Laws of Minnesota 1991 

                         CHAPTER 94-S.F.No. 226 
           An act relating to human services; consolidating and 
          simplifying county mental health and community social 
          services planning; authorizing the review and 
          reduction of social service administrative 
          requirements; establishing a process for limiting 
          social services due to county fiscal limitations; 
          amending Minnesota Statutes 1990, sections 245.465; 
          245.466, subdivision 5; 245.478, subdivisions 1, 2, 
          and 6; 245.4874; 245.4875, subdivision 5; 245.4887, 
          subdivisions 1, 2, and 6; 256.045, subdivision 3; 
          256E.04, subdivision 1; 256E.05, subdivisions 2, 3, 5, 
          and by adding subdivisions; 256E.08, subdivision 1; 
          256E.09, subdivisions 1, 3, and 6; and 256E.12, by 
          adding a subdivision; proposing coding for new law in 
          Minnesota Statutes, chapter 256E; repealing Minnesota 
          Statutes 1990, sections 245.462, subdivision 15; 
          245.4871, subdivision 23; 256B.092, subdivisions 1c 
          and 1d; and 256E.09, subdivisions 4 and 5. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 245.465, is 
amended to read: 
    245.465 [DUTIES OF COUNTY BOARD.] 
    The county board in each county shall use its share of 
mental health and community social service services act funds 
allocated by the commissioner according to a the biennial local 
mental health service proposal component of the county's 
community social services plan as approved by the commissioner.  
The county board must: 
    (1) develop and coordinate a system of affordable and 
locally available adult mental health services in accordance 
with sections 245.461 to 245.486; 
    (2) with the involvement of the local adult mental health 
advisory council or the adult mental health subcommittee of an 
existing advisory council, develop a biennial adult mental 
health component of the community social services plan required 
in section 256E.09 which considers the assessment of unmet needs 
in the county as reported by the local adult mental health 
advisory council under section 245.466, subdivision 5, clause 
(3).  The county shall provide, upon request of the local adult 
mental health advisory council, readily available data to assist 
in the determination of unmet needs; 
    (3) provide for case management services to adults with 
serious and persistent mental illness in accordance with 
sections 245.462, subdivisions 3 and 4; 245.4711; and 245.486; 
    (3) (4) provide for screening of adults specified in 
section 245.476 upon admission to a residential treatment 
facility or acute care hospital inpatient, or informal admission 
to a regional treatment center; 
    (4) (5) prudently administer grants and purchase-of-service 
contracts that the county board determines are necessary to 
fulfill its responsibilities under sections 245.461 to 245.486; 
and 
    (5) (6) assure that mental health professionals, mental 
health practitioners, and case managers employed by or under 
contract with the county to provide mental health services have 
experience and training in working with adults with mental 
illness. 
    Sec. 2.  Minnesota Statutes 1990, section 245.466, 
subdivision 5, is amended to read: 
    Subd. 5.  [LOCAL ADVISORY COUNCIL.] The county board, 
individually or in conjunction with other county boards, shall 
establish a local adult mental health advisory council or mental 
health subcommittee of an existing advisory council.  The 
council's members must reflect a broad range of community 
interests.  They must include at least one consumer, one family 
member of an adult with mental illness, one mental health 
professional, and one community support services program 
representative.  The local adult mental health advisory council 
or mental health subcommittee of an existing advisory council 
shall meet at least quarterly to review, evaluate, and make 
recommendations regarding the local mental health system.  
Annually, the local adult mental health advisory council or 
mental health subcommittee of an existing advisory council shall:
    (1) arrange for input from the regional treatment center's 
mental illness program unit regarding coordination of care 
between the regional treatment center and community-based 
services; 
    (2) identify for the county board the individuals, 
providers, agencies, and associations as specified in section 
245.462, subdivision 10; and 
    (3) provide to the county board a report of unmet mental 
health needs of adults residing in the county to be included in 
the county's biennial mental health component of the community 
social services plan required in section 256E.09, and 
participate in developing the mental health component of the 
plan; and 
    (4) coordinate its review, evaluation, and recommendations 
regarding the local mental health system with the state advisory 
council on mental health.  
    The county board shall consider the advice of its local 
mental health advisory council or mental health subcommittee of 
an existing advisory council in carrying out its authorities and 
responsibilities.  
    Sec. 3.  Minnesota Statutes 1990, section 245.478, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TIME PERIOD SUBMITTAL OF ADULT MENTAL 
HEALTH COMPONENT.] The first local mental health proposal period 
is from July 1, 1988, to December 31, 1989.  The county board 
shall submit its first proposal to the commissioner by January 
1, 1988.  Subsequent proposals must be on the same two-year 
cycle as community social service plans.  If a proposal complies 
with sections 245.461 to 245.486, it satisfies the requirement 
of the community social service plan for the mental illness 
target population as required by section 256E.09.  The proposal 
must be made available upon request to all residents of the 
county at the same time it is submitted to the 
commissioner.  Beginning in 1993, and every two years 
thereafter, the county board shall submit to the commissioner 
the adult mental health component of the community social 
services plan required under section 256E.09. 
    Sec. 4.  Minnesota Statutes 1990, section 245.478, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROPOSAL CONTENT OF ADULT MENTAL HEALTH 
COMPONENT.] Content of the local adult mental health proposal 
must include: component of the community social services plan is 
governed by section 256E.09. 
    (1) the local adult mental health advisory council's or 
adult mental health subcommittee of an existing advisory 
council's report on unmet needs of adults and any other needs 
assessment used by the county board in preparing the local adult 
mental health proposal; 
    (2) a description of the local adult mental health advisory 
council's or the adult mental health subcommittee of an existing 
advisory council's involvement in preparing the local adult 
mental health proposal and methods used by the county board to 
ensure adequate and timely participation of citizens, mental 
health professionals, and providers in development of the local 
mental health proposal; 
    (3) information for the preceding year, including the 
actual number of clients who received each of the mental health 
services listed in sections 245.468 to 245.476, and actual 
expenditures for each mental health service and service waiting 
lists; and 
    (4) the following information describing how the county 
board intends to meet the requirements of sections 245.461 to 
245.486 during the proposal period: 
    (i) specific objectives and outcome goals for each adult 
mental health service listed in sections 245.461 to 245.486; 
    (ii) a description of each service provider, including 
county agencies, contractors, and subcontractors, that is 
expected to either be the sole provider of one of the adult 
mental health services described in sections 245.461 to 245.486 
or to provide over $10,000 of adult mental health services per 
year, including a listing of the professional qualifications of 
the staff involved in service delivery for the county; 
    (iii) a description of how the adult mental health services 
in the county will be unified and coordinated; 
    (iv) the estimated number of clients who will receive each 
adult mental health service; and 
    (v) estimated expenditures for each adult mental health 
service and revenues for the entire proposal. 
    Sec. 5.  Minnesota Statutes 1990, section 245.478, 
subdivision 6, is amended to read: 
    Subd. 6.  [PROPOSAL ADULT MENTAL HEALTH COMPONENT OF THE 
COMMUNITY SOCIAL SERVICES PLAN; APPROVAL.] The commissioner 
shall review each local county's adult mental health proposal 
component of the community social services plan within 90 60 
days and work with the county board to make any necessary 
modifications to comply with sections 245.461 to 245.486.  After 
the commissioner has approved the proposal adult mental health 
component of the community social services plan, the county 
board is eligible to receive an allocation of mental health and 
community social service services act funds. 
    Sec. 6.  Minnesota Statutes 1990, section 245.4874, is 
amended to read: 
    245.4874 [DUTIES OF COUNTY BOARD.] 
    The county board in each county shall use its share of 
mental health and community social service services act funds 
allocated by the commissioner according to a biennial local 
children's mental health service proposal component of the 
community social services plan required under section 245.4887, 
and approved by the commissioner.  The county board must: 
    (1) develop a system of affordable and locally available 
children's mental health services according to sections 245.487 
to 245.4887; 
    (2) establish a mechanism providing for interagency 
coordination as specified in section 245.4875, subdivision 6; 
    (3) develop a biennial children's mental health component 
of the community social services plan required under section 
256E.09 which considers the assessment of unmet needs in the 
county as reported by the local children's mental health 
advisory council under section 245.4875, subdivision 5, 
paragraph (b), clause (3).  The county shall provide, upon 
request of the local children's mental health advisory council, 
readily available data to assist in the determination of unmet 
needs; 
    (4) assure that parents and providers in the county receive 
information about how to gain access to services provided 
according to sections 245.487 to 245.4887; 
    (3) (5) coordinate the delivery of children's mental health 
services with services provided by social services, education, 
corrections, health, and vocational agencies to improve the 
availability of mental health services to children and the cost 
effectiveness of their delivery; 
    (4) (6) assure that mental health services delivered 
according to sections 245.487 to 245.4887 are delivered 
expeditiously and are appropriate to the child's diagnostic 
assessment and individual treatment plan; 
    (5) (7) provide the community with information about 
predictors and symptoms of emotional disturbances and how to 
access children's mental health services according to sections 
245.4877 and 245.4878; 
    (6) (8) provide for case management services to each child 
with severe emotional disturbance according to sections 245.486; 
245.4871, subdivisions 3 and 4; and 245.4881, subdivisions 1, 3, 
and 5; 
    (7) (9) provide for screening of each child under section 
245.4885 upon admission to a residential treatment facility, 
acute care hospital inpatient treatment, or informal admission 
to a regional treatment center; 
    (8) (10) prudently administer grants and 
purchase-of-service contracts that the county board determines 
are necessary to fulfill its responsibilities under sections 
245.487 to 245.4887; 
    (9) (11) assure that mental health professionals, mental 
health practitioners, and case managers employed by or under 
contract to the county to provide mental health services are 
qualified under section 245.4871; and 
    (10) (12) assure that children's mental health services are 
coordinated with adult mental health services specified in 
sections 245.461 to 245.486 so that a continuum of mental health 
services is available to serve persons with mental illness, 
regardless of the person's age.  
    Sec. 7.  Minnesota Statutes 1990, section 245.4875, 
subdivision 5, is amended to read: 
    Subd. 5.  [LOCAL CHILDREN'S ADVISORY COUNCIL.] (a) By 
October 1, 1989, the county board, individually or in 
conjunction with other county boards, shall establish a local 
children's mental health advisory council or children's mental 
health subcommittee of the existing local mental health advisory 
council or shall include persons on its existing mental health 
advisory council who are representatives of children's mental 
health interests.  The following individuals must serve on the 
local children's mental health advisory council, the children's 
mental health subcommittee of an existing local mental health 
advisory council, or be included on an existing mental health 
advisory council:  (1) at least one person who was in a mental 
health program as a child or adolescent; (2) at least one parent 
of a child or adolescent with severe emotional disturbance; (3) 
one children's mental health professional; (4) representatives 
of minority populations of significant size residing in the 
county; (5) a representative of the children's mental health 
local coordinating council; and (6) one family community support 
services program representative. 
    (b) The local children's mental health advisory council or 
children's mental health subcommittee of an existing advisory 
council shall seek input from parents, former consumers, 
providers, and others about the needs of children with emotional 
disturbance in the local area and services needed by families of 
these children, and shall meet monthly, unless otherwise 
determined by the council or subcommittee, but not less than 
quarterly, to review, evaluate, and make recommendations 
regarding the local children's mental health system.  Annually, 
the local children's mental health advisory council or 
children's mental health subcommittee of the existing local 
mental health advisory council shall: 
    (1) arrange for input from the local system of care 
providers regarding coordination of care between the services; 
and 
    (2) identify for the county board the individuals, 
providers, agencies, and associations as specified in section 
245.4877, clause (2); and 
    (3) provide to the county board a report of unmet mental 
health needs of children residing in the county to be included 
in the county's biennial children's mental health component of 
the community social services plan required under section 
256E.09, and participate in developing the mental health 
component of the plan. 
    (c) The county board shall consider the advice of its local 
children's mental health advisory council or children's mental 
health subcommittee of the existing local mental health advisory 
council in carrying out its authorities and responsibilities. 
    Sec. 8.  Minnesota Statutes 1990, section 245.4887, 
subdivision 1, is amended to read: 
    Subdivision 1.  [TIME PERIOD SUBMITTAL OF CHILDREN'S MENTAL 
HEALTH COMPONENT.] The county board shall submit its first 
complete children's section of its local mental health proposal 
to the commissioner by November 15, 1989.  Subsequent proposals 
must be on the same two-year cycle as community social service 
plans.  If a proposal complies with sections 245.487 to 
245.4887, it satisfies the requirement of the community social 
service plan for the emotionally disturbed target population as 
required by section 256E.09.  The proposal must be made 
available upon request to all residents of the county at the 
same time it is submitted to the commissioner.  Beginning in 
1993, and every two years thereafter, the county board shall 
submit to the commissioner a children's mental health component 
of the community social services plan required under section 
256E.09. 
    Sec. 9.  Minnesota Statutes 1990, section 245.4887, 
subdivision 2, is amended to read: 
    Subd. 2.  [PROPOSAL CONTENT OF CHILDREN'S MENTAL HEALTH 
COMPONENT.] Content of the children's section of the local 
mental health proposal must include: component of the community 
social services plan is governed by section 256E.09. 
    (1) a report of the local children's mental health advisory 
council or children's mental health subcommittee of the existing 
local mental health advisory council on unmet needs of children 
and any other needs assessment used by the county board in 
preparing the local mental health proposal, including the report 
of the local coordinating council or local interagency task 
force specified in section 245.4875, subdivision 6; 
    (2) a description of the involvement of the local 
children's mental health advisory council or the children's 
mental health subcommittee of the existing local mental health 
advisory council in preparing the local mental health proposal 
and methods used by the county board to ensure adequate and 
timely participation of citizens, mental health professionals, 
and providers in development of the local mental health 
proposal; 
    (3) information for the preceding year, including the 
actual number of children who received each of the mental health 
services listed in sections 245.487 to 245.4887, and actual 
expenditures for each mental health service and service waiting 
lists; and 
    (4) the following information describing how the county 
board intends to meet the requirements of sections 245.487 to 
245.4887 during the proposal period: 
    (i) specific objectives and outcome goals for each mental 
health service listed in sections 245.487 to 245.4887; 
    (ii) a description of each service provider, including 
county agencies, contractors, and subcontractors, that is 
expected to either be the sole provider of one of the mental 
health services described in sections 245.487 to 245.4887 or to 
provide over $10,000 of mental health services per year, 
including a listing of the professional qualifications of the 
staff involved in service delivery for the county; 
    (iii) a description of how the mental health services in 
the county will be unified and coordinated, including the 
mechanism established by the county board providing for 
interagency coordination as specified in section 245.4875, 
subdivision 6; 
    (iv) the estimated number of children who will receive each 
mental health service; and 
    (v) estimated expenditures for each mental health service 
and revenues for the entire proposal. 
    Sec. 10.  Minnesota Statutes 1990, section 245.4887, 
subdivision 6, is amended to read: 
    Subd. 6.  [PROPOSAL CHILDREN'S MENTAL HEALTH COMPONENT OF 
THE COMMUNITY SOCIAL SERVICES PLAN; APPROVAL.] The commissioner 
shall review each county's children's section of the local 
mental health proposal component of the community social 
services plan within 90 60 days and work with the county board 
to make any necessary modifications to comply with sections 
245.487 to 245.4887.  After the commissioner has approved 
the proposal children's mental health component of the community 
social services plan, the county board is eligible to receive an 
allocation of mental health and community social service 
services act funds.  
    Sec. 11.  Minnesota Statutes 1990, section 256.045, 
subdivision 3, is amended to read: 
    Subd. 3.  [STATE AGENCY HEARINGS.] Any person applying for, 
receiving or having received public assistance or a program of 
social services granted by the state agency or a county agency 
under sections 252.32, 256.031 to 256.036, and 256.72 to 
256.879, chapters 256B, 256D, 256E, 261, or the federal Food 
Stamp Act whose application for assistance is denied, not acted 
upon with reasonable promptness, or whose assistance is 
suspended, reduced, terminated, or claimed to have been 
incorrectly paid, or any patient or relative aggrieved by an 
order of the commissioner under section 252.27, or a party 
aggrieved by a ruling of a prepaid health plan, may contest that 
action or decision before the state agency by submitting a 
written request for a hearing to the state agency within 30 days 
after receiving written notice of the action or decision, or 
within 90 days of such written notice if the applicant, 
recipient, patient, or relative shows good cause why the request 
was not submitted within the 30-day time limit. 
    Except for a prepaid health plan, a vendor of medical care 
as defined in section 256B.02, subdivision 7, or a vendor under 
contract with a county agency to provide social services under 
section 256E.08, subdivision 4, is not a party and may not 
request a hearing under this section. 
   An applicant or recipient is not entitled to receive social 
services beyond the services included in the amended community 
social services plan developed under section 256E.081, 
subdivision 3, if the county agency has met the requirements in 
section 256E.081. 
    Sec. 12.  Minnesota Statutes 1990, section 256E.04, 
subdivision 1, is amended to read: 
    Subdivision 1.  The commissioner shall prepare a biennial 
social services plan and present the plan to the governor and 
the legislature.  The commissioner shall update the plan 
biennially.  The plan shall include: 
    (a) A statement of methods used to ensure intergovernmental 
coordination of state and local planning and delivery of 
community social services; 
    (b) A coordination statement setting forth the relationship 
of the state social services plan to any other federal, state or 
locally financed human services programs, including but not 
limited to, programs for the aged, children, the developmentally 
disabled, the chemically dependent, and programs related to 
corrections, education, vocational rehabilitation, mental 
health, housing, health, and employment; and 
    (c) A summary and analysis of all county biennial community 
social services plans; 
    (d) Identification of social services program requirements 
which counties have identified as unnecessarily administratively 
burdensome; 
    (e) Identification of social services program requirements 
for which inadequate state and local funding is available; and 
     (f) Identification of unmet needs reported by the county 
agencies. 
    The commissioner shall consult with the heads of human 
service related state departments and agencies in preparing the 
coordination statement required by this subdivision. 
    Sec. 13.  Minnesota Statutes 1990, section 256E.05, is 
amended by adding a subdivision to read: 
    Subd. 1a.  [REVIEW OF ADMINISTRATIVE REQUIREMENTS.] The 
commissioner may review social services administrative rule 
requirements and adopt amendments under chapter 14 to reduce 
administrative costs and complexity by eliminating unnecessary 
or excessive paperwork, simplifying or consolidating program 
requirements, or emphasizing outcomes rather than procedures.  
In determining the reasonableness of the requirements, the 
commissioner shall consider the needs the service was developed 
to address and the adequacy of the state and local funding 
available to provide the service. 
    Sec. 14.  Minnesota Statutes 1990, section 256E.05, 
subdivision 2, is amended to read: 
    Subd. 2.  [PLAN APPROVAL.] Within 45 60 days after 
submission of the community social services plan by the counties 
pursuant to section 256E.09, subdivision 4 1, the commissioner 
shall certify whether the plan fulfills the purposes and 
requirements of section 256E.09, state and federal law and the 
rules of the state agency.  On certifying that the plan does not 
do so, the commissioner shall state the reasons therefore, and 
the county shall have 30 days to submit a plan amended to comply 
with the requirements of the commissioner.  If the county fails 
to resubmit a plan amended as required by the commissioner, the 
commissioner shall notify the county of the intention to reduce 
the next quarterly payment by an amount equal to one-third of 
one percent of the county's annual entitlement for each 30 day 
period during which the county fails to amend the plan as 
required by the commissioner.  The county board has the right to 
appeal the commissioner's decision pursuant to section 256E.06, 
subdivision 10. 
    Sec. 15.  Minnesota Statutes 1990, section 256E.05, 
subdivision 3, is amended to read: 
    Subd. 3.  [ADDITIONAL DUTIES.] The commissioner shall also: 
    (a) Provide necessary forms and instructions to the 
counties for plan format and information; 
    (b) To the extent possible, coordinate other categorical 
social service services grant applications and plans required of 
counties so that the applications and plans are included in and 
are consistent with the timetable and other requirements for the 
community social services plan in subdivision 2 and section 
256E.09; 
    (c) Provide to the chair of each county board, in addition 
to notice required pursuant to sections 14.05 to 14.36, timely 
advance notice and a written summary of the fiscal impact of any 
proposed new rule or changes in existing rule which will have 
the effect of increasing county costs for community social 
services; 
    (d) Provide training, technical assistance, and other 
support services to county boards to assist in needs assessment, 
planning, implementing, and monitoring social services programs 
in the counties; 
     (e) Design and implement a method of monitoring and 
evaluating social services, including site visits that utilize 
quality control audits to assure county compliance with 
applicable standards, guidelines, and the county and state 
social services plans; 
    (f) Design and implement a system that uses corrective 
action procedures as established in subdivision 5 and a schedule 
of fines to ensure county compliance with statutes, rules, 
federal laws, and federal regulations governing community social 
services.  In determining the amount of the fine, the 
commissioner may consider the number of community social 
services clients or applicants affected by the county's failure 
to comply with the law or rule, the severity of the 
noncompliance, and the duration of the noncompliance as 
determined by the commissioner, the resources allocated for the 
provision of the service in the community social services plan 
approved under section 256E.09, and the amount the county is 
levying for social services and income maintenance programs 
under section 275.50, subdivision 5.  Fines levied against a 
county under this subdivision must not exceed ten percent of the 
county's community social services allocation for the year in 
which the fines are levied; 
    (g) Design and implement an incentive program for the 
benefit of counties that perform at a level that consistently 
meets or exceeds the minimum standards in law and rule.  Fines 
collected under paragraph (e) may be placed in an incentive fund 
and used for the benefit of counties that meet and exceed the 
minimum standards; 
    (h) Specify requirements for reports, including fiscal 
reports, according to section 256.01, subdivision 2, paragraph 
(17), to account for aids distributed under section 256E.06, 
funds from Title XX of the Social Security Act distributed under 
Minnesota Statutes, section 256E.07, claims under Title IV-E of 
the Social Security Act, mental health funding, and other social 
service services expenditures and activities; and 
    (i) Request waivers from federal programs as necessary to 
implement sections 256E.01 to 256E.12. 
    Sec. 16.  Minnesota Statutes 1990, section 256E.05, is 
amended by adding a subdivision to read: 
    Subd. 3a.  [DEMONSTRATION PROJECT.] (a) The commissioner 
may establish demonstration projects to test alternatives to 
existing state requirements.  
    (b) At least one demonstration project may be developed to 
demonstrate alternative methods of social services planning.  
For the purposes of this demonstration project, the commissioner:
    (1) shall allow participating counties to combine all 
social services plans into one comprehensive plan unless a 
separate plan is necessary to comply with federal regulations or 
maintain federal financial participation; 
    (2) may waive social service program maintenance of effort 
requirements not required to comply with federal regulations or 
maintain federal financial participation, at the request of a 
county or counties participating in the planning process; 
    (3) may exempt counties participating in the planning 
demonstration from fiscal sanctions for noncompliance with 
social services requirements in state statute, provided the 
county proposal includes a schedule of fines for noncompliance 
approved by the commissioner; 
    (4) may establish a county match requirement for social 
services.  If the county has spent or obligated all of its state 
and federal social services funds and the required matching 
funds, the county must be considered to be making reasonable 
efforts to comply with all state social services requirements as 
required in section 256E.081, subdivision 2, and is not required 
to provide social services beyond the services included in the 
county's amended community social services plan; and 
    (5) shall require participating counties to describe the 
system to be used to evaluate performance under the combined 
county plan.  
    (c) At least one demonstration project may be developed to 
test alternative methods of delivering services to persons with 
developmental disabilities or persons with mental illness.  
    (d) Up to six demonstration projects may be established to 
test alternatives to existing requirements that maintain or 
enhance services but reduce administrative burdens, eliminate 
unnecessary or excessive paperwork, simplify or consolidate 
requirements, or otherwise reduce administrative costs and 
complexity of social services programs.  
    (e) The commissioner shall consult with county staff, 
service providers, and service recipients or their advocates in 
the selection of the proposals for the demonstration projects.  
    (f) In selecting the demonstration projects, the 
commissioner may give preference to proposals submitted by two 
or more counties.  
    (g) During the duration of the demonstration projects, the 
commissioner may waive administrative rule requirements in the 
demonstration counties if the proposal demonstrates that the 
needs the requirements were developed to address can be met 
using an alternative approach.  The commissioner shall not waive 
rule requirements which affect an individual's eligibility for 
services or right to due process.  
    (h) If the county fails to meet the conditions in the 
demonstration project proposal as approved by the commissioner, 
the commissioner may rescind the waiver of the rule requirements.
    (i) The demonstration projects must be completed by July 1, 
1995.  
    (j) The legislative auditor shall evaluate the results of 
the demonstration projects.  
    (k) If the results of the demonstration projects indicate 
that the needs the administrative rule requirements were 
developed to address can be met by means that are less costly 
and less prescriptive, and that give counties greater 
flexibility when providing social services, the commissioner may 
amend or repeal the appropriate social services rule requirement 
under chapter 14.  If the requirement is specified in statute, 
the commissioner shall recommend legislative changes in the 
biennial state plan under section 256E.04, subdivision 1. 
    Sec. 17.  Minnesota Statutes 1990, section 256E.05, 
subdivision 5, is amended to read: 
    Subd. 5.  [CORRECTIVE ACTION PROCEDURE.] The commissioner 
must comply with the following procedures when imposing fines 
under subdivision 3, paragraph (e), or reducing county funds 
under subdivision 4. 
    (a) The commissioner shall notify the county, by certified 
mail, of the statute, rule, federal law, or federal regulation 
with which the county has not complied. 
    (b) The commissioner shall give the county 30 days to 
demonstrate to the commissioner that the county is in compliance 
with the statute, rule, federal law, or federal regulation cited 
in the notice or to develop a corrective action plan to address 
the problem.  Upon request from the county, the commissioner 
shall provide technical assistance to the county in developing a 
corrective action plan.  The county shall have 30 days from the 
date the technical assistance is provided to develop the 
corrective action plan. 
      (c) The commissioner shall take no further action if the 
county demonstrates compliance. 
      (d) The commissioner shall review and approve or disapprove 
the corrective action plan within 30 days after the commissioner 
receives the corrective action plan. 
      (e) If the commissioner approves the corrective action plan 
submitted by the county, the county has 90 days after the date 
of approval to implement the corrective action plan. 
      (f) If the county fails to demonstrate compliance or fails 
to implement the corrective action plan approved by the 
commissioner, the commissioner may fine the county according to 
subdivision 3, paragraph (e), or may reduce the county's share 
of state or federal funds according to subdivision 4. 
    (g) The commissioner may not impose a fine or reduce funds 
under this subdivision if the county demonstrates that: 
    (1) the county is unable to comply with a social services 
administrative rule due to fiscal limitations and the county has 
met the requirements in section 256E.081; or 
    (2) the commissioner failed to provide appropriate forms, 
guidelines, and technical assistance to enable the county to 
comply with the requirements. 
    (h) The county may appeal the fine or the reduction in 
funds under section 256E.06, subdivision 10. 
    Sec. 18.  Minnesota Statutes 1990, section 256E.08, 
subdivision 1, is amended to read: 
    Subdivision 1.  [RESPONSIBILITIES.] The county board of 
each county shall be responsible for administration, planning 
and funding of community social services.  Each county board 
shall singly or in combination with other county boards as 
provided in section 256E.09 prepare a social services plan and 
shall update the plan biennially.  Upon final approval of the 
plan by the county board or boards, the plan shall be submitted 
to the commissioner.  The county board shall distribute money 
available pursuant to sections 256E.06 and 256E.07 for community 
social services. 
     The authority and responsibilities of county boards for 
social services for groups of persons identified in section 
256E.03, subdivision 2, shall include contracting for or 
directly providing: 
     (1) information about the symptoms and characteristics of 
specific problems of the identified groups to increase 
understanding and acceptance by the general public, to help 
alleviate fears of seeking help, and to enable access to 
appropriate assistance; 
      (2) an assessment of the needs of each person applying for 
assistance which estimates the nature and extent of the problem 
to be addressed and identifies the means available to meet the 
person's needs.  These diagnostic and evaluation activities 
shall evaluate the functioning of each person with regard to an 
illness or disability, screen for placement, and determine the 
need for services; 
    (3) protection aimed at alleviating urgent needs of each 
person by determining urgent need, shielding persons in 
hazardous conditions when they are unable to care for 
themselves, and providing urgently needed assistance; 
    (4) supportive and rehabilitative activities that assist 
each person to function at the highest level of independence 
possible for the person, preferably without removing the person 
from home.  These activities include coordinating with local 
public rehabilitation agencies, local education agencies, and 
other agencies, both increasing to increase the client's level 
of functioning and maintaining to maintain current levels of 
functioning; 
    (5) a means of facilitating access of physically 
handicapped or impaired persons to activities appropriate to 
their needs; and 
    (6) administrative activities to coordinate and facilitate 
the effective use of formal and informal helping systems to best 
address client needs and goals.  This includes assisting the 
client in making informed decisions about opportunities and 
services, assuring timely access to needed assistance, providing 
opportunities and encouragement for self-help activities, and 
coordinating all services to meet the client's needs and goals.  
County case management shall be responsible for determining 
appropriate care and activities. 
    A county board may delegate to a county welfare board 
established under chapter 393 authority to provide or approve 
contracts for the purchase of the kinds of community social 
services that were provided or contracted for by the county 
welfare boards before the enactment of Laws 1979, chapter 324. 
The county board must determine how citizens will participate in 
the planning process, give final approval to the community 
social services plan, and distribute community social services 
money. 
    Sec. 19.  [256E.081] [FISCAL LIMITATIONS.] 
    Subdivision 1.  [SERVICE LIMITATION.] If the county has met 
the requirements in subdivisions 2, 3, and 4, the county shall 
not be required to provide social services beyond the services 
required in federal law or state statute or included in the 
county's amended community social services plan. 
    Subd. 2.  [DEMONSTRATION OF REASONABLE EFFORT.] The county 
shall make reasonable efforts to comply with all state social 
services requirements.  For the purposes of this section, a 
county is making reasonable efforts if the county meets the 
following requirements: 
    (1) the total amount of money budgeted by the county for 
social services is equal to or greater than the total amount 
spent by the county for social services in the prior year, 
adjusted by any change in state or federal funding used by the 
county to fund social services in the prior year.  When 
calculating the adjustment for changes in state or federal 
funding, the amount of the change in any funding source which 
can be used by the county for purposes other than social 
services shall be limited to an amount which has been adjusted 
by a formula based upon the proportionate share which social 
services is of the total county levy certified to the county 
auditor under section 275.07, subdivision 1, before the 
application of any aids; 
    (2) the county has spent, obligated, or projects 
expenditures in excess of the amount budgeted by the county for 
at least one social service program or service; 
    (3) the total social services expenditures for the county 
are projected to meet or exceed the total amount of money 
available for social services from all sources of social 
services funding; and 
    (4) the county has made efforts to comply with social 
services requirements within the limits of available funding, 
including efforts to identify and apply for commonly available 
state and federal funding for social services programs or 
services. 
    Subd. 3.  [IDENTIFICATION OF SERVICES TO BE PROVIDED.] If a 
county has made reasonable efforts, as defined in subdivision 2, 
to comply with all social services administrative rule 
requirements and is unable to meet all requirements, the county 
must provide services according to an amended community social 
services plan developed by the county and approved by the 
commissioner under section 256E.09, subdivision 6.  The plan 
must identify for the remainder of the calendar year the social 
services administrative rule requirements the county shall 
comply with within its fiscal limitations and identify the 
social services administrative rule requirements the county will 
not comply with due to fiscal limitations.  The plan must 
specify how the county intends to provide services required by 
federal law or state statute, including but not limited to:  
    (1) providing services needed to protect children and 
vulnerable adults from maltreatment, abuse, and neglect; 
    (2) providing emergency and crisis services needed to 
protect clients from physical, emotional, or psychological harm; 
    (3) assessing and documenting the needs of persons applying 
for services; 
    (4) providing case management services to developmentally 
disabled clients, adults with serious and persistent mental 
illness, and children with severe emotional disturbances; 
    (5) providing day training and habilitation services for 
persons with developmental disabilities and family community 
support services for children with severe emotional 
disturbances; 
    (6) providing subacute detoxification services; 
    (7) providing public guardianship services; and 
    (8) fulfilling licensing responsibilities delegated to the 
county by the commissioner under section 245A.16. 
    Subd. 4.  [DENIAL, REDUCTION, OR TERMINATION OF 
SERVICES.] (a) Before a county denies, reduces, or terminates 
services to an individual due to fiscal limitations, the county 
must meet the requirements in subdivisions 2 and 3, and document 
in the person's individual service plan: 
    (1) the person's service needs; 
    (2) the alternatives considered for meeting the person's 
service needs; and 
    (3) the actions that will be taken to prevent abuse or 
neglect as defined in sections 626.556, subdivision 2, 
paragraphs (a), (c), (d), and (k); and 626.557, subdivision 2, 
paragraphs (d) and (e).  
    (b) The county must notify the individual and the 
individual's guardian in writing of the reason for the denial, 
reduction, or termination of services and of the individual's 
right to an appeal under section 256.045; 
    (c) the county must inform the individual and the 
individual's guardian in writing that the county will, upon 
request, meet to discuss alternatives and amend the individual 
service plan before services are terminated or reduced. 
    Sec. 20.  Minnesota Statutes 1990, section 256E.09, 
subdivision 1, is amended to read: 
    Subdivision 1.  [PLAN PROPOSAL.] Beginning in 1989, and 
every two years after that, the county board shall submit to the 
commissioner a proposed community social services plan for the 
next two calendar years.  The county board shall publish and 
make available upon request to all county residents a the 
proposed biennial community social services plan for the next 
two calendar years. 
    Sec. 21.  Minnesota Statutes 1990, section 256E.09, 
subdivision 3, is amended to read: 
    Subd. 3.  [PLAN CONTENT.] The biennial community social 
services plan published by the county shall include: 
    (a) A statement of the goals of community social service 
programs in the county; 
    (b) Methods used pursuant to subdivision 2 to encourage 
participation of citizens and providers in the development of 
the plan and the allocation of money; 
    (c) Methods used to identify persons in need of service and 
the social problems to be addressed by the community social 
service programs, including efforts the county proposes to make 
in providing for early intervention, prevention and education 
aimed at minimizing or eliminating the need for services for 
groups of persons identified in section 256E.03, subdivision 2; 
    (d) A statement describing how the county will fulfill its 
responsibilities identified in section 256E.08, subdivision 1, 
to the groups of persons described in section 256E.03, 
subdivision 2, and a description of each community social 
service proposed and identification of the agency or person 
proposed to provide the service; 
    (e) A statement describing how the county proposes to make 
the following services available for persons identified by the 
county as in need of services:  daytime developmental 
achievement services for children; day training and habilitation 
services for adults; extended employment program services for 
persons with disabilities; supported employment services as 
defined in section 252.41, subdivision 8; community-based 
employment programs as defined in section 268A.01, subdivision 
11; subacute detoxification services; and residential services 
and nonresidential social support services as appropriate for 
the groups identified in section 256E.03, subdivision 2; 
    (f) A statement specifying how the county will 
collaboratively plan the development of supported employment 
services and community-based employment services with local 
representatives of public rehabilitation agencies and local 
education agencies, including, if necessary, how existing day or 
employment services could be modified to provide supported 
employment services and community-based employment services; 
    (g) A statement describing how the county is fulfilling its 
responsibility to establish a comprehensive and coordinated 
system of early intervention services as required under section 
120.17, subdivisions 11a, 12, and 14; 
    (h) The amount of money proposed to be allocated to each 
service; 
    (i) An inventory of public and private resources including 
associations of volunteers which are available to the county for 
social services; 
    (j) Evidence that serious consideration was given to the 
purchase of services from private and public agencies; and 
    (k) Methods whereby community social service programs will 
be monitored and evaluated by the county. 
    (1) a description of the planning process, including 
methods used to assess needs and obtain citizen input; 
    (2) county outcome goals and specific objectives for each 
program area; 
    (3) a description of resources allocated within the county 
to support each program and service; 
    (4) a description of the services to be provided; 
    (5) an analysis of the adequacy of resources available to 
support the community social services plan including estimates 
of unmet needs; 
    (6) a description of how the service system will be 
coordinated within each program area; and 
    (7) a statement signed by the county board or its designee 
that the county is in compliance with specified Minnesota 
Statutes. 
    Sec. 22.  Minnesota Statutes 1990, section 256E.09, 
subdivision 6, is amended to read: 
    Subd. 6.  [PLAN AMENDMENT.] After providing opportunity for 
public comment, the county may amend its plan.  After approval 
of the amendment by the county board, the county shall submit to 
the commissioner its amendment to the commissioner and a 
statement signed by the county board or its designee that the 
county is in compliance with specified Minnesota Statutes.  When 
certifying the amendment according to section 256E.05, 
subdivision 2, the commissioner shall certify whether the 
amendment fulfills the purpose and requirements of law and the 
rules of the state agency consider:  (1) the effect of the 
proposed amendment on efforts to prevent inappropriate or 
facilitate appropriate residential placements; and 
    (2) the resources allocated for the provision of services 
in the community social services plan approved under section 
256E.09, and the amount the county is levying for social 
services and income maintenance programs under section 275.50, 
subdivision 5. 
    Sec. 23.  Minnesota Statutes 1990, section 256E.12, is 
amended by adding a subdivision to read: 
    Subd. 4.  For calendar year 1992 and all subsequent years, 
the commissioner shall allocate the money appropriated under 
this section on a calendar year basis.  The commissioner may 
continue to allocate part of the money on a state fiscal year 
basis for special projects. 
    Sec. 24.  [INSTRUCTION TO REVISOR.] 
    In the 1991 supplement to Minnesota Statutes, the revisor 
of statutes shall substitute references to "local mental health 
service proposals," "local adult mental health proposal," or 
"local children's mental health proposal," or similar terms or 
phrases which appear in Minnesota Statutes, chapter 245, with 
"adult mental health component of the community social services 
plan" or "children's mental health component of the community 
social services plan," or similar terms, as appropriate.  The 
revisor shall consult with staff from the department of human 
services in determining the appropriate substitutions. 
    Sec. 25.  [REPEALER.] 
    Minnesota Statutes 1990, sections 245.462, subdivision 15; 
245.4871, subdivision 23; 256B.092, subdivisions 1c and 1d; and 
256E.09, subdivisions 4 and 5, are repealed. 
    Sec. 26.  [EFFECTIVE DATE.] 
    Sections 4, 9, and 21 are effective January 1, 1993. 
    Presented to the governor May 10, 1991 
    Signed by the governor May 14, 1991, 4:45 p.m.