SF 1705

2nd Engrossment - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to legislative enactments; correcting 
  1.3             miscellaneous noncontroversial oversights, 
  1.4             inconsistencies, ambiguities, unintended results, and 
  1.5             technical errors; amending Minnesota Statutes 1994, 
  1.6             section 144A.071, subdivision 4a, as amended; 
  1.7             256B.0625, subdivision 13, as amended; 256B.0913, 
  1.8             subdivision 15, as added; 256B.0915, subdivision 3a, 
  1.9             as added; 256D.44, subdivision 3, as amended; and 
  1.10            323.02, subdivision 9, as amended; Laws 1995, chapter 
  1.11            68, section 14; Senate File 106, sections 16 and 142; 
  1.12            Senate File 1110, articles 2, section 40; 5, section 
  1.13            41; 6, sections 123 and 125; 7, section 8; and 10, 
  1.14            section 26; House File 1856, articles 2, section 22; 
  1.15            and 4, section 4, subdivision 5; and House File 1864, 
  1.16            article 6, section 2, subdivision 1. 
  1.17  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.18     Section 1.  Minnesota Statutes 1994, section 323.02, 
  1.19  subdivision 9, as added by Laws 1995, chapter 128, section 11, 
  1.20  is amended to read: 
  1.21     Subd. 9.  [FOREIGN LIMITED LIABILITY PARTNERSHIP.] "Foreign 
  1.22  limited liability partnership" means a general partnership 
  1.23  organized under laws other than the laws of this state with 
  1.24  status as a limited liability partnership in its home 
  1.25  jurisdiction. 
  1.26     Sec. 2.  [CORRECTION 1.] Minnesota Statutes 1994, section 
  1.27  144A.071, subdivision 4a, as amended by 1995 S.F. No. 1110, 
  1.28  article 7, section 11, if enacted, is amended to read: 
  1.29     Sec. 11.  Minnesota Statutes 1994, section 144A.071, 
  1.30  subdivision 4a, is amended to read: 
  1.31     Subd. 4a.  [EXCEPTIONS FOR REPLACEMENT BEDS.] It is in the 
  2.1   best interest of the state to ensure that nursing homes and 
  2.2   boarding care homes continue to meet the physical plant 
  2.3   licensing and certification requirements by permitting certain 
  2.4   construction projects.  Facilities should be maintained in 
  2.5   condition to satisfy the physical and emotional needs of 
  2.6   residents while allowing the state to maintain control over 
  2.7   nursing home expenditure growth. 
  2.8      The commissioner of health in coordination with the 
  2.9   commissioner of human services, may approve the renovation, 
  2.10  replacement, upgrading, or relocation of a nursing home or 
  2.11  boarding care home, under the following conditions: 
  2.12     (a) to license or certify beds in a new facility 
  2.13  constructed to replace a facility or to make repairs in an 
  2.14  existing facility that was destroyed or damaged after June 30, 
  2.15  1987, by fire, lightning, or other hazard provided:  
  2.16     (i) destruction was not caused by the intentional act of or 
  2.17  at the direction of a controlling person of the facility; 
  2.18     (ii) at the time the facility was destroyed or damaged the 
  2.19  controlling persons of the facility maintained insurance 
  2.20  coverage for the type of hazard that occurred in an amount that 
  2.21  a reasonable person would conclude was adequate; 
  2.22     (iii) the net proceeds from an insurance settlement for the 
  2.23  damages caused by the hazard are applied to the cost of the new 
  2.24  facility or repairs; 
  2.25     (iv) the new facility is constructed on the same site as 
  2.26  the destroyed facility or on another site subject to the 
  2.27  restrictions in section 144A.073, subdivision 5; 
  2.28     (v) the number of licensed and certified beds in the new 
  2.29  facility does not exceed the number of licensed and certified 
  2.30  beds in the destroyed facility; and 
  2.31     (vi) the commissioner determines that the replacement beds 
  2.32  are needed to prevent an inadequate supply of beds. 
  2.33  Project construction costs incurred for repairs authorized under 
  2.34  this clause shall not be considered in the dollar threshold 
  2.35  amount defined in subdivision 2; 
  2.36     (b) to license or certify beds that are moved from one 
  3.1   location to another within a nursing home facility, provided the 
  3.2   total costs of remodeling performed in conjunction with the 
  3.3   relocation of beds does not exceed 25 percent of the appraised 
  3.4   value of the facility or $500,000, whichever is less; 
  3.5      (c) to license or certify beds in a project recommended for 
  3.6   approval under section 144A.073; 
  3.7      (d) to license or certify beds that are moved from an 
  3.8   existing state nursing home to a different state facility, 
  3.9   provided there is no net increase in the number of state nursing 
  3.10  home beds; 
  3.11     (e) to certify and license as nursing home beds boarding 
  3.12  care beds in a certified boarding care facility if the beds meet 
  3.13  the standards for nursing home licensure, or in a facility that 
  3.14  was granted an exception to the moratorium under section 
  3.15  144A.073, and if the cost of any remodeling of the facility does 
  3.16  not exceed 25 percent of the appraised value of the facility or 
  3.17  $500,000, whichever is less.  If boarding care beds are licensed 
  3.18  as nursing home beds, the number of boarding care beds in the 
  3.19  facility must not increase beyond the number remaining at the 
  3.20  time of the upgrade in licensure.  The provisions contained in 
  3.21  section 144A.073 regarding the upgrading of the facilities do 
  3.22  not apply to facilities that satisfy these requirements; 
  3.23     (f) to license and certify up to 40 beds transferred from 
  3.24  an existing facility owned and operated by the Amherst H. Wilder 
  3.25  Foundation in the city of St. Paul to a new unit at the same 
  3.26  location as the existing facility that will serve persons with 
  3.27  Alzheimer's disease and other related disorders.  The transfer 
  3.28  of beds may occur gradually or in stages, provided the total 
  3.29  number of beds transferred does not exceed 40.  At the time of 
  3.30  licensure and certification of a bed or beds in the new unit, 
  3.31  the commissioner of health shall delicense and decertify the 
  3.32  same number of beds in the existing facility.  As a condition of 
  3.33  receiving a license or certification under this clause, the 
  3.34  facility must make a written commitment to the commissioner of 
  3.35  human services that it will not seek to receive an increase in 
  3.36  its property-related payment rate as a result of the transfers 
  4.1   allowed under this paragraph; 
  4.2      (g) to license and certify nursing home beds to replace 
  4.3   currently licensed and certified boarding care beds which may be 
  4.4   located either in a remodeled or renovated boarding care or 
  4.5   nursing home facility or in a remodeled, renovated, newly 
  4.6   constructed, or replacement nursing home facility within the 
  4.7   identifiable complex of health care facilities in which the 
  4.8   currently licensed boarding care beds are presently located, 
  4.9   provided that the number of boarding care beds in the facility 
  4.10  or complex are decreased by the number to be licensed as nursing 
  4.11  home beds and further provided that, if the total costs of new 
  4.12  construction, replacement, remodeling, or renovation exceed ten 
  4.13  percent of the appraised value of the facility or $200,000, 
  4.14  whichever is less, the facility makes a written commitment to 
  4.15  the commissioner of human services that it will not seek to 
  4.16  receive an increase in its property-related payment rate by 
  4.17  reason of the new construction, replacement, remodeling, or 
  4.18  renovation.  The provisions contained in section 144A.073 
  4.19  regarding the upgrading of facilities do not apply to facilities 
  4.20  that satisfy these requirements; 
  4.21     (h) to license as a nursing home and certify as a nursing 
  4.22  facility a facility that is licensed as a boarding care facility 
  4.23  but not certified under the medical assistance program, but only 
  4.24  if the commissioner of human services certifies to the 
  4.25  commissioner of health that licensing the facility as a nursing 
  4.26  home and certifying the facility as a nursing facility will 
  4.27  result in a net annual savings to the state general fund of 
  4.28  $200,000 or more; 
  4.29     (i) to certify, after September 30, 1992, and prior to July 
  4.30  1, 1993, existing nursing home beds in a facility that was 
  4.31  licensed and in operation prior to January 1, 1992; 
  4.32     (j) to license and certify new nursing home beds to replace 
  4.33  beds in a facility condemned as part of an economic 
  4.34  redevelopment plan in a city of the first class, provided the 
  4.35  new facility is located within one mile of the site of the old 
  4.36  facility.  Operating and property costs for the new facility 
  5.1   must be determined and allowed under existing reimbursement 
  5.2   rules; 
  5.3      (k) to license and certify up to 20 new nursing home beds 
  5.4   in a community-operated hospital and attached convalescent and 
  5.5   nursing care facility with 40 beds on April 21, 1991, that 
  5.6   suspended operation of the hospital in April 1986.  The 
  5.7   commissioner of human services shall provide the facility with 
  5.8   the same per diem property-related payment rate for each 
  5.9   additional licensed and certified bed as it will receive for its 
  5.10  existing 40 beds; 
  5.11     (l) to license or certify beds in renovation, replacement, 
  5.12  or upgrading projects as defined in section 144A.073, 
  5.13  subdivision 1, so long as the cumulative total costs of the 
  5.14  facility's remodeling projects do not exceed 25 percent of the 
  5.15  appraised value of the facility or $500,000, whichever is less; 
  5.16     (m) to license and certify beds that are moved from one 
  5.17  location to another for the purposes of converting up to five 
  5.18  four-bed wards to single or double occupancy rooms in a nursing 
  5.19  home that, as of January 1, 1993, was county-owned and had a 
  5.20  licensed capacity of 115 beds; 
  5.21     (n) to allow a facility that on April 16, 1993, was a 
  5.22  106-bed licensed and certified nursing facility located in 
  5.23  Minneapolis to layaway all of its licensed and certified nursing 
  5.24  home beds.  These beds may be relicensed and recertified in a 
  5.25  newly-constructed teaching nursing home facility affiliated with 
  5.26  a teaching hospital upon approval by the legislature.  The 
  5.27  proposal must be developed in consultation with the interagency 
  5.28  committee on long-term care planning.  The beds on layaway 
  5.29  status shall have the same status as voluntarily delicensed and 
  5.30  decertified beds, except that beds on layaway status remain 
  5.31  subject to the surcharge in section 256.9657.  This layaway 
  5.32  provision expires July 1, 1997; 
  5.33     (o) to allow a project which will be completed in 
  5.34  conjunction with an approved moratorium exception project for a 
  5.35  nursing home in southern Cass county and which is directly 
  5.36  related to that portion of the facility that must be repaired, 
  6.1   renovated, or replaced, to correct an emergency plumbing problem 
  6.2   for which a state correction order has been issued and which 
  6.3   must be corrected by August 31, 1993; 
  6.4      (p) to allow a facility that on April 16, 1993, was a 
  6.5   368-bed licensed and certified nursing facility located in 
  6.6   Minneapolis to layaway, upon 30 days prior written notice to the 
  6.7   commissioner, up to 30 of the facility's licensed and certified 
  6.8   beds by converting three-bed wards to single or double 
  6.9   occupancy.  Beds on layaway status shall have the same status as 
  6.10  voluntarily delicensed and decertified beds except that beds on 
  6.11  layaway status remain subject to the surcharge in section 
  6.12  256.9657, remain subject to the license application and renewal 
  6.13  fees under section 144A.07 and shall be subject to a $100 per 
  6.14  bed reactivation fee.  In addition, at any time within three 
  6.15  years of the effective date of the layaway, the beds on layaway 
  6.16  status may be: 
  6.17     (1) relicensed and recertified upon relocation and 
  6.18  reactivation of some or all of the beds to an existing licensed 
  6.19  and certified facility or facilities located in Pine River, 
  6.20  Brainerd, or International Falls; provided that the total 
  6.21  project construction costs related to the relocation of beds 
  6.22  from layaway status for any facility receiving relocated beds 
  6.23  may not exceed the dollar threshold provided in subdivision 2 
  6.24  unless the construction project has been approved through the 
  6.25  moratorium exception process under section 144A.073; 
  6.26     (2) relicensed and recertified, upon reactivation of some 
  6.27  or all of the beds within the facility which placed the beds in 
  6.28  layaway status, if the commissioner has determined a need for 
  6.29  the reactivation of the beds on layaway status. 
  6.30     The property-related payment rate of a facility placing 
  6.31  beds on layaway status must be adjusted by the incremental 
  6.32  change in its rental per diem after recalculating the rental per 
  6.33  diem as provided in section 256B.431, subdivision 3a, paragraph 
  6.34  (d).  The property-related payment rate for a facility 
  6.35  relicensing and recertifying beds from layaway status must be 
  6.36  adjusted by the incremental change in its rental per diem after 
  7.1   recalculating its rental per diem using the number of beds after 
  7.2   the relicensing to establish the facility's capacity day 
  7.3   divisor, which shall be effective the first day of the month 
  7.4   following the month in which the relicensing and recertification 
  7.5   became effective.  Any beds remaining on layaway status more 
  7.6   than three years after the date the layaway status became 
  7.7   effective must be removed from layaway status and immediately 
  7.8   delicensed and decertified; 
  7.9      (q) to license and certify beds in a renovation and 
  7.10  remodeling project to convert 13 three-bed wards into 13 two-bed 
  7.11  rooms and 13 single-bed rooms, expand space, and add 
  7.12  improvements in a nursing home that, as of January 1, 1994, met 
  7.13  the following conditions:  the nursing home was located in 
  7.14  Ramsey county; was not owned by a hospital corporation; had a 
  7.15  licensed capacity of 64 beds; and had been ranked among the top 
  7.16  15 applicants by the 1993 moratorium exceptions advisory review 
  7.17  panel.  The total project construction cost estimate for this 
  7.18  project must not exceed the cost estimate submitted in 
  7.19  connection with the 1993 moratorium exception process; 
  7.20     (r) to license and certify beds in a renovation and 
  7.21  remodeling project to convert 12 four-bed wards into 24 two-bed 
  7.22  rooms, expand space, and add improvements in a nursing home 
  7.23  that, as of January 1, 1994, met the following conditions:  the 
  7.24  nursing home was located in Ramsey county; had a licensed 
  7.25  capacity of 154 beds; and had been ranked among the top 15 
  7.26  applicants by the 1993 moratorium exceptions advisory review 
  7.27  panel.  The total project construction cost estimate for this 
  7.28  project must not exceed the cost estimate submitted in 
  7.29  connection with the 1993 moratorium exception process; 
  7.30     (s) to license and certify up to 117 beds that are 
  7.31  relocated from a licensed and certified 138-bed nursing facility 
  7.32  located in St. Paul to a hospital with 130 licensed hospital 
  7.33  beds located in South St. Paul, provided that the nursing 
  7.34  facility and hospital are owned by the same or a related 
  7.35  organization and that prior to the date the relocation is 
  7.36  completed the hospital ceases operation of its inpatient 
  8.1   hospital services at that hospital.  After relocation, the 
  8.2   nursing facility's status under section 256B.431, subdivision 2 
  8.3   2j, shall be the same as it was prior to relocation.  The 
  8.4   nursing facility's property-related payment rate resulting from 
  8.5   the project authorized in this paragraph shall become effective 
  8.6   no earlier than April 1, 1996.  For purposes of calculating the 
  8.7   incremental change in the facility's rental per diem resulting 
  8.8   from this project, the allowable appraised value of the nursing 
  8.9   facility portion of the existing health care facility physical 
  8.10  plant prior to the renovation and relocation may not exceed 
  8.11  $2,490,000; 
  8.12     (t) to license and certify two beds in a facility to 
  8.13  replace beds that were voluntarily delicensed and decertified on 
  8.14  June 28, 1991; 
  8.15     (u) to allow 16 licensed and certified beds located on July 
  8.16  1, 1994, in a 142-bed nursing home and 21-bed boarding care home 
  8.17  facility in Minneapolis, notwithstanding the licensure and 
  8.18  certification after July 1, 1995, of the Minneapolis facility as 
  8.19  a 147-bed nursing home facility after completion of a 
  8.20  construction project approved in 1993 under section 144A.073, to 
  8.21  be laid away upon 30 days' prior written notice to the 
  8.22  commissioner.  Beds on layaway status shall have the same status 
  8.23  as voluntarily delicensed or decertified beds except that they 
  8.24  shall remain subject to the surcharge in section 256.9657.  The 
  8.25  16 beds on layaway status may be relicensed as nursing home beds 
  8.26  and recertified at any time within five years of the effective 
  8.27  date of the layaway upon relocation of some or all of the beds 
  8.28  to a licensed and certified facility located in Watertown, 
  8.29  provided that the total project construction costs related to 
  8.30  the relocation of beds from layaway status for the Watertown 
  8.31  facility may not exceed the dollar threshold provided in 
  8.32  subdivision 2 unless the construction project has been approved 
  8.33  through the moratorium exception process under section 144A.073. 
  8.34     The property-related payment rate of the facility placing 
  8.35  beds on layaway status must be adjusted by the incremental 
  8.36  change in its rental per diem after recalculating the rental per 
  9.1   diem as provided in section 256B.431, subdivision 3a, paragraph 
  9.2   (d).  The property-related payment rate for the facility 
  9.3   relicensing and recertifying beds from layaway status must be 
  9.4   adjusted by the incremental change in its rental per diem after 
  9.5   recalculating its rental per diem using the number of beds after 
  9.6   the relicensing to establish the facility's capacity day 
  9.7   divisor, which shall be effective the first day of the month 
  9.8   following the month in which the relicensing and recertification 
  9.9   became effective.  Any beds remaining on layaway status more 
  9.10  than five years after the date the layaway status became 
  9.11  effective must be removed from layaway status and immediately 
  9.12  delicensed and decertified; or 
  9.13     (v) to license and certify beds that are moved within an 
  9.14  existing area of a facility or to a newly-constructed addition 
  9.15  which is built for the purpose of eliminating three- and 
  9.16  four-bed rooms and adding space for dining, lounge areas, 
  9.17  bathing rooms, and ancillary service areas in a nursing home 
  9.18  that, as of January 1, 1995, was located in Fridley and had a 
  9.19  licensed capacity of 129 beds. 
  9.20     Sec. 3.  [CORRECTION 2.] 1995 S.F. No. 1110, article 2, 
  9.21  section 40, if enacted, is amended to read: 
  9.22     Sec. 40.  [EFFECTIVE DATES.] 
  9.23     Subdivision 1.  Sections 5 (245A.03, subdivision 2a), 6 
  9.24  (245A.035, subdivisions 1 to 6), 7 to 10 (245A.04, subdivisions 
  9.25  3, 3b, 7, and 9), 11 to 13 (245A.06, subdivisions 2, 4, and 7), 
  9.26  14 (245A.07, subdivision 3), and 20 (245A.14, subdivision 6), 
  9.27  are effective the day following final enactment. 
  9.28     Subd. 2.  Under Minnesota Statutes, section 645.023, 
  9.29  subdivision 1, clause (a), section 32 37, takes effect, without 
  9.30  local approval, the day following final enactment. 
  9.31     Sec. 4.  [CORRECTION 3.] Minnesota Statutes 1994, section 
  9.32  256D.44, subdivision 3, as amended by S.F. No. 1110, if enacted, 
  9.33  is amended to read: 
  9.34     Subd. 3.  [STANDARD OF ASSISTANCE FOR BASIC NEEDS.] Except 
  9.35  as provided in subdivision 4, the monthly state standard of 
  9.36  assistance for basic needs is as follows:  
 10.1      (a) If an applicant or recipient does not reside with 
 10.2   another person or persons, the state standard of assistance is 
 10.3   $519.  
 10.4      (b) If an applicant married couple or recipient married 
 10.5   couple who live together, does not reside with others, the state 
 10.6   standard of assistance is $778. 
 10.7      (c) If an applicant or recipient resides with another 
 10.8   person or persons, the state standard of assistance is $395. 
 10.9      (d) If an applicant married couple or recipient married 
 10.10  couple who live together, resides with others, the state 
 10.11  standard of assistance is $519. 
 10.12     (e) Married couples, living together who do not reside with 
 10.13  others and were receiving MSA prior to January 1, 1994, and 
 10.14  whose eligibility has not been terminated a full calendar month, 
 10.15  the state standard of assistance is $793. 
 10.16     (f) Married couples living together who reside with others 
 10.17  and were receiving MSA prior to January 1, 1994, and whose 
 10.18  eligibility has not been terminated a full calendar month, the 
 10.19  state standard of assistance is $682 $782. 
 10.20     (g) For an individual who is a resident of a nursing home, 
 10.21  a regional treatment center or a group residential housing 
 10.22  facility, the state standard of assistance is the personal needs 
 10.23  allowance for medical assistance recipients under section 
 10.24  256B.35. 
 10.25     Sec. 5.  [CORRECTION 4.] 1995 S.F. No. 1110, article 5, 
 10.26  section 41, if enacted, is amended to read: 
 10.27     Sec. 41.  [EFFECTIVE DATES.] 
 10.28     Section 31 (256I.04, subdivision 3), the amendment to 
 10.29  section 256I.04, subdivision 3, paragraph (a), clause (5), is 
 10.30  effective July 1, 1996. 
 10.31     Sec. 6.  [CORRECTION 5.] 1995 S.F. No. 1110, article 6, 
 10.32  section 125, if enacted, is amended to read: 
 10.33     Sec. 125.  [EFFECTIVE DATE.] 
 10.34     Subdivision 1.  Sections 79 and 80, the amendments to 
 10.35  section 256B.15, subdivisions 1a and 2, relating only to the age 
 10.36  of a medical assistance recipient for purposes of estate claims, 
 11.1   are effective for persons who are between the ages of 55 and 64 
 11.2   on or after July 1, 1995, for the total amount of medical 
 11.3   assistance rendered on or after July 1, 1995. 
 11.4      Subd. 2.  Sections 34 to 37, section 256B.0595, 
 11.5   subdivisions 1, 2, 3, and 4, are effective retroactive to August 
 11.6   11, 1993, except that portion amending subdivision 2, paragraph 
 11.7   (c), is effective retroactive to transfers of income or assets 
 11.8   made on or after September 1, 1994. 
 11.9      Subd. 3.  Sections 28, 108, and 109, sections 256B.056, 
 11.10  subdivision 3b, and 501B.89, subdivisions 1 and 3, are effective 
 11.11  retroactive to August 11, 1993. 
 11.12     Subd. 4.  Sections 14, 49, 84, and 86, sections 256.9657, 
 11.13  subdivision 3, 256B.0625, subdivision 38, 256B.19, subdivision 
 11.14  1d, and 256B.431, subdivision 23, are effective the day 
 11.15  following final enactment. 
 11.16     Subd. 5.  Section 30, the amendment to section 256B.0575, 
 11.17  paragraph (a), clause (5), is effective retroactive to January 
 11.18  1, 1994. 
 11.19     Subd. 6.  Section 91, the amendment to section 256B.69, 
 11.20  subdivision 4, requiring children eligible for medical 
 11.21  assistance under section 256B.055, subdivision 12, to 
 11.22  participate in managed care, is effective July 1, 1996. 
 11.23     Subd. 7.  Section 96, the amendment to section 256B.69, 
 11.24  subdivision 6, expanding services under managed care to include 
 11.25  home care services and personal care assistant services for 
 11.26  certain recipients, is effective July 1, 1996. 
 11.27     Subd. 8.  Section 48, section 256B.0625, subdivision 19a, 
 11.28  is effective July 1, 1996. 
 11.29     Subd. 9.  Section 52, section 256B.0627, subdivision 1, 
 11.30  paragraph (c), is effective January 1, 1996; paragraph (d) is 
 11.31  effective January 1, 1996, except the deletions relating to 
 11.32  responsible party are effective July 1, 1996; and the stricken 
 11.33  paragraph (d), the deletion of the definition of responsible 
 11.34  party, is effective July 1, 1996. 
 11.35     Subd. 10.  Section 53, section 256B.0627, subdivision 2, 
 11.36  clause (6), is effective January 1, 1996. 
 12.1      Subd. 11.  Section 54, section 256B.0627, subdivision 4, 
 12.2   paragraph (a), is effective July 1, 1996; and paragraph (b), 
 12.3   clauses (2) and (3), are effective January 1, 1996; and the 
 12.4   stricken language in clause (1) and the stricken language in the 
 12.5   stricken clause (4), are effective July 1, 1996. 
 12.6      Subd. 12.  Section 55, section 256B.0627, subdivision 5, 
 12.7   paragraph (a), clause (2), is effective January 1, 1996; 
 12.8   paragraph (d) is effective January 1, 1996; paragraph (e), 
 12.9   clause (2)(i), the new language relating to the registered nurse 
 12.10  supervision is effective January 1, 1996; paragraph (e), clause 
 12.11  (2)(i)A, B, C, D, and E, are effective July 1, 1996; paragraph 
 12.12  (e), clause (2)(ii), is effective July 1, 1996; paragraph (e), 
 12.13  clause (2)(iii), the new language relating to county public 
 12.14  health nurse, is effective January 1, 1996, and the stricken 
 12.15  language relating to the seizure activity provision, is 
 12.16  effective July 1, 1996; paragraph (e), clause (2), the language 
 12.17  striking items (v) to (viii), is effective July 1, 1996; 
 12.18  paragraph (h), is effective January 1, 1996; and paragraph (i), 
 12.19  clause (2), the stricken language relating to the foster care 
 12.20  license holder, and the language in the stricken clause (3) 
 12.21  relating to the responsible party, is effective July 1, 1996. 
 12.22     Sec. 7.  [CORRECTION 6.] 1995 S.F. No. 1110, article 10, 
 12.23  section 26, if enacted, is amended to read: 
 12.24     Sec. 26.  [EFFECTIVE DATE.] 
 12.25     Sections 1 to 6 4 and 14 to 19 (62A.045; 62A.046; 62A.048; 
 12.26  62A.27; 256.74, subdivision 6; 256.76, subdivision 1; 257.69, 
 12.27  subdivision 2; 518.171, subdivisions 1, 3, 4, 5, and 7) are 
 12.28  effective retroactive to August 10, 1993. 
 12.29     Sec. 8.  [CORRECTION 7.] Minnesota Statutes 1994, section 
 12.30  256B.0913, subdivision 15, as added by S.F. No. 1110, if 
 12.31  enacted, is amended to read: 
 12.32     Subd. 15a.  [REIMBURSEMENT RATE; ANOKA COUNTY.] 
 12.33  Notwithstanding subdivision 14, paragraph (e), or any other law 
 12.34  to the contrary, for services rendered on or after January 1, 
 12.35  1996, Anoka county may pay vendors, and the commissioner shall 
 12.36  reimburse the county, for actual costs up to a limit which is 
 13.1   the maximum rate in effect on December 31, 1995, plus half the 
 13.2   difference between that rate and the maximum allowed state rate 
 13.3   for home health aide and homemaker services. 
 13.4      Sec. 9.  [CORRECTION 8.] Minnesota Statutes 1994, section 
 13.5   256B.0915, subdivision 3a, as added by 1995 S.F. No. 1110, if 
 13.6   enacted, is amended to read: 
 13.7      Subd. 3a.  [REIMBURSEMENT RATE; ANOKA COUNTY.] 
 13.8   Notwithstanding subdivision 3, paragraph (h), or any other law 
 13.9   to the contrary, for services rendered on or after January 1, 
 13.10  1996, Anoka county may pay vendors, and the commissioner shall 
 13.11  reimburse the county, for actual costs up to a limit which is 
 13.12  the maximum rate in effect on December 31, 1995, plus half the 
 13.13  difference between that rate and the maximum allowed state rate 
 13.14  for home health aide and homemaker services. 
 13.15     Sec. 10.  [CORRECTION 11.] Minnesota Statutes 1994, section 
 13.16  256B.0625, subdivision 13, as amended by 1995 S.F. No. 1110, if 
 13.17  enacted, is amended to read: 
 13.18     Subd. 13.  [DRUGS.] (a) Medical assistance covers drugs if 
 13.19  prescribed by a licensed practitioner and dispensed by a 
 13.20  licensed pharmacist, by a physician enrolled in the medical 
 13.21  assistance program as a dispensing physician, or by a physician 
 13.22  or a nurse practitioner employed by or under contract with a 
 13.23  community health board as defined in section 145A.02, 
 13.24  subdivision 5, for the purposes of communicable disease 
 13.25  control.  The commissioner, after receiving recommendations from 
 13.26  professional medical associations and professional pharmacist 
 13.27  associations, shall designate a formulary committee to advise 
 13.28  the commissioner on the names of drugs for which payment is 
 13.29  made, recommend a system for reimbursing providers on a set fee 
 13.30  or charge basis rather than the present system, and develop 
 13.31  methods encouraging use of generic drugs when they are less 
 13.32  expensive and equally effective as trademark drugs.  The 
 13.33  formulary committee shall consist of nine members, four of whom 
 13.34  shall be physicians who are not employed by the department of 
 13.35  human services, and a majority of whose practice is for persons 
 13.36  paying privately or through health insurance, three of whom 
 14.1   shall be pharmacists who are not employed by the department of 
 14.2   human services, and a majority of whose practice is for persons 
 14.3   paying privately or through health insurance, a consumer 
 14.4   representative, and a nursing home representative.  Committee 
 14.5   members shall serve three-year terms and shall serve without 
 14.6   compensation.  Members may be reappointed once.  
 14.7      (b) The commissioner shall establish a drug formulary.  Its 
 14.8   establishment and publication shall not be subject to the 
 14.9   requirements of the administrative procedure act, but the 
 14.10  formulary committee shall review and comment on the formulary 
 14.11  contents.  The formulary committee shall review and recommend 
 14.12  drugs which require prior authorization.  The formulary 
 14.13  committee may recommend drugs for prior authorization directly 
 14.14  to the commissioner, as long as opportunity for public input is 
 14.15  provided.  Prior authorization may be requested by the 
 14.16  commissioner based on medical and clinical criteria before 
 14.17  certain drugs are eligible for payment.  Before a drug may be 
 14.18  considered for prior authorization at the request of the 
 14.19  commissioner:  
 14.20     (1) the drug formulary committee must develop criteria to 
 14.21  be used for identifying drugs; the development of these criteria 
 14.22  is not subject to the requirements of chapter 14, but the 
 14.23  formulary committee shall provide opportunity for public input 
 14.24  in developing criteria; 
 14.25     (2) the drug formulary committee must hold a public forum 
 14.26  and receive public comment for an additional 15 days; and 
 14.27     (3) the commissioner must provide information to the 
 14.28  formulary committee on the impact that placing the drug on prior 
 14.29  authorization will have on the quality of patient care and 
 14.30  information regarding whether the drug is subject to clinical 
 14.31  abuse or misuse.  Prior authorization may be required by the 
 14.32  commissioner before certain formulary drugs are eligible for 
 14.33  payment.  The formulary shall not include:  
 14.34     (i) drugs or products for which there is no federal 
 14.35  funding; 
 14.36     (ii) over-the-counter drugs, except for antacids, 
 15.1   acetaminophen, family planning products, aspirin, insulin, 
 15.2   products for the treatment of lice, vitamins for adults with 
 15.3   documented vitamin deficiencies, and vitamins for children under 
 15.4   the age of seven and pregnant or nursing women; 
 15.5      (iii) any other over-the-counter drug identified by the 
 15.6   commissioner, in consultation with the drug formulary committee, 
 15.7   as necessary, appropriate, and cost-effective for the treatment 
 15.8   of certain specified chronic diseases, conditions or disorders, 
 15.9   and this determination shall not be subject to the requirements 
 15.10  of chapter 14; 
 15.11     (iv) anorectics; and 
 15.12     (v) drugs for which medical value has not been established. 
 15.13     The commissioner shall publish conditions for prohibiting 
 15.14  payment for specific drugs after considering the formulary 
 15.15  committee's recommendations.  
 15.16     (c) The basis for determining the amount of payment shall 
 15.17  be the lower of the actual acquisition costs of the drugs plus a 
 15.18  fixed dispensing fee; the maximum allowable cost set by the 
 15.19  federal government or by the commissioner plus the fixed 
 15.20  dispensing fee; or the usual and customary price charged to the 
 15.21  public.  The pharmacy dispensing fee shall be $3.85.  Actual 
 15.22  acquisition cost includes quantity and other special discounts 
 15.23  except time and cash discounts.  The actual acquisition cost of 
 15.24  a drug shall be estimated by the commissioner, at average 
 15.25  wholesale price minus nine percent effective January 1, 1994.  
 15.26  The maximum allowable cost of a multisource drug may be set by 
 15.27  the commissioner and it shall be comparable to, but no higher 
 15.28  than, the maximum amount paid by other third-party payors in 
 15.29  this state who have maximum allowable cost programs.  
 15.30  Establishment of the amount of payment for drugs shall not be 
 15.31  subject to the requirements of the administrative procedure 
 15.32  act.  An additional dispensing fee of $.30 may be added to the 
 15.33  dispensing fee paid to pharmacists for legend drug prescriptions 
 15.34  dispensed to residents of long-term care facilities when a unit 
 15.35  dose blister card system, approved by the department, is used.  
 15.36  Under this type of dispensing system, the pharmacist must 
 16.1   dispense a 30-day supply of drug.  The National Drug Code (NDC) 
 16.2   from the drug container used to fill the blister card must be 
 16.3   identified on the claim to the department.  The unit dose 
 16.4   blister card containing the drug must meet the packaging 
 16.5   standards set forth in Minnesota Rules, part 6800.2700, that 
 16.6   govern the return of unused drugs to the pharmacy for reuse.  
 16.7   The pharmacy provider will be required to credit the department 
 16.8   for the actual acquisition cost of all unused drugs that are 
 16.9   eligible for reuse.  Over-the-counter medications must be 
 16.10  dispensed in the manufacturer's unopened package.  The 
 16.11  commissioner may permit the drug clozapine to be dispensed in a 
 16.12  quantity that is less than a 30-day supply.  Whenever a 
 16.13  generically equivalent product is available, payment shall be on 
 16.14  the basis of the actual acquisition cost of the generic drug, 
 16.15  unless the prescriber specifically indicates "dispense as 
 16.16  written - brand necessary" on the prescription as required by 
 16.17  section 151.21, subdivision 2.  
 16.18     Sec. 11.  [CORRECTION 12.] 1995 S.F. No. 1110, article 6, 
 16.19  section 123, if enacted, is amended to read: 
 16.20     Sec. 123.  [TEFRA MANAGED CARE ADVISORY COMMITTEE AND 
 16.21  PROGRESS REPORT.] 
 16.22     Subdivision 1.  [ADVISORY COMMITTEE.] The commissioner 
 16.23  shall appoint an advisory committee to assist with the 
 16.24  development of managed care for children eligible for medical 
 16.25  assistance under Minnesota Statutes, section 256B.055, 
 16.26  subdivision 12.  The advisory committee shall include 
 16.27  representatives of parents, advocates, health plan companies, 
 16.28  health care providers serving the children, counties, and other 
 16.29  other interested persons. 
 16.30     Subd. 2.  [PROGRESS REPORT.] The commission commissioner 
 16.31  shall report to the legislature by December 15, 1995, regarding 
 16.32  progress toward implementing managed care.  The report shall 
 16.33  make recommendations regarding the following:  any law changes 
 16.34  needed for effective implementation; how to coordinate with 
 16.35  other insurance coverage the families may have; how managed care 
 16.36  plans would operate as to varying coverage; what services would 
 17.1   be available, including any gaps under managed care plans; and 
 17.2   whether going to managed care results in cost savings to the 
 17.3   state.  The report shall also provide information by county and 
 17.4   major diagnoses of children found eligible and ineligible for 
 17.5   TEFRA, the services and amounts paid by the medical assistance 
 17.6   program, name of health insurance plan, family income, and total 
 17.7   number of TEFRA eligible children in each county. 
 17.8      Sec. 12.  [CORRECTION 15.] 1995 S.F. No. 106, section 142, 
 17.9   if enacted, is amended to read: 
 17.10     Sec. 142.  [EFFECTIVE DATES.] 
 17.11     Sections 2, 5, 7, 20, 42, 44 to 49, 56, 57, 101, 102, 117, 
 17.12  and 141, paragraph (d), are effective the day following final 
 17.13  enactment. 
 17.14     Sections 114, 115, 118, and 121 are effective January 1, 
 17.15  1996. 
 17.16     Sections 119, 120, and 141, paragraph (c), are effective 
 17.17  July 1, 1996. 
 17.18     Section 141, paragraph (b), is effective June 30, 1999. 
 17.19     Sections 58 and 66 are effective retroactively to August 1, 
 17.20  1991. 
 17.21     Sec. 13.  [CORRECTION 16.] 1995 S.F. No. 106, section 16, 
 17.22  if enacted, is amended to read: 
 17.23  Sec. 16.  PUBLIC SAFETY                   50,000
 17.24  $50,000 is appropriated from the 
 17.25  highway user tax distribution fund to 
 17.26  the commissioner of public safety for 
 17.27  costs of handling and manufacturing 
 17.28  special license plates under section 85 
 17.29  112. 
 17.30     Sec. 14.  [CORRECTION 18.] 1995 S.F. No. 1110, article 7, 
 17.31  section 8, if enacted, is amended to read: 
 17.32     Sec. 8.  [144.6505] [SUBACUTE CARE WAIVERS.] 
 17.33     Subdivision 1.  [SUBACUTE CARE; WAIVER FROM STATE AND 
 17.34  FEDERAL RULES AND REGULATIONS.] The commissioners of health and 
 17.35  human services shall work with providers to examine state and 
 17.36  federal rules and regulations governing the provision of care in 
 17.37  nursing facilities and apply for federal waivers and pursue 
 17.38  state law changes to any impediments to the provision of 
 18.1   subacute care in skilled nursing facilities. 
 18.2      Subd. 2.  [DEFINITION OF SUBACUTE CARE.] (a) For the 
 18.3   purpose of this section, "subacute care" means comprehensive 
 18.4   inpatient care, as further defined in this subdivision, designed 
 18.5   for persons who: 
 18.6      (1) have or have had an acute illness or accident, or an 
 18.7   acute exacerbation of a chronic illness, and who require a 
 18.8   moderate level of service intensity; 
 18.9      (2) do not require, or no longer require, technologically 
 18.10  intensive diagnosis or management; 
 18.11     (3) have concurrent medical, nursing, and discharge and/or 
 18.12  nondischarge oriented rehabilitation objectives that are 
 18.13  expected to be achieved within a specified time; and 
 18.14     (4) require interdisciplinary management.  
 18.15     (b) Subacute care includes goal-oriented treatment rendered 
 18.16  immediately after, or as an appropriate alternative to, acute 
 18.17  hospitalization with the goal of transitioning patients towards 
 18.18  increased independence or lower acuity level in a cost-effective 
 18.19  environment, to treat one or more specific active complex 
 18.20  medical conditions or to administer one or more technically 
 18.21  complex treatments, in the context of a patient's underlying 
 18.22  long-term conditions and overall situation. 
 18.23     (c) Subacute care does not generally depend heavily on high 
 18.24  technology monitoring or complex diagnostic procedures.  
 18.25     (d) Subacute care requires the coordinated services of an 
 18.26  interdisciplinary team including physicians, nurses, and other 
 18.27  relevant professional disciplines, who are trained and 
 18.28  knowledgeable to assess and manage these specific conditions and 
 18.29  perform the necessary procedures.  
 18.30     (e) Subacute care is provided as part of a specifically 
 18.31  defined program. 
 18.32     (f) Subacute care includes more intensive care than 
 18.33  traditional nursing facility care and less intensive care than 
 18.34  acute care and may be provided at a variety of sites, including 
 18.35  hospitals and skilled nursing facilities. 
 18.36     (g) Subacute care requires recurrent patient assessment on 
 19.1   a daily to weekly basis and review of the clinical course and 
 19.2   treatment plan for a limited time period ranging from several 
 19.3   days to several months, until the condition is stabilized or a 
 19.4   predetermined treatment course is completed. 
 19.5      Sec. 15.  [CORRECTION 19.] 1995 H.F. No. 1864, article 6, 
 19.6   section 2, subdivision 1, if enacted, is amended to read: 
 19.7      Subdivision 1.  [AUTHORIZATION.] The commissioner of 
 19.8   finance, upon request of the governor, is authorized to sell and 
 19.9   issue state bonds to fund the judgment rendered against the 
 19.10  state by the Minnesota supreme court in Cambridge State Bank et. 
 19.11  al. v. James, 514 N.W. 2d 565, on April 1, 1994, and related 
 19.12  claims, and interest accrued thereon on the judgment and related 
 19.13  claims, to fund any bond reserve determined to be necessary, and 
 19.14  to pay costs of issuance of the bonds.  The proceeds of the 
 19.15  bonds are appropriated for these purposes.  The principal amount 
 19.16  of the bonds shall not exceed $400,000,000.  The bonds shall be 
 19.17  sold and issued upon such terms and in such manner as the 
 19.18  commissioner shall determine to be in the best interests of the 
 19.19  state.  The final maturity of the bonds shall be not later than 
 19.20  June 30, 2005. 
 19.21     Sec. 16.  [CORRECTION 13.] 1995 H.F. No. 1856, article 2, 
 19.22  section 22, if enacted, is amended to read: 
 19.23     Sec. 22.  [REPEALER.] 
 19.24     Minnesota Statutes 1994, sections 136A.16, subdivision 11; 
 19.25  137.31, subdivision 6; 137.35, subdivision 4; and 
 19.26  137.38, subdivision 5, are repealed. 
 19.27     Sec. 17.  [CORRECTION 13.] 1995 H.F. No. 1856, article 4, 
 19.28  section 4, subdivision 5, if enacted, is amended to read: 
 19.29     Subd. 5.  [BOARD ACTION.] In accordance with the principles 
 19.30  in this section 136F.011, the board shall review the proposed 
 19.31  structure of the system office with the objective of further 
 19.32  reducing or eliminating those functions that are unnecessary.  
 19.33  Savings that occur shall be redirected to support instruction on 
 19.34  the campuses. 
 19.35     Sec. 18.  [CORRECTION 17.] Laws 1995, chapter 68, section 
 19.36  14, is amended to read:  
 20.1      Sec. 14.  [EFFECTIVE DATE.] 
 20.2      Sections 1 to 8 and 13 are effective the day following 
 20.3   final enactment. 
 20.4      Sections 9 to 12 are effective July 1, 1995. 
 20.5      Sec. 19.  [CORRECTION 14.] 
 20.6      Sec. 2.  [LIMITATION OF INFRASTRUCTURE REINVESTMENT.] 
 20.7      None of the $750,000 made available by S.F. 1110, article 
 20.8   1, section 2, subdivision 7, from the public facilities 
 20.9   authority under Minnesota Statutes, section 446A.071, for grant 
 20.10  funds to a local unit of government for the development of 
 20.11  infrastructure and planning for redevelopment, in response to 
 20.12  the memorandum of understanding for the regional treatment 
 20.13  centers, may be used to purchase land on which prison buildings 
 20.14  will be placed or to pay for utilities to the prison site and 
 20.15  hazardous waste issues or other subgrade condition costs. 
 20.16     Sec. 20.  [EFFECTIVE DATE.] 
 20.17     Unless provided otherwise, each section of this act takes 
 20.18  effect at the time that the section of law enacted in 1995 that 
 20.19  it amends or cites takes effect.