1.1 	A bill for an act
1.2 	relating to human services; providing a rate increase
1.3 	for nursing facilities in Martin and Faribault
1.4 	Counties; amending Minnesota Statutes 2004, section
1.5 	256B.431, by adding a subdivision.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 256B.431, is
1.8 	amended by adding a subdivision to read:
1.9 		Subd. 41.Nursing facility rate increase for 2005 and
1.10 	2006 rate years. (a) For the rate years beginning July 1, 2005,
1.11 	and July 1, 2006, the commissioner shall provide to nursing
1.12 	facilities in Martin and Faribault Counties reimbursed under
1.13 	this section or section 256B.434, an increase in the total
1.14 	operating payment rate of $12 per resident day for all case mix
1.15 	classes.
1.16 	(b) For the rate years beginning July 1, 2005, and July 1,
1.17 	2006, after providing the increase in paragraph (a), the
1.18 	commissioner shall provide to nursing facilities in Martin and
1.19 	Faribault Counties reimbursed under this section or section
1.20 	256B.434, an adjustment equal to 12 percent of the total
1.21 	operating payment rate for each case mix class.  Funds provided
1.22 	to facilities under this paragraph must be used to:
1.23 	(1) increase wages and benefits and pay associated costs
1.24 	for employees except management fees, the administrator, and
1.25 	central office staff;
2.1 	(2) add staff, other than administrative personnel, above
2.2 	the facility's average staff complement for the previous year;
2.3 	or 
2.4 	(3) implement any combination of clauses (1) and (2).
2.5 	(c) Money received by a facility as a result of the rate
2.6 	adjustment provided in paragraph (b), which is to be used as
2.7 	provided in paragraph (b), clauses (1) to (3), must be used only
2.8 	for wage, benefit, and staff increases implemented on or after
2.9 	July 1, 2005, and July 1, 2006, respectively, and must not be
2.10 	used for increases implemented prior to that date.