000
218.20 for 2015.

218.21    Sec. 4. Laws 2013, chapter 116, article 1, section 58, subdivision 6, is amended to read:
218.22    Subd. 6. Nonpublic pupil education aid. For nonpublic pupil education aid under
218.23Minnesota Statutes, sections 123B.40 to 123B.43 and 123B.87:

218.24 218.25		$	15,582,000 16,068,000	.....	2014
218.26 218.27		$	16,169,000 16,074,000	.....	2015

218.28The 2014 appropriation includes $2,099,000 for 2013 and $13,483,000 $13,969,000
218.29 for 2014.
218.30The 2015 appropriation includes $2,122,000 $1,552,000 for 2014 and $14,047,000
218.31 $14,522,000 for 2015.

218.32    Sec. 5. Laws 2013, chapter 116, article 1, section 58, subdivision 7, is amended to read:
218.33    Subd. 7. Nonpublic pupil transportation. For nonpublic pupil transportation aid
218.34under Minnesota Statutes, section 123B.92, subdivision 9:

219.1 219.2		$	18,565,000 18,566,000	.....	2014
219.3 219.4		$	18,946,000 17,646,000	.....	2015

219.5The 2014 appropriation includes $2,668,000 for 2013 and $15,897,000 $15,898,000
219.6 for 2014.
219.7The 2015 appropriation includes $2,502,000 $1,766,000 for 2014 and $16,444,000
219.8 $15,880,000 for 2015.

219.9    Sec. 6. Laws 2013, chapter 116, article 1, section 58, subdivision 11, is amended to read:
219.10    Subd. 11. Career and technical aid. For career and technical aid under Minnesota
219.11Statutes, section 124D.4531, subdivision 1b:

219.12 219.13		$	4,320,000 3,959,000	.....	2014
219.14 219.15		$	5,680,000 5,172,000	.....	2015

219.16The 2014 appropriation includes $0 for 2014 and $4,320,000 $3,959,000 for 2015.
219.17The 2015 appropriation includes $680,000 $439,000 for 2014 and $5,000,000
219.18 $4,733,000 for 2015.

219.20    Sec. 7. Laws 2013, chapter 116, article 3, section 37, subdivision 3, is amended to read:
219.21    Subd. 3. Achievement and integration aid. For achievement and integration aid
219.22under Minnesota Statutes, section 124D.862:

219.23 219.24		$	58,911,000 55,609,000	.....	2014
219.25 219.26		$	68,623,000 62,692,000	.....	2015

219.27The 2014 appropriation includes $0 for 2013 and $58,911,000 $55,609,000 for 2014.
219.28The 2015 appropriation includes $9,273,000 $6,178,000 for 2014 and $59,350,000
219.29 $56,514,000 for 2015.

219.30    Sec. 8. Laws 2013, chapter 116, article 3, section 37, subdivision 4, is amended to read:
219.31    Subd. 4. Literacy incentive aid. For literacy incentive aid under Minnesota
219.32Statutes, section 124D.98:

220.1 220.2		$	52,514,000 50,998,000	.....	2014
220.3 220.4		$	53,818,000 47,458,000	.....	2015

220.5The 2014 appropriation includes $6,607,000 for 2013 and $45,907,000 $44,391,000
220.6 for 2014.
220.7The 2015 appropriation includes $7,225,000 $4,932,000 for 2014 and $46,593,000
220.8 $42,526,000 for 2015.

220.9    Sec. 9. Laws 2013, chapter 116, article 3, section 37, subdivision 5, is amended to read:
220.10    Subd. 5. Interdistrict desegregation or integration transportation grants. For
220.11interdistrict desegregation or integration transportation grants under Minnesota Statutes,
220.12section 124D.87:

220.13 220.14		$	13,968,000 13,521,000	.....	2014
220.15 220.16		$	14,712,000 14,248,000	.....	2015

220.17    Sec. 10. Laws 2013, chapter 116, article 3, section 37, subdivision 6, is amended to read:
220.18    Subd. 6. Success for the future. For American Indian success for the future grants
220.19under Minnesota Statutes, section 124D.81:

220.20 220.21		$	2,137,000 2,214,000	.....	2014
220.22		$	2,137,000	.....	2015

220.23The 2014 appropriation includes $290,000 for 2013 and $1,847,000 $1,924,000
220.24 for 2014.
220.25The 2015 appropriation includes $290,000 $213,000 for 2014 and $1,847,000
220.26 $1,924,000 for 2015.

220.27    Sec. 11. Laws 2013, chapter 116, article 3, section 37, subdivision 8, is amended to read:
220.28    Subd. 8. Tribal contract schools. For tribal contract school aid under Minnesota
220.29Statutes, section 124D.83:

220.30 220.31		$	2,080,000 2,144,000	.....	2014
220.32 220.33		$	2,230,000 2,152,000	.....	2015

220.34The 2014 appropriation includes $266,000 for 2013 and $1,814,000 $1,878,000
220.35 for 2014.
221.1The 2015 appropriation includes $285,000 $208,000 for 2014 and $1,945,000
221.2 $1,944,000 for 2015.

221.3    Sec. 12. Laws 2013, chapter 116, article 3, section 37, subdivision 20, is amended to
221.4read:
221.5    Subd. 20. Alternative compensation. For alternative teacher compensation aid
221.6under Minnesota Statutes, section 122A.415, subdivision 4:

221.7 221.8

$

60,340,000 71,599,000

.....

2015

221.9The 2015 appropriation includes $0 for 2014 and $59,711,000 $71,599,000 for 2015.

221.11    Sec. 13. Laws 2013, chapter 116, article 4, section 9, subdivision 2, is amended to read:
221.12    Subd. 2. Charter school building lease aid. For building lease aid under Minnesota
221.13Statutes, section 124D.11, subdivision 4:

221.14 221.15		$	54,484,000 54,763,000	.....	2014
221.16 221.17		$	59,533,000 58,294,000	.....	2015

221.18The 2014 appropriation includes $6,819,000 for 2013 and $47,665,000 $47,944,000
221.19 for 2014.
221.20The 2015 appropriation includes $7,502,000 $5,327,000 for 2014 and $52,031,000
221.21 $52,967,000 for 2015.

221.23    Sec. 14. Laws 2013, chapter 116, article 5, section 31, subdivision 2, is amended to read:
221.24    Subd. 2. Special education; regular. For special education aid under Minnesota
221.25Statutes, section 125A.75:

221.26 221.27		$	997,725,000 1,038,514,000	.....	2014
221.28 221.29		$	1,108,211,000 1,111,641,000	.....	2015

221.30The 2014 appropriation includes $118,232,000 for 2013 and $802,884,000
221.31 $920,282,000 for 2014.
221.32The 2015 appropriation includes $169,929,000 $129,549,000 for 2014 and
221.33$938,282,000 $982,092,000 for 2015.

222.1    Sec. 15. Laws 2013, chapter 116, article 5, section 31, subdivision 3, is amended to read:
222.2    Subd. 3. Aid for children with disabilities. For aid under Minnesota Statutes,
222.3section 125A.75, subdivision 3, for children with disabilities placed in residential facilities
222.4within the district boundaries for whom no district of residence can be determined:

222.5 222.6		$	1,655,000 1,548,000	.....	2014
222.7 222.8		$	1,752,000 1,674,000	.....	2015

222.9If the appropriation for either year is insufficient, the appropriation for the other
222.10year is available.

222.11    Sec. 16. Laws 2013, chapter 116, article 5, section 31, subdivision 4, is amended to read:
222.12    Subd. 4. Travel for home-based services. For aid for teacher travel for home-based
222.13services under Minnesota Statutes, section 125A.75, subdivision 1:

222.14 222.15		$	345,000 351,000	.....	2014
222.16 222.17		$	355,000 346,000	.....	2015

222.18The 2014 appropriation includes $45,000 for 2013 and $300,000 $306,000 for 2014.
222.19The 2015 appropriation includes $47,000 $33,000 for 2014 and $308,000 $313,000
222.20 for 2015.

222.22    Sec. 17. Laws 2013, chapter 116, article 6, section 12, subdivision 2, is amended to read:
222.23    Subd. 2. Health and safety revenue. For health and safety aid according to
222.24Minnesota Statutes, section 123B.57, subdivision 5:

222.25 222.26		$	463,000 473,000	.....	2014
222.27 222.28		$	434,000 651,000	.....	2015

222.29The 2014 appropriation includes $26,000 for 2013 and $437,000 $447,000 for 2014.
222.30The 2015 appropriation includes $68,000 $49,000 for 2014 and $366,000 $602,000
222.31 for 2015.

222.32    Sec. 18. Laws 2013, chapter 116, article 6, section 12, subdivision 3, is amended to read:
222.33    Subd. 3. Debt service equalization. For debt service aid according to Minnesota
222.34Statutes, section 123B.53, subdivision 6:

223.1 223.2		$	19,083,000 19,778,000	.....	2014
223.3 223.4		$	25,060,000 22,591,000	.....	2015

223.5The 2014 appropriation includes $2,397,000 for 2013 and $16,686,000 $17,381,000
223.6 for 2014.
223.7The 2015 appropriation includes $2,626,000 $1,931,000 for 2014 and $22,434,000
223.8 $20,660,000 for 2015.

223.9    Sec. 19. Laws 2013, chapter 116, article 6, section 12, subdivision 4, is amended to read:
223.10    Subd. 4. Alternative facilities bonding aid. For alternative facilities bonding aid,
223.11according to Minnesota Statutes, section 123B.59, subdivision 1:

223.12 223.13		$	19,287,000 19,982,000	.....	2014
223.14		$	19,287,000	.....	2015

223.15The 2014 appropriation includes $2,623,000 for 2013 and $16,664,000 $17,359,000
223.16 for 2014.
223.17The 2015 appropriation includes $2,623,000 $1,928,000 for 2014 and $16,664,000
223.18 $17,359,000 for 2015.

223.19    Sec. 20. Laws 2013, chapter 116, article 6, section 12, subdivision 6, is amended to read:
223.20    Subd. 6. Deferred maintenance aid. For deferred maintenance aid, according to
223.21Minnesota Statutes, section 123B.591, subdivision 4:

223.22 223.23		$	3,564,000 3,858,000	.....	2014
223.24 223.25		$	3,730,000 4,024,000	.....	2015

223.26The 2014 appropriation includes $456,000 for 2013 and $3,108,000 $3,402,000
223.27 for 2014.
223.28The 2015 appropriation includes $489,000 $378,000 for 2014 and $3,241,000
223.29 $3,646,000 for 2015.

223.31    Sec. 21. Laws 2013, chapter 116, article 7, section 21, subdivision 3, is amended to read:
223.32    Subd. 3. School breakfast. For traditional school breakfast aid under Minnesota
223.33Statutes, section 124D.1158:

224.1 224.2		$	5,711,000 5,308,000	.....	2014
224.3 224.4		$	6,022,000 5,607,000	.....	2015

224.5    Sec. 22. Laws 2013, chapter 116, article 7, section 21, subdivision 4, is amended to read:
224.6    Subd. 4. Kindergarten milk. For kindergarten milk aid under Minnesota Statutes,
224.7section 124D.118:

224.8 224.9		$	1,039,000 992,000	.....	2014
224.10 224.11		$	1,049,000 1,002,000	.....	2015

224.12    Sec. 23. Laws 2013, chapter 116, article 7, section 21, subdivision 6, is amended to read:
224.13    Subd. 6. Basic system support. For basic system support grants under Minnesota
224.14Statutes, section 134.355:

224.15 224.16		$	13,570,000 14,058,000	.....	2014
224.17 224.18		$	13,570,000 13,570,000	.....	2015

224.19The 2014 appropriation includes $1,845,000 for 2013 and $11,725,000 $12,213,000
224.20 for 2014.
224.21The 2015 appropriation includes $1,845,000 $1,357,000 for 2014 and $11,725,000
224.22 $12,213,000 for 2015.

224.23    Sec. 24. Laws 2013, chapter 116, article 7, section 21, subdivision 7, is amended to read:
224.24    Subd. 7. Multicounty, multitype library systems. For grants under Minnesota
224.25Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:

224.26 224.27		$	1,300,000 1,346,000	.....	2014
224.28		$	1,300,000	.....	2015

224.29The 2014 appropriation includes $176,000 for 2013 and $1,124,000 $1,170,000
224.30 for 2014.
224.31The 2015 appropriation includes $176,000 $130,000 for 2014 and $1,124,000
224.32 $1,170,000 for 2015.

224.33    Sec. 25. Laws 2013, chapter 116, article 7, section 21, subdivision 9, is amended to read:
225.1    Subd. 9. Regional library telecommunications aid. For regional library
225.2telecommunications aid under Minnesota Statutes, section 134.355:

225.3 225.4		$	2,300,000 2,382,000	.....	2014
225.5		$	2,300,000	.....	2015

225.6The 2014 appropriation includes $312,000 for 2013 and $1,988,000 $2,070,000
225.7 for 2014.
225.8The 2015 appropriation includes $312,000 $230,000 for 2014 and $1,988,000
225.9 $2,070,000 for 2015.

225.12    Sec. 26. Laws 2013, chapter 116, article 8, section 5, subdivision 3, is amended to read:
225.13    Subd. 3. Early childhood family education aid. For early childhood family
225.14education aid under Minnesota Statutes, section 124D.135:

225.15 225.16		$	22,078,000 22,797,000	.....	2014
225.17 225.18		$	22,425,000 22,001,000	.....	2015

225.19The 2014 appropriation includes $3,008,000 for 2013 and $19,070,000 $19,789,000
225.20 for 2014.
225.21The 2015 appropriation includes $3,001,000 $2,198,000 for 2014 and $19,424,000
225.22 $19,803,000 for 2015.

225.23    Sec. 27. Laws 2013, chapter 116, article 8, section 5, subdivision 10, is amended to read:
225.24    Subd. 10. Community education aid. For community education aid under
225.25Minnesota Statutes, section 124D.20:

225.26 225.27		$	935,000 955,000	.....	2014
225.28 225.29		$	1,056,000 1,060,000	.....	2015

225.30The 2014 appropriation includes $118,000 for 2013 and $817,000 $837,000 for 2014.
225.31The 2015 appropriation includes $128,000 $93,000 for 2014 and $928,000 $967,000
225.32 for 2015.

225.33    Sec. 28. Laws 2013, chapter 116, article 8, section 5, subdivision 11, is amended to read:
226.1    Subd. 11. Adults with disabilities program aid. For adults with disabilities
226.2programs under Minnesota Statutes, section 124D.56:

226.3 226.4		$	710,000 735,000	.....	2014
226.5		$	710,000	.....	2015

226.6The 2014 appropriation includes $96,000 for 2013 and $614,000 $639,000 for 2014.
226.7The 2015 appropriation includes $96,000 $71,000 for 2014 and $614,000 $639,000
226.8 for 2015.


226.12    Section 1. Minnesota Statutes 2012, section 144.551, subdivision 1, is amended to read:
226.13    Subdivision 1. Restricted construction or modification. (a) The following
226.14construction or modification may not be commenced:
226.15(1) any erection, building, alteration, reconstruction, modernization, improvement,
226.16extension, lease, or other acquisition by or on behalf of a hospital that increases the bed
226.17capacity of a hospital, relocates hospital beds from one physical facility, complex, or site
226.18to another, or otherwise results in an increase or redistribution of hospital beds within
226.19the state; and
226.20(2) the establishment of a new hospital.
226.21(b) This section does not apply to:
226.22(1) construction or relocation within a county by a hospital, clinic, or other health
226.23care facility that is a national referral center engaged in substantial programs of patient
226.24care, medical research, and medical education meeting state and national needs that
226.25receives more than 40 percent of its patients from outside the state of Minnesota;
226.26(2) a project for construction or modification for which a health care facility held
226.27an approved certificate of need on May 1, 1984, regardless of the date of expiration of
226.28the certificate;
226.29(3) a project for which a certificate of need was denied before July 1, 1990, if a
226.30timely appeal results in an order reversing the denial;
226.31(4) a project exempted from certificate of need requirements by Laws 1981, chapter
226.32200, section 2;
227.1(5) a project involving consolidation of pediatric specialty hospital services within
227.2the Minneapolis-St. Paul metropolitan area that would not result in a net increase in the
227.3number of pediatric specialty hospital beds among the hospitals being consolidated;
227.4(6) a project involving the temporary relocation of pediatric-orthopedic hospital beds
227.5to an existing licensed hospital that will allow for the reconstruction of a new philanthropic,
227.6pediatric-orthopedic hospital on an existing site and that will not result in a net increase in
227.7the number of hospital beds. Upon completion of the reconstruction, the licenses of both
227.8hospitals must be reinstated at the capacity that existed on each site before the relocation;
227.9(7) the relocation or redistribution of hospital beds within a hospital building or
227.10identifiable complex of buildings provided the relocation or redistribution does not result
227.11in: (i) an increase in the overall bed capacity at that site; (ii) relocation of hospital beds
227.12from one physical site or complex to another; or (iii) redistribution of hospital beds within
227.13the state or a region of the state;
227.14(8) relocation or redistribution of hospital beds within a hospital corporate system
227.15that involves the transfer of beds from a closed facility site or complex to an existing site
227.16or complex provided that: (i) no more than 50 percent of the capacity of the closed facility
227.17is transferred; (ii) the capacity of the site or complex to which the beds are transferred
227.18does not increase by more than 50 percent; (iii) the beds are not transferred outside of a
227.19federal health systems agency boundary in place on July 1, 1983; and (iv) the relocation or
227.20redistribution does not involve the construction of a new hospital building;
227.21(9) a construction project involving up to 35 new beds in a psychiatric hospital in
227.22Rice County that primarily serves adolescents and that receives more than 70 percent of its
227.23patients from outside the state of Minnesota;
227.24(10) a project to replace a hospital or hospitals with a combined licensed capacity
227.25of 130 beds or less if: (i) the new hospital site is located within five miles of the current
227.26site; and (ii) the total licensed capacity of the replacement hospital, either at the time of
227.27construction of the initial building or as the result of future expansion, will not exceed 70
227.28licensed hospital beds, or the combined licensed capacity of the hospitals, whichever is less;
227.29(11) the relocation of licensed hospital beds from an existing state facility operated
227.30by the commissioner of human services to a new or existing facility, building, or complex
227.31operated by the commissioner of human services; from one regional treatment center
227.32site to another; or from one building or site to a new or existing building or site on the
227.33same campus;
227.34(12) the construction or relocation of hospital beds operated by a hospital having a
227.35statutory obligation to provide hospital and medical services for the indigent that does not
227.36result in a net increase in the number of hospital beds, notwithstanding section 144.552, 27
228.1beds, of which 12 serve mental health needs, may be transferred from Hennepin County
228.2Medical Center to Regions Hospital under this clause;
228.3(13) a construction project involving the addition of up to 31 new beds in an existing
228.4nonfederal hospital in Beltrami County;
228.5(14) a construction project involving the addition of up to eight new beds in an
228.6existing nonfederal hospital in Otter Tail County with 100 licensed acute care beds;
228.7(15) a construction project involving the addition of 20 new hospital beds
228.8used for rehabilitation services in an existing hospital in Carver County serving the
228.9southwest suburban metropolitan area. Beds constructed under this clause shall not be
228.10eligible for reimbursement under medical assistance, general assistance medical care,
228.11or MinnesotaCare;
228.12(16) a project for the construction or relocation of up to 20 hospital beds for the
228.13operation of up to two psychiatric facilities or units for children provided that the operation
228.14of the facilities or units have received the approval of the commissioner of human services;
228.15(17) a project involving the addition of 14 new hospital beds to be used for
228.16rehabilitation services in an existing hospital in Itasca County;
228.17(18) a project to add 20 licensed beds in existing space at a hospital in Hennepin
228.18County that closed 20 rehabilitation beds in 2002, provided that the beds are used only
228.19for rehabilitation in the hospital's current rehabilitation building. If the beds are used for
228.20another purpose or moved to another location, the hospital's licensed capacity is reduced
228.21by 20 beds;
228.22(19) a critical access hospital established under section 144.1483, clause (9), and
228.23section 1820 of the federal Social Security Act, United States Code, title 42, section
228.241395i-4, that delicensed beds since enactment of the Balanced Budget Act of 1997, Public
228.25Law 105-33, to the extent that the critical access hospital does not seek to exceed the
228.26maximum number of beds permitted such hospital under federal law;
228.27(20) notwithstanding section 144.552, a project for the construction of a new hospital
228.28in the city of Maple Grove with a licensed capacity of up to 300 beds provided that:
228.29(i) the project, including each hospital or health system that will own or control the
228.30entity that will hold the new hospital license, is approved by a resolution of the Maple
228.31Grove City Council as of March 1, 2006;
228.32(ii) the entity that will hold the new hospital license will be owned or controlled by
228.33one or more not-for-profit hospitals or health systems that have previously submitted a
228.34plan or plans for a project in Maple Grove as required under section 144.552, and the
228.35plan or plans have been found to be in the public interest by the commissioner of health
228.36as of April 1, 2005;
229.1(iii) the new hospital's initial inpatient services must include, but are not limited
229.2to, medical and surgical services, obstetrical and gynecological services, intensive
229.3care services, orthopedic services, pediatric services, noninvasive cardiac diagnostics,
229.4behavioral health services, and emergency room services;
229.5(iv) the new hospital:
229.6(A) will have the ability to provide and staff sufficient new beds to meet the growing
229.7needs of the Maple Grove service area and the surrounding communities currently being
229.8served by the hospital or health system that will own or control the entity that will hold
229.9the new hospital license;
229.10(B) will provide uncompensated care;
229.11(C) will provide mental health services, including inpatient beds;
229.12(D) will be a site for workforce development for a broad spectrum of
229.13health-care-related occupations and have a commitment to providing clinical training
229.14programs for physicians and other health care providers;
229.15(E) will demonstrate a commitment to quality care and patient safety;
229.16(F) will have an electronic medical records system, including physician order entry;
229.17(G) will provide a broad range of senior services;
229.18(H) will provide emergency medical services that will coordinate care with regional
229.19providers of trauma services and licensed emergency ambulance services in order to
229.20enhance the continuity of care for emergency medical patients; and
229.21(I) will be completed by December 31, 2009, unless delayed by circumstances
229.22beyond the control of the entity holding the new hospital license; and
229.23(v) as of 30 days following submission of a written plan, the commissioner of health
229.24has not determined that the hospitals or health systems that will own or control the entity
229.25that will hold the new hospital license are unable to meet the criteria of this clause;
229.26(21) a project approved under section 144.553;
229.27(22) a project for the construction of a hospital with up to 25 beds in Cass County
229.28within a 20-mile radius of the state Ah-Gwah-Ching facility, provided the hospital's
229.29license holder is approved by the Cass County Board;
229.30(23) a project for an acute care hospital in Fergus Falls that will increase the bed
229.31capacity from 108 to 110 beds by increasing the rehabilitation bed capacity from 14 to 16
229.32and closing a separately licensed 13-bed skilled nursing facility; or
229.33(24) notwithstanding section 144.552, a project for the construction and expansion
229.34of a specialty psychiatric hospital in Hennepin County for up to 50 beds, exclusively for
229.35patients who are under 21 years of age on the date of admission. The commissioner
229.36conducted a public interest review of the mental health needs of Minnesota and the Twin
230.1Cities metropolitan area in 2008. No further public interest review shall be conducted for
230.2the construction or expansion project under this clause; or
230.3(25) a project for a 16-bed psychiatric hospital in the city of Thief River Falls, if
230.4the commissioner finds the project is in the public interest after the public interest review
230.5conducted under section 144.552 is complete.
230.6EFFECTIVE DATE.This section is effective the day following final enactment.

230.7    Sec. 2. [144.9513] HEALTHY HOUSING GRANTS.
230.8    Subdivision 1. Definitions. For purposes of this section and sections 144.9501 to
230.9144.9512, the following terms have the meanings given.
230.10(a) "Housing" means a room or group of rooms located within a dwelling forming
230.11a single habitable unit with facilities used or intended to be used for living, sleeping,
230.12cooking, and eating.
230.13(b) "Healthy housing" means housing that is sited, designed, built, renovated, and
230.14maintained in ways that supports the health of residents.
230.15(c) "Housing-based health threat" means a chemical, biologic, or physical agent in
230.16the immediate housing environment which constitutes a potential or actual hazard to
230.17human health at acute or chronic exposure levels.
230.18(d) "Primary prevention" means preventing exposure to housing-based health threats
230.19before seeing clinical symptoms or a diagnosis.
230.20    Subd. 2. Grants; administration. Grant applicants shall submit applications to
230.21the commissioner as directed by a request for proposals. Grants must be competitively
230.22awarded and recipients of a grant under this section must prepare and submit a quarterly
230.23progress report to the commissioner beginning three months after receipt of the grant. The
230.24commissioner shall provide technical assistance and program support as needed to ensure
230.25that housing-based health threats are effectively identified, mitigated, and evaluated by
230.26grantees.
230.27    Subd. 3. Education and training grant; eligible activities. (a) Within the limits of
230.28available appropriations, the commissioner shall make grants to nonprofit organizations,
230.29community health boards, and community action agencies under section 256E.31 with
230.30expertise in providing outreach, education, and training on healthy homes subjects and in
230.31providing comprehensive healthy homes assessments and interventions to provide healthy
230.32housing education, training, and technical assistance services for persons engaged in
230.33addressing housing-based health threats and other individuals impacted by housing-based
230.34health threats.
230.35(b) The grantee may conduct the following activities:
231.1(1) implement and maintain primary prevention programs to reduce housing-based
231.2health threats that include the following:
231.3(i) providing education materials to the general public and to property owners,
231.4contractors, code officials, health care providers, public health professionals, health
231.5educators, nonprofit organizations, and other persons and organizations engaged in
231.6housing and health issues;
231.7(ii) promoting awareness of community, legal, and housing resources; and
231.8(iii) promoting the use of hazard reduction measures in new housing construction
231.9and housing rehabilitation programs;
231.10(2) provide training on identifying and addressing housing-based health threats;
231.11(3) provide technical assistance on the implementation of mitigation measures;
231.12(4) promote adoption of evidence-based best practices for mitigation of
231.13housing-based health threats; or
231.14(5) develop work practices for addressing specific housing-based health threats.

231.15    Sec. 3. [144A.484] INTEGRATED LICENSURE; HOME AND
231.16COMMUNITY-BASED SERVICES DESIGNATION.
231.17    Subdivision 1. Integrated licensing established. (a) From January 1, 2014, to June
231.1830, 2015, the commissioner of health shall enforce the home and community-based services
231.19standards under chapter 245D for those providers who also have a home care license
231.20pursuant to chapter 144A as required under Laws 2013, chapter 108, article 11, section 31,
231.21and article 8, section 60. During this period, the commissioner shall provide technical
231.22assistance on how to achieve and maintain compliance with applicable law or rules
231.23governing the provision of home and community-based services, including complying with
231.24the service recipient rights notice in subdivision 4, clause (4). If, during the survey, the
231.25commissioner finds that the licensee has failed to achieve compliance with an applicable
231.26law or rule under chapter 245D and this failure does not imminently endanger the health,
231.27safety, or rights of the persons served by the program, the commissioner may issue a
231.28licensing survey report with recommendations for achieving and maintaining compliance.
231.29(b) Beginning July 1, 2015, a home care provider applicant or license holder may
231.30apply to the commissioner of health for a home and community-based services designation
231.31for the provision of basic home and community-based services identified under section
231.32245D.03, subdivision 1, paragraph (b). The designation allows the license holder to
231.33provide basic home and community-based services that would otherwise require licensure
231.34under chapter 245D, under the license holder's home care license governed by sections
231.35144A.43 to 144A.481.
232.1    Subd. 2. Application for home and community-based services designation. An
232.2application for a home and community-based services designation must be made on the
232.3forms and in the manner prescribed by the commissioner. The commissioner shall provide
232.4the applicant with instruction for completing the application and provide information
232.5about the requirements of other state agencies that affect the applicant. Application for
232.6the home and community-based services designation is subject to the requirements under
232.7section 144A.473.
232.8    Subd. 3. Home and community-based services designation fees. A home care
232.9provider applicant or licensee applying for the home and community-based services
232.10designation or renewal of a home and community-based services designation must submit
232.11a fee in the amount specified in subdivision 8.
232.12    Subd. 4. Applicability of home and community-based services requirements. A
232.13home care provider with a home and community-based services designation must comply
232.14with the requirements for home care services governed by this chapter. For the provision
232.15of basic home and community-based services, the home care provider must also comply
232.16with the following home and community-based services licensing requirements:
232.17(1) person-centered planning requirements in section 245D.07;
232.18(2) protection standards in section 245D.06;
232.19(3) emergency use of manual restraints in section 245D.061; and
232.20(4) service recipient rights in section 245D.04, subdivision 3, paragraph (a), clauses
232.21(5), (7), (8), (12), and (13), and paragraph (b).
232.22A home care provider with the integrated license-HCBS designation may utilize a bill of
232.23rights which incorporates the service recipient rights in section 245D.04, subdivision 3,
232.24paragraph (a), clauses (5), (7), (8), (12), and (13), and paragraph (b) with the home care
232.25bill of rights in section 144A.44.
232.26    Subd. 5. Monitoring and enforcement. (a) The commissioner shall monitor for
232.27compliance with the home and community-based services requirements identified in
232.28subdivision 5, in accordance with this section and any agreements by the commissioners
232.29of health and human services.
232.30(b) The commissioner shall enforce compliance with applicable home and
232.31community-based services licensing requirements as follows:
232.32(1) the commissioner may deny a home and community-based services designation
232.33in accordance with section 144A.473 or 144A.475; and
232.34(2) if the commissioner finds that the applicant or license holder has failed to comply
232.35with the applicable home and community-based services designation requirements the
232.36commissioner may issue:
233.1(i) a correction order in accordance with section 144A.474;
233.2(ii) an order of conditional license in accordance with section 144A.475;
233.3(iii) a sanction in accordance with section 144A.475; or
233.4(iv) any combination of clauses (i) to (iii).
233.5    Subd. 6. Appeals. A home care provider applicant that has been denied a temporary
233.6license will also be denied their application for the home and community-based services
233.7designation. The applicant may request reconsideration in accordance with section
233.8144A.473, subdivision 3. A licensed home care provider whose application for a home
233.9and community-based services designation has been denied or whose designation has been
233.10suspended or revoked may appeal the denial, suspension, revocation, or refusal to renew a
233.11home and community-based services designation in accordance with section 144A.475.
233.12A license holder may request reconsideration of a correction order in accordance with
233.13section 144A.474, subdivision 12.
233.14    Subd. 7. Agreements. The commissioners of health and human services shall enter
233.15into any agreements necessary to implement this section.
233.16    Subd. 8. Fees; home and community-based services designation. (a) The initial
233.17fee for a basic home and community-based services designation is $155. A home care
233.18provider who is seeking to renew the provider's home and community-based services
233.19designation must pay an annual nonrefundable fee with the annual home care license
233.20fee according to the following schedule and based on revenues from the home and
233.21community-based services:

233.22 233.23	Provider Annual Revenue from HCBS	HCBS Designation
233.24	greater than $1,500,000	$320
233.25	greater than $1,275,000 and no more than $1,500,000	$300
233.26	greater than $1,100,000 and no more than $1,275,000	$280
233.27	greater than $950,000 and no more than $1,100,000	$260
233.28	greater than $850,000 and no more than $950,000	$240
233.29	greater than $750,000 and no more than $850,000	$220
233.30	greater than $650,000 and no more than $750,000	$200
233.31	greater than $550,000 and no more than $650,000	$180
233.32	greater than $450,000 and no more than $550,000	$160
233.33	greater than $350,000 and no more than $450,000	$140
233.34	greater than $250,000 and no more than $350,000	$120
233.35	greater than $100,000 and no more than $250,000	$100
233.36	greater than $50,000 and no more than $100,000	$80
233.37	greater than $25,000 and no more than $50,000	$60
233.38	no more than $25,000	$40

234.1(b) Fees and penalties collected under this section shall be deposited in the state
234.2treasury and credited to the state government special revenue fund.
234.3    Subd. 9. Study and report about client bill of rights. The commissioner shall
234.4consult with Aging Services of Minnesota, Care Providers of Minnesota, Minnesota Home
234.5Care Association, Department of Human Services, the Ombudsman for Long-Term Care,
234.6and other stakeholders to review how to streamline the client bill of rights requirements
234.7in sections 144A.44, 144A.441, and 245D.04 for providers whose practices fit into one
234.8or several of these practice areas, while assuring and maintaining the health and safety
234.9of clients. The evaluation shall consider the federal client bill of rights requirements for
234.10Medicare-certified home care providers. The evaluation must determine whether there
234.11are duplications or conflicts of client rights, evaluate how to reduce the complexity of the
234.12client bill of rights requirements for providers and consumers, determine which of the
234.13rights must be included in a client bill of rights document, and evaluate whether there are
234.14other ways to ensure that consumers know their rights. The commissioner shall report to
234.15the chairs of the health and human services committees of the legislature no later than
234.16February 15, 2015, along with any recommendations for legislative changes.
234.17EFFECTIVE DATE.Minnesota Statutes, section 144A.484, subdivisions 2 to 8,
234.18are effective July 1, 2015.

234.19    Sec. 4. Minnesota Statutes 2013 Supplement, section 145.4716, subdivision 2, is
234.20amended to read:
234.21    Subd. 2. Duties of director. The director of child sex trafficking prevention is
234.22responsible for the following:
234.23    (1) developing and providing comprehensive training on sexual exploitation of
234.24youth for social service professionals, medical professionals, public health workers, and
234.25criminal justice professionals;
234.26    (2) collecting, organizing, maintaining, and disseminating information on sexual
234.27exploitation and services across the state, including maintaining a list of resources on the
234.28Department of Health Web site;
234.29    (3) monitoring and applying for federal funding for antitrafficking efforts that may
234.30benefit victims in the state;
234.31    (4) managing grant programs established under sections 145.4716 to 145.4718;
234.32    (5) managing the request for proposals for grants for comprehensive services,
234.33including trauma-informed, culturally specific services;
234.34    (6) identifying best practices in serving sexually exploited youth, as defined in
234.35section 260C.007, subdivision 31;
235.1    (6) (7) providing oversight of and technical support to regional navigators pursuant
235.2to section 145.4717;
235.3    (7) (8) conducting a comprehensive evaluation of the statewide program for safe
235.4harbor of sexually exploited youth; and
235.5    (8) (9) developing a policy consistent with the requirements of chapter 13 for sharing
235.6data related to sexually exploited youth, as defined in section 260C.007, subdivision 31,
235.7among regional navigators and community-based advocates.

235.8    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.04, subdivision 21, is
235.9amended to read:
235.10    Subd. 21. Provider enrollment. (a) If the commissioner or the Centers for
235.11Medicare and Medicaid Services determines that a provider is designated "high-risk," the
235.12commissioner may withhold payment from providers within that category upon initial
235.13enrollment for a 90-day period. The withholding for each provider must begin on the date
235.14of the first submission of a claim.
235.15(b) An enrolled provider that is also licensed by the commissioner under chapter
235.16245A or that is licensed by the Department of Health under chapter 144A and has a
235.17HCBS designation on the home care license must designate an individual as the entity's
235.18compliance officer. The compliance officer must:
235.19(1) develop policies and procedures to assure adherence to medical assistance laws
235.20and regulations and to prevent inappropriate claims submissions;
235.21(2) train the employees of the provider entity, and any agents or subcontractors of
235.22the provider entity including billers, on the policies and procedures under clause (1);
235.23(3) respond to allegations of improper conduct related to the provision or billing of
235.24medical assistance services, and implement action to remediate any resulting problems;
235.25(4) use evaluation techniques to monitor compliance with medical assistance laws
235.26and regulations;
235.27(5) promptly report to the commissioner any identified violations of medical
235.28assistance laws or regulations; and
235.29    (6) within 60 days of discovery by the provider of a medical assistance
235.30reimbursement overpayment, report the overpayment to the commissioner and make
235.31arrangements with the commissioner for the commissioner's recovery of the overpayment.
235.32The commissioner may require, as a condition of enrollment in medical assistance, that a
235.33provider within a particular industry sector or category establish a compliance program that
235.34contains the core elements established by the Centers for Medicare and Medicaid Services.
236.1(c) The commissioner may revoke the enrollment of an ordering or rendering
236.2provider for a period of not more than one year, if the provider fails to maintain and, upon
236.3request from the commissioner, provide access to documentation relating to written orders
236.4or requests for payment for durable medical equipment, certifications for home health
236.5services, or referrals for other items or services written or ordered by such provider, when
236.6the commissioner has identified a pattern of a lack of documentation. A pattern means a
236.7failure to maintain documentation or provide access to documentation on more than one
236.8occasion. Nothing in this paragraph limits the authority of the commissioner to sanction a
236.9provider under the provisions of section 256B.064.
236.10(d) The commissioner shall terminate or deny the enrollment of any individual or
236.11entity if the individual or entity has been terminated from participation in Medicare or
236.12under the Medicaid program or Children's Health Insurance Program of any other state.
236.13(e) As a condition of enrollment in medical assistance, the commissioner shall
236.14require that a provider designated "moderate" or "high-risk" by the Centers for Medicare
236.15and Medicaid Services or the commissioner permit the Centers for Medicare and Medicaid
236.16Services, its agents, or its designated contractors and the state agency, its agents, or its
236.17designated contractors to conduct unannounced on-site inspections of any provider location.
236.18The commissioner shall publish in the Minnesota Health Care Program Provider Manual a
236.19list of provider types designated "limited," "moderate," or "high-risk," based on the criteria
236.20and standards used to designate Medicare providers in Code of Federal Regulations, title
236.2142, section 424.518. The list and criteria are not subject to the requirements of chapter 14.
236.22The commissioner's designations are not subject to administrative appeal.
236.23(f) As a condition of enrollment in medical assistance, the commissioner shall
236.24require that a high-risk provider, or a person with a direct or indirect ownership interest in
236.25the provider of five percent or higher, consent to criminal background checks, including
236.26fingerprinting, when required to do so under state law or by a determination by the
236.27commissioner or the Centers for Medicare and Medicaid Services that a provider is
236.28designated high-risk for fraud, waste, or abuse.
236.29(g)(1) Upon initial enrollment, reenrollment, and revalidation, all durable medical
236.30equipment, prosthetics, orthotics, and supplies (DMEPOS) suppliers operating in
236.31Minnesota and receiving Medicaid funds must purchase a surety bond that is annually
236.32renewed and designates the Minnesota Department of Human Services as the obligee, and
236.33must be submitted in a form approved by the commissioner.
236.34(2) At the time of initial enrollment or reenrollment, the provider agency must
236.35purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
236.36in the previous calendar year is up to and including $300,000, the provider agency must
237.1purchase a performance bond of $50,000. If a revalidating provider's Medicaid revenue
237.2in the previous calendar year is over $300,000, the provider agency must purchase a
237.3performance bond of $100,000. The performance bond must allow for recovery of costs
237.4and fees in pursuing a claim on the bond.
237.5(h) The Department of Human Services may require a provider to purchase a
237.6performance surety bond as a condition of initial enrollment, reenrollment, reinstatement,
237.7or continued enrollment if: (1) the provider fails to demonstrate financial viability, (2) the
237.8department determines there is significant evidence of or potential for fraud and abuse by
237.9the provider, or (3) the provider or category of providers is designated high-risk pursuant
237.10to paragraph (a) and as per Code of Federal Regulations, title 42, section 455.450. The
237.11performance bond must be in an amount of $100,000 or ten percent of the provider's
237.12payments from Medicaid during the immediately preceding 12 months, whichever is
237.13greater. The performance bond must name the Department of Human Services as an
237.14obligee and must allow for recovery of costs and fees in pursuing a claim on the bond.

237.15    Sec. 6. LEGISLATIVE HEALTH CARE WORKFORCE COMMISSION.
237.16    Subdivision 1. Legislative oversight. The Legislative Health Care Workforce
237.17Commission is created to study and make recommendations to the legislature on how to
237.18achieve the goal of strengthening the workforce in healthcare.
237.19    Subd. 2. Membership. The Legislative Health Care Workforce Commission
237.20consists of five members of the senate appointed by the Subcommittee on Committees
237.21of the Committee on Rules and Administration and five members of the house of
237.22representatives appointed by the speaker of the house. The Legislative Health Care
237.23Workforce Commission must include three members of the majority party and two
237.24members of the minority party in each house.
237.25    Subd. 3. Report to the legislature. The Legislative Health Care Workforce
237.26Commission must provide a report making recommendations to the legislature by
237.27December 31, 2014. The report must:
237.28(1) identify current and anticipated health care workforce shortages, by both
237.29provider type and geography;
237.30(2) evaluate the effectiveness of incentives currently available to develop, attract,
237.31and retain a highly skilled health care workforce;
237.32(3) study alternative incentives to develop, attract, and retain a highly skilled and
237.33diverse health care workforce; and
237.34(4) identify current causes and potential solutions to barriers related to the primary
237.35care workforce, including, but not limited to:
238.1(i) training and residency shortages;
238.2(ii) disparities in income between primary care and other providers; and
238.3(iii) negative perceptions of primary care among students.
238.4    Subd. 4. Assistance to the commission. The commissioners of health, human
238.5services, commerce, and other state agencies shall provide assistance and technical
238.6support to the commission at the request of the commission. The commission may
238.7convene subcommittees to provide additional assistance and advice to the commission.
238.8    Subd. 5. Expiration. The Legislative Health Care Workforce Commission expires
238.9on January 1, 2015.
238.10EFFECTIVE DATE.This section is effective the day following final enactment.

238.11    Sec. 7. GRANT PROGRAMS TO ADDRESS MINORITY HEALTH
238.12DISPARITIES.
238.13    Subdivision 1. Definitions. (a) For purposes of this section, the following terms
238.14have the meanings given.
238.15(b) "Dementia" means a condition ascribed within the brain that leads to confusion,
238.16lack of focus, and decreased memory.
238.17(c) "Education activities" means providing materials related to health care topics
238.18in ethnic-specific languages through materials including, but not limited to, Web sites,
238.19brochures, flyers, and other similar vehicles.
238.20(d) "Minority populations" means racial and ethnic groups including, but not limited
238.21to, African-Americans, Native Americans, Hmong, Asians, and other similar groups.
238.22(e) "Outreach" means the active pursuit of people within the minority groups
238.23through specific and targeted activities to contact individuals who may not regularly
238.24be contacted by health care professionals.
238.25    Subd. 2. Grants; distribution. The commissioner of health shall distribute grant
238.26funds to grantees for the following purposes:
238.27(1) dementia education and training to specific minority and under-represented
238.28groups;
238.29(2) a training conference related to immigrant and refugee mental health issues; and
238.30(3) other programs, as prioritized by the commissioner, relating to health disparities
238.31in minority populations, including, but not limited to, a Somali women-led prevention
238.32health care agency located in Minnesota focused on minority women's health disparities.
238.33    Subd. 3. Grants; administration. Grant applicants shall submit applications
238.34to the commissioner of health as directed by a request for proposals. Grants must be
238.35competitively awarded and recipients of a grant under this section must prepare and
239.1submit a quarterly progress report to the commissioner beginning three months after
239.2receipt of the grant. The commissioner shall provide technical assistance and program
239.3support as needed, including, but not limited to, assurance that minority individuals with
239.4dementia are effectively identified, mitigated, and evaluated by grantees.
239.5    Subd. 4. Dementia education and training grant; eligible activities for dementia
239.6outreach. (a) Within the limits of available appropriations, the commissioner shall make
239.7a grant to a nonprofit organization with expertise in providing outreach, education, and
239.8training on dementia, Alzheimer's, and other related disabilities within specific minority
239.9and under-represented groups.
239.10(b) The grantee must conduct the following activities:
239.11(1) providing and making available educational materials to the general public
239.12as well as specific minority populations;
239.13(2) promoting awareness of dementia-related resources and educational materials;
239.14and
239.15(3) promoting the use of materials within health care organizations.

239.16    Sec. 8. FULL-TIME EMPLOYEE RESTRICTION.
239.17No more than one full-time employee may be hired by the Department of Health to
239.18administer the grants under Minnesota Statutes, section 144.9513.


239.21    Section 1. Minnesota Statutes 2012, section 256.01, is amended by adding a
239.22subdivision to read:
239.23    Subd. 38. Contract to match recipient third-party liability information. The
239.24commissioner may enter into a contract with a national organization to match recipient
239.25third-party liability information and provide coverage and insurance primacy information
239.26to the department at no charge to providers and the clearinghouses.

239.27    Sec. 2. Minnesota Statutes 2012, section 256.9685, subdivision 1, is amended to read:
239.28    Subdivision 1. Authority. (a) The commissioner shall establish procedures for
239.29determining medical assistance and general assistance medical care payment rates under
239.30a prospective payment system for inpatient hospital services in hospitals that qualify as
239.31vendors of medical assistance. The commissioner shall establish, by rule, procedures for
239.32implementing this section and sections 256.9686, 256.969, and 256.9695. Services must
240.1meet the requirements of section 256B.04, subdivision 15, or 256D.03, subdivision 7,
240.2paragraph (b), to be eligible for payment.
240.3(b) The commissioner may reduce the types of inpatient hospital admissions that
240.4are required to be certified as medically necessary after notice in the State Register and a
240.530-day comment period.

240.6    Sec. 3. Minnesota Statutes 2012, section 256.9685, subdivision 1a, is amended to read:
240.7    Subd. 1a. Administrative reconsideration. Notwithstanding sections section
240.8 256B.04, subdivision 15, and 256D.03, subdivision 7, the commissioner shall establish
240.9an administrative reconsideration process for appeals of inpatient hospital services
240.10determined to be medically unnecessary. A physician or hospital may request a
240.11reconsideration of the decision that inpatient hospital services are not medically necessary
240.12by submitting a written request for review to the commissioner within 30 days after
240.13receiving notice of the decision. The reconsideration process shall take place prior to the
240.14procedures of subdivision 1b and shall be conducted by physicians that are independent
240.15of the case under reconsideration. A majority decision by the physicians is necessary to
240.16make a determination that the services were not medically necessary.

240.17    Sec. 4. Minnesota Statutes 2012, section 256.9686, subdivision 2, is amended to read:
240.18    Subd. 2. Base year. "Base year" means a hospital's fiscal year that is recognized
240.19by the Medicare program or a hospital's fiscal year specified by the commissioner if a
240.20hospital is not required to file information by the Medicare program from which cost and
240.21statistical data are used to establish medical assistance and general assistance medical
240.22care payment rates.

240.23    Sec. 5. Minnesota Statutes 2012, section 256.969, subdivision 1, is amended to read:
240.24    Subdivision 1. Hospital cost index. (a) The hospital cost index shall be the change
240.25in the Consumer Price Index-All Items (United States city average) (CPI-U) forecasted
240.26by Data Resources, Inc. The commissioner shall use the indices as forecasted in the
240.27third quarter of the calendar year prior to the rate year. The hospital cost index may be
240.28used to adjust the base year operating payment rate through the rate year on an annually
240.29compounded basis.
240.30(b) For fiscal years beginning on or after July 1, 1993, the commissioner of human
240.31services shall not provide automatic annual inflation adjustments for hospital payment
240.32rates under medical assistance, nor under general assistance medical care, except that
240.33the inflation adjustments under paragraph (a) for medical assistance, excluding general
241.1assistance medical care, shall apply through calendar year 2001. The index for calendar
241.2year 2000 shall be reduced 2.5 percentage points to recover overprojections of the index
241.3from 1994 to 1996. The commissioner of management and budget shall include as a
241.4budget change request in each biennial detailed expenditure budget submitted to the
241.5legislature under section 16A.11 annual adjustments in hospital payment rates under
241.6medical assistance and general assistance medical care, based upon the hospital cost index.

241.7    Sec. 6. Minnesota Statutes 2012, section 256.969, subdivision 2, is amended to read:
241.8    Subd. 2. Diagnostic categories. The commissioner shall use to the extent possible
241.9existing diagnostic classification systems, including such as the system used by the
241.10Medicare program all patient refined diagnosis-related groups (APR-DRGs) or other
241.11similar classification programs to determine the relative values of inpatient services
241.12and case mix indices. The commissioner may combine diagnostic classifications into
241.13diagnostic categories and may establish separate categories and numbers of categories
241.14based on program eligibility or hospital peer group. Relative values shall be recalculated
241.15 recalibrated when the base year is changed. Relative value determinations shall include
241.16paid claims for admissions during each hospital's base year. The commissioner may
241.17extend the time period forward to obtain sufficiently valid information to establish relative
241.18values supplement the diagnostic classification systems data with national averages.
241.19Relative value determinations shall not include property cost data, Medicare crossover
241.20data, and data on admissions that are paid a per day transfer rate under subdivision 14. The
241.21computation of the base year cost per admission must include identified outlier cases and
241.22their weighted costs up to the point that they become outlier cases, but must exclude costs
241.23recognized in outlier payments beyond that point. The commissioner may recategorize the
241.24diagnostic classifications and recalculate recalibrate relative values and case mix indices
241.25to reflect actual hospital practices, the specific character of specialty hospitals, or to reduce
241.26variances within the diagnostic categories after notice in the State Register and a 30-day
241.27comment period. The commissioner shall recategorize the diagnostic classifications and
241.28recalculate relative values and case mix indices based on the two-year schedule in effect
241.29prior to January 1, 2013, reflected in subdivision 2b. The first recategorization shall occur
241.30January 1, 2013, and shall occur every two years after. When rates are not rebased under
241.31subdivision 2b, the commissioner may establish relative values and case mix indices based
241.32on charge data and may update the base year to the most recent data available.

241.33    Sec. 7. Minnesota Statutes 2012, section 256.969, subdivision 2b, is amended to read:
242.1    Subd. 2b. Operating Hospital payment rates. (a) For discharges occurring on and
242.2after September 1, 2014, hospital inpatient services for hospitals located in Minnesota
242.3shall be paid according to the following:
242.4    (1) critical access hospitals as defined by Medicare shall be paid using a cost-based
242.5methodology;
242.6    (2) long-term care hospitals as defined by Medicare shall be paid on a per diem
242.7methodology under subdivision 25;
242.8    (3) rehabilitation hospitals or units of hospitals that are recognized as rehabilitation
242.9distinct parts as defined by Medicare shall be paid according to the methodology under
242.10subdivision 12; and
242.11    (4) all other hospitals shall be paid on a diagnosis-related group (DRG) methodology.
242.12    (b) In determining operating payment rates for admissions occurring on or after the
242.13rate year beginning January 1, 1991, and every two years after, or more frequently as
242.14determined by the commissioner, the commissioner shall obtain operating data from an
242.15updated base year and establish operating payment rates per admission for each hospital
242.16based on the cost-finding methods and allowable costs of the Medicare program in effect
242.17during the base year. Rates under the general assistance medical care, medical assistance,
242.18and MinnesotaCare programs shall not be rebased to more current data on January 1, 1997,
242.19January 1, 2005, for the first 24 months of the rebased period beginning January 1, 2009.
242.20 For the rebased period beginning January 1, 2011, through August 31, 2014, rates shall not
242.21be rebased, except that a Minnesota long-term hospital shall be rebased effective January 1,
242.222011, based on its most recent Medicare cost report ending on or before September 1, 2008,
242.23with the provisions under subdivisions 9 and 23, based on the rates in effect on December
242.2431, 2010. For subsequent rate setting periods after September 1, 2014, in which the base
242.25years are updated, a Minnesota long-term hospital's base year shall remain within the same
242.26period as other hospitals. Effective January 1, 2013, and after, rates shall not be rebased.
242.27(c) Effective for discharges occurring on and after September 1, 2014, payment rates
242.28for hospital inpatient services provided by hospitals located in Minnesota or the local trade
242.29area, except those hospitals paid under the methodologies under paragraph (a), clauses
242.30(2) and (3), shall be rebased incorporating cost and payment methodologies in a manner
242.31similar to Medicare. The base year for the rates effective September 1, 2014, shall be state
242.32fiscal year 2012. The rebasing must be budget neutral, ensuring that the total aggregate
242.33payments under the rebased system are equal to the total aggregate payments made for the
242.34same number and types of services in the base year. Separate budget neutrality calculations
242.35shall be determined for payments made to critical access hospitals and payments made to
242.36hospitals paid under the DRG system. Any rate increases or decreases under subdivision
243.13a that applied to the hospitals being rebased during the base period shall be incorporated
243.2into the budget neutrality calculation. Any rate increases or decreases that did not apply to
243.3the base period shall not be considered in the budget neutrality calculation.
243.4(d) For discharges occurring September 1, 2014, through and including June 30,
243.52016, the rebased rates shall include necessary adjustments to the projected rates that
243.6result in no greater than a five percent increase or decrease from the base year payments
243.7for any hospital. In addition to such adjustments, the commissioner may make adjustments
243.8to rates and must consider the impact of changes on at least the following when evaluating
243.9whether additional adjustments should be made:
243.10(1) pediatric services;
243.11(2) behavioral health services;
243.12(3) trauma services as defined by the National Uniform Billing Committee;
243.13(4) transplant services;
243.14(5) obstetric services, newborn services, and behavioral health services provided
243.15by hospitals outside the seven-county metropolitan area;
243.16(6) outlier admissions;
243.17(7) low volume providers; and
243.18(8) services provided by small rural hospitals that are not critical access hospitals.
243.19    (e) Hospital payment rates established under paragraph (c) shall incorporate the
243.20following:
243.21    (1) for hospitals paid under the DRG methodology, the base year operating payment
243.22rate per admission is standardized by the case mix index and adjusted by the hospital cost
243.23index, relative values, and disproportionate population adjustment. applicable Medicare
243.24wage index and adjusted by the hospital's disproportionate population adjustment;
243.25    (2) for critical access hospitals, interim per diem payment rates shall be based on the
243.26ratio of cost and charges reported on the base year Medicare cost report or reports and
243.27applied to medical assistance utilization data. Final settlement payments for a state fiscal
243.28year will be determined based on a review of the Medicaid cost report for the applicable
243.29state fiscal year;
243.30    (3) the cost and charge data used to establish operating hospital payment rates shall
243.31only reflect inpatient services covered by medical assistance and shall not include property
243.32cost information and costs recognized in outlier payments; and
243.33    (4) in determining hospital payment rates for discharges occurring on or after the
243.34rate year beginning January 1, 2011, through December 31, 2012, the hospital payment
243.35rate per discharge must be based on the cost-finding methods and allowable costs of the
243.36Medicare program in effect during the base year or years.

244.1    Sec. 8. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
244.2to read:
244.3    Subd. 2d. Budget neutrality factor. For the rebased period effective September 1,
244.42014, when rebasing rates under subdivision 2b, paragraph (c), the commissioner must
244.5apply a budget neutrality factor if applicable to all hospitals' rebased rates to ensure that
244.6total DRG and critical access hospital payments to hospitals do not exceed total DRG and
244.7critical access hospital payments that would have been made to hospitals for the same
244.8number and types of services if the relative rates and weights had not been recalibrated
244.9and cost-based payments for critical access hospitals had not been established. For the
244.10purposes of this section, budget neutrality factor equals the percentage change from total
244.11aggregate payments calculated under a new payment system to total aggregate payments
244.12calculated under the old system for the same number and types of services.

244.13    Sec. 9. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
244.14to read:
244.15    Subd. 2e. Interim payments. Notwithstanding subdivision 2b, for discharges
244.16occurring on or after September 1, 2014, and no later than June 30, 2015, the commissioner
244.17may implement an interim payment process to pay hospitals, including payments based on
244.18each hospital's average payments per claim for state fiscal years 2011 and 2012. These
244.19interim payments may be used to pay hospitals if the new payment system and rebasing
244.20under subdivision 2b is not complete by September 1, 2014. Claims paid at interim
244.21payment rates shall be reprocessed and paid at the rates established under the new system
244.22upon implementation of the new system.

244.23    Sec. 10. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
244.24to read:
244.25    Subd. 2f. Report required. (a) The commissioner shall annually report to the
244.26legislature beginning March 1, 2015, and ending March 1, 2016, on the financial impacts
244.27by hospital and policy ramifications, if any, resulting from payment methodology changes
244.28implemented after August 31, 2014, and before December 31, 2015.
244.29(b) The commissioner shall provide, at a minimum, the following information:
244.30(1) case-mix adjusted calculations of net payment impacts for each hospital resulting
244.31from the difference between the payments each hospital would have received under the
244.32payment methodology for discharges before August 31, 2014, and the payments each
244.33hospital has or is expected to receive for the same number and types of services under the
244.34payment methodology implemented effective September 1, 2014;
245.1(2) any adjustments authorized under subdivision 2b, paragraph (d), that were made
245.2and the impacts of those adjustments; and
245.3(3) recommendations for further refinement or improvement of the hospital inpatient
245.4payment system or methodologies.

245.5    Sec. 11. Minnesota Statutes 2012, section 256.969, subdivision 3a, is amended to read:
245.6    Subd. 3a. Payments. (a) Acute care hospital billings under the medical
245.7assistance program must not be submitted until the recipient is discharged. However,
245.8the commissioner shall establish monthly interim payments for inpatient hospitals that
245.9have individual patient lengths of stay over 30 days regardless of diagnostic category.
245.10Except as provided in section 256.9693, medical assistance reimbursement for treatment
245.11of mental illness shall be reimbursed based on diagnostic classifications. Individual
245.12hospital payments established under this section and sections 256.9685, 256.9686, and
245.13256.9695 , in addition to third-party and recipient liability, for discharges occurring during
245.14the rate year shall not exceed, in aggregate, the charges for the medical assistance covered
245.15inpatient services paid for the same period of time to the hospital. This payment limitation
245.16shall be calculated separately for medical assistance and general assistance medical
245.17care services. The limitation on general assistance medical care shall be effective for
245.18admissions occurring on or after July 1, 1991. Services that have rates established under
245.19subdivision 11 or 12, must be limited separately from other services. After consulting with
245.20the affected hospitals, the commissioner may consider related hospitals one entity and may
245.21merge the payment rates while maintaining separate provider numbers. The operating and
245.22property base rates per admission or per day shall be derived from the best Medicare and
245.23claims data available when rates are established. The commissioner shall determine the
245.24best Medicare and claims data, taking into consideration variables of recency of the data,
245.25audit disposition, settlement status, and the ability to set rates in a timely manner. The
245.26commissioner shall notify hospitals of payment rates by December 1 of the year preceding
245.27the rate year 30 days prior to implementation. The rate setting data must reflect the
245.28admissions data used to establish relative values. Base year changes from 1981 to the base
245.29year established for the rate year beginning January 1, 1991, and for subsequent rate years,
245.30shall not be limited to the limits ending June 30, 1987, on the maximum rate of increase
245.31under subdivision 1. The commissioner may adjust base year cost, relative value, and case
245.32mix index data to exclude the costs of services that have been discontinued by the October
245.331 of the year preceding the rate year or that are paid separately from inpatient services.
245.34Inpatient stays that encompass portions of two or more rate years shall have payments
245.35established based on payment rates in effect at the time of admission unless the date of
246.1admission preceded the rate year in effect by six months or more. In this case, operating
246.2payment rates for services rendered during the rate year in effect and established based on
246.3the date of admission shall be adjusted to the rate year in effect by the hospital cost index.
246.4    (b) For fee-for-service admissions occurring on or after July 1, 2002, the total
246.5payment, before third-party liability and spenddown, made to hospitals for inpatient
246.6services is reduced by .5 percent from the current statutory rates.
246.7    (c) In addition to the reduction in paragraph (b), the total payment for fee-for-service
246.8admissions occurring on or after July 1, 2003, made to hospitals for inpatient services before
246.9third-party liability and spenddown, is reduced five percent from the current statutory
246.10rates. Mental health services within diagnosis related groups 424 to 432 or corresponding
246.11APR-DRGs, and facilities defined under subdivision 16 are excluded from this paragraph.
246.12    (d) In addition to the reduction in paragraphs (b) and (c), the total payment for
246.13fee-for-service admissions occurring on or after August 1, 2005, made to hospitals for
246.14inpatient services before third-party liability and spenddown, is reduced 6.0 percent from
246.15the current statutory rates. Mental health services within diagnosis related groups 424 to
246.16432 or corresponding APR-DRGs and facilities defined under subdivision 16 are excluded
246.17from this paragraph. Notwithstanding section 256.9686, subdivision 7, for purposes
246.18of this paragraph, medical assistance does not include general assistance medical care.
246.19 Payments made to managed care plans shall be reduced for services provided on or after
246.20January 1, 2006, to reflect this reduction.
246.21    (e) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
246.22for fee-for-service admissions occurring on or after July 1, 2008, through June 30, 2009,
246.23made to hospitals for inpatient services before third-party liability and spenddown,
246.24is reduced 3.46 percent from the current statutory rates. Mental health services with
246.25diagnosis related groups 424 to 432 or corresponding APR-DRGs and facilities defined
246.26under subdivision 16 are excluded from this paragraph. Payments made to managed care
246.27plans shall be reduced for services provided on or after January 1, 2009, through June
246.2830, 2009, to reflect this reduction.
246.29    (f) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
246.30for fee-for-service admissions occurring on or after July 1, 2009, through June 30, 2011,
246.31made to hospitals for inpatient services before third-party liability and spenddown, is
246.32reduced 1.9 percent from the current statutory rates. Mental health services with diagnosis
246.33related groups 424 to 432 or corresponding APR-DRGs and facilities defined under
246.34subdivision 16 are excluded from this paragraph. Payments made to managed care plans
246.35shall be reduced for services provided on or after July 1, 2009, through June 30, 2011,
246.36to reflect this reduction.
247.1    (g) In addition to the reductions in paragraphs (b), (c), and (d), the total payment
247.2for fee-for-service admissions occurring on or after July 1, 2011, made to hospitals for
247.3inpatient services before third-party liability and spenddown, is reduced 1.79 percent from
247.4the current statutory rates. Mental health services with diagnosis related groups 424 to 432
247.5or corresponding APR-DRGs and facilities defined under subdivision 16 are excluded
247.6from this paragraph. Payments made to managed care plans shall be reduced for services
247.7provided on or after July 1, 2011, to reflect this reduction.
247.8(h) In addition to the reductions in paragraphs (b), (c), (d), (f), and (g), the total
247.9payment for fee-for-service admissions occurring on or after July 1, 2009, made to
247.10hospitals for inpatient services before third-party liability and spenddown, is reduced
247.11one percent from the current statutory rates. Facilities defined under subdivision 16 are
247.12excluded from this paragraph. Payments made to managed care plans shall be reduced for
247.13services provided on or after October 1, 2009, to reflect this reduction.
247.14(i) In addition to the reductions in paragraphs (b), (c), (d), (g), and (h), the total
247.15payment for fee-for-service admissions occurring on or after July 1, 2011, made to
247.16hospitals for inpatient services before third-party liability and spenddown, is reduced
247.171.96 percent from the current statutory rates. Facilities defined under subdivision 16 are
247.18excluded from this paragraph. Payments made to managed care plans shall be reduced for
247.19services provided on or after January 1, 2011, to reflect this reduction.
247.20(j) Effective for discharges on and after September 1, 2014, from hospitals paid
247.21under subdivision 2b, paragraph (a), clauses (1) and (4), the rate adjustments in this
247.22subdivision shall be incorporated into the rebased rates established under subdivision 2b,
247.23paragraph (c), and shall not be applied to each claim.

247.24    Sec. 12. Minnesota Statutes 2012, section 256.969, subdivision 3b, is amended to read:
247.25    Subd. 3b. Nonpayment for hospital-acquired conditions and for certain
247.26treatments. (a) The commissioner must not make medical assistance payments to a
247.27hospital for any costs of care that result from a condition listed identified in paragraph
247.28(c), if the condition was hospital acquired.
247.29    (b) For purposes of this subdivision, a condition is hospital acquired if it is not
247.30identified by the hospital as present on admission. For purposes of this subdivision,
247.31medical assistance includes general assistance medical care and MinnesotaCare.
247.32(c) The prohibition in paragraph (a) applies to payment for each hospital-acquired
247.33condition listed identified in this paragraph that is represented by an ICD-9-CM or
247.34ICD-10-CM diagnosis code and is designated as a complicating condition or a major
248.1complicating condition:. The list of conditions shall be the hospital-acquired conditions
248.2list defined by the Centers for Medicare and Medicaid Services on an annual basis.
248.3(1) foreign object retained after surgery (ICD-9-CM codes 998.4 or 998.7);
248.4(2) air embolism (ICD-9-CM code 999.1);
248.5(3) blood incompatibility (ICD-9-CM code 999.6);
248.6(4) pressure ulcers stage III or IV (ICD-9-CM codes 707.23 or 707.24);
248.7(5) falls and trauma, including fracture, dislocation, intracranial injury, crushing
248.8injury, burn, and electric shock (ICD-9-CM codes with these ranges on the complicating
248.9condition and major complicating condition list: 800-829; 830-839; 850-854; 925-929;
248.10940-949; and 991-994);
248.11(6) catheter-associated urinary tract infection (ICD-9-CM code 996.64);
248.12(7) vascular catheter-associated infection (ICD-9-CM code 999.31);
248.13(8) manifestations of poor glycemic control (ICD-9-CM codes 249.10; 249.11;
248.14249.20; 249.21; 250.10; 250.11; 250.12; 250.13; 250.20; 250.21; 250.22; 250.23; and
248.15251.0);
248.16(9) surgical site infection (ICD-9-CM codes 996.67 or 998.59) following certain
248.17orthopedic procedures (procedure codes 81.01; 81.02; 81.03; 81.04; 81.05; 81.06; 81.07;
248.1881.08; 81.23; 81.24; 81.31; 81.32; 81.33; 81.34; 81.35; 81.36; 81.37; 81.38; 81.83; and
248.1981.85);
248.20(10) surgical site infection (ICD-9-CM code 998.59) following bariatric surgery
248.21(procedure codes 44.38; 44.39; or 44.95) for a principal diagnosis of morbid obesity
248.22(ICD-9-CM code 278.01);
248.23(11) surgical site infection, mediastinitis (ICD-9-CM code 519.2) following coronary
248.24artery bypass graft (procedure codes 36.10 to 36.19); and
248.25(12) deep vein thrombosis (ICD-9-CM codes 453.40 to 453.42) or pulmonary
248.26embolism (ICD-9-CM codes 415.11 or 415.19) following total knee replacement
248.27(procedure code 81.54) or hip replacement (procedure codes 00.85 to 00.87 or 81.51
248.28to 81.52).
248.29(d) The prohibition in paragraph (a) applies to any additional payments that result
248.30from a hospital-acquired condition listed identified in paragraph (c), including, but not
248.31limited to, additional treatment or procedures, readmission to the facility after discharge,
248.32increased length of stay, change to a higher diagnostic category, or transfer to another
248.33hospital. In the event of a transfer to another hospital, the hospital where the condition
248.34listed identified under paragraph (c) was acquired is responsible for any costs incurred at
248.35the hospital to which the patient is transferred.
249.1(e) A hospital shall not bill a recipient of services for any payment disallowed under
249.2this subdivision.

249.3    Sec. 13. Minnesota Statutes 2012, section 256.969, subdivision 3c, is amended to read:
249.4    Subd. 3c. Rateable reduction and readmissions reduction. (a) The total payment
249.5for fee for service admissions occurring on or after September 1, 2011, through June 30,
249.62015, made to hospitals for inpatient services before third-party liability and spenddown,
249.7is reduced ten percent from the current statutory rates. Facilities defined under subdivision
249.816, long-term hospitals as determined under the Medicare program, children's hospitals
249.9whose inpatients are predominantly under 18 years of age, and payments under managed
249.10care are excluded from this paragraph.
249.11    (b) Effective for admissions occurring during calendar year 2010 and each year
249.12after, the commissioner shall calculate a regional readmission rate for admissions to all
249.13hospitals occurring within 30 days of a previous discharge. The commissioner may
249.14adjust the readmission rate taking into account factors such as the medical relationship,
249.15complicating conditions, and sequencing of treatment between the initial admission and
249.16subsequent readmissions.
249.17    (c) Effective for payments to all hospitals on or after July 1, 2013, through June 30,
249.182015, the reduction in paragraph (a) is reduced one percentage point for every percentage
249.19point reduction in the overall readmissions rate between the two previous calendar years
249.20to a maximum of five percent.
249.21(d) The payment reduction in paragraph (a) shall not apply to payments to a hospital
249.22with at least 1,700 licensed beds on January 1, 2011, located in Hennepin County, for
249.23admissions of children as defined in section 256B.055, subdivision 3a, occurring on or
249.24after September 1, 2011, through August 31, 2013, but shall apply to payments for
249.25admissions of children occurring on or after September 1, 2013, through June 30, 2015.
249.26EFFECTIVE DATE.This section is effectively retroactively from September 1,
249.272011.

249.28    Sec. 14. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
249.29to read:
249.30    Subd. 3d. Rate increase. The total payment for fee for service admissions occurring
249.31on or after July 1, 2014, through December 31, 2014, made to hospitals for inpatient
249.32services before third-party liability and spenddown, is increased by three percent from
249.33the current statutory rates. Facilities defined under subdivision 16, long-term hospitals
249.34as determined under the Medicare program, children's hospitals whose inpatients are
250.1predominantly under 18 years of age, and payments under managed care are excluded
250.2from this rate increase.

250.3    Sec. 15. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
250.4to read:
250.5    Subd. 4b. Medical assistance cost reports for services. (a) A hospital that meets
250.6one of the following criteria must annually file medical assistance cost reports within six
250.7months of the end of the hospital's fiscal year:
250.8(1) a hospital designated as a critical access hospital that receives medical assistance
250.9payments; or
250.10(2) a Minnesota hospital or out-of-state hospital located within a Minnesota local
250.11trade area that receives a disproportionate population adjustment under subdivision 9.
250.12For purposes of this subdivision, local trade area has the meaning given in subdivision 17.
250.13(b) The Department of Human Services must suspend payments to any hospital that
250.14fails to file a report required under this subdivision. Payments must remain suspended
250.15until the report has been filed with and accepted by the Department of Human Services
250.16inpatient rates unit.

250.17    Sec. 16. Minnesota Statutes 2012, section 256.969, subdivision 6a, is amended to read:
250.18    Subd. 6a. Special considerations. In determining the payment rates, the
250.19commissioner shall consider whether the circumstances in subdivisions 7 8 to 14 exist.

250.20    Sec. 17. Minnesota Statutes 2012, section 256.969, subdivision 8, is amended to read:
250.21    Subd. 8. Unusual length of stay experience. (a) The commissioner shall establish
250.22day outlier thresholds for each diagnostic category established under subdivision 2 at
250.23two standard deviations beyond the mean length of stay. Payment for the days beyond
250.24the outlier threshold shall be in addition to the operating and property payment rates per
250.25admission established under subdivisions 2, and 2b, and 2c. Payment for outliers shall
250.26be at 70 percent of the allowable operating cost, after adjustment by the case mix index,
250.27hospital cost index, relative values and the disproportionate population adjustment. The
250.28outlier threshold for neonatal and burn diagnostic categories shall be established at one
250.29standard deviation beyond the mean length of stay, and payment shall be at 90 percent
250.30of allowable operating cost calculated in the same manner as other outliers. A hospital
250.31may choose an alternative to the 70 percent outlier payment that is at a minimum of 60
250.32percent and a maximum of 80 percent if the commissioner is notified in writing of the
250.33request by October 1 of the year preceding the rate year. The chosen percentage applies
251.1to all diagnostic categories except burns and neonates. The percentage of allowable cost
251.2that is unrecognized by the outlier payment shall be added back to the base year operating
251.3payment rate per admission.
251.4(b) Effective for transfers occurring on or after September 1, 2014, the commissioner
251.5shall establish payment rates for acute transfers that are based on Medicare methodologies.

251.6    Sec. 18. Minnesota Statutes 2012, section 256.969, subdivision 8a, is amended to read:
251.7    Subd. 8a. Short length of stay. Except as provided in subdivision 13, for
251.8admissions occurring on or after July 1, 1995, payment shall be determined as follows and
251.9shall be included in the base year for rate setting purposes:
251.10(1) for an admission that is categorized to a neonatal diagnostic related group
251.11in which the length of stay is less than 50 percent of the average length of stay for the
251.12category in the base year and the patient at admission is equal to or greater than the age of
251.13one, payments shall be established according to the methods of subdivision 14;
251.14(2) For an admission that is categorized to a diagnostic category that includes
251.15neonatal respiratory distress syndrome, the hospital must have a level II or level III
251.16nursery and the patient must receive treatment in that unit or payment will be made
251.17without regard to the syndrome condition.

251.18    Sec. 19. Minnesota Statutes 2012, section 256.969, is amended by adding a subdivision
251.19to read:
251.20    Subd. 8c. Hospital residents. Payments for hospital residents shall be made
251.21as follows:
251.22(1) payments for the first 180 days of inpatient care shall be the DRG system
251.23payment plus any appropriate outliers; and
251.24(2) payment for all medically necessary patient care subsequent to 180 days shall
251.25be reimbursed at a rate equal to 80 percent of the product of the statewide average
251.26cost-to-charge ratio multiplied by the usual and customary charges.

251.27    Sec. 20. Minnesota Statutes 2012, section 256.969, subdivision 9, is amended to read:
251.28    Subd. 9. Disproportionate numbers of low-income patients served. (a) For
251.29admissions occurring on or after October 1, 1992, through December 31, 1992, the
251.30medical assistance disproportionate population adjustment shall comply with federal law
251.31and shall be paid to a hospital, excluding regional treatment centers and facilities of the
251.32federal Indian Health Service, with a medical assistance inpatient utilization rate in excess
251.33of the arithmetic mean. The adjustment must be determined as follows:
252.1    (1) for a hospital with a medical assistance inpatient utilization rate above the
252.2arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
252.3federal Indian Health Service but less than or equal to one standard deviation above the
252.4mean, the adjustment must be determined by multiplying the total of the operating and
252.5property payment rates by the difference between the hospital's actual medical assistance
252.6inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
252.7treatment centers and facilities of the federal Indian Health Service; and
252.8    (2) for a hospital with a medical assistance inpatient utilization rate above one
252.9standard deviation above the mean, the adjustment must be determined by multiplying
252.10the adjustment that would be determined under clause (1) for that hospital by 1.1. If
252.11federal matching funds are not available for all adjustments under this subdivision, the
252.12commissioner shall reduce payments on a pro rata basis so that all adjustments qualify for
252.13federal match. The commissioner may establish a separate disproportionate population
252.14operating payment rate adjustment under the general assistance medical care program.
252.15For purposes of this subdivision medical assistance does not include general assistance
252.16medical care. The commissioner shall report annually on the number of hospitals likely to
252.17receive the adjustment authorized by this paragraph. The commissioner shall specifically
252.18report on the adjustments received by public hospitals and public hospital corporations
252.19located in cities of the first class.
252.20    (b) For admissions occurring on or after July 1, 1993, the medical assistance
252.21disproportionate population adjustment shall comply with federal law and shall be paid to
252.22a hospital, excluding regional treatment centers and facilities of the federal Indian Health
252.23Service, with a medical assistance inpatient utilization rate in excess of the arithmetic
252.24mean. The adjustment must be determined as follows:
252.25    (1) for a hospital with a medical assistance inpatient utilization rate above the
252.26arithmetic mean for all hospitals excluding regional treatment centers and facilities of the
252.27federal Indian Health Service but less than or equal to one standard deviation above the
252.28mean, the adjustment must be determined by multiplying the total of the operating and
252.29property payment rates by the difference between the hospital's actual medical assistance
252.30inpatient utilization rate and the arithmetic mean for all hospitals excluding regional
252.31treatment centers and facilities of the federal Indian Health Service; and
252.32    (2) for a hospital with a medical assistance inpatient utilization rate above one
252.33standard deviation above the mean, the adjustment must be determined by multiplying
252.34the adjustment that would be determined under clause (1) for that hospital by 1.1. The
252.35commissioner may establish a separate disproportionate population operating payment
252.36rate adjustment under the general assistance medical care program. For purposes of this
253.1subdivision, medical assistance does not include general assistance medical care. The
253.2commissioner shall report annually on the number of hospitals likely to receive the
253.3adjustment authorized by this paragraph. The commissioner shall specifically report on
253.4the adjustments received by public hospitals and public hospital corporations located in
253.5cities of the first class;.
253.6    (3) for a hospital that had medical assistance fee-for-service payment volume during
253.7calendar year 1991 in excess of 13 percent of total medical assistance fee-for-service
253.8payment volume, a medical assistance disproportionate population adjustment shall be
253.9paid in addition to any other disproportionate payment due under this subdivision as
253.10follows: $1,515,000 due on the 15th of each month after noon, beginning July 15, 1995.
253.11For a hospital that had medical assistance fee-for-service payment volume during calendar
253.12year 1991 in excess of eight percent of total medical assistance fee-for-service payment
253.13volume and was the primary hospital affiliated with the University of Minnesota, a
253.14medical assistance disproportionate population adjustment shall be paid in addition to any
253.15other disproportionate payment due under this subdivision as follows: $505,000 due on
253.16the 15th of each month after noon, beginning July 15, 1995; and
253.17    (4) effective August 1, 2005, the payments in paragraph (b), clause (3), shall be
253.18reduced to zero.
253.19    (c) The commissioner shall adjust rates paid to a health maintenance organization
253.20under contract with the commissioner to reflect rate increases provided in paragraph (b),
253.21clauses (1) and (2), on a nondiscounted hospital-specific basis but shall not adjust those
253.22rates to reflect payments provided in clause (3).
253.23    (d) If federal matching funds are not available for all adjustments under paragraph
253.24(b), the commissioner shall reduce payments under paragraph (b), clauses (1) and (2), on a
253.25pro rata basis so that all adjustments under paragraph (b) qualify for federal match.
253.26    (e) For purposes of this subdivision, medical assistance does not include general
253.27assistance medical care.
253.28    (f) For hospital services occurring on or after July 1, 2005, to June 30, 2007:
253.29    (1) general assistance medical care expenditures for fee-for-service inpatient and
253.30outpatient hospital payments made by the department shall be considered Medicaid
253.31disproportionate share hospital payments, except as limited below:
253.32     (i) only the portion of Minnesota's disproportionate share hospital allotment under
253.33section 1923(f) of the Social Security Act that is not spent on the disproportionate
253.34population adjustments in paragraph (b), clauses (1) and (2), may be used for general
253.35assistance medical care expenditures;
254.1     (ii) only those general assistance medical care expenditures made to hospitals that
254.2qualify for disproportionate share payments under section 1923 of the Social Security Act
254.3and the Medicaid state plan may be considered disproportionate share hospital payments;
254.4     (iii) only those general assistance medical care expenditures made to an individual
254.5hospital that would not cause the hospital to exceed its individual hospital limits under
254.6section 1923 of the Social Security Act may be considered; and
254.7     (iv) general assistance medical care expenditures may be considered only to the
254.8extent of Minnesota's aggregate allotment under section 1923 of the Social Security Act.
254.9All hospitals and prepaid health plans participating in general assistance medical care
254.10must provide any necessary expenditure, cost, and revenue information required by the
254.11commissioner as necessary for purposes of obtaining federal Medicaid matching funds for
254.12general assistance medical care expenditures; and
254.13    (2) (c) Certified public expenditures made by Hennepin County Medical Center shall
254.14be considered Medicaid disproportionate share hospital payments. Hennepin County
254.15and Hennepin County Medical Center shall report by June 15, 2007, on payments made
254.16beginning July 1, 2005, or another date specified by the commissioner, that may qualify
254.17for reimbursement under federal law. Based on these reports, the commissioner shall
254.18apply for federal matching funds.
254.19    (g) (d) Upon federal approval of the related state plan amendment, paragraph (f) (c)
254.20 is effective retroactively from July 1, 2005, or the earliest effective date approved by the
254.21Centers for Medicare and Medicaid Services.

254.22    Sec. 21. Minnesota Statutes 2012, section 256.969, subdivision 10, is amended to read:
254.23    Subd. 10. Separate billing by certified registered nurse anesthetists. Hospitals
254.24may must exclude certified registered nurse anesthetist costs from the operating payment
254.25rate as allowed by section 256B.0625, subdivision 11. To be eligible, a hospital must
254.26notify the commissioner in writing by October 1 of even-numbered years to exclude
254.27certified registered nurse anesthetist costs. The hospital must agree that all hospital
254.28claims for the cost and charges of certified registered nurse anesthetist services will not
254.29be included as part of the rates for inpatient services provided during the rate year. In
254.30this case, the operating payment rate shall be adjusted to exclude the cost of certified
254.31registered nurse anesthetist services.
254.32For admissions occurring on or after July 1, 1991, and until the expiration date of
254.33section 256.9695, subdivision 3, services of certified registered nurse anesthetists provided
254.34on an inpatient basis may be paid as allowed by section 256B.0625, subdivision 11, when
254.35the hospital's base year did not include the cost of these services. To be eligible, a hospital
255.1must notify the commissioner in writing by July 1, 1991, of the request and must comply
255.2with all other requirements of this subdivision.

255.3    Sec. 22. Minnesota Statutes 2012, section 256.969, subdivision 12, is amended to read:
255.4    Subd. 12. Rehabilitation distinct parts. (a) Units of hospitals that are recognized
255.5as rehabilitation distinct parts by the Medicare program shall have separate provider
255.6numbers under the medical assistance program for rate establishment and billing
255.7purposes only. These units shall also have operating and property payment rates and the
255.8disproportionate population adjustment, if allowed by federal law, established separately
255.9from other inpatient hospital services.
255.10(b) The commissioner may shall establish separate relative values under subdivision
255.112 for rehabilitation hospitals and distinct parts as defined by the Medicare program.
255.12 Effective for discharges on or after September 1, 2014, the commissioner, to the extent
255.13possible, shall replicate the existing payment rate methodology under the new diagnostic
255.14classification system. The result must be budget neutral, ensuring that the total aggregate
255.15payments under the new system are equal to the total aggregate payments made for the
255.16same number and types of services in the base year, state fiscal year 2012.
255.17(c) For individual hospitals that did not have separate medical assistance
255.18rehabilitation provider numbers or rehabilitation distinct parts in the base year, hospitals
255.19shall provide the information needed to separate rehabilitation distinct part cost and claims
255.20data from other inpatient service data.

255.21    Sec. 23. Minnesota Statutes 2012, section 256.969, subdivision 14, is amended to read:
255.22    Subd. 14. Transfers. Except as provided in subdivisions 11 and 13, (a) Operating
255.23and property payment rates for admissions that result in transfers and transfers shall be
255.24established on a per day payment system. The per day payment rate shall be the sum of
255.25the adjusted operating and property payment rates determined under this subdivision and
255.26subdivisions 2, 2b, 2c, 3a, 4a, 5a, and 7 to 12, divided by the arithmetic mean length of
255.27stay for the diagnostic category. Each admission that results in a transfer and each transfer
255.28is considered a separate admission to each hospital, and the total of the admission and
255.29transfer payments to each hospital must not exceed the total per admission payment that
255.30would otherwise be made to each hospital under this subdivision and subdivisions 2, 2b,
255.312c, 3a, 4a, 5a, and 7 to 13 8 to 12.
255.32(b) Effective for transfers occurring on and after September 1, 2014, the commissioner
255.33shall establish payment rates for acute transfers that are based on Medicare methodologies.

256.1    Sec. 24. Minnesota Statutes 2012, section 256.969, subdivision 17, is amended to read:
256.2    Subd. 17. Out-of-state hospitals in local trade areas. Out-of-state hospitals that
256.3are located within a Minnesota local trade area and that have more than 20 admissions in
256.4the base year or years shall have rates established using the same procedures and methods
256.5that apply to Minnesota hospitals. For this subdivision and subdivision 18, local trade area
256.6means a county contiguous to Minnesota and located in a metropolitan statistical area as
256.7determined by Medicare for October 1 prior to the most current rebased rate year. Hospitals
256.8that are not required by law to file information in a format necessary to establish rates shall
256.9have rates established based on the commissioner's estimates of the information. Relative
256.10values of the diagnostic categories shall not be redetermined under this subdivision until
256.11required by rule statute. Hospitals affected by this subdivision shall then be included in
256.12determining relative values. However, hospitals that have rates established based upon
256.13the commissioner's estimates of information shall not be included in determining relative
256.14values. This subdivision is effective for hospital fiscal years beginning on or after July
256.151, 1988. A hospital shall provide the information necessary to establish rates under this
256.16subdivision at least 90 days before the start of the hospital's fiscal year.

256.17    Sec. 25. Minnesota Statutes 2012, section 256.969, subdivision 18, is amended to read:
256.18    Subd. 18. Out-of-state hospitals outside local trade areas. Hospitals that are
256.19not located within Minnesota or a Minnesota local trade area shall have operating and
256.20property inpatient hospital rates established at the average of statewide and local trade area
256.21rates or, at the commissioner's discretion, at an amount negotiated by the commissioner.
256.22Relative values shall not include data from hospitals that have rates established under this
256.23subdivision. Payments, including third-party and recipient liability, established under this
256.24subdivision may not exceed the charges on a claim specific basis for inpatient services that
256.25are covered by medical assistance.

256.26    Sec. 26. Minnesota Statutes 2012, section 256.969, subdivision 25, is amended to read:
256.27    Subd. 25. Long-term hospital rates. (a) Long-term hospitals shall be paid a per
256.28diem rate established by the commissioner.
256.29(b) For admissions occurring on or after April 1, 1995, a long-term hospital as
256.30designated by Medicare that does not have admissions in the base year shall have
256.31inpatient rates established at the average of other hospitals with the same designation. For
256.32subsequent rate-setting periods in which base years are updated, the hospital's base year
256.33shall be the first Medicare cost report filed with the long-term hospital designation and
256.34shall remain in effect until it falls within the same period as other hospitals.

257.1    Sec. 27. Minnesota Statutes 2012, section 256.969, subdivision 30, is amended to read:
257.2    Subd. 30. Payment rates for births. (a) For admissions occurring on or after
257.3October 1, 2009, September 1, 2014, the total operating and property payment rate,
257.4excluding disproportionate population adjustment, for the following diagnosis-related
257.5groups, as they fall within the diagnostic APR-DRG categories: (1) 371 cesarean section
257.6without complicating diagnosis; (2) 372 vaginal delivery with complicating diagnosis;
257.7and (3) 373 vaginal delivery without complicating diagnosis, 5401, 5402, 5403, and 5404
257.8cesarean section, shall be no greater than $3,528.
257.9(b) The rates described in this subdivision do not include newborn care.
257.10(c) Payments to managed care and county-based purchasing plans under section
257.11256B.69 , 256B.692, or 256L.12 shall be reduced for services provided on or after October
257.121, 2009, to reflect the adjustments in paragraph (a).
257.13(d) Prior authorization shall not be required before reimbursement is paid for a
257.14cesarean section delivery.

257.15    Sec. 28. Minnesota Statutes 2012, section 256B.04, is amended by adding a
257.16subdivision to read:
257.17    Subd. 24. Medicaid waiver requests and state plan amendments. Prior to
257.18submitting any Medicaid waiver request or Medicaid state plan amendment to the federal
257.19government for approval, the commissioner shall publish the text of the waiver request or
257.20state plan amendment, and a summary of and explanation of the need for the request, on
257.21the agency's Web site and provide a 30-day public comment period. The commissioner
257.22shall notify the public of the availability of this information through the agency's electronic
257.23subscription service. The commissioner shall consider public comments when preparing
257.24the final waiver request or state plan amendment that is to be submitted to the federal
257.25government for approval. The commissioner shall also publish on the agency's Web site
257.26notice of any federal decision related to the state request for approval, within 30 days of
257.27the decision. This notice must describe any modifications to the state request that have
257.28been agreed to by the commissioner as a condition of receiving federal approval.

257.29    Sec. 29. Minnesota Statutes 2013 Supplement, section 256B.056, subdivision 5c,
257.30is amended to read:
257.31    Subd. 5c. Excess income standard. (a) The excess income standard for parents
257.32and caretaker relatives, pregnant women, infants, and children ages two through 20 is the
257.33standard specified in subdivision 4, paragraph (b).
258.1(b) The excess income standard for a person whose eligibility is based on blindness,
258.2disability, or age of 65 or more years shall equal 75 percent of the federal poverty
258.3guidelines. The excess income standard under this paragraph shall equal 80 percent of
258.4the federal poverty guidelines, effective January 1, 2017.

258.5    Sec. 30. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 17,
258.6is amended to read:
258.7    Subd. 17. Transportation costs. (a) "Nonemergency medical transportation
258.8service" means motor vehicle transportation provided by a public or private person
258.9that serves Minnesota health care program beneficiaries who do not require emergency
258.10ambulance service, as defined in section 144E.001, subdivision 3, to obtain covered
258.11medical services. Nonemergency medical transportation service includes, but is not
258.12limited to, special transportation service, defined in section 174.29, subdivision 1.
258.13(a) (b) Medical assistance covers medical transportation costs incurred solely for
258.14obtaining emergency medical care or transportation costs incurred by eligible persons in
258.15obtaining emergency or nonemergency medical care when paid directly to an ambulance
258.16company, common carrier, or other recognized providers of transportation services.
258.17Medical transportation must be provided by:
258.18(1) an ambulance nonemergency medical transportation providers who meet the
258.19requirements of this subdivision;
258.20(2) ambulances, as defined in section 144E.001, subdivision 2;
258.21(2) special transportation; or
258.22(3) common carrier including, but not limited to, bus, taxicab, other commercial
258.23carrier, or private automobile taxicabs and public transit, as defined in section 174.22,
258.24subdivision 7; or
258.25(4) not-for-hire vehicles, including volunteer drivers.
258.26(b) (c) Medical assistance covers special transportation, as defined in Minnesota
258.27Rules, part 9505.0315, subpart 1, item F, if the recipient has a physical or mental
258.28impairment that would prohibit the recipient from safely accessing and using a bus,
258.29taxi, other commercial transportation, or private automobile. nonemergency medical
258.30transportation provided by nonemergency medical transportation providers enrolled in
258.31the Minnesota health care programs. All nonemergency medical transportation providers
258.32must comply with the operating standards for special transportation service as defined in
258.33sections 174.29 to 174.30 and Minnesota Rules, chapter 8840, and in consultation with
258.34the Minnesota Department of Transportation. All nonemergency medical transportation
258.35providers shall bill for nonemergency medical transportation services in accordance with
259.1Minnesota health care programs criteria. Publicly operated transit systems, volunteers,
259.2and not-for-hire vehicles are exempt from the requirements outlined in this paragraph.
259.3(d) The administrative agency of nonemergency medical transportation must:
259.4(1) adhere to the policies defined by the commissioner in consultation with the
259.5Nonemergency Medical Transportation Advisory Committee;
259.6(2) pay nonemergency medical transportation providers for services provided to
259.7Minnesota health care programs beneficiaries to obtain covered medical services;
259.8(3) provide data monthly to the commissioner on appeals, complaints, no-shows,
259.9canceled trips, and number of trips by mode; and
259.10(4) by July 1, 2016, in accordance with subdivision 18e, utilize a Web-based single
259.11administrative structure assessment tool that meets the technical requirements established
259.12by the commissioner, reconciles trip information with claims being submitted by
259.13providers, and ensures prompt payment for nonemergency medical transportation services.
259.14    (e) Until the commissioner implements the single administrative structure and
259.15delivery system under subdivision 18e, clients shall obtain their level-of-service certificate
259.16from the commissioner or an entity approved by the commissioner that does not dispatch
259.17rides for clients using modes under paragraph (h), clauses (4), (5), (6), and (7).
259.18    (f) The commissioner may use an order by the recipient's attending physician
259.19 or a medical or mental health professional to certify that the recipient requires
259.20special transportation services nonemergency medical transportation services. Special
259.21 Nonemergency medical transportation providers shall perform driver-assisted services for
259.22eligible individuals, when appropriate. Driver-assisted service includes passenger pickup
259.23at and return to the individual's residence or place of business, assistance with admittance of
259.24the individual to the medical facility, and assistance in passenger securement or in securing
259.25of wheelchairs or stretchers in the vehicle. Special Nonemergency medical transportation
259.26providers must obtain written documentation from the health care service provider who
259.27is serving the recipient being transported, identifying the time that the recipient arrived.
259.28Special have trip logs, which include pickup and drop-off times, signed by the medical
259.29provider or client attesting mileage traveled to obtain covered medical services, whichever
259.30is deemed most appropriate. Nonemergency medical transportation providers may not bill
259.31for separate base rates for the continuation of a trip beyond the original destination. Special
259.32 Nonemergency medical transportation providers must take recipients clients to the health
259.33care provider, using the most direct route, and must not exceed 30 miles for a trip to a
259.34primary care provider or 60 miles for a trip to a specialty care provider, unless the recipient
259.35 client receives authorization from the local agency. The minimum medical assistance
259.36reimbursement rates for special transportation nonemergency medical services are:
260.1(1)(i) $17 for the base rate and $1.35 per mile for special transportation
260.2 nonemergency medical services to eligible persons who need a wheelchair-accessible van;
260.3(ii) $11.50 for the base rate and $1.30 per mile for special nonemergency medical
260.4transportation services to eligible persons who do not need a wheelchair-accessible van; and
260.5(iii) $60 for the base rate and $2.40 per mile, and an attendant rate of $9 per trip,
260.6for special nonemergency medical transportation services to eligible persons who need a
260.7stretcher-accessible vehicle;
260.8(2) clients requesting client mileage reimbursement must sign the trip log attesting
260.9mileage traveled to obtain covered medical services.
260.10(g) By July 1, 2015, the commissioner shall determine reimbursement for the
260.11modes under this paragraph and paragraphs (h) and (i), using existing rates in paragraph
260.12(f). The covered modes of nonemergency medical transportation include transportation
260.13provided directly by clients or family members of clients with their own transportation,
260.14volunteers using their own vehicles, taxicabs, and public transit, or provided to a client
260.15who needs a stretcher-accessible vehicle, a lift/ramp equipped vehicle, a vehicle that is not
260.16stretcher-accessible or lift/ramp equipped designed to transport seven or fewer persons,
260.17and a protected vehicle that is not an ambulance or police car and has safety locks, a
260.18video recorder, and a transparent thermoplastic partition between the passenger and the
260.19vehicle driver.
260.20(h) The administrative agency shall use the level of service process established
260.21by the commissioner in consultation with the Nonemergency Medical Transportation
260.22Advisory Committee to determine the client's most appropriate mode of transportation.
260.23If public transit or a certified transportation provider is not available to provide the
260.24appropriate service mode for the client, the client may receive a onetime service upgrade.
260.25Clients can be found eligible for the most appropriate of the following modes:
260.26(1) client reimbursement, which includes client mileage reimbursement provided
260.27to clients who have their own transportation or family who provides transportation to
260.28the client;
260.29(2) volunteer transport, which includes transportation by volunteers using their
260.30own vehicle;
260.31(3) unassisted transport, which includes transportation provided to a client by a
260.32taxicab or public transit. If a taxicab or publicly operated transit system is not available,
260.33the client can receive transportation from another nonemergency medical transportation
260.34provider;
260.35(4) assisted transport, which includes transport provided to clients who require
260.36assistance by a nonemergency medical transportation provider;
261.1(5) lift-equipped/ramp transport, which includes transport provided to a client who
261.2is dependent on a device and requires a nonemergency medical transportation provider
261.3with a vehicle containing a lift or ramp;
261.4(6) protected transport, which includes transport to a client who has received a
261.5prescreening that has deemed other forms of transportation inappropriate and who requires
261.6a provider certified as a protected transport provider; and
261.7(7) stretcher transport, which includes transport for a client in a prone or supine
261.8position and requires a nonemergency medical transportation provider with a vehicle that
261.9can transport a client in a prone or supine position.
261.10(i) By July 1, 2015, local agencies shall administer and reimburse for modes within
261.11existing appropriations defined in paragraph (h), clauses (1) to (3). The commissioner
261.12shall administer and reimburse for modes within existing appropriations defined in
261.13paragraph (h), clauses (4) to (7). In accordance with subdivision 18e, by July 1, 2016, the
261.14local agency shall be the single administrative agency and shall administer and reimburse
261.15for modes defined in paragraph (h), clauses (1), (2), (3), (4), (5), (6), and (7).
261.16(j) The commissioner shall:
261.17(1) in consultation with the Nonemergency Medical Transportation Advisory
261.18Committee, verify that the mode and use of nonemergency medical transportation is
261.19appropriate;
261.20(2) verify that the client is going to an approved medical appointment; and
261.21(3) investigate all complaints and appeals.
261.22(k) The administrative agency shall pay for the services provided in this subdivision
261.23and seek reimbursement from the commissioner if appropriate. As vendors of medical care,
261.24local agencies are subject to the provisions in section 256B.041, the sanctions and monetary
261.25recovery actions in section 256B.064, and Minnesota Rules parts 9505.2160 to 9505.2245.
261.26(l) The base rates for special nonemergency medical transportation services in areas
261.27defined under RUCA to be super rural shall be equal to the reimbursement rate established
261.28in paragraph (f), clause (1), plus 11.3 percent;, and
261.29(3) for special nonemergency medical transportation services in areas defined under
261.30RUCA to be rural or super rural areas:
261.31(i) for a trip equal to 17 miles or less, mileage reimbursement shall be equal to 125
261.32percent of the respective mileage rate in paragraph (f), clause (1); and
261.33(ii) for a trip between 18 and 50 miles, mileage reimbursement shall be equal to
261.34112.5 percent of the respective mileage rate in paragraph (f), clause (1).
262.1(c) (m) For purposes of reimbursement rates for special nonemergency medical
262.2transportation services under paragraph (b), the zip code of the recipient's place of residence
262.3shall determine whether the urban, rural, or super rural reimbursement rate applies.
262.4(d) (n) For purposes of this subdivision, "rural urban commuting area" or "RUCA"
262.5means a census-tract based classification system under which a geographical area is
262.6determined to be urban, rural, or super rural.
262.7(e) (o) Effective for services provided on or after September 1, 2011, nonemergency
262.8transportation rates, including special nonemergency medical transportation, taxi, and
262.9other commercial carriers, are reduced 4.5 percent. Payments made to managed care plans
262.10and county-based purchasing plans must be reduced for services provided on or after
262.11January 1, 2012, to reflect this reduction.
262.12(p) Until July 1, 2016, people using assisted transportation will continue with
262.13their current administrative agency. For people newly assessed as needing assisted
262.14transportation, the local agency will continue to administer assisted transport when
262.15assistance requires door-to-door, and the commissioner will administer assisted transport
262.16when assistance requires door-through-door.

262.17    Sec. 31. Minnesota Statutes 2012, section 256B.0625, subdivision 18b, is amended to
262.18read:
262.19    Subd. 18b. Broker dispatching prohibition. The commissioner shall not use a
262.20broker or coordinator for any purpose related to nonemergency medical transportation
262.21services under subdivision 18.

262.22    Sec. 32. Minnesota Statutes 2012, section 256B.0625, subdivision 18c, is amended to
262.23read:
262.24    Subd. 18c. Nonemergency Medical Transportation Advisory Committee.
262.25(a) The Nonemergency Medical Transportation Advisory Committee shall advise the
262.26commissioner on the administration of nonemergency medical transportation covered
262.27under medical assistance. The advisory committee shall meet at least quarterly the first
262.28year following January 1, 2015, and at least biannually thereafter and may meet more
262.29frequently as required by the commissioner. The advisory committee shall annually
262.30elect a chair from among its members, who shall work with the commissioner or the
262.31commissioner's designee to establish the agenda for each meeting. The commissioner, or
262.32the commissioner's designee, shall attend all advisory committee meetings.
262.33(b) The Nonemergency Medical Transportation Advisory Committee shall advise
262.34and make recommendations to the commissioner on:
263.1(1) the development of, and periodic updates to, a the nonemergency medical
263.2transportation policy manual for nonemergency medical transportation services;
263.3(2) policies and a funding source for reimbursing no-load miles;
263.4(3) policies to prevent waste, fraud, and abuse, and to improve the efficiency of the
263.5nonemergency medical transportation system;
263.6(4) other issues identified in the 2011 evaluation report by the Office of the
263.7Legislative Auditor on medical nonemergency transportation; and
263.8(5) (2) other aspects of the nonemergency medical transportation system, as
263.9requested by the commissioner.; and
263.10(3) other aspects of the nonemergency medical transportation system, as requested by:
263.11(i) a committee member, who may request an item to be placed on the agenda for
263.12a future meeting. The request may be considered by the committee and voted upon.
263.13If the motion carries, the meeting agenda item may be developed for presentation to
263.14the committee; and
263.15(ii) a member of the public, who may approach the committee by letter or e-mail
263.16requesting that an item be placed on a future meeting agenda. The request may be
263.17considered by the committee and voted upon. If the motion carries, the agenda item may
263.18be developed for presentation to the committee.
263.19(c) The Nonemergency Medical Transportation Advisory Committee shall
263.20coordinate its activities with the Minnesota Council on Transportation Access established
263.21under section 174.285. The chair of the advisory committee, or the chair's designee, shall
263.22attend all meetings of the Minnesota Council on Transportation Access.
263.23(d) The Nonemergency Medical Transportation Advisory Committee shall expire
263.24December 1, 2014 2019.

263.25    Sec. 33. Minnesota Statutes 2012, section 256B.0625, subdivision 18d, is amended to
263.26read:
263.27    Subd. 18d. Advisory committee members. (a) The Nonemergency Medical
263.28Transportation Advisory Committee consists of:
263.29(1) two voting members who represent counties, at least one of whom must represent
263.30a county or counties other than Anoka, Carver, Chisago, Dakota, Hennepin, Isanti,
263.31Ramsey, Scott, Sherburne, Washington, and Wright four voting members who represent
263.32counties, utilizing the rural urban commuting area classification system. As defined in
263.33subdivision 17, these members shall be designated as follows:
263.34(i) two counties within the 11-county metropolitan area;
263.35(ii) one county representing the rural area of the state; and
264.1(iii) one county representing the super rural area of the state.
264.2The Association of Minnesota Counties shall appoint one county within the 11-county
264.3metropolitan area and one county representing the super rural area of the state. The
264.4Minnesota Inter-County Association shall appoint one county within the 11-county
264.5metropolitan area and one county representing the rural area of the state;
264.6(2) four three voting members who represent medical assistance recipients, including
264.7persons with physical and developmental disabilities, persons with mental illness, seniors,
264.8children, and low-income individuals;
264.9(3) four voting members who represent providers that deliver nonemergency medical
264.10transportation services to medical assistance enrollees;
264.11(4) two voting members of the house of representatives, one from the majority
264.12party and one from the minority party, appointed by the speaker of the house, and two
264.13voting members from the senate, one from the majority party and one from the minority
264.14party, appointed by the Subcommittee on Committees of the Committee on Rules and
264.15Administration;
264.16(5) one voting member who represents demonstration providers as defined in section
264.17256B.69, subdivision 2 ;
264.18(6) one voting member who represents an organization that contracts with state or
264.19local governments to coordinate transportation services for medical assistance enrollees;
264.20and
264.21(7) one voting member who represents the Minnesota State Council on Disability;
264.22(8) the commissioner of transportation or the commissioner's designee, who shall
264.23serve as a voting member;
264.24(9) one voting member appointed by the Minnesota Ambulance Association; and
264.25(10) one voting member appointed by the Minnesota Hospital Association.
264.26(b) Members of the advisory committee shall not be employed by the Department of
264.27Human Services. Members of the advisory committee shall receive no compensation.

264.28    Sec. 34. Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18e,
264.29is amended to read:
264.30    Subd. 18e. Single administrative structure and delivery system. (a) The
264.31commissioner shall implement a single administrative structure and delivery system
264.32for nonemergency medical transportation, beginning the latter of the date the single
264.33administrative assessment tool required in this paragraph is available for use, as
264.34determined by the commissioner or by July 1, 2014 2016. The single administrative
264.35structure and delivery system must:
265.1(1) eliminate the distinction between access transportation services and special
265.2transportation services;
265.3(2) enable all medical assistance recipients to follow the same process to obtain
265.4nonemergency medical transportation, regardless of their level of need;
265.5(3) provide a single oversight framework for all providers of nonemergency medical
265.6transportation; and
265.7(4) provide flexibility in service delivery, recognizing that clients fall along a
265.8continuum of needs and resources.
265.9(b) The commissioner shall present to the legislature, by January 15, 2014,
265.10legislation necessary to implement the single administrative structure and delivery system
265.11for nonemergency medical transportation.
265.12(c) In developing the single administrative structure and delivery system and the draft
265.13legislation, the commissioner shall consult with the Nonemergency Medical Transportation
265.14Advisory Committee. In coordination with the Department of Transportation, the
265.15commissioner shall develop and authorize a Web-based single administrative structure
265.16and assessment tool, which must operate 24 hours a day, seven days a week, to facilitate
265.17the enrollee assessment process for nonemergency medical transportation services.
265.18The Web-based tool shall facilitate the transportation eligibility determination process
265.19initiated by clients and client advocates; shall include an accessible automated intake
265.20and assessment process and real-time identification of level of service eligibility; and
265.21shall authorize an appropriate and auditable mode of transportation authorization. The
265.22tool shall provide a single framework for reconciling trip information with claiming and
265.23collecting complaints regarding inappropriate level of need determinations, inappropriate
265.24transportation modes utilized, and interference with accessing nonemergency medical
265.25transportation. The Web-based single administrative structure shall operate on a trial
265.26basis for one year from implementation and, if approved by the commissioner, shall be
265.27permanent thereafter. The commissioner shall seek input from the Nonemergency Medical
265.28Transportation Advisory Committee to ensure the software is effective and user-friendly
265.29and make recommendations regarding funding of the single administrative system.

265.30    Sec. 35. Minnesota Statutes 2012, section 256B.0625, subdivision 18g, is amended to
265.31read:
265.32    Subd. 18g. Use of standardized measures. The commissioner, in consultation
265.33with the Nonemergency Medical Transportation Advisory Committee, shall establish
265.34performance measures to assess the cost-effectiveness and quality of nonemergency
265.35medical transportation. At a minimum, performance measures should include the number
266.1of unique participants served by type of transportation provider, number of trips provided
266.2by type of transportation provider, and cost per trip by type of transportation provider. The
266.3commissioner must also consider the measures identified in the January 2012 Department
266.4of Human Services report to the legislature on nonemergency medical transportation.
266.5 Beginning in calendar year 2013 2015, the commissioner shall collect, audit, and analyze
266.6performance data on nonemergency medical transportation annually and report this
266.7information on the agency's Web site. The commissioner shall periodically supplement
266.8this information with the results of consumer surveys of the quality of services, and shall
266.9make these survey findings available to the public on the agency Web site.

266.10    Sec. 36. Minnesota Statutes 2012, section 256B.0625, is amended by adding a
266.11subdivision to read:
266.12    Subd. 18h. Managed care. The following subdivisions do not apply to managed
266.13care plans and county-based purchasing plans:
266.14    (1) subdivision 17, paragraphs (d) to (k);
266.15    (2) subdivision 18e; and
266.16    (3) subdivision 18g.

266.17    Sec. 37. Minnesota Statutes 2012, section 256B.0625, subdivision 30, is amended to
266.18read:
266.19    Subd. 30. Other clinic services. (a) Medical assistance covers rural health clinic
266.20services, federally qualified health center services, nonprofit community health clinic
266.21services, and public health clinic services. Rural health clinic services and federally
266.22qualified health center services mean services defined in United States Code, title 42,
266.23section 1396d(a)(2)(B) and (C). Payment for rural health clinic and federally qualified
266.24health center services shall be made according to applicable federal law and regulation.
266.25(b) A federally qualified health center that is beginning initial operation shall submit
266.26an estimate of budgeted costs and visits for the initial reporting period in the form and
266.27detail required by the commissioner. A federally qualified health center that is already in
266.28operation shall submit an initial report using actual costs and visits for the initial reporting
266.29period. Within 90 days of the end of its reporting period, a federally qualified health
266.30center shall submit, in the form and detail required by the commissioner, a report of
266.31its operations, including allowable costs actually incurred for the period and the actual
266.32number of visits for services furnished during the period, and other information required
266.33by the commissioner. Federally qualified health centers that file Medicare cost reports
266.34shall provide the commissioner with a copy of the most recent Medicare cost report filed
267.1with the Medicare program intermediary for the reporting year which support the costs
267.2claimed on their cost report to the state.
267.3(c) In order to continue cost-based payment under the medical assistance program
267.4according to paragraphs (a) and (b), a federally qualified health center or rural health clinic
267.5must apply for designation as an essential community provider within six months of final
267.6adoption of rules by the Department of Health according to section 62Q.19, subdivision
267.77 . For those federally qualified health centers and rural health clinics that have applied
267.8for essential community provider status within the six-month time prescribed, medical
267.9assistance payments will continue to be made according to paragraphs (a) and (b) for the
267.10first three years after application. For federally qualified health centers and rural health
267.11clinics that either do not apply within the time specified above or who have had essential
267.12community provider status for three years, medical assistance payments for health services
267.13provided by these entities shall be according to the same rates and conditions applicable
267.14to the same service provided by health care providers that are not federally qualified
267.15health centers or rural health clinics.
267.16(d) Effective July 1, 1999, the provisions of paragraph (c) requiring a federally
267.17qualified health center or a rural health clinic to make application for an essential
267.18community provider designation in order to have cost-based payments made according
267.19to paragraphs (a) and (b) no longer apply.
267.20(e) Effective January 1, 2000, payments made according to paragraphs (a) and (b)
267.21shall be limited to the cost phase-out schedule of the Balanced Budget Act of 1997.
267.22(f) Effective January 1, 2001, each federally qualified health center and rural health
267.23clinic may elect to be paid either under the prospective payment system established
267.24in United States Code, title 42, section 1396a(aa), or under an alternative payment
267.25methodology consistent with the requirements of United States Code, title 42, section
267.261396a(aa), and approved by the Centers for Medicare and Medicaid Services. The
267.27alternative payment methodology shall be 100 percent of cost as determined according to
267.28Medicare cost principles.
267.29(g) For purposes of this section, "nonprofit community clinic" is a clinic that:
267.30(1) has nonprofit status as specified in chapter 317A;
267.31(2) has tax exempt status as provided in Internal Revenue Code, section 501(c)(3);
267.32(3) is established to provide health services to low-income population groups,
267.33uninsured, high-risk and special needs populations, underserved and other special needs
267.34populations;
267.35(4) employs professional staff at least one-half of which are familiar with the
267.36cultural background of their clients;
268.1(5) charges for services on a sliding fee scale designed to provide assistance to
268.2low-income clients based on current poverty income guidelines and family size; and
268.3(6) does not restrict access or services because of a client's financial limitations or
268.4public assistance status and provides no-cost care as needed.
268.5(h) Effective for dates of service on and after January 1, 2015, all claims for payment
268.6of clinic services provided by federally qualified health centers and rural health clinics
268.7shall be submitted directly to the commissioner and paid by the commissioner. The
268.8commissioner shall provide claims information received by the commissioner under
268.9this paragraph for recipients enrolled in managed care to managed care organizations
268.10on a regular basis.
268.11(i) For clinic services provided prior to January 1, 2015, the commissioner shall
268.12calculate and pay monthly the proposed managed care supplemental payments to clinics
268.13and clinics shall conduct a timely review of the payment calculation data in order to
268.14finalize all supplemental payments in accordance with federal law. Any issues arising
268.15from a clinic's review must be reported to the commissioner by January 1, 2017. Upon
268.16final agreement between the commissioner and a clinic on issues identified under this
268.17subdivision, and in accordance with United States Code, title 42, section 1396a(bb), no
268.18supplemental payments for managed care claims for dates of service prior to January 1,
268.192015, shall be made after June 30, 2017. If the commissioner and clinics are unable to
268.20resolve issues under this subdivision, the parties shall submit the dispute to the arbitration
268.21process under section 14.57.

268.22    Sec. 38. Minnesota Statutes 2012, section 256B.0751, is amended by adding a
268.23subdivision to read:
268.24    Subd. 10. Health care homes advisory committee. (a) The commissioners of
268.25health and human services shall establish a health care homes advisory committee to
268.26advise the commissioners on the ongoing statewide implementation of the health care
268.27homes program authorized in this section.
268.28(b) The commissioners shall establish an advisory committee that includes
268.29representatives of the health care professions such as primary care providers; mental
268.30health providers; nursing and care coordinators; certified health care home clinics with
268.31statewide representation; health plan companies; state agencies; employers; academic
268.32researchers; consumers; and organizations that work to improve health care quality in
268.33Minnesota. At least 25 percent of the committee members must be consumers or patients
268.34in health care homes. The commissioners, in making appointments to the committee, shall
268.35ensure geographic representation of all regions of the state.
269.1(c) The advisory committee shall advise the commissioners on ongoing
269.2implementation of the health care homes program, including, but not limited to, the
269.3following activities:
269.4(1) implementation of certified health care homes across the state on performance
269.5management and implementation of benchmarking;
269.6(2) implementation of modifications to the health care homes program based on
269.7results of the legislatively mandated health care home evaluation;
269.8(3) statewide solutions for engagement of employers and commercial payers;
269.9(4) potential modifications of the health care home rules or statutes;
269.10(5) consumer engagement, including patient and family-centered care, patient
269.11activation in health care, and shared decision making;
269.12(6) oversight for health care home subject matter task forces or workgroups; and
269.13(7) other related issues as requested by the commissioners.
269.14(d) The advisory committee shall have the ability to establish subcommittees on
269.15specific topics. The advisory committee is governed by section 15.059. Notwithstanding
269.16section 15.059, the advisory committee does not expire.

269.17    Sec. 39. Minnesota Statutes 2012, section 256B.199, is amended to read:
269.18256B.199 PAYMENTS REPORTED BY GOVERNMENTAL ENTITIES.
269.19    (a) Effective July 1, 2007, The commissioner shall apply for federal matching
269.20funds for the expenditures in paragraphs (b) and (c). Effective September 1, 2011, the
269.21commissioner shall apply for matching funds for expenditures in paragraph (e).
269.22    (b) The commissioner shall apply for federal matching funds for certified public
269.23expenditures as follows:
269.24    (1) Hennepin County, Hennepin County Medical Center, Ramsey County, and
269.25 Regions Hospital, the University of Minnesota, and Fairview-University Medical Center
269.26 shall report quarterly to the commissioner beginning June 1, 2007, payments made during
269.27the second previous quarter that may qualify for reimbursement under federal law;
269.28     (2) based on these reports, the commissioner shall apply for federal matching
269.29funds. These funds are appropriated to the commissioner for the payments under section
269.30256.969, subdivision 27; and
269.31     (3) by May 1 of each year, beginning May 1, 2007, the commissioner shall inform
269.32the nonstate entities listed in paragraph (a) of the amount of federal disproportionate share
269.33hospital payment money expected to be available in the current federal fiscal year.
269.34    (c) The commissioner shall apply for federal matching funds for general assistance
269.35medical care expenditures as follows:
270.1    (1) for hospital services occurring on or after July 1, 2007, general assistance medical
270.2care expenditures for fee-for-service inpatient and outpatient hospital payments made by
270.3the department shall be used to apply for federal matching funds, except as limited below:
270.4    (i) only those general assistance medical care expenditures made to an individual
270.5hospital that would not cause the hospital to exceed its individual hospital limits under
270.6section 1923 of the Social Security Act may be considered; and
270.7    (ii) general assistance medical care expenditures may be considered only to the extent
270.8of Minnesota's aggregate allotment under section 1923 of the Social Security Act; and
270.9    (2) all hospitals must provide any necessary expenditure, cost, and revenue
270.10information required by the commissioner as necessary for purposes of obtaining federal
270.11Medicaid matching funds for general assistance medical care expenditures.
270.12(d) (c) For the period from April 1, 2009, to September 30, 2010, the commissioner
270.13shall apply for additional federal matching funds available as disproportionate share
270.14hospital payments under the American Recovery and Reinvestment Act of 2009. These
270.15funds shall be made available as the state share of payments under section 256.969,
270.16subdivision 28 . The entities required to report certified public expenditures under
270.17paragraph (b), clause (1), shall report additional certified public expenditures as necessary
270.18under this paragraph.
270.19(e) (d) For services provided on or after September 1, 2011, the commissioner shall
270.20apply for additional federal matching funds available as disproportionate share hospital
270.21payments under the MinnesotaCare program according to the requirements and conditions
270.22of paragraph (c). A hospital may elect on an annual basis to not be a disproportionate
270.23share hospital for purposes of this paragraph, if the hospital does not qualify for a payment
270.24under section 256.969, subdivision 9, paragraph (b).

270.25    Sec. 40. Minnesota Statutes 2012, section 256B.35, subdivision 1, is amended to read:
270.26    Subdivision 1. Personal needs allowance. (a) Notwithstanding any law to the
270.27contrary, welfare allowances for clothing and personal needs for individuals receiving
270.28medical assistance while residing in any skilled nursing home, intermediate care facility,
270.29or medical institution including recipients of Supplemental Security Income, in this state
270.30shall not be less than $45 per month from all sources. When benefit amounts for Social
270.31Security or Supplemental Security Income recipients are increased pursuant to United
270.32States Code, title 42, sections 415(i) and 1382f, the commissioner shall, effective in the
270.33month in which the increase takes effect, increase by the same percentage to the nearest
270.34whole dollar the clothing and personal needs allowance for individuals receiving medical
270.35assistance while residing in any skilled nursing home, medical institution, or intermediate
271.1care facility. The commissioner shall provide timely notice to local agencies, providers,
271.2and recipients of increases under this provision.
271.3(b) The personal needs allowance may be paid as part of the Minnesota supplemental
271.4aid program, and payments to recipients of Minnesota supplemental aid may be made once
271.5each three months covering liabilities that accrued during the preceding three months.
271.6(c) The personal needs allowance shall be increased to include income garnished
271.7for child support under a court order, up to a maximum of $250 per month but only to
271.8the extent that the amount garnished is not deducted as a monthly allowance for children
271.9under section 256B.0575, paragraph (a), clause (5).
271.10(d) Solely for the purpose of section 256B.0575, subdivision 1, paragraph (a), clause
271.11(1), the personal needs allowance shall be increased to include income garnished for
271.12spousal maintenance under a judgment and decree for dissolution of marriage, and any
271.13administrative fees garnished for collection efforts.

271.14    Sec. 41. Minnesota Statutes 2013 Supplement, section 256B.69, subdivision 34,
271.15is amended to read:
271.16    Subd. 34. Supplemental recovery program. The commissioner shall conduct a
271.17supplemental recovery program for third-party liabilities, identified through coordination
271.18of benefits, not recovered by managed care plans and county-based purchasing plans for
271.19state public health programs. Any third-party liability identified through coordination
271.20of benefits, and recovered by the commissioner more than six eight months after the
271.21date a managed care plan or county-based purchasing plan receives adjudicates a health
271.22care claim, shall be retained by the commissioner and deposited in the general fund.
271.23The commissioner shall establish a mechanism, including a reconciliation process, for
271.24managed care plans and county-based purchasing plans to coordinate third-party liability
271.25collections efforts resulting from coordination of benefits under this subdivision with the
271.26commissioner to ensure there is no duplication of efforts. The coordination mechanism
271.27must be consistent with the reporting requirements in subdivision 9c. The commissioner
271.28shall share accurate and timely third-party liability data with managed care organizations.

271.29    Sec. 42. Laws 2013, chapter 108, article 1, section 24, the effective date, is amended to
271.30read:
271.31EFFECTIVE DATE.This section is effective January July 1, 2014.
271.32EFFECTIVE DATE.This section is effective the day following final enactment.

272.1    Sec. 43. MEDICAL ASSISTANCE SPENDDOWN REQUIREMENTS.
272.2The commissioner of human services, in consultation with interested stakeholders,
272.3shall review medical assistance spenddown requirements and processes, including those
272.4used in other states, for individuals with disabilities and seniors age 65 years of age or
272.5older. Based on this review, the commissioner shall recommend alternative medical
272.6assistance spenddown payment requirements and processes that:
272.7(1) are practical for current and potential medical assistance recipients, providers,
272.8and the Department of Human Services;
272.9(2) improve the medical assistance payment process for providers; and
272.10(3) allow current and potential medical assistance recipients to obtain consistent
272.11and affordable medical coverage.
272.12The commissioner shall report these recommendations, along with the projected cost,
272.13to the chairs and ranking minority members of the legislative committees and divisions
272.14with jurisdiction over health and human services policy and finance by November 15, 2015.

272.15    Sec. 44. PROHIBITION ON USE OF FUNDS.
272.16    Subdivision 1. Use of funds. Funding for state-sponsored health programs shall not
272.17be used for funding abortions, except to the extent necessary for continued participation
272.18in a federal program. For purposes of this section, abortion has the meaning given in
272.19Minnesota Statutes, section 144.343, subdivision 3.
272.20    Subd. 2. Severability. If any one or more provision, section, subdivision, sentence,
272.21clause, phrase, or word of this section or the application of it to any person or circumstance
272.22is found to be unconstitutional, it is declared to be severable and the balance of this section
272.23shall remain effective notwithstanding such unconstitutionality. The legislature intends
272.24that it would have passed this section, and each provision, section, subdivision, sentence,
272.25clause, phrase, or word irrespective of the fact that any one provision, section, subdivision,
272.26sentence, clause, phrase, or word is declared unconstitutional.

272.27    Sec. 45. STUDY OF MINNESOTACARE FINANCIAL VIABILITY.
272.28The commissioner of human services shall study the financial viability of the
272.29MinnesotaCare program. In conducting the study, the commissioner shall examine:
272.30(1) projected funding and alternative funding sources; (2) the appropriate level of
272.31MinnesotaCare covered services and cost-sharing; (3) projected and actual enrollment
272.32in the program; and (4) other factors the commissioner determines to be relevant. The
272.33commissioner shall present to the legislature, by January 1, 2015, recommendations for
273.1any program and funding changes necessary to ensure that the MinnesotaCare program
273.2remains financially viable and meets the health care needs of enrollees.

273.3    Sec. 46. WAIVER APPLICATIONS FOR NONEMERGENCY MEDICAL
273.4TRANSPORTATION SERVICE PROVIDERS.
273.5    Subdivision 1. Definitions. For purposes of this section, the following definitions
273.6apply:
273.7(1) "new provider" is a nonemergency medical transportation service provider that
273.8was not required to comply with special transportation service operating standards before
273.9the effective date of this act; and
273.10(2) "commissioner" is the commissioner of human services.
273.11    Subd. 2. Application for and terms of variance. A new provider may apply to the
273.12commissioner, on a form supplied by the commissioner for this purpose, for a variance
273.13from special transportation service operating standards. The commissioner may grant or
273.14deny the variance application. Variances expire on the earlier of, February 1, 2016, or the
273.15date that the commissioner of transportation begins certifying new providers under the
273.16terms of this act and successor legislation.
273.17    Subd. 3. Information concerning variances. The commissioner shall periodically
273.18transmit to the Department of Transportation the number of variance applications received
273.19and the number granted.
273.20    Subd. 4. Report by commissioner of transportation. On or before February
273.211, 2015, the commissioner of transportation shall report to the chairs and ranking
273.22minority members of the senate and house of representatives committees and divisions
273.23with jurisdiction over transportation and human services concerning implementing this
273.24act. The report must contain recommendations of the commissioner of transportation
273.25concerning statutes, session laws, and rules that must be amended, repealed, enacted, or
273.26adopted to implement the terms of this act. The recommendations must include, without
273.27limitation, the amount of the fee that would be required to cover the costs of Department of
273.28Transportation supervision of inspection and certification, as well as any needed statutory
273.29rulemaking or other authority to be granted to the commissioner of transportation.

273.30    Sec. 47. REPEALER.
273.31(a) Minnesota Statutes 2012, sections 256.969, subdivisions 2c, 8b, 9a, 9b, 11, 13,
273.3220, 21, 22, 26, 27, and 28; and 256.9695, subdivisions 3 and 4, are repealed.
273.33(b) Minnesota Statutes 2013 Supplement, section 256B.0625, subdivision 18f, is
273.34repealed.


274.4    Section 1. Minnesota Statutes 2012, section 119B.09, subdivision 9a, is amended to
274.5read:
274.6    Subd. 9a. Child care centers; assistance. (a) For the purposes of this subdivision,
274.7"qualifying child" means a child who satisfies both of the following:
274.8    (1) is not a child or dependent of an employee of the child care provider; and
274.9    (2) does not reside with an employee of the child care provider.
274.10    (b) Funds distributed under this chapter must not be paid for child care services
274.11that are provided for a child by a child care provider who employs either the parent of
274.12the child or a person who resides with the child, unless at all times at least 50 percent of
274.13the children for whom the child care provider is providing care are qualifying children
274.14under paragraph (a).
274.15    (c) If a child care provider satisfies the requirements for payment under paragraph
274.16(b), but the percentage of qualifying children under paragraph (a) for whom the provider
274.17is providing care falls below 50 percent, the provider shall have four weeks to raise the
274.18percentage of qualifying children for whom the provider is providing care to at least 50
274.19percent before payments to the provider are discontinued for child care services provided
274.20for a child who is not a qualifying child.
274.21    (d) This subdivision is suspended effective the day following final enactment and is
274.22reinstated effective July 1, 2016.

274.23    Sec. 2. Minnesota Statutes 2012, section 119B.09, is amended by adding a subdivision
274.24to read:
274.25    Subd. 9b. Evaluation; new Americans child care center model. (a) The
274.26commissioner of human services shall contract with an agency skilled in cross-cultural
274.27competencies and program evaluation to analyze achievement of children, meaningful
274.28employment of parents, and compliance with state goals for the child care assistance
274.29program, federal requirements under the child care and development fund, and state
274.30licensing laws and rules. The contract shall evaluate the following:
274.31    (1) the economic impact of enforcing section 119B.09, subdivision 9a;
274.32    (2) the cultural assets of the existing new Americans child care center models;
274.33    (3) the educational achievement record of children participating in the existing
274.34new Americans child care center models;
275.1    (4) the employability, jobs, and job advancement opportunities created for parents
275.2employed in the existing new Americans child care center models, including movement
275.3into jobs outside of child care centers attended by their children;
275.4    (5) the professional development of parents as measured through training and
275.5coaching approved through the Minnesota Center for Professional Development;
275.6    (6) the alignment of parental employment within a child care center with state and
275.7federal law and regulation pertaining to the child care assistance program; and
275.8    (7) employee experience providing independent care to groups of children other
275.9than their own.
275.10    (b) The commissioner shall report the findings of the evaluation and report to the
275.11chairs and ranking minority members of the legislative committees with jurisdiction
275.12over early childhood education and health and human services policy and finance by
275.13January 15, 2016.
275.14    (c) $200,000 is appropriated in fiscal year 2015 for the purposes specified in this
275.15subdivision.

275.16    Sec. 3. Minnesota Statutes 2012, section 245A.03, subdivision 2c, is amended to read:
275.17    Subd. 2c. School-age child care licensing moratorium. A school-age program
275.18whose sole purpose is to provide only services to school-age children during out-of-school
275.19times is exempt from the human services licensing requirements in this chapter until
275.20July 1, 2014 2015. Nothing in this section prohibits an already licensed school-age-only
275.21program from continuing its license or a school-age program from seeking licensure.

275.22    Sec. 4. Minnesota Statutes 2012, section 245C.05, subdivision 5, is amended to read:
275.23    Subd. 5. Fingerprints. (a) Except as provided in paragraph (c), for any background
275.24study completed under this chapter, when the commissioner has reasonable cause to
275.25believe that further pertinent information may exist on the subject of the background
275.26study, the subject shall provide the commissioner with a set of classifiable fingerprints
275.27obtained from an authorized agency.
275.28    (b) For purposes of requiring fingerprints, the commissioner has reasonable cause
275.29when, but not limited to, the:
275.30    (1) information from the Bureau of Criminal Apprehension indicates that the subject
275.31is a multistate offender;
275.32    (2) information from the Bureau of Criminal Apprehension indicates that multistate
275.33offender status is undetermined; or
276.1    (3) commissioner has received a report from the subject or a third party indicating
276.2that the subject has a criminal history in a jurisdiction other than Minnesota.
276.3    (c) Except as specified under section 245C.04, subdivision 1, paragraph (d), for
276.4background studies conducted by the commissioner for child foster care or, adoptions, or a
276.5transfer of permanent legal and physical custody of a child, the subject of the background
276.6study, who is 18 years of age or older, shall provide the commissioner with a set of
276.7classifiable fingerprints obtained from an authorized agency.

276.8    Sec. 5. Minnesota Statutes 2013 Supplement, section 245C.08, subdivision 1, is
276.9amended to read:
276.10    Subdivision 1. Background studies conducted by Department of Human
276.11Services. (a) For a background study conducted by the Department of Human Services,
276.12the commissioner shall review:
276.13    (1) information related to names of substantiated perpetrators of maltreatment of
276.14vulnerable adults that has been received by the commissioner as required under section
276.15626.557, subdivision 9c , paragraph (j);
276.16    (2) the commissioner's records relating to the maltreatment of minors in licensed
276.17programs, and from findings of maltreatment of minors as indicated through the social
276.18service information system;
276.19    (3) information from juvenile courts as required in subdivision 4 for individuals
276.20listed in section 245C.03, subdivision 1, paragraph (a), when there is reasonable cause;
276.21    (4) information from the Bureau of Criminal Apprehension, including information
276.22regarding a background study subject's registration in Minnesota as a predatory offender
276.23under section 243.166;
276.24    (5) except as provided in clause (6), information from the national crime information
276.25system when the commissioner has reasonable cause as defined under section 245C.05,
276.26subdivision 5; and
276.27    (6) for a background study related to a child foster care application for licensure, a
276.28transfer of permanent legal and physical custody of a child under sections 260C.503 to
276.29260C.515, or adoptions, the commissioner shall also review:
276.30    (i) information from the child abuse and neglect registry for any state in which the
276.31background study subject has resided for the past five years; and
276.32    (ii) information from national crime information databases, when the background
276.33study subject is 18 years of age or older.
276.34    (b) Notwithstanding expungement by a court, the commissioner may consider
276.35information obtained under paragraph (a), clauses (3) and (4), unless the commissioner
277.1received notice of the petition for expungement and the court order for expungement is
277.2directed specifically to the commissioner.
277.3    (c) The commissioner shall also review criminal case information received according
277.4to section 245C.04, subdivision 4a, from the Minnesota court information system that
277.5relates to individuals who have already been studied under this chapter and who remain
277.6affiliated with the agency that initiated the background study.

277.7    Sec. 6. Minnesota Statutes 2012, section 245C.33, subdivision 1, is amended to read:
277.8    Subdivision 1. Background studies conducted by commissioner. (a) Before
277.9placement of a child for purposes of adoption, the commissioner shall conduct a
277.10background study on individuals listed in section sections 259.41, subdivision 3, and
277.11260C.611, for county agencies and private agencies licensed to place children for adoption.
277.12 When a prospective adoptive parent is seeking to adopt a child who is currently placed in
277.13the prospective adoptive parent's home and is under the guardianship of the commissioner
277.14according to section 260C.325, subdivision 1, paragraph (b), and the prospective adoptive
277.15parent holds a child foster care license, a new background study is not required when:
277.16(1) a background study was completed on persons required to be studied under section
277.17245C.03 in connection with the application for child foster care licensure after July 1, 2007;
277.18(2) the background study included a review of the information in section 245C.08,
277.19subdivisions 1, 3, and 4; and
277.20(3) as a result of the background study, the individual was either not disqualified
277.21or, if disqualified, the disqualification was set aside under section 245C.22, or a variance
277.22was issued under section 245C.30.
277.23(b) Before the kinship placement agreement is signed for the purpose of transferring
277.24permanent legal and physical custody to a relative under sections 260C.503 to 260C.515,
277.25the commissioner shall conduct a background study on each person age 13 or older living
277.26in the home. When a prospective relative custodian has a child foster care license, a new
277.27background study is not required when:
277.28(1) a background study was completed on persons required to be studied under section
277.29245C.03 in connection with the application for child foster care licensure after July 1, 2007;
277.30(2) the background study included a review of the information in section 245C.08,
277.31subdivisions 1, 3, and 4; and
277.32(3) as a result of the background study, the individual was either not disqualified or,
277.33if disqualified, the disqualification was set aside under section 245C.22, or a variance was
277.34issued under section 245C.30. The commissioner and the county agency shall expedite any
277.35request for a set aside or variance for a background study required under chapter 256N.

278.1    Sec. 7. Minnesota Statutes 2012, section 245C.33, subdivision 4, is amended to read:
278.2    Subd. 4. Information commissioner reviews. (a) The commissioner shall review
278.3the following information regarding the background study subject:
278.4    (1) the information under section 245C.08, subdivisions 1, 3, and 4;
278.5    (2) information from the child abuse and neglect registry for any state in which the
278.6subject has resided for the past five years; and
278.7    (3) information from national crime information databases, when required under
278.8section 245C.08.
278.9    (b) The commissioner shall provide any information collected under this subdivision
278.10to the county or private agency that initiated the background study. The commissioner
278.11shall also provide the agency:
278.12(1) notice whether the information collected shows that the subject of the background
278.13study has a conviction listed in United States Code, title 42, section 671(a)(20)(A); and
278.14(2) for background studies conducted under subdivision 1, paragraph (a), the date of
278.15all adoption-related background studies completed on the subject by the commissioner
278.16after June 30, 2007, and the name of the county or private agency that initiated the
278.17adoption-related background study.

278.18    Sec. 8. Minnesota Statutes 2012, section 256J.49, subdivision 13, is amended to read:
278.19    Subd. 13. Work activity. (a) "Work activity" means any activity in a participant's
278.20approved employment plan that leads to employment. For purposes of the MFIP program,
278.21this includes activities that meet the definition of work activity under the participation
278.22requirements of TANF. Work activity includes:
278.23    (1) unsubsidized employment, including work study and paid apprenticeships or
278.24internships;
278.25    (2) subsidized private sector or public sector employment, including grant diversion
278.26as specified in section 256J.69, on-the-job training as specified in section 256J.66, paid
278.27work experience, and supported work when a wage subsidy is provided;
278.28    (3) unpaid work experience, including community service, volunteer work,
278.29the community work experience program as specified in section 256J.67, unpaid
278.30apprenticeships or internships, and supported work when a wage subsidy is not provided.
278.31Unpaid work experience is only an option if the participant has been unable to obtain or
278.32maintain paid employment in the competitive labor market, and no paid work experience
278.33programs are available to the participant. Prior to placing a participant in unpaid work,
278.34the county must inform the participant that the participant will be notified if a paid work
278.35experience or supported work position becomes available. Unless a participant consents in
279.1writing to participate in unpaid work experience, the participant's employment plan may
279.2only include unpaid work experience if including the unpaid work experience in the plan
279.3will meet the following criteria:
279.4    (i) the unpaid work experience will provide the participant specific skills or
279.5experience that cannot be obtained through other work activity options where the
279.6participant resides or is willing to reside; and
279.7    (ii) the skills or experience gained through the unpaid work experience will result
279.8in higher wages for the participant than the participant could earn without the unpaid
279.9work experience;
279.10    (4) job search including job readiness assistance, job clubs, job placement,
279.11job-related counseling, and job retention services;
279.12    (5) job readiness education, including English as a second language (ESL) or
279.13functional work literacy classes as limited by the provisions of section 256J.531,
279.14subdivision 2 , general educational development (GED) or Minnesota adult diploma course
279.15work, high school completion, and adult basic education as limited by the provisions of
279.16section 256J.531, subdivision 1;
279.17    (6) job skills training directly related to employment, including postsecondary
279.18education and training that can reasonably be expected to lead to employment, as limited
279.19by the provisions of section 256J.53;
279.20    (7) providing child care services to a participant who is working in a community
279.21service program;
279.22    (8) activities included in the employment plan that is developed under section
279.23256J.521, subdivision 3 ; and
279.24    (9) preemployment activities including chemical and mental health assessments,
279.25treatment, and services; learning disabilities services; child protective services; family
279.26stabilization services; or other programs designed to enhance employability.
279.27(b) "Work activity" does not include activities done for political purposes as defined
279.28in section 211B.01, subdivision 6.

279.29    Sec. 9. Minnesota Statutes 2012, section 256J.53, subdivision 1, is amended to read:
279.30    Subdivision 1. Length of program. (a) In order for a postsecondary education
279.31or training program to be an approved work activity as defined in section 256J.49,
279.32subdivision 13 , clause (6), it must be a program lasting 24 months four years or less, and
279.33the participant must meet the requirements of subdivisions 2, 3, and 5.
280.1(b) Participants with a high school diploma, general educational development (GED)
280.2credential, or Minnesota adult diploma must be informed of the opportunity to participate
280.3in postsecondary education or training while in the Minnesota family investment program.

280.4    Sec. 10. Minnesota Statutes 2012, section 256J.53, subdivision 2, is amended to read:
280.5    Subd. 2. Approval of postsecondary education or training. (a) In order for a
280.6postsecondary education or training program to be an approved activity in an employment
280.7plan, the plan must include additional work activities if the education and training
280.8activities do not meet the minimum hours required to meet the federal work participation
280.9rate under Code of Federal Regulations, title 45, sections 261.31 and 261.35.
280.10    (b) Participants seeking approval of a who are interested in participating in
280.11 postsecondary education or training plan as part of their employment plan must provide
280.12documentation that discuss their education plans with their job counselor. Job counselors
280.13must work with participants to evaluate options by:
280.14    (1) the employment goal can only be met with the additional education or training;
280.15    (2) advising whether there are suitable employment opportunities that require the
280.16specific education or training in the area in which the participant resides or is willing
280.17to reside;
280.18    (3) the education or training will result in significantly higher wages for the
280.19participant than the participant could earn without the education or training;
280.20    (4) (2) assisting the participant in exploring whether the participant can meet the
280.21requirements for admission into the program; and
280.22    (5) (3) there is a reasonable expectation that the participant will complete the training
280.23program discussing the participant's strengths and challenges based on such factors as the
280.24participant's MFIP assessment, previous education, training, and work history; current
280.25motivation; and changes in previous circumstances.
280.26(b) The requirements of this subdivision do not apply to participants who are in:
280.27(1) a recognized career pathway program that leads to stackable credentials;
280.28(2) a training program lasting 12 weeks or less; or
280.29(3) the final year of a multi-year postsecondary education or training program.

280.30    Sec. 11. Minnesota Statutes 2012, section 256J.53, subdivision 5, is amended to read:
280.31    Subd. 5. Requirements after postsecondary education or training. Upon
280.32completion of an approved education or training program, a participant who does not meet
280.33the participation requirements in section 256J.55, subdivision 1, through unsubsidized
280.34employment must participate in job search. If, after six 12 weeks of job search, the
281.1participant does not find a full-time job consistent with the employment goal, the
281.2participant must accept any offer of full-time suitable employment, or meet with the job
281.3counselor to revise the employment plan to include additional work activities necessary to
281.4meet hourly requirements.

281.5    Sec. 12. Minnesota Statutes 2012, section 256J.531, is amended to read:
281.6256J.531 BASIC EDUCATION; ENGLISH AS A SECOND LANGUAGE.
281.7    Subdivision 1. Approval of adult basic education. With the exception of classes
281.8related to obtaining a general educational development credential (GED), a participant
281.9must have reading or mathematics proficiency below a ninth grade level in order for adult
281.10basic education classes to be an A participant who lacks a high school diploma, general
281.11educational development (GED) credential, or Minnesota adult diploma must be allowed
281.12to pursue these credentials as an approved work activity, provided that the participant
281.13is making satisfactory progress. Participants eligible to pursue a general educational
281.14development (GED) credential or Minnesota adult diploma under this subdivision must
281.15be informed of the opportunity to participate while in the Minnesota family investment
281.16program. The employment plan must also specify that the participant fulfill no more than
281.17one-half of the participation requirements in section 256J.55, subdivision 1, through
281.18attending adult basic education or general educational development classes.
281.19    Subd. 2. Approval of English as a second language. In order for English as a
281.20second language (ESL) classes to be an approved work activity in an employment plan, a
281.21participant must be below a spoken language proficiency level of SPL6 or its equivalent,
281.22as measured by a nationally recognized test. In approving ESL as a work activity, the job
281.23counselor must give preference to enrollment in a functional work literacy program,
281.24if one is available, over a regular ESL program. A participant may not be approved
281.25for more than a combined total of 24 months of ESL classes while participating in the
281.26diversionary work program and the employment and training services component of
281.27MFIP. The employment plan must also specify that the participant fulfill no more than
281.28one-half of the participation requirements in section 256J.55, subdivision 1, through
281.29attending ESL classes. For participants enrolled in functional work literacy classes, no
281.30more than two-thirds of the participation requirements in section 256J.55, subdivision 1,
281.31may be met through attending functional work literacy classes.

281.32    Sec. 13. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 1, is
281.33amended to read:
282.1    Subdivision 1. General eligibility requirements. (a) To be eligible for guardianship
282.2assistance under this section, there must be a judicial determination under section
282.3260C.515, subdivision 4 , that a transfer of permanent legal and physical custody to a
282.4relative is in the child's best interest. For a child under jurisdiction of a tribal court, a
282.5judicial determination under a similar provision in tribal code indicating that a relative
282.6will assume the duty and authority to provide care, control, and protection of a child who
282.7is residing in foster care, and to make decisions regarding the child's education, health
282.8care, and general welfare until adulthood, and that this is in the child's best interest is
282.9considered equivalent. Additionally, a child must:
282.10(1) have been removed from the child's home pursuant to a voluntary placement
282.11agreement or court order;
282.12(2)(i) have resided in with the prospective relative custodian who has been a
282.13licensed child foster care parent for at least six consecutive months in the home of the
282.14prospective relative custodian; or
282.15(ii) have received from the commissioner an exemption from the requirement in item
282.16(i) from the court that the prospective relative custodian has been a licensed child foster
282.17parent for at least six consecutive months, based on a determination that:
282.18(A) an expedited move to permanency is in the child's best interest;
282.19(B) expedited permanency cannot be completed without provision of guardianship
282.20assistance; and
282.21(C) the prospective relative custodian is uniquely qualified to meet the child's needs,
282.22as defined in section 260C.212, subdivision 2, on a permanent basis;
282.23(D) the child and prospective relative custodian meet the eligibility requirements
282.24of this section; and
282.25(E) efforts were made by the legally responsible agency to place the child with the
282.26prospective relative custodian as a licensed child foster parent for six consecutive months
282.27before permanency, or an explanation why these efforts were not in the child's best interests;
282.28(3) meet the agency determinations regarding permanency requirements in
282.29subdivision 2;
282.30(4) meet the applicable citizenship and immigration requirements in subdivision 3;
282.31(5) have been consulted regarding the proposed transfer of permanent legal and
282.32physical custody to a relative, if the child is at least 14 years of age or is expected to attain
282.3314 years of age prior to the transfer of permanent legal and physical custody; and
282.34(6) have a written, binding agreement under section 256N.25 among the caregiver or
282.35caregivers, the financially responsible agency, and the commissioner established prior to
282.36transfer of permanent legal and physical custody.
283.1(b) In addition to the requirements in paragraph (a), the child's prospective relative
283.2custodian or custodians must meet the applicable background study requirements in
283.3subdivision 4.
283.4(c) To be eligible for title IV-E guardianship assistance, a child must also meet any
283.5additional criteria in section 473(d) of the Social Security Act. The sibling of a child
283.6who meets the criteria for title IV-E guardianship assistance in section 473(d) of the
283.7Social Security Act is eligible for title IV-E guardianship assistance if the child and
283.8sibling are placed with the same prospective relative custodian or custodians, and the
283.9legally responsible agency, relatives, and commissioner agree on the appropriateness of
283.10the arrangement for the sibling. A child who meets all eligibility criteria except those
283.11specific to title IV-E guardianship assistance is entitled to guardianship assistance paid
283.12through funds other than title IV-E.

283.13    Sec. 14. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 2, is
283.14amended to read:
283.15    Subd. 2. Agency determinations regarding permanency. (a) To be eligible for
283.16guardianship assistance, the legally responsible agency must complete the following
283.17determinations regarding permanency for the child prior to the transfer of permanent
283.18legal and physical custody:
283.19(1) a determination that reunification and adoption are not appropriate permanency
283.20options for the child; and
283.21(2) a determination that the child demonstrates a strong attachment to the prospective
283.22relative custodian and the prospective relative custodian has a strong commitment to
283.23caring permanently for the child.
283.24(b) The legally responsible agency shall document the determinations in paragraph
283.25(a) and the eligibility requirements in this section that comply with United States Code,
283.26title 42, sections 673(d) and 675(1)(F). These determinations must be documented in a
283.27kinship placement agreement, which must be in the format prescribed by the commissioner
283.28and must be signed by the prospective relative custodian and the legally responsible
283.29agency. In the case of a Minnesota tribe, the determinations and eligibility requirements
283.30in this section may be provided in an alternative format approved by the commissioner.
283.31 Supporting information for completing each determination must be documented in the
283.32legally responsible agency's case file and make them available for review as requested
283.33by the financially responsible agency and the commissioner during the guardianship
283.34assistance eligibility determination process.

284.1    Sec. 15. Minnesota Statutes 2013 Supplement, section 256N.22, subdivision 4, is
284.2amended to read:
284.3    Subd. 4. Background study. (a) A background study under section 245C.33 must be
284.4completed on each prospective relative custodian and any other adult residing in the home
284.5of the prospective relative custodian. The background study must meet the requirements of
284.6United States Code, title 42, section 671(a)(20). A study completed under section 245C.33
284.7meets this requirement. A background study on the prospective relative custodian or adult
284.8residing in the household previously completed under section 245C.04 chapter 245C for the
284.9purposes of child foster care licensure may under chapter 245A or licensure by a Minnesota
284.10tribe, shall be used for the purposes of this section, provided that the background study is
284.11current meets the requirements of this subdivision and the prospective relative custodian is
284.12a licensed child foster parent at the time of the application for guardianship assistance.
284.13(b) If the background study reveals:
284.14(1) a felony conviction at any time for:
284.15(i) child abuse or neglect;
284.16(ii) spousal abuse;
284.17(iii) a crime against a child, including child pornography; or
284.18(iv) a crime involving violence, including rape, sexual assault, or homicide, but not
284.19including other physical assault or battery; or
284.20(2) a felony conviction within the past five years for:
284.21(i) physical assault;
284.22(ii) battery; or
284.23(iii) a drug-related offense;
284.24the prospective relative custodian is prohibited from receiving guardianship assistance
284.25on behalf of an otherwise eligible child.

284.26    Sec. 16. Minnesota Statutes 2013 Supplement, section 256N.23, subdivision 4, is
284.27amended to read:
284.28    Subd. 4. Background study. (a) A background study under section 259.41 must be
284.29completed on each prospective adoptive parent. and all other adults residing in the home.
284.30A background study must meet the requirements of United States Code, title 42, section
284.31671(a)(20). A study completed under section 245C.33 meets this requirement. If the
284.32prospective adoptive parent is a licensed child foster parent licensed under chapter 245A
284.33or by a Minnesota tribe, the background study previously completed for the purposes of
284.34child foster care licensure shall be used for the purpose of this section, provided that the
284.35background study meets all other requirements of this subdivision and the prospective
285.1adoptive parent is a licensed child foster parent at the time of the application for adoption
285.2assistance.
285.3(b) If the background study reveals:
285.4(1) a felony conviction at any time for:
285.5(i) child abuse or neglect;
285.6(ii) spousal abuse;
285.7(iii) a crime against a child, including child pornography; or
285.8(iv) a crime involving violence, including rape, sexual assault, or homicide, but not
285.9including other physical assault or battery; or
285.10(2) a felony conviction within the past five years for:
285.11(i) physical assault;
285.12(ii) battery; or
285.13(iii) a drug-related offense;
285.14the adoptive parent is prohibited from receiving adoption assistance on behalf of an
285.15otherwise eligible child.

285.16    Sec. 17. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 2, is
285.17amended to read:
285.18    Subd. 2. Negotiation of agreement. (a) When a child is determined to be eligible
285.19for guardianship assistance or adoption assistance, the financially responsible agency, or,
285.20if there is no financially responsible agency, the agency designated by the commissioner,
285.21must negotiate with the caregiver to develop an agreement under subdivision 1. If and when
285.22the caregiver and agency reach concurrence as to the terms of the agreement, both parties
285.23shall sign the agreement. The agency must submit the agreement, along with the eligibility
285.24determination outlined in sections 256N.22, subdivision 7, and 256N.23, subdivision 7, to
285.25the commissioner for final review, approval, and signature according to subdivision 1.
285.26(b) A monthly payment is provided as part of the adoption assistance or guardianship
285.27assistance agreement to support the care of children unless the child is eligible for adoption
285.28assistance and determined to be an at-risk child, in which case the special at-risk monthly
285.29payment under section 256N.26, subdivision 7, must no payment will be made unless and
285.30until the caregiver obtains written documentation from a qualified expert that the potential
285.31disability upon which eligibility for the agreement was based has manifested itself.
285.32(1) The amount of the payment made on behalf of a child eligible for guardianship
285.33assistance or adoption assistance is determined through agreement between the prospective
285.34relative custodian or the adoptive parent and the financially responsible agency, or, if there
285.35is no financially responsible agency, the agency designated by the commissioner, using
286.1the assessment tool established by the commissioner in section 256N.24, subdivision 2,
286.2and the associated benefit and payments outlined in section 256N.26. Except as provided
286.3under section 256N.24, subdivision 1, paragraph (c), the assessment tool establishes
286.4the monthly benefit level for a child under foster care. The monthly payment under a
286.5guardianship assistance agreement or adoption assistance agreement may be negotiated up
286.6to the monthly benefit level under foster care. In no case may the amount of the payment
286.7under a guardianship assistance agreement or adoption assistance agreement exceed the
286.8foster care maintenance payment which would have been paid during the month if the
286.9child with respect to whom the guardianship assistance or adoption assistance payment is
286.10made had been in a foster family home in the state.
286.11(2) The rate schedule for the agreement is determined based on the age of the
286.12child on the date that the prospective adoptive parent or parents or relative custodian or
286.13custodians sign the agreement.
286.14(3) The income of the relative custodian or custodians or adoptive parent or parents
286.15must not be taken into consideration when determining eligibility for guardianship
286.16assistance or adoption assistance or the amount of the payments under section 256N.26.
286.17(4) With the concurrence of the relative custodian or adoptive parent, the amount of
286.18the payment may be adjusted periodically using the assessment tool established by the
286.19commissioner in section 256N.24, subdivision 2, and the agreement renegotiated under
286.20subdivision 3 when there is a change in the child's needs or the family's circumstances.
286.21(5) The guardianship assistance or adoption assistance agreement of a child who is
286.22identified as at-risk receives the special at-risk monthly payment under section 256N.26,
286.23subdivision 7, unless and until the potential disability manifests itself, as documented by
286.24an appropriate professional, and the commissioner authorizes commencement of payment
286.25by modifying the agreement accordingly. A relative custodian or An adoptive parent
286.26of an at-risk child with a guardianship assistance or an adoption assistance agreement
286.27may request a reassessment of the child under section 256N.24, subdivision 9 10, and
286.28renegotiation of the guardianship assistance or adoption assistance agreement under
286.29subdivision 3 to include a monthly payment, if the caregiver has written documentation
286.30from a qualified expert that the potential disability upon which eligibility for the agreement
286.31was based has manifested itself. Documentation of the disability must be limited to
286.32evidence deemed appropriate by the commissioner.
286.33(c) For guardianship assistance agreements:
286.34(1) the initial amount of the monthly guardianship assistance payment must be
286.35equivalent to the foster care rate in effect at the time that the agreement is signed less any
286.36offsets under section 256N.26, subdivision 11, or a lesser negotiated amount if agreed to
287.1by the prospective relative custodian and specified in that agreement, unless the child is
287.2identified as at-risk or the guardianship assistance agreement is entered into when a child
287.3is under the age of six; and
287.4(2) an at-risk child must be assigned level A as outlined in section 256N.26 and
287.5receive the special at-risk monthly payment under section 256N.26, subdivision 7, unless
287.6and until the potential disability manifests itself, as documented by a qualified expert, and
287.7the commissioner authorizes commencement of payment by modifying the agreement
287.8accordingly; and
287.9(3) (2) the amount of the monthly payment for a guardianship assistance agreement
287.10for a child, other than an at-risk child, who is under the age of six must be as specified in
287.11section 256N.26, subdivision 5.
287.12(d) For adoption assistance agreements:
287.13(1) for a child in foster care with the prospective adoptive parent immediately prior
287.14to adoptive placement, the initial amount of the monthly adoption assistance payment
287.15must be equivalent to the foster care rate in effect at the time that the agreement is signed
287.16less any offsets in section 256N.26, subdivision 11, or a lesser negotiated amount if agreed
287.17to by the prospective adoptive parents and specified in that agreement, unless the child is
287.18identified as at-risk or the adoption assistance agreement is entered into when a child is
287.19under the age of six;
287.20(2) for an at-risk child who must be assigned level A as outlined in section
287.21256N.26 and receive the special at-risk monthly payment under section 256N.26,
287.22subdivision 7, no payment will be made unless and until the potential disability manifests
287.23itself, as documented by an appropriate professional, and the commissioner authorizes
287.24commencement of payment by modifying the agreement accordingly;
287.25(3) the amount of the monthly payment for an adoption assistance agreement for
287.26a child under the age of six, other than an at-risk child, must be as specified in section
287.27256N.26, subdivision 5 ;
287.28(4) for a child who is in the guardianship assistance program immediately prior
287.29to adoptive placement, the initial amount of the adoption assistance payment must be
287.30equivalent to the guardianship assistance payment in effect at the time that the adoption
287.31assistance agreement is signed or a lesser amount if agreed to by the prospective adoptive
287.32parent and specified in that agreement, unless the child is identified as an at-risk child; and
287.33(5) for a child who is not in foster care placement or the guardianship assistance
287.34program immediately prior to adoptive placement or negotiation of the adoption assistance
287.35agreement, the initial amount of the adoption assistance agreement must be determined
288.1using the assessment tool and process in this section and the corresponding payment
288.2amount outlined in section 256N.26.

288.3    Sec. 18. Minnesota Statutes 2013 Supplement, section 256N.25, subdivision 3, is
288.4amended to read:
288.5    Subd. 3. Renegotiation of agreement. (a) A relative custodian or adoptive
288.6parent of a child with a guardianship assistance or adoption assistance agreement may
288.7request renegotiation of the agreement when there is a change in the needs of the child
288.8or in the family's circumstances. When a relative custodian or adoptive parent requests
288.9renegotiation of the agreement, a reassessment of the child must be completed consistent
288.10with section 256N.24, subdivisions 9 and 10. If the reassessment indicates that the
288.11child's level has changed, the financially responsible agency or, if there is no financially
288.12responsible agency, the agency designated by the commissioner or the commissioner's
288.13designee, and the caregiver must renegotiate the agreement to include a payment with
288.14the level determined through the reassessment process. The agreement must not be
288.15renegotiated unless the commissioner, the financially responsible agency, and the caregiver
288.16mutually agree to the changes. The effective date of any renegotiated agreement must be
288.17determined by the commissioner.
288.18(b) A relative custodian or An adoptive parent of an at-risk child with a guardianship
288.19assistance or an adoption assistance agreement may request renegotiation of the agreement
288.20to include a monthly payment higher than the special at-risk monthly payment under
288.21section 256N.26, subdivision 7, if the caregiver has written documentation from a
288.22qualified expert that the potential disability upon which eligibility for the agreement
288.23was based has manifested itself. Documentation of the disability must be limited to
288.24evidence deemed appropriate by the commissioner. Prior to renegotiating the agreement, a
288.25reassessment of the child must be conducted as outlined in section 256N.24, subdivision
288.269 . The reassessment must be used to renegotiate the agreement to include an appropriate
288.27monthly payment. The agreement must not be renegotiated unless the commissioner, the
288.28financially responsible agency, and the caregiver mutually agree to the changes. The
288.29effective date of any renegotiated agreement must be determined by the commissioner.
288.30(c) Renegotiation of a guardianship assistance or adoption assistance agreement is
288.31required when one of the circumstances outlined in section 256N.26, subdivision 13,
288.32occurs.

288.33    Sec. 19. Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 1, is
288.34amended to read:
289.1    Subdivision 1. Benefits. (a) There are three benefits under Northstar Care for
289.2Children: medical assistance, basic payment, and supplemental difficulty of care payment.
289.3(b) A child is eligible for medical assistance under subdivision 2.
289.4(c) A child is eligible for the basic payment under subdivision 3, except for a child
289.5assigned level A under section 256N.24, subdivision 1, because the child is determined to
289.6be an at-risk child receiving guardianship assistance or adoption assistance.
289.7(d) A child, including a foster child age 18 to 21, is eligible for an additional
289.8supplemental difficulty of care payment under subdivision 4, as determined by the
289.9assessment under section 256N.24.
289.10(e) An eligible child entering guardianship assistance or adoption assistance under
289.11the age of six receives a basic payment and supplemental difficulty of care payment as
289.12specified in subdivision 5.
289.13(f) A child transitioning in from a pre-Northstar Care for Children program under
289.14section 256N.28, subdivision 7, shall receive basic and difficulty of care supplemental
289.15payments according to those provisions.

289.16    Sec. 20. Minnesota Statutes 2013 Supplement, section 256N.27, subdivision 4, is
289.17amended to read:
289.18    Subd. 4. Nonfederal share. (a) The commissioner shall establish a percentage share
289.19of the maintenance payments, reduced by federal reimbursements under title IV-E of the
289.20Social Security Act, to be paid by the state and to be paid by the financially responsible
289.21agency.
289.22(b) These state and local shares must initially be calculated based on the ratio of the
289.23average appropriate expenditures made by the state and all financially responsible agencies
289.24during calendar years 2011, 2012, 2013, and 2014. For purposes of this calculation,
289.25appropriate expenditures for the financially responsible agencies must include basic and
289.26difficulty of care payments for foster care reduced by federal reimbursements, but not
289.27including any initial clothing allowance, administrative payments to child care agencies
289.28specified in section 317A.907, child care, or other support or ancillary expenditures. For
289.29purposes of this calculation, appropriate expenditures for the state shall include adoption
289.30assistance and relative custody assistance, reduced by federal reimbursements.
289.31(c) For each of the periods January 1, 2015, to June 30, 2016, and fiscal years 2017,
289.322018, and 2019, the commissioner shall adjust this initial percentage of state and local
289.33shares to reflect the relative expenditure trends during calendar years 2011, 2012, 2013, and
289.342014, taking into account appropriations for Northstar Care for Children and the turnover
289.35rates of the components. In making these adjustments, the commissioner's goal shall be to
290.1make these state and local expenditures other than the appropriations for Northstar Care
290.2for Children to be the same as they would have been had Northstar Care for Children not
290.3been implemented, or if that is not possible, proportionally higher or lower, as appropriate.
290.4Except for adjustments so that the costs of the phase-in are borne by the state, the state and
290.5local share percentages for fiscal year 2019 must be used for all subsequent years.

290.6    Sec. 21. Minnesota Statutes 2012, section 257.85, subdivision 11, is amended to read:
290.7    Subd. 11. Financial considerations. (a) Payment of relative custody assistance
290.8under a relative custody assistance agreement is subject to the availability of state funds
290.9and payments may be reduced or suspended on order of the commissioner if insufficient
290.10funds are available.
290.11(b) Upon receipt from a local agency of a claim for reimbursement, the commissioner
290.12shall reimburse the local agency in an amount equal to 100 percent of the relative custody
290.13assistance payments provided to relative custodians. The A local agency may not seek and
290.14the commissioner shall not provide reimbursement for the administrative costs associated
290.15with performing the duties described in subdivision 4.
290.16(c) For the purposes of determining eligibility or payment amounts under MFIP,
290.17relative custody assistance payments shall be excluded in determining the family's
290.18available income.
290.19(d) For expenditures made on or before December 31, 2014, upon receipt from a
290.20local agency of a claim for reimbursement, the commissioner shall reimburse the local
290.21agency in an amount equal to 100 percent of the relative custody assistance payments
290.22provided to relative custodians.
290.23(e) For expenditures made on or after January 1, 2015, upon receipt from a local
290.24agency of a claim for reimbursement, the commissioner shall reimburse the local agency as
290.25part of the Northstar Care for Children fiscal reconciliation process under section 256N.27.

290.26    Sec. 22. Minnesota Statutes 2012, section 260C.212, subdivision 1, is amended to read:
290.27    Subdivision 1. Out-of-home placement; plan. (a) An out-of-home placement plan
290.28shall be prepared within 30 days after any child is placed in foster care by court order or a
290.29voluntary placement agreement between the responsible social services agency and the
290.30child's parent pursuant to section 260C.227 or chapter 260D.
290.31    (b) An out-of-home placement plan means a written document which is prepared
290.32by the responsible social services agency jointly with the parent or parents or guardian
290.33of the child and in consultation with the child's guardian ad litem, the child's tribe, if the
290.34child is an Indian child, the child's foster parent or representative of the foster care facility,
291.1and, where appropriate, the child. For a child in voluntary foster care for treatment under
291.2chapter 260D, preparation of the out-of-home placement plan shall additionally include
291.3the child's mental health treatment provider. As appropriate, the plan shall be:
291.4    (1) submitted to the court for approval under section 260C.178, subdivision 7;
291.5    (2) ordered by the court, either as presented or modified after hearing, under section
291.6260C.178 , subdivision 7, or 260C.201, subdivision 6; and
291.7    (3) signed by the parent or parents or guardian of the child, the child's guardian ad
291.8litem, a representative of the child's tribe, the responsible social services agency, and, if
291.9possible, the child.
291.10    (c) The out-of-home placement plan shall be explained to all persons involved in its
291.11implementation, including the child who has signed the plan, and shall set forth:
291.12    (1) a description of the foster care home or facility selected, including how the
291.13out-of-home placement plan is designed to achieve a safe placement for the child in the
291.14least restrictive, most family-like, setting available which is in close proximity to the home
291.15of the parent or parents or guardian of the child when the case plan goal is reunification,
291.16and how the placement is consistent with the best interests and special needs of the child
291.17according to the factors under subdivision 2, paragraph (b);
291.18    (2) the specific reasons for the placement of the child in foster care, and when
291.19reunification is the plan, a description of the problems or conditions in the home of the
291.20parent or parents which necessitated removal of the child from home and the changes the
291.21parent or parents must make in order for the child to safely return home;
291.22    (3) a description of the services offered and provided to prevent removal of the child
291.23from the home and to reunify the family including:
291.24    (i) the specific actions to be taken by the parent or parents of the child to eliminate
291.25or correct the problems or conditions identified in clause (2), and the time period during
291.26which the actions are to be taken; and
291.27    (ii) the reasonable efforts, or in the case of an Indian child, active efforts to be made
291.28to achieve a safe and stable home for the child including social and other supportive
291.29services to be provided or offered to the parent or parents or guardian of the child, the
291.30child, and the residential facility during the period the child is in the residential facility;
291.31    (4) a description of any services or resources that were requested by the child or the
291.32child's parent, guardian, foster parent, or custodian since the date of the child's placement
291.33in the residential facility, and whether those services or resources were provided and if
291.34not, the basis for the denial of the services or resources;
291.35    (5) the visitation plan for the parent or parents or guardian, other relatives as defined
291.36in section 260C.007, subdivision 27, and siblings of the child if the siblings are not placed
292.1together in foster care, and whether visitation is consistent with the best interest of the
292.2child, during the period the child is in foster care;
292.3    (6) when a child cannot return to or be in the care of either parent, documentation of
292.4steps to finalize the permanency plan for the child, including:
292.5    (i) reasonable efforts to place the child for adoption or legal guardianship of the child
292.6if the court has issued an order terminating the rights of both parents of the child or of the
292.7only known, living parent of the child. At a minimum, the documentation must include
292.8consideration of whether adoption is in the best interests of the child, child-specific
292.9recruitment efforts such as relative search and the use of state, regional, and national
292.10adoption exchanges to facilitate orderly and timely placements in and outside of the state.
292.11A copy of this documentation shall be provided to the court in the review required under
292.12section 260C.317, subdivision 3, paragraph (b); and
292.13    (ii) documentation necessary to support the requirements of the kinship placement
292.14agreement under section 256N.22 when adoption is determined not to be in the child's
292.15best interest;
292.16    (7) efforts to ensure the child's educational stability while in foster care, including:
292.17(i) efforts to ensure that the child remains in the same school in which the child was
292.18enrolled prior to placement or upon the child's move from one placement to another,
292.19including efforts to work with the local education authorities to ensure the child's
292.20educational stability; or
292.21(ii) if it is not in the child's best interest to remain in the same school that the child
292.22was enrolled in prior to placement or move from one placement to another, efforts to
292.23ensure immediate and appropriate enrollment for the child in a new school;
292.24(8) the educational records of the child including the most recent information
292.25available regarding:
292.26    (i) the names and addresses of the child's educational providers;
292.27    (ii) the child's grade level performance;
292.28    (iii) the child's school record;
292.29    (iv) a statement about how the child's placement in foster care takes into account
292.30proximity to the school in which the child is enrolled at the time of placement; and
292.31(v) any other relevant educational information;
292.32    (9) the efforts by the local agency to ensure the oversight and continuity of health
292.33care services for the foster child, including:
292.34(i) the plan to schedule the child's initial health screens;
293.1(ii) how the child's known medical problems and identified needs from the screens,
293.2including any known communicable diseases, as defined in section 144.4172, subdivision
293.32, will be monitored and treated while the child is in foster care;
293.4(iii) how the child's medical information will be updated and shared, including
293.5the child's immunizations;
293.6(iv) who is responsible to coordinate and respond to the child's health care needs,
293.7including the role of the parent, the agency, and the foster parent;
293.8(v) who is responsible for oversight of the child's prescription medications;
293.9(vi) how physicians or other appropriate medical and nonmedical professionals
293.10will be consulted and involved in assessing the health and well-being of the child and
293.11determine the appropriate medical treatment for the child; and
293.12(vii) the responsibility to ensure that the child has access to medical care through
293.13either medical insurance or medical assistance;
293.14(10) the health records of the child including information available regarding:
293.15(i) the names and addresses of the child's health care and dental care providers;
293.16(ii) a record of the child's immunizations;
293.17(iii) the child's known medical problems, including any known communicable
293.18diseases as defined in section 144.4172, subdivision 2;
293.19(iv) the child's medications; and
293.20(v) any other relevant health care information such as the child's eligibility for
293.21medical insurance or medical assistance;
293.22(11) an independent living plan for a child age 16 or older. The plan should include,
293.23but not be limited to, the following objectives:
293.24    (i) educational, vocational, or employment planning;
293.25    (ii) health care planning and medical coverage;
293.26    (iii) transportation including, where appropriate, assisting the child in obtaining a
293.27driver's license;
293.28    (iv) money management, including the responsibility of the agency to ensure that
293.29the youth annually receives, at no cost to the youth, a consumer report as defined under
293.30section 13C.001 and assistance in interpreting and resolving any inaccuracies in the report;
293.31    (v) planning for housing;
293.32    (vi) social and recreational skills; and
293.33    (vii) establishing and maintaining connections with the child's family and
293.34community; and
294.1    (12) for a child in voluntary foster care for treatment under chapter 260D, diagnostic
294.2and assessment information, specific services relating to meeting the mental health care
294.3needs of the child, and treatment outcomes.
294.4    (d) The parent or parents or guardian and the child each shall have the right to legal
294.5counsel in the preparation of the case plan and shall be informed of the right at the time
294.6of placement of the child. The child shall also have the right to a guardian ad litem.
294.7If unable to employ counsel from their own resources, the court shall appoint counsel
294.8upon the request of the parent or parents or the child or the child's legal guardian. The
294.9parent or parents may also receive assistance from any person or social services agency
294.10in preparation of the case plan.
294.11    After the plan has been agreed upon by the parties involved or approved or ordered
294.12by the court, the foster parents shall be fully informed of the provisions of the case plan
294.13and shall be provided a copy of the plan.
294.14    Upon discharge from foster care, the parent, adoptive parent, or permanent legal and
294.15physical custodian, as appropriate, and the child, if appropriate, must be provided with
294.16a current copy of the child's health and education record.

294.17    Sec. 23. Minnesota Statutes 2012, section 260C.515, subdivision 4, is amended to read:
294.18    Subd. 4. Custody to relative. The court may order permanent legal and physical
294.19custody to a fit and willing relative in the best interests of the child according to the
294.20following conditions requirements:
294.21(1) an order for transfer of permanent legal and physical custody to a relative shall
294.22only be made after the court has reviewed the suitability of the prospective legal and
294.23physical custodian;
294.24(2) in transferring permanent legal and physical custody to a relative, the juvenile
294.25court shall follow the standards applicable under this chapter and chapter 260, and the
294.26procedures in the Minnesota Rules of Juvenile Protection Procedure;
294.27(3) a transfer of legal and physical custody includes responsibility for the protection,
294.28education, care, and control of the child and decision making on behalf of the child;
294.29(4) a permanent legal and physical custodian may not return a child to the permanent
294.30care of a parent from whom the court removed custody without the court's approval and
294.31without notice to the responsible social services agency;
294.32(5) the social services agency may file a petition naming a fit and willing relative as
294.33a proposed permanent legal and physical custodian. A petition for transfer of permanent
294.34legal and physical custody to a relative who is not a parent shall be accompanied by a
295.1kinship placement agreement under section 256N.22, subdivision 2, between the agency
295.2and proposed permanent legal and physical custodian;
295.3(6) another party to the permanency proceeding regarding the child may file a
295.4petition to transfer permanent legal and physical custody to a relative, but the. The petition
295.5must include facts upon which the court can make the determination required under clause
295.6(7) and must be filed not later than the date for the required admit-deny hearing under
295.7section 260C.507; or if the agency's petition is filed under section 260C.503, subdivision
295.82 , the petition must be filed not later than 30 days prior to the trial required under section
295.9260C.509 ; and
295.10(7) where a petition is for transfer of permanent legal and physical custody to a
295.11relative who is not a parent, the court must find that:
295.12(i) transfer of permanent legal and physical custody and receipt of Northstar kinship
295.13assistance under chapter 256N, when requested and the child is eligible, is in the child's
295.14best interests;
295.15(ii) adoption is not in the child's best interests based on the determinations in the
295.16kinship placement agreement required under section 256N.22, subdivision 2;
295.17(iii) the agency made efforts to discuss adoption with the child's parent or parents,
295.18or the agency did not make efforts to discuss adoption and the reasons why efforts were
295.19not made; and
295.20(iv) there are reasons to separate siblings during placement, if applicable;
295.21(8) the court may defer finalization of an order transferring permanent legal and
295.22physical custody to a relative when deferring finalization is necessary to determine
295.23eligibility for Northstar kinship assistance under chapter 256N;
295.24(9) the court may finalize a permanent transfer of physical and legal custody to a
295.25relative regardless of eligibility for Northstar kinship assistance under chapter 256N; and
295.26(7) (10) the juvenile court may maintain jurisdiction over the responsible social
295.27services agency, the parents or guardian of the child, the child, and the permanent legal
295.28and physical custodian for purposes of ensuring appropriate services are delivered to the
295.29child and permanent legal custodian for the purpose of ensuring conditions ordered by the
295.30court related to the care and custody of the child are met.

295.31    Sec. 24. Minnesota Statutes 2012, section 260C.611, is amended to read:
295.32260C.611 ADOPTION STUDY REQUIRED.
295.33(a) An adoption study under section 259.41 approving placement of the child in the
295.34home of the prospective adoptive parent shall be completed before placing any child under
295.35the guardianship of the commissioner in a home for adoption. If a prospective adoptive
296.1parent has a current child foster care license under chapter 245A and is seeking to adopt
296.2a foster child who is placed in the prospective adoptive parent's home and is under the
296.3guardianship of the commissioner according to section 260C.325, subdivision 1, the child
296.4foster care home study meets the requirements of this section for an approved adoption
296.5home study if:
296.6(1) the written home study on which the foster care license was based is completed
296.7in the commissioner's designated format, consistent with the requirements in sections
296.8260C.215, subdivision 4, clause (5); and 259.41, subdivision 2; and Minnesota Rules,
296.9part 2960.3060, subpart 4;
296.10(2) the background studies on each prospective adoptive parent and all required
296.11household members were completed according to section 245C.33;
296.12(3) the commissioner has not issued, within the last three years, a sanction on the
296.13license under section 245A.07 or an order of a conditional license under section 245A.06;
296.14and
296.15(4) the legally responsible agency determines that the individual needs of the child
296.16are being met by the prospective adoptive parent through an assessment under section
296.17256N.24, subdivision 2, or a documented placement decision consistent with section
296.18260C.212, subdivision 2.
296.19(b) If a prospective adoptive parent has previously held a foster care license or
296.20adoptive home study, any update necessary to the foster care license, or updated or new
296.21adoptive home study, if not completed by the licensing authority responsible for the
296.22previous license or home study, shall include collateral information from the previous
296.23licensing or approving agency, if available.

296.24    Sec. 25. Laws 2013, chapter 108, article 3, section 48, is amended to read:
296.25    Sec. 48. REPEALER.
296.26(a) Minnesota Statutes 2012, section 256J.24, subdivision 6, is repealed January
296.27 July 1, 2015 2014.
296.28(b) Minnesota Statutes 2012, section 609.093, is repealed effective the day following
296.29final enactment.
296.30EFFECTIVE DATE.This section is effective July 1, 2014.

296.31    Sec. 26. PARENT AWARE QUALITY RATING AND IMPROVEMENT
296.32SYSTEM ACCESSIBILITY REPORT.
296.33    Subdivision 1. Recommendations. The commissioner of human services, in
296.34consultation with representatives from the child care and early childhood advocacy
297.1community, child care provider organizations, child care providers, organizations
297.2administering Parent Aware, the Departments of Education and Health, counties,
297.3and parents, shall make recommendations to the legislature on increasing statewide
297.4accessibility for child care providers to the Parent Aware quality rating and improvement
297.5system and for increasing access to Parent Aware-rated programs for families with
297.6children. The recommendations must address the following factors impacting accessibility:
297.7(1) availability of rated and nonrated programs by child care provider type, within
297.8rural and underserved areas, and for different cultural and non-English-speaking groups;
297.9(2) time and resources necessary for child care providers to participate in Parent
297.10Aware at various rating levels, including cultural and linguistic considerations;
297.11(3) federal child care development fund regulations; and
297.12(4) other factors as determined by the commissioner.
297.13    Subd. 2. Report. By February 15, 2015, the commissioner of human services
297.14shall report to the legislative committees with jurisdiction over the child care
297.15assistance programs and the Parent Aware quality rating and improvement system with
297.16recommendations to increase access for families and child care providers to Parent Aware,
297.17including benchmarks for achieving the maximum participation in Parent Aware-rated
297.18child care programs by families receiving child care assistance.
297.19The recommendations may also include, but are not limited to, potential
297.20modifications to Minnesota Statutes, sections 119B.09, subdivision 5; and 119B.125,
297.21subdivision 1, if necessary, which may include a delayed effective date, different phase-in
297.22process, or repealer.
297.23EFFECTIVE DATE.This section is effective the day following final enactment.

297.24    Sec. 27. DIRECTION TO COMMISSIONER.
297.25The commissioner of human services shall implement the repeal of the MFIP
297.26family cap July 1, 2014. The commissioner shall make every effort to complete systems
297.27modifications by that date. If systems modifications cannot be completed in time, the
297.28commissioner shall implement a manual procedure to implement the change.

297.29    Sec. 28. REVISOR'S INSTRUCTION.
297.30The revisor of statutes shall change the term "guardianship assistance" to "Northstar
297.31kinship assistance" wherever it appears in Minnesota Statutes and Minnesota Rules to
297.32refer to the program components related to Northstar Care for Children under Minnesota
297.33Statutes, chapter 256N.

298.1    Sec. 29. REPEALER.
298.2Minnesota Statutes 2013 Supplement, section 256N.26, subdivision 7, is repealed.


298.5    Section 1. Minnesota Statutes 2012, section 245C.03, is amended by adding a
298.6subdivision to read:
298.7    Subd. 8. Community first services and supports organizations. The
298.8commissioner shall conduct background studies on any individual required under section
298.9256B.85 to have a background study completed under this chapter.

298.10    Sec. 2. Minnesota Statutes 2012, section 245C.04, is amended by adding a subdivision
298.11to read:
298.12    Subd. 7. Community first services and supports organizations. (a) The
298.13commissioner shall conduct a background study of an individual required to be studied
298.14under section 245C.03, subdivision 8, at least upon application for initial enrollment
298.15under section 256B.85.
298.16(b) Before an individual described in section 245C.03, subdivision 8, begins a
298.17position allowing direct contact with a person served by an organization required to initiate
298.18a background study under section 256B.85, the organization must receive a notice from
298.19the commissioner that the support worker is:
298.20(1) not disqualified under section 245C.14; or
298.21(2) disqualified, but the individual has received a set-aside of the disqualification
298.22under section 245C.22.

298.23    Sec. 3. Minnesota Statutes 2012, section 245C.10, is amended by adding a subdivision
298.24to read:
298.25    Subd. 10. Community first services and supports organizations. The
298.26commissioner shall recover the cost of background studies initiated by an agency-provider
298.27delivering services under section 256B.85, subdivision 11, or a financial management
298.28services contractor providing service functions under section 256B.85, subdivision 13,
298.29through a fee of no more than $20 per study, charged to the organization responsible for
298.30submitting the background study form. The fees collected under this subdivision are
298.31appropriated to the commissioner for the purpose of conducting background studies.

299.1    Sec. 4. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 2, is
299.2amended to read:
299.3    Subd. 2. Definitions. (a) For the purposes of this section, the terms defined in
299.4this subdivision have the meanings given.
299.5(b) "Activities of daily living" or "ADLs" means eating, toileting, grooming,
299.6dressing, bathing, mobility, positioning, and transferring.
299.7(c) "Agency-provider model" means a method of CFSS under which a qualified
299.8agency provides services and supports through the agency's own employees and policies.
299.9The agency must allow the participant to have a significant role in the selection and
299.10dismissal of support workers of their choice for the delivery of their specific services
299.11and supports.
299.12(d) "Behavior" means a description of a need for services and supports used to
299.13determine the home care rating and additional service units. The presence of Level I
299.14behavior is used to determine the home care rating. "Level I behavior" means physical
299.15aggression towards self or others or destruction of property that requires the immediate
299.16response of another person. If qualified for a home care rating as described in subdivision
299.178, additional service units can be added as described in subdivision 8, paragraph (f), for
299.18the following behaviors:
299.19(1) Level I behavior;
299.20(2) increased vulnerability due to cognitive deficits or socially inappropriate
299.21behavior; or
299.22(3) increased need for assistance for recipients participants who are verbally
299.23aggressive or resistive to care so that time needed to perform activities of daily living is
299.24increased.
299.25(e) "Budget model" means a service delivery method of CFSS that allows the
299.26use of a service budget and assistance from a vendor fiscal/employer agent financial
299.27management services (FMS) contractor for a participant to directly employ support
299.28workers and purchase supports and goods.
299.29(e) (f) "Complex health-related needs" means an intervention listed in clauses (1)
299.30to (8) that has been ordered by a physician, and is specified in a community support
299.31plan, including:
299.32(1) tube feedings requiring:
299.33(i) a gastrojejunostomy tube; or
299.34(ii) continuous tube feeding lasting longer than 12 hours per day;
299.35(2) wounds described as:
299.36(i) stage III or stage IV;
300.1(ii) multiple wounds;
300.2(iii) requiring sterile or clean dressing changes or a wound vac; or
300.3(iv) open lesions such as burns, fistulas, tube sites, or ostomy sites that require
300.4specialized care;
300.5(3) parenteral therapy described as:
300.6(i) IV therapy more than two times per week lasting longer than four hours for
300.7each treatment; or
300.8(ii) total parenteral nutrition (TPN) daily;
300.9(4) respiratory interventions, including:
300.10(i) oxygen required more than eight hours per day;
300.11(ii) respiratory vest more than one time per day;
300.12(iii) bronchial drainage treatments more than two times per day;
300.13(iv) sterile or clean suctioning more than six times per day;
300.14(v) dependence on another to apply respiratory ventilation augmentation devices
300.15such as BiPAP and CPAP; and
300.16(vi) ventilator dependence under section 256B.0652;
300.17(5) insertion and maintenance of catheter, including:
300.18(i) sterile catheter changes more than one time per month;
300.19(ii) clean intermittent catheterization, and including self-catheterization more than
300.20six times per day; or
300.21(iii) bladder irrigations;
300.22(6) bowel program more than two times per week requiring more than 30 minutes to
300.23perform each time;
300.24(7) neurological intervention, including:
300.25(i) seizures more than two times per week and requiring significant physical
300.26assistance to maintain safety; or
300.27(ii) swallowing disorders diagnosed by a physician and requiring specialized
300.28assistance from another on a daily basis; and
300.29(8) other congenital or acquired diseases creating a need for significantly increased
300.30direct hands-on assistance and interventions in six to eight activities of daily living.
300.31(f) (g) "Community first services and supports" or "CFSS" means the assistance and
300.32supports program under this section needed for accomplishing activities of daily living,
300.33instrumental activities of daily living, and health-related tasks through hands-on assistance
300.34to accomplish the task or constant supervision and cueing to accomplish the task, or the
300.35purchase of goods as defined in subdivision 7, paragraph (a), clause (3), that replace
300.36the need for human assistance.
301.1(g) (h) "Community first services and supports service delivery plan" or "service
301.2delivery plan" means a written summary of document detailing the services and supports
301.3chosen by the participant to meet assessed needs that is are within the approved CFSS
301.4service authorization amount. Services and supports are based on the community support
301.5plan identified in section 256B.0911 and coordinated services and support plan and budget
301.6identified in section 256B.0915, subdivision 6, if applicable, that is determined by the
301.7participant to meet the assessed needs, using a person-centered planning process.
301.8(i) "Consultation services" means a Minnesota health care program enrolled provider
301.9organization that is under contract with the department and has the knowledge, skills,
301.10and ability to assist CFSS participants in using either the agency-provider model under
301.11subdivision 11 or the budget model under subdivision 13.
301.12(h) (j) "Critical activities of daily living" means transferring, mobility, eating, and
301.13toileting.
301.14(i) (k) "Dependency" in activities of daily living means a person requires hands-on
301.15assistance or constant supervision and cueing to accomplish one or more of the activities
301.16of daily living every day or on the days during the week that the activity is performed;
301.17however, a child may not be found to be dependent in an activity of daily living if,
301.18because of the child's age, an adult would either perform the activity for the child or assist
301.19the child with the activity and the assistance needed is the assistance appropriate for
301.20a typical child of the same age.
301.21(j) (l) "Extended CFSS" means CFSS services and supports under the
301.22agency-provider model included in a service plan through one of the home and
301.23community-based services waivers and as approved and authorized under sections
301.24256B.0915 ; 256B.092, subdivision 5; and 256B.49, which exceed the amount, duration,
301.25and frequency of the state plan CFSS services for participants.
301.26(k) (m) "Financial management services contractor or vendor" or "FMS contractor"
301.27 means a qualified organization having necessary to use the budget model under subdivision
301.2813 that has a written contract with the department to provide vendor fiscal/employer agent
301.29financial management services necessary to use the budget model under subdivision 13
301.30that (FMS). Services include but are not limited to: participant education and technical
301.31assistance; CFSS service delivery planning and budgeting; filing and payment of federal
301.32and state payroll taxes on behalf of the participant; initiating criminal background
301.33checks; billing, making payments, and for approved CFSS services with authorized
301.34funds; monitoring of spending expenditures; accounting for and disbursing CFSS funds;
301.35providing assistance in obtaining and filing for liability, workers' compensation, and
301.36unemployment coverage; and assisting participant instruction and technical assistance to
302.1 the participant in fulfilling employer-related requirements in accordance with Section
302.23504 of the Internal Revenue Code and the Internal Revenue Service Revenue Procedure
302.370-6 related regulations and interpretations, including Code of Federal Regulations, title
302.426, section 31.3504-1.
302.5(l) "Budget model" means a service delivery method of CFSS that allows the use of
302.6an individualized CFSS service delivery plan and service budget and provides assistance
302.7from the financial management services contractor to facilitate participant employment of
302.8support workers and the acquisition of supports and goods.
302.9(m) (n) "Health-related procedures and tasks" means procedures and tasks related
302.10to the specific needs of an individual that can be delegated taught or assigned by a
302.11state-licensed healthcare or mental health professional and performed by a support worker.
302.12(n) (o) "Instrumental activities of daily living" means activities related to
302.13living independently in the community, including but not limited to: meal planning,
302.14preparation, and cooking; shopping for food, clothing, or other essential items; laundry;
302.15housecleaning; assistance with medications; managing finances; communicating needs
302.16and preferences during activities; arranging supports; and assistance with traveling around
302.17and participating in the community.
302.18(o) (p) "Legal representative" means parent of a minor, a court-appointed guardian,
302.19or another representative with legal authority to make decisions about services and
302.20supports for the participant. Other representatives with legal authority to make decisions
302.21include but are not limited to a health care agent or an attorney-in-fact authorized through
302.22a health care directive or power of attorney.
302.23(p) (q) "Medication assistance" means providing verbal or visual reminders to take
302.24regularly scheduled medication, and includes any of the following supports listed in clauses
302.25(1) to (3) and other types of assistance, except that a support worker may not determine
302.26medication dose or time for medication or inject medications into veins, muscles, or skin:
302.27(1) under the direction of the participant or the participant's representative, bringing
302.28medications to the participant including medications given through a nebulizer, opening a
302.29container of previously set-up medications, emptying the container into the participant's
302.30hand, opening and giving the medication in the original container to the participant, or
302.31bringing to the participant liquids or food to accompany the medication;
302.32(2) organizing medications as directed by the participant or the participant's
302.33representative; and
302.34(3) providing verbal or visual reminders to perform regularly scheduled medications.
302.35(q) (r) "Participant's representative" means a parent, family member, advocate,
302.36or other adult authorized by the participant to serve as a representative in connection
303.1with the provision of CFSS. This authorization must be in writing or by another method
303.2that clearly indicates the participant's free choice. The participant's representative must
303.3have no financial interest in the provision of any services included in the participant's
303.4service delivery plan and must be capable of providing the support necessary to assist
303.5the participant in the use of CFSS. If through the assessment process described in
303.6subdivision 5 a participant is determined to be in need of a participant's representative, one
303.7must be selected. If the participant is unable to assist in the selection of a participant's
303.8representative, the legal representative shall appoint one. Two persons may be designated
303.9as a participant's representative for reasons such as divided households and court-ordered
303.10custodies. Duties of a participant's representatives may include:
303.11(1) being available while care is services are provided in a method agreed upon by
303.12the participant or the participant's legal representative and documented in the participant's
303.13CFSS service delivery plan;
303.14(2) monitoring CFSS services to ensure the participant's CFSS service delivery
303.15plan is being followed; and
303.16(3) reviewing and signing CFSS time sheets after services are provided to provide
303.17verification of the CFSS services.
303.18(r) (s) "Person-centered planning process" means a process that is directed by the
303.19participant to plan for services and supports. The person-centered planning process must:
303.20(1) include people chosen by the participant;
303.21(2) provide necessary information and support to ensure that the participant directs
303.22the process to the maximum extent possible, and is enabled to make informed choices
303.23and decisions;
303.24(3) be timely and occur at time and locations of convenience to the participant;
303.25(4) reflect cultural considerations of the participant;
303.26(5) include strategies for solving conflict or disagreement within the process,
303.27including clear conflict-of-interest guidelines for all planning;
303.28(6) provide the participant choices of the services and supports they receive and the
303.29staff providing those services and supports;
303.30(7) include a method for the participant to request updates to the plan; and
303.31(8) record the alternative home and community-based settings that were considered
303.32by the participant.
303.33(s) (t) "Shared services" means the provision of CFSS services by the same CFSS
303.34support worker to two or three participants who voluntarily enter into an agreement to
303.35receive services at the same time and in the same setting by the same provider employer.
304.1(t) "Support specialist" means a professional with the skills and ability to assist the
304.2participant using either the agency-provider model under subdivision 11 or the flexible
304.3spending model under subdivision 13, in services including but not limited to assistance
304.4regarding:
304.5(1) the development, implementation, and evaluation of the CFSS service delivery
304.6plan under subdivision 6;
304.7(2) recruitment, training, or supervision, including supervision of health-related tasks
304.8or behavioral supports appropriately delegated or assigned by a health care professional,
304.9and evaluation of support workers; and
304.10(3) facilitating the use of informal and community supports, goods, or resources.
304.11(u) "Support worker" means an a qualified and trained employee of the agency
304.12provider agency-provider or of the participant employer under the budget model who
304.13has direct contact with the participant and provides services as specified within the
304.14participant's service delivery plan.
304.15(v) "Wages and benefits" means the hourly wages and salaries, the employer's
304.16share of FICA taxes, Medicare taxes, state and federal unemployment taxes, workers'
304.17compensation, mileage reimbursement, health and dental insurance, life insurance,
304.18disability insurance, long-term care insurance, uniform allowance, contributions to
304.19employee retirement accounts, or other forms of employee compensation and benefits.
304.20(w) "Worker training and development" means services for developing workers'
304.21skills as required by the participant's individual CFSS delivery plan that are arranged for
304.22or provided by the agency-provider or purchased by the participant employer. These
304.23services include training, education, direct observation and supervision, and evaluation
304.24and coaching of job skills and tasks, including supervision of health-related tasks or
304.25behavioral supports.

304.26    Sec. 5. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 3, is
304.27amended to read:
304.28    Subd. 3. Eligibility. (a) CFSS is available to a person who meets one of the
304.29following:
304.30(1) is a recipient an enrollee of medical assistance as determined under section
304.31256B.055 , 256B.056, or 256B.057, subdivisions 5 and 9;
304.32(2) is a recipient of participant in the alternative care program under section
304.33256B.0913 ;
304.34(3) is a waiver recipient participant as defined under section 256B.0915, 256B.092,
304.35256B.093 , or 256B.49; or
305.1(4) has medical services identified in a participant's individualized education
305.2program and is eligible for services as determined in section 256B.0625, subdivision 26.
305.3(b) In addition to meeting the eligibility criteria in paragraph (a), a person must also
305.4meet all of the following:
305.5(1) require assistance and be determined dependent in one activity of daily living or
305.6Level I behavior based on assessment under section 256B.0911; and
305.7(2) is not a recipient of participant under a family support grant under section 252.32;.
305.8(3) lives in the person's own apartment or home including a family foster care setting
305.9licensed under chapter 245A, but not in corporate foster care under chapter 245A; or a
305.10noncertified boarding care home or a boarding and lodging establishment under chapter
305.11157.

305.12    Sec. 6. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 5, is
305.13amended to read:
305.14    Subd. 5. Assessment requirements. (a) The assessment of functional need must:
305.15(1) be conducted by a certified assessor according to the criteria established in
305.16section 256B.0911, subdivision 3a;
305.17(2) be conducted face-to-face, initially and at least annually thereafter, or when there
305.18is a significant change in the participant's condition or a change in the need for services
305.19and supports, or at the request of the participant when the participant experiences a change
305.20in condition or needs a change in services or supports; and
305.21(3) be completed using the format established by the commissioner.
305.22(b) A participant who is residing in a facility may be assessed and choose CFSS for
305.23the purpose of using CFSS to return to the community as described in subdivisions 3
305.24and 7, paragraph (a), clause (5).
305.25(c) (b) The results of the assessment and any recommendations and authorizations
305.26for CFSS must be determined and communicated in writing by the lead agency's certified
305.27assessor as defined in section 256B.0911 to the participant and the agency-provider or
305.28financial management services provider FMS contractor chosen by the participant within
305.2940 calendar days and must include the participant's right to appeal under section 256.045,
305.30subdivision 3 .
305.31(d) (c) The lead agency assessor may request authorize a temporary authorization
305.32for CFSS services to be provided under the agency-provider model. Authorization for
305.33a temporary level of CFSS services under the agency-provider model is limited to the
305.34time specified by the commissioner, but shall not exceed 45 days. The level of services
305.35authorized under this provision paragraph shall have no bearing on a future authorization.

306.1    Sec. 7. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 6, is
306.2amended to read:
306.3    Subd. 6. Community first services and support service delivery plan. (a) The
306.4CFSS service delivery plan must be developed, implemented, and evaluated through a
306.5person-centered planning process by the participant, or the participant's representative
306.6or legal representative who may be assisted by a support specialist consultation services
306.7provider. The CFSS service delivery plan must reflect the services and supports that
306.8are important to the participant and for the participant to meet the needs assessed
306.9by the certified assessor and identified in the community support plan under section
306.10256B.0911, subdivision 3 , or the coordinated services and support plan identified in
306.11section 256B.0915, subdivision 6, if applicable. The CFSS service delivery plan must be
306.12reviewed by the participant, the consultation services provider, and the agency-provider
306.13or financial management services FMS contractor prior to starting services and at least
306.14annually upon reassessment, or when there is a significant change in the participant's
306.15condition, or a change in the need for services and supports.
306.16(b) The commissioner shall establish the format and criteria for the CFSS service
306.17delivery plan.
306.18(c) The CFSS service delivery plan must be person-centered and:
306.19(1) specify the consultation services provider, agency-provider, or financial
306.20management services FMS contractor selected by the participant;
306.21(2) reflect the setting in which the participant resides that is chosen by the participant;
306.22(3) reflect the participant's strengths and preferences;
306.23(4) include the means to address the clinical and support needs as identified through
306.24an assessment of functional needs;
306.25(5) include individually identified goals and desired outcomes;
306.26(6) reflect the services and supports, paid and unpaid, that will assist the participant
306.27to achieve identified goals, including the costs of the services and supports, and the
306.28providers of those services and supports, including natural supports;
306.29(7) identify the amount and frequency of face-to-face supports and amount and
306.30frequency of remote supports and technology that will be used;
306.31(8) identify risk factors and measures in place to minimize them, including
306.32individualized backup plans;
306.33(9) be understandable to the participant and the individuals providing support;
306.34(10) identify the individual or entity responsible for monitoring the plan;
306.35(11) be finalized and agreed to in writing by the participant and signed by all
306.36individuals and providers responsible for its implementation;
307.1(12) be distributed to the participant and other people involved in the plan; and
307.2(13) prevent the provision of unnecessary or inappropriate care.;
307.3(14) include a detailed budget for expenditures for budget model participants or
307.4participants under the agency-provider model if purchasing goods; and
307.5(15) include a plan for worker training and development detailing what service
307.6components will be used, when the service components will be used, how they will be
307.7provided, and how these service components relate to the participant's individual needs
307.8and CFSS support worker services.
307.9(d) The total units of agency-provider services or the service budget allocation
307.10 amount for the budget model include both annual totals and a monthly average amount
307.11that cover the number of months of the service authorization. The amount used each
307.12month may vary, but additional funds must not be provided above the annual service
307.13authorization amount unless a change in condition is assessed and authorized by the
307.14certified assessor and documented in the community support plan, coordinated services
307.15and supports plan, and CFSS service delivery plan.
307.16(e) In assisting with the development or modification of the plan during the
307.17authorization time period, the consultation services provider shall:
307.18(1) consult with the FMS contractor on the spending budget when applicable; and
307.19(2) consult with the participant or participant's representative, agency-provider, and
307.20case manager/care coordinator.
307.21(f) The service plan must be approved by the consultation services provider for
307.22participants without a case manager/care coordinator. A case manager/care coordinator
307.23must approve the plan for a waiver or alternative care program participant.

307.24    Sec. 8. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 7, is
307.25amended to read:
307.26    Subd. 7. Community first services and supports; covered services. Within the
307.27service unit authorization or service budget allocation amount, services and supports
307.28covered under CFSS include:
307.29(1) assistance to accomplish activities of daily living (ADLs), instrumental activities
307.30of daily living (IADLs), and health-related procedures and tasks through hands-on
307.31assistance to accomplish the task or constant supervision and cueing to accomplish the task;
307.32(2) assistance to acquire, maintain, or enhance the skills necessary for the participant
307.33to accomplish activities of daily living, instrumental activities of daily living, or
307.34health-related tasks;
308.1(3) expenditures for items, services, supports, environmental modifications, or
308.2goods, including assistive technology. These expenditures must:
308.3(i) relate to a need identified in a participant's CFSS service delivery plan;
308.4(ii) increase independence or substitute for human assistance to the extent that
308.5expenditures would otherwise be made for human assistance for the participant's assessed
308.6needs;
308.7(4) observation and redirection for behavior or symptoms where there is a need for
308.8assistance. An assessment of behaviors must meet the criteria in this clause. A recipient
308.9 participant qualifies as having a need for assistance due to behaviors if the recipient's
308.10 participant's behavior requires assistance at least four times per week and shows one or
308.11more of the following behaviors:
308.12(i) physical aggression towards self or others, or destruction of property that requires
308.13the immediate response of another person;
308.14(ii) increased vulnerability due to cognitive deficits or socially inappropriate
308.15behavior; or
308.16(iii) increased need for assistance for recipients participants who are verbally
308.17aggressive or resistive to care so that time needed to perform activities of daily living is
308.18increased;
308.19(5) back-up systems or mechanisms, such as the use of pagers or other electronic
308.20devices, to ensure continuity of the participant's services and supports;
308.21(6) transition costs, including:
308.22(i) deposits for rent and utilities;
308.23(ii) first month's rent and utilities;
308.24(iii) bedding;
308.25(iv) basic kitchen supplies;
308.26(v) other necessities, to the extent that these necessities are not otherwise covered
308.27under any other funding that the participant is eligible to receive; and
308.28(vi) other required necessities for an individual to make the transition from a nursing
308.29facility, institution for mental diseases, or intermediate care facility for persons with
308.30developmental disabilities to a community-based home setting where the participant
308.31resides; and
308.32(7) (6) services provided by a support specialist consultation services provider under
308.33contract with the department and enrolled as a Minnesota health care program provider as
308.34 defined under subdivision 2 that are chosen by the participant. 17;
308.35(7) services provided by an FMS contractor under contract with the department
308.36as defined under subdivision 13;
309.1(8) CFSS services provided by a qualified support worker who is a parent, stepparent,
309.2or legal guardian of a participant under age 18, or who is the participant's spouse. These
309.3support workers shall not provide any medical assistance home and community-based
309.4services in excess of 40 hours per seven-day period regardless of the number of parents,
309.5combination of parents and spouses, or number of children who receive medical assistance
309.6services; and
309.7(9) worker training and development services as defined in subdivision 2, paragraph
309.8(w), and described in subdivision 18a.

309.9    Sec. 9. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 8, is
309.10amended to read:
309.11    Subd. 8. Determination of CFSS service methodology. (a) All community first
309.12services and supports must be authorized by the commissioner or the commissioner's
309.13designee before services begin, except for the assessments established in section
309.14256B.0911 . The authorization for CFSS must be completed as soon as possible following
309.15an assessment but no later than 40 calendar days from the date of the assessment.
309.16(b) The amount of CFSS authorized must be based on the recipient's participant's
309.17 home care rating described in paragraphs (d) and (e) and any additional service units for
309.18which the person participant qualifies as described in paragraph (f).
309.19(c) The home care rating shall be determined by the commissioner or the
309.20commissioner's designee based on information submitted to the commissioner identifying
309.21the following for a recipient participant:
309.22(1) the total number of dependencies of activities of daily living as defined in
309.23subdivision 2, paragraph (b);
309.24(2) the presence of complex health-related needs as defined in subdivision 2,
309.25paragraph (e); and
309.26(3) the presence of Level I behavior as defined in subdivision 2, paragraph (d),
309.27clause (1).
309.28(d) The methodology to determine the total service units for CFSS for each home
309.29care rating is based on the median paid units per day for each home care rating from
309.30fiscal year 2007 data for the PCA program.
309.31(e) Each home care rating is designated by the letters P through Z and EN and has
309.32the following base number of service units assigned:
309.33(1) P home care rating requires Level I behavior or one to three dependencies in
309.34ADLs and qualifies one for five service units;
310.1(2) Q home care rating requires Level I behavior and one to three dependencies in
310.2ADLs and qualifies one for six service units;
310.3(3) R home care rating requires a complex health-related need and one to three
310.4dependencies in ADLs and qualifies one for seven service units;
310.5(4) S home care rating requires four to six dependencies in ADLs and qualifies
310.6one for ten service units;
310.7(5) T home care rating requires four to six dependencies in ADLs and Level I
310.8behavior and qualifies one for 11 service units;
310.9(6) U home care rating requires four to six dependencies in ADLs and a complex
310.10health-related need and qualifies one for 14 service units;
310.11(7) V home care rating requires seven to eight dependencies in ADLs and qualifies
310.12one for 17 service units;
310.13(8) W home care rating requires seven to eight dependencies in ADLs and Level I
310.14behavior and qualifies one for 20 service units;
310.15(9) Z home care rating requires seven to eight dependencies in ADLs and a complex
310.16health-related need and qualifies one for 30 service units; and
310.17(10) EN home care rating includes ventilator dependency as defined in section
310.18256B.0651, subdivision 1 , paragraph (g). Recipients Participants who meet the definition
310.19of ventilator-dependent and the EN home care rating and utilize a combination of
310.20CFSS and other home care services are limited to a total of 96 service units per day for
310.21those services in combination. Additional units may be authorized when a recipient's
310.22 participant's assessment indicates a need for two staff to perform activities. Additional
310.23time is limited to 16 service units per day.
310.24(f) Additional service units are provided through the assessment and identification of
310.25the following:
310.26(1) 30 additional minutes per day for a dependency in each critical activity of daily
310.27living as defined in subdivision 2, paragraph (h) (j);
310.28(2) 30 additional minutes per day for each complex health-related function as
310.29defined in subdivision 2, paragraph (e) (f); and
310.30(3) 30 additional minutes per day for each behavior issue as defined in subdivision 2,
310.31paragraph (d).
310.32(g) The service budget for budget model participants shall be based on:
310.33(1) assessed units as determined by the home care rating; and
310.34(2) an adjustment needed for administrative expenses.

311.1    Sec. 10. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 9, is
311.2amended to read:
311.3    Subd. 9. Noncovered services. (a) Services or supports that are not eligible for
311.4payment under this section include those that:
311.5(1) are not authorized by the certified assessor or included in the written service
311.6delivery plan;
311.7(2) are provided prior to the authorization of services and the approval of the written
311.8CFSS service delivery plan;
311.9(3) are duplicative of other paid services in the written service delivery plan;
311.10(4) supplant natural unpaid supports that appropriately meet a need in the service
311.11plan, are provided voluntarily to the participant, and are selected by the participant in lieu
311.12of other services and supports;
311.13(5) are not effective means to meet the participant's needs; and
311.14(6) are available through other funding sources, including, but not limited to, funding
311.15through title IV-E of the Social Security Act.
311.16(b) Additional services, goods, or supports that are not covered include:
311.17(1) those that are not for the direct benefit of the participant, except that services for
311.18caregivers such as training to improve the ability to provide CFSS are considered to directly
311.19benefit the participant if chosen by the participant and approved in the support plan;
311.20(2) any fees incurred by the participant, such as Minnesota health care programs fees
311.21and co-pays, legal fees, or costs related to advocate agencies;
311.22(3) insurance, except for insurance costs related to employee coverage;
311.23(4) room and board costs for the participant with the exception of allowable
311.24transition costs in subdivision 7, clause (6);
311.25(5) services, supports, or goods that are not related to the assessed needs;
311.26(6) special education and related services provided under the Individuals with
311.27Disabilities Education Act and vocational rehabilitation services provided under the
311.28Rehabilitation Act of 1973;
311.29(7) assistive technology devices and assistive technology services other than those
311.30for back-up systems or mechanisms to ensure continuity of service and supports listed in
311.31subdivision 7;
311.32(8) medical supplies and equipment covered under medical assistance;
311.33(9) environmental modifications, except as specified in subdivision 7;
311.34(10) expenses for travel, lodging, or meals related to training the participant, or the
311.35participant's representative, or legal representative, or paid or unpaid caregivers that
311.36exceed $500 in a 12-month period;
312.1(11) experimental treatments;
312.2(12) any service or good covered by other medical assistance state plan services,
312.3including prescription and over-the-counter medications, compounds, and solutions and
312.4related fees, including premiums and co-payments;
312.5(13) membership dues or costs, except when the service is necessary and appropriate
312.6to treat a physical health condition or to improve or maintain the participant's physical
312.7 health condition. The condition must be identified in the participant's CFSS plan and
312.8monitored by a physician enrolled in a Minnesota health care program enrolled physician;
312.9(14) vacation expenses other than the cost of direct services;
312.10(15) vehicle maintenance or modifications not related to the disability, health
312.11condition, or physical need; and
312.12(16) tickets and related costs to attend sporting or other recreational or entertainment
312.13events.;
312.14(17) services provided and billed by a provider who is not an enrolled CFSS provider;
312.15(18) CFSS provided by a participant's representative or paid legal guardian;
312.16(19) services that are used solely as a child care or babysitting service;
312.17(20) services that are the responsibility or in the daily rate of a residential or program
312.18license holder under the terms of a service agreement and administrative rules;
312.19(21) sterile procedures;
312.20(22) giving of injections into veins, muscles, or skin;
312.21(23) homemaker services that are not an integral part of the assessed CFSS service;
312.22(24) home maintenance or chore services;
312.23(25) home care services, including hospice services if elected by the participant,
312.24covered by Medicare or any other insurance held by the participant;
312.25(26) services to other members of the participant's household;
312.26(27) services not specified as covered under medical assistance as CFSS;
312.27(28) application of restraints or implementation of deprivation procedures;
312.28(29) assessments by CFSS provider organizations or by independently enrolled
312.29registered nurses;
312.30(30) services provided in lieu of legally required staffing in a residential or child
312.31care setting; and
312.32(31) services provided by the residential or program license holder in a residence for
312.33more than four persons.

312.34    Sec. 11. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 10,
312.35is amended to read:
313.1    Subd. 10. Provider Agency-provider and FMS contractor qualifications and,
313.2 general requirements, and duties. (a) Agency-providers delivering services under the
313.3agency-provider model under subdivision 11 or financial management service (FMS)
313.4 FMS contractors under subdivision 13 shall:
313.5(1) enroll as a medical assistance Minnesota health care programs provider and meet
313.6all applicable provider standards and requirements;
313.7(2) comply with medical assistance provider enrollment requirements;
313.8(3) (2) demonstrate compliance with law federal and state laws and policies of for
313.9 CFSS as determined by the commissioner;
313.10(4) (3) comply with background study requirements under chapter 245C and
313.11maintain documentation of background study requests and results;
313.12(5) (4) verify and maintain records of all services and expenditures by the participant,
313.13including hours worked by support workers and support specialists;
313.14(6) (5) not engage in any agency-initiated direct contact or marketing in person, by
313.15telephone, or other electronic means to potential participants, guardians, family members,
313.16or participants' representatives;
313.17(6) directly provide services and not use a subcontractor or reporting agent;
313.18(7) meet the financial requirements established by the commissioner for financial
313.19solvency;
313.20(8) have never had a lead agency contract or provider agreement discontinued due to
313.21fraud, or have never had an owner, board member, or manager fail a state or FBI-based
313.22criminal background check while enrolled or seeking enrollment as a Minnesota health
313.23care programs provider;
313.24(9) have established business practices that include written policies and procedures,
313.25internal controls, and a system that demonstrates the organization's ability to deliver
313.26quality CFSS; and
313.27(10) have an office located in Minnesota.
313.28(b) In conducting general duties, agency-providers and FMS contractors shall:
313.29(7) (1) pay support workers and support specialists based upon actual hours of
313.30services provided;
313.31(2) pay for worker training and development services based upon actual hours of
313.32services provided or the unit cost of the training session purchased;
313.33(8) (3) withhold and pay all applicable federal and state payroll taxes;
313.34(9) (4) make arrangements and pay unemployment insurance, taxes, workers'
313.35compensation, liability insurance, and other benefits, if any;
314.1(10) (5) enter into a written agreement with the participant, participant's
314.2representative, or legal representative that assigns roles and responsibilities to be
314.3performed before services, supports, or goods are provided using a format established by
314.4the commissioner;
314.5(11) (6) report maltreatment as required under sections 626.556 and 626.557; and
314.6(12) (7) provide the participant with a copy of the service-related rights under
314.7subdivision 20 at the start of services and supports.; and
314.8(8) comply with any data requests from the department consistent with the
314.9Minnesota Government Data Practices Act under chapter 13.

314.10    Sec. 12. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 11,
314.11is amended to read:
314.12    Subd. 11. Agency-provider model. (a) The agency-provider model is limited to
314.13the includes services provided by support workers and support specialists staff providing
314.14worker training and development services who are employed by an agency-provider
314.15that is licensed according to chapter 245A or meets other criteria established by the
314.16commissioner, including required training.
314.17(b) The agency-provider shall allow the participant to have a significant role in the
314.18selection and dismissal of the support workers for the delivery of the services and supports
314.19specified in the participant's service delivery plan.
314.20(c) A participant may use authorized units of CFSS services as needed within a
314.21service authorization that is not greater than 12 months. Using authorized units in a
314.22flexible manner in either the agency-provider model or the budget model does not increase
314.23the total amount of services and supports authorized for a participant or included in the
314.24participant's service delivery plan.
314.25(d) A participant may share CFSS services. Two or three CFSS participants may
314.26share services at the same time provided by the same support worker.
314.27(e) The agency-provider must use a minimum of 72.5 percent of the revenue
314.28generated by the medical assistance payment for CFSS for support worker wages and
314.29benefits. The agency-provider must document how this requirement is being met. The
314.30revenue generated by the support specialist worker training and development services
314.31 and the reasonable costs associated with the support specialist worker training and
314.32development services must not be used in making this calculation.
314.33(f) The agency-provider model must be used by individuals who have been restricted
314.34by the Minnesota restricted recipient program under Minnesota Rules, parts 9505.2160
314.35to 9505.2245.
315.1(g) Participants purchasing goods under this model, along with support worker
315.2services, must:
315.3(1) specify the goods in the service delivery plan and detailed budget for
315.4expenditures that must be approved by the consultation services provider or the case
315.5manager/care coordinator; and
315.6(2) use the FMS contractor for the billing and payment of such goods.

315.7    Sec. 13. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 12,
315.8is amended to read:
315.9    Subd. 12. Requirements for enrollment of CFSS provider agency-provider
315.10 agencies. (a) All CFSS provider agencies agency-providers must provide, at the time of
315.11enrollment, reenrollment, and revalidation as a CFSS provider agency agency-provider in
315.12a format determined by the commissioner, information and documentation that includes,
315.13but is not limited to, the following:
315.14(1) the CFSS provider agency's agency-provider's current contact information
315.15including address, telephone number, and e-mail address;
315.16(2) proof of surety bond coverage. Upon new enrollment, or if the provider agency's
315.17 agency-provider's Medicaid revenue in the previous calendar year is less than or equal
315.18to $300,000, the provider agency agency-provider must purchase a performance bond of
315.19$50,000. If the provider agency's agency-provider's Medicaid revenue in the previous
315.20calendar year is greater than $300,000, the provider agency agency-provider must
315.21purchase a performance bond of $100,000. The performance bond must be in a form
315.22approved by the commissioner, must be renewed annually, and must allow for recovery of
315.23costs and fees in pursuing a claim on the bond;
315.24(3) proof of fidelity bond coverage in the amount of $20,000;
315.25(4) proof of workers' compensation insurance coverage;
315.26(5) proof of liability insurance;
315.27(6) a description of the CFSS provider agency's agency-provider's organization
315.28identifying the names of all owners, managing employees, staff, board of directors, and
315.29the affiliations of the directors, and owners, or staff to other service providers;
315.30(7) a copy of the CFSS provider agency's agency-provider's written policies and
315.31procedures including: hiring of employees; training requirements; service delivery;
315.32and employee and consumer safety including process for notification and resolution
315.33of consumer grievances, identification and prevention of communicable diseases, and
315.34employee misconduct;
316.1(8) copies of all other forms the CFSS provider agency agency-provider uses in the
316.2course of daily business including, but not limited to:
316.3(i) a copy of the CFSS provider agency's agency-provider's time sheet if the time
316.4sheet varies from the standard time sheet for CFSS services approved by the commissioner,
316.5and a letter requesting approval of the CFSS provider agency's agency-provider's
316.6 nonstandard time sheet; and
316.7(ii) the a copy of the participant's individual CFSS provider agency's template for the
316.8CFSS care service delivery plan;
316.9(9) a list of all training and classes that the CFSS provider agency agency-provider
316.10 requires of its staff providing CFSS services;
316.11(10) documentation that the CFSS provider agency agency-provider and staff have
316.12successfully completed all the training required by this section;
316.13(11) documentation of the agency's agency-provider's marketing practices;
316.14(12) disclosure of ownership, leasing, or management of all residential properties
316.15that are used or could be used for providing home care services;
316.16(13) documentation that the agency agency-provider will use at least the following
316.17percentages of revenue generated from the medical assistance rate paid for CFSS services
316.18for employee personal care assistant CFSS support worker wages and benefits: 72.5
316.19percent of revenue from CFSS providers. The revenue generated by the support specialist
316.20 worker training and development services and the reasonable costs associated with the
316.21support specialist worker training and development services shall not be used in making
316.22this calculation; and
316.23(14) documentation that the agency agency-provider does not burden recipients'
316.24 participants' free exercise of their right to choose service providers by requiring personal
316.25care assistants CFSS support workers to sign an agreement not to work with any particular
316.26CFSS recipient participant or for another CFSS provider agency agency-provider after
316.27leaving the agency and that the agency is not taking action on any such agreements or
316.28requirements regardless of the date signed.
316.29(b) CFSS provider agencies agency-providers shall provide to the commissioner
316.30the information specified in paragraph (a).
316.31(c) All CFSS provider agencies agency-providers shall require all employees in
316.32management and supervisory positions and owners of the agency who are active in the
316.33day-to-day management and operations of the agency to complete mandatory training as
316.34determined by the commissioner. Employees in management and supervisory positions
316.35and owners who are active in the day-to-day operations of an agency who have completed
316.36the required training as an employee with a CFSS provider agency agency-provider do
317.1not need to repeat the required training if they are hired by another agency, if they have
317.2completed the training within the past three years. CFSS provider agency agency-provider
317.3 billing staff shall complete training about CFSS program financial management. Any new
317.4owners or employees in management and supervisory positions involved in the day-to-day
317.5operations are required to complete mandatory training as a requisite of working for the
317.6agency. CFSS provider agencies certified for participation in Medicare as home health
317.7agencies are exempt from the training required in this subdivision.
317.8(d) The commissioner shall send annual review notifications to agency-providers 30
317.9days prior to renewal. The notification must:
317.10(1) list the materials and information the agency-provider is required to submit;
317.11(2) provide instructions on submitting information to the commissioner; and
317.12(3) provide a due date by which the commissioner must receive the requested
317.13information.
317.14Agency-providers shall submit the required documentation for annual review within
317.1530 days of notification from the commissioner. If no documentation is submitted, the
317.16agency-provider enrollment number must be terminated or suspended.

317.17    Sec. 14. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 13,
317.18is amended to read:
317.19    Subd. 13. Budget model. (a) Under the budget model participants can may exercise
317.20more responsibility and control over the services and supports described and budgeted
317.21within the CFSS service delivery plan. Participants must use services provided by an FMS
317.22contractor as defined in subdivision 2, paragraph (m). Under this model, participants may
317.23use their approved service budget allocation to:
317.24(1) directly employ support workers, and pay wages, federal and state payroll taxes,
317.25and premiums for workers' compensation, liability, and health insurance coverage; and
317.26(2) obtain supports and goods as defined in subdivision 7; and.
317.27(3) choose a range of support assistance services from the financial management
317.28services (FMS) contractor related to:
317.29(i) assistance in managing the budget to meet the service delivery plan needs,
317.30consistent with federal and state laws and regulations;
317.31(ii) the employment, training, supervision, and evaluation of workers by the
317.32participant;
317.33(iii) acquisition and payment for supports and goods; and
317.34(iv) evaluation of individual service outcomes as needed for the scope of the
317.35participant's degree of control and responsibility.
318.1(b) Participants who are unable to fulfill any of the functions listed in paragraph (a)
318.2may authorize a legal representative or participant's representative to do so on their behalf.
318.3(c) The commissioner shall disenroll or exclude participants from the budget model
318.4and transfer them to the agency-provider model under the following circumstances that
318.5include but are not limited to:
318.6(1) when a participant has been restricted by the Minnesota restricted recipient
318.7program, in which case the participant may be excluded for a specified time period under
318.8Minnesota Rules, parts 9505.2160 to 9505.2245;
318.9(2) when a participant exits the budget model during the participant's service plan
318.10year. Upon transfer, the participant shall not access the budget model for the remainder of
318.11that service plan year; or
318.12(3) when the department determines that the participant or participant's representative
318.13or legal representative cannot manage participant responsibilities under the budget model.
318.14The commissioner must develop policies for determining if a participant is unable to
318.15manage responsibilities under the budget model.
318.16(d) A participant may appeal in writing to the department under section 256.045,
318.17subdivision 3, to contest the department's decision under paragraph (c), clause (3), to
318.18disenroll or exclude the participant from the budget model.
318.19(c) (e) The FMS contractor shall not provide CFSS services and supports under the
318.20agency-provider service model.
318.21(f) The FMS contractor shall provide service functions as determined by the
318.22commissioner for budget model participants that include but are not limited to:
318.23(1) information and consultation about CFSS;
318.24(2) (1) assistance with the development of the detailed budget for expenditures
318.25portion of the service delivery plan and budget model as requested by the consultation
318.26services provider or participant;
318.27(3) (2) billing and making payments for budget model expenditures;
318.28(4) (3) assisting participants in fulfilling employer-related requirements according to
318.29Internal Revenue Service Revenue Procedure 70-6, section 3504, Agency Employer Tax
318.30Liability, regulation 137036-08 section 3504 of the Internal Revenue Code and related
318.31regulations and interpretations, including Code of Federal Regulations, title 26, section
318.3231.3504-1, which includes assistance with filing and paying payroll taxes, and obtaining
318.33worker compensation coverage;
318.34(5) (4) data recording and reporting of participant spending; and
318.35(6) (5) other duties established in the contract with the department, including with
318.36respect to providing assistance to the participant, participant's representative, or legal
319.1representative in performing their employer responsibilities regarding support workers.
319.2The support worker shall not be considered the employee of the financial management
319.3services FMS contractor.; and
319.4(6) billing, payment, and accounting of approved expenditures for goods for
319.5agency-provider participants.
319.6(d) A participant who requests to purchase goods and supports along with support
319.7worker services under the agency-provider model must use the budget model with
319.8a service delivery plan that specifies the amount of services to be authorized to the
319.9agency-provider and the expenditures to be paid by the FMS contractor.
319.10(e) (g) The FMS contractor shall:
319.11(1) not limit or restrict the participant's choice of service or support providers or
319.12service delivery models consistent with any applicable state and federal requirements;
319.13(2) provide the participant, consultation services provider, and the targeted case
319.14manager, if applicable, with a monthly written summary of the spending for services and
319.15supports that were billed against the spending budget;
319.16(3) be knowledgeable of state and federal employment regulations, including those
319.17under the Fair Labor Standards Act of 1938, and comply with the requirements under the
319.18Internal Revenue Service Revenue Procedure 70-6, Section 3504, section 3504 of the
319.19Internal Revenue Code and related regulations and interpretations, including Code of
319.20Federal Regulations, title 26, section 31.3504-1, regarding agency employer tax liability
319.21for vendor or fiscal employer agent, and any requirements necessary to process employer
319.22and employee deductions, provide appropriate and timely submission of employer tax
319.23liabilities, and maintain documentation to support medical assistance claims;
319.24(4) have current and adequate liability insurance and bonding and sufficient cash
319.25flow as determined by the commissioner and have on staff or under contract a certified
319.26public accountant or an individual with a baccalaureate degree in accounting;
319.27(5) assume fiscal accountability for state funds designated for the program and be
319.28held liable for any overpayments or violations of applicable statutes or rules, including
319.29but not limited to the Minnesota False Claims Act; and
319.30(6) maintain documentation of receipts, invoices, and bills to track all services and
319.31supports expenditures for any goods purchased and maintain time records of support
319.32workers. The documentation and time records must be maintained for a minimum of
319.33five years from the claim date and be available for audit or review upon request by the
319.34commissioner. Claims submitted by the FMS contractor to the commissioner for payment
319.35must correspond with services, amounts, and time periods as authorized in the participant's
320.1spending service budget and service plan and must contain specific identifying information
320.2as determined by the commissioner.
320.3(f) (h) The commissioner of human services shall:
320.4(1) establish rates and payment methodology for the FMS contractor;
320.5(2) identify a process to ensure quality and performance standards for the FMS
320.6contractor and ensure statewide access to FMS contractors; and
320.7(3) establish a uniform protocol for delivering and administering CFSS services
320.8to be used by eligible FMS contractors.
320.9(g) The commissioner of human services shall disenroll or exclude participants from
320.10the budget model and transfer them to the agency-provider model under the following
320.11circumstances that include but are not limited to:
320.12(1) when a participant has been restricted by the Minnesota restricted recipient
320.13program, the participant may be excluded for a specified time period under Minnesota
320.14Rules, parts 9505.2160 to 9505.2245;
320.15(2) when a participant exits the budget model during the participant's service plan
320.16year. Upon transfer, the participant shall not access the budget model for the remainder of
320.17that service plan year; or
320.18(3) when the department determines that the participant or participant's representative
320.19or legal representative cannot manage participant responsibilities under the budget model.
320.20The commissioner must develop policies for determining if a participant is unable to
320.21manage responsibilities under a budget model.
320.22(h) A participant may appeal under section 256.045, subdivision 3, in writing to the
320.23department to contest the department's decision under paragraph (c), clause (3), to remove
320.24or exclude the participant from the budget model.

320.25    Sec. 15. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 15,
320.26is amended to read:
320.27    Subd. 15. Documentation of support services provided. (a) Support services
320.28provided to a participant by a support worker employed by either an agency-provider
320.29or the participant acting as the employer must be documented daily by each support
320.30worker, on a time sheet form approved by the commissioner. All documentation may be
320.31Web-based, electronic, or paper documentation. The completed form must be submitted
320.32on a monthly regular basis to the provider or the participant and the FMS contractor
320.33selected by the participant to provide assistance with meeting the participant's employer
320.34obligations and kept in the recipient's health participant's record.
321.1(b) The activity documentation must correspond to the written service delivery plan
321.2and be reviewed by the agency-provider or the participant and the FMS contractor when
321.3the participant is acting as the employer of the support worker.
321.4(c) The time sheet must be on a form approved by the commissioner documenting
321.5time the support worker provides services in the home to the participant. The following
321.6criteria must be included in the time sheet:
321.7(1) full name of the support worker and individual provider number;
321.8(2) provider agency-provider name and telephone numbers, if an agency-provider is
321.9 responsible for delivery services under the written service plan;
321.10(3) full name of the participant;
321.11(4) consecutive dates, including month, day, and year, and arrival and departure
321.12times with a.m. or p.m. notations;
321.13(5) signatures of the participant or the participant's representative;
321.14(6) personal signature of the support worker;
321.15(7) any shared care provided, if applicable;
321.16(8) a statement that it is a federal crime to provide false information on CFSS
321.17billings for medical assistance payments; and
321.18(9) dates and location of recipient participant stays in a hospital, care facility, or
321.19incarceration.

321.20    Sec. 16. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 16,
321.21is amended to read:
321.22    Subd. 16. Support workers requirements. (a) Support workers shall:
321.23(1) enroll with the department as a support worker after a background study under
321.24chapter 245C has been completed and the support worker has received a notice from the
321.25commissioner that:
321.26(i) the support worker is not disqualified under section 245C.14; or
321.27(ii) is disqualified, but the support worker has received a set-aside of the
321.28disqualification under section 245C.22;
321.29(2) have the ability to effectively communicate with the participant or the
321.30participant's representative;
321.31(3) have the skills and ability to provide the services and supports according to
321.32the person's participant's CFSS service delivery plan and respond appropriately to the
321.33participant's needs;
321.34(4) not be a participant of CFSS, unless the support services provided by the support
321.35worker differ from those provided to the support worker;
322.1(5) complete the basic standardized training as determined by the commissioner
322.2before completing enrollment. The training must be available in languages other than
322.3English and to those who need accommodations due to disabilities. Support worker
322.4training must include successful completion of the following training components: basic
322.5first aid, vulnerable adult, child maltreatment, OSHA universal precautions, basic roles
322.6and responsibilities of support workers including information about basic body mechanics,
322.7emergency preparedness, orientation to positive behavioral practices, orientation to
322.8responding to a mental health crisis, fraud issues, time cards and documentation, and an
322.9overview of person-centered planning and self-direction. Upon completion of the training
322.10components, the support worker must pass the certification test to provide assistance
322.11to participants;
322.12(6) complete training and orientation on the participant's individual needs; and
322.13(7) maintain the privacy and confidentiality of the participant, and not independently
322.14determine the medication dose or time for medications for the participant.
322.15(b) The commissioner may deny or terminate a support worker's provider enrollment
322.16and provider number if the support worker:
322.17(1) lacks the skills, knowledge, or ability to adequately or safely perform the
322.18required work;
322.19(2) fails to provide the authorized services required by the participant employer;
322.20(3) has been intoxicated by alcohol or drugs while providing authorized services to
322.21the participant or while in the participant's home;
322.22(4) has manufactured or distributed drugs while providing authorized services to the
322.23participant or while in the participant's home; or
322.24(5) has been excluded as a provider by the commissioner of human services, or the
322.25United States Department of Health and Human Services, Office of Inspector General,
322.26from participation in Medicaid, Medicare, or any other federal health care program.
322.27(c) A support worker may appeal in writing to the commissioner to contest the
322.28decision to terminate the support worker's provider enrollment and provider number.
322.29(d) A support worker must not provide or be paid for more than 275 hours of
322.30CFSS per month, regardless of the number of participants the support worker serves or
322.31the number of agency-providers or participant employers by which the support worker
322.32is employed. The department shall not disallow the number of hours per day a support
322.33worker works unless it violates other law.

322.34    Sec. 17. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
322.35a subdivision to read:
323.1    Subd. 16a. Exception to support worker requirements for continuity of services.
323.2The support worker for a participant may be allowed to enroll with a different CFSS
323.3agency-provider or FMS contractor upon initiation, rather than completion, of a new
323.4background study according to chapter 245C, if the following conditions are met:
323.5(1) the commissioner determines that the support worker's change in enrollment or
323.6affiliation is needed to ensure continuity of services and protect the health and safety
323.7of the participant;
323.8(2) the chosen agency-provider or FMS contractor has been continuously enrolled as
323.9a CFSS agency-provider or FMS contractor for at least two years or since the inception of
323.10the CFSS program, whichever is shorter;
323.11(3) the participant served by the support worker chooses to transfer to the CFSS
323.12agency-provider or the FMS contractor to which the support worker is transferring;
323.13(4) the support worker has been continuously enrolled with the former CFSS
323.14agency-provider or FMS contractor since the support worker's last background study
323.15was completed; and
323.16(5) the support worker continues to meet requirements of subdivision 16, excluding
323.17paragraph (a), clause (1).

323.18    Sec. 18. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 17,
323.19is amended to read:
323.20    Subd. 17. Support specialist requirements and payments Consultation services
323.21description and duties. The commissioner shall develop qualifications, scope of
323.22functions, and payment rates and service limits for a support specialist that may provide
323.23additional or specialized assistance necessary to plan, implement, arrange, augment, or
323.24evaluate services and supports.
323.25(a) Consultation services means providing assistance to the participant in making
323.26informed choices regarding CFSS services in general and self-directed tasks in particular
323.27and in developing a person-centered service delivery plan to achieve quality service
323.28outcomes.
323.29(b) Consultation services is a required service that may include but is not limited to:
323.30(1) an initial and annual orientation to CFSS information and policies, including
323.31selecting a service model;
323.32(2) assistance with the development, implementation, management, and evaluation
323.33of the person-centered service delivery plan;
323.34(3) consultation on recruiting, selecting, training, managing, directing, evaluating,
323.35and supervising support workers;
324.1(4) reviewing the use of and access to informal and community supports, goods, or
324.2resources;
324.3(5) assistance with fulfilling responsibilities and requirements of CFSS including
324.4modifying service delivery plans and changing service models; and
324.5(6) assistance with accessing FMS contractors or agency-providers.
324.6(c) Duties of a consultation services provider shall include but are not limited to:
324.7(1) review and finalization of the CFSS service delivery plan by the consultation
324.8services provider organization;
324.9(2) distribution of copies of the final service delivery plan to the participant and
324.10to the agency-provider or FMS contractor, case manager/care coordinator, and other
324.11designated parties;
324.12(3) an evaluation of services upon receiving information from an FMS contractor
324.13indicating spending or participant employer concerns;
324.14(4) a semiannual review of services if the participant does not have a case
324.15manager/care coordinator and when the support worker is a paid parent of a minor
324.16participant or the participant's spouse;
324.17(5) collection and reporting of data as required by the department; and
324.18(6) providing the participant with a copy of the service-related rights under
324.19subdivision 20 at the start of consultation services.

324.20    Sec. 19. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
324.21a subdivision to read:
324.22    Subd. 17a. Consultation service provider qualifications and requirements.
324.23The commissioner shall develop the qualifications and requirements for providers of
324.24consultation services under subdivision 17. These providers must satisfy at least the
324.25following qualifications and requirements:
324.26(1) are under contract with the department;
324.27(2) are not the FMS contractor as defined in subdivision 2, paragraph (m), the CFSS
324.28or HCBS waiver agency-provider or vendor to the participant, or a lead agency;
324.29(3) meet the service standards as established by the commissioner;
324.30(4) employ lead professional staff with a minimum of three years of experience
324.31in providing support planning, support broker, or consultation services and consumer
324.32education to participants using a self-directed program using FMS under medical
324.33assistance;
324.34(5) are knowledgeable about CFSS roles and responsibilities including those of the
324.35certified assessor, FMS contractor, agency-provider, and case manager/care coordinator;
325.1(6) comply with medical assistance provider requirements;
325.2(7) understand the CFSS program and its policies;
325.3(8) are knowledgeable about self-directed principles and the application of the
325.4person-centered planning process;
325.5(9) have general knowledge of the FMS contractor duties and participant
325.6employment model, including all applicable federal, state, and local laws and regulations
325.7regarding tax, labor, employment, and liability and workers' compensation coverage for
325.8household workers; and
325.9(10) have all employees, including lead professional staff, staff in management
325.10and supervisory positions, and owners of the agency who are active in the day-to-day
325.11management and operations of the agency, complete training as specified in the contract
325.12with the department.

325.13    Sec. 20. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 18,
325.14is amended to read:
325.15    Subd. 18. Service unit and budget allocation requirements and limits. (a) For the
325.16agency-provider model, services will be authorized in units of service. The total service
325.17unit amount must be established based upon the assessed need for CFSS services, and must
325.18not exceed the maximum number of units available as determined under subdivision 8.
325.19(b) For the budget model, the service budget allocation allowed for services and
325.20supports is established by multiplying the number of units authorized under subdivision 8
325.21by the payment rate established by the commissioner defined in subdivision 8, paragraph
325.22(g).

325.23    Sec. 21. Minnesota Statutes 2013 Supplement, section 256B.85, is amended by adding
325.24a subdivision to read:
325.25    Subd. 18a. Worker training and development services. (a) The commissioner
325.26shall develop the scope of tasks and functions, service standards, and service limits for
325.27worker training and development services.
325.28(b) Worker training and development services are in addition to the participant's
325.29assessed service units or service budget. Services provided according to this subdivision
325.30must:
325.31(1) help support workers obtain and expand the skills and knowledge necessary to
325.32ensure competency in providing quality services as needed and defined in the participant's
325.33service delivery plan;
326.1(2) be provided or arranged for by the agency-provider under subdivision 11 or
326.2purchased by the participant employer under the budget model under subdivision 13; and
326.3(3) be described in the participant's CFSS service delivery plan and documented in
326.4the participant's file.
326.5(c) Services covered under worker training and development shall include:
326.6(1) support worker training on the participant's individual assessed needs, condition,
326.7or both, provided individually or in a group setting by a skilled and knowledgeable trainer
326.8beyond any training the participant or participant's representative provides;
326.9(2) tuition for professional classes and workshops for the participant's support
326.10workers that relate to the participant's assessed needs, condition, or both;
326.11(3) direct observation, monitoring, coaching, and documentation of support worker
326.12job skills and tasks, beyond any training the participant or participant's representative
326.13provides, including supervision of health-related tasks or behavioral supports that is
326.14conducted by an appropriate professional based on the participant's assessed needs. These
326.15services must be provided within 14 days of the start of services or the start of a new
326.16support worker and must be specified in the participant's service delivery plan; and
326.17(4) reporting service and support concerns to the appropriate provider.
326.18(d) Worker training and development services shall not include:
326.19(1) general agency training, worker orientation, or training on CFSS self-directed
326.20models;
326.21(2) payment for preparation or development time for the trainer or presenter;
326.22(3) payment of the support worker's salary or compensation during the training;
326.23(4) training or supervision provided by the participant, the participant's support
326.24worker, or the participant's informal supports, including the participant's representative; or
326.25(5) services in excess of 96 units per annual service authorization, unless approved
326.26by the department.

326.27    Sec. 22. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 23,
326.28is amended to read:
326.29    Subd. 23. Commissioner's access. When the commissioner is investigating a
326.30possible overpayment of Medicaid funds, the commissioner must be given immediate
326.31access without prior notice to the agency provider agency-provider or FMS contractor's
326.32office during regular business hours and to documentation and records related to services
326.33provided and submission of claims for services provided. Denying the commissioner
326.34access to records is cause for immediate suspension of payment and terminating the agency
326.35provider's enrollment according to section 256B.064 or terminating the FMS contract.

327.1    Sec. 23. Minnesota Statutes 2013 Supplement, section 256B.85, subdivision 24,
327.2is amended to read:
327.3    Subd. 24. CFSS agency-providers; background studies. CFSS agency-providers
327.4enrolled to provide personal care assistance CFSS services under the medical assistance
327.5program shall comply with the following:
327.6(1) owners who have a five percent interest or more and all managing employees
327.7are subject to a background study as provided in chapter 245C. This applies to currently
327.8enrolled CFSS agency-providers and those agencies seeking enrollment as a CFSS
327.9agency-provider. "Managing employee" has the same meaning as Code of Federal
327.10Regulations, title 42, section 455. An organization is barred from enrollment if:
327.11(i) the organization has not initiated background studies on owners managing
327.12employees; or
327.13(ii) the organization has initiated background studies on owners and managing
327.14employees, but the commissioner has sent the organization a notice that an owner or
327.15managing employee of the organization has been disqualified under section 245C.14, and
327.16the owner or managing employee has not received a set-aside of the disqualification
327.17under section 245C.22;
327.18(2) a background study must be initiated and completed for all support specialists
327.19 staff who will have direct contact with the participant to provide worker training and
327.20development; and
327.21(3) a background study must be initiated and completed for all support workers.

327.22    Sec. 24. Laws 2013, chapter 108, article 7, section 49, the effective date, is amended to
327.23read:
327.24EFFECTIVE DATE.This section is effective upon federal approval but no earlier
327.25than April 1, 2014. The service will begin 90 days after federal approval or April 1,
327.262014, whichever is later. The commissioner of human services shall notify the revisor of
327.27statutes when this occurs.


327.30    Section 1. Minnesota Statutes 2012, section 13.46, subdivision 4, is amended to read:
327.31    Subd. 4. Licensing data. (a) As used in this subdivision:
327.32    (1) "licensing data" are all data collected, maintained, used, or disseminated by the
327.33welfare system pertaining to persons licensed or registered or who apply for licensure
328.1or registration or who formerly were licensed or registered under the authority of the
328.2commissioner of human services;
328.3    (2) "client" means a person who is receiving services from a licensee or from an
328.4applicant for licensure; and
328.5    (3) "personal and personal financial data" are Social Security numbers, identity
328.6of and letters of reference, insurance information, reports from the Bureau of Criminal
328.7Apprehension, health examination reports, and social/home studies.
328.8    (b)(1)(i) Except as provided in paragraph (c), the following data on applicants,
328.9license holders, and former licensees are public: name, address, telephone number of
328.10licensees, date of receipt of a completed application, dates of licensure, licensed capacity,
328.11type of client preferred, variances granted, record of training and education in child care
328.12and child development, type of dwelling, name and relationship of other family members,
328.13previous license history, class of license, the existence and status of complaints, and the
328.14number of serious injuries to or deaths of individuals in the licensed program as reported
328.15to the commissioner of human services, the local social services agency, or any other
328.16county welfare agency. For purposes of this clause, a serious injury is one that is treated
328.17by a physician.
328.18(ii) When a correction order, an order to forfeit a fine, an order of license suspension,
328.19an order of temporary immediate suspension, an order of license revocation, an order
328.20of license denial, or an order of conditional license has been issued, or a complaint is
328.21resolved, the following data on current and former licensees and applicants are public: the
328.22substance and investigative findings of the licensing or maltreatment complaint, licensing
328.23violation, or substantiated maltreatment; the record of informal resolution of a licensing
328.24violation; orders of hearing; findings of fact; conclusions of law; specifications of the final
328.25correction order, fine, suspension, temporary immediate suspension, revocation, denial, or
328.26conditional license contained in the record of licensing action; whether a fine has been
328.27paid; and the status of any appeal of these actions.
328.28(iii) When a license denial under section 245A.05 or a sanction under section
328.29245A.07 is based on a determination that the license holder or applicant is responsible for
328.30maltreatment under section 626.556 or 626.557, the identity of the applicant or license
328.31holder as the individual responsible for maltreatment is public data at the time of the
328.32issuance of the license denial or sanction.
328.33(iv) When a license denial under section 245A.05 or a sanction under section
328.34245A.07 is based on a determination that the license holder or applicant is disqualified
328.35under chapter 245C, the identity of the license holder or applicant as the disqualified
328.36individual and the reason for the disqualification are public data at the time of the
329.1issuance of the licensing sanction or denial. If the applicant or license holder requests
329.2reconsideration of the disqualification and the disqualification is affirmed, the reason for
329.3the disqualification and the reason to not set aside the disqualification are public data.
329.4    (2) Notwithstanding sections 626.556, subdivision 11, and 626.557, subdivision 12b,
329.5when any person subject to disqualification under section 245C.14 in connection with a
329.6license to provide family day care for children, child care center services, foster care for
329.7children in the provider's home, or foster care or day care services for adults in the provider's
329.8home is a substantiated perpetrator of maltreatment, and the substantiated maltreatment is
329.9a reason for a licensing action, the identity of the substantiated perpetrator of maltreatment
329.10is public data. For purposes of this clause, a person is a substantiated perpetrator if the
329.11maltreatment determination has been upheld under section 256.045; 626.556, subdivision
329.1210i ; 626.557, subdivision 9d; or chapter 14, or if an individual or facility has not timely
329.13exercised appeal rights under these sections, except as provided under clause (1).
329.14    (3) For applicants who withdraw their application prior to licensure or denial of a
329.15license, the following data are public: the name of the applicant, the city and county in
329.16which the applicant was seeking licensure, the dates of the commissioner's receipt of the
329.17initial application and completed application, the type of license sought, and the date
329.18of withdrawal of the application.
329.19    (4) For applicants who are denied a license, the following data are public: the name
329.20and address of the applicant, the city and county in which the applicant was seeking
329.21licensure, the dates of the commissioner's receipt of the initial application and completed
329.22application, the type of license sought, the date of denial of the application, the nature of
329.23the basis for the denial, the record of informal resolution of a denial, orders of hearings,
329.24findings of fact, conclusions of law, specifications of the final order of denial, and the
329.25status of any appeal of the denial.
329.26    (5) The following data on persons subject to disqualification under section 245C.14 in
329.27connection with a license to provide family day care for children, child care center services,
329.28foster care for children in the provider's home, or foster care or day care services for adults
329.29in the provider's home, are public: the nature of any disqualification set aside under section
329.30245C.22 , subdivisions 2 and 4, and the reasons for setting aside the disqualification; the
329.31nature of any disqualification for which a variance was granted under sections 245A.04,
329.32subdivision 9 ; and 245C.30, and the reasons for granting any variance under section
329.33245A.04, subdivision 9 ; and, if applicable, the disclosure that any person subject to
329.34a background study under section 245C.03, subdivision 1, has successfully passed a
329.35background study. If a licensing sanction under section 245A.07, or a license denial under
329.36section 245A.05, is based on a determination that an individual subject to disqualification
330.1under chapter 245C is disqualified, the disqualification as a basis for the licensing sanction
330.2or denial is public data. As specified in clause (1), item (iv), if the disqualified individual
330.3is the license holder or applicant, the identity of the license holder or applicant and the
330.4reason for the disqualification are public data; and, if the license holder or applicant
330.5requested reconsideration of the disqualification and the disqualification is affirmed, the
330.6reason for the disqualification and the reason to not set aside the disqualification are
330.7public data. If the disqualified individual is an individual other than the license holder or
330.8applicant, the identity of the disqualified individual shall remain private data.
330.9    (6) When maltreatment is substantiated under section 626.556 or 626.557 and the
330.10victim and the substantiated perpetrator are affiliated with a program licensed under
330.11chapter 245A, the commissioner of human services, local social services agency, or
330.12county welfare agency may inform the license holder where the maltreatment occurred of
330.13the identity of the substantiated perpetrator and the victim.
330.14    (7) Notwithstanding clause (1), for child foster care, only the name of the license
330.15holder and the status of the license are public if the county attorney has requested that data
330.16otherwise classified as public data under clause (1) be considered private data based on the
330.17best interests of a child in placement in a licensed program.
330.18    (c) The following are private data on individuals under section 13.02, subdivision
330.1912 , or nonpublic data under section 13.02, subdivision 9: personal and personal financial
330.20data on family day care program and family foster care program applicants and licensees
330.21and their family members who provide services under the license.
330.22    (d) The following are private data on individuals: the identity of persons who have
330.23made reports concerning licensees or applicants that appear in inactive investigative data,
330.24and the records of clients or employees of the licensee or applicant for licensure whose
330.25records are received by the licensing agency for purposes of review or in anticipation of a
330.26contested matter. The names of reporters of complaints or alleged violations of licensing
330.27standards under chapters 245A, 245B, 245C, and 245D, and applicable rules and alleged
330.28maltreatment under sections 626.556 and 626.557, are confidential data and may be
330.29disclosed only as provided in section 626.556, subdivision 11, or 626.557, subdivision 12b.
330.30    (e) Data classified as private, confidential, nonpublic, or protected nonpublic under
330.31this subdivision become public data if submitted to a court or administrative law judge as
330.32part of a disciplinary proceeding in which there is a public hearing concerning a license
330.33which has been suspended, immediately suspended, revoked, or denied.
330.34    (f) Data generated in the course of licensing investigations that relate to an alleged
330.35violation of law are investigative data under subdivision 3.
331.1    (g) Data that are not public data collected, maintained, used, or disseminated under
331.2this subdivision that relate to or are derived from a report as defined in section 626.556,
331.3subdivision 2 , or 626.5572, subdivision 18, are subject to the destruction provisions of
331.4sections 626.556, subdivision 11c, and 626.557, subdivision 12b.
331.5    (h) Upon request, not public data collected, maintained, used, or disseminated under
331.6this subdivision that relate to or are derived from a report of substantiated maltreatment as
331.7defined in section 626.556 or 626.557 may be exchanged with the Department of Health
331.8for purposes of completing background studies pursuant to section 144.057 and with
331.9the Department of Corrections for purposes of completing background studies pursuant
331.10to section 241.021.
331.11    (i) Data on individuals collected according to licensing activities under chapters
331.12245A and 245C, data on individuals collected by the commissioner of human services
331.13according to investigations under chapters 245A, 245B, and 245C, and 245D, and
331.14sections 626.556 and 626.557 may be shared with the Department of Human Rights, the
331.15Department of Health, the Department of Corrections, the ombudsman for mental health
331.16and developmental disabilities, and the individual's professional regulatory board when
331.17there is reason to believe that laws or standards under the jurisdiction of those agencies may
331.18have been violated or the information may otherwise be relevant to the board's regulatory
331.19jurisdiction. Background study data on an individual who is the subject of a background
331.20study under chapter 245C for a licensed service for which the commissioner of human
331.21services is the license holder may be shared with the commissioner and the commissioner's
331.22delegate by the licensing division. Unless otherwise specified in this chapter, the identity
331.23of a reporter of alleged maltreatment or licensing violations may not be disclosed.
331.24    (j) In addition to the notice of determinations required under section 626.556,
331.25subdivision 10f , if the commissioner or the local social services agency has determined
331.26that an individual is a substantiated perpetrator of maltreatment of a child based on sexual
331.27abuse, as defined in section 626.556, subdivision 2, and the commissioner or local social
331.28services agency knows that the individual is a person responsible for a child's care in
331.29another facility, the commissioner or local social services agency shall notify the head
331.30of that facility of this determination. The notification must include an explanation of the
331.31individual's available appeal rights and the status of any appeal. If a notice is given under
331.32this paragraph, the government entity making the notification shall provide a copy of the
331.33notice to the individual who is the subject of the notice.
331.34    (k) All not public data collected, maintained, used, or disseminated under this
331.35subdivision and subdivision 3 may be exchanged between the Department of Human
331.36Services, Licensing Division, and the Department of Corrections for purposes of
332.1regulating services for which the Department of Human Services and the Department
332.2of Corrections have regulatory authority.

332.3    Sec. 2. Minnesota Statutes 2012, section 144.0724, as amended by Laws 2014, chapter
332.4147, section 1, is amended to read:
332.5144.0724 RESIDENT REIMBURSEMENT CLASSIFICATION.
332.6    Subdivision 1. Resident reimbursement case mix classifications. The
332.7commissioner of health shall establish resident reimbursement classifications based upon
332.8the assessments of residents of nursing homes and boarding care homes conducted under
332.9this section and according to section 256B.438.
332.10    Subd. 2. Definitions. For purposes of this section, the following terms have the
332.11meanings given.
332.12(a) "Assessment reference date" or "ARD" means the specific end point for
332.13look-back periods in the MDS assessment process. This look-back period is also called
332.14the observation or assessment period.
332.15(b) "Case mix index" means the weighting factors assigned to the RUG-IV
332.16classifications.
332.17(c) "Index maximization" means classifying a resident who could be assigned to
332.18more than one category, to the category with the highest case mix index.
332.19(d) "Minimum data set" or "MDS" means a core set of screening, clinical assessment,
332.20and functional status elements, that include common definitions and coding categories
332.21specified by the Centers for Medicare and Medicaid Services and designated by the
332.22Minnesota Department of Health.
332.23(e) "Representative" means a person who is the resident's guardian or conservator,
332.24the person authorized to pay the nursing home expenses of the resident, a representative of
332.25the Office of Ombudsman for Long-Term Care whose assistance has been requested, or
332.26any other individual designated by the resident.
332.27(f) "Resource utilization groups" or "RUG" means the system for grouping a nursing
332.28facility's residents according to their clinical and functional status identified in data
332.29supplied by the facility's minimum data set.
332.30(g) "Activities of daily living" means grooming, dressing, bathing, transferring,
332.31mobility, positioning, eating, and toileting.
332.32(h) "Nursing facility level of care determination" means the assessment process
332.33that results in a determination of a resident's or prospective resident's need for nursing
332.34facility level of care as established in subdivision 11 for purposes of medical assistance
332.35payment of long-term care services for:
333.1(1) nursing facility services under section 256B.434 or 256B.441;
333.2(2) elderly waiver services under section 256B.0915;
333.3(3) CADI and BI waiver services under section 256B.49; and
333.4(4) state payment of alternative care services under section 256B.0913.
333.5    Subd. 3a. Resident reimbursement classifications beginning January 1, 2012.
333.6(a) Beginning January 1, 2012, resident reimbursement classifications shall be based
333.7on the minimum data set, version 3.0 assessment instrument, or its successor version
333.8mandated by the Centers for Medicare and Medicaid Services that nursing facilities are
333.9required to complete for all residents. The commissioner of health shall establish resident
333.10classifications according to the RUG-IV, 48 group, resource utilization groups. Resident
333.11classification must be established based on the individual items on the minimum data set,
333.12which must be completed according to the Long Term Care Facility Resident Assessment
333.13Instrument User's Manual Version 3.0 or its successor issued by the Centers for Medicare
333.14and Medicaid Services.
333.15(b) Each resident must be classified based on the information from the minimum
333.16data set according to general categories as defined in the Case Mix Classification Manual
333.17for Nursing Facilities issued by the Minnesota Department of Health.
333.18    Subd. 4. Resident assessment schedule. (a) A facility must conduct and
333.19electronically submit to the commissioner of health MDS assessments that conform with
333.20the assessment schedule defined by Code of Federal Regulations, title 42, section 483.20,
333.21and published by the United States Department of Health and Human Services, Centers for
333.22Medicare and Medicaid Services, in the Long Term Care Assessment Instrument User's
333.23Manual, version 3.0, and subsequent updates when issued by the Centers for Medicare
333.24and Medicaid Services. The commissioner of health may substitute successor manuals or
333.25question and answer documents published by the United States Department of Health and
333.26Human Services, Centers for Medicare and Medicaid Services, to replace or supplement
333.27the current version of the manual or document.
333.28(b) The assessments used to determine a case mix classification for reimbursement
333.29include the following:
333.30(1) a new admission assessment;
333.31(2) an annual assessment which must have an assessment reference date (ARD)
333.32within 92 days of the previous assessment and within 366 days of the ARD of the previous
333.33comprehensive assessment;
333.34(3) a significant change in status assessment must be completed within 14 days of
333.35the identification of a significant change;
334.1(4) all quarterly assessments must have an assessment reference date (ARD) within
334.292 days of the ARD of the previous assessment;
334.3(5) any significant correction to a prior comprehensive assessment, if the assessment
334.4being corrected is the current one being used for RUG classification; and
334.5(6) any significant correction to a prior quarterly assessment, if the assessment being
334.6corrected is the current one being used for RUG classification.
334.7(c) In addition to the assessments listed in paragraph (b), the assessments used to
334.8determine nursing facility level of care include the following:
334.9(1) preadmission screening completed under section 256B.0911, subdivision 4a,
334.10by a county, tribe, or managed care organization under contract with the Department
334.11of Human Services; and
334.12(2) a face-to-face long-term care consultation assessment completed under section
334.13256B.0911, subdivision 3a , 3b, or 4d, by a county, tribe, or managed care organization
334.14under contract with the Department of Human Services.
334.15    Subd. 5. Short stays. (a) A facility must submit to the commissioner of health an
334.16admission assessment for all residents who stay in the facility 14 days or less.
334.17(b) Notwithstanding the admission assessment requirements of paragraph (a), a
334.18facility may elect to accept a short stay rate with a case mix index of 1.0 for all facility
334.19residents who stay 14 days or less in lieu of submitting an admission assessment. Facilities
334.20shall make this election annually.
334.21(c) Nursing facilities must elect one of the options described in paragraphs (a) and
334.22(b) by reporting to the commissioner of health, as prescribed by the commissioner. The
334.23election is effective on July 1 each year.
334.24    Subd. 6. Penalties for late or nonsubmission. (a) A facility that fails to complete
334.25or submit an assessment according to subdivisions 4 and 5 for a RUG-IV classification
334.26within seven days of the time requirements listed in the Long-Term Care Facility Resident
334.27Assessment Instrument User's Manual is subject to a reduced rate for that resident. The
334.28reduced rate shall be the lowest rate for that facility. The reduced rate is effective on the
334.29day of admission for new admission assessments, on the ARD for significant change in
334.30status assessments, or on the day that the assessment was due for all other assessments and
334.31continues in effect until the first day of the month following the date of submission and
334.32acceptance of the resident's assessment.
334.33    (b) If loss of revenue due to penalties incurred by a facility for any period of 92 days
334.34are equal to or greater than 1.0 percent of the total operating costs on the facility's most
334.35recent annual statistical and cost report, a facility may apply to the commissioner of
334.36human services for a reduction in the total penalty amount. The commissioner of human
335.1services, in consultation with the commissioner of health, may, at the sole discretion of
335.2the commissioner of human services, limit the penalty for residents covered by medical
335.3assistance to 15 days.
335.4    Subd. 7. Notice of resident reimbursement classification. (a) The commissioner
335.5of health shall provide to a nursing facility a notice for each resident of the reimbursement
335.6classification established under subdivision 1. The notice must inform the resident of the
335.7classification that was assigned, the opportunity to review the documentation supporting
335.8the classification, the opportunity to obtain clarification from the commissioner, and the
335.9opportunity to request a reconsideration of the classification and the address and telephone
335.10number of the Office of Ombudsman for Long-Term Care. The commissioner must
335.11transmit the notice of resident classification by electronic means to the nursing facility.
335.12A nursing facility is responsible for the distribution of the notice to each resident, to the
335.13person responsible for the payment of the resident's nursing home expenses, or to another
335.14person designated by the resident. This notice must be distributed within three working
335.15days after the facility's receipt of the electronic file of notice of case mix classifications
335.16from the commissioner of health.
335.17    (b) If a facility submits a modification to the most recent assessment used to establish
335.18a case mix classification conducted under subdivision 3 that results in a change in case
335.19mix classification, the facility shall give written notice to the resident or the resident's
335.20representative about the item that was modified and the reason for the modification. The
335.21notice of modified assessment may be provided at the same time that the resident or
335.22resident's representative is provided the resident's modified notice of classification.
335.23    Subd. 8. Request for reconsideration of resident classifications. (a) The resident,
335.24or resident's representative, or the nursing facility or boarding care home may request that
335.25the commissioner of health reconsider the assigned reimbursement classification. The
335.26request for reconsideration must be submitted in writing to the commissioner within
335.2730 days of the day the resident or the resident's representative receives the resident
335.28classification notice. The request for reconsideration must include the name of the
335.29resident, the name and address of the facility in which the resident resides, the reasons
335.30for the reconsideration, and documentation supporting the request. The documentation
335.31accompanying the reconsideration request is limited to a copy of the MDS that determined
335.32the classification and other documents that would support or change the MDS findings.
335.33(b) Upon request, the nursing facility must give the resident or the resident's
335.34representative a copy of the assessment form and the other documentation that was given
335.35to the commissioner of health to support the assessment findings. The nursing facility
335.36shall also provide access to and a copy of other information from the resident's record that
336.1has been requested by or on behalf of the resident to support a resident's reconsideration
336.2request. A copy of any requested material must be provided within three working days of
336.3receipt of a written request for the information. Notwithstanding any law to the contrary,
336.4the facility may not charge a fee for providing copies of the requested documentation.
336.5If a facility fails to provide the material within this time, it is subject to the issuance
336.6of a correction order and penalty assessment under sections 144.653 and 144A.10.
336.7Notwithstanding those sections, any correction order issued under this subdivision must
336.8require that the nursing facility immediately comply with the request for information and
336.9that as of the date of the issuance of the correction order, the facility shall forfeit to the
336.10state a $100 fine for the first day of noncompliance, and an increase in the $100 fine by
336.11$50 increments for each day the noncompliance continues.
336.12(c) In addition to the information required under paragraphs (a) and (b), a
336.13reconsideration request from a nursing facility must contain the following information: (i)
336.14the date the reimbursement classification notices were received by the facility; (ii) the date
336.15the classification notices were distributed to the resident or the resident's representative;
336.16and (iii) a copy of a notice sent to the resident or to the resident's representative. This
336.17notice must inform the resident or the resident's representative that a reconsideration
336.18of the resident's classification is being requested, the reason for the request, that the
336.19resident's rate will change if the request is approved by the commissioner, the extent of the
336.20change, that copies of the facility's request and supporting documentation are available
336.21for review, and that the resident also has the right to request a reconsideration. If the
336.22facility fails to provide the required information listed in item (iii) with the reconsideration
336.23request, the commissioner may request that the facility provide the information within 14
336.24calendar days. The reconsideration request must be denied if the information is then not
336.25provided, and the facility may not make further reconsideration requests on that specific
336.26reimbursement classification.
336.27(d) Reconsideration by the commissioner must be made by individuals not
336.28involved in reviewing the assessment, audit, or reconsideration that established the
336.29disputed classification. The reconsideration must be based upon the assessment that
336.30determined the classification and upon the information provided to the commissioner
336.31under paragraphs (a) and (b). If necessary for evaluating the reconsideration request, the
336.32commissioner may conduct on-site reviews. Within 15 working days of receiving the
336.33request for reconsideration, the commissioner shall affirm or modify the original resident
336.34classification. The original classification must be modified if the commissioner determines
336.35that the assessment resulting in the classification did not accurately reflect characteristics
336.36of the resident at the time of the assessment. The resident and the nursing facility or
337.1boarding care home shall be notified within five working days after the decision is made.
337.2A decision by the commissioner under this subdivision is the final administrative decision
337.3of the agency for the party requesting reconsideration.
337.4(e) The resident classification established by the commissioner shall be the
337.5classification that applies to the resident while the request for reconsideration is pending.
337.6If a request for reconsideration applies to an assessment used to determine nursing facility
337.7level of care under subdivision 4, paragraph (c), the resident shall continue to be eligible
337.8for nursing facility level of care while the request for reconsideration is pending.
337.9(f) The commissioner may request additional documentation regarding a
337.10reconsideration necessary to make an accurate reconsideration determination.
337.11    Subd. 9. Audit authority. (a) The commissioner shall audit the accuracy of resident
337.12assessments performed under section 256B.438 through any of the following: desk
337.13audits; on-site review of residents and their records; and interviews with staff, residents,
337.14or residents' families. The commissioner shall reclassify a resident if the commissioner
337.15determines that the resident was incorrectly classified.
337.16(b) The commissioner is authorized to conduct on-site audits on an unannounced
337.17basis.
337.18(c) A facility must grant the commissioner access to examine the medical records
337.19relating to the resident assessments selected for audit under this subdivision. The
337.20commissioner may also observe and speak to facility staff and residents.
337.21(d) The commissioner shall consider documentation under the time frames for
337.22coding items on the minimum data set as set out in the Long-Term Care Facility Resident
337.23Assessment Instrument User's Manual published by the Centers for Medicare and
337.24Medicaid Services.
337.25(e) The commissioner shall develop an audit selection procedure that includes the
337.26following factors:
337.27(1) Each facility shall be audited annually. If a facility has two successive audits in
337.28which the percentage of change is five percent or less and the facility has not been the
337.29subject of a special audit in the past 36 months, the facility may be audited biannually.
337.30A stratified sample of 15 percent, with a minimum of ten assessments, of the most
337.31current assessments shall be selected for audit. If more than 20 percent of the RUG-IV
337.32classifications are changed as a result of the audit, the audit shall be expanded to a second
337.3315 percent sample, with a minimum of ten assessments. If the total change between
337.34the first and second samples is 35 percent or greater, the commissioner may expand the
337.35audit to all of the remaining assessments.
338.1(2) If a facility qualifies for an expanded audit, the commissioner may audit the
338.2facility again within six months. If a facility has two expanded audits within a 24-month
338.3period, that facility will be audited at least every six months for the next 18 months.
338.4(3) The commissioner may conduct special audits if the commissioner determines
338.5that circumstances exist that could alter or affect the validity of case mix classifications of
338.6residents. These circumstances include, but are not limited to, the following:
338.7(i) frequent changes in the administration or management of the facility;
338.8(ii) an unusually high percentage of residents in a specific case mix classification;
338.9(iii) a high frequency in the number of reconsideration requests received from
338.10a facility;
338.11(iv) frequent adjustments of case mix classifications as the result of reconsiderations
338.12or audits;
338.13(v) a criminal indictment alleging provider fraud;
338.14(vi) other similar factors that relate to a facility's ability to conduct accurate
338.15assessments;
338.16(vii) an atypical pattern of scoring minimum data set items;
338.17(viii) nonsubmission of assessments;
338.18(ix) late submission of assessments; or
338.19(x) a previous history of audit changes of 35 percent or greater.
338.20(f) Within 15 working days of completing the audit process, the commissioner shall
338.21make available electronically the results of the audit to the facility. If the results of the
338.22audit reflect a change in the resident's case mix classification, a case mix classification
338.23notice will be made available electronically to the facility, using the procedure in
338.24subdivision 7, paragraph (a). The notice must contain the resident's classification and a
338.25statement informing the resident, the resident's authorized representative, and the facility
338.26of their right to review the commissioner's documents supporting the classification and to
338.27request a reconsideration of the classification. This notice must also include the address
338.28and telephone number of the Office of Ombudsman for Long-Term Care.
338.29    Subd. 10. Transition. After implementation of this section, reconsiderations
338.30requested for classifications made under section 144.0722, subdivision 1, shall be
338.31determined under section 144.0722, subdivision 3.
338.32    Subd. 11. Nursing facility level of care. (a) For purposes of medical assistance
338.33payment of long-term care services, a recipient must be determined, using assessments
338.34defined in subdivision 4, to meet one of the following nursing facility level of care criteria:
338.35    (1) the person requires formal clinical monitoring at least once per day;
339.1    (2) the person needs the assistance of another person or constant supervision to begin
339.2and complete at least four of the following activities of living: bathing, bed mobility,
339.3dressing, eating, grooming, toileting, transferring, and walking;
339.4    (3) the person needs the assistance of another person or constant supervision to begin
339.5and complete toileting, transferring, or positioning and the assistance cannot be scheduled;
339.6    (4) the person has significant difficulty with memory, using information, daily
339.7decision making, or behavioral needs that require intervention;
339.8    (5) the person has had a qualifying nursing facility stay of at least 90 days;
339.9    (6) the person meets the nursing facility level of care criteria determined 90 days
339.10after admission or on the first quarterly assessment after admission, whichever is later; or
339.11    (7) the person is determined to be at risk for nursing facility admission or
339.12readmission through a face-to-face long-term care consultation assessment as specified
339.13in section 256B.0911, subdivision 3a, 3b, or 4d, by a county, tribe, or managed care
339.14organization under contract with the Department of Human Services. The person is
339.15considered at risk under this clause if the person currently lives alone or will live alone
339.16upon discharge or be homeless without the person's current housing type and also meets
339.17one of the following criteria:
339.18    (i) the person has experienced a fall resulting in a fracture;
339.19    (ii) the person has been determined to be at risk of maltreatment or neglect,
339.20including self-neglect; or
339.21    (iii) the person has a sensory impairment that substantially impacts functional ability
339.22and maintenance of a community residence.
339.23    (b) The assessment used to establish medical assistance payment for nursing facility
339.24services must be the most recent assessment performed under subdivision 4, paragraph
339.25(b), that occurred no more than 90 calendar days before the effective date of medical
339.26assistance eligibility for payment of long-term care services. In no case shall medical
339.27assistance payment for long-term care services occur prior to the date of the determination
339.28of nursing facility level of care.
339.29    (c) The assessment used to establish medical assistance payment for long-term care
339.30services provided under sections 256B.0915 and 256B.49 and alternative care payment
339.31for services provided under section 256B.0913 must be the most recent face-to-face
339.32assessment performed under section 256B.0911, subdivision 3a, 3b, or 4d, that occurred
339.33no more than 60 calendar days before the effective date of medical assistance eligibility
339.34for payment of long-term care services.
339.35    Subd. 12. Appeal of nursing facility level of care determination. (a) A resident or
339.36prospective resident whose level of care determination results in a denial of long-term care
340.1services can appeal the determination as outlined in section 256B.0911, subdivision 3a,
340.2paragraph (h), clause (9).
340.3    (b) The commissioner of human services shall ensure that notice of changes in
340.4eligibility due to a nursing facility level of care determination is provided to each affected
340.5recipient or the recipient's guardian at least 30 days before the effective date of the change.
340.6The notice shall include the following information:
340.7(1) how to obtain further information on the changes;
340.8(2) how to receive assistance in obtaining other services;
340.9(3) a list of community resources; and
340.10(4) appeal rights.
340.11A recipient who meets the criteria in section 256B.0922, subdivision 2, paragraph (a),
340.12clauses (1) and (2), may request continued services pending appeal within the time period
340.13allowed to request an appeal under section 256.045, subdivision 3, paragraph (h). This
340.14paragraph is in effect for appeals filed between January 1, 2015, and December 31, 2016.
340.15EFFECTIVE DATE.This section is effective January 1, 2015.

340.16    Sec. 3. Minnesota Statutes 2013 Supplement, section 245.8251, is amended to read:
340.17245.8251 POSITIVE SUPPORT STRATEGIES AND EMERGENCY
340.18MANUAL RESTRAINT; LICENSED FACILITIES AND PROGRAMS.
340.19    Subdivision 1. Rules governing the use of positive support strategies and
340.20restricting or prohibiting restrictive interventions. The commissioner of human
340.21services shall, within 24 months of May 23, 2013 by August 31, 2015, adopt rules
340.22governing the use of positive support strategies, safety interventions, and emergency use
340.23of manual restraint, and restricting or prohibiting the use of restrictive interventions, in
340.24all facilities and services licensed under chapter 245D., and in all licensed facilities and
340.25licensed services serving persons with a developmental disability or related condition.
340.26For the purposes of this section, "developmental disability or related condition" has the
340.27meaning given in Minnesota Rules, part 9525.0016, subpart 2, items A to E.
340.28    Subd. 2. Data collection. (a) The commissioner shall, with stakeholder input,
340.29develop identify data collection elements specific to incidents of emergency use of
340.30manual restraint and positive support transition plans for persons receiving services from
340.31providers governed licensed facilities and licensed services under chapter 245D and in
340.32licensed facilities and licensed services serving persons with a developmental disability
340.33or related condition as defined in Minnesota Rules, part 9525.0016, subpart 2, effective
340.34January 1, 2014. Providers Licensed facilities and licensed services shall report the data in
341.1a format and at a frequency determined by the commissioner of human services. Providers
341.2shall submit the data to the commissioner and the Office of the Ombudsman for Mental
341.3Health and Developmental Disabilities.
341.4(b) Beginning July 1, 2013, providers licensed facilities and licensed services
341.5 regulated under Minnesota Rules, parts 9525.2700 to 9525.2810, shall submit data
341.6regarding the use of all controlled procedures identified in Minnesota Rules, part
341.79525.2740, in a format and at a frequency determined by the commissioner. Providers
341.8shall submit the data to the commissioner and the Office of the Ombudsman for Mental
341.9Health and Developmental Disabilities.
341.10    Subd. 3. External program review committee. Rules adopted according to this
341.11section shall establish requirements for an external program review committee appointed
341.12by the commissioner to monitor implementation of the rules and make recommendations
341.13to the commissioner about any needed policy changes after adoption of the rules.
341.14    Subd. 4. Interim review panel. (a) The commissioner shall establish an interim
341.15review panel by August 15, 2014, for the purpose of reviewing requests for emergency
341.16use of procedures that have been part of an approved positive support transition plan
341.17when necessary to protect a person from imminent risk of serious injury as defined in
341.18section 245.91, subdivision 6, due to self-injurious behavior. The panel must make
341.19recommendations to the commissioner to approve or deny these requests based on criteria
341.20to be established by the interim review panel. The interim review panel shall operate until
341.21the external program review committee is established as required under subdivision 3.
341.22(b) Members of the interim review panel shall be selected based on their expertise
341.23and knowledge related to the use of positive support strategies as alternatives to the use
341.24of restrictive interventions. The commissioner shall seek input and recommendations in
341.25establishing the interim review panel. Members of the interim review panel shall include
341.26the following representatives:
341.27(1) an expert in positive supports;
341.28(2) a mental health professional, as defined in section 245.462;
341.29(3) a licensed health professional as defined in section 245D.02, subdivision 14; and
341.30(4) a representative of the Department of Health.

341.31    Sec. 4. Minnesota Statutes 2013 Supplement, section 245A.03, subdivision 7, is
341.32amended to read:
341.33    Subd. 7. Licensing moratorium. (a) The commissioner shall not issue an initial
341.34license for child foster care licensed under Minnesota Rules, parts 2960.3000 to 2960.3340,
341.35or adult foster care licensed under Minnesota Rules, parts 9555.5105 to 9555.6265, under
342.1this chapter for a physical location that will not be the primary residence of the license
342.2holder for the entire period of licensure. If a license is issued during this moratorium, and
342.3the license holder changes the license holder's primary residence away from the physical
342.4location of the foster care license, the commissioner shall revoke the license according
342.5to section 245A.07. The commissioner shall not issue an initial license for a community
342.6residential setting licensed under chapter 245D. Exceptions to the moratorium include:
342.7(1) foster care settings that are required to be registered under chapter 144D;
342.8(2) foster care licenses replacing foster care licenses in existence on May 15, 2009, or
342.9community residential setting licenses replacing adult foster care licenses in existence on
342.10December 31, 2013, and determined to be needed by the commissioner under paragraph (b);
342.11(3) new foster care licenses or community residential setting licenses determined to
342.12be needed by the commissioner under paragraph (b) for the closure of a nursing facility,
342.13ICF/DD, or regional treatment center; restructuring of state-operated services that limits
342.14the capacity of state-operated facilities; or allowing movement to the community for
342.15people who no longer require the level of care provided in state-operated facilities as
342.16provided under section 256B.092, subdivision 13, or 256B.49, subdivision 24;
342.17(4) new foster care licenses or community residential setting licenses determined
342.18to be needed by the commissioner under paragraph (b) for persons requiring hospital
342.19level care; or
342.20(5) new foster care licenses or community residential setting licenses determined to
342.21be needed by the commissioner for the transition of people from personal care assistance
342.22to the home and community-based services.
342.23(b) The commissioner shall determine the need for newly licensed foster care
342.24homes or community residential settings as defined under this subdivision. As part of the
342.25determination, the commissioner shall consider the availability of foster care capacity in
342.26the area in which the licensee seeks to operate, and the recommendation of the local
342.27county board. The determination by the commissioner must be final. A determination of
342.28need is not required for a change in ownership at the same address.
342.29(c) When an adult resident served by the program moves out of a foster home
342.30that is not the primary residence of the license holder according to section 256B.49,
342.31subdivision 15 , paragraph (f), or the adult community residential setting, the county
342.32shall immediately inform the Department of Human Services Licensing Division. The
342.33department shall decrease the statewide licensed capacity for adult foster care settings
342.34where the physical location is not the primary residence of the license holder, or for adult
342.35community residential settings, if the voluntary changes described in paragraph (e) are
342.36not sufficient to meet the savings required by reductions in licensed bed capacity under
343.1Laws 2011, First Special Session chapter 9, article 7, sections 1 and 40, paragraph (f),
343.2and maintain statewide long-term care residential services capacity within budgetary
343.3limits. Implementation of the statewide licensed capacity reduction shall begin on July
343.41, 2013. The commissioner shall delicense up to 128 beds by June 30, 2014, using the
343.5needs determination process. Prior to any involuntary reduction of licensed capacity, the
343.6commissioner shall consult with lead agencies and license holders to determine which
343.7adult foster care settings where the physical location is not the primary residence of the
343.8license holder, or community residential settings, are licensed for up to five beds but have
343.9operated at less than full capacity for 12 or more months as of March 1, 2014. The settings
343.10that meet these criteria shall be the first to be considered for any involuntary decrease
343.11in statewide licensed capacity, up to a maximum of 35 beds. If more than 35 beds are
343.12identified that meet these criteria, the commissioner shall prioritize the selection of those
343.13beds to be closed based on the length of time the beds have been vacant. The longer a bed
343.14has been vacant, the higher priority it must be given for closure. Under this paragraph,
343.15the commissioner has the authority to reduce unused licensed capacity of a current foster
343.16care program, or the community residential settings, to accomplish the consolidation or
343.17closure of settings. Under this paragraph, the commissioner has the authority to manage
343.18statewide capacity, including adjusting the capacity available to each county and adjusting
343.19statewide available capacity, to meet the statewide needs identified through the process in
343.20paragraph (e). A decreased licensed capacity according to this paragraph is not subject to
343.21appeal under this chapter.
343.22(d) Residential settings that would otherwise be subject to the decreased license
343.23capacity established in paragraph (c) shall be exempt under the following circumstances:
343.24(1) until August 1, 2013, the license holder's beds occupied by residents whose
343.25primary diagnosis is mental illness and the license holder is:
343.26(i) a provider of assertive community treatment (ACT) or adult rehabilitative mental
343.27health services (ARMHS) as defined in section 256B.0623;
343.28(ii) a mental health center certified under Minnesota Rules, parts 9520.0750 to
343.299520.0870;
343.30(iii) a mental health clinic certified under Minnesota Rules, parts 9520.0750 to
343.319520.0870; or
343.32(iv) a provider of intensive residential treatment services (IRTS) licensed under
343.33Minnesota Rules, parts 9520.0500 to 9520.0670; or
343.34(2) the license holder's beds occupied by residents whose primary diagnosis is
343.35mental illness and the license holder is certified under the requirements in subdivision 6a
343.36or section 245D.33.
344.1(e) A resource need determination process, managed at the state level, using the
344.2available reports required by section 144A.351, and other data and information shall
344.3be used to determine where the reduced capacity required under paragraph (c) will be
344.4implemented. The commissioner shall consult with the stakeholders described in section
344.5144A.351 , and employ a variety of methods to improve the state's capacity to meet
344.6long-term care service needs within budgetary limits, including seeking proposals from
344.7service providers or lead agencies to change service type, capacity, or location to improve
344.8services, increase the independence of residents, and better meet needs identified by the
344.9long-term care services reports and statewide data and information. By February 1, 2013,
344.10and August 1, 2014, and each following year, the commissioner shall provide information
344.11and data on the overall capacity of licensed long-term care services, actions taken under
344.12this subdivision to manage statewide long-term care services and supports resources, and
344.13any recommendations for change to the legislative committees with jurisdiction over
344.14health and human services budget.
344.15    (f) At the time of application and reapplication for licensure, the applicant and the
344.16license holder that are subject to the moratorium or an exclusion established in paragraph
344.17(a) are required to inform the commissioner whether the physical location where the foster
344.18care will be provided is or will be the primary residence of the license holder for the entire
344.19period of licensure. If the primary residence of the applicant or license holder changes, the
344.20applicant or license holder must notify the commissioner immediately. The commissioner
344.21shall print on the foster care license certificate whether or not the physical location is the
344.22primary residence of the license holder.
344.23    (g) License holders of foster care homes identified under paragraph (f) that are not
344.24the primary residence of the license holder and that also provide services in the foster care
344.25home that are covered by a federally approved home and community-based services
344.26waiver, as authorized under section 256B.0915, 256B.092, or 256B.49, must inform the
344.27human services licensing division that the license holder provides or intends to provide
344.28these waiver-funded services.

344.29    Sec. 5. Minnesota Statutes 2013 Supplement, section 245A.042, subdivision 3, is
344.30amended to read:
344.31    Subd. 3. Implementation. (a) The commissioner shall implement the
344.32responsibilities of this chapter according to the timelines in paragraphs (b) and (c)
344.33only within the limits of available appropriations or other administrative cost recovery
344.34methodology.
345.1(b) The licensure of home and community-based services according to this section
345.2shall be implemented January 1, 2014. License applications shall be received and
345.3processed on a phased-in schedule as determined by the commissioner beginning July
345.41, 2013. Licenses will be issued thereafter upon the commissioner's determination that
345.5the application is complete according to section 245A.04.
345.6(c) Within the limits of available appropriations or other administrative cost recovery
345.7methodology, implementation of compliance monitoring must be phased in after January
345.81, 2014.
345.9(1) Applicants who do not currently hold a license issued under chapter 245B must
345.10receive an initial compliance monitoring visit after 12 months of the effective date of the
345.11initial license for the purpose of providing technical assistance on how to achieve and
345.12maintain compliance with the applicable law or rules governing the provision of home and
345.13community-based services under chapter 245D. If during the review the commissioner
345.14finds that the license holder has failed to achieve compliance with an applicable law or
345.15rule and this failure does not imminently endanger the health, safety, or rights of the
345.16persons served by the program, the commissioner may issue a licensing review report with
345.17recommendations for achieving and maintaining compliance.
345.18(2) Applicants who do currently hold a license issued under this chapter must receive
345.19a compliance monitoring visit after 24 months of the effective date of the initial license.
345.20(d) Nothing in this subdivision shall be construed to limit the commissioner's
345.21authority to suspend or revoke a license or issue a fine at any time under section 245A.07,
345.22or issue correction orders and make a license conditional for failure to comply with
345.23applicable laws or rules under section 245A.06, based on the nature, chronicity, or severity
345.24of the violation of law or rule and the effect of the violation on the health, safety, or
345.25rights of persons served by the program.
345.26(e) License holders governed under chapter 245D must ensure compliance with the
345.27following requirements within the stated timelines:
345.28(1) service initiation and service planning requirements must be met at the next
345.29annual meeting of the person's support team or by January 1, 2015, whichever is later,
345.30for the following:
345.31    (i) provision of a written notice that identifies the service recipient rights and an
345.32explanation of those rights as required under section 245D.04, subdivision 1;
345.33(ii) service planning for basic support services as required under section 245D.07,
345.34subdivision 2; and
345.35(iii) service planning for intensive support services under section 245D.071,
345.36subdivisions 3 and 4;
346.1(2) staff orientation to program requirements as required under section 245D.09,
346.2subdivision 4, for staff hired before January 1, 2014, must be met by January 1, 2015.
346.3The license holder may otherwise provide documentation verifying these requirements
346.4were met before January 1, 2014;
346.5(3) development of policy and procedures as required under section 245D.11, must
346.6be completed no later than August 31, 2014;
346.7(4) written or electronic notice and copies of policies and procedures must be
346.8provided to all persons or their legal representatives and case managers as required under
346.9section 245D.10, subdivision 4, paragraphs (b) and (c), by September 15, 2014, or within
346.1030 days of development of the required policies and procedures, whichever is earlier; and
346.11(5) all employees must be informed of the revisions and training must be provided on
346.12implementation of the revised policies and procedures as required under section 245D.10,
346.13subdivision 4, paragraph (d), by September 15, 2014, or within 30 days of development of
346.14the required policies and procedures, whichever is earlier.

346.15    Sec. 6. Minnesota Statutes 2013 Supplement, section 245A.16, subdivision 1, is
346.16amended to read:
346.17    Subdivision 1. Delegation of authority to agencies. (a) County agencies and
346.18private agencies that have been designated or licensed by the commissioner to perform
346.19licensing functions and activities under section 245A.04 and background studies for family
346.20child care under chapter 245C; to recommend denial of applicants under section 245A.05;
346.21to issue correction orders, to issue variances, and recommend a conditional license under
346.22section 245A.06, or to recommend suspending or revoking a license or issuing a fine under
346.23section 245A.07, shall comply with rules and directives of the commissioner governing
346.24those functions and with this section. The following variances are excluded from the
346.25delegation of variance authority and may be issued only by the commissioner:
346.26    (1) dual licensure of family child care and child foster care, dual licensure of child
346.27and adult foster care, and adult foster care and family child care;
346.28    (2) adult foster care maximum capacity;
346.29    (3) adult foster care minimum age requirement;
346.30    (4) child foster care maximum age requirement;
346.31    (5) variances regarding disqualified individuals except that county agencies may
346.32issue variances under section 245C.30 regarding disqualified individuals when the county
346.33is responsible for conducting a consolidated reconsideration according to sections 245C.25
346.34and 245C.27, subdivision 2, clauses (a) and (b), of a county maltreatment determination
346.35and a disqualification based on serious or recurring maltreatment;
347.1    (6) the required presence of a caregiver in the adult foster care residence during
347.2normal sleeping hours; and
347.3    (7) variances for community residential setting licenses under chapter 245D.
347.4Except as provided in section 245A.14, subdivision 4, paragraph (e), a county agency
347.5must not grant a license holder a variance to exceed the maximum allowable family child
347.6care license capacity of 14 children.
347.7    (b) County agencies must report information about disqualification reconsiderations
347.8under sections 245C.25 and 245C.27, subdivision 2, paragraphs (a) and (b), and variances
347.9granted under paragraph (a), clause (5), to the commissioner at least monthly in a format
347.10prescribed by the commissioner.
347.11    (c) For family day care programs, the commissioner may authorize licensing reviews
347.12every two years after a licensee has had at least one annual review.
347.13    (d) For family adult day services programs, the commissioner may authorize
347.14licensing reviews every two years after a licensee has had at least one annual review.
347.15    (e) A license issued under this section may be issued for up to two years.
347.16(f) During implementation of chapter 245D, the commissioner shall consider:
347.17(1) the role of counties in quality assurance;
347.18(2) the duties of county licensing staff; and
347.19(3) the possible use of joint powers agreements, according to section 471.59, with
347.20counties through which some licensing duties under chapter 245D may be delegated by
347.21the commissioner to the counties.
347.22Any consideration related to this paragraph must meet all of the requirements of the
347.23corrective action plan ordered by the federal Centers for Medicare and Medicaid Services.
347.24(g) Licensing authority specific to section 245D.06, subdivisions 5, 6, 7, and 8, or
347.25successor provisions; and section 245D.061 or successor provisions, for family child
347.26foster care programs providing out-of-home respite, as identified in section 245D.03,
347.27subdivision 1, paragraph (b), clause (1), is excluded from the delegation of authority
347.28to county and private agencies.

347.29    Sec. 7. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 3, is
347.30amended to read:
347.31    Subd. 3. Case manager. "Case manager" means the individual designated
347.32to provide waiver case management services, care coordination, or long-term care
347.33consultation, as specified in sections 256B.0913, 256B.0915, 256B.092, and 256B.49,
347.34or successor provisions. For purposes of this chapter, "case manager" includes case
347.35management services as defined in Minnesota Rules, part 9520.0902, subpart 3.

348.1    Sec. 8. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 4b, is
348.2amended to read:
348.3    Subd. 4b. Coordinated service and support plan. "Coordinated service and
348.4support plan" has the meaning given in sections 256B.0913, subdivision 8; 256B.0915,
348.5subdivision 6; 256B.092, subdivision 1b; and 256B.49, subdivision 15, or successor
348.6provisions. For purposes of this chapter, "coordinated service and support plan" includes
348.7the individual program plan or individual treatment plan as defined in Minnesota Rules,
348.8part 9520.0510, subpart 12.

348.9    Sec. 9. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 8b, is
348.10amended to read:
348.11    Subd. 8b. Expanded support team. "Expanded support team" means the members
348.12of the support team defined in subdivision 46 34 and a licensed health or mental health
348.13professional or other licensed, certified, or qualified professionals or consultants working
348.14with the person and included in the team at the request of the person or the person's legal
348.15representative.

348.16    Sec. 10. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 11,
348.17is amended to read:
348.18    Subd. 11. Incident. "Incident" means an occurrence which involves a person and
348.19requires the program to make a response that is not a part of the program's ordinary
348.20provision of services to that person, and includes:
348.21(1) serious injury of a person as determined by section 245.91, subdivision 6;
348.22(2) a person's death;
348.23(3) any medical emergency, unexpected serious illness, or significant unexpected
348.24change in an illness or medical condition of a person that requires the program to call
348.25911, physician treatment, or hospitalization;
348.26(4) any mental health crisis that requires the program to call 911 or, a mental
348.27health crisis intervention team, or a similar mental health response team or service when
348.28available and appropriate;
348.29(5) an act or situation involving a person that requires the program to call 911,
348.30law enforcement, or the fire department;
348.31(6) a person's unauthorized or unexplained absence from a program;
348.32(7) conduct by a person receiving services against another person receiving services
348.33that:
349.1(i) is so severe, pervasive, or objectively offensive that it substantially interferes with
349.2a person's opportunities to participate in or receive service or support;
349.3(ii) places the person in actual and reasonable fear of harm;
349.4(iii) places the person in actual and reasonable fear of damage to property of the
349.5person; or
349.6(iv) substantially disrupts the orderly operation of the program;
349.7(8) any sexual activity between persons receiving services involving force or
349.8coercion as defined under section 609.341, subdivisions 3 and 14;
349.9(9) any emergency use of manual restraint as identified in section 245D.061 or
349.10successor provisions; or
349.11(10) a report of alleged or suspected child or vulnerable adult maltreatment under
349.12section 626.556 or 626.557.

349.13    Sec. 11. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 15b,
349.14is amended to read:
349.15    Subd. 15b. Mechanical restraint. (a) Except for devices worn by the person that
349.16trigger electronic alarms to warn staff that a person is leaving a room or area, which
349.17do not, in and of themselves, restrict freedom of movement, or the use of adaptive aids
349.18or equipment or orthotic devices ordered by a health care professional used to treat or
349.19manage a medical condition, "Mechanical restraint" means the use of devices, materials,
349.20or equipment attached or adjacent to the person's body, or the use of practices that are
349.21intended to restrict freedom of movement or normal access to one's body or body parts,
349.22or limits a person's voluntary movement or holds a person immobile as an intervention
349.23precipitated by a person's behavior. The term applies to the use of mechanical restraint
349.24used to prevent injury with persons who engage in self-injurious behaviors, such as
349.25head-banging, gouging, or other actions resulting in tissue damage that have caused or
349.26could cause medical problems resulting from the self-injury.
349.27(b) Mechanical restraint does not include the following:
349.28(1) devices worn by the person that trigger electronic alarms to warn staff that a
349.29person is leaving a room or area, which do not, in and of themselves, restrict freedom of
349.30movement; or
349.31(2) the use of adaptive aids or equipment or orthotic devices ordered by a health care
349.32professional used to treat or manage a medical condition.

349.33    Sec. 12. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 29,
349.34is amended to read:
350.1    Subd. 29. Seclusion. "Seclusion" means the placement of a person alone in: (1)
350.2removing a person involuntarily to a room from which exit is prohibited by a staff person
350.3or a mechanism such as a lock, a device, or an object positioned to hold the door closed
350.4or otherwise prevent the person from leaving the room.; or (2) otherwise involuntarily
350.5removing or separating a person from an area, activity, situation, or social contact with
350.6others and blocking or preventing the person's return.

350.7    Sec. 13. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34,
350.8is amended to read:
350.9    Subd. 34. Support team. "Support team" means the service planning team
350.10identified in section 256B.49, subdivision 15, or; the interdisciplinary team identified in
350.11Minnesota Rules, part 9525.0004, subpart 14; or the case management team as defined in
350.12Minnesota Rules, part 9520.0902, subpart 6.

350.13    Sec. 14. Minnesota Statutes 2013 Supplement, section 245D.02, subdivision 34a,
350.14is amended to read:
350.15    Subd. 34a. Time out. "Time out" means removing a person involuntarily from an
350.16ongoing activity to a room, either locked or unlocked, or otherwise separating a person
350.17from others in a way that prevents social contact and prevents the person from leaving the
350.18situation if the person chooses the involuntary removal of a person for a period of time to
350.19a designated area from which the person is not prevented from leaving. For the purpose of
350.20this chapter, "time out" does not mean voluntary removal or self-removal for the purpose
350.21of calming, prevention of escalation, or de-escalation of behavior for a period of up to 15
350.22minutes. "Time out" does not include a person voluntarily moving from an ongoing activity
350.23to an unlocked room or otherwise separating from a situation or social contact with others
350.24if the person chooses. For the purposes of this definition, "voluntarily" means without
350.25being forced, compelled, or coerced.; nor does it mean taking a brief "break" or "rest" from
350.26an activity for the purpose of providing the person an opportunity to regain self-control.

350.27    Sec. 15. Minnesota Statutes 2013 Supplement, section 245D.02, is amended by adding
350.28a subdivision to read:
350.29    Subd. 35b. Unlicensed staff. "Unlicensed staff" means individuals not otherwise
350.30licensed or certified by a governmental health board or agency.

350.31    Sec. 16. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 1, is
350.32amended to read:
351.1    Subdivision 1. Applicability. (a) The commissioner shall regulate the provision of
351.2home and community-based services to persons with disabilities and persons age 65 and
351.3older pursuant to this chapter. The licensing standards in this chapter govern the provision
351.4of basic support services and intensive support services.
351.5(b) Basic support services provide the level of assistance, supervision, and care that
351.6is necessary to ensure the health and safety of the person and do not include services that
351.7are specifically directed toward the training, treatment, habilitation, or rehabilitation of
351.8the person. Basic support services include:
351.9(1) in-home and out-of-home respite care services as defined in section 245A.02,
351.10subdivision 15, and under the brain injury, community alternative care, community
351.11alternatives for disabled individuals, developmental disability, and elderly waiver plans,
351.12excluding out-of-home respite care provided to children in a family child foster care home
351.13licensed under Minnesota Rules, parts 2960.3000 to 2960.3100, when the child foster care
351.14license holder complies with the requirements under section 245D.06, subdivisions 5, 6,
351.157, and 8, or successor provisions; and section 245D.061 or successor provisions, which
351.16must be stipulated in the statement of intended use required under Minnesota Rules,
351.17part 2960.3000, subpart 4;
351.18(2) adult companion services as defined under the brain injury, community
351.19alternatives for disabled individuals, and elderly waiver plans, excluding adult companion
351.20services provided under the Corporation for National and Community Services Senior
351.21Companion Program established under the Domestic Volunteer Service Act of 1973,
351.22Public Law 98-288;
351.23(3) personal support as defined under the developmental disability waiver plan;
351.24(4) 24-hour emergency assistance, personal emergency response as defined under the
351.25community alternatives for disabled individuals and developmental disability waiver plans;
351.26(5) night supervision services as defined under the brain injury waiver plan; and
351.27(6) homemaker services as defined under the community alternatives for disabled
351.28individuals, brain injury, community alternative care, developmental disability, and elderly
351.29waiver plans, excluding providers licensed by the Department of Health under chapter
351.30144A and those providers providing cleaning services only.
351.31(c) Intensive support services provide assistance, supervision, and care that is
351.32necessary to ensure the health and safety of the person and services specifically directed
351.33toward the training, habilitation, or rehabilitation of the person. Intensive support services
351.34include:
351.35(1) intervention services, including:
352.1(i) behavioral support services as defined under the brain injury and community
352.2alternatives for disabled individuals waiver plans;
352.3(ii) in-home or out-of-home crisis respite services as defined under the developmental
352.4disability waiver plan; and
352.5(iii) specialist services as defined under the current developmental disability waiver
352.6plan;
352.7(2) in-home support services, including:
352.8(i) in-home family support and supported living services as defined under the
352.9developmental disability waiver plan;
352.10(ii) independent living services training as defined under the brain injury and
352.11community alternatives for disabled individuals waiver plans; and
352.12(iii) semi-independent living services;
352.13(3) residential supports and services, including:
352.14(i) supported living services as defined under the developmental disability waiver
352.15plan provided in a family or corporate child foster care residence, a family adult foster
352.16care residence, a community residential setting, or a supervised living facility;
352.17(ii) foster care services as defined in the brain injury, community alternative care,
352.18and community alternatives for disabled individuals waiver plans provided in a family or
352.19corporate child foster care residence, a family adult foster care residence, or a community
352.20residential setting; and
352.21(iii) residential services provided to more than four persons with developmental
352.22disabilities in a supervised living facility that is certified by the Department of Health as
352.23an ICF/DD, including ICFs/DD;
352.24(4) day services, including:
352.25(i) structured day services as defined under the brain injury waiver plan;
352.26(ii) day training and habilitation services under sections 252.40 to 252.46, and as
352.27defined under the developmental disability waiver plan; and
352.28(iii) prevocational services as defined under the brain injury and community
352.29alternatives for disabled individuals waiver plans; and
352.30(5) supported employment as defined under the brain injury, developmental
352.31disability, and community alternatives for disabled individuals waiver plans.

352.32    Sec. 17. Minnesota Statutes 2013 Supplement, section 245D.03, is amended by adding
352.33a subdivision to read:
352.34    Subd. 1a. Effect. The home and community-based services standards establish
352.35health, safety, welfare, and rights protections for persons receiving services governed by
353.1this chapter. The standards recognize the diversity of persons receiving these services and
353.2require that these services are provided in a manner that meets each person's individual
353.3needs and ensures continuity in service planning, care, and coordination between the
353.4license holder and members of each person's support team or expanded support team.

353.5    Sec. 18. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 2, is
353.6amended to read:
353.7    Subd. 2. Relationship to other standards governing home and community-based
353.8services. (a) A license holder governed by this chapter is also subject to the licensure
353.9requirements under chapter 245A.
353.10(b) A corporate or family child foster care site controlled by a license holder and
353.11providing services governed by this chapter is exempt from compliance with section
353.12245D.04. This exemption applies to foster care homes where at least one resident is
353.13receiving residential supports and services licensed according to this chapter. This chapter
353.14does not apply to corporate or family child foster care homes that do not provide services
353.15licensed under this chapter.
353.16(c) A family adult foster care site controlled by a license holder and providing
353.17services governed by this chapter is exempt from compliance with Minnesota Rules,
353.18parts 9555.6185; 9555.6225, subpart 8; 9555.6245; 9555.6255; and 9555.6265. These
353.19exemptions apply to family adult foster care homes where at least one resident is receiving
353.20residential supports and services licensed according to this chapter. This chapter does
353.21not apply to family adult foster care homes that do not provide services licensed under
353.22this chapter.
353.23(d) A license holder providing services licensed according to this chapter in a
353.24supervised living facility is exempt from compliance with sections section 245D.04;
353.25245D.05, subdivision 2; and 245D.06, subdivision 2, clauses (1), (4), and (5).
353.26(e) A license holder providing residential services to persons in an ICF/DD is exempt
353.27from compliance with sections 245D.04; 245D.05, subdivision 1b; 245D.06, subdivision
353.282 , clauses (4) and (5); 245D.071, subdivisions 4 and 5; 245D.081, subdivision 2; 245D.09,
353.29subdivision 7; 245D.095, subdivision 2; and 245D.11, subdivision 3.
353.30(f) A license holder providing homemaker services licensed according to this chapter
353.31and registered according to chapter 144A is exempt from compliance with section 245D.04.
353.32(g) Nothing in this chapter prohibits a license holder from concurrently serving
353.33persons without disabilities or people who are or are not age 65 and older, provided this
353.34chapter's standards are met as well as other relevant standards.
354.1(h) The documentation required under sections 245D.07 and 245D.071 must meet
354.2the individual program plan requirements identified in section 256B.092 or successor
354.3provisions.

354.4    Sec. 19. Minnesota Statutes 2013 Supplement, section 245D.03, subdivision 3, is
354.5amended to read:
354.6    Subd. 3. Variance. If the conditions in section 245A.04, subdivision 9, are met,
354.7the commissioner may grant a variance to any of the requirements in this chapter, except
354.8sections 245D.04; 245D.06, subdivision 4, paragraph (b), and subdivision 6, or successor
354.9provisions; and 245D.061, subdivision 3, or provisions governing data practices and
354.10information rights of persons.

354.11    Sec. 20. Minnesota Statutes 2013 Supplement, section 245D.04, subdivision 3, is
354.12amended to read:
354.13    Subd. 3. Protection-related rights. (a) A person's protection-related rights include
354.14the right to:
354.15(1) have personal, financial, service, health, and medical information kept private,
354.16and be advised of disclosure of this information by the license holder;
354.17(2) access records and recorded information about the person in accordance with
354.18applicable state and federal law, regulation, or rule;
354.19(3) be free from maltreatment;
354.20(4) be free from restraint, time out, or seclusion, restrictive intervention, or other
354.21prohibited procedure identified in section 245D.06, subdivision 5, or successor provisions,
354.22 except for: (i) emergency use of manual restraint to protect the person from imminent
354.23danger to self or others according to the requirements in section 245D.06; 245D.061 or
354.24successor provisions; or (ii) the use of safety interventions as part of a positive support
354.25transition plan under section 245D.06, subdivision 8, or successor provisions;
354.26(5) receive services in a clean and safe environment when the license holder is the
354.27owner, lessor, or tenant of the service site;
354.28(6) be treated with courtesy and respect and receive respectful treatment of the
354.29person's property;
354.30(7) reasonable observance of cultural and ethnic practice and religion;
354.31(8) be free from bias and harassment regarding race, gender, age, disability,
354.32spirituality, and sexual orientation;
355.1(9) be informed of and use the license holder's grievance policy and procedures,
355.2including knowing how to contact persons responsible for addressing problems and to
355.3appeal under section 256.045;
355.4(10) know the name, telephone number, and the Web site, e-mail, and street
355.5addresses of protection and advocacy services, including the appropriate state-appointed
355.6ombudsman, and a brief description of how to file a complaint with these offices;
355.7(11) assert these rights personally, or have them asserted by the person's family,
355.8authorized representative, or legal representative, without retaliation;
355.9(12) give or withhold written informed consent to participate in any research or
355.10experimental treatment;
355.11(13) associate with other persons of the person's choice;
355.12(14) personal privacy; and
355.13(15) engage in chosen activities.
355.14(b) For a person residing in a residential site licensed according to chapter 245A,
355.15or where the license holder is the owner, lessor, or tenant of the residential service site,
355.16protection-related rights also include the right to:
355.17(1) have daily, private access to and use of a non-coin-operated telephone for local
355.18calls and long-distance calls made collect or paid for by the person;
355.19(2) receive and send, without interference, uncensored, unopened mail or electronic
355.20correspondence or communication;
355.21(3) have use of and free access to common areas in the residence; and
355.22(4) privacy for visits with the person's spouse, next of kin, legal counsel, religious
355.23advisor, or others, in accordance with section 363A.09 of the Human Rights Act, including
355.24privacy in the person's bedroom.
355.25(c) Restriction of a person's rights under subdivision 2, clause (10), or paragraph (a),
355.26clauses (13) to (15), or paragraph (b) is allowed only if determined necessary to ensure
355.27the health, safety, and well-being of the person. Any restriction of those rights must be
355.28documented in the person's coordinated service and support plan or coordinated service
355.29and support plan addendum. The restriction must be implemented in the least restrictive
355.30alternative manner necessary to protect the person and provide support to reduce or
355.31eliminate the need for the restriction in the most integrated setting and inclusive manner.
355.32The documentation must include the following information:
355.33(1) the justification for the restriction based on an assessment of the person's
355.34vulnerability related to exercising the right without restriction;
355.35(2) the objective measures set as conditions for ending the restriction;
356.1(3) a schedule for reviewing the need for the restriction based on the conditions
356.2for ending the restriction to occur semiannually from the date of initial approval, at a
356.3minimum, or more frequently if requested by the person, the person's legal representative,
356.4if any, and case manager; and
356.5(4) signed and dated approval for the restriction from the person, or the person's
356.6legal representative, if any. A restriction may be implemented only when the required
356.7approval has been obtained. Approval may be withdrawn at any time. If approval is
356.8withdrawn, the right must be immediately and fully restored.

356.9    Sec. 21. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1, is
356.10amended to read:
356.11    Subdivision 1. Health needs. (a) The license holder is responsible for meeting
356.12health service needs assigned in the coordinated service and support plan or the
356.13coordinated service and support plan addendum, consistent with the person's health needs.
356.14The license holder is responsible for promptly notifying the person's legal representative,
356.15if any, and the case manager of changes in a person's physical and mental health needs
356.16affecting health service needs assigned to the license holder in the coordinated service and
356.17support plan or the coordinated service and support plan addendum, when discovered by
356.18the license holder, unless the license holder has reason to know the change has already
356.19been reported. The license holder must document when the notice is provided.
356.20(b) If responsibility for meeting the person's health service needs has been assigned
356.21to the license holder in the coordinated service and support plan or the coordinated service
356.22and support plan addendum, the license holder must maintain documentation on how the
356.23person's health needs will be met, including a description of the procedures the license
356.24holder will follow in order to:
356.25(1) provide medication setup, assistance, or medication administration according
356.26to this chapter. Unlicensed staff responsible for medication setup or medication
356.27administration under this section must complete training according to section 245D.09,
356.28subdivision 4a, paragraph (d);
356.29(2) monitor health conditions according to written instructions from a licensed
356.30health professional;
356.31(3) assist with or coordinate medical, dental, and other health service appointments; or
356.32(4) use medical equipment, devices, or adaptive aides or technology safely and
356.33correctly according to written instructions from a licensed health professional.

357.1    Sec. 22. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1a,
357.2is amended to read:
357.3    Subd. 1a. Medication setup. (a) For the purposes of this subdivision, "medication
357.4setup" means the arranging of medications according to instructions from the pharmacy,
357.5the prescriber, or a licensed nurse, for later administration when the license holder
357.6is assigned responsibility for medication assistance or medication administration in
357.7the coordinated service and support plan or the coordinated service and support plan
357.8addendum. A prescription label or the prescriber's written or electronically recorded order
357.9for the prescription is sufficient to constitute written instructions from the prescriber.
357.10(b) If responsibility for medication setup is assigned to the license holder in
357.11the coordinated service and support plan or the coordinated service and support plan
357.12addendum, or if the license holder provides it as part of medication assistance or
357.13medication administration, the license holder must document in the person's medication
357.14administration record: dates of setup, name of medication, quantity of dose, times to be
357.15administered, and route of administration at time of setup; and, when the person will be
357.16away from home, to whom the medications were given.

357.17    Sec. 23. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 1b,
357.18is amended to read:
357.19    Subd. 1b. Medication assistance. (a) For purposes of this subdivision, "medication
357.20assistance" means any of the following:
357.21(1) bringing to the person and opening a container of previously set up medications,
357.22emptying the container into the person's hand, or opening and giving the medications in
357.23the original container to the person under the direction of the person;
357.24(2) bringing to the person liquids or food to accompany the medication; or
357.25(3) providing reminders to take regularly scheduled medication or perform regularly
357.26scheduled treatments and exercises.
357.27(b) If responsibility for medication assistance is assigned to the license holder
357.28in the coordinated service and support plan or the coordinated service and support
357.29plan addendum, the license holder must ensure that the requirements of subdivision 2,
357.30paragraph (b), have been met when staff provides medication assistance to enable is
357.31provided in a manner that enables a person to self-administer medication or treatment
357.32when the person is capable of directing the person's own care, or when the person's legal
357.33representative is present and able to direct care for the person. For the purposes of this
357.34subdivision, "medication assistance" means any of the following:
358.1(1) bringing to the person and opening a container of previously set up medications,
358.2emptying the container into the person's hand, or opening and giving the medications in
358.3the original container to the person;
358.4(2) bringing to the person liquids or food to accompany the medication; or
358.5(3) providing reminders to take regularly scheduled medication or perform regularly
358.6scheduled treatments and exercises.

358.7    Sec. 24. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 2, is
358.8amended to read:
358.9    Subd. 2. Medication administration. (a) If responsibility for medication
358.10administration is assigned to the license holder in the coordinated service and support
358.11plan or the coordinated service and support plan addendum, the license holder must
358.12implement the following medication administration procedures to ensure a person takes
358.13medications and treatments as prescribed For purposes of this subdivision, "medication
358.14administration" means:
358.15(1) checking the person's medication record;
358.16(2) preparing the medication as necessary;
358.17(3) administering the medication or treatment to the person;
358.18(4) documenting the administration of the medication or treatment or the reason for
358.19not administering the medication or treatment; and
358.20(5) reporting to the prescriber or a nurse any concerns about the medication or
358.21treatment, including side effects, effectiveness, or a pattern of the person refusing to
358.22take the medication or treatment as prescribed. Adverse reactions must be immediately
358.23reported to the prescriber or a nurse.
358.24(b)(1) If responsibility for medication administration is assigned to the license holder
358.25in the coordinated service and support plan or the coordinated service and support plan
358.26addendum, the license holder must implement medication administration procedures
358.27to ensure a person takes medications and treatments as prescribed. The license holder
358.28must ensure that the requirements in clauses (2) to (4) and (3) have been met before
358.29administering medication or treatment.
358.30(2) The license holder must obtain written authorization from the person or the
358.31person's legal representative to administer medication or treatment and must obtain
358.32reauthorization annually as needed. This authorization shall remain in effect unless it is
358.33withdrawn in writing and may be withdrawn at any time. If the person or the person's
358.34legal representative refuses to authorize the license holder to administer medication, the
359.1medication must not be administered. The refusal to authorize medication administration
359.2must be reported to the prescriber as expediently as possible.
359.3(3) The staff person responsible for administering the medication or treatment must
359.4complete medication administration training according to section 245D.09, subdivision
359.5 4a, paragraphs (a) and (c), and, as applicable to the person, paragraph (d).
359.6(4) (3) For a license holder providing intensive support services, the medication or
359.7treatment must be administered according to the license holder's medication administration
359.8policy and procedures as required under section 245D.11, subdivision 2, clause (3).
359.9(c) The license holder must ensure the following information is documented in the
359.10person's medication administration record:
359.11(1) the information on the current prescription label or the prescriber's current
359.12written or electronically recorded order or prescription that includes the person's name,
359.13description of the medication or treatment to be provided, and the frequency and other
359.14information needed to safely and correctly administer the medication or treatment to
359.15ensure effectiveness;
359.16(2) information on any risks or other side effects that are reasonable to expect, and
359.17any contraindications to its use. This information must be readily available to all staff
359.18administering the medication;
359.19(3) the possible consequences if the medication or treatment is not taken or
359.20administered as directed;
359.21(4) instruction on when and to whom to report the following:
359.22(i) if a dose of medication is not administered or treatment is not performed as
359.23prescribed, whether by error by the staff or the person or by refusal by the person; and
359.24(ii) the occurrence of possible adverse reactions to the medication or treatment;
359.25(5) notation of any occurrence of a dose of medication not being administered or
359.26treatment not performed as prescribed, whether by error by the staff or the person or by
359.27refusal by the person, or of adverse reactions, and when and to whom the report was
359.28made; and
359.29(6) notation of when a medication or treatment is started, administered, changed, or
359.30discontinued.

359.31    Sec. 25. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 4, is
359.32amended to read:
359.33    Subd. 4. Reviewing and reporting medication and treatment issues. (a) When
359.34assigned responsibility for medication administration, the license holder must ensure
359.35that the information maintained in the medication administration record is current and
360.1is regularly reviewed to identify medication administration errors. At a minimum, the
360.2review must be conducted every three months, or more frequently as directed in the
360.3coordinated service and support plan or coordinated service and support plan addendum
360.4or as requested by the person or the person's legal representative. Based on the review,
360.5the license holder must develop and implement a plan to correct patterns of medication
360.6administration errors when identified.
360.7(b) If assigned responsibility for medication assistance or medication administration,
360.8the license holder must report the following to the person's legal representative and case
360.9manager as they occur or as otherwise directed in the coordinated service and support plan
360.10or the coordinated service and support plan addendum:
360.11(1) any reports made to the person's physician or prescriber required under
360.12subdivision 2, paragraph (c), clause (4);
360.13(2) a person's refusal or failure to take or receive medication or treatment as
360.14prescribed; or
360.15(3) concerns about a person's self-administration of medication or treatment.

360.16    Sec. 26. Minnesota Statutes 2013 Supplement, section 245D.05, subdivision 5, is
360.17amended to read:
360.18    Subd. 5. Injectable medications. Injectable medications may be administered
360.19according to a prescriber's order and written instructions when one of the following
360.20conditions has been met:
360.21(1) a registered nurse or licensed practical nurse will administer the subcutaneous or
360.22intramuscular injection;
360.23(2) a supervising registered nurse with a physician's order has delegated the
360.24administration of subcutaneous injectable medication to an unlicensed staff member
360.25and has provided the necessary training; or
360.26(3) there is an agreement signed by the license holder, the prescriber, and the
360.27person or the person's legal representative specifying what subcutaneous injections may
360.28be given, when, how, and that the prescriber must retain responsibility for the license
360.29holder's giving the injections. A copy of the agreement must be placed in the person's
360.30service recipient record.
360.31Only licensed health professionals are allowed to administer psychotropic
360.32medications by injection.

360.33    Sec. 27. Minnesota Statutes 2013 Supplement, section 245D.051, is amended to read:
360.34245D.051 PSYCHOTROPIC MEDICATION USE AND MONITORING.
361.1    Subdivision 1. Conditions for psychotropic medication administration. (a)
361.2When a person is prescribed a psychotropic medication and the license holder is assigned
361.3responsibility for administration of the medication in the person's coordinated service
361.4and support plan or the coordinated service and support plan addendum, the license
361.5holder must ensure that the requirements in paragraphs (b) to (d) and section 245D.05,
361.6subdivision 2, are met.
361.7(b) Use of the medication must be included in the person's coordinated service and
361.8support plan or in the coordinated service and support plan addendum and based on a
361.9prescriber's current written or electronically recorded prescription.
361.10(c) (b) The license holder must develop, implement, and maintain the following
361.11documentation in the person's coordinated service and support plan addendum according
361.12to the requirements in sections 245D.07 and 245D.071:
361.13(1) a description of the target symptoms that the psychotropic medication is to
361.14alleviate; and
361.15(2) documentation methods the license holder will use to monitor and measure
361.16changes in the target symptoms that are to be alleviated by the psychotropic medication if
361.17required by the prescriber. The license holder must collect and report on medication and
361.18symptom-related data as instructed by the prescriber. The license holder must provide
361.19the monitoring data to the expanded support team for review every three months, or as
361.20otherwise requested by the person or the person's legal representative.
361.21For the purposes of this section, "target symptom" refers to any perceptible
361.22diagnostic criteria for a person's diagnosed mental disorder, as defined by the Diagnostic
361.23and Statistical Manual of Mental Disorders Fourth Edition Text Revision (DSM-IV-TR) or
361.24successive editions, that has been identified for alleviation.
361.25    Subd. 2. Refusal to authorize psychotropic medication. If the person or the
361.26person's legal representative refuses to authorize the administration of a psychotropic
361.27medication as ordered by the prescriber, the license holder must follow the requirement in
361.28section 245D.05, subdivision 2, paragraph (b), clause (2). not administer the medication.
361.29The refusal to authorize medication administration must be reported to the prescriber as
361.30expediently as possible. After reporting the refusal to the prescriber, the license holder
361.31must follow any directives or orders given by the prescriber. A court order must be
361.32obtained to override the refusal. A refusal may not be overridden without a court order.
361.33Refusal to authorize administration of a specific psychotropic medication is not grounds
361.34for service termination and does not constitute an emergency. A decision to terminate
361.35services must be reached in compliance with section 245D.10, subdivision 3.

362.1    Sec. 28. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 1, is
362.2amended to read:
362.3    Subdivision 1. Incident response and reporting. (a) The license holder must
362.4respond to incidents under section 245D.02, subdivision 11, that occur while providing
362.5services to protect the health and safety of and minimize risk of harm to the person.
362.6(b) The license holder must maintain information about and report incidents to the
362.7person's legal representative or designated emergency contact and case manager within
362.824 hours of an incident occurring while services are being provided, within 24 hours of
362.9discovery or receipt of information that an incident occurred, unless the license holder
362.10has reason to know that the incident has already been reported, or as otherwise directed
362.11in a person's coordinated service and support plan or coordinated service and support
362.12plan addendum. An incident of suspected or alleged maltreatment must be reported as
362.13required under paragraph (d), and an incident of serious injury or death must be reported
362.14as required under paragraph (e).
362.15(c) When the incident involves more than one person, the license holder must not
362.16disclose personally identifiable information about any other person when making the report
362.17to each person and case manager unless the license holder has the consent of the person.
362.18(d) Within 24 hours of reporting maltreatment as required under section 626.556
362.19or 626.557, the license holder must inform the case manager of the report unless there is
362.20reason to believe that the case manager is involved in the suspected maltreatment. The
362.21license holder must disclose the nature of the activity or occurrence reported and the
362.22agency that received the report.
362.23(e) The license holder must report the death or serious injury of the person as
362.24required in paragraph (b) and to the Department of Human Services Licensing Division,
362.25and the Office of Ombudsman for Mental Health and Developmental Disabilities as
362.26required under section 245.94, subdivision 2a, within 24 hours of the death, or receipt of
362.27information that the death occurred, unless the license holder has reason to know that the
362.28death has already been reported.
362.29(f) When a death or serious injury occurs in a facility certified as an intermediate
362.30care facility for persons with developmental disabilities, the death or serious injury must
362.31be reported to the Department of Health, Office of Health Facility Complaints, and the
362.32Office of Ombudsman for Mental Health and Developmental Disabilities, as required
362.33under sections 245.91 and 245.94, subdivision 2a, unless the license holder has reason to
362.34know that the death has already been reported.
362.35(g) The license holder must conduct an internal review of incident reports of deaths
362.36and serious injuries that occurred while services were being provided and that were not
363.1reported by the program as alleged or suspected maltreatment, for identification of incident
363.2patterns, and implementation of corrective action as necessary to reduce occurrences.
363.3The review must include an evaluation of whether related policies and procedures were
363.4followed, whether the policies and procedures were adequate, whether there is a need for
363.5additional staff training, whether the reported event is similar to past events with the
363.6persons or the services involved, and whether there is a need for corrective action by the
363.7license holder to protect the health and safety of persons receiving services. Based on
363.8the results of this review, the license holder must develop, document, and implement a
363.9corrective action plan designed to correct current lapses and prevent future lapses in
363.10performance by staff or the license holder, if any.
363.11(h) The license holder must verbally report the emergency use of manual restraint
363.12of a person as required in paragraph (b) within 24 hours of the occurrence. The license
363.13holder must ensure the written report and internal review of all incident reports of the
363.14emergency use of manual restraints are completed according to the requirements in section
363.15245D.061 or successor provisions.

363.16    Sec. 29. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 2, is
363.17amended to read:
363.18    Subd. 2. Environment and safety. The license holder must:
363.19(1) ensure the following when the license holder is the owner, lessor, or tenant
363.20of the service site:
363.21(i) the service site is a safe and hazard-free environment;
363.22(ii) that toxic substances or dangerous items are inaccessible to persons served by
363.23the program only to protect the safety of a person receiving services when a known safety
363.24threat exists and not as a substitute for staff supervision or interactions with a person who
363.25is receiving services. If toxic substances or dangerous items are made inaccessible, the
363.26license holder must document an assessment of the physical plant, its environment, and its
363.27population identifying the risk factors which require toxic substances or dangerous items
363.28to be inaccessible and a statement of specific measures to be taken to minimize the safety
363.29risk to persons receiving services and to restore accessibility to all persons receiving
363.30services at the service site;
363.31(iii) doors are locked from the inside to prevent a person from exiting only when
363.32necessary to protect the safety of a person receiving services and not as a substitute for
363.33staff supervision or interactions with the person. If doors are locked from the inside, the
363.34license holder must document an assessment of the physical plant, the environment and
363.35the population served, identifying the risk factors which require the use of locked doors,
364.1and a statement of specific measures to be taken to minimize the safety risk to persons
364.2receiving services at the service site; and
364.3(iv) a staff person is available at the service site who is trained in basic first aid and,
364.4when required in a person's coordinated service and support plan or coordinated service
364.5and support plan addendum, cardiopulmonary resuscitation (CPR) whenever persons are
364.6present and staff are required to be at the site to provide direct support service. The CPR
364.7training must include in-person instruction, hands-on practice, and an observed skills
364.8assessment under the direct supervision of a CPR instructor;
364.9(2) maintain equipment, vehicles, supplies, and materials owned or leased by the
364.10license holder in good condition when used to provide services;
364.11(3) follow procedures to ensure safe transportation, handling, and transfers of the
364.12person and any equipment used by the person, when the license holder is responsible for
364.13transportation of a person or a person's equipment;
364.14(4) be prepared for emergencies and follow emergency response procedures to
364.15ensure the person's safety in an emergency; and
364.16(5) follow universal precautions and sanitary practices, including hand washing, for
364.17infection prevention and control, and to prevent communicable diseases.

364.18    Sec. 30. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 4, is
364.19amended to read:
364.20    Subd. 4. Funds and property; legal representative restrictions. (a) Whenever the
364.21license holder assists a person with the safekeeping of funds or other property according
364.22to section 245A.04, subdivision 13, the license holder must obtain written authorization
364.23to do so from the person or the person's legal representative and the case manager.
364.24Authorization must be obtained within five working days of service initiation and renewed
364.25annually thereafter. At the time initial authorization is obtained, the license holder must
364.26survey, document, and implement the preferences of the person or the person's legal
364.27representative and the case manager for frequency of receiving a statement that itemizes
364.28receipts and disbursements of funds or other property. The license holder must document
364.29changes to these preferences when they are requested.
364.30(b) A license holder or staff person may not accept powers-of-attorney from a person
364.31receiving services from the license holder for any purpose. This does not apply to license
364.32holders that are Minnesota counties or other units of government or to staff persons
364.33employed by license holders who were acting as attorney-in-fact for specific individuals
364.34prior to implementation of this chapter. The license holder must maintain documentation
364.35of the power-of-attorney in the service recipient record.
365.1(c) A license holder or staff person is restricted from accepting an appointment
365.2as a guardian as follows:
365.3(1) under section 524.5-309 of the Uniform Probate Code, any individual or agency
365.4that provides residence, custodial care, medical care, employment training, or other care
365.5or services for which the individual or agency receives a fee may not be appointed as
365.6guardian unless related to the respondent by blood, marriage, or adoption; and
365.7(2) under section 245A.03, subdivision 2, paragraph (a), clause (1), a related
365.8individual as defined under section 245A.02, subdivision 13, is excluded from licensure.
365.9Services provided by a license holder to a person under the license holder's guardianship
365.10are not licensed services.
365.11(c) (d) Upon the transfer or death of a person, any funds or other property of the
365.12person must be surrendered to the person or the person's legal representative, or given to
365.13the executor or administrator of the estate in exchange for an itemized receipt.

365.14    Sec. 31. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 6, is
365.15amended to read:
365.16    Subd. 6. Restricted procedures. (a) The following procedures are allowed when
365.17the procedures are implemented in compliance with the standards governing their use as
365.18identified in clauses (1) to (3). Allowed but restricted procedures include:
365.19(1) permitted actions and procedures subject to the requirements in subdivision 7;
365.20(2) procedures identified in a positive support transition plan subject to the
365.21requirements in subdivision 8; or
365.22(3) emergency use of manual restraint subject to the requirements in section
365.23245D.061 .
365.24For purposes of this chapter, this section supersedes the requirements identified in
365.25Minnesota Rules, part 9525.2740.
365.26    (b) A restricted procedure identified in paragraph (a) must not:
365.27    (1) be implemented with a child in a manner that constitutes sexual abuse, neglect,
365.28physical abuse, or mental injury, as defined in section 626.556, subdivision 2;
365.29(2) be implemented with an adult in a manner that constitutes abuse or neglect as
365.30defined in section 626.5572, subdivision 2 or 17;
365.31(3) be implemented in a manner that violates a person's rights identified in section
365.32245D.04;
365.33(4) restrict a person's normal access to a nutritious diet, drinking water, adequate
365.34ventilation, necessary medical care, ordinary hygiene facilities, normal sleeping
366.1conditions, necessary clothing, or any protection required by state licensing standards or
366.2federal regulations governing the program;
366.3(5) deny the person visitation or ordinary contact with legal counsel, a legal
366.4representative, or next of kin;
366.5(6) be used for the convenience of staff, as punishment, as a substitute for adequate
366.6staffing, or as a consequence if the person refuses to participate in the treatment or services
366.7provided by the program;
366.8(7) use prone restraint. For purposes of this section, "prone restraint" means use
366.9of manual restraint that places a person in a face-down position. Prone restraint does
366.10not include brief physical holding of a person who, during an emergency use of manual
366.11restraint, rolls into a prone position, if the person is restored to a standing, sitting, or
366.12side-lying position as quickly as possible;
366.13(8) apply back or chest pressure while a person is in a prone position as identified in
366.14clause (7), supine position, or side-lying position; or
366.15(9) be implemented in a manner that is contraindicated for any of the person's known
366.16medical or psychological limitations.

366.17    Sec. 32. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 7, is
366.18amended to read:
366.19    Subd. 7. Permitted actions and procedures. (a) Use of the instructional techniques
366.20and intervention procedures as identified in paragraphs (b) and (c) is permitted when used
366.21on an intermittent or continuous basis. When used on a continuous basis, it must be
366.22addressed in a person's coordinated service and support plan addendum as identified in
366.23sections 245D.07 and 245D.071. For purposes of this chapter, the requirements of this
366.24subdivision supersede the requirements identified in Minnesota Rules, part 9525.2720.
366.25(b) Physical contact or instructional techniques must use the least restrictive
366.26alternative possible to meet the needs of the person and may be used:
366.27(1) to calm or comfort a person by holding that person with no resistance from
366.28that person;
366.29(2) to protect a person known to be at risk or of injury due to frequent falls as a result
366.30of a medical condition;
366.31(3) to facilitate the person's completion of a task or response when the person does
366.32not resist or the person's resistance is minimal in intensity and duration; or
366.33(4) to briefly block or redirect a person's limbs or body without holding the person or
366.34limiting the person's movement to interrupt the person's behavior that may result in injury
366.35to self or others. with less than 60 seconds of physical contact by staff; or
367.1(5) to redirect a person's behavior when the behavior does not pose a serious threat
367.2to the person or others and the behavior is effectively redirected with less than 60 seconds
367.3of physical contact by staff.
367.4(c) Restraint may be used as an intervention procedure to:
367.5(1) allow a licensed health care professional to safely conduct a medical examination
367.6or to provide medical treatment ordered by a licensed health care professional to a person
367.7necessary to promote healing or recovery from an acute, meaning short-term, medical
367.8condition;
367.9(2) assist in the safe evacuation or redirection of a person in the event of an
367.10emergency and the person is at imminent risk of harm.; or
367.11Any use of manual restraint as allowed in this paragraph must comply with the restrictions
367.12identified in section 245D.061, subdivision 3; or
367.13(3) position a person with physical disabilities in a manner specified in the person's
367.14coordinated service and support plan addendum.
367.15Any use of manual restraint as allowed in this paragraph must comply with the restrictions
367.16identified in subdivision 6, paragraph (b).
367.17(d) Use of adaptive aids or equipment, orthotic devices, or other medical equipment
367.18ordered by a licensed health professional to treat a diagnosed medical condition do not in
367.19and of themselves constitute the use of mechanical restraint.
367.20(e) Use of an auxiliary device to ensure a person does not unfasten a seat belt when
367.21being transported in a vehicle in accordance with seat belt use requirements in section
367.22169.686 does not constitute the use of mechanical restraint.

367.23    Sec. 33. Minnesota Statutes 2013 Supplement, section 245D.06, subdivision 8, is
367.24amended to read:
367.25    Subd. 8. Positive support transition plan. (a) License holders must develop
367.26a positive support transition plan on the forms and in the manner prescribed by the
367.27commissioner for a person who requires intervention in order to maintain safety when
367.28it is known that the person's behavior poses an immediate risk of physical harm to self
367.29or others. The positive support transition plan forms and instructions will supersede the
367.30requirements in Minnesota Rules, parts 9525.2750; 9525.2760; and 9525.2780. The
367.31positive support transition plan must phase out any existing plans for the emergency
367.32or programmatic use of aversive or deprivation procedures restrictive interventions
367.33 prohibited under this chapter within the following timelines:
368.1(1) for persons receiving services from the license holder before January 1, 2014,
368.2the plan must be developed and implemented by February 1, 2014, and phased out no
368.3later than December 31, 2014; and
368.4(2) for persons admitted to the program on or after January 1, 2014, the plan must be
368.5developed and implemented within 30 calendar days of service initiation and phased out
368.6no later than 11 months from the date of plan implementation.
368.7(b) The commissioner has limited authority to grant approval for the emergency use
368.8of procedures identified in subdivision 6 that had been part of an approved positive support
368.9transition plan when a person is at imminent risk of serious injury as defined in section
368.10245.91, subdivision 6, due to self-injurious behavior and the following conditions are met:
368.11(1) the person's expanded support team approves the emergency use of the
368.12procedures; and
368.13(2) the interim review panel established in section 245.8251, subdivision 4,
368.14recommends commissioner approval of the emergency use of the procedures.
368.15(c) Written requests for the emergency use of the procedures must be developed
368.16and submitted to the commissioner by the designated coordinator with input from the
368.17person's expanded support team in accordance with the requirements set by the interim
368.18review panel, in addition to the following:
368.19(1) a copy of the person's current positive support transition plan and copies of
368.20each positive support transition plan review containing data on the progress of the plan
368.21from the previous year;
368.22(2) documentation of a good faith effort to eliminate the use of the procedures that
368.23had been part of an approved positive support transition plan;
368.24(3) justification for the continued use of the procedures that identifies the imminent
368.25risk of serious injury due to the person's self-injurious behavior if the procedures were
368.26eliminated;
368.27(4) documentation of the clinicians consulted in creating and maintaining the
368.28positive support transition plan; and
368.29(5) documentation of the expanded support team's approval and the recommendation
368.30from the interim panel required under paragraph (b).
368.31(d) A copy of the written request, supporting documentation, and the commissioner's
368.32final determination on the request must be maintained in the person's service recipient
368.33record.

368.34    Sec. 34. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 3,
368.35is amended to read:
369.1    Subd. 3. Assessment and initial service planning. (a) Within 15 days of service
369.2initiation the license holder must complete a preliminary coordinated service and support
369.3plan addendum based on the coordinated service and support plan.
369.4(b) Within 45 days of service initiation the license holder must meet with the person,
369.5the person's legal representative, the case manager, and other members of the support team
369.6or expanded support team to assess and determine the following based on the person's
369.7coordinated service and support plan and the requirements in subdivision 4 and section
369.8245D.07, subdivision 1a:
369.9(1) the scope of the services to be provided to support the person's daily needs
369.10and activities;
369.11(2) the person's desired outcomes and the supports necessary to accomplish the
369.12person's desired outcomes;
369.13(3) the person's preferences for how services and supports are provided;
369.14(4) whether the current service setting is the most integrated setting available and
369.15appropriate for the person; and
369.16(5) how services must be coordinated across other providers licensed under this
369.17chapter serving the same person to ensure continuity of care for the person.
369.18(c) Within the scope of services, the license holder must, at a minimum, assess
369.19the following areas:
369.20(1) the person's ability to self-manage health and medical needs to maintain or
369.21improve physical, mental, and emotional well-being, including, when applicable, allergies,
369.22seizures, choking, special dietary needs, chronic medical conditions, self-administration
369.23of medication or treatment orders, preventative screening, and medical and dental
369.24appointments;
369.25(2) the person's ability to self-manage personal safety to avoid injury or accident in
369.26the service setting, including, when applicable, risk of falling, mobility, regulating water
369.27temperature, community survival skills, water safety skills, and sensory disabilities; and
369.28(3) the person's ability to self-manage symptoms or behavior that may otherwise
369.29result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to
369.30(7), suspension or termination of services by the license holder, or other symptoms
369.31or behaviors that may jeopardize the health and safety of the person or others. The
369.32assessments must produce information about the person that is descriptive of the person's
369.33overall strengths, functional skills and abilities, and behaviors or symptoms.
369.34(b) Within the scope of services, the license holder must, at a minimum, complete
369.35assessments in the following areas before the 45-day planning meeting:
370.1(1) the person's ability to self-manage health and medical needs to maintain or
370.2improve physical, mental, and emotional well-being, including, when applicable, allergies,
370.3seizures, choking, special dietary needs, chronic medical conditions, self-administration
370.4of medication or treatment orders, preventative screening, and medical and dental
370.5appointments;
370.6(2) the person's ability to self-manage personal safety to avoid injury or accident in
370.7the service setting, including, when applicable, risk of falling, mobility, regulating water
370.8temperature, community survival skills, water safety skills, and sensory disabilities; and
370.9(3) the person's ability to self-manage symptoms or behavior that may otherwise
370.10result in an incident as defined in section 245D.02, subdivision 11, clauses (4) to (7),
370.11suspension or termination of services by the license holder, or other symptoms or
370.12behaviors that may jeopardize the health and safety of the person or others.
370.13Assessments must produce information about the person that describes the person's overall
370.14strengths, functional skills and abilities, and behaviors or symptoms. Assessments must
370.15be based on the person's status within the last 12 months at the time of service initiation.
370.16Assessments based on older information must be documented and justified. Assessments
370.17must be conducted annually at a minimum or within 30 days of a written request from the
370.18person or the person's legal representative or case manager. The results must be reviewed
370.19by the support team or expanded support team as part of a service plan review.
370.20(c) Within 45 days of service initiation, the license holder must meet with the
370.21person, the person's legal representative, the case manager, and other members of the
370.22support team or expanded support team to determine the following based on information
370.23obtained from the assessments identified in paragraph (b), the person's identified needs
370.24in the coordinated service and support plan, and the requirements in subdivision 4 and
370.25section 245D.07, subdivision 1a:
370.26(1) the scope of the services to be provided to support the person's daily needs
370.27and activities;
370.28(2) the person's desired outcomes and the supports necessary to accomplish the
370.29person's desired outcomes;
370.30(3) the person's preferences for how services and supports are provided;
370.31(4) whether the current service setting is the most integrated setting available and
370.32appropriate for the person; and
370.33(5) how services must be coordinated across other providers licensed under this
370.34chapter serving the person and members of the support team or expanded support team to
370.35ensure continuity of care and coordination of services for the person.

371.1    Sec. 35. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 4,
371.2is amended to read:
371.3    Subd. 4. Service outcomes and supports. (a) Within ten working days of the
371.445-day planning meeting, the license holder must develop and document a service plan that
371.5documents the service outcomes and supports based on the assessments completed under
371.6subdivision 3 and the requirements in section 245D.07, subdivision 1a. The outcomes and
371.7supports must be included in the coordinated service and support plan addendum.
371.8(b) The license holder must document the supports and methods to be implemented
371.9to support the accomplishment of person and accomplish outcomes related to acquiring,
371.10retaining, or improving skills and physical, mental, and emotional health and well-being.
371.11The documentation must include:
371.12(1) the methods or actions that will be used to support the person and to accomplish
371.13the service outcomes, including information about:
371.14(i) any changes or modifications to the physical and social environments necessary
371.15when the service supports are provided;
371.16(ii) any equipment and materials required; and
371.17(iii) techniques that are consistent with the person's communication mode and
371.18learning style;
371.19(2) the measurable and observable criteria for identifying when the desired outcome
371.20has been achieved and how data will be collected;
371.21(3) the projected starting date for implementing the supports and methods and
371.22the date by which progress towards accomplishing the outcomes will be reviewed and
371.23evaluated; and
371.24(4) the names of the staff or position responsible for implementing the supports
371.25and methods.
371.26(c) Within 20 working days of the 45-day meeting, the license holder must obtain
371.27dated signatures from the person or the person's legal representative and case manager
371.28to document completion and approval of the assessment and coordinated service and
371.29support plan addendum.

371.30    Sec. 36. Minnesota Statutes 2013 Supplement, section 245D.071, subdivision 5,
371.31is amended to read:
371.32    Subd. 5. Progress reviews Service plan review and evaluation. (a) The license
371.33holder must give the person or the person's legal representative and case manager an
371.34opportunity to participate in the ongoing review and development of the service plan
371.35and the methods used to support the person and accomplish outcomes identified in
372.1subdivisions 3 and 4. The license holder, in coordination with the person's support team
372.2or expanded support team, must meet with the person, the person's legal representative,
372.3and the case manager, and participate in progress service plan review meetings following
372.4stated timelines established in the person's coordinated service and support plan or
372.5coordinated service and support plan addendum or within 30 days of a written request
372.6by the person, the person's legal representative, or the case manager, at a minimum of
372.7once per year. The purpose of the service plan review is to determine whether changes
372.8are needed to the service plan based on the assessment information, the license holder's
372.9evaluation of progress towards accomplishing outcomes, or other information provided by
372.10the support team or expanded support team.
372.11(b) The license holder must summarize the person's status and progress toward
372.12achieving the identified outcomes and make recommendations and identify the rationale
372.13for changing, continuing, or discontinuing implementation of supports and methods
372.14identified in subdivision 4 in a written report sent to the person or the person's legal
372.15representative and case manager five working days prior to the review meeting, unless
372.16the person, the person's legal representative, or the case manager requests to receive the
372.17report at the time of the meeting.
372.18(c) Within ten working days of the progress review meeting, the license holder
372.19must obtain dated signatures from the person or the person's legal representative and
372.20the case manager to document approval of any changes to the coordinated service and
372.21support plan addendum.

372.22    Sec. 37. Minnesota Statutes 2013 Supplement, section 245D.081, subdivision 2,
372.23is amended to read:
372.24    Subd. 2. Coordination and evaluation of individual service delivery. (a) Delivery
372.25and evaluation of services provided by the license holder must be coordinated by a
372.26designated staff person. The designated coordinator must provide supervision, support,
372.27and evaluation of activities that include:
372.28(1) oversight of the license holder's responsibilities assigned in the person's
372.29coordinated service and support plan and the coordinated service and support plan
372.30addendum;
372.31(2) taking the action necessary to facilitate the accomplishment of the outcomes
372.32according to the requirements in section 245D.07;
372.33(3) instruction and assistance to direct support staff implementing the coordinated
372.34service and support plan and the service outcomes, including direct observation of service
372.35delivery sufficient to assess staff competency; and
373.1(4) evaluation of the effectiveness of service delivery, methodologies, and progress on
373.2the person's outcomes based on the measurable and observable criteria for identifying when
373.3the desired outcome has been achieved according to the requirements in section 245D.07.
373.4(b) The license holder must ensure that the designated coordinator is competent to
373.5perform the required duties identified in paragraph (a) through education and, training
373.6in human services and disability-related fields, and work experience in providing direct
373.7care services and supports to persons with disabilities relevant to the needs of the general
373.8population of persons served by the license holder and the individual persons for whom
373.9the designated coordinator is responsible. The designated coordinator must have the
373.10skills and ability necessary to develop effective plans and to design and use data systems
373.11to measure effectiveness of services and supports. The license holder must verify and
373.12document competence according to the requirements in section 245D.09, subdivision 3.
373.13The designated coordinator must minimally have:
373.14(1) a baccalaureate degree in a field related to human services, and one year of
373.15full-time work experience providing direct care services to persons with disabilities or
373.16persons age 65 and older;
373.17(2) an associate degree in a field related to human services, and two years of
373.18full-time work experience providing direct care services to persons with disabilities or
373.19persons age 65 and older;
373.20(3) a diploma in a field related to human services from an accredited postsecondary
373.21institution and three years of full-time work experience providing direct care services to
373.22persons with disabilities or persons age 65 and older; or
373.23(4) a minimum of 50 hours of education and training related to human services
373.24and disabilities; and
373.25(5) four years of full-time work experience providing direct care services to persons
373.26with disabilities or persons age 65 and older under the supervision of a staff person who
373.27meets the qualifications identified in clauses (1) to (3).

373.28    Sec. 38. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 3, is
373.29amended to read:
373.30    Subd. 3. Staff qualifications. (a) The license holder must ensure that staff providing
373.31direct support, or staff who have responsibilities related to supervising or managing the
373.32provision of direct support service, are competent as demonstrated through skills and
373.33knowledge training, experience, and education to meet the person's needs and additional
373.34requirements as written in the coordinated service and support plan or coordinated
373.35service and support plan addendum, or when otherwise required by the case manager or
374.1the federal waiver plan. The license holder must verify and maintain evidence of staff
374.2competency, including documentation of:
374.3(1) education and experience qualifications relevant to the job responsibilities
374.4assigned to the staff and to the needs of the general population of persons served by the
374.5program, including a valid degree and transcript, or a current license, registration, or
374.6certification, when a degree or licensure, registration, or certification is required by this
374.7chapter or in the coordinated service and support plan or coordinated service and support
374.8plan addendum;
374.9(2) demonstrated competency in the orientation and training areas required under
374.10this chapter, and when applicable, completion of continuing education required to
374.11maintain professional licensure, registration, or certification requirements. Competency in
374.12these areas is determined by the license holder through knowledge testing and or observed
374.13skill assessment conducted by the trainer or instructor; and
374.14(3) except for a license holder who is the sole direct support staff, periodic
374.15performance evaluations completed by the license holder of the direct support staff
374.16person's ability to perform the job functions based on direct observation.
374.17(b) Staff under 18 years of age may not perform overnight duties or administer
374.18medication.

374.19    Sec. 39. Minnesota Statutes 2013 Supplement, section 245D.09, subdivision 4a,
374.20is amended to read:
374.21    Subd. 4a. Orientation to individual service recipient needs. (a) Before having
374.22unsupervised direct contact with a person served by the program, or for whom the staff
374.23person has not previously provided direct support, or any time the plans or procedures
374.24identified in paragraphs (b) to (f) (g) are revised, the staff person must review and receive
374.25instruction on the requirements in paragraphs (b) to (f) (g) as they relate to the staff
374.26person's job functions for that person.
374.27(b) Training and competency evaluations must include the following:
374.28(1) appropriate and safe techniques in personal hygiene and grooming, including
374.29hair care; bathing; care of teeth, gums, and oral prosthetic devices; and other activities of
374.30daily living (ADLs) as defined under section 256B.0659, subdivision 1;
374.31(2) an understanding of what constitutes a healthy diet according to data from the
374.32Centers for Disease Control and Prevention and the skills necessary to prepare that diet;
374.33(3) skills necessary to provide appropriate support in instrumental activities of daily
374.34living (IADLs) as defined under section 256B.0659, subdivision 1; and
374.35(4) demonstrated competence in providing first aid.
375.1(c) The staff person must review and receive instruction on the person's coordinated
375.2service and support plan or coordinated service and support plan addendum as it relates
375.3to the responsibilities assigned to the license holder, and when applicable, the person's
375.4individual abuse prevention plan, to achieve and demonstrate an understanding of the
375.5person as a unique individual, and how to implement those plans.
375.6(d) The staff person must review and receive instruction on medication setup,
375.7assistance, or administration procedures established for the person when medication
375.8administration is assigned to the license holder according to section 245D.05, subdivision
375.91 , paragraph (b). Unlicensed staff may administer medications perform medication setup
375.10or medication administration only after successful completion of a medication setup or
375.11medication administration training, from a training curriculum developed by a registered
375.12nurse, clinical nurse specialist in psychiatric and mental health nursing, certified nurse
375.13practitioner, physician's assistant, or physician or appropriate licensed health professional.
375.14The training curriculum must incorporate an observed skill assessment conducted by the
375.15trainer to ensure unlicensed staff demonstrate the ability to safely and correctly follow
375.16medication procedures.
375.17Medication administration must be taught by a registered nurse, clinical nurse
375.18specialist, certified nurse practitioner, physician's assistant, or physician if, at the time of
375.19service initiation or any time thereafter, the person has or develops a health care condition
375.20that affects the service options available to the person because the condition requires:
375.21(1) specialized or intensive medical or nursing supervision; and
375.22(2) nonmedical service providers to adapt their services to accommodate the health
375.23and safety needs of the person.
375.24(e) The staff person must review and receive instruction on the safe and correct
375.25operation of medical equipment used by the person to sustain life, including but not
375.26limited to ventilators, feeding tubes, or endotracheal tubes. The training must be provided
375.27by a licensed health care professional or a manufacturer's representative and incorporate
375.28an observed skill assessment to ensure staff demonstrate the ability to safely and correctly
375.29operate the equipment according to the treatment orders and the manufacturer's instructions.
375.30(f) The staff person must review and receive instruction on what constitutes use of
375.31restraints, time out, and seclusion, including chemical restraint, and staff responsibilities
375.32related to the prohibitions of their use according to the requirements in section 245D.06,
375.33subdivision 5 or successor provisions, why such procedures are not effective for reducing
375.34or eliminating symptoms or undesired behavior and why they are not safe, and the safe
375.35and correct use of manual restraint on an emergency basis according to the requirements
375.36in section 245D.061 or successor provisions.
376.1(g) The staff person must review and receive instruction on mental health crisis
376.2response, de-escalation techniques, and suicide intervention when providing direct support
376.3to a person with a serious mental illness.
376.4(g) (h) In the event of an emergency service initiation, the license holder must ensure
376.5the training required in this subdivision occurs within 72 hours of the direct support staff
376.6person first having unsupervised contact with the person receiving services. The license
376.7holder must document the reason for the unplanned or emergency service initiation and
376.8maintain the documentation in the person's service recipient record.
376.9(h) (i) License holders who provide direct support services themselves must
376.10complete the orientation required in subdivision 4, clauses (3) to (7).

376.11    Sec. 40. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 2,
376.12is amended to read:
376.13    Subd. 2. Behavior professional qualifications. A behavior professional providing
376.14behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c),
376.15clause (1), item (i), as defined in the brain injury and community alternatives for disabled
376.16individuals waiver plans or successor plans, must have competencies in the following
376.17areas related to as required under the brain injury and community alternatives for disabled
376.18individuals waiver plans or successor plans:
376.19(1) ethical considerations;
376.20(2) functional assessment;
376.21(3) functional analysis;
376.22(4) measurement of behavior and interpretation of data;
376.23(5) selecting intervention outcomes and strategies;
376.24(6) behavior reduction and elimination strategies that promote least restrictive
376.25approved alternatives;
376.26(7) data collection;
376.27(8) staff and caregiver training;
376.28(9) support plan monitoring;
376.29(10) co-occurring mental disorders or neurocognitive disorder;
376.30(11) demonstrated expertise with populations being served; and
376.31(12) must be a:
376.32(i) psychologist licensed under sections 148.88 to 148.98, who has stated to the
376.33Board of Psychology competencies in the above identified areas;
376.34(ii) clinical social worker licensed as an independent clinical social worker under
376.35chapter 148D, or a person with a master's degree in social work from an accredited college
377.1or university, with at least 4,000 hours of post-master's supervised experience in the
377.2delivery of clinical services in the areas identified in clauses (1) to (11);
377.3(iii) physician licensed under chapter 147 and certified by the American Board
377.4of Psychiatry and Neurology or eligible for board certification in psychiatry with
377.5competencies in the areas identified in clauses (1) to (11);
377.6(iv) licensed professional clinical counselor licensed under sections 148B.29 to
377.7148B.39 with at least 4,000 hours of post-master's supervised experience in the delivery
377.8of clinical services who has demonstrated competencies in the areas identified in clauses
377.9(1) to (11);
377.10(v) person with a master's degree from an accredited college or university in one
377.11of the behavioral sciences or related fields, with at least 4,000 hours of post-master's
377.12supervised experience in the delivery of clinical services with demonstrated competencies
377.13in the areas identified in clauses (1) to (11); or
377.14(vi) registered nurse who is licensed under sections 148.171 to 148.285, and who is
377.15certified as a clinical specialist or as a nurse practitioner in adult or family psychiatric and
377.16mental health nursing by a national nurse certification organization, or who has a master's
377.17degree in nursing or one of the behavioral sciences or related fields from an accredited
377.18college or university or its equivalent, with at least 4,000 hours of post-master's supervised
377.19experience in the delivery of clinical services.

377.20    Sec. 41. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 3,
377.21is amended to read:
377.22    Subd. 3. Behavior analyst qualifications. (a) A behavior analyst providing
377.23behavioral support services as identified in section 245D.03, subdivision 1, paragraph
377.24(c), clause (1), item (i), as defined in the brain injury and community alternatives for
377.25disabled individuals waiver plans or successor plans, must have competencies in the
377.26following areas as required under the brain injury and community alternatives for disabled
377.27individuals waiver plans or successor plans:
377.28(1) have obtained a baccalaureate degree, master's degree, or PhD in a social services
377.29discipline; or
377.30(2) meet the qualifications of a mental health practitioner as defined in section
377.31245.462, subdivision 17 .
377.32(b) In addition, a behavior analyst must:
377.33(1) have four years of supervised experience working with individuals who exhibit
377.34challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder;
378.1(2) have received ten hours of instruction in functional assessment and functional
378.2analysis;
378.3(3) have received 20 hours of instruction in the understanding of the function of
378.4behavior;
378.5(4) have received ten hours of instruction on design of positive practices behavior
378.6support strategies;
378.7(5) have received 20 hours of instruction on the use of behavior reduction approved
378.8strategies used only in combination with behavior positive practices strategies;
378.9(6) be determined by a behavior professional to have the training and prerequisite
378.10skills required to provide positive practice strategies as well as behavior reduction
378.11approved and permitted intervention to the person who receives behavioral support; and
378.12(7) be under the direct supervision of a behavior professional.

378.13    Sec. 42. Minnesota Statutes 2013 Supplement, section 245D.091, subdivision 4,
378.14is amended to read:
378.15    Subd. 4. Behavior specialist qualifications. (a) A behavior specialist providing
378.16behavioral support services as identified in section 245D.03, subdivision 1, paragraph (c),
378.17clause (1), item (i), as defined in the brain injury and community alternatives for disabled
378.18individuals waiver plans or successor plans, must meet the following qualifications have
378.19competencies in the following areas as required under the brain injury and community
378.20alternatives for disabled individuals waiver plans or successor plans:
378.21(1) have an associate's degree in a social services discipline; or
378.22(2) have two years of supervised experience working with individuals who exhibit
378.23challenging behaviors as well as co-occurring mental disorders or neurocognitive disorder.
378.24(b) In addition, a behavior specialist must:
378.25(1) have received a minimum of four hours of training in functional assessment;
378.26(2) have received 20 hours of instruction in the understanding of the function of
378.27behavior;
378.28(3) have received ten hours of instruction on design of positive practices behavioral
378.29support strategies;
378.30(4) be determined by a behavior professional to have the training and prerequisite
378.31skills required to provide positive practices strategies as well as behavior reduction
378.32approved intervention to the person who receives behavioral support; and
378.33(5) be under the direct supervision of a behavior professional.

379.1    Sec. 43. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 3, is
379.2amended to read:
379.3    Subd. 3. Service suspension and service termination. (a) The license holder must
379.4establish policies and procedures for temporary service suspension and service termination
379.5that promote continuity of care and service coordination with the person and the case
379.6manager and with other licensed caregivers, if any, who also provide support to the person.
379.7(b) The policy must include the following requirements:
379.8(1) the license holder must notify the person or the person's legal representative and
379.9case manager in writing of the intended termination or temporary service suspension, and
379.10the person's right to seek a temporary order staying the termination of service according to
379.11the procedures in section 256.045, subdivision 4a, or 6, paragraph (c);
379.12(2) notice of the proposed termination of services, including those situations that
379.13began with a temporary service suspension, must be given at least 60 days before the
379.14proposed termination is to become effective when a license holder is providing intensive
379.15supports and services identified in section 245D.03, subdivision 1, paragraph (c), and 30
379.16days prior to termination for all other services licensed under this chapter. This notice
379.17may be given in conjunction with a notice of temporary service suspension;
379.18(3) notice of temporary service suspension must be given on the first day of the
379.19service suspension;
379.20(3) (4) the license holder must provide information requested by the person or case
379.21manager when services are temporarily suspended or upon notice of termination;
379.22(4) (5) prior to giving notice of service termination or temporary service suspension,
379.23the license holder must document actions taken to minimize or eliminate the need for
379.24service suspension or termination;
379.25(5) (6) during the temporary service suspension or service termination notice period,
379.26the license holder will must work with the appropriate county agency support team or
379.27expanded support team to develop reasonable alternatives to protect the person and others;
379.28(6) (7) the license holder must maintain information about the service suspension or
379.29termination, including the written termination notice, in the service recipient record; and
379.30(7) (8) the license holder must restrict temporary service suspension to situations in
379.31which the person's conduct poses an imminent risk of physical harm to self or others and
379.32less restrictive or positive support strategies would not achieve and maintain safety.

379.33    Sec. 44. Minnesota Statutes 2013 Supplement, section 245D.10, subdivision 4, is
379.34amended to read:
380.1    Subd. 4. Availability of current written policies and procedures. (a) The license
380.2holder must review and update, as needed, the written policies and procedures required
380.3under this chapter.
380.4(b) (1) The license holder must inform the person and case manager of the policies
380.5and procedures affecting a person's rights under section 245D.04, and provide copies of
380.6those policies and procedures, within five working days of service initiation.
380.7(2) If a license holder only provides basic services and supports, this includes the:
380.8(i) grievance policy and procedure required under subdivision 2; and
380.9(ii) service suspension and termination policy and procedure required under
380.10subdivision 3.
380.11(3) For all other license holders this includes the:
380.12(i) policies and procedures in clause (2);
380.13(ii) emergency use of manual restraints policy and procedure required under section
380.14245D.061, subdivision 10, or successor provisions ; and
380.15(iii) data privacy requirements under section 245D.11, subdivision 3.
380.16(c) The license holder must provide a written notice to all persons or their legal
380.17representatives and case managers at least 30 days before implementing any procedural
380.18revisions to policies affecting a person's service-related or protection-related rights under
380.19section 245D.04 and maltreatment reporting policies and procedures. The notice must
380.20explain the revision that was made and include a copy of the revised policy and procedure.
380.21The license holder must document the reasonable cause for not providing the notice at
380.22least 30 days before implementing the revisions.
380.23(d) Before implementing revisions to required policies and procedures, the license
380.24holder must inform all employees of the revisions and provide training on implementation
380.25of the revised policies and procedures.
380.26(e) The license holder must annually notify all persons, or their legal representatives,
380.27and case managers of any procedural revisions to policies required under this chapter,
380.28other than those in paragraph (c). Upon request, the license holder must provide the
380.29person, or the person's legal representative, and case manager with copies of the revised
380.30policies and procedures.

380.31    Sec. 45. Minnesota Statutes 2013 Supplement, section 245D.11, subdivision 2, is
380.32amended to read:
380.33    Subd. 2. Health and safety. The license holder must establish policies and
380.34procedures that promote health and safety by ensuring:
381.1(1) use of universal precautions and sanitary practices in compliance with section
381.2245D.06, subdivision 2 , clause (5);
381.3(2) if the license holder operates a residential program, health service coordination
381.4and care according to the requirements in section 245D.05, subdivision 1;
381.5(3) safe medication assistance and administration according to the requirements
381.6in sections 245D.05, subdivisions 1a, 2, and 5, and 245D.051, that are established in
381.7consultation with a registered nurse, nurse practitioner, physician's assistant, or medical
381.8doctor and require completion of medication administration training according to the
381.9requirements in section 245D.09, subdivision 4a, paragraph (d). Medication assistance
381.10and administration includes, but is not limited to:
381.11(i) providing medication-related services for a person;
381.12(ii) medication setup;
381.13(iii) medication administration;
381.14(iv) medication storage and security;
381.15(v) medication documentation and charting;
381.16(vi) verification and monitoring of effectiveness of systems to ensure safe medication
381.17handling and administration;
381.18(vii) coordination of medication refills;
381.19(viii) handling changes to prescriptions and implementation of those changes;
381.20(ix) communicating with the pharmacy; and
381.21(x) coordination and communication with prescriber;
381.22(4) safe transportation, when the license holder is responsible for transportation of
381.23persons, with provisions for handling emergency situations according to the requirements
381.24in section 245D.06, subdivision 2, clauses (2) to (4);
381.25(5) a plan for ensuring the safety of persons served by the program in emergencies as
381.26defined in section 245D.02, subdivision 8, and procedures for staff to report emergencies
381.27to the license holder. A license holder with a community residential setting or a day service
381.28facility license must ensure the policy and procedures comply with the requirements in
381.29section 245D.22, subdivision 4;
381.30(6) a plan for responding to all incidents as defined in section 245D.02, subdivision
381.3111; and reporting all incidents required to be reported according to section 245D.06,
381.32subdivision 1. The plan must:
381.33(i) provide the contact information of a source of emergency medical care and
381.34transportation; and
381.35(ii) require staff to first call 911 when the staff believes a medical emergency may
381.36be life threatening, or to call the mental health crisis intervention team or similar mental
382.1health response team or service when such a team is available and appropriate when the
382.2person is experiencing a mental health crisis; and
382.3(7) a procedure for the review of incidents and emergencies to identify trends or
382.4patterns, and corrective action if needed. The license holder must establish and maintain
382.5a record-keeping system for the incident and emergency reports. Each incident and
382.6emergency report file must contain a written summary of the incident. The license holder
382.7must conduct a review of incident reports for identification of incident patterns, and
382.8implementation of corrective action as necessary to reduce occurrences. Each incident
382.9report must include:
382.10(i) the name of the person or persons involved in the incident. It is not necessary
382.11to identify all persons affected by or involved in an emergency unless the emergency
382.12resulted in an incident;
382.13(ii) the date, time, and location of the incident or emergency;
382.14(iii) a description of the incident or emergency;
382.15(iv) a description of the response to the incident or emergency and whether a person's
382.16coordinated service and support plan addendum or program policies and procedures were
382.17implemented as applicable;
382.18(v) the name of the staff person or persons who responded to the incident or
382.19emergency; and
382.20(vi) the determination of whether corrective action is necessary based on the results
382.21of the review.

382.22    Sec. 46. Minnesota Statutes 2012, section 252.27, is amended by adding a subdivision
382.23to read:
382.24    Subd. 2d. Fees limited. Effective January 1, 2015, to December 31, 2015, the fee
382.25a parent is required to contribute to the cost of services under medical assistance for an
382.26individual child shall not exceed the maximum insurance premium charged in Minnesota
382.27under the federal Patient Protection and Affordable Care Act, Public Law 111-148, as
382.28amended, for a child-only policy for a child with the same amount of income, plus a $500
382.29annual deductible, or the current parent fee under subdivision 2a, whichever is less.

382.30    Sec. 47. Minnesota Statutes 2012, section 252.451, subdivision 2, is amended to read:
382.31    Subd. 2. Vendor participation and reimbursement. Notwithstanding requirements
382.32in chapter chapters 245A and 245D, and sections 252.28, 252.40 to 252.46, and 256B.501,
382.33vendors of day training and habilitation services may enter into written agreements with
383.1qualified businesses to provide additional training and supervision needed by individuals
383.2to maintain their employment.

383.3    Sec. 48. Minnesota Statutes 2012, section 256.9752, subdivision 2, is amended to read:
383.4    Subd. 2. Authority. The Minnesota Board on Aging shall allocate to area agencies
383.5on aging the state and federal funds which are received for the senior nutrition programs
383.6of congregate dining and home-delivered meals in a manner consistent with federal
383.7requirements.

383.8    Sec. 49. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 4,
383.9is amended to read:
383.10    Subd. 4. Diagnosis. (a) A diagnosis must:
383.11    (1) be based upon current DSM criteria including direct observations of the child
383.12and reports from parents or primary caregivers; and
383.13    (2) be completed by both either (i) a licensed physician or advanced practice
383.14registered nurse and or (ii) a mental health professional.
383.15    (b) Additional diagnostic assessment information may be considered including from
383.16special education evaluations and licensed school personnel, and from professionals
383.17licensed in the fields of medicine, speech and language, psychology, occupational therapy,
383.18and physical therapy.
383.19(c) If the commissioner determines there are access problems or delays in diagnosis
383.20for a geographic area due to the lack of qualified professionals, the commissioner shall
383.21waive the requirement in paragraph (a), clause (2), for two professionals and allow a
383.22diagnosis to be made by one professional for that geographic area. This exception must be
383.23limited to a specific period of time until, with stakeholder input as described in subdivision
383.248, there is a determination of an adequate number of professionals available to require two
383.25professionals for each diagnosis.

383.26    Sec. 50. Minnesota Statutes 2013 Supplement, section 256B.0949, subdivision 11,
383.27is amended to read:
383.28    Subd. 11. Federal approval of the autism benefit. (a) The provisions of
383.29subdivision 9 this section shall apply to state plan services under title XIX of the Social
383.30Security Act when federal approval is granted under a 1915(i) waiver or other authority
383.31which allows children eligible for medical assistance through the TEFRA option under
383.32section 256B.055, subdivision 12, to qualify and includes children eligible for medical
383.33assistance in families over 150 percent of the federal poverty guidelines.
384.1(b) The commissioner may decide to use the federal authority for a Medicaid state
384.2plan amendment under early and periodic screening, diagnosis, and treatment (EPSDT),
384.3United States Code, title 42, section 1396D(R)(5), or other Medicaid provision for any
384.4aspect or type of treatment covered in this section if new federal guidance is helpful
384.5in achieving one or more of the purposes of this section in a cost-effective manner.
384.6Any treatment services submitted for federal approval under EPSDT shall include
384.7appropriate medical criteria to qualify for the service and cover children through age 20
384.8notwithstanding subdivision 2, paragraph (c).

384.9    Sec. 51. Minnesota Statutes 2012, section 256B.431, is amended by adding a
384.10subdivision to read:
384.11    Subd. 46. Rate increase for facilities in Mille Lacs, Isanti, and Kanabec Counties.
384.12(a) Effective July 1, 2015, the operating payment rates of nursing facilities in Mille Lacs,
384.13Isanti, and Kanabec Counties that are reimbursed under this section, section 256B.434, or
384.14section 256B.441, shall be increased to be equal, for a resource utilization group rate with
384.15a weight of 1.00, to the geographic group III median rate for the same resource utilization
384.16group weight. The calculations under this subdivision shall be added to the rates before
384.17any other operating payment rate adjustments effective on July 1, 2015, are computed.
384.18The percentage of the operating payment rates to be case-mix adjusted shall be equal to
384.19the percentage that is case-mix adjusted in the June 30, 2015, operating payment rates.
384.20(b) Seventy-five percent of the money resulting from the rate adjustment under
384.21paragraph (a) must be used for increases in compensation-related costs for employees
384.22directly employed by the nursing facility on or after the effective date of the rate
384.23adjustment, except:
384.24(1) the administrator;
384.25(2) persons employed in the central office of a corporation that has an ownership
384.26interest in the nursing facility or exercises control over the nursing facility; and
384.27(3) persons paid by the nursing facility under a management contract.
384.28(c) The commissioner shall allow as compensation-related costs all costs for:
384.29(1) wage and salary increases effective after May 25, 2015;
384.30(2) the employer's share of FICA taxes, Medicare taxes, state and federal
384.31unemployment taxes, and workers' compensation;
384.32(3) the employer's share of health and dental insurance, life insurance, disability
384.33insurance, long-term care insurance, uniform allowance, and pensions; and
384.34(4) other benefits provided and workforce needs, including the recruiting and
384.35training of employees, subject to the approval of the commissioner.
385.1(d) The portion of the rate adjustment under paragraph (a) that is not subject to the
385.2requirements of paragraph (b) shall be provided to nursing facilities effective July 1, 2015.
385.3Nursing facilities may apply for the portion of the rate adjustment under paragraph (a)
385.4that is subject to the requirements of paragraph (b). The application must be submitted
385.5to the commissioner within six months of the effective date of the rate adjustment, and
385.6the nursing facility must provide additional information required by the commissioner
385.7within nine months of the effective date of the rate adjustment. The commissioner must
385.8respond to all applications within three weeks of receipt. The commissioner may waive
385.9the deadlines in the paragraph under extraordinary circumstances, to be determined at the
385.10sole discretion of the commissioner. The application must contain:
385.11(1) an estimate of the amounts of money that must be used as specified in paragraph
385.12(b);
385.13(2) a detailed distribution plan specifying the allowable compensation-related
385.14increases the nursing facility will implement to use the funds available in clause (1);
385.15(3) a description of how the nursing facility will notify eligible employees of
385.16the contents of the approved application, which must provide for giving each eligible
385.17employee a copy of the approved application, excluding the information required in clause
385.18(1), or posting a copy of the approved application, excluding the information required in
385.19clause (1), for a period of at least six weeks in an area of the nursing facility to which all
385.20eligible employees have access; and
385.21(4) instructions for employees who believe they have not received the
385.22compensation-related increases specified in clause (2), as approved by the commissioner,
385.23and which must include a mailing address, an e-mail address, and the telephone number
385.24that may be used by the employee to contact the commissioner or the commissioner's
385.25representative.
385.26(e) The commissioner shall ensure that cost increases in distribution plans under
385.27paragraph (d), clause (2), that may be included in approved applications comply with the
385.28following requirements:
385.29(1) a portion of the costs resulting from tenure-related wage or salary increases
385.30may be considered to be allowable wage increases, according to formulas that the
385.31commissioner shall provide, where employee retention is above the average statewide
385.32rate of retention of direct-care employees;
385.33(2) the annualized amount of increases in costs for the employer's share of health
385.34and dental insurance, life insurance, disability insurance, and workers' compensation
385.35shall be allowable compensation-related increases if they are effective on or after April
385.361, 2015, and prior to April 1, 2016; and
386.1(3) for nursing facilities in which employees are represented by an exclusive
386.2bargaining representative, the commissioner shall approve the application only upon
386.3receipt of a letter of acceptance of the distribution plan, in regard to members of the
386.4bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2015.
386.5Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
386.6this provision as having been met in regard to the members of the bargaining unit.
386.7(f) The commissioner shall review applications received under paragraph (d) and
386.8shall provide the portion of the rate adjustment under paragraph (b) if the requirements
386.9of this subdivision have been met. The rate adjustment shall be effective July 1, 2015.
386.10Notwithstanding paragraph (a), if the approved application distributes less money than is
386.11available, the amount of the rate adjustment shall be reduced so that the amount of money
386.12made available is equal to the amount to be distributed.
386.13(g) The increase in this subdivision shall be applied as a percentage to operating
386.14payment rates in effect on June 30, 2015. For each facility the commissioner shall
386.15determine the operating payment rate, not including any rate components resulting from
386.16equitable cost-sharing for publicly owned nursing facility program participation under
386.17section 256B.441, subdivision 55a, or performance-based incentive payment program
386.18participation under section 256B.434, subdivision 4, paragraph (d), for a resource
386.19utilization group class with a weight of 1.00 in effect on June 30, 2015.

386.20    Sec. 52. Minnesota Statutes 2012, section 256B.434, is amended by adding a
386.21subdivision to read:
386.22    Subd. 19c. Nursing facility rate adjustments beginning July 1, 2015. (a)
386.23Beginning July 1, 2015, the commissioner shall make available to each nursing facility
386.24reimbursed under this section a 5 percent operating payment rate increase, in accordance
386.25with paragraphs (b) to (g).
386.26(b) Seventy-five percent of the money resulting from the rate adjustment under
386.27paragraph (a) must be used for increases in compensation-related costs for employees
386.28directly employed by the nursing facility on or after the effective date of the rate
386.29adjustment, except:
386.30(1) the administrator;
386.31(2) persons employed in the central office of a corporation that has an ownership
386.32interest in the nursing facility or exercises control over the nursing facility; and
386.33(3) persons paid by the nursing facility under a management contract.
386.34(c) The commissioner shall allow as compensation-related costs all costs for:
386.35(1) wage and salary increases effective after May 25, 2015;
387.1(2) the employer's share of FICA taxes, Medicare taxes, state and federal
387.2unemployment taxes, and workers' compensation;
387.3(3) the employer's share of health and dental insurance, life insurance, disability
387.4insurance, long-term care insurance, uniform allowance, and pensions; and
387.5(4) other benefits provided and workforce needs, including the recruiting and
387.6training of employees, subject to the approval of the commissioner.
387.7(d) The portion of the rate adjustment under paragraph (a) that is not subject to the
387.8requirements of paragraph (b) shall be provided to nursing facilities effective July 1, 2015.
387.9Nursing facilities may apply for the portion of the rate adjustment under paragraph (a)
387.10that is subject to the requirements in paragraph (b). The application must be submitted
387.11to the commissioner within six months of the effective date of the rate adjustment, and
387.12the nursing facility must provide additional information required by the commissioner
387.13within nine months of the effective date of the rate adjustment. The commissioner must
387.14respond to all applications within three weeks of receipt. The commissioner may waive
387.15the deadlines in this paragraph under extraordinary circumstances, to be determined at the
387.16sole discretion of the commissioner. The application must contain:
387.17(1) an estimate of the amounts of money that must be used as specified in paragraph
387.18(b);
387.19(2) a detailed distribution plan specifying the allowable compensation-related
387.20increases the nursing facility will implement to use the funds available in clause (1);
387.21(3) a description of how the nursing facility will notify eligible employees of
387.22the contents of the approved application, which must provide for giving each eligible
387.23employee a copy of the approved application, excluding the information required in clause
387.24(1), or posting a copy of the approved application, excluding the information required in
387.25clause (1), for a period of at least six weeks in an area of the nursing facility to which all
387.26eligible employees have access; and
387.27(4) instructions for employees who believe they have not received the
387.28compensation-related increases specified in clause (2), as approved by the commissioner,
387.29and which must include a mailing address, e-mail address, and the telephone number
387.30that may be used by the employee to contact the commissioner or the commissioner's
387.31representative.
387.32(e) The commissioner shall ensure that cost increases in distribution plans under
387.33paragraph (d), clause (2), that may be included in approved applications, comply with the
387.34following requirements:
387.35(1) a portion of the costs resulting from tenure-related wage or salary increases
387.36may be considered to be allowable wage increases, according to formulas that the
388.1commissioner shall provide, where employee retention is above the average statewide
388.2rate of retention of direct-care employees;
388.3(2) the annualized amount of increases in costs for the employer's share of health
388.4and dental insurance, life insurance, disability insurance, and workers' compensation
388.5shall be allowable compensation-related increases if they are effective on or after April
388.61, 2015, and prior to April 1, 2016; and
388.7(3) for nursing facilities in which employees are represented by an exclusive
388.8bargaining representative, the commissioner shall approve the application only upon
388.9receipt of a letter of acceptance of the distribution plan, in regard to members of the
388.10bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2015.
388.11Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
388.12this provision as having been met in regard to the members of the bargaining unit.
388.13(f) The commissioner shall review applications received under paragraph (d) and
388.14shall provide the portion of the rate adjustment under paragraph (b) if the requirements
388.15of this statute have been met. The rate adjustment shall be effective October 1, 2015.
388.16Notwithstanding paragraph (a), if the approved application distributes less money than is
388.17available, the amount of the rate adjustment shall be reduced so that the amount of money
388.18made available is equal to the amount to be distributed.
388.19(g) The increase in this subdivision shall be applied as a percentage to operating
388.20payment rates in effect on June 30, 2015. For each facility, the commissioner shall
388.21determine the operating payment rate, not including any rate components resulting from
388.22equitable cost-sharing for publicly owned nursing facility program participation under
388.23section 256B.441, subdivision 55a, critical access nursing facility program participation
388.24under section 256B.441, subdivision 63, or performance-based incentive payment
388.25program participation under subdivision 4, paragraph (d), for a RUG class with a weight
388.26of 1.00 in effect on June 30, 2015.

388.27    Sec. 53. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 1,
388.28is amended to read:
388.29    Subdivision 1. Development and implementation of quality profiles. (a) The
388.30commissioner of human services, in cooperation with the commissioner of health, shall
388.31develop and implement quality profiles for nursing facilities and, beginning not later than
388.32July 1, 2014, for home and community-based services providers, except when the quality
388.33profile system would duplicate requirements under section 256B.5011, 256B.5012, or
388.34256B.5013 . For purposes of this section, home and community-based services providers
388.35are defined as providers of home and community-based services under sections 256B.0625,
389.1subdivisions 6a, 7, and 19a; 256B.0913 ,; 256B.0915,; 256B.092, and; 256B.49,; and
389.2256B.85, and intermediate care facilities for persons with developmental disabilities
389.3providers under section 256B.5013. To the extent possible, quality profiles must be
389.4developed for providers of services to older adults and people with disabilities, regardless
389.5of payor source, for the purposes of providing information to consumers. The quality
389.6profiles must be developed using existing data sets maintained by the commissioners of
389.7health and human services to the extent possible. The profiles must incorporate or be
389.8coordinated with information on quality maintained by area agencies on aging, long-term
389.9care trade associations, the ombudsman offices, counties, tribes, health plans, and other
389.10entities and the long-term care database maintained under section 256.975, subdivision 7.
389.11The profiles must be designed to provide information on quality to:
389.12(1) consumers and their families to facilitate informed choices of service providers;
389.13(2) providers to enable them to measure the results of their quality improvement
389.14efforts and compare quality achievements with other service providers; and
389.15(3) public and private purchasers of long-term care services to enable them to
389.16purchase high-quality care.
389.17(b) The profiles must be developed in consultation with the long-term care task
389.18force, area agencies on aging, and representatives of consumers, providers, and labor
389.19unions. Within the limits of available appropriations, the commissioners may employ
389.20consultants to assist with this project.
389.21EFFECTIVE DATE.This section is effective retroactively from February 1, 2014.

389.22    Sec. 54. Minnesota Statutes 2013 Supplement, section 256B.439, subdivision 7,
389.23is amended to read:
389.24    Subd. 7. Calculation of home and community-based services quality add-on.
389.25Effective On July 1, 2015, the commissioner shall determine the quality add-on rate
389.26change and adjust payment rates for participating all home and community-based services
389.27providers for services rendered on or after that date. The adjustment to a provider payment
389.28rate determined under this subdivision shall become part of the ongoing rate paid to that
389.29provider. The payment rate for the quality add-on shall be a variable amount based on
389.30each provider's quality score as determined in subdivisions 1 and 2a. All home and
389.31community-based services providers shall receive a minimum rate increase under this
389.32subdivision. In addition to a minimum rate increase, a home and community-based
389.33services provider shall receive a quality add-on payment. The commissioner shall limit
389.34the types of home and community-based services providers that may receive the quality
389.35add-on and based on availability of quality measures and outcome data. The commissioner
390.1shall limit the amount of the minimum rate increase and quality add-on payments to
390.2operate the quality add-on within funds appropriated for this purpose and based on the
390.3availability of the quality measures the equivalent of a one percent rate increase for all
390.4home and community-based services providers.

390.5    Sec. 55. Minnesota Statutes 2013 Supplement, section 256B.441, subdivision 53,
390.6is amended to read:
390.7    Subd. 53. Calculation of payment rate for external fixed costs. The commissioner
390.8shall calculate a payment rate for external fixed costs.
390.9    (a) For a facility licensed as a nursing home, the portion related to section 256.9657
390.10shall be equal to $8.86. For a facility licensed as both a nursing home and a boarding care
390.11home, the portion related to section 256.9657 shall be equal to $8.86 multiplied by the
390.12result of its number of nursing home beds divided by its total number of licensed beds.
390.13    (b) The portion related to the licensure fee under section 144.122, paragraph (d),
390.14shall be the amount of the fee divided by actual resident days.
390.15    (c) The portion related to scholarships shall be determined under section 256B.431,
390.16subdivision 36.
390.17    (d) Until September 30, 2013, the portion related to long-term care consultation shall
390.18be determined according to section 256B.0911, subdivision 6.
390.19    (e) The portion related to development and education of resident and family advisory
390.20councils under section 144A.33 shall be $5 divided by 365.
390.21    (f) The portion related to planned closure rate adjustments shall be as determined
390.22under section 256B.437, subdivision 6, and Minnesota Statutes 2010, section 256B.436.
390.23Planned closure rate adjustments that take effect before October 1, 2014, shall no longer
390.24be included in the payment rate for external fixed costs beginning October 1, 2016.
390.25Planned closure rate adjustments that take effect on or after October 1, 2014, shall no
390.26longer be included in the payment rate for external fixed costs beginning on October 1 of
390.27the first year not less than two years after their effective date.
390.28    (g) The portions related to property insurance, real estate taxes, special assessments,
390.29and payments made in lieu of real estate taxes directly identified or allocated to the nursing
390.30facility shall be the actual amounts divided by actual resident days.
390.31    (h) The portion related to the Public Employees Retirement Association shall be
390.32actual costs divided by resident days.
390.33    (i) The single bed room incentives shall be as determined under section 256B.431,
390.34subdivision 42. Single bed room incentives that take effect before October 1, 2014, shall
390.35no longer be included in the payment rate for external fixed costs beginning October 1,
391.12016. Single bed room incentives that take effect on or after October 1, 2014, shall no
391.2longer be included in the payment rate for external fixed costs beginning on October 1 of
391.3the first year not less than two years after their effective date.
391.4    (j) The portion related to the rate adjustment shall be as provided in subdivision 64.
391.5    (k) The payment rate for external fixed costs shall be the sum of the amounts in
391.6paragraphs (a) to (i) (j).

391.7    Sec. 56. Minnesota Statutes 2012, section 256B.441, is amended by adding a
391.8subdivision to read:
391.9    Subd. 64. Rate adjustment for compensation-related costs. (a) Total payment
391.10rates of all nursing facilities that are reimbursed under this section or section 256B.434
391.11shall be increased effective October 1, 2014, to address compensation costs for nursing
391.12facility employees paid less than $14.00 per hour.
391.13(b) Based on the application in paragraph (d), the commissioner shall calculate
391.14the annualized compensation costs by adding the totals of clauses (1), (2), and (3). The
391.15result must be divided by the resident days from the most recently available cost report to
391.16determine a per diem amount, which must be included in the external fixed cost portion of
391.17the total payment rate under subdivision 53:
391.18(1) the sum of the difference between $9.50 and any hourly wage rate of less than
391.19$9.50, multiplied by the number of compensated hours at that wage rate;
391.20(2) the sum of items (i) to (viii):
391.21(i) for all compensated hours from $8.00 to $8.49 per hour, the number of
391.22compensated hours is multiplied by $0.13;
391.23(ii) for all compensated hours from $8.50 to $8.99 per hour, the number of
391.24compensated hours is multiplied by $0.25;
391.25(iii) for all compensated hours from $9.00 to $9.49 per hour, the number of
391.26compensated hours is multiplied by $0.38;
391.27(iv) for all compensated hours from $9.50 to $10.49 per hour, the number of
391.28compensated hours is multiplied by $0.50;
391.29(v) for all compensated hours from $10.50 to $10.99 per hour, the number of
391.30compensated hours is multiplied by $0.40;
391.31(vi) for all compensated hours from $11.00 to $11.49 per hour, the number of
391.32compensated hours is multiplied by $0.30;
391.33(vii) for all compensated hours from $11.50 to $11.99 per hour, the number of
391.34compensated hours is multiplied by $0.20; and
392.1(viii) for all compensated hours from $12.00 to $13.00 per hour, the number of
392.2compensated hours is multiplied by $0.10; and
392.3(3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal
392.4unemployment taxes, workers' compensation, pensions, and contributions to employee
392.5retirement accounts attributable to the amounts in clauses (1) and (2).
392.6(c) For the rate year beginning October 1, 2014, nursing facilities that receive
392.7approval of the application in paragraph (d) must receive a rate adjustment according to
392.8paragraph (b). The rate adjustment must be used to pay compensation costs for nursing
392.9facility employees paid less than $14.00 per hour. The rate adjustment must continue to
392.10be included in the total payment rate in subsequent years.
392.11(d) To receive a rate adjustment, nursing facilities must submit an application to the
392.12commissioner in a form and manner determined by the commissioner. The application
392.13shall include data for a period beginning with the first pay period after January 1, 2014,
392.14including at least three months of employee compensated hours by wage rate, and a
392.15spending plan that describes how the funds from the rate adjustment will be allocated
392.16for compensation to employees paid less than $14.00 per hour. The application must
392.17be submitted by December 31, 2014. The commissioner may request any additional
392.18information needed to determine the rate adjustment within three weeks of receiving
392.19a complete application. The nursing facility must provide any additional information
392.20requested by the commissioner by March 31, 2015. The commissioner may waive the
392.21deadlines in this subdivision under extraordinary circumstances.
392.22(e) For nursing facilities in which employees are represented by an exclusive
392.23bargaining representative, the commissioner shall approve the application submitted under
392.24this subdivision only upon receipt of a letter of acceptance of the spending plan in regard
392.25to members of the bargaining unit, signed by the exclusive bargaining agent and dated
392.26after May 31, 2014. Upon receipt of the letter of acceptance, the commissioner shall
392.27deem all requirements of this subdivision as having been met in regard to the members of
392.28the bargaining unit.

392.29    Sec. 57. Minnesota Statutes 2013 Supplement, section 256B.4912, subdivision 1,
392.30is amended to read:
392.31    Subdivision 1. Provider qualifications. (a) For the home and community-based
392.32waivers providing services to seniors and individuals with disabilities under sections
392.33256B.0913 , 256B.0915, 256B.092, and 256B.49, the commissioner shall establish:
392.34(1) agreements with enrolled waiver service providers to ensure providers meet
392.35Minnesota health care program requirements;
393.1(2) regular reviews of provider qualifications, and including requests of proof of
393.2documentation; and
393.3(3) processes to gather the necessary information to determine provider qualifications.
393.4    (b) Beginning July 1, 2012, staff that provide direct contact, as defined in section
393.5245C.02, subdivision 11 , for services specified in the federally approved waiver plans
393.6must meet the requirements of chapter 245C prior to providing waiver services and as
393.7part of ongoing enrollment. Upon federal approval, this requirement must also apply to
393.8consumer-directed community supports.
393.9    (c) Beginning January 1, 2014, service owners and managerial officials overseeing
393.10the management or policies of services that provide direct contact as specified in the
393.11federally approved waiver plans must meet the requirements of chapter 245C prior to
393.12reenrollment or revalidation or, for new providers, prior to initial enrollment if they have
393.13not already done so as a part of service licensure requirements.

393.14    Sec. 58. Minnesota Statutes 2013 Supplement, section 256B.492, is amended to read:
393.15256B.492 HOME AND COMMUNITY-BASED SETTINGS FOR PEOPLE
393.16WITH DISABILITIES.
393.17    Subdivision 1. Home and community-based waivers. (a) Individuals receiving
393.18services under a home and community-based waiver under section 256B.092 or 256B.49
393.19may receive services in the following settings:
393.20(1) an individual's own home or family home;
393.21(2) a licensed adult foster care or child foster care setting of up to five people; and
393.22(3) community living settings as defined in section 256B.49, subdivision 23, where
393.23individuals with disabilities who are receiving services under a home and community-based
393.24waiver may reside in all of the units in a building of four or fewer units, and no more than
393.25the greater of four or 25 percent of the units in a multifamily building of more than four
393.26units, unless required by the Housing Opportunities for Persons with AIDS Program.
393.27(b) The settings in paragraph (a) must not:
393.28(1) be located in a building that is a publicly or privately operated facility that
393.29provides institutional treatment or custodial care;
393.30(2) be located in a building on the grounds of or adjacent to a public or private
393.31institution;
393.32(3) be a housing complex designed expressly around an individual's diagnosis or
393.33disability, unless required by the Housing Opportunities for Persons with AIDS Program;
393.34(4) be segregated based on a disability, either physically or because of setting
393.35characteristics, from the larger community; and
394.1(5) have the qualities of an institution which include, but are not limited to:
394.2regimented meal and sleep times, limitations on visitors, and lack of privacy. Restrictions
394.3agreed to and documented in the person's individual service plan shall not result in a
394.4residence having the qualities of an institution as long as the restrictions for the person are
394.5not imposed upon others in the same residence and are the least restrictive alternative,
394.6imposed for the shortest possible time to meet the person's needs.
394.7(c) The provisions of paragraphs (a) and (b) do not apply to any setting in which
394.8individuals with disabilities receive services under a home and community-based waiver
394.9as of July 1, 2012, and the setting does not meet the criteria of this section.
394.10(d) Notwithstanding paragraph (c), a program in Hennepin County established as
394.11part of a Hennepin County demonstration project is qualified for the exception allowed
394.12under paragraph (c).
394.13(e) The commissioner shall submit an amendment to the waiver plan no later than
394.14December 31, 2012.
394.15    Subd. 2. Exceptions for home and community-based waiver housing programs.
394.16(a) Beginning no later than January 2015, based on the consultation with interested
394.17stakeholders as specified in subdivision 4, the commissioner shall accept and process
394.18applications for exceptions to subdivision 1 based on the criteria in this subdivision. The
394.19commissioner may grant exceptions for up to 200 units in which individuals may reside
394.20beginning July 1, 2016. Beginning July 1, 2017, the commissioner may grant additional
394.21exceptions beyond the 200 unit limit in this paragraph.
394.22(b) An owner, operator, or developer of a community living setting may apply to
394.23the commissioner for an exception from the requirements in subdivision 1, paragraph
394.24(a), clause (3), and paragraph (b), clause (3). An exception may be granted when the
394.25community living setting requesting the exception submits to the commissioner an
394.26application providing the information requested in paragraph (c). The exception must
394.27require that housing costs be separated from service costs and allow the client to choose
394.28the vendor who provides personal services under the client's waiver.
394.29(c) A community living setting application for an exception must include the
394.30following:
394.31(1) an affirmation that the community living setting materially meets all the
394.32requirements for home and community-based settings in subdivision 1, paragraph (b),
394.33other than clause (3);
394.34(2) an explanation of the scope and necessity of the exception, including
394.35documentation of the characteristics of the population to be served and the demand for the
394.36number of units the community living setting anticipates will be occupied by individuals
395.1receiving services under a home and community-based waiver in the proposed community
395.2living setting;
395.3(3) an explanation of how the community living setting supports all individuals with
395.4disabilities receiving services under a home and community-based waiver in choosing
395.5the community living setting from among other options, the availability of those other
395.6options in the community for the specific population the program proposes to serve, the
395.7proposed rents, the services and service costs, if any, provided by the community living
395.8setting, and the cost-effectiveness of the proposed model; and
395.9(4) a quality assurance plan affirming that the community living setting requesting
395.10the exception:
395.11(i) supports or develops scattered-site alternatives to the community living setting
395.12for which the exception is requested;
395.13(ii) supports the transition of individuals receiving services under a home and
395.14community-based waiver to the most integrated setting appropriate to the individual's
395.15needs;
395.16(iii) has a history of meeting recognized quality standards for the population it serves
395.17or is targeting, or that it will meet recognized quality standards;
395.18(iv) provides and facilitates for tenants receiving services under a home and
395.19community-based waiver unlimited access to the community, including opportunities to
395.20interact with nonstaff people without disabilities, appropriate to the individual's needs;
395.21(v) supports a safe and healthy environment for all individuals living in the
395.22community living setting;
395.23(vi) provides information on which entities will inspect the setting and the frequency
395.24of the inspections; and
395.25(vii) affirms that the community living setting will annually collect information
395.26related to tenant satisfaction and that the information is available to current and
395.27prospective tenants and families.
395.28(d) In assessing whether to grant or deny the community living setting's exception
395.29request, the commissioner shall:
395.30(1) evaluate all of the assertions in the application, verify the assertions are accurate,
395.31and ensure that the application is complete;
395.32(2) consult with all divisions in the Department of Human Services relevant to the
395.33specific populations being served by the community living setting, the Minnesota Housing
395.34Finance Agency, and the Department of Health;
396.1(3) within 30 days of receiving the application notify the city, county, and local press
396.2of a 30-day public comment period to consider community input on the application,
396.3including input from tenants, potential tenants, and other interested stakeholders;
396.4(4) deny an application in which:
396.5(i) the community living setting fails to fully comply with the application
396.6requirements in paragraph (c);
396.7(ii) the community living setting fails to comply with all applicable federal
396.8regulations regarding Medicaid-funded home and community-based services under the
396.9Code of Federal Regulations, title 42, parts 430, 431, 435, 436, 440, 441, and 447;
396.10(iii) the community living setting fails to materially comply with any Minnesota
396.11law or regulation applicable to individuals with disabilities receiving home and
396.12community-based services under medical assistance;
396.13(iv) the community living setting is not consistent with relevant parts of the
396.14Olmstead plan that are applicable to housing for individuals with disabilities who are
396.15receiving home and community-based services under medical assistance;
396.16(v) the following factors adversely impact the quality of life and integration for
396.17residents:
396.18(A) the total number of units in a building or the number of units to be occupied by
396.19persons receiving services under a home and community-based waiver; or
396.20(B) the geographic concentration of disability-purposed housing; and
396.21(vi) the number of approved or pending exceptions applications adversely impact
396.22the balance between persons with disabilities receiving home and community-based
396.23waivers in disability-purposed housing, and housing that contains units with and without
396.24persons with disabilities;
396.25(5) take into account the community input raised during the public comment period;
396.26(6) within 60 days of receiving the application, issue an approval, conditional
396.27approval, or denial of the exception; and
396.28(7) accept and process applications from community living settings throughout the
396.29calendar year.
396.30If conditional approval is granted under this section, the commissioner must specify the
396.31reasons for the conditional approval of the exception, and allow the community living
396.32setting 30 days to amend the application, and issue a renewed decision within 15 days of
396.33receiving the amended application. If the commissioner denies an exception under this
396.34section, the commissioner must specify the reasons for denying the exception.
396.35(e) After a community living setting's exception is approved, any material change
396.36in the population to be served or the services to be offered must be submitted to the
397.1commissioner who must decide if the changes are consistent with the basis on which the
397.2exception was granted, or if another exception request needs to be submitted.
397.3(f) If an exception is approved and later revoked, no tenant must be displaced as a
397.4result of this revocation until a relocation plan is implemented that provides an acceptable
397.5alternative community living setting.
397.6(g) No community living setting that meets the requirements under subdivision 1 is
397.7required to apply for an exception described in this subdivision.
397.8    Subd. 3. Exception process expiration. Beginning January 1, 2019, the
397.9commissioner shall not accept or process applications for exceptions under subdivision 2.
397.10Community living settings granted an exception under subdivision 2, prior to January 1,
397.112019, may retain their exception status under the provisions in subdivision 2.
397.12    Subd. 4. Public input on exception process. The commissioner shall consult
397.13with interested stakeholders to develop a plan for implementing the exceptions process
397.14described in Minnesota Statutes, section 256B.492, subdivision 2. The implementation
397.15plan for the applications must be based on the criteria in Minnesota Statutes, section
397.16256B.492, subdivision 2, including defining key terms related to the quality and
397.17integration measures, as well as the grounds for denying or approving an application and
397.18any other information necessary to manage the exceptions process. The commissioner
397.19shall consult with representatives from each relevant division of the Department of Human
397.20Services, The Coalition for Choice in Housing, NAMI, The Arc Minnesota, Mental Health
397.21Association of Minnesota, Minnesota Disability Law Center, Minnesota State Council on
397.22Disability, The Office of Ombudsman for Mental Health and Developmental Disabilities,
397.23and other provider organizations, counties, disability advocates, and individuals with
397.24disabilities or family members of an individual with disabilities.
397.25    Subd. 5. Legislative update. By January 15, 2015, the commissioner shall provide
397.26an update to the chairs and ranking minority members of the legislative committees with
397.27jurisdiction over the finalized exceptions process.

397.28    Sec. 59. Minnesota Statutes 2012, section 256B.5012, is amended by adding a
397.29subdivision to read:
397.30    Subd. 16. ICF/DD rate increases effective July 1, 2014. (a) For each facility
397.31reimbursed under this section, for the rate period beginning July 1, 2014, the commissioner
397.32shall increase operating payments equal to five percent of the operating payment rates in
397.33effect on July 1, 2014. For each facility, the commissioner shall apply the rate increase
397.34based on occupied beds, using the percentage specified in this subdivision multiplied by
398.1the total payment rate, including the variable rate but excluding the property-related
398.2payment rate in effect on the preceding date.
398.3(b) To receive the rate increase under paragraph (a), each facility reimbursed under
398.4this section must submit to the commissioner documentation that identifies a quality
398.5improvement project the facility will implement by June 30, 2015. Documentation must
398.6be provided in a format specified by the commissioner. Projects must:
398.7(1) improve the quality of life of intermediate care facility residents in a meaningful
398.8way;
398.9(2) improve the quality of services in a measurable way; or
398.10(3) deliver good quality service more efficiently while using the savings to enhance
398.11services for the participants served.
398.12(c) For a facility that fails to submit the documentation described in paragraph (b)
398.13by a date or in a format specified by the commissioner, the commissioner shall reduce
398.14the facility's rate by one percent effective January 1, 2015.
398.15(d) Facilities that receive a rate increase under this subdivision shall use 75 percent
398.16of the rate increase to increase compensation-related costs for employees directly
398.17employed by the facility on or after the effective date of the rate adjustments, except:
398.18(1) persons employed in the central office of a corporation or entity that has an
398.19ownership interest in the facility or exercises control over the facility; and
398.20(2) persons paid by the facility under a management contract.
398.21This requirement is subject to audit by the commissioner.
398.22(e) Compensation-related costs include:
398.23(1) wages and salaries;
398.24(2) the employer's share of FICA taxes, Medicare taxes, state and federal
398.25unemployment taxes, workers' compensation, and mileage reimbursement;
398.26(3) the employer's share of health and dental insurance, life insurance, disability
398.27insurance, long-term care insurance, uniform allowance, pensions, and contributions to
398.28employee retirement accounts; and
398.29(4) other benefits provided and workforce needs, including the recruiting and
398.30training of employees as specified in the distribution plan required under paragraph (f).
398.31(f) A facility that receives a rate adjustment under paragraph (a) that is subject to
398.32paragraphs (d) and (e) shall prepare and produce for the commissioner, upon request, a
398.33plan that specifies the amount of money the provider expects to receive that is subject to
398.34the requirements of paragraphs (d) and (e), as well as how that money will be distributed
398.35to increase compensation for employees. The commissioner may recover funds from a
398.36facility that fails to comply with this requirement.
399.1(g) Within six months after the effective date of the rate adjustment, the facility shall
399.2post the distribution plan required under paragraph (f) for a period of at least six weeks in
399.3an area of the facility's operation to which all eligible employees have access, and shall
399.4provide instructions for employees who believe they have not received the wage and other
399.5compensation-related increases specified in the distribution plan. These instructions must
399.6include a mailing address, e-mail address, and telephone number that an employee may
399.7use to contact the commissioner or the commissioner's representative. Facilities shall
399.8make assurances to the commissioner of compliance with this subdivision using forms
399.9prescribed by the commissioner.
399.10(h) For public employees, the increase for wages and benefits for certain staff is
399.11available and pay rates must be increased only to the extent that the increases comply with
399.12laws governing public employees' collective bargaining. Money received by a provider for
399.13pay increases for public employees under this subdivision may be used only for increases
399.14implemented within one month of the effective date of the rate increase and must not be
399.15used for increases implemented prior to that date.
399.16(i) For a provider that has employees that are represented by an exclusive bargaining
399.17representative, the provider shall obtain a letter of acceptance of the distribution plan, in
399.18regard to the members of the bargaining unit, signed by the exclusive bargaining agent.
399.19Upon receipt of the letter of acceptance, the provider shall be deemed to have met all the
399.20requirements of this subdivision in regard to the members of the bargaining unit. The
399.21provider shall produce the letter of acceptance for the commissioner upon request.

399.22    Sec. 60. Laws 2013, chapter 108, article 7, section 14, the effective date, is amended to
399.23read:
399.24EFFECTIVE DATE.Subdivisions 1 to 7 and 9, are effective upon federal approval
399.25consistent with subdivision 11, but no earlier than March July 1, 2014. Subdivisions
399.268, 10, and 11 are effective July 1, 2013.

399.27    Sec. 61. PROVIDER RATE AND GRANT INCREASES EFFECTIVE JULY
399.281, 2014.
399.29(a) The commissioner of human services shall increase reimbursement rates, grants,
399.30allocations, individual limits, and rate limits, as applicable, by five percent for the rate
399.31period beginning July 1, 2014, for services rendered on or after that date. County or tribal
399.32contracts for services specified in this section must be amended to pass through these rate
399.33increases within 60 days of the effective date.
399.34(b) The rate changes described in this section must be provided to:
400.1(1) home and community-based waiver services for persons with developmental
400.2disabilities, including consumer-directed community supports, under Minnesota Statutes,
400.3section 256B.092;
400.4(2) waiver services under community alternatives for disabled individuals, including
400.5consumer-directed community supports, under Minnesota Statutes, section 256B.49;
400.6(3) community alternative care waiver services, including consumer-directed
400.7community supports, under Minnesota Statutes, section 256B.49;
400.8(4) brain injury waiver services, including consumer-directed community supports,
400.9under Minnesota Statutes, section 256B.49;
400.10(5) home and community-based waiver services for the elderly under Minnesota
400.11Statutes, section 256B.0915;
400.12(6) nursing services and home health services under Minnesota Statutes, section
400.13256B.0625, subdivision 6a;
400.14(7) personal care services and qualified professional supervision of personal care
400.15services under Minnesota Statutes, section 256B.0625, subdivisions 6a and 19a;
400.16(8) private duty nursing services under Minnesota Statutes, section 256B.0625,
400.17subdivision 7;
400.18(9) community first services and supports under Minnesota Statutes, section 256B.85;
400.19(10) essential community supports under Minnesota Statutes, section 256B.0922;
400.20(11) day training and habilitation services for adults with developmental disabilities
400.21or related conditions under Minnesota Statutes, sections 252.41 to 252.46, including the
400.22additional cost to counties for rate adjustments to day training and habilitation services
400.23provided as a social service;
400.24(12) alternative care services under Minnesota Statutes, section 256B.0913;
400.25(13) living skills training programs for persons with intractable epilepsy who need
400.26assistance in the transition to independent living under Laws 1988, chapter 689;
400.27(14) consumer support grants under Minnesota Statutes, section 256.476;
400.28(15) semi-independent living services under Minnesota Statutes, section 252.275;
400.29(16) family support grants under Minnesota Statutes, section 252.32;
400.30(17) housing access grants under Minnesota Statutes, section 256B.0658;
400.31(18) self-advocacy grants under Laws 2009, chapter 101;
400.32(19) technology grants under Laws 2009, chapter 79;
400.33(20) aging grants under Minnesota Statutes, sections 256.975 to 256.977 and
400.34256B.0917;
401.1(21) deaf and hard-of-hearing grants, including community support services for deaf
401.2and hard-of-hearing adults with mental illness who use or wish to use sign language as their
401.3primary means of communication under Minnesota Statutes, section 256.01, subdivision 2;
401.4(22) deaf and hard-of-hearing grants under Minnesota Statutes, sections 256C.233,
401.5256C.25, and 256C.261;
401.6(23) Disability Linkage Line grants under Minnesota Statutes, section 256.01,
401.7subdivision 24;
401.8(24) transition initiative grants under Minnesota Statutes, section 256.478;
401.9(25) employment support grants under Minnesota Statutes, section 256B.021,
401.10subdivision 6; and
401.11(26) grants provided to people who are eligible for the Housing Opportunities for
401.12Persons with AIDS program under Minnesota Statutes, section 256B.492.
401.13(c) A managed care plan receiving state payments for the services in paragraph (b)
401.14must include the increases in paragraph (a) in payments to providers. To implement the
401.15rate increase in this section, capitation rates paid by the commissioner to managed care
401.16organizations under Minnesota Statutes, section 256B.69, shall reflect a five percent
401.17increase for the specified services for the period beginning July 1, 2014.
401.18(d) Counties shall increase the budget for each recipient of consumer-directed
401.19community supports by the amounts in paragraph (a) on the effective dates in paragraph (a).
401.20(e) To implement this section, the commissioner shall increase service rates in the
401.21disability waiver payment system authorized in Minnesota Statutes, sections 256B.4913
401.22and 256B.4914.
401.23(f) To receive the rate increase described in this section, providers under paragraphs
401.24(a) and (b) must submit to the commissioner documentation that identifies a quality
401.25improvement project that the provider will implement by June 30, 2015. Documentation
401.26must be provided in a format specified by the commissioner. Projects must:
401.27(1) improve the quality of life of home and community-based services recipients in
401.28a meaningful way;
401.29(2) improve the quality of services in a measurable way; or
401.30(3) deliver good quality service more efficiently while using the savings to enhance
401.31services for the participants served.
401.32Providers listed in paragraph (b), clauses (7), (9), (10), and (13) to (26), are not subject
401.33to this requirement.
401.34(g) For a provider that fails to submit documentation described in paragraph (f) by
401.35a date or in a format specified by the commissioner, the commissioner shall reduce the
401.36provider's rate by one percent effective January 1, 2015.
402.1(h) Providers that receive a rate increase under this subdivision shall use 75 percent
402.2of the rate increase to increase compensation-related costs for employees directly
402.3employed by the facility on or after the effective date of the rate adjustments, except:
402.4(1) persons employed in the central office of a corporation or entity that has an
402.5ownership interest in the facility or exercises control over the facility; and
402.6(2) persons paid by the facility under a management contract.
402.7This requirement is subject to audit by the commissioner.
402.8(i) Compensation-related costs include:
402.9(1) wages and salaries;
402.10(2) the employer's share of FICA taxes, Medicare taxes, state and federal
402.11unemployment taxes, workers' compensation, and mileage reimbursement;
402.12(3) the employer's share of health and dental insurance, life insurance, disability
402.13insurance, long-term care insurance, uniform allowance, pensions, and contributions to
402.14employee retirement accounts; and
402.15(4) other benefits provided and workforce needs, including the recruiting and
402.16training of employees as specified in the distribution plan required under paragraph (l).
402.17(j) For public employees, the increase for wages and benefits for certain staff is
402.18available and pay rates must be increased only to the extent that the increases comply with
402.19laws governing public employees' collective bargaining. Money received by a provider
402.20for pay increases for public employees under this section may be used only for increases
402.21implemented within one month of the effective date of the rate increase and must not be
402.22used for increases implemented prior to that date.
402.23(k) For a provider that has employees that are represented by an exclusive bargaining
402.24representative, the provider shall obtain a letter of acceptance of the distribution plan, in
402.25regard to the members of the bargaining unit, signed by the exclusive bargaining agent.
402.26Upon receipt of the letter of acceptance, the provider shall be deemed to have met all the
402.27requirements of this section in regard to the members of the bargaining unit. The provider
402.28shall produce the letter of acceptance for the commissioner upon request.
402.29(l) A provider that receives a rate adjustment under paragraph (b) that is subject to
402.30paragraphs (h) and (i) shall prepare and produce for the commissioner, upon request, a
402.31plan that specifies the amount of money the provider expects to receive that is subject to
402.32the requirements of paragraphs (h) and (i), as well as how that money will be distributed
402.33to increase compensation for employees. The commissioner may recover funds from a
402.34facility that fails to comply with this requirement.
402.35(m) Within six months after the effective date of the rate adjustment, the provider
402.36shall post the distribution plan required under paragraph (l) for a period of at least six
403.1weeks in an area of the provider's operation to which all eligible employees have access,
403.2and shall provide instructions for employees who believe they have not received the
403.3wage and other compensation-related increases specified in the distribution plan. These
403.4instructions must include a mailing address, e-mail address, and telephone number that
403.5an employee may use to contact the commissioner or the commissioner's representative.
403.6Providers shall make assurances to the commissioner of compliance with this section
403.7using forms prescribed by the commissioner.

403.8    Sec. 62. DIRECTION TO COMMISSIONER; MA AUTISM EARLY
403.9INTENSIVE INTERVENTION BENEFIT DELAY.
403.10Any savings attributable to the delay in the effective date of the MA autism early
403.11intensive intervention benefit under Minnesota Statutes, section 256B.0949, shall be
403.12available to the commissioner of human services in fiscal years 2015 and 2016 for the
403.13parental fee limitation under Minnesota Statutes, section 252.27, subdivision 2d.

403.14    Sec. 63. REVISOR'S INSTRUCTION.
403.15(a) In each section of Minnesota Statutes or part of Minnesota Rules referred to
403.16in column A, the revisor of statutes shall delete the word or phrase in column B and
403.17insert the phrase in column C. The revisor shall also make related grammatical changes
403.18and changes in headnotes.

403.19	Column A	Column B	Column C
403.20 403.21	section 158.13	defective persons	persons with developmental disabilities
403.22 403.23	section 158.14	defective persons	persons with developmental disabilities
403.24 403.25	section 158.17	defective persons	persons with developmental disabilities
403.26 403.27	section 158.18	persons not defective	persons without developmental disabilities
403.28 403.29		defective person	person with developmental disabilities
403.30 403.31		defective persons	persons with developmental disabilities
403.32 403.33	section 158.19	defective	person with developmental disabilities
403.34 403.35	section 256.94	defective	children with developmental disabilities and
403.36 403.37	section 257.175	defective	children with developmental disabilities and
403.38	part 2911.1350	retardation	developmental disability

404.1(b) The revisor of statutes shall change the term "health and safety" to "health and
404.2welfare" in the following statutes: Minnesota Statutes, sections 245D.03, 245D.061,
404.3245D.071, 245D.10, 245D.11, 245D.31, 256B.0915, and 256B.092.


404.6    Section 1. SHORT TITLE.
404.7This article may be cited as the "Pain-Capable Unborn Child Protection Act."

404.8    Sec. 2. [8.40] LITIGATION DEFENSE FUND.
404.9(a) There is created in the special revenue fund an account entitled the Pain-Capable
404.10Unborn Child Protection Act litigation account for the purpose of providing funds to pay
404.11for any costs and expenses incurred by the state attorney general in relation to actions
404.12surrounding defense of sections 145.4141 to 145.4147.
404.13(b) The account shall be maintained by the commissioner of management and budget.
404.14(c) The litigation account shall consist of:
404.15(1) appropriations made to the account by the legislature; and
404.16(2) any donations, gifts, or grants made to the account by private citizens or entities.
404.17(d) The litigation account shall retain the interest income derived from the money
404.18credited to the account.
404.19(e) Any funds in the litigation account are appropriated to the attorney general for
404.20the purposes described in paragraph (a).

404.21    Sec. 3. Minnesota Statutes 2012, section 145.4131, subdivision 1, is amended to read:
404.22    Subdivision 1. Forms. (a) Within 90 days of July 1, 1998, the commissioner shall
404.23prepare a reporting form for use by physicians or facilities performing abortions. A copy
404.24of this section shall be attached to the form. A physician or facility performing an abortion
404.25shall obtain a form from the commissioner.
404.26(b) The form shall require the following information:
404.27(1) the number of abortions performed by the physician in the previous calendar
404.28year, reported by month;
404.29(2) the method used for each abortion;
404.30(3) the approximate gestational age expressed in one of the following increments:
404.31(i) less than nine weeks;
404.32(ii) nine to ten weeks;
404.33(iii) 11 to 12 weeks;
405.1(iv) 13 to 15 weeks;
405.2(v) 16 to 20 weeks;
405.3(vi) 21 to 24 weeks;
405.4(vii) 25 to 30 weeks;
405.5(viii) 31 to 36 weeks; or
405.6(ix) 37 weeks to term;
405.7(4) the age of the woman at the time the abortion was performed;
405.8(5) the specific reason for the abortion, including, but not limited to, the following:
405.9(i) the pregnancy was a result of rape;
405.10(ii) the pregnancy was a result of incest;
405.11(iii) economic reasons;
405.12(iv) the woman does not want children at this time;
405.13(v) the woman's emotional health is at stake;
405.14(vi) the woman's physical health is at stake;
405.15(vii) the woman will suffer substantial and irreversible impairment of a major bodily
405.16function if the pregnancy continues;
405.17(viii) the pregnancy resulted in fetal anomalies; or
405.18(ix) unknown or the woman refused to answer;
405.19(6) the number of prior induced abortions;
405.20(7) the number of prior spontaneous abortions;
405.21(8) whether the abortion was paid for by:
405.22(i) private coverage;
405.23(ii) public assistance health coverage; or
405.24(iii) self-pay;
405.25(9) whether coverage was under:
405.26(i) a fee-for-service plan;
405.27(ii) a capitated private plan; or
405.28(iii) other;
405.29(10) complications, if any, for each abortion and for the aftermath of each abortion.
405.30Space for a description of any complications shall be available on the form; and
405.31(11) the medical specialty of the physician performing the abortion.;
405.32(12) whether a determination of probable postfertilization age was made and the
405.33probable postfertilization age determined:
405.34(i) the method used to make such a determination; or
405.35(ii) if a determination was not made prior to performing an abortion, the basis of
405.36the determination that a medical emergency existed; and
406.1(13) for abortions performed after a determination of postfertilization age of 20 or
406.2more weeks, the basis of the determination that the pregnant woman had a condition that
406.3so complicated her medical condition as to necessitate the abortion of her pregnancy to
406.4avert her death or to avert serious risk of substantial and irreversible physical impairment
406.5of a major bodily function, not including psychological or emotional conditions.

406.6    Sec. 4. [145.4141] DEFINITIONS.
406.7    Subdivision 1. Scope. For purposes of sections 145.4141 to 145.4147, the following
406.8terms have the meanings given them.
406.9    Subd. 2. Abortion. "Abortion" means the use or prescription of any instrument,
406.10medicine, drug, or any other substance or device to terminate the pregnancy of a woman
406.11known to be pregnant, with an intention other than to increase the probability of a live
406.12birth; to preserve the life or health of the child after live birth; or to remove a dead unborn
406.13child who died as the result of natural causes in utero, accidental trauma, or a criminal
406.14assault on the pregnant woman or her unborn child; and which causes the premature
406.15termination of the pregnancy.
406.16    Subd. 3. Attempt to perform or induce an abortion. "Attempt to perform or
406.17induce an abortion" means an act, or an omission of a statutorily required act, that, under
406.18the circumstances as the actor believes them to be, constitutes a substantial step in a
406.19course of conduct planned to culminate in the performance or induction of an abortion in
406.20this state in violation of sections 145.4141 to 145.4147.
406.21    Subd. 4. Fertilization. "Fertilization" means the fusion of a human spermatozoon
406.22with a human ovum.
406.23    Subd. 5. Medical emergency. "Medical emergency" means a condition that,
406.24in reasonable medical judgment, so complicates the medical condition of the pregnant
406.25woman that it necessitates the immediate abortion of her pregnancy without first
406.26determining postfertilization age to avert her death or for which the delay necessary to
406.27determine postfertilization age will create serious risk of substantial and irreversible
406.28physical impairment of a major bodily function, not including psychological or emotional
406.29conditions. No condition shall be deemed a medical emergency if based on a claim or
406.30diagnosis that the woman will engage in conduct which she intends to result in her death
406.31or in substantial and irreversible physical impairment of a major bodily function.
406.32    Subd. 6. Physician. "Physician" means any person licensed to practice medicine
406.33and surgery or osteopathic medicine and surgery in this state.
406.34    Subd. 7. Postfertilization age. "Postfertilization age" means the age of the unborn
406.35child as calculated from the fusion of a human spermatozoon with a human ovum.
407.1    Subd. 8. Probable postfertilization age of the unborn child. "Probable
407.2postfertilization age of the unborn child" means what, in reasonable medical judgment,
407.3will with reasonable probability be the postfertilization age of the unborn child at the time
407.4the abortion is planned to be performed or induced.
407.5    Subd. 9. Reasonable medical judgment. "Reasonable medical judgment" means a
407.6medical judgment that would be made by a reasonably prudent physician knowledgeable
407.7about the case and the treatment possibilities with respect to the medical conditions
407.8involved.
407.9    Subd. 10. Unborn child or fetus. "Unborn child" or "fetus" means an individual
407.10organism of the species homo sapiens from fertilization until live birth.
407.11    Subd. 11. Woman. "Woman" means a female human being whether or not she
407.12has reached the age of majority.

407.13    Sec. 5. [145.4142] LEGISLATIVE FINDINGS.
407.14(a) The legislature makes the following findings.
407.15(b) Pain receptors (nociceptors) are present throughout an unborn child's entire body
407.16and nerves link these receptors to the brain's thalamus and subcortical plate by 20 weeks.
407.17(c) By eight weeks after fertilization, an unborn child reacts to touch. After 20
407.18weeks an unborn child reacts to stimuli that would be recognized as painful if applied to
407.19an adult human, for example by recoiling.
407.20(d) In the unborn child, application of such painful stimuli is associated with
407.21significant increases in stress hormones known as the stress response.
407.22(e) Subjection to such painful stimuli is associated with long-term harmful
407.23neurodevelopmental effects, such as altered pain sensitivity and, possibly, emotional,
407.24behavioral, and learning disabilities later in life.
407.25(f) For the purposes of surgery on an unborn child, fetal anesthesia is routinely
407.26administered and is associated with a decrease in stress hormones compared to the level
407.27when painful stimuli is applied without anesthesia.
407.28(g) The position, asserted by some medical experts, that an unborn child is incapable
407.29of experiencing pain until a point later in pregnancy than 20 weeks after fertilization
407.30predominately rests on the assumption that the ability to experience pain depends on the
407.31cerebral cortex and requires nerve connections between the thalamus and the cortex.
407.32However, recent medical research and analysis, especially since 2007, provides strong
407.33evidence for the conclusion that a functioning cortex is not necessary to experience pain.
407.34(h) Substantial evidence indicates that children born missing the bulk of the cerebral
407.35cortex, those with hydranencephaly, nevertheless experience pain.
408.1(i) In adults, stimulation or ablation of the cerebral cortex does not alter pain
408.2perception, while stimulation or ablation of the thalamus does.
408.3(j) Substantial evidence indicates that structures used for pain processing in early
408.4development differ from those of adults, using different neural elements available at
408.5specific times during development, such as the subcortical plate, to fulfill the role of
408.6pain processing.
408.7(k) The position asserted by some medical experts, that the unborn child remains in a
408.8coma-like sleep state that precludes the unborn child experiencing pain is inconsistent with
408.9the documented reaction of unborn children to painful stimuli and with the experience of
408.10fetal surgeons who have found it necessary to sedate the unborn child with anesthesia to
408.11prevent the unborn child from thrashing about in reaction to invasive surgery.
408.12(l) Consequently, there is substantial medical evidence that an unborn child is
408.13capable of experiencing pain by 20 weeks after fertilization.
408.14(m) It is the purpose of the state to assert a compelling state interest in protecting the
408.15lives of unborn children from the stage at which substantial medical evidence indicates
408.16that they are capable of feeling pain.

408.17    Sec. 6. [145.4143] DETERMINATION OF POSTFERTILIZATION AGE.
408.18    Subdivision 1. Determination of postfertilization age. Except in the case of a
408.19medical emergency, no abortion shall be performed or induced or be attempted to be
408.20performed or induced unless the physician performing or inducing it has first made a
408.21determination of the probable postfertilization age of the unborn child or relied upon
408.22such a determination made by another physician. In making such a determination, the
408.23physician shall make those inquiries of the woman and perform or cause to be performed
408.24those medical examinations and tests that a reasonably prudent physician, knowledgeable
408.25about the case and the medical conditions involved, would consider necessary to perform
408.26in making an accurate diagnosis with respect to postfertilization age.
408.27    Subd. 2. Unprofessional conduct. Failure by any physician to conform to any
408.28requirement of this section constitutes unprofessional conduct under section 147.091,
408.29subdivision 1, paragraph (k).

408.30    Sec. 7. [145.4144] ABORTION OF UNBORN CHILD OF 20 OR MORE WEEKS
408.31POSTFERTILIZATION AGE PROHIBITED; CAPABLE OF FEELING PAIN.
408.32    Subdivision 1. Abortion prohibition; exemption. No person shall perform or
408.33induce or attempt to perform or induce an abortion upon a woman when it has been
408.34determined, by the physician performing or inducing or attempting to perform or induce
409.1the abortion, or by another physician upon whose determination that physician relies,
409.2that the probable postfertilization age of the woman's unborn child is 20 or more weeks
409.3unless, in reasonable medical judgment, she has a condition which so complicates her
409.4medical condition as to necessitate the abortion of her pregnancy to avert her death or to
409.5avert serious risk of substantial and irreversible physical impairment of a major bodily
409.6function, not including psychological or emotional conditions. No such condition shall
409.7be deemed to exist if it is based on a claim or diagnosis that the woman will engage in
409.8conduct which she intends to result in her death or in substantial and irreversible physical
409.9impairment of a major bodily function.
409.10    Subd. 2. When abortion not prohibited. When an abortion upon a woman whose
409.11unborn child has been determined to have a probable postfertilization age of 20 or more
409.12weeks is not prohibited by this section, the physician shall terminate the pregnancy in
409.13the manner which, in reasonable medical judgment, provides the best opportunity for
409.14the unborn child to survive unless, in reasonable medical judgment, termination of the
409.15pregnancy in that manner would pose a greater risk either of the death of the pregnant
409.16woman or of the substantial and irreversible physical impairment of a major bodily
409.17function, not including psychological or emotional conditions, of the woman than would
409.18other available methods. No such greater risk shall be deemed to exist if it is based on a
409.19claim or diagnosis that the woman will engage in conduct which she intends to result in
409.20her death or in substantial and irreversible physical impairment of a major bodily function.

409.21    Sec. 8. [145.4145] ENFORCEMENT.
409.22    Subdivision 1. Criminal penalties. A person who intentionally or recklessly
409.23performs or induces or attempts to perform or induce an abortion in violation of sections
409.24145.4141 to 145.4147 shall be guilty of a felony. No penalty may be assessed against the
409.25woman upon whom the abortion is performed or induced or attempted to be performed or
409.26induced.
409.27    Subd. 2. Civil remedies. (a) A woman upon whom an abortion has been performed
409.28or induced in violation of sections 145.4141 to 145.4147, or the father of the unborn
409.29child who was the subject of such an abortion, may maintain an action against the person
409.30who performed or induced the abortion in intentional or reckless violation of sections
409.31145.4141 to 145.4147 for damages. A woman upon whom an abortion has been attempted
409.32in violation of sections 145.4141 to 145.4147 may maintain an action against the person
409.33who attempted to perform or induce the abortion in an intentional or reckless violation of
409.34sections 145.4141 to 145.4147 for damages.
410.1(b) A cause of action for injunctive relief against a person who has intentionally
410.2violated sections 145.4141 to 145.4147 may be maintained by the woman upon whom an
410.3abortion was performed or induced or attempted to be performed or induced in violation of
410.4sections 145.4141 to 145.4147; by a person who is the father of the unborn child subject
410.5to an abortion, parent, sibling, or guardian of, or a current or former licensed health
410.6care provider of, the woman upon whom an abortion has been performed or induced or
410.7attempted to be performed or induced in violation of sections 145.4141 to 145.4147; by a
410.8county attorney with appropriate jurisdiction; or by the attorney general. The injunction
410.9shall prevent the abortion provider from performing or inducing or attempting to perform
410.10or induce further abortions in this state in violation of sections 145.4141 to 145.4147.
410.11(c) If judgment is rendered in favor of the plaintiff in an action described in this
410.12section, the court shall also render judgment for reasonable attorney fees in favor of
410.13the plaintiff against the defendant.
410.14(d) If judgment is rendered in favor of the defendant and the court finds that the
410.15plaintiff's suit was frivolous and brought in bad faith, the court shall also render judgment
410.16for reasonable attorney fees in favor of the defendant against the plaintiff.
410.17(e) No damages or attorney fees may be assessed against the woman upon whom
410.18an abortion was performed or induced or attempted to be performed or induced except
410.19according to paragraph (d).

410.20    Sec. 9. [145.4146] PROTECTION OF PRIVACY IN COURT PROCEEDINGS.
410.21In every civil or criminal proceeding or action brought under the Pain-Capable
410.22Unborn Child Protection Act, the court shall rule on whether the anonymity of a woman
410.23upon whom an abortion has been performed or induced or attempted to be performed
410.24or induced shall be preserved from public disclosure if she does not give her consent
410.25to such disclosure. The court, upon motion or sua sponte, shall make such a ruling
410.26and, upon determining that her anonymity should be preserved, shall issue orders to the
410.27parties, witnesses, and counsel and shall direct the sealing of the record and exclusion of
410.28individuals from courtrooms or hearing rooms to the extent necessary to safeguard her
410.29identity from public disclosure. Each such order shall be accompanied by specific written
410.30findings explaining why the anonymity of the woman should be preserved from public
410.31disclosure, why the order is essential to that end, how the order is narrowly tailored to
410.32serve that interest, and why no reasonable, less restrictive alternative exists. In the absence
410.33of written consent of the woman upon whom an abortion has been performed or induced
410.34or attempted to be performed or induced, anyone, other than a public official, who brings
410.35an action under section 145.4145, subdivision 2, shall do so under a pseudonym. This
411.1section may not be construed to conceal the identity of the plaintiff or of witnesses from
411.2the defendant or from attorneys for the defendant.

411.3    Sec. 10. [145.4147] SEVERABILITY.
411.4If any one or more provisions, sections, subsections, sentences, clauses, phrases,
411.5or words of sections 145.4141 to 145.4146, or the application thereof to any person or
411.6circumstance is found to be unconstitutional, the same is hereby declared to be severable
411.7and the balance of sections 145.4141 to 145.4146 shall remain effective notwithstanding
411.8such unconstitutionality. The legislature hereby declares that it would have passed
411.9sections 145.4141 to 145.4146, and each provision, section, subsection, sentence, clause,
411.10phrase, or word thereof, irrespective of the fact that any one or more provisions, sections,
411.11subsections, sentences, clauses, phrases, or words of sections 145.4141 to 145.4146, or the
411.12application of sections 145.4141 to 145.4146, would be declared unconstitutional.


411.15    Section 1. Minnesota Statutes 2013 Supplement, section 16A.724, subdivision 2,
411.16is amended to read:
411.17    Subd. 2. Transfers. (a) Notwithstanding section 295.581, to the extent available
411.18resources in the health care access fund exceed expenditures in that fund, effective for
411.19the biennium beginning July 1, 2007, the commissioner of management and budget shall
411.20transfer the excess funds from the health care access fund to the general fund on June 30
411.21of each year, provided that the amount transferred in any fiscal biennium shall not exceed
411.22$96,000,000. The purpose of this transfer is to meet the rate increase required under Laws
411.232003, First Special Session chapter 14, article 13C, section 2, subdivision 6.
411.24    (b) For fiscal years 2006 to 2011 year 2018 and thereafter, MinnesotaCare shall be a
411.25forecasted program, and, if necessary, the commissioner shall reduce these transfers from
411.26the health care access fund to the general fund to meet annual MinnesotaCare expenditures
411.27or, if necessary, transfer sufficient funds from the general fund to the health care access
411.28fund to meet annual MinnesotaCare expenditures.
411.29(c) Notwithstanding section 295.581, to the extent available resources in the health
411.30care access fund exceed expenditures in that fund after the transfer required in paragraph
411.31(a), effective for the biennium beginning July 1, 2013, the commissioner of management
411.32and budget shall transfer $1,000,000 each fiscal year from the health access fund to
411.33the medical education and research costs fund established under section 62J.692, for
411.34distribution under section 62J.692, subdivision 4, paragraph (c).

412.1    Sec. 2. Minnesota Statutes 2012, section 254B.12, is amended to read:
412.2254B.12 RATE METHODOLOGY.
412.3    Subdivision 1. CCDTF rate methodology established. The commissioner shall
412.4establish a new rate methodology for the consolidated chemical dependency treatment
412.5fund. The new methodology must replace county-negotiated rates with a uniform
412.6statewide methodology that must include a graduated reimbursement scale based on the
412.7patients' level of acuity and complexity. At least biennially, the commissioner shall review
412.8the financial information provided by vendors to determine the need for rate adjustments.
412.9    Subd. 2. Payment methodology for highly specialized vendors. (a)
412.10Notwithstanding subdivision 1, the commissioner shall seek federal authority to develop
412.11a separate payment methodology for chemical dependency treatment services provided
412.12under the consolidated chemical dependency treatment fund for persons who have been
412.13civilly committed to the commissioner, present the most complex and difficult care needs,
412.14and are a potential threat to the community. This payment methodology is effective
412.15for services provided on or after October 1, 2015, or on or after the receipt of federal
412.16approval, whichever is later.
412.17(b) Before implementing an approved payment methodology under paragraph
412.18(a), the commissioner must also receive any necessary legislative approval of required
412.19changes to state law or funding.

412.20    Sec. 3. Minnesota Statutes 2012, section 256I.04, subdivision 2b, is amended to read:
412.21    Subd. 2b. Group residential housing agreements. (a) Agreements between county
412.22agencies and providers of group residential housing must be in writing and must specify
412.23the name and address under which the establishment subject to the agreement does
412.24business and under which the establishment, or service provider, if different from the
412.25group residential housing establishment, is licensed by the Department of Health or the
412.26Department of Human Services; the specific license or registration from the Department
412.27of Health or the Department of Human Services held by the provider and the number
412.28of beds subject to that license; the address of the location or locations at which group
412.29residential housing is provided under this agreement; the per diem and monthly rates that
412.30are to be paid from group residential housing funds for each eligible resident at each
412.31location; the number of beds at each location which are subject to the group residential
412.32housing agreement; whether the license holder is a not-for-profit corporation under section
412.33501(c)(3) of the Internal Revenue Code; and a statement that the agreement is subject to
412.34the provisions of sections 256I.01 to 256I.06 and subject to any changes to those sections.
413.1Group residential housing agreements may be terminated with or without cause by either
413.2the county or the provider with two calendar months prior notice.
413.3(b) The commissioner may enter directly into an agreement with a provider serving
413.4veterans who meet the eligibility criteria of this section and reside in a setting according to
413.5subdivision 2a, located in Stearns County. Responsibility for monitoring and oversight of
413.6this setting shall remain with Stearns County. This agreement may be terminated with
413.7or without cause by either the commissioner or the provider with two calendar months
413.8prior notice. This agreement shall be subject to the requirements of county agreements
413.9and negotiated rates in subdivisions 1, paragraphs (a) and (b), and 2, and sections 256I.05,
413.10subdivisions 1 and 1c, and 256I.06, subdivision 7.
413.11EFFECTIVE DATE.This section is effective July 1, 2015.

413.12    Sec. 4. Minnesota Statutes 2012, section 256I.05, subdivision 2, is amended to read:
413.13    Subd. 2. Monthly rates; exemptions. The maximum group residential housing rate
413.14does not apply This subdivision applies to a residence that on August 1, 1984, was licensed
413.15by the commissioner of health only as a boarding care home, certified by the commissioner
413.16of health as an intermediate care facility, and licensed by the commissioner of human
413.17services under Minnesota Rules, parts 9520.0500 to 9520.0690. Notwithstanding the
413.18provisions of subdivision 1c, the rate paid to a facility reimbursed under this subdivision
413.19shall be determined under section 256B.431, or under section 256B.434 if the facility is
413.20accepted by the commissioner for participation in the alternative payment demonstration
413.21project. The rate paid to this facility shall also include adjustments to the group residential
413.22housing rate according to subdivision 1, and any adjustments applicable to supplemental
413.23service rates statewide.

413.24    Sec. 5. CIVIL COMMITMENT TRAINING PROGRAM.
413.25The commissioner of human services shall develop an online training program for
413.26interested individuals and personnel, specifically county and hospital staff and mental
413.27health providers, to understand, clarify, and interpret the Civil Commitment Act under
413.28Minnesota Statutes, chapter 253B, as it pertains to persons with mental illnesses. The
413.29training must be developed in collaboration with the ombudsman for mental health
413.30and developmental disabilities, Minnesota County Attorneys Association, National
413.31Alliance on Mental Illness of Minnesota, Mental Health Consumer/Survivor Network
413.32of Minnesota, State Advisory Council on Mental Health, Mental Health Association,
413.33Minnesota Psychiatric Society, Hennepin Commitment Defense Panel, Minnesota
413.34Disability Law Center, Minnesota Association of Community Mental Health Programs,
414.1Minnesota Hospital Association, and Minnesota Board of Public Defense. The purpose of
414.2the training is to promote better clarity and interpretation of the civil commitment laws.

414.3    Sec. 6. DIRECTION TO COMMISSIONER; REPORT ON PROGRAM
414.4WAITING LISTS.
414.5In preparing background materials for the 2016-2017 biennium, the commissioner
414.6of human services shall prepare a listing of all of the waiting lists for services that the
414.7department oversees and directs. The listing shall identify the number of persons on those
414.8waiting lists as of October 1, 2014, an estimate of the cost of serving them based on
414.9current average costs, and an estimate of the number of jobs that would be created given
414.10current average levels of staffing if the waiting list were eliminated. The commissioner
414.11is encouraged to engage postsecondary students in the assembly, analysis, and reporting
414.12of this information. The information shall be provided to the governor, the chairs and
414.13ranking minority members of the legislative committees with jurisdiction over health and
414.14human services policy and finance, and the Legislative Reference Library in electronic
414.15form by December 1, 2014.

414.16    Sec. 7. MENTALLY ILL OFFENDERS ARRESTED OR SUBJECT TO
414.17ARREST; WORKING GROUP.
414.18    Subdivision 1. Working group established; study and draft legislation required.
414.19The commissioner of human services may convene a working group to address issues
414.20related to offenders with mental illness who are arrested or subject to arrest. The working
414.21group shall consider the special needs of these offenders and determine how best to
414.22provide for these needs. Specifically, the group shall consider the efficacy of a facility
414.23that would serve as a central point for accepting, assessing, and addressing the needs of
414.24offenders with mental illness brought in by law enforcement as an alternative to arrest or
414.25following arrest. The facility would consolidate and coordinate existing resources as well
414.26as offer new resources that would provide a continuum of care addressing the immediate,
414.27short-term, and long-term needs of these offenders. The facility would do the following for
414.28these offenders: perform timely, credible, and useful mental health assessments; identify
414.29community placement opportunities; coordinate community care; make recommendations
414.30concerning pretrial release when appropriate; and, in some cases, provide direct services
414.31to offenders at the facility or in nearby jails. The working group shall establish criteria
414.32to determine which offenders may be admitted to the facility. The facility would be
414.33located in the metropolitan region and serve the needs of nearby counties. The facility
414.34would represent a partnership between the state, local units of government, and the private
415.1sector. In addition, the working group may consider how similar facilities could function
415.2in outstate areas. When studying this issue, the working group shall examine what other
415.3states have done in this area to determine what programs have been successful and use
415.4those programs as models in developing the program in Minnesota. The working group
415.5may also study and make recommendations on other ways to improve the process for
415.6addressing and assisting these offenders. The commissioner shall enter into an agreement
415.7with NAMI Minnesota to carry out the work of the working group.
415.8    Subd. 2. Membership. The commissioner shall ensure that the working group
415.9has expertise and a broad range of interests represented, including, but not limited to:
415.10prosecutors; law enforcement, including jail staff; correctional officials; probation
415.11officials; criminal defense attorneys; judges; county and city officials; mental health
415.12advocates; mental health professionals; and hospital and health care officials.
415.13    Subd. 3. Administrative issues. (a) The commissioner shall convene the first
415.14meeting of the working group by September 1, 2014. NAMI Minnesota shall provide
415.15meeting space and administrative support to the working group. The working group shall
415.16select a chair from among its members.
415.17(b) The commissioner may solicit in-kind support from work group member
415.18agencies to accomplish its assigned duties.
415.19    Subd. 4. Report required. By January 1, 2015, the working group shall submit a
415.20report to the chairs and ranking minority members of the senate and house of representatives
415.21committees and divisions having jurisdiction over human services and public safety. The
415.22report must summarize the working group's activities and include its recommendations
415.23and draft legislation. The recommendations must be specific and include estimates of the
415.24costs involved in implementing the recommendations, including the funding sources that
415.25might be used to pay for it. The working group shall explore potential funding sources
415.26at the federal, local, and private levels, and provide this information in the report. In
415.27addition, the report must include draft legislation to implement the recommendations.

415.28    Sec. 8. RECOMMENDATIONS; DRAFT LEGISLATION; IMPLEMENTATION
415.29PLAN; UNIFORM PUBLIC ASSISTANCE PROGRAM ELIGIBILITY.
415.30The commissioner of human services, in consultation with counties, tribes, and
415.31program participants, shall prepare draft legislation to implement uniform public
415.32assistance program eligibility and verification for the following programs: general
415.33assistance under Minnesota Statutes, chapter 256D; Minnesota supplemental aid under
415.34Minnesota Statutes, chapter 256D; group residential housing under Minnesota Statutes,
415.35chapter 256I; and the Minnesota family investment program under Minnesota Statutes,
416.1chapter 256J. In order to provide further uniformity and simplification of assistance
416.2programs under Minnesota Statutes, chapters 256D, 256I, and 256J, the commissioner
416.3of human services, in consultation with counties, tribes, and program participants, may
416.4prepare legislation to plan for the implementation of prospective budgeting, three-month
416.5reporting, uniform reporting, and budgeting standards. The commissioner may provide
416.6recommendations and a plan for implementation to the legislative committees with
416.7jurisdiction over health and human services policy and finance.

416.8    Sec. 9. DETOXIFICATION SERVICES; INSTRUCTIONS TO THE
416.9COMMISSIONER.
416.10The commissioner of human services shall develop a plan to include detoxification
416.11services as a covered medical assistance benefit and present the plan to the legislature
416.12by December 15, 2014.

416.15

Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.

416.16The sums shown in the columns marked "Appropriations" are added to or, if shown
416.17in parentheses, subtracted from the appropriations in Laws 2013, chapter 108, articles 14
416.18and 15, to the agencies and for the purposes specified in this article. The appropriations
416.19are from the general fund and are available for the fiscal years indicated for each purpose.
416.20The figures "2014" and "2015" used in this article mean that the addition to or subtraction
416.21from the appropriation listed under them is available for the fiscal year ending June 30,
416.222014, or June 30, 2015, respectively. Supplemental appropriations and reductions to
416.23appropriations for the fiscal year ending June 30, 2014, are effective the day following
416.24final enactment unless a different effective date is explicit.

416.25				APPROPRIATIONS
416.26				Available for the Year
416.27				Ending June 30
416.28					2014		2015

416.29 416.30

Sec. 2. COMMISSIONER OF HUMAN SERVICES

416.31

Subdivision 1.Total Appropriation

(1,073,000)

91,953,000

416.32	Appropriations by Fund
416.33	General	(1,073,000)	89,606,000
416.34	Federal TANF	-0-	2,347,000

417.1The appropriation modifications for
417.2each purpose are shown in the following
417.3subdivisions.

417.4

Subd. 2.Central Office Operations

417.5

(a) Operations

-0-

63,000

417.6Base adjustment. The general fund base is
417.7decreased by $6,000 in fiscal years 2016 and
417.82017.

417.9

(b) Children and Families

-0-

200,000

417.10

(c) Health Care

-0-

113,000

417.11Base adjustment. The general fund base is
417.12increased by $108,000 in fiscal years 2016
417.13and 2017.

417.14

(d) Continuing Care

-0-

1,084,000

417.15Base adjustment. The general fund base is
417.16increased by $156,000 in fiscal year 2016
417.17and $19,000 in fiscal year 2017.

417.18

(e) Chemical and Mental Health

-0-

115,000

417.19

Subd. 3.Forecasted Programs

417.20

(a) MFIP/DWP

417.21	Appropriations by Fund
417.22	General	-0-	122,000
417.23	Federal TANF	-0-	1,995,000

417.24

(b) Group Residential Housing

-0-

681,000

417.25

(c) Medical Assistance

(1,058,000)

80,827,000

417.26

(d) Alternative Care

-0-

965,000

417.27

Subd. 4.Grant Programs

417.28

(a) Children's Services Grants

-0-

(3,000)

417.29Base adjustment. The general fund base is
417.30increased by $9,000 in fiscal year 2017.

417.31

(b) Child and Economic Support Grants

-0-

1,669,000

418.1Safe harbor. $569,000 in fiscal year 2015
418.2from the general fund is for housing and
418.3supportive services for sexually exploited
418.4youth.
418.5Homeless youth. $1,100,000 in fiscal year
418.62015 is for purposes of Minnesota Statutes,
418.7section 256K.45.

418.8

(c) Aging and Adult Services Grants

(15,000)

1,541,000

418.9Senior nutrition. $579,000 in fiscal year
418.102015 from the general fund is for congregate
418.11dining services under Minnesota Statutes,
418.12section 256.9752.
418.13Base adjustment. The general fund base is
418.14decreased by $429,000 in fiscal year 2016
418.15and $419,000 in fiscal year 2017.

418.16

(d) Deaf and Hard-of-Hearing Grants

-0-

81,000

418.17Base adjustment. The general fund base is
418.18increased by $6,000 in fiscal years 2016 and
418.192017.

418.20

(e) Disabilities Grants

-0-

1,267,000

418.21Base adjustment. The general fund base is
418.22increased by $224,000 in fiscal year 2016
418.23and $233,000 in fiscal year 2017.

418.24

Subd. 5.State-Operated Services

418.25

(a) SOS Mental Health

-0-

881,000

418.26Civil commitments. $35,000 in fiscal year
418.272015 is for developing an online training
418.28program to help interested parties understand
418.29the civil commitment process.
418.30Base adjustment. The general fund base is
418.31increased by $213,000 in fiscal years 2016
418.32and 2017.

418.33

(b) SOS Enterprise Services

-0-

-0-

419.1Community Addiction Recovery
419.2Enterprise deficiency funding.
419.3Notwithstanding Minnesota Statutes, section
419.4254B.06, subdivision 1, $4,000,000 is
419.5transferred in fiscal years 2014 and 2015
419.6from the consolidated chemical dependency
419.7treatment fund administrative account in the
419.8special revenue fund and deposited into the
419.9enterprise fund for the Community Addiction
419.10Recovery Enterprise. This clause is effective
419.11the day following final enactment.

419.12

Subd. 6.Technical Activities

419.13

MFIP Child Care Assistance

419.14	Appropriations by Fund
419.15	Federal TANF	-0-	352,000

419.16

Sec. 3. COMMISSIONER OF HEALTH.

419.17

Subdivision 1.Total Appropriation

$

867,000

$

1,701,000

419.18	Appropriations by Fund
419.19		2014	2015
419.20	General	1,050,000	1,894,000
419.21 419.22	State Government Special Revenue	817,000	807,000
419.23	Health Care Access	(1,000,000)	(1,000,000)

419.24

Subd. 2.Health Improvement

419.25	Appropriations by Fund
419.26	General	75,000	1,719,000

419.27Poison information centers. $550,000
419.28in fiscal year 2015 from the general fund
419.29is for regional poison information centers
419.30under Minnesota Statutes, section 145.93,
419.31and is added to the base. The appropriation
419.32is (1) to enhance staffing to meet national
419.33accreditation standards; (2) for health care
419.34provider education and training; (3) for
420.1surveillance of emerging toxicology and
420.2poison issues; and (4) to cooperate with local
420.3public health officials on outreach efforts.
420.4Minority health disparity grants. $100,000
420.5in fiscal year 2014 and $475,000 in fiscal
420.6year 2015 are for the commissioner of health
420.7to begin implementing recommendations of
420.8the health equity report under Laws 2013,
420.9chapter 108, article 12, section 102. This
420.10funding is onetime and shall not become part
420.11of base funding. Funds must be distributed
420.12as follows:
420.13(1) $100,000 in fiscal year 2014 and
420.14$100,000 in fiscal year 2015 are for dementia
420.15outreach education and training grants
420.16targeting minority communities under article
420.1723, section 7;
420.18(2) $75,000 in fiscal year 2015 is for planning
420.19and conducting a training conference on
420.20immigrant and refugee mental health issues.
420.21The conference shall include an emphasis
420.22on mental health concerns in the Somali
420.23community. Conference planning shall
420.24include input from the Somali community
420.25and other stakeholders. This is a onetime
420.26appropriation;
420.27(3) up to $150,000 in fiscal year 2015 is
420.28for additional grants, including but not
420.29limited to a grant to a Somali women-led
420.30health care agency. Grantees must use
420.31community-based, participatory research to
420.32address health inequities and provide services
420.33through culturally specific, minority-centered
420.34programs; and
421.1(4) remaining funds shall be used for
421.2redesigning agency grant making to advance
421.3health equity, ensuring that health equity and
421.4the analysis of structural inequities become
421.5integral aspects of all agency divisions and
421.6programs, and awarding additional grants to
421.7address health equity issues.
421.8Safe harbor. $569,000 in fiscal year
421.92015 from the general fund is for grants
421.10for comprehensive services, including
421.11trauma-informed, culturally specific
421.12services, for sexually exploited youth. The
421.13commissioner shall use no more than 6.67
421.14percent of these funds for administration of
421.15the grants.
421.16Ambulance services in underserved areas.
421.17 $100,000 in fiscal year 2015 from the general
421.18fund is for a grant to the Leech Lake Band
421.19of Ojibwe ambulance service for equipment
421.20upgrades necessary to meet the qualifications
421.21for licensure as an advanced life support
421.22ambulance service under Minnesota Statutes,
421.23chapter 144E. This is a onetime appropriation.
421.24Base level adjustment. The general fund
421.25base for fiscal year 2016 is $47,619,000.
421.26The general fund base for fiscal year 2017
421.27is $47,669,000.

421.28

Subd. 3.Policy Quality and Compliance

421.29	Appropriations by Fund
421.30	General	-0-	75,000
421.31 421.32	State Government Special Revenue	-0-	143,000
421.33	Health Care Access	(1,000,000)	(1,000,000)

421.34Legislative health care workforce
421.35commission. $75,000 in fiscal year 2015 is
422.1for the health care workforce commission
422.2in article 24, section 6. This is a onetime
422.3appropriation.
422.4Spoken language health care interpreters.
422.5$81,000 in fiscal year 2015 from the state
422.6government special revenue fund is to
422.7develop a proposal to promote health equity
422.8and quality health outcomes through changes
422.9to laws governing spoken language health
422.10care interpreters. The commissioner shall
422.11consult with spoken language health care
422.12interpreters, organizations that employ
422.13these interpreters, organizations that pay for
422.14interpreter services, health care providers
422.15who use interpreters, clients who use
422.16interpreters, and community organizations
422.17serving non-English speaking populations.
422.18The commissioner shall draft legislation
422.19and submit a report that documents the
422.20process followed and the rationale for
422.21the recommendations to the committees
422.22with jurisdiction over health and human
422.23services by January 15, 2015. In drafting the
422.24legislation and report, the commissioner must
422.25consider input received from individuals and
422.26organizations consulted and must address
422.27issues related to:
422.28(1) qualifications for spoken language health
422.29care interpreters that assure quality service to
422.30health care providers and their patients;
422.31(2) methods to support the education and
422.32skills development of spoken language health
422.33care interpreters serving Minnesotans;
422.34(3) the role of an advisory council in
422.35maintaining a quality system for spoken
423.1language health care interpreting in
423.2Minnesota;
423.3(4) management of complaints regarding
423.4spoken language health care interpreters,
423.5including investigation and enforcement
423.6actions;
423.7(5) an appropriate structure for oversight of
423.8spoken language health care interpreters,
423.9including administrative and technology
423.10requirements; and
423.11(6) other issues that address qualifications,
423.12quality, access, and affordability of spoken
423.13language interpreter services.
423.14This is a onetime appropriation.
423.15Base level adjustment. The state
423.16government special revenue fund base
423.17for fiscal years 2016 and 2017 shall be
423.18$16,529,000.

423.19

Subd. 4.Health Protection

423.20	Appropriations by Fund
423.21	General	0	100,000
423.22 423.23	State Government Special Revenue	817,000	648,000

423.24Healthy housing. $100,000 in fiscal year
423.252015 from the general fund is for education
423.26and training grants under Minnesota Statutes,
423.27section 144.9513, subdivision 3, and is added
423.28to the base.

423.29

Subd. 5.Administrative Support Services

975,000

16,000

423.30	Appropriations by Fund
423.31	General	975,000	-0-
423.32 423.33	State Government Special Revenue	-0-	16,000

423.34Lawsuit settlement. In fiscal year 2014,
423.35$975,000 from the general fund is a onetime
424.1appropriation for the cost of settling the
424.2lawsuit Bearder v. State.

424.3 424.4 424.5

Sec. 4. OMBUDSMAN FOR MENTAL HEALTH AND DEVELOPMENTAL DISABILITIES

$

100,000

$

100,000

424.6    Sec. 5. Laws 2013, chapter 1, section 6, as amended by Laws 2013, chapter 108,
424.7article 6, section 32, is amended to read:
424.8    Sec. 6. TRANSFER.
424.9(a) The commissioner of management and budget shall transfer from the health care
424.10access fund to the general fund up to $21,319,000 in fiscal year 2014; up to $42,314,000
424.11in fiscal year 2015; up to $56,147,000 in fiscal year 2016; and up to $64,683,000 in fiscal
424.12year 2017.
424.13(b) The commissioner of human services shall determine the difference between the
424.14actual or forecasted cost to the medical assistance program of adding 19- and 20-year-olds
424.15and parents and relative caretaker populations with income between 100 and 138 percent of
424.16the federal poverty guidelines and the cost of adding those populations that was estimated
424.17during the 2013 legislative session based on the data from the February 2013 forecast.
424.18(c) For each fiscal year from 2014 to 2017, the commissioner of human services shall
424.19certify and report to the commissioner of management and budget the actual or forecasted
424.20 estimated cost difference of adding 19- and 20-year-olds and parents and relative caretaker
424.21populations with income between 100 and 138 percent of the federal poverty guidelines,
424.22as determined under paragraph (b), to the commissioner of management and budget at
424.23least four weeks prior to the release of a forecast under Minnesota Statutes, section
424.2416A.103 , of each fiscal year.
424.25(d) No later than three weeks before the release of the forecast For fiscal years 2014 to
424.262017, forecasts under Minnesota Statutes, section 16A.103, prepared by the commissioner
424.27of management and budget shall reduce the include actual or estimated adjustments to
424.28health care access fund transfer transfers in paragraph (a), by the cumulative differences in
424.29costs reported by the commissioner of human services under according to paragraph (c)
424.30 (e). If, for any fiscal year, the amount of the cumulative cost differences determined under
424.31paragraph (b) is positive, no change is made to the appropriation. If, for any fiscal year,
424.32the amount of the cumulative cost differences determined under paragraph (b) is less than
424.33the amount of the original appropriation, the appropriation for that year must be zero.
424.34(e) For each fiscal year from 2014 to 2017, the commissioner of management and
424.35budget must adjust the transfer amounts in paragraph (a) by the cumulative difference in
425.1costs reported by the commissioner of human services under paragraph (c). If, for any
425.2fiscal year, the amount of the cumulative difference in costs reported under paragraph (c)
425.3is positive, no adjustment shall be made.
425.4EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

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

425.6

Subd. 5.Forecasted Programs

425.7The amounts that may be spent from this
425.8appropriation for each purpose are as follows:

425.9

(a) MFIP/DWP

425.10	Appropriations by Fund
425.11	General	72,583,000	76,927,000
425.12	Federal TANF	80,342,000	76,851,000

425.13

(b) MFIP Child Care Assistance

61,701,000

69,294,000

425.14

(c) General Assistance

54,787,000

56,068,000

425.15General Assistance Standard. The
425.16commissioner shall set the monthly standard
425.17of assistance for general assistance units
425.18consisting of an adult recipient who is
425.19childless and unmarried or living apart
425.20from parents or a legal guardian at $203.
425.21The commissioner may reduce this amount
425.22according to Laws 1997, chapter 85, article
425.233, section 54.
425.24Emergency General Assistance. The
425.25amount appropriated for emergency general
425.26assistance funds is limited to no more
425.27than $6,729,812 in fiscal year 2014 and
425.28$6,729,812 in fiscal year 2015. Funds
425.29to counties shall be allocated by the
425.30commissioner using the allocation method in
425.31Minnesota Statutes, section 256D.06.

425.32

(d) MN Supplemental Assistance

38,646,000

39,821,000

426.1

(e) Group Residential Housing

141,138,000

150,988,000

426.2

(f) MinnesotaCare

297,707,000

247,284,000

426.3This appropriation is from the health care
426.4access fund.

426.5

(g) Medical Assistance

426.6	Appropriations by Fund
426.7	General	4,443,768,000	4,431,612,000
426.8	Health Care Access	179,550,000	226,081,000

426.9Base Adjustment. The health care access
426.10fund base is $221,035,000 in fiscal year 2016
426.11and $221,035,000 in fiscal year 2017.
426.12Spending to be apportioned. The
426.13commissioner shall apportion expenditures
426.14under this paragraph consistent with the
426.15requirements of section 12.
426.16Support Services for Deaf and
426.17Hard-of-Hearing. $121,000 in fiscal
426.18year 2014 and $141,000 in fiscal year 2015;
426.19and $10,000 in fiscal year 2014 and $13,000
426.20in fiscal year 2015 are from the health care
426.21access fund for the hospital reimbursement
426.22increase in Minnesota Statutes, section
426.23256.969, subdivision 29 , paragraph (b).
426.24Disproportionate Share Payments.
426.25Effective for services provided on or after
426.26July 1, 2011, through June 30, 2015, the
426.27commissioner of human services shall
426.28deposit, in the health care access fund,
426.29additional federal matching funds received
426.30under Minnesota Statutes, section 256B.199,
426.31paragraph (e), as disproportionate share
426.32hospital payments for inpatient hospital
426.33services provided under MinnesotaCare to
426.34lawfully present noncitizens who are not
427.1eligible for MinnesotaCare with federal
427.2financial participation due to immigration
427.3status. The amount deposited shall not exceed
427.4$2,200,000 for the time period specified.
427.5Funding for Services Provided to EMA
427.6Recipients. $2,200,000 in fiscal year 2014 is
427.7from the health care access fund to provide
427.8services to emergency medical assistance
427.9recipients under Minnesota Statutes, section
427.10256B.06, subdivision 4 , paragraph (l). This
427.11is a onetime appropriation and is available in
427.12either year of the biennium.

427.13

(h) Alternative Care

50,776,000

54,922,000

427.14Alternative Care Transfer. Any money
427.15allocated to the alternative care program that
427.16is not spent for the purposes indicated does
427.17not cancel but shall be transferred to the
427.18medical assistance account.

427.19

(i) CD Treatment Fund

81,440,000

74,875,000

427.20Balance Transfer. The commissioner must
427.21transfer $18,188,000 from the consolidated
427.22chemical dependency treatment fund to the
427.23general fund by September 30, 2013.
427.24EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

427.25    Sec. 7. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by
427.26Laws 2013, chapter 144, section 25, is amended to read:

427.27

Subd. 6.Grant Programs

427.28The amounts that may be spent from this
427.29appropriation for each purpose are as follows:

427.30

(a) Support Services Grants

428.1	Appropriations by Fund
428.2	General	8,915,000	13,333,000
428.3	Federal TANF	94,611,000	94,611,000

428.4Paid Work Experience. $2,168,000
428.5each year in fiscal years 2015 and 2016
428.6is from the general fund for paid work
428.7experience for long-term MFIP recipients.
428.8Paid work includes full and partial wage
428.9subsidies and other related services such as
428.10job development, marketing, preworksite
428.11training, job coaching, and postplacement
428.12services. These are onetime appropriations.
428.13Unexpended funds for fiscal year 2015 do not
428.14cancel, but are available to the commissioner
428.15for this purpose in fiscal year 2016.
428.16Work Study Funding for MFIP
428.17Participants. $250,000 each year in fiscal
428.18years 2015 and 2016 is from the general fund
428.19to pilot work study jobs for MFIP recipients
428.20in approved postsecondary education
428.21programs. This is a onetime appropriation.
428.22Unexpended funds for fiscal year 2015 do
428.23not cancel, but are available for this purpose
428.24in fiscal year 2016.
428.25Local Strategies to Reduce Disparities.
428.26$2,000,000 each year in fiscal years 2015
428.27and 2016 is from the general fund for
428.28local projects that focus on services for
428.29subgroups within the MFIP caseload
428.30who are experiencing poor employment
428.31outcomes. These are onetime appropriations.
428.32Unexpended funds for fiscal year 2015 do not
428.33cancel, but are available to the commissioner
428.34for this purpose in fiscal year 2016.
429.1Home Visiting Collaborations for MFIP
429.2Teen Parents. $200,000 per year in fiscal
429.3years 2014 and 2015 is from the general fund
429.4and $200,000 in fiscal year 2016 is from the
429.5federal TANF fund for technical assistance
429.6and training to support local collaborations
429.7that provide home visiting services for
429.8MFIP teen parents. The general fund
429.9appropriation is onetime. The federal TANF
429.10fund appropriation is added to the base.
429.11Performance Bonus Funds for Counties.
429.12The TANF fund base is increased by
429.13$1,500,000 each year in fiscal years 2016
429.14and 2017. The commissioner must allocate
429.15this amount each year to counties that exceed
429.16their expected range of performance on the
429.17annualized three-year self-support index
429.18as defined in Minnesota Statutes, section
429.19256J.751, subdivision 2 , clause (6). This is a
429.20permanent base adjustment. Notwithstanding
429.21any contrary provisions in this article, this
429.22provision expires June 30, 2016.
429.23Base Adjustment. The general fund base is
429.24decreased by $200,000 in fiscal year 2016
429.25and $4,618,000 in fiscal year 2017. The
429.26TANF fund base is increased by $1,700,000
429.27in fiscal years 2016 and 2017.

429.28 429.29

(b) Basic Sliding Fee Child Care Assistance Grants

36,836,000

42,318,000

429.30Base Adjustment. The general fund base is
429.31increased by $3,778,000 in fiscal year 2016
429.32and by $3,849,000 in fiscal year 2017.

429.33

(c) Child Care Development Grants

1,612,000

1,737,000

429.34

(d) Child Support Enforcement Grants

50,000

50,000

430.1Federal Child Support Demonstration
430.2Grants. Federal administrative
430.3reimbursement resulting from the federal
430.4child support grant expenditures authorized
430.5under United States Code, title 42, section
430.61315, is appropriated to the commissioner
430.7for this activity.

430.8

(e) Children's Services Grants

430.9	Appropriations by Fund
430.10	General	49,760,000	52,961,000
430.11	Federal TANF	140,000	140,000

430.12Adoption Assistance and Relative Custody
430.13Assistance. $37,453,000 $36,456,000
430.14 in fiscal year 2014 and $37,453,000
430.15 $36,855,000 in fiscal year 2015 is for the
430.16adoption assistance and relative custody
430.17assistance programs. The commissioner
430.18shall determine with the commissioner of
430.19Minnesota Management and Budget the
430.20appropriation for Northstar Care for Children
430.21effective January 1, 2015. The commissioner
430.22may transfer appropriations for adoption
430.23assistance, relative custody assistance, and
430.24Northstar Care for Children between fiscal
430.25years and among programs to adjust for
430.26transfers across the programs.
430.27Title IV-E Adoption Assistance. Additional
430.28federal reimbursements to the state as a result
430.29of the Fostering Connections to Success
430.30and Increasing Adoptions Act's expanded
430.31eligibility for Title IV-E adoption assistance
430.32are appropriated for postadoption services,
430.33including a parent-to-parent support network.
430.34Privatized Adoption Grants. Federal
430.35reimbursement for privatized adoption grant
431.1and foster care recruitment grant expenditures
431.2is appropriated to the commissioner for
431.3adoption grants and foster care and adoption
431.4administrative purposes.
431.5Adoption Assistance Incentive Grants.
431.6Federal funds available during fiscal years
431.72014 and 2015 for adoption incentive grants
431.8are appropriated for postadoption services,
431.9including a parent-to-parent support network.
431.10Base Adjustment. The general fund base is
431.11increased by $5,913,000 in fiscal year 2016
431.12and by $10,297,000 in fiscal year 2017.

431.13

(f) Child and Community Service Grants

53,301,000

53,301,000

431.14

(g) Child and Economic Support Grants

21,047,000

20,848,000

431.15Minnesota Food Assistance Program.
431.16Unexpended funds for the Minnesota food
431.17assistance program for fiscal year 2014 do
431.18not cancel but are available for this purpose
431.19in fiscal year 2015.
431.20Transitional Housing. $250,000 each year
431.21is for the transitional housing programs under
431.22Minnesota Statutes, section 256E.33.
431.23Emergency Services. $250,000 each year
431.24is for emergency services grants under
431.25Minnesota Statutes, section 256E.36.
431.26Family Assets for Independence. $250,000
431.27each year is for the Family Assets for
431.28Independence Minnesota program. This
431.29appropriation is available in either year of the
431.30biennium and may be transferred between
431.31fiscal years.
431.32Food Shelf Programs. $375,000 in fiscal
431.33year 2014 and $375,000 in fiscal year
431.342015 are for food shelf programs under
432.1Minnesota Statutes, section 256E.34. If the
432.2appropriation for either year is insufficient,
432.3the appropriation for the other year is
432.4available for it. Notwithstanding Minnesota
432.5Statutes, section 256E.34, subdivision 4, no
432.6portion of this appropriation may be used
432.7by Hunger Solutions for its administrative
432.8expenses, including but not limited to rent
432.9and salaries.
432.10Homeless Youth Act. $2,000,000 in fiscal
432.11year 2014 and $2,000,000 in fiscal year 2015
432.12is for purposes of Minnesota Statutes, section
432.13256K.45 .
432.14Safe Harbor Shelter and Housing.
432.15$500,000 in fiscal year 2014 and $500,000 in
432.16fiscal year 2015 is for a safe harbor shelter
432.17and housing fund for housing and supportive
432.18services for youth who are sexually exploited.
432.19High-risk adults. $200,000 in fiscal
432.20year 2014 is for a grant to the nonprofit
432.21organization selected to administer the
432.22demonstration project for high-risk adults
432.23under Laws 2007, chapter 54, article 1,
432.24section 19, in order to complete the project.
432.25This is a onetime appropriation.

432.26

(h) Health Care Grants

432.27	Appropriations by Fund
432.28	General	190,000	190,000
432.29	Health Care Access	190,000	190,000

432.30Emergency Medical Assistance Referral
432.31and Assistance Grants. (a) The
432.32commissioner of human services shall
432.33award grants to nonprofit programs that
432.34provide immigration legal services based
432.35on indigency to provide legal services for
433.1immigration assistance to individuals with
433.2emergency medical conditions or complex
433.3and chronic health conditions who are not
433.4currently eligible for medical assistance
433.5or other public health care programs, but
433.6who may meet eligibility requirements with
433.7immigration assistance.
433.8(b) The grantees, in collaboration with
433.9hospitals and safety net providers, shall
433.10provide referral assistance to connect
433.11individuals identified in paragraph (a) with
433.12alternative resources and services to assist in
433.13meeting their health care needs. $100,000
433.14is appropriated in fiscal year 2014 and
433.15$100,000 in fiscal year 2015. This is a
433.16onetime appropriation.
433.17Base Adjustment. The general fund is
433.18decreased by $100,000 in fiscal year 2016
433.19and $100,000 in fiscal year 2017.

433.20

(i) Aging and Adult Services Grants

14,827,000

15,010,000

433.21Base Adjustment. The general fund is
433.22increased by $1,150,000 in fiscal year 2016
433.23and $1,151,000 in fiscal year 2017.
433.24Community Service Development
433.25Grants and Community Services Grants.
433.26Community service development grants and
433.27community services grants are reduced by
433.28$1,150,000 each year. This is a onetime
433.29reduction.

433.30

(j) Deaf and Hard-of-Hearing Grants

1,771,000

1,785,000

433.31

(k) Disabilities Grants

18,605,000

18,823,000

433.32Advocating Change Together. $310,000 in
433.33fiscal year 2014 is for a grant to Advocating
433.34Change Together (ACT) to maintain and
434.1promote services for persons with intellectual
434.2and developmental disabilities throughout
434.3the state. This appropriation is onetime. Of
434.4this appropriation:
434.5(1) $120,000 is for direct costs associated
434.6with the delivery and evaluation of
434.7peer-to-peer training programs administered
434.8throughout the state, focusing on education,
434.9employment, housing, transportation, and
434.10voting;
434.11(2) $100,000 is for delivery of statewide
434.12conferences focusing on leadership and
434.13skill development within the disability
434.14community; and
434.15(3) $90,000 is for administrative and general
434.16operating costs associated with managing
434.17or maintaining facilities, program delivery,
434.18staff, and technology.
434.19Base Adjustment. The general fund base
434.20is increased by $535,000 in fiscal year 2016
434.21and by $709,000 in fiscal year 2017.

434.22

(l) Adult Mental Health Grants

434.23	Appropriations by Fund
434.24	General	71,199,000	69,530,000
434.25	Health Care Access	750,000	750,000
434.26	Lottery Prize	1,733,000	1,733,000

434.27Compulsive Gambling Treatment. Of the
434.28general fund appropriation, $602,000 in
434.29fiscal year 2014 and $747,000 in fiscal year
434.302015 are for compulsive gambling treatment
434.31under Minnesota Statutes, section 297E.02,
434.32subdivision 3 , paragraph (c).
434.33Problem Gambling. $225,000 in fiscal year
434.342014 and $225,000 in fiscal year 2015 is
434.35appropriated from the lottery prize fund for a
435.1grant to the state affiliate recognized by the
435.2National Council on Problem Gambling. The
435.3affiliate must provide services to increase
435.4public awareness of problem gambling,
435.5education and training for individuals and
435.6organizations providing effective treatment
435.7services to problem gamblers and their
435.8families, and research relating to problem
435.9gambling.
435.10Funding Usage. Up to 75 percent of a fiscal
435.11year's appropriations for adult mental health
435.12grants may be used to fund allocations in that
435.13portion of the fiscal year ending December
435.1431.
435.15Base Adjustment. The general fund base is
435.16decreased by $4,427,000 in fiscal years 2016
435.17and 2017.
435.18Mental Health Pilot Project. $230,000
435.19each year is for a grant to the Zumbro
435.20Valley Mental Health Center. The grant
435.21shall be used to implement a pilot project
435.22to test an integrated behavioral health care
435.23coordination model. The grant recipient must
435.24report measurable outcomes and savings
435.25to the commissioner of human services
435.26by January 15, 2016. This is a onetime
435.27appropriation.
435.28High-risk adults. $200,000 in fiscal
435.29year 2014 is for a grant to the nonprofit
435.30organization selected to administer the
435.31demonstration project for high-risk adults
435.32under Laws 2007, chapter 54, article 1,
435.33section 19, in order to complete the project.
435.34This is a onetime appropriation.

435.35

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

437.33 437.34

Subdivision 1.Total Appropriation

$

169,326,000 169,026,000

$

165,531,000 165,231,000

438.1	Appropriations by Fund
438.2		2014	2015
438.3	General	79,476,000	74,256,000
438.4 438.5	State Government Special Revenue	48,094,000	50,119,000
438.6	Health Care Access	29,743,000	29,143,000
438.7	Federal TANF	11,713,000	11,713,000
438.8	Special Revenue	300,000	300,000

438.9The amounts that may be spent for each
438.10purpose are specified in the following
438.11subdivisions.

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

438.13

Subd. 4.Health Protection

438.14	Appropriations by Fund
438.15	General	9,201,000	9,201,000
438.16 438.17	State Government Special Revenue	32,633,000	32,636,000
438.18	Special Revenue	300,000	300,000

438.19Infectious Disease Laboratory. Of the
438.20general fund appropriation, $200,000 in
438.21fiscal year 2014 and $200,000 in fiscal year
438.222015 are to monitor infectious disease trends
438.23and investigate infectious disease outbreaks.
438.24Surveillance for Elevated Blood Lead
438.25Levels. Of the general fund appropriation,
438.26$100,000 in fiscal year 2014 and $100,000
438.27in fiscal year 2015 are for the blood lead
438.28surveillance system under Minnesota
438.29Statutes, section 144.9502.
438.30Base Level Adjustment. The state
438.31government special revenue base is increased
438.32by $6,000 in fiscal year 2016 and by $13,000
438.33in fiscal year 2017.

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

439.1 439.2

Subd. 8.Board of Nursing Home Administrators

3,742,000

2,252,000

439.3Administrative Services Unit - Operating
439.4Costs. Of this appropriation, $676,000
439.5in fiscal year 2014 and $626,000 in
439.6fiscal year 2015 are for operating costs
439.7of the administrative services unit. The
439.8administrative services unit may receive
439.9and expend reimbursements for services
439.10performed by other agencies.
439.11Administrative Services Unit - Volunteer
439.12Health Care Provider Program. Of this
439.13appropriation, $150,000 in fiscal year 2014
439.14and $150,000 in fiscal year 2015 are to pay
439.15for medical professional liability coverage
439.16required under Minnesota Statutes, section
439.17214.40 .
439.18Administrative Services Unit - Contested
439.19Cases and Other Legal Proceedings. Of
439.20this appropriation, $200,000 in fiscal year
439.212014 and $200,000 in fiscal year 2015 are
439.22for costs of contested case hearings and other
439.23unanticipated costs of legal proceedings
439.24involving health-related boards funded
439.25under this section. Upon certification of a
439.26health-related board to the administrative
439.27services unit that the costs will be incurred
439.28and that there is insufficient money available
439.29to pay for the costs out of money currently
439.30available to that board, the administrative
439.31services unit is authorized to transfer money
439.32from this appropriation to the board for
439.33payment of those costs with the approval
439.34of the commissioner of management and
440.1budget. This appropriation does not cancel
440.2and is available until expended.
440.3This appropriation includes $44,000 in
440.4fiscal year 2014 for rulemaking. This is
440.5a onetime appropriation. $1,441,000 in
440.6fiscal year 2014 and $420,000 in fiscal year
440.72015 are for the development of a shared
440.8disciplinary, regulatory, licensing, and
440.9information management system. $391,000
440.10in fiscal year 2014 is a onetime appropriation
440.11for retirement costs in the health-related
440.12boards. This funding may be transferred to
440.13the health boards incurring retirement costs.
440.14These funds are available either year of the
440.15biennium.
440.16This appropriation includes $16,000 in fiscal
440.17years 2014 and 2015 for evening security,
440.18$2,000 in fiscal years 2014 and 2015 for a
440.19state vehicle lease, and $18,000 in fiscal
440.20years 2014 and 2015 for shared office space
440.21and administrative support. $205,000 in
440.22fiscal year 2014 and $221,000 in fiscal year
440.232015 are for shared information technology
440.24services, equipment, and maintenance.
440.25The remaining balance of the state
440.26government special revenue fund
440.27appropriation in Laws 2011, First Special
440.28Session chapter 9, article 10, section 8,
440.29subdivision 8, for Board of Nursing Home
440.30Administrators rulemaking, estimated to
440.31be $44,000, is canceled, and the remaining
440.32balance of the state government special
440.33revenue fund appropriation in Laws 2011,
440.34First Special Session chapter 9, article 10,
440.35section 8, subdivision 8, for electronic
441.1licensing system adaptors, estimated to be
441.2$761,000, and for the development and
441.3implementation of a disciplinary, regulatory,
441.4licensing, and information management
441.5system, estimated to be $1,100,000, are
441.6canceled. This paragraph is effective the day
441.7following final enactment.
441.8Base Adjustment. The base is decreased by
441.9$370,000 in fiscal years 2016 and 2017.
441.10EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

441.11    Sec. 11. Laws 2013, chapter 108, article 14, section 12, is amended to read:
441.12    Sec. 12. APPROPRIATION ADJUSTMENTS.
441.13(a) The general fund appropriation in section 2, subdivision 5, paragraph (g),
441.14includes up to $53,391,000 in fiscal year 2014; $216,637,000 in fiscal year 2015;
441.15$261,660,000 in fiscal year 2016; and $279,984,000 in fiscal year 2017, for medical
441.16assistance eligibility and administration changes related to:
441.17(1) eligibility for children age two to 18 with income up to 275 percent of the federal
441.18poverty guidelines;
441.19(2) eligibility for pregnant women with income up to 275 percent of the federal
441.20poverty guidelines;
441.21(3) Affordable Care Act enrollment and renewal processes, including elimination
441.22of six-month renewals, ex parte eligibility reviews, preprinted renewal forms, changes
441.23in verification requirements, and other changes in the eligibility determination and
441.24enrollment and renewal process;
441.25(4) automatic eligibility for children who turn 18 in foster care until they reach age 26;
441.26(5) eligibility related to spousal impoverishment provisions for waiver recipients; and
441.27(6) presumptive eligibility determinations by hospitals.
441.28(b) the commissioner of human services shall determine the difference between the
441.29actual or forecasted estimated costs to the medical assistance program attributable to
441.30the program changes in paragraph (a), clauses (1) to (6), and the costs of paragraph (a),
441.31clauses (1) to (6), that were estimated during the 2013 legislative session based on data
441.32from the 2013 February forecast. The costs in this paragraph must be calculated between
441.33January 1, 2014, and June 30, 2017.
442.1(c) For each fiscal year from 2014 to 2017, the commissioner of human services
442.2shall certify the actual or forecasted estimated cost differences to the medical assistance
442.3program determined under paragraph (b), and report the difference in costs to the
442.4commissioner of management and budget at least four weeks prior to a forecast under
442.5Minnesota Statutes, section 16A.103. No later than three weeks before the release of
442.6the forecast For fiscal years 2014 to 2017, forecasts under Minnesota Statutes, section
442.716A.103 , prepared by the commissioner of management and budget shall reduce include
442.8actual or estimated adjustments to the health care access fund appropriation in section
442.92, subdivision 5, paragraph (g), by the cumulative difference in costs determined in
442.10 according to paragraph (b) (d). If for any fiscal year, the amount of the cumulative cost
442.11differences determined under paragraph (b) is positive, no adjustment shall be made to the
442.12health care access fund appropriation. If for any fiscal year, the amount of the cumulative
442.13cost differences determined under paragraph (b) is less than the original appropriation, the
442.14appropriation for that fiscal year is zero.
442.15(d) For each fiscal year from 2014 to 2017, the commissioner of management and
442.16budget must adjust the health care access fund appropriation by the cumulative difference
442.17in costs reported by the commissioner of human services under paragraph (b). If, for any
442.18fiscal year, the amount of the cumulative difference in costs determined under paragraph
442.19(b) is positive, no adjustment shall be made to the health care access fund appropriation.
442.20(e) This section expires on January 1, 2018.
442.21EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

442.22    Sec. 12. EXPIRATION OF UNCODIFIED LANGUAGE.
442.23All uncodified language in this article expires on June 30, 2015, unless a different
442.24expiration date is specified.

442.27

Section 1. HUMAN SERVICES APPROPRIATION.

442.28The sums shown in the columns marked "Appropriations" are added to or, if shown
442.29in parentheses, are subtracted from the appropriations in Laws 2013, chapter 108, article
442.3014, from the general fund or any fund named to the Department of Human Services for
442.31the purposes specified in this article, to be available for the fiscal year indicated for each
442.32purpose. The figures "2014" and "2015" used in this article mean that the appropriations
442.33listed under them are available for the fiscal years ending June 30, 2014, or June 30, 2015,
443.1respectively. "The first year" is fiscal year 2014. "The second year" is fiscal year 2015.
443.2"The biennium" is fiscal years 2014 and 2015.

443.3				APPROPRIATIONS
443.4				Available for the Year
443.5				Ending June 30
443.6					2014		2015

443.7 443.8

Sec. 2. COMMISSIONER OF HUMAN SERVICES

443.9

Subdivision 1.Total Appropriation

$

(196,927)

$

64,288

443.10	Appropriations by Fund
443.11	General Fund	(153,497)	(25,282)
443.12 443.13	Health Care Access Fund	(36,533)	91,294
443.14	Federal TANF	(6,897)	(1,724)

443.15

Subd. 2.Forecasted Programs

443.16

(a) MFIP/DWP

443.17	Appropriations by Fund
443.18	General Fund	3,571	173
443.19	Federal TANF	(6,475)	(1,298)

443.20

(b) MFIP Child Care Assistance

(684)

11,114

443.21

(c) General Assistance

(2,569)

(1,940)

443.22

(d) Minnesota Supplemental Aid

(690)

(614)

443.23

(e) Group Residential Housing

250

(1,740)

443.24

(f) MinnesotaCare

(34,838)

96,340

443.25These appropriations are from the health care
443.26access fund.

443.27

(g) Medical Assistance

443.28	Appropriations by Fund
443.29	General Fund	(149,494)	(27,075)
443.30 443.31	Health Care Access Fund	(1,695)	(5,046)

443.32

(h) Alternative Care Program

(6,936)

(13,260)

443.33

(i) CCDTF Entitlements

3,055

8,060

444.1

Subd. 3.Technical Activities

(422)

(426)

444.2These appropriations are from the federal
444.3TANF fund.

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

444.5 444.6

Subdivision 1.Total Appropriation

$

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

$

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

444.7	Appropriations by Fund
444.8		2014	2015
444.9 444.10	General	5,654,765,000 5,654,095,000	5,677,458,000 5,676,652,000
444.11 444.12	State Government Special Revenue	4,099,000	4,510,000
444.13	Health Care Access	519,816,000	518,446,000
444.14	Federal TANF	257,915,000	254,813,000
444.15	Lottery Prize Fund	1,890,000	1,890,000

444.16Receipts for Systems Projects.
444.17Appropriations and federal receipts for
444.18information systems projects for MAXIS,
444.19PRISM, MMIS, and SSIS must be deposited
444.20in the state system account authorized
444.21in Minnesota Statutes, section 256.014.
444.22Money appropriated for computer projects
444.23approved by the commissioner of Minnesota
444.24information technology services, funded
444.25by the legislature, and approved by the
444.26commissioner of management and budget,
444.27may be transferred from one project to
444.28another and from development to operations
444.29as the commissioner of human services
444.30considers necessary. Any unexpended
444.31balance in the appropriation for these
444.32projects does not cancel but is available for
444.33ongoing development and operations.
444.34Nonfederal Share Transfers. The
444.35nonfederal share of activities for which
444.36federal administrative reimbursement is
445.1appropriated to the commissioner may be
445.2transferred to the special revenue fund.
445.3ARRA Supplemental Nutrition Assistance
445.4Benefit Increases. The funds provided for
445.5food support benefit increases under the
445.6Supplemental Nutrition Assistance Program
445.7provisions of the American Recovery and
445.8Reinvestment Act (ARRA) of 2009 must be
445.9used for benefit increases beginning July 1,
445.102009.
445.11Supplemental Nutrition Assistance
445.12Program Employment and Training.
445.13(1) Notwithstanding Minnesota Statutes,
445.14sections 256D.051, subdivisions 1a, 6b,
445.15and 6c, and 256J.626, federal Supplemental
445.16Nutrition Assistance employment and
445.17training funds received as reimbursement of
445.18MFIP consolidated fund grant expenditures
445.19for diversionary work program participants
445.20and child care assistance program
445.21expenditures must be deposited in the general
445.22fund. The amount of funds must be limited to
445.23$4,900,000 per year in fiscal years 2014 and
445.242015, and to $4,400,000 per year in fiscal
445.25years 2016 and 2017, contingent on approval
445.26by the federal Food and Nutrition Service.
445.27(2) Consistent with the receipt of the federal
445.28funds, the commissioner may adjust the
445.29level of working family credit expenditures
445.30claimed as TANF maintenance of effort.
445.31Notwithstanding any contrary provision in
445.32this article, this rider expires June 30, 2017.
445.33TANF Maintenance of Effort. (a) In order
445.34to meet the basic maintenance of effort
445.35(MOE) requirements of the TANF block grant
446.1specified under Code of Federal Regulations,
446.2title 45, section 263.1, the commissioner may
446.3only report nonfederal money expended for
446.4allowable activities listed in the following
446.5clauses as TANF/MOE expenditures:
446.6(1) MFIP cash, diversionary work program,
446.7and food assistance benefits under Minnesota
446.8Statutes, chapter 256J;
446.9(2) the child care assistance programs
446.10under Minnesota Statutes, sections 119B.03
446.11and 119B.05, and county child care
446.12administrative costs under Minnesota
446.13Statutes, section 119B.15;
446.14(3) state and county MFIP administrative
446.15costs under Minnesota Statutes, chapters
446.16256J and 256K;
446.17(4) state, county, and tribal MFIP
446.18employment services under Minnesota
446.19Statutes, chapters 256J and 256K;
446.20(5) expenditures made on behalf of legal
446.21noncitizen MFIP recipients who qualify for
446.22the MinnesotaCare program under Minnesota
446.23Statutes, chapter 256L;
446.24(6) qualifying working family credit
446.25expenditures under Minnesota Statutes,
446.26section 290.0671;
446.27(7) qualifying Minnesota education credit
446.28expenditures under Minnesota Statutes,
446.29section 290.0674; and
446.30(8) qualifying Head Start expenditures under
446.31Minnesota Statutes, section 119A.50.
446.32(b) The commissioner shall ensure that
446.33sufficient qualified nonfederal expenditures
446.34are made each year to meet the state's
447.1TANF/MOE requirements. For the activities
447.2listed in paragraph (a), clauses (2) to
447.3(8), the commissioner may only report
447.4expenditures that are excluded from the
447.5definition of assistance under Code of
447.6Federal Regulations, title 45, section 260.31.
447.7(c) For fiscal years beginning with state fiscal
447.8year 2003, the commissioner shall ensure
447.9that the maintenance of effort used by the
447.10commissioner of management and budget
447.11for the February and November forecasts
447.12required under Minnesota Statutes, section
447.1316A.103 , contains expenditures under
447.14paragraph (a), clause (1), equal to at least 16
447.15percent of the total required under Code of
447.16Federal Regulations, title 45, section 263.1.
447.17(d) The requirement in Minnesota Statutes,
447.18section 256.011, subdivision 3, that federal
447.19grants or aids secured or obtained under that
447.20subdivision be used to reduce any direct
447.21appropriations provided by law, do not apply
447.22if the grants or aids are federal TANF funds.
447.23(e) For the federal fiscal years beginning on
447.24or after October 1, 2007, the commissioner
447.25may not claim an amount of TANF/MOE in
447.26excess of the 75 percent standard in Code
447.27of Federal Regulations, title 45, section
447.28263.1(a)(2), except:
447.29(1) to the extent necessary to meet the 80
447.30percent standard under Code of Federal
447.31Regulations, title 45, section 263.1(a)(1),
447.32if it is determined by the commissioner
447.33that the state will not meet the TANF work
447.34participation target rate for the current year;
448.1(2) to provide any additional amounts
448.2under Code of Federal Regulations, title 45,
448.3section 264.5, that relate to replacement of
448.4TANF funds due to the operation of TANF
448.5penalties; and
448.6(3) to provide any additional amounts that
448.7may contribute to avoiding or reducing
448.8TANF work participation penalties through
448.9the operation of the excess MOE provisions
448.10of Code of Federal Regulations, title 45,
448.11section 261.43 (a)(2).
448.12For the purposes of clauses (1) to (3),
448.13the commissioner may supplement the
448.14MOE claim with working family credit
448.15expenditures or other qualified expenditures
448.16to the extent such expenditures are otherwise
448.17available after considering the expenditures
448.18allowed in this subdivision and subdivisions
448.192 and 3.
448.20(f) Notwithstanding any contrary provision
448.21in this article, paragraphs (a) to (e) expire
448.22June 30, 2017.
448.23Working Family Credit Expenditures
448.24as TANF/MOE. The commissioner may
448.25claim as TANF maintenance of effort up to
448.26$6,707,000 per year of working family credit
448.27expenditures in each fiscal year.
448.28EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

448.29    Sec. 4. Laws 2013, chapter 108, article 14, section 2, subdivision 4, as amended by
448.30Laws 2013, chapter 144, section 24, is amended to read:

448.31

Subd. 4.Central Office

448.32The amounts that may be spent from this
448.33appropriation for each purpose are as follows:

449.1

(a) Operations

449.2	Appropriations by Fund
449.3	General	101,979,000	96,858,000
449.4 449.5	State Government Special Revenue	3,974,000	4,385,000
449.6	Health Care Access	13,177,000	13,004,000
449.7	Federal TANF	100,000	100,000

449.8DHS Receipt Center Accounting. The
449.9commissioner is authorized to transfer
449.10appropriations to, and account for DHS
449.11receipt center operations in, the special
449.12revenue fund.
449.13Administrative Recovery; Set-Aside. The
449.14commissioner may invoice local entities
449.15through the SWIFT accounting system as an
449.16alternative means to recover the actual cost
449.17of administering the following provisions:
449.18(1) Minnesota Statutes, section 125A.744,
449.19subdivision 3 ;
449.20(2) Minnesota Statutes, section 245.495,
449.21paragraph (b);
449.22(3) Minnesota Statutes, section 256B.0625,
449.23subdivision 20 , paragraph (k);
449.24(4) Minnesota Statutes, section 256B.0924,
449.25subdivision 6 , paragraph (g);
449.26(5) Minnesota Statutes, section 256B.0945,
449.27subdivision 4 , paragraph (d); and
449.28(6) Minnesota Statutes, section 256F.10,
449.29subdivision 6 , paragraph (b).
449.30Systems Modernization. The following
449.31amounts are appropriated for transfer to
449.32the state systems account authorized in
449.33Minnesota Statutes, section 256.014:
450.1(1) $1,825,000 in fiscal year 2014 and
450.2$2,502,000 in fiscal year 2015 is for the
450.3state share of Medicaid-allocated costs of
450.4the health insurance exchange information
450.5technology and operational structure. The
450.6funding base is $3,222,000 in fiscal year 2016
450.7and $3,037,000 in fiscal year 2017 but shall
450.8not be included in the base thereafter; and
450.9(2) $9,344,000 in fiscal year 2014 and
450.10$3,660,000 in fiscal year 2015 are for the
450.11modernization and streamlining of agency
450.12eligibility and child support systems. The
450.13funding base is $5,921,000 in fiscal year
450.142016 and $1,792,000 in fiscal year 2017 but
450.15shall not be included in the base thereafter.
450.16The unexpended balance of the $9,344,000
450.17appropriation in fiscal year 2014 and the
450.18$3,660,000 appropriation in fiscal year 2015
450.19must be transferred from the Department of
450.20Human Services state systems account to
450.21the Office of Enterprise Technology when
450.22the Office of Enterprise Technology has
450.23negotiated a federally approved internal
450.24service fund rates and billing process with
450.25sufficient internal accounting controls to
450.26properly maximize federal reimbursement
450.27to Minnesota for human services system
450.28modernization projects, but not later than
450.29June 30, 2015.
450.30If contingent funding is fully or partially
450.31disbursed under article 15, section 3, and
450.32transferred to the state systems account, the
450.33unexpended balance of that appropriation
450.34must be transferred to the Office of Enterprise
450.35Technology in accordance with this clause.
451.1Contingent funding must not exceed
451.2$11,598,000 for the biennium.
451.3Base Adjustment. The general fund base
451.4is increased by $2,868,000 in fiscal year
451.52016 and decreased by $1,206,000 in fiscal
451.6year 2017. The health access fund base is
451.7decreased by $551,000 in fiscal years 2016
451.8and 2017. The state government special
451.9revenue fund base is increased by $4,000 in
451.10fiscal year 2016 and decreased by $236,000
451.11in fiscal year 2017.

451.12

(b) Children and Families

451.13	Appropriations by Fund
451.14	General	8,023,000	8,015,000
451.15	Federal TANF	2,282,000	2,282,000

451.16Financial Institution Data Match and
451.17Payment of Fees. The commissioner is
451.18authorized to allocate up to $310,000 each
451.19year in fiscal years 2014 and 2015 from the
451.20PRISM special revenue account to make
451.21payments to financial institutions in exchange
451.22for performing data matches between account
451.23information held by financial institutions
451.24and the public authority's database of child
451.25support obligors as authorized by Minnesota
451.26Statutes, section 13B.06, subdivision 7.
451.27Base Adjustment. The general fund base is
451.28decreased by $300,000 in fiscal years 2016
451.29and 2017. The TANF fund base is increased
451.30by $300,000 in fiscal years 2016 and 2017.

451.31

(c) Health Care

451.32	Appropriations by Fund
451.33	General	14,028,000	13,826,000
451.34	Health Care Access	28,442,000	31,137,000

452.1Base Adjustment. The general fund base
452.2is decreased by $86,000 in fiscal year 2016
452.3and by $86,000 in fiscal year 2017. The
452.4health care access fund base is increased
452.5by $6,954,000 in fiscal year 2016 and by
452.6$5,489,000 in fiscal year 2017.

452.7

(d) Continuing Care

452.8	Appropriations by Fund
452.9	General	20,993,000	22,359,000
452.10 452.11	State Government Special Revenue	125,000	125,000

452.12Base Adjustment. The general fund base is
452.13increased by $1,690,000 in fiscal year 2016
452.14and by $798,000 in fiscal year 2017.

452.15

(e) Chemical and Mental Health

452.16	Appropriations by Fund
452.17 452.18	General	4,639,000 4,571,000	4,490,000 4,431,000
452.19	Lottery Prize Fund	157,000	157,000

452.20Of the general fund appropriation, $68,000
452.21in fiscal year 2014 and $59,000 in fiscal year
452.222015 are for compulsive gambling treatment
452.23under Minnesota Statutes, section 297E.02,
452.24subdivision 3, paragraph (c).
452.25EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

452.26    Sec. 5. Laws 2013, chapter 108, article 14, section 2, subdivision 6, as amended by
452.27Laws 2013, chapter 144, section 25, is amended to read:

452.28

Subd. 6.Grant Programs

452.29The amounts that may be spent from this
452.30appropriation for each purpose are as follows:

452.31

(a) Support Services Grants

452.32	Appropriations by Fund
452.33	General	8,915,000	13,333,000
452.34	Federal TANF	94,611,000	94,611,000

453.1Paid Work Experience. $2,168,000
453.2each year in fiscal years 2015 and 2016
453.3is from the general fund for paid work
453.4experience for long-term MFIP recipients.
453.5Paid work includes full and partial wage
453.6subsidies and other related services such as
453.7job development, marketing, preworksite
453.8training, job coaching, and postplacement
453.9services. These are onetime appropriations.
453.10Unexpended funds for fiscal year 2015 do not
453.11cancel, but are available to the commissioner
453.12for this purpose in fiscal year 2016.
453.13Work Study Funding for MFIP
453.14Participants. $250,000 each year in fiscal
453.15years 2015 and 2016 is from the general fund
453.16to pilot work study jobs for MFIP recipients
453.17in approved postsecondary education
453.18programs. This is a onetime appropriation.
453.19Unexpended funds for fiscal year 2015 do
453.20not cancel, but are available for this purpose
453.21in fiscal year 2016.
453.22Local Strategies to Reduce Disparities.
453.23$2,000,000 each year in fiscal years 2015
453.24and 2016 is from the general fund for
453.25local projects that focus on services for
453.26subgroups within the MFIP caseload
453.27who are experiencing poor employment
453.28outcomes. These are onetime appropriations.
453.29Unexpended funds for fiscal year 2015 do not
453.30cancel, but are available to the commissioner
453.31for this purpose in fiscal year 2016.
453.32Home Visiting Collaborations for MFIP
453.33Teen Parents. $200,000 per year in fiscal
453.34years 2014 and 2015 is from the general fund
453.35and $200,000 in fiscal year 2016 is from the
454.1federal TANF fund for technical assistance
454.2and training to support local collaborations
454.3that provide home visiting services for
454.4MFIP teen parents. The general fund
454.5appropriation is onetime. The federal TANF
454.6fund appropriation is added to the base.
454.7Performance Bonus Funds for Counties.
454.8The TANF fund base is increased by
454.9$1,500,000 each year in fiscal years 2016
454.10and 2017. The commissioner must allocate
454.11this amount each year to counties that exceed
454.12their expected range of performance on the
454.13annualized three-year self-support index
454.14as defined in Minnesota Statutes, section
454.15256J.751, subdivision 2 , clause (6). This is a
454.16permanent base adjustment. Notwithstanding
454.17any contrary provisions in this article, this
454.18provision expires June 30, 2016.
454.19Base Adjustment. The general fund base is
454.20decreased by $200,000 in fiscal year 2016
454.21and $4,618,000 in fiscal year 2017. The
454.22TANF fund base is increased by $1,700,000
454.23in fiscal years 2016 and 2017.

454.24 454.25

(b) Basic Sliding Fee Child Care Assistance Grants

36,836,000

42,318,000

454.26Base Adjustment. The general fund base is
454.27increased by $3,778,000 in fiscal year 2016
454.28and by $3,849,000 in fiscal year 2017.

454.29

(c) Child Care Development Grants

1,612,000

1,737,000

454.30

(d) Child Support Enforcement Grants

50,000

50,000

454.31Federal Child Support Demonstration
454.32Grants. Federal administrative
454.33reimbursement resulting from the federal
454.34child support grant expenditures authorized
454.35under United States Code, title 42, section
455.11315, is appropriated to the commissioner
455.2for this activity.

455.3

(e) Children's Services Grants

455.4	Appropriations by Fund
455.5	General	49,760,000	52,961,000
455.6	Federal TANF	140,000	140,000

455.7Adoption Assistance and Relative Custody
455.8Assistance. $37,453,000 in fiscal year 2014
455.9and $37,453,000 in fiscal year 2015 is for
455.10the adoption assistance and relative custody
455.11assistance programs. The commissioner
455.12shall determine with the commissioner of
455.13Minnesota Management and Budget the
455.14appropriation for Northstar Care for Children
455.15effective January 1, 2015. The commissioner
455.16may transfer appropriations for adoption
455.17assistance, relative custody assistance, and
455.18Northstar Care for Children between fiscal
455.19years and among programs to adjust for
455.20transfers across the programs.
455.21Title IV-E Adoption Assistance. Additional
455.22federal reimbursements to the state as a result
455.23of the Fostering Connections to Success
455.24and Increasing Adoptions Act's expanded
455.25eligibility for Title IV-E adoption assistance
455.26are appropriated for postadoption services,
455.27including a parent-to-parent support network.
455.28Privatized Adoption Grants. Federal
455.29reimbursement for privatized adoption grant
455.30and foster care recruitment grant expenditures
455.31is appropriated to the commissioner for
455.32adoption grants and foster care and adoption
455.33administrative purposes.
455.34Adoption Assistance Incentive Grants.
455.35Federal funds available during fiscal years
456.12014 and 2015 for adoption incentive grants
456.2are appropriated for postadoption services,
456.3including a parent-to-parent support network.
456.4Base Adjustment. The general fund base is
456.5increased by $5,913,000 in fiscal year 2016
456.6and by $10,297,000 in fiscal year 2017.

456.7

(f) Child and Community Service Grants

53,301,000

53,301,000

456.8

(g) Child and Economic Support Grants

21,047,000

20,848,000

456.9Minnesota Food Assistance Program.
456.10Unexpended funds for the Minnesota food
456.11assistance program for fiscal year 2014 do
456.12not cancel but are available for this purpose
456.13in fiscal year 2015.
456.14Transitional Housing. $250,000 each year
456.15is for the transitional housing programs under
456.16Minnesota Statutes, section 256E.33.
456.17Emergency Services. $250,000 each year
456.18is for emergency services grants under
456.19Minnesota Statutes, section 256E.36.
456.20Family Assets for Independence. $250,000
456.21each year is for the Family Assets for
456.22Independence Minnesota program. This
456.23appropriation is available in either year of the
456.24biennium and may be transferred between
456.25fiscal years.
456.26Food Shelf Programs. $375,000 in fiscal
456.27year 2014 and $375,000 in fiscal year
456.282015 are for food shelf programs under
456.29Minnesota Statutes, section 256E.34. If the
456.30appropriation for either year is insufficient,
456.31the appropriation for the other year is
456.32available for it. Notwithstanding Minnesota
456.33Statutes, section 256E.34, subdivision 4, no
456.34portion of this appropriation may be used
457.1by Hunger Solutions for its administrative
457.2expenses, including but not limited to rent
457.3and salaries.
457.4Homeless Youth Act. $2,000,000 in fiscal
457.5year 2014 and $2,000,000 in fiscal year 2015
457.6is for purposes of Minnesota Statutes, section
457.7256K.45 .
457.8Safe Harbor Shelter and Housing.
457.9$500,000 in fiscal year 2014 and $500,000 in
457.10fiscal year 2015 is for a safe harbor shelter
457.11and housing fund for housing and supportive
457.12services for youth who are sexually exploited.

457.13

(h) Health Care Grants

457.14	Appropriations by Fund
457.15	General	190,000	190,000
457.16	Health Care Access	190,000	190,000

457.17Emergency Medical Assistance Referral
457.18and Assistance Grants. (a) The
457.19commissioner of human services shall
457.20award grants to nonprofit programs that
457.21provide immigration legal services based
457.22on indigency to provide legal services for
457.23immigration assistance to individuals with
457.24emergency medical conditions or complex
457.25and chronic health conditions who are not
457.26currently eligible for medical assistance
457.27or other public health care programs, but
457.28who may meet eligibility requirements with
457.29immigration assistance.
457.30(b) The grantees, in collaboration with
457.31hospitals and safety net providers, shall
457.32provide referral assistance to connect
457.33individuals identified in paragraph (a) with
457.34alternative resources and services to assist in
457.35meeting their health care needs. $100,000
458.1is appropriated in fiscal year 2014 and
458.2$100,000 in fiscal year 2015. This is a
458.3onetime appropriation.
458.4Base Adjustment. The general fund is
458.5decreased by $100,000 in fiscal year 2016
458.6and $100,000 in fiscal year 2017.

458.7

(i) Aging and Adult Services Grants

14,827,000

15,010,000

458.8Base Adjustment. The general fund is
458.9increased by $1,150,000 in fiscal year 2016
458.10and $1,151,000 in fiscal year 2017.
458.11Community Service Development
458.12Grants and Community Services Grants.
458.13Community service development grants and
458.14community services grants are reduced by
458.15$1,150,000 each year. This is a onetime
458.16reduction.

458.17

(j) Deaf and Hard-of-Hearing Grants

1,771,000

1,785,000

458.18

(k) Disabilities Grants

18,605,000

18,823,000

458.19Advocating Change Together. $310,000 in
458.20fiscal year 2014 is for a grant to Advocating
458.21Change Together (ACT) to maintain and
458.22promote services for persons with intellectual
458.23and developmental disabilities throughout
458.24the state. This appropriation is onetime. Of
458.25this appropriation:
458.26(1) $120,000 is for direct costs associated
458.27with the delivery and evaluation of
458.28peer-to-peer training programs administered
458.29throughout the state, focusing on education,
458.30employment, housing, transportation, and
458.31voting;
458.32(2) $100,000 is for delivery of statewide
458.33conferences focusing on leadership and
459.1skill development within the disability
459.2community; and
459.3(3) $90,000 is for administrative and general
459.4operating costs associated with managing
459.5or maintaining facilities, program delivery,
459.6staff, and technology.
459.7Base Adjustment. The general fund base
459.8is increased by $535,000 in fiscal year 2016
459.9and by $709,000 in fiscal year 2017.

459.10

(l) Adult Mental Health Grants

459.11	Appropriations by Fund
459.12 459.13	General	71,199,000 70,597,000	69,530,000 68,783,000
459.14	Health Care Access	750,000	750,000
459.15	Lottery Prize	1,733,000	1,733,000

459.16Compulsive Gambling Treatment. Of the
459.17general fund appropriation, $602,000 in
459.18fiscal year 2014 and $747,000 in fiscal year
459.192015 are for compulsive gambling treatment
459.20under Minnesota Statutes, section 297E.02,
459.21subdivision 3, paragraph (c).
459.22Problem Gambling. $225,000 in fiscal year
459.232014 and $225,000 in fiscal year 2015 is
459.24appropriated from the lottery prize fund for a
459.25grant to the state affiliate recognized by the
459.26National Council on Problem Gambling. The
459.27affiliate must provide services to increase
459.28public awareness of problem gambling,
459.29education and training for individuals and
459.30organizations providing effective treatment
459.31services to problem gamblers and their
459.32families, and research relating to problem
459.33gambling.
459.34Funding Usage. Up to 75 percent of a fiscal
459.35year's appropriations for adult mental health
460.1grants may be used to fund allocations in that
460.2portion of the fiscal year ending December
460.331.
460.4Base Adjustment. The general fund base is
460.5decreased by $4,427,000 $4,441,000 in fiscal
460.6years 2016 and 2017.
460.7Mental Health Pilot Project. $230,000
460.8each year is for a grant to the Zumbro
460.9Valley Mental Health Center. The grant
460.10shall be used to implement a pilot project
460.11to test an integrated behavioral health care
460.12coordination model. The grant recipient must
460.13report measurable outcomes and savings
460.14to the commissioner of human services
460.15by January 15, 2016. This is a onetime
460.16appropriation.
460.17High-risk adults. $200,000 in fiscal
460.18year 2014 is for a grant to the nonprofit
460.19organization selected to administer the
460.20demonstration project for high-risk adults
460.21under Laws 2007, chapter 54, article 1,
460.22section 19, in order to complete the project.
460.23This is a onetime appropriation.

460.24

(m) Child Mental Health Grants

18,246,000

20,636,000

460.25Text Message Suicide Prevention
460.26Program. $625,000 in fiscal year 2014 and
460.27$625,000 in fiscal year 2015 is for a grant
460.28to a nonprofit organization to establish and
460.29implement a statewide text message suicide
460.30prevention program. The program shall
460.31implement a suicide prevention counseling
460.32text line designed to use text messaging to
460.33connect with crisis counselors and to obtain
460.34emergency information and referrals to
460.35local resources in the local community. The
461.1program shall include training within schools
461.2and communities to encourage the use of the
461.3program.
461.4Mental Health First Aid Training. $22,000
461.5in fiscal year 2014 and $23,000 in fiscal
461.6year 2015 is to train teachers, social service
461.7personnel, law enforcement, and others who
461.8come into contact with children with mental
461.9illnesses, in children and adolescents mental
461.10health first aid training.
461.11Funding Usage. Up to 75 percent of a fiscal
461.12year's appropriation for child mental health
461.13grants may be used to fund allocations in that
461.14portion of the fiscal year ending December
461.1531.

461.16

(n) CD Treatment Support Grants

1,816,000

1,816,000

461.17SBIRT Training. (1) $300,000 each year is
461.18for grants to train primary care clinicians to
461.19provide substance abuse brief intervention
461.20and referral to treatment (SBIRT). This is a
461.21onetime appropriation. The commissioner of
461.22human services shall apply to SAMHSA for
461.23an SBIRT professional training grant.
461.24(2) If the commissioner of human services
461.25receives a grant under clause (1) funds
461.26appropriated under this clause, equal to
461.27the grant amount, up to the available
461.28appropriation, shall be transferred to the
461.29Minnesota Organization on Fetal Alcohol
461.30Syndrome (MOFAS). MOFAS must use
461.31the funds for grants. Grant recipients must
461.32be selected from communities that are
461.33not currently served by federal Substance
461.34Abuse Prevention and Treatment Block
461.35Grant funds. Grant money must be used to
462.1reduce the rates of fetal alcohol syndrome
462.2and fetal alcohol effects, and the number of
462.3drug-exposed infants. Grant money may be
462.4used for prevention and intervention services
462.5and programs, including, but not limited to,
462.6community grants, professional eduction,
462.7public awareness, and diagnosis.
462.8Fetal Alcohol Syndrome Grant. $180,000
462.9each year from the general fund is for a
462.10grant to the Minnesota Organization on Fetal
462.11Alcohol Syndrome (MOFAS) to support
462.12nonprofit Fetal Alcohol Spectrum Disorders
462.13(FASD) outreach prevention programs
462.14in Olmsted County. This is a onetime
462.15appropriation.
462.16Base Adjustment. The general fund base is
462.17decreased by $480,000 in fiscal year 2016
462.18and $480,000 in fiscal year 2017.
462.19EFFECTIVE DATE.This section is effective retroactively from July 1, 2013.

462.20    Sec. 6. EFFECTIVE DATE.
462.21Sections 1 and 2 are effective the day following final enactment.