1.1                          A bill for an act 
  1.2             relating to health; modifying requirements for 
  1.3             supplemental nursing services agencies; amending 
  1.4             Minnesota Statutes 2001 Supplement, sections 144A.70, 
  1.5             subdivision 6; 144A.71, subdivision 2; 144A.72, 
  1.6             subdivision 1, by adding subdivisions; 144A.74. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2001 Supplement, section 
  1.9   144A.70, subdivision 6, is amended to read: 
  1.10     Subd. 6.  [SUPPLEMENTAL NURSING SERVICES AGENCY.] 
  1.11  "Supplemental nursing services agency" means a person, firm, 
  1.12  corporation, partnership, or association engaged for hire in the 
  1.13  business of providing or procuring temporary employment in 
  1.14  health care facilities for nurses, nursing assistants, nurse 
  1.15  aides, and orderlies.  Supplemental nursing services agency does 
  1.16  not include an individual who only engages in providing the 
  1.17  individual's services on a temporary basis to health care 
  1.18  facilities.  Supplemental nursing services agency also does not 
  1.19  include any nursing service agency that is limited to providing 
  1.20  temporary nursing personnel solely to one or more health care 
  1.21  facilities owned or operated by the same person, firm, 
  1.22  corporation, or partnership. 
  1.23     Sec. 2.  Minnesota Statutes 2001 Supplement, section 
  1.24  144A.71, subdivision 2, is amended to read: 
  1.25     Subd. 2.  [APPLICATION INFORMATION AND FEE.] The 
  1.26  commissioner shall establish forms and procedures for processing 
  2.1   each supplemental nursing services agency registration 
  2.2   application.  An application for a supplemental nursing services 
  2.3   agency registration must include at least the following: 
  2.4      (1) the names and addresses of the owner or owners of the 
  2.5   supplemental nursing services agency; 
  2.6      (2) if the owner is a corporation, copies of its articles 
  2.7   of incorporation and current bylaws, together with the names and 
  2.8   addresses of its officers and directors; 
  2.9      (3) satisfactory proof of compliance with section 144A.72, 
  2.10  subdivision 1, clauses (6) to (8); 
  2.11     (4) any other relevant information that the commissioner 
  2.12  determines is necessary to properly evaluate an application for 
  2.13  registration; and 
  2.14     (4) (5) the annual registration fee for a supplemental 
  2.15  nursing services agency, which is $891. 
  2.16     Sec. 3.  Minnesota Statutes 2001 Supplement, section 
  2.17  144A.72, subdivision 1, is amended to read: 
  2.18     Subdivision 1.  [MINIMUM CRITERIA.] The commissioner shall 
  2.19  require that, as a condition of registration: 
  2.20     (1) the supplemental nursing services agency shall document 
  2.21  that each temporary employee provided to health care facilities 
  2.22  currently meets the minimum licensing, training, and continuing 
  2.23  education standards for the position in which the employee will 
  2.24  be working; 
  2.25     (2) the supplemental nursing services agency shall comply 
  2.26  with all pertinent requirements relating to the health and other 
  2.27  qualifications of personnel employed in health care facilities; 
  2.28     (3) the supplemental nursing services agency must not 
  2.29  restrict in any manner the employment opportunities of its 
  2.30  employees; 
  2.31     (4) the supplemental nursing services agency, when 
  2.32  supplying temporary employees to a health care facility, and 
  2.33  when requested by the facility to do so, shall agree that at 
  2.34  least 30 percent of the total personnel hours supplied are 
  2.35  during night, holiday, or weekend shifts; 
  2.36     (5) the supplemental nursing services agency shall carry 
  3.1   medical malpractice insurance to insure against the loss, 
  3.2   damage, or expense incident to a claim arising out of the death 
  3.3   or injury of any person as the result of negligence or 
  3.4   malpractice in the provision of health care services by the 
  3.5   supplemental nursing services agency or by any employee of the 
  3.6   agency; and 
  3.7      (6) (5) the supplemental nursing services agency shall 
  3.8   carry an employee dishonesty bond in the amount of $10,000; 
  3.9      (6) the supplemental nursing services agency shall maintain 
  3.10  insurance coverage for workers' compensation for all nurses, 
  3.11  nursing assistants, nurse aides, and orderlies provided or 
  3.12  procured by the agency; 
  3.13     (7) the supplemental nursing services agency shall file 
  3.14  with the commissioner of revenue:  (i) the name and address of 
  3.15  the bank, savings bank, or savings association in which the 
  3.16  supplemental nursing services agency deposits all employee 
  3.17  income tax withholdings; and (ii) the name and address of any 
  3.18  nurse, nursing assistant, nurse aide, or orderly whose income is 
  3.19  derived from placement by the agency, if the agency purports the 
  3.20  income is not subject to withholding; 
  3.21     (8) the supplemental nursing services agency must not, in 
  3.22  any contract with any employee or health care facility, require 
  3.23  the payment of liquidated damages, employment fees, or other 
  3.24  compensation should the employee be hired as a permanent 
  3.25  employee of a health care facility; and 
  3.26     (9) the supplemental nursing services agency shall document 
  3.27  that each temporary employee provided to health care facilities 
  3.28  is an employee of the agency and is not an independent 
  3.29  contractor. 
  3.30     Sec. 4.  Minnesota Statutes 2001 Supplement, section 
  3.31  144A.72, is amended by adding a subdivision to read: 
  3.32     Subd. 3.  [REVOCATION.] Notwithstanding subdivision 2, the 
  3.33  registration of a supplemental nursing services agency that 
  3.34  knowingly supplies to a health care facility a person with an 
  3.35  illegally or fraudulently obtained or issued diploma, 
  3.36  registration, license, certificate, or background study shall be 
  4.1   revoked by the commissioner.  The commissioner shall notify the 
  4.2   supplemental nursing services agency 15 days in advance of the 
  4.3   date of revocation.  
  4.4      Sec. 5.  Minnesota Statutes 2001 Supplement, section 
  4.5   144A.72, is amended by adding a subdivision to read: 
  4.6      Subd. 4.  [HEARING.] (a) No supplemental nursing services 
  4.7   agency's registration may be revoked without a hearing held as a 
  4.8   contested case in accordance with chapter 14.  The hearing must 
  4.9   commence within 60 days after the proceedings are initiated.  
  4.10     (b) If a controlling person has been notified by the 
  4.11  commissioner of health that the supplemental nursing services 
  4.12  agency will not receive an initial registration or that a 
  4.13  renewal of the registration has been denied, the controlling 
  4.14  person or a legal representative on behalf of the supplemental 
  4.15  nursing services agency may request and receive a hearing on the 
  4.16  denial.  This hearing shall be held as a contested case in 
  4.17  accordance with chapter 14.  
  4.18     Sec. 6.  Minnesota Statutes 2001 Supplement, section 
  4.19  144A.72, is amended by adding a subdivision to read: 
  4.20     Subd. 5.  [PERIOD OF INELIGIBILITY.] (a) The controlling 
  4.21  person of a supplemental nursing services agency whose 
  4.22  registration has not been renewed or has been revoked because of 
  4.23  noncompliance with the provisions of sections 144A.70 to 144A.74 
  4.24  shall not be eligible to apply for nor will be granted a 
  4.25  registration for five years following the effective date of the 
  4.26  nonrenewal or revocation.  
  4.27     (b) The commissioner shall not issue or renew a 
  4.28  registration to a supplemental nursing services agency if a 
  4.29  controlling person includes any individual or entity who was a 
  4.30  controlling person of a supplemental nursing services agency 
  4.31  whose registration was not renewed or was revoked as described 
  4.32  in paragraph (a) for five years following the effective date of 
  4.33  nonrenewal or revocation. 
  4.34     Sec. 7.  Minnesota Statutes 2001 Supplement, section 
  4.35  144A.74, is amended to read: 
  4.36     144A.74 [MAXIMUM CHARGES.] 
  5.1      A supplemental nursing services agency must not bill or 
  5.2   receive payments from a nursing home licensed under this chapter 
  5.3   at a rate higher than 150 percent of the sum of the weighted 
  5.4   average wage rate, plus a factor determined by the commissioner 
  5.5   to incorporate payroll taxes as defined in Minnesota Rules, part 
  5.6   9549.0020, subpart 33, for the applicable employee 
  5.7   classification for the geographic group to which the nursing 
  5.8   home is assigned under Minnesota Rules, part 9549.0052.  The 
  5.9   weighted average wage rates must be determined by the 
  5.10  commissioner of human services and reported to the commissioner 
  5.11  of health on an annual basis.  Wages are defined as hourly rate 
  5.12  of pay and shift differential, including weekend shift 
  5.13  differential and overtime.  Facilities shall provide information 
  5.14  necessary to determine weighted average wage rates to the 
  5.15  commissioner of human services in a format requested by the 
  5.16  commissioner.  The maximum rate must include all charges for 
  5.17  administrative fees, contract fees, or other special charges in 
  5.18  addition to the hourly rates for the temporary nursing pool 
  5.19  personnel supplied to a nursing home. 
  5.20     <b>[EFFECTIVE DATE.]</b> This section is effective 14 days after 
  5.21  final enactment.