SF 1624

as introduced - 88th Legislature (2013 - 2014) Posted on 04/22/2013 08:35am

A bill for an act
relating to human services; providing an increase to nursing facility rates;
amending Minnesota Statutes 2012, section 256B.434, subdivision 19; Laws
2008, chapter 363, article 18, section 3, subdivision 6.

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

Section 1.

Minnesota Statutes 2012, section 256B.434, subdivision 19, is amended to
read:

Subd. 19.

Nursing facility rate increases beginning October 1, deleted text begin 2007 deleted text end new text begin 2013 new text end .

(a)
For the rate year beginning October 1, deleted text begin 2007 deleted text end new text begin 2013 new text end , the commissioner shall make available
to each nursing facility reimbursed under this section operating payment rate adjustments
equal to deleted text begin 1.87 deleted text end new text begin five new text end percent of the operating payment rates in effect on September 30, deleted text begin 2007
deleted text end new text begin 2013 new text end .

(b) Seventy-five percent of the money resulting from the rate adjustment under
paragraph (a) must be used for increases in compensation-related costs for employees
directly employed by the nursing facility on or after the effective date of the rate
adjustment, except:

(1) the administrator;

(2) persons employed in the central office of a corporation that has an ownership
interest in the nursing facility or exercises control over the nursing facility; and

(3) persons paid by the nursing facility under a management contract.

(c) Two-thirds of the money available under paragraph (b) must be used for wage
increases for all employees directly employed by the nursing facility on or after the
effective date of the rate adjustment, except those listed in paragraph (b), clauses (1) to
(3). The wage adjustment that employees receive under this paragraph must be paid as
an equal hourly percentage wage increase for all eligible employees. All wage increases
under this paragraph must be effective on the same date. Only costs associated with the
portion of the equal hourly percentage wage increase that goes to all employees shall
qualify under this paragraph. Costs associated with wage increases in excess of the
amount of the equal hourly percentage wage increase provided to all employees shall be
allowed only for meeting the requirements in paragraph (b). This paragraph shall not
apply to employees covered by a collective bargaining agreement.

(d) The commissioner shall allow as compensation-related costs all costs for:

(1) wages and salaries;

(2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers'
compensation;

(3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, and pensions; and

(4) other benefits provided, subject to the approval of the commissioner.

(e) The portion of the rate adjustment under paragraph (a) that is not subject to the
requirements in paragraphs (b) and (c) shall be provided to nursing facilities effective
October 1, deleted text begin 2007 deleted text end new text begin 2013 new text end .

(f) Nursing facilities may apply for the portion of the rate adjustment under paragraph
(a) that is subject to the requirements in paragraphs (b) and (c). The application must be
submitted to the commissioner within six months of the effective date of the rate adjustment,
and the nursing facility must provide additional information required by the commissioner
within nine months of the effective date of the rate adjustment. The commissioner must
respond to all applications within three weeks of receipt. The commissioner may waive
the deadlines in this paragraph under extraordinary circumstances, to be determined at the
sole discretion of the commissioner. The application must contain:

(1) an estimate of the amounts of money that must be used as specified in paragraphs
(b) and (c);

(2) a detailed distribution plan specifying the allowable compensation-related and
wage increases the nursing facility will implement to use the funds available in clause (1);

(3) a description of how the nursing facility will notify eligible employees of
the contents of the approved application, which must provide for giving each eligible
employee a copy of the approved application, excluding the information required in clause
(1), or posting a copy of the approved application, excluding the information required in
clause (1), for a period of at least six weeks in an area of the nursing facility to which all
eligible employees have access; and

(4) instructions for employees who believe they have not received the
compensation-related or wage increases specified in clause (2), as approved by the
commissioner, and which must include a mailing address, e-mail address, and the
telephone number that may be used by the employee to contact the commissioner or the
commissioner's representative.

(g) The commissioner shall ensure that cost increases in distribution plans under
paragraph (f), clause (2), that may be included in approved applications, comply with the
following requirements:

(1) costs to be incurred during the applicable rate year resulting from wage and
salary increases effective after October 1, deleted text begin 2006 deleted text end new text begin 2012 new text end , and prior to the first day of the
nursing facility's payroll period that includes October 1, deleted text begin 2007 deleted text end new text begin 2013 new text end , shall be allowed if
they were not used in the prior year's application;

(2) a portion of the costs resulting from tenure-related wage or salary increases
may be considered to be allowable wage increases, according to formulas that the
commissioner shall provide, where employee retention is above the average statewide
rate of retention of direct care employees;

(3) the annualized amount of increases in costs for the employer's share of health
and dental insurance, life insurance, disability insurance, and workers' compensation shall
be allowable compensation-related increases if they are effective on or after April 1, deleted text begin 2007
deleted text end new text begin 2013 new text end , and prior to April 1, deleted text begin 2008 deleted text end new text begin 2014 new text end ; and

(4) for nursing facilities in which employees are represented by an exclusive
bargaining representative, the commissioner shall approve the application only upon receipt
of a letter of acceptance of the distribution plan, in regard to members of the bargaining
unit, signed by the exclusive bargaining agent and dated after May deleted text begin 25, 2007 deleted text end new text begin 20, 2013 new text end .
Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
this section as having been met in regard to the members of the bargaining unit.

(h) The commissioner shall review applications received under paragraph (f) and
shall provide the portion of the rate adjustment under paragraphs (b) and (c) if the
requirements of this subdivision have been met. The rate adjustment shall be effective
October 1. Notwithstanding paragraph (a), if the approved application distributes less
money than is available, the amount of the rate adjustment shall be reduced so that the
amount of money made available is equal to the amount to be distributed.

Sec. 2.

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

Subd. 6. Continuing Care Grants

(a) Aging and Adult Services Grants

-0-

(337,000)

Base Adjustment. The general fund base is
increased by $71,000 in fiscal year 2010 and
$70,000 in fiscal year 2011.

Grants Reduction. Effective July 1, 2008,
base level funding for nonforecast, general
fund aging and adult services state grants
issued under this paragraph shall be reduced
by 1.8 percent at the allotment level.

Aging and Adult Services Adjustments.
For the fiscal year ending June 30, 2009,
the commissioner may allocate each grant
affected by rate changes under this section in
such a manner across the fiscal year to achieve
the necessary cost savings and minimize
disruption to grantees. To implement this
paragraph, the commissioner may waive the
requirements of Laws 2007, chapter 147,
article 7, section 71, including the employee
compensation-related cost requirements.

Living-At-Home/Block Nurse Program
Funding. Notwithstanding the provisions
of Minnesota Statutes, section 256B.0917,
subdivision 8, for the fiscal year beginning
July 1, 2008, the commissioner of human
services shall transfer $240,000 from the
community service grant program under
Minnesota Statutes, section 256B.0917,
subdivision 13, to the living-at-home/block
nurse program under Minnesota Statutes,
section 256B.0917, subdivision 8, to provide
$20,000 each for 12 living-at-home/block
nurse programs currently operating without
base funding. This is onetime funding.

(b) Alternative Care Grants

-0-

(198,000)

This reduction is onetime.

(c) MA Long-Term Care Facilities Grants

(2,306,000)

3,045,000

deleted text begin Nursing Facility Rate Increase. (a) For
the rate year beginning October 1, 2008,
the commissioner shall make available
to each nursing facility reimbursed under
Minnesota Statutes, section 256B.434,
operating payment rate adjustments equal to
1.00 percent of the operating payment rates
determined by the blending in Minnesota
Statutes, section 256B.441, subdivision 55,
paragraph (a).
deleted text end

deleted text begin (b) Seventy-five percent of the money
resulting from the rate adjustment under
paragraph (a) must be used for increases in
compensation-related costs for employees
directly employed by the nursing facility
on or after the effective date of the rate
adjustment, except:
deleted text end

deleted text begin (1) the administrator;
deleted text end

deleted text begin (2) persons employed in the central office of
a corporation that has an ownership interest
in the nursing facility or exercises control
over the nursing facility; and
deleted text end

deleted text begin (3) persons paid by the nursing facility under
a management contract.
deleted text end

deleted text begin (c) Two-thirds of the money available
under paragraph (b) must be used for wage
increases for all employees directly employed
by the nursing facility on or after the effective
date of the rate adjustment, except those
listed in paragraph (b), clauses (1) to (3).
The wage adjustment that employees receive
under this paragraph must be paid as an
equal hourly percentage wage increase for all
deleted text end deleted text begin eligible employees. All wage increases under
this paragraph must be effective on the same
date. Only costs associated with the portion
of the equal hourly percentage wage increase
that goes to all employees shall qualify under
this paragraph. Costs associated with wage
increases in excess of the amount of the equal
hourly percentage wage increase provided
to all employees shall be allowed only for
meeting the requirements in paragraph (b).
This paragraph shall not apply to employees
covered by a collective bargaining agreement.
deleted text end

deleted text begin (d) The commissioner shall allow as
compensation-related costs all costs for:
deleted text end

deleted text begin (1) wages and salaries;
deleted text end

deleted text begin (2) FICA taxes, Medicare taxes, state and
federal unemployment taxes, and workers'
compensation;
deleted text end

deleted text begin (3) the employer's share of health and
dental insurance, life insurance, disability
insurance, long-term care insurance, uniform
allowance, and pensions; and
deleted text end

deleted text begin (4) other benefits provided, subject to the
approval of the commissioner.
deleted text end

deleted text begin (e) The portion of the rate adjustment under
paragraph (a) that is not subject to the
requirements in paragraphs (b) and (c) shall
be provided to nursing facilities effective
October 1, 2008.
deleted text end

deleted text begin (f) Nursing facilities may apply for the
portion of the rate adjustment under
paragraph (a) that is subject to the
requirements in paragraphs (b) and (c).
The application must be submitted to the
deleted text end deleted text begin commissioner within six months of the
effective date of the rate adjustment, and
the nursing facility must provide additional
information required by the commissioner
within nine months of the effective date
of the rate adjustment. The commissioner
must respond to all applications within
three weeks of receipt. The commissioner
may waive the deadlines in this paragraph
under extraordinary circumstances, to be
determined at the sole discretion of the
commissioner. The application must contain:
deleted text end

deleted text begin (1) an estimate of the amounts of money that
must be used as specified in paragraphs (b)
and (c);
deleted text end

deleted text begin (2) a detailed distribution plan specifying the
allowable compensation-related and wage
increases the nursing facility will implement
to use the funds available in clause (1);
deleted text end

deleted text begin (3) a description of how the nursing facility
will notify eligible employees of the contents
of the approved application, which must
provide for giving each eligible employee a
copy of the approved application, excluding
the information required in clause (1), or
posting a copy of the approved application,
excluding the information required in clause
(1), for a period of at least six weeks in
an area of the nursing facility to which all
eligible employees have access; and
deleted text end

deleted text begin (4) instructions for employees who
believe they have not received the
compensation-related or wage increases
specified in clause (2), as approved by the
commissioner, and which must include a
deleted text end deleted text begin mailing address, e-mail address, and the
telephone number that may be used by the
employee to contact the commissioner or the
commissioner's representative.
deleted text end

deleted text begin (g) The commissioner shall ensure that
cost increases in distribution plans under
paragraph (f), clause (2), that may be
included in approved applications, comply
with the following requirements:
deleted text end

deleted text begin (1) costs to be incurred during the applicable
rate year resulting from wage and salary
increases effective after October 1, 2007, and
prior to the first day of the nursing facility's
payroll period that includes October 1, 2008,
shall be allowed if they were not used in the
prior year's application;
deleted text end

deleted text begin (2) a portion of the costs resulting from
tenure-related wage or salary increases
may be considered to be allowable wage
increases, according to formulas that the
commissioner shall provide, where employee
retention is above the average statewide rate
of retention of direct care employees;
deleted text end

deleted text begin (3) the annualized amount of increases in
costs for the employer's share of health and
dental insurance, life insurance, disability
insurance, and workers' compensation shall
be allowable compensation-related increases
if they are effective on or after April 1, 2008,
and prior to April 1, 2009; and
deleted text end

deleted text begin (4) for nursing facilities in which employees
are represented by an exclusive bargaining
representative, the commissioner shall
approve the application only upon receipt of
a letter of acceptance of the distribution plan,
deleted text end deleted text begin in regard to members of the bargaining unit,
signed by the exclusive bargaining agent and
dated after May 25, 2008. Upon receipt of
the letter of acceptance, the commissioner
shall deem all requirements of this rider as
having been met in regard to the members
of the bargaining unit.
deleted text end

deleted text begin (h) The commissioner shall review
applications received under paragraph (f)
and shall provide the portion of the rate
adjustment under paragraphs (b) and (c)
if the requirements of this rider have been
met. The rate adjustment shall be effective
October 1, 2008. Notwithstanding paragraph
(a), if the approved application distributes
less money than is available, the amount of
the rate adjustment shall be reduced so that
the amount of money made available is equal
to the amount to be distributed.
deleted text end

deleted text begin (i) Of the general fund appropriation,
$2,877,000 in fiscal year 2009 is for the
purposes of paragraphs (a) to (h).
deleted text end

deleted text begin (j) Notwithstanding any contrary provision
of this article, this rider shall not expire.
deleted text end

Nursing Facility Temporary Rate
Adjustment. (a) Of the general fund
appropriation, $2,877,000 for fiscal year
2009 is to make available to nursing
facilities reimbursed under Minnesota
Statutes, section 256B.434, for the rate year
beginning October 1, 2008, a temporary
rate adjustment equal to 1.0 percent of the
operating payment rates determined by the
blending in Minnesota Statutes, section
256B.441, subdivision 55, paragraph (a).
This rate adjustment shall be removed from
the facility's operating payment rate for the
rate year beginning October 1, 2009.

(b) Seventy-five percent of the money
resulting from the rate adjustment under
paragraph (a) must be used to provide
quarterly bonus payments, and to pay
for associated employer costs and other
benefits as specified in Minnesota Statutes,
section 256B.434, subdivision 19, paragraph
(d), clauses (2) to (4), for all employees
directly employed by the nursing facility on
December 31, 2008; March 31, 2009; June
30, 2009; and September 30, 2009, except:

(1) the administrator;

(2) persons employed in the central office of
a corporation that has an ownership interest
in the nursing facility or exercises control
over the nursing facility; and

(3) persons paid by the nursing facility under
a management contract.

(c) Two-thirds of the money available under
paragraph (b) must be used for an equal
hourly percentage wage bonus for all eligible
employees.

(d) Nursing facilities may apply for the
portion of the rate adjustment subject to
paragraphs (b) and (c), and the commissioner
shall review and act on applications,
according to the procedures specified in
Minnesota Statutes, section 256B.434,
subdivision 19. The portion of the rate
adjustment under paragraph (a) that is not
subject to the requirements in paragraphs (b)
and (c) shall be provided to nursing facilities
effective October 1, 2008.

(e) Notwithstanding any contrary provision
in this article, this rider expires December
31, 2009.

(d) MA Long-Term Care Waivers and Home Care Grants

-0-

(10,643,000)

Manage Growth in TBI and CADI Waiver.
During the fiscal years beginning on July
1, 2008, July 1, 2009, and July 1, 2010,
the commissioner shall allocate money
for home and community-based programs
covered under Minnesota Statutes, section
256B.49, to ensure a reduction in state
spending that is equivalent to limiting the
caseload growth of the traumatic brain injury
(TBI) waiver to 200 allocations in each
year of the biennium and the community
alternatives for disabled individuals (CADI)
waiver to 1,500 allocations each year of the
biennium. Priorities for the allocation of
funds must be for individuals anticipated to
be discharged from institutional settings or
who are at imminent risk of a placement in
an institutional setting. Notwithstanding any
contrary section in this article, this provision
expires June 30, 2011.

(e) Mental Health Grants

-0-

(4,823,000)

Base Adjustment. This reduction is onetime.

Funding Usage. Up to 75 percent of the
fiscal year 2010 appropriation for adult
mental health grants may be used to fund
calendar year 2009 allocations for these
programs, with the resulting calendar year
funding pattern continuing into the future.

(f) Chemical Dependency Entitlement Grants

-0-

(2,069,000)

Payments for Substance Abuse Treatment.
For services provided in fiscal year 2009,
county-negotiated rates and provider claims
to the consolidated chemical dependency
fund must not exceed rates charged for
services in excess of those in effect on
May 31, 2008. If statutes authorize a
cost-of-living adjustment during fiscal year
2009, then notwithstanding any law to the
contrary, fiscal year 2009 rates may not
exceed those in effect on May 31, 2008, plus
any authorized cost-of-living adjustments.

Chemical Dependency Treatment Fund
Special Revenue Account. The lesser of
the balance of the consolidated chemical
dependency treatment fund at the close of
the fiscal year 2008, or $2,784,000 must be
transferred and deposited into the general
fund by September 1, 2008. The lesser of
the balance of the consolidated chemical
dependency treatment fund at the close of
the fiscal year 2009, or $2,009,000 must be
transferred and deposited into the general
fund by September 1, 2009.

(g) Chemical Dependency Nonentitlement Grants

-0-

1,967,000

Base Level Adjustment. The general
fund base for chemical dependency
nonentitlement treatment grants must be
reduced by $1,686,000 for fiscal year 2010
and by $1,686,000 for fiscal year 2011.

White Earth treatment facility. $2,000,000
is appropriated from the general fund to
the commissioner of human services for a
grant to the White Earth tribe to purchase
or develop one or more culturally specific
treatment programs or capital facilities, or
both, designed to serve youth from native
cultures. This appropriation is onetime and
is available until spent.

Grants Reduction. Effective July 1, 2008,
base level funding for nonforecast, general
fund chemical dependency nonentitlement
grants issued under this paragraph shall be
reduced by 1.8 percent at the allotment level.

(h) Other Continuing Care Grants

-0-

(4,729,000)

Base Level Adjustment. The general fund
base is increased by $7,283,000 in fiscal year
2010 and $4,921,000 in fiscal year 2011.

Housing Access Grants. Of the general
fund appropriation, $250,000 is appropriated
in fiscal year 2009 for housing access
grants under Minnesota Statutes, section
256B.0658.

Funding Usage. Up to 75 percent of
the fiscal year 2010 appropriation for
semi-independent living services grants and
family support grants may be used to fund
calendar year 2009 allocations for these
programs, with the resulting calendar year
funding pattern continuing into the future.

Grants Reduction. Effective July 1, 2008,
base level funding for nonforecast, general
fund other continuing care grants issued
under this paragraph, except for HIV grants,
shall be reduced by 1.8 percent at the
allotment level. HIV grants shall be reduced
by 1.7 percent at the allotment level effective
July 1, 2009.

Other Continuing Care Grant
Adjustments. For the fiscal year ending June
30, 2009, the commissioner may allocate
each grant affected by rate changes under
this section in such a manner across the fiscal
year to achieve the necessary cost savings
and minimize disruption to grantees. To
implement this paragraph, the commissioner
may waive the requirements of Laws 2007,
chapter 147, article 7, section 71, including
the employee compensation-related cost
requirements.