HF 1792

3rd Engrossment - 89th Legislature (2015 - 2016) Posted on 06/02/2016 12:40pm

A bill for an act
relating to health; making changes to provisions governing receivership of
nursing homes or certified boarding care homes; changing medical cannabis
provisions; amending Minnesota Statutes 2014, sections 144A.15; 152.22,
subdivision 6; 152.25, subdivision 1; 152.27, subdivision 6; 152.29, subdivision
1; 152.34; 256B.0641, subdivision 3; 256B.495, subdivisions 1, 5; Laws 2014,
chapter 311, sections 17, subdivision 2; 20; repealing Minnesota Statutes 2014,
sections 144A.14; 256B.495, subdivisions 1a, 2, 4.

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

Section 1.

Minnesota Statutes 2014, section 144A.15, is amended to read:

144A.15 deleted text begin INVOLUNTARY deleted text end new text begin STATE new text end RECEIVERSHIP.

Subdivision 1.

Petition, notice.

In addition to any other remedy provided by law,
the commissioner of health may petition the district court in Ramsey or Hennepin County
or in the district in which a nursing home or certified boarding care home is located for
an order directing the controlling persons of the nursing home or certified boarding
care home to show cause why the commissioner of health deleted text begin or a designee deleted text end should not be
appointed receiver to operate the facility. The petition to the district court shall contain
proof by affidavit that new text begin one or more of the following exists: new text end

new text begin (1) new text end the commissioner of health has deleted text begin either deleted text end commenced new text begin proceedings to suspend or
revoke the state new text end license deleted text begin suspension or revocation proceedings, suspended or revoked a
license, or decided not to renew the nursing home license, or that deleted text end new text begin , or refuses to renew
a license;
new text end

new text begin (2) new text end violations of section 1919(b), (c), or (d), of the Social Security Act, or the
regulations adopted under that section, or violations of state deleted text begin law deleted text end new text begin laws new text end or rules, create an
emergency deleted text begin . deleted text end new text begin for the residents of the facility;
new text end

new text begin (3) there is a threat of imminent abandonment by the owner or operator;
new text end

new text begin (4) there is a pattern of failure to meet ongoing financial obligations such as failing
to pay for food, pharmaceuticals, personnel, or required insurance;
new text end

new text begin (5) the Centers for Medicare and Medicaid Services (CMS) has appointed a
temporary manager to oversee the operation of the facility; or
new text end

new text begin (6) notice by CMS has been given that the federal Medicare or Medicaid provider
agreement will be terminated, revoked, canceled, or not renewed.
new text end

The order to show cause shall be deleted text begin returnable not less than five days after service is
completed and shall provide for personal service of a copy to deleted text end new text begin personally served to either
new text end the nursing home administrator deleted text begin and deleted text end new text begin or new text end to the deleted text begin persons deleted text end new text begin person new text end designated as deleted text begin agents deleted text end new text begin the
agent new text end by the controlling persons to accept service on their behalf pursuant to section
144A.03, subdivision 2.

Subd. 2.

Appointment of receiver, rental.

If, after hearing, the court finds that
deleted text begin involuntary deleted text end receivership is necessary as a means of protecting the health, safety or welfare
of a resident of deleted text begin a nursing home deleted text end new text begin the facility new text end , the court shall appoint the commissioner
of health, deleted text begin or any other person designated by the commissioner of health, deleted text end as a receiver
to take charge of the facility. new text begin The commissioner may enter into an agreement for a
managing agent to work on the commissioner's behalf in operating the facility during the
receivership. new text end The court shall determine a fair monthly rental for the facility, taking into
account all relevant factors including the condition of the facility. This rental fee shall
be paid by the receiver to the appropriate controlling deleted text begin persons deleted text end new text begin person new text end for each month
that the receivership remains in effect new text begin but shall be reduced by the amount that the costs
of the receivership provided under section 256B.495 are in excess of the facility rate.
The controlling person may agree to waive the fair monthly rent by affidavit to the
court new text end . Notwithstanding any other law to the contrary, no payment made to a controlling
person by any state agency during a period of deleted text begin involuntary deleted text end receivership shall include any
allowance for profit or be based on any formula which includes an allowance for profit.

new text begin Notwithstanding state contracting requirements in chapter 16C, the commissioner
shall establish and maintain a list of qualified licensed nursing home administrators,
or other qualified persons or organizations with experience in delivering skilled health
care services and the operation of long-term care facilities for those interested in being a
managing agent on the commissioner's behalf during a state receivership of a facility. This
list will be a resource for choosing a managing agent and the commissioner may update
the list at any time. A managing agent cannot be someone who: (1) is the owner, licensee,
or administrator of the facility; (2) has a financial interest in the facility at the time of the
receivership or is a related party to the owner, licensee, or administrator; or (3) has owned or
operated any nursing facility or boarding care home that has been ordered into receivership.
new text end

Subd. 2a.

Emergency procedure.

If it appears from the petition filed under
subdivision 1, or from an affidavit or affidavits filed with the petition, or from testimony
of witnesses under oath when the court determines that this is necessary, that there
is probable cause to believe that an emergency exists in a nursing home or certified
boarding care home new text begin requiring the receivership new text end , the court shall issue a temporary order for
appointment of a receiver within deleted text begin five days deleted text end new text begin two days new text end after receipt of the petition. Notice
of the petition shall be served personally on the nursing home administrator deleted text begin and deleted text end new text begin or new text end on
the deleted text begin persons deleted text end new text begin person new text end designated as deleted text begin agents deleted text end new text begin the agent new text end by the controlling deleted text begin persons deleted text end new text begin person new text end to
accept service on their behalf according to section 144A.03, subdivision 2. A hearing on
the petition shall be held within five days' after notice is served unless the administrator
or designated agent consents to a later date. After the hearing, the court may continue,
modify, or terminate the temporary order.

Subd. 3.

Powers and duties of receiver.

new text begin (a) new text end A nursing home receiver appointed
pursuant to this section shall with all reasonable speed, but in any case, within 18
months after the receivership order, new text begin determine whether to close the facility or to make
other provisions intended to keep it open. If facility closure is the determination, the
commissioner shall new text end provide for the orderly transfer of all the nursing home's residents to
other facilities deleted text begin or make other provisions for their continued safety and health care. deleted text end new text begin pursuant
to the relocation procedures required in section 144A.161. During the receivership,
new text end the receiver may correct or eliminate those deficiencies in the facility which seriously
endanger the life, health or safety of the residents unless the correction or elimination of
deficiencies involves major alterations in the physical structure of the nursing home.
The receiver shall, during this period, operate the nursing home in a manner designed to
guarantee the safety and adequate health care of the residents. The receiver shall take no
action which impairs the legal rights of a resident of the nursing home. The receiver
shall have power to make contracts and incur lawful expenses. new text begin The receiver shall use the
building, fixtures, furnishings, and any accompanying consumable goods in the provision
of care and services to the residents during the receivership period. The receiver shall take
action as is reasonably necessary to protect or conserve the tangible assets or property
during receivership. new text end The receiver shall collect incoming payments from all sources and
apply them to the cost incurred in the performance of the receiver's functions. No security
interest in any real or personal property comprising the nursing home or contained within
it, or in any fixture of the facility, shall be impaired or diminished in priority by the receiver.
The receiver shall pay all valid obligations deleted text begin of deleted text end the deleted text begin nursing home deleted text end new text begin facility incurred during the
course of the receivership and may pay obligations incurred prior to the receivership if, in
the judgment of the commissioner, these payments must be made to ensure the health,
safety, or welfare of the residents new text end and shall deduct these expenses deleted text begin , if appropriate, deleted text end from
rental payments owed to any controlling person by virtue of the receivership. new text begin The receiver
has authority to hire, direct, manage, and discharge any employees of the facility including
the administrator, director of nursing, medical director, or manager of the facility.
new text end

new text begin (b) Nothing in this section shall relieve any owner, operator, or controlling person
of a facility placed in receivership of any civil or criminal liability incurred, or any duty
imposed by law, by reason of acts or omissions of the owner, licensee, or controlling
person prior to the order for receivership under this section, nor shall anything contained
in this section be construed to suspend during the receivership any obligation of the owner,
licensee, or controlling person for payment of taxes or other operating and maintenance
expenses of the facility nor of the owner, licensee, or controlling person or any other
person for the payment of mortgages or liens.
new text end

Subd. 4.

Receiver's fee; liability; commissioner assistance.

deleted text begin A nursing home
receiver deleted text end new text begin The commissioner of health, as receiver new text end appointed deleted text begin pursuant to this section shall
be deleted text end new text begin by the court, may hire a managing agent to work on the commissioner's behalf to
operate the facility during the receivership, and that managing agent is new text end entitled to a
reasonable deleted text begin receiver's deleted text end fee deleted text begin as determined by the court deleted text end . The receiver new text begin and its managing agent
new text end shall be liable only in an official capacity for injury to person and property by reason of
the conditions of the nursing home. The receiver new text begin and its managing agent new text end shall not be
personally liable, except for gross negligence and intentional acts. The commissioner of
health shall assist the deleted text begin receiver deleted text end new text begin managing agent new text end in carrying out deleted text begin these deleted text end new text begin its new text end duties.

Subd. 5.

Termination.

deleted text begin An involuntary deleted text end Receivership imposed pursuant to this
section shall terminate 18 months after the date on which it was ordered or at any other
time designated by the court or upon the occurrence of any of the following events:

deleted text begin (a) deleted text end new text begin (1) new text end a determination by the commissioner of health that the nursing home's license
should be renewed or should not be suspended or revoked;

deleted text begin (b) deleted text end new text begin (2) new text end the granting of a new license to the nursing home; or

deleted text begin (c) deleted text end new text begin (3) new text end a determination by the commissioner of health that all of the residents of
the nursing home have been provided alternative health care, either in another facility
or otherwise.

new text begin Subd. 6. new text end

new text begin Postreceivership period; facility remaining open. new text end

new text begin (a) If a facility remains
open after the receivership is concluded, a new operator is only legally responsible under
state law for its actions after the receivership has concluded.
new text end

new text begin (b) The commissioner of human services may adjust, reclassify, or disallow costs
reported for a facility that was in receivership for periods of a reporting year during which
the receivership was in effect and for the prior year.
new text end

Sec. 2.

Minnesota Statutes 2014, section 152.22, subdivision 6, is amended to read:

Subd. 6.

Medical cannabis.

new text begin (a) new text end "Medical cannabis" means any species of the genus
cannabis plant, or any mixture or preparation of them, including whole plant extracts
and resins, and is delivered in the form of:

(1) liquid, including, but not limited to, oil;

(2) pill;

(3) vaporized delivery method with use of liquid or oil but which does not require
the use of dried leaves or plant form; or

(4) any other method, excluding smoking, approved by the commissioner.

new text begin (b) This definition includes any part of the genus cannabis plant prior to being
processed into a form allowed under paragraph (a), that is possessed by a person while
that person is engaged in employment duties necessary to carry out a requirement under
sections 152.22 to 152.37 for a registered manufacturer or a laboratory under contract
with a registered manufacturer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2014, section 152.25, subdivision 1, is amended to read:

Subdivision 1.

Medical cannabis manufacturer registration.

(a) The
commissioner shall register two in-state manufacturers for the production of all medical
cannabis within the state by December 1, 2014, unless the commissioner obtains
an adequate supply of federally sourced medical cannabis by August 1, 2014. The
commissioner shall register new manufacturers or reregister the existing manufacturers
by December 1 deleted text begin of each year deleted text end new text begin every two years new text end , using the factors described in paragraph
(c). The commissioner shall continue to accept applications after December 1, 2014, if
two manufacturers that meet the qualifications set forth in this subdivision do not apply
before December 1, 2014. The commissioner's determination that no manufacturer exists
to fulfill the duties under sections 152.22 to 152.37 is subject to judicial review in Ramsey
County District Court. Data submitted during the application process are private data
on individuals or nonpublic data as defined in section 13.02 until the manufacturer is
registered under this section. Data on a manufacturer that is registered are public data,
unless the data are trade secret or security information under section 13.37.

(b) As a condition for registration, a manufacturer must agree to:

(1) begin supplying medical cannabis to patients by July 1, 2015; and

(2) comply with all requirements under sections 152.22 to 152.37.

(c) The commissioner shall consider the following factors when determining which
manufacturer to register:

(1) the technical expertise of the manufacturer in cultivating medical cannabis and
converting the medical cannabis into an acceptable delivery method under section 152.22,
subdivision 6;

(2) the qualifications of the manufacturer's employees;

(3) the long-term financial stability of the manufacturer;

(4) the ability to provide appropriate security measures on the premises of the
manufacturer;

(5) whether the manufacturer has demonstrated an ability to meet the medical
cannabis production needs required by sections 152.22 to 152.37; and

(6) the manufacturer's projection and ongoing assessment of fees on patients with
a qualifying medical condition.

(d) The commissioner shall require each medical cannabis manufacturer to contract
with an independent laboratory to test medical cannabis produced by the manufacturer.
The commissioner shall approve the laboratory chosen by each manufacturer and require
that the laboratory report testing results to the manufacturer in a manner determined by
the commissioner.

Sec. 4.

Minnesota Statutes 2014, section 152.27, subdivision 6, is amended to read:

Subd. 6.

Patient enrollment.

(a) After receipt of a patient's application new text begin , application
fees, new text end and signed disclosure, the commissioner shall enroll the patient in the registry
program and issue the patient and patient's registered designated caregiver or parent or
legal guardian, if applicable, a registry verification. new text begin The commissioner shall approve or
deny a patient's application for participation in the registry program within 30 days after
the commissioner receives the patient's application and application fee. The commissioner
may approve applications up to 60 days after the receipt of a patient's application and
application fees until January 1, 2016. new text end A patient's enrollment in the registry program
shall only be denied if the patient:

(1) does not have certification from a health care practitioner that the patient has
been diagnosed with a qualifying medical condition;

(2) has not signed and returned the disclosure form required under subdivision 3,
paragraph (c), to the commissioner;

(3) does not provide the information required;

(4) has previously been removed from the registry program for violations of section
152.30 or 152.33; or

(5) provides false information.

(b) The commissioner shall give written notice to a patient of the reason for denying
enrollment in the registry program.

(c) Denial of enrollment into the registry program is considered a final decision of
the commissioner and is subject to judicial review under the Administrative Procedure
Act pursuant to chapter 14.

(d) A patient's enrollment in the registry program may only be revoked new text begin upon the
death of the patient or new text end if a patient violates a requirement under section 152.30 or 152.33.

(e) The commissioner shall develop a registry verification to provide to the patient,
the health care practitioner identified in the patient's application, and to the manufacturer.
The registry verification shall include:

(1) the patient's name and date of birth;

(2) the patient registry number assigned to the patient;

(3) the patient's qualifying medical condition as provided by the patient's health
care practitioner in the certification; and

(4) the name and date of birth of the patient's registered designated caregiver, if any,
or the name of the patient's parent or legal guardian if the parent or legal guardian will
be acting as a caregiver.

Sec. 5.

Minnesota Statutes 2014, section 152.29, subdivision 1, is amended to read:

Subdivision 1.

Manufacturer; requirements.

(a) A manufacturer shall operate four
distribution facilities, which may include the manufacturer's single location for cultivation,
harvesting, manufacturing, packaging, and processing but is not required to include that
location. A manufacturer is required to begin distribution of medical cannabis from at least
one distribution facility by July 1, 2015. All distribution facilities must be operational and
begin distribution of medical cannabis by July 1, 2016. The distribution facilities shall
be located based on geographical need throughout the state to improve patient access. A
manufacturer shall disclose the proposed locations for the distribution facilities to the
commissioner during the registration process. A manufacturer shall operate only one
location where all cultivation, harvesting, manufacturing, packaging, and processing shall
be conducted. Any additional distribution facilities may dispense medical cannabis and
medical cannabis products but may not contain any medical cannabis in a form other than
those forms allowed under section 152.22, subdivision 6, and the manufacturer shall
not conduct any cultivation, harvesting, manufacturing, packaging, or processing at an
additional distribution facility site. Any distribution facility operated by the manufacturer
is subject to all of the requirements applying to the manufacturer under sections 152.22 to
152.37, including, but not limited to, security and distribution requirements.

(b) A medical cannabis manufacturer shall contract with a laboratory new text begin approved
by the commissioner new text end , subject to deleted text begin the commissioner's approval of the laboratory and deleted text end any
additional requirements set by the commissioner, for purposes of testing medical cannabis
manufactured by the medical cannabis manufacturer as to content, contamination, and
consistency to verify the medical cannabis meets the requirements of section 152.22,
subdivision 6. The cost of laboratory testing shall be paid by the manufacturer.

(c) The operating documents of a manufacturer must include:

(1) procedures for the oversight of the manufacturer and procedures to ensure
accurate record keeping; and

(2) procedures for the implementation of appropriate security measures to deter and
prevent the theft of medical cannabis and unauthorized entrance into areas containing
medical cannabis.

(d) A manufacturer shall implement security requirements, including requirements
for protection of each location by a fully operational security alarm system, facility access
controls, perimeter intrusion detection systems, and a personnel identification system.

(e) A manufacturer shall not share office space with, refer patients to a health care
practitioner, or have any financial relationship with a health care practitioner.

(f) A manufacturer shall not permit any person to consume medical cannabis on
the property of the manufacturer.

(g) A manufacturer is subject to reasonable inspection by the commissioner.

(h) For purposes of sections 152.22 to 152.37, a medical cannabis manufacturer is not
subject to the Board of Pharmacy licensure or regulatory requirements under chapter 151.

(i) A medical cannabis manufacturer may not employ any person who is under 21
years of age or who has been convicted of a disqualifying felony offense. An employee of
a medical cannabis manufacturer must submit a completed criminal history records check
consent form, a full set of classifiable fingerprints, and the required fees for submission
to the Bureau of Criminal Apprehension before an employee may begin working with
the manufacturer. The bureau must conduct a Minnesota criminal history records check
and the superintendent is authorized to exchange the fingerprints with the Federal Bureau
of Investigation to obtain the applicant's national criminal history record information.
The bureau shall return the results of the Minnesota and federal criminal history records
checks to the commissioner.

(j) A manufacturer may not operate in any location, whether for distribution or
cultivation, harvesting, manufacturing, packaging, or processing, within 1,000 feet of a
public or private school existing before the date of the manufacturer's registration with
the commissioner.

(k) A manufacturer shall comply with reasonable restrictions set by the commissioner
relating to signage, marketing, display, and advertising of medical cannabis.

Sec. 6.

Minnesota Statutes 2014, section 152.34, is amended to read:

152.34 deleted text begin NURSING deleted text end new text begin HEALTH CARE new text end FACILITIES.

deleted text begin Nursing deleted text end new text begin (a) Health care new text end facilities licensed under chapter 144A, boarding care
homes licensed under section 144.50, deleted text begin and deleted text end assisted living facilities new text begin , and facilities owned,
controlled, managed, or under common control with hospitals licensed under chapter 144,
new text end may adopt reasonable restrictions on the use of medical cannabis by a patient enrolled
in the registry program who resides at new text begin or is actively receiving treatment or care at new text end the
facility. The restrictions may include a provision that the facility will not store or maintain
the patient's supply of medical cannabis, that the facility is not responsible for providing
the medical cannabis for patients, and that medical cannabis be used only in a place
specified by the facility.

new text begin (b) Any employee or agent of a facility listed in this section or a person licensed
under chapter 144E is not subject to violations under this chapter for possession of medical
cannabis while carrying out employment duties, including providing or supervising care to
a registered patient, or distribution of medical cannabis to a registered patient who resides
at or is actively receiving treatment or care at the facility with which the employee or agent
is affiliated. new text end Nothing deleted text begin contained deleted text end in this section shall require the facilities to adopt such
restrictions and no facility shall unreasonably limit a patient's access to or use of medical
cannabis to the extent that use is authorized by the patient under sections 152.22 to 152.37.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 7.

Minnesota Statutes 2014, section 256B.0641, subdivision 3, is amended to read:

Subd. 3.

Facility in receivership.

Subdivision 2 does not apply to the change of
ownership of a facility to a nonrelated organization while the facility to be sold, transferred
or reorganized is in receivership under section deleted text begin 144A.14, deleted text end 144A.15, 245A.12, or 245A.13,
and the commissioner during the receivership has not determined the need to place
residents of the facility into a newly constructed or newly established facility. Nothing
in this subdivision limits the liability of a former owner.

Sec. 8.

Minnesota Statutes 2014, section 256B.495, subdivision 1, is amended to read:

Subdivision 1.

Payment of receivership fees.

new text begin (a) When the commissioner of
health notifies the commissioner of human services that a nursing facility is subject to
the receivership provisions under section 144A.15 and provides a recommendation
in accordance with section 144A.154, new text end the commissioner in consultation with the
commissioner of health may establish a receivership fee that deleted text begin exceeds deleted text end new text begin is added to new text end a nursing
facility payment new text begin . new text end deleted text begin rate when the commissioner of health determines a nursing facility is
subject to the receivership provisions under section 144A.14 or 144A.15. In establishing
the receivership fee, the commissioner must reduce the receiver's requested receivership
fee by amounts that the commissioner determines are included in the nursing facility's
payment rate and that can be used to cover part or all of the receivership fee. Amounts
that can be used to reduce the receivership fee shall be determined by reallocating facility
staff or costs that were formerly paid by the nursing facility before the receivership and
are no longer required to be paid. The amounts may include any efficiency incentive,
allowance, and other amounts not specifically required to be paid for expenditures of the
nursing facility. deleted text end new text begin The commissioner shall reduce the requested amount by any amounts the
commissioner determines are included in the nursing facility's payment rate and that are
not specifically required to be paid for expenditures of the nursing facility.
new text end

deleted text begin If the receivership fee cannot be covered by amounts in the nursing facility's
payment rate, deleted text end A receivership fee shall be set according to paragraphs deleted text begin (a) deleted text end new text begin (b) new text end and deleted text begin (b) deleted text end new text begin (c)
new text end and payment shall be according to paragraphs deleted text begin (c) deleted text end new text begin (d) new text end to deleted text begin (e) deleted text end new text begin (f) new text end .

deleted text begin (a) deleted text end new text begin (b) new text end The receivership fee per diem shall be determined new text begin and revised as necessary
new text end by dividing the deleted text begin annual deleted text end new text begin estimated amount of needed additional funding or actual additional
costs of the new text end receivership deleted text begin fee deleted text end by the deleted text begin nursing facility's deleted text end new text begin estimated new text end resident days deleted text begin from the
most recent cost report for which the commissioner has established a payment rate or the
estimated resident days in the projected receivership fee period deleted text end new text begin for the projected duration
of the receivership new text end .

deleted text begin (b) deleted text end new text begin (c) new text end The receivership fee per diem shall be added to the nursing facility's payment
rate.

deleted text begin (c) deleted text end new text begin (d) new text end Notification of the payment rate increase must meet the requirements of
section 256B.47, subdivision 2.

deleted text begin (d) deleted text end new text begin (e) new text end The payment rate in paragraph deleted text begin (b) deleted text end new text begin (c) new text end for a nursing facility shall be effective
the first day of the deleted text begin month following the receiver's compliance with the notice conditions in
paragraph (c) deleted text end new text begin receivership new text end .

deleted text begin (e) deleted text end new text begin (f) new text end The commissioner may elect to make a lump-sum payment of a portion of the
receivership fee to the receiver or managing agent. In this case, the commissioner and
the receiver or managing agent shall agree to a repayment plan. Regardless of whether
the commissioner makes a lump-sum payment under this paragraph, the provisions of
paragraphs deleted text begin (a) to (d) and subdivision 2 also deleted text end new text begin (b) to (e) new text end apply.

Sec. 9.

Minnesota Statutes 2014, section 256B.495, subdivision 5, is amended to read:

Subd. 5.

Sale or transfer of a nursing facility in receivership after closure.

(a)
Upon the subsequent sale or transfer of a nursing facility in receivership, the commissioner
deleted text begin must deleted text end new text begin shall seek to new text end recover new text begin from the prior licensee new text end any amounts paid through payment
rate adjustments under subdivision deleted text begin 4 which exceed the normal cost of operating the
nursing facility. Examples of costs in excess of the normal cost of operating the nursing
facility include the managing agent's fee, directly identifiable costs of the managing
agent, bonuses paid to employees for their continued employment during the downsizing
to closure of the nursing facility, prereceivership expenditures paid by the receiver,
additional professional services such as accountants, psychologists, and dietitians, and
other similar costs incurred by the receiver to complete receivership deleted text end new text begin 1 new text end . The deleted text begin buyer or
transferee deleted text end new text begin prior licensee new text end shall repay this amount to the commissioner within 60 days
after the commissioner notifies the deleted text begin buyer or transferee deleted text end new text begin prior licensee new text end of the obligation to
repay. deleted text begin The buyer or transferee must also repay the private-pay resident the amount the
private-pay resident paid through payment rate adjustment.
deleted text end

(b) new text begin The commissioner may recover amounts paid through the receivership fee by
means of withholding from the prior licensee payments related to any other medical
assistance provider of the prior licensee in Minnesota. The prior licensee must also repay
private-pay residents the amount the private-pay resident paid for the receivership fee.
new text end

new text begin (c) new text end If a nursing facility with payment rates deleted text begin subject to subdivision 4, paragraph (a),
deleted text end new text begin determined under subdivision 1 new text end is later sold while the nursing facility is in receivership,
the payment rates in effect prior to the receivership shall be the new owner's payment
rates. deleted text begin Those payment rates shall continue to be in effect until the rate year following the
reporting period ending on September 30 for the new owner. The reporting period shall,
whenever possible, be at least five consecutive months. If the reporting period is less than
five months but more than three months, the nursing facility's resident days for the last
two months of the reporting period must be annualized over the reporting period for the
purpose of computing the payment rate for the rate year following the reporting period.
deleted text end new text begin The commissioner shall apply to these rates any rate adjustment provided to other nursing
facilities for which the facility is qualified.
new text end

Sec. 10.

Laws 2014, chapter 311, section 17, subdivision 2, is amended to read:

Subd. 2.

Certified annual audit.

A medical cannabis manufacturer shall submit the
results of an annual certified financial audit to the commissioner no later than May 1 of each
year new text begin for the calendar year beginning January 2015 new text end . The annual audit shall be conducted by
an independent certified public accountant and the costs of the audit are the responsibility
of the medical cannabis manufacturer. Results of the audit shall be provided to the medical
cannabis manufacturer and the commissioner. The commissioner may also require another
audit of the medical cannabis manufacturer by a certified public accountant chosen by the
commissioner with the costs of the audit paid by the medical cannabis manufacturer.

Sec. 11.

Laws 2014, chapter 311, section 20, is amended to read:

Sec. 20. INTRACTABLE PAIN.

The commissioner of health shall consider the addition of intractable pain, as
defined in Minnesota Statutes, section 152.125, subdivision 1, to the list of qualifying
medical conditions under Minnesota Statutes, section 152.22, subdivision 14, prior to the
consideration of any other new qualifying medical conditions. The commissioner shall
report findings on the need for adding intractable pain to the list of qualifying medical
conditions to the task force established under Minnesota Statutes, section 152.36, no
later than deleted text begin July deleted text end new text begin January new text end 1, 2016.

Sec. 12. new text begin REVISOR'S INSTRUCTION.
new text end

new text begin The revisor shall remove cross-references to the repealed sections in section 13 and
make conforming changes necessary to correct punctuation, grammar, or the structure of
the remaining text and preserve its meaning.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 144A.14; and 256B.495, subdivisions 1a, 2,
and 4, new text end new text begin are repealed.
new text end