1.1     CONFERENCE COMMITTEE REPORT ON H. F. No. 4162
1.2                                        A bill for an act
1.3     relating to the financing of state government; making supplemental 
1.4     appropriations; regulating government operations; providing for and modifying 
1.5     certain programs; regulating abortion funding and notification; providing for 
1.6     a Rochester campus of the University of Minnesota; creating the Boxing 
1.7     Commission and regulating boxing; ratifying certain labor agreements and 
1.8     compensation plans; providing criminal penalties; appropriating money;
1.9     amending Minnesota Statutes 2004, sections 3.737, subdivision 1; 3.7371, 
1.10    subdivision 3; 13.3806, by adding a subdivision; 16A.152, subdivision 1b; 
1.11    137.022, subdivision 4; 137.17, subdivisions 1, 3; 256.01, subdivision 18, by 
1.12    adding a subdivision; 256B.431, by adding a subdivision; 256J.021; 256J.626, 
1.13    subdivision 2; Minnesota Statutes 2005 Supplement, sections 16A.152, 
1.14    subdivision 2; 35.05; 119B.13, subdivision 7; proposing coding for new law in 
1.15    Minnesota Statutes, chapters 4; 144; 197; 256; 256D; 341; repealing Minnesota 
1.16    Statutes 2004, sections 62J.694; 144.395.
1.17    May 21, 2006
1.18    The Honorable Steve Sviggum
1.19    Speaker of the House of Representatives
1.20    The Honorable James P. Metzen
1.21    President of the Senate
1.22    We, the undersigned conferees for H. F. No. 4162 report that we have agreed upon 
1.23    the items in dispute and recommend as follows:
1.24    That the Senate recede from its amendments and that H. F. No. 4162 be further 
1.25    amended as follows:
1.26    Delete everything after the enacting clause and insert:

1.27                                               "ARTICLE 1
1.28                                            SUMMARY

1.29    Section 1. APPROPRIATIONS SUMMARY.                                                
1.30                    (General Fund Only, Excluding Forecast Adjustments)                 
1.31    APPROPRIATIONS                    2006               2007             TOTAL     
1.32    Early Childhood Education $          124,000$       14,926,000$       15,050,000
1.33    K-12 Education                     5,469,000         2,764,000         8,233,000
2.1     Higher Education                                     5,000,000         5,000,000
2.2     Environment & Agriculture            577,000         1,838,000         2,415,000
2.3     Clean Water Legacy                                  15,000,000        15,000,000
2.4     Economic Development                                29,552,000        29,552,000
2.5     Transportation                                         692,000           692,000
2.6     Public Safety                      3,846,000        15,774,000        19,620,000
2.7     State Government                                     2,422,000         2,422,000
2.8     Veterans Affairs                     250,000         3,230,000         3,480,000
2.9     Health & Human Services           30,989,000        75,663,000       106,652,000
2.10    SUBTOTAL                  $       41,255,000$      166,861,000$      208,116,000
2.11    CANCELLATIONS                        250,000                             250,000
2.12    TRANSFERS IN                       2,933,000                           2,933,000
2.13    TOTAL                     $       38,072,000$      166,861,000$      204,933,000

2.14                                           ARTICLE 2
2.15                                   EARLY CHILDHOOD EDUCATION

2.16        Section 1. EARLY EDUCATION APPROPRIATIONS.
2.17    The sums shown in the columns marked "APPROPRIATIONS" are added to or, if 
2.18    shown in parentheses, subtracted from the appropriations in Laws 2005, First Special 
2.19    Session chapter 4, article 9, or other law to the agencies and for the purposes specified 
2.20    in this article.  The appropriations are from the general fund or another named fund and 
2.21    are available for the fiscal years indicated for each purpose.  The figures "2006" and 
2.22    "2007" used in this article mean that the addition to or subtraction from the appropriation 
2.23    listed under them is available for the fiscal year ending June 30, 2006, or June 30, 
2.24    2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 
2.25    2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary appropriations and 
2.26    reductions to appropriations for the fiscal year ending June 30, 2006, are effective the 
2.27    day following final enactment.
2.28        Subdivision 1. Summary
 2.29                                      SUMMARY BY FUND                                   
2.30                                      2006              2007             TOTAL     
2.31    General                   $          124,000$       14,926,000$       15,050,000
2.32    Subd.  2.Department of Human Services;                                            
2.33    basic sliding fee child care waiting list                                         
2.34    (a) For child care assistance for eligible 
2.35    families on the basic sliding fee waiting list 
2.36    under Minnesota Statutes, section 119B.03, 
2.37    subdivision 2, as of July 1, 2006.
2.38    General Fund                               -0-       3,842,000
3.1     (b) For basic sliding fee child care assistance                                     
3.2     grants in fiscal year 2007                                   -0-         4,055,000
3.3     The general fund base is increased 
3.4     by $1,596,000 in fiscal year 2008 and 
3.5     $1,732,000 in fiscal year 2009 for basic 
3.6     sliding fee child care assistance grants.
3.7     (c) For the state share of systems cost to                                        
3.8     implement the provider rate differential for                                      
3.9     accreditation                                                -0-             3,000
3.10    (d) As determined by the commissioner, 
3.11    counties may use up to six percent of either 
3.12    calendar year 2008 or 2009 allocations under 
3.13    Minnesota Statutes, section 119B.03, to 
3.14    fund accelerated payments that may occur 
3.15    during the preceding calendar year during 
3.16    conversion to the automated child care 
3.17    assistance program system. If conversion 
3.18    occurs over two calendar years, counties 
3.19    may use up to three percent of the combined 
3.20    calendar year allocations to fund accelerated 
3.21    payments. Funding advanced under this 
3.22    subdivision shall be considered part of the 
3.23    allocation from which it was originally 
3.24    advanced for purposes of setting future 
3.25    allocations under Minnesota Statutes, section 
3.26    119B.03, subdivisions 6, 6a, 6b, and 8, and 
3.27    shall include funding for administrative costs 
3.28    under Minnesota Statutes, section 119B.15. 
3.29    Notwithstanding the provisions of any 
3.30    section to the contrary, this provision shall 
3.31    sunset December 31, 2009.
3.32    (e) Increased child care funds from the 
3.33    federal Deficit Reduction Act of 2005 may 
3.34    be allocated by the commissioner for the 
3.35    basic sliding fee child care program.

3.36        Sec. 2. Minnesota Statutes 2005 Supplement, section 119B.13, subdivision 1, is 
3.37    amended to read:
4.1         Subdivision 1. Subsidy restrictions. (a)(i) Effective July 1, 2005, the commissioner 
4.2     of human services shall modify the rate tables for child care centers published in 
4.3     Department of Human Services Bulletin No. 03-68-07 so that in counties with regional or 
4.4     statewide cells, the higher of the 100th percentile of the 2002 market rate survey data or 
4.5     the rate currently identified in the bulletin will be the maximum rate. The rates established 
4.6     in this clause will be considered as the previous year's rates for purposes of the increase in 
4.7     item (iii), and shall be compared to the 100th percentile of current market rates.
4.8     (ii) For the period between July 1, 2005, and through the full implementation of the 
4.9     new rates under item (iii), the rates published in Department of Human Services Bulletin 
4.10    No. 03-68-07 as adjusted by item (i) shall remain in effect.
4.11    (iii) (a) Beginning January  July 1, 2006, the maximum rate paid for child care 
4.12    assistance in any county or multicounty region under the child care fund shall be the lesser 
4.13    of the 75th percentile rate for like-care arrangements in the county or multicounty region 
4.14    as surveyed by the commissioner or the previous year's rate for like-care arrangements in 
4.15    the county effective January 1, 2006, increased by 1.75 six percent.
4.16    (iv) (b) Rate changes shall be implemented for services provided in March 
4.17     September 2006 unless a participant eligibility redetermination or a new provider 
4.18    agreement is completed between January July 1, 2006, and February 28 August 31, 2006.
4.19    As necessary, appropriate notice of adverse action must be made according to 
4.20    Minnesota Rules, part 3400.0185, subparts 3 and 4.
4.21    New cases approved on or after January July 1, 2006, shall have the maximum rates 
4.22    under item (iii) paragraph (a), implemented immediately.
4.23    (b) (c) Not less than once every two years, the commissioner shall survey rates 
4.24    charged by child care providers in Minnesota to determine the 75th percentile for 
4.25    like-care arrangements in counties. When the commissioner determines that, using the 
4.26    commissioner's established protocol, the number of providers responding to the survey is 
4.27    too small to determine the 75th percentile rate for like-care arrangements in a county or 
4.28    multicounty region, the commissioner may establish the 75th percentile maximum rate 
4.29    based on like-care arrangements in a county, region, or category that the commissioner 
4.30    deems to be similar.
4.31    (c) (d) A rate which includes a special needs rate paid under subdivision 3 may be in 
4.32    excess of the maximum rate allowed under this subdivision.
4.33    (d) (e) The department shall monitor the effect of this paragraph on provider rates. 
4.34    The county shall pay the provider's full charges for every child in care up to the maximum 
4.35    established. The commissioner shall determine the maximum rate for each type of care on 
4.36    an hourly, full-day, and weekly basis, including special needs and handicapped care.
5.1     (e) (f) When the provider charge is greater than the maximum provider rate allowed, 
5.2     the parent is responsible for payment of the difference in the rates in addition to any 
5.3     family co-payment fee.
5.4     EFFECTIVE DATE.This section is effective July 1, 2006.

5.5         Sec. 3. Minnesota Statutes 2004, section 119B.13, is amended by adding a subdivision 
5.6     to read:
5.7         Subd. 3a. Provider rate differential for accreditation. A family child care 
5.8     provider or child care center shall be paid a 15 percent differential above the maximum rate 
5.9     established in subdivision 1, up to the actual provider rate, if the provider or center holds a 
5.10    current early childhood development credential or is accredited.  For a family child care 
5.11    provider, early childhood development credential and accreditation includes an individual 
5.12    who has earned a child development associate degree, a diploma in child development from 
5.13    a Minnesota state technical college, or a bachelor's degree in early childhood education 
5.14    from an accredited college or university, or who is accredited by the National Association 
5.15    for Family Child Care or the Competency Based Training and Assessment Program.  For a 
5.16    child care center, accreditation includes accreditation by the National Association for the 
5.17    Education of Young Children, the Council on Accreditation, the National Early Childhood 
5.18    Program Accreditation, the National School-Age Care Association, or the National Head 
5.19    Start Association Program of Excellence.  For Montessori programs, accreditation includes 
5.20    the American Montessori Society, Association of Montessori International-USA, or the 
5.21    National Center for Montessori Education.
5.22    EFFECTIVE DATE.This section is effective July 1, 2006. 

5.23        Sec. 4. Minnesota Statutes 2005 Supplement, section 119B.13, subdivision 7, is 
5.24    amended to read:
5.25        Subd. 7. Absent days. (a) Child care providers may not be reimbursed for more 
5.26    than 25 full-day absent days per child, excluding holidays, in a fiscal year, or for more than 
5.27    ten consecutive full-day absent days, unless the child has a documented medical condition 
5.28    that causes more frequent absences. Documentation of medical conditions must be on 
5.29    the forms and submitted according to the timelines established by the commissioner. If a 
5.30    child attends for part of the time authorized to be in care in a day, but is absent for part of 
5.31    the time authorized to be in care in that same day, the absent time will be reimbursed but 
5.32    the time will not count toward the ten consecutive or 25 cumulative absent day limits. 
5.33    If a child attends part of an authorized day, payment to the provider must be for the full 
5.34    amount of care authorized for that day. Child care providers may only be reimbursed for 
6.1     absent days if the provider has a written policy for child absences and charges all other 
6.2     families in care for similar absences. 
6.3     (b) Child care providers must be reimbursed for up to ten federal or state holidays 
6.4     or designated holidays per year when the provider charges all families for these days 
6.5     and the holiday or designated holiday falls on a day when the child is authorized to be 
6.6     in attendance. Parents may substitute other cultural or religious holidays for the ten 
6.7     recognized state and federal holidays. Holidays do not count toward the ten consecutive or 
6.8     25 cumulative absent day limits. 
6.9     (c) A family or child care provider may not be assessed an overpayment for an 
6.10    absent day payment unless (1) there was an error in the amount of care authorized for the 
6.11    family, (2) all of the allowed full-day absent payments for the child have been paid, or (3) 
6.12    the family or provider did not timely report a change as required under law.
6.13    (d) The provider and family must receive notification of the number of absent days 
6.14    used upon initial provider authorization for a family and when the family has used 15 
6.15    cumulative absent days. Upon statewide implementation of the Minnesota Electronic 
6.16    Child Care System, the provider and family authorization for a family and ongoing 
6.17    notification of the number of absent days used as of the date of the notification.
6.18    EFFECTIVE DATE.This section is effective July 1, 2006.

6.19        Sec. 5. Minnesota Statutes 2005 Supplement, section 121A.19, is amended to read:
6.20    121A.19 DEVELOPMENTAL SCREENING AID.
6.21    Each school year, the state must pay a district $50 for each three-year-old child 
6.22    screened; $40 for each four-year-old child screened; and $30 for each five-year-old child 
6.23    or student screened by the district prior to kindergarten according to the requirements of 
6.24    section 121A.17. The amount of state aid for each child or student screened shall be: (1) 
6.25    $50 for a child screened at age three; (2) $40 for a child screened at age four; (3) $30 
6.26    for a child screened at age five or six prior to kindergarten; and (4) $30 for a student 
6.27    screened within 30 days after first enrolling in a public school kindergarten if the student 
6.28    has not previously been screened according to the requirements of section 121A.17. If this 
6.29    amount of aid is insufficient, the district may permanently transfer from the general fund 
6.30    an amount that, when added to the aid, is sufficient. Developmental screening aid shall not 
6.31    be paid for any student who is screened more than 30 days after the first day of attendance 
6.32    at a public school kindergarten, except if a student transfers to another public school 
6.33    kindergarten within 30 days after first enrolling in a Minnesota public school kindergarten 
6.34    program. In this case, if the student has not been screened, the district to which the student 
7.1     transfers may receive developmental screening aid for screening that student when the 
7.2     screening is performed within 30 days of the transfer date.

7.3         Sec. 6. [124D.129] EDUCATE PARENTS PARTNERSHIP.
7.4     The commissioner may work in partnership with health care providers and 
7.5     community organizations to provide parent information to parents of newborns at the 
7.6     time of birth. The commissioner may coordinate the partnership and the distribution of 
7.7     informational material to the parents of newborns before they leave the hospital with 
7.8     early childhood organizations, including, but not limited to, early childhood family 
7.9     education, child care resource and referral, and interagency early intervention committees. 
7.10    The commissioner may develop a resource Web site that promotes, at a minimum, the 
7.11    department Web site for information and links to resources on child development, parent 
7.12    education, child care, and consumer safety information. 

7.13        Sec. 7. Minnesota Statutes 2005 Supplement, section 124D.135, subdivision 1, is 
7.14    amended to read:
7.15        Subdivision 1. Revenue. The revenue for early childhood family education 
7.16    programs for a school district equals $96 for fiscal year 2005 and $104 $112 for fiscal year 
7.17    2006 2007 and later, times the greater of:
7.18    (1) 150; or
7.19    (2) the number of people under five years of age residing in the district on October 1 
7.20    of the previous school year.

7.21        Sec. 8. [124D.162] KINDERGARTEN READINESS ASSESSMENT.
7.22    The commissioner of education may implement a kindergarten readiness assessment 
7.23    representative of incoming kindergartners. The assessment must be based on the 
7.24    Department of Education Kindergarten Readiness Assessment at kindergarten entrance 
7.25    study.

7.26        Sec. 9. Minnesota Statutes 2005 Supplement, section 124D.175, is amended to read:
7.27    124D.175 MINNESOTA EARLY LEARNING FOUNDATION PROPOSAL.
7.28    (a) The commissioner must make a grant to the Minnesota Early Learning 
7.29    Foundation to implement an early childhood development grant program for low-income 
7.30    and other challenged families that increases the effectiveness and expands the capacity of 
7.31    public and nonpublic early childhood development programs, which may include child 
7.32    care programs, and leads to improved early childhood parent education and children's 
7.33    kindergarten readiness. The program must include:
8.1     (1) grant awards to existing early childhood development program providers that 
8.2     also provide parent education programs and to qualified providers proposing to implement 
8.3     pilot programs for this same purpose;
8.4     (2) grant awards to enable low-income families to participate in these programs;
8.5     (3) grant awards to improve overall programmatic quality; and
8.6     (4) an evaluation of the programmatic and financial efficacy of all these programs, 
8.7     which may be performed using measures of services, staffing, and management systems 
8.8     that provide consistent information about system performance, show trends, confirm 
8.9     successes, and identify potential problems in early childhood development programs.
8.10    This grant program must not supplant existing early childhood development programs 
8.11    or child care funds.
8.12    (b) The commissioner must contract with  make a grant to a private nonprofit, section 
8.13    501(c)(3) organization to implement the requirements of paragraph (a).  The private 
8.14    nonprofit organization must be governed by a board of directors composed of members 
8.15    from the public and nonpublic sectors, where the nonpublic sector members compose a 
8.16    simple majority of board members and where the public sector members are state and local 
8.17    government officials, kindergarten through grade 12 or postsecondary educators, and early 
8.18    childhood providers appointed by the governor. Membership on the board of directors 
8.19    by a state agency official are work duties for the official and are not a conflict of interest 
8.20    under section 43A.38. The board of directors must appoint an executive director and must 
8.21    seek advice from geographically and ethnically diverse parents of young children and 
8.22    representatives of early childhood development providers, kindergarten through grade 12 
8.23    and postsecondary educators, public libraries, and the business sector.
8.24     The board of directors is subject to the open meeting law under chapter 13D. 
8.25    All other terms and conditions under which board members serve and operate must be 
8.26    described in the articles and bylaws of the organization. The private nonprofit organization 
8.27    is not a state agency and is not subject to laws governing public agencies except the 
8.28    provisions of chapter 13, salary limits under section 15A.0815, subdivision 2, and audits 
8.29    by the legislative auditor under chapter 3 apply.
8.30    (c) In addition to the duties under paragraph (a), the Minnesota Early Learning 
8.31    Foundation (MELF) shall evaluate the effectiveness of the voluntary NorthStar Quality 
8.32    Improvement and Rating System. The NorthStar Quality Improvement and Rating System 
8.33    must:
8.34    (1) provide consumer information for parents on child care and early education 
8.35    program quality and ratings;
9.1     (2) set indicators to identify quality in care and early education settings, including 
9.2     licensed family child care and centers, tribal providers and programs, Head Start and 
9.3     school-age programs, and identify quality programs through ratings and ongoing 
9.4     monitoring of programs;
9.5     (3) provide funds for provider improvement grants and quality achievement grants;
9.6     (4) require participating providers to incorporate the state's early learning standards 
9.7     in their curriculum activities and develop appropriate child assessments aligned with the 
9.8     kindergarten readiness assessment;
9.9     (5) provide accountability for the NorthStar Quality Improvement and Rating 
9.10    System's effectiveness in improving child outcomes and kindergarten readiness; and
9.11    (6) align current and new state investments to improve the quality of child care 
9.12    with the NorthStar Quality Improvement and Rating System framework, by providing 
9.13    accountability and informed parent choice.
9.14    The Minnesota Early Learning Foundation shall report back to the legislature by 
9.15    January 15, 2008, on the progress being made under this paragraph.
9.16    (d) This section expires June 30, 2011. If no state appropriation is made for purposes 
9.17    of this section, the commissioner must not implement paragraphs (a) and (b).

9.18        Sec. 10. Minnesota Statutes 2004, section 124D.518, subdivision 4, is amended to read:
9.19        Subd. 4. First prior program year. "First prior program year" means the period 
9.20    from May 1 of the second prior fiscal year through April 30 of the first prior fiscal year 
9.21    specific time period defined by the commissioner that aligns to a program academic year.

9.22        Sec. 11. Minnesota Statutes 2004, section 124D.52, subdivision 1, is amended to read:
9.23        Subdivision 1. Program requirements. (a) An adult basic education program is a 
9.24    day or evening program offered by a district that is for people over 16 years of age who do 
9.25    not attend an elementary or secondary school. The program offers academic instruction 
9.26    necessary to earn a high school diploma or equivalency certificate.
9.27    (b) Notwithstanding any law to the contrary, a school board or the governing body of 
9.28    a consortium offering an adult basic education program may adopt a sliding fee schedule 
9.29    based on a family's income, but must waive the fee for participants who are under the 
9.30    age of 21 or unable to pay. The fees charged must be designed to enable individuals of 
9.31    all socioeconomic levels to participate in the program. A program may charge a security 
9.32    deposit to assure return of materials, supplies, and equipment.
9.33    (c) Each approved adult basic education program must develop a memorandum of 
9.34    understanding with the local workforce development centers located in the approved 
9.35    program's service delivery area. The memorandum of understanding must describe how 
10.1    the adult basic education program and the workforce development centers will cooperate 
10.2    and coordinate services to provide unduplicated, efficient, and effective services to clients.
10.3    (d) Adult basic education aid must be spent for adult basic education purposes as 
10.4    specified in sections  124D.518 to  124D.531. 
10.5    (e) A state-approved adult basic education program must count and submit student 
10.6    contact hours for a program that offers high school credit toward an adult high school 
10.7    diploma according to student eligibility requirements and competency demonstration 
10.8    requirements established by the commissioner.

10.9        Sec. 12. Minnesota Statutes 2005 Supplement, section 124D.531, subdivision 1, 
10.10   is amended to read:
10.11       Subdivision 1. State total adult basic education aid. (a) The state total adult basic 
10.12   education aid for fiscal year 2005 is $36,509,000. The state total adult basic education aid 
10.13   for fiscal year 2006 and later is $36,509,000 equals $36,587,000 plus any amount that is 
10.14   not paid for during the previous fiscal year, as a result of adjustments under subdivision 4, 
10.15   paragraph (a), or section 124D.52, subdivision 3. The state total adult basic education 
10.16   aid for fiscal year 2007 equals $37,673,000 plus any amount that is not paid for during 
10.17   the previous fiscal year, as a result of adjustments under subdivision 4, paragraph (a), or 
10.18   section 124D.52, subdivision 3. The state total adult basic education aid for later fiscal 
10.19   years equals:
10.20   (1) the state total adult basic education aid for the preceding fiscal year plus any 
10.21   amount that is not paid for during the previous fiscal year, as a result of adjustments under 
10.22   subdivision 4, paragraph (a), or section 124D.52, subdivision 3; times
10.23   (2) the lesser of:
10.24   (i) 1.03; or
10.25   (ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior 
10.26   program year to the state total contact hours in the second prior program year.
10.27   Beginning in fiscal year 2002, two percent of the state total adult basic education 
10.28   aid must be set aside for adult basic education supplemental service grants under section 
10.29   124D.522.
10.30   (b) The state total adult basic education aid, excluding basic population aid, equals 
10.31   the difference between the amount computed in paragraph (a), and the state total basic 
10.32   population aid under subdivision 2.

10.33       Sec. 13. Minnesota Statutes 2004, section 125A.27, subdivision 7, is amended to read:
10.34       Subd. 7. Early intervention system. "Early intervention system" means the total 
10.35   effort in the state to meet the needs of eligible children and their families, including, 
10.36   but not limited to:.
11.1    (1) any public agency in the state that receives funds under the Individuals with 
11.2    Disabilities Education Act, United States Code, title 20, sections 1471 to 1485 (Part 
11.3    C, Public Law 102-119);
11.4    (2) other state and local agencies administering programs involved in the provision 
11.5    of early intervention services, including, but not limited to:
11.6    (i) the Maternal and Child Health program under title V of the Social Security Act, 
11.7    United States Code, title 42, sections 701 to 709;
11.8    (ii) the Individuals with Disabilities Education Act, United States Code, title 20, 
11.9    sections 1411 to 1420 (Part B);
11.10   (iii) medical assistance under the Social Security Act, United States Code, title 
11.11   42, section 1396 et seq.;
11.12   (iv) the Developmental Disabilities Assistance and Bill of Rights Act, United States 
11.13   Code, title 42, sections 6021 to 6030 (Part B); and
11.14   (v) the Head Start Act, United States Code, title 42, sections 9831 to 9852; and
11.15   (3) services provided by private groups or third-party payers in conformity with an 
11.16   individualized family service plan.

11.17       Sec. 14. Minnesota Statutes 2004, section 125A.27, subdivision 8, is amended to read:
11.18       Subd. 8. Eligibility for Part C. "Eligibility for Part C" means eligibility for early 
11.19   childhood special education under section  125A.02 and Minnesota Rules, part 3525.2335, 
11.20   subpart 1, items A and B. 

11.21       Sec. 15. Minnesota Statutes 2004, section 125A.27, subdivision 11, is amended to read:
11.22       Subd. 11. Interagency child find systems. "Interagency child find systems" 
11.23   means activities developed on an interagency basis with the involvement of interagency 
11.24   early intervention committees and other relevant community groups using rigorous 
11.25   standards  to actively seek out, identify, and refer infants and young children,  with, or at 
11.26   risk of, disabilities, and their families, including a child under the age of three who: (1) 
11.27   is involved in a substantiated case of abuse or neglect, or (2) is identified as affected by 
11.28   illegal substance abuse, or withdrawal symptoms resulting from prenatal drug exposure, to 
11.29   reduce the need for future services.

11.30       Sec. 16. Minnesota Statutes 2004, section 125A.27, subdivision 15, is amended to read:
11.31       Subd. 15. Part C state plan. "Part C state plan" means the annual state plan 
11.32   application approved by the federal government under the Individuals with Disabilities 
11.33   Education Act, United States Code, title 20, section 1471 et seq. (Part C, Public Law 
11.34   105-117).

11.35       Sec. 17. Minnesota Statutes 2004, section 125A.27, subdivision 18, is amended to read:
12.1        Subd. 18. State lead agency. "State lead agency" means the state agency receiving 
12.2    federal funds under the Individuals with Disabilities Education Act, United States Code, 
12.3    title 20, section 1471 et seq. (Part H, Public Law 102-119) for the purposes of providing 
12.4    early intervention services.

12.5        Sec. 18. Minnesota Statutes 2005 Supplement, section 125A.28, is amended to read:
12.6    125A.28 STATE INTERAGENCY COORDINATING COUNCIL.
12.7    An Interagency Coordinating Council of at least 17, but not more than 25 members 
12.8    is established, in compliance with Public Law 102-119 108-446, section 682 641. The 
12.9    members must be appointed by the governor. Council members must elect the council 
12.10   chair. The representative of the commissioner may not serve as the chair. The council 
12.11   must be composed of at least five parents, including persons of color, of children with 
12.12   disabilities under age 12, including at least three parents of a child with a disability 
12.13   under age seven, five representatives of public or private providers of services for 
12.14   children with disabilities under age five, including a special education director, county 
12.15   social service director, local Head Start director, and a community health services or 
12.16   public health nursing administrator, one member of the senate, one member of the 
12.17   house of representatives, one representative of teacher preparation programs in early 
12.18   childhood-special education or other preparation programs in early childhood intervention, 
12.19   at least one representative of advocacy organizations for children with disabilities under 
12.20   age five, one physician who cares for young children with special health care needs, one 
12.21   representative each from the commissioners of commerce, education, health, human 
12.22   services, a representative from the state agency responsible for child care, foster care, 
12.23   mental health, homeless coordinator of education of homeless children and youth, and a 
12.24   representative from Indian health services or a tribal council. Section 15.059, subdivisions 
12.25   2 to 5, apply to the council. The council must meet at least quarterly.
12.26   The council must address methods of implementing the state policy of developing 
12.27   and implementing comprehensive, coordinated, multidisciplinary interagency programs of 
12.28   early intervention services for children with disabilities and their families.
12.29   The duties of the council include recommending policies to ensure a comprehensive 
12.30   and coordinated system of all state and local agency services for children under age five 
12.31   with disabilities and their families. The policies must address how to incorporate each 
12.32   agency's services into a unified state and local system of multidisciplinary assessment 
12.33   practices, individual intervention plans, comprehensive systems to find children in need of 
12.34   services, methods to improve public awareness, and assistance in determining the role of 
12.35   interagency early intervention committees.
13.1    On the date that Minnesota Part C Annual Performance Report is submitted to the 
13.2    federal Office of Special Education, the council must recommend to the governor and the 
13.3    commissioners of education, health, human services, commerce, and employment and 
13.4    economic development policies for a comprehensive and coordinated system.
13.5    Notwithstanding any other law to the contrary, the State Interagency Coordinating 
13.6    Council expires on June 30, 2009.

13.7        Sec. 19. Minnesota Statutes 2004, section 125A.29, is amended to read:
13.8    125A.29 RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
13.9    BOARDS.
13.10   (a) It is the joint responsibility of county boards and school boards to coordinate, 
13.11   provide, and pay for appropriate services, and to facilitate payment for services from public 
13.12   and private sources. Appropriate services for children eligible under section  125A.02 must 
13.13   be determined in consultation with parents, physicians, and other educational, medical, 
13.14   health, and human services providers. The services provided must be in conformity with:
13.15   (1)  an IFSP for each eligible infant and toddler from birth through age two and its 
13.16   the infant's or toddler's  family, including:
13.17   (i) American Indian infants and toddlers with disabilities and their families residing 
13.18   on a reservation geographically located in the state;
13.19   (ii) infants and toddlers with disabilities who are homeless children and their 
13.20   families; and
13.21   (iii) infants and toddlers with disabilities who are wards of the state;  or 
13.22   (2) an individual education plan (IEP) or individual service plan (ISP) for each 
13.23   eligible child ages three through four. 
13.24   (b) Appropriate services include family education and counseling, home visits, 
13.25   occupational and physical therapy, speech pathology, audiology, psychological services, 
13.26   special instruction, nursing, respite, nutrition, assistive technology, transportation 
13.27   and related costs, social work, vision services, case management including service 
13.28   coordination under section  125A.33, medical services for diagnostic and evaluation 
13.29   purposes, early identification, and screening, assessment, and health services necessary to 
13.30   enable children with disabilities to benefit from early intervention services. 
13.31   (c) School and county boards shall coordinate early intervention services. In the 
13.32   absence of agreements established according to section  125A.39, service responsibilities 
13.33   for children birth through age two are as follows: 
13.34   (1) school boards must provide, pay for, and facilitate payment for special education 
13.35   and related services required under sections  125A.05 and  125A.06; 
14.1    (2) county boards must provide, pay for, and facilitate payment for noneducational 
14.2    services of social work, psychology, transportation and related costs, nursing, respite, and 
14.3    nutrition services not required under clause (1).
14.4    (d) School and county boards may develop an interagency agreement according 
14.5    to section  125A.39 to establish agency responsibility that assures early intervention 
14.6    services are coordinated, provided, paid for, and that payment is facilitated from public 
14.7    and private sources. 
14.8    (e) County and school boards must jointly determine the primary agency in this 
14.9    cooperative effort and must notify the commissioner of the state lead agency of their 
14.10   decision.

14.11       Sec. 20. Minnesota Statutes 2004, section 125A.30, is amended to read:
14.12   125A.30 INTERAGENCY EARLY INTERVENTION COMMITTEES.
14.13   (a) A school district, group of districts, or special education cooperative, in 
14.14   cooperation with the health and human service agencies located in the county or counties 
14.15   in which the district or cooperative is located, must establish an Interagency Early 
14.16   Intervention Committee for children with disabilities under age five and their families 
14.17   under this section, and for children with disabilities ages three to 22 consistent with 
14.18   the requirements under sections  125A.023 and  125A.027. Committees must include 
14.19   representatives of local health, education, and county human service agencies, county 
14.20   boards, school boards, early childhood family education programs, Head Start, parents of 
14.21   young children with disabilities under age 12, child care resource and referral agencies, 
14.22   school readiness programs, current service providers, and may also include representatives 
14.23   from other private or public agencies and school nurses. The committee must elect a chair 
14.24   from among its members and must meet at least quarterly. 
14.25   (b) The committee must develop and implement interagency policies and procedures 
14.26   concerning the following ongoing duties:
14.27   (1) develop public awareness systems designed to inform potential recipient 
14.28   families, especially parents with premature infants, or infants with other physical risk 
14.29   factors associated with learning or development complications,  of available programs 
14.30   and services;
14.31   (2) to reduce families' need for future services, and especially parents with premature 
14.32   infants, or infants with other physical risk factors associated with learning or development 
14.33   complications, implement interagency child find systems designed to actively seek out, 
14.34   identify, and refer infants and young children with, or at risk of, disabilities and their 
14.35   families, including a child under the age of three who: (i) is involved in a substantiated 
15.1    case of abuse or neglect or (ii) is identified as affected by illegal substance abuse, or 
15.2    withdrawal symptoms resulting from prenatal drug exposure;
15.3    (3) establish and evaluate the identification, referral, child and family assessment 
15.4    systems, procedural safeguard process, and community learning systems to recommend, 
15.5    where necessary, alterations and improvements;
15.6    (4) assure the development of individualized family service plans for all eligible 
15.7    infants and toddlers with disabilities from birth through age two, and their families, and 
15.8    individual education plans and individual service plans when necessary to appropriately 
15.9    serve children with disabilities, age three and older, and their families and recommend 
15.10   assignment of financial responsibilities to the appropriate agencies;
15.11   (5) encourage agencies to develop individual family service plans for children with 
15.12   disabilities, age three and older;
15.13   (6) implement a process for assuring that services involve cooperating agencies at all 
15.14   steps leading to individualized programs;
15.15   (7) (6) facilitate the development of a transitional plan if a service provider is not 
15.16   recommended to continue to provide services;
15.17   (8) (7) identify the current services and funding being provided within the 
15.18   community for children with disabilities under age five and their families;
15.19   (9) (8) develop a plan for the allocation and expenditure of additional state and 
15.20   federal early intervention funds under United States Code, title 20, section 1471 et seq. 
15.21   (Part C, Public Law 102-119 108-446) and United States Code, title 20, section 631, et 
15.22   seq. (Chapter I, Public Law 89-313); and
15.23   (10) (9) develop a policy that is consistent with section  13.05, subdivision 9, and 
15.24   federal law to enable a member of an interagency early intervention committee to allow 
15.25   another member access to data classified as not public. 
15.26   (c) The local committee shall also:
15.27   (1) participate in needs assessments and program planning activities conducted by 
15.28   local social service, health and education agencies for young children with disabilities and 
15.29   their families; and
15.30   (2) review and comment on the early intervention section of the total special 
15.31   education system for the district, the county social service plan, the section or sections of 
15.32   the community health services plan that address needs of and service activities targeted 
15.33   to children with special health care needs, the section on children with special needs in 
15.34   the county child care fund plan, sections in Head Start plans on coordinated planning and 
15.35   services for children with special needs, any relevant portions of early childhood education 
15.36   plans, such as early childhood family education or school readiness, or other applicable 
16.1    coordinated school and community plans for early childhood programs and services, and 
16.2    the section of the maternal and child health special project grants that address needs of and 
16.3    service activities targeted to children with chronic illness and disabilities.

16.4        Sec. 21. Minnesota Statutes 2004, section 125A.32, is amended to read:
16.5    125A.32 INDIVIDUALIZED FAMILY SERVICE PLAN (IFSP).
16.6    (a) A team must participate in IFSP meetings to develop the IFSP. The team shall 
16.7    include:
16.8    (1) a parent or parents of the child;
16.9    (2) other family members, as requested by the parent, if feasible to do so;
16.10   (3) an advocate or person outside of the family, if the parent requests that the 
16.11   person participate;
16.12   (4) the service coordinator who has been working with the family since the 
16.13   initial referral, or who has been designated by the public agency to be responsible for 
16.14   implementation of the IFSP and coordination with other agencies including transition 
16.15   services; and
16.16   (5) a person or persons involved in conducting evaluations and assessments.
16.17   (b) The IFSP must include:
16.18   (1) information about the child's developmental status;
16.19   (2) family information, with the consent of the family;
16.20   (3) measurable results or major outcomes expected to be achieved by the child 
16.21   and the family with the family's assistance, that include developmentally appropriate 
16.22   preliteracy and language skills for the child, and the criteria, procedures, and timelines;
16.23   (4) specific early intervention services based on peer-reviewed research, to the 
16.24   extent practicable, necessary to meet the unique needs of the child and the family to 
16.25   achieve the outcomes;
16.26   (5) payment arrangements, if any;
16.27   (6) medical and other services that the child needs, but that are not required under 
16.28   the Individual with Disabilities Education Act, United States Code, title 20, section 1471 
16.29   et seq. (Part C, Public Law 102-119 108-446) including funding sources to be used in 
16.30   paying for those services and the steps that will be taken to secure those services through 
16.31   public or private sources;
16.32   (7) dates and duration of early intervention services;
16.33   (8) name of the service coordinator;
16.34   (9) steps to be taken to support a child's transition from early intervention services to 
16.35   other appropriate services, including convening a transition conference at least 90 days or, 
17.1    at the discretion of all parties, not more than nine months before the child is eligible for 
17.2    preschool services; and
17.3    (10) signature of the parent and authorized signatures of the agencies responsible 
17.4    for providing, paying for, or facilitating payment, or any combination of these, for early 
17.5    intervention services.

17.6        Sec. 22. Minnesota Statutes 2004, section 125A.33, is amended to read:
17.7    125A.33 SERVICE COORDINATION.
17.8    (a) The team developing the IFSP under section  125A.32 must select a service 
17.9    coordinator to carry out service coordination activities on an interagency basis. Service 
17.10   coordination must actively promote a family's capacity and competency to identify, 
17.11   obtain, coordinate, monitor, and evaluate resources and services to meet the family's 
17.12   needs. Service coordination activities include: 
17.13   (1) coordinating the performance of evaluations and assessments;
17.14   (2) facilitating and participating in the development, review, and evaluation of 
17.15   individualized family service plans;
17.16   (3) assisting families in identifying available service providers;
17.17   (4) coordinating and monitoring the delivery of available services;
17.18   (5) informing families of the availability of advocacy services;
17.19   (6) coordinating with medical, health, and other service providers;
17.20   (7) facilitating the development of a transition plan at least 90 days before the time 
17.21   the child is no longer eligible for early intervention services or,  at the discretion of all 
17.22   parties, not more than nine months prior to the child's eligibility for preschool services, 
17.23   if appropriate;
17.24   (8) managing the early intervention record and submitting additional information to 
17.25   the local primary agency at the time of periodic review and annual evaluations; and
17.26   (9) notifying a local primary agency when disputes between agencies impact service 
17.27   delivery required by an IFSP.
17.28   (b) A service coordinator must be knowledgeable about children and families 
17.29   receiving services under this section, requirements of state and federal law, and services 
17.30   available in the interagency early childhood intervention system.

17.31       Sec. 23. Minnesota Statutes 2004, section 125A.48, is amended to read:
17.32   125A.48 STATE INTERAGENCY AGREEMENT.
17.33   (a) The commissioners of the Departments of Education, Health, and Human 
17.34   Services must enter into an agreement to implement this section and Part H C, Public 
17.35   Law 102-119 108-446, and as required by Code of Federal Regulations, title 34, section  
17.36   303.523, to promote the development and implementation of interagency, coordinated, 
18.1    multidisciplinary state and local early childhood intervention service systems for serving 
18.2    eligible young children with disabilities, birth through age two, and their families and 
18.3    to ensure the meaningful involvement of underserved groups, including children with 
18.4    disabilities from minority, low-income, homeless, and rural families, and children with 
18.5    disabilities who are wards of the state. The agreement must be reviewed annually. 
18.6    (b) The state interagency agreement must outline at a minimum the conditions, 
18.7    procedures, purposes, and responsibilities of the participating state and local agencies 
18.8    for the following:
18.9    (1) membership, roles, and responsibilities of a state interagency committee for 
18.10   the oversight of priorities and budget allocations under Part H C, Public Law 102-119 
18.11   108-446, and other state allocations for this program;
18.12   (2) child find;
18.13   (3) establishment of local interagency agreements;
18.14   (4) review by a state interagency committee of the allocation of additional state and 
18.15   federal early intervention funds by local agencies;
18.16   (5) fiscal responsibilities of the state and local agencies;
18.17   (6) intraagency and interagency dispute resolution;
18.18   (7) payor of last resort;
18.19   (8) maintenance of effort;
18.20   (9) procedural safeguards, including mediation;
18.21   (10) complaint resolution;
18.22   (11) quality assurance;
18.23   (12) data collection;
18.24   (13) an annual summary to the state Interagency Coordinating Council regarding 
18.25   conflict resolution activities including disputes, due process hearings, and complaints; and
18.26   (14) other components of the state and local early intervention system consistent 
18.27   with Public Law 102-119 108-446.
18.28   Written materials must be developed for parents, IEIC's, and local service providers 
18.29   that describe procedures developed under this section as required by Code of Federal 
18.30   Regulations, title 34, section 303.

18.31       Sec. 24. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
18.32   3, is amended to read:
18.33    Subd. 3.  Early childhood family education aid. For early  childhood family 
18.34   education aid under Minnesota Statutes, section  124D.135:  
18.35          14,356,000                      
18.36       $  15,105,000  .......   2006      
19.1           15,137,000                      
19.2        $  17,792,000  .......   2007      
19.3     
19.4    The 2006 appropriation includes $1,861,000 $1,859,000 for 2005 and  $12,495,000 
19.5    $13,246,000 for 2006.  
19.6     
19.7    The 2007 appropriation includes $2,327,000 $1,471,000 for 2006 and  $12,810,000 
19.8    $16,321,000 for 2007.  
19.9     
19.10   EFFECTIVE DATE.This section is effective the day following final enactment.

19.11       Sec. 25. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
19.12   4, is amended to read:
19.13    Subd. 4.  Health and developmental screening aid. For  health and developmental 
19.14   screening aid under Minnesota Statutes,  sections 121A.17 and 121A.19:  
19.15          3,076,000                       
19.16       $  3,000,000   .......   2006      
19.17          3,511,000                       
19.18       $  2,997,000   .......   2007      
19.19    
19.20   The 2006 appropriation includes $417,000 for 2005 and  $2,659,000 $2,583,000 
19.21    for 2006.  
19.22    
19.23   The 2007 appropriation includes $494,000 $287,000 for 2006 and  $3,017,000 
19.24   $2,710,000 for 2007.  
19.25    
19.26   EFFECTIVE DATE.This section is effective the day following final enactment.

19.27       Sec. 26. ADULT LITERACY GRANTS FOR RECENT IMMIGRANTS TO 
19.28   MINNESOTA.
19.29       Subdivision 1. Establishment. An adult literacy grant program for recent 
19.30   immigrants to Minnesota is established in fiscal years 2007 and 2008 only in order to 
19.31   meet the English language needs of the unanticipated refugees and immigrants to the 
19.32   state of Minnesota.
19.33       Subd. 2. Grants. The commissioner of education shall consult adult basic 
19.34   education service providers in establishing the form and manner of the grant program. 
19.35   The commissioner shall award grants to organizations providing adult literacy services in 
20.1    order to help offset the additional costs due to unanticipated high enrollments of recent 
20.2    refugees and immigrants.

20.3        Sec. 27. LEGISLATIVE COMMISSION TO END POVERTY IN MINNESOTA 
20.4    BY 2020.
20.5        Subdivision 1. Membership. The Legislative Commission to End Poverty in 
20.6    Minnesota by 2020 consists of nine members of the senate appointed by the Subcommittee 
20.7    on Committees of the Committee on Rules and Administration, including four members of 
20.8    the minority, and nine members of the house of representatives appointed by the speaker, 
20.9    including four members of the minority. Appointments must be made by members elected 
20.10   to the 85th session of the legislature and no later than February 15, 2007. The governor 
20.11   may appoint two nonvoting members to sit with the commission.
20.12       Subd. 2. Guiding principles. In preparing recommendations on how to end poverty 
20.13   in Minnesota by 2020, the commission must be guided by the following principles:
20.14   (a) There should be a consistent and persistent approach that includes participation 
20.15   of people of faith, nonprofit agencies, government, and business.
20.16   (b) All people should be provided with those things that protect human dignity 
20.17   and make for a healthy life, including adequate food and shelter, meaningful work, safe 
20.18   communities, health care, and education.
20.19   (c) All people are intended to live well together as a whole community, seeking the 
20.20   common good, avoiding wide disparities between those who have too little to live on and 
20.21   those who have a disproportionate share of the nation's goods.
20.22   (d) All people need to work together to overcome poverty, and this work transcends 
20.23   both any particular political theory or party and any particular economic theory or 
20.24   structure. Overcoming poverty requires the use of private and public resources.
20.25   (e) Alliances are needed between the faith community, nonprofit agencies, 
20.26   government, business, and others with a commitment to overcoming poverty.
20.27   (f) Overcoming poverty involves both acts of direct service to alleviate the outcomes 
20.28   of poverty and advocacy to change those structures that result in people living in poverty.
20.29   (g) Government is neither solely responsible for alleviating poverty nor removed 
20.30   from that responsibility. Government is the vehicle by which people order their lives 
20.31   based on their shared vision. Society is well served when people bring their values into 
20.32   the public arena. This convergence around issues of poverty and the common good 
20.33   leads people of varying traditions to call on government to make a critical commitment 
20.34   to overcoming poverty.
20.35       Subd. 3. Report. The commission shall report its recommendations on how to end 
20.36   poverty in Minnesota by 2020 to the legislature by December 15, 2008.
21.1        Subd. 4. Expiration. The commission expires December 31, 2008.

21.2        Sec. 28. APPROPRIATIONS.
21.3        Subdivision 1. Department of Education. The sums indicated in this section are 
21.4    appropriated from the general fund to the Department of Education, unless otherwise 
21.5    specified, for the fiscal years designated.
21.6        Subd. 2. Educate parents partnership. For the educate parents partnership under 
21.7    Minnesota Statutes, section 124D.129:
21.8        $  80,000      .....     2007      
21.9    The base for this program in fiscal year 2008 and later is $50,000.
21.10       Subd. 3. Kindergarten entrance assessment initiative and intervention 
21.11   program. For the kindergarten entrance assessment initiative and intervention program 
21.12   under Minnesota Statutes, section 124D.162:
21.13       $  287,000     .....     2007      
21.14       Subd. 4. Early childhood Part C. For the expansion of early childhood Part C 
21.15   services:
21.16       $  400,000     .....     2007      
21.17       Subd. 5.  Adult literacy grants for recent immigrants. For adult literacy grants for 
21.18   recent immigrants to Minnesota under section 26:
21.19       $  1,250,000   .....     2007      
21.20   The base for this program is $1,250,000 in fiscal year 2008 and $0 in fiscal year 2009.
21.21       Subd. 6. NorthStar Quality Improvement and Rating System.  For a grant to the 
21.22   Minnesota Early Learning Foundation for the NorthStar Quality Improvement and Rating 
21.23   System under Minnesota Statutes, section 124D.175, paragraph (c):
21.24       $  1,000,000   .....     2007      
21.25   This appropriation must be used to implement phase one of the NorthStar Quality 
21.26   Improvement and Rating System including start-up costs, participation of 200 providers, 
21.27   parent information, and materials and evaluation by the Minnesota Early Learning 
21.28   Foundation in consultation with the University of Minnesota.
21.29   This onetime appropriation is available to June 30, 2008.
21.30       Subd. 7. Legislative Commission to End Poverty by 2020. To the Legislative 
21.31   Coordinating Commission for the Legislative Commission to End Poverty by 2020 under 
21.32   section 27:
21.33       $  250,000     .....     2007      

22.1                                           ARTICLE 3
22.2                                       GENERAL EDUCATION

22.3        Section 1. Laws 2005, First Special Session chapter 5, article 1, section 47, is amended 
22.4    to read:
22.5    Sec. 47.  ALTERNATIVE TEACHER COMPENSATION REVENUE  
22.6    GUARANTEE.  
22.7    Notwithstanding Minnesota Statutes, sections 122A.415,  subdivision 1, and 
22.8    126C.10, subdivision 34, paragraphs (a) and  (b), a school district that received alternative 
22.9    teacher  compensation aid for fiscal year 2005, but does not qualify for  alternative 
22.10   teacher compensation revenue for all sites in the  district for fiscal year 2006 or, 2007, 
22.11   2008, or 2009, shall receive additional  basic alternative teacher compensation aid for 
22.12   that fiscal year  equal to the lesser of the amount of alternative teacher  compensation 
22.13   aid it received for fiscal year 2005 or the amount  it would have received for that fiscal 
22.14   year under Minnesota  Statutes 2004, section 122A.415, subdivision 1, for teachers at  
22.15   sites not qualifying for alternative teacher compensation  revenue for that fiscal year, if 
22.16   the district submits a timely  application and the commissioner determines that the district  
22.17   continues to implement an alternative teacher compensation  system, consistent with its 
22.18   application under Minnesota Statutes  2004, section 122A.415, for fiscal year 2005.  The 
22.19   additional  basic alternative teacher compensation aid under this section  must not be used 
22.20   in calculating the alternative teacher  compensation levy under Minnesota Statutes, section 
22.21   126C.10,  subdivision 35.  This section applies only to fiscal years 2006  and 2007 through 
22.22   2009 and does not apply to later fiscal years.  

22.23       Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 2, 
22.24   is amended to read:
22.25   Subd. 2.  General education aid. For general education  aid under Minnesota 
22.26   Statutes, section 126C.13, subdivision 4:  
22.27          5,136,578,000                        
22.28       $  5,819,153,000     .....    2006      
22.29          5,390,196,000                        
22.30       $  5,472,238,000     .....    2007      
22.31   The 2006 appropriation includes $784,978,000 $787,978,000 for 2005 and  
22.32   $4,351,600,000 $5,031,175,000 for 2006.  
22.33   The 2007 appropriation includes $817,588,000 $513,848,000 for 2006 and  
22.34   $4,572,608,000 $4,958,390,000 for 2007.
22.35   EFFECTIVE DATE.This section is effective the day following final enactment.

22.36       Sec. 3. ONETIME ENERGY ASSISTANCE AID.
23.1    (a) For fiscal year 2006 only, a school district or charter school's onetime energy 
23.2    assistance aid is equal to $3.67 times its adjusted marginal cost pupil units. A school 
23.3    district or charter school may use its onetime energy assistance aid to pay for heating, fuel, 
23.4    and other energy costs.
23.5    (b) This aid is paid entirely in fiscal year 2006 based on estimated data. By January 
23.6    31, 2007, the Department of Education shall recalculate the aid for each district or charter 
23.7    school using actual data, and adjust the general education aid paid to school districts or 
23.8    charter schools for fiscal year 2007 by the amount of the difference between the estimated 
23.9    aid and the actual aid.

23.10       Sec. 4. APPROPRIATION.
23.11       Subdivision 1. Department of Education. The sum indicated in this section is 
23.12   appropriated from the general fund to the Department of Education for the fiscal year 
23.13   designated.
23.14       Subd. 2. Onetime energy assistance aid. For onetime energy assistance aid under 
23.15   section 3:
23.16       $  3,495,000   .....     2007      

23.17                                          ARTICLE 4
23.18                                     EDUCATION EXCELLENCE

23.19       Section 1. [120B.132] RAISED ACADEMIC ACHIEVEMENT; ADVANCED 
23.20   PLACEMENT PROGRAMS.
23.21       Subdivision 1. Establishment; eligibility. A program is established to raise 
23.22   kindergarten through grade 12 academic achievement through increased student 
23.23   participation in preadvanced placement and advanced placement programs. Schools and 
23.24   charter schools eligible to participate under this section: 
23.25   (1) must have a three-year plan approved by the local school board to create a new or 
23.26   expand an existing program to implement the college board advanced placement courses 
23.27   and exams or preadvanced placement courses; and 
23.28   (2) must propose to further raise students' academic achievement by: 
23.29   (i) increasing the availability of and all students' access to advanced placement; 
23.30   (ii) expanding the breadth of advanced placement courses or programs that are 
23.31   available to students; 
23.32   (iii) increasing the number and the diversity of the students who participate in 
23.33   advanced placement courses or programs and succeed; 
24.1    (iv) providing low-income and other disadvantaged students with increased access 
24.2    to advanced placement courses and programs; or 
24.3    (v) increasing the number of high school students, including low-income and other 
24.4    disadvantaged students, who receive college credit by successfully completing advanced 
24.5    placement courses or programs and achieving satisfactory scores on related exams.
24.6        Subd. 2. Application and review process; funding priority. (a) Charter schools 
24.7    and school districts in which eligible schools under subdivision 1 are located may 
24.8    apply to the commissioner, in the form and manner the commissioner determines, for 
24.9    competitive funding to further raise students' academic achievement. The application 
24.10   must detail the specific efforts the applicant intends to undertake in further raising 
24.11   students' academic achievement, consistent with subdivision 1, and a proposed budget 
24.12   detailing the district or charter school's current and proposed expenditures for advanced 
24.13   placement or preadvanced placement courses and programs. The proposed budget must 
24.14   demonstrate that the applicant's efforts will supplement but not supplant any expenditures 
24.15   for advanced placement and preadvanced placement courses and programs the applicant 
24.16   currently makes available to students. Expenditures for administration must not exceed 
24.17   five percent of the proposed budget. The commissioner may require an applicant to 
24.18   provide additional information.
24.19   (b) When reviewing applications, the commissioner must determine whether 
24.20   the applicant satisfied all the requirements in this subdivision and subdivision 1. 
24.21   The commissioner may give funding priority to an otherwise qualified applicant that 
24.22   demonstrates:
24.23   (1) a focus on developing or expanding advanced placement courses and programs 
24.24   or increasing students' participation in, access to, or success with the courses or programs, 
24.25   including the participation, access, or success of low-income and other disadvantaged 
24.26   students;
24.27   (2) a compelling need for access to advanced placement programs;
24.28   (3) an effective ability to actively involve local business and community 
24.29   organizations in student activities that are integral to advanced placement courses and 
24.30   programs; 
24.31   (4) access to additional public or nonpublic funds or in-kind contributions that are 
24.32   available for advanced placement programs; or
24.33   (5) an intent to implement activities that target low-income and other disadvantaged 
24.34   students.
24.35       Subd. 3. Funding; permissible funding uses. (a) The commissioner shall award 
24.36   grants to applicant school districts and charter schools that meet the requirements of 
25.1    subdivisions 1 and 2. The commissioner must award grants on an equitable geographical 
25.2    basis to the extent feasible and consistent with this section. Grant awards must not exceed 
25.3    the lesser of:
25.4    (1) $85 times the number of pupils enrolled at the participating sites on October 
25.5    1 of the previous fiscal year; or
25.6    (2) the approved supplemental expenditures based on the budget submitted under 
25.7    subdivision 2. For charter schools in their first year of operation, the maximum grant 
25.8    award must be calculated using the number of pupils enrolled on October 1 of the current 
25.9    fiscal year. The commissioner may adjust the maximum grant award computed using prior 
25.10   year data for changes in enrollment attributable to school closings, school openings, 
25.11   grade level reconfigurations, or school district reorganizations between the prior fiscal 
25.12   year and the current fiscal year.
25.13   (b) School districts and charter schools that submit an application and receive 
25.14   funding under this section must use the funding, consistent with the application, to:
25.15   (1) provide teacher training and instruction to more effectively serve students, 
25.16   including low-income and other disadvantaged students, who participate in preadvanced 
25.17   and advanced placement programs;
25.18   (2) further develop advanced placement courses or programs;
25.19   (3) improve the transition between grade levels to better prepare students, including 
25.20   low-income and other disadvantaged students, for succeeding in advanced placement 
25.21   programs;
25.22   (4) purchase books and supplies;
25.23   (5) pay course or program fees;
25.24   (6) increase students' participation in and success with advanced placement 
25.25   programs;
25.26   (7) expand students' access to preadvanced placement or advanced placement 
25.27   courses or programs through online learning;
25.28   (8) hire appropriately licensed personnel to teach additional advanced placement 
25.29   programs; or
25.30   (9) engage in other activity directly related to expanding students' access to, 
25.31   participation in, and success with preadvanced placement or advanced placement courses 
25.32   and programs, including low-income and other disadvantaged students.
25.33       Subd. 4. Annual reports. (a) Each school district and charter school that receives 
25.34   a grant under this section annually must collect demographic and other student data to 
25.35   demonstrate and measure the extent to which the district or charter school raised students' 
25.36   academic achievement under this program and must report the data to the commissioner 
26.1    in the form and manner the commissioner determines. The commissioner annually by 
26.2    February 15 must make summary data about this program available to the education 
26.3    policy and finance committees of the legislature.
26.4    (b) Each school district and charter school that receives a grant under this section 
26.5    annually must report to the commissioner, consistent with the Uniform Financial 
26.6    Accounting and Reporting Standards, its actual expenditures for advanced placement and 
26.7    preadvanced placement programs. The report must demonstrate that the school district or 
26.8    charter school has maintained its effort from other sources for advanced placement and 
26.9    preadvanced placement programs compared with the previous fiscal year, and the district 
26.10   or charter school has expended all grant funds, consistent with its approved budget.
26.11   EFFECTIVE DATE.This section is effective the day following final enactment 
26.12   and applies to the 2006-2007 school year.

26.13       Sec. 2. [122A.416] ALTERNATIVE TEACHER COMPENSATION REVENUE 
26.14   FOR PERPICH CENTER FOR ARTS EDUCATION AND MULTIDISTRICT 
26.15   INTEGRATION COLLABORATIVES.
26.16   Notwithstanding sections 122A.413, 122A.414, 122A.415, and 126C.10, 
26.17   multidistrict integration collaboratives and the Perpich Center for Arts Education are 
26.18   eligible to receive alternative teacher compensation revenue as if they were intermediate 
26.19   school districts. To qualify for alternative teacher compensation revenue, a multidistrict 
26.20   integration collaborative or the Perpich Center for Arts Education must meet all of the 
26.21   requirements of sections 122A.413, 122A.414, and 122A.415 that apply to intermediate 
26.22   school districts, must report its enrollment as of October 1 of each year to the department, 
26.23   and must annually report its expenditures for the alternative teacher professional pay 
26.24   system consistent with the uniform financial accounting and reporting standards to the 
26.25   department by November 30 of each year.
26.26   EFFECTIVE DATE.This section is effective for revenue for fiscal year 2007.

26.27       Sec. 3. Minnesota Statutes 2004, section 181.101, is amended to read:
26.28   181.101 WAGES; HOW OFTEN PAID.
26.29   Every employer must pay all wages earned by an employee at least once every 31 
26.30   days on a regular pay day designated in advance by the employer regardless of whether 
26.31   the employee requests payment at longer intervals. Unless paid earlier, the wages earned 
26.32   during the first half of the first 31-day pay period become due on the first regular payday 
26.33   following the first day of work. If wages earned are not paid, the commissioner of labor 
26.34   and industry or the commissioner's representative may demand payment on behalf of an 
26.35   employee. If payment is not made within ten days of demand, the commissioner may 
27.1    charge and collect the wages earned and a penalty in the amount of the employee's average 
27.2    daily earnings at the rate agreed upon in the contract of employment, not exceeding 15 
27.3    days in all, for each day beyond the ten-day limit following the demand. Money collected 
27.4    by the commissioner must be paid to the employee concerned. This section does not 
27.5    prevent an employee from prosecuting a claim for wages. This section does not prevent 
27.6    a school district or,  other public school entity, or other school, as defined under section 
27.7    120A.22,  from paying any wages earned by its employees during a school year on regular 
27.8    pay days in the manner provided by an applicable contract or collective bargaining 
27.9    agreement, or a personnel policy adopted by the governing board. For purposes of this 
27.10   section, "employee" includes a person who performs agricultural labor as defined in 
27.11   section  181.85, subdivision 2. For purposes of this section, wages are earned on the 
27.12   day an employee works. 

27.13       Sec. 4. CHINESE LANGUAGE PROGRAMS; CURRICULUM 
27.14   DEVELOPMENT PROJECT.
27.15       Subdivision 1. Project parameters. (a) Notwithstanding other law to the contrary, 
27.16   the commissioner of education may contract with the Board of Regents of the University 
27.17   of Minnesota or other Minnesota public entity the commissioner determines is qualified 
27.18   to undertake the development of an articulated K-12 Chinese curriculum for Minnesota 
27.19   schools that involves:
27.20   (1) creating a network of Chinese teachers and educators able to develop new and 
27.21   modify or expand existing world languages K-12 curricula, materials, assessments, and 
27.22   best practices needed to provide Chinese language instruction to students; and
27.23   (2) coordinating statewide efforts to develop and expand Chinese language 
27.24   instruction so that it is uniformly available to students throughout the state, and making 
27.25   innovative use of media and technology, including television, distance learning, and online 
27.26   courses to broaden students' access to the instruction.
27.27   (b) The entity with which the commissioner contracts under paragraph (a) must have 
27.28   sufficient knowledge and expertise to ensure the professional development of appropriate, 
27.29   high-quality curricula, supplementary materials, aligned assessments, and best practices 
27.30   that accommodate different levels of student ability and types of programs.
27.31   (c) Project participants must:
27.32   (1) work throughout the project to develop curriculum, supplementary materials, 
27.33   aligned assessments, and best practices; and
27.34   (2) make curriculum, supplementary materials, aligned assessments, and best 
27.35   practices equitably available to Minnesota schools and students.
28.1        Subd. 2. Project participants. The entity with which the commissioner contracts 
28.2    must work with the network of Chinese teachers and educators to:
28.3    (1) conduct an inventory of Chinese language curricula, supplementary materials, 
28.4    and professional development initiatives currently used in Minnesota or other states;
28.5    (2) develop Chinese language curricula and benchmarks aligned to local world 
28.6    language standards and classroom-based assessments; and
28.7    (3) review and recommend to the commissioner how best to build an educational 
28.8    infrastructure to provide more students with Chinese language instruction, including 
28.9    how to develop and provide: (i) an adequate supply of Chinese language teachers; (ii) 
28.10   an adequate number of high-quality school programs; (iii) appropriate curriculum, 
28.11   instructional materials, and aligned assessments that include technology-based delivery 
28.12   systems; (iv) teacher preparation programs to train Chinese language teachers; (v) 
28.13   expedited licensing of Chinese language teachers; (vi) best practices in existing 
28.14   educational programs that can be used to establish K-12 Chinese language programs; 
28.15   and (vii) technical assistance resources.
28.16   EFFECTIVE DATE.This section is effective the day following final enactment.

28.17       Sec. 5. NORTHWESTERN ONLINE COLLEGE IN THE HIGH SCHOOL 
28.18   PROGRAM.
28.19   For fiscal year 2007 only, the Northwestern Online College in the High School 
28.20   program is eligible for $50,000 for professional development and to develop Web-based 
28.21   technology.

28.22       Sec. 6. CHARACTER DEVELOPMENT EDUCATION REVENUE; PILOT 
28.23   PROGRAM.
28.24       Subdivision 1. Pilot program created. A pilot program is created to allow school 
28.25   districts to receive character development education revenue to purchase curriculum for 
28.26   the purposes of Minnesota Statutes, section 120B.232. Character development education 
28.27   revenue for school districts equals $30 times the district's adjusted marginal cost pupil 
28.28   units.
28.29       Subd. 2. Approved provider list. The commissioner of education shall maintain 
28.30   a character development education curriculum approved provider list. The character 
28.31   development education curriculum of approved providers shall be research based with 
28.32   at least one completed relational study covering a period of no fewer than five years 
28.33   and completed by an independent party. Approved character development education 
28.34   curriculum must include:
28.35   (1) age appropriate character development for the classroom in all elementary and 
28.36   secondary grades;
29.1    (2) curriculum for character development extracurricular activities; 
29.2    (3) teacher training workshops and in-service training; 
29.3    (4) plans for school assemblies promoting character development; 
29.4    (5) midyear consulting between the school district and the provider; and
29.5    (6) an assessment program.
29.6        Subd. 3. Application and selection process. A school district may submit to 
29.7    the commissioner an application for funding in the form and manner specified by the 
29.8    commissioner. The commissioner shall approve applications that propose to use an 
29.9    approved provider and that agree to use the program as recommended by the provider. 
29.10   The commissioner must approve or disapprove an application within 30 days of receipt on 
29.11   a first-come, first-served basis.
29.12   EFFECTIVE DATE.This section is effective the day following final enactment.

29.13       Sec. 7. APPROPRIATIONS.
29.14       Subdivision 1. Department of Education. The sums indicated in this section are 
29.15   appropriated from the general fund to the Department of Education for the fiscal years 
29.16   designated.
29.17       Subd. 2. Northwestern Online College in the High School program. For 
29.18   Northwestern Online College in the High School program under section 5:
29.19       $  50,000      .....     2007      
29.20   This is a onetime appropriation.
29.21       Subd. 3. Chinese language. For the Chinese language curriculum project under 
29.22   section 4:
29.23       $  250,000     .....     2007      
29.24   The commissioner must report to the house of representatives and senate committees 
29.25   having jurisdiction over kindergarten through grade 12 education policy and finance on 
29.26   the range of the program by February 15, 2007. The report shall address the applicability 
29.27   of the Chinese language curriculum project to other world languages and include the 
29.28   availability of instructors, curriculum, high-quality school programs, assessments, and 
29.29   best practices as they apply to world languages.
29.30   This is a onetime appropriation.
29.31       Subd. 4. Advanced placement increased student participation. For the increased 
29.32   participation of students in advanced placement programs under Minnesota Statutes, 
29.33   section 120B.132:
30.1        $  1,000,000   .....     2007      
30.2    This is a onetime appropriation.
30.3        Subd. 5. Character development education revenue. For the character 
30.4    development education revenue pilot program under section 6:
30.5        $  1,500,000   .....     2007      
30.6    This is a onetime appropriation.
30.7        Subd. 6. Scholars of distinction. For the scholars of distinction program:
30.8        $  25,000      .....     2007      
30.9    This is a onetime appropriation.
30.10       Subd. 7. TIMMS Study. For the department to contract with Boston College 
30.11   for Minnesota 4th and 8th grade students to participate in the TIMMS International 
30.12   assessment of student achievement in mathematics and science: 
30.13       $  500,000     .....     2007      
30.14   School districts must apply to participate in the study on a form and in the manner 
30.15   prescribed by the commissioner. The commissioner may select districts to participate if 
30.16   more districts than those applying are needed for the study. The provisions of Minnesota 
30.17   Statutes, chapter 16C, as they relate to competitive bidding, do not apply to this contract.
30.18   The Department of Education must receive at least $150,000 in private sector gifts 
30.19   or bequests to support the TIMMS study by July 1, 2006. If the Department of Education 
30.20   does not receive $150,000 in private gifts or bequests by July 1, 2006, the amount 
30.21   appropriated in this subdivision shall immediately cancel.
30.22   This is a onetime appropriation.
30.23   EFFECTIVE DATE.This section is effective the day following final enactment.

30.24                                          ARTICLE 5
30.25                            FACILITIES, ACCOUNTING, AND TECHNOLOGY

30.26       Section 1. Minnesota Statutes 2004, section 123B.57, subdivision 6, is amended to read:
30.27       Subd. 6. Uses of health and safety revenue. (a) Health and safety revenue may 
30.28   be used only for approved expenditures necessary to correct fire and life safety hazards, 
30.29   or for the removal or encapsulation of asbestos from school buildings or property 
30.30   owned or being acquired by the district, asbestos-related repairs, cleanup and disposal 
30.31   of polychlorinated biphenyls found in school buildings or property owned or being 
30.32   acquired by the district, or the cleanup, removal, disposal, and repairs related to storing 
31.1    heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, 
31.2    as defined in section  296A.01, Minnesota occupational safety and health administration 
31.3    regulated facility and equipment hazards, indoor air quality mold abatement, upgrades 
31.4    or replacement of mechanical ventilation systems to meet American Society of Heating, 
31.5    Refrigerating and Air Conditioning Engineers standards and State Mechanical Code, 
31.6    Department of Health Food Code and swimming pool hazards excluding depth correction, 
31.7    and health, safety, and environmental management. Testing and calibration activities are 
31.8    permitted for existing mechanical ventilation systems at intervals no less than every five 
31.9    years. Health and safety revenue must not be used to finance a lease purchase agreement, 
31.10   installment purchase agreement, or other deferred payments agreement. Health and safety 
31.11   revenue must not be used for the construction of new facilities or the purchase of portable 
31.12   classrooms, for interest or other financing expenses, or for energy efficiency projects 
31.13   under section  123B.65. The revenue may not be used for a building or property or part 
31.14   of a building or property used for postsecondary instruction or administration or for a 
31.15   purpose unrelated to elementary and secondary education. 
31.16   (b) Notwithstanding paragraph (a), health and safety revenue must not be used for 
31.17   replacement of building materials or facilities including roof, walls, windows, internal 
31.18   fixtures and flooring, nonhealth and safety costs associated with demolition of facilities, 
31.19   structural repair or replacement of facilities due to unsafe conditions, violence prevention 
31.20   and facility security, ergonomics, building and heating, ventilating and air conditioning 
31.21   supplies, maintenance, and cleaning, testing, and calibration activities. All assessments, 
31.22   investigations, inventories, and support equipment not leading to the engineering or 
31.23   construction of a project shall be included in the health, safety, and environmental 
31.24   management costs in subdivision 8, paragraph (a).
31.25   EFFECTIVE DATE.This section is effective for revenue for fiscal year 2008 
31.26   and later.

31.27       Sec. 2. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 3, 
31.28   is amended to read:
31.29   Subd. 3. Debt service equalization. For debt service aid  according to Minnesota 
31.30   Statutes, section 123B.53, subdivision 6:  
31.31          25,654,000                      
31.32       $  27,206,000  .....     2006      
31.33          24,134,000                      
31.34       $  18,410,000  .....     2007      
31.35   The 2006 appropriation includes $4,654,000 for 2005 and  $21,000,000 $22,552,000 
31.36   for 2006.  
32.1    The 2007 appropriation includes $3,911,000 $2,504,000 for 2006 and  $20,223,000 
32.2    $15,906,000 for 2007.  
32.3    EFFECTIVE DATE.This section is effective the day following final enactment.

32.4        Sec. 3. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 6, 
32.5    is amended to read:
32.6    Subd. 6. Emergency aid, Red Lake. For Independent School  District No. 38, Red 
32.7    Lake, for onetime emergency aid to repair  infrastructure damage to the Red Lake High 
32.8    School as a result of  the March 21, 2005, school shooting: 
32.9           50,000                          
32.10       $  524,000     .....     2006      
32.11   The school district must submit proposed expenditures for  these funds for review 
32.12   and comment approval under Minnesota  Statutes, section 123B.71 actual expenditure 
32.13   information to support this appropriation to the Department of Education, before the 
32.14   commissioner releases the  funds to the district. The district must report the amount of  its 
32.15   unreimbursed costs to the commissioner.
32.16   EFFECTIVE DATE.This section is effective the day following final enactment.

32.17       Sec. 4. APPROPRIATION; WASECA LEVY.
32.18   Independent School District No. 829, Waseca, may levy up to $344,000 beginning 
32.19   in 2006 over five years for health and safety revenue lost due to miscalculation. $316,000 
32.20   is appropriated in fiscal year 2007 to the commissioner of education for payment of the aid 
32.21   portion of lost revenue. If the district does not levy the full amount authorized within the 
32.22   five-year period, other state aid due to the district shall be reduced proportionately. This is 
32.23   a onetime appropriation for fiscal year 2007.

32.24       Sec. 5. APPROPRIATION; ROCORI SCHOOL DISTRICT.
32.25   $137,000 is appropriated in fiscal year 2007 from the general fund to the 
32.26   commissioner of education for a grant to Independent School District No. 750, Rocori. 
32.27   The grant is for a continuation of district activities that were developed in concert with 
32.28   the district's federal School Emergency Response to Violence, or Project SERV, grant. 
32.29   The grant may be used to continue the district's recovery efforts, and uses include: an 
32.30   academic program and impact of tragedy or program assessment of educational adequacy; 
32.31   an organizational analysis; a strategic planning overview; a district assessment survey; 
32.32   continued recovery support; staff development initiatives; and any other activities 
32.33   developed in response to the federal Project SERV grant.
32.34   The base budget for this program for fiscal year 2008 only is $53,000.
33.1    EFFECTIVE DATE.This section is effective the day following final enactment.

33.2        Sec. 6. FUND TRANSFERS.
33.3        Subdivision 1. A.C.G.C. Notwithstanding Minnesota Statutes, sections 123B.79, 
33.4    123B.80, and 475.61, subdivision 4, Independent School District No. 2396, A.C.G.C., on 
33.5    June 30, 2006, may permanently transfer up to $203,000 from its reserved account for 
33.6    disabled accessibility to its unrestricted general fund without making a levy reduction.
33.7        Subd. 2. Alden-Conger. Notwithstanding Minnesota Statutes, sections 123B.79 and 
33.8    123B.80, as of June 30, 2006, Independent School District No. 242, Alden-Conger, may 
33.9    permanently transfer up to $127,000 from its reserved for disabled accessibility account to 
33.10   its unrestricted general fund account without making a levy reduction.
33.11       Subd. 3. Fosston. Notwithstanding Minnesota Statutes, sections 123B.79 and 
33.12   123B.80, as of June 30, 2006, Independent School District No. 601, Fosston, may 
33.13   permanently transfer up to $80,000 from its reserved for disabled accessibility account to 
33.14   its unrestricted general fund account without making a levy reduction.
33.15       Subd. 4. Hopkins. Notwithstanding Minnesota Statutes, section 123B.79 or 
33.16   123B.80, on June 30, 2006, Independent School District No. 270, Hopkins, may 
33.17   permanently transfer up to $300,000 from its community education reserve fund balance 
33.18   to its undesignated general fund balance to assist the district in decreasing its statutory 
33.19   operating debt.
33.20       Subd. 5. Lester Prairie. Notwithstanding Minnesota Statutes, sections 123B.79 
33.21   or 123B.80, on June 30, 2006, Independent School District No. 424, Lester Prairie, may 
33.22   permanently transfer up to $150,000 from its reserved for operating capital account and up 
33.23   to $107,000 from its reserved for severance account, to its undesignated balance in the 
33.24   general fund.
33.25       Subd. 6. Milroy. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
33.26   on June 30, 2006, Independent School District No. 635, Milroy, may permanently transfer 
33.27   up to $26,000 from its reserved for disability accessibility account to its undesignated 
33.28   general fund balance without making a levy reduction. 
33.29       Subd. 7. Northland Community Schools. Notwithstanding Minnesota Statutes, 
33.30   section 123B.79 or 123B.80, on or before June 30, 2006, Independent School District No. 
33.31   118, Northland Community Schools, may permanently transfer up to $197,000 from its 
33.32   reserved for disabled accessibility account to its reserved for operating capital account in 
33.33   its general fund without making a levy reduction.
33.34       Subd. 8. Tyler. Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, 
33.35   Independent School District No. 409, Tyler, on June 30, 2006, may, based on the approval 
33.36   of the commissioner of education, permanently transfer up to $451,000 from its reserved 
34.1    for capital operating account to its debt redemption fund. The commissioner of education 
34.2    must only allow this fund transfer if it is in the best interest of the Russell-Tyler-Ruthton 
34.3    school district consolidation.
34.4    EFFECTIVE DATE.This section is effective the day following final enactment.

34.5        Sec. 7. HEALTH AND SAFETY REVENUE USES; BELLE PLAINE.
34.6    Notwithstanding Minnesota Statutes, sections 123B.57 and 123B.59, upon approval 
34.7    of the commissioner of education, Independent School District No. 716, Belle Plaine, may 
34.8    use up to $125,000 of its health and safety revenue raised through an alternative facilities 
34.9    bond for other qualifying health and safety projects.
34.10   EFFECTIVE DATE.This section is effective the day following final enactment.

34.11                                          ARTICLE 6
34.12                                          NUTRITION 

34.13       Section 1. Minnesota Statutes 2005 Supplement, section 124D.111, subdivision 1, 
34.14   is amended to read:
34.15       Subdivision 1. School lunch aid computation. Each school year, the state must pay 
34.16   participants in the national school lunch program the amount of ten 10.5 cents for each full 
34.17   paid, reduced, and free student lunch served to students.

34.18       Sec. 2. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 2, 
34.19   is amended to read:
34.20   Subd. 2.  School lunch. For school lunch aid according to  Minnesota Statutes, 
34.21   section 124D.111, and Code of Federal  Regulations, title 7, section 210.17:
34.22          8,998,000                       
34.23       $  9,760,000   .....     2006      
34.24          9,076,000                       
34.25       $  10,391,000  .....     2007      
34.26   EFFECTIVE DATE.This section is effective the day following final enactment.

34.27                                          ARTICLE 7
34.28                                EDUCATION FORECAST ADJUSTMENTS
34.29                                     A. GENERAL EDUCATION

34.30       Section 1. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 
34.31   3, is amended to read:
34.32   Subd. 3.   Referendum tax base replacement aid. For  referendum tax base 
34.33   replacement aid under Minnesota Statutes,  section 126C.17, subdivision 7a:
35.1           8,704,000                       
35.2        $  9,200,000   .....     2006      
35.3        $  8,704,000   .....     2007      
35.4    The 2006 appropriation includes $1,366,000 for 2005 and  $7,338,000 $7,834,000 
35.5    for 2006.  
35.6    The 2007 appropriation includes $1,366,000 $870,000 for 2006 and  $7,338,000 
35.7    $7,834,000 for 2007.
35.8    EFFECTIVE DATE.This section is effective the day following final enactment.

35.9        Sec. 2. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 5, 
35.10   is amended to read:
35.11   Subd. 5.  Abatement revenue.  For abatement aid under  Minnesota Statutes, section 
35.12   127A.49:
35.13          903,000                         
35.14       $  909,000     .....     2006      
35.15          955,000                         
35.16       $  1,026,000   .....     2007      
35.17   The 2006 appropriation includes $187,000 for 2005 and  $716,000 $722,000 for 2006.  
35.18   The 2007 appropriation includes $133,000 $80,000 for 2006 and  $822,000 $946,000 
35.19   for 2007.
35.20   EFFECTIVE DATE.This section is effective the day following final enactment.

35.21       Sec. 3. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 6, 
35.22   is amended to read:
35.23   Subd. 6.  Consolidation transition. For districts  consolidating under Minnesota 
35.24   Statutes, section 123A.485:
35.25          253,000                         
35.26       $  527,000     .....     2007      
35.27   The 2007 appropriation includes $0 for 2006 and $253,000 $527,000 for 2007.  

35.28       Sec. 4. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 7, 
35.29   is amended to read:
35.30   Subd. 7.   Nonpublic pupil education aid. For nonpublic  pupil education aid under 
35.31   Minnesota Statutes, sections 123B.87  and 123B.40 to 123B.43:
35.32          15,370,000                      
35.33       $  15,458,000  .....     2006      
35.34          16,434,000                      
35.35       $  15,991,000  .....     2007      
35.36   The 2006 appropriation includes $2,305,000  $1,864,000 for 2005 and  $13,065,000 
35.37    $13,594,000 for 2006.
36.1    The 2007 appropriation includes $2,433,000  $1,510,000 for 2006 and  $14,001,000 
36.2     $14,481,000 for 2007.
36.3    EFFECTIVE DATE.This section is effective the day following final enactment.

36.4        Sec. 5. Laws 2005, First Special Session chapter 5, article 1, section 54, subdivision 8, 
36.5    is amended to read:
36.6    Subd. 8.  Nonpublic pupil transportation. For nonpublic  pupil transportation aid 
36.7    under Minnesota Statutes, section  123B.92, subdivision 9:
36.8           21,451,000                      
36.9        $  21,371,000  .....     2006      
36.10          23,043,000                      
36.11       $  20,843,000  .....     2007      
36.12   The 2006 appropriation includes $3,274,000 for 2005 and  $18,177,000  $18,097,000 
36.13   for 2006.
36.14   The 2007 appropriation includes $3,385,000 $2,010,000 for 2006 and  $19,658,000 
36.15   $18,833,000 for 2007.
36.16   EFFECTIVE DATE.This section is effective the day following final enactment.
36.17                                   B. EDUCATION EXCELLENCE

36.18       Sec. 6. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 2, 
36.19   is amended to read:
36.20   Subd. 2.   Charter school building lease aid. For building  lease aid under Minnesota 
36.21   Statutes, section 124D.11, subdivision  4:  
36.22          25,465,000                      
36.23       $  25,331,000  .....     2006      
36.24          30,929,000                      
36.25       $  27,806,000  .....     2007      
36.26   The 2006 appropriation includes $3,324,000 $3,173,000 for 2005 and  $22,141,000 
36.27   $22,158,000 for 2006.  
36.28   The 2007 appropriation includes $4,123,000 $2,462,000 for 2006 and  $26,806,000 
36.29   $25,344,000 for 2007.  
36.30   EFFECTIVE DATE.This section is effective the day following final enactment.

36.31       Sec. 7. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 3, 
36.32   is amended to read:
36.33   Subd. 3.  Charter school startup aid. For charter school  startup cost aid under 
36.34   Minnesota Statutes, section 124D.11:  
37.1           1,393,000                       
37.2        $  1,291,000   .....     2006      
37.3           3,185,000                       
37.4        $  2,347,000   .....     2007      
37.5    The 2006 appropriation includes $0 for 2005 and $1,393,000 $1,291,000 for 2006.  
37.6    The 2007 appropriation includes $259,000 $143,000 for 2006 and  $2,926,000 
37.7    $2,204,000 for 2007.  
37.8    EFFECTIVE DATE.This section is effective the day following final enactment.

37.9        Sec. 8. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 4, 
37.10   is amended to read:
37.11   Subd. 4.   Integration aid. For integration aid under  Minnesota Statutes, section 
37.12   124D.86, subdivision 5:  
37.13          57,801,000                      
37.14       $  59,404,000  .....     2006      
37.15          57,536,000                      
37.16       $  58,405,000  .....     2007      
37.17   The 2006 appropriation includes $8,545,000 for 2005 and  $49,256,000 $50,859,000 
37.18   for 2006.  
37.19   The 2007 appropriation includes $9,173,000 $5,650,000 for 2006 and  $48,363,000 
37.20   $52,755,000 for 2007.  
37.21   EFFECTIVE DATE.This section is effective the day following final enactment.

37.22       Sec. 9. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 6, 
37.23   is amended to read:
37.24   Subd. 6.   Interdistrict desegregation or integration transportation grants. For 
37.25   interdistrict desegregation or  integration transportation grants under Minnesota Statutes,  
37.26   section 124D.87:  
37.27          7,768,000                       
37.28       $  6,032,000   .....     2006      
37.29          9,908,000                       
37.30       $  10,134,000  .....     2007      
37.31   EFFECTIVE DATE.This section is effective the day following final enactment.

37.32       Sec. 10. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
37.33   7, is amended to read:
37.34   Subd. 7.   Success for the future. For American Indian  success for the future grants 
37.35   under Minnesota Statutes, section  124D.81:  
38.1           2,137,000                       
38.2        $  2,240,000   .....     2006      
38.3        $  2,137,000   .....     2007      
38.4    The 2006 appropriation includes $335,000 $316,000 for 2005 and  $1,802,000 
38.5    $1,924,000 for 2006.  
38.6    The 2007 appropriation includes $335,000 $213,000 for 2006 and  $1,802,000 
38.7    $1,924,000 for 2007.  
38.8    EFFECTIVE DATE.This section is effective the day following final enactment.

38.9        Sec. 11. Laws 2005, First Special Session chapter 5, article 2, section 84, subdivision 
38.10   10, is amended to read:
38.11   Subd. 10.  Tribal contract schools. For tribal contract  school aid under Minnesota 
38.12   Statutes, section 124D.83:  
38.13          2,389,000                       
38.14       $  2,338,000   .....     2006      
38.15          2,603,000                       
38.16       $  2,357,000   .....     2007      
38.17   The 2006 appropriation includes $348,000 for 2005 and  $2,041,000 $1,990,000 
38.18   for 2006.  
38.19   The 2007 appropriation includes $380,000 $221,000 for 2006 and  $2,223,000 
38.20   $2,136,000 for 2007.  
38.21   EFFECTIVE DATE.This section is effective the day following final enactment.
38.22                                     C. SPECIAL PROGRAMS

38.23       Sec. 12. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
38.24   2, is amended to read:
38.25   Subd. 2.   Special education; regular. For special  education aid under Minnesota 
38.26   Statutes, section 125A.75:  
38.27          528,846,000                     
38.28       $  559,485,000 .....     2006      
38.29          527,446,000                     
38.30       $  528,106,000 .....     2007      
38.31   The 2006 appropriation includes $83,078,000 for 2005 and  $445,768,000 
38.32   $476,407,000 for 2006.  
38.33   The 2007 appropriation includes $83,019,000 $52,934,000 for 2006 and  
38.34   $444,427,000 $475,172,000 for 2007.  
38.35   EFFECTIVE DATE.This section is effective the day following final enactment.

38.36       Sec. 13. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
38.37   3, is amended to read:
39.1    Subd. 3.  Aid for children with disabilities. For aid  under Minnesota Statutes, 
39.2    section 125A.75, subdivision 3, for  children with disabilities placed in residential facilities  
39.3    within the district boundaries for whom no district of residence  can be determined:  
39.4           2,212,000                       
39.5        $  1,527,000   .....     2006      
39.6           2,615,000                       
39.7        $  1,624,000   .....     2007      
39.8    If the appropriation for either year is insufficient, the  appropriation for the other 
39.9    year is available.  
39.10   EFFECTIVE DATE.This section is effective the day following final enactment.

39.11       Sec. 14. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
39.12   4, is amended to read:
39.13   Subd. 4.  Travel for home-based services. For aid for  teacher travel for home-based 
39.14   services under Minnesota Statutes,  section 125A.75, subdivision 1:  
39.15          187,000                         
39.16       $  198,000     .....     2006      
39.17       $  195,000     .....     2007      
39.18   The 2006 appropriation includes $28,000 for 2005 and  $159,000 $170,000 for 2006.  
39.19   The 2007 appropriation includes $29,000 $18,000 for 2006 and  $166,000 $177,000 
39.20   for 2007.  
39.21   EFFECTIVE DATE.This section is effective the day following final enactment.

39.22       Sec. 15. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
39.23   5, is amended to read:
39.24   Subd. 5.   Special education; excess costs. For excess  cost aid under Minnesota 
39.25   Statutes, section 125A.79, subdivision  7:  
39.26          102,083,000                     
39.27       $  106,453,000 .....     2006      
39.28          104,286,000                     
39.29       $  104,333,000 .....     2007      
39.30   The 2006 appropriation includes $37,455,000 for 2005 and  $64,628,000 $68,998,000 
39.31   for 2006.  
39.32   The 2007 appropriation includes $38,972,000 $34,602,000 for 2006 and  $65,314,000 
39.33   $69,731,000 for 2007.  
39.34   EFFECTIVE DATE.This section is effective the day following final enactment.

39.35       Sec. 16. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
39.36   6, is amended to read:
40.1    Subd. 6. Transition for disabled students. For aid for  transition programs for 
40.2    children with disabilities under  Minnesota Statutes, section 124D.454:  
40.3           8,788,000                       
40.4        $  9,300,000   .....     2006      
40.5           8,765,000                       
40.6        $  8,781,000   .....     2007      
40.7    The 2006 appropriation includes $1,380,000 for 2005 and  $7,408,000 $7,920,000 
40.8    for 2006.  
40.9    The 2007 appropriation includes $1,379,000 $880,000 for 2006 and  $7,386,000 
40.10   $7,901,000 for 2007.  
40.11   EFFECTIVE DATE.This section is effective the day following final enactment.

40.12       Sec. 17. Laws 2005, First Special Session chapter 5, article 3, section 18, subdivision 
40.13   7, is amended to read:
40.14   Subd. 7.  Court-placed special education revenue. For  reimbursing serving 
40.15   school districts for unreimbursed eligible  expenditures attributable to children placed in 
40.16   the serving  school district by court action under Minnesota Statutes,  section 125A.79, 
40.17   subdivision 4:  
40.18          65,000                          
40.19       $  46,000      .....     2006      
40.20       $  70,000      .....     2007      
40.21   EFFECTIVE DATE.This section is effective the day following final enactment.

40.22       Sec. 18. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
40.23   2, is amended to read:
40.24   Subd. 2.  Health and safety revenue. For health and  safety aid according to 
40.25   Minnesota Statutes, section 123B.57,  subdivision 5:  
40.26          802,000                         
40.27       $  823,000     .....     2006      
40.28          578,000                         
40.29       $  352,000     .....     2007      
40.30   The 2006 appropriation includes $211,000 for 2005 and  $591,000 $612,000 for 2006.  
40.31   The 2007 appropriation includes $109,000 $68,000 for 2006 and  $469,000 $284,000 
40.32   for 2007.  
40.33   EFFECTIVE DATE.This section is effective the day following final enactment.

40.34       Sec. 19. Laws 2005, First Special Session chapter 5, article 4, section 25, subdivision 
40.35   4, is amended to read:
40.36   Subd. 4.  Alternative facilities bonding aid. For  alternative facilities bonding aid, 
40.37   according to Minnesota  Statutes, section 123B.59, subdivision 1:  
41.1           19,287,000                      
41.2        $  20,387,000  .....     2006      
41.3        $  19,287,000  .....     2007      
41.4    The 2006 appropriation includes $3,028,000 for 2005 and  $16,259,000 $17,359,000 
41.5    for 2006.  
41.6    The 2007 appropriation includes $3,028,000 $1,928,000 for 2006 and  $16,259,000 
41.7    $17,359,000 for 2007.  
41.8    EFFECTIVE DATE.This section is effective the day following final enactment.
41.9                                         D. NUTRITION 

41.10       Sec. 20. Laws 2005, First Special Session chapter 5, article 5, section 17, subdivision 
41.11   3, is amended to read:
41.12   Subd. 3. Traditional school breakfast; kindergarten  milk. For traditional school 
41.13   breakfast aid and kindergarten  milk under Minnesota Statutes, sections 124D.1158 and 
41.14   124D.118:  
41.15          4,878,000                       
41.16       $  4,856,000   .....     2006      
41.17          4,968,000                       
41.18       $  5,044,000   .....     2007      
41.19   EFFECTIVE DATE.This section is effective the day following final enactment.
41.20                                         E. LIBRARIES

41.21       Sec. 21. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 2, 
41.22   is amended to read:
41.23       Subd. 2. Basic system support. For basic system support grants under Minnesota 
41.24   Statutes, section 134.355:
41.25          8,570,000                       
41.26       $  9,058,000   .....     2006      
41.27       $  8,570,000   .....     2007      
41.28   The 2006 appropriation includes $1,345,000 for 2005 and $7,225,000 $7,713,000 
41.29   for 2006.
41.30   The 2007 appropriation includes $1,345,000 $857,000 for 2006 and $7,225,000 
41.31   $7,713,000 for 2007.
41.32   EFFECTIVE DATE.This section is effective the day following final enactment.

41.33       Sec. 22. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 3, 
41.34   is amended to read:
41.35   Subd. 3.   Multicounty, multitype library systems. For  grants under Minnesota 
41.36   Statutes, sections 134.353 and 134.354,  to multicounty, multitype library systems:  
42.1           903,000                         
42.2        $  954,000     .....     2006      
42.3        $  903,000     .....     2007      
42.4    The 2006 appropriation includes $141,000 for 2005 and  $762,000 $813,000 for 2006.  
42.5    The 2007 appropriation includes $141,000 $90,000 for 2006 and  $762,000 $813,000 
42.6    for 2007.  
42.7    EFFECTIVE DATE.This section is effective the day following final enactment.

42.8        Sec. 23. Laws 2005, First Special Session chapter 5, article 6, section 1, subdivision 5, 
42.9    is amended to read:
42.10   Subd. 5.  Regional library telecommunications aid. For  regional library 
42.11   telecommunications aid under Minnesota  Statutes, section 134.355:  
42.12          1,200,000                       
42.13       $  1,268,000   .....     2006      
42.14       $  1,200,000   .....     2007      
42.15   The 2006 appropriation includes $188,000 for 2005 and  $1,012,000 $1,080,000 
42.16   for 2006.  
42.17   The 2007 appropriation includes $188,000 $120,000 for 2006 and  $1,012,000 
42.18   $1,080,000 for 2007.  
42.19   EFFECTIVE DATE.This section is effective the day following final enactment.
42.20                                 F. EARLY CHILDHOOD EDUCATION

42.21       Sec. 24. Laws 2005, First Special Session chapter 5, article 7, section 20, subdivision 
42.22   2, is amended to read:
42.23   Subd. 2.  School readiness. For revenue for school  readiness programs under 
42.24   Minnesota Statutes, sections 124D.15  and 124D.16:  
42.25          9,020,000                       
42.26       $  9,528,000   .....     2006      
42.27          9,042,000                       
42.28       $  9,020,000   .....     2007      
42.29   The 2006 appropriation includes $1,417,000 $1,415,000 for 2005 and  $7,603,000 
42.30   $8,113,000 for 2006.  
42.31   The 2007 appropriation includes $1,415,000 $901,000 for 2006 and  $7,627,000 
42.32   $8,119,000 for 2007.  
42.33   EFFECTIVE DATE.This section is effective the day following final enactment.
42.34                                        G. PREVENTION

42.35       Sec. 25. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 2, 
42.36   is amended to read:
43.1    Subd. 2.  Community education aid. For community  education aid under 
43.2    Minnesota Statutes, section 124D.20:  
43.3           1,918,000                       
43.4        $  2,043,000   .....     2006      
43.5           1,837,000                       
43.6        $  1,949,000   .....     2007      
43.7    The 2006 appropriation includes $390,000 $385,000 for 2005 and  $1,528,000 
43.8    $1,658,000 for 2006.  
43.9    The 2007 appropriation includes $284,000 $184,000 for 2006 and  $1,553,000 
43.10   $1,765,000 for 2007.
43.11   EFFECTIVE DATE.This section is effective the day following final enactment.

43.12       Sec. 26. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 3, 
43.13   is amended to read:
43.14   Subd. 3.  Adults with disabilities program aid. For  adults with disabilities 
43.15   programs under Minnesota Statutes,  section 124D.56:  
43.16          710,000                         
43.17       $  750,000     .....     2006      
43.18       $  710,000     .....     2007      
43.19   The 2006 appropriation includes $111,000 for 2005 and  $599,000 $639,000 for 2006.  
43.20   The 2007 appropriation includes $111,000 $71,000 for 2006 and  $599,000 $639,000 
43.21   for 2007.  
43.22   EFFECTIVE DATE.This section is effective the day following final enactment.

43.23       Sec. 27. Laws 2005, First Special Session chapter 5, article 8, section 8, subdivision 5, 
43.24   is amended to read:
43.25   Subd. 5. School-age care revenue. For extended day aid  under Minnesota Statutes, 
43.26   section 124D.22:  
43.27       $  17,000      .....     2006      
43.28          7,000                           
43.29       $  4,000       .......   2007      
43.30   The 2006 appropriation includes $4,000 for 2005 and $13,000  for 2006.  
43.31   The 2007 appropriation includes $2,000 $1,000 for 2006 and $5,000  $3,000 for 2007.  
43.32    

43.33                                          ARTICLE 8
43.34                                       HIGHER EDUCATION

43.35       Section 1. HIGHER EDUCATION APPROPRIATIONS.
44.1    The sum shown in the column marked "APPROPRIATION" is added to the 
44.2    appropriations in Laws 2005, chapter 107, article 1, or other law to the agency and for the 
44.3    purposes specified in this article.  The appropriation is from the general fund or another 
44.4    named fund and is available for the fiscal year indicated for the purpose. The figure "2007" 
44.5    used in this article means that the addition to the appropriation listed under it is available 
44.6    for the fiscal year ending June 30, 2007.
44.7                                                            APPROPRIATION              
44.8                                                       Available for the Year        
44.9                                                        Ending June 30, 2007         

44.10   Sec. 2. BOARD OF REGENTS                                        $       5,000,000
44.11   To the Board of Regents of the University 
44.12   of Minnesota for the purposes of section 
44.13   8. This appropriation is for academic 
44.14   programs supporting the University of 
44.15   Minnesota - Rochester, including faculty, 
44.16   staff, and program planning and development 
44.17   in the areas of biomedical technologies, 
44.18   engineering, and computer technologies, 
44.19   health care administration, and allied health 
44.20   programs; ongoing operations of industrial 
44.21   liaison activities; and operation of leased 
44.22   facilities. The funding base for activities 
44.23   related to section 8 is $5,000,000 for fiscal 
44.24   year 2008 and $6,330,000 for fiscal year 
44.25   2009.

44.26       Sec. 3. Minnesota Statutes 2004, section 136A.101, subdivision 8, is amended to read:
44.27       Subd. 8. Resident student. "Resident student" means a student who meets one of 
44.28   the following conditions:
44.29   (1) a student who has resided in Minnesota for purposes other than postsecondary 
44.30   education for at least 12 months without being enrolled at a postsecondary educational 
44.31   institution for more than five credits in any term;
44.32   (2) a dependent student whose parent or legal guardian resides in Minnesota at the 
44.33   time the student applies;
44.34   (3) a student who graduated from a Minnesota high school, if the student was a 
44.35   resident of Minnesota during the student's period of attendance at the Minnesota high 
45.1    school and the student is physically attending a Minnesota postsecondary educational 
45.2    institution; or
45.3    (4) a student who, after residing in the state for a minimum of one year, earned a 
45.4    high school equivalency certificate in Minnesota.;
45.5    (5) a member, spouse, or dependent of a member of the armed forces of the United 
45.6    States stationed in Minnesota on active federal military service as defined in section 
45.7    190.05, subdivision 5c;
45.8    (6) a person or spouse of a person who relocated to Minnesota from an area that 
45.9    is declared a presidential disaster area within the preceding 12 months if the disaster 
45.10   interrupted the person's postsecondary education; or
45.11   (7) a person defined as a refugee under United States Code, title 8, section 
45.12   1101(a)(42), who, upon arrival in the United States, moved to Minnesota and has 
45.13   continued to reside in Minnesota.

45.14       Sec. 4. Minnesota Statutes 2004, section 136A.15, subdivision 9, is amended to read:
45.15       Subd. 9. Minnesota resident student. "Minnesota resident student" means a 
45.16   student who meets one of the following conditions in section  136A.101, subdivision 8.: 
45.17   (1) a student who has resided in Minnesota for purposes other than postsecondary 
45.18   education for at least 12 months without being enrolled at a postsecondary educational 
45.19   institution for more than five credits in any term;
45.20   (2) a dependent student whose parent or legal guardian resides in Minnesota at the 
45.21   time the student applies;
45.22   (3) a student who graduated from a Minnesota high school, if the student was a 
45.23   resident of Minnesota during the student's period of attendance at the Minnesota high 
45.24   school and the student is physically attending a Minnesota postsecondary educational 
45.25   institution; or
45.26   (4) a student who, after residing in the state for a minimum of one year, earned a 
45.27   high school equivalency certificate in Minnesota.

45.28       Sec. 5. Minnesota Statutes 2004, section 136A.1701, subdivision 4, is amended to read:
45.29       Subd. 4. Terms and conditions of loans. (a) The office may loan money upon such 
45.30   terms and conditions as the office may prescribe. The principal amount of a loan to an 
45.31   undergraduate student for a single academic year shall not exceed $6,000 for grade levels 
45.32   1 and 2 effective July 1, 2006, through June 30, 2007. Effective July 1, 2007, the principal 
45.33   amount of a loan for grade levels 1 and 2 shall not exceed $7,500. The principal amount 
45.34   of a loan for grade levels 3, 4, and 5 shall not exceed $7,500 effective July 1, 2006. The 
45.35   aggregate principal amount of all loans made under this section to an undergraduate 
46.1    student shall not exceed $25,000 $34,500 through June 30, 2007, and $37,500 after June 
46.2    30, 2007. The principal amount of a loan to a graduate student for a single academic year 
46.3    shall not exceed $9,000. The aggregate principal amount of all loans made under this 
46.4    section to a student as a an undergraduate and graduate student shall not exceed $40,000. 
46.5    $52,500 through June 30, 2007, and $55,500 after June 30, 2007. The amount of the loan 
46.6    may not exceed the cost of attendance less all other financial aid, including PLUS loans or 
46.7    other similar parent loans borrowed on the student's behalf. The cumulative SELF loan 
46.8    debt must not exceed the borrowing maximums in paragraph (b).
46.9    (b) The cumulative undergraduate borrowing maximums for SELF loans are:
46.10   (1) effective July 1, 2006, through June 30, 2007:
46.11   (i) grade level 1, $6,000;
46.12   (ii) grade level 2, $12,000;
46.13   (iii) grade level 3, $19,500;
46.14   (iv) grade level 4, $27,000; and
46.15   (v) grade level 5, $34,500; and
46.16   (2) effective July 1, 2007:
46.17   (i) grade level 1, $7,500;
46.18   (ii) grade level 2, $15,000;
46.19   (iii) grade level 3, $22,500;
46.20   (iv) grade level 4, $30,000; and
46.21   (v) grade level 5, $37,500.

46.22       Sec. 6. Minnesota Statutes 2004, section 136A.1701, subdivision 7, is amended to read:
46.23       Subd. 7. Repayment of loans. (a) The office shall establish repayment procedures 
46.24   for loans made under this section, but in no event shall the period of permitted repayment 
46.25   for SELF II or SELF III loans exceed ten years from the eligible student's termination of 
46.26   the student's postsecondary academic or vocational program, or 15 years from the date of 
46.27   the student's first loan under this section, whichever is less.
46.28   (b) For SELF loans from phases after SELF III, eligible students with aggregate 
46.29   principal loan balances from all SELF phases that are less than $18,750 shall have a 
46.30   repayment period not exceeding ten years from the eligible student's graduation or 
46.31   termination date. For SELF loans from phases after SELF III, eligible students with 
46.32   aggregate principal loan balances from all SELF phases of $18,750 or greater shall 
46.33   have a repayment period not exceeding 15 years from the eligible student's graduation 
46.34   or termination date. For SELF loans from phases after SELF III, the loans shall enter 
46.35   repayment no later than seven years after the first disbursement date on the loan.

47.1        Sec. 7. Minnesota Statutes 2004, section 137.022, subdivision 4, is amended to read:
47.2        Subd. 4. Mineral research; scholarships. (a) All income credited after July 1, 
47.3    1992, to the permanent university fund from royalties for mining under state mineral 
47.4    leases from and after July 1, 1991, must be allocated as provided in this subdivision.
47.5    (b)(1) Fifty percent of the income, up to $25,000,000 $50,000,000, must be credited 
47.6    to the mineral research account of the fund to be allocated for the Natural Resources 
47.7    Research Institute-Duluth and Coleraine facilities, for mineral and mineral-related 
47.8    research including mineral-related environmental research; and
47.9    (2) The remainder must be credited to the endowed scholarship account of the fund 
47.10   for distribution annually for scholastic achievement as provided by the Board of Regents 
47.11   to undergraduates enrolled at the University of Minnesota who are resident students as 
47.12   defined in section  136A.101, subdivision 8. 
47.13   (c) The annual distribution from the endowed scholarship account must be allocated 
47.14   to the various campuses of the University of Minnesota in proportion to the number of 
47.15   undergraduate resident students enrolled on each campus.
47.16   (d) The Board of Regents must report to the education committees of the legislature 
47.17   biennially at the time of the submission of its budget request on the disbursement of money 
47.18   from the endowed scholarship account and to the environment and natural resources 
47.19   committees on the use of the mineral research account.
47.20   (e) Capital gains and losses and portfolio income of the permanent university fund 
47.21   must be credited to its three accounts in proportion to the market value of each account.
47.22   (f) The endowment support from the income and capital gains of the endowed 
47.23   mineral research and endowed scholarship accounts of the fund must not total more than 
47.24   six percent per year of the 36-month trailing average market value of the account from 
47.25   which the support is derived.

47.26       Sec. 8. Minnesota Statutes 2004, section 137.17, subdivision 1, is amended to read:
47.27       Subdivision 1. Establish. The Board of Regents may establish a school of 
47.28   professional and graduate studies as a nonresidential branch campus of the University of 
47.29   Minnesota, in Rochester, to serve the educational needs of working adults and other 
47.30   nontraditional students in southeastern Minnesota. The campus shall be a joint partnership 
47.31   of the University of Minnesota with Rochester Community and Technical College, and 
47.32   Winona State University. and to foster the economic goals of the region and the state. The 
47.33   University of Minnesota should expand higher education offerings in Rochester that it is 
47.34   uniquely qualified to provide. To the extent possible, the Board of Regents should provide 
47.35   its offerings in partnership with higher education institutions that already serve Rochester 
48.1    and the southeastern region of Minnesota, and should avoid unnecessary duplicative 
48.2    offerings of courses and programs, particularly in nursing and allied health programs.
48.3    The Board of Trustees of the Minnesota State Colleges and Universities shall 
48.4    cooperate to achieve the foregoing.

48.5        Sec. 9. Minnesota Statutes 2004, section 137.17, subdivision 3, is amended to read:
48.6        Subd. 3. Missions. The legislature intends that the mission of the expanded 
48.7    education offerings in Rochester be congruent with the university's unique core mission of 
48.8    teaching, research, and outreach in order to support the educational needs and economic 
48.9    development of this region and the state. The legislature recognizes that the distinctiveness 
48.10   of each of the partner higher education institutions in Rochester must be maintained to 
48.11   achieve success in serving the higher education needs of the community and the economic 
48.12   goals of the state. Further, the legislature intends that the University of Minnesota and the 
48.13   other partner institutions avoid duplicative offerings of courses and programs. Therefore, 
48.14   the University of Minnesota, Winona State University, and Rochester Community and 
48.15   Technical College shall develop jointly a statement of missions, roles, and responsibilities 
48.16   for the programs and services at Rochester which shall be submitted to the legislature by 
48.17   January 30, 2000, and any time thereafter that the missions, roles, and responsibilities 
48.18   change.

48.19       Sec. 10.  REPEALER.
48.20   Minnesota Statutes 2004, section 137.17, subdivisions 2 and 4, are repealed.

48.21                                          ARTICLE 9
48.22                       ENVIRONMENT, NATURAL RESOURCES, AND AGRICULTURE

48.23   Section 1. ENVIRONMENTAL, NATURAL RESOURCES, AND                                     
48.24   AGRICULTURAL APPROPRIATIONS.                                                         
48.25   The sums shown in the columns marked "APPROPRIATIONS" are added to the 
48.26   appropriations in Laws 2005, First Special Session chapter 1, articles 1 and 2, or other 
48.27   specified law, to the named agencies and for the specified programs or activities. The sums 
48.28   shown are appropriated from the general fund, or another named fund, to be available for 
48.29   the fiscal years indicated for each purpose. The figures "2006" and "2007" used in this 
48.30   article mean that the appropriation or appropriations listed under them are available for 
48.31   the fiscal year ending June 30, 2006, or June 30, 2007, respectively. Appropriations in 
48.32   this article for the fiscal year ending June 30, 2006, are effective the day following final 
48.33   enactment.
48.34                                     SUMMARY BY FUND                                   
48.35                                     2006              2007             TOTAL     
49.1    General                   $          577,000$        1,838,000$        2,415,000
49.2    Natural Resources                        -0-           530,000           530,000
49.3    TOTAL                     $          577,000$        2,368,000$        2,945,000
49.4                                                           APPROPRIATIONS            
49.5                                                       Available for the Year        
49.6                                                           Ending June 30            
49.7                                                        2006              2007      

49.8    Sec. 2. DEPARTMENT OF AGRICULTURE             $         158,000$         648,000
49.9    This appropriation includes money for the 
49.10   following purposes:
49.11   (a) Invasive species control activities                  118,000           130,000
49.12   (b) Compensation payments for livestock                                           
49.13   depredation and crop damage                               40,000            53,000
49.14   (c) Plant pathology and biological control                                        
49.15   facility operations                                          -0-           190,000
49.16   (d) Grant to Second Harvest Heartland on behalf                                     
49.17   of Minnesota's six Second Harvest food banks                 -0-           200,000
49.18   For the purchase of milk for distribution 
49.19   to Minnesota's food shelves and other 
49.20   charitable organizations that are eligible 
49.21   to receive food from the food banks. This 
49.22   appropriation becomes base-level funding.
49.23   Milk purchased under the grants must be 
49.24   acquired from Minnesota milk processors 
49.25   and based on low-cost bids. The milk 
49.26   must be allocated to each Second Harvest 
49.27   food bank serving Minnesota according 
49.28   to the formula used in the distribution of 
49.29   United States Department of Agriculture 
49.30   commodities under the Emergency Food 
49.31   Assistance Program. Second Harvest 
49.32   Heartland must submit quarterly reports 
49.33   to the commissioner on forms prescribed 
49.34   by the commissioner. The reports must 
49.35   include, but are not limited to, information 
49.36   on the expenditure of money, the amount 
50.1    of milk purchased, and the organizations 
50.2    to which the milk was distributed.  Second 
50.3    Harvest Heartland may enter into contracts 
50.4    or agreements with food banks for shared 
50.5    funding or reimbursement of the direct 
50.6    purchase of milk.  Each food bank receiving 
50.7    money from this appropriation may use up to 
50.8    two percent of the grant for administrative 
50.9    expenses.
50.10   (e) Renewable energy                                         -0-            75,000
50.11   To the Department of Agriculture for 
50.12   handling increased renewable energy 
50.13   inquiries.

50.14   Sec. 3. BOARD OF ANIMAL HEALTH                           277,000           408,000
50.15   To eliminate bovine tuberculosis from cattle 
50.16   herds in Minnesota. This is a onetime 
50.17   appropriation.

50.18   Sec. 4. DEPARTMENT OF NATURAL                                                     
50.19   RESOURCES                                                142,000         1,312,000
50.20                           Summary by Fund                        
50.21                                             2006            2007
50.22   General                                142,000         782,000
50.23   Natural Resources                          -0-         530,000
50.24   (a) Bovine tuberculosis surveillance and                                          
50.25   diagnosis                                                 88,000           132,000
50.26   To the Department of Natural Resources to 
50.27   diminish the risk of disease transmission 
50.28   in domestic livestock. This is a onetime 
50.29   appropriation.
50.30   (b) Invasive species                                         -0-           550,000
50.31   To the Department of Natural Resources for 
50.32   prevention and control of harmful invasive 
50.33   species. This appropriation includes money 
50.34   for the control of curly leaf pondweed in 
50.35   Lake Osakis.
51.1    (c) Minnesota Shooting Sports Education Center               -0-           100,000
51.2    The commissioner may make direct 
51.3    expenditures for the operation of the center 
51.4    or contract with another entity to operate the 
51.5    center. This appropriation is available only 
51.6    to the extent it is matched by at least $1 of 
51.7    nonstate money from gifts or grants for each 
51.8    $2 of state money. This appropriation is 
51.9    added to the agency base of the Department 
51.10   of Natural Resources.
51.11   (d) Canoe routes                                             -0-           130,000
51.12   This appropriation is from the water 
51.13   recreation account in the natural resources 
51.14   fund to the commissioner of natural resources 
51.15   to cooperate with local units of government 
51.16   in marking routes and designating river 
51.17   accesses and campsites under Minnesota 
51.18   Statutes, section 85.32. This is a onetime 
51.19   appropriation and is available until spent.
51.20   (e) Emergency deterrent materials assistance              54,000               -0-
51.21   For the emergency deterrent materials 
51.22   assistance program under Minnesota 
51.23   Statutes, section 97A.028, subdivision 
51.24   3. This is a onetime appropriation and is 
51.25   available until June 30, 2007.
51.26   (f) State park and recreation area operation                 -0-           400,000
51.27   $400,000 is from the state parks account 
51.28   in the natural resources fund for state park 
51.29   and recreation area operations and for the 
51.30   operation and maintenance of the U.S. Army 
51.31   Corps of Engineers recreation sites on Cross 
51.32   Lake, Gull Lake, Sandy Lake, Leech Lake, 
51.33   Lake Pokegama, and Lake Winnibigoshish. 
51.34   The expenditure of money on the U.S. 
51.35   Army Corps of Engineers recreation sites is 
52.1    contingent upon acceptance of a long-term 
52.2    agreement with the U.S. Army Corps of 
52.3    Engineers. Acceptance may be through a 
52.4    lease arrangement, a transfer of the recreation 
52.5    lands, or other agreement with the U.S. 
52.6    Army Corps of Engineers. Rules of the 
52.7    commissioner of natural resources relating 
52.8    to state recreation areas apply to U.S. Army 
52.9    Corps of Engineers recreation sites managed 
52.10   by the commissioner pursuant to this 
52.11   paragraph. This is a onetime appropriation.
52.12   The commissioner may establish fees 
52.13   for these recreation sites as provided 
52.14   in Minnesota Statutes, section 85.052, 
52.15   subdivision 3. The money collected from 
52.16   fees established under this paragraph shall 
52.17   be deposited in the natural resources fund 
52.18   and credited to the state parks account. 
52.19   Until June 30, 2007, money deposited in the 
52.20   natural resources fund from fees established 
52.21   under this paragraph is appropriated to 
52.22   the commissioner for the operation and 
52.23   maintenance of the U.S. Army Corps of 
52.24   Engineers recreation sites.

52.25       Sec. 5. Minnesota Statutes 2005 Supplement, section 35.05, is amended to read:
52.26   35.05 AUTHORITY OF STATE BOARD.
52.27   (a) The state board may quarantine or kill any domestic animal infected with, or 
52.28   which has been exposed to, a contagious or infectious dangerous disease if it is necessary 
52.29   to protect the health of the domestic animals of the state.
52.30   (b) The board may regulate or prohibit the arrival in and departure from the state of 
52.31   infected or exposed animals and, in case of violation of any rule or prohibition, may detain 
52.32   any animal at its owner's expense. The board may regulate or prohibit the importation of 
52.33   domestic animals which, in its opinion, may injure the health of Minnesota livestock.
52.34   (c) When the governor declares an emergency under section 35.0661, the board, 
52.35   through its executive director, may assume control of such resources within the University 
52.36   of Minnesota's Veterinary Diagnostic Laboratory as necessary to effectively address the 
53.1    disease outbreak. The director of the laboratory and other laboratory personnel must 
53.2    cooperate fully in performing necessary functions related to the outbreak or threatened 
53.3    outbreak.
53.4    (d) Rules adopted by the board under authority of this chapter must be published 
53.5    in the State Register The board may test or require tests of any bovine or cervidae in 
53.6    the state when the board deems it necessary to achieve or maintain bovine tuberculosis 
53.7    accredited free state or zone status under the regulations and laws administered by the 
53.8    United States Department of Agriculture.

53.9        Sec. 6. Minnesota Statutes 2004, section 84.0835, subdivision 3, is amended to read:
53.10       Subd. 3. Citation authority. Employees designated by the commissioner under 
53.11   subdivision 1 may issue citations, as specifically authorized under this subdivision, for 
53.12   violations of:
53.13   (1) sections  85.052, subdivision 3 (payment of camping fees in state parks) and,  
53.14   85.45, subdivision 1 (cross-country ski pass), and 85.46 (horse trail pass); 
53.15   (2) rules relating to hours and days of operation, restricted areas, noise, fireworks, 
53.16   environmental protection, fires and refuse, pets, picnicking, camping and dispersed 
53.17   camping, nonmotorized uses, construction of unauthorized permanent trails, mooring of 
53.18   boats, fish cleaning, swimming, storage and abandonment of personal property, structures 
53.19   and stands, animal trespass, state park individual and group motor vehicle permits, 
53.20   licensed motor vehicles, designated roads, and snowmobile operation off trails;
53.21   (3) rules relating to off-highway vehicle registration, display of registration numbers, 
53.22   required equipment, operation restrictions, off-trail use for hunting and trapping, and 
53.23   operation in lakes, rivers, and streams;
53.24   (4) rules relating to off-highway vehicle and snowmobile operation causing damage 
53.25   or in closed areas within the Richard J. Dorer Memorial Hardwood State Forest;
53.26   (5) rules relating to parking, snow removal, and damage on state forest roads; and
53.27   (6) rules relating to controlled hunting zones on major wildlife management units.
53.28   EFFECTIVE DATE.This section is effective January 1, 2007.

53.29       Sec. 7. Minnesota Statutes 2004, section 85.32, subdivision 1, is amended to read:
53.30       Subdivision 1. Areas marked. The commissioner of natural resources is authorized 
53.31   in cooperation with local units of government and private individuals and groups when 
53.32   feasible to mark canoe and boating routes on the Little Fork, Big Fork, Minnesota, 
53.33   St. Croix, Snake, Mississippi, Red Lake, Cannon, Straight, Des Moines, Crow Wing, 
53.34   St. Louis, Pine, Rum, Kettle, Cloquet, Root, Zumbro, Pomme de Terre within Swift 
53.35   County, Watonwan, Cottonwood, Whitewater, Chippewa from Benson in Swift County to 
54.1    Montevideo in Chippewa County, Long Prairie, Red River of the North, Sauk, Otter Tail, 
54.2    and Crow Rivers which have historic and scenic values and to mark appropriately points 
54.3    of interest, portages, camp sites, and all dams, rapids, waterfalls, whirlpools, and other 
54.4    serious hazards which are dangerous to canoe and watercraft travelers.

54.5        Sec. 8. [85.46] HORSE TRAIL PASS.
54.6        Subdivision 1. Pass in possession. While riding, leading, or driving a horse on 
54.7    horse trails and associated day use areas on state trails, in state parks, in state recreation 
54.8    areas, and in state forests, a person 16 years of age or over shall carry in immediate 
54.9    possession and visibly display on person or horse tack, a valid horse trail pass. The pass 
54.10   must be available for inspection by a peace officer, a conservation officer, or an employee 
54.11   designated under section 84.0835.
54.12       Subd. 2. License agents. (a) The commissioner of natural resources may appoint 
54.13   agents to issue and sell horse trail passes. The commissioner may revoke the appointment 
54.14   of an agent at any time.
54.15   (b) The commissioner may adopt additional rules as provided in section 97A.485, 
54.16   subdivision 11. An agent shall observe all rules adopted by the commissioner for the 
54.17   accounting and handling of passes according to section 97A.485, subdivision 11.
54.18   (c) An agent must promptly deposit and remit all money received from the sale of 
54.19   passes, except issuing fees, to the commissioner.
54.20       Subd. 3. Issuance. The commissioner of natural resources and agents shall issue 
54.21   and sell horse trail passes. The pass shall include the applicant's signature and other 
54.22   information deemed necessary by the commissioner. To be valid, a pass must be signed by 
54.23   the person riding, leading, or driving the horse.
54.24       Subd. 4. Pass fees. (a) The fee for an annual horse trail pass is $20 for an individual 
54.25   16 years of age and over. The fee shall be collected at the time the pass is purchased. 
54.26   Annual passes are valid for one year beginning January 1 and ending December 31.
54.27   (b) The fee for a daily horse trail pass is $4 for an individual 16 years of age and 
54.28   over. The fee shall be collected at the time the pass is purchased. The daily pass is valid 
54.29   only for the date designated on the pass form.
54.30       Subd. 5. Issuing fee. In addition to the fee for a horse trail pass, an issuing fee of 
54.31   $1 per pass shall be charged. The issuing fee shall be retained by the seller of the pass. 
54.32   Issuing fees for passes sold by the commissioner of natural resources shall be deposited in 
54.33   the state treasury and credited to the horse trail account in the natural resources fund and 
54.34   are appropriated to the commissioner for the operation of the electronic licensing system. 
54.35   A pass shall indicate the amount of the fee that is retained by the seller.
55.1        Subd. 6. Disposition of receipts. Fees collected under this section, except for the 
55.2    issuing fee, shall be deposited in the state treasury and credited to the horse trail account 
55.3    in the natural resources fund. Except for the electronic licensing system commission 
55.4    established by the commissioner under section 84.027, subdivision 15, the fees are 
55.5    appropriated to the commissioner of natural resources for trail acquisition, trail and facility 
55.6    development, and maintenance, enforcement, and rehabilitation of horse trails or trails 
55.7    authorized for horse use, whether for riding, leading, or driving, on state trails and in state 
55.8    parks, state recreation areas, and state forests.
55.9        Subd. 7. Duplicate horse trail passes. The commissioner of natural resources and 
55.10   agents shall issue a duplicate pass to a person whose pass is lost or destroyed using the 
55.11   process established under section 97A.405, subdivision 3, and rules adopted thereunder. 
55.12   The fee for a duplicate horse trail pass is $2, with an issuing fee of 50 cents.
55.13   EFFECTIVE DATE.This section is effective January 1, 2007.

55.14       Sec. 9. Minnesota Statutes 2004, section 97A.028, subdivision 3, is amended to read:
55.15       Subd. 3. Emergency deterrent materials assistance. (a) For the purposes of this 
55.16   subdivision, "cooperative damage management agreement" means an agreement between 
55.17   a landowner or tenant and the commissioner that establishes a program for addressing the 
55.18   problem of destruction of the landowner's or tenant's specialty crops or stored forage 
55.19   crops by wild animals, or destruction of agricultural crops by flightless Canada geese.
55.20   (b) A landowner or tenant may apply to the commissioner for emergency deterrent 
55.21   materials assistance in controlling destruction of the landowner's or tenant's specialty 
55.22   crops or stored forage crops by wild animals, or destruction of agricultural crops by 
55.23   flightless Canada geese. Subject to the availability of money appropriated for this purpose, 
55.24   the commissioner shall provide suitable deterrent materials when the commissioner 
55.25   determines that:
55.26   (1) immediate action is necessary to prevent significant damage from continuing or 
55.27   to prevent the spread of bovine tuberculosis; and
55.28   (2) a cooperative damage management agreement cannot be implemented 
55.29   immediately.
55.30   (c) A person may receive emergency deterrent materials assistance under this 
55.31   subdivision more than once, but the cumulative total value of deterrent materials provided 
55.32   to a person, or for use on a parcel, may not exceed $3,000 for specialty crops, $5,000 for 
55.33   measures to prevent the spread of bovine tuberculosis within a five-mile radius of a cattle 
55.34   herd that is infected with bovine tuberculosis as determined by the Board of Animal 
55.35   Health, or $750 for protecting stored forage crops, or $500 for agricultural crops damaged 
56.1    by flightless Canada geese. If a person is a co-owner or cotenant with respect to the 
56.2    specialty crops for which the deterrent materials are provided, the deterrent materials are 
56.3    deemed to be "provided" to the person for the purposes of this paragraph.
56.4    (d) As a condition of receiving emergency deterrent materials assistance under this 
56.5    subdivision, a landowner or tenant shall enter into a cooperative damage management 
56.6    agreement with the commissioner. Deterrent materials provided by the commissioner may 
56.7    include repellents, fencing materials, or other materials recommended in the agreement 
56.8    to alleviate the damage problem. If requested by a landowner or tenant, any fencing 
56.9    materials provided must be capable of providing long-term protection of specialty crops. 
56.10   A landowner or tenant who receives emergency deterrent materials assistance under 
56.11   this subdivision shall comply with the terms of the cooperative damage management 
56.12   agreement.

56.13       Sec. 10. Laws 2005, First Special Session chapter 1, article 2, section 3, subdivision 2, 
56.14   is amended to read:
56.15     Subd. 2. Land and Mineral Resources        
56.16   Management                                   
56.17      8,903,000 8,653,000             8,675,000
56.18                           Summary by Fund                        
56.19                                        5,498,000                
56.20   General                             5,248,000        5,248,000
56.21   Natural Resources                    2,222,000       2,222,000
56.22   Game and Fish                          983,000       1,005,000
56.23   Permanent School                       200,000         200,000
56.24   $275,000 the first year and $275,000  the 
56.25   second year are for iron ore  cooperative 
56.26   research, of which $137,500  the first year 
56.27   and $137,500 the second  year are available 
56.28   only as matched by  $1 of nonstate money for 
56.29   each $1 of  state money.  The match may be 
56.30   cash or  in-kind.  
56.31   $86,000 the first year and $86,000 the  
56.32   second year are for minerals  cooperative 
56.33   environmental research, of  which $43,000 
56.34   the first year and  $43,000 the second year are 
56.35   available  only as matched by $1 of nonstate 
56.36   money  for each $1 of state money.  The 
56.37   match  may be cash or in-kind.  
57.1    $2,046,000 the first year and  $2,046,000 
57.2    the second year are from the  minerals 
57.3    management account in the  natural resources 
57.4    fund for only the  purposes specified in 
57.5    new Minnesota  Statutes, section 93.2236, 
57.6    paragraph  (c).  Of this amount, $1,526,000 
57.7    the  first year and $1,526,000 the second  
57.8    year are for mineral resource  management, 
57.9    $420,000 the first year and  $420,000 the 
57.10   second year are for  projects to enhance future 
57.11   income and  promote new opportunities, 
57.12   including  value-added iron products, 
57.13   geological  mapping, and mercury research, 
57.14   and  $100,000 the first year and $100,000  the 
57.15   second year are for environmental  review and 
57.16   the processing of permits  for mining projects 
57.17   that involve  state-owned mineral rights.  The  
57.18   appropriation is from the revenue  deposited 
57.19   in the minerals management  account 
57.20   under Minnesota Statutes,  section 93.22, 
57.21   subdivision 1, paragraph  (b).  $100,000 each 
57.22   year is a onetime  appropriation.  
57.23   $150,000 the first year and $150,000  
57.24   the second year are from the state  forest 
57.25   suspense account in the  permanent school 
57.26   fund to accelerate  land exchanges, land 
57.27   sales, and  commercial leasing of school 
57.28   trust  lands.  This appropriation is to be  used 
57.29   toward meeting the provisions of  Minnesota 
57.30   Statutes, section 92.121, to  exchange school 
57.31   trust lands or put  alternatives in effect when 
57.32   management  practices have diminished 
57.33   or prohibited  revenue generation, and the 
57.34   direction  of Minnesota Statutes, section 
57.35   127A.31,  to secure maximum long-term 
57.36   economic  return from the school trust lands  
58.1    consistent with fiduciary  responsibilities and 
58.2    sound natural  resources conservation and 
58.3    management  principles.  
58.4    $50,000 the first year and $50,000 the  second 
58.5    year are from the state forest  suspense 
58.6    account in the permanent  school fund to 
58.7    identify, evaluate, and  lease construction 
58.8    aggregate located on  school trust lands.  
58.9    $250,000 the first year is for a grant  to the Board of Regents of the  University of Minnesota 
58.10   to drill a  5,000 foot core sampling bore hole at  the Tower-Soudan mine complex in  support 
58.11   of a National Science  Foundation grant.  This is a onetime  appropriation.   

58.12       Sec. 11. EFFECTIVE DATE.
58.13   Unless otherwise specified, this article is effective the day following final enactment.

58.14                                          ARTICLE 10
58.15                                      CLEAN WATER LEGACY

58.16   Section 1. CLEAN WATER LEGACY APPROPRIATIONS.                                       
58.17   The sums shown in the columns marked "APPROPRIATIONS" are appropriated 
58.18   from the general fund to the agencies and for the purposes specified in this article.  Unless 
58.19   otherwise specified, the appropriations in this article are available for the fiscal year 
58.20   ending June 30, 2007. Appropriations in this article that are encumbered under contract, 
58.21   including grant contracts, on or before June 30, 2007, are available until June 30, 2009. 
58.22   All the appropriations in this article are onetime appropriations.
58.23   The appropriations in this article must be used to protect, restore, and preserve 
58.24   the quality of Minnesota's surface waters. Allowable activities include surface water 
58.25   assessments, program activities that target identified impairments, and development of 
58.26   total maximum daily load studies (TMDL's) as required by section 303(d) of the federal 
58.27   Clean Water Act, United States Code, title 33, section 1313(d), and applicable federal 
58.28   regulations.
58.29                                     SUMMARY BY FUND                                   
58.30                                                       2007             TOTAL     
58.31   General                                     $       15,000,000$       15,000,000
58.32                                                          APPROPRIATIONS            
58.33                                                      Available for the Year        
59.1                                                           Ending June 30            
59.2                                                                          2007      

59.3    Sec. 2. POLLUTION CONTROL AGENCY                                $       5,030,000
59.4    This appropriation may be spent for the 
59.5    following purposes:
59.6    (a) Statewide assessment of surface water                                         
59.7    quality and trends                                                       1,860,000
59.8    Up to $1,010,000 is available for grants or 
59.9    contracts to support citizen monitoring of 
59.10   surface waters.
59.11   (b) Develop TMDL's and TMDL                                                       
59.12   implementation plans for waters listed                                            
59.13   on the United States Environmental Protection                                     
59.14   Agency approved 2004 impaired waters list                                3,170,000
59.15   Up to $1,740,000 is available for grants or 
59.16   contracts to develop TMDL's.

59.17   Sec. 3. PUBLIC FACILITIES AUTHORITY                                        100,000
59.18   Small community wastewater treatment loans                                        
59.19   and grants                                                                 100,000

59.20   Sec. 4. AGRICULTURE DEPARTMENT                                           2,400,000
59.21   This appropriation may be spent for the 
59.22   following purposes:
59.23   (a) Agricultural best management practices loan                                     
59.24   program                                                                  1,200,000
59.25   For loans to producers and rural landowners. 
59.26   This appropriation is available until spent. 
59.27   At least $1,000,000 is available for 
59.28   pass-through to local governments and 
59.29   lenders for low-interest loans.
59.30   (b) Technical assistance                                                   400,000
59.31   To expand technical assistance to producers 
59.32   and conservation professionals on nutrient 
59.33   and pasture management, target practices to 
59.34   sources of water impairments, coordinate 
60.1    federal and state farm conservation programs 
60.2    to fully utilize federal conservation funds, 
60.3    and expand conservation planning assistance 
60.4    for producers.
60.5    $210,000 is available for grants or contracts 
60.6    to develop nutrient and conservation 
60.7    planning assistance information materials.
60.8    (c) Research, evaluation, and effectiveness                                       
60.9    monitoring of agricultural practices in restoring                                     
60.10   impaired waters                                                            800,000

60.11   Sec. 5. BOARD OF WATER AND SOIL                                                   
60.12   RESOURCES                                                                5,840,000
60.13   All of the money appropriated in this section 
60.14   as grants to local governments shall be 
60.15   administered through the Board of Water 
60.16   and Soil Resources' local water resources 
60.17   protection and management program under 
60.18   Minnesota Statutes, section 103B.3369.
60.19   This appropriation may be spent for the 
60.20   following purposes:
60.21   (a) Targeted nonpoint restoration cost-share and                                     
60.22   incentive payments                                                       1,500,000
60.23   Up to $1,400,000 is available for grants.
60.24   (b) Targeted nonpoint restoration technical,                                      
60.25   compliance, and engineering assistance                                            
60.26   activities                                                               2,000,000
60.27   Up to $1,800,000 is available for grants.
60.28   (c) Reporting and evaluation of applied soil and                                     
60.29   water conservation practices                                               200,000
60.30   (d) Grants to implement county individual                                         
60.31   sewage treatment system programs                                           730,000
60.32   (e) Grants to support local nonpoint source                                       
60.33   protection activities related to lake and river                                     
60.34   protection and management                                                1,410,000

60.35   Sec. 6. DEPARTMENT OF NATURAL                                                     
60.36   RESOURCES                                                                1,630,000
60.37   This appropriation may be spent for the 
60.38   following purposes:
61.1    (a) Statewide assessment of surface water                                         
61.2    quality and trends                                                         280,000
61.3    (b) Acquire high priority, sensitive riparian                                     
61.4    lands                                                                      500,000
61.5    (c) Forest stewardship planning and                                               
61.6    implementation; research, evaluation, and                                         
61.7    monitoring; and technical assistance to local                                     
61.8    units of government                                                        850,000

61.9        Sec. 7. Minnesota Statutes 2004, section 114D.30, subdivision 2, as added by 2006 S.F. 
61.10   No. 762, if enacted, is amended to read:
61.11       Subd. 2. Membership; appointment. The commissioners of natural resources, 
61.12   agriculture, and the Pollution Control Agency, and the executive director of the Board of 
61.13   Water and Soil Resources shall appoint one person from their respective agency to serve 
61.14   as a member of the council.  Agency members serve as nonvoting members of the council. 
61.15   Seventeen Nineteen additional nonagency members of the council shall be appointed by 
61.16   the governor as follows:
61.17   (1) two members representing statewide farm organizations; 
61.18   (2) one member two members representing business organizations; 
61.19   (3) one member two members representing environmental organizations; 
61.20   (4) one member representing soil and water conservation districts; 
61.21   (5) one member representing watershed districts; 
61.22   (6) one member representing nonprofit organizations focused on improvement of 
61.23   Minnesota lakes or streams; 
61.24   (7) two members representing organizations of county governments, one member 
61.25   representing the interests of rural counties and one member representing the interests of 
61.26   counties in the seven-county metropolitan area; 
61.27   (8) two members representing organizations of city governments; 
61.28   (9) one member representing the Metropolitan Council established under section 
61.29   473.123;
61.30   (10) one township officer;
61.31   (11) one member representing the interests of tribal governments;
61.32   (12) one member representing statewide hunting organizations;
61.33   (13) one member representing the University of Minnesota or a Minnesota state 
61.34   university; and 
61.35   (14) one member representing statewide fishing organizations.
61.36   Members appointed under clauses (1) to (14) must not be registered lobbyists. In making 
61.37   appointments, the governor must attempt to provide for geographic balance. The members 
61.38   of the council appointed by the governor are subject to the advice and consent of the senate.

62.1                                           ARTICLE 11
62.2                                      ECONOMIC DEVELOPMENT

62.3        Section 1. ECONOMIC DEVELOPMENT APPROPRIATIONS.
62.4    The sums shown in the columns marked "APPROPRIATIONS" are added to the 
62.5    appropriations in Laws 2005, First Special Session chapter 1, article 3, or other law to the 
62.6    agencies and for the purposes specified in this article.  The appropriations are from the 
62.7    general fund or another named fund and are available for the fiscal years indicated for 
62.8    each purpose. The figures "2006" and "2007" used in this article mean that the addition 
62.9    to the appropriation listed under them is available for the fiscal year ending June 30, 
62.10   2006, or June 30, 2007, respectively. "The first year" is fiscal year 2006. "The second 
62.11   year" is fiscal year 2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary 
62.12   appropriations and reductions to appropriations for the fiscal year ending June 30, 2006, 
62.13   are effective the day following final enactment.
62.14                                     SUMMARY BY FUND                                   
62.15                                     2006             2007             TOTAL     
62.16   General                   $            - 0 -$       29,552,000$       29,552,000
62.17   Workforce Development              1,250,000         1,950,000         3,200,000
62.18   Petroleum Tank Cleanup               477,000           478,000           955,000
62.19   Telecommunications                                                              
62.20   Access                                                 200,000           200,000
62.21   TOTAL                     $        1,727,000$       32,180,000$       33,907,000
62.22                                                          APPROPRIATIONS            
62.23                                                      Available for the Year        
62.24                                                          Ending June 30            
62.25                                                       2006              2007      

62.26   Sec. 2. DEPARTMENT OF EMPLOYMENT                                                  
62.27   AND ECONOMIC DEVELOPMENT                                                          
62.28   Subdivision 1.Total appropriation             $       1,250,000$      29,552,000
62.29   This appropriation includes money for the 
62.30   purposes in subdivisions 2 to 13.
62.31   Subd. 2.Business and community                                                    
62.32   development                                                                467,000
62.33   For a grant to BioBusiness Alliance 
62.34   of Minnesota for bioscience business 
62.35   development programs that will work to grow 
62.36   and create bioscience jobs in this state and 
62.37   position Minnesota as a global biobusiness 
62.38   leader. An annual report on the expenditure 
63.1    of the appropriation must be submitted to 
63.2    the senate Environment, Agriculture, and 
63.3    Economic Development Budget Division, 
63.4    and the house of representatives Jobs and 
63.5    Economic Opportunity Policy and Finance 
63.6    Committee by June 30 of each fiscal year 
63.7    until the appropriation is expended. The 
63.8    report must include the impact, if available, 
63.9    of the subsidy on reducing consumer costs of 
63.10   bioengineered products, and the jobs created, 
63.11   including wages and benefits. This is a 
63.12   onetime appropriation.
63.13   Subd. 3.Youthbuild                                                         150,000
63.14   For the youthbuild program under Minnesota 
63.15   Statutes, sections 116L.361 to 116L.366. 
63.16   The base for this appropriation is $75,000 in 
63.17   fiscal year 2008 and after.
63.18   Subd. 4.Hard hats program                                                  200,000
63.19   For a grant to the Summit Academy OIC for 
63.20   the 100 hard hats program. This is a onetime 
63.21   appropriation.
63.22   Subd. 5.Biotech partnership                                             15,000,000
63.23   For the direct and indirect expenses of the 
63.24   collaborative research partnership between 
63.25   the University of Minnesota and the Mayo 
63.26   Foundation for research in biotechnology 
63.27   and medical genomics. The is a onetime 
63.28   appropriation.
63.29   An annual report on the expenditure of 
63.30   this appropriation must be submitted 
63.31   to the governor and the chairs of the 
63.32   senate Higher Education Budget Division, 
63.33   the house of representatives Higher 
63.34   Education Finance Committee, the senate 
63.35   Environment, Agriculture, and Economic 
63.36   Development Budget Division, and 
64.1    the house of representatives Jobs and 
64.2    Economic Opportunity Policy and Finance 
64.3    Committee by June 30 of each fiscal year 
64.4    until the appropriation is expended. This 
64.5    appropriation is available until expended.
64.6    Subd. 6.Itasca County infrastructure                                    11,500,000
64.7    For transfer to the Minnesota minerals 21st 
64.8    century fund for a grant to Itasca County to 
64.9    design, construct, and equip roads, rail lines, 
64.10   natural gas pipelines, water supply systems, 
64.11   or wastewater collection and treatment 
64.12   systems for a steel plant in Itasca County. Of 
64.13   this amount, up to $500,000 may be used for 
64.14   other mineral related projects in the taconite 
64.15   relief area. This is a onetime appropriation.
64.16   Subd. 7.Programs for persons with                                                 
64.17   developmental and mental disabilities                                      150,000
64.18   For a grant to Advocating Change Together. 
64.19   The grant must be used to provide training, 
64.20   technical assistance, and resource materials 
64.21   to persons with developmental and mental 
64.22   health disabilities. This appropriation 
64.23   becomes part of the base appropriation 
64.24   for the Department of Employment and 
64.25   Economic Development.
64.26   Subd. 8.Wastewater treatment                                               100,000
64.27   For a grant to the city of Cedar Mills for costs 
64.28   it incurred in construction of a wastewater 
64.29   treatment system for 28 properties. The 
64.30   city must use the money to reduce its 
64.31   indebtedness for additional costs of the 
64.32   system that was not part of the originally 
64.33   planned project and resulted in excessive 
64.34   costs to homeowners. This is a onetime 
64.35   appropriation.
64.36   Subd. 9.Pilot workforce program                                            250,000
65.1    This appropriation is from the workforce 
65.2    development fund for grants to the West 
65.3    Central Initiative in Fergus Falls. These 
65.4    grants must be used to implement and operate 
65.5    Northern Connections, a pilot workforce 
65.6    program that provides one-stop supportive 
65.7    services to assist individuals as they transition 
65.8    into the workforce. This appropriation is 
65.9    available to the extent matched by $1 of 
65.10   nonstate money for each $1 of state money. 
65.11   This is a onetime appropriation.
65.12   Subd. 10.Summer youth employment                       1,250,000         1,250,000
65.13   This appropriation is from the workforce 
65.14   development fund for grants to fund summer 
65.15   youth employment in Minneapolis. The 
65.16   grants shall be used to fund up to 500 jobs for 
65.17   youth each summer. Of this appropriation, 
65.18   $250,000 the first year and $250,000 the 
65.19   second year are for a grant to the learn-to-earn 
65.20   summer youth employment program. The 
65.21   commissioner shall establish criteria for 
65.22   awarding the grants. This appropriation is 
65.23   available in either year of the biennium and 
65.24   is available until spent.
65.25   Subd. 11.Veterans' memorial                                                 10,000
65.26   For a grant to the city of Worthington for 
65.27   the construction of a veterans' memorial in 
65.28   Freedom Veterans' Memorial Park. This 
65.29   appropriation is contingent upon the receipt 
65.30   of local matching money on a $1 to $1 basis. 
65.31   This is a onetime appropriation.
65.32   Subd. 12.Workforce partnership                                             450,000
65.33   This appropriation is from the workforce 
65.34   development fund for a pilot project to 
65.35   encourage the licensure in Minnesota of 
65.36   foreign-trained health care professionals, 
66.1    including physicians, nurses, dentists, 
66.2    pharmacists, veterinarians, and other allied 
66.3    health care professionals. The commissioner 
66.4    must work with local workforce boards to 
66.5    award grants to foreign-trained health care 
66.6    professionals that are sufficient to cover the 
66.7    actual costs of taking a course intended to 
66.8    prepare health care professionals for required 
66.9    licensing examinations and the fee for taking 
66.10   required licensing examinations.  When 
66.11   awarding grants, the commissioner must 
66.12   consider whether the recipient's training 
66.13   involves a medical specialty that is in demand 
66.14   in one or more Minnesota communities. The 
66.15   commissioner also must establish additional 
66.16   criteria for the award of grants. The program 
66.17   will begin on July 1, 2006, and end on June 
66.18   30, 2007. The commissioner must submit a 
66.19   report evaluating the effectiveness of the pilot 
66.20   program to the legislative committees with 
66.21   jurisdiction over employment by October 1, 
66.22   2007. This is a onetime appropriation.
66.23   Subd. 13.Housing collaboration                                              25,000
66.24   For a grant to the city of St. Louis 
66.25   Park for the Meadowbrook collaborative 
66.26   housing project to enhance youth outreach 
66.27   services and to provide educational and 
66.28   recreational programming for at-risk 
66.29   youth. The collaborative must include a 
66.30   cross section of public and private sector 
66.31   community representatives. This is a onetime 
66.32   appropriation.

66.33   Sec. 3. DEPARTMENT OF COMMERCE                           477,000           478,000
66.34   Notwithstanding Minnesota Statutes, section 
66.35   115C.09, subdivision 2a, this appropriation is 
67.1    from the petroleum tank release cleanup fund 
67.2    for costs reimbursable to the Department of 
67.3    Transportation under Minnesota Statutes, 
67.4    section 115C.09, that were incurred 
67.5    before January 1, 2004. This is a onetime 
67.6    appropriation.

67.7    Sec. 4. DEPARTMENT OF HUMAN                                                       
67.8    SERVICES                                                                   200,000
67.9    This appropriation is from the 
67.10   telecommunications access Minnesota fund 
67.11   under Minnesota Statutes, section 237.52, 
67.12   to supplement the ongoing operational 
67.13   expenses of the Commission Serving 
67.14   Deaf and Hard-of-Hearing People. This 
67.15   appropriation shall become part of base level 
67.16   funding for the commission for the biennium 
67.17   beginning July 1, 2007.

67.18   Sec. 5. BOXING COMMISSION                                                   50,000
67.19   To operate and administer the commission. 
67.20   This is a onetime appropriation. 
67.21   By December 15, 2006, the commission 
67.22   must submit a report to the governor and 
67.23   the legislature setting forth a fee schedule 
67.24   that raises sufficient revenue to operate and 
67.25   administer the commission in fiscal year 
67.26   2008 and thereafter.

67.27   Sec. 6. EXPLORE MINNESOTA TOURISM                                        1,700,000
67.28   For a grant to the Minnesota Film and 
67.29   TV Board for reimbursements of up to 15 
67.30   percent of film production costs incurred in 
67.31   Minnesota, under Minnesota Statutes, section 
67.32   116U.26. This appropriation is available for 
67.33   films that begin filming on or after May 1, 
68.1    2006, and is available until June 30, 2007. 
68.2    This is a onetime appropriation.

68.3    Sec. 7. MINNESOTA HISTORICAL                                                      
68.4    SOCIETY                                                                    200,000
68.5    For a onetime grant to the Minnesota 
68.6    Agricultural Interpretive Center in Waseca to 
68.7    equip and restore current sites and exhibits.

68.8        Sec. 8. Laws 2005, First Special Session chapter 1, article 3, section 2, subdivision 4, 
68.9    is amended to read:
68.10    
68.11   Subd. 4.Workforce Services                            27,960,000        28,160,000
68.12                           Summary by Fund                        
68.13   General                             20,165,000      20,165,000
68.14   Workforce  Development               7,795,000       7,995,000
68.15   $4,864,000 the first year and  $4,864,000 the 
68.16   second year are from the  general fund and 
68.17   $7,420,000 the first  year and $7,420,000 
68.18   the second year are  from the workforce 
68.19   development fund for  extended employment 
68.20   services for  persons with severe disabilities 
68.21   or  related conditions under Minnesota  
68.22   Statutes, section 268A.15.  Of the  amount 
68.23   from the workforce development  fund, 
68.24   $500,000 each year is onetime.  
68.25   $1,690,000 the first year and  $1,690,000 
68.26   the second year are from the  general 
68.27   fund for grants under Minnesota  Statutes, 
68.28   section 268A.11, for the  eight centers for 
68.29   independent living.  Money not expended the 
68.30   first year is  available the second year.  
68.31   $150,000 the first year and $150,000  the 
68.32   second year are from the general  fund 
68.33   and $175,000 the first year and  $175,000 
68.34   the second year are from the  workforce 
68.35   development fund for grants  under Minnesota 
68.36   Statutes, section  268A.03, to Rise, Inc. 
68.37   for the  Minnesota Employment Center for 
69.1    People  Who are Deaf or Hard-of-Hearing.  
69.2    Money  not expended the first year is  available 
69.3    the second year. Of the  amount from the 
69.4    workforce development  fund, $150,000 each 
69.5    year is onetime added to the budget base.  
69.6    $1,000,000 the first year and  $1,000,000 
69.7    the second year are from the  general fund 
69.8    and $200,000 the first  year and $400,000 
69.9    the second year are  from the workforce 
69.10   development fund for  grants for programs 
69.11   that provide  employment support services to 
69.12   persons  with mental illness under Minnesota  
69.13   Statutes, sections 268A.13 and  268A.14.  
69.14   Up to $77,000 each year may  be used 
69.15   for administrative and salary  expenses.  
69.16   The appropriation from the  workforce 
69.17   development fund is onetime.  
69.18   $4,940,000 the first year and  $4,940,000 the 
69.19   second year are from the  general fund for 
69.20   state services for the  blind activities.  
69.21   $7,521,000 the first year and  $7,521,000 the 
69.22   second year are from the  general fund for the 
69.23   state's vocational  rehabilitation program for 
69.24   people with  significant disabilities to assist 
69.25   with  employment, under Minnesota Statutes,  
69.26   chapter 268A.  
69.27   On or after July 1, 2005, the  commissioner 
69.28   of finance shall cancel  the unencumbered 
69.29   balance in the  contaminated site cleanup and  
69.30   development account to the unrestricted  fund 
69.31   balance in the general fund.  

69.32       Sec. 9. [116J.656] SMALL BUSINESS ACCESS TO FEDERAL RESEARCH 
69.33   FUNDS.
69.34   (a) The commissioner shall assist small businesses to access federal money through 
69.35   the federal Small Business Innovation Research program and the Small Business 
69.36   Technology Transfer program. In providing this assistance, the commissioner shall 
70.1    maintain connections to eligible federal programs, assess specific funding opportunities, 
70.2    review funding proposals, provide referrals to specific consulting services, and hold 
70.3    training workshops throughout the state. 
70.4    (b) Unless prohibited by federal law, the commissioner must implement fees for 
70.5    services that help companies seek federal Phase II Small Business Innovation Research 
70.6    grants. The fees must be deposited in a special revenue account and are annually 
70.7    appropriated to the commissioner for the Small Business Innovation Research and Small 
70.8    Business Technology Transfer programs.

70.9        Sec. 13. [116U.26] FILM JOBS PRODUCTION PROGRAM.
70.10   (a) The film production jobs program is created. The program shall be operated 
70.11   by the Minnesota Film and TV Board with administrative oversight and control by the 
70.12   director of Explore Minnesota Tourism. The program shall make payment to producers of 
70.13   feature films, national television programs, documentaries, music videos, and commercials 
70.14   that directly create new film jobs in Minnesota. To be eligible for a payment, a producer 
70.15   must submit documentation to the Minnesota Film and TV Board of expenditures for 
70.16   production costs incurred in Minnesota that are directly attributable to the production 
70.17   in Minnesota of a film product. 
70.18   The Minnesota Film and TV Board shall make recommendations to the director of 
70.19   Explore Minnesota Tourism about program payment, but the director has the authority to 
70.20   make the final determination on payments. The director's determination must be based 
70.21   on proper documentation of eligible production costs submitted for payments. No more 
70.22   than five percent of the funds appropriated for the program in any year may be expended 
70.23   for administration. 
70.24   (b) For the purposes of this section:
70.25   (1) "production costs" means the cost of the following:
70.26   (i) a story and scenario to be used for a film;
70.27   (ii) salaries of talent, management, and labor, including payments to personal 
70.28   services corporations for the services of a performing artist;
70.29   (iii) set construction and operations, wardrobe, accessories, and related services;
70.30   (iv) photography, sound synchronization, lighting, and related services;
70.31   (v) editing and related services;
70.32   (vi) rental of facilities and equipment; or
70.33   (vii) other direct costs of producing the film in accordance with generally accepted 
70.34   entertainment industry practice; and
70.35   (2) "film" means a movie, television show, documentary, music video, or television 
70.36   commercial, whether on film or video. Film does not include news, current events, public 
71.1    programming, or a program that includes weather or market reports; a talk show; a 
71.2    production with respect to a questionnaire or contest; a sports event or sports activity; a 
71.3    gala presentation or awards show; a finished production that solicits funds; or a production 
71.4    for which the production company is required under United States Code, title 18, section 
71.5    2257, to maintain records with respect to a performer portrayed in a single-media or 
71.6    multimedia program.

71.7        Sec. 10. Minnesota Statutes 2005 Supplement, section 216C.41, subdivision 3, is 
71.8    amended to read:
71.9        Subd. 3. Eligibility window. Payments may be made under this section only for 
71.10   electricity generated:
71.11   (1) from a qualified hydroelectric facility that is operational and generating 
71.12   electricity before December 31, 2007 2009;
71.13   (2) from a qualified wind energy conversion facility that is operational and 
71.14   generating electricity before January 1, 2007 2008; or
71.15   (3) from a qualified on-farm biogas recovery facility from July 1, 2001, through 
71.16   December 31, 2017.

71.17       Sec. 11. Minnesota Statutes 2004, section 216C.41, subdivision 4, is amended to read:
71.18       Subd. 4. Payment period. (a) A facility may receive payments under this section for 
71.19   a ten-year period. No payment under this section may be made for electricity generated:
71.20   (1) by a qualified hydroelectric facility after December 31, 2017 2019;
71.21   (2) by a qualified wind energy conversion facility after December 31, 2017 2018; or
71.22   (3) by a qualified on-farm biogas recovery facility after December 31, 2015.
71.23   (b) The payment period begins and runs consecutively from the date the facility 
71.24   begins generating electricity or, in the case of refurbishment of a hydropower facility, after 
71.25   substantial repairs to the hydropower facility dam funded by the incentive payments are 
71.26   initiated.

71.27       Sec. 12. Minnesota Statutes 2004, section 326.105, is amended to read:
71.28   326.105 FEES.
71.29   The fee for licensure or renewal of licensure as an architect, professional engineer, 
71.30   land surveyor, landscape architect, or geoscience professional is $120 per biennium. 
71.31   The fee for certification as a certified interior designer or for renewal of the certificate 
71.32   is $120 per biennium. The fee for an architect applying for original certification as a 
71.33   certified interior designer is $50 per biennium. The initial license or certification fee for 
71.34   all professions is $120. The renewal fee shall be paid biennially on or before June 30 of 
71.35   each even-numbered year. The renewal fee, when paid by mail, is not timely paid unless it 
72.1    is postmarked on or before June 30 of each even-numbered year. The application fee is 
72.2    $25 for in-training applicants and $75 for professional license applicants.
72.3    The fee for monitoring licensing examinations for applicants is $25, payable by 
72.4    the applicant.

72.5        Sec. 13. [341.21] DEFINITIONS.
72.6        Subdivision 1. Applicability. The definitions in this section apply to this chapter.
72.7        Subd. 2. Boxing. "Boxing" means the act of attack and defense with the fists, using 
72.8    padded gloves, that is practiced as a sport under the rules of the Association of Boxing 
72.9    Commissions, or equivalent. Where applicable, boxing includes tough person contests.
72.10       Subd. 3. Commission. "Commission" means the Minnesota Boxing Commission.
72.11       Subd. 4. Contest. "Contest" means any boxing  contest, match, or exhibition.
72.12       Subd. 5. Professional. "Professional" means any person who competes for any 
72.13   money prize or a prize that exceeds the value of $50 or teaches, pursues, or assists in the 
72.14   practice of boxing  as a means of obtaining a livelihood or pecuniary gain.
72.15       Subd. 6. Director. "Director" means the executive director of the commission.
72.16       Subd. 7. Tough person contest. "Tough person contest," including contests 
72.17   marketed as tough man and tough woman contests, means any boxing match consisting 
72.18   of one-minute rounds between two or more persons who use their hands, or their feet, or 
72.19   both, in any manner. Tough person contest does not include kick boxing or any recognized 
72.20   martial arts competition.

72.21       Sec. 14. [341.22] BOXING COMMISSION.
72.22   There is hereby created the Minnesota Boxing Commission consisting of five 
72.23   members who are citizens of this state. The members must be appointed by the governor. 
72.24   One member of the commission must be a retired judge of the Minnesota district court, 
72.25   Minnesota Court of Appeals, Minnesota Supreme Court, the United States District Court 
72.26   for the District of Minnesota, or the Eighth Circuit Court of Appeals, and at least three 
72.27   members must have knowledge of the boxing industry. The governor shall make serious 
72.28   efforts to appoint qualified women to serve on the commission. Membership terms, 
72.29   compensation of members, removal of members, the filling of membership vacancies, and 
72.30   fiscal year and reporting requirements must be as provided in sections 214.07 to 214.09. 
72.31   The provision of staff, administrative services, and office space; the review and processing 
72.32   of complaints; the setting of fees; and other provisions relating to commission operations 
72.33   must be as provided in chapter 214. The purpose of the commission is to protect health, 
72.34   promote safety, and ensure fair events. 

72.35       Sec. 15. [341.23] LIMITATIONS.
73.1    No member of the Boxing Commission may directly or indirectly promote a boxing 
73.2    contest, directly or indirectly engage in the managing of a boxer, or have an interest in any 
73.3    manner in the proceeds from a boxing contest.

73.4        Sec. 16. [341.24] EXECUTIVE DIRECTOR.
73.5    The governor may appoint, and at pleasure remove, an executive director and 
73.6    prescribe the powers and duties of the office. The executive director shall not be a member 
73.7    of the commission. The commission may employ personnel necessary to the performance 
73.8    of its duties.

73.9        Sec. 17. [341.25] RULES.
73.10   (a) The commission may adopt rules that include standards for the physical 
73.11   examination and condition of boxers and referees.
73.12   (b) The commission may adopt other rules necessary to carry out the purposes of 
73.13   this chapter, including, but not limited to, the conduct of boxing exhibitions, bouts, and 
73.14   fights, and their manner, supervision, time, and place.

73.15       Sec. 18. [341.26] MEETINGS.
73.16   The commission shall hold a regular meeting quarterly and may hold special 
73.17   meetings. Except as otherwise provided in law, all meetings of the commission must be 
73.18   open to the public and reasonable notice of the meetings must be given under chapter 13D.

73.19       Sec. 19. [341.27] COMMISSION DUTIES.
73.20   The commission shall:
73.21   (1) issue, deny, renew, suspend, or revoke licenses;
73.22   (2) make and maintain records of its acts and proceedings including the issuance, 
73.23   denial, renewal, suspension, or revocation of licenses;
73.24   (3) keep public records of the commission open to inspection at all reasonable times;
73.25   (4) assist the director in the development of rules to be implemented under this 
73.26   chapter; and
73.27   (5) conform to the rules adopted under this chapter.

73.28       Sec. 20. [341.28] REGULATION OF BOXING  CONTESTS.
73.29       Subdivision 1. Regulatory authority; boxing. All professional boxing contests are 
73.30   subject to this chapter. Every contestant in a boxing contest shall wear padded gloves that 
73.31   weigh at least eight ounces. The commission shall, for every boxing contest:
73.32   (1) direct a commission member to be present; and
73.33   (2) direct the attending commission member to make a written report of the contest.
74.1    All boxing contests within this state must be conducted according to the requirements 
74.2    of this chapter.
74.3        Subd. 2. Regulatory authority; tough person contests. All tough person contests, 
74.4    including amateur tough person contests, are subject to this chapter. Every contestant in a 
74.5    tough person contest shall wear padded gloves that weigh at least 12 ounces.

74.6        Sec. 21. [341.29] JURISDICTION OF COMMISSION.
74.7    The commission shall:
74.8    (1) have sole direction, supervision, regulation, control, and jurisdiction over all 
74.9    boxing contests and tough person contests held within this state unless a contest is exempt 
74.10   from the application of this chapter under federal law;
74.11   (2) have sole control, authority, and jurisdiction over all licenses required by this 
74.12   chapter; and 
74.13   (3) grant a license to an applicant if, in the judgment of the commission, the financial 
74.14   responsibility, experience, character, and general fitness of the applicant are consistent 
74.15   with the public interest, convenience, or necessity and the best interests of boxing and 
74.16   conforms with this chapter and the commission's rules.

74.17       Sec. 22. [341.30] LICENSURE; PERSONS REQUIRED TO OBTAIN 
74.18   LICENSES; REQUIREMENTS; BACKGROUND INFORMATION; FEE; BOND.
74.19       Subdivision 1. Licensure; individuals. All referees, judges, matchmakers, 
74.20   promoters, trainers, ring announcers, timekeepers, ringside physicians, boxers, boxers' 
74.21   managers, and boxers' seconds are required to be licensed by the commission. The 
74.22   commission shall not permit any of these persons to participate in the holding or conduct 
74.23   of any boxing contest unless the commission has first issued the person a license.
74.24       Subd. 2. Entity licensure. Before participating in the holding or conduct of any 
74.25   boxing  contest, a corporation, partnership, limited liability company, or other business 
74.26   entity organized and existing under law, its officers and directors, and any person holding 
74.27   25 percent or more of the ownership of the corporation shall obtain a license from the 
74.28   commission and must be authorized to do business under the laws of this state.
74.29       Subd. 3. Background investigation. The commission may require referees, judges, 
74.30   matchmakers, promoters, and boxers to furnish fingerprints and background information 
74.31   under commission rules before licensure. The commission shall charge a fee for receiving 
74.32   fingerprints and background information in an amount determined by the commission. 
74.33   The commission may require referees, judges, matchmakers, promoters, and boxers to 
74.34   furnish fingerprints and background information before license renewal. The fee may 
74.35   include a reasonable charge for expenses incurred by the commission or the Department 
75.1    of Public Safety. For this purpose, the commission and the Department of Public Safety 
75.2    may enter into an interagency agreement.
75.3        Subd. 4. Prelicensure requirements. (a) Before the commission issues a license to 
75.4    a promoter, matchmaker, corporation, or other business entity, the applicant shall:
75.5    (1) provide the commission with a copy of any agreement between a contestant and 
75.6    the applicant that binds the applicant to pay the contestant a certain fixed fee or percentage 
75.7    of the gate receipts;
75.8    (2) show on the application the owner or owners of the applicant entity and the 
75.9    percentage of interest held by each owner holding a 25 percent or more interest in the 
75.10   applicant;
75.11   (3) provide the commission with a copy of the latest financial statement of the 
75.12   entity; and
75.13   (4) provide the commission with a copy or other proof acceptable to the commission 
75.14   of the insurance contract or policy required by this chapter.
75.15   (b) Before the commission issues a license to a promoter, the applicant shall deposit 
75.16   with the commission a cash bond or surety bond in an amount set by the commission. 
75.17   The bond shall be executed in favor of this state and shall be conditioned on the faithful 
75.18   performance by the promoter of the promoter's obligations under this chapter and the 
75.19   rules adopted under it.
75.20   (c) Before the commission issues a license to a boxer, the applicant shall submit to the 
75.21   commission the results of a current medical examination on forms furnished or approved 
75.22   by the commission. The medical examination must include an ophthalmological and 
75.23   neurological examination. The ophthalmological examination must be designed to detect 
75.24   any retinal defects or other damage or condition of the eye that could be aggravated by 
75.25   boxing. The neurological examination must include an electroencephalogram or medically 
75.26   superior test if the boxer  has been knocked unconscious in a previous boxing or other 
75.27   athletic competition. The commission may also order an electroencephalogram or other 
75.28   appropriate neurological or physical examination before any contest, match, or exhibition 
75.29   if it determines that the examination is desirable to protect the health of the boxer.

75.30       Sec. 23. [341.31] SIMULCAST LICENSES.
75.31   The commission shall issue a license to a person or organization holding, showing, or 
75.32   exhibiting a simultaneous telecast of any live, current, or spontaneous boxing or sparring 
75.33   match  on a closed circuit telecast or subscription television program viewed within the 
75.34   state, whether originating in this state or elsewhere, and for which a charge is made. Each 
75.35   person or organization shall apply for such a license in advance of each showing. No 
75.36   showing may be licensed unless the person or organization applying for the license: 
76.1    (1) certifies that the match is subject to the jurisdiction and regulation of a boxing or 
76.2    athletic regulatory authority in another state or country; 
76.3    (2) certifies the match is in compliance with the requirements of the authority; 
76.4    (3) identifies the authority; and 
76.5    (4) provides any information the commission may require.

76.6        Sec. 24. [341.32] LICENSE FEES; EXPIRATION; RENEWAL.
76.7        Subdivision 1. Annual licensure. The commission may establish and issue annual 
76.8    licenses subject to the collection of advance fees by the commission for promoters, 
76.9    matchmakers, managers, judges, referees, ring announcers, ringside physicians, 
76.10   timekeepers, boxers,  boxers' trainers, boxers' seconds, business entities filing for a license 
76.11   to participate in the holding of any boxing contest, and officers, directors, or other persons 
76.12   affiliated with the business entity.
76.13       Subd. 2. Expiration and renewal. A license expires December 31 at midnight in 
76.14   the year of its issuance and may be renewed by filing an application for renewal with the 
76.15   commission and payment of the license fee. An application for a license and renewal of a 
76.16   license must be on a form provided by the commission. There is a 30-day grace period 
76.17   during which a license may be renewed if a late filing penalty fee equal to the license fee 
76.18   is submitted with the regular license fee. A licensee that files late shall not conduct any 
76.19   activity regulated by this chapter until the commission has renewed the license. If the 
76.20   licensee fails to apply to the commission within the 30-day grace period, the licensee must 
76.21   apply for a new license under subdivision 1.

76.22       Sec. 25. [341.321] FEE SCHEDULE.
76.23   The fee schedule for licenses issued by the Minnesota Boxing Commission is as 
76.24   follows: 
76.25   (1) referees, $35 for each initial license and each renewal; 
76.26   (2) promoters, $400 for each initial license and each renewal; 
76.27   (3) judges, $25 for each initial license and each renewal; 
76.28   (4) trainers, $35 for each initial license and each renewal; 
76.29   (5) ring announcers, $25 for each initial license and each renewal; 
76.30   (6) boxers' seconds, $25 for each initial license and each renewal; 
76.31   (7) timekeepers, $25 for each initial license and each renewal; and 
76.32   (8) boxers, $35 for each initial license and each renewal. 
76.33   All fees collected by the Minnesota Boxing Commission must be deposited in the Boxing 
76.34   Commission account in the special revenue fund. 

77.1        Sec. 26. [341.33] CONTESTANTS AND REFEREES; PHYSICAL 
77.2    EXAMINATION; ATTENDANCE OF PHYSICIAN; PAYMENT OF FEES.
77.3        Subdivision 1. Examination by physician. All boxers and referees must be 
77.4    examined by a physician licensed by this state within three hours before entering the 
77.5    ring, and the examining physician shall immediately file with the commission a written 
77.6    report of the examination. The physician's examination shall report on the condition 
77.7    of the boxer's heart and general physical and neurological condition. The physician's 
77.8    report may record the condition of the boxer's nervous system and brain as required by 
77.9    the commission. The physician may prohibit the boxer from entering the ring if, in the 
77.10   physician's professional opinion, it is in the best interest of the boxer's health. The cost of 
77.11   the examination is payable by the person or entity conducting the contest or exhibition.
77.12       Subd. 2. Attendance of physician. A person holding or sponsoring a boxing 
77.13   contest shall have in attendance a physician licensed by this state. The commission may 
77.14   establish a schedule of fees to be paid to each attending physician by the person holding 
77.15   or sponsoring the contest.

77.16       Sec. 27. [341.34] INSURANCE.
77.17       Subdivision 1. Required insurance. The commission shall:
77.18   (1) require insurance coverage for a boxer  to provide for medical, surgical, and 
77.19   hospital care for injuries sustained in the ring in an amount of at least $20,000 and payable 
77.20   to the boxer  as beneficiary; and
77.21   (2) require life insurance for a boxer  in the amount of at least $20,000 payable in 
77.22   case of accidental death resulting from injuries sustained in the ring.
77.23       Subd. 2. Payment for insurance. The cost of the insurance required by this section 
77.24   is payable by the promoter.

77.25       Sec. 28. [341.35] PENALTIES FOR NONLICENSED EXHIBITIONS.
77.26   Any person or persons who send or cause to be sent, published, or otherwise made 
77.27   known, any challenge to fight what is commonly known as a prize fight, or engage in any 
77.28   public boxing or sparring match or contest, with or without gloves, for any prize, reward, 
77.29   or compensation, or for which any admission fee is charged directly or indirectly, or go into 
77.30   training preparatory for the fight, exhibition, or contest, or act as a trainer, aider, abettor, 
77.31   backer, umpire, referee, second, surgeon, assistant, or attendant at the fight, exhibition, or 
77.32   contest, or in any preparation for same, and any owner or lessee of any ground, building, 
77.33   or structure of any kind permitting the same to be used for any fight, exhibition, or contest, 
77.34   is guilty of a misdemeanor unless a license for the holding of the fight, exhibition, or 
77.35   contest has been issued by the commission in compliance with the rules adopted by it.

78.1        Sec. 29. [341.37] APPROPRIATION.
78.2    A Boxing Commission account is created in the special revenue fund. Money in 
78.3    the account is annually appropriated to the Boxing Commission for the purposes of 
78.4    conducting its statutory responsibilities and obligations.

78.5        Sec. 30. Minnesota Statutes 2004, section 469.334, subdivision 1, is amended to read:
78.6        Subdivision 1. Commissioner to designate. (a) The commissioner, in consultation 
78.7    with the commissioner of revenue and the director of the Office of Strategic and 
78.8    Long-Range Planning, shall designate not more than one or more biotechnology and 
78.9    health sciences industry zone. Priority must be given to applicants with a development 
78.10   plan that links a higher education/research institution with a biotechnology and health 
78.11   sciences industry facility.
78.12   (b) The commissioner may consult with the applicant prior to the designation of the 
78.13   zone. The commissioner may modify the development plan, including the boundaries of 
78.14   the zone or subzones, if in the commissioner's opinion a modified plan would better 
78.15   meet the objectives of the biotechnology and health sciences industry zone program. The 
78.16   commissioner shall notify the applicant of the modifications and provide a statement of 
78.17   the reasons for the modifications.
78.18   EFFECTIVE DATE.This section is effective the day following final enactment.

78.19       Sec. 31. Minnesota Statutes 2004, section 469.334, subdivision 4, is amended to read:
78.20       Subd. 4. Designation schedule. (a) The schedule in paragraphs (b) to (e) applies to 
78.21   the designation of the first biotechnology and health sciences industry zone.
78.22   (b) The commissioner shall publish the form for applications and any procedural, 
78.23   form, or content requirements for applications by no later than August 1, 2003. The 
78.24   commissioner may publish these requirements on the Internet, in the State Register, or by 
78.25   any other means the commissioner determines appropriate to disseminate the information 
78.26   to potential applicants for designation.
78.27   (c) Applications must be submitted by October 15, 2003.
78.28   (d) The commissioner shall designate the zones by no later than December 31, 2003.
78.29   (e) The designation of the zones takes effect January 1, 2004.
78.30   (f) Additional zones may be designated in later years, following substantially the 
78.31   same application and designation process as provided in paragraphs (b) to (e).
78.32   EFFECTIVE DATE.This section is effective the day following final enactment.

78.33       Sec. 32.  REPEALER.
78.34   Minnesota Statutes 2004, section 116J.543, is repealed.

79.1                                           ARTICLE 12
79.2                                         TRANSPORTATION

79.3        Section 1. TRANSPORTATION APPROPRIATIONS.
79.4    The sums shown in the columns marked "APPROPRIATIONS" are added to 
79.5    the appropriations in Laws 2005, First Special Session chapter 6, article 1, or other 
79.6    specified law, to the named agencies and for the specified purposes. The sums shown are 
79.7    appropriated from the general fund, or another named fund, to be available for the fiscal 
79.8    year indicated for each purpose. The figure "2007" used in this article means that the 
79.9    appropriations listed under it are available for the fiscal year ending June 30, 2007.
79.10                                                          APPROPRIATIONS            
79.11                                                      Available for the Year        
79.12                                                       Ending June 30, 2007         
79.13                                                                 $                 

79.14   Sec. 2. TOTAL APPROPRIATION                                                692,000

79.15   Sec. 3. TRANSPORTATION                                                            
79.16   Department of Transportation radio tower                                   380,000
79.17   To design and construct a new radio tower 
79.18   in Roseau County. This appropriation is 
79.19   available until expended.

79.20   Sec. 4. STATE PATROL                                                              
79.21   Automatic defibrillators                                                   312,000
79.22   For purchase of automated external 
79.23   defibrillators for State Patrol vehicles. This 
79.24   is a onetime appropriation. It is available 
79.25   until June 30, 2009, and is available only 
79.26   as matched by $2 from nonstate sources for 
79.27   each $3 from this appropriation.

79.28       Sec. 5. EFFECTIVE DATE.
79.29   This article is effective the day following final enactment.

79.30                                          ARTICLE 13
79.31                                        PUBLIC SAFETY

79.32   Section 1. PUBLIC SAFETY APPROPRIATIONS.                                         
80.1    The sums shown in the columns marked "APPROPRIATIONS" are added to the 
80.2    appropriations in Laws 2005, chapter 136, article 1, or other law to the agencies and for 
80.3    the purposes specified in this article.  The appropriations are from the general fund or 
80.4    another named fund and are available for the fiscal years indicated for each purpose.  The 
80.5    figures "2006" and "2007" used in this article mean that the addition to the appropriation 
80.6    listed under them is available for the fiscal year ending June 30, 2006, or June 30, 
80.7    2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 
80.8    2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary appropriations and 
80.9    reductions to appropriations for the fiscal year ending June 30, 2006, are effective the 
80.10   day following final enactment.
80.11                                     SUMMARY BY FUND                                   
80.12                                     2006              2007             TOTAL     
80.13   General                   $        3,846,000$       15,774,000$       19,620,000
80.14   Special Revenue                          -0-           200,000           200,000
80.15   TOTAL                     $        3,846,000$       15,974,000$       19,820,000
80.16                                                          APPROPRIATIONS            
80.17                                                      Available for the Year        
80.18                                                          Ending June 30            
80.19                                                       2006              2007      

80.20   Sec. 2. SUPREME COURT                         $             -0-$         600,000
80.21   AOD offenders                                                                     
80.22   For the first phase of a judicial initiative 
80.23   to more effectively address the increasing 
80.24   numbers of alcohol and other drug (AOD) 
80.25   offenders coming into Minnesota courts, 
80.26   including the increase in methamphetamine 
80.27   offenders. This is a onetime appropriation. 
80.28   Of this amount:
80.29   (1) $300,000 is for a study to recommend a 
80.30   more uniform and cost-effective structure 
80.31   for creating statewide applications of the 
80.32   problem-solving court model;
80.33   (2) $100,000 is to augment treatment services 
80.34   for problem-solving courts; and 
80.35   (3) $200,000 is for development of a 
80.36   multicounty pilot problem-solving court.

81.1    Sec. 3.  BOARD ON JUDICIAL                                                        
81.2    STANDARDS                                                172,000               -0-
81.3    Special hearings                                                                  
81.4    For costs of special hearings and an 
81.5    investigation regarding complaints of judicial 
81.6    misconduct. This is a onetime appropriation 
81.7    and is available until June 30, 2007.

81.8    Sec. 4. PUBLIC SAFETY                                                             
81.9    Subdivision 1.Total appropriation                        461,000         4,628,000
81.10   These appropriations are added to the 
81.11   appropriations in Laws 2005, chapter 136, 
81.12   article 1, section 9. The amounts that may 
81.13   be spent from these appropriations for each 
81.14   program are specified in subdivisions 2, 3, 
81.15   and 4.
81.16   Subd.  2.Emergency Management                            284,000               -0-
81.17   The fiscal year 2006 appropriation is to 
81.18   provide matching funds for FEMA funds 
81.19   received for natural disaster assistance 
81.20   payments. This appropriation is available 
81.21   on the day after enactment and is available 
81.22   until June 30, 2007. This is a onetime 
81.23   appropriation. 
81.24   Subd.  3.Criminal Apprehension                               -0-         1,300,000
81.25   This appropriation may be spent for the 
81.26   following purposes:
81.27   (a) Child pornography investigative unit                     -0-         1,000,000
81.28   To create a child pornography investigative 
81.29   unit to assist law enforcement throughout 
81.30   the state. The base for this activity shall be 
81.31   $778,000 in fiscal year 2008 and fiscal year 
81.32   2009.
81.33   (b) Predatory offender database                              -0-           200,000
81.34   For the enhancement of the predatory 
81.35   offender database to facilitate public 
82.1    notification of noncompliant sex offenders 
82.2    via the Internet. The base for this activity 
82.3    shall be $116,000 in fiscal year 2008 and 
82.4    fiscal year 2009.
82.5    (c) Missing persons and unidentified bodies                                       
82.6    backlog                                                      -0-           100,000
82.7    To address the missing persons and 
82.8    unidentified bodies backlog. This is a 
82.9    onetime appropriation.
82.10   The superintendent shall coordinate with 
82.11   federal and local units of government; 
82.12   federal, state, and local law enforcement 
82.13   agencies; medical examiners; coroners; 
82.14   odontologists; and other entities to reduce 
82.15   the state's reporting, data entry, and 
82.16   record-keeping backlog relating to missing 
82.17   persons and unidentified bodies. To the 
82.18   degree feasible, the superintendent shall 
82.19   ensure that all necessary data and samples, 
82.20   including, but not limited to, DNA samples 
82.21   and dental records get entered into all 
82.22   relevant federal and state databases.
82.23   By February 1, 2007, the superintendent shall 
82.24   report to the chairs and ranking minority 
82.25   members of the senate and house committees 
82.26   and divisions having jurisdiction over 
82.27   criminal justice policy and funding on the 
82.28   efforts to reduce the state's backlog. The 
82.29   report must give detailed information on how 
82.30   this appropriation was spent and how this 
82.31   affected the backlog. In addition, the report 
82.32   must make recommendations for changes 
82.33   to state law, including suggested legislative 
82.34   language, to improve reporting, data entry, 
82.35   and record keeping relating to future cases 
82.36   involving missing persons and unidentified 
82.37   bodies.
83.1    The superintendent, in consultation with 
83.2    the Minnesota Sheriffs Association and the 
83.3    Minnesota Chiefs of Police Association, 
83.4    shall develop a model policy to address law 
83.5    enforcement efforts and duties regarding 
83.6    missing adults and provide training to local 
83.7    law enforcement agencies on this model 
83.8    policy. 
83.9    By February 1, 2007, the superintendent shall 
83.10   report to the chairs and ranking minority 
83.11   members of the senate and house committees 
83.12   and divisions having jurisdiction over 
83.13   criminal justice policy and funding on the 
83.14   model policy and training.
83.15   Subd. 4.Office of justice programs                       177,000         3,328,000
83.16   This appropriation may be spent for the 
83.17   following purposes:
83.18   (a) Gang strike force and narcotic task forces               -0-           800,000
83.19   For expanded operations of the criminal gang 
83.20   strike force and narcotics task forces. This 
83.21   money is to be used to expand the activities 
83.22   of the criminal gang strike force and narcotics 
83.23   task forces to include investigations of gang 
83.24   or narcotics-related human trafficking and 
83.25   domestic or international drug trafficking 
83.26   cases. This appropriation must be used to 
83.27   increase the complement of individuals 
83.28   assigned to the criminal gang strike force and 
83.29   narcotics task forces throughout the state.
83.30   (b) Safe harbor for sexually exploited youth                                      
83.31   pilot project                                                -0-            98,000
83.32   For a grant to Ramsey County to implement 
83.33   the safe harbor for sexually exploited youth 
83.34   pilot project. The project must develop a 
83.35   victim services model to address the needs 
84.1    of sexually exploited youth. The project 
84.2    must focus on intervention and prevention 
84.3    methods; training for law enforcement, 
84.4    educators, social services providers, health 
84.5    care workers, advocates, court officials, 
84.6    prosecutors, and public defenders; and 
84.7    programs promoting positive outcomes 
84.8    for victims. The project must include 
84.9    development and implementation of a 
84.10   statewide model protocol for intervention 
84.11   and response methods for professionals, 
84.12   individuals, and agencies that may encounter 
84.13   sexually exploited youth. "Sexually 
84.14   exploited youth" include juvenile runaways, 
84.15   truants, and victims of criminal sexual 
84.16   conduct, prostitution, labor trafficking, sex 
84.17   trafficking, domestic abuse, and assault. This 
84.18   is a onetime appropriation. 
84.19   By January 15, 2008, Ramsey County shall 
84.20   report to the chairs and ranking minority 
84.21   members of the senate and house committees 
84.22   and divisions having jurisdiction over 
84.23   criminal justice funding and policy on the 
84.24   results of the pilot project. 
84.25   (c) Human trafficking task force and plan                    -0-            75,000
84.26   To implement Minnesota Statutes, sections 
84.27   299A.78 to 299A.7955, relating to the human 
84.28   trafficking task force and plan. This is a 
84.29   onetime appropriation.
84.30   (d) Legal advocacy trafficking victims                       -0-            60,000
84.31   For grants to three weekly clinics in 
84.32   Hennepin County that are staffed by 
84.33   attorneys from a nonprofit organization that 
84.34   provides free legal services to immigrants. 
84.35   This is a onetime appropriation.
84.36   (e) Toll-free hotline                                        -0-            35,000
85.1    To implement the toll-free hotline for 
85.2    trafficking victims described in Minnesota 
85.3    Statutes, section 299A.7957. The base 
85.4    budget for this activity is $15,000 in fiscal 
85.5    year 2008 and fiscal year 2009.
85.6    (f) Youth intervention programs                              -0-           200,000
85.7    For youth intervention programs under 
85.8    Minnesota Statutes, section 299A.73. 
85.9    This money must be used to help existing 
85.10   programs serve unmet needs in communities 
85.11   and to create new programs in underserved 
85.12   areas of the state. This appropriation is added 
85.13   to the program's base budget.
85.14   (g) Crime victim support grant                               -0-           150,000
85.15   For a grant to a private, nonprofit 
85.16   organization dedicated to providing 
85.17   immediate and long-term emotional support 
85.18   and practical help for the families and friends 
85.19   of individuals who have died by homicide, 
85.20   suicide, or accident. This is a onetime 
85.21   appropriation.
85.22   (h) Minneapolis Security Collaborative                       -0-           200,000
85.23   For a grant to the city of Minneapolis. This 
85.24   grant money is to be used by the Minneapolis 
85.25   Police Department to expand the worksite 
85.26   system throughout the city that supports the 
85.27   downtown security collaborative currently in 
85.28   use in the city's first precinct. The city shall 
85.29   give the highest priority to expanding the 
85.30   system to neighborhoods having the highest 
85.31   crime rate per capita. This is a onetime 
85.32   appropriation.
85.33   (i) Additional Minneapolis peace officers                    -0-         1,533,000
85.34   For a grant to the city of Minneapolis. 
85.35   This grant money is to be used by the 
85.36   Minneapolis Police Department to hire 
86.1    additional peace officers to be assigned to 
86.2    downtown Minneapolis.
86.3    The commissioner shall work with 
86.4    the Bureau of Criminal Apprehension, 
86.5    the State Patrol, the Hennepin County 
86.6    Sheriff's Office, the Minneapolis Police 
86.7    Department, and the Metro Transit Police, 
86.8    in a collaborative manner to increase and 
86.9    coordinate law enforcement efforts in 
86.10   downtown Minneapolis. This is a onetime 
86.11   appropriation.
86.12   (j) Financial Crimes Task Force                          177,000           177,000
86.13   This is a onetime appropriation.

86.14   Sec. 5. CORRECTIONS                                                               
86.15   Subdivision 1.Total appropriation                      3,213,000        10,546,000
86.16   These appropriations are added to the 
86.17   appropriations in Laws 2005, chapter 136, 
86.18   article 1, section 13. The amounts that may 
86.19   be spent from these appropriations for each 
86.20   program are specified in subdivisions 2 and 
86.21   3.
86.22   Subd.  2.Correctional institutions                     2,668,000         8,788,000
86.23   The base for this item is $6,875,000 in fiscal 
86.24   year 2008 and fiscal year 2009.
86.25   Subd.  3.Community services                                                       
86.26   (a) General operations                                   545,000         1,758,000
86.27   The base for this item is $1,250,000 in fiscal 
86.28   year 2008 and fiscal year 2009.
86.29   (b) Mentoring program                                        -0-           250,000
86.30   For a grant to a nonprofit organization that 
86.31   is located in the greater Twin Cities and 
86.32   provides one-to-one mentoring relationships 
86.33   to youth enrolled between the ages of seven 
86.34   to 13 whose parent or other significant 
86.35   family member is incarcerated in a county 
87.1    workhouse, county jail, state prison, or other 
87.2    type of correctional facility or is subject to 
87.3    correctional supervision. The grant must be 
87.4    used to provide children with adult mentors 
87.5    to strengthen developmental outcomes, 
87.6    including enhanced self-confidence and 
87.7    esteem; improved academic performance; 
87.8    and improved relationships with peers, 
87.9    family, and other adults designed to prevent 
87.10   the mentored youth from entering the 
87.11   juvenile justice system.
87.12   As a condition of receiving the grant, the 
87.13   grant recipient must:
87.14   (1) collaborate with other organizations 
87.15   that have a demonstrated history of 
87.16   providing services to youth and families in 
87.17   disadvantaged situations;
87.18   (2) implement procedures to ensure that the 
87.19   mentors pose no safety risk to the child and 
87.20   have the skills to participate in a mentoring 
87.21   relationship;
87.22   (3) provide enhanced training to mentors 
87.23   focusing on asset building and family 
87.24   dynamics when a parent is incarcerated; and
87.25   (4) provide individual family plan and 
87.26   aftercare.
87.27   The grant recipient must submit an evaluation 
87.28   plan to the commissioner delineating the 
87.29   program and student outcome goals and 
87.30   activities implemented to achieve the stated 
87.31   outcomes. The goals must be clearly stated 
87.32   and measurable. The grant recipient must 
87.33   collect, analyze, and report on participation 
87.34   and outcome data that enable the department 
87.35   to verify that the program goals were met. 
87.36   This is a onetime appropriation.
88.1    (c) Scott County                                             -0-           196,000
88.2    To increase the Community Corrections Act 
88.3    subsidy for the addition of Scott County. 
88.4    The money must be distributed according 
88.5    to the community corrections aid formula 
88.6    contained in Minnesota Statutes, section 
88.7    401.10.
88.8    (d) Discharge planning                                       -0-               -0-
88.9    Base funding for fiscal years 2008 and 2009 
88.10   for discharge planning for inmates with 
88.11   mental illness is $200,000 each year.

88.12       Sec. 6. Laws 2005, chapter 136, article 1, section 10, is amended to read:

88.13   Sec. 10.PEACE OFFICER  STANDARDS                                         4,014,000
88.14   AND TRAINING BOARD (POST)                              4,154,000         4,214,000
88.15   EXCESS AMOUNTS TRANSFERRED. 
88.16   This  appropriation is from the peace officer  
88.17   training account in the special revenue  fund.  
88.18   Any new receipts credited to  that account in 
88.19   the first year in  excess of $4,154,000 must be  
88.20   transferred and credited to the general  fund.  
88.21   Any new receipts credited to  that account 
88.22   in the second year in  excess of $4,014,000 
88.23   $4,214,000 must be  transferred and credited 
88.24   to the general  fund.  
88.25   TECHNOLOGY IMPROVEMENTS. 
88.26   $140,000 the  first year is for technology  
88.27   improvements.  
88.28   PEACE OFFICER TRAINING 
88.29   REIMBURSEMENT.  $2,909,000 each  the 
88.30   first year and $3,109,000 the second year is 
88.31   for  reimbursements to local governments for  
88.32   peace officer training costs.  

88.33       Sec. 7. Minnesota Statutes 2005 Supplement, section 299A.641, subdivision 3, is 
88.34   amended to read:
88.35       Subd. 3. Oversight council's duties. The oversight council shall develop an overall 
88.36   strategy to ameliorate the harm caused to the public by gang and drug crime within 
89.1    the state of Minnesota. This strategy may include the development of protocols and 
89.2    procedures to investigate gang and drug crime and a structure for best addressing these 
89.3    issues in a multijurisdictional manner. Additionally, the oversight council shall:
89.4    (1) identify and recommend a candidate or candidates for statewide coordinator to 
89.5    the commissioner of public safety;
89.6    (2) establish multijurisdictional task forces and strike forces to combat gang and 
89.7    drug crime, to include a metro gang strike force  and a gang strike force located in the St. 
89.8    Cloud metropolitan area;
89.9    (3) assist the Department of Public Safety in developing an objective grant review 
89.10   application process that is free from conflicts of interest;
89.11   (4) make funding recommendations to the commissioner of public safety on grants 
89.12   to support efforts to combat gang and drug crime;
89.13   (5) assist in developing a process to collect and share information to improve the 
89.14   investigation and prosecution of drug offenses;
89.15   (6) develop and approve an operational budget for the office of the statewide 
89.16   coordinator and the oversight council; and
89.17   (7) adopt criteria and identifying characteristics for use in determining whether 
89.18   individuals are or may be members of gangs involved in criminal activity.
89.19   EFFECTIVE DATE.This section is effective the day following final enactment.

89.20       Sec. 8. Minnesota Statutes 2005 Supplement, section 299A.78, is amended to read:
89.21   299A.78 STATEWIDE HUMAN TRAFFICKING ASSESSMENT.
89.22       Subdivision 1. Definitions. For purposes of sections 299A.78 to 299A.785 
89.23   299A.7955, the following definitions apply:
89.24   (a) "Commissioner" means the commissioner of the Department of Public Safety.
89.25   (b) "Nongovernmental organizations" means nonprofit, nongovernmental 
89.26   organizations that provide legal, social, or other community services.
89.27   (c) "Blackmail" has the meaning given in section 609.281, subdivision 2.
89.28   (d) "Debt bondage" has the meaning given in section 609.281, subdivision 3.
89.29   (e) "Forced labor or services" has the meaning given in section 609.281, subdivision 
89.30   4.
89.31   (f) "Labor trafficking" has the meaning given in section 609.281, subdivision 5.
89.32   (g) "Labor trafficking victim" has the meaning given in section 609.281, subdivision 
89.33   6.
89.34   (h) "Sex trafficking" has the meaning given in section 609.321, subdivision 7a.
89.35   (i) "Sex trafficking victim" has the meaning given in section 609.321, subdivision 7b.
90.1    (j) "Trafficking" includes "labor trafficking" and "sex trafficking."
90.2    (k) "Trafficking victim" includes "labor trafficking victim" and "sex trafficking 
90.3    victim."
90.4        Subd. 2. General duties. The commissioner of public safety, in cooperation with 
90.5    local authorities, shall:
90.6    (1) collect, share, and compile trafficking data among government agencies to assess 
90.7    the nature and extent of trafficking in Minnesota.; and
90.8    (2) analyze the collected data to develop a plan to address and prevent human 
90.9    trafficking.
90.10       Subd. 3. Outside services. As provided for in section 15.061, the commissioner of 
90.11   public safety may contract with professional or technical services in connection with the 
90.12   duties to be performed under section sections  299A.785, 299A.79, and 299A.795. The 
90.13   commissioner may also contract with other outside organizations to assist with the duties 
90.14   to be performed under section sections  299A.785, 299A.79, and 299A.795.
90.15   EFFECTIVE DATE. This section is effective July 1, 2006.

90.16       Sec. 9. [299A.79] TRAFFICKING STUDY; ANALYSIS AND USE OF DATA. 
90.17       Subdivision 1. Data analysis.   The commissioner shall analyze the data collected 
90.18   in section 299A.785 to develop a plan to address current trafficking and prevent future 
90.19   trafficking in this state. The commissioner may evaluate various approaches used by 
90.20   other state and local governments to address trafficking. The plan must include, but not 
90.21   be limited to:
90.22   (1) ways to train agencies, organizations, and officials involved in law enforcement, 
90.23   prosecution, and social services; 
90.24   (2) ways to increase public awareness of trafficking; and 
90.25   (3) procedures to enable the state government to work with nongovernmental 
90.26   organizations to prevent trafficking. 
90.27       Subd. 2.  Training plan.  The training plan required in subdivision 1 must include: 
90.28   (1) methods used in identifying trafficking victims, including preliminary interview 
90.29   techniques and appropriate interrogation methods; 
90.30   (2) methods for prosecuting traffickers; 
90.31   (3) methods for protecting the rights of trafficking victims, taking into account 
90.32   the need to consider human rights and special needs of women and children trafficking 
90.33   victims; and 
90.34   (4) methods for promoting the safety of trafficking victims.
91.1        Subd. 3.  Public awareness initiative.  The public awareness initiative required in 
91.2    subdivision 1 must address, at a minimum, the following subjects: 
91.3    (1) the risks of becoming a trafficking victim; 
91.4    (2) common recruitment techniques; use of debt bondage, blackmail, forced labor 
91.5    and services, prostitution, and other coercive tactics; and risks of assault, criminal sexual 
91.6    conduct, exposure to sexually transmitted diseases, and psychological harm;
91.7    (3) crime victims' rights; and 
91.8    (4) reporting recruitment activities involved in trafficking. 
91.9        Subd. 4.  Report to legislature. The commissioner shall report the plan to the chairs 
91.10   and ranking minority members of the senate and house committees and divisions having 
91.11   jurisdiction over criminal justice policy and funding by December 15, 2006.
91.12   EFFECTIVE DATE.This section is effective July 1, 2006. 

91.13       Sec. 10. [299A.795] TRAFFICKING VICTIM ASSISTANCE.
91.14   The commissioner may review the existing services and facilities to meet trafficking 
91.15   victims' needs and recommend a plan that would coordinate the services including, but 
91.16   not limited to:
91.17   (1) medical and mental health services; 
91.18   (2) housing; 
91.19   (3) education and job training; 
91.20   (4) English as a second language; 
91.21   (5) interpreting services; 
91.22   (6) legal and immigration services; and 
91.23   (7) victim compensation. 
91.24   EFFECTIVE DATE.This section is effective July 1, 2006. 

91.25       Sec. 11. [299A.7955] HUMAN TRAFFICKING TASK FORCE.
91.26       Subdivision 1. Creation and duties.  By September 1, 2006, the commissioner shall 
91.27   appoint a 22-member task force on human trafficking to advise the commissioner on the 
91.28   commissioner's duties in sections 299A.78 to 299A.795. The task force shall also serve as 
91.29   a liaison between the commissioner and agencies and nongovernmental organizations that 
91.30   provide services to trafficking victims. The members must receive expense reimbursement 
91.31   as specified in section 15.059.
91.32       Subd. 2.  Membership.  To the extent possible, the human trafficking task force 
91.33   consists of the following individuals, or their designees, who are knowledgeable in 
91.34   trafficking, crime victims' rights, or violence protection:
92.1    (1) a representative of the Minnesota Chiefs of Police Association; 	
92.2    (2) a representative of the Bureau of Criminal Apprehension; 
92.3    (3) a representative of the Minnesota Sheriffs' Association; 
92.4    (4) a peace officer who works and resides in the metropolitan area, composed of 
92.5    Hennepin, Ramsey, Anoka, Dakota, Scott, Washington, and Carver Counties; 
92.6    (5) a peace officer who works and resides in the nonmetropolitan area; 
92.7    (6) a county attorney who works in Hennepin County; 
92.8    (7) a county attorney who works in Ramsey County; 
92.9    (8) a representative of the attorney general's office; 
92.10   (9) a representative of the Department of Public Safety's office of justice program;
92.11   (10) a representative of the federal Homeland Security Department; 
92.12   (11) a representative of the Department of Health;
92.13   (12) the chair or executive director of the Council on Asian-Pacific Minnesotans; 	  
92.14   (13) the chair or executive director of the Minnesota Chicano-Latino Affairs Council;  
92.15   (14) a representative of the United States Attorney's Office; and
92.16   (15) eight representatives from nongovernmental organizations, which may include 
92.17   representatives of: 
92.18   (i) the Minnesota Coalition for Battered Women; 
92.19   (ii) the Minnesota Coalition Against Sexual Assault; 
92.20   (iii) a statewide or local organization that provides civil legal services to women 
92.21   and children; 
92.22   (iv) a statewide or local organization that provides mental health services to women 
92.23   and children; 
92.24    (v) a statewide or local human rights and social justice advocacy organization;
92.25    (vi) a statewide or local organization that provides services to victims of torture, 
92.26   trauma, or human trafficking;
92.27   (vii) a statewide or local organization that serves the needs of immigrants and 
92.28   refugee women and children from diverse ethnic communities; and 
92.29    (viii) a statewide or local organization that provides legal services to low-income 
92.30   immigrants.
92.31       Subd. 3.  Officers; meetings.  (a) The task force shall annually elect a chair and 
92.32   vice-chair from among its members, and may elect other officers as necessary.  The task 
92.33   force shall meet at least quarterly, or upon the call of its chair. The task force shall meet 
92.34   sufficiently enough to accomplish the tasks identified in this section. 
92.35   (b) The task force shall seek out and enlist the cooperation and assistance of 
92.36   nongovernmental organizations and academic researchers, especially those specializing in 
93.1    trafficking, representing diverse communities disproportionately affected by trafficking, or 
93.2    focusing on child services and runaway services.
93.3        Subd. 4.  Expiration.  Notwithstanding section 15.059, the task force expires June 
93.4    30, 2011, or once it has implemented and evaluated the programs and policies in sections 
93.5    299A.78 to 299A.795 to the satisfaction of the commissioner, whichever occurs first. 
93.6    EFFECTIVE DATE.This section is effective July 1, 2006. 

93.7        Sec. 12. [299A.7957] TOLL-FREE HOTLINE FOR TRAFFICKING VICTIMS.
93.8    (a) As used in this section, "trafficking victim" has the meaning given in section 
93.9    299A.78, subdivision 1.
93.10   (b) The commissioner of public safety shall contract with a nonprofit organization 
93.11   that provides legal services to domestic and international trafficking victims to maintain a 
93.12   toll-free telephone hotline for trafficking victims. 
93.13   The hotline must be in place by January 1, 2007, and must be operated 24 hours 
93.14   a day, 365 days a year. The hotline must offer language interpreters for languages 
93.15   commonly spoken in Minnesota, including, but not limited to, Spanish, Vietnamese, 
93.16   Hmong, and Somali. At a minimum, the hotline must screen trafficking victims, both 
93.17   domestic and international, and provide appropriate referrals to attorneys and victims' 
93.18   services organizations.
93.19   EFFECTIVE DATE.This section is effective July 1, 2006.

93.20                                          ARTICLE 14
93.21                                       STATE GOVERNMENT

93.22       Section 1. STATE GOVERNMENT APPROPRIATIONS.
93.23   The sums shown in the columns marked "APPROPRIATIONS" are added to the 
93.24   appropriations in Laws 2005, chapter 156, article 1, or other law to the agencies and 
93.25   for the purposes specified in this article.  The appropriations are from the general fund 
93.26   or another named fund and are available for the fiscal year indicated for each purpose. 
93.27   The figure "2007" used in this article means that the addition to the appropriation listed 
93.28   under it is available for the fiscal year ending June 30, 2007.
93.29                                     SUMMARY BY FUND                                   
93.30                                                       2007                        
93.31   General                                     $        2,422,000                  
93.32   Workers' Compensation                       $          320,000                  
93.33   TOTAL                                       $        2,742,000                  
94.1                                                            APPROPRIATION             
94.2                                                       Available for the Year        
94.3                                                        Ending June 30, 2007         

94.4    Sec. 2. LEGISLATURE                                                               
94.5    Subdivision 1.Total Appropriation                               $          37,000
94.6    The appropriations in this section are to the 
94.7    Legislative Coordinating Commission for 
94.8    the purposes in subdivisions 2 and 3.
94.9    Subd.  2.Legislative forums                                                 30,000
94.10   For the cost of annual forums to improve 
94.11   legislative effectiveness. This is a onetime 
94.12   appropriation.
94.13   Subd.  3.International Legislators' Forum                                    7,000
94.14   For the International Legislators' Forum, 
94.15   to allow Minnesota legislators to meet with 
94.16   counterparts from South Dakota, North 
94.17   Dakota, and Manitoba, Canada, to discuss 
94.18   issues of mutual concern. This is a onetime 
94.19   appropriation.

94.20   Sec. 3. FINANCE                                                            325,000
94.21   Northwest Airlines bankruptcy counsel                                             
94.22   For the state's share of the cost of bankruptcy 
94.23   counsel representing joint interests of the 
94.24   state and the city of Duluth in the Northwest 
94.25   Airlines bankruptcy. This is a onetime 
94.26   appropriation.

94.27   Sec. 4. OFFICE OF ENTERPRISE                                                     
94.28   TECHNOLOGY                                                              1,900,000
94.29   For comprehensive planning, 
94.30   implementation, and administration of 
94.31   enterprise information technology security 
94.32   according to Minnesota Statutes, sections 
94.33   16E.01 and 16E.03. $1,900,000 is added 
94.34   to the appropriation base for fiscal years 
95.1    2008 and thereafter to provide for continuing 
95.2    administration of enterprise security.

95.3    Sec. 5. OFFICE OF ADMINISTRATIVE                                                  
95.4    HEARINGS                                                                   320,000
95.5    From the workers' compensation fund 
95.6    for costs associated with the relocation 
95.7    of offices to St. Paul. The commissioner 
95.8    of administration shall take all steps as 
95.9    necessary to complete the renovation of 
95.10   the Stassen Building for these purposes by 
95.11   January 1, 2008. Minnesota Statutes, section 
95.12   16B.33, subdivision 3, does not apply if 
95.13   the estimated cost of construction exceeds 
95.14   $2,000,000. This is a onetime appropriation.
95.15   Beginning in fiscal year 2009 and for all 
95.16   fiscal years thereafter, the appropriation base 
95.17   for the workers' compensation fund for the 
95.18   Office of Administrative Hearings is reduced 
95.19   by $297,000 to reflect savings in rent costs 
95.20   due to the relocation of offices to St. Paul.

95.21   Sec. 6. EMPLOYEE RELATIONS                                                        
95.22   Center for Health Care Purchasing Improvement                              100,000
95.23   To establish and operate the Center for 
95.24   Health Care Purchasing Improvement.  

95.25   Sec. 7.  AMATEUR SPORTS COMMISSION                                          60,000
95.26   This is a onetime appropriation.

95.27       Sec. 8. [4.51] EXPENSES OF GOVERNOR-ELECT.
95.28   This section applies after a state general election in which a person who is not the 
95.29   current governor is elected to take office as the next governor. The commissioner of 
95.30   administration must request a transfer from the general fund contingent account of an 
95.31   amount equal to 1.5 percent of the amount appropriated for operation of the Office of the 
95.32   Governor and Lieutenant Governor for the current fiscal year. This request is subject to 
95.33   the review and advice of the Legislative Advisory Commission pursuant to section 3.30. 
95.34   If the transfer is approved, the commissioner of administration must make this amount 
96.1    available to the governor-elect before he or she takes office.   The commissioner must 
96.2    provide office space for the governor-elect and for any employees the governor-elect hires.

96.3        Sec. 9. [16E.21] INFORMATION AND TELECOMMUNICATIONS ACCOUNT.
96.4        Subdivision 1. Account established; appropriation. The information and 
96.5    telecommunications technology systems and services account is created in the special 
96.6    revenue fund. Receipts credited to the account are appropriated to the Office of Enterprise 
96.7    Technology for the purpose of defraying the costs of personnel and technology for 
96.8    activities that create government efficiencies in accordance with this chapter.
96.9        Subd. 2. Charges. Upon agreement of the participating agency, the Office 
96.10   of Enterprise Technology may collect a charge for purchases of information and 
96.11   telecommunications technology systems and services by state agencies and other 
96.12   governmental entities through state contracts for purposes described in subdivision 
96.13   1. Charges collected under this section must be credited to the information and 
96.14   telecommunications technology systems and services account.

96.15       Sec. 10. [43A.312] CENTER FOR HEALTH CARE PURCHASING 
96.16   IMPROVEMENT.
96.17       Subdivision 1. Establishment; administration. The commissioner shall establish 
96.18   and administer the Center for Health Care Purchasing Improvement as an administrative 
96.19   unit within the Department of Employee Relations. The Center for Health Care Purchasing 
96.20   Improvement shall support the state in its efforts to be a more prudent and efficient 
96.21   purchaser of quality health care services. The center shall aid the state in developing and 
96.22   using more common strategies and approaches for health care performance measurement 
96.23   and health care purchasing. The common strategies and approaches shall promote greater 
96.24   transparency of health care costs and quality, and greater accountability for health 
96.25   care results and improvement. The center shall also identify barriers to more efficient, 
96.26   effective, quality health care and options for overcoming the barriers.
96.27       Subd. 2. Staffing; duties; scope. (a) The commissioner may appoint a director, and 
96.28   up to three additional senior-level staff or codirectors, and other staff as needed who are 
96.29   under the direction of the commissioner. The staff of the center are in the unclassified 
96.30   service.
96.31   (b) With the authorization of the commissioner of employee relations, and in 
96.32   consultation or interagency agreement with the appropriate commissioners of state 
96.33   agencies, the director, or codirectors, may:
96.34   (1) initiate projects to develop plan designs for state health care purchasing;
96.35   (2) require reports or surveys to evaluate the performance of current health care 
96.36   purchasing strategies;
97.1    (3) calculate fiscal impacts, including net savings and return on investment, of health 
97.2    care purchasing strategies and initiatives;
97.3    (4) conduct policy audits of state programs to measure conformity to state statute or 
97.4    other purchasing initiatives or objectives;
97.5    (5) support the Administrative Uniformity Committee under section 62J.50 and 
97.6    other relevant groups or activities to advance agreement on health care administrative 
97.7    process streamlining;
97.8    (6) consult with the Health Economics Unit of the Department of Health regarding 
97.9    reports and assessments of the health care marketplace;
97.10   (7) consult with the departments of Health and Commerce regarding health care 
97.11   regulatory issues and legislative initiatives;
97.12   (8) work with appropriate Department of Human Services staff and the Centers for 
97.13   Medicare and Medicaid Services to address federal requirements and conformity issues 
97.14   for health care purchasing;
97.15   (9) assist the Minnesota Comprehensive Health Association in health care 
97.16   purchasing strategies;
97.17   (10) convene medical directors of agencies engaged in health care purchasing for 
97.18   advice, collaboration, and exploring possible synergies;
97.19   (11) contact and participate with other relevant health care task forces, study 
97.20   activities, and similar efforts with regard to health care performance measurement and 
97.21   performance-based purchasing; and
97.22   (12) assist in seeking external funding through appropriate grants or other funding 
97.23   opportunities and may administer grants and externally funded projects.
97.24       Subd. 3. Report. The commissioner must report annually to the legislature and the 
97.25   governor on the operations, activities, and impacts of the center. The report must be 
97.26   posted on the Department of Employee Relations Web site and must be available to the 
97.27   public. The report must include a description of the state's efforts to develop and use more 
97.28   common strategies for health care performance measurement and health care purchasing. 
97.29   The report must also include an assessment of the impacts of these efforts, especially in 
97.30   promoting greater transparency of health care costs and quality, and greater accountability 
97.31   for health care results and improvement.

97.32       Sec. 11. Laws 1998, chapter 404, section 15, subdivision  2, as amended by Laws 
97.33   2005, chapter 20, article 1, section 40,  as amended by Laws 2005, chapter 156, article 2, 
97.34   section 43, is amended to read:
97.35   Subd. 2.National Sports Center                                          4,800,000 
98.1    $1,700,000 is to purchase and develop  land 
98.2    adjacent to the National Sports  Center in 
98.3    Blaine for use as athletic  fields.  
98.4    $3,100,000 is to develop the National  
98.5    Children's Golf Course.  The primary  
98.6    purpose of the National Children's Golf  
98.7    Course is to serve youth of 18 years  and 
98.8    younger.  Market rates must be  charged for 
98.9    adult golf.  
98.10   Notwithstanding Minnesota Statutes, section 
98.11   16B.24, subdivision 5,  the Minnesota 
98.12   Amateur Sports Commission  may lease 
98.13   up to 20 percent of the area  of the land 
98.14   purchased with money from  the general 
98.15   fund appropriations in this  subdivision for 
98.16   a term of up to 30  years, plus two renewals 
98.17   for a term of up to 30 years each, to one or 
98.18   more governmental or  private entities for 
98.19   any use by the  lessee, whether public or 
98.20   private, so  long as the use provides some 
98.21   benefit  to amateur sports.  The commission 
98.22   must  submit proposed leases for the land  
98.23   described in this subdivision to the  chairs of 
98.24   the legislative committees  with jurisdiction 
98.25   over state government  policy and finance for 
98.26   review at least  30 days before the leases may 
98.27   be  entered into by the commission.  Up to  
98.28   $300,000 of lease payments received by  the 
98.29   commission  each fiscal year is  appropriated 
98.30   to the commission for the  purposes specified 
98.31   in Minnesota  Statutes, chapter 240A.  The 
98.32   land  purchased from the general fund  
98.33   appropriations may be used for any  amateur 
98.34   sport.  

98.35       Sec. 12. LABOR AGREEMENTS AND COMPENSATION PLANS.
99.1        Subdivision 1.  American Federation of State, County and Municipal Employees. 
 99.2    The labor agreement between the state of Minnesota and the American Federation of State, 
99.3    County and Municipal Employees, Council 5, approved by the Legislative Coordinating 
99.4    Commission Subcommittee on Employee Relations on September 14, 2005, is ratified. 
99.5        Subd. 2.  Minnesota Association of Professional Employees.  The labor agreement 
99.6    between the state of Minnesota and the Minnesota Association of Professional Employees, 
99.7    approved by the Legislative Coordinating Commission Subcommittee on Employee 
99.8    Relations on September 14, 2005, is ratified. 
99.9        Subd. 3.  Middle Management Association.  The labor agreement between the state 
99.10   of Minnesota and the Middle Management Association, approved by the Legislative 
99.11   Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
99.12   is ratified. 
99.13       Subd. 4.  Minnesota state college faculty.  The labor agreement between the 
99.14   state of Minnesota and the Minnesota state college faculty, approved by the Legislative 
99.15   Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
99.16   is ratified. 
99.17       Subd. 5. American Federation of State, County and Municipal Employees.
 99.18   The labor agreement between the state of Minnesota and the American Federation of 
99.19   State, County and Municipal Employees, Council 5, Unit 8, approved by the Legislative 
99.20   Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
99.21   is ratified.
99.22       Subd. 6. Managerial plan. The managerial plan, approved by the Legislative 
99.23   Coordinating Commission Subcommittee on Employee Relations on November 7, 2005, 
99.24   is ratified.
99.25       Subd. 7. Commissioner's plan. The commissioner of employee relations' plan 
99.26   for unrepresented employees, approved by the Legislative Coordinating Commission 
99.27   Subcommittee on Employee Relations on November 7, 2005, is ratified.
99.28       Subd. 8. Minnesota Government Engineers Council. The labor agreement 
99.29   between the state of Minnesota and the Minnesota Government Engineers Council, 
99.30   approved by the Legislative Coordinating Commission Subcommittee on Employee 
99.31   Relations on January 10, 2006, is ratified. 
99.32       Subd. 9. State Residential Schools Education Association. The labor agreement 
99.33   between the state of Minnesota and the State Residential Schools Education Association, 
99.34   approved by the Legislative Coordinating Commission Subcommittee on Employee 
99.35   Relations on January 10, 2006, is ratified. 
100.1       Subd. 10. Interfaculty Organization. The labor agreement between the state of 
100.2   Minnesota and the Interfaculty Organization, approved by the Legislative Coordinating 
100.3   Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. 
100.4       Subd. 11. Minnesota State University Association of Administrative and Service 
100.5   Faculty. The labor agreement between the state of Minnesota and the Minnesota State 
100.6   University Association of Administrative and Service Faculty, approved by the Legislative 
100.7   Coordinating Commission Subcommittee on Employee Relations on January 10, 2006, 
100.8   is ratified. 
100.9       Subd. 12. Office of Higher Education. The compensation plan for unrepresented 
100.10  employees of the Office of Higher Education, approved by the Legislative Coordinating 
100.11  Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. 
100.12      Subd. 13.  MnSCU Administrators.  The personnel plan for Minnesota State 
100.13  Colleges and Universities administrators, approved by the Legislative Coordinating 
100.14  Commission Subcommittee on Employee Relations on January 10, 2006, is ratified. 
100.15      Subd. 14.  State Board of Investment.  The salary administration plan for the 
100.16  Minnesota State Board of Investment, approved by the Legislative Coordinating 
100.17  Commission Subcommittee on Employee Relations on March 1, 2006, is ratified. 
100.18      Subd. 15.  Managerial plan amendment.  The amendment to the managerial plan, 
100.19  approved by the Legislative Coordinating Commission Subcommittee on Employee 
100.20  Relations on March 1, 2006, is ratified. 
100.21      Subd. 16.  Commissioner's plan amendment.  The amendment to the 
100.22  commissioner's plan, approved by the Legislative Coordinating Commission 
100.23  Subcommittee on Employee Relations on March 1, 2006, is ratified.
100.24  EFFECTIVE DATE.This section is effective the day following final enactment. 

100.25      Sec. 13. TRANSFER.
100.26  On June 30, 2006, the commissioner of finance shall transfer the balances in the 
100.27  tobacco use prevention and local public health endowment fund and the medical education 
100.28  endowment fund to the general fund. These balances result from investment income 
100.29  credited to the funds after the transfer of balances on July 1, 2003. The amount transferred 
100.30  under this section is estimated to be $2,933,000.

100.31      Sec. 14. REVISOR'S INSTRUCTION.
100.32  The revisor of statutes shall correct internal cross-references to sections that 
100.33  are affected by section 15. The revisor may make changes necessary to correct the 
100.34  punctuation, grammar, or structure of the remaining text and preserve its meaning.

100.35      Sec. 15.  REPEALER.
101.1   Minnesota Statutes 2004, sections 62J.694; and 144.395, are repealed.

101.2                                          ARTICLE 15
101.3                                       VETERANS AFFAIRS

101.4   Section 1. VETERANS AFFAIRS APPROPRIATIONS.                                      
101.5   The sums shown are appropriated from the general fund, or another named fund, 
101.6   to be available for the fiscal years indicated for each purpose. The figures "2006" and 
101.7   "2007" used in this article mean that the appropriation or appropriations listed under them 
101.8   are available for the fiscal year ending June 30, 2006, or June 30, 2007, respectively. 
101.9   Appropriations in this article for the fiscal year ending June 30, 2006, are effective the 
101.10  day following final enactment.
101.11                                                         APPROPRIATIONS            
101.12                                                     Available for the Year        
101.13                                                         Ending June 30            
101.14                                                      2006              2007      

101.15  Sec. 2. VETERANS AFFAIRS                                                          
101.16  Subdivision 1.Total Appropriation             $         250,000$       3,230,000
101.17  The appropriations in this section are for the 
101.18  purposes in subdivisions 2 to 7.
101.19  Subd. 2.State soldiers' assistance fund                      -0-         2,000,000
101.20  To be deposited in the state soldiers' 
101.21  assistance fund established in Minnesota 
101.22  Statutes, section 197.03. The appropriations 
101.23  in this subdivision are in addition to other 
101.24  appropriations made to the commissioner of 
101.25  veterans affairs.
101.26  Subd.  3.Web site development                                -0-           100,000
101.27  To create a centralized Web site to contain 
101.28  information on all state, federal, local, and 
101.29  private agencies and organizations that 
101.30  provide goods or services to veterans or their 
101.31  families.
101.32  Subd.  4.Grants to counties                                  -0-           200,000
101.33  For grants to counties under the terms of this 
101.34  subdivision. The commissioner shall issue a 
101.35  request for proposals for grants to enhance 
102.1   the benefits, programs, and services provided 
102.2   to veterans. The request must specify that 
102.3   priority will be given to proposals that meet 
102.4   the programmatic goals established by the 
102.5   commissioner, including proposals that:
102.6   (1) will provide the most effective outreach 
102.7   to veterans;
102.8   (2) reintegrate combat veterans into society;
102.9   (3) collaborate with other social service 
102.10  agencies, educational institutions, and other 
102.11  relevant community resources;
102.12  (4) reduce homelessness among veterans; 
102.13  and
102.14  (5) provide measurable outcomes.
102.15  The commissioner may provide incentives to 
102.16  encourage regional collaboration for service 
102.17  delivery.
102.18  The grants may be for a term of up to two 
102.19  years. The commissioner shall ensure that 
102.20  grants are made throughout all regions of 
102.21  the state and shall develop a description of 
102.22  best practices for the use of these grants. A 
102.23  county may not reduce its veterans service 
102.24  office budget by any amount received as a 
102.25  grant under this subdivision. Grants made 
102.26  under this subdivision are in addition to 
102.27  and not subject to the requirements for 
102.28  grants made under Minnesota Statutes, 
102.29  section 197.608. The Vinland Center and the 
102.30  Minnesota Assistance Council for Veterans 
102.31  may apply for grants under this subdivision 
102.32  in fiscal year 2007. This appropriation must 
102.33  be included in the appropriation base through 
102.34  fiscal year 2009.
102.35  Subd.  5.Higher education veterans                                                
102.36  assistance offices                                           -0-           600,000
103.1   For the higher education veterans assistance 
103.2   program in section 3. This appropriation 
103.3   must be included in the appropriation base 
103.4   through fiscal year 2011.
103.5   Subd.  6.Outreach and assistance                         250,000           250,000
103.6   For an outreach and assistance initiative for 
103.7   underserved veterans.
103.8   Subd.  7.Veterans organizations                              -0-            80,000
103.9   For veterans' services provided by Veterans 
103.10  of Foreign Wars, the Military Order of the 
103.11  Purple Heart, Disabled American Veterans, 
103.12  and the Vietnam Veterans of America. This 
103.13  is a onetime appropriation.

103.14      Sec. 3. [197.585] HIGHER EDUCATION VETERANS ASSISTANCE 
103.15  PROGRAM.
103.16      Subdivision 1. Assistance provided. The commissioner of veterans affairs shall 
103.17  provide central liaison staff and campus veterans assistance officers to serve the needs 
103.18  of students who are veterans at higher education institutions in Minnesota. Methods of 
103.19  assistance may include, but are not limited to, work-study positions for veterans, and 
103.20  providing information and assistance regarding the availability of state, federal, local, 
103.21  and private resources.
103.22      Subd. 2. Steering committee. The commissioner of veterans affairs shall chair a 
103.23  higher education veterans assistance program steering committee composed of:
103.24  (1) the adjutant general or the adjutant general's designee;
103.25  (2) a representative of Minnesota State Colleges and Universities, designated by 
103.26  the chancellor;
103.27  (3) a representative of the University of Minnesota, appointed by the president of 
103.28  the university;
103.29  (4) a representative of private colleges and universities in Minnesota, appointed by 
103.30  the governor;
103.31  (5) a representative of the Office of Higher Education, appointed by the executive 
103.32  director; 
103.33  (6) a representative of county veterans service offices, appointed by the 
103.34  commissioner of veterans affairs; and
103.35  (7) a representative of the Department of Employment and Economic Development, 
103.36  appointed by the commissioner of that department.
104.1   The steering committee shall advise the commissioner of veterans affairs regarding the 
104.2   allocation of appropriations for the purposes of this section and shall develop a long-range 
104.3   plan to serve the needs of students at higher education institutions in Minnesota who are 
104.4   veterans.
104.5       Subd. 3. Office space provided. Each campus of the University of Minnesota and 
104.6   each institution within the Minnesota State Colleges and Universities system shall provide 
104.7   adequate space for a veterans assistance office to be administered by the commissioner 
104.8   of veterans affairs, and each private college and university in Minnesota is encouraged 
104.9   to provide adequate space for a veterans assistance office to be administered by the 
104.10  commissioner of veterans affairs. The veterans assistance office must provide information 
104.11  and assistance to veterans who are students or family members of students at the school 
104.12  regarding the availability of state, federal, local, and private resources.
104.13      Subd. 4. Report. Beginning January 15, 2007, and each year thereafter, the 
104.14  steering committee established in subdivision 2 shall report to the chairs of the legislative 
104.15  committees with jurisdiction over veterans affairs policy and finance and higher education 
104.16  policy and finance regarding the implementation and effectiveness of the program 
104.17  established in this section.
104.18      Subd. 5. Expiration. This section expires at the end of the first fiscal year in which 
104.19  the number of veterans enrolled in Minnesota public institutions of higher education is 
104.20  fewer than 4,000, but no later than June 30, 2011.

104.21                                         ARTICLE 16
104.22                     HEALTH AND HUMAN SERVICES MISCELLANEOUS PROVISIONS

104.23      Section 1. Minnesota Statutes 2004, section 43A.17, subdivision 4, is amended to read:
104.24      Subd. 4. Exceptions. (a) The commissioner may without regard to subdivision 1 
104.25  establish special salary rates and plans of compensation designed to attract and retain 
104.26  exceptionally qualified doctors of medicine and doctors of dental surgery. These rates 
104.27  and plans shall be included in the commissioner's plan. In establishing salary rates and 
104.28  eligibility for nomination for payment at special rates, the commissioner shall consider the 
104.29  standards of eligibility established by national medical specialty boards where appropriate. 
104.30  The incumbents assigned to these special ranges shall be excluded from the collective 
104.31  bargaining process.
104.32  (b) The commissioner may without regard to subdivision 1, but subject to collective 
104.33  bargaining agreements or compensation plans, establish special salary rates designed to 
104.34  attract and retain exceptionally qualified employees in the following positions:
104.35  (1) information systems staff;
105.1   (2) actuaries in the Departments of Health, Human Services, and Commerce; and
105.2   (3) epidemiologists in the Department of Health.

105.3       Sec. 2. Minnesota Statutes 2005 Supplement, section 144.1476, subdivision 4, is 
105.4   amended to read:
105.5       Subd. 4. Allocation of grants. (a) The commissioner shall establish a deadline for 
105.6   receiving applications and must make a final decision on the funding of each application 
105.7   within 60 days of the deadline. An applicant must apply no later than March 1 of each 
105.8   fiscal year for grants awarded for that fiscal year.
105.9   (b) Any grant awarded must not exceed $50,000 a year and may not exceed a 
105.10  one-year term. Notwithstanding any law to the contrary, funds awarded to grantees in a 
105.11  grant agreement do not lapse until expended by the grantee.
105.12  (c) Applicants may apply to the program each year they are eligible.
105.13  (d) Project grants may not be used to retire debt incurred with respect to any capital 
105.14  expenditure made prior to the date on which the project is initiated.

105.15      Sec. 3. [144.366] INTERCONNECTED ELECTRONIC HEALTH RECORD 
105.16  GRANTS.
105.17      Subdivision 1. Definitions. The following definitions are used for the purposes 
105.18  of this section.
105.19  (a) "Eligible community e-health collaborative" means an existing or newly 
105.20  established collaborative to support the adoption and use of interoperable electronic 
105.21  health records. A collaborative must consist of at least three or more eligible health 
105.22  care entities in at least two of the categories listed in paragraph (b) and have a focus on 
105.23  interconnecting the members of the collaborative for secure and interoperable exchange of 
105.24  health care information.
105.25  (b) "Eligible health care entity" means one of the following:
105.26  (1) community clinics, as defined under section 145.9268; 
105.27  (2) hospitals eligible for rural hospital capital improvement grants, as defined 
105.28  in section 144.148;
105.29  (3) physician clinics located in a community with a population of less than 50,000 
105.30  according to United States Census Bureau statistics and outside the seven-county 
105.31  metropolitan area; 
105.32  (4) nursing facilities licensed under sections 144A.01 to 144A.27; 
105.33  (5) community health boards as established under chapter 145A; 
105.34  (6) nonprofit entities with a purpose to provide health information exchange 
105.35  coordination governed by a representative, multi-stakeholder board of directors; and
106.1   (7) other providers of health or health care services approved by the commissioner 
106.2   for which interoperable electronic health record capability would improve quality of 
106.3   care, patient safety, or community health.
106.4       Subd. 2. Grants authorized. The commissioner of health shall award grants to 
106.5   eligible community e-health collaborative projects to improve the implementation and 
106.6   use of interoperable electronic health records including but not limited to the following 
106.7   projects:
106.8   (1) collaborative efforts to host and support fully functional interoperable electronic 
106.9   health records in multiple care settings; 
106.10  (2) electronic medication history and electronic patient registration information; 
106.11  (3) electronic personal health records for persons with chronic diseases and for 
106.12  prevention services; 
106.13  (4) rural and underserved community models for electronic prescribing; and
106.14  (5) enabling local public health systems to rapidly and electronically exchange 
106.15  information needed to participate in community e-health collaboratives or for public 
106.16  health emergency preparedness and response.
106.17  Grant funds may not be used for construction of health care or other buildings or 
106.18  facilities.
106.19      Subd. 3. Allocation of grants. (a) To receive a grant under this section, an eligible 
106.20  community e-health collaborative must submit an application to the commissioner of 
106.21  health by the deadline established by the commissioner. A grant may be awarded upon the 
106.22  signing of a grant contract. In awarding grants, the commissioner shall give preference to 
106.23  projects benefiting providers located in rural and underserved areas of Minnesota which 
106.24  the commissioner has determined have an unmet need for the development and funding 
106.25  of electronic health records. Applicants may apply for and the commissioner may award 
106.26  grants for one-year, two-year, or three-year periods.
106.27  (b) An application must be on a form and contain information as specified by the 
106.28  commissioner but at a minimum must contain:
106.29  (1) a description of the purpose or project for which grant funds will be used; 
106.30  (2) a description of the problem or problems the grant funds will be used to address, 
106.31  including an assessment likelihood of the project occurring absent grant funding; 
106.32  (3) a description of achievable objectives, a workplan, budget, budget narrative, a 
106.33  project communications plan, a timeline for implementation and completion of processes 
106.34  or projects enabled by the grant, and an assessment of privacy and security issues and a 
106.35  proposed approach to address these issues;
107.1   (4) a description of the health care entities and other groups participating in the 
107.2   project, including identification of the lead entity responsible for applying for and 
107.3   receiving grant funds; 
107.4   (5) a plan for how patients and consumers will be involved in development of 
107.5   policies and procedures related to the access to and interchange of information; 
107.6   (6) evidence of consensus and commitment among the health care entities and others 
107.7   who developed the proposal and are responsible for its implementation; and
107.8   (7) a plan for documenting and evaluating results of the grant.
107.9   (c) The commissioner shall review each application to determine whether the 
107.10  application is complete and whether the applicant and the project are eligible for a 
107.11  grant. In evaluating applications, the commissioner shall take into consideration factors, 
107.12  including but not limited to, the following:
107.13  (1) the degree to which the proposal interconnects the various providers of care 
107.14  in the applicant's geographic community; 
107.15  (2) the degree to which the project provides for the interoperability of electronic 
107.16  health records or related health information technology between the members of the 
107.17  collaborative, and presence and scope of a description of how the project intends to 
107.18  interconnect with other providers not part of the project into the future;
107.19  (3) the degree to which the project addresses current unmet needs pertaining 
107.20  to interoperable electronic health records in a geographic area of Minnesota and the 
107.21  likelihood that the needs would not be met absent grant funds; 
107.22  (4) the applicant's thoroughness and clarity in describing the project, how the project 
107.23  will improve patient safety, quality of care, and consumer empowerment, and the role of 
107.24  the various collaborative members;
107.25  (5) the recommendations of the Health Information and Technology Infrastructure 
107.26  Advisory Committee; and
107.27  (6) other factors that the commissioner deems relevant.
107.28  (d) Grant funds shall be awarded on a three-to-one match basis. Applicants shall be 
107.29  required to provide one dollar in the form of cash or in-kind staff or services for each three 
107.30  dollars provided under the grant program.
107.31  (e) Grants shall not exceed $900,000 per grant. The commissioner has discretion 
107.32  over the size and number of grants awarded.
107.33      Subd. 4. Evaluation and report. The commissioner of health shall evaluate the 
107.34  overall effectiveness of the grant program. The commissioner shall collect progress 
107.35  and expenditure reports to evaluate the grant program from the eligible community 
107.36  collaboratives receiving grants. 

108.1       Sec. 4. [245.4835] COUNTY MAINTENANCE OF EFFORT.
108.2       Subdivision 1. Required expenditures. Counties must maintain a level of 
108.3   expenditures for mental health services under sections 245.461 to 245.484 and 245.487 to 
108.4   245.4887 so that each year's county expenditures are at least equal to that county's average 
108.5   expenditures for those services for calendar years 2004 and 2005. The commissioner will 
108.6   adjust each county's base level for minimum expenditures in each year by the amount of 
108.7   any increase or decrease in that county's state grants or other noncounty revenues for 
108.8   mental health services under sections 245.461 to 245.484 and 245.487 to 245.4887.
108.9       Subd. 2. Failure to maintain expenditures. If a county does not comply with 
108.10  subdivision 1, the commissioner shall require the county to develop a corrective action plan 
108.11  according to a format and timeline established by the commissioner. If the commissioner 
108.12  determines that a county has not developed an acceptable corrective action plan within 
108.13  the required timeline, or that the county is not in compliance with an approved corrective 
108.14  action plan, the protections provided to that county under section 245.485 do not apply.

108.15      Sec. 5. Minnesota Statutes 2004, section 256.01, is amended by adding a subdivision 
108.16  to read:
108.17      Subd. 2b. Performance payments. The commissioner shall develop and implement 
108.18  a pay-for-performance system to provide performance payments to medical groups that 
108.19  demonstrate optimum care in serving individuals with chronic diseases who are enrolled 
108.20  in health care programs administered by the commissioner under chapters 256B, 256D, 
108.21  and 256L.

108.22      Sec. 6. Minnesota Statutes 2004, section 256B.0625, subdivision 20, is amended to 
108.23  read:
108.24      Subd. 20. Mental health case management. (a) To the extent authorized by rule 
108.25  of the state agency, medical assistance covers case management services to persons with 
108.26  serious and persistent mental illness and children with severe emotional disturbance. 
108.27  Services provided under this section must meet the relevant standards in sections  245.461 
108.28  to  245.4887, the Comprehensive Adult and Children's Mental Health Acts, Minnesota 
108.29  Rules, parts 9520.0900 to 9520.0926, and 9505.0322, excluding subpart 10. 
108.30  (b) Entities meeting program standards set out in rules governing family community 
108.31  support services as defined in section  245.4871, subdivision 17, are eligible for medical 
108.32  assistance reimbursement for case management services for children with severe 
108.33  emotional disturbance when these services meet the program standards in Minnesota 
108.34  Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10. 
108.35  (c) Medical assistance and MinnesotaCare payment for mental health case 
108.36  management shall be made on a monthly basis. In order to receive payment for an eligible 
109.1   child, the provider must document at least a face-to-face contact with the child, the child's 
109.2   parents, or the child's legal representative. To receive payment for an eligible adult, the 
109.3   provider must document:
109.4   (1) at least a face-to-face contact with the adult or the adult's legal representative; or
109.5   (2) at least a telephone contact with the adult or the adult's legal representative and 
109.6   document a face-to-face contact with the adult or the adult's legal representative within 
109.7   the preceding two months.
109.8   (d) Payment for mental health case management provided by county or state staff 
109.9   shall be based on the monthly rate methodology under section  256B.094, subdivision 6, 
109.10  paragraph (b), with separate rates calculated for child welfare and mental health, and 
109.11  within mental health, separate rates for children and adults. 
109.12  (e) Payment for mental health case management provided by Indian health services 
109.13  or by agencies operated by Indian tribes may be made according to this section or other 
109.14  relevant federally approved rate setting methodology.
109.15  (f) Payment for mental health case management provided by vendors who contract 
109.16  with a county or Indian tribe shall be based on a monthly rate negotiated by the host county 
109.17  or tribe. The negotiated rate must not exceed the rate charged by the vendor for the same 
109.18  service to other payers. If the service is provided by a team of contracted vendors, the 
109.19  county or tribe may negotiate a team rate with a vendor who is a member of the team. The 
109.20  team shall determine how to distribute the rate among its members. No reimbursement 
109.21  received by contracted vendors shall be returned to the county or tribe, except to reimburse 
109.22  the county or tribe for advance funding provided by the county or tribe to the vendor.
109.23  (g) If the service is provided by a team which includes contracted vendors, tribal 
109.24  staff, and county or state staff, the costs for county or state staff participation in the team 
109.25  shall be included in the rate for county-provided services. In this case, the contracted 
109.26  vendor, the tribal agency, and the county may each receive separate payment for services 
109.27  provided by each entity in the same month. In order to prevent duplication of services, 
109.28  each entity must document, in the recipient's file, the need for team case management and 
109.29  a description of the roles of the team members.
109.30  (h) The commissioner shall calculate the nonfederal share of actual medical 
109.31  assistance and general assistance medical care payments for each county, based on the 
109.32  higher of calendar year 1995 or 1996, by service date, project that amount forward to 1999, 
109.33  and transfer one-half of the result from medical assistance and general assistance medical 
109.34  care to each county's mental health grants under section  256E.12 for calendar year 1999. 
109.35  The annualized minimum amount added to each county's mental health grant shall be 
109.36  $3,000 per year for children and $5,000 per year for adults. The commissioner may reduce 
110.1   the statewide growth factor in order to fund these minimums. The annualized total amount 
110.2   transferred shall become part of the base for future mental health grants for each county. 
110.3   (i) Any net increase in revenue to the county or tribe as a result of the change in this 
110.4   section must be used to provide expanded mental health services as defined in sections  
110.5   245.461 to  245.4887, the Comprehensive Adult and Children's Mental Health Acts, 
110.6   excluding inpatient and residential treatment. For adults, increased revenue may also be 
110.7   used for services and consumer supports which are part of adult mental health projects 
110.8   approved under Laws 1997, chapter 203, article 7, section 25. For children, increased 
110.9   revenue may also be used for respite care and nonresidential individualized rehabilitation 
110.10  services as defined in section  245.492, subdivisions 17 and 23. "Increased revenue" has 
110.11  the meaning given in Minnesota Rules, part 9520.0903, subpart 3. 
110.12  (j) (i) Notwithstanding section  256B.19, subdivision 1, the nonfederal share of 
110.13  costs for mental health case management shall be provided by the recipient's county of 
110.14  responsibility, as defined in sections  256G.01 to  256G.12, from sources other than federal 
110.15  funds or funds used to match other federal funds. If the service is provided by a tribal 
110.16  agency, the nonfederal share, if any, shall be provided by the recipient's tribe. 
110.17  (k) (j) The commissioner may suspend, reduce, or terminate the reimbursement to a 
110.18  provider that does not meet the reporting or other requirements of this section. The county 
110.19  of responsibility, as defined in sections  256G.01 to  256G.12, or, if applicable, the tribal 
110.20  agency, is responsible for any federal disallowances. The county or tribe may share this 
110.21  responsibility with its contracted vendors. 
110.22  (l) (k) The commissioner shall set aside a portion of the federal funds earned under 
110.23  this section to repay the special revenue maximization account under section  256.01, 
110.24  subdivision 2, clause (15). The repayment is limited to: 
110.25  (1) the costs of developing and implementing this section; and
110.26  (2) programming the information systems.
110.27  (m) (l) Payments to counties and tribal agencies for case management expenditures 
110.28  under this section shall only be made from federal earnings from services provided 
110.29  under this section. Payments to county-contracted vendors shall include both the federal 
110.30  earnings and the county share.
110.31  (n) (m) Notwithstanding section  256B.041, county payments for the cost of mental 
110.32  health case management services provided by county or state staff shall not be made 
110.33  to the commissioner of finance. For the purposes of mental health case management 
110.34  services provided by county or state staff under this section, the centralized disbursement 
110.35  of payments to counties under section  256B.041 consists only of federal earnings from 
110.36  services provided under this section. 
111.1   (o) (n) Case management services under this subdivision do not include therapy, 
111.2   treatment, legal, or outreach services.
111.3   (p) (o) If the recipient is a resident of a nursing facility, intermediate care facility, 
111.4   or hospital, and the recipient's institutional care is paid by medical assistance, payment 
111.5   for case management services under this subdivision is limited to the last 180 days of 
111.6   the recipient's residency in that facility and may not exceed more than six months in a 
111.7   calendar year.
111.8   (q) (p) Payment for case management services under this subdivision shall not 
111.9   duplicate payments made under other program authorities for the same purpose.
111.10  (r) (q) By July 1, 2000, the commissioner shall evaluate the effectiveness of the 
111.11  changes required by this section, including changes in number of persons receiving 
111.12  mental health case management, changes in hours of service per person, and changes in 
111.13  caseload size.
111.14  (s) (r) For each calendar year beginning with the calendar year 2001, the annualized 
111.15  amount of state funds for each county determined under paragraph (h) shall be adjusted by 
111.16  the county's percentage change in the average number of clients per month who received 
111.17  case management under this section during the fiscal year that ended six months prior to 
111.18  the calendar year in question, in comparison to the prior fiscal year.
111.19  (t) (s) For counties receiving the minimum allocation of $3,000 or $5,000 described 
111.20  in paragraph (h), the adjustment in paragraph (s) shall be determined so that the county 
111.21  receives the higher of the following amounts:
111.22  (1) a continuation of the minimum allocation in paragraph (h); or
111.23  (2) an amount based on that county's average number of clients per month who 
111.24  received case management under this section during the fiscal year that ended six months 
111.25  prior to the calendar year in question, times the average statewide grant per person per 
111.26  month for counties not receiving the minimum allocation.
111.27  (u) (t) The adjustments in paragraphs (s) and (t) shall be calculated separately for 
111.28  children and adults.

111.29      Sec. 7. Minnesota Statutes 2004, section 256B.0945, subdivision 1, is amended to read:
111.30      Subdivision 1. Provider qualifications. Counties must arrange to provide 
111.31  residential services for children with severe emotional disturbance according to sections  
111.32  245.4882,  245.4885, and this section. Services must be provided by a facility that is 
111.33  licensed according to section  245.4882 and administrative rules promulgated thereunder, 
111.34  and under contract with the county. Facilities providing services under subdivision 2, 
111.35  paragraph (a), must be accredited as a psychiatric facility by the Joint Commission 
111.36  on Accreditation of Healthcare Organizations, the Commission on Accreditation of 
112.1   Rehabilitation Facilities, or the Council on Accreditation. Accreditation is not required for 
112.2   facilities providing services under subdivision 2, paragraph (b). 

112.3       Sec. 8. Minnesota Statutes 2005 Supplement, section 256B.0946, subdivision 1, 
112.4   is amended to read:
112.5       Subdivision 1. Covered service. (a) Effective July 1, 2006, and subject to federal 
112.6   approval, medical assistance covers medically necessary services described under 
112.7   paragraph (b) that are provided by a provider entity eligible under subdivision 3 to a client 
112.8   eligible under subdivision 2 who is placed in a treatment foster home licensed under 
112.9   Minnesota Rules, parts 2960.3000 to 2960.3340.
112.10  (b) Services to children with severe emotional disturbance residing in treatment 
112.11  foster care settings must meet the relevant standards for mental health services under 
112.12  sections 245.487 to 245.4887. In addition, specific service components reimbursed by 
112.13  medical assistance must meet the following standards:
112.14  (1) case management service component must meet the standards in Minnesota 
112.15  Rules, parts 9520.0900 to 9520.0926 and 9505.0322, excluding subparts 6 and 10;
112.16  (2) psychotherapy, crisis assistance, and skills training components must meet the 
112.17  standards for children's therapeutic services and supports in section 256B.0943; and
112.18  (3) family psychoeducation services under supervision of a mental health 
112.19  professional.

112.20      Sec. 9. Minnesota Statutes 2004, section 256B.76, is amended to read:
112.21  256B.76 PHYSICIAN AND DENTAL REIMBURSEMENT.
112.22  (a) Effective for services rendered on or after October 1, 1992, the commissioner 
112.23  shall make payments for physician services as follows:
112.24  (1) payment for level one Centers for Medicare and Medicaid Services' common 
112.25  procedural coding system codes titled "office and other outpatient services," "preventive 
112.26  medicine new and established patient," "delivery, antepartum, and postpartum care," 
112.27  "critical care," cesarean delivery and pharmacologic management provided to psychiatric 
112.28  patients, and level three codes for enhanced services for prenatal high risk, shall be paid 
112.29  at the lower of (i) submitted charges, or (ii) 25 percent above the rate in effect on June 
112.30  30, 1992. If the rate on any procedure code within these categories is different than the 
112.31  rate that would have been paid under the methodology in section  256B.74, subdivision 2, 
112.32  then the larger rate shall be paid; 
112.33  (2) payments for all other services shall be paid at the lower of (i) submitted charges, 
112.34  or (ii) 15.4 percent above the rate in effect on June 30, 1992;
112.35  (3) all physician rates shall be converted from the 50th percentile of 1982 to the 50th 
112.36  percentile of 1989, less the percent in aggregate necessary to equal the above increases 
113.1   except that payment rates for home health agency services shall be the rates in effect 
113.2   on September 30, 1992;
113.3   (4) effective for services rendered on or after January 1, 2000, payment rates for 
113.4   physician and professional services shall be increased by three percent over the rates in 
113.5   effect on December 31, 1999, except for home health agency and family planning agency 
113.6   services; and
113.7   (5) the increases in clause (4) shall be implemented January 1, 2000, for managed 
113.8   care.
113.9   (b) Effective for services rendered on or after October 1, 1992, the commissioner 
113.10  shall make payments for dental services as follows:
113.11  (1) dental services shall be paid at the lower of (i) submitted charges, or (ii) 25 
113.12  percent above the rate in effect on June 30, 1992;
113.13  (2) dental rates shall be converted from the 50th percentile of 1982 to the 50th 
113.14  percentile of 1989, less the percent in aggregate necessary to equal the above increases;
113.15  (3) effective for services rendered on or after January 1, 2000, payment rates for 
113.16  dental services shall be increased by three percent over the rates in effect on December 
113.17  31, 1999;
113.18  (4) the commissioner shall award grants to community clinics or other nonprofit 
113.19  community organizations, political subdivisions, professional associations, or other 
113.20  organizations that demonstrate the ability to provide dental services effectively to public 
113.21  program recipients. Grants may be used to fund the costs related to coordinating access for 
113.22  recipients, developing and implementing patient care criteria, upgrading or establishing 
113.23  new facilities, acquiring furnishings or equipment, recruiting new providers, or other 
113.24  development costs that will improve access to dental care in a region. In awarding grants, 
113.25  the commissioner shall give priority to applicants that plan to serve areas of the state in 
113.26  which the number of dental providers is not currently sufficient to meet the needs of 
113.27  recipients of public programs or uninsured individuals. The commissioner shall consider 
113.28  the following in awarding the grants:
113.29  (i) potential to successfully increase access to an underserved population;
113.30  (ii) the ability to raise matching funds;
113.31  (iii) the long-term viability of the project to improve access beyond the period 
113.32  of initial funding;
113.33  (iv) the efficiency in the use of the funding; and
113.34  (v) the experience of the proposers in providing services to the target population.
114.1   The commissioner shall monitor the grants and may terminate a grant if the grantee 
114.2   does not increase dental access for public program recipients. The commissioner shall 
114.3   consider grants for the following:
114.4   (i) implementation of new programs or continued expansion of current access 
114.5   programs that have demonstrated success in providing dental services in underserved 
114.6   areas;
114.7   (ii) a pilot program for utilizing hygienists outside of a traditional dental office to 
114.8   provide dental hygiene services; and
114.9   (iii) a program that organizes a network of volunteer dentists, establishes a system to 
114.10  refer eligible individuals to volunteer dentists, and through that network provides donated 
114.11  dental care services to public program recipients or uninsured individuals;
114.12  (5) beginning October 1, 1999, the payment for tooth sealants and fluoride treatments 
114.13  shall be the lower of (i) submitted charge, or (ii) 80 percent of median 1997 charges;
114.14  (6) the increases listed in clauses (3) and (5) shall be implemented January 1, 2000, 
114.15  for managed care; and
114.16  (7) effective for services provided on or after January 1, 2002, payment for 
114.17  diagnostic examinations and dental x-rays provided to children under age 21 shall be the 
114.18  lower of (i) the submitted charge, or (ii) 85 percent of median 1999 charges.
114.19  (c) Effective for dental services rendered on or after January 1, 2002, the 
114.20  commissioner may, within the limits of available appropriation, increase reimbursements 
114.21  to dentists and dental clinics deemed by the commissioner to be critical access dental 
114.22  providers. Reimbursement to a critical access dental provider may be increased by not 
114.23  more than 50 percent above the reimbursement rate that would otherwise be paid to 
114.24  the provider. Payments to health plan companies shall be adjusted to reflect increased 
114.25  reimbursements to critical access dental providers as approved by the commissioner. 
114.26  In determining which dentists and dental clinics shall be deemed critical access dental 
114.27  providers, the commissioner shall review:
114.28  (1) the utilization rate in the service area in which the dentist or dental clinic operates 
114.29  for dental services to patients covered by medical assistance, general assistance medical 
114.30  care, or MinnesotaCare as their primary source of coverage;
114.31  (2) the level of services provided by the dentist or dental clinic to patients covered 
114.32  by medical assistance, general assistance medical care, or MinnesotaCare as their primary 
114.33  source of coverage; and
114.34  (3) whether the level of services provided by the dentist or dental clinic is critical to 
114.35  maintaining adequate levels of patient access within the service area.
115.1   In the absence of a critical access dental provider in a service area, the commissioner may 
115.2   designate a dentist or dental clinic as a critical access dental provider if the dentist or 
115.3   dental clinic is willing to provide care to patients covered by medical assistance, general 
115.4   assistance medical care, or MinnesotaCare at a level which significantly increases access 
115.5   to dental care in the service area.
115.6   The commissioner shall annually establish a reimbursement schedule for critical 
115.7   access dental providers and provider-specific limits on total reimbursement received 
115.8   under the reimbursement schedule, and shall notify each critical access dental provider 
115.9   of the schedule and limit.
115.10  (d) An entity that operates both a Medicare certified comprehensive outpatient 
115.11  rehabilitation facility and a facility which was certified prior to January 1, 1993, that is 
115.12  licensed under Minnesota Rules, parts 9570.2000 to 9570.3600, and for whom at least 33 
115.13  percent of the clients receiving rehabilitation services in the most recent calendar year are 
115.14  medical assistance recipients, shall be reimbursed by the commissioner for rehabilitation 
115.15  services at rates that are 38 percent greater than the maximum reimbursement rate 
115.16  allowed under paragraph (a), clause (2), when those services are (1) provided within the 
115.17  comprehensive outpatient rehabilitation facility and (2) provided to residents of nursing 
115.18  facilities owned by the entity.
115.19  (e) Effective for services rendered on or after January 1, 2007, the commissioner 
115.20  shall make payments for physician and professional services based on the Medicare 
115.21  relative value units (RVUs). This change shall be budget neutral and the cost of 
115.22  implementing RVUs will be incorporated in the established conversion factor.

115.23      Sec. 10. [256B.763] CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.
115.24  (a) For services defined in paragraph (b) and rendered on or after July 1, 2007, 
115.25  payment rates shall be increased by 23.7 percent over the rates in effect on January 1, 
115.26  2006, for:
115.27  (1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;
115.28  (2) community mental health centers under section 256B.0625, subdivision 5; and
115.29  (3) mental health clinics and centers certified under Minnesota Rules, parts 
115.30  9520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated 
115.31  as essential community providers under section 62Q.19.
115.32  (b) This increase applies to group skills training when provided as a component of 
115.33  children's therapeutic services and support, psychotherapy, medication management, 
115.34  evaluation and management, diagnostic assessment, explanation of findings, psychological 
115.35  testing, neuropsychological services, direction of behavioral aides, and inpatient 
115.36  consultation.
116.1   (c) This increase does not apply to rates that are governed by section 256B.0625, 
116.2   subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are 
116.3   negotiated with the county, rates that are established by the federal government, or rates 
116.4   that increased between January 1, 2004, and January 1, 2005.
116.5   (d) The commissioner shall adjust rates paid to prepaid health plans under contract 
116.6   with the commissioner to reflect the rate increases provided in paragraph (a). The prepaid 
116.7   health plan must pass this rate increase to the providers identified in paragraph (a).

116.8       Sec. 11. Minnesota Statutes 2005 Supplement, section 256D.03, subdivision 3, is 
116.9   amended to read:
116.10      Subd. 3. General assistance medical care; eligibility. (a) General assistance 
116.11  medical care may be paid for any person who is not eligible for medical assistance under 
116.12  chapter 256B, including eligibility for medical assistance based on a spenddown of excess 
116.13  income according to section 256B.056, subdivision 5, or MinnesotaCare as defined in 
116.14  paragraph (b), except as provided in paragraph (c), and:
116.15  (1) who is receiving assistance under section 256D.05, except for families with 
116.16  children who are eligible under Minnesota family investment program (MFIP), or who is 
116.17  having a payment made on the person's behalf under sections 256I.01 to 256I.06; or
116.18  (2) who is a resident of Minnesota; and
116.19  (i) who has gross countable income not in excess of 75 percent of the federal poverty 
116.20  guidelines for the family size, using a six-month budget period and whose equity in assets 
116.21  is not in excess of $1,000 per assistance unit. General assistance medical care is not 
116.22  available for applicants or enrollees who are otherwise eligible for medical assistance but 
116.23  fail to verify their assets. Enrollees who become eligible for medical assistance shall be 
116.24  terminated and transferred to medical assistance. Exempt assets, the reduction of excess 
116.25  assets, and the waiver of excess assets must conform to the medical assistance program in 
116.26  section 256B.056, subdivision 3, with the following exception: the maximum amount of 
116.27  undistributed funds in a trust that could be distributed to or on behalf of the beneficiary by 
116.28  the trustee, assuming the full exercise of the trustee's discretion under the terms of the 
116.29  trust, must be applied toward the asset maximum;
116.30  (ii) who has gross countable income above 75 percent of the federal poverty 
116.31  guidelines but not in excess of 175 percent of the federal poverty guidelines for the 
116.32  family size, using a six-month budget period, whose equity in assets is not in excess 
116.33  of the limits in section 256B.056, subdivision 3c, and who applies during an inpatient 
116.34  hospitalization; or
117.1   (iii) the commissioner shall adjust the income standards under this section each July 
117.2   1 by the annual update of the federal poverty guidelines following publication by the 
117.3   United States Department of Health and Human Services.
117.4   (b) Effective for applications and renewals processed on or after September 1, 2006, 
117.5   general assistance medical care may not be paid for applicants or recipients who are adults 
117.6   with dependent children under 21 whose gross family income is equal to or less than 275 
117.7   percent of the federal poverty guidelines who are not described in paragraph (e).
117.8   (c) Effective for applications and renewals processed on or after September 1, 2006, 
117.9   general assistance medical care may be paid for applicants and recipients who meet all 
117.10  eligibility requirements of paragraph (a), clause (2), item (i), for a temporary period 
117.11  beginning the date of application. Immediately following approval of general assistance 
117.12  medical care, enrollees shall be enrolled in MinnesotaCare under section 256L.04, 
117.13  subdivision 7, with covered services as provided in section 256L.03 for the rest of the 
117.14  six-month eligibility period, until their six-month renewal.
117.15  (d) To be eligible for general assistance medical care following enrollment in 
117.16  MinnesotaCare as required by paragraph (c), an individual must complete a new 
117.17  application.
117.18  (e) Applicants and recipients eligible under paragraph (a), clause (1), or; who have 
117.19  applied for and are awaiting a determination of blindness or disability by the state medical 
117.20  review team or a determination of eligibility for Supplemental Security Income or Social 
117.21  Security Disability Insurance by the Social Security Administration, or; who fail to meet 
117.22  the requirements of section 256L.09, subdivision 2,;  who are classified as end-stage renal 
117.23  disease beneficiaries in the Medicare program; who are enrolled in private health care 
117.24  coverage as defined in section 256B.02, subdivision 9; who are eligible under paragraph 
117.25  (j); or who receive treatment funded pursuant to section 254B.02 are exempt from the 
117.26  MinnesotaCare enrollment requirements of this subdivision.
117.27  (f) For applications received on or after October 1, 2003, eligibility may begin no 
117.28  earlier than the date of application. For individuals eligible under paragraph (a), clause 
117.29  (2), item (i), a redetermination of eligibility must occur every 12 months. Individuals are 
117.30  eligible under paragraph (a), clause (2), item (ii), only during inpatient hospitalization but 
117.31  may reapply if there is a subsequent period of inpatient hospitalization.
117.32  (g) Beginning September 1, 2006, Minnesota health care program applications and 
117.33  renewals completed by recipients and applicants who are persons described in paragraph 
117.34  (c) and submitted to the county agency shall be determined for MinnesotaCare eligibility 
117.35  by the county agency. If all other eligibility requirements of this subdivision are met, 
117.36  eligibility for general assistance medical care shall be available in any month during which 
118.1   MinnesotaCare enrollment is pending. Upon notification of eligibility for MinnesotaCare, 
118.2   notice of termination for eligibility for general assistance medical care shall be sent to 
118.3   an applicant or recipient. If all other eligibility requirements of this subdivision are 
118.4   met, eligibility for general assistance medical care shall be available until enrollment in 
118.5   MinnesotaCare subject to the provisions of paragraphs (c), (e), and (f).
118.6   (h) The date of an initial Minnesota health care program application necessary to 
118.7   begin a determination of eligibility shall be the date the applicant has provided a name, 
118.8   address, and Social Security number, signed and dated, to the county agency or the 
118.9   Department of Human Services. If the applicant is unable to provide a name, address, 
118.10  Social Security number, and signature when health care is delivered due to a medical 
118.11  condition or disability, a health care provider may act on an applicant's behalf to establish 
118.12  the date of an initial Minnesota health care program application by providing the county 
118.13  agency or Department of Human Services with provider identification and a temporary 
118.14  unique identifier for the applicant. The applicant must complete the remainder of the 
118.15  application and provide necessary verification before eligibility can be determined. The 
118.16  county agency must assist the applicant in obtaining verification if necessary.
118.17  (i) County agencies are authorized to use all automated databases containing 
118.18  information regarding recipients' or applicants' income in order to determine eligibility 
118.19  for general assistance medical care or MinnesotaCare. Such use shall be considered 
118.20  sufficient in order to determine eligibility and premium payments by the county agency.
118.21  (j) General assistance medical care is not available for a person in a correctional 
118.22  facility unless the person is detained by law for less than one year in a county correctional 
118.23  or detention facility as a person accused or convicted of a crime, or admitted as an 
118.24  inpatient to a hospital on a criminal hold order, and the person is a recipient of general 
118.25  assistance medical care at the time the person is detained by law or admitted on a criminal 
118.26  hold order and as long as the person continues to meet other eligibility requirements 
118.27  of this subdivision.
118.28  (k) General assistance medical care is not available for applicants or recipients who 
118.29  do not cooperate with the county agency to meet the requirements of medical assistance.
118.30  (l) In determining the amount of assets of an individual eligible under paragraph 
118.31  (a), clause (2), item (i), there shall be included any asset or interest in an asset, including 
118.32  an asset excluded under paragraph (a), that was given away, sold, or disposed of for 
118.33  less than fair market value within the 60 months preceding application for general 
118.34  assistance medical care or during the period of eligibility. Any transfer described in this 
118.35  paragraph shall be presumed to have been for the purpose of establishing eligibility for 
118.36  general assistance medical care, unless the individual furnishes convincing evidence to 
119.1   establish that the transaction was exclusively for another purpose. For purposes of this 
119.2   paragraph, the value of the asset or interest shall be the fair market value at the time it 
119.3   was given away, sold, or disposed of, less the amount of compensation received. For any 
119.4   uncompensated transfer, the number of months of ineligibility, including partial months, 
119.5   shall be calculated by dividing the uncompensated transfer amount by the average monthly 
119.6   per person payment made by the medical assistance program to skilled nursing facilities 
119.7   for the previous calendar year. The individual shall remain ineligible until this fixed period 
119.8   has expired. The period of ineligibility may exceed 30 months, and a reapplication for 
119.9   benefits after 30 months from the date of the transfer shall not result in eligibility unless 
119.10  and until the period of ineligibility has expired. The period of ineligibility begins in the 
119.11  month the transfer was reported to the county agency, or if the transfer was not reported, 
119.12  the month in which the county agency discovered the transfer, whichever comes first. For 
119.13  applicants, the period of ineligibility begins on the date of the first approved application.
119.14  (m) When determining eligibility for any state benefits under this subdivision, 
119.15  the income and resources of all noncitizens shall be deemed to include their sponsor's 
119.16  income and resources as defined in the Personal Responsibility and Work Opportunity 
119.17  Reconciliation Act of 1996, title IV, Public Law 104-193, sections 421 and 422, and 
119.18  subsequently set out in federal rules.
119.19  (n) Undocumented noncitizens and nonimmigrants are ineligible for general 
119.20  assistance medical care. For purposes of this subdivision, a nonimmigrant is an individual 
119.21  in one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
119.22  an undocumented noncitizen is an individual who resides in the United States without the 
119.23  approval or acquiescence of the Immigration and Naturalization Service.
119.24  (o) Notwithstanding any other provision of law, a noncitizen who is ineligible for 
119.25  medical assistance due to the deeming of a sponsor's income and resources, is ineligible 
119.26  for general assistance medical care.
119.27  (p) Effective July 1, 2003, general assistance medical care emergency services end.
119.28  EFFECTIVE DATE.This section is effective September 1, 2006.

119.29      Sec. 12. Minnesota Statutes 2005 Supplement, section 256L.03, subdivision 5, is 
119.30  amended to read:
119.31      Subd. 5. Co-payments and coinsurance. (a) Except as provided in paragraphs (b) 
119.32  and (c), the MinnesotaCare benefit plan shall include the following co-payments and 
119.33  coinsurance requirements for all enrollees:
119.34  (1) ten percent of the paid charges for inpatient hospital services for adult enrollees, 
119.35  subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and 
119.36  $3,000 per family;
120.1   (2) $3 per prescription for adult enrollees;
120.2   (3) $25 for eyeglasses for adult enrollees;
120.3   (4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an 
120.4   episode of service which is required because of a recipient's symptoms, diagnosis, or 
120.5   established illness, and which is delivered in an ambulatory setting by a physician or 
120.6   physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse, 
120.7   audiologist, optician, or optometrist; and
120.8   (5) $6 for nonemergency visits to a hospital-based emergency room; and.
120.9   (6) 50 percent of the fee-for-service rate for adult dental care services other than 
120.10  preventive care services for persons eligible under section 256L.04, subdivisions 1 to 7, 
120.11  with income equal to or less than 175 percent of the federal poverty guidelines.
120.12  (b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of 
120.13  children under the age of 21 in households with family income equal to or less than 175 
120.14  percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to 
120.15  parents and relative caretakers of children under the age of 21 in households with family 
120.16  income greater than 175 percent of the federal poverty guidelines for inpatient hospital 
120.17  admissions occurring on or after January 1, 2001.
120.18  (c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children 
120.19  under the age of 21.
120.20  (d) Adult enrollees with family gross income that exceeds 175 percent of the 
120.21  federal poverty guidelines and who are not pregnant shall be financially responsible for 
120.22  the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient 
120.23  hospital benefit limit.
120.24  (e) When a MinnesotaCare enrollee becomes a member of a prepaid health plan, 
120.25  or changes from one prepaid health plan to another during a calendar year, any charges 
120.26  submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket 
120.27  expenses incurred by the enrollee for inpatient services, that were submitted or incurred 
120.28  prior to enrollment, or prior to the change in health plans, shall be disregarded.
120.29  EFFECTIVE DATE.This section is effective July 1, 2007.

120.30      Sec. 13. Minnesota Statutes 2004, section 256L.11, is amended by adding a subdivision 
120.31  to read:
120.32      Subd. 7. Critical access dental providers. Effective for dental services provided 
120.33  to MinnesotaCare enrollees on or after January 1, 2007, the commissioner shall increase 
120.34  payment rates to dentists and dental clinics deemed by the commissioner to be critical 
120.35  access providers under section 256B.76, paragraph (c), by 50 percent above the payment 
120.36  rate that would otherwise be paid to the provider. The commissioner shall adjust the 
121.1   rates paid on or after January 1, 2007, to prepaid health plans under contract with the 
121.2   commissioner to reflect this rate increase. The prepaid health plan must pass this rate 
121.3   increase to providers who have been identified by the commissioner as critical access 
121.4   dental providers under section 256B.76, paragraph (c).
121.5   EFFECTIVE DATE.This section is effective July 1, 2006.

121.6       Sec. 14. Minnesota Statutes 2004, section 256L.17, subdivision 2, is amended to read:
121.7       Subd. 2. Limit on total assets. (a) Effective July 1, 2002, or upon federal approval, 
121.8   whichever is later, in order to be eligible for the MinnesotaCare program, a household of 
121.9   two or more persons must not own more than $20,000 in total net assets, and a household 
121.10  of one person must not own more than $10,000 in total net assets.
121.11  (b) For purposes of this subdivision, assets are determined according to section  
121.12  256B.056, subdivision 3c. 
121.13  (c) State-funded MinnesotaCare is not available for applicants or enrollees who are 
121.14  otherwise eligible for medical assistance but fail to verify assets. Enrollees who become 
121.15  eligible for federally funded medical assistance shall be terminated from state-funded 
121.16  MinnesotaCare and transferred to medical assistance.

121.17      Sec. 15. PHARMACY PAYMENT REFORM ADVISORY COMMITTEE.
121.18      Subdivision 1. Definitions. For purposes of this section, the following words, terms, 
121.19  and phrases have the following meanings:
121.20  (a) "Department" means the Department of Human Services.
121.21  (b) "Commissioner" means the commissioner of the Department of Human Services.
121.22  (c) "Cost of dispensing" includes, but is not limited to, operational and overhead 
121.23  costs; professional counseling as required under the Omnibus Budget Reconciliation 
121.24  Act of 1990, excluding medication management services under Minnesota Statutes, 
121.25  section 256B.0625, subdivision 13h; salaries; and other associated administrative costs. In 
121.26  addition, cost of dispensing includes expenses transferred by wholesale drug distributors 
121.27  to pharmacies as a result of the wholesale drug distributor tax under Minnesota Statutes, 
121.28  sections 295.52 to 295.582.
121.29  (d) "Additional costs" include, but are not limited to, costs relating to coordination of 
121.30  benefits, bad debt, uncollected co-pays, payment lag times, and high rate of rejected claims.
121.31  (e) "Advisory committee" means the Pharmacy Payment Reform Advisory 
121.32  Committee established by this section.
121.33      Subd. 2. Advisory committee. The Pharmacy Payment Reform Advisory 
121.34  Committee is established under the direction of the commissioner of human services. 
121.35  The commissioner, after receiving recommendations from the Minnesota Pharmacists 
122.1   Association, the Minnesota Retailers Association, the Minnesota Hospital Association, 
122.2   and the Minnesota Wholesale Druggists Association, shall convene a pharmacy payment 
122.3   reform advisory committee to advise the commissioner and make recommendations to the 
122.4   legislature on implementation of pharmacy reforms contained in title VI, chapter IV, of 
122.5   the Deficit Reduction Act of 2005. The committee shall be comprised of seven private 
122.6   sector representatives with management/operations experience, representing each of the 
122.7   following pharmacy practice settings: independent and chain pharmacy entities, one of 
122.8   whom must have expertise in pharmacoeconomics; managed care; hospital outpatient 
122.9   pharmacies; and wholesale drug distribution. The committee shall be staffed by an 
122.10  employee of the department who shall serve as an ex officio nonvoting member of the 
122.11  committee. The department's pharmacy program manager shall also serve as an ex 
122.12  officio, nonvoting member of the committee. The committee is governed by Minnesota 
122.13  Statutes, section 15.059, except that committee members do not receive compensation or 
122.14  reimbursement for expenses. The advisory committee members shall serve a two-year 
122.15  term and the advisory committee will expire on January 31, 2008. At least five of the 
122.16  committee members shall be registered pharmacists.
122.17      Subd. 3. Cost of dispensing study. The department shall conduct a prescription 
122.18  drug cost of dispensing study to determine the average cost of dispensing Medicaid 
122.19  prescriptions in Minnesota. The department shall contract with an independent third party 
122.20  to conduct a Medicaid prescription drug cost of dispensing study. The cost of dispensing 
122.21  study shall be completed by an independent third party no later than January 1, 2007, and 
122.22  reported to the department and the advisory committee upon completion.
122.23      Subd. 4. Content of study. The study shall determine the cost of dispensing 
122.24  the average prescription and any additional costs that might be incurred for dispensing 
122.25  Medicaid prescriptions. The study shall include the current level of dispensing fees paid to 
122.26  providers for dispensing Medicaid prescription drugs and an estimate of revenues required 
122.27  to adequately adjust reimbursement to cover the cost to pharmacies for dispensing 
122.28  Medicaid prescription drugs.
122.29      Subd. 5. Methodology of study and publishing requirement. The independent 
122.30  third-party entity performing the cost of dispensing research shall submit to the advisory 
122.31  committee the entity's proposed research methodology and shall make the data available 
122.32  to allow other independent researchers to review the study results. The data shall be 
122.33  published in a manner that does not identify the source of the data.
122.34      Subd. 6. Recommendations. The advisory committee shall use the information 
122.35  from the cost of dispensing study and make recommendations to the commissioner on 
122.36  implementation of pharmacy reforms contained in title VI, chapter IV, of the Deficit 
123.1   Reduction Act of 2005. The commissioner shall report the findings of the study and the 
123.2   recommendations of the advisory committee to the legislature by February 1, 2007. The 
123.3   commissioner, in consultation with the advisory committee, shall make recommendations 
123.4   to the legislature on how to adequately adjust Medicaid reimbursement rates to pharmacies 
123.5   to cover the costs of dispensing and additional costs to pharmacies. Reports shall include 
123.6   the current level of dispensing fees paid to providers for dispensing Medicaid prescription 
123.7   drugs and an estimate of revenues required to adequately adjust reimbursement to cover 
123.8   the cost to pharmacies for dispensing Medicaid prescription drugs to ensure that:
123.9   (1) reimbursement is sufficient to enlist an adequate number of participating 
123.10  pharmacy providers so that pharmacy services are as available for Medicaid recipients 
123.11  under the program as for the state's general population;
123.12  (2) Medicaid dispensing fees are adequate to reimburse pharmacy providers for the 
123.13  costs of dispensing prescriptions under the Medicaid program;
123.14  (3) Medicaid pharmacy reimbursement for multiple-source drugs included on the 
123.15  federal upper reimbursement limit is set at the level established by the federal government 
123.16  under United States Code, title 42, section 1396r-8(e)(5); and
123.17  (4) the new payment system does not create disincentives for pharmacists to 
123.18  dispense generic drugs.
123.19  EFFECTIVE DATE.This section is effective the day following final enactment.

123.20      Sec. 16. MENTAL HEALTH PILOT PROGRAM FOR UNSHELTERED 
123.21  INDIVIDUALS.
123.22      Subdivision 1. Pilot project program components. The commissioner of human 
123.23  services shall establish two pilot projects, one in Ramsey County and one in Hennepin 
123.24  County, which shall:
123.25  (1) operate two ten-bed facilities in separate locations;
123.26  (2) provide community support to individuals who have been living homeless for at 
123.27  least one year;
123.28  (3) provide 24-hour supervision; and
123.29  (4) provide on-site mental health services which focus on the mental health needs of 
123.30  individuals who have lived unsheltered.
123.31      Subd. 2. Group residential housing. Notwithstanding Minnesota Statutes, section 
123.32  256I.05, subdivisions 1a and 1c, a county agency shall negotiate a supplementary rate in 
123.33  addition to the rate specified in Minnesota Statutes, section 256I.05, subdivision 1, not to 
123.34  exceed $700 per month, including any legislatively authorized inflationary adjustments for 
123.35  a group residential program that meets the components under subdivision 1, and for the 
123.36  independent living component of the program under subdivision 3.
124.1       Subd. 3. Independent living. An individual who has lived in one of the facilities 
124.2   under subdivision 1, and who is being transitioned to independent living as part of the 
124.3   program plan, continues to be eligible for group residential housing and the supplementary 
124.4   service rate negotiated with the county under subdivision 2.
124.5       Subd. 4. Effective date. This section is effective July 1, 2006, through June 30, 
124.6   2008.

124.7       Sec. 17.  REPEALER.
124.8   Minnesota Statutes 2004, sections 245.465, subdivision 2; 256B.0945, subdivisions 
124.9   5, 6, 7, 8, and 9; and 256B.83, are repealed.

124.10                                         ARTICLE 17
124.11                               HEALTH CARE FEDERAL COMPLIANCE

124.12      Section 1. Minnesota Statutes 2004, section 62A.045, is amended to read:
124.13  62A.045 PAYMENTS ON BEHALF OF ENROLLEES IN GOVERNMENT 
124.14  HEALTH PROGRAMS.
124.15  (a) As a condition of doing business in Minnesota, each health insurer shall comply 
124.16  with the requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171, 
124.17  including any federal regulations adopted under that act, to the extent that it imposes a 
124.18  requirement that applies in this state and that is not also required by the laws of this state. 
124.19  This section does not require compliance with any provision of the federal act prior to 
124.20  the effective date provided for that provision in the federal act. The commissioner shall 
124.21  enforce this section.
124.22  For the purpose of this section, "health insurer" includes self-insured plans, group 
124.23  health plans (as defined in section 607(1) of the Employee Retirement Income Security 
124.24  Act of 1974), service benefit plans, managed care organizations, pharmacy benefit 
124.25  managers, or other parties that are by contract legally responsible to pay a claim for a 
124.26  healthcare item or service for an individual receiving benefits under paragraph (b).
124.27  (b) No health plan issued or renewed to provide coverage to a Minnesota resident 
124.28  shall contain any provision denying or reducing benefits because services are rendered to a 
124.29  person who is eligible for or receiving medical benefits pursuant to title XIX of the Social 
124.30  Security Act (Medicaid) in this or any other state; chapter 256; 256B; or 256D or services 
124.31  pursuant to section  252.27;  256L.01 to  256L.10;  260B.331, subdivision 2;  260C.331, 
124.32  subdivision 2; or  393.07, subdivision 1 or 2. No health carrier providing benefits under 
124.33  plans covered by this section shall use eligibility for medical programs named in this 
124.34  section as an underwriting guideline or reason for nonacceptance of the risk. 
124.35  (b) (c) If payment for covered expenses has been made under state medical programs 
124.36  for health care items or services provided to an individual, and a third party has a legal 
125.1   liability to make payments, the rights of payment and appeal of an adverse coverage 
125.2   decision for the individual, or in the case of a child their responsible relative or caretaker, 
125.3   will be subrogated to the state agency. The state agency may assert its rights under this 
125.4   section within three years of the date the service was rendered. For purposes of this 
125.5   section, "state agency" includes prepaid health plans under contract with the commissioner 
125.6   according to sections  256B.69,  256D.03, subdivision 4, paragraph (c), and  256L.12; 
125.7   children's mental health collaboratives under section  245.493; demonstration projects for 
125.8   persons with disabilities under section  256B.77; nursing homes under the alternative 
125.9   payment demonstration project under section  256B.434; and county-based purchasing 
125.10  entities under section  256B.692. 
125.11  (c) (d) Notwithstanding any law to the contrary, when a person covered by a health 
125.12  plan receives medical benefits according to any statute listed in this section, payment for 
125.13  covered services or notice of denial for services billed by the provider must be issued 
125.14  directly to the provider. If a person was receiving medical benefits through the Department 
125.15  of Human Services at the time a service was provided, the provider must indicate this 
125.16  benefit coverage on any claim forms submitted by the provider to the health carrier for 
125.17  those services. If the commissioner of human services notifies the health carrier that 
125.18  the commissioner has made payments to the provider, payment for benefits or notices 
125.19  of denials issued by the health carrier must be issued directly to the commissioner. 
125.20  Submission by the department to the health carrier of the claim on a Department of 
125.21  Human Services claim form is proper notice and shall be considered proof of payment of 
125.22  the claim to the provider and supersedes any contract requirements of the health carrier 
125.23  relating to the form of submission. Liability to the insured for coverage is satisfied to the 
125.24  extent that payments for those benefits are made by the health carrier to the provider or the 
125.25  commissioner as required by this section.
125.26  (d) (e) When a state agency has acquired the rights of an individual eligible for 
125.27  medical programs named in this section and has health benefits coverage through a 
125.28  health carrier, the health carrier shall not impose requirements that are different from 
125.29  requirements applicable to an agent or assignee of any other individual covered.
125.30  (e) (f) For the purpose of this section, health plan includes coverage offered by 
125.31  community integrated service networks, any plan governed under the federal Employee 
125.32  Retirement Income Security Act of 1974 (ERISA), United States Code, title 29, sections 
125.33  1001 to 1461, and coverage offered under the exclusions listed in section  62A.011, 
125.34  subdivision 3, clauses (2), (6), (9), (10), and (12). 

125.35      Sec. 2. Minnesota Statutes 2004, section 62S.05, is amended by adding a subdivision 
125.36  to read:
126.1       Subd. 4. Extension of limitation periods. The commissioner may extend the 
126.2   limitation periods set forth in subdivisions 1 and 2 as to specific age group categories in 
126.3   specific policy forms upon finding that the extension is in the best interest of the public. 
126.4   EFFECTIVE DATE.This section is effective July 1, 2006.

126.5       Sec. 3. Minnesota Statutes 2004, section 62S.08, subdivision 3, is amended to read:
126.6       Subd. 3. Mandatory format. The following standard format outline of coverage 
126.7   must be used, unless otherwise specifically indicated:
126.8   COMPANY NAME
126.9   ADDRESS - CITY AND STATE
126.10  TELEPHONE NUMBER
126.11  LONG-TERM CARE INSURANCE
126.12  OUTLINE OF COVERAGE
126.13  Policy Number or Group Master Policy and Certificate Number
126.14  (Except for policies or certificates which are guaranteed issue, the following caution 
126.15  statement, or language substantially similar, must appear as follows in the outline of 
126.16  coverage.)
126.17  CAUTION: The issuance of this long-term care insurance (policy) (certificate) 
126.18  is based upon your responses to the questions on your application. A copy of your 
126.19  (application) (enrollment form) (is enclosed) (was retained by you when you applied). 
126.20  If your answers are incorrect or untrue, the company has the right to deny benefits or 
126.21  rescind your policy. The best time to clear up any questions is now, before a claim 
126.22  arises. If, for any reason, any of your answers are incorrect, contact the company at this 
126.23  address: (insert address).
126.24  (1) This policy is (an individual policy of insurance) (a group policy) which was 
126.25  issued in the (indicate jurisdiction in which group policy was issued).
126.26  (2) PURPOSE OF OUTLINE OF COVERAGE. This outline of coverage provides 
126.27  a very brief description of the important features of the policy. You should compare 
126.28  this outline of coverage to outlines of coverage for other policies available to you. This 
126.29  is not an insurance contract, but only a summary of coverage. Only the individual or 
126.30  group policy contains governing contractual provisions. This means that the policy or 
126.31  group policy sets forth in detail the rights and obligations of both you and the insurance 
126.32  company. Therefore, if you purchase this coverage, or any other coverage, it is important 
126.33  that you READ YOUR POLICY (OR CERTIFICATE) CAREFULLY.
126.34  (3) THIS PLAN IS INTENDED TO BE A QUALIFIED LONG-TERM CARE 
126.35  INSURANCE CONTRACT AS DEFINED UNDER SECTION 7702(B)(b) OF THE 
126.36  INTERNAL REVENUE CODE OF 1986.
127.1   (4) TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE 
127.2   CONTINUED IN FORCE OR DISCONTINUED.
127.3   (a) (For long-term care health insurance policies or certificates describe one of the 
127.4   following permissible policy renewability provisions:)
127.5   (1) (Policies and certificates that are guaranteed renewable shall contain the 
127.6   following statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS 
127.7   GUARANTEED RENEWABLE. This means you have the right, subject to the terms of 
127.8   your policy, (certificate) to continue this policy as long as you pay your premiums on time. 
127.9   (Company name) cannot change any of the terms of your policy on its own, except that, in 
127.10  the future, IT MAY INCREASE THE PREMIUM YOU PAY.
127.11  (2) (Policies and certificates that are noncancelable shall contain the following 
127.12  statement:) RENEWABILITY: THIS POLICY (CERTIFICATE) IS NONCANCELABLE. 
127.13  This means that you have the right, subject to the terms of your policy, to continue this 
127.14  policy as long as you pay your premiums on time. (Company name) cannot change any 
127.15  of the terms of your policy on its own and cannot change the premium you currently 
127.16  pay. However, if your policy contains an inflation protection feature where you choose 
127.17  to increase your benefits, (Company name) may increase your premium at that time for 
127.18  those additional benefits.
127.19  (b) (For group coverage, specifically describe continuation/conversion provisions 
127.20  applicable to the certificate and group policy.)
127.21  (c) (Describe waiver of premium provisions or state that there are not such 
127.22  provisions.)
127.23  (5) TERMS UNDER WHICH THE COMPANY MAY CHANGE PREMIUMS. 
127.24  (In bold type larger than the maximum type required to be used for the other 
127.25  provisions of the outline of coverage, state whether or not the company has a right to 
127.26  change the premium and, if a right exists, describe clearly and concisely each circumstance 
127.27  under which the premium may change.)
127.28  (6) TERMS UNDER WHICH THE POLICY OR CERTIFICATE MAY BE 
127.29  RETURNED AND PREMIUM REFUNDED.
127.30  (a) (Provide a brief description of the right to return -- "free look" provision of 
127.31  the policy.)
127.32  (b) (Include a statement that the policy either does or does not contain provisions 
127.33  providing for a refund or partial refund of premium upon the death of an insured or 
127.34  surrender of the policy or certificate. If the policy contains such provisions, include a 
127.35  description of them.)
128.1   (5) (7) THIS IS NOT MEDICARE SUPPLEMENT COVERAGE. If you are 
128.2   eligible for Medicare, review the Medicare Supplement Buyer's Guide available from 
128.3   the insurance company.
128.4   (a) (For agents) neither (insert company name) nor its agents represent Medicare, the 
128.5   federal government, or any state government.
128.6   (b) (For direct response) (insert company name) is not representing Medicare, the 
128.7   federal government, or any state government.
128.8   (6) (8) LONG-TERM CARE COVERAGE. Policies of this category are designed to 
128.9   provide coverage for one or more necessary or medically necessary diagnostic, preventive, 
128.10  therapeutic, rehabilitative, maintenance, or personal care services, provided in a setting 
128.11  other than an acute care unit of a hospital, such as in a nursing home, in the community, 
128.12  or in the home.
128.13  This policy provides coverage in the form of a fixed dollar indemnity benefit for 
128.14  covered long-term care expenses, subject to policy (limitations), (waiting periods), and 
128.15  (coinsurance) requirements. (Modify this paragraph if the policy is not an indemnity 
128.16  policy.)
128.17  (7) (9) BENEFITS PROVIDED BY THIS POLICY.
128.18  (a) (Covered services, related deductible(s), waiting periods, elimination periods, 
128.19  and benefit maximums.)
128.20  (b) (Institutional benefits, by skill level.)
128.21  (c) (Noninstitutional benefits, by skill level.)
128.22  (d) (Eligibility for payment of benefits.)
128.23  (Activities of daily living and cognitive impairment shall be used to measure an 
128.24  insured's need for long-term care and must be defined and described as part of the outline 
128.25  of coverage.)
128.26  (Any benefit screens must be explained in this section. If these screens differ for 
128.27  different benefits, explanation of the screen should accompany each benefit description. If 
128.28  an attending physician or other specified person must certify a certain level of functional 
128.29  dependency in order to be eligible for benefits, this too must be specified. If activities of 
128.30  daily living (ADLs) are used to measure an insured's need for long-term care, then these 
128.31  qualifying criteria or screens must be explained.)
128.32  (8) (10) LIMITATIONS AND EXCLUSIONS:
128.33  Describe:
128.34  (a) preexisting conditions;
128.35  (b) noneligible facilities/provider;
129.1   (c) noneligible levels of care (e.g., unlicensed providers, care or treatment provided 
129.2   by a family member, etc.);
129.3   (d) exclusions/exceptions; and
129.4   (e) limitations.
129.5   (This section should provide a brief specific description of any policy provisions 
129.6   which limit, exclude, restrict, reduce, delay, or in any other manner operate to qualify 
129.7   payment of the benefits described in paragraph (6) (8).)
129.8   THIS POLICY MAY NOT COVER ALL THE EXPENSES ASSOCIATED WITH 
129.9   YOUR LONG-TERM CARE NEEDS.
129.10  (9) (11) RELATIONSHIP OF COST OF CARE AND BENEFITS. Because the costs 
129.11  of long-term care services will likely increase over time, you should consider whether and 
129.12  how the benefits of this plan may be adjusted. As applicable, indicate the following:
129.13  (a) that the benefit level will not increase over time;
129.14  (b) any automatic benefit adjustment provisions;
129.15  (c) whether the insured will be guaranteed the option to buy additional benefits and 
129.16  the basis upon which benefits will be increased over time if not by a specified amount 
129.17  or percentage;
129.18  (d) if there is such a guarantee, include whether additional underwriting or health 
129.19  screening will be required, the frequency and amounts of the upgrade options, and any 
129.20  significant restrictions or limitations; and
129.21  (e) whether there will be any additional premium charge imposed and how that 
129.22  is to be calculated.
129.23  (10) (12) ALZHEIMER'S DISEASE AND OTHER ORGANIC BRAIN 
129.24  DISORDERS. (State that the policy provides coverage for insureds clinically diagnosed as 
129.25  having Alzheimer's disease or related degenerative and dementing illnesses. Specifically, 
129.26  describe each benefit screen or other policy provision which provides preconditions to the 
129.27  availability of policy benefits for such an insured.)
129.28  (11) (13) PREMIUM.
129.29  (a) State the total annual premium for the policy.
129.30  (b) If the premium varies with an applicant's choice among benefit options, indicate 
129.31  the portion of annual premium which corresponds to each benefit option.
129.32  (12) (14) ADDITIONAL FEATURES.
129.33  (a) Indicate if medical underwriting is used.
129.34  (b) Describe other important features.
129.35  (15) CONTACT THE STATE DEPARTMENT OF COMMERCE OR SENIOR 
129.36  LINKAGE LINE IF YOU HAVE GENERAL QUESTIONS REGARDING LONG-TERM 
130.1   CARE INSURANCE. CONTACT THE INSURANCE COMPANY IF YOU HAVE 
130.2   SPECIFIC QUESTIONS REGARDING YOUR LONG-TERM CARE INSURANCE 
130.3   POLICY OR CERTIFICATE.
130.4   EFFECTIVE DATE.This section is effective July 1, 2006.

130.5       Sec. 4. Minnesota Statutes 2004, section 62S.081, subdivision 4, is amended to read:
130.6       Subd. 4. Forms. An insurer shall use the forms in Appendices B (Personal 
130.7   Worksheet) and F (Potential Rate Increase Disclosure Form) of the Long-term Care 
130.8   Insurance Model Regulation adopted by the National Association of Insurance 
130.9   Commissioners to comply with the requirements of subdivisions 1 and 2.
130.10  EFFECTIVE DATE.This section is effective July 1, 2006.

130.11      Sec. 5. Minnesota Statutes 2004, section 62S.10, subdivision 2, is amended to read:
130.12      Subd. 2. Contents. The summary must include the following information:
130.13  (1) an explanation of how the long-term care benefit interacts with other components 
130.14  of the policy, including deductions from death benefits;
130.15  (2) an illustration of the amount of benefits, the length of benefits, and the guaranteed 
130.16  lifetime benefits, if any, for each covered person; and
130.17  (3) any exclusions, reductions, and limitations on benefits of long-term care; and
130.18  (4) a statement that any long-term care inflation protection option required by section 
130.19  62S.23 is not available under this policy. 
130.20  EFFECTIVE DATE.This section is effective July 1, 2006.

130.21      Sec. 6. Minnesota Statutes 2004, section 62S.13, is amended by adding a subdivision 
130.22  to read:
130.23      Subd. 6. Death of insured. In the event of the death of the insured, this section shall 
130.24  not apply to the remaining death benefit of a life insurance policy that accelerates benefits 
130.25  for long-term care. In this situation, the remaining death benefits under these policies shall 
130.26  be governed by section 61A.03, subdivision 1, paragraph (c). In all other situations, this 
130.27  section shall apply to life insurance policies that accelerate benefits for long-term care. 
130.28  EFFECTIVE DATE.This section is effective July 1, 2006.

130.29      Sec. 7. Minnesota Statutes 2004, section 62S.14, subdivision 2, is amended to read:
130.30      Subd. 2. Terms. The terms "guaranteed renewable" and "noncancelable" may not 
130.31  be used in an individual long-term care insurance policy without further explanatory 
130.32  language that complies with the disclosure requirements of section  62S.20. The term 
131.1   "level premium" may only be used when the insurer does not have the right to change 
131.2   the premium.  
131.3   EFFECTIVE DATE.This section is effective July 1, 2006.

131.4       Sec. 8. Minnesota Statutes 2004, section 62S.15, is amended to read:
131.5   62S.15 AUTHORIZED LIMITATIONS AND EXCLUSIONS.
131.6   No policy may be delivered or issued for delivery in this state as long-term care 
131.7   insurance if the policy limits or excludes coverage by type of illness, treatment, medical 
131.8   condition, or accident, except as follows:
131.9   (1) preexisting conditions or diseases;
131.10  (2) mental or nervous disorders; except that the exclusion or limitation of benefits on 
131.11  the basis of Alzheimer's disease is prohibited;
131.12  (3) alcoholism and drug addiction;
131.13  (4) illness, treatment, or medical condition arising out of war or act of war; 
131.14  participation in a felony, riot, or insurrection; service in the armed forces or auxiliary 
131.15  units; suicide, attempted suicide, or intentionally self-inflicted injury; or non-fare-paying 
131.16  aviation; and
131.17  (5) treatment provided in a government facility unless otherwise required by 
131.18  law, services for which benefits are available under Medicare or other government 
131.19  program except Medicaid, state or federal workers' compensation, employer's liability 
131.20  or occupational disease law, motor vehicle no-fault law; services provided by a member 
131.21  of the covered person's immediate family; and services for which no charge is normally 
131.22  made in the absence of insurance; and 
131.23  (6) expenses for services or items available or paid under another long-term care 
131.24  insurance or health insurance policy.
131.25  This subdivision does not prohibit exclusions and limitations by type of provider or 
131.26  territorial limitations.
131.27  EFFECTIVE DATE.This section is effective July 1, 2006.

131.28      Sec. 9. Minnesota Statutes 2004, section 62S.20, subdivision 1, is amended to read:
131.29      Subdivision 1. Renewability. (a) Individual long-term care insurance policies 
131.30  must contain a renewability provision that is appropriately captioned, appears on the first 
131.31  page of the policy, and clearly states the duration, where limited, of renewability and the 
131.32  duration of the term of coverage for which the policy is issued and for which it may be 
131.33  renewed that the coverage is guaranteed renewable or noncancelable. This subdivision 
131.34  does not apply to policies which are part of or combined with life insurance policies 
132.1   which do not contain a renewability provision and under which the right to nonrenew is 
132.2   reserved solely to the policyholder.
132.3   (b) A long-term care insurance policy or certificate, other than one where the insurer 
132.4   does not have the right to change the premium, shall include a statement that premium 
132.5   rates may change. 
132.6   EFFECTIVE DATE.This section is effective July 1, 2006.

132.7       Sec. 10. Minnesota Statutes 2004, section 62S.24, subdivision 1, is amended to read:
132.8       Subdivision 1. Required questions. An application form must include the following 
132.9   questions designed to elicit information as to whether, as of the date of the application, the 
132.10  applicant has another long-term care insurance policy or certificate in force or whether a 
132.11  long-term care policy or certificate is intended to replace any other accident and sickness 
132.12  or long-term care policy or certificate presently in force. A supplementary application 
132.13  or other form to be signed by the applicant and agent, except where the coverage is sold 
132.14  without an agent, containing the following questions may be used. If a replacement policy 
132.15  is issued to a group as defined under section   62S.01, subdivision 15, clause (1), the 
132.16  following questions may be modified only to the extent necessary to elicit information 
132.17  about long-term care insurance policies other than the group policy being replaced; 
132.18  provided, however, that the certificate holder has been notified of the replacement: 
132.19  (1)  do you have another long-term care insurance policy or certificate in force 
132.20  (including health care service contract or health maintenance organization contract)?;
132.21  (2) did you have another long-term care insurance policy or certificate in force 
132.22  during the last 12 months?;
132.23  (i) if so, with which company?; and
132.24  (ii) if that policy lapsed, when did it lapse?; and
132.25  (3) are you covered by Medicaid?; and 
132.26  (4) do you intend to replace any of your medical or health insurance coverage with 
132.27  this policy (certificate)?
132.28  EFFECTIVE DATE.This section is effective July 1, 2006.

132.29      Sec. 11. Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
132.30  to read:
132.31      Subd. 1a. Other health insurance policies sold by agent. Agents shall list all other 
132.32  health insurance policies they have sold to the applicant that are still in force or were sold 
132.33  in the past five years and are no longer in force. 
132.34  EFFECTIVE DATE.This section is effective July 1, 2006.

133.1       Sec. 12. Minnesota Statutes 2004, section 62S.24, subdivision 3, is amended to read:
133.2       Subd. 3. Solicitations other than direct response. After determining that a 
133.3   sale will involve replacement, an insurer, other than an insurer using direct response 
133.4   solicitation methods or its agent, shall furnish the applicant, before issuance or delivery of 
133.5   the individual long-term care insurance policy, a notice regarding replacement of accident 
133.6   and sickness or long-term care coverage. One copy of the notice must be retained by the 
133.7   applicant and an additional copy signed by the applicant must be retained by the insurer. 
133.8   The required notice must be provided in the following manner:
133.9   NOTICE TO APPLICANT REGARDING REPLACEMENT OF
133.10  INDIVIDUAL ACCIDENT AND SICKNESS OR LONG-TERM CARE INSURANCE
133.11  (Insurance company's name and address)
133.12  SAVE THIS NOTICE! IT MAY BE IMPORTANT TO YOU IN THE FUTURE.
133.13  According to (your application) (information you have furnished), you intend to 
133.14  lapse or otherwise terminate existing accident and sickness or long-term care insurance 
133.15  and replace it with an individual long-term care insurance policy to be issued by (company 
133.16  name) insurance company. Your new policy provides 30 days within which you may 
133.17  decide, without cost, whether you desire to keep the policy. For your own information and 
133.18  protection, you should be aware of and seriously consider certain factors which may affect 
133.19  the insurance protection available to you under the new policy.
133.20  You should review this new coverage carefully, comparing it with all accident 
133.21  and sickness or long-term care insurance coverage you now have, and terminate your 
133.22  present policy only if, after due consideration, you find that purchase of this long-term 
133.23  care coverage is a wise decision.
133.24  STATEMENT TO APPLICANT BY AGENT
133.25  (BROKER OR OTHER REPRESENTATIVE):
133.26  (Use additional sheets, as necessary.)
133.27  I have reviewed your current medical health insurance coverage. I believe the 
133.28  replacement of insurance involved in this transaction materially improves your position. 
133.29  My conclusion has taken into account the following considerations, which I call to your 
133.30  attention:
133.31  (a) Health conditions which you presently have (preexisting conditions) may not 
133.32  be immediately or fully covered under the new policy. This could result in denial or 
133.33  delay in payment of benefits under the new policy, whereas a similar claim might have 
133.34  been payable under your present policy.
133.35  (b) State law provides that your replacement policy or certificate may not contain 
133.36  new preexisting conditions or probationary periods. The insurer will waive any time 
133.37  periods applicable to preexisting conditions or probationary periods in the new policy (or 
134.1   coverage) for similar benefits to the extent such time was spent (depleted) under the 
134.2   original policy.
134.3   (c)  If you are replacing existing long-term care insurance coverage, you may wish to 
134.4   secure the advice of your present insurer or its agent regarding the proposed replacement of 
134.5   your present policy. This is not only your right, but it is also in your best interest to make 
134.6   sure you understand all the relevant factors involved in replacing your present coverage.
134.7   (d)  If, after due consideration, you still wish to terminate your present policy and 
134.8   replace it with new coverage, be certain to truthfully and completely answer all questions 
134.9   on the application concerning your medical health history. Failure to include all material 
134.10  medical information on an application may provide a basis for the company to deny any 
134.11  future claims and to refund your premium as though your policy had never been in force. 
134.12  After the application has been completed and before you sign it, reread it carefully to be 
134.13  certain that all information has been properly recorded.
134.14   .......................................................... 
134.15  (Signature of Agent, Broker, or Other Representative)
134.16  (Typed Name and Address of Agency or Broker)
134.17  The  above "Notice to Applicant" was delivered to me on:
134.18                                                                                            
134.19                                                                                      (Date)
134.20                                                                                            
134.21                                                                     (Applicant's Signature)
134.22  EFFECTIVE DATE.This section is effective July 1, 2006.

134.23      Sec. 13. Minnesota Statutes 2004, section 62S.24, subdivision 4, is amended to read:
134.24      Subd. 4. Direct response solicitations. Insurers using direct response solicitation 
134.25  methods shall deliver a notice regarding replacement of long-term care coverage to 
134.26  the applicant upon issuance of the policy. The required notice must be provided in the 
134.27  following manner:
134.28  NOTICE TO APPLICANT REGARDING REPLACEMENT OF 
134.29  ACCIDENT AND SICKNESS OR 
134.30  LONG-TERM CARE INSURANCE
134.31  (Insurance  company's name and address)
134.32  SAVE THIS NOTICE! IT MAY BE
134.33  IMPORTANT TO YOU IN THE FUTURE.
134.34  According to (your application) (information you have furnished), you intend to 
134.35  lapse or otherwise terminate existing accident and sickness or long-term care insurance 
134.36  and replace it with the long-term care insurance policy delivered herewith issued by 
134.37  (company name) insurance company.
135.1   Your new policy provides 30 days within which you may decide, without cost, 
135.2   whether you desire to keep the policy. For your own information and protection, you 
135.3   should be aware of and seriously consider certain factors which may affect the insurance 
135.4   protection available to you under the new policy.
135.5   You should review this new coverage carefully, comparing it with all long-term care 
135.6   insurance coverage you now have, and terminate your present policy only if, after due 
135.7   consideration, you find that purchase of this long-term care coverage is a wise decision.
135.8   (a) Health conditions which you presently have (preexisting conditions) may not 
135.9   be immediately or fully covered under the new policy. This could result in denial or 
135.10  delay in payment of benefits under the new policy, whereas a similar claim might have 
135.11  been payable under your present policy.
135.12  (b) State law provides that your replacement policy or certificate may not contain 
135.13  new preexisting conditions or probationary periods. Your insurer will waive any time 
135.14  periods applicable to preexisting conditions or probationary periods in the new policy (or 
135.15  coverage) for similar benefits to the extent such time was spent (depleted) under the 
135.16  original policy.
135.17  (c) If you are replacing existing long-term care insurance coverage, you may wish to 
135.18  secure the advice of your present insurer or its agent regarding the proposed replacement of 
135.19  your present policy. This is not only your right, but it is also in your best interest to make 
135.20  sure you understand all the relevant factors involved in replacing your present coverage.
135.21  (d) (To be included only if the application is attached to the policy.)
135.22  If,  after due consideration, you still wish to terminate your present policy and replace 
135.23  it with new coverage, read the copy of the application attached to your new policy and be 
135.24  sure that all questions are answered fully and correctly. Omissions or misstatements in 
135.25  the application could cause an otherwise valid claim to be denied. Carefully check the 
135.26  application and write to (company name and address) within 30 days if any information is 
135.27  not correct and complete, or if any past medical history has been left out of the application.
135.28                                                                                            
135.29                                                                              (Company Name)
135.30  EFFECTIVE DATE.This section is effective July 1, 2006.

135.31      Sec. 14. Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
135.32  to read:
135.33      Subd. 7. Life insurance policies. Life insurance policies that accelerate benefits for 
135.34  long-term care shall comply with this section if the policy being replaced is a long-term 
135.35  care insurance policy. If the policy being replaced is a life insurance policy, the insurer 
135.36  shall comply with the replacement requirements of sections 61A.53 to 61A.60. If a 
136.1   life insurance policy that accelerates benefits for long-term care is replaced by another 
136.2   such policy, the replacing insurer shall comply with both the long-term care and the life 
136.3   insurance replacement requirements. 
136.4   EFFECTIVE DATE.This section is effective July 1, 2006.

136.5       Sec. 15.  Minnesota Statutes 2004, section 62S.24, is amended by adding a subdivision 
136.6   to read:
136.7       Subd. 8. Exchange for long-term care partnership policy; addition of policy 
136.8   rider. (a) If authorized by federal law  or a federal waiver is granted with respect to the 
136.9   long-term care partnership program referenced in section 256B.0571, issuers of long-term 
136.10  care policies may voluntarily exchange a current long-term care insurance policy for a 
136.11  long-term care partnership policy that meets the requirements of Public Law 109-171, 
136.12  section 6021, after the effective date of the state plan amendment implementing the 
136.13  partnership program in this state.
136.14  (b) If authorized by federal law  or a federal waiver is granted with respect to the 
136.15  long-term care partnership program referenced in section 256B.0571, allowing an existing 
136.16  long-term care insurance policy to qualify as a partnership policy by addition of a policy 
136.17  rider, the issuer of the policy is authorized to add the rider to the policy after the effective 
136.18  date of the state plan amendment implementing the partnership program in this state.
136.19  (c) The commissioner, in cooperation with the commissioner of human services, 
136.20  shall pursue any federal law changes or waivers necessary to allow the implementation 
136.21  of paragraphs (a) and (b).
136.22  EFFECTIVE DATE.This section is effective July 1, 2006.

136.23      Sec. 16. Minnesota Statutes 2004, section 62S.25, subdivision 6, is amended to read:
136.24      Subd. 6. Claims denied. Each insurer shall report annually by June 30 the number 
136.25  of claims denied for any reason during the reporting period for each class of business, 
136.26  expressed as a percentage of claims denied, other than claims denied for failure to meet 
136.27  the waiting period or because of any applicable preexisting condition. For purposes of 
136.28  this subdivision, "claim" means a request for payment of benefits under an in-force policy 
136.29  regardless of whether the benefit claimed is covered under the policy or any terms or 
136.30  conditions of the policy have been met. 
136.31  EFFECTIVE DATE.This section is effective July 1, 2006.

136.32      Sec. 17. Minnesota Statutes 2004, section 62S.25, is amended by adding a subdivision 
136.33  to read:
137.1       Subd. 7. Reports.  Reports under this section shall be done on a statewide basis and 
137.2   filed with the commissioner. They shall include, at a minimum, the information in the 
137.3   format contained in Appendix E (Claim Denial Reporting Form) and in Appendix G 
137.4   (Replacement and Lapse Reporting Form) of the Long-Term Care Model Regulation 
137.5   adopted by the National Association of Insurance Commissioners. 
137.6   EFFECTIVE DATE.This section is effective July 1, 2006.

137.7       Sec. 18. Minnesota Statutes 2004, section 62S.26, is amended to read:
137.8   62S.26 LOSS RATIO.
137.9       Subdivision 1. Minimum loss ratio.  (a) The minimum loss ratio must be at least 60 
137.10  percent, calculated in a manner which provides for adequate reserving of the long-term 
137.11  care insurance risk. In evaluating the expected loss ratio, the commissioner shall give 
137.12  consideration to all relevant factors, including:
137.13  (1) statistical credibility of incurred claims experience and earned premiums;
137.14  (2) the period for which rates are computed to provide coverage;
137.15  (3) experienced and projected trends;
137.16  (4) concentration of experience within early policy duration;
137.17  (5) expected claim fluctuation;
137.18  (6) experience refunds, adjustments, or dividends;
137.19  (7) renewability features;
137.20  (8) all appropriate expense factors;
137.21  (9) interest;
137.22  (10) experimental nature of the coverage;
137.23  (11) policy reserves;
137.24  (12) mix of business by risk classification; and
137.25  (13) product features such as long elimination periods, high deductibles, and high 
137.26  maximum limits.
137.27      Subd. 2. Life insurance policies. Subdivision 1 shall not apply to life insurance 
137.28  policies that accelerate benefits for long-term care. A life insurance policy that funds 
137.29  long-term care benefits entirely by accelerating the death benefit is considered to provide 
137.30  reasonable benefits in relation to premiums paid, if the policy complies with all of the 
137.31  following provisions:
137.32  (1) the interest credited internally to determine cash value accumulations, including 
137.33  long-term care, if any, are guaranteed not to be less than the minimum guaranteed interest 
137.34  rate for cash value accumulations without long-term care set forth in the policy;
138.1   (2) the portion of the policy that provides life insurance benefits meets the 
138.2   nonforfeiture requirements of section 61A.24;
138.3   (3) the policy meets the disclosure requirements of sections 62S.09, 62S.10, and 
138.4   62S.11; and 
138.5   (4) an actuarial memorandum is filed with the insurance department that includes:
138.6   (i) a description of the basis on which the long-term care rates were determined;
138.7   (ii) a description of the basis for the reserves;
138.8   (iii) a summary of the type of policy, benefits, renewability, general marketing 
138.9   method, and limits on ages of issuance;
138.10  (iv) a description and a table of each actuarial assumption used. For expenses, 
138.11  an insurer must include percentage of premium dollars per policy and dollars per unit 
138.12  of benefits, if any;
138.13  (v) a description and a table of the anticipated policy reserves and additional reserves 
138.14  to be held in each future year for active lives;
138.15  (vi) the estimated average annual premium per policy and the average issue age;
138.16  (vii) a statement as to whether underwriting is performed at the time of application. 
138.17  The statement shall indicate whether underwriting is used and, if used, the statement 
138.18  shall include a description of the type or types of underwriting used, such as medical 
138.19  underwriting or functional assessment underwriting. Concerning a group policy, the 
138.20  statement shall indicate whether the enrollee or any dependent will be underwritten and 
138.21  when underwriting occurs; and
138.22  (viii) a description of the effect of the long-term care policy provision on the required 
138.23  premiums, nonforfeiture values, and reserves on the underlying life insurance policy, both 
138.24  for active lives and those in long-term care claim status. 
138.25      Subd. 3. Nonapplication.  (b) This section does not apply to policies or certificates 
138.26  that are subject to sections  62S.021,  62S.081, and  62S.265, and that comply with those 
138.27  sections. 
138.28  EFFECTIVE DATE.This section is effective July 1, 2006.

138.29      Sec. 19. Minnesota Statutes 2004, section 62S.266, subdivision 2, is amended to read:
138.30      Subd. 2. Requirement. (a) An insurer must offer each prospective policyholder a 
138.31  nonforfeiture benefit in compliance with the following requirements:
138.32  (1) a policy or certificate offered with nonforfeiture benefits must have coverage 
138.33  elements, eligibility, benefit triggers, and benefit length that are the same as coverage to be 
138.34  issued without nonforfeiture benefits. The nonforfeiture benefit included in the offer must 
138.35  be the benefit described in subdivision 5; and
139.1   (2)  the offer must be in writing if the nonforfeiture benefit is not otherwise described 
139.2   in the outline of coverage or other materials given to the prospective policyholder.
139.3   (b) When a group long-term care insurance policy is issued, the offer required in 
139.4   paragraph (a) shall be made to the group policy holder. However, if the policy is issued as 
139.5   group long-term care insurance as defined in section 62S.01, subdivision 15, clause (4), 
139.6   other than to a continuing care retirement community or other similar entity, the offering 
139.7   shall be made to each proposed certificate holder. 
139.8   EFFECTIVE DATE.This section is effective July 1, 2006.

139.9       Sec. 20. Minnesota Statutes 2004, section 62S.29, subdivision 1, is amended to read:
139.10      Subdivision 1. Requirements. An insurer or other entity marketing long-term care 
139.11  insurance coverage in this state, directly or through its producers, shall:
139.12  (1) establish marketing procedures and agent training requirements to assure that a 
139.13  any marketing activities, including any comparison of policies by its agents or other 
139.14  producers, are fair and accurate;
139.15  (2) establish marketing procedures to assure excessive insurance is not sold or issued;
139.16  (3) display prominently by type, stamp, or other appropriate means, on the first page 
139.17  of the outline of coverage and policy, the following:
139.18  "Notice to buyer: This policy may not cover all of the costs associated with 
139.19  long-term care incurred by the buyer during the period of coverage. The buyer is advised 
139.20  to review carefully all policy limitations.";
139.21  (4) provide copies of the disclosure forms required in section 62S.081, subdivision 
139.22  4, to the applicant; 
139.23  (5) inquire and otherwise make every reasonable effort to identify whether a 
139.24  prospective applicant or enrollee for long-term care insurance already has long-term care 
139.25  insurance and the types and amounts of the insurance;
139.26  (5) (6) establish auditable procedures for verifying compliance with this subdivision; 
139.27  and
139.28  (6) (7) if applicable, provide written notice to the prospective policyholder and 
139.29  certificate holder, at solicitation, that a senior insurance counseling program approved 
139.30  by the commissioner is available and the name, address, and telephone number of the 
139.31  program;
139.32  (8) use the terms "noncancelable" or "level premium" only when the policy or 
139.33  certificate conforms to section 62S.14; and 
139.34  (9) provide an explanation of contingent benefit upon lapse provided for in section 
139.35  62S.266.
140.1   EFFECTIVE DATE.This section is effective July 1, 2006.

140.2       Sec. 21. Minnesota Statutes 2004, section 62S.30, is amended to read:
140.3   62S.30 APPROPRIATENESS OF RECOMMENDED PURCHASE 
140.4   SUITABILITY.
140.5   In recommending the purchase or replacement of a long-term care insurance policy 
140.6   or certificate, an agent shall comply with section  60K.46, subdivision 4. 
140.7       Subdivision 1.  Standards. Every insurer or other entity marketing long-term care 
140.8   insurance shall:
140.9   (1) develop and use suitability standards to determine whether the purchase or 
140.10  replacement of long-term care insurance is appropriate for the needs of the applicant; 
140.11  (2) train its agents in the use of its suitability standards; and 
140.12  (3) maintain a copy of its suitability standards and make them available for 
140.13  inspection upon request by the commissioner.
140.14      Subd. 2. Procedures. (a) To determine whether the applicant meets the standards 
140.15  developed by the insurer or other entity marketing long-term care insurance, the agent 
140.16  and insurer or other entity marketing long-term care insurance shall develop procedures 
140.17  that take the following into consideration:
140.18  (1) the ability to pay for the proposed coverage and other pertinent financial 
140.19  information related to the purchase of the coverage;
140.20  (2) the applicant's goals or needs with respect to long-term care and the advantages 
140.21  and disadvantages of insurance to meet those goals or needs; and 
140.22  (3) the values, benefits, and costs of the applicant's existing insurance, if any, when 
140.23  compared to the values, benefits, and costs of the recommended purchase or replacement.
140.24  (b) The insurer or other entity marketing long-term care insurance, and the agent, 
140.25  where an agent is involved,  shall make reasonable efforts to obtain the information set 
140.26  forth in paragraph (a). The efforts shall include presentation to the applicant, at or prior 
140.27  to application, of the "Long-Term Care Insurance Personal Worksheet." The personal 
140.28  worksheet used by the insurer or other entity marketing long-term care insurance shall 
140.29  contain, at a minimum, the information in the format contained in Appendix B of the 
140.30  Long-Term Care Model Regulation adopted by the National Association of Insurance 
140.31  Commissioners, in not less than 12-point type. The insurer or other entity marketing 
140.32  long-term care insurance may request the applicant to provide additional information to 
140.33  comply with its suitability standards. The insurer or other entity marketing long-term care 
140.34  insurance shall file a copy of its personal worksheet with the commissioner. 
140.35  (c) A completed personal worksheet shall be returned to the insurer or other entity 
140.36  marketing long-term care insurance prior to consideration of the applicant for coverage, 
141.1   except the personal worksheet need not be returned for sales of employer group long-term 
141.2   care insurance to employees and their spouses. The sale or dissemination by the insurer 
141.3   or other entity marketing long-term care insurance, or the agent, of information obtained 
141.4   through the personal worksheet, is prohibited. 
141.5   (d) The insurer or other entity marketing long-term care insurance shall use the 
141.6   suitability standards it has developed under this section in determining whether issuing 
141.7   long-term care insurance coverage to an applicant is appropriate. Agents shall use the 
141.8   suitability standards developed by the insurer or other entity marketing long-term care 
141.9   insurance in marketing long-term care insurance. 
141.10  (e) At the same time as the personal worksheet is provided to the applicant, the 
141.11  disclosure form entitled "Things You Should Know Before You Buy Long-Term Care 
141.12  Insurance" shall be provided. The form shall be in the format contained in Appendix C of 
141.13  the Long-Term Care Insurance Model Regulation adopted by the National Association of 
141.14  Insurance Commissioners in not less than 12-point type. 
141.15  (f) If the insurer or other entity marketing long-term care insurance determines 
141.16  that the applicant does not meet its financial suitability standards, or if the applicant has 
141.17  declined to provide the information, the insurer or other entity marketing long-term 
141.18  care insurance may reject the application. In the alternative, the insurer or other entity 
141.19  marketing long-term care insurance shall send the applicant a letter similar to Appendix D 
141.20  of the Long-Term Care Insurance Model Regulation adopted by the National Association 
141.21  of Insurance Commissioners. However, if the applicant has declined to provide financial 
141.22  information, the insurer or other entity marketing long-term care insurance may use some 
141.23  other method to verify the applicant's intent. The applicant's returned letter or a record of 
141.24  the alternative method of verification shall be made part of the applicant's file. 
141.25      Subd. 3. Reports. The insurer or other entity marketing long-term care insurance 
141.26  shall report annually to the commissioner the total number of applications received from 
141.27  residents of this state, the number of those who declined to provide information on the 
141.28  personal worksheet, the number of applicants who did not meet the suitability standards, 
141.29  and the number of those who chose to confirm after receiving a suitability letter. 
141.30      Subd. 4. Application. This section shall not apply to life insurance policies that 
141.31  accelerate benefits for long-term care. 
141.32  EFFECTIVE DATE.This section is effective July 1, 2006.

141.33      Sec. 22. [62S.315] PRODUCER TRAINING.
141.34  The commissioner shall approve producer training requirements in accordance with 
141.35  the NAIC Long-Term Care Insurance Model Act provisions. The commissioner of the 
142.1   Department of Human Services shall provide technical assistance and information to the 
142.2   commissioner in accordance with Public Law 109-171, section 6021.
142.3   EFFECTIVE DATE.This section is effective July 1, 2006.

142.4       Sec. 23. Minnesota Statutes 2004, section 144.6501, subdivision 6, is amended to read:
142.5       Subd. 6. Medical assistance payment. (a) An admission contract for a facility that 
142.6   is certified for participation in the medical assistance program must state that neither the 
142.7   prospective resident, nor anyone on the resident's behalf, is required to pay privately any 
142.8   amount for which the resident's care at the facility has been approved for payment by 
142.9   medical assistance or to make any kind of donation, voluntary or otherwise. Except as 
142.10  permitted under section 6015 of the Deficit Reduction Act of 2005, Public Law 109-171, 
142.11  an admission contract must state that the facility does not require as a condition of 
142.12  admission, either in its admission contract or by oral promise before signing the admission 
142.13  contract, that residents remain in private pay status for any period of time.
142.14  (b) The admission contract must state that upon presentation of proof of eligibility, 
142.15  the facility will submit a medical assistance claim for reimbursement and will return any 
142.16  and all payments made by the resident, or by any person on the resident's behalf, for 
142.17  services covered by medical assistance, upon receipt of medical assistance payment.
142.18  (c) A facility that participates in the medical assistance program shall not charge for 
142.19  the day of the resident's discharge from the facility or subsequent days.
142.20  (d) If a facility's charges incurred by the resident are delinquent for 30 days, and 
142.21  no person has agreed to apply for medical assistance for the resident, the facility may 
142.22  petition the court under chapter 525 to appoint a representative for the resident in order to 
142.23  apply for medical assistance for the resident.
142.24  (e) The remedy provided in this subdivision does not preclude a facility from seeking 
142.25  any other remedy available under other laws of this state.

142.26      Sec. 24. Minnesota Statutes 2004, section 256B.02, subdivision 9, is amended to read:
142.27      Subd. 9. Private health care coverage. "Private health care coverage" means any 
142.28  plan regulated by chapter 62A, 62C or 64B. Private health care coverage also includes 
142.29  any self-insurance self-insured plan providing health care benefits, pharmacy benefit 
142.30  manager, service benefit plan, managed care organization, and other parties that are by 
142.31  contract legally responsible for payment of a claim for a health care item or service for an 
142.32  individual receiving medical benefits under chapter 256B, 256D, or 256L.

142.33      Sec. 25. Minnesota Statutes 2004, section 256B.056, subdivision 2, is amended to read:
142.34      Subd. 2. Homestead; exclusion  and homestead equity limit for institutionalized 
142.35  persons. (a) The homestead shall be excluded for the first six calendar months of a 
143.1   person's stay in a long-term care facility and shall continue to be excluded for as long as 
143.2   the recipient can be reasonably expected to return to the homestead. For purposes of 
143.3   this subdivision, "reasonably expected to return to the homestead" means the recipient's 
143.4   attending physician has certified that the expectation is reasonable, and the recipient can 
143.5   show that the cost of care upon returning home will be met through medical assistance 
143.6   or other sources. The homestead shall continue to be excluded for persons residing in 
143.7   a long-term care facility if it is used as a primary residence by one of the following 
143.8   individuals:
143.9   (a) (1) the spouse;
143.10  (b) (2) a child under age 21;
143.11  (c) (3) a child of any age who is blind or permanently and totally disabled as defined 
143.12  in the supplemental security income program;
143.13  (d) (4) a sibling who has equity interest in the home and who resided in the home for 
143.14  at least one year immediately before the date of the person's admission to the facility; or
143.15  (e) (5) a child of any age, or, subject to federal approval, a grandchild of any age, 
143.16  who resided in the home for at least two years immediately before the date of the person's 
143.17  admission to the facility, and who provided care to the person that permitted the person to 
143.18  reside at home rather than in an institution.
143.19  (b) Effective for applications filed on or after July 1, 2006, and for renewals after 
143.20  July 1, 2006, for persons who first applied for payment of long-term care services on 
143.21  or after January 2, 2006, the equity interest in the homestead of an individual whose 
143.22  eligibility for long-term care services is determined on or after January 1, 2006, shall not 
143.23  exceed $500,000, unless it is the lawful residence of the individual's spouse or child 
143.24  who is under age 21, blind, or disabled. The amount specified in this paragraph shall be 
143.25  increased beginning in year 2011, from year to year based on the percentage increase in 
143.26  the Consumer Price Index for all urban consumers (all items; United States city average), 
143.27  rounded to the nearest $1,000. This provision may be waived in the case of demonstrated 
143.28  hardship by a process to be determined by the secretary of health and human services 
143.29  pursuant to section 6014 of the Deficit Reduction Act of 2005, Public Law 109-171.

143.30      Sec. 26. Minnesota Statutes 2004, section 256B.056, is amended by adding a 
143.31  subdivision to read:
143.32      Subd. 3e. Treatment of continuing care retirement and life care community 
143.33  entrance fees. An entrance fee paid by an individual to a continuing care retirement or 
143.34  life care community shall be treated as an available asset to the extent that:
144.1   (1) the individual has the ability to use the entrance fee, or the contract provides that 
144.2   the entrance fee may be used, to pay for care should other resources or income of the 
144.3   individual be insufficient to pay for care;
144.4   (2) the individual is eligible for a refund of any remaining entrance fees when 
144.5   the individual dies or terminates the continuing care retirement or life care community 
144.6   contract and leaves the community; and
144.7   (3) the entrance fee does not confer an ownership interest in the continuing care 
144.8   retirement or life care community.

144.9       Sec. 27. Minnesota Statutes 2004, section 256B.056, is amended by adding a 
144.10  subdivision to read:
144.11      Subd. 11. Treatment of annuities. (a) Any individual applying for or seeking 
144.12  recertification of eligibility for medical assistance payment of long-term care services 
144.13  shall provide a complete description of any interest either the individual or the individual's 
144.14  spouse has in annuities. The individual and the individual's spouse shall furnish the 
144.15  agency responsible for determining eligibility with complete current copies of their 
144.16  annuities and related documents for review as part of the application process on disclosure 
144.17  forms provided by the department as part of their application.
144.18  (b) The disclosure form shall include a statement that the department becomes the 
144.19  remainder beneficiary under the annuity or similar financial instrument by virtue of the 
144.20  receipt of medical assistance. The disclosure form shall include a notice to the issuer of 
144.21  the department's right under this section as a preferred remainder beneficiary under the 
144.22  annuity or similar financial instrument for medical assistance furnished to the individual 
144.23  or the individual's spouse, and require the issuer to provide confirmation that a remainder 
144.24  beneficiary designation has been made and to notify the county agency when there is a 
144.25  change in the amount of the income or principal being withdrawn from the annuity or 
144.26  other similar financial instrument at the time of the most recent disclosure required under 
144.27  this section. The individual and the individual's spouse shall execute separate disclosure 
144.28  forms for each annuity or similar financial instrument that they are required to disclose 
144.29  under this section and in which they have an interest.
144.30  (c) An issuer of an annuity or similar financial instrument who receives notice on a 
144.31  disclosure form as described in paragraph (b) shall provide confirmation to the requesting 
144.32  agency that a remainder beneficiary designating the state has been made and shall notify 
144.33  the county agency when there is a change in the amount of income or principal being 
144.34  withdrawn from the annuity or other similar financial instrument. The county agency shall 
144.35  provide the issuer with the name, address, and telephone number of a unit within the 
144.36  department that the issuer can contact to comply with this paragraph.

145.1       Sec. 28. Minnesota Statutes 2005 Supplement, section 256B.0571, is amended to read:
145.2   256B.0571 LONG-TERM CARE PARTNERSHIP PROGRAM.
145.3       Subdivision 1. Definitions. For purposes of this section, the following terms have 
145.4   the meanings given them.
145.5       Subd. 2. Home care service. "Home care service" means care described in section 
145.6   144A.43.
145.7       Subd. 3. Long-term care insurance. "Long-term care insurance" means a policy 
145.8   described in section 62S.01.
145.9       Subd. 4. Medical assistance. "Medical assistance" means the program of medical 
145.10  assistance established under section 256B.01.
145.11      Subd. 5. Nursing home. "Nursing home" means a nursing home as described 
145.12  in section 144A.01.
145.13      Subd. 6. Partnership policy. "Partnership policy" means a long-term care insurance 
145.14  policy that meets the requirements under subdivision 10 or 11, regardless of when the 
145.15  policy and was first issued on or after the effective date of the state plan amendment 
145.16  implementing the partnership program in Minnesota.
145.17      Subd. 7. Partnership program. "Partnership program" means the Minnesota 
145.18  partnership for long-term care program established under this section.
145.19      Subd. 7a. Protected assets. "Protected assets" means assets or proceeds of assets 
145.20  that are protected from recovery under subdivisions 13 and 15.
145.21      Subd. 8. Program established. (a) The commissioner, in cooperation with the 
145.22  commissioner of commerce, shall establish the Minnesota partnership for long-term care 
145.23  program to provide for the financing of long-term care through a combination of private 
145.24  insurance and medical assistance.
145.25  (b) An individual who meets the requirements in this paragraph is eligible to 
145.26  participate in the partnership program. The individual must:
145.27  (1) be a Minnesota resident at the time coverage first became effective under the 
145.28  partnership policy;
145.29  (2) purchase a partnership policy that is delivered, issued for delivery, or renewed on 
145.30  or after the effective date of Laws 2005, First Special Session chapter 4, article 7, section 
145.31  5, and maintain the partnership policy in effect throughout the period of participation 
145.32  in the partnership program be a beneficiary of a partnership policy that (i) is issued on 
145.33  or after the effective date of the state plan amendment implementing the partnership 
145.34  program in Minnesota, or (ii) qualifies as a partnership policy under the provisions of 
145.35  subdivision 8a; and
146.1   (3) exhaust the minimum have exhausted all of the benefits under the partnership 
146.2   policy as described in this section. Benefits received under a long-term care insurance 
146.3   policy before the effective date of Laws 2005, First Special Session chapter 4, article 7, 
146.4   section 5 July 1, 2006, do not count toward the exhaustion of benefits required in this 
146.5   subdivision.
146.6       Subd. 8a. Exchange for long-term care partnership policy; addition of policy 
146.7   rider. (a) If authorized by federal law or federal approval is granted with respect to 
146.8   the partnership program established in this section, a long-term care insurance policy 
146.9   that was issued before the effective date of the state plan amendment implementing the 
146.10  partnership program in Minnesota that was exchanged after the effective date of the state 
146.11  plan amendment for a long-term care partnership policy that meets the requirements of 
146.12  Public Law 109-171, section 6021, qualifies as a long-term care partnership policy under 
146.13  this section, unless the policy is paying benefits on the date the policy is exchanged.
146.14  (b) If authorized by federal law or federal approval is granted with respect to the 
146.15  partnership program established in this section, a long-term care insurance policy that was 
146.16  issued before the effective date of the state plan amendment implementing the partnership 
146.17  program in Minnesota that has a rider added after the effective date of the state plan 
146.18  amendment that meets the requirements of Public Law 109-171, section 6021, qualifies 
146.19  as a long-term care partnership policy under this section, unless the policy is paying 
146.20  benefits on the date the rider is added.
146.21      Subd. 9. Medical assistance eligibility. (a) Upon application of for medical 
146.22  assistance program payment of long-term care services by an individual who meets the 
146.23  requirements described in subdivision 8, the commissioner shall determine the individual's 
146.24  eligibility for medical assistance according to paragraphs (b) and (c) to (i).
146.25  (b) After disregarding financial determining assets exempted under medical 
146.26  assistance eligibility requirements subject to the asset limit under section 256B.056, 
146.27  subdivision 3 or 3c, or section 256B.057, subdivision 9 or 10, the commissioner shall 
146.28  disregard an additional amount of financial assets equal allow the individual to designate 
146.29  assets to be protected from recovery under subdivisions 13 and 15 up to the dollar amount 
146.30  of coverage the benefits utilized under the partnership policy. Designated assets shall be 
146.31  disregarded for purposes of determining eligibility for payment of long-term care services.
146.32  (c) The commissioner shall consider the individual's income according to medical 
146.33  assistance eligibility requirements. The individual shall identify the designated assets and 
146.34  the full fair market value of those assets and designate them as assets to be protected at 
146.35  the time of initial application for medical assistance. The full fair market value of real 
146.36  property or interests in real property shall be based on the most recent full assessed value 
147.1   for property tax purposes for the real property, unless the individual provides a complete 
147.2   professional appraisal by a licensed appraiser to establish the full fair market value. The 
147.3   extent of a life estate in real property shall be determined using the life estate table in the 
147.4   health care program's manual. Ownership of any asset in joint tenancy shall be treated as 
147.5   ownership as tenants in common for purposes of its designation as a disregarded asset. 
147.6   The unprotected value of any protected asset is subject to estate recovery according to 
147.7   subdivisions 13 and 15.
147.8   (d) The right to designate assets to be protected is personal to the individual and 
147.9   ends when the individual dies, except as otherwise provided in subdivisions 13 and 
147.10  15. It does not include the increase in the value of the protected asset and the income, 
147.11  dividends, or profits from the asset. It may be exercised by the individual or by anyone 
147.12  with the legal authority to do so on the individual's behalf. It shall not be sold, assigned, 
147.13  transferred, or given away.
147.14  (e) If the dollar amount of the benefits utilized under a partnership policy is greater 
147.15  than the full fair market value of all assets protected at the time of the application for 
147.16  medical assistance long-term care services, the individual may designate additional assets 
147.17  that become available during the individual's lifetime for protection under this section. 
147.18  The individual must make the designation in writing to the county agency no later than 
147.19  the last date on which the individual must report a change in circumstances to the county 
147.20  agency, as provided for under the medical assistance program. Any excess used for this 
147.21  purpose shall not be available to the individual's estate to protect assets in the estate from 
147.22  recovery under section 256B.15 or 524.3-1202, or otherwise.
147.23  (f) This section applies only to estate recovery under United States Code, title 42, 
147.24  section 1396p, subsections (a) and (b), and does not apply to recovery authorized by other 
147.25  provisions of federal law, including, but not limited to, recovery from trusts under United 
147.26  States Code, title 42, section 1396p, subsection (d)(4)(A) and (C), or to recovery from 
147.27  annuities, or similar legal instruments, subject to section 6012, subsections (a) and (b), of 
147.28  the Deficit Reduction Act of 2005, Public Law 109-171.
147.29  (g) An individual's protected assets owned by the individual's spouse who applies 
147.30  for payment of medical assistance long-term care services shall not be protected assets or 
147.31  disregarded for purposes of eligibility of the individual's spouse solely because they were 
147.32  protected assets of the individual.
147.33  (h) Assets designated under this subdivision shall not be subject to penalty under 
147.34  section 256B.0595.
148.1   (i) The commissioner shall otherwise determine the individual's eligibility 
148.2   for payment of long-term care services according to medical assistance eligibility 
148.3   requirements.
148.4       Subd. 10. Dollar-for-dollar asset protection policies Long-term care partnership 
148.5   policy inflation protection. (a) A dollar-for-dollar asset protection policy must meet all 
148.6   of the requirements in paragraphs (b) to (e).
148.7   (b) The policy must satisfy the requirements of chapter 62S.
148.8   (c) The policy must offer an elimination period of not more than 180 days for an 
148.9   adjusted premium.
148.10  (d) The policy must satisfy the requirements established by the commissioner of 
148.11  human services under subdivision 14.
148.12  (e) Minimum daily benefits shall be $130 for nursing home care or $65 for home 
148.13  care, with inflation protection provided in the policy as described in section 62S.23, 
148.14  subdivision 1, clause (1). These minimum daily benefit amounts shall be adjusted by the 
148.15  commissioner on October 1 of each year by a percentage equal to the inflation protection 
148.16  feature described in section 62S.23, subdivision 1, clause (1), for purposes of setting 
148.17  minimum requirements that a policy must meet in future years in order to initially qualify 
148.18  as an approved policy under this subdivision. Adjusted minimum daily benefit amounts 
148.19  shall be rounded to the nearest whole dollar.
148.20  A long-term care partnership policy must provide the inflation protection described 
148.21  in this paragraph. If the policy is sold to an individual who:
148.22  (1) has not attained age 61 as of the date of purchase, the policy must provide 
148.23  compound annual inflation protection;
148.24  (2) has attained age 61, but has not attained age 76 as of such date, the policy must 
148.25  provide some level of inflation protection; and 
148.26  (3) has attained age 76 as of such date, the policy may, but is not required to, provide 
148.27  some level of inflation protection.
148.28      Subd. 11. Total asset protection policies. (a) A total asset protection policy must 
148.29  meet all of the requirements in subdivision 10, paragraphs (b) to (d), and this subdivision.
148.30  (b) Minimum coverage shall be for a period of not less than three years and for a 
148.31  dollar amount equal to 36 months of nursing home care at the minimum daily benefit rate 
148.32  determined and adjusted under paragraph (c).
148.33  (c) Minimum daily benefits shall be $150 for nursing home care or $75 for home 
148.34  care, with inflation protection provided in the policy as described in section 62S.23, 
148.35  subdivision 1, clause (1). These minimum daily benefit amounts shall also be adjusted 
148.36  by the commissioner on October 1 of each year by a percentage equal to the inflation 
149.1   protection feature described in section 62S.23, subdivision 1, clause (1), for purposes of 
149.2   setting minimum requirements that a policy must meet in future years in order to initially 
149.3   qualify as an approved policy under this subdivision. Adjusted minimum daily benefit 
149.4   amounts shall be rounded to the nearest whole dollar.
149.5   (d) The policy must cover all of the following services:
149.6   (1) nursing home stay;
149.7   (2) home care service; and
149.8   (3) care management.
149.9       Subd. 12. Compliance with federal law. An issuer of a partnership policy must 
149.10  comply with any federal law authorizing partnership policies in Minnesota Public Law 
149.11  109-171, section 6021, including any federal regulations, as amended, adopted under that 
149.12  law. This subdivision does not require compliance with any provision of this federal 
149.13  law until the date upon which the law requires compliance with the provision. The 
149.14  commissioner has authority to enforce this subdivision.
149.15      Subd. 13. Limitations on estate recovery. (a) For an individual who exhausts the 
149.16  minimum benefits of a dollar-for-dollar asset protection policy under subdivision 10, and 
149.17  is determined eligible for medical assistance under subdivision 9, the state shall limit 
149.18  recovery under the provisions of section 256B.15 against the estate of the individual 
149.19  or individual's spouse for medical assistance benefits received by that individual to an 
149.20  amount that exceeds the dollar amount of coverage utilized under the partnership policy. 
149.21  Protected assets of the individual shall not be subject to recovery under section 256B.15 
149.22  or 524.3-1201 for medical assistance or alternative care paid on behalf of the individual. 
149.23  Protected assets of the individual in the estate of the individual's surviving spouse shall 
149.24  not be liable to pay a claim for recovery of medical assistance paid for the predeceased 
149.25  individual that is filed in the estate of the surviving spouse under section 256B.15. 
149.26  Protected assets of the individual shall not be protected assets in the surviving spouse's 
149.27  estate by reason of the preceding sentence and shall be subject to recovery under section 
149.28  256B.15 or 524.3-1201 for medical assistance paid on behalf of the surviving spouse.
149.29  (b) For an individual who exhausts the minimum benefits of a total asset protection 
149.30  policy under subdivision 11, and is determined eligible for medical assistance under 
149.31  subdivision 9, the state shall not seek recovery under the provisions of section 256B.15 
149.32  against the estate of the individual or individual's spouse for medical assistance benefits 
149.33  received by that individual. The personal representative may protect the full fair market 
149.34  value of an individual's unprotected assets in the individual's estate in an amount equal 
149.35  to the unused amount of asset protection the individual had on the date of death. The 
149.36  personal representative shall apply the asset protection so that the full fair market value of 
150.1   any unprotected asset in the estate is protected. When or if the asset protection available 
150.2   to the personal representative is or becomes less than the full fair market value of any 
150.3   remaining unprotected asset, it shall be applied to partially protect one unprotected asset.
150.4   (c) The asset protection described in paragraph (a) terminates with respect to an asset 
150.5   includable in the individual's estate under chapter 524 or section 256B.15:
150.6   (1) when the estate distributes the asset; or
150.7   (2) if the estate of the individual has not been probated within one year from the 
150.8   date of death.
150.9   (d) If an individual owns a protected asset on the date of death and the estate is 
150.10  opened for probate more than one year after death, the state or a county agency may file 
150.11  and collect claims in the estate under section 256B.15, and no statute of limitations in 
150.12  chapter 524 that would otherwise limit or bar the claim shall apply.
150.13  (e) Except as otherwise provided, nothing in this section shall limit or prevent 
150.14  recovery of medical assistance.
150.15      Subd. 14. Implementation. (a) If federal law is amended or a federal waiver is 
150.16  granted to permit implementation of this section, the commissioner, in consultation with 
150.17  the commissioner of commerce, may alter the requirements of subdivisions 10 and 11, 
150.18  and may establish additional requirements for approved policies in order to conform with 
150.19  federal law or waiver authority. In establishing these requirements, the commissioner shall 
150.20  seek to maximize purchase of qualifying policies by Minnesota residents while controlling 
150.21  medical assistance costs.
150.22  (b) The commissioner is authorized to suspend implementation of this section 
150.23  until the next session of the legislature if the commissioner, in consultation with the 
150.24  commissioner of commerce, determines that the federal legislation or federal waiver 
150.25  authorizing a partnership program in Minnesota is likely to impose substantial unforeseen 
150.26  costs on the state budget.
150.27  (c) The commissioner must take action under paragraph (a) or (b) within 45 days of 
150.28  final federal action authorizing a partnership policy in Minnesota.
150.29  (d) The commissioner must notify the appropriate legislative committees of 
150.30  action taken under this subdivision within 50 days of final federal action authorizing a 
150.31  partnership policy in Minnesota.
150.32  (e) The commissioner must publish a notice in the State Register of implementation 
150.33  decisions made under this subdivision as soon as practicable. (a) The commissioner, in 
150.34  cooperation with the commissioner of commerce, may alter the requirements of this 
150.35  section so as to be in compliance with forthcoming requirements of the federal Department 
150.36  of Health and Human Services and the National Association of Insurance Commissioners 
151.1   necessary to implement the long-term care partnership program requirements of Public 
151.2   Law 109-171, section 6021.
151.3   (b) The commissioner shall submit a state plan amendment to the federal government 
151.4   to implement the long-term care partnership program in accordance with this section.
151.5       Subd. 15. Limitation on liens. (a) An individual's interest in real property shall 
151.6   not be subject to a medical assistance lien or a notice of potential claim while and to the 
151.7   extent it is protected under subdivision 9.
151.8   (b) Medical assistance liens or liens arising under notices of potential claims against 
151.9   an individual's interests in real property in the individual's estate that are designated as 
151.10  protected under subdivision 13, paragraph (b), shall be released to the extent of the dollar 
151.11  value of the protection applied to the interest.
151.12  (c) If an interest in real property is protected from a lien for recovery of medical 
151.13  assistance paid on behalf of the individual under paragraph (a) or (b), no  lien for recovery 
151.14  of medical assistance paid on behalf of that individual shall be filed against the protected 
151.15  interest in real property after it is distributed to the individual's heirs or devisees.
151.16      Subd. 16. Burden of proof. Any individual or the personal representative of the 
151.17  individual's estate who asserts that an asset is a disregarded or protected asset under 
151.18  this section in connection with any determination of eligibility for benefits under the 
151.19  medical assistance program or any appeal, case, controversy, or other proceedings, shall 
151.20  have the initial burden of:
151.21  (1) documenting and proving by clear and convincing evidence that the asset or 
151.22  source of funds for the asset in question was designated as disregarded or protected;
151.23  (2) tracing the asset and the proceeds of the asset from that time forward; and 
151.24  (3) documenting that the asset or proceeds of the asset remained disregarded or 
151.25  protected at all relevant times.
151.26  EFFECTIVE DATE.This section is effective July 1, 2006.

151.27      Sec. 29. [256B.0594] PAYMENT OF BENEFITS FROM AN ANNUITY.
151.28  When payment becomes due under an annuity that names the department a 
151.29  remainder beneficiary as described in section 256B.056, subdivision 11, the issuer shall 
151.30  request and the department shall, within 45 days after receipt of the request, provide a 
151.31  written statement of the total amount of the medical assistance paid. Upon timely receipt 
151.32  of the written statement of the amount of medical assistance paid, the issuer shall pay the 
151.33  department an amount equal to the lesser of the amount due the department under the 
151.34  annuity or the total amount of medical assistance paid on behalf of the individual or the 
151.35  individual's spouse. Any amounts remaining after the issuer's payment to the department 
152.1   shall be payable according to the terms of the annuity or similar financial instrument. The 
152.2   county agency or the department shall provide the issuer with the name, address, and 
152.3   telephone number of a unit within the department the issuer can contact to comply with this 
152.4   section. The requirements of section 72A.201, subdivision 4, clause (3), shall not apply to 
152.5   payments made under this section until the issuer has received final payment information 
152.6   from the department, if the issuer has notified the beneficiary of the requirements of this 
152.7   section at the time it initially requests payment information from the department.

152.8       Sec. 30. Minnesota Statutes 2004, section 256B.0595, subdivision 1, is amended to 
152.9   read:
152.10      Subdivision 1. Prohibited transfers. (a) For transfers of assets made on or before 
152.11  August 10, 1993, if a person or the person's spouse has given away, sold, or disposed of, 
152.12  for less than fair market value, any asset or interest therein, except assets other than the 
152.13  homestead that are excluded under the supplemental security program, within 30 months 
152.14  before or any time after the date of institutionalization if the person has been determined 
152.15  eligible for medical assistance, or within 30 months before or any time after the date of the 
152.16  first approved application for medical assistance if the person has not yet been determined 
152.17  eligible for medical assistance, the person is ineligible for long-term care services for the 
152.18  period of time determined under subdivision 2.
152.19  (b) Effective for transfers made after August 10, 1993, a person, a person's spouse, 
152.20  or any person, court, or administrative body with legal authority to act in place of, on 
152.21  behalf of, at the direction of, or upon the request of the person or person's spouse, may not 
152.22  give away, sell, or dispose of, for less than fair market value, any asset or interest therein, 
152.23  except assets other than the homestead that are excluded under the supplemental security 
152.24  income program, for the purpose of establishing or maintaining medical assistance 
152.25  eligibility. This applies to all transfers, including those made by a community spouse 
152.26  after the month in which the institutionalized spouse is determined eligible for medical 
152.27  assistance. For purposes of determining eligibility for long-term care services, any transfer 
152.28  of such assets within 36 months before or any time after an institutionalized person applies 
152.29  for medical assistance, or 36 months before or any time after a medical assistance recipient 
152.30  becomes institutionalized, for less than fair market value may be considered. Any such 
152.31  transfer is presumed to have been made for the purpose of establishing or maintaining 
152.32  medical assistance eligibility and the person is ineligible for long-term care services for 
152.33  the period of time determined under subdivision 2, unless the person furnishes convincing 
152.34  evidence to establish that the transaction was exclusively for another purpose, or unless 
152.35  the transfer is permitted under subdivision 3 or 4. Notwithstanding the provisions of this 
152.36  paragraph,  In the case of payments from a trust or portions of a trust that are considered 
153.1   transfers of assets under federal law, or in the case of any other disposal of assets made on 
153.2   or after February 8, 2006, any transfers made within 60 months before or any time after an 
153.3   institutionalized person applies for medical assistance and within 60 months before or any 
153.4   time after a medical assistance recipient becomes institutionalized, may be considered.
153.5   (c) This section applies to transfers, for less than fair market value, of income 
153.6   or assets, including assets that are considered income in the month received, such as 
153.7   inheritances, court settlements, and retroactive benefit payments or income to which the 
153.8   person or the person's spouse is entitled but does not receive due to action by the person, 
153.9   the person's spouse, or any person, court, or administrative body with legal authority 
153.10  to act in place of, on behalf of, at the direction of, or upon the request of the person or 
153.11  the person's spouse.
153.12  (d) This section applies to payments for care or personal services provided by a 
153.13  relative, unless the compensation was stipulated in a notarized, written agreement which 
153.14  was in existence when the service was performed, the care or services directly benefited 
153.15  the person, and the payments made represented reasonable compensation for the care 
153.16  or services provided. A notarized written agreement is not required if payment for the 
153.17  services was made within 60 days after the service was provided.
153.18  (e) This section applies to the portion of any asset or interest that a person, a person's 
153.19  spouse, or any person, court, or administrative body with legal authority to act in place of, 
153.20  on behalf of, at the direction of, or upon the request of the person or the person's spouse, 
153.21  transfers to any annuity that exceeds the value of the benefit likely to be returned to the 
153.22  person or spouse while alive, based on estimated life expectancy using the life expectancy 
153.23  tables employed by the supplemental security income program to determine the value 
153.24  of an agreement for services for life. The commissioner may adopt rules reducing life 
153.25  expectancies based on the need for long-term care. This section applies to an annuity 
153.26  described in this paragraph purchased on or after March 1, 2002, that:
153.27  (1) is not purchased from an insurance company or financial institution that is 
153.28  subject to licensing or regulation by the Minnesota Department of Commerce or a similar 
153.29  regulatory agency of another state;
153.30  (2) does not pay out principal and interest in equal monthly installments; or
153.31  (3) does not begin payment at the earliest possible date after annuitization.
153.32  (f) Effective for transactions, including the purchase of an annuity, occurring on or 
153.33  after February 8, 2006, the purchase of an annuity by or on behalf of an individual who 
153.34  has applied for or is receiving long-term care services or the individual's spouse shall be 
153.35  treated as the disposal of an asset for less than fair market value unless the department is 
153.36  named as the remainder beneficiary in first position for an amount equal to at least the total 
154.1   amount of medical assistance paid on behalf of the individual or the individual's spouse; 
154.2   or the department is named as the remainder beneficiary in second position for an amount 
154.3   equal to at least the total amount of medical assistance paid on behalf of the individual or 
154.4   the individual's spouse after the individual's community spouse or minor or disabled child 
154.5   and is named as the remainder beneficiary in the first position if the community spouse or 
154.6   a representative of the minor or disabled child disposes of the remainder for less than fair 
154.7   market value. Any subsequent change to the designation of the department as a remainder 
154.8   beneficiary shall result in the annuity being treated as a disposal of assets for less than fair 
154.9   market value. The amount of such transfer shall be the maximum amount the individual 
154.10  or the individual's spouse could receive from the annuity or similar financial instrument. 
154.11  Any change in the amount of the income or principal being withdrawn from the annuity 
154.12  or other similar financial instrument at the time of the most recent disclosure shall be 
154.13  deemed to be a transfer of assets for less than fair market value unless the individual or the 
154.14  individual's spouse demonstrates that the transaction was for fair market value.
154.15  (g) Effective for transactions, including the purchase of an annuity, occurring on 
154.16  or after February 8, 2006, the purchase of an annuity by or on behalf of an individual 
154.17  applying for or receiving long-term care services shall be treated as a disposal of assets 
154.18  for less than fair market value unless it is:
154.19  (i) an annuity described in subsection (b) or (q) of section 408 of the Internal 
154.20  Revenue Code of 1986; or 
154.21  (ii) purchased with proceeds from:
154.22  (A) an account or trust described in subsection (a), (c), or (p) of section 408 of the 
154.23  Internal Revenue Code;
154.24  (B) a simplified employee pension within the meaning of section 408(k) of the 
154.25  Internal Revenue Code; or
154.26  (C) a Roth IRA described in section 408A of the Internal Revenue Code; or
154.27  (iii) an annuity that is irrevocable and nonassignable; is actuarially sound as 
154.28  determined in accordance with actuarial publications of the Office of the Chief Actuary of 
154.29  the Social Security Administration; and provides for payments in equal amounts during 
154.30  the term of the annuity, with no deferral and no balloon payments made.
154.31  (f) (h) For purposes of this section, long-term care services include services in a 
154.32  nursing facility, services that are eligible for payment according to section  256B.0625, 
154.33  subdivision 2, because they are provided in a swing bed, intermediate care facility for 
154.34  persons with mental retardation, and home and community-based services provided 
154.35  pursuant to sections  256B.0915,  256B.092, and  256B.49. For purposes of this subdivision 
154.36  and subdivisions 2, 3, and 4, "institutionalized person" includes a person who is an 
155.1   inpatient in a nursing facility or in a swing bed, or intermediate care facility for persons 
155.2   with mental retardation or who is receiving home and community-based services under 
155.3   sections  256B.0915,  256B.092, and  256B.49. 
155.4   (i) This section applies to funds used to purchase a promissory note, loan, or 
155.5   mortgage unless the note, loan, or mortgage:
155.6   (1) has a repayment term that is actuarially sound;
155.7   (2) provides for payments to be made in equal amounts during the term of the loan, 
155.8   with no deferral and no balloon payments made; and
155.9   (3) prohibits the cancellation of the balance upon the death of the lender.
155.10  In the case of a promissory note, loan, or mortgage that does not meet an exception 
155.11  in clauses (1) to (3), the value of such note, loan, or mortgage shall be the outstanding 
155.12  balance due as of the date of the individual's application for long-term care services.
155.13  (j) This section applies to the purchase of a life estate interest in another individual's 
155.14  home unless the purchaser resides in the home for a period of at least one year after the 
155.15  date of purchase.

155.16      Sec. 31. Minnesota Statutes 2005 Supplement, section 256B.0595, subdivision 2, 
155.17  is amended to read:
155.18      Subd. 2. Period of ineligibility. (a) For any uncompensated transfer occurring on or 
155.19  before August 10, 1993, the number of months of ineligibility for long-term care services 
155.20  shall be the lesser of 30 months, or the uncompensated transfer amount divided by the 
155.21  average medical assistance rate for nursing facility services in the state in effect on the 
155.22  date of application. The amount used to calculate the average medical assistance payment 
155.23  rate shall be adjusted each July 1 to reflect payment rates for the previous calendar year. 
155.24  The period of ineligibility begins with the month in which the assets were transferred. 
155.25  If the transfer was not reported to the local agency at the time of application, and the 
155.26  applicant received long-term care services during what would have been the period of 
155.27  ineligibility if the transfer had been reported, a cause of action exists against the transferee 
155.28  for the cost of long-term care services provided during the period of ineligibility, or for the 
155.29  uncompensated amount of the transfer, whichever is less. The action may be brought by 
155.30  the state or the local agency responsible for providing medical assistance under chapter 
155.31  256G. The uncompensated transfer amount is the fair market value of the asset at the time 
155.32  it was given away, sold, or disposed of, less the amount of compensation received.
155.33  (b) For uncompensated transfers made after August 10, 1993, the number of months 
155.34  of ineligibility for long-term care services shall be the total uncompensated value of the 
155.35  resources transferred divided by the average medical assistance rate for nursing facility 
155.36  services in the state in effect on the date of application. The amount used to calculate the 
156.1   average medical assistance payment rate shall be adjusted each July 1 to reflect payment 
156.2   rates for the previous calendar year. The period of ineligibility begins with the first day 
156.3   of the month after the month in which the assets were transferred except that if one or 
156.4   more uncompensated transfers are made during a period of ineligibility, the total assets 
156.5   transferred during the ineligibility period shall be combined and a penalty period calculated 
156.6   to begin on the first day of the month after the month in which the first uncompensated 
156.7   transfer was made. If the transfer was reported to the local agency after the date that 
156.8   advance notice of a period of ineligibility that affects the next month could be provided to 
156.9   the recipient and the recipient received medical assistance services or the transfer was not 
156.10  reported to the local agency, and the applicant or recipient received medical assistance 
156.11  services during what would have been the period of ineligibility if the transfer had been 
156.12  reported, a cause of action exists against the transferee for the cost of medical assistance 
156.13  services provided during the period of ineligibility, or for the uncompensated amount of 
156.14  the transfer, whichever is less. The action may be brought by the state or the local agency 
156.15  responsible for providing medical assistance under chapter 256G. The uncompensated 
156.16  transfer amount is the fair market value of the asset at the time it was given away, sold, or 
156.17  disposed of, less the amount of compensation received. Effective for transfers made on or 
156.18  after March 1, 1996, involving persons who apply for medical assistance on or after April 
156.19  13, 1996, no cause of action exists for a transfer unless:
156.20  (1) the transferee knew or should have known that the transfer was being made by a 
156.21  person who was a resident of a long-term care facility or was receiving that level of care in 
156.22  the community at the time of the transfer;
156.23  (2) the transferee knew or should have known that the transfer was being made to 
156.24  assist the person to qualify for or retain medical assistance eligibility; or
156.25  (3) the transferee actively solicited the transfer with intent to assist the person to 
156.26  qualify for or retain eligibility for medical assistance.
156.27  (c) For uncompensated transfers made on or after February 8, 2006, the period of 
156.28  ineligibility begins on the first day of the month in which advance notice can be given 
156.29  following the month in which assets have been transferred for less than fair market value, 
156.30  or the date on which the individual is eligible for medical assistance under the Medicaid 
156.31  state plan and would otherwise be receiving long-term care services based on an approved 
156.32  application for such care but for the application of the penalty period, whichever is later, 
156.33  and which does not occur during any other period of ineligibility.
156.34  (d) If a calculation of a penalty period results in a partial month, payments for 
156.35  long-term care services shall be reduced in an amount equal to the fraction,. except that in 
156.36  calculating the value of uncompensated transfers, if the total value of all uncompensated 
157.1   transfers made in a month not included in an existing penalty period does not exceed $200, 
157.2   then such transfers shall be disregarded for each month prior to the month of application 
157.3   for or during receipt of medical assistance.
157.4   (e) In the case of multiple fractional transfers of assets in more than one month for 
157.5   less than fair market value on or after February 8, 2006, the period of ineligibility is 
157.6   calculated by treating the total, cumulative, uncompensated value of all assets transferred 
157.7   during all months on or after February 8, 2006, as one transfer.
157.8   EFFECTIVE DATE.Amendments to this section are effective for applications on 
157.9   or after July 1, 2006, and for renewals and reports of transfers on or after July 1, 2006.

157.10      Sec. 32. Minnesota Statutes 2004, section 256B.0595, subdivision 3, is amended to 
157.11  read:
157.12      Subd. 3. Homestead exception to transfer prohibition. (a) An institutionalized 
157.13  person is not ineligible for long-term care services due to a transfer of assets for less than 
157.14  fair market value if the asset transferred was a homestead and:
157.15  (1) title to the homestead was transferred to the individual's:
157.16  (i) spouse;
157.17  (ii) child who is under age 21;
157.18  (iii) blind or permanently and totally disabled child as defined in the supplemental 
157.19  security income program;
157.20  (iv) sibling who has equity interest in the home and who was residing in the home 
157.21  for a period of at least one year immediately before the date of the individual's admission 
157.22  to the facility; or
157.23  (v) son or daughter who was residing in the individual's home for a period of at least 
157.24  two years immediately before the date of the individual's admission to the facility, and who 
157.25  provided care to the individual that, as certified by the individual's attending physician, 
157.26  permitted the individual to reside at home rather than in an institution or facility;
157.27  (2) a satisfactory showing is made that the individual intended to dispose of the 
157.28  homestead at fair market value or for other valuable consideration; or
157.29  (3) the local agency grants a waiver of a penalty resulting from a transfer for less 
157.30  than fair market value because denial of eligibility would cause undue hardship for the 
157.31  individual, based on imminent threat to the individual's health and well-being. Whenever 
157.32  an applicant or recipient is denied eligibility because of a transfer for less than fair market 
157.33  value, the local agency shall notify the applicant or recipient that the applicant or recipient 
157.34  may request a waiver of the penalty if the denial of eligibility will cause undue hardship. 
157.35  With the written consent of the individual or the personal representative of the individual, 
157.36  a long-term care facility in which an individual is residing may file an undue hardship 
158.1   waiver request, on behalf of the individual who is denied eligibility for long-term care 
158.2   services on or after July 1, 2006, due to a period of ineligibility resulting from a transfer on 
158.3   or after February 8, 2006. In evaluating a waiver, the local agency shall take into account 
158.4   whether the individual was the victim of financial exploitation, whether the individual has 
158.5   made reasonable efforts to recover the transferred property or resource, and other factors 
158.6   relevant to a determination of hardship. If the local agency does not approve a hardship 
158.7   waiver, the local agency shall issue a written notice to the individual stating the reasons 
158.8   for the denial and the process for appealing the local agency's decision.
158.9   (b) When a waiver is granted under paragraph (a), clause (3), a cause of action exists 
158.10  against the person to whom the homestead was transferred for that portion of long-term 
158.11  care services granted within:
158.12  (1) 30 months of a transfer made on or before August 10, 1993;
158.13  (2) 60 months if the homestead was transferred after August 10, 1993, to a trust or 
158.14  portion of a trust that is considered a transfer of assets under federal law; or
158.15  (3) 36 months if transferred in any other manner after August 10, 1993, but prior 
158.16  to February 8, 2006; or
158.17  (4) 60 months if the homestead was transferred on or after February 8, 2006,
158.18  or the amount of the uncompensated transfer, whichever is less, together with the 
158.19  costs incurred due to the action. The action shall be brought by the state unless the 
158.20  state delegates this responsibility to the local agency responsible for providing medical 
158.21  assistance under chapter 256G.

158.22      Sec. 33. Minnesota Statutes 2004, section 256B.0595, subdivision 4, is amended to 
158.23  read:
158.24      Subd. 4. Other exceptions to transfer prohibition. An institutionalized person 
158.25  who has made, or whose spouse has made a transfer prohibited by subdivision 1, is not 
158.26  ineligible for long-term care services if one of the following conditions applies:
158.27  (1) the assets were transferred to the individual's spouse or to another for the sole 
158.28  benefit of the spouse; or
158.29  (2) the institutionalized spouse, prior to being institutionalized, transferred assets 
158.30  to a spouse, provided that the spouse to whom the assets were transferred does not then 
158.31  transfer those assets to another person for less than fair market value. (At the time when 
158.32  one spouse is institutionalized, assets must be allocated between the spouses as provided 
158.33  under section 256B.059); or
158.34  (3) the assets were transferred to the individual's child who is blind or permanently 
158.35  and totally disabled as determined in the supplemental security income program; or
159.1   (4) a satisfactory showing is made that the individual intended to dispose of the 
159.2   assets either at fair market value or for other valuable consideration; or
159.3   (5) the local agency determines that denial of eligibility for long-term care services 
159.4   would work an undue hardship and grants a waiver of a penalty resulting from a transfer 
159.5   for less than fair market value based on an imminent threat to the individual's health 
159.6   and well-being. Whenever an applicant or recipient is denied eligibility because of a 
159.7   transfer for less than fair market value, the local agency shall notify the applicant or 
159.8   recipient that the applicant or recipient may request a waiver of the penalty if the denial of 
159.9   eligibility will cause undue hardship. With the written consent of the individual or the 
159.10  personal representative of the individual, a long-term care facility in which an individual 
159.11  is residing may file an undue hardship waiver request, on behalf of the individual who 
159.12  is denied eligibility for long-term care services on or after July 1, 2006, due to a period 
159.13  of ineligibility resulting from a transfer on or after February 8, 2006. In evaluating a 
159.14  waiver, the local agency shall take into account whether the individual was the victim of 
159.15  financial exploitation, whether the individual has made reasonable efforts to recover the 
159.16  transferred property or resource, whether the individual has taken any action to prevent 
159.17  the designation of the department as a remainder beneficiary on an annuity as described 
159.18  in section 256B.056, subdivision 11, and other factors relevant to a determination of 
159.19  hardship. If the local agency does not approve a hardship waiver, the local agency shall 
159.20  issue a written notice to the individual stating the reasons for the denial and the process for 
159.21  appealing the local agency's decision. When a waiver is granted, a cause of action exists 
159.22  against the person to whom the assets were transferred for that portion of long-term care 
159.23  services granted within:
159.24  (i) 30 months of a transfer made on or before August 10, 1993;
159.25  (ii) 60 months of a transfer if the assets were transferred after August 30, 1993, to a 
159.26  trust or portion of a trust that is considered a transfer of assets under federal law; or
159.27  (iii) 36 months of a transfer if transferred in any other manner after August 10, 1993, 
159.28  but prior to February 8, 2006; or
159.29  (iv) 60 months of any transfer made on or after February 8, 2006,
159.30  or the amount of the uncompensated transfer, whichever is less, together with the 
159.31  costs incurred due to the action. The action shall be brought by the state unless the 
159.32  state delegates this responsibility to the local agency responsible for providing medical 
159.33  assistance under this chapter; or
159.34  (6) for transfers occurring after August 10, 1993, the assets were transferred by 
159.35  the person or person's spouse: (i) into a trust established for the sole benefit of a son or 
159.36  daughter of any age who is blind or disabled as defined by the Supplemental Security 
160.1   Income program; or (ii) into a trust established for the sole benefit of an individual who is 
160.2   under 65 years of age who is disabled as defined by the Supplemental Security Income 
160.3   program.
160.4   "For the sole benefit of" has the meaning found in section  256B.059, subdivision 1. 

160.5       Sec. 34. Minnesota Statutes 2005 Supplement, section 256B.06, subdivision 4, is 
160.6   amended to read:
160.7       Subd. 4. Citizenship requirements. (a) Eligibility for medical assistance is limited 
160.8   to citizens of the United States, qualified noncitizens as defined in this subdivision, and 
160.9   other persons residing lawfully in the United States. Citizens or nationals of the United 
160.10  States must cooperate in obtaining satisfactory documentary evidence of citizenship or 
160.11  nationality according to the requirements of the federal Deficit Reduction Act of 2005, 
160.12  Public Law 109-171.
160.13  (b) "Qualified noncitizen" means a person who meets one of the following 
160.14  immigration criteria:
160.15  (1) admitted for lawful permanent residence according to United States Code, title 8;
160.16  (2) admitted to the United States as a refugee according to United States Code, 
160.17  title 8, section 1157;
160.18  (3) granted asylum according to United States Code, title 8, section 1158;
160.19  (4) granted withholding of deportation according to United States Code, title 8, 
160.20  section 1253(h);
160.21  (5) paroled for a period of at least one year according to United States Code, title 8, 
160.22  section 1182(d)(5);
160.23  (6) granted conditional entrant status according to United States Code, title 8, 
160.24  section 1153(a)(7);
160.25  (7) determined to be a battered noncitizen by the United States Attorney General 
160.26  according to the Illegal Immigration Reform and Immigrant Responsibility Act of 1996, 
160.27  title V of the Omnibus Consolidated Appropriations Bill, Public Law 104-200;
160.28  (8) is a child of a noncitizen determined to be a battered noncitizen by the United 
160.29  States Attorney General according to the Illegal Immigration Reform and Immigrant 
160.30  Responsibility Act of 1996, title V, of the Omnibus Consolidated Appropriations Bill, 
160.31  Public Law 104-200; or
160.32  (9) determined to be a Cuban or Haitian entrant as defined in section 501(e) of Public 
160.33  Law 96-422, the Refugee Education Assistance Act of 1980.
160.34  (c) All qualified noncitizens who were residing in the United States before August 
160.35  22, 1996, who otherwise meet the eligibility requirements of this chapter, are eligible for 
160.36  medical assistance with federal financial participation.
161.1   (d) All qualified noncitizens who entered the United States on or after August 22, 
161.2   1996, and who otherwise meet the eligibility requirements of this chapter, are eligible for 
161.3   medical assistance with federal financial participation through November 30, 1996.
161.4   Beginning December 1, 1996, qualified noncitizens who entered the United States 
161.5   on or after August 22, 1996, and who otherwise meet the eligibility requirements of this 
161.6   chapter are eligible for medical assistance with federal participation for five years if they 
161.7   meet one of the following criteria:
161.8   (i) refugees admitted to the United States according to United States Code, title 8, 
161.9   section 1157;
161.10  (ii) persons granted asylum according to United States Code, title 8, section 1158;
161.11  (iii) persons granted withholding of deportation according to United States Code, 
161.12  title 8, section 1253(h);
161.13  (iv) veterans of the United States armed forces with an honorable discharge for 
161.14  a reason other than noncitizen status, their spouses and unmarried minor dependent 
161.15  children; or
161.16  (v) persons on active duty in the United States armed forces, other than for training, 
161.17  their spouses and unmarried minor dependent children.
161.18  Beginning December 1, 1996, qualified noncitizens who do not meet one of the 
161.19  criteria in items (i) to (v) are eligible for medical assistance without federal financial 
161.20  participation as described in paragraph (j).
161.21  (e) Noncitizens who are not qualified noncitizens as defined in paragraph (b), 
161.22  who are lawfully residing in the United States and who otherwise meet the eligibility 
161.23  requirements of this chapter, are eligible for medical assistance under clauses (1) to (3). 
161.24  These individuals must cooperate with the Immigration and Naturalization Service to 
161.25  pursue any applicable immigration status, including citizenship, that would qualify them 
161.26  for medical assistance with federal financial participation.
161.27  (1) Persons who were medical assistance recipients on August 22, 1996, are eligible 
161.28  for medical assistance with federal financial participation through December 31, 1996.
161.29  (2) Beginning January 1, 1997, persons described in clause (1) are eligible for 
161.30  medical assistance without federal financial participation as described in paragraph (j).
161.31  (3) Beginning December 1, 1996, persons residing in the United States prior to 
161.32  August 22, 1996, who were not receiving medical assistance and persons who arrived on 
161.33  or after August 22, 1996, are eligible for medical assistance without federal financial 
161.34  participation as described in paragraph (j).
161.35  (f) Nonimmigrants who otherwise meet the eligibility requirements of this chapter 
161.36  are eligible for the benefits as provided in paragraphs (g) to (i). For purposes of this 
162.1   subdivision, a "nonimmigrant" is a person in one of the classes listed in United States 
162.2   Code, title 8, section 1101(a)(15).
162.3   (g) Payment shall also be made for care and services that are furnished to noncitizens, 
162.4   regardless of immigration status, who otherwise meet the eligibility requirements of 
162.5   this chapter, if such care and services are necessary for the treatment of an emergency 
162.6   medical condition, except for organ transplants and related care and services and routine 
162.7   prenatal care.
162.8   (h) For purposes of this subdivision, the term "emergency medical condition" means 
162.9   a medical condition that meets the requirements of United States Code, title 42, section 
162.10  1396b(v).
162.11  (i) Pregnant noncitizens who are undocumented, nonimmigrants, or eligible for 
162.12  medical assistance as described in paragraph (j), and who are not covered by a group 
162.13  health plan or health insurance coverage according to Code of Federal Regulations, title 
162.14  42, section 457.310, and who otherwise meet the eligibility requirements of this chapter, 
162.15  are eligible for medical assistance through the period of pregnancy, including labor and 
162.16  delivery, to the extent federal funds are available under title XXI of the Social Security 
162.17  Act, and the state children's health insurance program, followed by 60 days postpartum 
162.18  without federal financial participation.
162.19  (j) Qualified noncitizens as described in paragraph (d), and all other noncitizens 
162.20  lawfully residing in the United States as described in paragraph (e), who are ineligible 
162.21  for medical assistance with federal financial participation and who otherwise meet the 
162.22  eligibility requirements of chapter 256B and of this paragraph, are eligible for medical 
162.23  assistance without federal financial participation. Qualified noncitizens as described 
162.24  in paragraph (d) are only eligible for medical assistance without federal financial 
162.25  participation for five years from their date of entry into the United States.
162.26  (k) Beginning October 1, 2003, persons who are receiving care and rehabilitation 
162.27  services from a nonprofit center established to serve victims of torture and are otherwise 
162.28  ineligible for medical assistance under this chapter are eligible for medical assistance 
162.29  without federal financial participation. These individuals are eligible only for the period 
162.30  during which they are receiving services from the center. Individuals eligible under this 
162.31  paragraph shall not be required to participate in prepaid medical assistance.
162.32  EFFECTIVE DATE.This section is effective July 1, 2006.

162.33      Sec. 35. Minnesota Statutes 2004, section 256L.04, subdivision 10, is amended to read:
162.34      Subd. 10. Citizenship requirements. Eligibility for MinnesotaCare is limited 
162.35  to citizens or nationals of the United States, qualified noncitizens, and other persons 
163.1   residing lawfully in the United States as described in section  256B.06, subdivision 4, 
163.2   paragraphs (a) to (e) and (j). Undocumented noncitizens and nonimmigrants are ineligible 
163.3   for MinnesotaCare. For purposes of this subdivision, a nonimmigrant is an individual in 
163.4   one or more of the classes listed in United States Code, title 8, section 1101(a)(15), and 
163.5   an undocumented noncitizen is an individual who resides in the United States without 
163.6   the approval or acquiescence of the Immigration and Naturalization Service. Families 
163.7   with children who are citizens or nationals of the United States must cooperate in 
163.8   obtaining satisfactory documentary evidence of citizenship or nationality according to the 
163.9   requirements of the federal Deficit Reduction Act of 2005, Public Law 109-171.
163.10  EFFECTIVE DATE.This section is effective July 1, 2006.

163.11      Sec. 36. DESIGNATION OF ASSETS AS CONTINGENTLY EXEMPT UNDER 
163.12  LONG-TERM CARE PARTNERSHIP PROGRAM.
163.13  The commissioner of human services shall develop and present to the legislature 
163.14  by December 15, 2006, a plan and draft legislation to allow individuals participating in 
163.15  the long-term care partnership program established under Minnesota Statutes, section 
163.16  256B.0571, to designate, at the time of initial application for medical assistance, assets 
163.17  as contingently exempt.  The full fair market value of assets designated as contingently 
163.18  exempt must not exceed a percentage, specified by the commissioner, of the full fair market 
163.19  value of assets designated as protected under Minnesota Statutes, section 256B.0571, 
163.20  subdivision 9.  The commissioner may specify different percentages for different categories 
163.21  of protected assets.  Assets designated as contingently exempt shall be disregarded for 
163.22  purposes of determining eligibility for payment of long-term care services.  If the dollar 
163.23  amount of benefits utilized under a partnership policy is greater than the full fair market 
163.24  value of all assets protected due to a decrease in the value of the protected assets, the plan 
163.25  and draft legislation must allow the individual or the personal representative to designate 
163.26  assets that are contingently exempt as protected, up to the amount of the decrease in value 
163.27  of the protected assets.  The plan and draft legislation must provide that any contingently 
163.28  exempt asset that is not designated as protected be subject to recovery.

163.29      Sec. 37.  REPEALER.
163.30  Minnesota Statutes 2005 Supplement, section 256B.0571, subdivisions 2, 5, and 
163.31  11, are repealed.

163.32                                         ARTICLE 18
163.33                          CHILDREN AND FAMILIES FEDERAL COMPLIANCE

163.34      Section 1. Minnesota Statutes 2004, section 256J.021, is amended to read:
163.35  256J.021 SEPARATE STATE PROGRAM FOR USE OF STATE MONEY.
164.1   Beginning (a) Until October 1, 2001, and each year thereafter 2006, the 
164.2   commissioner of human services must treat MFIP expenditures made to or on behalf of 
164.3   any minor child under section  256J.02, subdivision 2, clause (1), who is a resident of 
164.4   this state under section  256J.12, and who is part of a two-parent eligible household as 
164.5   expenditures under a separately funded state program and report those expenditures to the 
164.6   federal Department of Health and Human Services as separate state program expenditures 
164.7   under Code of Federal Regulations, title 45, section 263.5. 
164.8   (b) Beginning October 1, 2006, the commissioner of human services must treat 
164.9   MFIP expenditures made to or on behalf of any minor child under section 256J.02, 
164.10  subdivision 2, clause (1), who is a resident of this state under section 256J.12, and who 
164.11  is part of a two-parent eligible household, as expenditures under a separately funded 
164.12  state program. These expenditures shall not count toward the state's maintenance of 
164.13  effort (MOE) requirements under the federal Temporary Assistance to Needy Families 
164.14  (TANF) program except if counting certain families would allow the commissioner to 
164.15  avoid a federal penalty. Families receiving assistance under this section must comply with 
164.16  all applicable requirements in this chapter.

164.17      Sec. 2. Minnesota Statutes 2004, section 256J.626, subdivision 2, is amended to read:
164.18      Subd. 2. Allowable expenditures. (a) The commissioner must restrict expenditures 
164.19  under the consolidated fund to benefits and services allowed under title IV-A of the federal 
164.20  Social Security Act. Allowable expenditures under the consolidated fund may include, but 
164.21  are not limited to:
164.22  (1) short-term, nonrecurring shelter and utility needs that are excluded from the 
164.23  definition of assistance under Code of Federal Regulations, title 45, section  260.31, for 
164.24  families who meet the residency requirement in section  256J.12, subdivisions 1 and 1a. 
164.25  Payments under this subdivision are not considered TANF cash assistance and are not 
164.26  counted towards the 60-month time limit; 
164.27  (2) transportation needed to obtain or retain employment or to participate in other 
164.28  approved work activities;
164.29  (3) direct and administrative costs of staff to deliver employment services for MFIP 
164.30  or the diversionary work program, to administer financial assistance, and to provide 
164.31  specialized services intended to assist hard-to-employ participants to transition to work;
164.32  (4) costs of education and training including functional work literacy and English as 
164.33  a second language;
164.34  (5) cost of work supports including tools, clothing, boots, and other work-related 
164.35  expenses;
165.1   (6) county administrative expenses as defined in Code of Federal Regulations, title 
165.2   45, section 260(b);
165.3   (7) services to parenting and pregnant teens;
165.4   (8) supported work;
165.5   (9) wage subsidies;
165.6   (10) child care needed for MFIP or diversionary work program participants to 
165.7   participate in social services;
165.8   (11) child care to ensure that families leaving MFIP or diversionary work program 
165.9   will continue to receive child care assistance from the time the family no longer qualifies 
165.10  for transition year child care until an opening occurs under the basic sliding fee child 
165.11  care program; and
165.12  (12) services to help noncustodial parents who live in Minnesota and have minor 
165.13  children receiving MFIP or DWP assistance, but do not live in the same household as the 
165.14  child, obtain or retain employment.
165.15  (b) Administrative costs that are not matched with county funds as provided in 
165.16  subdivision 8 may not exceed 7.5 percent of a county's or 15 percent of a tribe's allocation 
165.17  under this section. The commissioner shall define administrative costs for purposes of 
165.18  this subdivision.
165.19  (c) The commissioner may waive the cap on administrative costs for a county or tribe 
165.20  that elects to provide an approved supported employment, unpaid work, or community 
165.21  work experience program for a major segment of the county's or tribe's MFIP population. 
165.22  The county or tribe must apply for the waiver on forms provided by the commissioner. In 
165.23  no case shall total administrative costs exceed the TANF limits.

165.24      Sec. 3. Minnesota Statutes 2004, section 518.551, subdivision 7, is amended to read:
165.25      Subd. 7. Fees and cost recovery fees for IV-D services. (a) When a recipient of 
165.26  IV-D services is no longer receiving assistance under the state's title IV-A, IV-E foster 
165.27  care, medical assistance, or MinnesotaCare programs, the public authority responsible 
165.28  for child support enforcement must notify the recipient, within five working days of the 
165.29  notification of ineligibility, that IV-D services will be continued unless the public authority 
165.30  is notified to the contrary by the recipient. The notice must include the implications 
165.31  of continuing to receive IV-D services, including the available services and fees, cost 
165.32  recovery fees, and distribution policies relating to fees.
165.33  (b) An application fee of $25 shall be paid by the person who applies for child 
165.34  support and maintenance collection services, except persons who are receiving public 
165.35  assistance as defined in section   256.741 and, if enacted, the diversionary work program 
165.36  under section   256J.95, persons who transfer from public assistance to nonpublic assistance 
166.1   status, and minor parents and parents enrolled in a public secondary school, area learning 
166.2   center, or alternative learning program approved by the commissioner of education. 
166.3   (c) In the case of an individual who has never received assistance under a state 
166.4   program funded under Title IV-A of the Social Security Act and for whom the public 
166.5   authority has collected at least $500 of support, the public authority must impose an 
166.6   annual federal collections fee of $25 for each case in which services are furnished. This 
166.7   fee must be retained by the public authority from support collected on behalf of the 
166.8   individual, but not from the first $500 collected.
166.9   (c) (d) When the public authority provides full IV-D services to an obligee who 
166.10  has applied for those services, upon written notice to the obligee, the public authority 
166.11  must charge a cost recovery fee of one percent of the amount collected. This fee must 
166.12  be deducted from the amount of the child support and maintenance collected and not 
166.13  assigned under section   256.741 before disbursement to the obligee. This fee does not 
166.14  apply to an obligee who: 
166.15  (1)  is currently receiving assistance under the state's title IV-A, IV-E foster care, 
166.16  medical assistance, or MinnesotaCare programs; or
166.17  (2)  has received assistance under the state's title IV-A or IV-E foster care programs, 
166.18  until the person has not received this assistance for 24 consecutive months.
166.19  (d) (e) When the public authority provides full IV-D services to an obligor who has 
166.20  applied for such services, upon written notice to the obligor, the public authority must 
166.21  charge a cost recovery fee of one percent of the monthly court-ordered child support and 
166.22  maintenance obligation. The fee may be collected through income withholding, as well 
166.23  as by any other enforcement remedy available to the public authority responsible for 
166.24  child support enforcement.
166.25  (e) (f) Fees assessed by state and federal tax agencies for collection of overdue 
166.26  support owed to or on behalf of a person not receiving public assistance must be imposed 
166.27  on the person for whom these services are provided. The public authority upon written 
166.28  notice to the obligee shall assess a fee of $25 to the person not receiving public assistance 
166.29  for each successful federal tax interception. The fee must be withheld prior to the release 
166.30  of the funds received from each interception and deposited in the general fund.
166.31  (f) (g) Federal collections fees collected under paragraph (c) and cost recovery fees 
166.32  collected under paragraphs (c) and (d) and (e) shall be considered child support program 
166.33  income according to Code of Federal Regulations, title 45, section   304.50, and shall 
166.34  be deposited in the cost recovery fee special revenue fund account established under 
166.35  paragraph (h) (i). The commissioner of human services must elect to recover costs based 
166.36  on either actual or standardized costs. 
167.1   (g) (h) The limitations of this subdivision on the assessment of fees shall not apply 
167.2   to the extent inconsistent with the requirements of federal law for receiving funds for the 
167.3   programs under Title IV-A and Title IV-D of the Social Security Act, United States Code, 
167.4   title 42, sections 601 to 613 and United States Code, title 42, sections 651 to 662.
167.5   (h) (i) The commissioner of human services is authorized to establish a special 
167.6   revenue fund account to receive child support the federal collections fees collected under 
167.7   paragraph (c) and cost recovery fees collected under paragraphs (d) and (e). A portion of 
167.8   the nonfederal share of these fees may be retained for expenditures necessary to administer 
167.9   the fee fees and must be transferred to the child support system special revenue account. 
167.10  The remaining nonfederal share of the federal collections fees and cost recovery fee fees 
167.11  must be retained by the commissioner and dedicated to the child support general fund 
167.12  county performance-based grant account authorized under sections   256.979 and   256.9791. 
167.13  EFFECTIVE DATE.This section is effective October 1, 2006, or later, if the 
167.14  commissioner determines that a later implementation will not result in federal financial 
167.15  penalties.

167.16                                         ARTICLE 19
167.17                                      ASSISTED LIVING

167.18      Section 1. [144A.441] ASSISTED LIVING BILL OF RIGHTS ADDENDUM.
167.19  Assisted living clients, as defined in section 144G.01, subdivision 3, shall be 
167.20  provided with the home care bill of rights required by section 144A.44, except that the 
167.21  home care bill of rights provided to these clients must include the following provision in 
167.22  place of the provision in section 144A.44, subdivision 1, clause (16): 
167.23  "(16) the right to reasonable, advance notice of changes in services or charges, 
167.24  including at least 30 days' advance notice of the termination of a service by a provider, 
167.25  except in cases where:
167.26  (i) the recipient of services engages in conduct that alters the conditions of 
167.27  employment as specified in the employment contract between the home care provider 
167.28  and the individual providing home care services, or creates an abusive or unsafe work 
167.29  environment for the individual providing home care services;
167.30  (ii) an emergency for the informal caregiver or a significant change in the recipient's 
167.31  condition has resulted in service needs that exceed the current service provider agreement 
167.32  and that cannot be safely met by the home care provider; or
167.33  (iii) the provider has not received payment for services, for which at least ten days' 
167.34  advance notice of the termination of a service shall be provided."
168.1   EFFECTIVE DATE.This section is effective January 1, 2007.

168.2       Sec. 2. [144A.442] TERMINATION OF HOME CARE SERVICES FOR 
168.3   ASSISTED LIVING CLIENTS.
168.4   If an arranged home care provider, as defined in section 144D.01, subdivision 2a, 
168.5   who is not also Medicare certified terminates a service agreement or service plan with 
168.6   an assisted living client, as defined in section 144G.01, subdivision 3, the home care 
168.7   provider shall provide the assisted living client and the legal or designated representatives 
168.8   of the client, if any, with a written notice of termination which includes the following 
168.9   information:
168.10  (1) the effective date of termination;
168.11  (2) the reason for termination;
168.12  (3) without extending the termination notice period, an affirmative offer to meet with 
168.13  the assisted living client or client representatives within no more than five business days of 
168.14  the date of the termination notice to discuss the termination;
168.15  (4) contact information for a reasonable number of other home care providers in 
168.16  the geographic area of the assisted living client, as required by Minnesota Rules, part 
168.17  4668.0050;
168.18  (5) a statement that the provider will participate in a coordinated transfer of the care 
168.19  of the client to another provider or caregiver, as required by section 144A.44, subdivision 
168.20  1, clause (17);
168.21  (6) the name and contact information of a representative of the home care provider 
168.22  with whom the client may discuss the notice of termination;
168.23  (7) a copy of the home care bill of rights; and
168.24  (8) a statement that the notice of termination of home care services by the home care 
168.25  provider does not constitute notice of termination of the housing with services contract 
168.26  with a housing with services establishment.
168.27  EFFECTIVE DATE.This section is effective January 1, 2007.

168.28      Sec. 3. Minnesota Statutes 2004, section 144A.4605, is amended to read:
168.29  144A.4605 ASSISTED LIVING HOME CARE CLASS F PROVIDER.
168.30      Subdivision 1. Definitions. For purposes of this section, the term "assisted 
168.31  living class F home care provider" means a home care provider who provides nursing 
168.32  services, delegated nursing services, other services performed by unlicensed personnel, or 
168.33  central storage of medications solely for residents of one or more housing with services 
168.34  establishments registered under chapter 144D.
169.1       Subd. 2. Assisted living Class F home care license established. A home care 
169.2   provider license category entitled assisted living class F home care provider is hereby 
169.3   established. A home care provider may obtain an assisted living a class F license if the 
169.4   program meets the following requirements:
169.5   (a) nursing services, delegated nursing services, other services performed by 
169.6   unlicensed personnel, or central storage of medications under the assisted living class 
169.7   F license are provided solely for residents of one or more housing with services 
169.8   establishments registered under chapter 144D;
169.9   (b) unlicensed personnel perform home health aide and home care aide tasks 
169.10  identified in Minnesota Rules, parts 4668.0100, subparts 1 and 2, and 4668.0110, subpart 1. 
169.11  Qualifications to perform these tasks shall be established in accordance with subdivision 3;
169.12  (c) periodic supervision of unlicensed personnel is provided as required by rule;
169.13  (d) notwithstanding Minnesota Rules, part 4668.0160, subpart 6, item D, client 
169.14  records shall include:
169.15  (1) daily records or a weekly summary of home care services provided;
169.16  (2) documentation each time medications are administered to a client; and
169.17  (3) documentation on the day of occurrence of any significant change in the client's 
169.18  status or any significant incident, such as a fall or refusal to take medications.
169.19  All entries must be signed by the staff providing the services and entered into the 
169.20  record no later than two weeks after the end of the service day, except as specified in 
169.21  clauses (2) and (3);
169.22  (e) medication and treatment orders, if any, are included in the client record and 
169.23  are renewed at least every 12 months, or more frequently when indicated by a clinical 
169.24  assessment;
169.25  (f) the central storage of medications in a housing with services establishment 
169.26  registered under chapter 144D is managed under a system that is established by a 
169.27  registered nurse and addresses the control of medications, handling of medications, 
169.28  medication containers, medication records, and disposition of medications; and
169.29  (g) in other respects meets the requirements established by rules adopted under 
169.30  sections  144A.45 to  144A.47. 
169.31      Subd. 3. Training or competency evaluations required. (a) Unlicensed personnel 
169.32  must:
169.33  (1) satisfy the training or competency requirements established by rule under 
169.34  sections  144A.45 to  144A.47; or 
170.1   (2) be trained or determined competent by a registered nurse in each task identified 
170.2   under Minnesota Rules, part 4668.0100, subparts 1 and 2, when offered to clients in a 
170.3   housing with services establishment as described in paragraphs (b) to (e).
170.4   (b) Training for tasks identified under Minnesota Rules, part 4668.0100, subparts 
170.5   1 and 2, shall use a curriculum which meets the requirements in Minnesota Rules, part 
170.6   4668.0130.
170.7   (c) Competency evaluations for tasks identified under Minnesota Rules, part 
170.8   4668.0100, subparts 1 and 2, must be completed and documented by a registered nurse.
170.9   (d) Unlicensed personnel performing tasks identified under Minnesota Rules, part 
170.10  4668.0100, subparts 1 and 2, shall be trained or demonstrate competency in the following 
170.11  topics:
170.12  (1) an overview of sections  144A.43 to  144A.47 and rules adopted thereunder; 
170.13  (2) recognition and handling of emergencies and use of emergency services;
170.14  (3) reporting the maltreatment of vulnerable minors or adults under sections  626.556 
170.15  and  626.557; 
170.16  (4) home care bill of rights;
170.17  (5) handling of clients' complaints and reporting of complaints to the Office of 
170.18  Health Facility Complaints;
170.19  (6) services of the ombudsman for older Minnesotans;
170.20  (7) observation, reporting, and documentation of client status and of the care or 
170.21  services provided;
170.22  (8) basic infection control;
170.23  (9) maintenance of a clean, safe, and healthy environment;
170.24  (10) communication skills;
170.25  (11) basic elements of body functioning and changes in body function that must be 
170.26  reported to an appropriate health care professional; and
170.27  (12) physical, emotional, and developmental needs of clients, and ways to work with 
170.28  clients who have problems in these areas, including respect for the client, the client's 
170.29  property, and the client's family.
170.30  (e) Unlicensed personnel who administer medications must comply with rules 
170.31  relating to the administration of medications in Minnesota Rules, part 4668.0100, subpart 
170.32  2, except that unlicensed personnel need not comply with the requirements of Minnesota 
170.33  Rules, part 4668.0100, subpart 5.
170.34      Subd. 4. License required. (a) A housing with services establishment registered 
170.35  under chapter 144D that is required to obtain a home care license must obtain an assisted 
170.36  living a class F home care license according to this section or a class A or class E B license 
171.1   according to rule. A housing with services establishment that obtains a class E B license 
171.2   under this subdivision remains subject to the payment limitations in sections  256B.0913, 
171.3   subdivision 5f, paragraph (b), and  256B.0915, subdivision 3d. 
171.4   (b) A board and lodging establishment registered for special services as of December 
171.5   31, 1996, and also registered as a housing with services establishment under chapter 
171.6   144D, must deliver home care services according to sections  144A.43 to 144A.47, and 
171.7   may apply for a waiver from requirements under Minnesota Rules, parts 4668.0002 to 
171.8   4668.0240, to operate a licensed agency under the standards of section  157.17. Such 
171.9   waivers as may be granted by the department will expire upon promulgation of home care 
171.10  rules implementing section  144A.4605. 
171.11  (c) An adult foster care provider licensed by the Department of Human Services and 
171.12  registered under chapter 144D may continue to provide health-related services under its 
171.13  foster care license until the promulgation of home care rules implementing this section.
171.14  (d) An assisted living (c) A class F home care provider licensed under this section 
171.15  must comply with the disclosure provisions of section  325F.72 to the extent they are 
171.16  applicable. 
171.17      Subd. 5. License fees. The license fees for assisted living class F home care 
171.18  providers shall be as follows:
171.19  (1) $125 annually for those providers serving a monthly average of 15 or fewer 
171.20  clients, and for assisted living class F providers of all sizes during the first year of 
171.21  operation;
171.22  (2) $200 annually for those providers serving a monthly average of 16 to 30 clients;
171.23  (3) $375 annually for those providers serving a monthly average of 31 to 50 clients; 
171.24  and
171.25  (4) $625 annually for those providers serving a monthly average of 51 or more 
171.26  clients.
171.27      Subd. 6. Waiver. Upon request of the home care provider, the commissioner may 
171.28  waive the provisions of this section relating to registered nurse duties.
171.29  EFFECTIVE DATE.This section is effective January 1, 2007.

171.30      Sec. 4. Minnesota Statutes 2004, section 144D.01, is amended by adding a subdivision 
171.31  to read:
171.32      Subd. 2a. Arranged home care provider. "Arranged home care provider" means a 
171.33  home care provider licensed under Minnesota Rules, chapter 4668, that provides services 
171.34  to some or all of the residents of a housing with services establishment and that is either 
171.35  the establishment itself or another entity with which the establishment has an arrangement.
172.1   EFFECTIVE DATE.This section is effective January 1, 2007.

172.2       Sec. 5. Minnesota Statutes 2004, section 144D.015, is amended to read:
172.3   144D.015 ASSISTED LIVING FACILITY OR ASSISTED LIVING 
172.4   RESIDENCE DEFINITION FOR PURPOSES OF LONG-TERM CARE 
172.5   INSURANCE.
172.6   For purposes of consistency with terminology commonly used in long-term 
172.7   care insurance policies and notwithstanding chapter 144G, a housing with services 
172.8   establishment that is registered under section  144D.03 and that holds, or contracts makes 
172.9   arrangements with an individual or entity that holds, a any type of home care license and 
172.10  all other licenses, permits, registrations, or other governmental approvals legally required 
172.11  for delivery of the services the establishment offers or provides to its residents, constitutes 
172.12  an "assisted living facility" or "assisted living residence." 
172.13  EFFECTIVE DATE.This section is effective January 1, 2007.

172.14      Sec. 6. Minnesota Statutes 2004, section 144D.02, is amended to read:
172.15  144D.02 REGISTRATION REQUIRED.
172.16  No entity may establish, operate, conduct, or maintain an elderly a housing with 
172.17  services establishment in this state without registering and operating as required in 
172.18  sections  144D.01 to  144D.06. 
172.19  EFFECTIVE DATE.This section is effective January 1, 2007.

172.20      Sec. 7. Minnesota Statutes 2004, section 144D.03, is amended by adding a subdivision 
172.21  to read:
172.22      Subd. 1a. Surcharge for injunctive relief actions. The commissioner shall assess 
172.23  each housing with services establishment that offers or provides assisted living under 
172.24  chapter 144G a surcharge on the annual registration fee paid under subdivision 1, to pay 
172.25  for the commissioner's costs related to bringing actions for injunctive relief under section 
172.26  144G.02, subdivision 2, paragraph (b), on or after July 1, 2007. The commissioner shall 
172.27  assess surcharges using a sliding scale under which the surcharge amount increases with 
172.28  the client capacity of an establishment. The commissioner shall adjust the surcharge as 
172.29  necessary to recover the projected costs of bringing actions for injunctive relief. The 
172.30  commissioner shall adjust the surcharge in accordance with section 16A.1285.
172.31  EFFECTIVE DATE.This section is effective for annual registrations submitted 
172.32  on or after July 1, 2007.

172.33      Sec. 8. Minnesota Statutes 2004, section 144D.03, subdivision 2, is amended to read:
172.34      Subd. 2. Registration information. The establishment shall provide the following 
172.35  information to the commissioner in order to be registered:
173.1   (1) the business name, street address, and mailing address of the establishment;
173.2   (2) the name and mailing address of the owner or owners of the establishment and, if 
173.3   the owner or owners are not natural persons, identification of the type of business entity 
173.4   of the owner or owners, and the names and addresses of the officers and members of the 
173.5   governing body, or comparable persons for partnerships, limited liability corporations, or 
173.6   other types of business organizations of the owner or owners;
173.7   (3) the name and mailing address of the managing agent, whether through 
173.8   management agreement or lease agreement, of the establishment, if different from the 
173.9   owner or owners, and the name of the on-site manager, if any;
173.10  (4) verification that the establishment has entered into an elderly a housing with 
173.11  services contract, as required in section  144D.04, with each resident or resident's 
173.12  representative; 
173.13  (5) verification that the establishment is complying with the requirements of section  
173.14  325F.72, if applicable; 
173.15  (6) the name and address of at least one natural person who shall be responsible 
173.16  for dealing with the commissioner on all matters provided for in sections  144D.01 to  
173.17  144D.06, and on whom personal service of all notices and orders shall be made, and who 
173.18  shall be authorized to accept service on behalf of the owner or owners and the managing 
173.19  agent, if any; and 
173.20  (7) the signature of the authorized representative of the owner or owners or, if 
173.21  the owner or owners are not natural persons, signatures of at least two authorized 
173.22  representatives of each owner, one of which shall be an officer of the owner.
173.23  Personal service on the person identified under clause (6) by the owner or owners in 
173.24  the registration shall be considered service on the owner or owners, and it shall not be a 
173.25  defense to any action that personal service was not made on each individual or entity. The 
173.26  designation of one or more individuals under this subdivision shall not affect the legal 
173.27  responsibility of the owner or owners under sections  144D.01 to  144D.06. 
173.28  EFFECTIVE DATE.This section is effective January 1, 2007.

173.29      Sec. 9. Minnesota Statutes 2004, section 144D.04, is amended to read:
173.30  144D.04 ELDERLY HOUSING WITH SERVICES CONTRACTS.
173.31      Subdivision 1. Contract required. No elderly housing with services establishment 
173.32  may operate in this state unless a written elderly housing with services contract, as defined 
173.33  in subdivision 2, is executed between the establishment and each resident or resident's 
173.34  representative and unless the establishment operates in accordance with the terms of the 
173.35  contract. The resident or the resident's representative shall be given a complete copy of 
174.1   the contract and all supporting documents and attachments and any changes whenever 
174.2   changes are made.
174.3       Subd. 2. Contents of contract. An elderly A housing with services contract, which 
174.4   need not be entitled as such to comply with this section, shall include at least the following 
174.5   elements in itself or through supporting documents or attachments:
174.6   (1) the name, street address, and mailing address of the establishment;
174.7   (2) the name and mailing address of the owner or owners of the establishment and, if 
174.8   the owner or owners is not a natural person, identification of the type of business entity 
174.9   of the owner or owners;
174.10  (3) the name and mailing address of the managing agent, through management 
174.11  agreement or lease agreement, of the establishment, if different from the owner or owners;
174.12  (4) the name and address of at least one natural person who is authorized to accept 
174.13  service of process on behalf of the owner or owners and managing agent;
174.14  (5) a statement describing the registration and licensure status of the establishment 
174.15  and any provider providing health-related or supportive services under an arrangement 
174.16  with the establishment;
174.17  (6) the term of the contract;
174.18  (7) a description of the services to be provided to the resident in the base rate to 
174.19  be paid by resident;
174.20  (8) a description of any additional services, including home care services, available 
174.21  for an additional fee from the establishment directly or through arrangements with the 
174.22  establishment, and a schedule of fees charged for these services;
174.23  (9) fee schedules outlining the cost of any additional services;
174.24  (10) (9) a description of the process through which the contract may be modified, 
174.25  amended, or terminated;
174.26  (11) (10) a description of the establishment's complaint resolution process available 
174.27  to residents including the toll-free complaint line for the Office of Ombudsman for Older 
174.28  Minnesotans;
174.29  (12) (11) the resident's designated representative, if any;
174.30  (13) (12) the establishment's referral procedures if the contract is terminated;
174.31  (14) criteria (13) requirements of residency used by the establishment to determine 
174.32  who may reside or continue to reside in the elderly housing with services establishment;
174.33  (15) (14) billing and payment procedures and requirements;
174.34  (16) (15) a statement regarding the ability of residents to receive services from 
174.35  service providers with whom the establishment does not have an arrangement; and
175.1   (17) (16) a statement regarding the availability of public funds for payment for 
175.2   residence or services in the establishment; and
175.3   (17) a statement regarding the availability of and contact information for long- 
175.4   term care consultation services under section 256B.0911 in the county in which the 
175.5   establishment is located.
175.6       Subd. 3. Contracts in permanent files. Elderly Housing with services contracts 
175.7   and related documents executed by each resident or resident's representative shall be 
175.8   maintained by the establishment in files from the date of execution until three years after 
175.9   the contract is terminated. The contracts and the written disclosures required under section  
175.10  325F.72, if applicable, shall be made available for on-site inspection by the commissioner 
175.11  upon request at any time. 
175.12  EFFECTIVE DATE.This section is effective January 1, 2007.

175.13      Sec. 10. [144D.045] INFORMATION CONCERNING ARRANGED HOME 
175.14  CARE PROVIDERS.
175.15  If a housing with services establishment has one or more arranged home care 
175.16  providers, the establishment shall arrange to have that arranged home care provider deliver 
175.17  the following information in writing to a prospective resident, prior to the date on which 
175.18  the prospective resident executes a contract with the establishment or the prospective 
175.19  resident's move-in date, whichever is earlier:
175.20  (1) the name, mailing address, and telephone number of the arranged home care 
175.21  provider;
175.22  (2) the name and mailing address of at least one natural person who is authorized to 
175.23  accept service of process on behalf of the entity described in clause (1);
175.24  (3) a description of the process through which a home care service agreement or 
175.25  service plan between a resident and the arranged home care provider, if any, may be 
175.26  modified, amended, or terminated;
175.27  (4) the arranged home care provider's billing and payment procedures and 
175.28  requirements; and
175.29  (5) any limits to the services available from the arranged provider.
175.30  EFFECTIVE DATE.This section is effective January 1, 2007.

175.31      Sec. 11. Minnesota Statutes 2004, section 144D.05, is amended to read:
175.32  144D.05 AUTHORITY OF COMMISSIONER.
175.33  The commissioner shall, upon receipt of information which may indicate the failure 
175.34  of the elderly housing with services establishment, a resident, a resident's representative, 
175.35  or a service provider to comply with a legal requirement to which one or more of them 
176.1   may be subject, make appropriate referrals to other governmental agencies and entities 
176.2   having jurisdiction over the subject matter. The commissioner may also make referrals 
176.3   to any public or private agency the commissioner considers available for appropriate 
176.4   assistance to those involved.
176.5   The commissioner shall have standing to bring an action for injunctive relief 
176.6   in the district court in the district in which an establishment is located to compel the 
176.7   elderly housing with services establishment to meet the requirements of this chapter or 
176.8   other requirements of the state or of any county or local governmental unit to which the 
176.9   establishment is otherwise subject. Proceedings for securing an injunction may be brought 
176.10  by the commissioner through the attorney general or through the appropriate county 
176.11  attorney. The sanctions in this section do not restrict the availability of other sanctions.
176.12  EFFECTIVE DATE.This section is effective January 1, 2007.

176.13      Sec. 12. Minnesota Statutes 2004, section 144D.065, is amended to read:
176.14  144D.065 ESTABLISHMENTS THAT SERVE PERSONS WITH 
176.15  ALZHEIMER'S DISEASE OR RELATED DISORDERS.
176.16  (a) If a housing with services establishment registered under this chapter markets or 
176.17  otherwise promotes services for persons with Alzheimer's disease or related disorders, 
176.18  whether in a segregated or general unit, the facility's establishment's direct care staff and 
176.19  their supervisors must be trained in dementia care.
176.20  (b) Areas of required training include:
176.21  (1) an explanation of Alzheimer's disease and related disorders;
176.22  (2) assistance with activities of daily living;
176.23  (3) problem solving with challenging behaviors; and
176.24  (4) communication skills.
176.25  (c) The establishment shall provide to consumers in written or electronic form a 
176.26  description of the training program, the categories of employees trained, the frequency 
176.27  of training, and the basic topics covered. This information satisfies the disclosure 
176.28  requirements of section  325F.72, subdivision 2, clause (4). 
176.29  EFFECTIVE DATE.This section is effective January 1, 2007.

176.30      Sec. 13. [144G.01] DEFINITIONS.
176.31      Subdivision 1. Scope; other definitions. For purposes of sections 144G.01 to 
176.32  144G.05, the following definitions apply. In addition, the definitions provided in section 
176.33  144D.01 also apply to sections 144G.01 to 144G.05.
176.34      Subd. 2. Assisted living. "Assisted living" means a service or package of services 
176.35  advertised, marketed, or otherwise described, offered, or promoted using the phrase 
177.1   "assisted living" either alone or in combination with other words, whether orally or in 
177.2   writing, and which is subject to the requirements of this chapter.
177.3       Subd. 3. Assisted living client. "Assisted living client" or "client" means a housing 
177.4   with services resident who receives assisted living that is subject to the requirements 
177.5   of this chapter.
177.6       Subd. 4. Commissioner. "Commissioner" means the commissioner of health.
177.7   EFFECTIVE DATE.This section is effective January 1, 2007.

177.8       Sec. 14. [144G.02] ASSISTED LIVING; PROTECTED TITLE; RESTRICTION 
177.9   ON USE; REGULATORY FUNCTIONS.
177.10      Subdivision 1. Protected title; restriction on use. No person or entity may use the 
177.11  phrase "assisted living," whether alone or in combination with other words and whether 
177.12  orally or in writing, to advertise, market, or otherwise describe, offer, or promote itself, or 
177.13  any housing, service, service package, or program that it provides within this state, unless 
177.14  the person or entity is a housing with services establishment that meets the requirements of 
177.15  this chapter, or is a person or entity that provides some or all components of assisted living 
177.16  that meet the requirements of this chapter. A person or entity entitled to use the phrase 
177.17  "assisted living" shall use the phrase only in the context of its participation in assisted 
177.18  living that meets the requirements of this chapter. A housing with services establishment 
177.19  offering or providing assisted living that is not made available to residents in all of its 
177.20  housing units shall identify the number or location of the units in which assisted living 
177.21  is available, and may not use the term "assisted living" in the name of the establishment 
177.22  registered with the commissioner under chapter 144D, or in the name the establishment 
177.23  uses to identify itself to residents or the public.
177.24      Subd. 2. Authority of commissioner. (a) The commissioner, upon receipt of 
177.25  information that may indicate the failure of a housing with services establishment, the 
177.26  arranged home care provider, an assisted living client, or an assisted living client's 
177.27  representative to comply with a legal requirement to which one or more of the entities may 
177.28  be subject, shall make appropriate referrals to other governmental agencies and entities 
177.29  having jurisdiction over the subject matter. The commissioner may also make referrals 
177.30  to any public or private agency the commissioner considers available for appropriate 
177.31  assistance to those involved.
177.32  (b) In addition to the authority with respect to licensed home care providers under 
177.33  sections 144A.45 and 144A.46 and with respect to housing with services establishments 
177.34  under chapter 144D, the commissioner shall have standing to bring an action for injunctive 
177.35  relief in the district court in the district in which a housing with services establishment 
177.36  is located to compel the housing with services establishment or the arranged home care 
178.1   provider to meet the requirements of this chapter or other requirements of the state or of 
178.2   any county or local governmental unit to which the establishment or arranged home care 
178.3   provider is otherwise subject. Proceedings for securing an injunction may be brought by 
178.4   the commissioner through the attorney general or through the appropriate county attorney. 
178.5   The sanctions in this section do not restrict the availability of other sanctions.
178.6   EFFECTIVE DATE.This section is effective January 1, 2007.

178.7       Sec. 15. [144G.03] ASSISTED LIVING REQUIREMENTS.
178.8       Subdivision 1. Verification in annual registration. A registered housing with 
178.9   services establishment using the phrase "assisted living," pursuant to section 144G.02, 
178.10  subdivision 1, shall verify to the commissioner in its annual registration pursuant to chapter 
178.11  144D that the establishment is complying with sections 144G.01 to 144G.05, as applicable.
178.12      Subd. 2. Minimum requirements for assisted living. (a) Assisted living shall 
178.13  be provided or made available only to individuals residing in a registered housing with 
178.14  services establishment. Except as expressly stated in this chapter, a person or entity 
178.15  offering assisted living may define the available services and may offer assisted living to 
178.16  all or some of the residents of a housing with services establishment. The services that 
178.17  comprise assisted living may be provided or made available directly by a housing with 
178.18  services establishment or by persons or entities with which the housing with services 
178.19  establishment has made arrangements.
178.20  (b) A person or entity entitled to use the phrase "assisted living," according to 
178.21  section 144G.02, subdivision 1, shall do so only with respect to a housing with services 
178.22  establishment, or a service, service package, or program available within a housing with 
178.23  services establishment that, at a minimum:
178.24  (1) provides or makes available health-related services under a class A or class F 
178.25  home care license. At a minimum, health-related services must include:
178.26  (i) assistance with self-administration of medication as defined in Minnesota Rules, 
178.27  part 4668.0003, subpart 2a, or medication administration as defined in Minnesota Rules, 
178.28  part 4668.0003, subpart 21a; and
178.29  (ii) assistance with at least three of the following seven activities of daily living: 
178.30  bathing, dressing, grooming, eating, transferring, continence care, and toileting. 
178.31  All health-related services shall be provided in a manner that complies with applicable 
178.32  home care licensure requirements in chapter 144A, sections 148.171 to 148.285, and 
178.33  Minnesota Rules, chapter 4668;
178.34  (2) provides necessary assessments of the physical and cognitive needs of assisted 
178.35  living clients by a registered nurse, as required by applicable home care licensure 
179.1   requirements in chapter 144A, sections 148.171 to 148.285, and Minnesota Rules, chapter 
179.2   4668;
179.3   (3) has and maintains a system for delegation of health care activities to unlicensed 
179.4   assistive health care personnel by a registered nurse, including supervision and evaluation 
179.5   of the delegated activities as required by applicable home care licensure requirements in 
179.6   chapter 144A, sections 148.171 to 148.285, and Minnesota Rules, chapter 4668;
179.7   (4) provides staff access to an on-call registered nurse 24 hours per day, seven 
179.8   days per week;
179.9   (5) has and maintains a system to check on each assisted living client at least daily;
179.10  (6) provides a means for assisted living clients to request assistance for health and 
179.11  safety needs 24 hours per day, seven days per week, from the establishment or a person or 
179.12  entity with which the establishment has made arrangements;
179.13  (7) has a person or persons available 24 hours per day, seven days per week, who 
179.14  is responsible for responding to the requests of assisted living clients for assistance with 
179.15  health or safety needs, who shall be:
179.16  (i)	awake;
179.17  (ii) located in the same building, in an attached building, or on a contiguous campus 
179.18  with the housing with services establishment in order to respond within a reasonable 
179.19  amount of time;
179.20  (iii) capable of communicating with assisted living clients;
179.21  (iv) capable of recognizing the need for assistance;
179.22  (v) capable of providing either the assistance required or summoning the appropriate 
179.23  assistance; and
179.24  (vi) capable of following directions;
179.25  (8) offers to provide or make available at least the following supportive services 
179.26  to assisted living clients:
179.27  (i) two meals per day;
179.28  (ii) weekly housekeeping;
179.29  (iii) weekly laundry service;
179.30  (iv) upon the request of the client, reasonable assistance with arranging for 
179.31  transportation to medical and social services appointments, and the name of or other 
179.32  identifying information about the person or persons responsible for providing this 
179.33  assistance;
179.34  (v) upon the request of the client, reasonable assistance with accessing community 
179.35  resources and social services available in the community, and the name of or other 
180.1   identifying information about the person or persons responsible for providing this 
180.2   assistance; and
180.3   (vi) periodic opportunities for socialization; and
180.4   (9) makes available to all prospective and current assisted living clients information 
180.5   consistent with the uniform format and the required components adopted by the 
180.6   commissioner under section 144G.06. This information must be made available beginning 
180.7   no later than six months after the commissioner makes the uniform format and required 
180.8   components available to providers according to section 144G.06.
180.9       Subd. 3. Exemption from awake-staff requirement. (a) A housing with services 
180.10  establishment that offers or provides assisted living is exempt from the requirement in 
180.11  subdivision 2, paragraph (b), clause (7), item (i), that the person or persons available and 
180.12  responsible for responding to requests for assistance must be awake, if the establishment 
180.13  meets the following requirements:
180.14  (1) the establishment has a maximum capacity to serve 12 or fewer assisted living 
180.15  clients;
180.16  (2) the person or persons available and responsible for responding to requests for 
180.17  assistance are physically present within the housing with services establishment in which 
180.18  the assisted living clients reside;
180.19  (3) the establishment has a system in place that is compatible with the health, safety, 
180.20  and welfare of the establishment's assisted living clients;
180.21  (4) the establishment's housing with services contract, as required by section 
180.22  144D.04, includes a statement disclosing the establishment's qualification for, and 
180.23  intention to rely upon, this exemption;
180.24  (5) the establishment files with the commissioner, for purposes of public information 
180.25  but not review or approval by the commissioner, a statement describing how the 
180.26  establishment meets the conditions in clauses (1) to (4), and makes a copy of this statement 
180.27  available to actual and prospective assisted living clients; and 
180.28  (6) the establishment indicates on its housing with services registration, under 
180.29  section 144D.02 or 144D.03, as applicable, that it qualifies for and intends to rely upon the 
180.30  exemption under this subdivision.
180.31      Subd. 4. Nursing assessment. (a) A housing with services establishment offering or 
180.32  providing assisted living shall:
180.33  (1) offer to have the arranged home care provider conduct a nursing assessment by 
180.34  a registered nurse of the physical and cognitive needs of the prospective resident and 
180.35  propose a service agreement or service plan prior to the date on which a prospective 
181.1   resident executes a contract with a housing with services establishment or the date on 
181.2   which a prospective resident moves in, whichever is earlier; and
181.3   (2) inform the prospective resident of the availability of and contact information for 
181.4   long-term care consultation services under section 256B.0911, prior to the date on which a 
181.5   prospective resident executes a contract with a housing with services establishment or the 
181.6   date on which a prospective resident moves in, whichever is earlier.
181.7   (b) An arranged home care provider is not obligated to conduct a nursing assessment 
181.8   by a registered nurse when requested by a prospective resident if either the geographic 
181.9   distance between the prospective resident and the provider, or urgent or unexpected 
181.10  circumstances, do not permit the assessment to be conducted prior to the date on which 
181.11  the prospective resident executes a contract or moves in, whichever is earlier. When such 
181.12  circumstances occur, the arranged home care provider shall offer to conduct a telephone 
181.13  conference whenever reasonably possible. 
181.14  (c) The arranged home care provider shall comply with applicable home care 
181.15  licensure requirements in chapter 144A, sections 148.171 to 148.285, and Minnesota 
181.16  Rules, chapter 4668, with respect to the provision of a nursing assessment prior to the 
181.17  delivery of nursing services and the execution of a home care service plan or service 
181.18  agreement.
181.19      Subd. 5. Assistance with arranged home care provider. The housing with services 
181.20  establishment shall provide each assisted living client with identifying information about a 
181.21  person or persons reasonably available to assist the client with concerns the client may 
181.22  have with respect to the services provided by the arranged home care provider. The 
181.23  establishment shall keep each assisted living client reasonably informed of any changes in 
181.24  the personnel referenced in this subdivision. Upon request of the assisted living client, 
181.25  such personnel or designee shall provide reasonable assistance to the assisted living client 
181.26  in addressing concerns regarding services provided by the arranged home care provider.
181.27      Subd. 6. Termination of housing with services contract. If a housing with 
181.28  services establishment terminates a housing with services contract with an assisted living 
181.29  client, the establishment shall provide the assisted living client, and the legal or designated 
181.30  representative of the assisted living client, if any, with a written notice of termination 
181.31  which includes the following information:
181.32  (1) the effective date of termination;
181.33  (2) the section of the contract that authorizes the termination;
181.34  (3) without extending the termination notice period, an affirmative offer to meet with 
181.35  the assisted living client and, if applicable, client representatives, within no more than five 
181.36  business days of the date of the termination notice to discuss the termination;
182.1   (4) an explanation that:
182.2   (i) the assisted living client must vacate the apartment, along with all personal 
182.3   possessions, on or before the effective date of termination;
182.4   (ii) failure to vacate the apartment by the date of termination may result in the filing 
182.5   of an eviction action in court by the establishment, and that the assisted living client may 
182.6   present a defense, if any, to the court at that time; and 
182.7   (iii) the assisted living client may seek legal counsel in connection with the notice 
182.8   of termination;
182.9   (5) a statement that, with respect to the notice of termination, reasonable 
182.10  accommodation is available for the disability of the assisted living client, if any; and
182.11  (6) the name and contact information of the representative of the establishment 
182.12  with whom the assisted living client or client representatives may discuss the notice of 
182.13  termination.
182.14  EFFECTIVE DATE.This section is effective January 1, 2007.

182.15      Sec. 16. [144G.04] RESERVATION OF RIGHTS.
182.16      Subdivision 1. Use of services. Nothing in this chapter requires an assisted living 
182.17  client to utilize any service provided or made available in assisted living.
182.18      Subd. 2. Housing with services contracts. Nothing in this chapter requires a 
182.19  housing with services establishment to execute or refrain from terminating a housing with 
182.20  services contract with a prospective or current resident who is unable or unwilling to meet 
182.21  the requirements of residency, with or without assistance. 
182.22      Subd. 3. Provision of services. Nothing in this chapter requires the arranged home 
182.23  care provider to offer or continue to provide services under a service agreement or service 
182.24  plan to a prospective or current resident of the establishment whose needs cannot be 
182.25  met by the arranged home care provider.
182.26      Subd. 4. Altering operations; service packages. Nothing in this chapter requires 
182.27  a housing with services establishment or arranged home care provider offering assisted 
182.28  living to fundamentally alter the nature of the operations of the establishment or the 
182.29  provider in order to accommodate the request or need for facilities or services by any 
182.30  assisted living client, or to refrain from requiring, as a condition of residency, that an 
182.31  assisted living client pay for a package of assisted living services even if the client does 
182.32  not choose to utilize all or some of the services in the package.
182.33  EFFECTIVE DATE.This section is effective January 1, 2007.

182.34      Sec. 17. [144G.05] REIMBURSEMENT UNDER ASSISTED LIVING SERVICE 
182.35  PACKAGES.
183.1   Notwithstanding the provisions of this chapter, the requirements for the Elderly 
183.2   Waiver program's assisted living payment rates under section 256B.0915, subdivision 
183.3   3e, shall continue to be effective and providers who do not meet the requirements of 
183.4   this chapter may continue to receive payment under section 256B.0915, subdivision 3e, 
183.5   as long as they continue to meet the definitions and standards for assisted living and 
183.6   assisted living plus set forth in the federally approved Elderly Home and Community 
183.7   Based Services Waiver Program (Control Number 0025.91). Providers of assisted living 
183.8   for the Community Alternatives for Disabled Individuals (CADI) and Traumatic Brain 
183.9   Injury (TBI) waivers shall continue to receive payment as long as they continue to meet 
183.10  the definitions and standards for assisted living and assisted living plus set forth in the 
183.11  federally approved CADI and TBI waiver plans.
183.12  EFFECTIVE DATE.This section is effective January 1, 2007.

183.13      Sec. 18. [144G.06] UNIFORM CONSUMER INFORMATION GUIDE.
183.14  (a) The commissioner of health shall establish an advisory committee consisting 
183.15  of representatives of consumers, providers, county and state officials, and other 
183.16  groups the commissioner considers appropriate. The advisory committee shall present 
183.17  recommendations to the commissioner on:
183.18  (1) a format for a guide to be used by individual providers of assisted living, as 
183.19  defined in section 144G.01, that includes information about services offered by that 
183.20  provider, service costs, and other relevant provider-specific information, as well as a 
183.21  statement of philosophy and values associated with assisted living, presented in uniform 
183.22  categories that facilitate comparison with guides issued by other providers; and
183.23  (2) requirements for informing assisted living clients, as defined in section 144G.01, 
183.24  of their applicable legal rights.
183.25  (b) The commissioner, after reviewing the recommendations of the advisory 
183.26  committee, shall adopt a uniform format for the guide to be used by individual providers, 
183.27  and the required components of materials to be used by providers to inform assisted 
183.28  living clients of their legal rights, and shall make the uniform format and the required 
183.29  components available to assisted living providers.

183.30      Sec. 19. REVISOR'S INSTRUCTION.
183.31  (a) The revisor of statutes shall strike all references to the "Class E assisted living 
183.32  home care programs license," "Class E license," and similar terms in Minnesota Rules, 
183.33  chapters 4668 and 4669. In sections affected by this instruction, the revisor may make 
183.34  changes necessary to correct the punctuation, grammar, or structure of the remaining text 
183.35  and preserve its meaning.
184.1   (b) The revisor of statutes shall change the term "assisted living home care provider," 
184.2   "assisted living license," and similar terms to "Class F home care provider," "Class F 
184.3   license," and similar terms, in Minnesota Rules, chapter 4668. In sections affected by this 
184.4   instruction, the revisor may make changes necessary to correct the punctuation, grammar, 
184.5   or structure of the remaining text and preserve its meaning.
184.6   EFFECTIVE DATE.This section is effective January 1, 2007.

184.7       Sec. 20.  REPEALER.
184.8   Minnesota Rules, part 4668.0215, is repealed effective January 1, 2007.

184.9                                          ARTICLE 20
184.10                                       LONG-TERM CARE

184.11      Section 1. Minnesota Statutes 2004, section 144.0724, subdivision 3, is amended to 
184.12  read:
184.13      Subd. 3. Resident reimbursement classifications. (a) Resident reimbursement 
184.14  classifications shall be based on the minimum data set, version 2.0 assessment instrument, 
184.15  or its successor version mandated by the Centers for Medicare and Medicaid Services 
184.16  that nursing facilities are required to complete for all residents. The commissioner of 
184.17  health shall establish resident classes according to the 34 group, resource utilization 
184.18  groups, version III or RUG-III model. Resident classes must be established based on the 
184.19  individual items on the minimum data set and must be completed according to the facility 
184.20  manual for case mix classification issued by the Minnesota Department of Health. The 
184.21  facility manual for case mix classification shall be drafted by the Minnesota Department 
184.22  of Health and presented to the chairs of health and human services legislative committees 
184.23  by December 31, 2001.
184.24  (b) Each resident must be classified based on the information from the minimum 
184.25  data set according to general domains in clauses (1) to (7):
184.26  (1) extensive services where a resident requires intravenous feeding or medications, 
184.27  suctioning, or tracheostomy care, or is on a ventilator or respirator;
184.28  (2) rehabilitation where a resident requires physical, occupational, or speech therapy;
184.29  (3) special care where a resident has cerebral palsy; quadriplegia; multiple sclerosis; 
184.30  pressure ulcers; ulcers; fever with vomiting, weight loss, pneumonia, or dehydration; 
184.31  surgical wounds with treatment; or tube feeding and aphasia; or is receiving radiation 
184.32  therapy;
184.33  (4) clinically complex status where a resident has tube feeding, burns, coma, 
184.34  septicemia, pneumonia, internal bleeding, chemotherapy, dialysis, oxygen, transfusions, 
185.1   foot infections or lesions with treatment, heiplegia/hemiparesis hemiplegia/hemiparesis, 
185.2   physician visits or order changes, or diabetes with injections and order changes;
185.3   (5) impaired cognition where a resident has poor cognitive performance;
185.4   (6) behavior problems where a resident exhibits wandering or socially inappropriate 
185.5   or disruptive behavior, has hallucinations or delusions, is physically or verbally abusive 
185.6   toward others, or resists care, unless the resident's other condition would place the resident 
185.7   in other categories; and
185.8   (7) reduced physical functioning where a resident has no special clinical conditions.
185.9   (c) The commissioner of health shall establish resident classification according to a 
185.10  34 group model based on the information on the minimum data set and within the general 
185.11  domains listed in paragraph (b), clauses (1) to (7). Detailed descriptions of each resource 
185.12  utilization group shall be defined in the facility manual for case mix classification issued 
185.13  by the Minnesota Department of Health. The 34 groups are described as follows:
185.14  (1) SE3: requires four or five extensive services;
185.15  (2) SE2: requires two or three extensive services;
185.16  (3) SE1: requires one extensive service;
185.17  (4) RAD: requires rehabilitation services and is dependent in activity of daily living 
185.18  (ADL) at a count of 17 or 18;
185.19  (5) RAC: requires rehabilitation services and ADL count is 14 to 16;
185.20  (6) RAB: requires rehabilitation services and ADL count is ten to 13;
185.21  (7) RAA: requires rehabilitation services and ADL count is four to nine;
185.22  (8) SSC: requires special care and ADL count is 17 or 18;
185.23  (9) SSB: requires special care and ADL count is 15 or 16;
185.24  (10) SSA: requires special care and ADL count is seven to 14;
185.25  (11) CC2: clinically complex with depression and ADL count is 17 or 18;
185.26  (12) CC1: clinically complex with no depression and ADL count is 17 or 18;
185.27  (13) CB2: clinically complex with depression and ADL count is 12 to 16;
185.28  (14) CB1: clinically complex with no depression and ADL count is 12 to 16;
185.29  (15) CA2: clinically complex with depression and ADL count is four to 11;
185.30  (16) CA1: clinically complex with no depression and ADL count is four to 11;
185.31  (17) IB2: impaired cognition with nursing rehabilitation and ADL count is six to ten;
185.32  (18) IB1: impaired cognition with no nursing rehabilitation and ADL count is six 
185.33  to ten;
185.34  (19) IA2: impaired cognition with nursing rehabilitation and ADL count is four or 
185.35  five;
186.1   (20) IA1: impaired cognition with no nursing rehabilitation and ADL count is four 
186.2   or five;
186.3   (21) BB2: behavior problems with nursing rehabilitation and ADL count is six to ten;
186.4   (22) BB1: behavior problems with no nursing rehabilitation and ADL count is 
186.5   six to ten;
186.6   (23) BA2: behavior problems with nursing rehabilitation and ADL count is four to 
186.7   five;
186.8   (24) BA1: behavior problems with no nursing rehabilitation and ADL count is 
186.9   four to five;
186.10  (25) PE2: reduced physical functioning with nursing rehabilitation and ADL count 
186.11  is 16 to 18;
186.12  (26) PE1: reduced physical functioning with no nursing rehabilitation and ADL 
186.13  count is 16 to 18;
186.14  (27) PD2: reduced physical functioning with nursing rehabilitation and ADL count 
186.15  is 11 to 15;
186.16  (28) PD1: reduced physical functioning with no nursing rehabilitation and ADL 
186.17  count is 11 to 15;
186.18  (29) PC2: reduced physical functioning with nursing rehabilitation and ADL count 
186.19  is nine or ten;
186.20  (30) PC1: reduced physical functioning with no nursing rehabilitation and ADL 
186.21  count is nine or ten;
186.22  (31) PB2: reduced physical functioning with nursing rehabilitation and ADL count 
186.23  is six to eight;
186.24  (32) PB1: reduced physical functioning with no nursing rehabilitation and ADL 
186.25  count is six to eight;
186.26  (33) PA2: reduced physical functioning with nursing rehabilitation and ADL count 
186.27  is four or five; and
186.28  (34) PA1: reduced physical functioning with no nursing rehabilitation and ADL 
186.29  count is four or five.

186.30      Sec. 2. Minnesota Statutes 2004, section 144.0724, subdivision 4, is amended to read:
186.31      Subd. 4. Resident assessment schedule. (a) A facility must conduct and 
186.32  electronically submit to the commissioner of health case mix assessments that conform 
186.33  with the assessment schedule defined by Code of Federal Regulations, title 42, section  
186.34  483.20, and published by the United States Department of Health and Human Services, 
186.35  Centers for Medicare and Medicaid Services, in the Long Term Care Assessment 
186.36  Instrument User's Manual, version 2.0, October 1995, and subsequent clarifications made 
187.1   in the Long-Term Care Assessment Instrument Questions and Answers, version 2.0, 
187.2   August 1996. The commissioner of health may substitute successor manuals or question 
187.3   and answer documents published by the United States Department of Health and Human 
187.4   Services, Centers for Medicare and Medicaid Services, to replace or supplement the 
187.5   current version of the manual or document. 
187.6   (b) The assessments used to determine a case mix classification for reimbursement 
187.7   include the following:
187.8   (1) a new admission assessment must be completed by day 14 following admission;
187.9   (2) an annual assessment must be completed within 366 days of the last 
187.10  comprehensive assessment;
187.11  (3) a significant change assessment must be completed within 14 days of the 
187.12  identification of a significant change; and
187.13  (4) the second quarterly assessment following either a new admission assessment, 
187.14  an annual assessment, or a significant change assessment, and all quarterly assessments 
187.15  beginning October 1, 2006. Each quarterly assessment must be completed within 92 
187.16  days of the previous assessment.

187.17      Sec. 3. Minnesota Statutes 2005 Supplement, section 144A.071, subdivision 1a, 
187.18  is amended to read:
187.19      Subd. 1a. Definitions. For purposes of sections 144A.071 to 144A.073, the 
187.20  following terms have the meanings given them:
187.21  (a) "Attached fixtures" has the meaning given in Minnesota Rules, part 9549.0020, 
187.22  subpart 6.
187.23  (b) "Buildings" has the meaning given in Minnesota Rules, part 9549.0020, subpart 
187.24  7.
187.25  (c) "Capital assets" has the meaning given in section 256B.421, subdivision 16.
187.26  (d) "Commenced construction" means that all of the following conditions were met: 
187.27  the final working drawings and specifications were approved by the commissioner of 
187.28  health; the construction contracts were let; a timely construction schedule was developed, 
187.29  stipulating dates for beginning, achieving various stages, and completing construction; 
187.30  and all zoning and building permits were applied for.
187.31  (e) "Completion date" means the date on which a certificate of occupancy clearance 
187.32  for the construction project is issued for a construction project, or if a certificate of 
187.33  occupancy clearance for the construction project is not required, the date on which the 
187.34  construction project is assets are available for facility use.
188.1   (f) "Construction" means any erection, building, alteration, reconstruction, 
188.2   modernization, or improvement necessary to comply with the nursing home licensure 
188.3   rules.
188.4   (g) "Construction project" means:
188.5   (1) a capital asset addition to, or replacement of a nursing home or certified boarding 
188.6   care home that results in new space or the remodeling of or renovations to existing 
188.7   facility space; and
188.8   (2) the remodeling or renovation of existing facility space the use of which is 
188.9   modified as a result of the project described in clause (1). This existing space and the 
188.10  project described in clause (1) must be used for the functions as designated on the 
188.11  construction plans on completion of the project described in clause (1) for a period of 
188.12  not less than 24 months.
188.13  (h) "Depreciation guidelines" means the most recent publication of "The Estimated 
188.14  Useful Lives of Depreciable Hospital Assets," issued by the American Hospital 
188.15  Association, 840 North Lake Shore Drive, Chicago, Illinois, 60611.
188.16  (i) "New licensed" or "new certified beds" means:
188.17  (1) newly constructed beds in a facility or the construction of a new facility that 
188.18  would increase the total number of licensed nursing home beds or certified boarding 
188.19  care or nursing home beds in the state; or
188.20  (2) newly licensed nursing home beds or newly certified boarding care or nursing 
188.21  home beds that result from remodeling of the facility that involves relocation of beds but 
188.22  does not result in an increase in the total number of beds, except when the project involves 
188.23  the upgrade of boarding care beds to nursing home beds, as defined in section 144A.073, 
188.24  subdivision 1. "Remodeling" includes any of the type of conversion, renovation, 
188.25  replacement, or upgrading projects as defined in section 144A.073, subdivision 1.
188.26  (j) "Project construction costs" means the cost of the following items that have 
188.27  a completion date within 12 months before or after the completion date of the project 
188.28  described in item (g), clause (1):
188.29  (1) facility capital asset additions;
188.30  (2) replacements;
188.31  (3) renovations;
188.32  (4) remodeling projects;
188.33  (5) construction site preparation costs;
188.34  (6) related soft costs; and
188.35  (7) the cost of new technology implemented as part of the construction project 
188.36  and depreciable equipment directly identified to the project, if the construction costs for 
189.1   clauses (1) to (6) exceed the threshold for additions and replacements stated in section 
189.2   256B.431, subdivision 16. Technology and depreciable equipment shall be included in the 
189.3   project construction costs unless a written election is made by the facility, to not include 
189.4   it in the facility's appraised value for purposes of Minnesota Rules, part 9549.0020, 
189.5   subpart 5. Debt incurred for purchase of technology and depreciable equipment shall be 
189.6   included as allowable debt for purposes of Minnesota Rules, part 9549.0060, subpart 5, 
189.7   items A and C, unless the written election is to not include it. Any new technology and 
189.8   depreciable equipment included in the project construction costs that the facility elects 
189.9   not to include in its appraised value and allowable debt shall be treated as provided in 
189.10  section 256B.431, subdivision 17, paragraph (b). Written election under this paragraph 
189.11  must be included in the facility's request for the rate change related to the project, and 
189.12  this election may not be changed.
189.13  (k) "Technology" means information systems or devices that make documentation, 
189.14  charting, and staff time more efficient or encourage and allow for care through alternative 
189.15  settings including, but not limited to, touch screens, monitors, hand-helds, swipe cards, 
189.16  motion detectors, pagers, telemedicine, medication dispensers, and equipment to monitor 
189.17  vital signs and self-injections, and to observe skin and other conditions.

189.18      Sec. 4. Minnesota Statutes 2004, section 144A.071, subdivision 4a, is amended to read:
189.19      Subd. 4a. Exceptions for replacement beds.  It is in the best interest of the state 
189.20  to ensure that nursing homes and boarding care homes continue to meet the physical 
189.21  plant licensing and certification requirements by permitting certain construction projects.  
189.22  Facilities should be maintained in condition to satisfy the physical and emotional needs 
189.23  of residents while allowing the state to maintain control over nursing home expenditure 
189.24  growth.
189.25  The commissioner of health in coordination with the commissioner of human 
189.26  services, may approve the renovation, replacement, upgrading, or relocation of a nursing 
189.27  home or boarding care home, under the following conditions:
189.28  (a) to license or certify beds in a new facility constructed to replace a facility or to 
189.29  make repairs in an existing facility that was destroyed or damaged after June 30, 1987, by 
189.30  fire, lightning, or other hazard provided:
189.31  (i) destruction was not caused by the intentional act of or at the direction of a 
189.32  controlling person of the facility;
189.33  (ii) at the time the facility was destroyed or damaged the controlling persons of the 
189.34  facility maintained insurance coverage for the type of hazard that occurred in an amount 
189.35  that a reasonable person would conclude was adequate;
190.1   (iii) the net proceeds from an insurance settlement for the damages caused by the 
190.2   hazard are applied to the cost of the new facility or repairs;
190.3   (iv) the new facility is constructed on the same site as the destroyed facility or on 
190.4   another site subject to the restrictions in section 144A.073, subdivision 5;
190.5   (v) the number of licensed and certified beds in the new facility does not exceed the 
190.6   number of licensed and certified beds in the destroyed facility; and
190.7   (vi) the commissioner determines that the replacement beds are needed to prevent an 
190.8   inadequate supply of beds.
190.9   Project construction costs incurred for repairs authorized under this clause shall not be 
190.10  considered in the dollar threshold amount defined in subdivision 2;
190.11  (b) to license or certify beds that are moved from one location to another within a 
190.12  nursing home facility, provided the total costs of remodeling performed in conjunction 
190.13  with the relocation of beds does not exceed $1,000,000;
190.14  (c) to license or certify beds in a project recommended for approval under section 
190.15  144A.073;
190.16  (d) to license or certify beds that are moved from an existing state nursing home to 
190.17  a different state facility, provided there is no net increase in the number of state nursing 
190.18  home beds;
190.19  (e) to certify and license as nursing home beds boarding care beds in a certified 
190.20  boarding care facility if the beds meet the standards for nursing home licensure, or in a 
190.21  facility that was granted an exception to the moratorium under section 144A.073, and if 
190.22  the cost of any remodeling of the facility does not exceed $1,000,000.  If boarding care 
190.23  beds are licensed as nursing home beds, the number of boarding care beds in the facility 
190.24  must not increase beyond the number remaining at the time of the upgrade in licensure.  
190.25  The provisions contained in section 144A.073 regarding the upgrading of the facilities 
190.26  do not apply to facilities that satisfy these requirements;
190.27  (f) to license and certify up to 40 beds transferred from an existing facility owned and 
190.28  operated by the Amherst H. Wilder Foundation in the city of St. Paul to a new unit at the 
190.29  same location as the existing facility that will serve persons with Alzheimer's disease and 
190.30  other related disorders.  The transfer of beds may occur gradually or in stages, provided 
190.31  the total number of beds transferred does not exceed 40.  At the time of licensure and 
190.32  certification of a bed or beds in the new unit, the commissioner of health shall delicense 
190.33  and decertify the same number of beds in the existing facility.  As a condition of receiving 
190.34  a license or certification under this clause, the facility must make a written commitment 
190.35  to the commissioner of human services that it will not seek to receive an increase in its 
190.36  property-related payment rate as a result of the transfers allowed under this paragraph;
191.1   (g) to license and certify nursing home beds to replace currently licensed and certified 
191.2   boarding care beds which may be located either in a remodeled or renovated boarding care 
191.3   or nursing home facility or in a remodeled, renovated, newly constructed, or replacement 
191.4   nursing home facility within the identifiable complex of health care facilities in which the 
191.5   currently licensed boarding care beds are presently located, provided that the number of 
191.6   boarding care beds in the facility or complex are decreased by the number to be licensed 
191.7   as nursing home beds and further provided that, if the total costs of new construction, 
191.8   replacement, remodeling, or renovation exceed ten percent of the appraised value of 
191.9   the facility or $200,000, whichever is less, the facility makes a written commitment to 
191.10  the commissioner of human services that it will not seek to receive an increase in its 
191.11  property-related payment rate by reason of the new construction, replacement, remodeling, 
191.12  or renovation.  The provisions contained in section 144A.073 regarding the upgrading of 
191.13  facilities do not apply to facilities that satisfy these requirements;
191.14  (h) to license as a nursing home and certify as a nursing facility a facility that is 
191.15  licensed as a boarding care facility but not certified under the medical assistance program, 
191.16  but only if the commissioner of human services certifies to the commissioner of health that 
191.17  licensing the facility as a nursing home and certifying the facility as a nursing facility will 
191.18  result in a net annual savings to the state general fund of $200,000 or more;
191.19  (i) to certify, after September 30, 1992, and prior to July 1, 1993, existing nursing 
191.20  home beds in a facility that was licensed and in operation prior to January 1, 1992;
191.21  (j) to license and certify new nursing home beds to replace beds in a facility acquired 
191.22  by the Minneapolis Community Development Agency as part of redevelopment activities 
191.23  in a city of the first class, provided the new facility is located within three miles of the site 
191.24  of the old facility.  Operating and property costs for the new facility must be determined 
191.25  and allowed under section 256B.431 or 256B.434;
191.26  (k) to license and certify up to 20 new nursing home beds in a community-operated 
191.27  hospital and attached convalescent and nursing care facility with 40 beds on April 21, 
191.28  1991, that suspended operation of the hospital in April 1986.  The commissioner of human 
191.29  services shall provide the facility with the same per diem property-related payment rate 
191.30  for each additional licensed and certified bed as it will receive for its existing 40 beds;
191.31  (l) to license or certify beds in renovation, replacement, or upgrading projects as 
191.32  defined in section 144A.073, subdivision 1, so long as the cumulative total costs of the 
191.33  facility's remodeling projects do not exceed $1,000,000;
191.34  (m) to license and certify beds that are moved from one location to another for the 
191.35  purposes of converting up to five four-bed wards to single or double occupancy rooms 
192.1   in a nursing home that, as of January 1, 1993, was county-owned and had a licensed 
192.2   capacity of 115 beds;
192.3   (n) to allow a facility that on April 16, 1993, was a 106-bed licensed and certified 
192.4   nursing facility located in Minneapolis to layaway all of its licensed and certified nursing 
192.5   home beds.  These beds may be relicensed and recertified in a newly constructed teaching 
192.6   nursing home facility affiliated with a teaching hospital upon approval by the legislature.  
192.7   The proposal must be developed in consultation with the interagency committee on 
192.8   long-term care planning.  The beds on layaway status shall have the same status as 
192.9   voluntarily delicensed and decertified beds, except that beds on layaway status remain 
192.10  subject to the surcharge in section 256.9657.  This layaway provision expires July 1, 1998;
192.11  (o) to allow a project which will be completed in conjunction with an approved 
192.12  moratorium exception project for a nursing home in southern Cass County and which is 
192.13  directly related to that portion of the facility that must be repaired, renovated, or replaced, 
192.14  to correct an emergency plumbing problem for which a state correction order has been 
192.15  issued and which must be corrected by August 31, 1993;
192.16  (p) to allow a facility that on April 16, 1993, was a 368-bed licensed and certified 
192.17  nursing facility located in Minneapolis to layaway, upon 30 days prior written notice to 
192.18  the commissioner, up to 30 of the facility's licensed and certified beds by converting 
192.19  three-bed wards to single or double occupancy.  Beds on layaway status shall have the 
192.20  same status as voluntarily delicensed and decertified beds except that beds on layaway 
192.21  status remain subject to the surcharge in section 256.9657, remain subject to the license 
192.22  application and renewal fees under section 144A.07 and shall be subject to a $100 per bed 
192.23  reactivation fee.  In addition, at any time within three years of the effective date of the 
192.24  layaway, the beds on layaway status may be:
192.25  (1) relicensed and recertified upon relocation and reactivation of some or all of 
192.26  the beds to an existing licensed and certified facility or facilities located in Pine River, 
192.27  Brainerd, or International Falls; provided that the total project construction costs related to 
192.28  the relocation of beds from layaway status for any facility receiving relocated beds may 
192.29  not exceed the dollar threshold provided in subdivision 2 unless the construction project 
192.30  has been approved through the moratorium exception process under section 144A.073;
192.31  (2) relicensed and recertified, upon reactivation of some or all of the beds within the 
192.32  facility which placed the beds in layaway status, if the commissioner has determined a 
192.33  need for the reactivation of the beds on layaway status.
192.34  The property-related payment rate of a facility placing beds on layaway status 
192.35  must be adjusted by the incremental change in its rental per diem after recalculating the 
192.36  rental per diem as provided in section 256B.431, subdivision 3a, paragraph (c).  The 
193.1   property-related payment rate for a facility relicensing and recertifying beds from layaway 
193.2   status must be adjusted by the incremental change in its rental per diem after recalculating 
193.3   its rental per diem using the number of beds after the relicensing to establish the facility's 
193.4   capacity day divisor, which shall be effective the first day of the month following the 
193.5   month in which the relicensing and recertification became effective.  Any beds remaining 
193.6   on layaway status more than three years after the date the layaway status became effective 
193.7   must be removed from layaway status and immediately delicensed and decertified;
193.8   (q) to license and certify beds in a renovation and remodeling project to convert 12 
193.9   four-bed wards into 24 two-bed rooms, expand space, and add improvements in a nursing 
193.10  home that, as of January 1, 1994, met the following conditions:  the nursing home was 
193.11  located in Ramsey County; had a licensed capacity of 154 beds; and had been ranked 
193.12  among the top 15 applicants by the 1993 moratorium exceptions advisory review panel.  
193.13  The total project construction cost estimate for this project must not exceed the cost 
193.14  estimate submitted in connection with the 1993 moratorium exception process;
193.15  (r) to license and certify up to 117 beds that are relocated from a licensed and 
193.16  certified 138-bed nursing facility located in St. Paul to a hospital with 130 licensed 
193.17  hospital beds located in South St. Paul, provided that the nursing facility and hospital are 
193.18  owned by the same or a related organization and that prior to the date the relocation is 
193.19  completed the hospital ceases operation of its inpatient hospital services at that hospital.  
193.20  After relocation, the nursing facility's status under section 256B.431, subdivision 2j, shall 
193.21  be the same as it was prior to relocation.  The nursing facility's property-related payment 
193.22  rate resulting from the project authorized in this paragraph shall become effective no 
193.23  earlier than April 1, 1996.  For purposes of calculating the incremental change in the 
193.24  facility's rental per diem resulting from this project, the allowable appraised value of 
193.25  the nursing facility portion of the existing health care facility physical plant prior to the 
193.26  renovation and relocation may not exceed $2,490,000;
193.27  (s) to license and certify two beds in a facility to replace beds that were voluntarily 
193.28  delicensed and decertified on June 28, 1991;
193.29  (t) to allow 16 licensed and certified beds located on July 1, 1994, in a 142-bed 
193.30  nursing home and 21-bed boarding care home facility in Minneapolis, notwithstanding 
193.31  the licensure and certification after July 1, 1995, of the Minneapolis facility as a 147-bed 
193.32  nursing home facility after completion of a construction project approved in 1993 under 
193.33  section 144A.073, to be laid away upon 30 days' prior written notice to the commissioner.  
193.34  Beds on layaway status shall have the same status as voluntarily delicensed or decertified 
193.35  beds except that they shall remain subject to the surcharge in section 256.9657.  The 
193.36  16 beds on layaway status may be relicensed as nursing home beds and recertified at 
194.1   any time within five years of the effective date of the layaway upon relocation of some 
194.2   or all of the beds to a licensed and certified facility located in Watertown, provided that 
194.3   the total project construction costs related to the relocation of beds from layaway status 
194.4   for the Watertown facility may not exceed the dollar threshold provided in subdivision 
194.5   2 unless the construction project has been approved through the moratorium exception 
194.6   process under section 144A.073.
194.7   The property-related payment rate of the facility placing beds on layaway status 
194.8   must be adjusted by the incremental change in its rental per diem after recalculating the 
194.9   rental per diem as provided in section 256B.431, subdivision 3a, paragraph (c).  The 
194.10  property-related payment rate for the facility relicensing and recertifying beds from 
194.11  layaway status must be adjusted by the incremental change in its rental per diem after 
194.12  recalculating its rental per diem using the number of beds after the relicensing to establish 
194.13  the facility's capacity day divisor, which shall be effective the first day of the month 
194.14  following the month in which the relicensing and recertification became effective.  Any 
194.15  beds remaining on layaway status more than five years after the date the layaway status 
194.16  became effective must be removed from layaway status and immediately delicensed 
194.17  and decertified;
194.18  (u) to license and certify beds that are moved within an existing area of a facility or 
194.19  to a newly constructed addition which is built for the purpose of eliminating three- and 
194.20  four-bed rooms and adding space for dining, lounge areas, bathing rooms, and ancillary 
194.21  service areas in a nursing home that, as of January 1, 1995, was located in Fridley and had 
194.22  a licensed capacity of 129 beds;
194.23  (v) to relocate 36 beds in Crow Wing County and four beds from Hennepin County 
194.24  to a 160-bed facility in Crow Wing County, provided all the affected beds are under 
194.25  common ownership;
194.26  (w) to license and certify a total replacement project of up to 49 beds located in 
194.27  Norman County that are relocated from a nursing home destroyed by flood and whose 
194.28  residents were relocated to other nursing homes.  The operating cost payment rates for 
194.29  the new nursing facility shall be determined based on the interim and settle-up payment 
194.30  provisions of Minnesota Rules, part 9549.0057, and the reimbursement provisions of 
194.31  section 256B.431, except that subdivision 26, paragraphs (a) and (b), shall not apply until 
194.32  the second rate year after the settle-up cost report is filed.  Property-related reimbursement 
194.33  rates shall be determined under section 256B.431, taking into account any federal or state 
194.34  flood-related loans or grants provided to the facility;
194.35  (x) to license and certify a total replacement project of up to 129 beds located 
194.36  in Polk County that are relocated from a nursing home destroyed by flood and whose 
195.1   residents were relocated to other nursing homes.  The operating cost payment rates for 
195.2   the new nursing facility shall be determined based on the interim and settle-up payment 
195.3   provisions of Minnesota Rules, part 9549.0057, and the reimbursement provisions of 
195.4   section 256B.431, except that subdivision 26, paragraphs (a) and (b), shall not apply until 
195.5   the second rate year after the settle-up cost report is filed.  Property-related reimbursement 
195.6   rates shall be determined under section 256B.431, taking into account any federal or state 
195.7   flood-related loans or grants provided to the facility;
195.8   (y) to license and certify beds in a renovation and remodeling project to convert 13 
195.9   three-bed wards into 13 two-bed rooms and 13 single-bed rooms, expand space, and 
195.10  add improvements in a nursing home that, as of January 1, 1994, met the following 
195.11  conditions:  the nursing home was located in Ramsey County, was not owned by a hospital 
195.12  corporation, had a licensed capacity of 64 beds, and had been ranked among the top 15 
195.13  applicants by the 1993 moratorium exceptions advisory review panel.  The total project 
195.14  construction cost estimate for this project must not exceed the cost estimate submitted in 
195.15  connection with the 1993 moratorium exception process;
195.16  (z) to license and certify up to 150 nursing home beds to replace an existing 285 
195.17  bed nursing facility located in St. Paul.  The replacement project shall include both the 
195.18  renovation of existing buildings and the construction of new facilities at the existing 
195.19  site.  The reduction in the licensed capacity of the existing facility shall occur during the 
195.20  construction project as beds are taken out of service due to the construction process.  Prior 
195.21  to the start of the construction process, the facility shall provide written information to the 
195.22  commissioner of health describing the process for bed reduction, plans for the relocation 
195.23  of residents, and the estimated construction schedule.  The relocation of residents shall be 
195.24  in accordance with the provisions of law and rule;
195.25  (aa) to allow the commissioner of human services to license an additional 36 beds to 
195.26  provide residential services for the physically handicapped under Minnesota Rules, parts 
195.27  9570.2000 to 9570.3400, in a 198-bed nursing home located in Red Wing, provided that 
195.28  the total number of licensed and certified beds at the facility does not increase;
195.29  (bb) to license and certify a new facility in St. Louis county with 44 beds constructed 
195.30  to replace an existing facility in St. Louis County with 31 beds, which has resident rooms 
195.31  on two separate floors and an antiquated elevator that creates safety concerns for residents 
195.32  and prevents nonambulatory residents from residing on the second floor.  The project shall 
195.33  include the elimination of three- and four-bed rooms;
195.34  (cc) to license and certify four beds in a 16-bed certified boarding care home in 
195.35  Minneapolis to replace beds that were voluntarily delicensed and decertified on or 
195.36  before March 31, 1992.  The licensure and certification is conditional upon the facility 
196.1   periodically assessing and adjusting its resident mix and other factors which may 
196.2   contribute to a potential institution for mental disease declaration.  The commissioner of 
196.3   human services shall retain the authority to audit the facility at any time and shall require 
196.4   the facility to comply with any requirements necessary to prevent an institution for mental 
196.5   disease declaration, including delicensure and decertification of beds, if necessary;
196.6   (dd) to license and certify 72 beds in an existing facility in Mille Lacs County with 
196.7   80 beds as part of a renovation project.  The renovation must include construction of 
196.8   an addition to accommodate ten residents with beginning and midstage dementia in a 
196.9   self-contained living unit; creation of three resident households where dining, activities, 
196.10  and support spaces are located near resident living quarters; designation of four beds 
196.11  for rehabilitation in a self-contained area; designation of 30 private rooms; and other 
196.12  improvements;
196.13  (ee) to license and certify beds in a facility that has undergone replacement or 
196.14  remodeling as part of a planned closure under section 256B.437;
196.15  (ff) to license and certify a total replacement project of up to 124 beds located 
196.16  in Wilkin County that are in need of relocation from a nursing home significantly 
196.17  damaged by flood. The operating cost payment rates for the new nursing facility shall 
196.18  be determined based on the interim and settle-up payment provisions of Minnesota 
196.19  Rules, part 9549.0057, and the reimbursement provisions of section 256B.431, except 
196.20  that section 256B.431, subdivision 26, paragraphs (a) and (b), shall not apply until the 
196.21  second rate year after the settle-up cost report is filed.  Property-related reimbursement 
196.22  rates shall be determined under section 256B.431, taking into account any federal or state 
196.23  flood-related loans or grants provided to the facility;
196.24  (gg) to allow the commissioner of human services to license an additional nine beds 
196.25  to provide residential services for the physically handicapped under Minnesota Rules, 
196.26  parts 9570.2000 to 9570.3400, in a 240-bed nursing home located in Duluth, provided that 
196.27  the total number of licensed and certified beds at the facility does not increase;
196.28  (hh) to license and certify up to 120 new nursing facility beds to replace beds in a 
196.29  facility in Anoka County, which was licensed for 98 beds as of July 1, 2000, provided the 
196.30  new facility is located within four miles of the existing facility and is in Anoka County.  
196.31  Operating and property rates shall be determined and allowed under section 256B.431 and 
196.32  Minnesota Rules, parts 9549.0010 to 9549.0080, or section 256B.434 or 256B.435.  The 
196.33  provisions of section 256B.431, subdivision 26, paragraphs (a) and (b), do not apply until 
196.34  the second rate year following settle-up; or 
196.35  (ii) to transfer up to 98 beds of a 129-licensed bed facility located in Anoka County 
196.36  that, as of March 25, 2001, is in the active process of closing, to a 122-licensed bed 
197.1   nonprofit nursing facility located in the city of Columbia Heights or its affiliate.  The 
197.2   transfer is effective when the receiving facility notifies the commissioner in writing of the 
197.3   number of beds accepted.  The commissioner shall place all transferred beds on layaway 
197.4   status held in the name of the receiving facility.  The layaway adjustment provisions of 
197.5   section 256B.431, subdivision 30, do not apply to this layaway. The receiving facility 
197.6   may only remove the beds from layaway for recertification and relicensure at the receiving 
197.7   facility's current site, or at a newly constructed facility located in Anoka County.  The 
197.8   receiving facility must receive statutory authorization before removing these beds from 
197.9   layaway status, or may remove these beds from layaway status if removal from layaway 
197.10  status is part of a moratorium exception project approved by the commissioner under 
197.11  section 144A.073.

197.12      Sec. 5. Minnesota Statutes 2004, section 144A.071, subdivision 4c, is amended to read:
197.13      Subd. 4c. Exceptions for replacement beds after June 30, 2003. (a) The 
197.14  commissioner of health, in coordination with the commissioner of human services, may 
197.15  approve the renovation, replacement, upgrading, or relocation of a nursing home or 
197.16  boarding care home, under the following conditions:
197.17  (1) to license and certify an 80-bed city-owned facility in Nicollet County to be 
197.18  constructed on the site of a new city-owned hospital to replace an existing 85-bed facility 
197.19  attached to a hospital that is also being replaced. The threshold allowed for this project 
197.20  under section  144A.073 shall be the maximum amount available to pay the additional 
197.21  medical assistance costs of the new facility; 
197.22  (2) to license and certify 29 beds to be added to an existing 69-bed facility in St. 
197.23  Louis County, provided that the 29 beds must be transferred from active or layaway status 
197.24  at an existing facility in St. Louis County that had 235 beds on April 1, 2003.
197.25  The licensed capacity at the 235-bed facility must be reduced to 206 beds, but the payment 
197.26  rate at that facility shall not be adjusted as a result of this transfer. The operating payment 
197.27  rate of the facility adding beds after completion of this project shall be the same as it was 
197.28  on the day prior to the day the beds are licensed and certified. This project shall not 
197.29  proceed unless it is approved and financed under the provisions of section  144A.073; and 
197.30  (3) to license and certify a new 60-bed facility in Austin, provided that: (i) 45 of 
197.31  the new beds are transferred from a 45-bed facility in Austin under common ownership 
197.32  that is closed and 15 of the new beds are transferred from a 182-bed facility in Albert Lea 
197.33  under common ownership; (ii) the commissioner of human services is authorized by the 
197.34  2004 legislature to negotiate budget-neutral planned nursing facility closures; and (iii) 
197.35  money is available from planned closures of facilities under common ownership to make 
197.36  implementation of this clause budget-neutral to the state. The bed capacity of the Albert 
198.1   Lea facility shall be reduced to 167 beds following the transfer. Of the 60 beds at the 
198.2   new facility, 20 beds shall be used for a special care unit for persons with Alzheimer's 
198.3   disease or related dementias.; and
198.4   (4) to license and certify up to 80 beds transferred from an existing state-owned 
198.5   nursing facility in Cass County to a new facility located on the grounds of the 
198.6   Ah-Gwah-Ching campus. The operating cost payment rates for the new facility shall be 
198.7   determined based on the interim and settle-up payment provisions of Minnesota Rules, 
198.8   part 9549.0057, and the reimbursement provisions of section 256B.431. The property 
198.9   payment rate for the first three years of operation shall be $35 per day. For subsequent 
198.10  years, the property payment rate of $35 per day shall be adjusted for inflation as provided 
198.11  in section 256B.434, subdivision 4, paragraph (c), as long as the facility has a contract 
198.12  under section 256B.434.
198.13  (b) Projects approved under this subdivision shall be treated in a manner equivalent 
198.14  to projects approved under subdivision 4a.

198.15      Sec. 6. Minnesota Statutes 2004, section 144A.10, is amended by adding a subdivision 
198.16  to read:
198.17      Subd. 6e. Use of fines. When the commissioner of health determines the use of, 
198.18  or provides recommendations on the use of fines collected under subdivisions 6 or 6b, 
198.19  two representatives of the nursing home industry, appointed by nursing home trade 
198.20  associations, and two consumer representatives as appointed by the commissioner must 
198.21  be included in the process of developing or preparing any information, reviews, or 
198.22  recommendations on the use of the fines. This includes, but is not limited to, including 
198.23  two representatives of the nursing home industry in any committee designed to provide 
198.24  information and recommendations for the use of the fines.

198.25      Sec. 7. Minnesota Statutes 2004, section 144A.161, subdivision 1, is amended to read:
198.26      Subdivision 1. Definitions. The definitions in this subdivision apply to subdivisions 
198.27  2 to 10.
198.28  (a) "Closure" means the cessation of operations of a facility and the delicensure and 
198.29  decertification of all beds within the facility.
198.30  (b) "Curtailment," "reduction," or "change" refers to any change in operations which 
198.31  would result in or encourage the relocation of residents.
198.32  (c) "Facility" means a nursing home licensed pursuant to this chapter, or a certified 
198.33  boarding care home licensed pursuant to sections  144.50 to  144.56. 
198.34  (d) "Licensee" means the owner of the facility or the owner's designee or the 
198.35  commissioner of health for a facility in receivership.
199.1   (e) "Local agency" "County social services agency" means the county or multicounty 
199.2   social service agency authorized under sections  393.01 and  393.07, as the agency 
199.3   responsible for providing social services for the county in which the nursing home is 
199.4   located. 
199.5   (f) "Plan" means a process developed under subdivision 3, paragraph (b), for the 
199.6   closure, curtailment, reduction, or change in operations in a facility and the subsequent 
199.7   relocation of residents.
199.8   (g) "Relocation" means the discharge of a resident and movement of the resident to 
199.9   another facility or living arrangement as a result of the closing, curtailment, reduction, or 
199.10  change in operations of a nursing home or boarding care home.

199.11      Sec. 8. Minnesota Statutes 2004, section 144A.161, is amended by adding a 
199.12  subdivision to read:
199.13      Subd. 1a. Scope. Where a facility is undertaking closure, curtailment, reduction, or 
199.14  change in operations, the facility and the county social services agency must comply with 
199.15  the requirements of this section.

199.16      Sec. 9. Minnesota Statutes 2004, section 144A.161, subdivision 2, is amended to read:
199.17      Subd. 2. Initial notice from licensee. (a) A licensee shall notify the following 
199.18  parties in writing when there is an intent to close or curtail, reduce, or change operations 
199.19  which would result in or encourage the relocation of residents:
199.20  (1) the commissioner of health;
199.21  (2) the commissioner of human services;
199.22  (3) the local county social services agency;
199.23  (4) the Office of the Ombudsman for Older Minnesotans; and
199.24  (5) the Office of the Ombudsman for Mental Health and Mental Retardation.
199.25  (b) The written notice shall include the names, telephone numbers, facsimile 
199.26  numbers, and e-mail addresses of the persons in the facility responsible for coordinating 
199.27  the licensee's efforts in the planning process, and the number of residents potentially 
199.28  affected by the closure or curtailment, reduction, or change in operations.
199.29  (c) After providing written notice under this section, and prior to admission, the 
199.30  facility must fully inform prospective residents and their families of the intent to close or 
199.31  curtail, reduce, or change operations, and of the relocation plan.

199.32      Sec. 10. Minnesota Statutes 2004, section 144A.161, subdivision 3, is amended to read:
199.33      Subd. 3. Planning process. (a) The local county social services agency shall, 
199.34  within five working days of receiving initial notice of the licensee's intent to close or 
199.35  curtail, reduce, or change operations, provide the licensee and all parties identified in 
200.1   subdivision 2, paragraph (a), with the names, telephone numbers, facsimile numbers, and 
200.2   e-mail addresses of those persons responsible for coordinating local county social services 
200.3   agency efforts in the planning process.
200.4   (b) Within ten working days of receipt of the notice under paragraph (a), the local 
200.5   county social services agency and licensee shall meet to develop the relocation plan. 
200.6   The local county social services agency shall inform the Departments of Health and 
200.7   Human Services, the Office of the Ombudsman for Older Minnesotans, and the Office 
200.8   of the Ombudsman for Mental Health and Mental Retardation of the date, time, and 
200.9   location of the meeting so that their representatives may attend. The relocation plan 
200.10  must be completed within 45 days of receipt of the initial notice. However, the plan may 
200.11  be finalized on an earlier schedule agreed to by all parties. To the extent practicable, 
200.12  consistent with requirements to protect the safety and health of residents, the commissioner 
200.13  may authorize the planning process under this subdivision to occur concurrent with the 
200.14  60-day notice required under subdivision 5a. The plan shall:
200.15  (1) identify the expected date of closure, curtailment, reduction, or change in 
200.16  operations;
200.17  (2) outline the process for public notification of the closure, curtailment, reduction, 
200.18  or change in operations;
200.19  (3) identify efforts that will be made to include other stakeholders in the relocation 
200.20  process;
200.21  (4) outline the process to ensure 60-day advance written notice to residents, family 
200.22  members, and designated representatives;
200.23  (5) present an aggregate description of the resident population remaining to be 
200.24  relocated and the population's needs;
200.25  (6) outline the individual resident assessment process to be utilized;
200.26  (7) identify an inventory of available relocation options, including home and 
200.27  community-based services;
200.28  (8) identify a timeline for submission of the list identified in subdivision 5c, 
200.29  paragraph (b); and
200.30  (9) identify a schedule for the timely completion of each element of the plan; and
200.31  (10) identify the steps the licensee and the county social services agency will take to 
200.32  address the relocation needs of individual residents who may be difficult to place due to 
200.33  specialized care needs such as behavioral health problems.
200.34  (c) All parties to the plan shall refrain from any public notification of the intent to 
200.35  close or curtail, reduce, or change operations until a relocation plan has been established. 
201.1   If the planning process occurs concurrently with the 60-day notice period, this requirement 
201.2   does not apply once 60-day notice is given.

201.3       Sec. 11. Minnesota Statutes 2004, section 144A.161, subdivision 4, is amended to read:
201.4       Subd. 4. Responsibilities of licensee for resident relocations. The licensee shall 
201.5   provide for the safe, orderly, and appropriate relocation of residents. The licensee and 
201.6   facility staff shall cooperate with representatives from the local county social services 
201.7   agency, the Department of Health, the Department of Human Services, the Office of 
201.8   Ombudsman for Older Minnesotans, and ombudsman for mental health and mental 
201.9   retardation in planning for and implementing the relocation of residents.

201.10      Sec. 12. Minnesota Statutes 2004, section 144A.161, subdivision 5, is amended to read:
201.11      Subd. 5. Licensee responsibilities prior to relocation. (a) The licensee shall 
201.12  establish an interdisciplinary team responsible for coordinating and implementing the 
201.13  plan. The interdisciplinary team shall include representatives from the local county social 
201.14  services agency, the Office of Ombudsman for Older Minnesotans, facility staff that 
201.15  provide direct care services to the residents, and facility administration.
201.16  (b) The licensee shall provide a list summary document to the local county social 
201.17  services agency that includes the following information on each resident to be relocated:
201.18  (1) name;
201.19  (2) date of birth;
201.20  (3) Social Security number;
201.21  (4) payment source and medical assistance identification number, if applicable;
201.22  (5) county of financial responsibility;
201.23  (6) date of admission to the facility;
201.24  (5) (7) all diagnoses; and
201.25  (8) the name of and contact information for the resident's physician;
201.26  (6) (9) the name and contact information for the resident's family or other designated 
201.27  representative;
201.28  (10) the names of and contact information for any case managers, if known; and
201.29  (11) information on the resident's status related to commitment and probation.
201.30  (c) The licensee shall consult with the local county social services agency on the 
201.31  availability and development of available resources and on the resident relocation process.

201.32      Sec. 13. Minnesota Statutes 2004, section 144A.161, subdivision 5a, is amended to 
201.33  read:
201.34      Subd. 5a. Licensee responsibilities to provide notice. At least 60 days before the 
201.35  proposed date of closing, curtailment, reduction, or change in operations as agreed to in 
202.1   the plan, the licensee shall send a written notice of closure or curtailment, reduction, or 
202.2   change in operations to each resident being relocated, the resident's family member or 
202.3   designated representative, and the resident's attending physician. The notice must include 
202.4   the following:
202.5   (1) the date of the proposed closure, curtailment, reduction, or change in operations;
202.6   (2) the name, address, telephone number, facsimile number, and e-mail address 
202.7   of the individual or individuals in the facility responsible for providing assistance and 
202.8   information;
202.9   (3) notification of upcoming meetings for residents, families and designated 
202.10  representatives, and resident and family councils to discuss the relocation of residents;
202.11  (4) the name, address, and telephone number of the local county social services 
202.12  agency contact person; and
202.13  (5) the name, address, and telephone number of the Office of Ombudsman for Older 
202.14  Minnesotans and the ombudsman for mental health and mental retardation.
202.15  The notice must comply with all applicable state and federal requirements for notice 
202.16  of transfer or discharge of nursing home residents.

202.17      Sec. 14. Minnesota Statutes 2004, section 144A.161, subdivision 5c, is amended to 
202.18  read:
202.19      Subd. 5c. Licensee responsibility regarding placement information. (a) The 
202.20  licensee shall provide sufficient preparation to residents to ensure safe, orderly, and 
202.21  appropriate discharge and relocation. The licensee shall assist residents in finding 
202.22  placements that respond to personal preferences, such as desired geographic location.
202.23  (b) The licensee shall prepare a resource list with several relocation options for each 
202.24  resident. The list must contain the following information for each relocation option, 
202.25  when applicable:
202.26  (1) the name, address, and telephone and facsimile numbers of each facility with 
202.27  appropriate, available beds or services;
202.28  (2) the certification level of the available beds;
202.29  (3) the types of services available; and
202.30  (4) the name, address, and telephone and facsimile numbers of appropriate available 
202.31  home and community-based placements, services, and settings or other options for 
202.32  individuals with special needs.
202.33  The list shall be made available to residents and their families or designated 
202.34  representatives, and upon request to the Office of Ombudsman for Older Minnesotans, 
202.35  the ombudsman for mental health and Mental Retardation, and the local county social 
202.36  services agency.
203.1   (c) The Senior LinkAge line may make available via a Web site the name, address, 
203.2   and telephone and facsimile numbers of each facility with available beds, the certification 
203.3   level of the available beds, the types of services available, and the number of beds that are 
203.4   available as updated daily by the listed facilities. The licensee must provide residents, 
203.5   their families or designated representatives, the Office of the Ombudsman for Older 
203.6   Minnesotans, the Office of the Ombudsman for Mental Health and Mental Retardation, 
203.7   and the local county social services agency with the toll-free number and Web site address 
203.8   for the Senior LinkAge line.

203.9       Sec. 15. Minnesota Statutes 2004, section 144A.161, subdivision 6, is amended to read:
203.10      Subd. 6. Responsibilities of the licensee during relocation. (a) The licensee 
203.11  shall make arrangements or provide for the transportation of residents to the new facility 
203.12  or placement within a 50-mile radius, or within a larger radius if no suitable options 
203.13  are available within 50 miles. The licensee shall provide a staff person to accompany 
203.14  the resident during transportation, upon request of the resident, the resident's family, or 
203.15  designated representative. The discharge and relocation of residents must comply with all 
203.16  applicable state and federal requirements and must be conducted in a safe, orderly, and 
203.17  appropriate manner. The licensee must ensure that there is no disruption in providing 
203.18  meals, medications, or treatments of a resident during the relocation process.
203.19  (b) Beginning the week following development of the initial relocation plan, the 
203.20  licensee shall submit biweekly weekly status reports to the commissioners of health and 
203.21  human services or their designees and to the local county social services agency. The 
203.22  initial status report must identify:
203.23  (1) the relocation plan developed;
203.24  (2) the interdisciplinary team members; and
203.25  (3) the number of residents to be relocated.
203.26  (c) Subsequent status reports must identify:
203.27  (1) any modifications to the plan;
203.28  (2) any change of interdisciplinary team members;
203.29  (3) the number of residents relocated;
203.30  (4) the destination to which residents have been relocated;
203.31  (5) the number of residents remaining to be relocated; and
203.32  (6) issues or problems encountered during the process and resolution of these issues.

203.33      Sec. 16. Minnesota Statutes 2004, section 144A.161, subdivision 8, is amended to read:
204.1       Subd. 8. Responsibilities of local county social services agency. (a) The local 
204.2   county social services agency shall participate in the meeting as outlined in subdivision 3, 
204.3   paragraph (b), to develop a relocation plan.
204.4   (b) The local county social services agency shall designate a representative to 
204.5   the interdisciplinary team established by the licensee responsible for coordinating the 
204.6   relocation efforts.
204.7   (c) The local county social services agency shall serve as a resource in the relocation 
204.8   process.
204.9   (d) Concurrent with the notice sent to residents from the licensee as provided in 
204.10  subdivision 5a, the local county social services agency shall provide written notice to 
204.11  residents, family, or designated representatives describing:
204.12  (1) the county's role in the relocation process and in the follow-up to relocations;
204.13  (2) a local county social services agency contact name, address, and telephone 
204.14  number; and
204.15  (3) the name, address, and telephone number of the Office of Ombudsman for Older 
204.16  Minnesotans and the ombudsman for mental health and mental retardation.
204.17  (e) The local county social services agency designee shall meet with appropriate 
204.18  facility staff to coordinate any assistance in the relocation process. This coordination 
204.19  shall include participating in group meetings with residents, families, and designated 
204.20  representatives to explain the relocation process.
204.21  (f) The local county social services agency shall monitor compliance with all 
204.22  components of the plan. If the licensee is not in compliance, the local county social 
204.23  services agency shall notify the commissioners of the Departments of Health and Human 
204.24  Services.
204.25  (g) Except as requested by the resident, family member, or designated representative 
204.26  and within the parameters of the Vulnerable Adults Act, the local county social services 
204.27  agency may halt a relocation that it deems inappropriate or dangerous to the health or 
204.28  safety of a resident. The local county social services agency shall pursue remedies to 
204.29  protect the resident during the relocation process, including, but not limited to, assisting 
204.30  the resident with filing an appeal of transfer or discharge, notification of all appropriate 
204.31  licensing boards and agencies, and other remedies available to the county under section  
204.32  626.557, subdivision 10. 
204.33  (h) A member of the local county social services agency staff shall visit residents 
204.34  relocated within 100 miles of the county within 30 days after the relocation. Local This 
204.35  requirement does not apply to changes in operation where the facility moved to a new 
204.36  location and residents chose to move to that new location. The requirement also does not 
205.1   apply to residents admitted after the notice of closure and discharged prior to the actual 
205.2   closure. County social services agency staff shall interview the resident and family or 
205.3   designated representative, observe the resident on site, and review and discuss pertinent 
205.4   medical or social records with appropriate facility staff to:
205.5   (1) assess the adjustment of the resident to the new placement;
205.6   (2) recommend services or methods to meet any special needs of the resident; and
205.7   (3) identify residents at risk.
205.8   (i) The local county social services agency may conduct subsequent follow-up visits 
205.9   in cases where the adjustment of the resident to the new placement is in question.
205.10  (j) Within 60 days of the completion of the follow-up visits, the local county social 
205.11  services agency shall submit a written summary of the follow-up work to the Departments 
205.12  of Health and Human Services in a manner approved by the commissioners.
205.13  (k) The local county social services agency shall submit to the Departments of Health 
205.14  and Human Services a report of any issues that may require further review or monitoring.
205.15  (l) The local county social services agency shall be responsible for the safe and 
205.16  orderly relocation of residents in cases where an emergent need arises or when the licensee 
205.17  has abrogated its responsibilities under the plan.

205.18      Sec. 17. Minnesota Statutes 2005 Supplement, section 256B.0918, subdivision 1, 
205.19  is amended to read:
205.20      Subdivision 1. Program criteria. Beginning on or after October 1, 2005, within 
205.21  the limits of appropriations specifically available for this purpose, the commissioner shall 
205.22  provide funding to qualified provider applicants for employee scholarships for education 
205.23  in nursing and other health care fields. Employee scholarships must be for a course of 
205.24  study that is expected to lead to career advancement with the provider or in the field 
205.25  of long-term care, including home care or care of persons with disabilities, or nursing. 
205.26  Providers that secure this funding must use it to award scholarships to employees who 
205.27  work an average of at least 20 hours per week for the provider. Executive management 
205.28  staff without direct care duties, registered nurses, and therapists are not eligible to receive 
205.29  scholarships under this section.

205.30      Sec. 18. Minnesota Statutes 2005 Supplement, section 256B.0918, subdivision 3, 
205.31  is amended to read:
205.32      Subd. 3. Provider selection criteria. To be considered for scholarship funding, 
205.33  the provider shall submit a completed application within the time frame specified by the 
205.34  commissioner. In awarding funding, the commissioner shall consider the following:
206.1   (1) the size of the provider as measured in annual billing to the medical assistance 
206.2   program. To be eligible, a provider must receive at least $500,000 $300,000 annually 
206.3   in medical assistance payments;
206.4   (2) the percentage of employees meeting the scholarship program recipient 
206.5   requirements;
206.6   (3) staff retention rates for paraprofessionals; and
206.7   (4) other criteria determined by the commissioner.

206.8       Sec. 19. Minnesota Statutes 2005 Supplement, section 256B.0918, subdivision 4, 
206.9   is amended to read:
206.10      Subd. 4. Funding specifics. Within the limits of appropriations specifically 
206.11  available for this purpose, for the rate period beginning on or after October 1, 2005, to 
206.12  September 30, 2007, the commissioner shall provide to each provider listed in subdivision 
206.13  2 and awarded funds under subdivision 3 a medical assistance rate increase to fund 
206.14  scholarships up to two-tenths three-tenths percent of the medical assistance reimbursement 
206.15  rate. The commissioner shall require providers to repay any portion of funds awarded 
206.16  under subdivision 3 that is not used to fund scholarships. If applications exceed available 
206.17  funding, funding shall be targeted to providers that employ a higher percentage of 
206.18  paraprofessional staff or have lower rates of turnover of paraprofessional staff. During 
206.19  the subsequent years of the program, the rate adjustment may be recalculated, at the 
206.20  discretion of the commissioner. In making a recalculation the commissioner may consider 
206.21  the provider's success at granting scholarships based on the amount spent during the 
206.22  previous year and the availability of appropriations to continue the program.

206.23      Sec. 20. Minnesota Statutes 2004, section 256B.431, is amended by adding a 
206.24  subdivision to read:
206.25      Subd. 43. Rate increase for facilities in Stearns, Sherburne, and Benton 
206.26  Counties. Effective July 1, 2006, operating payment rates of nursing facilities in Stearns, 
206.27  Sherburne, and Benton Counties that are reimbursed under this section, section 256B.434, 
206.28  or section 256B.441 shall be increased to be equal, for a RUG's rate with a weight of 1.00, 
206.29  to the geographic group III median rate for the same RUG's weight. The percentage of 
206.30  the operating payment rate for each facility to be case-mix adjusted shall be equal to the 
206.31  percentage that is case-mix adjusted in that facility's June 30, 2006, operating payment 
206.32  rate. This subdivision shall apply only if it results in a rate increase. Increases provided 
206.33  by this subdivision shall be added to the rate determined under any new reimbursement 
206.34  system established under section 256B.440.

206.35      Sec. 21. Minnesota Statutes 2005 Supplement, section 256B.434, subdivision 4, 
206.36  is amended to read:
207.1       Subd. 4. Alternate rates for nursing facilities. (a) For nursing facilities which 
207.2   have their payment rates determined under this section rather than section 256B.431, the 
207.3   commissioner shall establish a rate under this subdivision. The nursing facility must enter 
207.4   into a written contract with the commissioner.
207.5   (b) A nursing facility's case mix payment rate for the first rate year of a facility's 
207.6   contract under this section is the payment rate the facility would have received under 
207.7   section 256B.431.
207.8   (c) A nursing facility's case mix payment rates for the second and subsequent years 
207.9   of a facility's contract under this section are the previous rate year's contract payment 
207.10  rates plus an inflation adjustment and, for facilities reimbursed under this section or 
207.11  section 256B.431, an adjustment to include the cost of any increase in Health Department 
207.12  licensing fees for the facility taking effect on or after July 1, 2001. The index for the 
207.13  inflation adjustment must be based on the change in the Consumer Price Index-All Items 
207.14  (United States City average) (CPI-U) forecasted by the commissioner of finance's national 
207.15  economic consultant, as forecasted in the fourth quarter of the calendar year preceding 
207.16  the rate year. The inflation adjustment must be based on the 12-month period from the 
207.17  midpoint of the previous rate year to the midpoint of the rate year for which the rate is 
207.18  being determined. For the rate years beginning on July 1, 1999, July 1, 2000, July 1, 2001, 
207.19  July 1, 2002, July 1, 2003, July 1, 2004, July 1, 2005, July 1, 2006, July 1, 2007, and July 
207.20  1, 2008, this paragraph shall apply only to the property-related payment rate, except 
207.21  that adjustments to include the cost of any increase in Health Department licensing fees 
207.22  taking effect on or after July 1, 2001, shall be provided. Beginning in 2005, adjustment to 
207.23  the property payment rate under this section and section 256B.431 shall be effective on 
207.24  October 1. In determining the amount of the property-related payment rate adjustment 
207.25  under this paragraph, the commissioner shall determine the proportion of the facility's 
207.26  rates that are property-related based on the facility's most recent cost report. Beginning 
207.27  October 1, 2006, facilities reimbursed under this section shall be allowed to receive a 
207.28  property rate adjustment for building projects under section 144A.071, subdivision 2.
207.29  (d) The commissioner shall develop additional incentive-based payments of up to 
207.30  five percent above a facility's operating payment rate for achieving outcomes specified 
207.31  in a contract. The commissioner may solicit contract amendments and implement those 
207.32  which, on a competitive basis, best meet the state's policy objectives. The commissioner 
207.33  shall limit the amount of any incentive payment and the number of contract amendments 
207.34  under this paragraph to operate the incentive payments within funds appropriated for this 
207.35  purpose. The contract amendments may specify various levels of payment for various 
207.36  levels of performance. Incentive payments to facilities under this paragraph may be in the 
208.1   form of time-limited rate adjustments or onetime supplemental payments. In establishing 
208.2   the specified outcomes and related criteria, the commissioner shall consider the following 
208.3   state policy objectives:
208.4   (1) successful diversion or discharge of residents to the residents' prior home or 
208.5   other community-based alternatives;
208.6   (2) adoption of new technology to improve quality or efficiency; 
208.7   (3) improved quality as measured in the Nursing Home Report Card; 
208.8   (4) reduced acute care costs; and
208.9   (5) any additional outcomes proposed by a nursing facility that the commissioner 
208.10  finds desirable.

208.11      Sec. 22. Minnesota Statutes 2004, section 256B.434, is amended by adding a 
208.12  subdivision to read:
208.13      Subd. 4f. Construction project rate adjustments effective October 1, 2006. (a) 
208.14  Effective October 1, 2006, facilities reimbursed under this section may receive a property 
208.15  rate adjustment for construction projects exceeding the threshold in section 256B.431, 
208.16  subdivision 16, and below the threshold in section 144A.071, subdivision 2, clause (a). 
208.17  For these projects, capital assets purchased shall be counted as construction project costs 
208.18  for a rate adjustment request made by a facility if they are: (1) purchased within 24 
208.19  months of the completion of the construction project; (2) purchased after the completion 
208.20  date of any prior construction project; and (3) are not purchased prior to July 14, 2005. 
208.21  Except as otherwise provided in this subdivision, the definitions, rate calculation methods, 
208.22  and principles in sections 144A.071 and 256B.431 and Minnesota Rules, parts 9549.0010 
208.23  to 9549.0080, shall be used to calculate rate adjustments for allowable construction 
208.24  projects under this subdivision and section 144A.073. Facilities completing construction 
208.25  projects between October 1, 2005, and October 1, 2006, are eligible to have a property 
208.26  rate adjustment effective October 1, 2006. Facilities completing projects after October 1, 
208.27  2006, are eligible for a property rate adjustment effective on the first day of the month 
208.28  following the completion date.
208.29  (b) Notwithstanding subdivision 18, as of July 14, 2005, facilities with rates set 
208.30  under section 256B.431 and Minnesota Rules, parts 9549.0010 to 9549.0080, that 
208.31  commenced a construction project on or after October 1, 2004, and do not have a contract 
208.32  under subdivision 3 by September 30, 2006, are eligible to request a rate adjustment under 
208.33  section 256B.431, subdivision 10, through September 30, 2006. If the request results 
208.34  in the commissioner determining a rate adjustment is allowable, the rate adjustment is 
208.35  effective on the first of the month following project completion. These facilities shall 
209.1   be allowed to accumulate construction project costs for the period October 1, 2004, to 
209.2   September 30, 2006.
209.3   (c) Facilities shall be allowed construction project rate adjustments no sooner than 
209.4   12 months after completing a previous construction project. Facilities must request the 
209.5   rate adjustment according to section 256B.431, subdivision 10.
209.6   (d) Capacity days shall be computed according to Minnesota Rules, part 9549.0060, 
209.7   subpart 11. For rate calculations under this section, the number of licensed beds in the 
209.8   nursing facility shall be the number existing after the construction project is completed 
209.9   and the number of days in the nursing facility's reporting period shall be 365.
209.10  (e) The value of assets to be recognized for a total replacement project as defined 
209.11  in section 256B.431, subdivision 17d, shall be computed as described in clause (1). The 
209.12  value of assets to be recognized for all other projects shall be computed as described 
209.13  in clause (2):
209.14  (1) Replacement-cost-new limits under section 256B.431, subdivision 17e, and the 
209.15  number of beds allowed under subdivision 3a, paragraph (c), shall be used to compute the 
209.16  maximum amount of assets allowable in a facility's property rate calculation. If a facility's 
209.17  current request for a rate adjustment results from the completion of a construction 
209.18  project that was previously approved under section 144A.073, the assets to be used in 
209.19  the rate calculation cannot exceed the lesser of the amount determined under sections 
209.20  144A.071, subdivision 2, and 144A.073, subdivision 3b, or the actual allowable costs of 
209.21  the construction project. A current request that is not the result of a project under section 
209.22  144A.073 cannot exceed the limit under section 144A.071, subdivision 2, paragraph (a). 
209.23  Applicable credits must be deducted from the cost of the construction project.
209.24  (2) (i) Replacement-cost-new limits under section 256B.431, subdivision 17e, and 
209.25  the number of beds allowed under section 256B.431, subdivision 3a, paragraph (c), shall 
209.26  be used to compute the maximum amount of assets allowable in a facility's property 
209.27  rate calculation.
209.28  (ii) The value of a facility's assets to be compared to the amount in item (i) begins 
209.29  with the total appraised value from the last rate notice a facility received when its rates 
209.30  were set under section 256B.431 and Minnesota Rules, parts 9549.0010 to 9549.0080. 
209.31  This value shall be indexed by the factor in section 256B.431, subdivision 3f, paragraph 
209.32  (a), for each rate year the facility received an inflation factor on its property-related rate 
209.33  when its rates were set under this section. The value of assets listed as previous capital 
209.34  additions, capital additions, and special projects on the facility's base year rate notice 
209.35  and the value of assets related to a construction project for which the facility received a 
210.1   rate adjustment when its rates were determined under this section shall be added to the 
210.2   indexed appraised value.
210.3   (iii) The maximum amount of assets to be recognized in computing a facility's rate 
210.4   adjustment after a project is completed is the lesser of the aggregate replacement-cost-new 
210.5   limit computed in (i) minus the assets recognized in (ii) or the actual allowable costs of 
210.6   the construction project.
210.7   (iv) If a facility's current request for a rate adjustment results from the completion of 
210.8   a construction project that was previously approved under section 144A.073, the assets to 
210.9   be added to the rate calculation cannot exceed the lesser of the amount determined under 
210.10  sections 144A.071, subdivision 2, and 144A.073, subdivision 3b, or the actual allowable 
210.11  costs of the construction project. A current request that is not the result of a project under 
210.12  section 144A.073 cannot exceed the limit stated in section 144A.071, subdivision 2, 
210.13  paragraph (a). Assets disposed of as a result of a construction project and applicable 
210.14  credits must be deducted from the cost of the construction project.
210.15  (f) For construction projects approved under section 144A.073, allowable debt 
210.16  may never exceed the lesser of the cost of the assets purchased, the threshold limit in 
210.17  section 144A.071, subdivision 2, or the replacement-cost-new limit less previously 
210.18  existing capital debt.
210.19  (g) For construction projects that were not approved under section 144A.073, 
210.20  allowable debt is limited to the lesser of the threshold in section 144A.071, subdivision 2, 
210.21  for such construction projects or the applicable limit in paragraph (e), clause (1) or (2), 
210.22  less previously existing capital debt. Amounts of debt taken out that exceed the costs of a 
210.23  construction project shall not be allowed regardless of the use of the funds.
210.24  For all construction projects being recognized, interest expense and average debt 
210.25  shall be computed based on the first 12 months following project completion. "Previously 
210.26  existing capital debt" means capital debt recognized on the last rate determined under 
210.27  section 256B.431 and Minnesota Rules, parts 9549.0010 to 9549.0080, and the amount of 
210.28  debt recognized for a construction project for which the facility received a rate adjustment 
210.29  when its rates were determined under this section.
210.30  For a total replacement project as defined in section 256B.431, subdivision 17d, the 
210.31  value of previously existing capital debt shall be zero.
210.32  (h) In addition to the interest expense allowed from the application of paragraph (f), 
210.33  the amounts allowed under section 256B.431, subdivision 17a, paragraph (a), clauses (2) 
210.34  and (3), will be added to interest expense.
210.35  (i) The equity portion of the construction project shall be computed as the allowable 
210.36  assets in paragraph (e), less the average debt in paragraph (f). The equity portion must 
211.1   be multiplied by 5.66 percent and the allowable interest expense in paragraph (f) must 
211.2   be added. This sum must be divided by 95 percent of capacity days to compute the 
211.3   construction project rate adjustment.
211.4   (j) For projects that are not a total replacement of a nursing facility, the amount in 
211.5   paragraph (i) is adjusted for nonreimbursable areas and then added to the current property 
211.6   payment rate of the facility.
211.7   (k) For projects that are a total replacement of a nursing facility, the amount 
211.8   in paragraph (i) becomes the new property payment rate after being adjusted for 
211.9   nonreimbursable areas. Any amounts existing in a facility's rate before the effective date 
211.10  of the construction project for equity incentives under section 256B.431, subdivision 16; 
211.11  capital repairs and replacements under section 256B.431, subdivision 15; or refinancing 
211.12  incentives under section 256B.431, subdivision 19, shall be removed from the facility's 
211.13  rates.
211.14  (l) No additional equipment allowance is allowed under Minnesota Rules, part 
211.15  9549.0060, subpart 10, as the result of construction projects under this section. Allowable 
211.16  equipment shall be included in the construction project costs.
211.17  (m) Capital assets purchased after the completion date of a construction project shall 
211.18  be counted as construction project costs for any future rate adjustment request made by a 
211.19  facility under section 144A.071, subdivision 2, clause (a), if they are purchased within 24 
211.20  months of the completion of the future construction project.
211.21  (n) In subsequent rate years, the property payment rate for a facility that results from 
211.22  the application of this subdivision shall be the amount inflated in subdivision 4.
211.23  (o) Construction projects are eligible for an equity incentive under section 256B.431, 
211.24  subdivision 16. When computing the equity incentive for a construction project under this 
211.25  subdivision, only the allowable costs and allowable debt related to the construction project 
211.26  shall be used. The equity incentive shall not be a part of the property payment rate and not 
211.27  inflated under subdivision 4. Effective October 1, 2006, all equity incentives for nursing 
211.28  facilities reimbursed under this section shall be allowed for a duration determined under 
211.29  section 256B.431, subdivision 16, paragraph (c).

211.30      Sec. 23. Minnesota Statutes 2004, section 256B.434, is amended by adding a 
211.31  subdivision to read:
211.32      Subd. 4g. Facility rate increase effective October 1, 2007; Otter Tail County.
 211.33  For the rate year beginning October 1, 2007, a nursing facility in Otter Tail County 
211.34  that was licensed for 57 beds as of December 31, 2004, shall receive a rate increase to 
211.35  increase its operating rate to the 60th percentile of the operating rates of all other Otter 
211.36  Tail County nursing facilities. The commissioner shall determine the 60th percentile of 
212.1   the case mix portion of the operating rates with a RUGS weight of 1.0 of all other Otter 
212.2   Tail County  nursing facilities and then apply the case mix weights.  The 60th percentile of 
212.3   the other  operating per diem for all other Otter Tail County nursing facilities will be added 
212.4   to the above-determined case mix rates to compute the operating payment rates. The 
212.5   nonoperating components of the facility's rates will not be adjusted under this subdivision.

212.6       Sec. 24. Minnesota Statutes 2004, section 256B.434, is amended by adding a 
212.7   subdivision to read:
212.8       Subd. 4h. Nursing facility rate increase effective October 1, 2007; Martin 
212.9   County. For the rate year beginning October 1, 2007, the commissioner shall provide to a 
212.10  nursing facility in Martin County licensed for 93 beds as of January 1, 2006, an increase in 
212.11  the total operating payment rate of $5 per resident day for all case mix classes.

212.12      Sec. 25. Minnesota Statutes 2004, section 256B.437, subdivision 3, is amended to read:
212.13      Subd. 3. Applications for planned closure of nursing facilities. (a) By August 
212.14  15, 2001, the commissioner of human services shall implement and announce a program 
212.15  for closure or partial closure of nursing facilities. Names and identifying information 
212.16  provided in response to the announcement shall remain private unless approved, according 
212.17  to the timelines established in the plan. The announcement must specify:
212.18  (1) the criteria in subdivision 4 that will be used by the commissioner to approve or 
212.19  reject applications;
212.20  (2) the information that must accompany an application; and
212.21  (3) that applications may combine planned closure rate adjustments with moratorium 
212.22  exception funding, in which case a single application may serve both purposes.
212.23  Between August 1, 2001, and June 30, 2003, the commissioner may approve planned 
212.24  closures of up to 5,140 nursing facility beds, less the number of beds delicensed in 
212.25  facilities during the same time period without approved closure plans or that have notified 
212.26  the commissioner of health of their intent to close without an approved closure plan. 
212.27  Beginning July 1, 2004, the commissioner may negotiate a planned closure rate adjustment 
212.28  for nursing facilities providing the proposal, cumulatively, with other proposals that have 
212.29  been approved, has no cost to the state. For planned closure rate adjustments negotiated 
212.30  after March 1, 2006, the limit of $2,080 in subdivision 6, paragraph (a), clause (1), shall 
212.31  not apply. The removal of the limit in subdivision 6, paragraph (a), clause (1), shall not 
212.32  constitute an increase to the amount specified in subdivision 6, paragraph (a), clause (1), 
212.33  for the purposes of subdivision 6, paragraph (f).
212.34  (b) A facility or facilities reimbursed under section  256B.431 or  256B.434 with a 
212.35  closure plan approved by the commissioner under subdivision 5 may assign a planned 
212.36  closure rate adjustment to another facility or facilities that are not closing or in the case of 
213.1   a partial closure, to the facility undertaking the partial closure. A facility may also elect to 
213.2   have a planned closure rate adjustment shared equally by the five nursing facilities with 
213.3   the lowest total operating payment rates in the state development region designated under 
213.4   section  462.385, in which the facility that is closing is located. The planned closure 
213.5   rate adjustment must be calculated under subdivision 6. Facilities that delicense beds 
213.6   without a closure plan, or whose closure plan is not approved by the commissioner, are not 
213.7   eligible to assign a planned closure rate adjustment under subdivision 6, unless they are 
213.8   delicensing five or fewer beds, or less than six percent of their total licensed bed capacity, 
213.9   whichever is greater, are located in a county in the top three quartiles of beds per 1,000 
213.10  persons aged 65 or older, and have not delicensed beds in the prior three months. Facilities 
213.11  meeting these criteria are eligible to assign the amount calculated under subdivision 6 to 
213.12  themselves. If a facility is delicensing the greater of six or more beds, or six percent or 
213.13  more of its total licensed bed capacity, and does not have an approved closure plan or is 
213.14  not eligible for the adjustment under subdivision 6, the commissioner shall calculate the 
213.15  amount the facility would have been eligible to assign under subdivision 6, and shall use 
213.16  this amount to provide equal rate adjustments to the five nursing facilities with the lowest 
213.17  total operating payment rates in the state development region designated under section  
213.18  462.385, in which the facility that delicensed beds is located. 
213.19  (c) To be considered for approval, an application must include:
213.20  (1) a description of the proposed closure plan, which must include identification of 
213.21  the facility or facilities to receive a planned closure rate adjustment;
213.22  (2) the proposed timetable for any proposed closure, including the proposed dates 
213.23  for announcement to residents, commencement of closure, and completion of closure;
213.24  (3) if available, the proposed relocation plan for current residents of any facility 
213.25  designated for closure. If a relocation plan is not available, the application must include a 
213.26  statement agreeing to develop a relocation plan designed to comply with section  144A.161; 
213.27  (4) a description of the relationship between the nursing facility that is proposed for 
213.28  closure and the nursing facility or facilities proposed to receive the planned closure rate 
213.29  adjustment. If these facilities are not under common ownership, copies of any contracts, 
213.30  purchase agreements, or other documents establishing a relationship or proposed 
213.31  relationship must be provided;
213.32  (5) documentation, in a format approved by the commissioner, that all the nursing 
213.33  facilities receiving a planned closure rate adjustment under the plan have accepted joint 
213.34  and several liability for recovery of overpayments under section  256B.0641, subdivision 
213.35  2, for the facilities designated for closure under the plan; and 
214.1   (6) an explanation of how the application coordinates with planning efforts under 
214.2   subdivision 2. If the planning group does not support a level of nursing facility closures 
214.3   that the commissioner considers to be reasonable, the commissioner may approve a 
214.4   planned closure proposal without its support.
214.5   (d) The application must address the criteria listed in subdivision 4.
214.6   EFFECTIVE DATE.This section is effective retroactively from March 1, 2006.

214.7       Sec. 26. Minnesota Statutes 2004, section 256B.438, subdivision 4, is amended to read:
214.8       Subd. 4. Resident assessment schedule. (a) Nursing facilities shall conduct and 
214.9   submit case mix assessments according to the schedule established by the commissioner 
214.10  of health under section  144.0724, subdivisions 4 and 5. 
214.11  (b) The resident reimbursement classifications established under section  144.0724, 
214.12  subdivision 3, shall be effective the day of admission for new admission assessments. The 
214.13  effective date for significant change assessments shall be the assessment reference date. 
214.14  The effective date for annual and second quarterly assessments shall be the first day of the 
214.15  month following assessment reference date. 
214.16  (c) Effective October 1, 2006, the commissioner shall rebase payment rates 
214.17  to account for the change in the resident assessment schedule in section 144.0724, 
214.18  subdivision 4, paragraph (b), clause (4), in a facility specific budget neutral manner, 
214.19  according to subdivision 7, paragraph (b).

214.20      Sec. 27. Minnesota Statutes 2005 Supplement, section 256B.5012, subdivision 6, 
214.21  is amended to read:
214.22      Subd. 6. ICF/MR rate increases October 1, 2005, and October 1, 2006. (a) For 
214.23  the rate periods beginning October 1, 2005, and October 1, 2006, the commissioner shall 
214.24  make available to each facility reimbursed under this section an adjustment to the total 
214.25  operating payment rate of 2.2553 percent.
214.26  (b) 75 percent of the money resulting from the rate adjustment under paragraph (a) 
214.27  must be used to increase wages and benefits and pay associated costs for all employees, 
214.28  except for administrative and central office employees. 75 percent of the money received 
214.29  by a facility as a result of the rate adjustment provided in paragraph (a) must be used only 
214.30  for wage, benefit, and staff increases implemented on or after the effective date of the rate 
214.31  increase each year, and must not be used for increases implemented prior to that date. The 
214.32  wage adjustment eligible employees may receive may vary based on merit, seniority, or 
214.33  other factors determined by the provider.
214.34  (c) For each facility, the commissioner shall make available an adjustment, based 
214.35  on occupied beds,  using the percentage specified in paragraph (a) multiplied by the total 
215.1   payment rate, including variable rate but excluding the property-related payment rate, in 
215.2   effect on the preceding day. The total payment rate shall include the adjustment provided 
215.3   in section 256B.501, subdivision 12.
215.4   (d) A facility whose payment rates are governed by closure agreements, receivership 
215.5   agreements, or Minnesota Rules, part 9553.0075, is not eligible for an adjustment 
215.6   otherwise granted under this subdivision.
215.7   (e) A facility may apply for the portion of the payment rate adjustment provided 
215.8   under paragraph (a) for employee wages and benefits and associated costs. The application 
215.9   must be made to the commissioner and contain a plan by which the facility will distribute 
215.10  the funds according to paragraph (b). For facilities in which the employees are represented 
215.11  by an exclusive bargaining representative, an agreement negotiated and agreed to by the 
215.12  employer and the exclusive bargaining representative constitutes the plan. A negotiated 
215.13  agreement may constitute the plan only if the agreement is finalized after the date of 
215.14  enactment of all rate increases for the rate year. The commissioner shall review the plan to 
215.15  ensure that the payment rate adjustment per diem is used as provided in this subdivision. 
215.16  To be eligible, a facility must submit its plan by March 31, 2006, and December 31, 
215.17  2006, respectively. If a facility's plan is effective for its employees after the first day of 
215.18  the applicable rate period that the funds are available, the payment rate adjustment per 
215.19  diem is effective the same date as its plan.
215.20  (f) A copy of the approved distribution plan must be made available to all employees 
215.21  by giving each employee a copy or by posting it in an area of the facility to which all 
215.22  employees have access. If an employee does not receive the wage and benefit adjustment 
215.23  described in the facility's approved plan and is unable to resolve the problem with the 
215.24  facility's management or through the employee's union representative, the employee 
215.25  may contact the commissioner at an address or telephone number provided by the 
215.26  commissioner and included in the approved plan.
215.27  EFFECTIVE DATE.This section is effective the day following final enactment.

215.28      Sec. 28. Minnesota Statutes 2004, section 256B.69, subdivision 9, is amended to read:
215.29      Subd. 9. Reporting. (a) Each demonstration provider shall submit information as 
215.30  required by the commissioner, including data required for assessing client satisfaction, 
215.31  quality of care, cost, and utilization of services for purposes of project evaluation. The 
215.32  commissioner shall also develop methods of data reporting and collection from county 
215.33  advocacy activities in order to provide aggregate enrollee information on encounters 
215.34  and outcomes to determine access and quality assurance. Required information shall be 
215.35  specified before the commissioner contracts with a demonstration provider.
216.1   (b) Aggregate nonpersonally identifiable health plan encounter data, aggregate 
216.2   spending data for major categories of service as reported to the commissioners of 
216.3   health and commerce under section 62D.08, subdivision 3, clause (a), and criteria for 
216.4   service authorization and service use are public data that the commissioner shall make 
216.5   available and use in public reports. The commissioner shall require each health plan and 
216.6   county-based purchasing plan to provide:
216.7   (1) encounter data for each service provided, using standard codes and unit of 
216.8   service definitions set by the commissioner, in a form that the commissioner can report by 
216.9   age, eligibility groups, and health plan; and
216.10  (2) criteria, written policies, and procedures required to be disclosed under section 
216.11  62M.10, subdivision 7, and Code of Federal Regulations, title 42, part 438.210(b)(1), used 
216.12  for each type of service for which authorization is required.

216.13      Sec. 29. Minnesota Statutes 2005 Supplement, section 256B.69, subdivision 23, 
216.14  is amended to read:
216.15      Subd. 23. Alternative services; elderly and disabled persons. (a) The 
216.16  commissioner may implement demonstration projects to create alternative integrated 
216.17  delivery systems for acute and long-term care services to elderly persons and persons 
216.18  with disabilities as defined in section 256B.77, subdivision 7a, that provide increased 
216.19  coordination, improve access to quality services, and mitigate future cost increases. 
216.20  The commissioner may seek federal authority to combine Medicare and Medicaid 
216.21  capitation payments for the purpose of such demonstrations and may contract with 
216.22  Medicare-approved special needs plans to provide Medicaid services. Medicare funds 
216.23  and services shall be administered according to the terms and conditions of the federal 
216.24  waiver contract and demonstration provisions. For the purpose of administering medical 
216.25  assistance funds, demonstrations under this subdivision are subject to subdivisions 1 to 
216.26  22. The provisions of Minnesota Rules, parts 9500.1450 to 9500.1464, apply to these 
216.27  demonstrations, with the exceptions of parts 9500.1452, subpart 2, item B; and 9500.1457, 
216.28  subpart 1, items B and C, which do not apply to persons enrolling in demonstrations 
216.29  under this section. An initial open enrollment period may be provided. Persons who 
216.30  disenroll from demonstrations under this subdivision remain subject to Minnesota Rules, 
216.31  parts 9500.1450 to 9500.1464. When a person is enrolled in a health plan under these 
216.32  demonstrations and the health plan's participation is subsequently terminated for any 
216.33  reason, the person shall be provided an opportunity to select a new health plan and shall 
216.34  have the right to change health plans within the first 60 days of enrollment in the second 
216.35  health plan. Persons required to participate in health plans under this section who fail 
216.36  to make a choice of health plan shall not be randomly assigned to health plans under 
217.1   these demonstrations. Notwithstanding section 256L.12, subdivision 5, and Minnesota 
217.2   Rules, part 9505.5220, subpart 1, item A, if adopted, for the purpose of demonstrations 
217.3   under this subdivision, the commissioner may contract with managed care organizations, 
217.4   including counties, to serve only elderly persons eligible for medical assistance, elderly 
217.5   and disabled persons, or disabled persons only. For persons with primary diagnoses of 
217.6   mental retardation or a related condition, serious and persistent mental illness, or serious 
217.7   emotional disturbance, the commissioner must ensure that the county authority has 
217.8   approved the demonstration and contracting design. Enrollment in these projects for 
217.9   persons with disabilities shall be voluntary. The commissioner shall not implement any 
217.10  demonstration project under this subdivision for persons with primary diagnoses of 
217.11  mental retardation or a related condition, serious and persistent mental illness, or serious 
217.12  emotional disturbance, without approval of the county board of the county in which the 
217.13  demonstration is being implemented.
217.14  (b) Notwithstanding chapter 245B, sections 252.40 to 252.46, 256B.092, 256B.501 
217.15  to 256B.5015, and Minnesota Rules, parts 9525.0004 to 9525.0036, 9525.1200 to 
217.16  9525.1330, 9525.1580, and 9525.1800 to 9525.1930, the commissioner may implement 
217.17  under this section projects for persons with developmental disabilities. The commissioner 
217.18  may capitate payments for ICF/MR services, waivered services for mental retardation or 
217.19  related conditions, including case management services, day training and habilitation and 
217.20  alternative active treatment services, and other services as approved by the state and by the 
217.21  federal government. Case management and active treatment must be individualized and 
217.22  developed in accordance with a person-centered plan. Costs under these projects may not 
217.23  exceed costs that would have been incurred under fee-for-service. Beginning July 1, 2003, 
217.24  and until two years after the pilot project implementation date, subcontractor participation 
217.25  in the long-term care developmental disability pilot is limited to a nonprofit long-term 
217.26  care system providing ICF/MR services, home and community-based waiver services, 
217.27  and in-home services to no more than 120 consumers with developmental disabilities in 
217.28  Carver, Hennepin, and Scott Counties. The commissioner shall report to the legislature 
217.29  prior to expansion of the developmental disability pilot project. This paragraph expires 
217.30  two years after the implementation date of the pilot project.
217.31  (c) Before implementation of a demonstration project for disabled persons, the 
217.32  commissioner must provide information to appropriate committees of the house of 
217.33  representatives and senate and must involve representatives of affected disability groups 
217.34  in the design of the demonstration projects.
217.35  (d) A nursing facility reimbursed under the alternative reimbursement methodology 
217.36  in section 256B.434 may, in collaboration with a hospital, clinic, or other health care entity 
218.1   provide services under paragraph (a). The commissioner shall amend the state plan and 
218.2   seek any federal waivers necessary to implement this paragraph.
218.3   (e) The commissioner, in consultation with the commissioners of commerce and 
218.4   health, may approve and implement programs for all-inclusive care for the elderly (PACE) 
218.5   according to federal laws and regulations governing that program and state laws or rules 
218.6   applicable to participating providers. The process for approval of these programs shall 
218.7   begin only after the commissioner receives grant money in an amount sufficient to cover 
218.8   the state share of the administrative and actuarial costs to implement the programs during 
218.9   state fiscal years 2006 and 2007. Grant amounts for this purpose shall be deposited in an 
218.10  account in the special revenue fund and are appropriated to the commissioner to be used 
218.11  solely for the purpose of PACE administrative and actuarial costs. A PACE provider is 
218.12  not required to be licensed or certified as a health plan company as defined in section 
218.13  62Q.01, subdivision 4. Persons age 55 and older who have been screened by the county 
218.14  and found to be eligible for services under the elderly waiver or community alternatives 
218.15  for disabled individuals or who are already eligible for Medicaid but meet level of 
218.16  care criteria for receipt of waiver services may choose to enroll in the PACE program. 
218.17  Medicare and Medicaid services will be provided according to this subdivision and 
218.18  federal Medicare and Medicaid requirements governing PACE providers and programs. 
218.19  PACE enrollees will receive Medicaid home and community-based services through the 
218.20  PACE provider as an alternative to services for which they would otherwise be eligible 
218.21  through home and community-based waiver programs and Medicaid State Plan Services. 
218.22  The commissioner shall establish Medicaid rates for PACE providers that do not exceed 
218.23  costs that would have been incurred under fee-for-service or other relevant managed care 
218.24  programs operated by the state.
218.25  (f) The commissioner shall seek federal approval to expand the Minnesota disability 
218.26  health options (MnDHO) program established under this subdivision in stages, first to 
218.27  regional population centers outside the seven-county metro area and then to all areas 
218.28  of the state. Until January 1, 2008, expansion for MnDHO projects that include home 
218.29  and community-based services is limited to the two projects and service areas in effect 
218.30  on March 1, 2006.  Enrollment in integrated MnDHO programs that include home and 
218.31  community-based services shall remain voluntary. Costs for home and community-based 
218.32  services included under MnDHO must not exceed costs that would have been incurred 
218.33  under the fee-for-service program. In developing program specifications for expansion of 
218.34  integrated programs, the commissioner shall involve and consult the state-level stakeholder 
218.35  group established in subdivision 28, paragraph (d), including consultation on whether and 
218.36  how to include home and community-based waiver programs. Plans for further expansion 
219.1   of MnDHO projects shall be presented to the chairs of the house and senate committees 
219.2   with jurisdiction over health and human services policy and finance by February 1, 2007.
219.3   (g) Notwithstanding section 256B.0261, health plans providing services under this 
219.4   section are responsible for home care targeted case management and relocation targeted 
219.5   case management. Services must be provided according to the terms of the waivers and 
219.6   contracts approved by the federal government.
219.7   EFFECTIVE DATE.This section is effective the day following final enactment. 

219.8       Sec. 30. Minnesota Statutes 2004, section 256B.69, is amended by adding a 
219.9   subdivision to read:
219.10      Subd. 28. Medicare special needs plans and medical assistance basic health 
219.11  care for persons with disabilities. (a) The commissioner may contract with qualified 
219.12  Medicare-approved special needs plans to provide medical assistance basic health care 
219.13  services to persons with disabilities, including those with developmental disabilities. 
219.14  Basic health care services include:
219.15  (1) those services covered by the medical assistance state plan except for ICF/MR 
219.16  services, home and community-based waiver services, case management for persons with 
219.17  developmental disabilities under section 256B.0625, subdivision 20a, and personal care 
219.18  and certain home care services defined by the commissioner in consultation with the 
219.19  stakeholder group established under paragraph (d); and
219.20  (2) basic health care services may also include risk for up to 100 days of nursing 
219.21  facility services for persons who reside in a noninstitutional setting and home health 
219.22  services related to rehabilitation as defined by the commissioner after consultation with 
219.23  the stakeholder group.
219.24   The commissioner may exclude other medical assistance services from the basic 
219.25  health care benefit set. Enrollees in these plans can access any excluded services on the 
219.26  same basis as other medical assistance recipients who have not enrolled.
219.27  Unless a person is otherwise required to enroll in managed care, enrollment in these 
219.28  plans for Medicaid services must be voluntary. For purposes of this subdivision, automatic 
219.29  enrollment with an option to opt out is not voluntary enrollment. 
219.30  (b) Beginning January 1, 2007, the commissioner may contract with qualified 
219.31  Medicare special needs plans to provide basic health care services under medical 
219.32  assistance to persons who are dually eligible for both Medicare and Medicaid and those 
219.33  Social Security beneficiaries eligible for Medicaid but in the waiting period for Medicare. 
219.34  The commissioner shall consult with the stakeholder group under paragraph (d) in 
219.35  developing program specifications for these services. The commissioner shall report to 
219.36  the chairs of the house and senate committees with jurisdiction over health and human 
220.1   services policy and finance by February 1, 2007, on implementation of these programs and 
220.2   the need for increased funding for the ombudsman for managed care and other consumer 
220.3   assistance and protections needed due to enrollment in managed care of persons with 
220.4   disabilities. Payment for Medicaid services provided under this subdivision for the months 
220.5   of May and June will be made no earlier than July 1 of the same calendar year.
220.6   (c) Beginning January 1, 2008, the commissioner may expand contracting under this 
220.7   subdivision to all persons with disabilities not otherwise required to enroll in managed 
220.8   care.
220.9   (d) The commissioner shall establish a state-level stakeholder group to provide 
220.10  advice on managed care programs for persons with disabilities, including both MnDHO 
220.11  and contracts with special needs plans that provide basic health care services as described 
220.12  in paragraphs (a) and (b). The stakeholder group shall provide advice on program 
220.13  expansions under this subdivision and subdivision 23, including:
220.14  (1) implementation efforts; 
220.15  (2) consumer protections; and 
220.16  (3) program specifications such as quality assurance measures, data collection and 
220.17  reporting, and evaluation of costs, quality, and results.
220.18  (e) Each plan under contract to provide medical assistance basic health care services 
220.19  shall establish a local or regional stakeholder group, including representatives of the 
220.20  counties covered by the plan, members, consumer advocates, and providers, for advice on 
220.21  issues that arise in the local or regional area.

220.22      Sec. 31. Laws 2005, First Special Session chapter 4, article 7, section 55, is amended 
220.23  to read:
220.24  Sec. 55. COMMUNITY SERVICES PROVIDER RATE INCREASES 
220.25   
220.26  (a) The commissioner of human services shall increase  reimbursement rates or 
220.27  rate limits, as applicable, by 2.2553  percent for the rate period beginning October 1, 
220.28  2005, and the  rate period beginning October 1, 2006, effective for services  rendered on 
220.29  or after those dates.  
220.30   
220.31  (b) The 2.2553 percent annual rate increase described in  this section must be 
220.32  provided to:  
220.33   
220.34  (1) home and community-based waivered services for persons  with mental 
220.35  retardation or related conditions, including consumer directed community supports,  under 
220.36  Minnesota  Statutes, section 256B.501;  
221.1    
221.2   (2) home and community-based waivered services for the  elderly under Minnesota 
221.3   Statutes, section 256B.0915;  
221.4    
221.5   (3) waivered services under community alternatives for  disabled individuals under 
221.6   Minnesota Statutes, section 256B.49;  
221.7    
221.8   (4) community alternative care waivered services, including consumer directed 
221.9   community supports,  under  Minnesota Statutes, section 256B.49;  
221.10   
221.11  (5) traumatic brain injury waivered services, including consumer directed 
221.12  community supports,  under  Minnesota Statutes, section 256B.49;  
221.13   
221.14  (6) nursing services and home health services under  Minnesota Statutes, section 
221.15  256B.0625, subdivision 6a;  
221.16   
221.17  (7) personal care services and nursing supervision of  personal care services under 
221.18  Minnesota Statutes, section  256B.0625, subdivision 19a;  
221.19   
221.20  (8) private duty nursing services under Minnesota Statutes,  section 256B.0625, 
221.21  subdivision 7;  
221.22   
221.23  (9) day training and habilitation services for adults with  mental retardation or related 
221.24  conditions under Minnesota  Statutes, sections 252.40 to 252.46;  
221.25   
221.26  (10) alternative care services under Minnesota Statutes,  section 256B.0913;  
221.27   
221.28  (11) adult residential program grants under Minnesota  Rules, parts 9535.2000 to 
221.29  9535.3000;  
221.30   
221.31  (12) adult and family community support grants under  Minnesota Rules, parts 
221.32  9535.1700 to 9535.1760;  
221.33   
221.34  (13) the group residential housing supplementary service  rate under Minnesota 
221.35  Statutes, section 256I.05, subdivision 1a;  
221.36   
222.1   (14) adult mental health integrated fund grants under  Minnesota Statutes, section 
222.2   245.4661;  
222.3    
222.4   (15) semi-independent living services under Minnesota  Statutes, section 252.275, 
222.5   including SILS funding under county  social services grants formerly funded under 
222.6   Minnesota Statutes,  chapter 256I;  
222.7    
222.8   (16) community support services for deaf and  hard-of-hearing adults with mental 
222.9   illness who use or wish to  use sign language as their primary means of communication;  
222.10   
222.11  (17) living skills training programs for persons with  intractable epilepsy who need 
222.12  assistance in the transition to  independent living;  
222.13   
222.14  (18) physical therapy services under sections 256B.0625,  subdivision 8, and 
222.15  256D.03, subdivision 4;  
222.16   
222.17  (19) occupational therapy services under sections  256B.0625, subdivision 8a, and 
222.18  256D.03, subdivision 4;  
222.19   
222.20  (20) speech-language therapy services under section  256D.03, subdivision 4, and 
222.21  Minnesota Rules, part 9505.0390; and  
222.22   
222.23  (21) respiratory therapy services under section 256D.03,  subdivision 4, and 
222.24  Minnesota Rules, part 9505.0295.  
222.25  (c) For services funded through Minnesota disability health options, the rate increase 
222.26  under this section shall apply to all medical assistance payments, including former group 
222.27  residential housing supplementary rates under Minnesota Statutes, chapter 256I.
222.28   
222.29  (c) (d) Providers that receive a rate increase under this  section shall use 75 percent 
222.30  of the additional revenue to  increase wages and benefits and pay associated costs for all  
222.31  employees, except for management fees, the administrator, and  central office staffs. The 
222.32  wage adjustment eligible employees may receive may vary based on merit, seniority, or 
222.33  other factors determined by the provider.  
222.34   
222.35  (d) (e) For public employees, the increase for wages and  benefits for certain staff is 
222.36  available and pay rates shall be  increased only to the extent that they comply with laws  
223.1   governing public employees collective bargaining.  Money  received by a provider for pay 
223.2   increases under this section may  be used only for increases implemented on or after the 
223.3   first day  of the rate period in which the increase is available and must  not be used for 
223.4   increases implemented prior to that date.  
223.5    
223.6   (e) (f)  A copy of the provider's plan for complying with  paragraph (c) (d) must be 
223.7   made available to all employees by giving  each employee a copy or by posting a copy in 
223.8   an area of the  provider's operation to which all employees have access.  If an  employee 
223.9   does not receive the adjustment, if any, described in  the plan and is unable to resolve the 
223.10  problem with the provider,  the employee may contact the employee's union representative.  
223.11  If the employee is not covered by a collective bargaining  agreement, the employee may 
223.12  contact the commissioner at a  telephone number provided by the commissioner and 
223.13  included in  the provider's plan.  
223.14  EFFECTIVE DATE.This section is effective the day following final enactment.

223.15      Sec. 32. Laws 2005, First Special Session chapter 4, article 9, section 5, subdivision 8, 
223.16  is amended to read:
223.17  Subd. 8.Board of Nursing                               3,078,000         3,631,000
223.18  BASE ADJUSTMENT. The base for the  
223.19  board of nursing is increased by  $141,000 
223.20  in fiscal year 2008 and by  $216,000 in fiscal 
223.21  year 2009.  
223.22  BOARD OF NURSING 
223.23  APPROPRIATIONS  INCREASE. Of 
223.24  this appropriation,  $120,000 the first year 
223.25  and $126,000  the second year are for the 
223.26  increased  cost of board operations, excluding  
223.27  salary increases and $85,000 each year  is to 
223.28  hire an advanced practice  registered nurse.  
223.29  TRANSFERS FROM SPECIAL 
223.30  REVENUE FUND.  Of this appropriation, 
223.31  the following  transfers shall be made as 
223.32  directed  from the state government special  
223.33  revenue fund:  
223.34  (a) $392,000 in fiscal year 2006,  $864,000 
223.35  in fiscal year 2007, $930,000  in fiscal year 
223.36  2008, and $930,000 in  fiscal year 2009 
224.1   shall be transferred  to the general fund 
224.2   and is appropriated  to the Department 
224.3   of Human Services to  offset the state 
224.4   share of the medical  assistance program 
224.5   costs of the  long-term care and home and  
224.6   community-based care employee  scholarship 
224.7   program and associated  administrative costs.  
224.8   At the end of  each biennium, any funds 
224.9   not expended  for the scholarship program 
224.10  and  associated administrative costs shall  
224.11  be transferred to the state government 
224.12  special revenue fund carried over to the 
224.13  next biennium for the same purpose.  
224.14  Notwithstanding  section 15, this paragraph 
224.15  expires June  30, 2009 2011.  
224.16  (b) $125,000 the first year and  $200,000 the 
224.17  second year shall be  transferred to the health 
224.18  professional  education loan forgiveness 
224.19  program  account for loan forgiveness 
224.20  for nurses  under Minnesota Statutes, 
224.21  section  144.1501.  This appropriation shall  
224.22  become part of base level funding for  the 
224.23  commissioner for the biennium  beginning 
224.24  July 1, 2007, but shall not  be part of base 
224.25  level funding for the  biennium beginning 
224.26  July 1, 2009.  Notwithstanding section 15, 
224.27  this  paragraph expires on June 30, 2009.  

224.28      Sec. 33. STAKEHOLDER PARTICIPATION.
224.29  The commissioner of human services shall confer with one or more stakeholder 
224.30  groups of interested persons, including representatives of recipients, advocacy groups, 
224.31  counties, providers, and health plans to provide information and advice on the development 
224.32  of any substantial proposals for changes in the medical assistance program authorized by 
224.33  the federal Deficit Reduction Act of 2005, Public Law 109-171. In addition, for any 
224.34  substantial Deficit Reduction Act-related medical assistance change that affects recipients 
224.35  and that is proposed outside of the legislative or rulemaking process, the commissioner 
224.36  shall convene a stakeholder meeting and provide a 30-day comment period before the 
225.1   change becomes effective. If the time frame required to comply with a federal mandate 
225.2   precludes the 30-day advance notice, notice shall be given to the stakeholder group as 
225.3   soon as possible.
225.4   EFFECTIVE DATE.This section is effective the day following final enactment.

225.5       Sec. 34. ICF/MR PLAN.
225.6   The commissioner of human services shall consult with ICF/MR providers, 
225.7   advocates, counties, and consumer families to develop a stakeholder plan and legislation 
225.8   concerning the future services provided to people served in ICFs/MR. The plan shall be 
225.9   reported to the house and senate committees with jurisdiction over health and human 
225.10  services policy and finance issues by December 15, 2008. In preparing the plan, the 
225.11  commissioner shall consider:
225.12  (1) consumer choice of services;
225.13  (2) consumers' service needs, including, but not limited to, active treatment;
225.14  (3) the total cost of providing services in ICFs/MR and alternative delivery systems 
225.15  for individuals currently residing in ICFs/MR;
225.16  (4) the impact of the payment shift to counties for ICFs/MR with more than six beds;
225.17  (5) whether it is the policy of the state to maintain an ICF/MR system and, if so, 
225.18  the plan shall:
225.19  (i) define the purpose, types of services, and intended recipients of ICF/MR services;
225.20  (ii) define the capacity needed to maintain ICF/MR services for designated 
225.21  populations;
225.22  (iii) evaluate incentives for counties to maintain ICF/MR services;
225.23  (iv) ensure that mechanisms are provided to adequately fund the transition to the 
225.24  defined services, maintain the designated capacity, and are adjustable to meet increased 
225.25  service demands; and
225.26  (v) address the extent to which there is consensus among stakeholders; and
225.27  (6) if alternative services are recommended to support the people now receiving 
225.28  services in an ICF/MR, the plan shall provide for transition planning and ensure adequate 
225.29  state and federal financial resources are available to meet the needs of ICF/MR recipients.
225.30  EFFECTIVE DATE.This section is effective the day following final enactment.

225.31      Sec. 35. ADDITIONAL WAIVER ALLOCATIONS.
225.32  Notwithstanding the waiver growth limits in Laws 2005, First Special Session 
225.33  chapter 4, article 9, section 2, paragraph (d), the commissioner may allocate an additional 
225.34  waiver allocation under Minnesota Statutes, section 256B.49, for a recipient of personal 
226.1   care assistant services who is eligible for and chooses waivered services and received 
226.2   personal care assistant services from a provider who was billing for a service delivery 
226.3   model for that recipient other than individual or shared care on March 1, 2006.
226.4   EFFECTIVE DATE.This section is effective the day following final enactment.

226.5       Sec. 36. REPORT ON NEW CASE MIX INDICES.
226.6   The commissioner of human services shall report to the legislature by December 15, 
226.7   2006, recommendations on the weighting and implementation of case mix indices.

226.8       Sec. 37. REPAYMENT DELAY.
226.9   A county that overspent its allowed amounts in calendar year 2004 or 2005 under 
226.10  the waivered services program for persons with developmental disabilities shall not be 
226.11  required to pay back the amount of overspending until May 31, 2007.

226.12                                         ARTICLE 21
226.13                            HUMAN SERVICES FORECAST ADJUSTMENTS

226.14  Section 1. DEPARTMENT OF HUMAN SERVICES FORECAST ADJUSTMENT                      
226.15  The dollar amounts shown are added to or, if shown in parentheses, are subtracted 
226.16  from the appropriations in Laws 2005, First Special Session chapter 4, and are 
226.17  appropriated from the general fund, or any other fund named, to the Department of 
226.18  Human Services for the purposes specified in this article, to be available for the fiscal year 
226.19  indicated for each purpose. The figures "2006" and "2007" used in this article means 
226.20  that the appropriation or appropriations listed are available for the respective fiscal year 
226.21  ending June 30, 2006 or June 30, 2007.
226.22                                    SUMMARY BY FUND                                   
226.23                                                      2006              2007      
226.24  General Fund                                $     (58,333,000)$     (17,589,000)
226.25  Health Care Access                                (44,511,000)      (62,360,000)
226.26  TANF                                              (13,807,000)       (3,866,000)
226.27  TOTAL                                       $    (116,651,000)$     (83,815,000)

226.28  Sec. 2. COMMISSIONER OF HUMAN                                                     
226.29  SERVICES                                                                          
226.30  Subdivision 1.Total Appropriation             $   (116,651,000)$    (83,815,000)
226.31                          Summary by Fund                        
226.32  General                           (58,333,000)    (17,589,000)
226.33  Health Care Access                (44,511,000)    (62,360,000)
226.34  TANF                              (13,807,000)     (3,866,000)
226.35  Subd.  2.Revenue and Pass-Through                                                 
227.1   TANF                                                 (1,446,000)       (1,177,000)
227.2   Subd.  3.Children and Economic Assistance                                         
227.3   Grants                                                                            
227.4   General                                              (4,469,000)         1,785,000
227.5   TANF                                              (12,361,000)       (2,689,000)
227.6   The amount that may be spent from this 
227.7   appropriation for each purpose is as follows:
227.8   (a) Minnesota Family Investment Program                                           
227.9   General                                                6,048,000         (393,000)
227.10  TANF                                              (12,361,000)       (2,689,000)
227.11  (b) MFIP Child Care Assistance Grants                                             
227.12  General Fund                                         (5,090,000)         2,751,000
227.13  (c) General Assistance                                 2,540,000         3,947,000
227.14  (d) Minnesota Supplemental Aid                         (285,000)           551,000
227.15  (e) Group Residential                                                           
227.16  Housing                                            (7,682,000)       (5,071,000)
227.17  Subd.  4.Basic Health Care Grants                                                 
227.18  General                                             (19,022,000)        10,499,000
227.19  Health Care Access                                (44,511,000)      (62,360,000)
227.20  The amount that may be spent from this 
227.21  appropriation for each purpose is as follows:
227.22  (a) MinnesotaCare                                                                 
227.23  Health Care Access                                  (44,511,000)      (62,360,000)
227.24  (b) MA Basic Health Care - Families and                                           
227.25  Children                                                                          
227.26  General                                             (29,882,000)      (54,401,000)
227.27  (c) MA Basic Health Care - Elderly and                                            
227.28  Disabled                                                                          
227.29  General                                              (2,857,000)        33,179,000
227.30  (d) General Assistance Medical Care                                               
227.31  General                                               13,717,000        31,721,000
227.32  Subd.  5.Continuing Care Grants                                                   
227.33  General                                             (34,842,000)      (29,873,000)
227.34  The amount that may be spent from this 
227.35  appropriation for each purpose is as follows:
227.36  (a) MA Long-Term Care Waivers                                                     
227.37  General                                             (23,368,000)      (35,953,000)
227.38  (b) MA Long-Term Care Facilities                                                  
228.1   General                                             (16,251,000)       (5,202,000)
228.2   (c) Chemical Dependency Entitlement Grants                                        
228.3   General                                                4,777,000        11,282,000
228.4   EFFECTIVE DATE.This section is effective the day following final enactment.

228.5                                          ARTICLE 22
228.6                           HEALTH AND HUMAN SERVICES APPROPRIATIONS

228.7   Section 1. HEALTH AND HUMAN SERVICES APPROPRIATIONS.                             
228.8   The sums shown in the columns marked "APPROPRIATIONS" are added to or, if 
228.9   shown in parentheses, subtracted from the appropriations in Laws 2005, First Special 
228.10  Session chapter 4, article 9, or other law to the agencies and for the purposes specified 
228.11  in this article.  The appropriations are from the general fund or another named fund and 
228.12  are available for the fiscal years indicated for each purpose.  The figures "2006" and 
228.13  "2007" used in this article mean that the addition to or subtraction from the appropriation 
228.14  listed under them is available for the fiscal year ending June 30, 2006, or June 30, 
228.15  2007, respectively. "The first year" is fiscal year 2006. "The second year" is fiscal year 
228.16  2007. "The biennium" is fiscal years 2006 and 2007.  Supplementary appropriations and 
228.17  reductions to appropriations for the fiscal year ending June 30, 2006, are effective the 
228.18  day following final enactment.
228.19                                    SUMMARY BY FUND                                   
228.20                                    2006              2007             TOTAL     
228.21  General                   $       30,989,000$       75,663,000$      106,652,000
228.22  Health Care Access                       -0-         6,116,000         6,116,000
228.23  Special Revenue                      514,000           762,000         1,276,000
228.24  Federal TANF                       7,484,000           416,000         7,900,000
228.25  TOTAL                     $       38,987,000$       82,957,000$      121,944,000
228.26                                                         APPROPRIATIONS            
228.27                                                     Available for the Year        
228.28                                                         Ending June 30            
228.29                                                      2006              2007      

228.30  Sec. 2. COMMISSIONER OF HUMAN                                                     
228.31  SERVICES                                                                          
228.32  Subdivision 1.Total Appropriation                     36,025,000        71,905,000
228.33                          Summary by Fund                        
228.34  General                             28,541,000      66,873,000
228.35  Health Care Access                         -0-       4,616,000
228.36  TANF                                 7,484,000         416,000
229.1   Subd.  2.Health Care Grants                                                       
229.2   (a) MinnesotaCare Grants                                        
229.3   Health Care Access                         -0-     (1,792,000)
229.4   (b) Medical Assistance Basic Health Care - Families and Children
229.5   General                                    -0-          75,000
229.6   Health Care Access                         -0-       3,532,000
229.7   (c) Medical Assistance - Elderly and Disabled                   
229.8   General                                    -0-       (399,000)
229.9   (d) General Assistance Medical Care                             
229.10  General                                    -0-       2,108,000
229.11  MEDICAL ASSISTANCE CRITICAL 
229.12  ACCESS DENTAL PAYMENTS RATES.
229.13  (a) Notwithstanding Minnesota Statutes, 
229.14  section 256B.76, paragraph (c), for dental 
229.15  services rendered on or after October 1, 
229.16  2006, to June 30, 2007, under the medical 
229.17  assistance program, the commissioner shall 
229.18  increase reimbursement to dentists and dental 
229.19  clinics deemed by the commissioner to be 
229.20  critical access providers by 38 percent above 
229.21  the reimbursement rate that would otherwise 
229.22  be paid to the provider.
229.23  (b) The commissioner shall adjust payments 
229.24  to health plans for services provided from 
229.25  January 1, 2007, to June 30, 2007, to reflect 
229.26  the increase in paragraph (a).
229.27  (c) Notwithstanding Minnesota Statutes, 
229.28  section 295.581, the commissioner of finance 
229.29  shall reimburse the medical assistance 
229.30  general fund account from the health care 
229.31  access fund the amount of medical assistance 
229.32  expenditures related to paragraphs (a) and 
229.33  (b), that are in excess of expenditures 
229.34  under Minnesota Statutes, section 256B.76, 
230.1   paragraph (c). The amounts reimbursed 
230.2   under this section are appropriated to the 
230.3   commissioner. 
230.4   (d) By February 15, 2007, the commissioner 
230.5   shall report to the legislature on the results 
230.6   of higher payments to critical access dental 
230.7   providers and with recommendations on 
230.8   funding sources to continue these higher 
230.9   payments in effect after June 30, 2007.
230.10  (e) Notwithstanding any provision to the 
230.11  contrary in this article, this provision shall 
230.12  expire June 30, 2008.
230.13  Subd.  3.Health Care Management                                                   
230.14  (a) Health Care Administration                                  
230.15  General                                    -0-       1,278,000
230.16  Health Care Access                         -0-         336,000
230.17  HEALTH CARE ADMINISTRATION 
230.18  BASE LEVEL ADJUSTMENT. 
230.19  The general fund base for health care 
230.20  administration shall be decreased by $94,000 
230.21  for fiscal year 2008 and shall be decreased by 
230.22  $641,000 for fiscal year 2009.
230.23  HEALTH CARE ADMINISTRATION 
230.24  BASE LEVEL ADJUSTMENT. The 
230.25  health care access fund base for health care 
230.26  administration shall be decreased by $35,000 
230.27  for fiscal year 2008 and shall be decreased by 
230.28  $336,000 for fiscal year 2009.
230.29  (b) Health Care Operations                                      
230.30  General                                    -0-          28,000
230.31  Health Care Access                         -0-       1,092,000
230.32  HEALTH CARE OPERATIONS BASE 
230.33  LEVEL ADJUSTMENT. The general fund 
230.34  base for health care operations shall be 
230.35  decreased by $4,000 for fiscal year 2008 and 
230.36  shall be increased by $66,000 for fiscal year 
230.37  2009.
231.1   HEALTH CARE OPERATIONS BASE 
231.2   LEVEL ADJUSTMENT. The health care 
231.3   access fund base for health care operations 
231.4   shall be decreased by $662,000 for fiscal year 
231.5   2008 and shall be decreased by $662,000 for 
231.6   fiscal year 2009.
231.7   Subd.  4. Continuing Care Grants                                                  
231.8   (a) Alternative Care Grants                                     
231.9   General                                    -0-       1,669,000
231.10  ALTERNATIVE CARE GRANTS BASE 
231.11  LEVEL ADJUSTMENT. The general fund 
231.12  base for alternative care grants shall be 
231.13  decreased by $869,000 for fiscal year 2008 
231.14  and shall be decreased by $1,252,000 for 
231.15  fiscal year 2009.
231.16  MEDICARE PART D INFORMATION 
231.17  AND ASSISTANCE REIMBURSEMENT. 
231.18  Federal administrative reimbursement 
231.19  obtained from information and assistance 
231.20  services provided by the Senior Linkage or 
231.21  Disability Linkage lines to people who are 
231.22  identified as eligible for medical assistance 
231.23  shall be appropriated to the commissioner 
231.24  for this activity.
231.25  (b) Medical Assistance Long-term Care Facilities                
231.26  General                                    -0-         228,000
231.27  TEMPORARY RATE INCREASE. 
231.28  $30,000 in fiscal year 2007 is for a temporary 
231.29  rate increase equivalent to six percent of the 
231.30  operating rate in effect on July 1, 2006, for 
231.31  a day training and habilitation provider in 
231.32  Meeker County providing services to up to 
231.33  110 individuals. This rate increase shall be in 
231.34  effect only until June 30, 2007.
231.35  The commissioner of human services shall 
231.36  review the appropriateness of per diem rates 
232.1   for day training and habilitation services, 
232.2   including the reasonableness of rates paid to 
232.3   lower cost providers, and report the results to 
232.4   the legislature by January 15, 2007.
232.5   (c) Medical Assistance Long-Term Care Waivers                   
232.6   General                                    -0-         415,000
232.7   (d) Mental Health Grants                                        
232.8   Health Care Access                         -0-         750,000
232.9   MENTAL HEALTH 
232.10  INFRASTRUCTURE. Of this 
232.11  appropriation, $750,000 is for adult mental 
232.12  health infrastructure grants.
232.13  MENTAL HEALTH GRANTS BASE 
232.14  LEVEL ADJUSTMENT. The general 
232.15  fund base for mental health grants shall be 
232.16  decreased by $750,000 for fiscal year 2009.
232.17  Subd.  5.Continuing Care Management                                               
232.18                          Summary by Fund                        
232.19  General                                    -0-          93,000
232.20  Health Care Access                         -0-         448,000
232.21  OUTCOMES AND TRACKING. Of 
232.22  this appropriation, $448,000 in fiscal year 
232.23  2007 and $324,000 in fiscal year 2008 is 
232.24  to implement the mental health services 
232.25  outcomes and mental health tracking 
232.26  systems.
232.27  CONTINUING CARE MANAGEMENT 
232.28  BASE LEVEL ADJUSTMENT. The 
232.29  general fund base for continuing care 
232.30  management shall be increased by $10,000 
232.31  for fiscal year 2008 and shall be increased by 
232.32  $20,000 for fiscal year 2009.
232.33  CONTINUING CARE MANAGEMENT 
232.34  BASE LEVEL ADJUSTMENT. The health 
232.35  care access fund base for continuing care 
232.36  management shall be decreased by $124,000 
233.1   for fiscal year 2008 and shall be decreased by 
233.2   $448,000 for fiscal year 2009.
233.3   Subd.  6.State-Operated Services                                                  
233.4   General                             36,395,000      54,920,000
233.5   MINNESOTA SECURITY HOSPITAL. 
233.6   For the purposes of enhancing the safety 
233.7   of the public, improving supervision, and 
233.8   enhancing community-based mental health 
233.9   treatment, state-operated services may 
233.10  establish additional community capacity 
233.11  for providing treatment and supervision 
233.12  of clients who have been ordered into a 
233.13  less restrictive alternative of care from the 
233.14  state-operated services transition services 
233.15  program consistent with Minnesota Statutes, 
233.16  section 246.014.
233.17  STATE-OPERATED SERVICES BASE 
233.18  ADJUSTMENT. The general fund base 
233.19  for state-operated services is increased by 
233.20  $8,699,000 in fiscal year 2008 and decreased 
233.21  by $925,000 in fiscal year 2009.
233.22  Subd.  7.Children and Economic Assistance                                         
233.23  Grants                                                                            
233.24  (a) MFIP-DWP Grants                                             
233.25  General                            (7,484,000)       7,484,000
233.26  Federal TANF                         7,484,000     (7,484,000)
233.27  (b) MFIP Child Care Assistance Grants                           
233.28  General                                    -0-          62,000
233.29  Federal TANF                               -0-       7,856,000
233.30  CHILD CARE AND DEVELOPMENT 
233.31  FUND; FEDERAL DEFICIT 
233.32  REDUCTION ACT OF 2005. Increased 
233.33  child care funds from the federal Deficit 
233.34  Reduction Act of 2005 may be allocated by 
233.35  the commissioner for the basic sliding fee 
233.36  child care program.
234.1   CHILD CARE ABSENT DAY LIMITS. 
234.2   $62,000 in fiscal year 2007 is appropriated 
234.3   from the general fund to the commissioner 
234.4   of human services for the MFIP/transition 
234.5   year child care program for the purposes 
234.6   of Minnesota Statutes, section 119B.13, 
234.7   subdivision 7. The general fund base for 
234.8   MFIP child care assistance grants under 
234.9   Minnesota Statutes, section 119B.05, is 
234.10  increased by $103,000 in fiscal year 2008 
234.11  and by $102,000 in fiscal year 2009.
234.12  INCREASE TANF TRANSFER TO 
234.13  FEDERAL CHILD CARE AND 
234.14  DEVELOPMENT FUND. In addition to 
234.15  the TANF amounts provided in Laws 2005, 
234.16  First Special Session chapter 4, article 9, 
234.17  section 2, subdivisions 3 and 4, $7,856,000 
234.18  in fiscal year 2007 is appropriated to the 
234.19  commissioner for the purposes of MFIP 
234.20  transition year child care under Minnesota 
234.21  Statutes, section 119B.05. The commissioner 
234.22  shall authorize transfer of sufficient 
234.23  TANF funds to the federal child care and 
234.24  development fund to meet this appropriation 
234.25  and shall ensure that all transferred funds are 
234.26  expended according to the federal child care 
234.27  and development fund regulations.
234.28  TANF MAINTENANCE OF EFFORT. 
234.29  Notwithstanding Laws 2005, First Special 
234.30  Session chapter 4, article 9, section 2, 
234.31  subdivision 1, the commissioner shall ensure 
234.32  that for fiscal year 2007, the maintenance of 
234.33  effort used by the commissioner of finance 
234.34  for the February and November forecasts 
234.35  required under Minnesota Statutes, section 
234.36  16A.103, contains expenditures under the 
235.1   TANF/MOE rider in Laws 2005, First 
235.2   Special Session chapter 4, article 9, section 
235.3   2, subdivision 1, paragraph (a), clause (1), 
235.4   equal to at least 21 percent of the total 
235.5   required under Code of Federal Regulations, 
235.6   title 45, section 263.1. 
235.7   INCREASE WORKING FAMILY 
235.8   CREDIT EXPENDITURES TO BE 
235.9   CLAIMED FOR TANF/MOE. In addition 
235.10  to the amounts provided in Laws 2005, First 
235.11  Special Session chapter 4, article 9, section 2, 
235.12  subdivision 1, the commissioner may count 
235.13  the following amounts of working family 
235.14  credit expenditures as TANF/MOE:
235.15  (1) fiscal year 2006, $9,858,000;
235.16  (2) fiscal year 2007, $0;
235.17  (3) fiscal year 2008, $4,269,000; and
235.18  (4) fiscal year 2009, $4,888,000.
235.19  Notwithstanding any section in this article 
235.20  to the contrary, this paragraph sunsets June 
235.21  30, 2009.
235.22  (c) Children's Service Grants                                   
235.23  General                                    -0-         250,000
235.24  MENTAL HEALTH CRISIS 
235.25  INFRASTRUCTURE. Of this 
235.26  appropriation, $250,000 is from the health 
235.27  care access fund for children's mental health 
235.28  crisis infrastructure.
235.29  CHILDREN'S SERVICES GRANTS 
235.30  BASE LEVEL ADJUSTMENT. The health 
235.31  care access fund base for children's services 
235.32  grants shall be decreased by $250,000 for 
235.33  fiscal year 2009.
235.34  CHILDREN'S AND COMMUNITY 
235.35  SERVICES GRANTS. Notwithstanding 
235.36  Minnesota Statutes, section 256M.50, 
236.1   supplemental social service block grant funds 
236.2   of $153,936 appropriated under the federal 
236.3   2005 Department of Defense Appropriations 
236.4   Act, Public Law 109-148, shall be allocated 
236.5   proportionately to those counties that served 
236.6   hurricane evacuees and reported those 
236.7   services on the Social Service Information 
236.8   System.
236.9   BASIC SLIDING FEE ALLOCATIONS; 
236.10  CONVERSION TO AUTOMATED 
236.11  PAYMENT SYSTEM. As determined by 
236.12  the commissioner, counties may use up to six 
236.13  percent of either calendar year 2008 or 2009 
236.14  allocations under Minnesota Statutes, section 
236.15  119B.03, to fund accelerated payments that 
236.16  may occur during the preceding calendar 
236.17  year during conversion to the automated 
236.18  child care assistance program system. If 
236.19  conversion occurs over two calendar years, 
236.20  counties may use up to three percent of the 
236.21  combined calendar year allocations to fund 
236.22  accelerated payments. Funding advanced 
236.23  under this paragraph shall be considered part 
236.24  of the allocation from which it was originally 
236.25  advanced for purposes of setting future 
236.26  allocations under Minnesota Statutes, section 
236.27  119B.03, subdivisions 6, 6a, 6b, and 8, and 
236.28  shall include funding for administrative costs 
236.29  under Minnesota Statutes, section 119B.15. 
236.30  Notwithstanding any contrary provisions in 
236.31  this article, this paragraph shall sunset on 
236.32  December 31, 2009.
236.33  (d) Group Residential Housing                                   
236.34  General                                    -0-         168,000
236.35  MENTAL HEALTH PILOT. This 
236.36  appropriation is for the mental health pilot 
237.1   program for unsheltered individuals in 
237.2   Ramsey County and Hennepin County.
237.3   (e) Other Children and Economic Assistance Grants               
237.4   General                              (370,000)       (461,000)
237.5   MINNESOTA FOOD ASSISTANCE 
237.6   PROGRAM. (a) The general fund 
237.7   appropriations for the Minnesota Food 
237.8   Assistance Program under Minnesota 
237.9   Statutes, section 256D.053, are reduced by 
237.10  $370,000 in fiscal year 2006 and $491,000 in 
237.11  fiscal year 2007.
237.12  (b) The general fund appropriation for 
237.13  the Minnesota food assistance program is 
237.14  increased by $30,000 in fiscal year 2007 for 
237.15  the added program cost of the food stamp 
237.16  asset limit changes under Minnesota Statutes, 
237.17  section 256D.0515. The general fund base 
237.18  for the Minnesota food assistance program is 
237.19  increased by $61,000 in fiscal year 2008 and 
237.20  $61,000 in fiscal year 2009.
237.21  OTHER CHILDREN'S AND 
237.22  ECONOMIC ASSISTANCE GRANTS 
237.23  BASE LEVEL ADJUSTMENT. The 
237.24  general fund base for other children's and 
237.25  economic assistance grants shall be increased 
237.26  by $31,000 for fiscal year 2008 and shall be 
237.27  increased by $31,000 for fiscal year 2009.
237.28  Subd. 8.Children and Economic Assistance                                          
237.29  Management                                                                        
237.30                          Summary by Fund                        
237.31  General                                    -0-           35,000
237.32  Federal TANF                               -0-           44,000
237.33  FOOD STAMP ASSET LIMIT. $16,000 
237.34  in fiscal year 2007 is appropriated from 
237.35  the general fund to the commissioner of 
237.36  human services for the systems cost of 
237.37  implementing the food stamp asset limit 
238.1   changes included under Minnesota Statutes, 
238.2   section 256D.0515.  This is a onetime 
238.3   appropriation. 
238.4   DOMESTIC VIOLENCE 
238.5   INFORMATIONAL BROCHURE. 
238.6   $44,000 in fiscal year 2007 is appropriated 
238.7   from federal TANF funds to the 
238.8   commissioner of human services 
238.9   for producing the domestic violence 
238.10  informational brochure under Minnesota 
238.11  Statutes, section 256.029.  This appropriation 
238.12  is added to the agency's base.
238.13  CHILDREN AND ECONOMIC 
238.14  ASSISTANCE OPERATIONS BASE 
238.15  LEVEL ADJUSTMENT. The general fund 
238.16  base for children and economic assistance 
238.17  operations shall be decreased by $35,000 for 
238.18  fiscal year 2008 and shall be decreased by 
238.19  $35,000 for fiscal year 2009.

238.20  Sec. 3. COMMISSIONER OF HEALTH                                                    
238.21  Subdivision 1.Total Appropriation                            -0-         6,640,000
238.22  Subd.  2.Policy Quality and Compliance                                            
238.23                          Summary by Fund                        
238.24  State Government Special                                      
238.25  Revenue                                    -0-         140,000
238.26  Health Care Access                         -0-       1,500,000
238.27  INJUNCTIVE RELIEF. The commissioner 
238.28  of health  shall present to the 2007 legislature, 
238.29  by December 15, 2006, recommendations 
238.30  to fund the cost of bringing actions for 
238.31  injunctive relief under Minnesota Statutes, 
238.32  section 144G.02, subdivision 2, paragraph 
238.33  (b).
238.34  HEALTH INFORMATION 
238.35  TECHNOLOGY. $1,500,000 from the 
239.1   health care access fund is to implement 
239.2   Minnesota Statutes, section 144.366. Up to 
239.3   $200,000 is available for grant administration 
239.4   and health information technology technical 
239.5   assistance. This is a onetime appropriation.
239.6   Subd. 3.Health Protection                                                         
239.7   General                                    -0-        5,000,000
239.8   PANDEMIC INFLUENZA 
239.9   PREPAREDNESS. $5,000,000 
239.10  from the general fund is for preparation, 
239.11  planning, and response to an outbreak of 
239.12  influenza. This is a onetime appropriation.

239.13  Sec. 4. VETERANS NURSING HOMES                                                    
239.14  BOARD                                                                             
239.15  General                              2,448,000       3,790,000
239.16  BASE ADJUSTMENT. The general fund 
239.17  base is increased by $3,945,000 in fiscal year 
239.18  2008 and $3,945,000 in fiscal year 2009 for 
239.19  the Veterans Homes Board.
239.20  SURPRISE INSPECTIONS. The board 
239.21  shall contract for two mock, surprise 
239.22  inspections during each fiscal year at the 
239.23  Minneapolis facility. 
239.24  QUALITY ASSURANCE. Of this 
239.25  appropriation, $1,868,000 in fiscal year 2006 
239.26  and $2,159,000 in fiscal year 2007 is to 
239.27  supplement nursing staff at the Minneapolis 
239.28  facility. The board shall negotiate with 
239.29  state bargaining units to address wages, 
239.30  benefits, and the staffing skill mix in order 
239.31  to appropriately serve the acuity level of 
239.32  residents.

239.33  Sec. 5. HEALTH-RELATED BOARDS                                                     
239.34  State Government Special                                      
239.35  Revenue                                514,000         572,000
240.1   Subdivision 1.Board of Medical Practice                  500,000           500,000
240.2   This increase is to cover higher than expected 
240.3   costs of investigation and legal action. This 
240.4   is a onetime appropriation.
240.5   Subd.  2.Board of Chiropractic Examiners                   5,000             5,000
240.6   BOARD OF CHIROPRACTIC 
240.7   EXAMINERS APPROPRIATION 
240.8   INCREASE. This increase is to correct 
240.9   programming difficulties incurred during 
240.10  implementation of payment processing 
240.11  changes. This is a onetime appropriation.
240.12  Subd.  3.Board of Dentistry                                  -0-            67,000
240.13  BOARD OF DENTISTRY 
240.14  APPROPRIATION INCREASE. 
240.15  This increase is to retain a legal analyst as 
240.16  part of the board staff.
240.17  Subd.  4.Board of Physical Therapy                         9,000               -0-
240.18  BOARD OF PHYSICAL THERAPY 
240.19  APPROPRIATION INCREASE. This 
240.20  increase is to correct programming 
240.21  difficulties incurred during implementation 
240.22  of payment processing changes. This is a 
240.23  onetime appropriation. 

240.24  Sec. 6. EMERGENCY MEDICAL                                                         
240.25  SERVICES BOARD                                                                    
240.26  State Government Special                                      
240.27  Revenue                                    -0-          50,000
240.28  EMERGENCY MEDICAL SERVICES 
240.29  BOARD APPROPRIATION INCREASE. 
240.30  This increase is to be spent by the health 
240.31  professional service program from the state 
240.32  government special revenue fund.

240.33      Sec. 7. [256.029] DOMESTIC VIOLENCE INFORMATIONAL BROCHURE.
240.34  (a) The commissioner shall provide a domestic violence informational brochure that 
240.35  provides information about the existence of domestic violence waivers for eligible public 
241.1   assistance applicants to all applicants of general assistance, general assistance medical 
241.2   care, Minnesota family investment program, medical assistance, and MinnesotaCare. The 
241.3   brochure must explain that eligible applicants may be temporarily waived from certain 
241.4   program requirements due to domestic violence. The brochure must provide information 
241.5   about services and other programs to help victims of domestic violence.
241.6   (b) The brochure must be funded with TANF funds.
241.7   EFFECTIVE DATE.This section is effective upon federal approval.

241.8       Sec. 8. [256D.0515] ASSET LIMITATIONS FOR FOOD STAMP HOUSEHOLDS.
241.9   All food stamp households must be determined eligible for the benefit discussed 
241.10  under section 256.029. Food stamp households must demonstrate that:
241.11  (1) their gross income meets the federal Food Stamp requirements under United 
241.12  States Code, title 7, section 2014(c); and 
241.13  (2) they have financial resources, excluding vehicles, of less than $7,000.
241.14  EFFECTIVE DATE.This section is effective upon federal approval.

241.15      Sec. 9. SUNSET OF UNCODIFIED LANGUAGE.
241.16  All uncodified language contained in this article expires on June 30, 2007, unless a 
241.17  different expiration date is explicit."
241.18  Delete the title and insert:
241.19                                             "A bill for an act
241.20  relating to the financing of state government; making supplemental 
241.21  appropriations for early childhood and family prekindergarten through grade 12, 
241.22  and postsecondary education; environment, natural resources, and agriculture; 
241.23  clean water legacy; economic development, transportation; public safety; state 
241.24  government; veterans affairs; miscellaneous health and human services; health 
241.25  care federal compliance; children and families federal compliance; assisted 
241.26  living; long-term care; modifying certain statutory provisions and laws; providing 
241.27  for certain programs; fixing and limiting fees; authorizing rulemaking; requiring 
241.28  reports; appropriating money;amending Minnesota Statutes 2004, sections 
241.29  43A.17, subdivision 4; 62A.045; 62S.05, by adding a subdivision; 62S.08, 
241.30  subdivision 3; 62S.081, subdivision 4; 62S.10, subdivision 2; 62S.13, by adding 
241.31  a subdivision; 62S.14, subdivision 2; 62S.15; 62S.20, subdivision 1; 62S.24, 
241.32  subdivisions 1, 3, 4, by adding subdivisions; 62S.25, subdivision 6, by adding 
241.33  a subdivision; 62S.26; 62S.266, subdivision 2; 62S.29, subdivision 1; 62S.30; 
241.34  84.0835, subdivision 3; 85.32, subdivision 1; 97A.028, subdivision 3; 114D.30, 
241.35  subdivision 2, as added; 119B.13, by adding a subdivision; 123B.57, subdivision 
241.36  6; 124D.518, subdivision 4; 124D.52, subdivision 1; 125A.27, subdivisions 
241.37  7, 8, 11, 15, 18; 125A.29; 125A.30; 125A.32; 125A.33; 125A.48; 136A.101, 
241.38  subdivision 8; 136A.15, subdivision 9; 136A.1701, subdivisions 4, 7; 137.022, 
241.39  subdivision 4; 137.17, subdivisions 1, 3; 144.0724, subdivisions 3, 4; 144.6501, 
241.40  subdivision 6; 144A.071, subdivisions 4a, 4c; 144A.10, by adding a subdivision; 
241.41  144A.161, subdivisions 1, 2, 3, 4, 5, 5a, 5c, 6, 8, by adding a subdivision; 
241.42  144A.4605; 144D.01, by adding a subdivision; 144D.015; 144D.02; 144D.03, 
241.43  subdivision 2, by adding a subdivision; 144D.04; 144D.05; 144D.065; 181.101; 
242.1   216C.41, subdivision 4; 256.01, by adding a subdivision; 256B.02, subdivision 
242.2   9; 256B.056, subdivision 2, by adding subdivisions; 256B.0595, subdivisions 
242.3   1, 3, 4; 256B.0625, subdivision 20; 256B.0945, subdivision 1; 256B.431, by 
242.4   adding a subdivision; 256B.434, by adding subdivisions; 256B.437, subdivision 
242.5   3; 256B.438, subdivision 4; 256B.69, subdivision 9, by adding a subdivision; 
242.6   256B.76; 256J.021; 256J.626, subdivision 2; 256L.04, subdivision 10; 256L.11, 
242.7   by adding a subdivision; 256L.17, subdivision 2; 326.105; 469.334, subdivisions 
242.8   1, 4; 518.551, subdivision 7; Minnesota Statutes 2005 Supplement, sections 
242.9   35.05; 119B.13, subdivisions 1, 7; 121A.19; 124D.111, subdivision 1; 124D.135, 
242.10  subdivision 1; 124D.175; 124D.531, subdivision 1; 125A.28; 144.1476, 
242.11  subdivision 4; 144A.071, subdivision 1a; 216C.41, subdivision 3; 256B.0571; 
242.12  256B.0595, subdivision 2; 256B.06, subdivision 4; 256B.0918, subdivisions 1, 3, 
242.13  4; 256B.0946, subdivision 1; 256B.434, subdivision 4; 256B.5012, subdivision 
242.14  6; 256B.69, subdivision 23; 256D.03, subdivision 3; 256L.03, subdivision 
242.15  5; 299A.641, subdivision 3; 299A.78;  Laws 1998, chapter 404, section 15, 
242.16  subdivision 2, as amended; Laws 2005, chapter 136, article 1, section 10; Laws 
242.17  2005, First Special Session chapter 1, article 2, section 3, subdivision 2; article 
242.18  3, section 2, subdivision 4; Laws 2005, First Special Session chapter 4, article 
242.19  7, section 55; article 9, section 5, subdivision 8; Laws 2005, First Special 
242.20  Session chapter 5, article 1, sections 47; 54, subdivisions 2, 3, 5, 6, 7, 8; article 
242.21  2, section 84, subdivisions 2, 3, 4, 6, 7, 10; article 3, section 18, subdivisions 2, 
242.22  3, 4, 5, 6, 7; article 4, section 25, subdivisions 2, 3, 4, 6; article 5, section 17, 
242.23  subdivisions 2, 3; article 6, section 1, subdivisions 2, 3, 5; article 7, section 20, 
242.24  subdivisions 2, 3, 4; article 8, section 8, subdivisions 2, 3, 5; proposing coding 
242.25  for new law in Minnesota Statutes, chapters 4; 16E; 43A; 62S; 85; 116J; 116U; 
242.26  120B; 122A; 124D; 144; 144A; 144D; 197; 245; 256; 256B; 256D; 299A; 341; 
242.27  proposing coding for new law as Minnesota Statutes, chapter 144G; repealing 
242.28  Minnesota Statutes 2004, sections 62J.694; 116J.543; 137.17, subdivisions 2, 4; 
242.29  144.395; 245.465, subdivision 2; 256B.0945, subdivisions 5, 6, 7, 8, 9; 256B.83; 
242.30  Minnesota Statutes 2005 Supplement, section 256B.0571, subdivisions 2, 5, 
242.31  11; Minnesota Rules, part 4668.0215."

243.1   We request the adoption of this report and repassage of the bill.                 
243.2   House Conferees:(Signed)                                                        
243.3                                                                                   
243.4   Jim Knoblach                               Dennis Ozment                        
243.5                                                                                   
243.6   Marty Seifert                              Fran Bradley                         
243.7                                                                                   
243.8   Loren A. Solberg                                                                
243.9   Senate Conferees:(Signed)                                                       
243.10                                                                                  
243.11  Richard J. Cohen                           Linda Berglin                        
243.12                                                                                  
243.13  John C. Hottinger                          LeRoy A. Stumpf                      
243.14                                                                                  
243.15  Dennis R. Frederickson