1.1    .................... moves to amend H. F. No. 196, the second committee engrossment,
1.2as follows:
1.3Delete everything after the enacting clause and insert:


1.6    Section 1. Minnesota Statutes 2006, section 256B.055, subdivision 14, is amended to
1.7read:
1.8    Subd. 14. Persons detained by law. (a) Medical assistance may be paid for an
1.9inmate of a correctional facility who is conditionally released as authorized under section
1.10241.26 , 244.065, or 631.425, if the individual does not require the security of a public
1.11detention facility and is housed in a halfway house or community correction center, or
1.12under house arrest and monitored by electronic surveillance in a residence approved
1.13by the commissioner of corrections, and if the individual meets the other eligibility
1.14requirements of this chapter.
1.15    (b) An individual who is enrolled in medical assistance, and who is charged with a
1.16crime and incarcerated in a local jail, workhouse, or local juvenile correctional facility
1.17for less than 12 months shall be suspended from eligibility at the time of incarceration
1.18until the individual is released. Upon release, medical assistance eligibility is reinstated
1.19without reapplication, if the individual is otherwise eligible.
1.20    (c) An individual, regardless of age, who is considered an inmate of a public
1.21institution as defined in Code of Federal Regulations, title 42, section 435.1009, is not
1.22eligible for medical assistance.

1.23    Sec. 2. Minnesota Statutes 2006, section 641.15, is amended by adding a subdivision
1.24to read:
1.25    Subd. 3a. Intake procedure; approved mental health screening. As part of its
1.26intake procedure for new prisoners, the sheriff or local corrections shall use a mental
2.1health screening tool approved by the commissioner of corrections in consultation with
2.2the commissioner of human services to identify persons who may have mental illness.

2.3    Sec. 3. [641.156] COUNTY JAIL REENTRY PROJECTS; GRANTS.
2.4    Subdivision 1. Purpose. The purpose of the reentry project is to promote public
2.5safety, prevent recidivism, and promote a successful reintegration into the community
2.6by providing services to individuals confined in jails and county regional jails who are
2.7identified as having mental illness, traumatic brain injury, chemical dependency, or being
2.8homeless.
2.9    Subd. 2. Grants. (a) The commissioner of corrections, in consultation with the
2.10commissioner of human services, shall award grants to county boards for two-year reentry
2.11pilot projects. At a minimum, one project must be located outside the seven-county
2.12metropolitan area. Projects will target prisoners in jails and county regional jails who
2.13are identified as having:
2.14    (1) a mental illness, as defined in section 245.462, subdivision 20;
2.15    (2) a traumatic brain injury, as defined in section 256B.093, subdivision 4;
2.16    (3) chemical dependency, as defined in section 253B.02, subdivision 2; or
2.17    (4) a history of homelessness, as defined in section 116L.361, subdivision 5.
2.18    (b) The projects shall provide a range of services including, but not limited to,
2.19screening and assessment, client-specific programming, discharge planning and reentry
2.20assistance, and follow-up for at least six months after the prisoner has reentered the
2.21community.
2.22    Subd. 3. Applications. A grant applicant shall prepare and submit to the
2.23commissioner of corrections a written proposal detailing the plan and strategies on how
2.24the applicant will implement the program components in subdivision 4. The application
2.25shall include a proposed evaluation component of outcome measures including, but not
2.26limited to, numbers of prisoners served, recidivism, restoration of public benefits, and
2.27status regarding housing, employment, and treatment needs after six months.
2.28    Subd. 4. Program components. Each participating county shall:
2.29    (a) develop a written collaborative plan between the county jail or county regional
2.30jail and the county social services agency;
2.31    (b) assess each prisoner upon entry into the jail or county regional jail using a
2.32screening tool approved by the commissioner of corrections in consultation with the
2.33commissioner of human services to identify prisoners with the characteristics listed in
2.34subdivision 2, paragraph (a);
3.1    (c) ensure prisoners who are identified with a positive screening and who will be
3.2incarcerated for less than 30 days are offered follow-up care and referred to appropriate
3.3professionals;
3.4    (d) ensure prisoners who are identified as having a characteristic listed in subdivision
3.52, paragraph (a), and who will be incarcerated 30 days or longer, are provided with
3.6appropriate treatment and programming including, but not limited to, mental health
3.7treatment, counseling, living and employment skills development, substance abuse
3.8treatment, GED and literacy training, and referrals to aftercare treatment and skills training;
3.9    (e) offer to develop a discharge plan for prisoners identified as having a characteristic
3.10listed in subdivision 2, paragraph (a), who will be incarcerated for 90 days or longer.
3.11Discharge planning components must include:
3.12    (1) at least 60 days prior to the prisoner's release, the person responsible for discharge
3.13planning authorized by this section shall begin assisting the prisoner to establish, or
3.14reestablish, benefits such as medical assistance, veterans' benefits, MinnesotaCare, general
3.15assistance medical care, Social Security insurance, housing assistance, and submitting in
3.16a timely manner a prisoner's application for any benefits for which the prisoner may
3.17be eligible upon release;
3.18    (2) obtaining informed consent and releases of information from the prisoner that
3.19are needed for transition services, identifying treatment needs, referring the prisoner
3.20to appropriate services in the community, and arranging for basic needs such as food,
3.21housing, transportation, employment, and GED services;
3.22    (3) securing appointments for a prisoner to be treated by a psychiatrist within 30
3.23days of release, if appropriate;
3.24    (4) securing appointments for a prisoner with a community mental health provider
3.25and a chemical dependency provider within 30 days of release, if appropriate;
3.26    (5) ensuring that the prisoner, when released from custody, has at least a 14-day
3.27supply of all necessary medications, and a prescription for at least a 30-day supply of all
3.28necessary medication that can be refilled once for an additional 30-day supply;
3.29    (6) arranging for the prisoner to have a state photo identification card when released.
3.30The identification card must not disclose the prisoner's incarceration or criminal record
3.31and must list an address other than the address of the jail or county regional jail. The
3.32identification card expires on the date of birth of the holder four years after the date of
3.33issue; and
3.34    (7) identifying prisoners who had a case manager prior to incarceration, and
3.35maintaining contact with that case manager to provide service coordination for the
3.36prisoner upon release. For prisoners without a case manager, making appropriate referrals
4.1for case management services or offering to provide follow-up services to assist the
4.2prisoner in obtaining stable housing, public benefits, and community services for up to
4.3six months after release;
4.4    (f) recording the number of prisoners identified under subdivision 2, paragraph (a),
4.5and the number of prisoners who received federal benefits upon entry into the jail or
4.6county regional jail; and
4.7    (g) maintaining accurate records to complete the program evaluation.

4.8    Sec. 4. DISCIPLINARY CONFINEMENT; PROTOCOL.
4.9    The commissioner of corrections shall develop a protocol that is fair, firm, and
4.10consistent so that inmates have an opportunity to be released from disciplinary confinement
4.11in a timely manner. For those inmates in disciplinary confinement who are nearing their
4.12release date, the commissioner of corrections shall, when possible, develop a reentry plan.

4.13    Sec. 5. APPROPRIATIONS.
4.14    Subdivision 1. Grant program. $300,000 is appropriated from the general fund to
4.15the commissioner of corrections for fiscal year 2008 and $300,000 for fiscal year 2009
4.16to administer the grant program established in section 3.
4.17    Subd. 2. Discharge planning. $....... is appropriated from the general fund to
4.18the commissioner of human services for fiscal year 2008 to fund discharge planning for
4.19offenders with serious and persistent mental illness as defined in Minnesota Statutes,
4.20section 245.462, subdivision 20, paragraph (c), who are pending release from correctional
4.21facilities.
4.22    Subd. 3. Mental health courts. $100,000 for fiscal year 2008 and $100,000 for
4.23fiscal year 2009 are appropriated from the general fund to the Supreme Court to develop
4.24and implement standards for mental health courts.


4.27    Section 1. [245.4889] CHILDREN'S MENTAL HEALTH GRANTS.
4.28    Subdivision 1. Establishment and authority. (a) The commissioner is authorized
4.29to make grants from available appropriations to assist:
4.30    (1) counties;
4.31    (2) Indian tribes;
4.32    (3) children's collaboratives under section 124D.23 or 245.493; or
4.33    (4) mental health service providers
4.34in providing services to children with emotional disturbances as defined in section
4.35245.4871, subdivision 15, and their families. The commissioner may also authorize grants
5.1to assist young adults meeting the criteria for transition services in section 245.4875,
5.2subdivision 8, and their families.
5.3    (b) Services under paragraph (a) must be designed to help each child to function and
5.4remain with the child's family in the community and must be delivered consistent with the
5.5child's treatment plan. Transition services under paragraph (a) to eligible young adults
5.6must be designed to foster independent living in the community.
5.7    Subd. 2. Grant application and reporting requirements. To apply for a grant, an
5.8applicant organization shall submit an application and budget for the use of the money
5.9in the form specified by the commissioner. The commissioner shall make grants only to
5.10entities whose applications and budgets are approved by the commissioner. In awarding
5.11grants, the commissioner shall give priority to those counties whose applications indicate
5.12plans to collaborate in the development, funding, and delivery of services with other
5.13agencies in the local system of care. The commissioner shall specify requirements for
5.14reports, including quarterly fiscal reports under section 256.01, subdivision 2, paragraph
5.15(q). The commissioner shall require collection of data and periodic reports that the
5.16commissioner deems necessary to demonstrate the effectiveness of each service.

5.17    Sec. 2. [245A.175] MENTAL HEALTH TRAINING REQUIREMENT.
5.18    Prior to placement of a child in a foster care home, the child foster care provider, if
5.19required to be licensed, must complete two hours of training that addresses the causes,
5.20symptoms, and key warning signs of mental health disorders; cultural considerations; and
5.21effective approaches for dealing with a child's behaviors. At least one hour of the annual
5.2212-hour training requirement for foster parents must be on children's mental health issues
5.23and treatment. Training curriculum shall be approved by the commissioner of human
5.24services.

5.25    Sec. 3. [256.9961] COLLABORATIVE SERVICES FOR HIGH-RISK
5.26CHILDREN.
5.27    To provide early intervention collaborative services to children who are at high risk
5.28for child maltreatment, substance use, mental illness, and serious and violent offending,
5.29but not subject to the delinquency provisions of chapter 260B, the commissioner of human
5.30services shall fund one or more projects that identify and serve these children. The
5.31projects shall include the following program components:
5.32    (1) multidimensional screening instruments;
5.33    (2) multidisciplinary and multijurisdictional collaborative services;
5.34    (3) integrated information systems;
5.35    (4) intensive in-home and community casework;
6.1    (5) continuous tracking of outcomes; and
6.2    (6) multidimensional evaluations and cost benefit analysis.
6.3Projects must use all available funding streams.

6.4    Sec. 4. Minnesota Statutes 2006, section 256B.0943, is amended by adding a
6.5subdivision to read:
6.6    Subd. 14. Rate increase for children's therapeutic services and supports. For
6.7services defined in clauses (1) and (2) rendered on or after July 1, 2007, payment rates
6.8shall be increased by 33.7 percent over the rates in effect on January 1, 2006, for:
6.9    (1) services when provided as a component of children's therapeutic services and
6.10support including, but not limited to, individual and group skills training, individual and
6.11group psychotherapy, and provider travel; and
6.12    (2) diagnostic assessments of children and adolescents.
6.13    The commissioner shall adjust rates paid to prepaid health plans under contract with
6.14the commissioner to reflect the rate increases provided in clauses (1) and (2). The prepaid
6.15health plans must pass this rate increase to the providers of the services identified in
6.16clauses (1) and (2).

6.17    Sec. 5. COLUMBIA TEENSCREEN GRANTS.
6.18    The commissioner of education shall develop a request for proposals for grants to
6.19implement the Columbia TeenScreen program. The request for proposals shall require
6.20the grant applicant to specify how the applicant will follow, implement, and conduct the
6.21essential components of the Columbia TeenScreen program. Applicants for grants shall
6.22be limited to public schools, family service collaboratives, and children's mental health
6.23collaboratives.

6.24    Sec. 6. CHILDREN'S MENTAL HEALTH WORK GROUP; REPORT.
6.25    The commissioner of human services shall convene a work group to study the unmet
6.26need for children's mental health wraparound services, and determine what components of
6.27wraparound services are currently being funded, and what components need to be funded
6.28in order to provide comprehensive funding of wraparound services, to address the needs
6.29of children diagnosed with an emotional disturbance or a severe emotional disturbance. In
6.30addition to a representative from the Department of Human Services, the work group shall
6.31consist of representatives from the Department of Health, the Department of Education,
6.32organizations that provide or advocate for children's mental health services, and Minnesota
6.33counties. The commissioner shall report the results of the work group's findings and
6.34recommendations to the chairs of the house and senate committees with jurisdiction over
6.35children's mental health no later than January 1, 2008.

7.1    Sec. 7. TRAUMA-FOCUSED EVIDENCE-BASED PRACTICES TO
7.2CHILDREN.
7.3    The commissioner of human services shall provide grants to organizations that
7.4provide trauma-focused, evidence-based services to children. Organizations that are
7.5certified to provide children's therapeutic services and supports under Minnesota Statutes,
7.6section 256B.0943, are eligible to apply for a grant. Grants are to be used to provide
7.7trauma-focused evidence-based practices to children who are living in a battered women's
7.8shelter, homeless shelter, transitional housing, or supported housing. Children served must
7.9have been exposed to or witnessed domestic violence, have been exposed to or witnessed
7.10community violence, or be a refugee. Priority shall be given to organizations that
7.11demonstrate collaboration with battered women's shelters, homeless shelters, or providers
7.12of transitional housing or supported housing. The commissioner shall specify which
7.13constitutes evidence-based practice. Organizations shall use all available funding streams.

7.14    Sec. 8. RESPITE CARE.
7.15    (a) The commissioner of human services shall allocate amounts for respite care
7.16funding to counties based on population. Counties shall be reimbursed for the costs of
7.17respite care for families with a child who has a severe emotional disturbance. Total
7.18reimbursement shall not exceed the county's allocation. Any funds not used by a county
7.19may be reallocated to other counties.
7.20    (b) Funds allocated under paragraph (a) may be used for day, night, overnight, and
7.21summer or vacation respite care. Funds may be used for in-home or out-of-home respite
7.22care.
7.23    (c) Up to 25 percent of the funds allocated under paragraph (a) in the first year may
7.24be used to recruit, train, and support respite care providers.
7.25    (d) The commissioner shall convene a work group composed of stakeholders to
7.26determine:
7.27    (1) how funds in subsequent years may be used;
7.28    (2) how funds shall be disbursed to counties;
7.29    (3) who is eligible to provide respite care;
7.30    (4) how families access respite care;
7.31    (5) how respite care rates will be established; and
7.32    (6) what outcome data will be collected.
7.33The work group shall also examine how to use existing tools to determine difficulty of
7.34care rates.

7.35    Sec. 9. APPROPRIATIONS.
8.1    Subdivision 1. Evidence-based practice. $....... in fiscal year 2008 and $....... in
8.2fiscal year 2009 are appropriated from the general fund to the commissioner of human
8.3services to develop and implement evidence-based practice in children's mental health
8.4care and treatment.
8.5    Subd. 2. Columbia TeenScreen grants. $500,000 in fiscal year 2008 and $500,000
8.6in fiscal year 2009 are appropriated from the general fund to the commissioner of
8.7education to administer five Columbia TeenScreen grant programs in section 5.
8.8    Subd. 3. Early intervention collaborative programs. $900,000 in fiscal year
8.92008 and $900,000 in fiscal year 2009 are appropriated from the general fund to the
8.10commissioner of human services to fund the early intervention collaborative programs in
8.11section 3.
8.12    Subd. 4. Childhood trauma; grants. $250,000 in fiscal year 2008 and $250,000 in
8.13fiscal year 2009 are appropriated from the general fund to the commissioner of human
8.14services to make grants for the purpose of maintaining and expanding evidence-based
8.15practices under section 7 that support children and youth who have been exposed to
8.16violence or who are refugees.
8.17    Subd. 5. Respite care. $5,000,000 in fiscal year 2008 is appropriated from general
8.18fund to the commissioner of human services to fund respite care for children under section
8.198 who have a diagnosis of emotional disturbance or severe emotional disturbance.


8.22    Section 1. [144.206] LOAN FORGIVENESS PROGRAM.
8.23    (a) For the purposes of this section, "qualified educational loan" means a
8.24government, commercial, or foundation loan for actual costs paid for tuition, reasonable
8.25education expenses, and reasonable living expenses related to the graduate education
8.26of a mental health professional.
8.27    (b)(1) A loan forgiveness program account is established. The commissioner of
8.28health shall use money from the account to establish a loan forgiveness program for
8.29individuals who are employed by a nonprofit agency that provides mental health services
8.30for cultural or ethnic minority clients.
8.31    (2) Appropriations made to the account do not cancel and are available until
8.32expended, except that at the end of the biennium, any remaining balance in the account
8.33that is not committed by contract and is not needed to fulfill existing commitments shall
8.34cancel to the fund.
9.1    (c) To be eligible to participate in the loan forgiveness program, an individual must
9.2be employed by a nonprofit agency that provides mental health services for cultural or
9.3ethnic minority clients and must be of the same culture or ethnicity as the clients. An
9.4applicant selected to participate must sign a contract agreeing to remain employed with
9.5the nonprofit agency for a three-year full-time term, which shall begin no later than 30
9.6days following completion of the required training.
9.7    (d) The commissioner may select applicants each year for participation in the loan
9.8forgiveness program, within the limits of available funding. Applicants are responsible for
9.9securing their own qualified educational loans. The commissioner shall select participants
9.10based on their suitability for practice serving the required cultural or ethnic minority
9.11population. The commissioner shall give preference to applicants closest to completing
9.12their education.
9.13    (e) For each year that a participant meets the service obligation required under
9.14paragraph (c), the commissioner shall make annual disbursements directly to the
9.15participant equivalent to 25 percent of the average educational debt for indebted
9.16mental health profession graduates in the year closest to the applicant's selection for
9.17which information is available, not to exceed the balance of the participant's qualifying
9.18educational loans. Before receiving loan repayment disbursements, and as requested, the
9.19participant and the employer must complete and return to the commissioner an affidavit of
9.20practice form provided by the commissioner verifying that the participant is practicing
9.21as required under paragraph (c). The participant must provide the commissioner with
9.22verification that the full amount of the loan repayment disbursement received by the
9.23participant has been applied toward the designated loans. After each disbursement,
9.24verification must be received by the commissioner and approved before the next loan
9.25repayment disbursement is made.
9.26    (f) If a participant does not fulfill the minimum commitment of service under
9.27paragraph (c), the commissioner shall collect from the participant the full amount paid
9.28to the participant under the loan forgiveness program plus interest at the rate established
9.29under section 270C.40. The commissioner shall deposit the money collected in the
9.30general fund. The commissioner shall allow waivers of all or part of the money owed
9.31the commissioner as a result of nonfulfillment if emergency circumstances prevented
9.32fulfillment of the minimum service commitment.

9.33    Sec. 2. Minnesota Statutes 2006, section 245.462, subdivision 20, is amended to read:
9.34    Subd. 20. Mental illness. (a) "Mental illness" means an organic disorder of the
9.35brain or a clinically significant disorder of thought, mood, perception, orientation,
9.36memory, or behavior that is listed in the clinical manual of the International Classification
10.1of Diseases (ICD-9-CM), current edition, code range 290.0 to 302.99 or 306.0 to 316.0
10.2or the corresponding code in the American Psychiatric Association's Diagnostic and
10.3Statistical Manual of Mental Disorders (DSM-MD), current edition, Axes I, II, or III, and
10.4that seriously limits a person's capacity to function in primary aspects of daily living such
10.5as personal relations, living arrangements, work, and recreation.
10.6    (b) An "adult with acute mental illness" means an adult who has a mental illness that
10.7is serious enough to require prompt intervention.
10.8    (c) For purposes of case management and community support services, a "person
10.9with serious and persistent mental illness" means an adult who has a mental illness and
10.10meets at least one of the following criteria:
10.11    (1) the adult has undergone two or more episodes of inpatient care for a mental
10.12illness within the preceding 24 months;
10.13    (2) the adult has experienced a continuous psychiatric hospitalization or residential
10.14treatment exceeding six months' duration within the preceding 12 months;
10.15    (3) the adult has been treated by a crisis team two or more times within the preceding
10.1624 months;
10.17    (4) the adult:
10.18    (i) has a diagnosis of schizophrenia, bipolar disorder, major depression, or borderline
10.19personality disorder;
10.20    (ii) indicates a significant impairment in functioning; and
10.21    (iii) has a written opinion from a mental health professional, in the last three years,
10.22stating that the adult is reasonably likely to have future episodes requiring inpatient or
10.23residential treatment, of a frequency described in clause (1) or (2), unless ongoing case
10.24management or community support services are provided;
10.25    (4) (5) the adult has, in the last three years, been committed by a court as a person
10.26who is mentally ill under chapter 253B, or the adult's commitment has been stayed or
10.27continued; or
10.28    (5) (6) the adult (i) was eligible under clauses (1) to (4) (7), but the specified time
10.29period has expired or the adult was eligible as a child under section 245.4871, subdivision
10.306 ; and (ii) has a written opinion from a mental health professional, in the last three years,
10.31stating that the adult is reasonably likely to have future episodes requiring inpatient or
10.32residential treatment, of a frequency described in clause (1) or (2), unless ongoing case
10.33management or community support services are provided.

10.34    Sec. 3. Minnesota Statutes 2006, section 245.4712, subdivision 1, is amended to read:
10.35    Subdivision 1. Availability of community support services. (a) County boards
10.36must provide or contract for sufficient community support services within the county to
11.1meet the needs of adults with serious and persistent mental illness who are residents of the
11.2county. Adults may be required to pay a fee according to section 245.481. The community
11.3support services program must be designed to improve the ability of adults with serious
11.4and persistent mental illness to:
11.5    (1) work in a regular or supported work environment;
11.6    (2) handle basic activities of daily living;
11.7    (3) participate in leisure time activities;
11.8    (4) set goals and plans; and
11.9    (5) obtain and maintain appropriate living arrangements.
11.10    The community support services program must also be designed to promote mental
11.11health stabilization and increase funding, and reduce the need for and use of more
11.12intensive, costly, or restrictive placements both in number of admissions and length of stay.
11.13    (b) Community support services are those services that are supportive in nature and
11.14not necessarily treatment-oriented, and include:
11.15    (1) conducting outreach activities such as home vistis, health and wellness checks,
11.16problem solving;
11.17    (2) connecting people to resources to meet their basic needs:
11.18    (3) finding, securing, and supporting people in their housing;
11.19    (4) attaining and maintaining health insurance benefits;
11.20    (5) assisting with job applications, finding and maintaining employment, and
11.21securing a stable financial situation;
11.22    (6) fostering social support, including support groups, mentoring, peer support, and
11.23other efforts to prevent isolation and promote recovery; and
11.24    (7) educating about mental illness, treatment, and recovery.
11.25    (c) Community support services shall use all available funding streams. The county
11.26shall maintain the level of expenditures for this program, as required under section
11.27245.4835. County boards must continue to provide funds for those services not covered
11.28by other funding streams and to maintain an infrastructure to carry out these services.
11.29    (d) The commissioner shall collect data on community support services programs,
11.30including, but not limited to, demographic information such as age, sex, race, the number
11.31of people served, and information related to housing, employment, hospitalization,
11.32symptoms, and satisfaction with services.

11.33    Sec. 4. Minnesota Statutes 2006, section 245.50, subdivision 5, is amended to read:
11.34    Subd. 5. Special contracts; bordering states. (a) An individual who is detained,
11.35committed, or placed on an involuntary basis under chapter 253B may be confined or
11.36treated in a bordering state pursuant to a contract under this section. An individual who is
12.1detained, committed, or placed on an involuntary basis under the civil law of a bordering
12.2state may be confined or treated in Minnesota pursuant to a contract under this section. A
12.3peace or health officer who is acting under the authority of the sending state may transport
12.4an individual to a receiving agency that provides services pursuant to a contract under
12.5this section and may transport the individual back to the sending state under the laws
12.6of the sending state. Court orders valid under the law of the sending state are granted
12.7recognition and reciprocity in the receiving state for individuals covered by a contract
12.8under this section to the extent that the court orders relate to confinement for treatment
12.9or care of mental illness or chemical dependency. Such treatment or care may address
12.10other conditions that may be co-occurring with the mental illness or chemical dependency.
12.11These court orders are not subject to legal challenge in the courts of the receiving state.
12.12Individuals who are detained, committed, or placed under the law of a sending state and
12.13who are transferred to a receiving state under this section continue to be in the legal
12.14custody of the authority responsible for them under the law of the sending state. Except
12.15in emergencies, those individuals may not be transferred, removed, or furloughed from
12.16a receiving agency without the specific approval of the authority responsible for them
12.17under the law of the sending state.
12.18    (b) While in the receiving state pursuant to a contract under this section, an
12.19individual shall be subject to the sending state's laws and rules relating to length of
12.20confinement, reexaminations, and extensions of confinement. No individual may be sent
12.21to another state pursuant to a contract under this section until the receiving state has
12.22enacted a law recognizing the validity and applicability of this section.
12.23    (c) If an individual receiving services pursuant to a contract under this section leaves
12.24the receiving agency without permission and the individual is subject to involuntary
12.25confinement under the law of the sending state, the receiving agency shall use all
12.26reasonable means to return the individual to the receiving agency. The receiving agency
12.27shall immediately report the absence to the sending agency. The receiving state has the
12.28primary responsibility for, and the authority to direct, the return of these individuals
12.29within its borders and is liable for the cost of the action to the extent that it would be
12.30liable for costs of its own resident.
12.31    (d) Responsibility for payment for the cost of care remains with the sending agency.
12.32    (e) This subdivision also applies to county contracts under subdivision 2 which
12.33include emergency care and treatment provided to a county resident in a bordering state.
12.34    (f) If a Minnesota resident is admitted to a facility in a bordering state under this
12.35chapter, a physician, licensed psychologist who has a doctoral degree in psychology, or
12.36an advance practice registered nurse certified in mental health, who is licensed in the
13.1bordering state, may act as an examiner under sections 253B.07, 253B.08, 253B.092,
13.2253B.12, and 253B.17 subject to the same requirements and limitations in section
13.3253B.02, subdivision 7.

13.4    Sec. 5. [245.6961] CULTURALLY COMPETENT MENTAL HEALTH
13.5SERVICES; GRANTS.
13.6    Subdivision 1. Treatment and infrastructure grants. The commissioner is
13.7authorized to make grants to nonprofit culturally specific organizations to increase access
13.8to culturally competent mental health services to children throughout the state and to
13.9reduce the disparity of mental health care outcomes between the general population and
13.10cultural and ethnic minorities. The grants are intended to provide direct services and
13.11to enhance service quality and capacity of culturally specific mental health provider
13.12organizations. The grants may be used to:
13.13    (1) provide culturally competent mental health treatment and support services
13.14for uninsured and underinsured racial or ethnic minority children with mental health
13.15diagnoses; and
13.16    (2) support activities and projects by culturally specific organizations to enhance
13.17their clinical and administrative infrastructures to provide medically necessary services
13.18that are eligible for reimbursement through Minnesota Health Care Programs and private
13.19payers, including costs related to provider training, co-location of specialty providers,
13.20interpreter services, translation of client education materials, development of professional
13.21consultation, telemedicine, billing, and client outcomes data collection.
13.22    Subd. 2. Culturally specific organization. For the purpose of this section,
13.23"culturally specific organization" means a provider of mental health treatment services
13.24who has the specialized knowledge and skills necessary to communicate with one or more
13.25racial or ethnic minority population, has proven especially effective in the treatment
13.26of individuals within a particular cultural, ethnic, or linguistic population, and has the
13.27knowledge to draw on the client's cultural strengths in the pursuit of treatment.
13.28    Subd. 3. Grants criteria. The commissioner, in consultation with community-based
13.29nonprofit organizations providing children's mental health services to cultural or racial
13.30minority populations, shall establish criteria for culturally competent clinical and
13.31administrative infrastructure and develop criteria for eligibility, services, and outcomes
13.32measurement.
13.33    Subd. 4. Outcomes. The commissioner may require grant recipients to report client
13.34outcomes data in a format designated by the commissioner.

13.35    Sec. 6. [626.96] CRISIS INTERVENTION TEAM GRANTS.
14.1    Subdivision 1. Request for proposals. The commissioner of public safety shall
14.2create a competitive grant process using request for proposals for crisis intervention team
14.3training for local police and sheriff departments. Before making grants under this section,
14.4the commissioner shall consult with the following organizations or individuals regarding
14.5the development of the request for proposals:
14.6    (1) the Barbara Schneider Foundation
14.7    (2) the National Alliance on Mental Illness;
14.8    (3) the Minnesota Mental Health Association; and
14.9    (4) national experts on crisis intervention team training.
14.10    Subd. 2. Training requirements. The training provided with grants made under
14.11this section must include, but is not limited to, the following components:
14.12    (1) an overview of mental illnesses and the mental health system;
14.13    (2) site visits to psychiatric receiving facilities;
14.14    (3) an overview of mental health courts;
14.15    (4) an overview of specific psychiatric conditions, their manifestations, and
14.16treatment; and
14.17    (5) crisis intervention team reporting and data collection.
14.18    At least 20 percent of each training must involve scenario-based role play training
14.19with the use of a professional acting company with crisis intervention team training
14.20experience. Training provided under this subdivision must be at least 40 hours. The
14.21training must encourage and support the statewide development of crisis intervention
14.22teams for law enforcement. The training must promote the development of local
14.23collaboration among public safety professionals, community mental health and emergency
14.24medicine providers, and members of the public.

14.25    Sec. 7. MINNESOTA FAMILY INVESTMENT PROGRAM AND CHILDREN'S
14.26MENTAL HEALTH PILOT PROJECT.
14.27    Subdivision 1. Pilot project authorized. The commissioner of human services
14.28shall fund a two-year pilot project to measure the impact of children's identified mental
14.29health needs, including social and emotional needs, on Minnesota family investment
14.30program (MFIP) participants' ability to obtain and retain employment. The project shall
14.31also measure the impact on work activity of MFIP participants' needs to address their
14.32children's identified mental health needs.
14.33    Subd. 2. Provider and agency proposals. (a) Interested MFIP providers and
14.34agencies shall:
15.1    (1) submit proposals defining how they will identify participants whose children
15.2have mental health needs that hinder the employment process;
15.3    (2) connect families with appropriate developmental, social, and emotional
15.4screenings and services; and
15.5    (3) incorporate those services into the participant's employment plan.
15.6Each proposal under this paragraph must include an evaluation component.
15.7    (b) Interested MFIP providers and agencies shall develop a protocol to inform MFIP
15.8participants of the following:
15.9    (1) the availability of developmental, social, and emotional screening tools for
15.10children and youth;
15.11    (2) the purpose of the screenings;
15.12    (3) how the information will be used to assist the participants in identifying and
15.13addressing potential barriers to employment; and
15.14    (4) that their employment plan may be modified based on the screening results.
15.15    Subd. 3. Program components. (a) MFIP providers shall obtain the participant's
15.16written consent for participation in the pilot project, including consent for developmental,
15.17social, and emotional screening.
15.18    (b) MFIP providers shall coordinate with county social service agencies and health
15.19plans to assist recipients in arranging referrals indicated by the screening results.
15.20    (c) Tools used for developmental, social, and emotional screenings shall be approved
15.21by the commissioner of human services.
15.22    Subd. 4. Program evaluation. The commissioner of human services shall conduct
15.23an evaluation of the pilot project to determine:
15.24    (1) the number of participants who took part in the screening;
15.25    (2) the number of children who were screened and what screening tools were used;
15.26    (3) the number of children who were identified in the screening who needed referral
15.27or follow-up services;
15.28    (4) the number of children who received services, what agency provided the services,
15.29and what type of services were provided;
15.30    (5) the number of employment plans that were adjusted to include the activities
15.31recommended in the screenings;
15.32    (6) the changes in work participation rates;
15.33    (7) the changes in earned income;
15.34    (8) the changes in sanction rates; and
15.35    (9) the participants' report of program effectiveness.
16.1    Subd. 5. Work activity. Participant involvement in screenings and subsequent
16.2referral and follow-up services shall count as work activity under Minnesota Statutes,
16.3section 256J.49, subdivision 13.

16.4    Sec. 8. EVIDENCE-BASED PRACTICE.
16.5    The commissioner of human services shall make a one-time consultation with
16.6stakeholder groups and make budget-neutral changes to medical assistance coverage and
16.7benefits to implement evidence-based practices as defined by the Agency for Healthcare
16.8Research and Quality Practice Guidelines or Substance Abuse and Mental Health Services
16.9Administration.

16.10    Sec. 9. EMPLOYMENT SUPPORT.
16.11    (a) The commissioner of the employment and economic development shall fund
16.12special projects providing employment support to:
16.13    (1) young people with mental illness who are transitioning from school to work;
16.14    (2) people with a serious mental illness who are receiving services through a mental
16.15health court; and
16.16    (3) people with serious mental illness who are receiving services through a civil
16.17commitment court.
16.18    (b) Special projects shall include incentive payments to providers that place
16.19individuals in jobs that allow them to leave SSI and SSDI dependency and become
16.20economically self-sufficient.
16.21    (c) Projects under paragraph (a) must demonstrate interagency collaboration.

16.22    Sec. 10. TELEHEALTH.
16.23    (a) The Office of Enterprise Technology in consultation with the commissioner
16.24of human services shall provide interconnectivity, bridging, or gateway for televideo
16.25conferencing at no cost to the providers between:
16.26    (1) state and county agency sites; and
16.27    (2) community provider sites or association of community providers sites.
16.28    (b) Community providers eligible for the televideo conferencing interconnectivity
16.29are those enrolled as medical assistance providers under Minnesota Statutes, section
16.30256B.0625, subdivision 5, or under contract with counties to provide services under
16.31Minnesota Statutes, sections 245.461 to 245.486, the Minnesota comprehensive adult
16.32mental health act; Minnesota Statutes, sections 245.4712 to 245.4861, community support
16.33and day treatment services; or Minnesota Statutes, sections 245.487 to 245.4887, the
16.34Minnesota comprehensive children's mental health act.

16.35    Sec. 11. DUAL DIAGNOSIS; DEMONSTRATION PROJECT.
17.1    (a) The commissioner of human services shall fund demonstration projects for high
17.2risk adults with serious mental illness and co-occurring substance abuse problems. The
17.3projects must include, but not be limited to, the following:
17.4    (1) housing services, including rent or housing subsidies, housing with clinical
17.5staff, or housing support;
17.6    (2) assertive outreach services; and
17.7    (3) intensive direct therapeutic, rehabilitative, and care management services
17.8oriented to harm reduction.
17.9    (b) The commissioner shall work with providers to ensure proper licensure or
17.10certification to meet medical assistance or third-party payor reimbursement requirements.

17.11    Sec. 12. CASE MANAGEMENT; BEST PRACTICES.
17.12    The commissioner of human services in consultation with consumers, families,
17.13counties, and other interested stakeholders will develop recommendations for changes in
17.14the adult mental health act related to case management, consistent with evidence-based
17.15and best practices.

17.16    Sec. 13. INPATIENT PSYCHIATRIC BEDS; STUDY.
17.17    (a) The commissioner of health shall study the status of inpatient psychiatric beds
17.18in Minnesota and provide recommendations to the legislature on improving access to
17.19inpatient care, especially for children and adolescents. In conducting the study, the
17.20commissioner shall consult with the commissioner of human services and representatives
17.21from psychiatry, hospitals, emergency medicine, and mental health advocacy.
17.22    (b) The study shall consider the following:
17.23    (1) the number and frequency of patients, both adults and children, diverted to other
17.24hospitals because of the unavailability of an appropriate psychiatric bed in the hospital for
17.25which they sought care;
17.26    (2) the effect on emergency rooms due to the inability to place a patient in a
17.27psychiatric hospital bed;
17.28    (3) the difference in health plan reimbursement for psychiatric beds compared
17.29to beds devoted to general medical care and the effect this reimbursement has on the
17.30availability of inpatient psychiatric beds;
17.31    (4) the number of psychiatric beds per capita in Minnesota compared to the number
17.32of psychiatric beds per capita in the United States, and the appropriate number of
17.33psychiatric beds per capita in Minnesota; and
17.34    (5) the number of practicing child and adolescent psychiatrists and the number
17.35necessary per capita to meet the needs of Minnesota children.
18.1    (c) The commissioner shall report recommendations to the legislature by January
18.215, 2008.

18.3    Sec. 14. INCENTIVE PAYMENTS; RULES.
18.4    (a) The commissioner of employment and economic development under rulemaking
18.5authority granted in Minnesota Statutes, section 116J.035, shall develop rules to
18.6implement incentive payments to providers that place individuals in jobs that allow them
18.7to leave SSI and SSDI dependency and become economically self-sufficient.
18.8    (b) The commissioner of employment and economic development under rulemaking
18.9authority granted in Minnesota Statutes, section 116J.035, shall develop rules to implement
18.10incentive payments for providers that place individuals in jobs that provide benefits.

18.11    Sec. 15. APPROPRIATIONS.
18.12    Subdivision 1. Employment support. (a) $700,000 in fiscal year 2008 and
18.13$700,000 in fiscal year 2009 are appropriated from the general fund to the commissioner
18.14of employment and economic development to fund special projects focused on providing
18.15employment support under section 10.
18.16    (b) $1,400,000 in fiscal year 2008 and $1,400,00 in fiscal year 2009 are appropriated
18.17to the commissioner of employment and economic development for the extended
18.18employment-serious mental illness program under section 10.
18.19    (c) $1,000,000 in fiscal year 2008 and $1,000,000 in fiscal year 2009 are appropriated
18.20to the commissioner of employment and economic development to supplement funds paid
18.21for wage incentives for the community support fund established in Minnesota Rules,
18.22part 3300.2045.
18.23    Subd. 2. Community mental health programs. $....... is appropriated in fiscal year
18.242008 from the general fund to the commissioner of human services to contract for training
18.25and consultation for clinical supervisors and staff of community mental health centers who
18.26provide services to children and adults. The purpose of the training and consultation is to
18.27improve clinical supervision of staff, strengthen compliance with federal and state rules
18.28and regulations, and to recommend strategies for standardization and simplification of
18.29administrative functions among community mental health centers.
18.30    Subd. 3. Culturally competent mental health services grants. $280,000 in fiscal
18.31year 2008 and $280,000 in fiscal year 2009 are appropriated from the general fund to the
18.32commissioner of human services to award four grants of up to $50,000 for culturally
18.33competent mental health services under section 5. Each year $40,000 of the appropriation
18.34is allocated to the commissioner for administrative costs.
19.1    Subd. 4. Bridges rental housing assistance program. $3,400,000 in fiscal year
19.22008 and $3,400,000 in fiscal year 2009 are appropriated from the general fund to the
19.3Housing Finance Agency for the Bridges rental housing assistance program under
19.4Minnesota Statutes, section 462A.2097. These appropriations are in addition to any base
19.5appropriations for this purpose and shall become part of the agency's base.
19.6    Subd. 5. MFIP and children's mental health pilot project. $150,000 in fiscal year
19.72008 and $150,000. in fiscal year 2009 are appropriated from the general fund to the
19.8commissioner of human services to fund the pilot project under section 7.
19.9    Subd. 6. Crisis intervention training. $144,000 is appropriated in fiscal year 2008
19.10from the general fund to the commissioner of public safety to fund grants to local police
19.11departments to conduct crisis intervention training under section 6. The commissioner
19.12may use up to 2.5 percent of the amount appropriated under this subdivision for costs of
19.13administering this grant program.
19.14    Subd. 7. Televideo conferencing. $....... in fiscal year 2008 and $....... in fiscal year
19.152009 are appropriated from the general fund to the Office of Enterprise Technology to
19.16provide televideo conferencing under section 11.
19.17    Subd. 89. Dual diagnosis; demonstration project. $....... in fiscal year 2008 and
19.18$....... in fiscal year 2009 are appropriated from the general fund to the commissioner of
19.19human services to fund the demonstration projects under section 12.


19.22    Section 1. Minnesota Statutes 2006, section 256B.038, is amended to read:
19.23256B.038 PROVIDER RATE INCREASES AFTER JUNE 30, 1999.
19.24    (a) For fiscal years beginning on or after July 1, 1999, the commissioner of finance
19.25shall include an annual inflationary adjustment in payment rates for the services listed
19.26in paragraph (b) as a budget change request in each biennial detailed expenditure budget
19.27submitted to the legislature under section 16A.11. The adjustment shall be accomplished
19.28by indexing the rates in effect for inflation based on the change in the Consumer Price
19.29Index-All Items (United States city average)(CPI-U) as forecasted by Data Resources,
19.30Inc., in the fourth quarter of the prior year for the calendar year during which the rate
19.31increase occurs.
19.32    (b) Within the limits of appropriations specifically for this purpose, the commissioner
19.33shall apply the rate increases in paragraph (a) to home and community-based waiver
19.34services for persons with developmental disabilities under section 256B.501; home and
19.35community-based waiver services for the elderly under section 256B.0915; waivered
20.1services under community alternatives for disabled individuals under section 256B.49;
20.2community alternative care waivered services under section 256B.49; traumatic brain
20.3injury waivered services under section 256B.49; nursing services and home health services
20.4under section 256B.0625, subdivision 6a; personal care services and nursing supervision
20.5of personal care services under section 256B.0625, subdivision 19a; private duty nursing
20.6services under section 256B.0625, subdivision 7; day training and habilitation services
20.7for adults with developmental disabilities under sections 252.40 to 252.46; physical
20.8therapy services under sections 256B.0625, subdivision 8, and 256D.03, subdivision 4;
20.9occupational therapy services under sections 256B.0625, subdivision 8a, and 256D.03,
20.10subdivision 4 ; speech-language therapy services under section 256D.03, subdivision
20.114 , and Minnesota Rules, part 9505.0390; respiratory therapy services under section
20.12256D.03, subdivision 4 , and Minnesota Rules, part 9505.0295; physician services under
20.13section 256B.0625, subdivision 3; dental services under sections 256B.0625, subdivision
20.149 , and 256D.03, subdivision 4; alternative care services under section 256B.0913; adult
20.15residential program grants under Minnesota Rules, parts 9535.2000 to 9535.3000;
20.16adult and family community support grants under Minnesota Rules, parts 9535.1700
20.17to 9535.1760; and semi-independent living services under section 252.275, including
20.18SILS funding under county social services grants formerly funded under chapter 256I;
20.19children's therapeutic services and support services under section 256B.0943; and adult
20.20rehabilitative mental health services under section 256B.0623.
20.21    (c) The commissioner shall increase prepaid medical assistance program capitation
20.22rates as appropriate to reflect the rate increases in this section.
20.23    (d) In implementing this section, the commissioner shall consider proposing a
20.24schedule to equalize rates paid by different programs for the same service.

20.25    Sec. 2. [256B.0615] MENTAL HEALTH CERTIFIED PEER SPECIALIST.
20.26    Subdivision 1. Scope. Medical assistance covers mental health certified peer
20.27specialists services, as established in subdivision 2, subject to federal approval, if provided
20.28to recipients who are eligible for services under sections 256B.0622 and 256B.0623,
20.29and are provided by a certified peer specialist who has completed the training under
20.30subdivision 5.
20.31    Subd. 2. Establishment. The commissioner of human services shall establish a
20.32certified peer specialists program model, which:
20.33    (1) provides nonclinical peer support counseling by certified peer specialists;
20.34    (2) provides a part of a wraparound continuum of services in conjunction with
20.35other community mental health services;
20.36    (3) is individualized to the consumer; and
21.1    (4) promotes socialization, recovery, self-sufficiency, self-advocacy, development of
21.2natural supports, and maintenance of skills learned in other support services.
21.3    Subd. 3. Eligibility. Peer support services may be made available to consumers
21.4of the intensive rehabilitative mental health services under section 256B.0622 and adult
21.5rehabilitative mental health services under section 256B.0623.
21.6    Subd. 4. Peer support specialist program providers. The commissioner shall
21.7develop a process to certify peer support specialist programs, in accordance with the
21.8federal guidelines, in order for the program to bill for reimbursable services. Peer support
21.9programs may be freestanding or within existing mental health community provider
21.10centers.
21.11    Subd. 5. Certified peer specialist training and certification. The commissioner
21.12of human services shall develop a training and certification process for certified peer
21.13specialists who must be at least 21 years of age and have a high school diploma or its
21.14equivalent. The candidates must have had a primary diagnosis of mental illness and be a
21.15current or former consumer of mental health services, must demonstrate leadership and
21.16advocacy skills, and must have a strong dedication to recovery. The training curriculum
21.17must teach participating consumers specific skills relevant to providing peer support
21.18to other consumers. In addition to initial training and certification, the commissioner
21.19shall develop ongoing continuing educational workshops on pertinent issues related to
21.20peer support counseling.

21.21    Sec. 3. Minnesota Statutes 2006, section 256B.0622, subdivision 2, is amended to read:
21.22    Subd. 2. Definitions. For purposes of this section, the following terms have the
21.23meanings given them.
21.24    (a) "Intensive nonresidential rehabilitative mental health services" means adult
21.25rehabilitative mental health services as defined in section 256B.0623, subdivision 2,
21.26paragraph (a), except that these services are provided by a multidisciplinary staff using
21.27a total team approach consistent with assertive community treatment, the Fairweather
21.28Lodge treatment model, as defined by the standards established by the National Coalition
21.29for Community Living, and other evidence-based practices, and directed to recipients with
21.30a serious mental illness who require intensive services.
21.31    (b) "Intensive residential rehabilitative mental health services" means short-term,
21.32time-limited services provided in a residential setting to recipients who are in need of
21.33more restrictive settings and are at risk of significant functional deterioration if they do
21.34not receive these services. Services are designed to develop and enhance psychiatric
21.35stability, personal and emotional adjustment, self-sufficiency, and skills to live in a more
22.1independent setting. Services must be directed toward a targeted discharge date with
22.2specified client outcomes and must be consistent with the Fairweather Lodge treatment
22.3model as defined in paragraph (a), and other evidence-based practices.
22.4    (c) "Evidence-based practices" are nationally recognized mental health services that
22.5are proven by substantial research to be effective in helping individuals with serious
22.6mental illness obtain specific treatment goals.
22.7    (d) "Overnight staff" means a member of the intensive residential rehabilitative
22.8mental health treatment team who is responsible during hours when recipients are
22.9typically asleep.
22.10    (e) "Treatment team" means all staff who provide services under this section
22.11to recipients. At a minimum, this includes the clinical supervisor, mental health
22.12professionals, as defined in section 245.462, subdivision 18, clauses (1) to (5); mental
22.13health practitioners, and as defined in section 245.462, subdivision 17; mental health
22.14rehabilitation workers under section 256B.0623, subdivision 5, clause (3); and certified
22.15peer specialists under section 256B.0615.

22.16    Sec. 4. Minnesota Statutes 2006, section 256B.0623, subdivision 8, is amended to read:
22.17    Subd. 8. Diagnostic assessment. Providers of adult rehabilitative mental
22.18health services must complete a diagnostic assessment as defined in section 245.462,
22.19subdivision 9 , within five days after the recipient's second visit or within 30 days after
22.20intake, whichever occurs first. A diagnostic assessment must be reimbursed at the
22.21same rate as an assessment under section 256B.0655, subdivision 8. In cases where a
22.22diagnostic assessment is available that reflects the recipient's current status, and has been
22.23completed within 180 days preceding admission, an update must be completed. An
22.24update shall include a written summary by a mental health professional of the recipient's
22.25current mental health status and service needs. If the recipient's mental health status
22.26has changed significantly since the adult's most recent diagnostic assessment, a new
22.27diagnostic assessment is required. For initial implementation of adult rehabilitative mental
22.28health services, until June 30, 2005, a diagnostic assessment that reflects the recipient's
22.29current status and has been completed within the past three years preceding admission
22.30is acceptable.

22.31    Sec. 5. Minnesota Statutes 2006, section 256B.0625, subdivision 38, is amended to
22.32read:
22.33    Subd. 38. Payments for mental health services. (a) Payments for mental
22.34health services covered under the medical assistance program that are provided by
22.35masters-prepared mental health professionals shall be 80 percent of the rate paid to
22.36doctoral-prepared professionals. Payments for mental health services covered under
23.1the medical assistance program that are provided by masters-prepared mental health
23.2professionals employed by community mental health centers shall be 100 percent of the
23.3rate paid to doctoral-prepared professionals. For purposes of reimbursement of mental
23.4health professionals under the medical assistance program, all
23.5    (b) Payments for mental health services covered under the medical assistance
23.6program that are provided by social workers who:
23.7    (1) have received a master's degree in social work from a program accredited by the
23.8Council on Social Work Education;
23.9    (2) are licensed at the level of graduate social worker or independent social worker;
23.10and
23.11    (3) are practicing clinical social work under appropriate supervision, as defined by
23.12chapter 148D; and
23.13    (4) meet all requirements under Minnesota Rules, part 9505.0323, subpart 24, and.
23.14Payments under this paragraph shall be paid accordingly according to Minnesota Rules,
23.15part 9505.0323, subpart 24, unless paragraph (c) is applicable.
23.16    (c) Payments for mental health services covered under the medical assistance
23.17program that are provided by an individual who is employed by a community mental
23.18health center and:
23.19    (1) is a licensed graduate social worker under section 148D.055, subdivision 3, or a
23.20licensed independent social worker under 148D.055, subdivision 4;
23.21    (2) has completed all requirements for licensure or board certification as a mental
23.22health professional except for the requirements for supervised experience in the delivery
23.23of mental health services, or
23.24    (3) is a student in a bona fide field placement or internship under a program leading
23.25to completion of the requirements for licensure as a mental health professional
23.26shall be reimbursed at 100 percent of the rate paid to the supervising professional.
23.27The individual providing the service under this paragraph must be under the clinical
23.28supervision of a fully qualified mental health professional.
23.29    (d) Subject to federal approval, medical assistance covers clinical supervision of
23.30mental health practitioners by a mental health professional when clinical supervision is
23.31required as part of other medical assistance services.

23.32    Sec. 6. Minnesota Statutes 2006, section 256B.0625, subdivision 43, is amended to
23.33read:
23.34    Subd. 43. Mental health provider travel time. Medical assistance covers provider
23.35travel time. The per-minute rate is to be calculated at two times the IRS mileage rate if
23.36a recipient's individual treatment plan requires the provision of mental health services
24.1outside of the provider's normal place of business. This Reimbursement under this
24.2subdivision does not include any travel time which is included in other billable services,
24.3and is only covered when the mental health service being provided to a recipient is
24.4covered under medical assistance.

24.5    Sec. 7. Minnesota Statutes 2006, section 256B.0625, subdivision 46, is amended to
24.6read:
24.7    Subd. 46. Mental health telemedicine. Effective January 1, 2006, and subject to
24.8federal approval, mental health services that are otherwise covered by medical assistance
24.9as direct face-to-face services may be provided via two-way interactive video. Use of
24.10two-way interactive video must be medically appropriate to the condition and needs
24.11of the person being served. Reimbursement is at the same rates and under the same
24.12conditions that would otherwise apply to the service and shall include payment for the
24.13originating facility fee and the cost of broadband connections. The interactive video
24.14equipment and connection must comply with Medicare standards in effect at the time
24.15the service is provided.

24.16    Sec. 8. Minnesota Statutes 2006, section 256B.0943, is amended by adding a
24.17subdivision to read:
24.18    Subd. 11a. Reimbursement of diagnostic assessments. A diagnostic assessment
24.19under this section must be reimbursed at the same rate as an assessment under section
24.20256B.0655, subdivision 8.

24.21    Sec. 9. Minnesota Statutes 2006, section 256B.69, subdivision 5g, is amended to read:
24.22    Subd. 5g. Payment for covered services. For services rendered on or after January
24.231, 2003, the total payment made to managed care plans for providing covered services
24.24under the medical assistance and general assistance medical care programs is reduced by
24.25.5 percent from their current statutory rates. This provision excludes payments for nursing
24.26home services, home and community-based waivers, and payments to demonstration
24.27projects for persons with disabilities, and mental health services added as covered benefits
24.28after December 31, 2007.

24.29    Sec. 10. Minnesota Statutes 2006, section 256B.69, subdivision 5h, is amended to read:
24.30    Subd. 5h. Payment reduction. In addition to the reduction in subdivision 5g,
24.31the total payment made to managed care plans under the medical assistance program is
24.32reduced 1.0 percent for services provided on or after October 1, 2003, and an additional
24.331.0 percent for services provided on or after January 1, 2004. This provision excludes
24.34payments for nursing home services, home and community-based waivers, and payments
25.1to demonstration projects for persons with disabilities, and mental health services added as
25.2covered benefits after December 1, 2007.

25.3    Sec. 11. Minnesota Statutes 2006, section 256B.763, is amended to read:
25.4256B.763 CRITICAL ACCESS MENTAL HEALTH RATE INCREASE.
25.5    (a) For services defined in paragraph (b) and rendered on or after July 1, 2007,
25.6payment rates shall be increased by 23.7 percent over the rates in effect on January 1,
25.72006, for:
25.8    (1) psychiatrists and advanced practice registered nurses with a psychiatric specialty;
25.9    (2) community mental health centers under section 256B.0625, subdivision 5; and
25.10    (3) mental health clinics and centers certified under Minnesota Rules, parts
25.119520.0750 to 9520.0870, or hospital outpatient psychiatric departments that are designated
25.12as essential community providers under section 62Q.19.
25.13    (b) This increase applies to group skills training when provided as a component of
25.14children's therapeutic services and support, psychotherapy, medication management,
25.15evaluation and management, diagnostic assessment, explanation of findings, psychological
25.16testing, neuropsychological services, direction of behavioral aides, and inpatient
25.17consultation.
25.18    (c) This increase does not apply to rates that are governed by section 256B.0625,
25.19subdivision 30, or 256B.761, paragraph (b), other cost-based rates, rates that are
25.20negotiated with the county, rates that are established by the federal government, or rates
25.21that increased between January 1, 2004, and January 1, 2005.
25.22    (d) The commissioner shall adjust rates paid to prepaid health plans under contract
25.23with the commissioner to reflect the rate increases provided in paragraphs (a) and (e). The
25.24prepaid health plan must pass this rate increase to the providers identified in paragraphs
25.25(a) and (e).
25.26    (e) Effective January 1, 2008, payment rates for all services not included in
25.27paragraph (b) shall increase by 23.7 percent over rates in effect on January 1, 2006, for all
25.28services provided by community mental health centers under 256B.0625, subdivision 5.

25.29    Sec. 12. Minnesota Statutes 2006, section 256D.03, subdivision 4, is amended to read:
25.30    Subd. 4. General assistance medical care; services. (a)(i) For a person who is
25.31eligible under subdivision 3, paragraph (a), clause (2), item (i), general assistance medical
25.32care covers, except as provided in paragraph (c):
25.33    (1) inpatient hospital services;
25.34    (2) outpatient hospital services;
25.35    (3) services provided by Medicare certified rehabilitation agencies;
26.1    (4) prescription drugs and other products recommended through the process
26.2established in section 256B.0625, subdivision 13;
26.3    (5) equipment necessary to administer insulin and diagnostic supplies and equipment
26.4for diabetics to monitor blood sugar level;
26.5    (6) eyeglasses and eye examinations provided by a physician or optometrist;
26.6    (7) hearing aids;
26.7    (8) prosthetic devices;
26.8    (9) laboratory and X-ray services;
26.9    (10) physician's services;
26.10    (11) medical transportation except special transportation;
26.11    (12) chiropractic services as covered under the medical assistance program;
26.12    (13) podiatric services;
26.13    (14) dental services as covered under the medical assistance program;
26.14    (15) outpatient services provided by a mental health center or clinic that is under
26.15contract with the county board and is established under section 245.62 mental health
26.16services covered under chapter 256B;
26.17    (16) day treatment services for mental illness provided under contract with the
26.18county board;
26.19    (17) prescribed medications for persons who have been diagnosed as mentally ill as
26.20necessary to prevent more restrictive institutionalization;
26.21    (18) psychological services, (17) medical supplies and equipment, and Medicare
26.22premiums, coinsurance and deductible payments;
26.23    (19) (18) medical equipment not specifically listed in this paragraph when the use
26.24of the equipment will prevent the need for costlier services that are reimbursable under
26.25this subdivision;
26.26    (20) (19) services performed by a certified pediatric nurse practitioner, a
26.27certified family nurse practitioner, a certified adult nurse practitioner, a certified
26.28obstetric/gynecological nurse practitioner, a certified neonatal nurse practitioner, or a
26.29certified geriatric nurse practitioner in independent practice, if (1) the service is otherwise
26.30covered under this chapter as a physician service, (2) the service provided on an inpatient
26.31basis is not included as part of the cost for inpatient services included in the operating
26.32payment rate, and (3) the service is within the scope of practice of the nurse practitioner's
26.33license as a registered nurse, as defined in section 148.171;
26.34    (21) (20) services of a certified public health nurse or a registered nurse practicing
26.35in a public health nursing clinic that is a department of, or that operates under the direct
27.1authority of, a unit of government, if the service is within the scope of practice of the
27.2public health nurse's license as a registered nurse, as defined in section 148.171;
27.3    (22) (21) telemedicine consultations, to the extent they are covered under section
27.4256B.0625, subdivision 3b ; and
27.5    (23) mental health telemedicine and psychiatric consultation as covered under
27.6section 256B.0625, subdivisions 46 and 48
27.7    (22) up to six hours of service per client per year, without authorization, of
27.8consultation and care coordination as directed by an individual treatment plan, and as a
27.9component of children's therapeutic services and supports, adult rehabilitative mental
27.10health services, or community mental health services; and
27.11    (23) up to six hours of service per client per year for collateral contacts as a
27.12component of children's therapeutic services and supports, adult rehabilitative mental
27.13health services, or community mental health services. These services must be directed
27.14by an individual treatment plan and are solely for the purpose of assisting parents and
27.15others toward understanding, accommodating, and better caregiving of the person with
27.16mental illness or emotional disturbance.
27.17    (ii) Effective October 1, 2003, for a person who is eligible under subdivision 3,
27.18paragraph (a), clause (2), item (ii), general assistance medical care coverage is limited
27.19to inpatient hospital services, including physician services provided during the inpatient
27.20hospital stay. A $1,000 deductible is required for each inpatient hospitalization.
27.21    (b) Effective August 1, 2005, sex reassignment surgery is not covered under this
27.22subdivision.
27.23    (c) In order to contain costs, the commissioner of human services shall select
27.24vendors of medical care who can provide the most economical care consistent with high
27.25medical standards and shall where possible contract with organizations on a prepaid
27.26capitation basis to provide these services. The commissioner shall consider proposals by
27.27counties and vendors for prepaid health plans, competitive bidding programs, block grants,
27.28or other vendor payment mechanisms designed to provide services in an economical
27.29manner or to control utilization, with safeguards to ensure that necessary services are
27.30provided. Before implementing prepaid programs in counties with a county operated or
27.31affiliated public teaching hospital or a hospital or clinic operated by the University of
27.32Minnesota, the commissioner shall consider the risks the prepaid program creates for the
27.33hospital and allow the county or hospital the opportunity to participate in the program in a
27.34manner that reflects the risk of adverse selection and the nature of the patients served by
27.35the hospital, provided the terms of participation in the program are competitive with the
27.36terms of other participants considering the nature of the population served. Payment for
28.1services provided pursuant to this subdivision shall be as provided to medical assistance
28.2vendors of these services under sections 256B.02, subdivision 8, and 256B.0625. For
28.3payments made during fiscal year 1990 and later years, the commissioner shall consult
28.4with an independent actuary in establishing prepayment rates, but shall retain final control
28.5over the rate methodology.
28.6    (d) Recipients eligible under subdivision 3, paragraph (a), shall pay the following
28.7co-payments for services provided on or after October 1, 2003:
28.8    (1) $25 for eyeglasses;
28.9    (2) $25 for nonemergency visits to a hospital-based emergency room;
28.10    (3) $3 per brand-name drug prescription and $1 per generic drug prescription,
28.11subject to a $12 per month maximum for prescription drug co-payments. No co-payments
28.12shall apply to antipsychotic drugs when used for the treatment of mental illness; and
28.13    (4) 50 percent coinsurance on restorative dental services.
28.14    (e) Co-payments shall be limited to one per day per provider for nonpreventive visits,
28.15eyeglasses, and nonemergency visits to a hospital-based emergency room. Recipients of
28.16general assistance medical care are responsible for all co-payments in this subdivision.
28.17The general assistance medical care reimbursement to the provider shall be reduced by
28.18the amount of the co-payment, except that reimbursement for prescription drugs shall not
28.19be reduced once a recipient has reached the $12 per month maximum for prescription
28.20drug co-payments. The provider collects the co-payment from the recipient. Providers
28.21may not deny services to recipients who are unable to pay the co-payment, except as
28.22provided in paragraph (f).
28.23    (f) If it is the routine business practice of a provider to refuse service to an individual
28.24with uncollected debt, the provider may include uncollected co-payments under this
28.25section. A provider must give advance notice to a recipient with uncollected debt before
28.26services can be denied.
28.27    (g) Any county may, from its own resources, provide medical payments for which
28.28state payments are not made.
28.29    (h) Chemical dependency services that are reimbursed under chapter 254B must not
28.30be reimbursed under general assistance medical care.
28.31    (i) The maximum payment for new vendors enrolled in the general assistance
28.32medical care program after the base year shall be determined from the average usual and
28.33customary charge of the same vendor type enrolled in the base year.
28.34    (j) The conditions of payment for services under this subdivision are the same as the
28.35conditions specified in rules adopted under chapter 256B governing the medical assistance
28.36program, unless otherwise provided by statute or rule.
29.1    (k) Inpatient and outpatient payments shall be reduced by five percent, effective July
29.21, 2003. This reduction is in addition to the five percent reduction effective July 1, 2003,
29.3and incorporated by reference in paragraph (i).
29.4    (l) Payments for all other health services except inpatient, outpatient, and pharmacy
29.5services shall be reduced by five percent, effective July 1, 2003.
29.6    (m) Payments to managed care plans shall be reduced by five percent for services
29.7provided on or after October 1, 2003.
29.8    (n) A hospital receiving a reduced payment as a result of this section may apply the
29.9unpaid balance toward satisfaction of the hospital's bad debts.
29.10    (o) Fee-for-service payments for nonpreventive visits shall be reduced by $3
29.11for services provided on or after January 1, 2006. For purposes of this subdivision, a
29.12visit means an episode of service which is required because of a recipient's symptoms,
29.13diagnosis, or established illness, and which is delivered in an ambulatory setting by
29.14a physician or physician ancillary, chiropractor, podiatrist, advance practice nurse,
29.15audiologist, optician, or optometrist.
29.16    (p) Payments to managed care plans shall not be increased as a result of the removal
29.17of the $3 nonpreventive visit co-payment effective January 1, 2006.
29.18    (q) Payments for mental health services added as covered benefits after December 1,
29.192007, are not subject to the reductions in paragraphs (i), (k), (l), and (m).

29.20    Sec. 13. Minnesota Statutes 2006, section 256D.44, subdivision 5, is amended to read:
29.21    Subd. 5. Special needs. In addition to the state standards of assistance established in
29.22subdivisions 1 to 4, payments are allowed for the following special needs of recipients of
29.23Minnesota supplemental aid who are not residents of a nursing home, a regional treatment
29.24center, or a group residential housing facility.
29.25    (a) The county agency shall pay a monthly allowance for medically prescribed
29.26diets if the cost of those additional dietary needs cannot be met through some other
29.27maintenance benefit. The need for special diets or dietary items must be prescribed by
29.28a licensed physician. Costs for special diets shall be determined as percentages of the
29.29allotment for a one-person household under the thrifty food plan as defined by the United
29.30States Department of Agriculture. The types of diets and the percentages of the thrifty
29.31food plan that are covered are as follows:
29.32    (1) high protein diet, at least 80 grams daily, 25 percent of thrifty food plan;
29.33    (2) controlled protein diet, 40 to 60 grams and requires special products, 100 percent
29.34of thrifty food plan;
29.35    (3) controlled protein diet, less than 40 grams and requires special products, 125
29.36percent of thrifty food plan;
30.1    (4) low cholesterol diet, 25 percent of thrifty food plan;
30.2    (5) high residue diet, 20 percent of thrifty food plan;
30.3    (6) pregnancy and lactation diet, 35 percent of thrifty food plan;
30.4    (7) gluten-free diet, 25 percent of thrifty food plan;
30.5    (8) lactose-free diet, 25 percent of thrifty food plan;
30.6    (9) antidumping diet, 15 percent of thrifty food plan;
30.7    (10) hypoglycemic diet, 15 percent of thrifty food plan; or
30.8    (11) ketogenic diet, 25 percent of thrifty food plan.
30.9    (b) Payment for nonrecurring special needs must be allowed for necessary home
30.10repairs or necessary repairs or replacement of household furniture and appliances using
30.11the payment standard of the AFDC program in effect on July 16, 1996, for these expenses,
30.12as long as other funding sources are not available.
30.13    (c) A fee for guardian or conservator service is allowed at a reasonable rate
30.14negotiated by the county or approved by the court. This rate shall not exceed five percent
30.15of the assistance unit's gross monthly income up to a maximum of $100 per month. If the
30.16guardian or conservator is a member of the county agency staff, no fee is allowed.
30.17    (d) The county agency shall continue to pay a monthly allowance of $68 for
30.18restaurant meals for a person who was receiving a restaurant meal allowance on June 1,
30.191990, and who eats two or more meals in a restaurant daily. The allowance must continue
30.20until the person has not received Minnesota supplemental aid for one full calendar month
30.21or until the person's living arrangement changes and the person no longer meets the criteria
30.22for the restaurant meal allowance, whichever occurs first.
30.23    (e) A fee of ten percent of the recipient's gross income or $25, whichever is less,
30.24is allowed for representative payee services provided by an agency that meets the
30.25requirements under SSI regulations to charge a fee for representative payee services. This
30.26special need is available to all recipients of Minnesota supplemental aid regardless of
30.27their living arrangement.
30.28    (f) Notwithstanding the language in this subdivision, an amount equal to the
30.29maximum allotment authorized by the federal Food Stamp Program for a single individual
30.30which is in effect on the first day of January July of the previous current state fiscal
30.31year will be added to the standards of assistance established in subdivisions 1 to 4 for
30.32individuals under the age of 65 who are relocating from an institution, or an adult mental
30.33health residential treatment program under section 256B.0622, or an adult eligible for the
30.34community alternatives for disabled individuals waiver, and who are shelter needy. An
30.35eligible individual who receives this benefit prior to age 65 may continue to receive the
30.36benefit after the age of 65.
31.1    "Shelter needy" means that the assistance unit incurs monthly shelter costs that
31.2exceed 40 percent of the assistance unit's gross income before the application of this
31.3special needs standard. "Gross income" for the purposes of this section is the applicant's or
31.4recipient's income as defined in section 256D.35, subdivision 10, or the standard specified
31.5in subdivision 3, whichever is greater. A recipient of a federal or state housing subsidy,
31.6that limits shelter costs to a percentage of gross income, shall not be considered shelter
31.7needy for purposes of this paragraph.

31.8    Sec. 14. Minnesota Statutes 2006, section 256L.03, subdivision 1, is amended to read:
31.9    Subdivision 1. Covered health services. For individuals under section 256L.04,
31.10subdivision 7 , with income no greater than 75 percent of the federal poverty guidelines
31.11or for families with children under section 256L.04, subdivision 1, all subdivisions of
31.12this section apply. "Covered health services" means the health services reimbursed
31.13under chapter 256B, with the exception of inpatient hospital services, special education
31.14services, private duty nursing services, adult dental care services other than services
31.15covered under section 256B.0625, subdivision 9, orthodontic services, nonemergency
31.16medical transportation services, personal care assistant and case management services,
31.17nursing home or intermediate care facilities services, inpatient mental health services,
31.18and chemical dependency services. Outpatient mental health services covered under the
31.19MinnesotaCare program are limited to diagnostic assessments, psychological testing,
31.20explanation of findings, mental health telemedicine, psychiatric consultation, medication
31.21management by a physician, day treatment, partial hospitalization, and individual, family,
31.22and group psychotherapy.
31.23    No public funds shall be used for coverage of abortion under MinnesotaCare
31.24except where the life of the female would be endangered or substantial and irreversible
31.25impairment of a major bodily function would result if the fetus were carried to term; or
31.26where the pregnancy is the result of rape or incest.
31.27    Covered health services shall be expanded as provided in this section.

31.28    Sec. 15. Minnesota Statutes 2006, section 256L.03, subdivision 5, is amended to read:
31.29    Subd. 5. Co-payments and coinsurance. (a) Except as provided in paragraphs (b)
31.30and (c), the MinnesotaCare benefit plan shall include the following co-payments and
31.31coinsurance requirements for all enrollees:
31.32    (1) ten percent of the paid charges for inpatient hospital services for adult enrollees,
31.33subject to an annual inpatient out-of-pocket maximum of $1,000 per individual and
31.34$3,000 per family;
31.35    (2) $3 per prescription for adult enrollees;
31.36    (3) $25 for eyeglasses for adult enrollees;
32.1    (4) $3 per nonpreventive visit. For purposes of this subdivision, a "visit" means an
32.2episode of service which is required because of a recipient's symptoms, diagnosis, or
32.3established illness, and which is delivered in an ambulatory setting by a physician or
32.4physician ancillary, chiropractor, podiatrist, nurse midwife, advanced practice nurse,
32.5audiologist, optician, or optometrist; and
32.6    (5) $6 for nonemergency visits to a hospital-based emergency room.
32.7    (b) Paragraph (a), clause (1), does not apply to parents and relative caretakers of
32.8children under the age of 21 in households with family income equal to or less than 175
32.9percent of the federal poverty guidelines. Paragraph (a), clause (1), does not apply to
32.10parents and relative caretakers of children under the age of 21 in households with family
32.11income greater than 175 percent of the federal poverty guidelines for inpatient hospital
32.12admissions occurring on or after January 1, 2001.
32.13    (c) Paragraph (a), clauses (1) to (4), do not apply to pregnant women and children
32.14under the age of 21.
32.15    (d) Paragraph (a), clause (4), does not apply to mental health services.
32.16    (e) Adult enrollees with family gross income that exceeds 175 percent of the
32.17federal poverty guidelines and who are not pregnant shall be financially responsible for
32.18the coinsurance amount, if applicable, and amounts which exceed the $10,000 inpatient
32.19hospital benefit limit.
32.20    (e) (f) When a MinnesotaCare enrollee becomes a member of a prepaid health plan,
32.21or changes from one prepaid health plan to another during a calendar year, any charges
32.22submitted towards the $10,000 annual inpatient benefit limit, and any out-of-pocket
32.23expenses incurred by the enrollee for inpatient services, that were submitted or incurred
32.24prior to enrollment, or prior to the change in health plans, shall be disregarded.

32.25    Sec. 16. Minnesota Statutes 2006, section 256L.035, is amended to read:
32.26256L.035 LIMITED BENEFITS COVERAGE FOR CERTAIN SINGLE
32.27ADULTS AND HOUSEHOLDS WITHOUT CHILDREN.
32.28    (a) "Covered health services" for individuals under section 256L.04, subdivision
32.297 , with income above 75 percent, but not exceeding 175 percent, of the federal poverty
32.30guideline means:
32.31    (1) inpatient hospitalization benefits with a ten percent co-payment up to $1,000 and
32.32subject to an annual limitation of $10,000;
32.33    (2) physician services provided during an inpatient stay; and
32.34    (3) physician services not provided during an inpatient stay; outpatient hospital
32.35services; freestanding ambulatory surgical center services; chiropractic services; lab and
33.1diagnostic services; diabetic supplies and equipment; mental health services as covered
33.2under chapter 256B; and prescription drugs; subject to the following co-payments:
33.3    (i) $50 co-pay per emergency room visit;
33.4    (ii) $3 co-pay per prescription drug; and
33.5    (iii) $5 co-pay per nonpreventive visit; except this co-pay does not apply to mental
33.6health services or community mental health services.
33.7The services covered under this section may be provided by a physician, physician
33.8ancillary, chiropractor, psychologist, or licensed independent clinical social worker, or
33.9other mental health providers covered under chapter 256B if the services are within the
33.10scope of practice of that health care professional.
33.11    For purposes of this section, "a visit" means an episode of service which is required
33.12because of a recipient's symptoms, diagnosis, or established illness, and which is delivered
33.13in an ambulatory setting by any health care provider identified in this paragraph.
33.14    Enrollees are responsible for all co-payments in this section.
33.15    (b) Reimbursement to the providers shall be reduced by the amount of the
33.16co-payment, except that reimbursement for prescription drugs shall not be reduced once a
33.17recipient has reached the $20 per month maximum for prescription drug co-payments.
33.18The provider collects the co-payment from the recipient. Providers may not deny services
33.19to recipients who are unable to pay the co-payment, except as provided in paragraph (c).
33.20    (c) If it is the routine business practice of a provider to refuse service to an individual
33.21with uncollected debt, the provider may include uncollected co-payments under this
33.22section. A provider must give advance notice to a recipient with uncollected debt before
33.23services can be denied.

33.24    Sec. 17. Minnesota Statutes 2006, section 256L.07, subdivision 3, is amended to read:
33.25    Subd. 3. Other health coverage. (a) Families and individuals enrolled in the
33.26MinnesotaCare program must have no health coverage while enrolled or for at least four
33.27months prior to application and renewal. Children enrolled in the original children's health
33.28plan and children in families with income equal to or less than 150 percent of the federal
33.29poverty guidelines, who have other health insurance, are eligible if the coverage:
33.30    (1) lacks two or more of the following:
33.31    (i) basic hospital insurance;
33.32    (ii) medical-surgical insurance;
33.33    (iii) prescription drug coverage;
33.34    (iv) dental coverage; or
33.35    (v) vision coverage; or
33.36    (vi) mental health coverage;
34.1    (2) requires a deductible of $100 or more per person per year; or
34.2    (3) lacks coverage because the child has exceeded the maximum coverage for a
34.3particular diagnosis or the policy excludes a particular diagnosis.
34.4    The commissioner may change this eligibility criterion for sliding scale premiums
34.5in order to remain within the limits of available appropriations. The requirement of no
34.6health coverage does not apply to newborns.
34.7    (b) Medical assistance, general assistance medical care, and the Civilian Health and
34.8Medical Program of the Uniformed Service, CHAMPUS, or other coverage provided under
34.9United States Code, title 10, subtitle A, part II, chapter 55, are not considered insurance or
34.10health coverage for purposes of the four-month requirement described in this subdivision.
34.11    (c) For purposes of this subdivision, an applicant or enrollee who is entitled to
34.12Medicare Part A or enrolled in Medicare Part B coverage under title XVIII of the Social
34.13Security Act, United States Code, title 42, sections 1395c to 1395w-152, is considered to
34.14have health coverage. An applicant or enrollee who is entitled to premium-free Medicare
34.15Part A may not refuse to apply for or enroll in Medicare coverage to establish eligibility
34.16for MinnesotaCare.
34.17    (d) Applicants who were recipients of medical assistance or general assistance
34.18medical care within one month of application must meet the provisions of this subdivision
34.19and subdivision 2.
34.20    (e) Cost-effective health insurance that was paid for by medical assistance is not
34.21considered health coverage for purposes of the four-month requirement under this
34.22section, except if the insurance continued after medical assistance no longer considered it
34.23cost-effective or after medical assistance closed.

34.24    Sec. 18. Minnesota Statutes 2006, section 256L.12, subdivision 9a, is amended to read:
34.25    Subd. 9a. Rate setting; ratable reduction. For services rendered on or after
34.26October 1, 2003, the total payment made to managed care plans under the MinnesotaCare
34.27program is reduced 1.0 percent. This provision excludes payments for mental health
34.28services added as covered benefits after December 31, 2007.

34.29    Sec. 19. MENTAL HEALTH SERVICES PROVIDER RATE INCREASES.
34.30    (a) The commissioner of human services shall increase reimbursement rates or rate
34.31limits, as applicable, by ... percent for the rate period beginning October 1, 2007, and the
34.32rate period beginning October 1, 2008, effective for services rendered on or after those
34.33dates.
34.34    (b) The ... percent annual rate increase described in this section must be provided to:
34.35    (1) children's therapeutic services and supports under Minnesota Statutes, section
34.36256B.0943; and
35.1    (2) adult rehabilitative mental health services under Minnesota Statutes, section
35.2256B.0623.
35.3    (c) Providers that receive a rate increase under this section shall use 75 percent of
35.4the additional revenue to increase wages and benefits and pay associated costs for all
35.5employees, except for management fees, the administrator, and central office staffs.
35.6    (d) For public employees, the increase for wages and benefits for certain staff is
35.7available and pay rates shall be increased only to the extent that they comply with laws
35.8governing public employees collective bargaining. Money received by a provider for pay
35.9increases under this section may be used only for increases implemented on or after the
35.10first day of the rate period in which the increase is available and must not be used for
35.11increases implemented prior to that date.
35.12    (e) A copy of the provider's plan for complying with paragraph (c) must be made
35.13available to all employees by giving each employee a copy or by posting a copy in an area
35.14of the provider's operation to which all employees have access. If an employee does not
35.15receive the adjustment, if any, described in the plan and is unable to resolve the problem
35.16with the provider, the employee may contact the employee's union representative. If the
35.17employee is not covered by a collective bargaining agreement, the employee may contact
35.18the commissioner at a telephone number provided by the commissioner and included in
35.19the provider's plan.

35.20    Sec. 20. REQUIREMENT FOR THE COMMISSIONER OF HUMAN
35.21SERVICES TO SEEK FEDERAL APPROVAL TO EXPAND MEDICAL
35.22ASSISTANCE TO INCLUDE CERTAIN MENTAL HEALTH SERVICES.
35.23    (a) The commissioner of human services shall seek federal approval to expand
35.24medical assistance covered services to include:
35.25    (1) family psychoeducation, which is a multimodal outpatient therapy and
35.26rehabilitative service that involves parents, families, and others as resources in the
35.27treatment, recovery, and improved functioning of a person with mental illness or
35.28emotional disturbance, in which families learn about the illness, family reactions, and
35.29types of treatment and support. Families learn to develop skills to handle problems
35.30posed by mental illness including coping, managing stress, ensuring safety, creating
35.31social support, identifying resources, and supporting treatment and recovery goals.
35.32Services include family counseling, family treatment planning, and family support using
35.33cognitive, behavioral, problem-solving, and communication strategies, and may involve
35.34individual, family, and group intervention activities for consumers and families together,
35.35families only, or brief intermittent consultations at critical times in an episode of care.
36.1Eligible providers must be certified to provide both outpatient mental health services and
36.2rehabilitative services under this section;
36.3    (2) intensive mental health outpatient treatment, which is a multimodal, therapeutic,
36.4and rehabilitative service that is provided for at least two hours per day and at least nine
36.5to 20 hours per week. The service provides an opportunity to combine existing covered
36.6services to deliver the necessary intensity and frequency of services identified in the
36.7individual treatment plan. Components of intensive mental health outpatient treatment
36.8include, but are not limited to:
36.9    (i) individual, family or multifamily group psychotherapy or psychoeducational
36.10services;
36.11    (ii) adjunctive services such as medical monitoring, family psychoeducation,
36.12behavioral parent training, rehabilitative services, medication education, relapse
36.13prevention, illness management and recovery services, and care coordination; and
36.14    (iii) service coordination and referral for medical care or social services.
36.15    During transition into or from services, intensive outpatient treatment under
36.16paragraph (a) may include time limited services in multiple settings as clinically necessary.
36.17The service must be paid as a per diem based on 90 percent of the rate paid for partial
36.18hospitalization. Eligible providers must be licensed or certified to provide all aspects
36.19of the service;
36.20    (3) coordination and care management, which is for the purpose of improving
36.21continuity and access to appropriate and necessary services; and
36.22    (4) collateral contracts as a component of children's therapeutic services and support,
36.23adult rehabilitative mental health services, and community mental health services. These
36.24services must be directed by an individual treatment plan, and are solely for the purpose of
36.25assisting parents and others toward understanding, accommodating, and better caregiving
36.26of the person with mental illness or emotional disturbance.
36.27    (b) The commissioner shall also seek federal approval in order to authorize medical
36.28assistance payments for community mental health and psychiatry services provided to dual
36.29eligible clients to be paid at the Medicare reimbursement rate or at the medical assistance
36.30payment rate in effect at a certain point in time, whichever is greater.
36.31    (c) The commissioner shall seek federal approval as soon as possible, but no later
36.32than September 1, 2007. The commissioner shall report to the legislative committees
36.33having jurisdiction over mental health issues the result of each request in paragraphs
36.34(a) and (b) in the legislative session following the federal government's determinations,
36.35unless the commissioner receives the determination during a legislative session. If the
37.1determination is favorable and is received by the commissioner during the legislative
37.2session, the commissioner shall report the information to the legislature within one week.
37.3    (d) If the federal government approves any of the request in paragraphs (a) or (b),
37.4the commissioner shall consult with mental health advocates for input when drafting
37.5legislation incorporating the new services into the statutes. The draft legislation is due to
37.6the legislature at the same time as the report in paragraph (c).

37.7    Sec. 21. APPROPRIATIONS.
37.8    Subdivision 1. Mobile mental health crisis services. (a) $5,000,000 in fiscal year
37.92008 and $7,250,000 in fiscal year 2009 are appropriated from the general fund to the
37.10commissioner of human services for statewide funding of mobile mental health crisis
37.11services.
37.12    (b) Providers must utilize all available funding streams.
37.13    Subd. 2. Mental health tracking system. $448,000 in fiscal year 2008 and
37.14$324,000 in fiscal year 2009 are appropriated from the general fund to the commissioner
37.15of human services to fund implementation of the mental health services outcomes and
37.16tracking system.
37.17    Subd. 3. Suicide prevention programs. $1,100,000 in fiscal year 2008 and
37.18$1,100,000 in fiscal year 2009 are appropriated from the general fund to the commissioner
37.19of health to fund the suicide prevention program and to administer grants for institutions
37.20of higher education in the state of Minnesota to coordinate implementation of youth
37.21suicide early intervention and prevention strategies."
37.22Amend the title accordingly