HF 500

1st Engrossment - 94th Legislature (2025 - 2026)

Posted on 03/03/2025 03:42 p.m.

A bill for an act
relating to labor; modifying wage and benefit increases recommended by the
Nursing Home Workforce Standards Board; amending Minnesota Statutes 2024,
section 181.213, subdivision 2.

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

Section 1.

Minnesota Statutes 2024, section 181.213, subdivision 2, is amended to read:

Subd. 2.

Investigation of market conditions.

(a) The board must investigate market
conditions and the existing wages, benefits, and working conditions of nursing home workers
for specific geographic areas of the state and specific nursing home occupations. Based on
this information, the board must seek to adopt minimum nursing home employment standards
that meet or exceed existing industry conditions for a majority of nursing home workers in
the relevant geographic area and nursing home occupation. deleted text begin Except for standards exceeding
the threshold determined in paragraph (d), initial employment standards established by the
board are effective beginning January 1, 2025, and shall remain in effect until any subsequent
standards are adopted by rules.
deleted text end

(b) The board must consider the following types of information in making determinations
that employment standards are reasonably necessary to protect the health and welfare of
nursing home workers:

(1) wage rate and benefit data collected by or submitted to the board for nursing home
workers in the relevant geographic area and nursing home occupations;

(2) statements showing wage rates and benefits paid to nursing home workers in the
relevant geographic area and nursing home occupations;

(3) signed collective bargaining agreements applicable to nursing home workers in the
relevant geographic area and nursing home occupations;

(4) testimony and information from current and former nursing home workers, worker
organizations, nursing home employers, and employer organizations;

(5) local minimum nursing home employment standards;

(6) information submitted by or obtained from state and local government entities; and

(7) any other information pertinent to establishing minimum nursing home employment
standards.

(c) In considering wage and benefit increases, the board must determine the impact of
nursing home operating payment rates determined pursuant to section 256R.21, subdivision
3, and the employee benefits portion of the external fixed costs payment rate determined
pursuant to section 256R.25. deleted text begin If the board, in consultation with the commissioner of human
services, determines the operating payment rate and employee benefits portion of the external
fixed costs payment rate will increase to comply with the new employment standards, the
board shall report to the legislature the increase in funding needed to increase payment rates
to comply with the new employment standards and must make implementation of any new
nursing home employment standards contingent upon an appropriation, as determined by
sections 256R.21 and 256R.25, to fund the rate increase necessary to comply with the new
employment standards.
deleted text end

deleted text begin (d) In evaluating the impact of the employment standards on payment rates determined
by sections 256R.21 and 256R.25, the board, in consultation with the commissioner of
human services, must consider the following:
deleted text end

deleted text begin (1) the statewide average wage rates for employees pursuant to section 256R.10,
subdivision 5, and benefit rates pursuant to section 256R.02, subdivisions 18 and 22, as
determined by the annual Medicaid cost report used to determine the operating payment
rate and the employee benefits portion of the external fixed costs payment rate for the first
day of the calendar year immediately following the date the board has established minimum
wage and benefit levels;
deleted text end

deleted text begin (2) compare the results of clause (1) to the operating payment rate and employee benefits
portion of the external fixed costs payment rate increase for the first day of the second
calendar year after the adoption of any nursing home employment standards included in the
most recent budget and economic forecast completed under section 16A.103; and
deleted text end

deleted text begin (3) if the established nursing home employment standards result in an increase in costs
that exceed the operating payment rate and external fixed costs payment rate increase
included in the most recent budget and economic forecast completed under section 16A.103,
effective on the proposed implementation date of the new nursing home employment
standards, the board must determine if the rates will need to be increased to meet the new
employment standards and the standards must not be effective until an appropriation sufficient
to cover the rate increase and federal approval of the rate increase is obtained.
deleted text end

deleted text begin (e) The budget and economic forecasts completed under section 16A.103 shall not
assume an increase in payment rates determined under chapter deleted text end deleted text begin 256R deleted text end deleted text begin resulting from the new
employment standards until the board certifies the rates will need to be increased and the
legislature appropriates funding for the increase in payment rates.
deleted text end

new text begin (d) No standard, including Minnesota Rules, parts 5200.2060, 5200.2070, 5200.2080,
and 5200.2090, shall take effect unless the cost of the standard to each nursing facility
reimbursed under chapter 256R is estimated and paid for as described in paragraph (e).
new text end

new text begin (e) When determining the cost estimates and the required new appropriation for any
standard approved by the board, the commissioner of human services must:
new text end

new text begin (1) estimate each facility's rate impact in relation to the new standard. The estimate must
be facility-specific and based on information provided to the commissioner in a form and
manner determined by the commissioner about current wage rates at each facility;
new text end

new text begin (2) when determining the total and facility-specific costs to meet the standard, include:
new text end

new text begin (i) the increased costs to wages;
new text end

new text begin (ii) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment
taxes, workers' compensation, pensions, and contributions to employee retirement accounts
cost increases attributable to a standard; and
new text end

new text begin (iii) the indirect costs, as defined by the board, resulting from the implementation of a
standard; and
new text end

new text begin (3) adjust nursing facility rates by the amounts determined in clause (2), items (i) to (iii),
on the first day of the previous month before the implementation date of a standard.
new text end

new text begin (f) Payments to facilities under this section shall be included in the external fixed costs
payment rate under section 256R.25.
new text end

new text begin (g) If the legislature does not approve an appropriation under this section, the new
standard approved by the board does not take effect.
new text end