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HF 1982

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.
  1.1                          A bill for an act 
  1.2             relating to human services; providing nursing facility 
  1.3             wage increases for employees and individuals providing 
  1.4             certain services under contract; amending Minnesota 
  1.5             Statutes 2000, section 256B.431, by adding a 
  1.6             subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2000, section 256B.431, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 31.  [NURSING FACILITY WAGE INCREASES BEGINNING JULY 
  1.11  1, 2001, AND JULY 1, 2002.] (a) For the rate years beginning 
  1.12  July 1, 2001, and July 1, 2002, the commissioner shall make 
  1.13  available to each nursing facility reimbursed under section 
  1.14  256B.434, 256B.435, or this section an adjustment to the total 
  1.15  operating payment rates in effect on June 30, 2001, and June 30, 
  1.16  2002, respectively. 
  1.17     (b) The adjustment under this section must be used to 
  1.18  increase the per-hour pay rate of all employees, and individuals 
  1.19  providing services that are not nursing-related under contract 
  1.20  at a nursing facility, except management fees, the 
  1.21  administrator, and central office staff by an equal dollar 
  1.22  amount and to pay associated costs for FICA, the Medicare tax, 
  1.23  workers' compensation premiums, and federal and state 
  1.24  unemployment insurance.  The adjustment shall be calculated 
  1.25  according to clauses (1) to (3): 
  1.26     (1) the commissioner shall calculate the arithmetic mean of 
  2.1   all June 30, 2001, and June 30, 2002, operating rates for each 
  2.2   facility; 
  2.3      (2) the commissioner shall construct an array of nursing 
  2.4   facilities from highest to lowest, according to the arithmetic 
  2.5   mean calculated in clause (1).  A numerical rank shall be 
  2.6   assigned to each facility in the array.  The facility with the 
  2.7   highest mean shall be assigned a numerical rank of one.  The 
  2.8   facility with the lowest mean shall be assigned a numerical rank 
  2.9   equal to the total number of nursing facilities in the array.  
  2.10  All other facilities shall be assigned a numerical rank in 
  2.11  accordance with their position in the array; 
  2.12     (3) the amount of this rate increase for the rate year 
  2.13  beginning July 1, 2001, shall be $1 plus an amount equal to 
  2.14  $4.91 multiplied by the ratio of the facility's numeric rank 
  2.15  divided by the number of facilities in the array; and 
  2.16     (4) the amount of this rate increase for the rate year 
  2.17  beginning July 1, 2002, shall be $1 plus an amount equal to 
  2.18  $5.06 multiplied by the ratio of the facility's numeric rank 
  2.19  divided by the number of facilities in the array. 
  2.20     Money received by a facility as a result of the additional 
  2.21  rate increase provided under this paragraph shall be used only 
  2.22  for wage increases implemented on or after July 1, 2001, or July 
  2.23  1, 2002, respectively, and shall not be used for wage increases 
  2.24  implemented prior to those dates. 
  2.25     (c) Nursing facilities may apply for the payment rate 
  2.26  adjustment calculated under paragraph (b).  The application must 
  2.27  be made to the commissioner and contain a computation of the 
  2.28  equal per-hour pay rate increase by which the nursing facility 
  2.29  will distribute the payment rate adjustment to employees of the 
  2.30  nursing facility, and individuals providing services that are 
  2.31  not nursing-related under contract at the nursing facility.  For 
  2.32  nursing facilities in which the employees or individuals are 
  2.33  represented by an exclusive bargaining representative, an 
  2.34  agreement negotiated and agreed to by the employer and the 
  2.35  exclusive bargaining representative constitutes the plan.  A 
  2.36  negotiated agreement may constitute the plan only if the 
  3.1   agreement is finalized after the date of enactment of all 
  3.2   increases for the rate year.  The commissioner shall review the 
  3.3   plan to ensure that the payment rate adjustment per diem is used 
  3.4   as provided in paragraph (b).  To be eligible, a facility must 
  3.5   submit its plan for the compensation distribution by December 31 
  3.6   each year.  If a facility's plan for compensation distribution 
  3.7   is effective for its employees or individuals providing services 
  3.8   under contract after July 1 of the year that the funds are 
  3.9   available, the payment rate adjustment per diem shall be 
  3.10  effective the same date as its plan. 
  3.11     (d) A copy of the approved distribution plan must be made 
  3.12  available to all employees, and individuals providing services 
  3.13  that are not nursing-related under contract.  This must be done 
  3.14  by giving each employee or individual a copy or by posting it in 
  3.15  an area of the nursing facility to which all employees and 
  3.16  individuals have access.  If an employee or individual providing 
  3.17  services under contract does not receive the compensation 
  3.18  adjustment described in their facility's approved plan and is 
  3.19  unable to resolve the problem with the facility's management or 
  3.20  through the employee's or individual's union representative, the 
  3.21  employee or individual may contact the commissioner at an 
  3.22  address or phone number provided by the commissioner and 
  3.23  included in the approved plan.