Senate Counsel, Research
and Fiscal Analysis
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St. Paul, MN 55155
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Alexis C. Stangl
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   Senate   
State of Minnesota
 
 
 
 
 
H.F. No. 3172 - Omnibus Supplemental Appropriations Bill, The Conference Committee Report
 
Author: Senator Richard Cohen
 
Prepared By: Ann Marie Lewis, Senate Counsel (651/296-5301)
Bjorn E. Arneson, Senate Analyst (651/296-3812)
Dan Mueller, Senate Fiscal Analyst (651/296-7680)
Eric Nauman, Senate Fiscal Analyst (651/296-5539)
Chris Turner, Senate Fiscal Analyst (651/296-4350)
Carlon D. Fontaine, Senate Counsel (651/296-4395)
Joan White, Senate Counsel (651/296-3814)
Kenneth P. Backhus, Senate Counsel (651/296-4396)
Stephanie James, Senate Counsel (651/296-0103)
Dennis K. Albrecht, Senate Fiscal Analyst (651/296-3817)
Krista Boyd, Senate Fiscal Analyst (651/296-7681)
 
Date: May 16, 2014



 

ARTICLE 1:  HIGHER EDUCATION

Section 1 contains boilerplate language.

Section 2 appropriates $750,000 in FY2015 to the Office of Higher Education for immediate transfer to College Possible to expand the program’s coaching and mentoring activities. Requires a report to the Legislature and delineates the information to be included in the report. Specifies that the appropriation must not be used for the expansion and support of the program outside of Minnesota. This is a onetime appropriation.

Section 3 appropriates $17,000,000 in FY 2015 to the Board of Trustees of the Minnesota State Colleges and Universities for compensation costs associated with the settlement of employee contracts for fiscal year 2014. The board’s appropriation base is increased by $17,000,000 in fiscal years 2016 and 2017.

Section 4, subdivision 1 appropriates $4,500,000 in FY 2015 to the Board of Regents of the University of Minnesota.

Subdivision 2 appropriates $4,500,000 for the collaborative partnership between the University of Minnesota and the Mayo Clinic for regenerative medicine research, clinical translation, and commercialization. Delineates additional collaborative partnership representatives. Requires the submission of an independent financial audit to the legislature. The full amount of this appropriation is for the partnership and may not be used by the University of Minnesota for administrative or monitoring expenses. For fiscal year 2016 and thereafter, the base for this program is $4,350,000.

Section 5 contains definitions pertaining to reporting requirements for study abroad programs.

Subdivision 2 requires postsecondary institutions offering study abroad programs to file a report, by November 1 of each year, with the secretary of state, regarding specified information about participant accidents, illnesses and deaths. The institutions also must indicate whether the program complies with health and safety standards established by the Forum on Education Abroad, or a comparable standard setting agency.

Subdivision 3 directs the secretary of state to publish the reports required by subdivision 2 on its website and provides guidance on the manner in which the information should be presented.

Subdivision 4 directs the secretary of state to provide the information posted on its website to the Office of Higher Education. Directs the Office to post the information they receive from the secretary of state on their website. The Office may otherwise distribute the information.

Subdivision 5 requires postsecondary institutions to include, in written materials provided to prospective program participants, a link to the secretary of state’s website stating that program health and safety is available at the site.

This section is effective August 1, 2014, provided that the initial reports under subdivision 2 are due November 1, 2015.

Section 6 specifies that a person who is honorably discharged from the armed forces of the United States is entitled to resident tuition at Minnesota public postsecondary institutions. This section is in addition to any statute, rule, or higher education institution regulation or policy providing eligibility for a resident tuition rate or its equivalent to a student. This section is effective for academic terms beginning after August 1, 2014.

Sections 7 and 11 authorize the Office of Higher Education to enter into an interstate reciprocity agreement regarding postsecondary distance education if it determines that participation is in the best interest of Minnesota postsecondary students. Exempts specified institutions from the provisions of the Minnesota Private and Out-of-State Public Postsecondary Education Act if the Office opts to participate in such an agreement.

Sections 8, 9, and 10 authorize the Office of Higher Education to refinance student and parent loans. Specifies certain terms of the refinancing activities including notification of the chairs of the Legislative committees with primary jurisdiction over higher education finance regarding proposed changes to the program. This section is effective the day following enactment, provided no loans may be financed prior to June 1, 2015.

Section 12 requires MnSCU to develop a plan to implement multi-campus articulation agreements that lead to baccalaureate degree completion upon earning the number of credits required for a degree minus 60 credits, at a state university, by a student with an associate of arts degree, an associate of science degree, or an associate of fine arts degree from a system college. Requires a report.  The board shall assign the task of developing the plan to the appropriate committee formed under the “Charting the Future” initiative.

Section 13 requires the Office of Higher Education to report to the Legislature, by February 1, 2015, the plans and proposed terms and conditions for operating a student loan refinancing program.

Section 14 requires the Office of Higher Education to submit a report to the Legislature, by February 1, 2015, regarding the appropriate regulation of postsecondary institution study abroad programs.

Section 15 specifies that for fiscal years 2016 to 2041, $3,500,000 is added to the base operations and maintenance appropriation to the Board of Regents of the University of Minnesota in Laws 2013, chapter 99, article 1, section 5.

Section 16 requests the Board of Regents of the University of Minnesota to complete the design of, and to construct, furnish, and equip a new James Ford Bell Natural History Museum and Planetarium on the St. Paul campus.

ARTICLE 2:  APPROPRIATIONS FOR DEPARTMENT OF EMPLOYMENT & ECONOMIC DEVELOPMENT, DEPARTMENT OF LABOR & INDUSTRY, AND HOUSING FINANCE

Section 1. Contains the total direct appropriations and the enabling appropriation language for the article.

 Sections 2 to 5. Contain the appropriation changes for the various agencies.  See spreadsheet.

 Section 6. [Business and Community Development]

  • Allows the Department of Employment and Economic Development to use up to three percent of the appropriation for the Minnesota Investment Fund for administrative expenses and technology upgrades.
  • Reduces the nonpublic match for a grant to the City of Morris for an agricultural processing facility from $1,250,000 to $750,000.

 Section 7. [Minnesota Trade Office] allows an FY2014 appropriation for trade relations to be available in FY2015.

 Section 8. [Vocational Rehabilitation] extends the allocation of extended employment funds for the Courage Center that are contracted through the Allina Health system by one year.

 Section 9. [Housing Finance Agency] adds rider language to the 2013 appropriations to the Minnesota Housing Finance Agency (MHFA) to continue ongoing efforts to reduce the racial and ethnic disparities gap in homeownership rates and increase the resources to achieve that goal

Section 10. [Challenge Program] Provides $500,000 from the 2013 Challenge Fund appropriation be used for homeownership opportunities for families with a disabled child who have recently faced eviction. This section returns the money to general Challenge Fund uses if the money is not used by October 31, 2014.

Section 11. [Explore Minnesota Tourism] Allocates $100,000 from the existing Explore MN Tourism FY2015 appropriation for a grant to the Mille Lacs Tourism Council. Also appropriates an additional $100,000 from the 2015 Explore Minnesota Tourism appropriation for additional marketing activities.

Section 12. [Telecommunications] allows telecommunication access fund money that is currently being used for captioning of legislative coverage to also be used for other state agencies.

Section 13 [Extended Employment Carryforward] allows FY2014 appropriation for extended employment services to be available through the end of FY2015.

Section 14 [Assigned Risk Transfer] transfers anticipated surpluses from the assigned risk plan in the following order:

  • $10.5 million to the general fund by June 30, 2015;
  • Up to $4.82 million each year, for five years, to the Minnesota minerals 21st Century Fund, or until a total of $24.1 million is transferred into the fund;
  • Up to $4.82 million each year for two years, to the general fund and is appropriated to the Department of Labor and Industry for Workers Compensation Reform (see section 15).

Section 15 [Workers’ Compensation System Reform] directs the Commissioner of Labor and Industry, with the approval of the Advisory Council on Workers’ Compensation, to implement a new workers’ compensation system modeled after  a Medicare-based diagnosis-related group (MS-DRG), or similar system for payment of workers’ compensation costs.

Section 16 [Affordable Housing Plan; Disparities Report] requires Minnesota Housing Finance Agency to provide the draft and final version of the affordable housing plan, the agency’s annual plan providing information on the use of funding the agency receives, to the legislature.

ARTICLE 3:  JOBS, ECONOMIC DEVELOPMENT, ENERGY, AND LABOR

 Section 1 [Community energy efficiency and renewable energy loan] provides a data classification for energy usage data provided by an industrial, commercial, or health care facility customer for community energy efficiency and renewable energy loans.

 Section 2 [Definitions] contains definitions relating to broadband development.

 Section 3 [Border-to-border broadband development grant program] establishes a broadband development grant and loan program under the commissioner of employment and economic development. Limits grants to no more than 50 percent of the total cost of a project and a maximum award of $5 million to a single project.

 Section 4 [Border-to-border broadband fund] establishes the border-to-border broadband account in the special revenue fund.

 Section 5 [Use of fund] expands the permitted uses for the Minnesota Minerals 21st Century Fund to include investments in facilities for the manufacturing of renewable energy products and facilities for the manufacturing of biobased or biomass products.

 Section 6 [Grant limits] increases the percentage that local communities and recognized Indian tribal governments are allowed to retain when a Minnesota investment fund grant is repaid to the local community or recognized Indian tribal government from 20 to 40 percent, up to $100,000. 

 Section 7 [Workforce program outcomes] directs the commissioner of employment and economic development to develop and implement a comprehensive system for data collection, reporting, and analysis of the effects and outcomes for adult workforce development programs and services.

 Section 8 [Receipt of gifts, money; appropriation] authorizes the commissioner of mediation services to apply for and accept money.

 Section 9 [Approved training programs] authorizes the commissioner of labor and industry to provide exemptions from the Child Labor Standards Act, as necessary, to minors participating in specified training programs.

 Section 10 [Technical assistance] allows the commissioner of commerce to assess up to $850,000 per year for technical assistance for the conservation improvement programs.  Allows up to $400,000 per year, until June 30, 2017, of the assessment to go toward developing, maintaining, operating, and providing technical support for a uniform electronic data reporting and tracking system.

 Section 11 [Community energy efficiency and renewable energy loan program] expands the purpose and criteria for the loan program for community energy efficiency and renewable energy projects.  Specifies that energy usage data provided by an industrial, commercial, or health care facility customer for the loans is classified as nonpublic data.

 Section 12 [Community energy efficiency and renewable energy loan revenue bonds]  provides additional specifications regarding bonding authority for revenue bonds for community energy efficiency and renewable energy loans. 

 Section 13 [Affirmative business enterprise employment] makes changes to affirmative business enterprise employment within the vocational rehabilitation program to specify that the employer must provide one benefit package available to all employees at the specific site certified as an affirmative business enterprise. 

 Section 14 [Employment services for persons who are deaf, deafblind, or hard-of-hearing] directs the commissioner of employment and economic development to develop and implement a statewide grant program to provide long-term supported employment services for persons who are deaf, deafblind, and hard-of-hearing. Allows the commissioner to keep up to five percent of the biennial appropriation for administration.  Provides that the section is effective only upon enactment of a direct appropriation for the grant program.

Section 15 [City or town where quarried or produced] removes requirement for cooperative projects in which two or more municipalities participate and corresponding reporting responsibilities for those projects.
 

Section 16 [2013 distributions] makes technical changes to the 2013 taconite tax property tax relief distributions for the 2013 distributions of taconite tax funds.

Section 17 [2014 distributions] provides for taconite tax property tax relief distributions to named municipalities for 2014 distributions of taconite tax funds.

Section 18 [CIP electronic data reporting and tracking system; evaluation] allows the commissioner of commerce to utilize a stakeholder group to monitor the usability and product development of systems for electronic data reporting and tracking of the conservation improvement plan program.

 Section 19 [Innovation voucher pilot program] directs the commissioner of employment and economic development to develop and implement an innovation voucher pilot program to provide financial assistance to small businesses purchasing technical assistance and services for research, technical development, product development, commercialization, technology exploration and improved business practices. Provides a maximum $25,000 voucher award limit per business.

 Section 20 [Commissioner’s accountability plan] requires the commissioner of employment and economic development to report on a plan and funding needs to design and implement a performance accountability outcome measure system for programs under Chapters 116J and 116L.

Section 21 [Competency standards: advance manufacturing, health care service, information technology, and agriculture] directs the commissioner of labor and industry, in collaboration with the commissioner of employment and economic development, to establish competency standards for programs in advanced manufacturing, health care services, information technology, and agriculture. Requires a report.

Section 22 [Agricultural employment; report] requires the commissioner of labor and industry to report to the legislature on the number of agricultural employees who are using a 48 hour work week and the number of employees affected, including recommendations for appropriate compensation for agricultural employees.

 Section 23 [Repealer] repeals current program accountability requirements.

 ARTICLE 4:  STATE DEPARTMENTS AND VETERANS

This is the 2014 supplemental budget article for the State Departments and Veterans Division of the Committee on Finance.  The article appropriates $100,000 in fiscal year 2014 and $2,044,000 in fiscal year 2015; establishes a Legislative Water Commission; clarifies proof of eligibility for veteran-owned small business preference in bidding on state contracts; provides expedited and temporary licensing for qualified veterans.

Section 1 [State Departments and Veterans Appropriations] specifies that the appropriations in this article are in supplement to those in Laws 2013, chapter 142, article 1, and are appropriated from the general fund, unless otherwise named.  These appropriations are available for fiscal years ending June 30, 2014, or June 30, 2015, as indicated.  Supplemental appropriations for the fiscal year ending June 30, 2014, are effective the day following final enactment.

Section 2 [State Departments and Veterans Appropriations] makes the following appropriations:

Subdivision 1 [Legislative Coordinating Commission] appropriates $380,000 in fiscal year 2015 to the Legislative Coordinating Commission.  Of this amount, $225,000 is for operating costs of the joint legislative offices and $155,000 is for the Legislative Water Commission established in this article.  This section adds $150,000 each fiscal year to the base through fiscal year 2019 for the LCC and $145,000 each fiscal year to the base for the Water Commission.

Subdivision 2 [Minnesota Housing Finance Agency] appropriates $250,000 to the Housing Finance Agency to conduct a housing needs assessment for veterans, with certain requirements on conducting the assessment

Subdivision 3 [Racing Commission] makes a onetime appropriation of $100,000 in fiscal year 2014 and $85,000 in fiscal year 2015 to the Racing Commission from the racing and card playing regulation accounts in the special revenue fund.  These appropriations are available in either year of the biennium. 

Subdivision 4 [Amateur Sports Commission] appropriates $50,000 in fiscal year 2015 to the Amateur Sports Commission to develop a pilot program to prevent and reduce childhood obesity.  This is a onetime appropriation available until June 30, 2017.

Subdivision 5 [Minnesota Historical Society] appropriates $25,000 in fiscal year 2015 to the Minnesota Historical Society for a grant to Farm America for repairs and maintenance of the Minnesota Agricultural Interpretive Center and for audit expense.  This is a onetime appropriation available until June 30, 2017.

Subdivision 6 [Board of the Arts] makes a onetime appropriation of $750,000 from the arts and cultural heritage fund in fiscal year 2015 to the Board of the Arts for arts education in partnership with the President’s Turnaround Arts Initiative if the state is awarded a federal grant under this initiative.

Subdivision 7 [Humanities Center] makes a onetime appropriation of $125,000 in fiscal year 2015 from the arts and cultural heritage fund to the Humanities Center for the Veterans’ Voices program to educate the community regarding veterans’ contributions, knowledge, skill and experiences.  Of the $125,000 appropriation, $25,000 is for transfer to the Association of Minnesota Public Education Radio Stations for statewide programming to promote Veterans’ Voices.  This section makes a onetime appropriaiton of $100,000 from the arts and cultural heritage fund for the Educators Professional Development program.

Subdivision 8 to Subdivision 21 make appropriations to various licensing boards to implement expedited and temporary licensing provisions under a program established later in this bill that assists veterans with obtaining certain professional licenses more quickly than through the regular process.   These appropriations -- all in fiscal year 2015 and all onetime -- are as follows:

  • Department of Education:  $44,000
  • Board of Accountancy:  $44,000
  • Board of Architecture, Engineering, Land Surveying, Landscape Architecture, Geoscience and Interior Design:  $44,000
  • Board of Cosmetology Examiners:  $20,000
  • Board of Barber Examiners: $10,000
  • Board of Private Detectives: $44,000
  • Board of Behavioral Health and Therapy:  $15,000
  • Board of Dentistry:  $10,000
  • Board of Dietetics and Nutrition Practice:  $10,000
  • Board of Marriage and Family Therapy:  $14,000
  • Board of Nursing Home Administrators:  $1,000
  • Board of Optometry:  $10,000
  • Board of Podiatric Medicine:  $10,000
  • Board of Social Work:  $3,000

Section 3 [Legislative Water Commission] establishes a Legislative Water Commission to review certain water policy reports and recommendations.  The commission has 12 legislative members, equally representing each body and each party. 

Section 4 [Creation]; Section 5 [Submission of Recommendations]; and Section 6 [Criteria] remove from the current Compensation Council the duty to recommend salaries for legislators. 

Section 7 [Veteran-Owned Small Business] and Section 8 [Eligibility; Rules] make changes and clarifications to the requirements and process for certification as a veteran-owned small business entitled to preferences, previously established in statute, of up to six percent when bidding on state contracts. 

Sections 9 - 17 and 19 - 24 implement section 18 by requiring individual boards to establish temporary licensing and by setting fees for temporary licenses and permits.

Section 18 [Expedited and Temporary Licensing for Former and Current Members of the Military] directs state agencies and certain licensing boards to establish procedures to expedite licenses and to issue temporary licenses to qualified active duty military members, the spouses of active duty military members, and veterans who have left service in the prior two years with honorable general discharge status.  To qualify for a temporary license, an individual must have a license in another state without a history of disciplinary action and must pass a background check. Certain state agencies and boards are authorized to adopt rules to implement this program. 

Section 25 [Initial Appointments and Meeting] sets deadlines for first appointments and convening and chairing the first meeting of the Legislative Water Commission, established earlier in this article.

Section 26 [Study of Special Revenue Account for Central Accommodation] requires the Commissioner of Management and Budget to report to the legislature by January 5, 2015, on the advantages and disadvantages of creating a dedicated fund from which to pay for costs of providing accommodation to executive branch employees with disabilities. 

ARTICLE 5:  PUBLIC SAFETY AND CORRECTIONS APPROPRIATIONS

Sections 1 and 2 summarize the article’s appropriations by fund and explain the structure of the bill.

Section 3, subdivision 1, summarizes appropriations to the Department of Public Safety (DPS).

Subdivision 2 appropriates $5,059,000 the first year and $6,865,000 the second year from the 911 account in the state government special revenue fund to the Emergency Communication Networks division in DPS.

Subdivision 3 makes the following three fiscal year 2015 general fund appropriations to the Office of Justice Programs:

  • $500,000, onetime, for Youth Intervention Programs;
  • $500,000, onetime, for an emergency shelter for East African women and children; and,
  • $300,000, ongoing, for sexual assault prevention grants.

Subdivision 4 appropriates $1.3 million in fiscal year 2014 from the fire safety account in the special revenue fund for firefighter training and education.

Subdivision 5 appropriates $473,000 in fiscal year 2015 from the general fund to the Bureau of Criminal Apprehension (BCA) to implement the newly enacted expungement regimen.

Section 4, subdivision 1, appropriates $30,139,000 in fiscal year 2015 from the general fund to the Department of Corrections (DOC) for the purposes listed in subdivisions 2 to 4.

Subdivision 2 appropriates $27,289,000 to the Correctional Institution division of DOC, $16.2 million for increased staffing costs and approximately $1.1 million for jail bed rentals.

Subdivision 3 appropriates $1,950,000 to the Community Services division of DOC, $1.9 million for increased staffing costs and $50,000 for a victim notification of the release from prison of certain inmates.

Subdivision 4 appropriates $900,000 to the Operations Support division of DOC for increased staffing costs.

Section 5 appropriates $50,000 from the general fund to the Human Rights Department for community outreach regarding the role and duties of the state councils of color.

Section 6 appropriates $50,000 from the general fund to the Peace Officer Standards and Training (POST) Board reimbursement for training costs related to crisis de-escalation techniques.

Section 7 appropriates $45,000 from the general fund to the Department of Human Services to implement the newly enacted expungement regimen.

Section 8 provides the Emergency Communication Networks division in DPS with carryforward spending authority for a 2010-11 appropriation.

Section 9 corrects a transposition error in the DPS appropriation total in last year’s Judiciary and Public Safety funding bill.

Section 10 authorizes the BCA to retain a business analyst to assist in the replacement of the state’s criminal reporting system.

Section 11 provides the POST Board carryforward spending authority for reimbursement for training costs related to handling cases of sexually exploited or trafficked youth.

Section 12 transfers $3 million from the general fund to the disaster assistance contingency account, created in Article 9.

ARTICLE 6: PUBLIC SAFETY AND CORRECTIONS

Section 1 authorizes disclosure of private or confidential court services data to crime victims as provided in section 5. (Note, this section is effective January 1, 2015.)

Section 2 provides that upon request, the commissioner of corrections or designee, may disclose to a victim of domestic violence the city and five digit zip code of the offender's residency upon or after release from DOC custody, unless the offender is not under supervision, the city or zip code is unavailable, or disclosure creates a risk. (Note, this section is effective January 1, 2015.)

Section 3 amends the law on continuances without adjudication of delinquency.  Under current law, a judge can order a continuance without adjudication of delinquency for up to 90 days (with a single 90 day extension) when the continuance is in the best interests of the child and the allegations in the delinquency petition are not in dispute (i.e., the child has already admitted them or they have already been proven). This section extends the continuance periods to 180 days. The 180 day extension may only be granted with the prosecutor’s approval. Also requires that a continuance not be inimical to public safety and broadens the conditions of the continuance to include any of the authorized disposition options for adjudicated delinquents, except a transfer of legal custody of the child to the commissioner of corrections. Authorizes a prosecutor to appeal a continuance ordered in contravention of this section.

Section 4 provides that the Fire Service Advisory Committee does not expire.

Section 5 adds a new subdivision to section 611A.06 – Right to Notice of Release.  Provides a victim with the same rights as found in section 2.  Classifies the victim’s identifying data as private data on individuals. (Note, this section is effective January 1, 2015.)

Section 6 amends the law that provides that if a statute prohibits the performance of an act but does not provide a penalty, a violation is deemed a misdemeanor (maximum penalty of up to 90 days incarceration and/or a $1,000 fine). This section provides that for statutes enacted or amended after September 1, 2014, the penalty is a petty misdemeanor (maximum penalty $300 fine). This change is made only prospectively and does not affect laws currently in effect.

Section 7 amends the 2014 Omnibus Liquor Act to correct a technical error.  Under current law, the authority for how the University of Minnesota conducts liquor sales at TCF Bank Stadium expires July 1, 2014. The liquor act contained a provision repealing that expiration. However, this repealer did not have an explicit effective date, thus it is effective on the default date of August 1, 2014. By that time, the authority mentioned above would have already expired and the repealer of the expiration would not revive it. This section adds an immediate effective date to the repealer.

ARTICLE 7:  DISASTER ASSISTANCE FOR PUBLIC ENTITIES; FEDERAL AID GRANTED

This article establishes a disaster assistance contingency account that will provide funding for disaster relief programs and projects in designated areas after a presidentially declared major disaster and also for disaster relief in some instances where federal aid is not available.  Article 5, section 12 of this bill transfers $3,000,000 to the contingency account established in section 4 of this article.

Section 1 [Local Government] links the definition for "local government" as the term is used in articles 7 and 8 to the definition provided in federal law for federal emergency management purposes.  That definition is:

“Local Government:  (i) A county, municipality, city, town, township, local public authority, school district, special district, intrastate district, council of governments (regardless of whether the council of governments is incorporated as a nonprofit corporation under State law), regional or interstate government entity, or agency or instrumentality of a local government; (ii) An Indian tribe or authorized tribal organization, or Alaska Native village or organization; and (iii) A rural community, unincorporated town or village, or other public entity, for which an application for assistance is made by a State or political subdivision of a State.”

Section 2 [Nonfederal Share] defines the term “nonfederal share” as it is used in article 7 by providing the definition supplied in federal law for the FEMA disaster program.  The term “nonfederal share” refers to the portion of total eligible damages that is not eligible for FEMA assistance.  This is referred to as “FEMA match” in many instances, and is ordinarily 25 percent, with FEMA paying the remaining 75 percent of eligible costs.

Section 3 [Subgrant Agreements; State Share] requires that when state funds are used to provide a FEMA cost-share requirement for a local government, the state must pay 100 percent of the nonfederal share for FEMA public assistance.

Section 4 [Disaster Assistance Contingency Account] establishes a disaster assistance contingency account in the special revenue fund.  Money in the account may be used for:

  1. cost-share for federal assistance; and
  2. state public disaster assistance to local units of government under the program established in chapter 12B, which is created in article 8.  This program provides disaster assistance to public entities under certain conditions when federal aid is unavailable.

This subdivision also includes a requirement for the Commissioner of Management and Budget to report detailing state disaster assistance appropriations expenditures under this subdivision each calendar year.  Also requires the Governor to include recommendations for additional appropriations to the contingency account in each budget proposal submitted to the Legislature. 

Section 5 [Appropriation] provides a technical clarification to ensure that statutory appropriations are included within the meaning of the term “appropriation.” 

Section 6 [Local Government] links the definition for local government as it is provided in chapter 12A to the new definition provided in section 1 of this article.

Section 7 [Nonfederal Share] defines “nonfederal share” as that portion of total FEMA public assistance program costs that is not eligible for FEMA reimbursement, and does not exceed more than 25 percent of the total.

Section 8 [Nonduplication of Federal Assistance] replaces the term “matching” with “cost-share” and includes other technical and conforming changes.

Section 9 [State Cost-Share for Federal Assistance] authorizes appropriations to be used for 100 percent of the nonfederal share for state agencies and local units of government.

Section 10 [Disaster Assistance] requires the Commissioner of Minnesota Management and Budget to transfer unspent and expiring disaster assistance appropriations to the new contingency account created in this bill.  Includes a reporting requirement for each transfer.

Section 11 [Effective Date] makes this article effective the day following final enactment.

 ARTICLE 8: DISASTER ASSISTANCE FOR PUBLIC ENTITIES; ABSENT FEDERAL AID

This article establishes a new program to provide disaster assistance to local entities under some circumstances when the entities are not eligible for federal assistance.

Section 1 [Public Disaster Assistance] provides the purpose for this chapter of law, which is stated to provide cost-share assistance to local governments that sustain significant damage on a per capita basis, but are not eligible for federal disaster assistance or corresponding state assistance under chapter 12A.

Section 2 [Definitions] Applies the definitions that are supplied in article7 of this bill to the same terms used in this article.

Section 3 [Eligibility Criteria] allows the Department of Public Safety to enter into grant agreements with local government applicants for state financial assistance, provided a disaster satisfies the following criteria:

  1. there is a state or applicable local government declaration and emergency;
  2. damages are suffered and eligible costs incurred as a direct result of the disaster;
  3. federal disaster assistance is unavailable;
  4. the applicant incurred eligible damages on a per capita basis that equal or exceed 50 percent of the countywide per capita impact indicator under FEMA’s public assistance program;
  5. the applicant assumes responsibility for 25 percent of total eligible costs; and
  6. the applicant satisfies all other requirements in this chapter of law.

 Subdivision 2 allows the Director of Emergency Management to consider the availability of other resources from other units of government and the existence of any insurance.

Section 4 [Eligible Costs] provides that eligible costs include the costs that would have been eligible for reimbursement under the FEMA public assistance program.

Subdivision 2 specifies that ineligible costs include, but are not limited to:

  • ordinary operating expenses, including salaries and expenses of employees not directly related to disaster response;
  • costs for which payment has been or will be received from any other funding source;
  • disaster-related costs that should be covered and compensated by insurance;
  • projects and claims totaling less than the minimum FEMA project threshold.

Section 5 [Applicant’s Share] requires that an applicant’s share of eligible costs must not be less than 25 percent.  Allows the substantiated value of donations-in-kind to be counted toward the applicant’s share of eligible costs.  Provides other limitations on this method of accounting.

Section 6 [Application Process] requires the Department of Public Safety to develop application materials.  Provides a submission and review process, including a 30 day deadline after the end o the incident period for applicants to apply for assistance.

Section 7 [Claims Process] provides a timeline for a claims process and authorizes a process for appealing the denial of an award, including the ability to contest the commissioner’s decision in a contested case hearing under the provisions of the Administrative Procedure Act.

Subdivision 4 authorizes the Director of Emergency Management or the State Auditor to conduct an audit of the records of local government expenditures of disaster assistance funds and requires records to be kept for five years.

Section 8 [Funding from Other Sources] requires an applicant who subsequently recovers eligible costs from another source to pay the commissioner an amount equivalent to those funds within 30 days after receipt.

Section 9 [Effective Date] makes this article effective the day following final enactment.

ARTICLE 9:  TRANSPORTATION APPROPRIATIONS

Section 1 through 4 move $1.493 million of unspent trunk highway bond funds from FY 2010 to FY 2012 to complete work on the Rochester Maintenance Facility.

 Section 5 is a technical correction to a prior cancellation of FY 2007 trunk highway bonds.

 Section 6:

  • appropriates $1.0 million in FY 2014 and $3.0 million in FY 2015 from the state airports fund for airport development and assistance. These are onetime appropriations.  This section also allows the commissioner, in the current biennium only, to establish different local match requirements for airport projects than otherwise allowed by law;
  • appropriates $6.532 million in FY 2015 only from the general fund for Greater Minnesota transit, of which $32,000 is for the cost of foregone fare revenues from providing free transit service on Election Day 2014;
  • appropriates $2.0 million in FY 2015 only from the general fund for highway rail grade crossing safety improvements related to transport of oil or other hazardous materials; and
  • appropriates $250,000 in FY 2015 and each year thereafter from the general fund for the Safe Routes to School program for non-infrastructure activities such as planning and education.

 Section 7:

  • appropriates $35 million in FY 2014 and $18 million in FY 2015 from the trunk highway fund for operations and maintenance of state roads, of which $5 million in each year is an ongoing appropriation for accelerated replacement of snow plowing equipment.  The remaining appropriations are onetime, and in FY 2014 are for snow and ice removal and winter-related road repair, and in FY 2015 are for additional snow and ice support equipment, roadway lighting LED equipment, changeable message signs, and enhanced pavement patching;
  • makes a onetime appropriation of $3.120 million in FY 2015 from the trunk highway fund, of which $3 million is for enhanced program delivery, and $120,000 is for education and outreach related to highway work zone safety policy changes contained in Article 13;
  • appropriates $14 million (onetime) in FY 2014 and $21 million in FY 2015 from the trunk highway fund for turnback costs of a segment of Trunk Highway 14, appropriates $505,000 in FY 2015 and each year thereafter for costs of new highway work zone safety initiatives, appropriates $6.5 million in FY 2014 and $25 million (onetime) in FY 2015 for the Corridors of Commerce program, and allows the onetime transfer of up to $6 million from the trunk highway fund to the Stillwater Lift Bridge Endowment Account.

 Section 8 amends the flexible highway account transfer in FY 2015, allowing $21 million to be transferred to the trunk highway fund for costs of the Trunk Highway 14 turnback.

 Section 9:

  • makes a $60,000 ongoing reduction from the general fund appropriation to the Metropolitan Council to correspond to the appropriation increase to the Department of Public Safety for light rail safety oversight;
  • appropriates $500,000 (onetime) from the general fund for transit shelter improvements;
  • appropriates $144,000 (onetime) for the cost of foregone fare revenues from providing free transit service on Election Day 2014;
  • appropriates $250,000 (onetime) to replacement suburban transit providers;
  • appropriates $1 million for arterial bus rapid transit development; and
  • appropriates $1 million for a bus rapid transit station at I-35W and Lake Street.

 Section 10 adds $60,000 to the general fund base budget in FY 2015 to public safety support in the Department of Public Safety for light rail safety oversight.  This appropriation is currently made to the Metropolitan Council and then transferred to the Department of Public Safety for the same purpose.  There is a corresponding reduction to the general fund appropriation to the Metropolitan Council.

 Section 11:

  • appropriates $5.949 in FY 2015 (and $5.5 million in each year thereafter) from the trunk highway fund to the State Patrol in the Department of Public Safety, for costs of conducting a trooper academy in 2015 and for hiring and equipping 48 additional state troopers;
  • appropriates an additional $2 million in FY 2015 and each year thereafter from the general fund for capitol security.  This is an ongoing appropriation.

 Section 12:

  • makes technical corrections to Department of Public Safety’s Driver and Vehicle Services appropriation for the 2014-2015 budget;
  • makes a onetime appropriation of $46,000 from the special revenue fund for expenses related to the task force on motor vehicle insurance coverage verification; and
  • appropriates $816,000 in FY 2015 from the driver services operating account in the special revenue fund to implement improved driving skill examination scheduling  The base appropriation for this purpose is $759,000 in FY 2016 and $774,000 in FY 2017.

 Section 13 makes a onetime transfer of $1.574 million from the general fund to the newly created railroad and pipeline safety account in the special revenue fund.

ARTICLE 10 – RAILROAD AND PIPELINE SAFETY

Section 1 defines “incident commander” as the responsible official at the site of a discharge.  This section is effective the day following final enactment.

Section 2 defines “listed sensitive area” as having special economic or environmental importance, and being so designated in a plan under the federal Clean Water Act.  This section is effective the day following final enactment.

Section 3 defines “unit train” as having more than 25 tanker cars carrying oil or hazardous substance cargo.  This section is effective the day following final enactment.

Section 4 specifies requirements for preparedness and response for certain railroads.

Subdivision 1 applies this section to an owner/operator of a unit train.  This subdivision is effective the day following final enactment.

Subdivision 2 requires each railroad to offer training, by June 30, 2016, and refresher training every three years thereafter, to each fire department along the route of unit trains.  Training topics are specified.  This subdivision is effective the day following final enactment.

Subdivision 3 requires annual communication between railroads and local government emergency managers, rail labor safety representatives, and fire department officers, beginning June 30, 2015, to discuss emergency response coordination along the route of a unit train.  This subdivision is effective the day following final enactment.

Subdivision 4 provides that a railroad company is responsible for deploying sufficient equipment and resources to a discharge site.  The section specifies the resources that are required to be deployed at various time periods following a discharge.  This subdivision is effective July 1, 2015.

Subdivision 5 requires railroads to conduct a minimum of one oil containment, recovery, and sensitive area drill every three years.  The drills must be attended by rail labor safety representatives.

Subdivision 6 requires a railroad company by June 30, 2015, to submit a prevention and response plan for approval to the Pollution Control Agency, and must update the plan for approval every third year following plan submission.  This subdivision is effective the day following final enactment.

Section 5 specifies the duties of the Pollution Control Agency with regard to environmental protection activities related to railroad discharge preparedness.  This section is effective the day following final enactment.

Section 6 requires the Commissioner of Public Safety to carry out public safety protection activities related to railroad and pipeline spill and discharge preparedness.  The duties of the commissioner are specified.  This section is effective the day following final enactment.

Section 7 directs the Commissioner of Transportation to establish three or four state rail safety inspector positions (current law requires one position) in MnDOT's Office of Freight and Commercial Vehicle Operations.  The section authorizes the state rail safety inspectors to perform duties described in the federal State Rail Safety Participation program and to participate in any of the named federal disciplines.  The section provides that the inspector's authority to issue citations for violations must be delegated by the Federal Railroad Administration.  This section has an immediate effective date. 

Section 8 amends the section in which the commissioner annually assesses railroad companies for state rail inspector costs.  The section provides that state rail safety inspector program costs must be divided among Class I and Class II carriers, based on route miles operated in Minnesota.  This section has an immediate effective date.

Section 9 adds a section of law on railroad and pipeline safety to the Department of Public Safety chapter of statutes.

Subdivision 1 defines terms as follows:

  • “Applicable rail carrier” is a Class I or Class II railroad carrier.
  • “Hazardous substance” is defined with reference to federal law to include designated

      chemicals, hazardous air pollutants, and hazardous waste.  Hazardous substance does

      not include natural gas in various forms, synthetic gas, or petroleum, including crude

      oil that is not otherwise a hazardous waste.

  • “Oil” includes petroleum, fuel oil, sludge, oil refuse, lubricating oils and hydraulic

      oils.

  • “Pipeline company” is an entity required to show “specific preparedness” as defined in

      statute.

Subdivision 2 creates the railroad and pipeline safety account in the special revenue fund.  Each year, $104,000 is appropriated to the Pollution Control Agency and remaining money in the account is annually appropriated to the Commissioner of Public Safety for purposes under subdivision 3.

Subdivision 3 directs the commissioner to use money in the account for training and response preparedness relating to derailments, discharge, and spills of oil or hazardous substances from trains or pipelines.  The commissioner must allocate $100,000 annually for emergency response teams.  Following consultation with the Fire Service Advisory Committee, the commissioner must allocate remaining funds to the Board of Firefighter Training and Education and the Division of Homeland Security and Emergency Management, based on specified criteria.

Subdivision 4 provides for a total annual assessment of $2,500,000 to be imposed by the Commissioner of Public Safety on railroads and pipeline companies and deposited in the railroad and pipeline safety account.  The assessment amount for each railroad is based 50 percent on unit train route miles in Minnesota and 50 percent on yearly gallons of oil and hazardous substances transported in Minnesota.  The assessment amount for each pipeline company is based on its proportion of oil and hazardous materials transported by the company in Minnesota.  This subdivision expires on July 1, 2017.

Section 10 requires the Commissioner of Transportation to conduct a study on highway-rail grade crossing improvement for oil and other hazardous materials transported by rail.  An interim update must be submitted by August 31, 2014, and a final report by October 31, 2014, to the legislative transportation committees.  This section has an immediate effective date.

Section 11, subdivision 1 requires the Commissioner of Public Safety to report, by January 15, 2015, to the legislative Transportation and Public Safety Committees concerning incident and emergency response preparedness for incidents involving oil and hazardous materials transported by rail and pipeline.

Subdivision 2 requires the commissioner to report by January 15, 2017, to the legislative Transportation and Public Safety Committees to evaluate safety preparedness and funding, including equity in distribution of funds. 

This section is effective the day following final enactment.

ARTICLE 11 – TRANSPORTATION FINANCE PROVISIONS

Section 1 dedicates a segment of U.S. Highway 61 between Forest Lake and Wyoming as “Trooper Glen Skalman Memorial Highway.”

Section 2 allows use of funds in the Stillwater Lift Bridge endowment account to be used for bridge safety inspections and reactive repairs.

Section 3 authorizes the issuance of Minnesota golf plates to a vehicle owner who pays a fee of $10, any other applicable fees, and $30 annually to the Minnesota Section PGA Foundation account to promote the game of golf.  The contribution requirement is effective January 1, 2017, and the remainder of the section is effective January 1, 2015.

Section 4 defines “work zone” in the chapter on traffic regulations, as a highway segment on which a road authority is doing construction, reconstruction, or maintenance work, and on which at least one of the following conditions applies:

  • official traffic-control devices that indicate the work zone are erected;
  • at least one lane of traffic is closed;
  • a flagger is present;
  • a construction speed zone limit is established; or
  • a workers present speed limit is in effect.

This section is effective August 1, 2014.

Section 5 removes a provision on traffic control obedience to a flagger.  This provision is moved to a new subdivision in Section 6.  This section is effective August 1, 2014.

Section 6 sets a petty misdemeanor mandatory fine of $300 in addition to the statutory surcharge for failure to obey a work zone flagger.  A violation of this subdivision is not grounds for license revocation or suspension.  This section is effective August 1, 2014, and applies to violations committed on or after that date.

Section 7, paragraph (a) reduces the speed limit in a work zone, when at least one lane is closed and workers are present, to 45 miles per hour if the usual speed limit is 50 miles per hour or greater. 

Paragraph (b) specifies exceptions to this reduction. 

Paragraph (c) allows a road authority to set reduced speed limits in work zones when workers are present, without a traffic study, provided that the speed limits are reduced by no more than 20 mph where the regular limit is 55 miles per hour or greater, and by no more than 15 miles per hour where the regular limit is 50 mph or less.

Paragraph (d) states that reduced speed limits under this section are effective upon posting of speed limit signs.

Paragraph (e) requires the road authority to post signs specifying work zone speed limits under this subdivision.

This section eliminates a provision that doubles the fine for a speed limit violation in a work zone when workers are present, replacing it with a mandatory $300 fine.

This section is effective August 1, 2014, and applies to violations committed on or after that date.

Section 8 establishes a statutory fine of $300 for a work zone speed limit violation.  This section is effective August 1, 2014, and applies to violations committed on or after that date.

Section 9 allows a vehicle operated by a commercial vehicle inspector of the Department of Public Safety to use crossovers between the main roadways of a controlled-access highway. 

Section 10 amends the expiration date for an overweight vehicle permit issued for seasonal increases to be the same as the expiration date of the vehicle’s registration upon request of the applicant.  This section is effective November 30, 2016, and applies to permits issued on and after that date.

Section 11 amends the expiration date for an overweight vehicle permit issued for hauling of raw or unfinished forest products to be the same as the expiration date of the vehicle’s registration upon request of the applicant.  This section is effective November 30, 2016, and applies to permits issued on and after that date.

Section 12 states that the fee for an annual overweight permit that has the same expiration date as the vehicle’s registration must be based on the proportion of the year remaining until that expiration date.  This section is effective November 30, 2016, and applies to permits issued on and after that date.

Section 13 states that the expiration date for an overweight permit issued for hauling of pole-length pulpwood is the same as the expiration date of the vehicle’s registration upon request of the applicant.  This section is effective November 30, 2016, and applies to permits issued on and after that date.

Section 14 provides for a proportional overweight permit fee for six-axle vehicles hauling raw or unprocessed agricultural products if the permit expires when the vehicle registration expires under section 12.  This section is effective November 30, 2016, and applies to permits issued on and after that date.

Section 15 provides for a proportional overweight permit fee for seven-axle vehicles hauling raw or unprocessed agricultural products if the permit expires when the vehicle registration expires under section 12.   This section is effective November 30, 2016, and applies to permits issued on and after that date. 

Section 16 allows the applicant for an overweight permit under section 14 or section 15 to request an expiration date the same as the vehicle registration expiration date.  This section is effective November 30, 2016, and applies to permits issued on and after that date.

Section 17 adds a conforming reference to the section on fees for overweight vehicle permits for canola hauling.  This section states that the fee for overweight vehicle permits issued for canola hauling that have an expiration date matching the expiration date of the vehicle’s registration must be based on the proportion of the year remaining until that expiration date.  This section is effective November 30, 2016, and applies to permits issued on and after that date.

Section 18 amends the expiration date for an overweight permit issued for canola hauling to be the same as the expiration date of the vehicle’s registration.  This section is effective November 30, 2016, and applies to permits issued on and after that date.

Section 19 changes provisions relating to motorized bicycle operator permits and licenses.  The one-year operator’s permit (fee of $6.75) and duplicate permit (fee of $3.75) are stricken and replaced with a single motorized bicycle operator’s permit that is valid until age 21 (fee of $9.75).

Section 20 adds to the list of drivers' licenses a commercial learner’s permit, available for a fee of $2.50.

Senate 21 requires the Commissioner of Public Safety to allow an eligible person to take the behind-the-wheel examination within two weeks after requesting an appointment.

Section 22 provides that Department of Public Safety programs and policies relating to commercial drivers’ licensure and commercial motor vehicle operation conform with applicable federal regulations, and that federal provisions supersede state and local law.

Section 23 allows the Commissioner of Transportation to bill operations units for costs of centrally managed products or services, including equipment acquisition, labor, and materials.  Receipts are credited to the special products and services account, which is established in the trunk highway fund and appropriated to the commissioner.

Section 24 provides that funds in the transportation economic development account are available until expended. 

Section 25 adjusts the minimum against which MnDOT must measure a required level of spending for federal reimbursements for transportation alternatives projects.

Section 26 directs MnDOT to include, beginning in 2016, in its annual major highway projects report to the Legislature, a statement of efficiencies achieved during the previous two fiscal years.

Section 27 is a new statutory section on railroad yard lighting.

Subdivision 1 requires each Class I and Class II railroad carrier that operates yards where switching, inspection, and repair of trains are frequently done at night, to prepare and submit to MnDOT an annual plan describing the status of its lighting equipment and plans to improve the lighting standards identified in this subdivision.

Subdivision 2 requires all railroad carriers that are required to submit a report under subdivision 1 to maintain railroad yard lighting equipment, and to repair or replace equipment to specified standards within 48 hours after a malfunction has been reported to the carrier.

Subdivision 3 requires a union representative for workers at each yard as to which a report is required under subdivision 1 to submit an annual report to MnDOT describing the status and adequacy of lighting equipment.

Subdivision 4 requires the Commissioner of Transportation to review reports submitted under subdivisions 1 and 3 and to investigate and report any discrepancies.  The commissioner must annually advise the legislative Transportation Committees concerning reports, discrepancies, investigations, progress achieved in lighting improvement, and recommendations for legislation.

Subdivision 5 requires a railroad carrier to establish lighting, consistent with standards in subdivision 1, at each railroad yard that meets the description in the subdivision.

Section 28 allows MnDOT to use money in the rail service improvement account before July 1, 2017, to pay the state match for TIGER federal grants.

Section 29 amends the statutory distribution of motor vehicle lease sales tax proceeds so that the amount available for distribution between five metropolitan counties and greater Minnesota transit is divided equally (50 percent-50 percent) beginning in fiscal year 2015, instead of in fiscal year 2016, as current law provides.

Section 30 directs the Commissioner of Public Safety to establish an Office of State Safety Oversight to enforce federal safety regulations pertaining to rail fixed guideway public transportation systems.

Section 31 is a new section of statute concerning light rail transit vehicle design.

Subdivision 1 directs the Metropolitan Council to adopt light rail vehicle design standards by January 1, 2015, that will apply to all light rail vehicles procured on and after that date.  The standards must provide users of the service with access and protect their health and safety.  Before adoption and posting on the Web site by the council, the standards, and any subsequent amendments, must be reviewed by the Transportation Accessibility Advisory Committee.

Subdivision 2 prescribes minimum standards for light rail vehicles.

Section 32 establishes requirements for design of transit shelters and maintenance of shelters and stops in the Twin Cities metropolitan area.

Subdivision 1 defines “transit authority” to include cities, the Metropolitan Council, and opt-outs, for shelters and bus stop locations under their jurisdictions.  The subdivision defines “transit shelter.”

Subdivision 2 requires transit authorities to create design specifications for transit shelters, which must include appropriate engineering standards, maximized protection from the elements, warming capabilities at high-traffic locations as feasible, and accessibility for persons with disabilities and the elderly.  The council must consult on standards with the Transportation Accessibility Advisory Committee.

Subdivision 3 requires transit authorities to maintain transit shelters, including keeping shelters reasonably clean and removing snow and ice.  This section is effective the day following final enactment.

Section 33 requires the Commissioner of Transportation to include in the 2015 major highway projects report information on efficiencies implemented in fiscal year 2015, along with the level of savings achieved, and projects advanced due to the efficiencies-related savings.  This section is effective the day following final enactment. 

Section 34 directs the Departments of Natural Resources and Transportation to cooperative in using rest areas as sites for watercraft decontamination, where feasible with current funding.

Section 35 allows the Commissioner of Transportation, pursuant to a settlement agreement and release, to take over Old Highway 14, after necessary work is completed, to turn it back to Steele and Waseca Counties.

Section 36 directs the Commissioner of Transportation, by 2019, to perform engineering and traffic investigations on all Minnesota two-lane trunk highways with a posted speed limit of 55 miles per hour and designate an increased speed limit if it is reasonable and safe to do so.  New speed limits are effective when new signs are posted.  The commissioner must report annually to the legislative transportation committees on the results of these studies.  This section is effective the day after final enactment and expires the earlier of January 15, 2019, or the date of submission of the final report.

Section 37 establishes a task force on motor vehicle insurance coverage verification to recommend legislation to create and fund a program.  The task force must report to the Commerce and Transportation legislative committees by February 1, 2015, after which the task force sunsets.  This section is effective the day after final enactment.

Section 38 establishes a community destination sign pilot program for Two Harbors.

Subdivision 1 defines terms.

Subdivision 2 directs MnDOT to establish a community destination sign pilot program for wayfinding in Two Harbors to destinations or attractions of interest to the traveling public.

Subdivision 3 describes the attractions and destinations that are eligible for signs and allows the commissioner, in coordination with the city, to establish design specifications, which must allow for a city name and symbol and up to five attractions on a sign.

Subdivision 4 requires the city to pay all sign costs and prohibits the commissioner from charging fees.

Subdivision 5 requires MnDOT to evaluate the pilot program and report by January 15, 2021.

Subdivision 6 provides that the pilot program expires January 1, 2011.

This section is effective the day after the city of Two Harbors meets local approval requirements.

Section 39 provides for free rides on fixed route public transit in the metro and greater Minnesota on the day of the state general election in 2014.

ARTICLE 12:  AGRICULTURE, ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS

Sections 1 and 2. Contain the total direct appropriations and the enabling appropriation language for the article.

Sections 3 to 10. Contain the appropriation changes and cancelations for the various agencies.  See spreadsheet.

Section 11. [Remediation Fund] increases the maximum amount that can be transferred from the environmental fund to the remediation fund from $46 million to $47.15 million for the fiscal year 2014-2015 biennium.

Section 12. [Ecological and Water Resources] increases the appropriation for the Mississippi Headwaters Board from $103,000 to $124,000 for FY2015 only and requires the board to report to the Legislature the results achieved with the state appropriations.

ARTICLE 13:  AGRICULTURE, ENVIRONMENT, AND NATURAL RESOURCES FISCAL IMPLEMENTATION

 Section 1 [Animal premises data] classifies data collected from dog and cat breeders by the Board of Animal Health as private or non public under the Data Practices Act. This will make the data not public, but accessible to the individual subject of the data.

Section 2 [Suspense account; permanent school fund] provides for the costs of the Permanent School Fund Commission and the school trust lands director to be transferred to the general fund from the suspense account for permanent school fund revenues.

Sections 3 to 8 [Pollinator protection and bee compensation; definitions] contain the definitions of “apiary,” “bee,” “bee owner,” “colony,” “hive,” and “pollinator”  for the purposes of the pesticide laws and the compensation program for bee deaths and bee colonies lost due to pesticide application.

Section 9 [Pollinator enforcement] authorizes the Minnesota Department of Agriculture (MDA) to take enforcement actions for violations of the pesticide control law to protect pollinators by.

 Section 10 [Pollinator team of experts; appropriation] authorizes MDA to assemble a group of experts to investigate pollinator deaths and illnesses. Up to $100,000 per year is authorized from the pesticide regulatory account for this purpose.

Section 11 [Compensation for bee deaths and colony losses] provides for the MDA to compensate bee owners, up to $20,000 per year, for dead bees and bee colony losses due to pesticide use. This compensation does not apply to bee deaths or colony losses due to a known pesticide applicator applying pesticides inconsistent with the pesticide’s label. Up to $150,000 per year is authorized from the pesticide regulatory account for this purpose.

Section 12 [OHM registration exemptions] exempts an off-highway motorcycle (OHM) from the registration requirements when they are used at certain events and for nonresidents with a nonresident OHM state trail pass.

Section 13 [Nonresident OHM trail pass] establishes an OHM trail pass for nonresidents and tribal members who are exempt from registration when the person operates an OHM on a state or grant-in-aid OHM trail. The cost of the trail pas is $20, plus the issuing fee of $1.

Section 14 [State park license; state park permit requirement] provides that a state park license plate on a vehicle vehicle serves the same purpose as a state park permit.

Section 15 [State parks and trails donation account] creates the state parks and trails donation account for deposit of donations, including the annual contributions made by persons with the state parks and trails license plates. Money in the account is appropriated to the DNR to operate and maintain the state parks and trails system.

Section 16 [Fort Snelling upper bluff revenue] establishes a statutory appropriation for the revenue, including interest earned, from leases at Fort Snelling upper bluff.

Section 17 [Pollinator bank; Minnesota Zoo] contains the designation of the Minnesota Zoo as an official pollinator bank for the state.

Section 18 [Trap shooting sports facility grants] creates a trap shooting sports facility grant program to pay local recreational shooting clubs for up to 50 percent of the cost of improvements or development of trap shooting facilities.

Section 19 [Water investigations] expands current water investigation authority of the Department of Natural Resources (DNR) to include investigation of activities conducted with a permit.

Section 20 [Once-through water use permits] extends the current prohibition on water use permits for once-through heating and cooling systems to include systems that use less than five million gallons per year.

Section 21 [Water use permit processing fee] increases the fee to ten percent of the unpaid balance for failure to pay the water use processing fee and requires the DNR to waive the water use permit fee for installations that use storm water runoff and for public entities that are diverting water for water quality treatment and returning the water to its source.

Section 22 [Penalties for noncompliant reporting; water use permits] establishes a fee of ten percent for noncompliant reporting for water use permits.

Section 23 [Administrative penalties] authorizes the DNR to issue administrative penalty orders to a person for water appropriation activities without a permit. The administrative penalty amount shall be based on the level of harm and deviation from compliance of the violation. The levels and maximum amounts are:

  1. minor potential for harm and deviation, up to $1,000;
  2. moderate potential for harm and deviation, up to $10,000; and
  3. severe potential for harm and deviation, up to $20,000.

In determining the amount of the penalty, the DNR must consider the gravity of the violation; the history of violations; the number of violations; the economic benefit gained by the person; and other factors as justice may require. For second and subsequent violations, the DNR must also consider the similarity with past violations; the time elapsed since the last violation; the number of previous violations; and the response of the person to the most recent violation.

Section 24 [Recycling requirements; sports facilities] adds professional and collegiate sports facilities to places that are required to collect recyclable materials.

Section 25 [Statewide source reduction goal] provides for counties to reduce the generation of municipal solid waste and removes the statewide source reduction goal of ten percent.

Section 26 [Recycling definitions] adds source separated compostable materials to the definitions of “recycling” and “total solid waste generation” for the purpose of the county recycling goals.

Section 27 [County recycling goals] increases the recycling goals for metropolitan counties to 75 percent from 50 percent.

Section 28 [SCORE grant purposes] adds composting and providing receptacles for composting to the purposes for which SCORE grants to counties may be used. This section also requires metropolitan counties to use 50 percent of the portion of a grant that exceeds their fiscal year 2014 grant for composting.

Section 29 [SCORE grant eligibility] allows counties to report to the PCA electronically on their SCORE grant activities. This section also requires the county reports to include specific recycling and composting activities,

Section 30 [Technical] modifies the existing statutory appropriation to the Agricultural Utilization Research Institute (AURI) to remove the commissioner of revenue from the process.

Section 31 [State parks and trails license plates] establishes a state parks and trails license plate. A person may purchase the plate for $10.  An annual contribution of at least $50 to the state parks and trails donation account is required for a person using the state parks and trails license plate

Section 32 [Commercial breeder definitions] defines “animal” (dog or cat), “board” (Board of Animal Health), “Cat,” “commercial breeder” (ten or more adult intact animals that produce more than five litters per year), “confinement area,” “dog,” “facility,” “local animal control authority,” “person,” “possess,” and “veterinarian” for the purposes of dog and cat breeder licensing and regulations.

Section 33 [Commercial breeder licensing and inspections]

            Subd. 1 [Licensing] requires licensing for commercial breeders beginning July 1, 2015. The initial prelicense inspection and annual license fee is $10 per adult, intact animal up to $250. The board must conduct a prelicense inspection of the commercial breeder’s facility within 60 days of a license application. The application must include a statement on whether the applicant has ever had a breeder license suspended, revoked or denied; and whether the applicant has been convicted of animal cruelty. A license holder must annually report to the Board of Animal health and renew the license. The Board of Animal Health shall refuse an initial license for a commercial breeder who:

  1. has violated animal protection laws;
  2. has failed to meet the standards of care in this act;
  3. is in violation of local ordinances regarding breeders;
  4. has been convicted of animal cruelty under any jurisdiction;
  5. has been denied a similar license or had a similar license revoked by another jurisdiction; or
  6. has falsified material information to the board.

            Subd. 2 [Inspections] requires annual inspections by the Board of Animal Health. If no violations are found after the first two years of annual inspections for a commercial breeder, the board may conduct inspections every two years. If a violation is found, the inspections must be on an annual basis.

 Subd. 3 [Record requirements] requires a commercial breeder to keep identifying records for each animal for two years.

 Subd. 4 [Veterinary protocol] requires commercial breeders to have a written protocol for disease control and prevention, euthanasia, and veterinary care. The protocol must be updated at least every 12 months.  This section also requires that animals sold by the commercial breeder must be accompanied by a veterinary health certificate.

  Subd. 5 [Posting of information] directs the Board of Animal Health to post the licensed breeders on their Web site.

Section 34 [Commercial breeder standards of care] provides specific standards of care for a commercial breeder that are in addition to existing animal welfare laws. The standards of care address:

  1. prohibiting outdoor confinement for cats;
  2. compatible groups for exercise;
  3. females in estrus;
  4. positive contact with human beings;
  5. minimum of eight weeks old before sale;
  6. identification and animal tracking; and
  7. adequate staffing

This section also prohibits a commercial breeder from knowingly hiring staff or contractors that have been convicted of animal cruelty, and allows existing confinement areas by a United States Department of Agriculture licensed breeder that do not meet Minnesota statutory standards to be used.

Section 35 [Commercial breeder investigations] requires the Board on Animal Health to conduct inspections after receiving a complaint about a violation of the commercial breeder licensing or standards of care. This section also directs a local animal control authority, peace officer, or humane agent to make a timely report to the board of violations by a commercial breeder.

Section 66 [Commercial breeder civil enforcement]

 Subd. 1 [Correction orders] allows the Board of Animal Health to issue correction orders for violations by a commercial breeder. Commercial breeders may request that the board reconsider any portion of a correction order.

 Subd. 2 [Administrative penalty orders] after the inspection following a correction order, the Board of Animal Health may issue an administrative penalty order of up to $5,000.

 Subd. 3 [Injunctive relief] allows the Board of Animal Health to bring an injunctive action against a commercial breeder.

 Subd. 4 [Cease and desist] allows the Board of Animal Health to issue a 72-hour cease and desist order for a practice that would result in immediate risk too animal welfare or public health.

 Subd. 5 [Refusal to reissue license; license suspension or revocation] allows the Board of Animal Health to suspend, revoke, or refuse to renew a license for a commercial breeder for:

  1. failure to comply with a correction order;
  2. failure to pay an administrative penalty;
  3. failure to meet licensing and standards of care provisions; or
  4. falsifying information to the board.

Actions by the Board of Animal Health under this subdivision may be appealed to the Office of Administrative Hearings.

 Subd. 6 [Administrative hearing rights] provides for notice by the Board of Animal Health when the board refuses to renew, suspend or revoke a commercial breeder’s license. This subdivision also provides for the appeal of the amount of an administrative penalty order.

 Subd. 7 [Other jurisdictions] allows the Board of Animal Health to use enforcement actions by another jurisdiction as prima facie evidence.

 Subd. 8 [Appeals] clarifies that orders of the Board of Animal Health may be appealed to the Minnesota Court of Appeals.

Section 37 [Biosecurity; commercial breeding facilities] provides that persons enforcing laws  and entering a commercial breeding facility must follow biosecurity protocols, either issued by the Board of Animal Health or a reasonable one maintained by the commercial breeder.

Section 38 [Commercial breeder penalties] provides that violations by a commercial breeder relating to cruelty or torture are subject to those penalties under existing law. Other violations relating to falsifying information, unlicensed breeder advertising animals for sale, and operating without a license are misdemeanors.

Section 39 [Dog and cat breeders licensing account; appropriation] establishes the dog and cat breeders licensing account for the deposit of license fees and penalties, and provides a statutory appropriation from the account to the Board of Animal Health.

Section 40 [Applicability] clarifies that the dog and cat breeder provisions do not apply to other species or to veterinary clinics and hospitals.

Section 41 [2008 appropriation] broadens the use for a 2008 appropriation for shooting sports facilities.

Section 42 [Effective date; 2013 law change] adds an effective date of June 1, 2013 for the 2013 law change related to security deposits for timber permits.

Section 43 [Apiary program report] directs the MDA to report on re-establishing an apiary program.

Section 44 [Invasive Terrestrial Plants and Pests Center] requests the Board of Regents of the University of Minnesota to establish an Invasive Terrestrial Plants and Pests Center and requires the U of M to submit a report on the center by January 15, 2015.

Section 45 [Commercial breeder excellence] directs the Board of Animal Health to develop a commercial breeder excellence program.

Section 46 [Commercial breeder; initial licensing] provides for initial licensing and inspections of commercial breeders.

Section 47 [Research dogs and cats] provides that until July 1, 2015, a higher education research facility that receives public money or a facility providing research in collaboration with a higher education facility that confines dogs or cats for science, education or research purposes  must first offer a dog or cat to a animal rescue organization before euthanizing the animal for other than science, education, or research purposes.

Section 48 [Repealer] repeals an obsolete county recycling goal provision.

 ARTICLE 14:  CLEAN WATER FUND

Section 1 Specifies that appropriations in this article are from the Clean Water Fund and are onetime appropriations.

 Section 2 [Clean Water; Availability of Appropriation] specifies that money appropriated in this article may only be spent on activities that are directly related to and necessary for the specific appropriation and that is may only be spent in accordance with state requirements for Legacy funds.  Also specifies that appropriations in this article are available until June 30, 2016, or to the time period federal funds are available for the same project.

 Section 3 [Pollution Control Agency] appropriates $200,000 for coordinated activities with the state of Wisconsin and the National Park Service for comprehensive water monitoring and phosphorus reduction activities in the St. Croix River.

 Section 4 [Board of Water and Soil Resources] appropriates:

  • $150,000 to implement local water management plans for the North and East Metro Groundwater Management Area (NEMGMA), including infiltration projects and wetland restoration that would contribute to groundwater recharge and surface water enhancement.
  • $250,000 to implement local water management plans for the Bonanza Valley Groundwater Management Area (BVGMA) and Straight River Groundwater Management Area (SRGMA), including infiltration projects and wetland restoration that would contribute to groundwater recharge and surface water enhancement.
  • $100,000 for public workshops and landscape best management practices within the NEMGMA.
  • $900,000 for additional statewide surface and drinking water protection grants.
  • Allows the Board flexibility in using grants or contracts with entities other than local governments for updating the public drainage manual.

 Section 5 [Metropolitan Council] appropriates:

  • $400,000 for a regional water supply and sustainability plan for the NEMGMA area
  • $100,000 to investigate the feasibility of collecting and treating storm water to enhance surface waters in the NEMGMA area.
  • $50,000 to identify opportunities for industrial users to reduce or reuse their water consumption.

 Section 6 [Department of Health] appropriates $300,000 to update wellhead protection areas.

 Section 7 [Repurpose of 2011 Appropriation] allows the Department of Natural Resources to use the remaining balance of a FY2011 appropriation for technical assistance for stream flow and groundwater monitoring, including the installation of monitoring gauges.

 Section 8 [Cancellation of 2009 Appropriation] cancels the remaining balance, estimated to be $750,000, of wastewater reuse grants through the Pollution Control Agency.

 Section 9 [Stream Gauge Data] requires the Department of Natural Resources to post stream and lake level information for existing automated water level stations, including White Bear Lake and Turtle Lake, on the department’s Web site.

 ARTICLE 15: GENERAL EDUCATION

 Section 1 (Reserve revenue) clarifies that the portion of revenue that each district must reserve for students attending an area learning center or alternative learning program is at least 90 and no more than 100 percent of general education revenue received by the district for pupils attending that program.

 Section 2 (Levy recognition) conforms the statutory language governing the levy recognition shift to reflect its full repayment (the levy recognition shift was eliminated through the state budget surplus allocated under section 16A.152).

Section 3 (Enrollment priority; PSEO) for fiscal years 2015 to 2020 only, allows a postsecondary institution to recruit or solicit secondary pupils on other than educational or programmatic grounds only if these pupils reside in a district with more than 700 students in grades 10, 11, and 12.

Allows a student who qualifies for the graduation incentives program and enrolls full time in a dual credit middle or early college program to take remedial classes under the Postsecondary Enrollment Options (PSEO) program and receive developmental college credit.

Section 4 (Financial arrangements)  adjusts the formulas for aid payments to colleges and universities participating in the PSEO program to reflect the higher formula allowance and lower pupil weight of secondary students (the 2013 Legislature lowered the pupil weight for secondary students from 1.3 to 1.2 beginning in fiscal year 2015).

Section 5 (General education revenue; charter schools) clarifies that charter schools do not qualify for location equity revenue (renamed local optional revenue in the recently enacted tax bill) and calculates declining enrollment aid individually for each charter school.

Section 6 (English learner) increases the maximum number of years a student may receive state-funded English learner services from five to six years.  Authorizes a school to continue to provide state-funded services to an English learner who has met the state minimum cutoff score on an English language proficiency assessment if the student’s teachers determine the student needs additional English language services to successfully and fully participate in the general core curriculum in the regular classroom.

Section 7 (Approved recovery program funding)

Subdivision 1 defines “approved recovery program” to mean a course of instruction offered by a recovery school that provides academic services, assists with recovery, and offers care to students recovering from substance abuse or dependency.  Allows the program to be offered in a transitional setting.  Requires the commissioner to approve the program.

Subdivision 2 makes an approved recovery program eligible for an annual grant of up to $125,000 to partially pay for support staff, including alcohol and chemical dependency and licensed school counselors, psychologists, nurses, and social workers.

Makes this section effective for fiscal year 2015.

Section 8 (Learning year pupil units) clarifies the calculation of kindergarten pupils for learning year program revenue.

Section 9 (Basic revenue) increases the basic formula allowance by $25 per pupil unit (0.43 percent) to $5,831 per pupil for fiscal years 2015 and later.

Section 10 (Extended time revenue) clarifies the effective date of the change in the extended time revenue formula to reflect the change in pupil weights beginning in fiscal year 2015.

Section 11 (Small schools revenue) clarifies that small schools revenue applies to districts with more than two high schools if at least one of the district’s high schools qualifies for sparsity revenue.

Section 12 (Equity revenue) clarifies that equity revenue is calculated using adjusted, not marginal cost pupil units.

Section 13 (Regional equity gap) clarifies that regional equity gaps are calculated using adjusted, not marginal cost, pupil units.

Section 14 (District equity gap) clarifies that district equity gaps are calculated using adjusted, not marginal cost, pupil units.

Section 15 (Transition revenue) clarifies the calculation of transition revenue to reflect the roll-out of alternative compensation (Qcomp) revenue from the general education revenue program.

Section 16 (Referendum equalization levy) removes an obsolete reference.

Section 17 (Referendum aid guarantee) corrects the referendum aid guarantee to reflect location equity revenue.

Section 18 (Referendum revenue) changes an erroneous pupil count reference from marginal cost to adjusted pupil units.

Section 19 (Board-approved referendum allowance) clarifies that a school district first calculates its local optional (location equity) revenue and then its board-approved referendum amounts.

Section 20 (Safe schools levy) increases the safe schools levy for intermediate school districts from $10 to $15 per pupil beginning in taxes payable in 2015.  Changes an erroneous pupil count reference from marginal cost to adjusted pupil units.

Section 21 (Definitions; aid payment shift) conforms the statutory language regarding the state aid payment shift to its current level (the expanded aid payment shift was eliminated through the allocation of state budget surplus under Minn. Stat. § 16A.152).

Section 22 (Payment dates and percentages) returns charter school clean-up payments to the same schedule faced by school districts beginning July 1, 2015.

Section 23 (Alternative attendance programs) clarifies a cross reference.

Section 24 (Innovative delivery of education services and sharing of district resources; pilot project)

Subdivision 1 allows the pilot project to continue through June 30, 2018, or for up to a five-year term, whichever comes first.  Allows participants to agree to extend the project beyond these timelines.

Subdivision 2 allows an interested group of school districts to submit a completed application to the commissioner of education by March 1 of any year during the pilot project.  Allows the commissioner to select up to six qualified applicants by April 1 of any year.

Subdivision 3 directs the commissioner to submit an interim report by February 1, 2016, and a final report by February 1, 2019.

Section 25 (Effective date) adjusts the innovative delivery program effective date.

Section 26 (General education aid appropriation) adjusts the general education aid appropriation to reflect the formula allowance increase, accommodates expanded English learner funding, includes forecast adjustments, and corrects the PSEO payment level for colleges and universities.

Section 27 (Nonpublic pupil education aid) increases nonpublic pupil education aid to accommodate the higher basic formula allowance.

Section 28 (Nonpublic pupil transportation) increases the appropriation for nonpublic pupil transportation aid to match the higher formula allowance.

Section 29 (Appropriations; recovery school programs) appropriates $250,000 beginning in fiscal year 2015 for recovery school grants under section 7.

Section 30 (Revisor instruction) instructs the Revisor to change the name of the location equity revenue program to the local optional revenue program consistent with the passage of the 2014 tax bill.

Section 31 (Repealer) repeals the PSEO provision passed in the education policy bill, chapter 272 (see section 3).

 ARTICLE 16: EDUCATION EXCELLENCE

Section 1 (School district or charter school disclosure of violence or inappropriate sexual contact.)  requires a school superintendent or other official in charge of a school to release to a requesting school district private personnel data on a school employee if the employee resigned while a complaint or charge involving allegations of sexual contact with a student is pending if the employee had been previously informed of this policy.

Section 2 (Immediate discharge) (c) directs a school principal or other school administrator, when a teacher is discharged due to a conviction for child abuse or neglect or when a final determination of maltreatment is made, to include the information about the disciplinary action or determination in the teacher’s employment record, consistent with the laws governing public personnel data, and provide the board of teaching and the education department with the necessary and relevant information to enable the board and the department’s licensing division to fulfill their statutory and administrative duties related to issuing, renewing, suspending, or revoking a teacher’s license.  Declares that information received by the board or the department’s licensing division is governed by state licensing data law or other applicable law governing data of the receiving entity.  In addition to requiring a background check, directs school boards and other hiring entities to contact the board and the department to determine whether the teacher’s license has been suspended or revoked, consistent with the discharge and final maltreatment determination identified in this paragraph. To the extent permitted by federal or state data practices law or collective bargaining agreement, requires the responsible authority to disseminate private personnel data on a current or former teacher, employee, or contractor to another school district requesting the information because the subject of the data has applied for employment with the requesting school district.

Makes this section effective immediately.

Section  3 (Grounds for discharge or demotion.)  (c) Directs a school principal or other school administrator, when a teacher is discharged due to a conviction for child abuse or neglect or a final determination of maltreatment is made, to include the information about the disciplinary action or determination in the teacher’s employment record, consistent with the laws governing public personnel data, and provide the board of teaching and the education department with the necessary and relevant information to enable the board and the department’s licensing division to fulfill their statutory and administrative duties related to issuing, renewing, suspending, or revoking a teacher’s license.  Declares that information received by the board or the department’s licensing division is governed by state licensing data law or other applicable law governing data of the receiving entity.  In addition to requiring a background check, directs school boards and other hiring entities to contact the board and the department to determine whether the teacher’s license has been suspended or revoked, consistent with the discharge and final maltreatment determination identified in this paragraph. To the extent permitted by federal or state data practices law or collective bargaining agreement, requires the responsible authority to disseminate private personnel data on a current or former teacher, employee, or contractor to another school district requesting the information because the subject of the data has applied for employment with the requesting school district.

Makes this section effective immediately.

Section 4 (Alternative teacher professional pay system)  modifies the contents of an alternative teacher compensation (Qcomp) program agreement to include measures of student literacy, academic literacy, oral academic language, and achievement of English learners.

Section 5 (Qcomp revenue amount)  clarifies a cross reference in the alternative teacher compensation (Qcomp) program.

Section 6 (Initial achievement and integration revenue) clarifies that a district’s achievement and integration revenue equals the lesser of 100.3 percent of the district’s expenditures or its revenue amount.

Section 7 (Incentive revenue) clarifies that each district’s achievement and integration incentive revenue is based on the lesser of the maximum revenue amount or the district’s actual approved qualifying expenditures.

Section 8 (Tribal contract schools) adjusts the appropriations for tribal contract schools to reflect the higher formula allowance and to incorporate forecast adjustments.

Section 9 (Early childhood literacy programs) increases funding for early childhood literacy programs provided by the Minnesota Reading Corps by $1 million.  Allows up to $1 million in fiscal year 2015 to be used to support priority and focus schools and expand kindergarten programming.

Section 10 (School safety technical assistance center) makes the name for the school safety technical assistance center consistent with the name given it in the Safe and Supportive Schools Act enacted in 2014.

Section 11 (Better aligning Minnesota’s alternative teacher professional pay system and teacher developmental and evaluation program) directs the education commissioner to consult with experts and legislators on better aligning Minnesota’s alternative professional pay system and the statewide teacher development and evaluation program and report to the legislature by February 1, 2015, on effecting and funding an improved alignment.

Makes this section effective immediately.

Section 12 (Career and technical education program inventory)  (a) Directs the education commissioner to consult with experts knowledgeable about secondary and post secondary career and technical education programs to determine the content, status, resources, and the student participation and completion rates of specific career and technical education programs available in Minnesota.

(b) To accomplish paragraph (a), directs the commissioner, in consultation with experts, to also examine the extent secondary and postsecondary programs offer students a progression of coordinated, nonduplicative courses needed to successfully complete a career and technical education program.

(c) Directs the commissioner to report to the legislature by February 1, 2015, on the content, status, and resources of Minnesota’s secondary and postsecondary career and technical education programs and include information about each district’s dedicated equipment, resources, and relationships with postsecondary institutions and the local business community.

Makes this section effective immediately.

Section 13 (Information technology certification partnerships; request for proposal; program requirements) directs the commissioner to issue a request for proposals and contract with at least one provider to provide information technology education for Minnesota students in grades 9-12.  Requires certain program components.

Section 14 (Legislative report on K-12 students’ experience with physical education) directs the commissioner to report to the legislature on K-12 students’ experience with physical education.  Requires the report to include: the number of minutes per day and frequency per week students in grades kindergarten through 8 receive physical education; an identification of high school requirements in terms of time; measures used to assess students’ level of fitness and the uses of the data; the educational preparation of physical education teachers and the amount of time certified physical education teachers provide physical education instruction; the amount of time kindergarten through grade 6 students receive recess; whether high school students are allowed to substitute other activities for required physical education; the number of high school students earning required physical education credits online; whether schools offer before or after school physical activities in each grade, kindergarten through 8 and in high school; and the extent  to which schools coordinate with developmentally adaptive physical education specialists when needed.  Requires the department to pay for the report out of its current operating budget.

Makes this section effective the day following final enactment.

Section 15 (Teacher development and evaluation revenue)  for fiscal year 2015 only, provides teacher development and evaluation revenue for districts, charter schools, and intermediate districts that do not participate in the alternative teacher compensation revenue program. Directs the commissioner to limit the revenue entitlement to no more than $10 million.

Section 16 (Appropriation) appropriates the following amounts:

(1) $100,000 for the commissioner of education to inventory career and technical programs under section 11;

(2) $25,000 to study the alignment of Minnesota’s alternative teacher professional pay system and teacher evaluation program under section 10;

(3) $160,000 for the Northwestern Online College in the High School program;

(4) $300,000 for an information technology certification program;

(5) $25,000 for preparing a report on K12 students’ experience with physical education; and

(6) $9,000,000 for the 90 percent current year share of the $10 million in funding for teacher development and evaluation.

Section 17 (Repealer)  Repeals a provision adopted in the education policy bill (chapter 272) made obsolete by section 4.

ARTICLE 17: SPECIAL EDUCATION

Section 1 (Standards for restrictive procedures)

     Subd. 1. Restrictive procedures plan. Requires school districts to inform the public about the district restrictive procedures plan including how schools will provide staff training on de-escalation techniques.

     Subd. 2. Restrictive procedures. Makes a technical change.

     Subd. 3. Physical holding or seclusion. Changes from March 1, 2014, to February 1, 2015, and later, the date by which stakeholders annually must recommend goals to the education commissioner for reducing the use of restrictive procedures and the commissioner must report to the legislature.  Requires the summary data school districts report to the education department to include information about the use of reasonable force.

     Subd. 6. Behavior supports; reasonable force.  Beginning in the 2014-2015 school year, requires school districts to collect and submit to the education commissioner summary data on district use of reasonable force that is consistent with the definition of physical holding or seclusion of a child with a disability under this section.

Makes this section immediately effective.

Section 2 (Nonresident tuition rate; other costs)  Corrects a cross reference and clarifies that local optional (location equity) revenue is excluded from the definition of general education revenue used to calculate special education tuition rates.

Section 3 (Definitions; special education)  Increases the special education aid paid to the Minnesota State Academies for the Deaf and the Blind to cover the costs of the one-to-one licensed, certified aides required by the child’s individualized education program.  Includes the costs of aides in the definitions of “nonfederal special education expenditures” and “old formula special education expenditures.”

Section 4 (Special education initial aid) Increases the special education aid paid to the Minnesota State Academies for the Deaf and the Blind to cover the costs of the one-to-one licensed, certified child aides required by the child’s individualized education program.

Section 5 (Special education initial aid) Clarifies that special education pupil transportation costs are excluded when calculating each district’s special education initial aid.

Section 6 (Cross subsidy reduction aid) Clarifies the calculation of cross subsidy reduction aid.

Section 7 (Special education aid)  Removes an erroneous reference to “initial” aid.

Section 8 (Definitions; special education excess cost)  Clarifies the reduction to old formula special education expenditures when calculating excess cost aid and clarifies the treatment of location equity revenue in the general education base revenue.

Section 9 (Excess cost aid)  Removes erroneous reference to “initial” aid.

Section 10 (Out-of-state tuition) Clarifies the payment of out-of-state tuition special education aid to resident school districts.

Section 11(Special education paperwork cost savings)  (a) Amends a 2013 general fund appropriation of $1,763,000 to the Department of Education for special education paperwork cost savings to allow the appropriation to be used to customize a statewide online reporting system and effect the paperwork cost savings.

(b) For compliance and accountability purposes for children with disabilities and to increase the opportunities of educators and service providers to focus on teaching children with disabilities, directs the education commissioner to customize a streamlined, user-friendly statewide online system to collect and report required special education data to individuals with a legitimate educational interest who are authorized by law to access the data. 

(c) Directs the commissioner to consult with various experts on integrating, field testing, customizing, and sustaining the online system.  Requires online system outcomes, among other things, to:

•   reduce teachers’ paperwork burden and increase their opportunity to focus on teaching;

•   efficiently and effectively transmit transferring students’ records, including the records of highly mobile and homeless children with disabilities, among others, to the extent authorized by chapter 13 or other applicable state or federal data practices law governing access to and dissemination of educational records, and avoid fragmental service delivery;

•    address language and other barriers and disparities preventing parents from understanding and communicating information about the needs of their children with disabilities;

•    help improve the interface among the online systems serving children with disabilities.

 (d) Directs the education commissioner to use federal OSEP model forms to integrate and customize a state-sponsored universal special education online case management system, consistent with the requirements of state law and this subdivision. Directs the commissioner to use an RFP process to contract for needed technology and software.  Requires the online system to be made available to school districts without charge beginning in the 2015-2016 school year. Allows school districts to use the online system or contract with an outside vendor for the 2015-2016 through 2017-2018 school years and requires school districts to use this system beginning in the 2018-2019 school year for compliance reporting.

(e) Retains data classification under state and federal law. Limits individuals’ access to the online data. Requires a data audit trail to be established that the responsible authority may access to audit users’ activity and for security safeguards. Requires the responsible authority to provide the student or the student’s parent with written notice of data practices rights and responsibilities and a reasonable opportunity to refuse to consent to have the student data included in the system. Prohibits a district from entering data on a student into the system if the student or parent refuses to consent.

(f) Directs the commissioner to establish a public Internet web interface to provide information to educators, parents, and the public about special education reports, respond to special education queries, and use the information garnered from the interface to streamline and revise special education reporting and further adapt/customize the online system.  Requires the Web interface to describe the rights and responsibilities of students and parents whose data are included in the online reporting system, and include information on data practices rights and a form students or parents may use to refuse to consent to have a student’s data included in the system. Prohibits the web interface from providing access to the educational records of any individual child.

(g) Directs the commissioner to report annually to the legislature by February 1 on the status, changes, and sustainability of the online system.

Makes this section effective immediately.

Section 12(Rulemaking authority; special education task force recommendations) Directs the education commissioner to use the expedited rulemaking process to make the specific rule changes recommended by the special education case load and rule alignment task force in its 2014 report to the legislature.  Requires a public hearing if 100 people request it.  

Makes this section effective immediately.

Section 13 (Appropriation)  Appropriates $250,000 to the commissioner of education to assist school districts in meeting the needs of children who have experienced a high use of prone restraints.

 ARTICLE 18: FACILITIES

Section 1 (Joint powers cooperative facility) 

     Subd. 1.  Schools may be jointly operated.  Authorizes two or more school districts to jointly operate a secondary facility.

     Subd. 2.   Expanded program offerings.  Qualifies a jointly operated secondary program for cooperation funding if the program demonstrates to the commissioner that the joint powers secondary facility offers broader curriculum and enhanced learning opportunities to students attending the program.

     Subd. 3.  Transfer of employees.  Specifies the way tenure, accrued sick leave, and severance are handled if an employee switches school districts under this section.

     Subd. 4.  Revenue.  Qualifies an approved program for cooperation revenue and for a cooperative facilities grant.

     Subd. 5.  Duty to maintain elementary and secondary school.  Specifically exempts the joint powers districts from an obligation to offer the full range of grades (1-12) in each member district and instead allows the secondary program to be offered in another district.

     Subd. 6.  Estimated market value limit exclusion.  Exempts a school district participating in the program from the estimated market value net debt limit.

     Subd. 7.  Allocation of levy authority for joint facility.  Authorizes the districts participating in the joint secondary facility program to allocate program costs to each member district according to the joint powers agreement and allows each member district to include those costs in its district levy.

     Subd. 8.  Effect of consolidation.  Authorizes member districts of the joint powers agreement to continue to keep their levies separate even if the districts consolidate into a single district.

     Subd. 9.  Bonds.  Authorizes member districts of the joint powers agreement to issue bonds jointly or individually for a new building project.  Requires the bonds to be approved in an election.

     Subd. 10.  Election.  Requires an election approving a new facility under this section.  Allows the election to be held at the same time as the bond election.

Section 2 (Duty to maintain elementary and secondary schools) Exempts a school district participating in a joint secondary program from the requirement to offer all grades within each district.

Section 3 (Debt service definitions)  Calculates a school district’s net debt service revenue as the amount before the application of taconite revenue from the Iron Range school consolidation and cooperatively operated school account and adds a cross reference to the natural disaster debt service equalization aid program.

Section 4 (Equalized debt service levy)  Increase the debt service equalization aid amount by raising the equalization factors for fiscal years 2016 and later to keep total levies under this act unchanged from current law.

Section 5 (Natural disaster debt service equalization)

     Subd. 1.  Definitions. Defines “eligible natural disaster debt service revenue” as the amount necessary to raise between 105 and 106 percent of the annual repayment of debt to repair facilities that (1) have been impacted by a natural disaster occurring since January 1, 2005; (2) were damaged by more than $500,000; and (3) have repair and replacement costs not covered by FEMA or insurance.  Defines the adjusted net tax capacity (ANTC) equalizing factor as the statewide ratio of ANTC to pupil units.  Defines the ANTC tax base in a manner that includes properties otherwise excluded by Job Z program.

     Subd. 2.  Notification.  Requires a district qualifying for natural disaster debt service revenue to annually notify the commissioner of the qualifying bonds outstanding under this program.

     Subd. 3.  Natural disaster debt service equalization revenue.  Sets the natural disaster debt service equalization revenue at the amount exceeding the lesser of 10 percent of the district’s ANTC or the amount of the district’s outstanding debt service not attributable to a natural disaster project.

     Subd. 4.  Natural disaster debt service equalization levy.  Sets the levy share of the natural disaster debt service revenue as the lesser of one or the ratio of the district’s ANTC per pupil to three times the state average ANTC per pupil (currently the statewide average ANTC per pupil is about $7,000).

     Subd. 5.  Natural disaster debt service equalization aid.  Sets natural disaster debt service aid equal to the difference between the revenue and the levy.

     Subd. 6.  Natural disaster debt service equalization aid payment schedule.  Requires natural disaster debt service equalization aid to be paid in the same manner as other debt service equalization aid.

Makes this section effective for taxes payable in 2016 and revenue for fiscal year 2017 and later.

Section 6 (Debt service appropriation) Includes the natural disaster debt service equalization aid in the open and standing appropriation for debt service equalization aid.

Makes this section effective for revenue in fiscal year 2017 and later.

Section 7 (Use of health and safety revenue) Includes costs needed to bring school district electrical generators into compliance with federal pollution rules in a district’s health and safety program. Requires a district that includes electrical generator improvements in its health and safety program for fiscal years 2014 to 2017 to reduce other approved projects by the same amount.

Makes this section effective immediately.

Section 8 (Review and comment)  Increases the minimum qualifying amount needed to trigger a review and comment from $1.4 million to $2 million.  Removes the need for a review and comment on most maintenance projects.

Section 9 (Information required)  Simplifies and clarifies the types of information that a district must submit to the commissioner for the review and comment.

Section 10 (Application; HVAC commissioning)  Makes HVAC  commissioning requirements applicable to any HVAC project with a total cost exceeding $1.4 million.

Makes this section effective July 1, 2014.

Section 11 (Certification; HVAC commissioning)  Clarifies a cross reference.

Makes this section effective July 1, 2014.

Section 12 (Declining enrollment revenue)  Exempts students attending the Crosswinds school from the declining enrollment revenue formula for fiscal years 2015, 2016, and 2017.

Makes this section effective July 1, 2014, only if a 2014 enactment conveys the Crosswinds school to the Perpich Center for Arts Education.

Section 13 (To lease building or land) Increases lease levy authority for districts and intermediate districts for taxes payable in 2015 and later.

Makes this section effective for taxes payable in 2015 and later.

Section 14 (Taconite payment and other reductions)  Exempts new taconite payments from the Iron Range school consolidation and cooperatively operated school account to school districts from the taconite levy reduction limits.

Section 15 (Abatements) Includes the natural disaster debt service equalization aid in the aid programs available for abatement aid.

Makes this section effective for revenue for fiscal year 2017 and later.

Section 16 (Excess tax increment)  Includes the natural disaster debt service equalization aid in the list of aid programs adjusted when excess tax increment payments are received.

Makes this section effective for revenue for fiscal year 2017 and later.

Section 17 (Powers and duties of the Perpich Board)  Broadens the charge to the Perpich board to include operating other schools specifically authorized by state law if a law conveying the Crosswinds school to the Perpich Center is passed in 2014.

Makes this section effective the day after a 2014 enactment conveys the Crosswinds School to the Perpich Center for Arts Education.

Section 18 (Interdistrict voluntary integration magnet program)  Authorizes the board of the Perpich Center for Arts Education to operate a voluntary integration magnet program if a law conveying the Crosswinds school to the Perpich Center is passed in 2014.

Makes this section effective the day after a 2014 enactment conveys the Crosswinds School to the Perpich Center for Arts Education.

Section 19 (Crosswinds Integration Magnet School)

     Subd. 1.  Definitions.  Defines the terms “board” and “Crosswinds school.”

     Subd. 2.  Board to operate Crosswinds school.  Authorizes the board of the Perpich Center to operate the Crosswinds school program.

     Subd. 3.  General education funding.  Funds the Crosswinds school as if it were a district-run school for purposes of determining general education revenue.

     Subd. 4.  Special education funding.  Requires special education funding to be provided to the Crosswinds school as if it were operated by a school district.

     Subd. 5.  Pupil transportation.  Authorizes the Perpich Center to provide transportation services for the students attending the Crosswinds school.  Reimburses transportation costs through the interdistrict desegregation transportation aid formula.

     Subd. 6.  Achievement and integration aid.  Qualifies the Crosswinds school for achievement and integration aid, as if it were a school district.

     Subd. 7.  Other aids, grants, revenue.  Makes the Crosswinds school eligible for other aid, grants and revenue as if it were a school district.

     Subd. 8.  Year-round programming.  Allows the Crosswinds school to continue to operate on a year-round calendar (the school is on a calendar called the 45/15 calendar—45 days of instruction, 15 days off from school, with larger breaks in July and December).

     Subd. 9.  Data requirements.  Requires the Crosswinds school to follow the budget and accounting procedures required for school districts.  Requires the Crosswinds school to report data in the form and manner determined by the commissioner of education.

Makes this section effective July 1, 2014, only if a 2014 enactment conveys the Crosswinds school to the Perpich Center for Arts Education.

Section 20 (Iron Range school consolidation and cooperatively operated school account)  Beginning in fiscal year 2019, increases payments from the Iron Range school consolidation and cooperatively operated account to offset any reduction in debt service equalization aid normally due to districts.

Makes this section effective for production year 2014 and later.

Section 21 (Harambee community school transition)

     Subd. 1.  Student enrollment.  Allows any student currently enrolled at the Harambee school to continue attending that school in subsequent years.  Allows other students to apply to attend the Harambee school according to the open enrollment process.

     Subd. 2.  Compensatory revenue; literacy aid; and Qcomp revenue.  Calculates schools’ compensatory revenue, literacy aid, and Qcomp revenue on the enrollment count for the school site for the previous year; the proposed transfer of the facility creates a new school unit that will not have enrollment counts for the previous year.

     Subd. 3.  Year-round programming.  Allows the Harambee school to continue to operate on a year-round calendar (the school is on a calendar called the 45/15 calendar—45 days of instruction, 15 days off from school, with larger breaks in July and December).

     Subd. 4.  Pupil transportation.  Authorizes the Roseville school board to continue to provide transportation services for the students attending the Harambee school that are reimbursed under the interdistrict desegregation transportation aid formula.

Makes this section effective the day after a 2014 enactment conveys the Harambee community school to the Roseville school district.

Section 22 (Transition requirements; Crosswinds School)

     Subd. 1.  Student enrollment.  Allows any student currently enrolled at the Crosswinds school to continue attending that school in subsequent years.  Allows other students to apply to attend the Crosswinds school according to the open enrollment process.

     Subd. 2.  Compensatory revenue; literacy aid; and Qcomp revenue.  Calculates schools’ compensatory revenue, literacy aid, and Qcomp revenue on the enrollment count for the school site for the previous year; the proposed transfer of the facility creates a new school unit that will not have an enrollment count for the previous year.

     Subd. 3.  Title 1 Funding.  Requires the Crosswinds school to receive Title 1 funding in the same manner as it did when the program was operated by the EMID joint powers board.

Makes this section effective the day after a 2014 enactment conveys the Crosswinds school to the Perpich Center for Arts Education.

Section 23 (Lease levy; satellite transportation hub for Rosemount-Apple Valley-Eagan school district)  Allows the Rosemount-Apple Valley-Eagan school district to use lease levy authority to construct a transportation hub if the project would result in significant financial savings.

Makes this section effective for taxes payable in 2016 and later.

Section 24 (Repealer) Repeals the requirement that a school district consult with the commissioner on building projects with a total project cots less than $500,000 and removes an obsolete subdivision.

 ARTICLE 19: NUTRITION

Section 1 (School lunch aid computation)  Increases by 40 cents beginning in fiscal year 2015, the state payment for each school lunch served to a student eligible for a reduced-price meal.

Makes this section effective for revenue for fiscal year 2015 and later.

Section 2 (No fees)  Requires each participating school lunch provider (school districts, nonpublic schools, and a few other organizations) to provide free school lunches to each student eligible for a free or reduced price meal.  Requires providers to remind students about unpaid meals balances without demeaning or stigmatizing the students.

Makes this section effective for revenue for fiscal year 2015 and later.

Section 3 (Program reimbursement) Increases the state reimbursement for school breakfasts served to kindergarten pupils from 55 cents to $1.30 for each fully paid breakfast served to a kindergarten student.

Section 4 (No fees) Requires a school that receives breakfast aid to make breakfast available without charge to kindergarten pupils.

Section 5 (School lunch appropriation) Increases the fiscal year 2015 school lunch appropriation by $3.5 million to make reduced price meals free to eligible students and adjusts the appropriation base to match the February 2014 forecast.

Section 6 (School breakfast)  Increases the school breakfast appropriation to fund the full cost of breakfast for fully paid kindergarten pupils.

ARTICLE 20: EARLY EDUCATION, COMMUNITY EDUCATION, SELF-SUFFICIENCY AND LIFELONG LEARNING

Section 1 (Program requirements)  Requires Early Childhood Family Education (ECFE) programs to provide certain additional programming targeted at families and parents identified in a community needs assessment.

Section 2 (Home visiting program)  Requires home visiting programs to provide certain additional programming and licensed or certified educators or professionals with an equivalent credential deliver the programs.

Section 3 (District advisory councils)  Requires school district ECFE advisory councils to represent community demographics.  To the extent possible, requires the district to ensure that the council includes representation of families who are racially, culturally, linguistically, and economically diverse.

Section 4 (Program data submission requirements) Requires annual program data collected by districts receiving ECFE revenue to include data that demonstrates the program response to the community needs assessment.

Section 5 (Supervision) Requires a licensed early childhood teacher or a licensed parent educator to supervise an ECFE program.

Section 6 (Parenting education transition program)  Allows ECFE programs in districts with a prekindergarten-grade three initiative to provide parenting education transition programming to facilitate continued parent engagement in children’s learning and development.  Encourages ECFE programs to develop partnerships to provide a parenting education liaison to other early learning program providers.

Section 7 (Revenue) Increases the per-pupil formula allowance for the early childhood family education program by $11.34 and indexes the allowance to future changes in the formula allowance.

Section 8 (Early childhood family education levy)  Strikes obsolete language.

Section 9 (Amount of aid; school readiness)  Increases the annual aid entitlement for the school readiness program from $10.095 million to $12.095 million per year.

Section 10 (Administration)  (b) Beginning July 1, 2015, authorizes the commissioner of education to establish a target for the average early learning scholarship based on data from the biennial child care market rate survey.

(c) Allows a qualifying program with children on a waiting list to enroll scholarship recipients in a manner similar to other program participants and to apply for direct payment of state aid.

(f) Allows a qualifying program to apply to the commissioner for direct state aid payments. Directs the commissioner to make program payments according to the metered payment system or another schedule established by the commissioner.

Section 11 (Early childhood program eligibility)  Allows a Minnesota early learning foundation scholarship program pilot site to accept an early learning scholarship.

Section 12 (Report required)  Requires the commissioner to report on the evaluation of the early learning scholarship program by January 15, 2016.

Section 13 (Adult basic education supplemental service grants)  Increases the maximum amount of a supplement services grant to any single organization from 20 to 40 percent of the total amount of supplemental service aid.

Section 14 (State total adult basic education aid)  Increases the adult basic education program growth factor from 1.025 to 1.03 for fiscal years 2015 and later.  Increases the portion of adult basic education aid available for supplemental service grants from two to three percent of the total program aid.

Section 15 (Program revenue)  Conforms an age limit used to calculate aid based on the number of adults without diplomas to match federal census data characteristics.

Section 16 (School readiness; appropriation)  Increases the school readiness appropriation by about $2 million per year beginning in fiscal year 2015.

Section 17 (Early childhood family education aid; appropriation)  Increases the appropriation for ECFE aid by $4.6 million beginning in fiscal year 2015.

Section 18 (Early learning scholarships)  Increases the appropriation for early learning scholarships by $4.6 million beginning in fiscal year 2015.

Section 19 (Parent-child home program)  Increases the grant for the parent-child home program by $100,000 for fiscal year 2015 only.

Section 20 (Adult basic education aid; appropriation)  Increases the appropriation for adult basic education aid by $225,000 for fiscal year 2015.

Section 21 (Appropriations; Northside Achievement Zone and St Paul Promise Neighborhood)  Appropriates $350,000 each to the Northside Achievement Zone and the St. Paul Promise Neighborhood, for fiscal year 2015 and $200,000 for fiscal year 2016 and later.

 ARTICLE 21: STATE AGENCIES

Section 1 (School districts; group health insurance coverage)  Exempts a school district that has adopted a motion to approve a self-insured health care plan on or before May 14, 2014, from the requirement to request a proposal from PEIP.

Section 2 (Department of Education)  Increases the Department of Education budget to pay for the grants to the works museum ($75,000) and the headwaters science center ($50,000), to supplement the Board of Teacher budget ($100,000), to supplement the budget of the Board of Administrators ($58,000), and for expected rulemaking costs ($40,000).

Section 3 (Minnesota State Academies; appropriation)  Increases the fiscal year 2015 appropriation for the Minnesota State Academies by $300,000.

Section 4 (Appropriation; Responses to Health Insurance Transparency Act bid requests) Appropriates $294,000 to the commissioner of management and budget to comply with the proposed provisions of Minnesota Statutes, section 43A.316 for PEIP insurance bids.

 ARTICLE 22: FORECAST ADJUSTMENTS

Each year, the legislature adjusts the actual amount appropriated for each K12 education program to match the forecast level of spending for that program.  This article reflects those changes in each appropriation.

   ARTICLE 23:  HEALTH DEPARTMENT

Section 1 (103I.205, subd. 4) permits a licensed plumber to repair submersible pumps and water pipes associated with well water systems if the location of the repairs is in an area where there is no licensed or registered well contractor within 25 miles.

Section 2 (144.1501, subdivision 1) redefines a designated rural area for purposes of the health professional loan forgiveness program.

Section 3 (144.551, subdivision 1) paragraph (b) adds a project for a 16-bed psychiatric hospital in the city of Thief River Falls, subject to the commissioner of health finding the project is in the public interest after the public interest review is conducted.  Makes this section is effective the day following final enactment.

Section 4 (144.9513) requires the commissioner to make grants to nonprofit organizations, community health boards, and local boards of health to support the implementation of healthy housing programs that support the health of residents.

Section 5 (144A.484) makes modifications to the integrated licensure for home and community-based services.

Subdivision 1 requires the Department of Health (MDH) to enforce the home and community-based services (HCBS) standards in Chapter 245D for providers also licensed by MDH as home-care providers, from January 1, 2014, to June 30, 2015; allows home-care providers to apply for an HCBS-designation in lieu of licensure under Chapter 245D, beginning July 1, 2015.

Subdivision 2 outlines the HCBS-designation application process.

Subdivision 3 requires HCBS-designation holders and applicants pay a fee.

Subdivision 4 lists the provisions in Chapter 245D applicable to HCBS-designation holders.

Subdivision 5 requires MDH to monitor HCBS-designation holders’ compliance with the applicable provisions in Chapter 245D; lists the enforcement options available to MDH for noncompliance.

Subdivision 6 specifies that home-care provider license denial also denies an applicant a HCBS-designation; and allows for a reconsideration of denial.

Subdivision 7 requires MDH and the Department of Human Services (DHS) to enter into any necessary agreements to implement the integrated licensure system.

Subdivision 8 sets the initial HCBS-designation fee at $155; creates a sliding scale renewal fee schedule based on annual revenue from HCBS, from $40 for $25,000 or under in HCBS revenue, to $320 for revenue greater than $1.5 million; requires fees and penalties to be credited to the State Government Special Revenue Fund.

Section 6 (145.4716, subdivision 2) specifies that the director of child sex trafficking prevention is responsible for managing the requests for proposals for comprehensive services, including trauma-informed, culturally specific services.

Section 7 (145.929) requires the commissioner to award health care grants to dental providers and community mental health programs that provide free or reduced-cost care to low-income patients under the age of 21 with family incomes below 275 percent of the federal poverty guidelines, and who do not have health insurance coverage.  This section also creates an emergency medical assistance outlier grant program for hospitals to assist in defraying underpayments associated with the emergency medical assistance program.

Section 8 (256B.04, subdivision 21) requires home-care providers licensed by MDH, with a home and community-based services designation, to designate a compliance officer.

Section 9 establishes a Legislative Health Care Workforce Commission.

Subdivision 1 provides that the purpose of the Legislative Health Care Workforce Commission is to study and provide recommendations to the legislature on how to strengthen the healthcare workforce.

Subdivision 2 requires five members of the senate and five members of the house to be on the commission with each body’s membership having three members of the majority party and two members of the minority party.

Subdivision 3 requires the commission to provide a report to the legislature by December 31, 2014, and states report requirements.

Subdivision 4 requires the commissioners of health, human services, commerce, and other state agencies to provide assistance and technical support to the commission at the commission’s request.

Subdivision 5 states the commission expires January 1, 2015.

Section 10 requires the commissioner to develop an implementation plan for stratifying quality measures based on disability, race, ethnicity, language, and other sociodemographic factors that are correlated with health disparities and impact performance or quality measures, and submit the plan to the legislature by January 15, 2015.  This section also requires the commissioner to assess the risk adjustment methodology under section 62U.02, subdivision 3, for potential harm and unintended consequences for patient populations who experience health disparities and submit the assessment to the legislature by January 15, 2016.

Section 11 requires the Commissioner of Health to gather data on the provision of chronic pain treatment procedures by physicians, doctors of osteopathy, and certified registered nurse anesthetists, in terms of types of procedures performed within the last 36 months, and the types of facilities and locations of the facilities where the procedures were performed, and submit a report to the legislature by January 15, 2015, on the findings.  The commissioner may use the encounter data submitted under section 62U.04 to carry out this requirement.

Section 12 requires the Commissioner of Health to evaluate and determine how to streamline the requirements related to the clients’ bill of rights in sections 144A.44, 144A.441, and 256D.04, for applicable providers while assuring and maintaining the health and safety of clients, and report to the legislature any recommended legislative changes by February 15, 2015.

ARTICLE 24:  HEALTH CARE

 Section 1 (16A.724, subdivision 3) clarifies that federal funds received for MinnesotaCare as the basic health plan is appropriated to the Commissioner of Human Services to be used only for the MinnesotaCare program.

Section 2 (256.01, subdivision 38) authorizes the commissioner to enter into a contract with a national organization that will enable the department to access a national registry of insurance coverage and information.

Sections 3 (256.9685, subdivision 1) and 4 (256.9685, subdivision 1a) remove cross-references to the discontinued General Assistance Medical Care (GAMC) program.

Section 5 (256.9686, subdivision 2) changes the definition of a hospital’s “base year” to include fiscal year “or years;” removes a reference to GAMC.

Section 6 (256.969, subdivision 1) removes language prohibiting automatic annual inflation adjustments for Medical Assistance (MA) hospital payment rates; removes a reference to GAMC.

Section 7 (256.969, subdivision 2) requires DHS to use the all-patient refined diagnosis-related groups (APR-DRGs) diagnostic classification system; allows DHS to supplement APR-DRG data with national averages; removes language requiring DHS on January 1, 2013, to recategorize diagnostic classifications, values, and case mix indices in effect prior to January 1, 2013.

Section 8 (256.969, subdivision 2b) establishes the new inpatient hospital payments system.

Paragraph (a) specifies that for discharges occurring on or after November 1, 2014, hospital inpatient services for hospitals located in Minnesota shall be for critical access hospitals, paid using a cost-based methodology, and for all other hospitals, except for long-term care hospitals and rehabilitation hospitals, paid on a diagnostic-related group (DRG) methodology.

Paragraph (b) specifies that for the period beginning January 1, 2011, to October 30, 2014, rates shall not be rebased except for long-term hospitals.

Paragraph (c) effective for discharges occurring on and after November 1, 2014, payment rates for hospital inpatient services shall be rebased, incorporating cost and payment methodologies in a manner similar to Medicare, with the base year being calendar year 2012. The rebasing must be budget neutral, ensuring that the total aggregate payments under the rebased system are equal to the total aggregate payments made for the same number and type of services in the base year. Requires separate budget neutrality calculations for payments made to critical access hospitals and payments made to hospitals under the DRG system.

Paragraph (d) for discharges occurring November 1, 2014, through June 30, 2016, the projected rates shall be adjusted so that there is no greater than a five percent increase or decrease from the base year payments for any hospital.

Paragraph (e) authorizes the commissioner to make additional adjustments to the rebased rates for discharges occurring November 1, 2014, through June 30, 2016, to and consider the impact of changes on certain services, providers, and admissions when evaluating whether additional adjustments should be made.

Paragraph (f) requires the rebased rates to incorporate the following:

(1) for hospitals paid under DRG methodology the base year payment rate per admission is standardized by the applicable Medicare wage index and adjusted by the hospital's disproportionate population adjustment;

(2) for critical access hospitals interim per diem payment rate on the ratio of cost and charges reported on the base year Medicare cost report or reports and applied to medical assistance utilization data.

(3) the cost and charge data used must only reflect inpatient services covered by medical assistance; and

(4) for discharges occurring on or after the rate year beginning January 1, 2011, to December 31, 2012, the payment rate per discharge must be based on the cost-finding methods and allowable costs of the Medicare program in effect during the base year or years.

Paragraph (g) requires the commissioner to validate the rates effective November 1, 2014, by applying the rebased rates to hospital claims paid in calendar year 2013 to determine whether total aggregate payments for the same number and types of services are equal to the aggregate payments made during calendar year 2014.

Paragraph (h) requires the commissioner to rebase payment rates under this section every two years effective for discharges occurring on or after July 1, 2017, to reflect the changes in hospital costs between the existing base year and the next base year.  The commissioner shall determine the base year for each rebasing period considering the most recent year for which filed Medicare cost reports are available

Section 9 (256.969, subdivision 2d) authorizes the commissioner to implement an interim payment process to pay hospitals for discharges occurring on or after November 1, 2014, and no later than June 30, 2015. These payments may be used to pay hospitals if the new payment system and rebasing is not complete by November 1, 2014. Claims paid under at the interim payment rates shall be reprocessed and paid at the rates established under the new system upon implementation of the new system.

Section 10 (256.969, subdivision 2e) requires the commissioner to report to the legislature on March 1, 2015, and March 1, 2016, on the financial impacts by hospitals and policy ramifications resulting from payment methodology changes implemented after October 31, 2014, and before December 15, 2015.

Section 11 (256.969, subdivision 3a) changes the timeline that DHS must notify hospitals of payment rates, from each December 1 of the preceding year to 30 days prior to implementation; removes language relating to GAMC; removes several paragraphs relating to total payment reductions in prior years.

Section 12 (256.969, subdivision 3b) replaces references to the old ICD-9-CM codes (International Statistical Classification of Diseases) with the new ICD-10-CM codes; and specifies that the list of hospital-acquired conditions not covered by MA are defined by the Centers for Medicare and Medicaid.

Section 13 (256.969, subdivision 3c) eliminates the current ten percent rateable reduction to hospitals for inpatient services effective November 1, 2014, and exempts from the rate reduction a hospital located in Hennepin County with the licensed capacity of 1,700 beds for admissions of patients who are under 18 years of age, effective September 1, 2011, through August 31, 2013.

Section 14 (256.969, subdivision 4b) requires critical access and disproportionate share hospitals to file MA cost reports within six months of the hospitals’ fiscal year, and requires the commissioner to suspend payments if the reports are not filed.

Section 15 (256.969, subdivision 6a) makes a technical cross-reference change.

Section 16 (256.969, subdivision 8)  requires the commissioner to establish payment rates for acute transfers occurring on or after November 1, 2014, that are based on Medicare methodologies.

Section 17 (256.968, subdivision 8a) strikes the language that specifies a specific payment rate for neonatal admissions, effective November 1, 2014.

Section 18 (256.969, subdivision 8c) requires hospital resident payments be based on the APR-DRG for the first 180 days, then based on the statewide average cost-to-charge ratio multiplied by the usual and customary charges.

Section 19 (256.969, subdivision 9) removes references to GAMC and outdated language related to disproportionate share hospital payments; and excludes critical access hospitals from disproportionate share hospital payments.

Section 20 (256.969, subdivision 10) requires hospitals to exclude certified registered nurse anesthetist costs from the operating payment rate.

Section 21 (256.969, subdivision 12) specifies that for rehabilitation hospitals the commissioner shall replicate, to the extent possible, the existing payment rate methodology under the new diagnostic classification system, for discharges occurring on or after November 1, 2014.

Section 22 (256.969, subdivision 14) makes technical cross-reference changes due to subdivisions being repealed, and specifies that for acute transfers occurring on or after November 1, 2014, the commissioner shall establish payment rates that are based on Medicare methodologies.

Section 23 (256.969, subdivision 17) makes a conforming language change; and prevents values of diagnostic categories from being redetermined until required by statute (instead of by rule).

Section 24 (256.969, subdivision 18) makes a conforming change by removing a reference to operating and property rates, and referring to inpatient hospital rates for out-of-state hospitals outside local trade areas.

Section 25 (256.969, subdivision 25) specifies that long-term hospitals shall be paid a per diem rate established by the commissioner.

Section 26 (256.969, subdivision 30) specifies the ADR-DRG categories used for payments for births.

Section 27 (256B.04, subdivision 24) before submitting a Medicaid waiver request or a state plan amendment to the federal government for approval, the Commissioner of Human Services is required to publish the text of the waiver request or the state plan amendment on the agency’s Web site, and provide a 30-day public comment period.  This section also requires the commissioner to publish on the agency’s Web site notice of any decision related to the state’s request within 30 days of the decision.  The notice must also describe any modifications to the request that have been agreed to by the commissioner as a condition of receiving federal approval.

Section 28 (256B.0625, subd. 17) paragraph (a) adds a definition for “nonemergency medical transportation service.”

Paragraph (b) specifies that transportation services covered by MA include those provided by nonemergency medical transportation providers, taxicabs, public transit and not-for-hire vehicles, including volunteers.

Paragraph (c) requires nonemergency medical transportation providers to follow operating standards for special transportation services, and exempts public transit, volunteers, and not-for-hire vehicles from these operating standards.

Paragraph (d) outlines the requirements administrative agencies of nonemergency medical transportation services must follow, including: adhering to policies developed by the Department of Human Services (DHS), in consultation with the Nonemergency Medical Transportation Advisory Committee, reimbursing nonemergency medical transportation providers, providing DHS with data, and utilizing a Web-based assessment tool.

Paragraph (e) requires clients, until the single administrative structure and delivery system is implemented, to obtain a level of service certificate from the Commissioner of Human Services or an approved entity that does not dispatch rides for certain types of transportation modes.

Paragraph (f) allows DHS to use an order by a medical or mental health professional to certify a person requires nonemergency medical transportation services; removes a requirement for nonemergency medical transportation providers to obtain documentation from the health provider on trip information; requires the nonemergency medical transportation providers to maintain trip logs; and requires clients requesting direct reimbursement to sign a trip log.

Paragraph (g) describes the new covered modes of nonemergency medical transportation.

Paragraph (h) requires administrative agencies to use the level of service process established by DHS, in consultation with the Nonemergency Medical Transportation Advisory Committee, to determine transportation modes, and allows clients to receive a onetime service upgrade if the mode determined under this process is not available. The new modes, which may not be implemented without a new rate structure, are client reimbursement, volunteer transport, unassisted transport, assisted transport, lift-equipped/ramp transport, protected transport, and stretcher transport.

Paragraph (i) provides that the local agency shall be the single administrative agency by June 1, 2016, and shall administer and reimburse for modes according to new rate structures, once adopted.

Paragraph (j) requires DHS, in consultation with the Nonemergency Medical Transportation Advisory Committee, to verify that the modes are appropriate and clients are being transported to approved medical appointments, and investigate all complaints and appeals.

Paragraph (k) requires administrative agencies to reimburse for nonemergency medical transportation services if appropriate and adhere to sanctions and monetary recovery action requirements and other requirements in statute and rule.

Section 29 (256B.0625, subdivision 18b) provides that, except for establishing a level of service process,  DHS cannot use brokers for bus or taxicab nonemergency medical transportation services.

Section 30 (256B.0625, subdivision 18c) modifies the meeting requirements for the Nonemergency Medical Transportation Advisory Committee.

Section 31 (256B.0625, subdivision 18d) modifies the required voting members of the Nonemergency Medical Transportation Advisory Committee.

Section 32 (256B.0625, subdivision 18e) requires DHS to implement a single administrative structure for nonemergency medical transportation once the assessment tool is available or July 1, 2016, whichever is later, and outlines the assessment tool’s requirements, including that it be Web-based and developed in coordination with the Department of Transportation (MnDOT).

Section 33 (256B.0625, subdivision 18g) removes language requiring DHS, in consultation with the Nonemergency Medical Transportation Advisory Committee, to establish performance measures; requires DHS to collect, audit, and analyze data beginning in 2015.

Section 34 (256B.0625, subdivision 18h) adds a subdivision specifying the subdivisions that do not apply to managed care and county-based purchasing plans.

Section 35 (256B.0625, subdivision 30) establishes a payment schedule for clinic services provided by federally-qualified health centers and rural health clinics.

Paragraph (h) requires for services provided on or after January 1, 2015, claims for payment for clinic services provided by federally qualified health centers and rural health clinics shall be paid by the commissioner.  The commissioner shall determine the most feasible method for paying claims between the clinics submitting claims directly to the commissioner for payment and the commissioner providing the managed care and county-based purchasing plans with claims information; or the clinics submitting the claims to the managed care and county-based purchasing plan and the plans submitting the claims to the commissioner for payment to the clinics.

Paragraph (i) for clinic services provided prior to January 1, 2015, requires the commissioner to calculate and pay monthly the proposed managed care supplemental payment to clinics. Clinics are required to conduct a timely review of the calculation data and any issues that arise must be reported to the commissioner by January 1, 2017. No supplemental payment for managed care claims for services provided prior to January 1, 2015, shall be made after June 30, 2017, and if issues cannot be resolved, the parties must submit the dispute to the arbitration process under section 14.57.

Section 36 (256B.0751, subdivision 10) requires the Commissioners of Health and Human Services to establish a health care homes advisory committee to advise the commissioners on the ongoing statewide implementation of the health care home program.

Section 37 (256B.199) removes outdated language and references to GAMC.

Section 38 (256B.35, subdivision 1) modifies the personal needs allowance that is paid to individuals who are receiving medical assistance and living in a skilled nursing home, intermediate care facility, or medical institution.  This section requires that the personal needs allowance be increased to include income garnished for spousal maintenance, and any administrative fees garnished for collection efforts. 

Section 39 (256B.69, subdivision 34) clarifies the supplemental recovery program for third-party liabilities identified through coordination of benefits not recovered by managed care or county-base purchasing plans for state public health care programs.  Requires the commissioner to timely share third-party liability date with managed care plans and county-based purchasing plans.

Section 40 (256B.766) decreases the reimbursement rate payments for medical supplies and durable medical equipment, prosthetics, and orthotics provided on or after July 1, 2014, through June 30, 2015, by .33 percent.

Section 41 (256B.67) extends the payment rate adjustments for durable medical equipment, prosthetics, orthotics, or supplies rates subject to rates established under the Medicare’s National Competitive Bidding Program for one more year, until June 30, 2015.

Section 42 extends the effective date for hospitals to conduct presumptive eligibility determinations for Medical Assistance to July 1, 2014.

Section 43 corrects an error in Chapter 235 that was enacted earlier this session and made change to the advanced practice registered nurse (APRN) practice.  The correction modifies the delayed effective date of that bill to include the repealer section.

Section 44 requires the commissioner of human services, in consultation with interested stakeholders, to review MA spenddown requirements and processes for persons with disabilities and persons age 65 or older.  Requires the commissioner to report recommendations and their projected cost to the legislative chairs with jurisdiction over health and human services policy and finance, by February 15, 2015.

Section 45 allows DHS to waive nonemergency medical transportation services vehicle requirements until February 1, 2016, or when MnDOT begins to certify vehicles, with a report due to the Legislature due February 1, 2015.

Section 46 requires the commissioner to seek federal authority to make changes to the emergency medical assistance program to allow coverage and payment for cost-effective, community-based services and outpatient services as an alternative to hospital inpatient and emergency department services.

Section 47 requires the Commissioner of Human Services, in consultation with the Commissioner of Health, to convene a workgroup to develop a new delivery and reimbursement system for oral health and dental services provided to enrollees of the state public health care programs.  The commissioner shall submit the report and draft legislation to the legislature by January 15, 2015.

Section 48 repeals the following subdivisions in Section 256.969:

  • Subdivision 2c – property payments rates
  • Subdivision 8b – GAMC admissions
  • Subdivision 9a – expired disproportionate share adjustment
  • Subdivision 9b – expired rate reduction
  • Subdivision 11 – special rate-setting methodologies
  • Subdivision 13 – neonatal transfers
  • Subdivision 20 – expired MA payment increases
  • Subdivision 21 – GAMC mental health or chemical dependency rates
  • Subdivision 22 – expired hospital payment adjustment
  • Subdivision 26 – greater Minnesota payment adjustment
  • Subdivision 27 – quarterly payment adjustment
  • Subdivision 28 – temporary rate increase

Section 256.9695:

  • Subdivision 3 – outdated transition language
  • Subdivision 4 – outdated study language

Section 256B.0625

  • Subdivision 18f – enrollee assessment process (special transportation)

ARTICLE 25 - CHILDREN, FAMILIES, AND NORTHSTAR CARE FOR CHILDREN

Section 1 (119B.09, subdivision 9a) modifies the definition of “qualifying child” for purposes of child care assistance.  This section adds new paragraphs.

Paragraph (d) requires that this subdivision be implemented in the manner prescribed in this paragraph. 

Paragraph (e) requires the county to send a notice of adverse action, including appeal information, if the child’s authorization is terminated under this subdivision.

Paragraph (f) provides that funds paid for the period of time designated in paragraph (d) must not be treated as overpayments.

Paragraph (g) clarifies that nothing precludes the commissioner from conducting fraud investigations relating to child care assistance.

Section 2 (245A.03, subdivision 2) extends an exemption from licensure for certain school-age care programs for one year.

Section 3 (245C.05, subdivision 5) requires that background studies conducted for cases involving a transfer of permanent legal and physical custody of a child, the subject of the background study must provide fingerprints.

Section 4 (245C.08, subdivision 1) requires the commissioner to review information from the child abuse and neglect registry and from the national crime information databases for cases involving a transfer of permanent legal and physical custody.

Section 5 (245C.33, subdivision 1) specifies that under certain circumstances, a new background study is not required when a child is being placed in a home.  This section also provides that before the kinship placement agreement is signed, the commissioner shall conduct a background study on persons 13 years of age or older living in the home.

Section 6 (245C.33, subdivision 4) requires the commissioner to review previous background studies of adoptive parents under section 5.

Section 7 (256B.055, subdivision 1) inserts a cross-reference in the medical assistance statute to the Northstar Care for Children chapter of law.

Section 8 (256J.49, subdivision 13) modifies the MFIP definition of "work activity," specifically job readiness education, to include adult high school diploma course work.  The bill adds that job skills training directly related to employment includes postsecondary education.

Section 9 (256J.53, subdivision 1) specifies that the postsecondary education program must be a program lasting four years or less.  Current law allows 24 months, or less.  New paragraph (b) requires participants with a high school degree equivalent to be informed of the opportunity to participate in postsecondary education or training.

Section 10 (256J.53, subdivision 2) modifies the subdivision relating to the approval process for postsecondary education by striking documentation requirements, and adding language in which the job counselor works with participants to evaluate options.

Section 11 (256J.53, subdivision 5) allows for 12 weeks of job search, instead of six weeks.

Section 12 (256J.531) modifies the statute related to approving adult basic education and English as a second language (ESL) programs as work activities.  A participant who lacks a high school equivalent degree must be allowed to pursue a degree, provided the participant is making satisfactory process.  Under subdivision 2, the bill strikes language that limited ESL to 24 months, and restricted the amount of time that a participant was allowed to count ESL classes towards the participation requirements.

Section 13 (256N.02, subdivision 14a) defines the term “licensed child foster parent.”

Section 14 (256N.21, subdivision 2) clarifies the eligibility criteria for foster care benefits.

Section 15 (256N.21, subdivision 7) adds a new subdivision in the foster care benefits section of law, providing that the background checks for purposes of child foster care licensing must meet the requirements in state law under Minnesota Statutes, chapter 245C, and applicable federal law.

Section 16 (256N.22, subdivision 1) modifies guardianship assistance provisions.  Adds language regarding the requirements for guardian assistance.

Section 17 (256N.22, subdivision 2) modifies guardianship assistance provisions.  Requires the legally responsible agency to document the determinations the eligibility requirements in the federal adoption and guardianship assistance law in the kinship placement.

Section 18 (256N.22, subdivision 4) provides that a background study completed under section 245C.33 meets the federal requirements. Specifies when a previous study is sufficient under this section.

Section 19 (256N.22, subdivision 6) clarifies that the commissioner shall not enter into a guardianship assistance agreement with a stepparent.

Section 20 (256N.23, subdivision 1) clarifies the general eligibility requirements for adoption assistance related to American Indian children, and adds a new paragraph providing that a child receiving Northstar kinship assistance is eligible for adoption assistance under certain circumstances.

Section 21 (256N.23, subdivision 4) requires a background study on all adults in a prospective adoptive parent’s home, and allows a previously completed study to meet this requirement, under certain circumstances.

Section 22 (256N.24, subdivision 9) clarifies when reassessments for a child in continuous foster care must be completed.

Section 23 (256N.24, subdivision 10) adds a new paragraph stating that no reassessment can be requested or conducted if the agreement has been signed by all parties, but has not been approved by the court.

Section 24 (256N.25, subdivision 2) eliminates the at-risk benefit level for children eligible for guardianship (kinship) assistance and eliminate the special at-risk monthly payment for adoption assistance.

Section 25 (256N.25, subdivision 3) eliminates the at-risk benefit level for children eligible for guardianship (kinship) assistance and eliminate the special at-risk monthly payment for adoption assistance.

Section 26 (256N.26, subdivision 1) eliminates the at-risk benefit level for children eligible for guardianship (kinship) assistance and eliminate the special at-risk monthly payment for adoption assistance.

Section 27 (256N.27, subdivision 4) clarifies the federal, state, and local share of maintenance payments aligning this subdivision with subdivision 5 so that the local share is consistent with what the county or tribe would have spent had Northstar Care for Children not been enacted.

Section 28 (257.85, subdivision 11) provides that payments to counties for relative custody assistance after January 1, 2015, when Northstar becomes effective, are reimbursed under the fiscal reconciliation process under the Northstar chapter of law.

Section 29 (260C.212, subdivision 1) modifies the out-of-home placement plan to require documentation of the efforts to finalize the permanency plan for a child who cannot return to or be in the care of either parent. 

Section 30 (260C.515, subdivision 4) relates to the court ordering custody to a relative, by adding that the relative must be “fit and willing,” and modifies the requirements of the court when transferring custody of a child.

Section 31 (260C.611) amends adoption study requirements, providing that a foster home study may suffice if it meets the requirements in this section.

Section 32 requires the commissioner, in consultation with representatives from the child care and early childhood advocacy community, providers, and others to make recommendations to the appropriate legislative committees on increasing accessibility for providers and parents to the Parent Aware quality rating and improvement system.  The report is due February 15, 2015.  This section is effective the day following final enactment.

Section 33 requires the Cultural and Ethnic Communities Leadership Council to review with the Commissioner of Human Services the department’s existing competencies and strategies, and provide recommendations on improving internal competencies for culturally appropriate outreach to new Americans impacted by section 1

Section 34 is a revisor instruction to change all “guardian assistance” references to “Northstar kinship assistance” in chapter 256N.

Section 35 repeals Minnesota Statutes, section 256N.26, subdivision 7. Special at-risk monthly payment for at-risk children in guardianship assistance and adoption assistance.

ARTICLE 26:  COMMUNITY FIRST SERVICES AND SUPPORTS

Section 1 (245C.03, subdivision 8) requires the commissioner to conduct background studies on Community First Services and Supports providers and support workers, as required under Minnesota Statutes, section 256B.85. 

Section 2 (245C.04, subdivision 7) requires the commissioner to conduct a background study of the individuals under section 1 at least upon application for initial enrollment. Prior to the individual beginning direct contact services, the organization must receive a notification from the commissioner that the support worker is not disqualified from direct services, or is disqualified, but received a set-aside of the disqualification.

Section 3 (245C.10, subdivision 10) adds a new subdivision requiring the commissioner to recover the cost of background studies initialed by an agency-provider delivering community first services and supports.  The fee must not be more than $20 per study, charged to the organization responsible for submitting the background study form.  The fees collected are appropriated to the commissioner for conducting background studies.

Section 4 (256B.85 subdivision 2) modifies the definitions for “Budget model,” “Community first services and supports service delivery plan,” “Financial management services contractor or vendor,” “FMS contractor,” and “Support worker;” adds definitions for “Consultation services” and “Worker training and development;” and removes “Support specialist” from the definitions list.

Section 5 (256B.85, subdivision 3) replaces “recipient” with either “enrollee” or “participant;” and removes the eligibility requirement that a person cannot live in corporate foster care, a noncertified boarding home, or a boarding and lodging establishment.

Section 6 (256B.85, subdivision 5) modifies when CFSS participants must be assessed; removes language  allowing institutional residents to be assessed and choose CFSS when transitioning to the community; specifies that temporary authorization for CFSS services must be provided under the agency-provider model; requires consultation services after temporary authorization expires; and makes terminology changes.  Participants approved for temporary authorization shall access the consultation service to complete their orientation and selection of service model.

Section 7 (256B.85, subdivision 6) makes modifications to the information contained in the CFSS service delivery plan, including the duties of consultation services providers and FMS contractors.

Section 8 (256B.85, subdivision 7)  removes transition costs from the list of services and supports covered under the CFSS service unit authorization; specifies that services provided by consultation services providers under contract with DHS are covered; and adds to the list of covered services: the services of a FMS contractor under contract with DHS, the services of parents, stepparents, or legal guardians for participants under 18, and participants’ spouses, and worker training and development services; makes terminology changes.

Section 9 (256B.85, subdivision 8) requires the service budget for budget model participants be based on assessed units determined by a home-care rating, along with a factor for administrative costs; makes terminology changes.

Section 10 (256B.85, subdivision 9) modifies the list of noncovered CFSS services by: removing references to transition costs and training-related expenses for caregivers; and by adding:

•     services provided by a nonenrolled CFSS provider

•     services provided by a CFSS participant’s representative or paid legal guardian

•     services solely for child care or babysitting

•     services  provided by a residential or program license holder under the terms of a service

      agreement or administrative rules

•     sterile procedures

•     injections

•     non-CFSS assessed homemaker services

•     home maintenance or chore services

•     home care services, including hospice, covered by Medicare or other insurance

•     services to other members of the household

•     services not covered under MA as CFSS

•     use of restraints or implementation of deprivation procedures

•     assessments by CFSS providers or independently-enrolled registered nurses

•     services provided in lieu of legally required staffing in a residential or child care setting

•     services provided by a residential or program license holder in a residence with more than four people

Section 11(256B.85, subdivision 10) modifies agency-provider and FMS contractor qualifications, requirements, and duties.

Section 12  (256B.85, subdivision 11) allows worker training and development services under the agency-provider model, and excludes the revenue generated by these services from the requirement that 72.5 percent of MA revenue be used to pay for support worker wages and benefits; and specifies the process for purchasing goods under the agency-provider model.

Section 13 (256B.85, subdivision 12) changes the term “provider agency” to “agency-provider;”  and requires DHS to send annual enrollment renewal notifications to agency-providers 30 days prior to renewal, with the agency-providers required to submit enrollment renewal documentation to DHS within 30 days of receiving the notifications.

Section 14 (256B.85, subdivision 13) modifies the CFSS budget model by: requiring participants to use an FMS contractor; listing the participants’ duties; listing the circumstances under which DHS must disenroll or exclude individuals from the budget model; and specifying the duties, requirements, and responsibilities of the FMS contractor.

Section 15 (256B.85, subdivision 15) modifies when daily documentation by the support worker must be submitted to the provider, or participant and FMS contractor, from “monthly” to “regular;” and makes terminology changes.

Section 16 (256B.85, subdivision 16) prohibits a CFSS support worker from working, and being paid for, more than 275 hours per month, with no prohibition on the number of work hours in a day (unless it violates other law); makes a terminology change.

Section 17 (256B.85, subdivision 16a) adds a subdivision establishing the requirements for support workers enrolling with a different CFSS agency-provider or FMS contractor.

Section 18 (256B.85, subdivision 17) establishes, defines, describes, and outlines the duties of consultation services.

Section 19 (256B.85, subdivision 17a) adds a new subdivision requiring DHS to develop qualifications and requirements for consultation services providers.

Section 20 (256B.85, subdivision 18) changes the service budget allocation for budget model participants.

Section 21 (256B.85, subdivision 18a) requires that DHS establish support worker training and development service standards and limits.

Section 22 (256B.85, subdivision 23) makes a terminology change.

Section 23 (256B.85, subdivision 24) requires a background study for staff who have contact with CFSS participants to provide worker training and development.

Section 24 (Laws 2013, chapter 108, article 7, section 49) amends the CFSS effective date.

ARTICLE 27:  CONTINUING CARE

Section 1 (13.46, subdivision 4) amends the data practices act by adding cross-references to Minnesota Statutes, chapter 245D.  Paragraph (d) makes the names of reporters of alleged violations of licensing standards under chapter 245D confidential data, which may be disclosed only as provided in this paragraph.  Under paragraph (i), data on individuals collected according to investigations under chapter 245D may be shared with the Department of Human Rights, Health, Corrections, the ombudsman for mental health and developmental disabilities, and the individual’s professional regulatory board under certain circumstances.

Section 2 (144.0724), subdivision 11 modifies the nursing facility level of care criteria effective January 1, 2015. Subdivision 12 modifies the appeal process for recipients meeting transition population criteria to allow for a longer time period to appeal a nursing facility level of care determination. Makes this section effective January 1, 2015.

Section 3 (144A.073, subdivision 14) adds a subdivision allowing the Minnesota Department of Health to approve nursing facility moratorium exception projection, which the annualized state share of Medical Assistance does not exceed for fiscal year 2015.

Section 4 (144A.33, subdivision 2) modifies the Board on Aging educational services to councils.

Section 5 (245.8251) modifies the human services chapter of law, specifically the statute governing positive support strategies and restrictive interventions. 

Subdivision 1 requires the commissioner, by August 31, 2015, to adopt rules to govern the use of positive support strategies, and ensure applicability of Chapter 245D prohibitions and limits on restraint and restrictive interventions in all facilities. 

Subdivision 2 requires the commissioner to identify data specific to incidents of restraint, and licensed facilities shall report that data to the commissioner and ombudsman. 

Subdivision 3 requires that rules adopted according to this section establish requirements for an external program review committee appointed by the commissioner to monitor the implementation of the rules and make recommendations to the commissioner about necessary policy changes.

Subdivision 4 requires the commissioner to establish an interim review panel by August 15, 2014, to review requests for emergency use procedures.  The panel must make recommendations to the commissioner to approve or deny the requests.  This committee must operate until the committee under subdivision 3 is established.  This paragraph specifies membership qualifications for the interim review panel.

Section 6 (245A.03, subdivision 7) amends the adult foster care moratorium, specifically the law requiring the delicensing of beds, by adding language to determine how the commissioner will delicense remaining beds.

Section 7 (245A.042, subdivision 3) amends the Department of Human Services licensing chapter of law related to home and community-based services by specifying that license holders must ensure compliance with the requirements under this section, within the stated timelines.  The requirements relate primarily to service initiation and planning for the recipient, staff orientation, development of policy and procedures, and staff training.

Section 8 (245A.16) provides that licensing authority under chapter 245D is excluded from the delegation of authority to county and private agencies.

Section 9 (245D.02, subdivision 3) modifies the definition of “case manager,” to include case management services defined in rule.

Section 10 (245D.02, subdivision 4b) modifies the definition of “coordinated service and support plan” to include the individual program plan or treatment plan as defined in rule.

Section 11 (245D.02, subdivision 8b) is technical, corrects a cross-reference.

Section 12 (245D.02, subdivision 11) amends the definition of “incident” to include a mental health crisis that requires a mental health response team or service when available and appropriate.

Section 13 (245D.02, subdivision 15b) modifies the definition of “mechanical restraint” by clarifying what devices do not fall under this definition.

Section 14 (245D.02, subdivision 23) modifies the definition of “person with a disability.”

Section 15 (245D.02, subdivision 29) clarifies the definition of “seclusion.”

Section 16 (245D.02, subdivision 34) provides that the support team includes the case management team as defined in rule.

Section 17 (245D.02, subdivision 34a) reworks the definition of the term “time out.”

Section 18 (245D.02, subdivision 35b) defines the term “unlicensed staff.”

Section 19 (245D.03, subdivision 1) adds under clause (1) services that are excluded from basic support services, and adds “adult” to clarify that this law applies to “adult” companion services, and modifies intensive in-home support services to include residential services provided to more than four persons with developmental disabilities in a supervised living facility.

Section 20 (245D.03, 1a) adds a subdivision stating the effect of the home and community-based standards, which are established to protect the health, safety, welfare, and rights of persons receiving home and community-based services.

Section 21 (245D.03, subdivision 2) modifies the subdivision regarding the relationship to other standards governing H&CBS, by striking language related to corporate or family foster care, and striking cross-references to sections of law that are modified later in the bill.

Section 22 (245D.03, subdivision 3) amends the variance statute by striking a reference to a subdivision related to restrictions when implementing emergency use of manual restraint, and adds a reference to restricted procedures.

Section 23 (245D.04, subdivision 3) amends the protection-related rights of a person, to include that the person has a right to be free from restrictive intervention or other prohibited procedures, except for the use of safety interventions, and strikes a nonexistent cross-reference.

Section 24 (245D.05, subdivision 1) provides that unlicensed staff responsible for medication setup or medication administration must complete training.

Section 25 (245D.05, subdivision 1a) clarifies that if the license holder is responsible for medication setup, or if the license holder provides medication setup as part of medication assistance, the license holder must document the information listed in this section related to the type of medication, quantity, and times administered.

Section 26 (245D.05, subdivision 1b) clarifies the definition of “medication assistance” and moves existing language regarding medication assistance within the subdivision.

Section 27 (245D.05, subdivision 2) clarifies medication administration responsibilities and procedures.

Section 28 (245D.05, subdivision 4) relates to reviewing and reporting medication and treatment issues, by striking language that required certain reports to the person’s physician or prescriber.

Section 29 (245D.05, subdivision 5) amends the injectable medications subdivision by striking the terms “subcutaneous” and “intramuscular” when describing injections.

Section 30 (245D.051) amends the psychotropic medication use and monitoring provision.  This section strikes language that requires the use of medication be in the person’s coordinated services and support plan and based on a prescriber’s prescription. 

Subdivision 2 prohibits the license holder from administering the medication if the person refuses, and the refusal must be reported to the prescriber as expediently as possible. Clarifies that the refusal may not be overridden without a court order.

Section 31 (245D.06, subdivision 1) is technical.

Section 32 (245D.06, subdivision 2) provides that toxic substances or dangerous items must be inaccessible when a known safety risk exists, and makes other clarifying changes.

Section 33 (245D.06, subdivision 4) specifies the circumstances under which a license holder or staff person is restricted from accepting an appointment as guardian.

Section 34 (245D.06, subdivision 6) amends the restricted procedures subdivision, by adding language clarifying what a restricted procedure does not include. This language is moved from 245D.061, subdivision 3.

Section 35 (245D.06, subdivision 7) permits physical contact to redirect a person’s behavior when applied for less than 60 seconds and allows for the use of an auxiliary device to ensure that a person does not unfasten a seatbelt in accordance with other law.

Section 36 (245D.06, subdivision 8) provides that the commissioner has limited authority to grant approval for the emergency use of manual restraint. The commissioner may grant approval when the person is at imminent risk of serious injury due to self-injurious behavior, provided the conditions in this paragraph are also met, which include approval by the person’s support team and the interim review panel. Written requests for emergency use of procedures must be developed and submitted to the commissioner for a determination.

Section 37 (245D.071, subdivision 3) reworks and clarifies the assessment and initial service planning section of law.

Section 38 (245D.071, subdivision 4) amends the service outcomes and supports statute, by clarifying the time lines and duties related to developing a services plan and documentation of service outcomes.  This section also makes other clarifying language changes.

Section 39 (245D.071, subdivision 5) changes “progress reviews” to “service plan review and evaluation”, and adds that the purpose of the service plan is to determine if changes are needed based on new information.

Section 40 (245D.081, subdivision 2) modifies the designated coordinator’s training requirements, in order to ensure that the designated coordinator is competent to perform the duties under this section.

Section 41 (245D.09, subdivision 3) modifies direct care staffing qualifications by allowing the license holder to determine competency of staff by either knowledge testing or observed skill assessment.   Existing law requires both.

Section 42 (245D.09, subdivision 4a) makes clarifying language changes and requires staff to review and receive instruction on mental health crisis response, de-escalation techniques, and suicide intervention, when providing direct care to person with a serious mental illness.

Section 43 (245D.091, subdivision 2) modifies behavior professional qualifications, behavior analyst qualifications, and behavior specialist qualifications, respectively.

Section 44 (245D.091, subdivision 3) modifies behavior professional qualifications, behavior analyst qualifications, and behavior specialist qualifications, respectively.

Section 45 (245D.091, subdivision 4) modifies behavior professional qualifications, behavior analyst qualifications, and behavior specialist qualifications, respectively.

Section 46 (245D.10, subdivision 3) allows the notice of proposed termination of service to be given in conjunction with the notice of temporary service suspension.   This section also requires the license holder to work with the support team or expanded support team, instead of the appropriate county agency, during the temporary service suspension or service termination notice period.

Section 47 (245D.10, subdivision 4) is technical.

Section 48 (245D.11, subdivision 2) adds that a mental health response team or service must be contacted when an incident occurs, if available and appropriate.

Section 49 (252.27, subdivision 2d) reduces TEFRA parental fees by ten percent.

Section 50 (252.451, subdivision 2) provides that notwithstanding the requirements in chapter 245D, a day training and habilitation vendor may enter into written agreements with a business to provide training and supervision needed by individuals to maintain their employment.

Section 51 (256.9752, subdivision 2) requires the Board on Aging to allocate to the area agencies on aging state senior nutrition funds.

Sections 52 and 53 (256B.0949, subdivisions 4 and 5) modify diagnosis  and diagnosis assessment requirements under the MA autism early intensive intervention benefit.

Section 54 (256B.0949, subdivision 11) allows the commissioner to amend the MA state plan to achieve the purposes of the MA autism benefit.

Section 55 (256B.0494, subdivision 12) requires the commissioner to provide statewide training on the autism early intensive intervention benefit after it is approved by CMS.

Section 56 (256B.439, subdivision 1) adds home health services, private duty nursing services, personal care services, and Community First Services and Supports to the list of home and community-based services required to have quality profiles developed by the Department of Human Services (DHS) and Health.

Section 57 (256B.439, subdivision 7) modifies the calculation of home and community-based services quality add-on.  Changes the funding from a fixed appropriation to a forecasted amount.

Section 58 (256B.441, subdivision 63) requires, to the extent practical, DHS to designate nursing facilities as critical access facilities evenly throughout the state beginning in fiscal year 2015; and gives designated facilities and DHS some discretion in the percentages used in the partial rebasing of rates for designated facilities.

Section 59 (256B.441, subdivision 64) increases the operating payment rates for nursing facilities effective for rate years beginning October 1, 2014, to address changes in compensation costs for nursing facility employees paid less than $14.00 per hour.

Section 60 (256B.4912, subdivision 1) requires that home and community-based providers meet the requirements of chapter 245C prior to the revalidation of a license.

Section 61 (256B.4913, subdivision 4a) modifies the rate stabilization adjustment subdivision, by defining the terms banding period and historical rate for purposes of calculating a provider rate. This section requires the commissioner to review, by December 31, 2014, all changes to rates that were in effect on December 1, 2013, to verify that the rates produce the equivalent level of spending and service unit utilization on an annual basis as those rates in effect October 31, 2013.  This section also requires that during the banding period, the rate be adjusted to account for changes in the individual’s need.

Section 62 (256B.4914, subdivision 2) defines the terms individual staffing, shared staffing, staffing ratio, and unit of service.

Section 63 (256B.4914, subdivision 4) amends the subdivision relating to data collection for rate determination.  The determination of service levels must be part of a discussion with members of the support team under chapter 245D, and must occur prior to the final establishment of the individual’s rate.  This section also clarifies the duties of lead agencies related to calculating payment for services, and requires lead agencies to respond to requests, as specified in this section, if a value is erroneous.

Section 64 (256B.4914, subdivision 5) makes some clarifying changes, and also requires the commissioner to update several components, including components for residential support services, family foster care, and day services, to name a few, for changes in the consumer price index.

Section 65 (256B.4914, subdivision 6) clarifies that payments for transportation are based on the resident with the highest assessed need, and adds language clarifying how to determine the rate for individuals enrolled prior to January 1, 2014.

Section 66 (256B.4914, subdivision 7) modifies how services for day programs must be calculated by including staffing ratios for units of service in the calculation.

Section 67 (256B.4914, subdivision 9) changes are technical; daily units is changed to day units.

Section 68 (256B.4914, subdivision 10) paragraph (b) adds that the commissioner must begin to gather information and data, no later than July 1, 2014, on mileage, vehicle type, lift requirements, and underlying costs for services provided by a certified adult mental health provider.  

Paragraph (c) requires the commissioner to issue semiannual reports to the stakeholders on the difference in rates by service and by county during the banding period. The first report is due October 1, 2014.

Paragraph (d) imposes the duty to begin the review and evaluation of values listed in this paragraph no later than July 1, 2014.

Paragraph (f) requires, instead of allows, the commissioner to make recommendations to the legislature by January 15, 2015, to address issues identified in the first year of implementation.

Section 69 (256B.4914, subdivision 15) relates to county and tribal allocations, providing that during the first two years of implementation, lead agencies exceeding allocations must only be held liable for spending in excess of allocations after the reallocation of resources by the commissioner under existing law.  The commissioner shall notify lead agencies of the process to reallocate resources by July 1, 2014.

Section 70 (256B.492) provides an exemption to community living settings programs for a project in Golden Valley.

Section 71 (256B.5012, subdivision 16) provides a five percent rate increase for ICF/DDs effective July 1, 2014.  Requires 80 percent of the payment increase to be used to increase compensation-related costs for employees directly employed by the facility.  Ties one percent of the rate increase to quality improvement projects.

Section 72 requires DHS to seek federal approval to modify the Consumer-Directed Community Supports budget methodology to account for day services for people 21 years old and older graduating high school between 2013 and 2015.

Section 73 modifies the effective date of the MA autism early intensive intervention benefit.

Section 74 requires DHS to develop a transition plan to comply with Centers for Medicare and Medicaid requirements regarding home and community-based settings requirements (25 percent restriction) with a report to the Legislature due January 15, 2015.

Section 75 provides a five percent reimbursement rate increase for various home and community-based services providers effective July 1, 2014.  Requires 80 percent of the payment increase to be used to increase compensation-related costs for employees.  Ties one percent of the rate increase to quality improvement projects.

Section 76 requires the DWRS to be adjusted to account for the five percent rate increase for home and community-based services providers.

Section 77, paragraph (a) instructs the revisor to change the term “defective person” to “persons with developmental disabilities.”

Paragraph (b) instructs the revisor to change the term “health and safety” to “health and welfare.”

ARTICLE 28:  PUBLIC ASSISTANCE SIMPLIFICATION

This article establishes a new chapter of law, chapter 256P, which contains uniform procedures for determining the asset limits, earned income disregard, self-employment earnings, and verification of documentation for the General Assistance (GA), Minnesota supplemental aid (MSA), group residential housing (GRH), and the Minnesota family investment (MFIP) programs.  A majority of the sections in the bill incorporate references to the new chapter, and strike redundant and obsolete language in existing law.  The new language establishing the uniform procedures is in Sections 31 to 36.

Section 1 (254B.04, subdivision 3) is technical; deletes a reference to a general assistance subdivision that is repealed.

Sections 2 to 8 (256D.02, subdivision 8; 256D.02, subdivision 12; 256D.05, subdivision 5; 256D.06, subdivision 1; 256D.08, subdivision 1; 256D.08, subdivision 3; 256D.10) modify the general assistance program, by striking obsolete language and adding cross-references to the new chapter of law with regard to self employment earnings in section 2, the definition of agency in section 3, the transfer of property under section 4, earned income in section 5, and personal property limitations under section 6.

Sections 9 to 11 (256D.405, subdivision 1; 256D.405, subdivision 3; 256D.425, subdivision 2) modify the MSA program, by striking obsolete language and adding cross-references to the new chapter of law.  Section 9 strikes language regarding the verification of information and adds a cross-reference to the new chapter. Section10 is technical; changes the term “recipient” to “participant” in order to be consistent across programs. Section 11 clarifies that for individuals receiving SSI, the determination of resources does not change, but for individuals who do not receive SSI, the resource standards are under the new chapter of law.

Sections 12 and 13 (256I.03; 256I.04, subdivision 1) modify the GRH program.  Section 12 inserts the definition of “agency” and cross-references the definition in the new chapter.  Section 13 references the restrictions and standards in the new chapter.

Sections 14 to 30 (256J.08; 256J.08, subdivision 47; 256J.08, subdivision 57; 256J.08, subdivision 83; 256J.10; 256J.21, subdivision 3; 256J.21, subdivision 4; 256J.30, subdivision 4; 256J.30, subdivision 9; 256J.32, subdivision 1; 256J.33, subdivision 2; 256J.37, as amended by Laws 2013; 256J.425, subdivision 1; 256J.425, subdivision 7; 256J.95, subdivision 8; 256J.95, subdivision 9; 256J.95, subdivision 10) amend MFIP, by striking obsolete and redundant language, and adding references to the replacement provisions in the new chapter of law.  Sections 22, 26, and 27 strike references to the shared household standard, which is repealed.

Section 31 (256P.001) provides that GA, MSA, GRH, and MFIP are subject to the requirements under this chapter.

Section 32 (256P.01) defines the following terms:  agency, earned income, earned income disregard, equity value, personal property, and self-employment.

Section 33 (256P.02) relates to personal property limitations. The personal property of an assistance unit must not exceed $10,000.  One vehicle per assistance unit member age 16 or older is excluded.  Vehicles that are not excluded are included in the personal property calculation.

Section 34 (256P.03) establishes the earned income disregard, which is the first $65 of earned income plus one-half of the remaining earned income per month. This calculation is based on the SSI disregard, which is the existing calculation for GRH and MSA.

Section 35 (256P.04) specifies the procedures for documenting, verifying, and recertifying eligibility.  The section consolidates existing law primarily from the MFIP statutes in this chapter.

Section 36 (256P.05) adds a new section of law regarding self-employment earnings.  The self-employment earnings calculations are simplified under this section.  The agency must determine self-employment, which is either one-half of the participant’s gross earnings from self-employment, or taxable income as determined by an IRS tax form.  This section specifies that the budget period for self-employment income begins when the participant applies, or when the employment begins.

Section 37 repeals redundant provisions in the MFIP, GA, GRH, and MSA programs. The repealer of the shared household standard (sections 256J.08, subdivision 82a, and 256J.24 subdivision 9) is not redundant, but was repealed to simplify the eligibility process for MFIP participants.  

ARTICLE 29: CHEMICAL AND MENTAL HEALTH

Section 1 (245.466, subdivision 3a)  requires counties to prepare a transition plan that provides for the continuity of care in the event a contract with a community health center or support services program is terminated.

Section 2 (245A.04, subdivision 15a) requires license holders who are applying for a license, except for child care providers, to submit a written plan indicating how the agency will provide for the transfer of clients and records if the agency closes. This section specifies what the plan must include.

Section 3 (253B.066, subdivision 1) modifies the civil commitment act, specifically the section of law relating to court-ordered early intervention hearing procedures, by allowing the court to order assertive community treatment, crisis assessment and stabilization, and partial hospitalization.

Section 4 (254B.12) modifies the consolidated chemical dependency treatment fund methodology, to allow the commissioner to seek federal authority to develop a separate payment methodology for chemical dependency treatment services provided by a state-operated vendor or for persons who have been civilly committed to the commissioner, present the most complex care needs, and are a potential threat to the community.  This is effective for services provided on or after October 1, 2015, or after federal approval, whichever is later.  Before implementing the methodology, the commissioner must receive any necessary legislative approval of required changes to state law or funding.  

Section 5 (256B.06, subdivision 4) allows the nonprofit under this paragraph to establish itself as a provider of mental health targeted case management services through a county contract, or negotiate a contract with the commissioner.

Section 6 (256B.0615, subdivision 3) amends the mental health certified peer specialist benefit under medical assistance, by allowing consumers of mental health mobile crisis intervention to be eligible for peer specialists.

Section 7 (256B.0624, subdivision 2) amends the definition of mental health crisis assessment to include assessing, when feasible, whether the person might be willing to voluntarily accept treatment, determining if the person has an advance directive, and obtaining information and history from family members.  The services must be culturally and linguistically appropriate.  The mobile crisis team must be available to individuals who are experiencing a co-occurring substance use disorder who do not rise to the level of needing services in a detoxification facility. This section also requires the treatment plan to include engagement in treatment planning and family psychoeducation, and provides that mental health crisis stabilization services include family psychoeducation

Section 8 (256B.0624, subdivision 5) amends mobile crisis intervention team qualifications to include that the team must be experienced in treatment engagement strategies and working with families.

Section 9 (256B.0624, subdivision 6) requires the crisis assessment and mobile intervention treatment team to link a recipient to service and follow up to ensure the recipient is receiving services, if the recipient is unable to follow up on a referral. The crisis team must offer to work with the recipient to develop an advance directive if the recipient is stabilized and is without a directive.

Section 10 (256B.0624, subdivision 10) requires an advance directive, if available, to be in the recipient’s file.

Section 11 (256I.05, subdivision 2) modifies a group residential housing (GRH) rate.  New language states that the rate paid to this facility shall also include adjustments to the GRH rate according to subdivision 1, which sets the maximum rates, and any adjustments applicable to supplemental service rates statewide. The rate adjustment affects Andrew Residence, which cares for approximately 200 people with serious and persistent mental illness who also need nursing home level of care.

Section 12 requires the commissioner to report to the Legislature on all waiting lists for services the department oversees and directs as part of the background materials for the 2016-2017 biennium.

Section 13 requires the Commissioner of Human Services to convene a working group to address issues related to offenders with mental illness who are arrested or subject to arrest.  The working group’s main objective is to explore the establishment of a facility that would serve as a hub for offenders with mental illness in the metropolitan area, to which the offenders could be transported by law enforcement and assessed.  The working group may also consider how similar facilities could function out state.  The commissioner shall convene the working group by September 1, 2014, with the report due by January 15, 2015, summarizing the working group’s activities, recommendations, and draft legislation. NAMI shall provide meeting space and administrative support.  This section is effective the day following final enactment.

Section 14 requires the Commissioner of Human Services to develop a plan to include detoxification services as a covered medical assistance benefit and present the plan to the Legislature by December 15, 2014.  

Section 15 requires a report by February 1, 2015, on the rate setting methodology for mental health services.  The report must assesses the current rate setting for IRTS, adult crisis, and ACT, and include an assessment of alternative payment structures that provide adequate reimbursement to sustain community-based mental health services regardless of geographic location.

 ARTICLE 30: HEALTH AND HUMAN SERVICES APPROPRIATIONS

 ARTICLE 31: HUMAN SERVICES FORECAST ADJUSTMENTS

 
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