Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Alexis C. Stangl
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 800 - Health and Human Services Omnibus Appropriations Bill
 
Author: Senator Jim Abeler and Senator Michelle Benson
 
Prepared By: Liam Monahan, Senate Analyst (651/296-1791)
Joan White, Senate Counsel (651/296-3814)
 
Date: March 27, 2017



 

Article 1 - Community Supports

Section 1 (144A.351) clarifies that funds appropriated for the long-term care gaps analysis are available in either year of the biennium and deletes obsolete language concerning a completed study.

Section 2 (245D.03, subdivision 1) adds individualized home supports services, employment exploration services, employment development services, and employment support services to the range of services governed by the home and community-based licensing standards under Minnesota Statutes, chapter 245D.

Section 3 (252.41, subdivision 3) removes supported employment from the definition of day training and habilitation and clarifies that work-related activities included in the definition are only center-based activities and not employment exploration services, employment development services, or employment support services.

Section 4 (256.477) places in statute an existing grant program currently awarded to Achieving Change Together, a statewide self-advocacy network of people with disabilities, and adds additional conditions for the awarding of grants.

Section 5 (256B.0659, subdivision 1) defines a new service to begin July 1, 2018, called complex personal care assistance services.  Complex PCA services are PCA services provided to a person who qualifies for more than ten hours of PCA services per day and that are provided by a PCA with additional training.

Section 6 (256B.0659, subdivision 2) makes a conforming change to a cross-reference.

Section 7 (256B.0559, subdivision 11) specifies that a PCA is qualified to provide complex PCA services only if the PCA meets the home health aide or nursing assistant competency evaluation standards under Medicare, or a similar state standard.

Section 8 (256B.0659, subdivision 17a) specifies that the rate for complex PCA services beginning July 1, 2018, is 110 percent of the rate for PCA services.

Section 9 (256B.0659, subdivision 21) requires PCA provider agencies to maintain documentation that any PCA providing complex PCA services has satisfied all of the requirements for provision of complex PCA services.

Sections 10 to 16 contain changes to MnCHOICES and the reassessment process for home care nursing, personal care assistance services, elderly waiver services, alternative care services, and disability waiver services.

Section 17 (256B.4913, subdivision 4a) clarifies the historical rate for day service recipients and adds an additional year of banding to the disability waiver rate system implementation.

Currently, banding will continue until January 1, 2019.  The Department of Human Services is awaiting approval of a zero percent band for the 2019 calendar year, which would extend banding until January 1, 2020.  This section adds another one percent banding year, which would extend banding until January 1, 2021.

Section 18 (256B.4913, subdivision 7) clarifies that new services added to the disability waiver rate system are not subject to banding.

Section 19 (256B.4914, subdivision 2) modifies the definition of “respite care” for the purposes of the disability waiver rate system, thereby allowing respite care services to be reimbursed at a market rate.

Section 20 (256B.4914, subdivision 3) adds individualized home supports, independent living skills specialist services, employment exploration services, employment development services, and employment support services to the disability waiver rate system.

Section 21 (256B.1914, subdivision 5) modifies the base wage index, component values, the frequency of inflation adjustments, and requires study and evaluation of various wage and component values.

Paragraph (a) modifies the base wage index by modifying the data to which the commissioner will refer when determining the base wage for staff providing various services and by creating five new base wage calculations for three new employment-related services, for independent living skills specialist services, and individualized home supports services.

Paragraph (d) modifies various component values effective January 1, 2018, except the absence and utilization factor for day services, which is effective January 1, 2019.

Paragraph (h) eliminates the requirement to apply both the wage inflation factor and the consumer price index factor to the same component values, thereby ensuring that only factors that do not have a wage inflation factor built into them get a CPI adjustment.

Paragraphs (h) and (i) increases the frequency of the automatic inflation adjustments from every five years beginning July 1, 2017, to every two years beginning July 1, 2022.

Paragraph (i) requires the commissioner to make recommendations to the legislature to replace any of the wage codes that become in the future obsolete.

Paragraph (k) requires the commissioner to study the costs of providing services whose rates are determined by the disability waiver rate system, and requires providers to submit business data for the purposes of this study.

Paragraph (l) specifies the timeline for the submission by providers of their business data and specifies penalties the commissioner must impose of providers who fail to meet the timeline.

Paragraph (m) require the commissioner to randomly audit a representative sample of the cost data submitted.

Paragraph (n) permits the commissioner, based on the commissioner’s research, to make recommendations to the legislature concerning changes to the component values and inflationary adjustments.

Paragraph (o) requires the commissioner to provide technical assistance and training to providers so that they are able to comply with the requirement to submit valid business data.

Sections 22 and 25 make conforming changes, except that section 24 (256B.4914, subdivision 8, clause (13)) modifies the staffing ratio for employment support services.

Section 26 (256B.4914, subdivision 10) modifies the commissioner’s DWRS research requirements.

Sections 27 to 29 contain changes to MnCHOICES and the reassessment process for community first services and supports.

Section 30 (256C.23, subdivision 1a) defines “culturally affirmative.”

Section 31 (256C.23, subdivision 2) modifies the definition of “deaf” by including additional examples of visual and manual means of communication.

Section 32 (256C, subdivision 2c) defines “interpretive services.”

Section 33 (256C.23, subdivision 6) defines “real-time captioning.”

Sections 34 (256C.233, subdivision 1) specifies that the commissioners of education, employment and economic development, and health shall advise the commissioner of human services on the activities of the Deaf and Hard-of-Hearing Division; removes from the jurisdiction of the Division the educational and occupational needs of individuals.

Section 35 (256C.233, subdivision 2) modifies the duties of the Division by supplementing mere promulgation of information with advocacy, training, service provision, including the provision of mental health services, research, and reporting to the legislature on the activities of the Division.

Section 36 (256C.24, subdivision 1) incorporates people first language and requires the Division to establish at least six regional service centers.

Section 37 (256C.24, subdivision 2) modifies the duties of the regional service centers.

Section 38 (256C.24, subdivision 4) permits individuals traveling more than 50 miles round-trip to receive services at a regional service center to be reimbursed at the reimbursement rate established by the Internal Revenue Service.

Section 39 (256C.261) clarifies the minimum allocation of grant funding for services and supports for children and for adults, and prohibits regional service centers from providing services under the consumer-directed grant program.

Section 40 (CDCS budget Methodology Exception for Persons Leaving Institutions and Crisis Residential Settings) directs the commissioner of human services to establish a consumer-directed community supports budget exception process for individuals who are currently residing in an institutional setting, as defined in paragraph (b), who have been approved for discharge from the institutional setting, but who have not been offered the appropriate services within 60 days of receiving discharge approval, and whose needs cannot be accommodated in a noninstitutional setting within the consumer-directed community supports budget limitations.

Section 41 (Federal Waiver Request) requires the commissioner of human services to make all necessary waiver amendment requests for the elimination of supported employment and the creation of three new employment-related services.

Section 42 (Transportation Study) requires the commissioner of human services to conduct a study to identify opportunities to increase access to transportation for individuals who receive home and community-based services.

Section 43 (Direction to the Commissioner; Telecommunication Equipment program) requires the commissioner and the Commission of Deaf, Deafblind and Hard-of-Hearing Minnesotans to make recommendations to the legislature concerning the modernization of the telecommunication equipment program.

Section 44 (Direction to the Commissioner; Billing for Mental Health Services) requires the commissioner of human services to report to the legislature on the costs and benefits of the Deaf and Hard of Hearing Division providing mental health services.

Section 45 (Direction to the Commissioner of Human Services) requires the commissioner to work with lead agencies to reform to the MnCHOICES assessment tool to reduce the amount of time certified assessors completing the online forms.

Section 46 (Expansion of CDCS Budget Methodology Exception) directs the commissioner of human services to request a waiver amendment to permit a budget increase of up to 30 percent for individuals eligible for consumer-directed community supports who require greater resources than currently allowed in order to increase the amount of time they can work, transition into their own home, or develop a positive support plan.

Section 47 (Repealer) repeals the budget neutrality factor from the disability waiver rate system effective January 1, 2018.  This section all repeals subdivisions within the Deaf and Hard-of-Hearing Services Act, including the definition of "regional service center," the duty of state agencies with respect to the Division, and language concerning interpreter services, which is incorporated elsewhere in the bill.

Article 2 – Housing

Sections 1 and 2 (144D.04, subds. 2 and 2a) amend the housing with services establishment chapter of law by adding contract requirements for residents receiving one or more health-related services from the establishments’ arranged home care provider.

Section 3 (245A.03, subd. 7) adds two exceptions to the DHS licensing moratorium for new foster care licenses or community residential setting licenses; one is for the transition of people from the residential care waivers services to foster care services, determined to be needed by the commissioner, and the second is for people receiving services under Minnesota Statutes, chapter 245D and residing in an unlicensed setting before May 1, 2017, under certain circumstances.   New paragraph (h) allows the commissioner to adjust capacity to address needs identified in the annual report balancing long-term care services and supports.

Section 4 (245A.04, subd. 14) requires an adult foster care license holder to receive a copy of the resident termination policy established in section 7.

Section 5 to 7 amend chapter 245A, the DHS licensing act, establishing new subdivisions in the statute related to special conditions for residential programs.

Section 5 (245A.11, subd. 9) requires that a resident receiving services must have the choice of a roommate, and both must consent in writing, and the license holder must provide a lock for each resident bedroom door, unless otherwise indicated for health, safety, or well-being of the resident.

Section 6 (245A.11, subd. 10) establishes the adult foster care resident rights.

Section 7 (245A.11 subd. 11) specifies the adult foster care service termination provisions for elderly waiver participants.

Sections 8 to 12 amend chapter 245D, the home and community-based waivered services. 

Section 8 (245D.03, subd. 1) adds individualized home support services to the definition of intensive support services.

Section 9 (245D.04, subd. 3) expands the rights of a person receiving services by a licensed provider, to include the right to lock the bedroom door and access personal possessions, to name a couple.

Section 10 (245D.071, subd. 3) requires that within 45 days of the service initiation, the provider must determine how to support the person so the person has control of the person’s schedule.

Section 11 (245D.11, subd. 4) modifies license holder admission criteria, by requiring the person or person’s legal representative and license holder to sign and date the residency agreement when the license holder provides certain services.

Section 12 (245D.24, subd. 3) relates to community residential settings, and requires each person receiving services to have a choice of a roommate. This section also provides that a person must be allowed to lock the person’s bedroom door.

Section 13 (256.045, subd. 3) amends the state agency hearings section of law to allow for a hearing when the person is issued a notice of service termination under 245A.11, subd 11.

Section 14 (256B.051) establishes the housing support services program.  If the program is approved by the federal government, the services will be reimbursed through medical assistance. 

Subdivision 1 states the purpose of the program, which is to provide housing support services to individuals with a disability that limits their ability to obtain or maintain stable housing.

Subdivision 2 defines terms.

Subdivision 3 provides the eligibility criteria for the program.  The individual must (1) be 18 years or older, (2) be enrolled in medical assistance, (3) have a need for the services based on an assessment, (4) reside in or plan to reside in a community-based setting, and (5) have evidence of unstable housing.

Subdivision 4 specifies the methods in which the assessment of functional need must be conducted. 

Subdivision 5 defines the services provided under the program, which include housing transition services and housing and tenancy sustaining services.

Subdivision 6 specifies provider eligibility.

Section 15 (256B.0911, subd. 3a) amends long-term care consultation services, by requiring that at the time of reassessment, the certified assessor shall offer the person the option to receive alternative housing and service options, under certain circumstances.

Section 16 to 18 (256B.0915, subd. 1, 256B.092, subd. 4, 256B.49, subd. 11) requires the commissioner to comply with the requirements in the federally approved transition plan for the home and community-based services and elderly waivers.

Section 19 (256B.49, subd. 15) strikes outdated language.

Section 20 (256B.4913, subd. 7) specifies that a new service added to section 256B.4914, (home and community-based services waivers; rate setting) after January 1, 2014, is not subject to rate stabilization adjustment in this section.

Section 21 to 24 modify 256B.4914, the home and community-based services waivers; rate setting section of law

Section 21 (256B.4914, subd. 3) adds individualized home supports to the applicable services in the home and community-based services waivers section of law.

Section 22 (256B.4914, subd. 5) establishes a base wage index for individualized home supports services staff.

Section 23 (256B.4914, subd. 8) adds individualized home supports to the statute determining payments for unit-based services with programming.

Section 24 (256B.4914, subd. 16) provides that the service rate under section 22 is not subject to budget neutrality adjustments.

Sections 25 to 27 amend the statute related to adult foster care planned closures.

Section 25 (256B.493, subd. 1) modifies the commissioner s duties. The commissioner has the authority to manage statewide licensed corporate foster care or community residential settings capacity, including the reduction and realignment of current foster care or community residential settings to accomplish the consolidation or closure of settings.

Section 26 (256B.493, subd. 2) requires the commissioner to use a resource need determination process, managed at the state level, to align capacity where needed. 

Section 27 (256B.493, subd. 2a) is a new subdivision specifying the closure process.  The commissioner shall work with stakeholders to establish a process for setting closures.  This section lists what the closure plan must include.

Sections 28 and 29 (256D.44, subds. 4 and 5) modify the Minnesota supplemental aid program by increasing the income supplement for individuals who are in need of housing assistance. This section also expands the eligibility for this supplement to individuals who are relocating from group residential housing and individuals who are eligible for personal care assistance services, and strikes paragraph (g), which expired June 30, 2016.

Sections 30, 32, 33, 35, 36, 37, 38, 39, 43, and 46 are technical; “group residential housing” is being changed to “housing support services.”  There are several sections that change this terminology.

Section 31 (256I.04, subd. 1) expands the eligibility for GRH to individuals who receive licensed residential crisis stabilization services and medical assistance. The individual may receive concurrent GRH payments when receiving crisis stabilization services.

Section 34 (256I.04, subd. 3) amends an existing moratorium exception on the development of group residential housing beds by adding another 36 beds for supportive housing units in Anoka, Dakota, Hennepin, or Ramsey County for homeless adults defined in this section.

Section 40 (256I.05, subd. 1p) adds a supplementary services rate not to exceed $700 per month for a housing support provider (GRH) in St Louis County.

Section 41 (256I.05, subd. 1q) adds a supplementary services rate not to exceed $750 per month for a housing support provider (GRH) in Olmstead County.

Section 42 (256I.05, subd. 1r) adds a supplementary services rate not to exceed the maximum rate in subd 1a for a housing support provider (GRH) in Anoka County.

Section 44 (256I.05, subd. 11) modifies the group residential housing (GRH) chapter of law by establishing an alternative financing mechanism for existing emergency shelter beds, based on a plan submitted by the county and approved by the commissioner. The Commissioner of Human Services is required to make a cost-neutral transfer of funding from the GRH fund to the county  for emergency shelter beds removed from the GRH census.  The county must submit a biennial plan by August 1, beginning in 2017, which describes outcomes, efficiencies, eligibility, and quality assurance.  The funding may be used for room and board or supplemental services.  

Section 45 (256I.05 , subd. 12) provides that for every provider with a supplementary services rate over $300, the commissioner shall reduce by 5% the difference between the total supplementary rate in effect 7/1/17, and $300, and decrease by 10% the difference between the total supplementary service rate in effect 7/1/19, and $300. 

Section 47 (256I.06, subd. 8) adds a new paragraph (c) specifying that the GRH rate for an individual who receives licensed residential crisis stabilization services is calculated so the state pays the full room and board rate.

Section 48 (256I.09) requires the commissioner to award grants to agencies through the annual competitive process for:  (1) outreach to locate and engage people who are homeless or residing in segregated settings to screen for basic needs and assist with a referral to community living resources; (2) build capacity to provide technical assistance on housing and support service resources, and (3) streamline the administration and monitoring of activities related to housing support funds.

Section 49 is a revisor instruction changing “group residential housing” to “housing support services.”

Article 3 – Continuing Care

Section 1 (144.0724, subdivision 4) clarifies existing law by making explicit in state statute the federal requirements with respect to the frequency of change in status assessments for residents of nursing homes.

Section 2 (144.0724, subdivision 6) reduces the threshold at which facilities may apply for a reduction in their penalty for late or nonsubmission of resident assessments, and also reduces the length of time during which the facilities are penalized.

Section 3 (144A.071, subdivision 4d) modifies the date for nursing facility property rate changes related to consolidation projects to the first January or July following both the completion of the upgrades in the remaining facility or the closure of the other facility.

Section 4 (245D.03, subdivision 1) adds individual community living supports to the range of services governed by the home and community-based licensing standards under Minnesota Statutes, chapter 245D.

Section 5 (256.975, subdivision 7) modifies the services the Senior Linkage Line must provide to ensure that older adults are properly referred for counseling regarding the new self-directed caregiver grant program.

Section 6 (256.975, subdivision 12) establishes a new self-directed caregiver grant program to provide assistance to family care-givers who help older adults age in place.

Section 7 (256B.0911, subdivision 3a) allows persons being assessed for adult day services to grant permission for their current or proposed service provider to submit to the certified assessor the provider’s nursing assessment and recommendations concerning the person’s care needs.  If a provider submits its nursing assessment and recommendations for a person being assessed for elderly waiver services, then the provider must receive a draft of the assessment, be allowed to submit additional information before the assessment is final, and receive a copy of the final community support plan, case mix level and Residential Services Workbook.

In addition, this section permits an eligibility update 90 days after the last face-to-face assessment under the alternative care program, the elderly waiver, and the disability waivers.

Section 8 (256B.0915, subdivision 1) makes a structural change to statute.

Section 9 (256B.0915, subdivision 3a) specifies that if a legislatively authorized rate increase for home and community-based services is service-specific, then the way this increase will be applied to the monthly cost limits under the elderly waiver is by increasing each monthly cost limit by the percent increase in spending for the program that is affected by the service-specific rate increase.

In addition, this section aligns the date of future increases in the monthly cost limits for elderly waiver services with the date on which nursing facility rate increases are effective.

Section 10 (256B.0915, subdivision 3e) modifies the language governing the payment rates for customized living services under the elderly waiver by adding, effective January 1, 2022, a cognitive and behavioral needs factor.  This section also aligns the date of future increases in the individualized service rate limits for customized living services with the date on which nursing facility rate increases are effective.

Section 11 (256B.0915, subdivision 3h) aligns the date of future increases in the individualized service rate limits for 24-hour customized living services with the date on which nursing facility rate increases are effective.

Section 12 (256B.0915, subdivision 5) amends the language governing change in status assessments for elderly waiver recipients by specifying the criteria for an assessment, who may request an assessment, and the timing of the assessment.

Section 13 (256B.0915, subdivision 11) specifies that the rate methodology under 256B.0915, subdivision 12 to 256B.0915, subdivision 16 applies to the following services and programs:

(1) Elderly waiver

(2) Elderly waiver customized living

(3) Alternative care

(4) Essential community supports

(6) CADI waiver customized living

(7) BI waiver customized living

(8) Elderly waiver foster care

(9) Elderly waiver residential care

Section 14 (256B.0915, subdivision 12) provides for a phase-in of the new EW rates beginning January 1, 2018. The phase in is as follows:

(1) a blended rate between January 1, 2018 and December 31, 2019 consisting of 12 percent of the new rate and 88 percent of the old rate;

(2) a blended rate between January 1, 2020 and December 31, 2021 consisting of 20 percent of the new rate and 80 percent of the old rate; and

(3) 100 percent of the new rate beginning January 1, 2022.

Section 15 (256B.0915, subdivision 13) specifies the data sources that will be used to set the wage and component value rates under the proposed rate methodology and outlines the factors included in the methodology.

Section 16 (256B.0915, subdivision 14) specifies the base wage calculations for all the services affected by this rate methodology under the services and programs listed in Minnesota Statutes, section 256B.0915, subdivision 11.

Section 17 (256B.0915, subdivision 15) specifies how each of the factors outlined in subdivision 13 are calculated.

Section 18 (256B.0915, subdivision 16) specifies how the total payment rate is calculated for each of the services available under the programs listed in section 256B.0915, subdivision 11.

Section 19 (256B.0915, subdivision 17) requires the commissioner, in consultation with stakeholders, to study the appropriateness and effect of the rates established under sections 256B.0915, subdivision 12 to 256B.0915, subdivision 15, and make recommendations to the legislature by January 1, 2019.

Section 20 (256B.0922, subdivision 1) increases from $400 to $600 the monthly limit for essential community supports, and adds respite care and companion services to the list of services available under the essential community supports program.

Section 21 (256B.431, subdivision 10) modifies the date for nursing facility property rate changes related to construction projects to the first January or July following the completion of the construction project and the submission of the provider’s rate adjustment request.

Section 22 (256B.431, subdivision 16) modifies the date for nursing facility property rate changes related to major additions or facility replacements to the first January or July following the completion of the addition or replacement.

Section 23 (256B.431, subdivision 30) limits to just twice a year the effective date of property rate adjustments resulting from bed layaway or bed delicensure.

Section 24 (256B.434, subdivision 4) strikes obsolete language, thereby clarifying that the inflationary adjustments apply only to the property rate and not to the other rates that were extensively modified in 2015 and recodified in 2016 as Minnesota Statutes, chapter 256R.

This section also specifies that the next property rate inflation adjustment will be delayed until January 1, 2019.

Section 25 (256B.434, subdivision 4f) limits to just twice a year the effective date of property rate adjustments resulting from certain construction projects.

Section 26 (256B.50, subdivision 1b) clarifies that nursing facilities have 60 days from the publication of rates to file an appeal of their rates.

Section 27 (256B.5012, subdivision 3a) modifies the conditions under which an intermediate care facility for persons with disabilities can be reimbursed for therapeutic leave days.  Under current Department of Human Services rules, a facility cannot be paid for any therapeutic leave days if the facility has more than 30 vacant bed days in a calendar year.

Section 28 (256R.04, subdivision 4) clarifies which forms of insurance are administrative costs and which are fringe benefit costs.

Section 29 (256R.02, subdivision 18) clarifies that the employer health insurance cost category includes the actual expenses incurred by self-insured plans for reinsurance and clarifies the definition of a full-time employee.

Section 30 (256R.07, subdivision 6) permits electronic signatures on documents submitted to the commissioner for the purposes of setting nursing facility rates.

Section 31 (256R.10, subdivision 7) gives the commissioner the authority, after consulting with stakeholders, to determine the cost category for cost items or services not otherwise categorized.

Section 32 (256R.18) requires the commissioner beginning January 1, 2019 to submit to the legislature a biennial report on the effectiveness of the new value-based reimbursement system.

Section 33 (256R.37) removes the requirement that registered nurses, licensed practical nurses, or nursing assistants who receive scholarships must be recent graduates.

Section 34 (256R.40, subdivision 5) limits to just twice a year the effective date of planned closure rate adjustments.

Section 35 (256R.41) limits to just twice a year the effective date of single-bed room incentive rate adjustments.

Section 36 (256R.47) extends for an additional two years the existing suspension of the rate adjustment for critical access nursing facilities.

Section 37 (256R.49) establishes a rolling two-year expiration of rate increases for compensation-related costs for minimum wage changes.

Section 38 (Direction to the Commissioner; Adult Day Services Staffing Ratios) requires the commissioner to study existing staffing ratio requirements for adult day services and make recommendations to the legislature by January 1, 2018.

Section 39 [Revisor’s instruction] requires nonpartisan legislative staff and the Department of Human Services to propose a recodification of the language governing the elderly waiver.

Article 4 - Health Care

Section 1 (3.972 subd. 2a) requires the legislative auditor to audit each managed care organization that contracts with the Commissioner of Human Services to provide services under sections 256B.69, 56B.692, and 256L.12.

Section 2 (13.68, subdivision 1) permits the Department of Public Safety to share social security numbers, which are otherwise classified as private government data of the Department of Public Safety, with the Department of human services for the purposes recovering medical assistance benefits provided to medical assistance recipients injured in motor vehicle accidents.

Section 3 (62U.02) Subdivision 1 requires the Commissioner of Health to establish statewide measures for use by health plan companies that assess the quality of health care services offered by health care providers.  Requires that the statewide measures must (1) for the purposes of assessing the quality of care provided at physician clinics, be selected from the available measures as defined in federal regulations, unless the stakeholders determine that a particular diagnosis, condition, service, or procedure is not reflected in any of the available measures in a way that meets identified needs; (2) be based on medical evidence; and (3) be developed through a process in which providers participate in and consumer and community input and perspectives are obtained.

This subdivision also requires the commissioner to develop a measurement framework by June 30, 2018, that identifies the most important elements for assessing the quality of care, articulates statewide quality improvement goals, ensures clinical relevance, fosters alignment with other measurement efforts, and defines the roles of stakeholders.  By December 15, 2018, the commissioner must use the framework to update the statewide measures used to assess the quality of health care services offered by health care providers, including providers certified as health care homes.  The commissioner shall develop the framework in consultation with the stakeholders and must review the framework at least once every three years.

Subdivision 3 requires the commissioner to issue periodic public reports on trends in provider quality at the statewide, regional, and clinic levels.  This subdivision also requires physician clinics and hospitals to submit standardized information for the identified statewide measures to the commissioner in the formats specified by the commissioner or the commissioner’s designee which must include alternative formats for clinics or hospitals experiencing technological or economic barriers to submission in standardized electronic form.  The commissioner shall ensure that any quality data reporting requirements for physician clinics are aligned with the specifications and timelines for the selected measures and may develop additional data on race, ethnicity, preferred language, country of origin, or other sociodemographic factors.  None of the statewide measures selected shall require providers to use an external vendor to administer or collect data.

Section 4 (62V.05, subd. 12) removes the requirement that the MNsure Board provide the legislature with copies of certain agreements.

Section 5 [256.01, subdivision 18f] requires the commissioner of human services to implement an Asset Verification System to verify the assets of persons who are blind, persons age 65 and older, and persons with disabilities applying for or renewing benefits under medical assistance.

Section 6 (256.01, subd. 41) removes the requirement that the Commissioner of Human Services provide the legislature with copies of certain agreements.

Section 7 (256.969, subdivision 2b) delays the next hospital rebasing for 4 years.

Section 8 [256.969, subdivision 2e) creates a contingent alternative payment rate for children’s hospitals that is retroactive to rate years beginning on or after January 1, 2015.

Paragraph (a) specifies a trigger for the calculation of an alternative payment rate for children’s hospitals.  The trigger is any requirement that the days, costs, and revenue associated with MA-eligible patients who also have private health insurance be included in a children’s hospital’s disproportionate share hospital (DSH) payment limit.  If these days, costs, and revenue are included, then the commissioner must calculate the alternative payment rate described in paragraph (b), compare the alternative rate to the DSH rate, and reimburse the children’s hospital at the higher rate.

Paragraph (b) specifies the alternative rate, prohibits a children’s hospital from receiving payments under both the alternative rate and the DSH rate, and directs the commissioner to consider the interaction of the alternative rate and inflation adjustments whenever hospital rates are rebased.

Section 9 (256B.969, subdivision 4b) requires children’s hospitals to submit annual medical assistance cost reports within six months of the end of the hospital’s fiscal year.

Section 10 (256B.0371) requires the commissioner to contract with up to two dental administrators to administer dental services for all recipients of medical assistance and MinnesotaCare.

Section 11 (256B.04, subdivision 21) updates and clarifies provider enrollment, reenrollment, and revalidation requirements for medical assistance and MinnesotaCare providers.

Section 12 (256B.04, subdivision 22) updates the personal care assistance revalidation process to require revalidation at least every three years.

Section 13 (256B.055, subd. 2) provides medical assistance to any child who is not title IV-E eligible, but who is determined eligible for foster care or kinship assistance under chapter 256N.

Section 14 (256B.0621, subd. 10) allows medical assistance reimbursement for interactive video for relocation case management services, that helps recipients gain access to needed services and supports if they choose to move from an institution to the community.

Section 15 (256B.0625, subdivision 7) eliminate a cross-reference to the home care nursing interpreter-communicator service which is being repealed.

Section 16 (256B.0625, subd. 20) modifies the mental health case management section of law to allow medical assistance reimbursement for contact by interactive video, that meet the requirements of section 256B.0625, subdivision 20b.

Section 17 (256B.0625, subd. 20b) adds a new subdivision creating a new benefit under the medical assistance chapter for mental health targeted case management through interactive video.

Section 18 (256B.0625, subd. 56a) allows medical assistance to cover post arrest community- based service coordination for an individual who has been identified as having a mental illness or substance abuse; does not require the security of a public detention facility and is not considered an inmate of a public institution; meet eligibly requirements in section 256b.056; and has agreed to participate in postarrest community-based service coordination through a diversion contract in lieu of incarceration.  Specifies that the nonfederal share of cost for postarrest community-based service coordination services shall be provided by the recipient’s count of residence.

Section 19 (256B.0625, subd. 57) excludes from Medicare part B crossover claims limit to the medical assistance total allowed payments to Indian Health Services.

Section 20 (256B.0625, subd. 64) authorizes the coverage of stiripentol by the EPSDT program under certain conditions.

Section 21 (256B.0659, subdivision 21) requires personal care assistance provider agencies to maintain bonds and insurances for each practice location and adds authorizes the commissioner to deny medical assistance payments during times of non-compliance with the bond and insurance requirements or to suspend and terminate providers who display patterns of noncompliance with the bond and insurance requirements.

Section 22 (256B.072) modifies the measures used for the performance reporting system for inpatient hospitals by requiring that the measures used are consistent with the statewide measures under section 62U.02, subd.1.

Section 23 (256B.0755, subd. 1) changes terminology from “health care delivery systems” to “integrated health partnerships” or IHPs.

Section 24 (256B.0755, subd. 4) specifies that the payment system for IHPs must include a population-based payment that supports care coordination services for enrollees served by the IHP and is risk adjusted to reflect varying levels of care coordination intensiveness.  Specifies that the payment must be a per-member per-month payment paid at least on a quarterly basis and specifies that IHPs that receive this payment must continue to meet cost and quality metrics in order to maintain eligibility for the population-based payment.

Section 25 (256B.0755, subd. 9) states that the commissioner may authorize an IHP to provide financial incentives for patients to see a primary care provider for an initial health assessment; maintain a continuous relationship with a primary care provider; and participate in ongoing health improvement and coordination of care activities.

Section 26 (256B.0924, subd. 4a) allows medical assistance reimbursement for interactive video contact for targeted case management for vulnerable adults and adults with developmental disabilities.  This section also sets the parameters for contact by interactive video for targeted case management.  Interactive video is subject to federal approval, and is allowed if the requirements are met.

Section 27 (256B.69, subd. 9e) modifies the current financial audit language for managed care organizations by adding a cross reference to section 3.972, subd.2b.

Section 28 (256B.76, subd. 1) reduces the payment rates by 2.3 percent for physician and professional services provided on or after July 1, 2017, through June 30, 2019, and by 3.0 percent for services provided on or after July 1, 2019.

Section 29 (256B.76, subd. 2) increases payment rates for dental services provided on or after July 1, 2017, by 25 percent.

Section 30 (256B.7635) specifies for services provided on or after January 1, 2018, prenatal and postpartum follow-up home visits provide by public health nurses or registered nurses using evidence-based models. The payment shall be a minimum of $140 per visit.

Section 31 (256B.766) reduces the payment rates by 2.3 percent for basic care services provided on or after July 1, 2017, through June 30, 2019, and by 3.0 percent for services provided on or after July 1, 2019.

Sections 32 to 35 make changes in the MinnesotaCare program to conform to federal requirements and current practices.

Section 32 (256L.03, subd. 1) clarifies that a child means an individual younger than 19 years of age.

Section 33 (256L.03, subd. 1a) removes coverage for individualized education program (IEP) services from MinnesotaCare coverage.

Section 34 (256L.03, subd. 5) updates the cost-sharing by removing references in place prior to 2015, expands the definition to include co-insurance and deductibles, and replaces a reference that exempts American Indians from cost-sharing.

Section 35 (256L.15, subd. 2) replaces the premium table to reflect the legislative changes enacted in 2015.

Section 36 delays part of the capitation payment to managed care plans and county-based purchasing plans due in April 2019, and all of the payment due in May 2019, and the payment due in April 2019 for special needs basic care until July 1, 2019.  This section also delays the capitation payment due in April 2021 and May 2021 and the payment due in April 2021 for special needs basic care until July 1, 2021.

Section 37 requires the Commissioner of Human Services to seek federal approval to implement case management via interactive video contact.

Section 38 establishes a legislative commission to study and make recommendations on issues relating to the competitive bidding process and procurement process for the medical assistance and MinnesotaCare contracts with managed care plans and county-based purchasing plans for nonelderly, nondisabled adults and children.

Section 39 is a Revisor’s instruction requiring the Revisor to change the term “health care delivery system” to “integrated health partnership” where it appears in section 256B.0755.

Section 40 (Repealer) repeals the annual review for personal care assistance provider agencies and the home care nursing interpreter-communicator service.

Article 5 Health Insurance

This article makes a number of changes to private health coverage in the individual and small group markets.  This article also requires a nonprofit health care entity before entering into a conversion transaction to notify the attorney general and requires the attorney general to approve of the transaction.  This article also makes several minor clean up changes to SF 1 (premium subsidy program).

Section 1 (62A.04, subd. 1) specifies that certain required standard policy provisions when referenced in other sections do not apply to accident and sickness or accident and health insurance that are health plans.

Section 2 (62A.21, subd. 2a) specifies that continuation of coverage only applies to a former spouse who was covered on the insured’s health plan on the day before entry of a valid divorce decree.

Section 3 (62A.65, subd. 2) clarifies that a health carrier may refuse to renew an individual health plan for the intentional misrepresentation of a material fact.  This section also states that a health carrier may elect to discontinue health plan coverage of an individual in the individual market, but only under one of these situations:

1.    the health carrier is ceasing to offer individual health plan coverage in the individual market;

2.    the individual no longer resides, lives, or works in the service area of the health carrier, or the area for which the health carrier is authorized to do business, but only if coverage is terminated uniformly without regard to any health status-related factors of covered individuals; or

3.    a decision by a health carrier to discontinue offering a particular type of individual health plan if the carrier provides notice in writing to each individual at least 90 days before the date coverage is to be discontinued;  provides notice to the Commissioner of Commerce at least 30 business days before the health carrier gives notice to the individuals; offers each covered individual the option to purchase another individual health plan currently being offered by the health carrier or related health carrier for individuals in that market; and acts uniformly without regard to any health status-related factor of covered individuals or dependents who may become eligible for coverage.

Section 4 (62A.65, subd. 2a) Paragraph (a) permits a health carrier to modify a health plan for a product as defined under the ACA offered to an individual in the individual market at the time of coverage renewal of the modification is effectively uniform for all individuals with that product.

Paragraph (b) specifies that modifications made uniformly and solely pursuant to applicable federal or state requirements are considered a uniform modification of coverage if the modification is made within a reasonable time period and is directly related to the imposition or modification of the requirement.

Paragraph (c) specifies that other modifications may also be made if the product is offered by the same health carrier; the product is offered as the same product network type; the product continues to cover at least a majority of the same service area; within each product the plan has the same cost-sharing structure as before the modification, except for any variation solely related to changes in cost and utilization of medical care or to maintain the same metal level; and the provider provides the same covered benefits, except for any changes in benefits that cumulatively impact the plan adjusted index rate.

Section 5 (62A.65, subd. 5) states that beginning January 1, 2017, a health carrier no longer is required to offer an individual health plan to an individual who was previously covered under a group health plan issued by that health carrier.

Section 6 (62D.105, subd. 1) specifies that an health maintenance organization (HMO) only has to provide coverage to an enrollee’s dependent children and former spouse who was covered on the day before the entry of a valid divorce decree.

Section 7 (62D.105, subd. 2) clarifies the definition of dependent children.

Section 8 (62E.04, subd. 11) clarifies that any policy of accident and health insurance subject to the requirements of the ACA, the requirements of this section do not apply.

Section 9 (62E.05, subd. 1) clarifies that any policy of accident and health insurance subject to the requirements of the ACA do not have to certify whether the plan is a #1, #2, or #3 coverage plan.

Section 10 (62E.06, subd. 5) clarifies that the requirements for qualified plans do not apply to any policy of accident and health insurance subject to the requirements of the ACA.

Section 11 (62Q.18, subd. 7) states that beginning January 1, 2017, a health plan company is no longer required to offer continuous coverage to an individual who maintains continuous coverage and who qualifies under the group’s eligibility requirements.

Section 12 (62Q.575, subd. 1) requires a health plan company to contract with a primary care provider as an in- network provider if the provider is certified as a health care home or is in the process of becoming certified as a health care home.

Subd. 2 prohibits a health plan company from imposing a co-payment or fee or other cost-sharing requirement for selecting or designating a primary care provider of the enrollee’s choosing, unless the health plan company imposes the same cost-sharing requirements or fees upon an enrollee’s selection or designation on any of the health plan company’s primary care providers.

Subd. 3 requires the provider contract to include a care coordination payment in addition to the payment rate for the covered services provided by the primary care provider, and prohibits the health care company from imposing a co-payment, fee, or other cost-sharing requirement on care coordination services.

Subd. 4 requires the health plan company to provide notice to enrollees of the provisions of this section.

Subd. 5 defines primary care provider.

Subd. 6 specifies that this section only applies to individual health plans and does not apply to the public health care programs.

Subd. 7 specifies that the Commissioner of Health enforces this section.

Section 13 (62Q.678) requires a health plan company that actively markets an individual health plan to offer in each county at least one individual health plan with a provider network that includes in network access to more than a single health care provider system or a health plan that includes more than one primary care location in each county.

Sections 14 to 16 establish the notification and approval requirements for nonprofit health care entities conversion transactions.

Section 14 (317A.811, subd.1) specifies that a health maintenance organization (HMO) and a service plan corporation  are required to notify the attorney general of their intent to dissolve, merge, or consolidate or to transfer all or substantially all of their assets.

Section 15 (317A.811, subd.1a) specifies that a HMO and a service plan corporation are subject to notice and approval requirements for certain transactions under section 317A.814.

Section 16 (317A.814) establishes nonprofit health care entity conversion notification and approval requirements.

Subdivision 1 defines the following terms:  commissioner; conversion benefit entity; conversion transaction; family member; nonprofit health care entity; public benefit assets; and related organization.

Subdivision 2 prohibits a nonprofit entity from entering into a conversion transaction if a person who has been an officer, director or other executive of the nonprofit health care entity, or a related organization or a family member of that person; (1) has or will receive any compensation or other financial benefit in connection with the conversion transaction; (2) has or will hold an ownership stake, stock, securities or other financial interest in or receive any type of financial benefit from any entity in which the nonprofit health care entity transfers public benefit assets in connection with a conversion transaction; or (3) has or will hold an ownership stake or other financial interest in or receive any financial benefit  from any entity that has or will have a business relationship with an entity to which the nonprofit health care entity transfers public benefit assets in connection with a conversion transaction.

Subdivision 3 requires a nonprofit health care entity to notify the Attorney General before entering into a conversion transaction and include as part of the notification, an itemization of the entity’s public benefit assets and the valuation the entity attributes to those assets, a proposed plan for distribution of those assets to a conversion benefit entity, and other information the Attorney General considers necessary for review of the proposed transaction. Requires the Attorney General to approve the transaction.  Requires a copy of the notice and the information required with the notice to be provided to either the Commissioner of Health or commerce.

Subdivision 4 outlines the elements that the Attorney General must consider in making a decision to approve or disapprove a conversion transaction.  Requires the Attorney General to consult with either the Commissioner of Health or commerce in making this decision.

Subdivision 5 specifies the requirements that an entity must meet to be considered a conversion benefit entity for purposes of accepting assets from a nonprofit health care entity as part of a conversion transaction.

Subdivision 6 authorizes the attorney general to solicit public comment regarding the proposed conversion transaction.

Subdivision 7 requires the Attorney General to notify the nonprofit health care entity in writing of its decision to approve or disapprove the transaction within 150 days of receiving notice of the transaction.  Requires the Attorney General to include the reason for a decision not to approve the transaction, and permits the Attorney General to extend the period for an additional 90 days if needed to obtain additional information.

Subdivision 8 requires the nonprofit health care entity to transfer the entirety of the full and fair value of its public benefit assets to one or more conversion benefit entities as part of the transaction if the proposed conversion transaction is approved or conditionally approved.

Subdivision 9 requires the nonprofit health care entity or conversion benefit entity to reimburse the attorney general or a state agency for all reasonable and actual costs incurred by the attorney general or a state agency in reviewing a proposed conversion transaction.

Subdivision 10 requires a conversion benefit entity to submit an annual report to the Attorney General that contains a description of its charitable activities related to the use of the public benefit assets received under an approved transaction.

Subdivision 11 states that a conversion transaction entered into in violation of this section is null and void and the attorney general has the authority to bring an action to unwind a conversion transaction entered into in violation of subdivision 2.

Subdivision 12 states that this section does not affect any power or responsibility of a health maintenance organization, service plan corporation, a conversion benefit entity, the attorney general, or the commissioner under chapter 62C, 62D, 317A, 501B or other law.

Sections 17 to 24 make a number of minor clarifications and clean up to SF1.

Section 17 clarifies the definition of an eligible individual in SF1as a Minnesota resident who is not receiving an advanced premium tax credit in a month in which their overage is effective.

Section 18 clarifies in SF1 that the legislative auditor may maintain not public government data on an enrollee or health carrier required for the audits may be maintained for a longer period of time then stated in order to comply with generally accepted government auditing standards.

Section 19 adds a data sharing subdivision to SF1 that requires the commissioner of human services and the executive director of MNsure to disclose to the commissioner of management and budget data on public program coverage enrollment and data on an enrollee’s receipt of an advanced premium tax credit.  This subdivision also requires the commissioner of management and budget to disclose data to health carriers on enrollees’ enrollment in public program coverage to the extent it is necessary to determine eligibility for the premium subsidy program.   Specifies that the data disclosed may only be used for the purpose of the administration of the premium subsidy program.

Section 20 clarifies in SF1 that the commissioner of management and budget must consult with the commissioners of health and commerce and human services to develop and implement a process to recover from health carriers the amount of premium subsidies received by an enrollee determined to be ineligible for the subsidy.

Section 21 clarifies the sunset date for SF1 article 1.

Section 22 clarifies in SF1 the dates in which the appropriations are available. 

Section 23 clarifies that the unauthorized provider services section passed in SF1 does not apply to the public health care programs.

Section 24 modifies the effective date for the unauthorized provider services section passed in SF1 to January 1, 2019.

Article 6 - Direct Care and Treatment

Section 1(253B.10, subd. 1) provides that, regardless of when the 48-hour time period expires, a regional treatment center is not required to admit a patient after 12:00 pm on Friday and before 8:00 am on Monday.

Section 2 (253B.22, subd. 1) imposes term limits on the members of the review board under the civil commitment act.

Section 3 requires the commissioner to review alternatives to state-operated group homes housing one person, and report back to the legislative committees having jurisdiction over human services issues by January 15, 2018.

Article 7 – Children and Families

Section 1 (13.32, subd. 12) amends the education data statute to establish a process under which the community services system may request access to education data in order to coordinate services for a student or family. 

Sections 2 and 3 (13.46, subds. 1 and 2) amend the welfare data statute.  The definitions of “program” and “welfare system” are expanded to include Native American tribe programs that provide a service component of the community services system.  In addition, public health agencies, veteran services agencies, and housing agencies are included. Section 3 allows data on individuals to be disclosed to the chief administrative officer of a school or a county correctional agency to coordinate services.

Section 4 (13.84, subd. 5) amends the court services data statute to allow the disclosure of data to county personnel within the welfare system.

 Sections 5 to 20, 22 to 33, and 35 (119B.011, subds. 15b and 19C, 119B.02, subd. 5, 119B.09, subd. 9a, 119B.097, 119B.125, subds 4 and 6, 119B.13, subd. 1, 119B.13, subd. 6, 119B.16, subds. 1, 1a, 1b, 1c, 3, 4, 119B.161, 245E.01, subd. 6a, 245E.02, subds. 1, 3, 4, 245E.03, subd. 2, 4, 245E.04, 245E.05, subd. 1, 245E.06, subds. 1, 2, and 3, 245E.07, subd. 1, 256.98, subd. 8) implement the Child Care Assistance Program integrity budget item.

Section 21 (245A.50, subd. 5) exempts from the sudden unexpected infant death and abusive head trauma training relatives of the license holder caring for the license holder’s infant or child.

Section 34 (252.27, subd. 2a) reduces the parental contribution for TEFRA services by 13 percent.

Section 36 (256E.30, subd. 2) modifies the funding formula allocating funds to community action agencies.

Section 37 (256J.24, subd. 5) increases the MFIP cash portion by $13 per month.

Sections 38 and 40 (256J.45, subd. 2, 256P.06, subd. 2) amend the exempted individuals for purposes of the Minnesota family investment program and child care assistance, by excluding the income of a new spouse for 12 consecutive months from the date of the marriage certificate, provided the combined income of the family does not exceed the respective program income caps.

Section 39 (256N.261) codifies a program to reduce the need for out-of-home placements or changes in those arrangements, that will provide services, to the extent that federal funds are available, which include: (1) providing information, referrals, peer support for youth, respite care, crisis services, and mental health services; (2) training for adoptive and kinship families, and additional training for foster families on the effects of trauma, and common disabilities of adopted children and children in foster care; and (3) periodic evaluations of the services to ensure program effectiveness.

Section 41 (260C.451, subd. 6) modifies the juvenile safety and placement chapter, specifically the foster care benefits section of law relating to young adults who are 18 to 21 years of age who ask to reenter foster care.  This section requires that the state fund, and the social services agency provide, services to increase the young adults’ ability to live safely and independently, and develop a plan for the young adults.  New language expands these services to young adults who left foster care six months prior to their 18th birthday.

Section 42 (626.556, subd. 10j) amends the Child Maltreatment Reporting Act to require an agency responsible for providing child protective services to provide relevant data to a mandated reporter who made a report (current law is limited to the agency responsible for assessing or investigating the report).

Section 43 establishes the Minnesota Birth to Eight Pilot project, which requires the Commissioner of Human Services to award a grant to Dakota County to develop and implement the pilot from July 1, 2017, to June 30, 2021.   The pilot will track the developmental milestones of children of the program participants.  The program participants must be enrolled in WIC, participating in a home visit plan, qualify as early language learners, and voluntarily participate in the pilot.  The final report is due January 1, 2022.

Section 44, allows the Commissioner of Human Services to develop the Minnesota Pathways to Prosperity pilot project, to test an alternative financing model that will reduce the historical separation between the state funds and systems affecting families who are receiving public assistance.  The pilot shall eliminate, where possible, funding restrictions to allow a more comprehensive approach to the needs of families.  Subdivision 3 specifies the program participants, who are individuals 26 years of age or younger with a minimum of one child, voluntarily agree to participate in the pilot, eligible for or receiving  public benefits, and enrolled in an education program that is focused on obtaining a career that will likely result in a livable wage.  Subdivision 4 specifies the pilot outcomes.

Section 45 repeals the current statute dealing with data sharing within counties, which would be replaced by the new data sharing authorized in the amendment, and repeals the subdivision for MFIP innovation projects.

Article 8

Chemical and Mental Health Services

Section 1, subdivision 1 (245.4662) defines terms.

Subdivision 2 requires the commissioner to award grants to eligible applicants to plan, establish, or operated programs to improve accessibility and quality of community-based, outpatient mental health services.

Subdivision 3 requires the applicant to submit an application by October 31, 2017, and by October 31 thereafter. This subdivision specifies what the application must contain.  In determining whether applicants receive grants, the commissioner shall give preference to applications with the four factors listed in paragraph (d).

Subdivision 4 requires the commissioner to notify grantees by December 15, and disperse grants by January 1.

Section 2 (245.4889, subd. 1) allows the children’s mental health grants to be used for start-up funds to establish new childrens’ mental health programs to support providers to meet all program requirements and begin operations, and for transportation to school-linked mental health services.

Sections 2 and 5 (245A.03, subd. 2, 245A.191) update terminology to refer to substance use disorder and insert cross-references to the new substance abuse in Minnesota Statutes, chapter 245G.

Section 4 (245A.03, subd. 7) prohibits the commissioner from issuing a license for children’s residential treatment services that the Centers for Medicare and Medicaid Services would consider an institution for mental diseases.

Sections 6 to 28 (245G.01, 245G.02, 245G.03, 245G.04, 245G.05, 245G.06, 245G.07, 245G.08, 245G.09, 245G.10, 245G.11, 245G.12, 245G.13, 245G.14, 245G.15, 245G.16, 245G.17, 245G.18, 245G.19, 245G.20, 245G.21, 245G.22, 254A.01) establish the standards for the substance use disorder services.  A majority of the language in these sections is existing rule, and is being codified in this new chapter.  New language in section 12 includes the expansion of services, which are peer recovery support services and care coordination, subject to federal approval.  Also, the existing provisions related to opioid treatment programs are consolidated in this chapter in section 27.

Sections 29 to 42 amend the treatment for alcohol and drug abuse chapter of law.

Sections 29 to 32 (254A.02, subds. 2, 3, 5, 6,) update terminology and strike obsolete references.

Section 33 (254A.02, subd. 6a) adds a new subdivision defining the term “substance misuse.”

Sections 34-35 (254A.02, subds. 8 and 10) update terminology.

Section 36 (254A.02, subd. 10a) adds a new subdivision defining the term “substance use disorder.”

Section 37 (254A.03) updates the statute delegating authority to the alcohol and drug abuse section in DHS, by incorporating the new services and updating terminology.  Subdivision 3 of this section also specifies that upon federal approval of a comprehensive assessment as a Medicaid benefit, an eligible vendor may determine and approve the appropriate level of substance use disorder treatment for a recipient of public assistance. The commissioner shall develop and implement a utilization review process for publicly funded treatment placements to monitor and review the clinical appropriateness and timeliness of publicly funded placements in treatment.

Sections 38 to 41 (254A.035, subd. 1, 254A.04, 254A.08, 254A.09) update terminology and incorporates references to rule.

Section 42 (254A.19, subd.  3) clarifies that an eligible vendor may conduct a comprehensive assessment and approve treatment services, but the individual may access any enrolled provider that is licensed to provide the level of services authorized, including the provider who completed the assessment.

Sections 43 to 56 amend chapter 254B, the chemical dependency treatment chapter of law.

Section 43 (254B.01, subd. 3) updates terminology by changing “chemical dependency” to “substance use disorder.”

Section 44 (254B.01, subd. 8) defines the term “recovery community organization.”

Section 45 (254B.03, subd. 2) updates terminology and prohibits a vendor from requiring clients to use their public benefits to offset the cost of services paid under this section.  Clarifies that SNAP benefits belong to the client.

Sections 46 and 47 (254B.04, subds. 1, 2b) modify the chemical dependency fund services by striking obsolete language.

Section 48 (254B.05, subd. 1) provides that on July 1, 2018, or upon federal approval, whichever is later, licensed professionals in private practice and counties are eligible vendors of comprehensive assessment and assessment summary services, under new paragraphs (b) and (c), respectively.  The counties are also eligible providers of care coordination services. New paragraph (d) provides that on July 1, 2018, or upon federal approval, whichever is later, a recovery community organization is an eligible vendor of peer support services.

Section 49 (254B.05, subd. 1a) updates cross-references.

Section 50 (254B.05, subd. 5) requires the commissioner to establish rates for the eligible services under this section.  New eligible services include comprehensive assessments, care coordination, peer recovery support services, and withdrawal management services effective July 1, 2018, or upon federal approval, whichever is later. This section also updates references to the new chapter 245G.

Sections 51 to 56 (254B.051, 254B.07, 254B.08, 254B.09, 254B.12, subd. 2, 254B.13, subd. 2a) update terminology and references. Section 51 gives the commissioner the authority to apply for the federal waivers necessary to secure federal financial participation for substance use disorder services.

Section 57 (256B.0625, subd. 45a) adds a cross-reference to the new section of law establishing eligibility for PRTF and strikes obsolete language.

Section 58 (256B.0941) establishes the eligibility for the Psychiatric Residential Treatment Facilities (PRTF) for persons under 21 years of age, the services provided, the statewide per diem rate, and criteria for leave days.

Section 59 (256B.0943, subd. 13) amends the children’s therapeutic services and supports (CTSS) statute by striking a problematic reference to group homes, and adding a reference to PRTF.  This section allows up to 15 hours of CTSS provided within a six-month period in the locations listed in this section of law.

Sections 60 and 61 (256B.0945, subds. 2 and 4) modify provisions related to residential facilities for children with severe emotional disturbance. If the federal Centers for Medicare and Medicaid Services determine that these residential facilities are institutions for mental diseases, resulting in the discontinuation of federal financial participation, state funds must be used to pay for the lost federal financial participation.

Section 62 requires the Commissioner of Human Services to conduct a comprehensive analysis of Minnesota’s continuum of intensive mental health series and shall develop recommendations for sustainable and community-driven continuum of care for children with serious mental health needs, including children currently being served in residential treatment. The report is due by November 15, 2018.

Section 63 requires the commissioner to contract with an outside expert to identify recommendations for the development of a substance use disorder residential treatment program model and payment structure that is not subject to the federal institutions for mental diseases exclusion and is financially sustainable. The report is due no later than December 15, 2018.

Section 64 is a revisor’s instruction to make necessary cross-references changes.

Section 65 repeals obsolete statutes and rules.

Article 9 – Operations

Section 1 (245A.07, subd. 3) amends the DHS licensing act by imposing a fine on a license holder following the determination of maltreatment.

Section 2 (626.556, subd. 3c) requires that investigations of maltreatment occurring in children’s residential facilities licensed by the Commissioner of Corrections be conducted by the Department of Human Services Licensing Division.

Article 10 -Department of Health

This article makes a number of minor changes to the wells and boring chapter by aligning the codes for wells and borings.

Sections 1 to 18 make minor changes to chapter 103I to align the codes for wells and borings and other minor changes.

Section 1 (103I.101, subd. 2) changes registration to license when referring to monitoring well contractors.

Section 2 (103I.101, subd. 5) changes registration to license or certification.

Section 3 (103I.111, subd. 6) adds borings when referring to unsealed wells.

Section 4 (103I.111, subd. 7) removes reference to registration.

Section 5 (103I.111, subd. 8) changes “shaft’ to “boring”.

Section 6 (103I.205) adds borings to the well construction section.  It also changes registration to license.

Section 7 (103I.301) adds borings to the section heading and removes a reference to registered.

Section 8 (103I.501) removes a reference to register.

Section 9 (103I.505) changes registration to certification.

Section 10 (103I.515) changes registration to certification.

Section 11 (103I.535, subd. 3) clarifies that the examination referred to in this section is a certification examination.

Section 12 (103I.535, subd. 3b) requires a representative to file an application and a renewal application to renew the certification by the date stated in the certification.

Section 13 (103I.535, subd. 6) changes shaft to boring.

Section 14 (103I.541) changes registration to certification and removes references to registration.  Clarifies that a representative must file an application and a renewal application to renew the certification and must include information that the certified representative has met continuing education requirements.  Also clarifies that if a person employs a certified representative, submits the required bond and pays the required license fee for a monitoring well contractor license the commissioner shall issue a monitoring well contractor license.

Section 15 (103I.545, subd. 1) removes reference to registration.

Section 16 (103I.545, subd. 2) removes reference to registration.

Section 17 (103I.711, subd. 1) changes shaft to borings.

Section 18 (103I.715, subd. 2) changes shafts to borings.

Section 19 (144.05, subd. 6) removes the requirement that the Commissioner of Health provide the legislature with copies of certain agreements.

Section 20 [144.059 Palliative Care Advisory Council] establishes a Palliative Care Advisory Council.

Subd. 1 [Membership] specifies that a Palliative Care Advisory Council has 18 public members and four members who are legislators.

Subd. 2 [Public members] requires the commissioner of health to appoint 18 public members and specifies experience or qualities required of those members.

Subd. 3 [Term] sets the membership term at three years and permits reappointment. Members serve until a successor is appointed.

Subd. 4 [Administration] requires the commissioner of health or a designee to provide meeting space and administrative services.

Subd. 5 [Chairs] requires the council to elect a chair and vice chair biennially.

Subd. 6 [Meeting] requires the council to meet at least twice each year.

Subd. 7 [No compensation] specifies that public members serve without compensation.

Subd. 8 [Duties] requires the council to consult with and advise the commissioner of health on palliative care initiatives.  Requires an annual report to the legislature.

Subd. 9 [Open meetings] makes the council subject to the Open Meetings law.

Subd. 10 [Sunset] sunsets the council on January 1, 2025.

Section 21 (144.122) specifies that the fees collected under this section are nonrefundable even if the fee was received before July 1, 2017, for licenses or registrations being issued effective July 1, 2017, or later.

Section 22 (144.1501, subd. 2) expands eligibility  for the current health professional education loan forgiveness program to include nurses who agree to work in a housing with services establishment or for a home health care provider.

Section 23 (144.1505) creates a primary care professions clinical training expansion grant program.

Subdivision 1 defines the following terms:  eligible physician assistant program; eligible advanced practice registered nurse program; and project.

Subdivision 2 requires the Commissioner of Health to award health professional training site grants to eligible physician assistant and advanced practice registered nurse programs to plan and implement expanded clinical training.  Specifies that a planning grant may not exceed $75,000, and a training grant may not exceed $150,000 for the first year, $100,000 for the second year and $50,000 for the third year per program.  Specifies what the funds may be used for.

Subdivision 3 requires grant applicants to apply to the Commissioner of Health.  Specifies what must be contained in the grant application.

Subdivision 4 requires the commissioner to review each application to determine whether or not the application is complete and the program and the project are eligible for a grant that describes the scoring process to be used by the commissioner when evaluating the applications.

Subdivision 5 requires the commissioner to determine the amount of the grant to be given to each eligible program.  Specifies that the appropriations made to the program do not cancel and are available until expended.  Authorizes the commissioner to require and collect from the programs receiving grants any information necessary to evaluate the programs.

Section 24 (144.551, subdivision 1) creates an exception to the hospital moratorium for 21 new beds in an existing pediatric psychiatric hospital in Hennepin County.

Section 25 (144A.472, subd.7) specifies that the fees collected under this section are nonrefundable even if the fee was received before July 1, 2017, for licenses or registrations being issued effective July 1, 2017, or later.

Section 26 (144A.474, subdivision 11, paragraph (i)) requires the commissioner to use the revenue from collected fines imposed on home care providers, when the revenue is appropriated by the legislature, for special projects recommended by the licensed home care provider advisory council.

Section 27 (144A.4799, subdivision 3) modifies the duties of the Licensed Home Care Provider Advisory Council by requiring it to make annual recommendations directly to the legislature concerning the appropriation of revenue from collected fines imposed on home care providers.

Section 28 (144D.06) exempts housing with service establishments from the requirement to obtain a lodging license.

Section 29 (144D.071) prohibits a housing with services establishment from requiring a resident to move out of the resident’s living unit because the resident begins receiving services under the elderly waiver.

Sections 30 to 48 create a new chapter of law establishing the licensing requirements for prescribed pediatric extended care centers.

Section 30 [144H.01] defines terms for a new chapter of law, Chapter144H.  Defined terms include “basic services,” “commissioner,” “licensee,” “medically complex or technologically dependent child,” “owner,” “prescribed pediatric extended care center,” and “supportive services or contracted services.”

Section 31 [144H.02] establishes a licensing requirement for the ownership and operation of a prescribed pediatric extended care center, specifies the conditions under which multiple licenses are required, and prohibits prescribed pediatric extended care centers from being located on the same grounds as a child care center.

Section 32 [144H.03] exempts federal facilities and facilities licensed under Chapter 144 or 144A from prescribed pediatric extended care center licensing requirements.

Section 33 [144H.04] described the licensing and license renewal process and specifies that licenses are nontransferable.

Section 34 [144H.05] requires licensing fees in the amount of $11,000, renewal fees in the amount of $4,720, and late application or renewal fees of $25.

Section 35 [144H.06] directs the commission of health to adopt rules for the implementation of this new chapter.

Section 36 [144H.07] specifies the services that may be provided in a prescribed pediatric extended care center as well as limitations on those services.  Services may only be provided children with medically complex needs or who are technologically dependent and for no more than 14 hours within a 24 hour period.  The facility may operate 24 hours a day, seven days a week.

Section 37 [144H.08] specifies the duties of the owner and requires the owner to designate an administrator, whose duties are also specified.

Section 38 [144H.09] requires prescribed pediatric extended care centers to have policies and procedures governing admission, transfer, and discharge, and requires parents or guardians to give consent upon admission to the center.

Section 39 [144H.10] requires the center to have a board-certified pediatrician as a medical director.

Section 40 [144H.11] requires a center to have a nursing director who is a registered nurse and specifies the requirements for other licensed and unlicensed direct care personnel employed by the center.

Section 41 [144H.12] specifies that one staff person to three children is the minimal staffing requirements for a center.

Section 42 [144H.13] requires a medical record and individual nursing protocol for each child.

Section 43 [144H.14] requires a center to implement a quality assurance program.

Section 44 [144H.15] requires the commissioner of health to inspect a center before issuing or renewing a license.

Section 45 [144H.16] requires centers to comply with the maltreatment of minors act and statutory crib safety requirements.

Section 46 [144H.17] specifies conditions under which the commissioner may deny, suspend, revoke, or refuse to renew a license and provides for a hearing and review of any adverse licensing decision.

Section 47 [144H.18] permits the commission to impose corrective action plans and fines for a center’s failure to meet the licensing requirements.

Section 48 [144H.19] requires a center to give clients 30-days’ notice before closing.

Section 49 (145.4716, subd. 2) requires the commissioner to manage the money deposited in the safe harbor for youth account in this section instead of the Commissioner of Public Safety.

Section 50 (145.9263) requires the commissioner to award grants to nonprofit organizations for the purpose of expanding prescriber education, public awareness,  and outreach on the opioid epidemic and overdose prevention programs.

Sections 51 to 59 make a number of minor changes to the body art technicians and establishment licensure chapter.

Section 51 (146B.02, subd. 2) makes a minor change to specify that if the information submitted in the application is complete and complies with the license requirements the commissioner shall issue a provisional license.

Section 52 (146B.02, subd. 5) requires an owner who has purchased a body art establishment licensed under the previous owner to submit an application to license the establishment within two weeks of the date of sale.  Permits the new owner to continue to operate for 60 days after the sale while waiting for the new license.  This section also requires an owner of an establishment who is relocating the establishment to submit an application for the new location.

Section 53 (146B.02, subd. 7a) requires that a supervising technician be licensed as a body artist for at least two years before the technician may supervise a temporary technician.  Permits the commissioner to refuse to approve as a supervisor a technician who has been disciplined in Minnesota or in another jurisdiction.

Section 54 (146B.02, subd. 8) makes minor changes to the temporary event permit section.  Specifies that no individual may be issued a temporary event permit more than four times within the same calendar year and no individual who has been disciplined for a serious violation within three years preceding the intended start date of a temporary event may be issued a permit for a temporary event.

Section 55 (146B.02, subd. 10) authorizes the commissioner to deny a body art establishment license to an applicant who has been disciplined for a serious violation.

Section 56 (146B.03, subd. 6) authorizes a technician who was previously licensed in Minnesota whose license has lapsed for less than six years to apply to renew.  Specifies that a technician previously licensed in Minnesota whose license has lapsed for less than ten years and who was licensed in another jurisdiction during that time may apply to renew but must submit proof of licensure in good standing during the time of lapse.  Specifies that a technician previously licensed in Minnesota whose license has lapsed for more than six years and who has not continuously been licensed in another jurisdiction must reapply for licensure.

Section 57 (146B.03, subd. 7) specifies that a temporary license may only be renewed twice.

Section 58 (146B.07, subd. 4) requires each body artist to maintain a copy of the informed consent for three years.

Section 59 (146B.10, subd. 1) requires the commissioner to prorate the first renewal fee for the establishment license based on the number of months from issuance of the provisional license to the first renewal.

Section 60 (148.5194, subd. 7) technical change separating the licensure fee for initial applicants from the renewal licensure fee for audiologists.

Section 61 (157.16, subd. 1) specifies that the fees collected under chapter 157 must be deposited in the state government special revenue fund.

Section 62 (327.15, subd. 3) specifies that fees collected from manufactured home parks and recreational camping areas must be deposited in the state government special revenue fund.

Section 63 (609.5315, subd. 5c) specifies that a portion of the money forfeited from prostitution crimes must be forwarded to the Commissioner of Health instead of the public safety for the safe harbor of youth account.

Sections 64 – 67 add conforming cross-references to Chapter 144H in the maltreatment of minors act.

Section 68 extends the Legislative Health Care Workforce Commission and requires the commission to provide a preliminary report to the legislature by December 31, 2018, and a final report by December 31, 2020.

Section 69 changes the expiration date for the Legislative Health Care Workforce Commission to January 1, 2021.

Section 70 requires the Commissioner of Health to establish up to 12 opioid abuse prevention pilot projects to provide innovative and collaborative solutions to confront opioid abuse.  Requires the commissioner to contract with an accountable community for health that operates an opioid abuse prevention project to assist the commissioner in administering the pilot project and to provide technical assistance to the entities selected to operate a pilot project.

Section 71 requires the Commissioner of Health to develop a strategic statewide comprehensive plan that establishes a set of priorities and actions to address the state’s HIV epidemic.

Section 72 (Safe Harbor For All; Statewide Sex Trafficking Victims Strategic Plan) requires the Commissioner of Health to develop a strategic plan to address the needs of sex trafficking victims statewide.

Section 73 (Direction to the Commission of Human Services) requires the commissioner of human services to work with stakeholders to evaluate whether existing department of health licensing requirements adequately protect person’s with Alzheimer’s disease or related dementias.

Section 74 [Palliative Care Advisory Council Initial Appointments and First Meeting] sets a deadline for first appointments and for convening the first meeting of the council. Requires the commissioner of health to act as chair until the council elects a chair.

Section 75 repeals the subdivision relating to the past reports of the Legislative Health Care Workforce Commission.

 

Article 11 Health Licensing Boards

This article moves fees from rules to statutes for physicians, physician assistants, acupuncturists and respiratory therapists.  This article also creates a new Board of Occupational Therapy Practice.

Section 1 (147.01, subd.1) moves the license fees for physicians from rules into statute.  This section also authorizes the Board of Medical Practice to charge fees developed by the Interstate Commission to determine physician qualifications to register and participate in the interstate medical licensure compact.

Section 2 (147.02, subd. 1) specifies that the fees paid to the Board of Medical Practice are nonrefundable.

Section 3 (147.03, subd.1) removes the reference to fees established by rule.

Section 4 (147A.28) moves the license fees for physician assistants from rules to statute and specifies that the board may prorate the initial fee and the fees are to be deposited into the state government special revenue fund.

Section 5 (147B.08, subd.4) moves the license fees for acupuncturist from rules to statute and specifies that the board may prorate the initial license fee and that the fees are to be deposited into the state government special revenue fund.

Section 6 (147C.40, subd.5) moves the license fees for respiratory therapists from rules to statute and specifies that the board may prorate the initial license fee and that the fees are to be deposited into the state government special revenue fund.

Sections 7 to 30 (148.6402 to 148.6445) changes the regulatory authority for the licensure of occupational therapists and occupational therapy assistants from the commissioner of health to a newly created Board of Occupational Therapy Practice.

Section 31 (148.6449) creates the new Board of Occupational Therapy Practice.

Section 32 (214.01, subd.2) adds the Board of Occupational Therapy Practice to the definition of “health related licensing board” in chapter 214.

Section 33 requires the governor to appoint the members of the Board of Occupational Therapy Practice by October 1, 2017, and requires the board to convene its first meeting by November 1, 2017.

Section 34 is a revisor instruction.

Section 35 are repealers associated with the fees that are being moved from rules to statute.

 

 

 

 
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