1.1 	A bill for an act
1.2 	relating to human services; providing an increase to nursing facility rates; 
1.3 	amending Minnesota Statutes 2012, section 256B.434, subdivision 19; Laws 
1.4 	2008, chapter 363, article 18, section 3, subdivision 6.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2012, section 256B.434, subdivision 19, is amended to 
1.7 	read:
1.8 		Subd. 19.Nursing facility rate increases beginning October 1, 2007 2013.  (a) 
1.9 	For the rate year beginning October 1, 2007 2013, the commissioner shall make available 
1.10 	to each nursing facility reimbursed under this section operating payment rate adjustments 
1.11 	equal to 1.87 five percent of the operating payment rates in effect on September 30, 2007
1.12 	 2013.
1.13 	(b) Seventy-five percent of the money resulting from the rate adjustment under 
1.14 	paragraph (a) must be used for increases in compensation-related costs for employees 
1.15 	directly employed by the nursing facility on or after the effective date of the rate 
1.16 	adjustment, except:
1.17 	(1) the administrator;
1.18 	(2) persons employed in the central office of a corporation that has an ownership 
1.19 	interest in the nursing facility or exercises control over the nursing facility; and
1.20 	(3) persons paid by the nursing facility under a management contract.
1.21 	(c) Two-thirds of the money available under paragraph (b) must be used for wage 
1.22 	increases for all employees directly employed by the nursing facility on or after the 
1.23 	effective date of the rate adjustment, except those listed in paragraph (b), clauses (1) to 
1.24 	(3). The wage adjustment that employees receive under this paragraph must be paid as 
2.1 	an equal hourly percentage wage increase for all eligible employees. All wage increases 
2.2 	under this paragraph must be effective on the same date. Only costs associated with the 
2.3 	portion of the equal hourly percentage wage increase that goes to all employees shall 
2.4 	qualify under this paragraph. Costs associated with wage increases in excess of the 
2.5 	amount of the equal hourly percentage wage increase provided to all employees shall be 
2.6 	allowed only for meeting the requirements in paragraph (b). This paragraph shall not 
2.7 	apply to employees covered by a collective bargaining agreement.
2.8 	(d) The commissioner shall allow as compensation-related costs all costs for:
2.9 	(1) wages and salaries;
2.10 	(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers' 
2.11 	compensation;
2.12 	(3) the employer's share of health and dental insurance, life insurance, disability 
2.13 	insurance, long-term care insurance, uniform allowance, and pensions; and
2.14 	(4) other benefits provided, subject to the approval of the commissioner.
2.15 	(e) The portion of the rate adjustment under paragraph (a) that is not subject to the 
2.16 	requirements in paragraphs (b) and (c) shall be provided to nursing facilities effective 
2.17 	October 1, 2007 2013.
2.18 	(f) Nursing facilities may apply for the portion of the rate adjustment under paragraph 
2.19 	(a) that is subject to the requirements in paragraphs (b) and (c). The application must be 
2.20 	submitted to the commissioner within six months of the effective date of the rate adjustment, 
2.21 	and the nursing facility must provide additional information required by the commissioner 
2.22 	within nine months of the effective date of the rate adjustment. The commissioner must 
2.23 	respond to all applications within three weeks of receipt. The commissioner may waive 
2.24 	the deadlines in this paragraph under extraordinary circumstances, to be determined at the 
2.25 	sole discretion of the commissioner. The application must contain:
2.26 	(1) an estimate of the amounts of money that must be used as specified in paragraphs 
2.27 	(b) and (c);
2.28 	(2) a detailed distribution plan specifying the allowable compensation-related and 
2.29 	wage increases the nursing facility will implement to use the funds available in clause (1);
2.30 	(3) a description of how the nursing facility will notify eligible employees of 
2.31 	the contents of the approved application, which must provide for giving each eligible 
2.32 	employee a copy of the approved application, excluding the information required in clause 
2.33 	(1), or posting a copy of the approved application, excluding the information required in 
2.34 	clause (1), for a period of at least six weeks in an area of the nursing facility to which all 
2.35 	eligible employees have access; and
3.1 	(4) instructions for employees who believe they have not received the 
3.2 	compensation-related or wage increases specified in clause (2), as approved by the 
3.3 	commissioner, and which must include a mailing address, e-mail address, and the 
3.4 	telephone number that may be used by the employee to contact the commissioner or the 
3.5 	commissioner's representative.
3.6 	(g) The commissioner shall ensure that cost increases in distribution plans under 
3.7 	paragraph (f), clause (2), that may be included in approved applications, comply with the 
3.8 	following requirements:
3.9 	(1) costs to be incurred during the applicable rate year resulting from wage and 
3.10 	salary increases effective after October 1, 2006 2012, and prior to the first day of the 
3.11 	nursing facility's payroll period that includes October 1, 2007 2013, shall be allowed if 
3.12 	they were not used in the prior year's application;
3.13 	(2) a portion of the costs resulting from tenure-related wage or salary increases 
3.14 	may be considered to be allowable wage increases, according to formulas that the 
3.15 	commissioner shall provide, where employee retention is above the average statewide 
3.16 	rate of retention of direct care employees;
3.17 	(3) the annualized amount of increases in costs for the employer's share of health 
3.18 	and dental insurance, life insurance, disability insurance, and workers' compensation shall 
3.19 	be allowable compensation-related increases if they are effective on or after April 1, 2007
3.20 	 2013, and prior to April 1, 2008 2014; and
3.21 	(4) for nursing facilities in which employees are represented by an exclusive 
3.22 	bargaining representative, the commissioner shall approve the application only upon receipt 
3.23 	of a letter of acceptance of the distribution plan, in regard to members of the bargaining 
3.24 	unit, signed by the exclusive bargaining agent and dated after May 25, 2007 20, 2013. 
3.25 	Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of 
3.26 	this section as having been met in regard to the members of the bargaining unit.
3.27 	(h) The commissioner shall review applications received under paragraph (f) and 
3.28 	shall provide the portion of the rate adjustment under paragraphs (b) and (c) if the 
3.29 	requirements of this subdivision have been met. The rate adjustment shall be effective 
3.30 	October 1. Notwithstanding paragraph (a), if the approved application distributes less 
3.31 	money than is available, the amount of the rate adjustment shall be reduced so that the 
3.32 	amount of money made available is equal to the amount to be distributed.

3.33 	Sec. 2. Laws 2008, chapter 363, article 18, section 3, subdivision 6, is amended to read:

3.34	Subd. 6.Continuing Care Grants

3.35	(a) Aging and Adult Services Grants
		-0-
		(337,000)
	
4.1 	Base Adjustment. The general fund base is 
4.2 	increased by $71,000 in fiscal year 2010 and 
4.3 	$70,000 in fiscal year 2011.
4.4 	Grants Reduction. Effective July 1, 2008, 
4.5 	base level funding for nonforecast, general 
4.6 	fund aging and adult services state grants 
4.7 	issued under this paragraph shall be reduced 
4.8 	by 1.8 percent at the allotment level.
4.9 	Aging and Adult Services Adjustments.
4.10 	For the fiscal year ending June 30, 2009, 
4.11 	the commissioner may allocate each grant 
4.12 	affected by rate changes under this section in 
4.13 	such a manner across the fiscal year to achieve 
4.14 	the necessary cost savings and minimize 
4.15 	disruption to grantees. To implement this 
4.16 	paragraph, the commissioner may waive the 
4.17 	requirements of Laws 2007, chapter 147, 
4.18 	article 7, section 71, including the employee 
4.19 	compensation-related cost requirements.
4.20 	Living-At-Home/Block Nurse Program 
4.21 	Funding. Notwithstanding the provisions 
4.22 	of Minnesota Statutes, section 256B.0917, 
4.23 	subdivision 8, for the fiscal year beginning 
4.24 	July 1, 2008, the commissioner of human 
4.25 	services shall transfer $240,000 from the 
4.26 	community service grant program under 
4.27 	Minnesota Statutes, section 256B.0917, 
4.28 	subdivision 13, to the living-at-home/block 
4.29 	nurse program under Minnesota Statutes, 
4.30 	section 256B.0917, subdivision 8, to provide 
4.31 	$20,000 each for 12 living-at-home/block 
4.32 	nurse programs currently operating without 
4.33 	base funding. This is onetime funding.

4.34	(b) Alternative Care Grants
		-0-
		(198,000)
	
4.35 	This reduction is onetime.

5.1	(c) MA Long-Term Care Facilities Grants
		(2,306,000)
		3,045,000
	
5.2 	Nursing Facility Rate Increase. (a) For 
5.3 	the rate year beginning October 1, 2008, 
5.4 	the commissioner shall make available 
5.5 	to each nursing facility reimbursed under 
5.6 	Minnesota Statutes, section 256B.434, 
5.7 	operating payment rate adjustments equal to 
5.8 	1.00 percent of the operating payment rates 
5.9 	determined by the blending in Minnesota 
5.10 	Statutes, section 256B.441, subdivision 55, 
5.11 	paragraph (a).
5.12 	(b) Seventy-five percent of the money 
5.13 	resulting from the rate adjustment under 
5.14 	paragraph (a) must be used for increases in 
5.15 	compensation-related costs for employees 
5.16 	directly employed by the nursing facility 
5.17 	on or after the effective date of the rate 
5.18 	adjustment, except:
5.19 	(1) the administrator;
5.20 	(2) persons employed in the central office of 
5.21 	a corporation that has an ownership interest 
5.22 	in the nursing facility or exercises control 
5.23 	over the nursing facility; and 
5.24 	(3) persons paid by the nursing facility under 
5.25 	a management contract.
5.26 	(c) Two-thirds of the money available 
5.27 	under paragraph (b) must be used for wage 
5.28 	increases for all employees directly employed 
5.29 	by the nursing facility on or after the effective 
5.30 	date of the rate adjustment, except those 
5.31 	listed in paragraph (b), clauses (1) to (3). 
5.32 	The wage adjustment that employees receive 
5.33 	under this paragraph must be paid as an 
5.34 	equal hourly percentage wage increase for all 
6.1 	eligible employees. All wage increases under 
6.2 	this paragraph must be effective on the same 
6.3 	date. Only costs associated with the portion 
6.4 	of the equal hourly percentage wage increase 
6.5 	that goes to all employees shall qualify under 
6.6 	this paragraph. Costs associated with wage 
6.7 	increases in excess of the amount of the equal 
6.8 	hourly percentage wage increase provided 
6.9 	to all employees shall be allowed only for 
6.10 	meeting the requirements in paragraph (b). 
6.11 	This paragraph shall not apply to employees 
6.12 	covered by a collective bargaining agreement.
6.13 	(d) The commissioner shall allow as 
6.14 	compensation-related costs all costs for:
6.15 	(1) wages and salaries;
6.16 	(2) FICA taxes, Medicare taxes, state and 
6.17 	federal unemployment taxes, and workers' 
6.18 	compensation;
6.19 	(3) the employer's share of health and 
6.20 	dental insurance, life insurance, disability 
6.21 	insurance, long-term care insurance, uniform 
6.22 	allowance, and pensions; and
6.23 	(4) other benefits provided, subject to the 
6.24 	approval of the commissioner.
6.25 	(e) The portion of the rate adjustment under 
6.26 	paragraph (a) that is not subject to the 
6.27 	requirements in paragraphs (b) and (c) shall 
6.28 	be provided to nursing facilities effective 
6.29 	October 1, 2008.
6.30 	(f) Nursing facilities may apply for the 
6.31 	portion of the rate adjustment under 
6.32 	paragraph (a) that is subject to the 
6.33 	requirements in paragraphs (b) and (c). 
6.34 	The application must be submitted to the 
7.1 	commissioner within six months of the 
7.2 	effective date of the rate adjustment, and 
7.3 	the nursing facility must provide additional 
7.4 	information required by the commissioner 
7.5 	within nine months of the effective date 
7.6 	of the rate adjustment. The commissioner 
7.7 	must respond to all applications within 
7.8 	three weeks of receipt. The commissioner 
7.9 	may waive the deadlines in this paragraph 
7.10 	under extraordinary circumstances, to be 
7.11 	determined at the sole discretion of the 
7.12 	commissioner. The application must contain:
7.13 	(1) an estimate of the amounts of money that 
7.14 	must be used as specified in paragraphs (b) 
7.15 	and (c);
7.16 	(2) a detailed distribution plan specifying the 
7.17 	allowable compensation-related and wage 
7.18 	increases the nursing facility will implement 
7.19 	to use the funds available in clause (1);
7.20 	(3) a description of how the nursing facility 
7.21 	will notify eligible employees of the contents 
7.22 	of the approved application, which must 
7.23 	provide for giving each eligible employee a 
7.24 	copy of the approved application, excluding 
7.25 	the information required in clause (1), or 
7.26 	posting a copy of the approved application, 
7.27 	excluding the information required in clause 
7.28 	(1), for a period of at least six weeks in 
7.29 	an area of the nursing facility to which all 
7.30 	eligible employees have access; and
7.31 	(4) instructions for employees who 
7.32 	believe they have not received the 
7.33 	compensation-related or wage increases 
7.34 	specified in clause (2), as approved by the 
7.35 	commissioner, and which must include a 
8.1 	mailing address, e-mail address, and the 
8.2 	telephone number that may be used by the 
8.3 	employee to contact the commissioner or the 
8.4 	commissioner's representative.
8.5 	(g) The commissioner shall ensure that 
8.6 	cost increases in distribution plans under 
8.7 	paragraph (f), clause (2), that may be 
8.8 	included in approved applications, comply 
8.9 	with the following requirements:
8.10 	(1) costs to be incurred during the applicable 
8.11 	rate year resulting from wage and salary 
8.12 	increases effective after October 1, 2007, and 
8.13 	prior to the first day of the nursing facility's 
8.14 	payroll period that includes October 1, 2008, 
8.15 	shall be allowed if they were not used in the 
8.16 	prior year's application;
8.17 	(2) a portion of the costs resulting from 
8.18 	tenure-related wage or salary increases 
8.19 	may be considered to be allowable wage 
8.20 	increases, according to formulas that the 
8.21 	commissioner shall provide, where employee 
8.22 	retention is above the average statewide rate 
8.23 	of retention of direct care employees;
8.24 	(3) the annualized amount of increases in 
8.25 	costs for the employer's share of health and 
8.26 	dental insurance, life insurance, disability 
8.27 	insurance, and workers' compensation shall 
8.28 	be allowable compensation-related increases 
8.29 	if they are effective on or after April 1, 2008, 
8.30 	and prior to April 1, 2009; and 
8.31 	(4) for nursing facilities in which employees 
8.32 	are represented by an exclusive bargaining 
8.33 	representative, the commissioner shall 
8.34 	approve the application only upon receipt of 
8.35 	a letter of acceptance of the distribution plan, 
9.1 	in regard to members of the bargaining unit, 
9.2 	signed by the exclusive bargaining agent and 
9.3 	dated after May 25, 2008. Upon receipt of 
9.4 	the letter of acceptance, the commissioner 
9.5 	shall deem all requirements of this rider as 
9.6 	having been met in regard to the members 
9.7 	of the bargaining unit.
9.8 	(h) The commissioner shall review 
9.9 	applications received under paragraph (f) 
9.10 	and shall provide the portion of the rate 
9.11 	adjustment under paragraphs (b) and (c) 
9.12 	if the requirements of this rider have been 
9.13 	met. The rate adjustment shall be effective 
9.14 	October 1, 2008. Notwithstanding paragraph 
9.15 	(a), if the approved application distributes 
9.16 	less money than is available, the amount of 
9.17 	the rate adjustment shall be reduced so that 
9.18 	the amount of money made available is equal 
9.19 	to the amount to be distributed.
9.20 	(i) Of the general fund appropriation, 
9.21 	$2,877,000 in fiscal year 2009 is for the 
9.22 	purposes of paragraphs (a) to (h).
9.23 	(j) Notwithstanding any contrary provision 
9.24 	of this article, this rider shall not expire.
9.25 	Nursing Facility Temporary Rate 
9.26 	Adjustment. (a) Of the general fund 
9.27 	appropriation, $2,877,000 for fiscal year 
9.28 	2009 is to make available to nursing 
9.29 	facilities reimbursed under Minnesota 
9.30 	Statutes, section 256B.434, for the rate year 
9.31 	beginning October 1, 2008, a temporary 
9.32 	rate adjustment equal to 1.0 percent of the 
9.33 	operating payment rates determined by the 
9.34 	blending in Minnesota Statutes, section 
9.35 	256B.441, subdivision 55, paragraph (a). 
10.1 	This rate adjustment shall be removed from 
10.2 	the facility's operating payment rate for the 
10.3 	rate year beginning October 1, 2009.
10.4 	(b) Seventy-five percent of the money 
10.5 	resulting from the rate adjustment under 
10.6 	paragraph (a) must be used to provide 
10.7 	quarterly bonus payments, and to pay 
10.8 	for associated employer costs and other 
10.9 	benefits as specified in Minnesota Statutes, 
10.10 	section 256B.434, subdivision 19, paragraph 
10.11 	(d), clauses (2) to (4), for all employees 
10.12 	directly employed by the nursing facility on 
10.13 	December 31, 2008; March 31, 2009; June 
10.14 	30, 2009; and September 30, 2009, except:
10.15 	(1) the administrator;
10.16 	(2) persons employed in the central office of 
10.17 	a corporation that has an ownership interest 
10.18 	in the nursing facility or exercises control 
10.19 	over the nursing facility; and
10.20 	(3) persons paid by the nursing facility under 
10.21 	a management contract.
10.22 	(c) Two-thirds of the money available under 
10.23 	paragraph (b) must be used for an equal 
10.24 	hourly percentage wage bonus for all eligible 
10.25 	employees.
10.26 	(d) Nursing facilities may apply for the 
10.27 	portion of the rate adjustment subject to 
10.28 	paragraphs (b) and (c), and the commissioner 
10.29 	shall review and act on applications, 
10.30 	according to the procedures specified in 
10.31 	Minnesota Statutes, section 256B.434, 
10.32 	subdivision 19. The portion of the rate 
10.33 	adjustment under paragraph (a) that is not 
10.34 	subject to the requirements in paragraphs (b) 
11.1 	and (c) shall be provided to nursing facilities 
11.2 	effective October 1, 2008.
11.3 	(e) Notwithstanding any contrary provision 
11.4 	in this article, this rider expires December 
11.5 	31, 2009.

11.6
11.7	(d) MA Long-Term Care Waivers and Home 
Care Grants
		-0-
		(10,643,000)
	
11.8 	Manage Growth in TBI and CADI Waiver.
11.9 	During the fiscal years beginning on July 
11.10 	1, 2008, July 1, 2009, and July 1, 2010, 
11.11 	the commissioner shall allocate money 
11.12 	for home and community-based programs 
11.13 	covered under Minnesota Statutes, section 
11.14 	256B.49, to ensure a reduction in state 
11.15 	spending that is equivalent to limiting the 
11.16 	caseload growth of the traumatic brain injury 
11.17 	(TBI) waiver to 200 allocations in each 
11.18 	year of the biennium and the community 
11.19 	alternatives for disabled individuals (CADI) 
11.20 	waiver to 1,500 allocations each year of the 
11.21 	biennium. Priorities for the allocation of 
11.22 	funds must be for individuals anticipated to 
11.23 	be discharged from institutional settings or 
11.24 	who are at imminent risk of a placement in 
11.25 	an institutional setting. Notwithstanding any 
11.26 	contrary section in this article, this provision 
11.27 	expires June 30, 2011.

11.28	(e) Mental Health Grants
		-0-
		(4,823,000)
	
11.29 	Base Adjustment. This reduction is onetime.
11.30 	Funding Usage. Up to 75 percent of the 
11.31 	fiscal year 2010 appropriation for adult 
11.32 	mental health grants may be used to fund 
11.33 	calendar year 2009 allocations for these 
11.34 	programs, with the resulting calendar year 
11.35 	funding pattern continuing into the future.

12.1	(f) Chemical Dependency Entitlement Grants
		-0-
		(2,069,000)
	
12.2 	Payments for Substance Abuse Treatment.
12.3 	For services provided in fiscal year 2009, 
12.4 	county-negotiated rates and provider claims 
12.5 	to the consolidated chemical dependency 
12.6 	fund must not exceed rates charged for 
12.7 	services in excess of those in effect on 
12.8 	May 31, 2008. If statutes authorize a 
12.9 	cost-of-living adjustment during fiscal year 
12.10 	2009, then notwithstanding any law to the 
12.11 	contrary, fiscal year 2009 rates may not 
12.12 	exceed those in effect on May 31, 2008, plus 
12.13 	any authorized cost-of-living adjustments.
12.14 	Chemical Dependency Treatment Fund 
12.15 	Special Revenue Account. The lesser of 
12.16 	the balance of the consolidated chemical 
12.17 	dependency treatment fund at the close of 
12.18 	the fiscal year 2008, or $2,784,000 must be 
12.19 	transferred and deposited into the general 
12.20 	fund by September 1, 2008. The lesser of 
12.21 	the balance of the consolidated chemical 
12.22 	dependency treatment fund at the close of 
12.23 	the fiscal year 2009, or $2,009,000 must be 
12.24 	transferred and deposited into the general 
12.25 	fund by September 1, 2009.

12.26
12.27	(g) Chemical Dependency Nonentitlement 
Grants
		-0-
		1,967,000
	
12.28 	Base Level Adjustment. The general 
12.29 	fund base for chemical dependency 
12.30 	nonentitlement treatment grants must be 
12.31 	reduced by $1,686,000 for fiscal year 2010 
12.32 	and by $1,686,000 for fiscal year 2011.
12.33 	White Earth treatment facility. $2,000,000 
12.34 	is appropriated from the general fund to 
12.35 	the commissioner of human services for a 
13.1 	grant to the White Earth tribe to purchase 
13.2 	or develop one or more culturally specific 
13.3 	treatment programs or capital facilities, or 
13.4 	both, designed to serve youth from native 
13.5 	cultures. This appropriation is onetime and 
13.6 	is available until spent.
13.7 	Grants Reduction. Effective July 1, 2008, 
13.8 	base level funding for nonforecast, general 
13.9 	fund chemical dependency nonentitlement 
13.10 	grants issued under this paragraph shall be 
13.11 	reduced by 1.8 percent at the allotment level.

13.12	(h) Other Continuing Care Grants
		-0-
		(4,729,000)
	
13.13 	Base Level Adjustment. The general fund 
13.14 	base is increased by $7,283,000 in fiscal year 
13.15 	2010 and $4,921,000 in fiscal year 2011.
13.16 	Housing Access Grants. Of the general 
13.17 	fund appropriation, $250,000 is appropriated 
13.18 	in fiscal year 2009 for housing access 
13.19 	grants under Minnesota Statutes, section 
13.20 	256B.0658.
13.21 	Funding Usage. Up to 75 percent of 
13.22 	the fiscal year 2010 appropriation for 
13.23 	semi-independent living services grants and 
13.24 	family support grants may be used to fund 
13.25 	calendar year 2009 allocations for these 
13.26 	programs, with the resulting calendar year 
13.27 	funding pattern continuing into the future.
13.28 	Grants Reduction. Effective July 1, 2008, 
13.29 	base level funding for nonforecast, general 
13.30 	fund other continuing care grants issued 
13.31 	under this paragraph, except for HIV grants, 
13.32 	shall be reduced by 1.8 percent at the 
13.33 	allotment level. HIV grants shall be reduced 
13.34 	by 1.7 percent at the allotment level effective 
13.35 	July 1, 2009.
14.1 	Other Continuing Care Grant 
14.2 	Adjustments. For the fiscal year ending June 
14.3 	30, 2009, the commissioner may allocate 
14.4 	each grant affected by rate changes under 
14.5 	this section in such a manner across the fiscal 
14.6 	year to achieve the necessary cost savings 
14.7 	and minimize disruption to grantees. To 
14.8 	implement this paragraph, the commissioner 
14.9 	may waive the requirements of Laws 2007, 
14.10 	chapter 147, article 7, section 71, including 
14.11 	the employee compensation-related cost 
14.12 	requirements.