SF 3715

1st Engrossment - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to Steele County; authorizing transfer of nursing home and assisted living
facility and related assets to nonprofit corporation and acquisition of membership
interest in nonprofit corporation; providing an exception to the moratorium on
new nursing home beds for beds transferred to a new site within the county;
amending Minnesota Statutes 2006, section 144A.071, subdivision 4c.

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

Section 1.

Minnesota Statutes 2006, section 144A.071, subdivision 4c, is amended to
read:

Subd. 4c.

Exceptions for replacement beds after June 30, 2003.

(a) The
commissioner of health, in coordination with the commissioner of human services, may
approve the renovation, replacement, upgrading, or relocation of a nursing home or
boarding care home, under the following conditions:

(1) to license and certify an 80-bed city-owned facility in Nicollet County to be
constructed on the site of a new city-owned hospital to replace an existing 85-bed facility
attached to a hospital that is also being replaced. The threshold allowed for this project
under section 144A.073 shall be the maximum amount available to pay the additional
medical assistance costs of the new facility;

(2) to license and certify 29 beds to be added to an existing 69-bed facility in St.
Louis County, provided that the 29 beds must be transferred from active or layaway status
at an existing facility in St. Louis County that had 235 beds on April 1, 2003.

The licensed capacity at the 235-bed facility must be reduced to 206 beds, but the payment
rate at that facility shall not be adjusted as a result of this transfer. The operating payment
rate of the facility adding beds after completion of this project shall be the same as it was
on the day prior to the day the beds are licensed and certified. This project shall not
proceed unless it is approved and financed under the provisions of section 144A.073;

(3) to license and certify a new 60-bed facility in Austin, provided that: (i) 45 of
the new beds are transferred from a 45-bed facility in Austin under common ownership
that is closed and 15 of the new beds are transferred from a 182-bed facility in Albert Lea
under common ownership; (ii) the commissioner of human services is authorized by the
2004 legislature to negotiate budget-neutral planned nursing facility closures; and (iii)
money is available from planned closures of facilities under common ownership to make
implementation of this clause budget-neutral to the state. The bed capacity of the Albert
Lea facility shall be reduced to 167 beds following the transfer. Of the 60 beds at the
new facility, 20 beds shall be used for a special care unit for persons with Alzheimer's
disease or related dementias; deleted text begin and
deleted text end

(4) to license and certify up to 80 beds transferred from an existing state-owned
nursing facility in Cass County to a new facility located on the grounds of the
Ah-Gwah-Ching campus. The operating cost payment rates for the new facility shall be
determined based on the interim and settle-up payment provisions of Minnesota Rules,
part 9549.0057, and the reimbursement provisions of section 256B.431. The property
payment rate for the first three years of operation shall be $35 per day. For subsequent
years, the property payment rate of $35 per day shall be adjusted for inflation as provided
in section 256B.434, subdivision 4, paragraph (c), as long as the facility has a contract
under section 256B.434 new text begin ; and
new text end

new text begin (5) to initiate a pilot program to license and certify up to 80 beds transferred from
an existing county-owned nursing facility in Steele County relocated to the site of a new
acute care facility as part of the county's Communities for a Lifetime comprehensive plan
to create innovative responses to the aging of its population. Upon relocation to the new
site, the nursing facility shall delicense 28 beds. The property payment rate for the first
three years of operation of the new facility shall be increased by an amount as calculated
according to items (i) to (v):
new text end

new text begin (i) compute the estimated decrease in medical assistance residents served by the
nursing facility by multiplying the decrease in licensed beds by the historical percentage
of medical assistance resident days;
new text end

new text begin (ii) compute the annual savings to the medical assistance program from the
delicensure of 28 beds by multiplying the anticipated decrease in medical assistance
residents, determined in item (i), by the existing facility's weighted average payment rate
multiplied by 365;
new text end

new text begin (iii) compute the anticipated annual costs for community-based services by
multiplying the anticipated decrease in medical assistance residents served by the nursing
facility, determined in item (i), by the average monthly elderly waiver service costs for
individuals in Steele County multiplied by 12;
new text end

new text begin (iv) subtract the amount in item (iii) from the amount in item (ii);
new text end

new text begin (v) divide the amount in item (iv) by an amount equal to the relocated nursing
facility's occupancy factor under section 256B.431, subdivision 3f, paragraph (c),
multiplied by the historical percentage of medical assistance resident days.
new text end

new text begin For subsequent years, the adjusted property payment rate shall be adjusted for
inflation as provided in section 256B.434, subdivision 4, paragraph (c), as long as the
facility has a contract under section 256B.434 new text end .

(b) Projects approved under this subdivision shall be treated in a manner equivalent
to projects approved under subdivision 4a.

Sec. 2. new text begin STEELE COUNTY ASSET TRANSFER; STATUS OF TRANSFEREE.
new text end

new text begin Subdivision 1. new text end

new text begin Asset transfer authorized. new text end

new text begin Steele County may lease, sell, or
otherwise transfer to a nonprofit corporation all of the real and personal property, tangible
and intangible, including contract rights, receivables, and enterprise funds, owned or
used by the county for nursing home, assisted living, and related purposes and may
acquire a membership interest in the nonprofit corporation. Any lease must provide for
rent payable by the corporation at least sufficient to pay the principal and interest on
the outstanding bonds of the county issued to finance any of the facilities. The lease
may grant the corporation an option or require the corporation to purchase the facilities
upon payment or redemption of the outstanding bonds. Any lease, sale, or other transfer
must be on terms and conditions approved by the county board, without advertisement or
public solicitation of bids.
new text end

new text begin Subd. 2. new text end

new text begin Status of transferee. new text end

new text begin The articles of incorporation or bylaws of the
transferee corporation may provide that the county board has the right to appoint and
remove one or more members of the governing board of the corporation and that specified
actions be subject to the approval of the members. The corporation shall be a nonprofit
corporation organized under Minnesota Statutes, chapter 317A, and entitled to exercise
all of the powers of a nonprofit corporation under that chapter. If the county board
does not have the right to appoint a majority of the governing board of the nonprofit
corporation, neither Minnesota Statutes, section 465.717, nor other laws applicable to
public corporations shall apply to the nonprofit corporation.
new text end

new text begin Subd. 3. new text end

new text begin Open meeting law; data practices. new text end

new text begin A nonprofit corporation created under
this section is subject to the Minnesota Open Meeting Law and Minnesota Government
Data Practices Act.
new text end

new text begin EFFECTIVE DATE; LOCAL APPROVAL. new text end

new text begin This section is effective the day
after the governing body of Steele County and its chief clerical officer timely complete
compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
new text end