HF 2216

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/20/2025 04:15 p.m.

A bill for an act
relating to health facilities; prohibiting certain conditions for admission to or
continued residence in certain facilities; requiring review and approval of increases
in amounts charged by assisted living facilities; prohibiting termination or
nonrenewal of assisted living contracts on certain grounds; modifying provisions
governing arbitration in assisted living contracts; amending Minnesota Statutes
2024, sections 144G.09, subdivision 2; 144G.19, by adding a subdivision; 144G.40,
by adding a subdivision; 144G.51; 144G.52, by adding a subdivision; 144G.53;
245D.10, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapters 144A; 144G.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [144A.104] PROHIBITED CONDITION FOR ADMISSION OR
CONTINUED RESIDENCE.
new text end

new text begin A nursing home is prohibited from requiring a current or prospective resident to have
or obtain a guardian or conservator as a condition of admission to or continued residence
in the nursing home.
new text end

Sec. 2.

Minnesota Statutes 2024, section 144G.09, subdivision 2, is amended to read:

Subd. 2.

Regulatory functions.

(a) The commissioner shall:

(1) license, survey, and monitor without advance notice assisted living facilities in
accordance with this chapter and rules;

(2) survey every provisional licensee within one year of the provisional license issuance
date subject to the provisional licensee providing assisted living services to residents;

(3) survey assisted living facility licensees at least once every two years;

(4) investigate complaints of assisted living facilities;

(5) issue correction orders and assess civil penalties under sections 144G.30 and 144G.31;

(6) take action as authorized in section 144G.20; deleted text begin and
deleted text end

new text begin (7) approve or disapprove proposed increases in amounts charged for housing or assisted
living services under sections 144G.19, subdivision 5, and 144G.40, subdivision 4; and
new text end

deleted text begin (7) deleted text end new text begin (8) new text end take other action reasonably required to accomplish the purposes of this chapter.

(b) The commissioner shall review blueprints for all new facility construction and must
approve the plans before construction may be commenced.

(c) The commissioner shall provide on-site review of the construction to ensure that all
physical environment standards are met before the facility license is complete.

Sec. 3.

Minnesota Statutes 2024, section 144G.19, is amended by adding a subdivision to
read:

new text begin Subd. 5. new text end

new text begin Change of ownership; increase in amount charged for housing or
services. new text end

new text begin (a) Following a change of ownership, the new licensee must honor the terms of
an assisted living contract in effect at the time of the change of ownership until the contract
expires. A new licensee that proposes to increase the amount charged for housing or assisted
living services in an assisted living contract replacing a contract in effect at the time of the
change of ownership must provide the commissioner with justification for and specific
documentation supporting the proposed increase.
new text end

new text begin (b) The commissioner must review the justification and documentation provided under
paragraph (a) and approve or disapprove the proposed increase. The commissioner may
request from the new licensee additional documentation or information the commissioner
deems necessary to conduct the review. An assisted living facility must not implement a
proposed increase described in paragraph (a) unless the commissioner approves the proposed
increase.
new text end

Sec. 4.

Minnesota Statutes 2024, section 144G.40, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Increase in amount charged for housing or services. new text end

new text begin (a) If an assisted living
facility proposes to increase the amount charged for housing or assisted living services by
an amount that exceeds the change in the Consumer Price Index for All Urban Consumers
published by the federal Bureau of Labor Statistics, for the most recent 12-month period
for which data is available, the assisted living facility must provide the commissioner with
justification for and specific documentation supporting the proposed increase.
new text end

new text begin (b) The documentation required under paragraph (a) must include:
new text end

new text begin (1) data on operational costs, including but not limited to the cost of staffing, utilities,
maintenance, and other day-to-day expenses necessary to operate the facility;
new text end

new text begin (2) data on the proposed imposition of any new fees, but is not limited to a raw food
fee, community fee, pharmacy choice or coordination fee, hospice choice or coordination
fee, or activities fee;
new text end

new text begin (3) the facility's balance sheet, including projected revenues and expenses for the next
fiscal year;
new text end

new text begin (4) data on costs related to compliance with new regulatory requirements, including but
not limited to health and safety requirements;
new text end

new text begin (5) data on capital improvements to, upgrades to, or expansion of the facility, including
but not limited to building renovations or new construction;
new text end

new text begin (6) a comparison of the facility's costs and fees and the costs and fees of similar facilities
in the region where the facility is located;
new text end

new text begin (7) data on whether the facility's residents have increased needs or are requesting new
amenities; and
new text end

new text begin (8) the percentage of revenue devoted to administrative costs and the percentage of
revenue devoted to marketing costs.
new text end

new text begin (c) The commissioner must review the justification and documentation provided under
paragraph (a) and approve or disapprove the proposed increase. The commissioner may
request from the facility additional documentation or information the commissioner deems
necessary to conduct the review. An assisted living facility must not implement a proposed
increase described in paragraph (a) unless the commissioner approves the proposed increase.
new text end

new text begin (d) If the commissioner approves the proposed increase, approval must be conditioned
on the facility maintaining or improving the quality of care it provides, including but not
limited to hiring additional staff, improving staff training, updating medical equipment, or
upgrading physical environment elements of the facility.
new text end

Sec. 5.

new text begin [144G.505] PROHIBITED CONDITION OF ADMISSION OR CONTINUED
RESIDENCE.
new text end

new text begin An assisted living facility is prohibited from requiring a current or prospective resident
to have or obtain a guardian or conservator as a condition of admission to or continued
residence in the assisted living facility.
new text end

Sec. 6.

Minnesota Statutes 2024, section 144G.51, is amended to read:

144G.51 ARBITRATION.

(a) An assisted living facility deleted text begin must clearly and conspicuously disclose, in writing in an
assisted living contract, any arbitration provision in the contract that precludes, limits, or
delays the ability of a resident from taking a civil action. deleted text end new text begin is prohibited from:
new text end

new text begin (1) requiring mandatory arbitration to resolve contractual or other disputes; or
new text end

new text begin (2) requiring a current or prospective resident, as a condition of admission to or continued
residence in the facility, to agree to use arbitration to resolve contractual or other disputes.
new text end

new text begin (b) The use of arbitration to resolve a contractual or other dispute must be optional for
the resident. Any optional arbitration provision must be contained in a separate writing as
an addendum to the assisted living contract, together with a conspicuous notice that arbitration
is optional and cannot be a condition of admission or continued residence. An arbitration
agreement that violates this paragraph is void and unenforceable.
new text end

deleted text begin (b) deleted text end new text begin (c) new text end An new text begin optional new text end arbitration deleted text begin requirement deleted text end new text begin provision new text end must not include a choice of law
or choice of venue provision. Assisted living contracts must adhere to Minnesota law and
any other applicable federal or local law.

Sec. 7.

Minnesota Statutes 2024, section 144G.52, is amended by adding a subdivision to
read:

new text begin Subd. 5a. new text end

new text begin Impermissible ground for termination. new text end

new text begin A facility must not terminate an
assisted living contract on the ground that the resident changes from using private funds to
using public funds to pay for housing or services. This subdivision does not prohibit a
facility from terminating an assisted living contract for nonpayment according to subdivision
3, or for a violation of the assisted living contract according to subdivision 4.
new text end

Sec. 8.

Minnesota Statutes 2024, section 144G.53, is amended to read:

144G.53 NONRENEWAL OF HOUSING.

new text begin Subdivision 1. new text end

new text begin Notice or termination procedure. new text end

(a) If a facility decides to not renew
a resident's housing under a contract, the facility must either (1) provide the resident with
60 calendar days' notice of the nonrenewal and assistance with relocation planning, or (2)
follow the termination procedure under section 144G.52.

(b) The notice must include the reason for the nonrenewal and contact information of
the Office of Ombudsman for Long-Term Care and the Office of Ombudsman for Mental
Health and Developmental Disabilities.

(c) A facility must:

(1) provide notice of the nonrenewal to the Office of Ombudsman for Long-Term Care; new text begin
and
new text end

(2) for residents who receive home and community-based waiver services under chapter
256S and section 256B.49, provide notice to the resident's case manager deleted text begin ; deleted text end new text begin .
new text end

new text begin Subd. 2. new text end

new text begin Prohibited ground for nonrenewal. new text end

new text begin A facility must not decline to renew a
resident's housing under a contract on the ground that the resident changes from using private
funds to using public funds to pay for housing. This subdivision does not prohibit a facility
from terminating an assisted living contract for nonpayment according to section 144G.52,
subdivision 3, or for a violation of the assisted living contract according to section 144G.52,
subdivision 4.
new text end

new text begin Subd. 3. new text end

new text begin Requirements following notice. new text end

new text begin If a facility provides notice of nonrenewal
according to subdivision 1, the facility must:
new text end

deleted text begin (3) deleted text end new text begin (1) new text end ensure a coordinated move to a safe location, as defined in section 144G.55,
subdivision 2, that is appropriate for the resident;

deleted text begin (4) deleted text end new text begin (2) new text end ensure a coordinated move to an appropriate service provider identified by the
facility, if services are still needed and desired by the resident;

deleted text begin (5) deleted text end new text begin (3) new text end consult and cooperate with the resident, legal representative, designated
representative, case manager for a resident who receives home and community-based waiver
services under chapter 256S and section 256B.49, relevant health professionals, and any
other persons of the resident's choosing to make arrangements to move the resident, including
consideration of the resident's goals; and

deleted text begin (6) deleted text end new text begin (4) new text end prepare a written plan to prepare for the move.

new text begin Subd. 4. new text end

new text begin Right to move to location of resident's choosing or to use provider of
resident's choosing. new text end

deleted text begin (d) deleted text end A resident may decline to move to the location the facility identifies
or to accept services from a service provider the facility identifies, and may instead choose
to move to a location of the resident's choosing or receive services from a service provider
of the resident's choosing within the timeline prescribed in the nonrenewal notice.

Sec. 9.

Minnesota Statutes 2024, section 245D.10, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Prohibited condition of admission or continued residence. new text end

new text begin A license holder
is prohibited from requiring a current or prospective resident to have or obtain a guardian
or conservator as a condition of admission to or continued residence in the facility.
new text end