Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

SF 3565

as introduced - 89th Legislature (2015 - 2016) Posted on 04/22/2016 09:13am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8
1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 2.1 2.2 2.3
2.4
2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 3.31 3.32 3.33 3.34 3.35 3.36 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8
4.9
4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21 5.22 5.23 5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 6.10 6.11 6.12 6.13 6.14 6.15 6.16 6.17 6.18 6.19 6.20 6.21 6.22 6.23 6.24 6.25 6.26 6.27 6.28 6.29 6.30 6.31 6.32 6.33 6.34 6.35 6.36 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 7.12 7.13 7.14 7.15 7.16 7.17 7.18 7.19 7.20 7.21 7.22 7.23 7.24 7.25 7.26 7.27 7.28 7.29 7.30 7.31 7.32 7.33 7.34 7.35 7.36 8.1 8.2 8.3 8.4 8.5 8.6 8.7 8.8 8.9 8.10 8.11 8.12
8.13
8.14 8.15 8.16
8.17

A bill for an act
relating to human services; modifying reimbursement rates for intermediate
care facilities for persons with developmental disabilities and home and
community-based services providers; amending Minnesota Statutes 2014,
section 256B.5012, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapter 256B; repealing Minnesota Statutes 2014, section
256B.5012, subdivisions 4, 5, 6, 7, 8, 9, 10, 11, 14.

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

Section 1.

new text begin [256B.4915] DISABILITY WAIVER REIMBURSEMENT RATE
ADJUSTMENTS.
new text end

new text begin Subdivision 1. new text end

new text begin Historical rate. new text end

new text begin The commissioner of human services shall adjust
the historical rates calculated in section 256B.4913, subdivision 4a, paragraph (b), in
effect during the banding period under section 256B.4913, subdivision 4a, paragraph (a),
for each reimbursement rate increase effective on or after July 1, 2016.
new text end

new text begin Subd. 2. new text end

new text begin Residential support services. new text end

new text begin The commissioner shall adjust the
rates calculated in section 256B.4914, subdivision 6, paragraphs (b) and (c), for each
reimbursement rate increase effective on or after July 1, 2016.
new text end

new text begin Subd. 3. new text end

new text begin Day programs. new text end

new text begin The commissioner shall adjust the rates calculated in
section 256B.4914, subdivision 7, for each reimbursement rate increase effective on or
after July 1, 2016.
new text end

new text begin Subd. 4. new text end

new text begin Unit-based services with programming. new text end

new text begin The commissioner shall adjust
the rate calculated in section 256B.4914, subdivision 8, for each reimbursement rate
increase effective on or after July 1, 2016.
new text end

new text begin Subd. 5. new text end

new text begin Unit-based services without programming. new text end

new text begin The commissioner shall
adjust the rate calculated in section 256B.4914, subdivision 9, for each reimbursement rate
increase effective on or after July 1, 2016.
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. 2.

Minnesota Statutes 2014, section 256B.5012, is amended by adding a
subdivision to read:


new text begin Subd. 17. new text end

new text begin ICF/DD rate increases effective July 1, 2016. new text end

new text begin (a) For the rate period
beginning July 1, 2016, the commissioner shall increase operating payments for each
facility reimbursed under this section equal to five percent of the operating payment rates
in effect on June 30, 2016. The five percent increase in operating payment rates shall
consist of a workforce compensation component of three percent, a quality component of
one percent, and a person-centered component of one percent.
new text end

new text begin (b) For each facility, the commissioner shall apply the rate increase based on
occupied beds, using the percentage specified in this subdivision multiplied by the total
payment rate, including the variable rate but excluding the property-related payment
rate in effect on the preceding date. The total rate increase shall include the adjustment
provided in section 256B.501, subdivision 12.
new text end

new text begin (c) Facilities that receive a rate increase under this subdivision shall use 90 percent
of the additional revenue attributed to the workforce compensation component of the
operating payment rate increase for compensation-related costs for employees directly
employed by the facility on or after July 1, 2016, except:
new text end

new text begin (1) persons employed in the central office of a corporation or entity that has an
ownership interest in the facility or exercises control over the facility; and
new text end

new text begin (2) persons paid by the facility under a management contract.
new text end

new text begin (d) Compensation-related costs include:
new text end

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

new text begin (2) the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, workers' compensation, and mileage reimbursement;
new text end

new text begin (3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, pensions, and contributions to
employee retirement accounts; and
new text end

new text begin (4) other benefits provided and workforce needs, including the recruiting and
training of employees as specified in the distribution plan required under paragraph (h).
new text end

new text begin (e) For public employees under a collective bargaining agreement, the increases for
wages and benefits for certain staff are available and pay rates must be increased only to
the extent that the increases comply with laws governing public employees' collective
bargaining. Money received by a facility under paragraph (c) for pay increases for public
employees must be used only for pay increases implemented between July 1, 2016, and
August 1, 2016.
new text end

new text begin (f) For a facility that has employees that are represented by an exclusive bargaining
representative, the provider shall obtain a letter of acceptance of the distribution plan
required under paragraph (h), relating to the members of the bargaining unit, signed by the
exclusive bargaining agent. Upon receipt of the letter of acceptance, the facility shall be
deemed to have met all the requirements of this subdivision relating to the members of
the bargaining unit. Upon request, the facility shall produce the letter of acceptance to
the commissioner.
new text end

new text begin (g) The commissioner shall amend state grant contracts that include direct
personnel-related grant expenditures to include the allocation for the portion of the
contract related to employee compensation. Grant contracts for compensation-related
services must be amended to pass through these adjustments within 60 days of the
effective date of the increase and must be retroactive to July 1, 2016.
new text end

new text begin (h) A facility that receives a rate adjustment under paragraph (a) that is subject to
paragraphs (c) and (d) shall prepare and, upon request, submit to the commissioner a
distribution plan that specifies the amount of money the facility expects to receive that is
subject to the requirements of paragraphs (c) and (d), including how that money will be
distributed to increase compensation for employees.
new text end

new text begin (i) Within six months of the effective date of the rate adjustment, the facility shall
post the distribution plan required under paragraph (h) for at least six weeks in an area
of the facility's operation to which all eligible employees have access and shall provide
instructions for employees who do not believe they have received the wage and other
compensation-related increases specified in the distribution plan. The instructions must
include a mailing address, e-mail address, and telephone number that an employee may
use to contact the commissioner or the commissioner's representative.
new text end

new text begin (j) To receive the quality component of the rate increase under paragraph (a),
a facility must submit to the commissioner documentation that identifies a quality
improvement project that the facility must implement by June 30, 2017. The project may be
a continuation or enhancement of projects developed under subdivision 16, paragraph (c).
Documentation must be provided in a format specified by the commissioner. Projects must:
new text end

new text begin (1) improve the quality of life of home and community-based services recipients in
a meaningful way;
new text end

new text begin (2) improve the quality of services in a meaningful way; or
new text end

new text begin (3) deliver good quality service more efficiently while using the savings to enhance
the services for recipients served.
new text end

new text begin (k) To receive the person-centered component of the rate increase under paragraph
(a), a facility must submit to the commissioner documentation that identifies a community
integration improvement project that the facility must implement by June 30, 2017.
Documentation must be provided in a format specified by the commissioner. Projects must:
new text end

new text begin (1) incorporate person-centered thinking into the provision of services; or
new text end

new text begin (2) advance one or more of the goals adopted in the state's Olmstead plan.
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.

new text begin [256B.745] HOME AND COMMUNITY-BASED SERVICE PROVIDER
RATE AND GRANT INCREASES.
new text end

new text begin Subdivision 1. new text end

new text begin Rate and grant increases. new text end

new text begin The commissioner of human services
shall increase reimbursement rates, grants, allocations, individual limits, and rate limits,
as applicable, by five percent for the rate period beginning July 1, 2016, for services
rendered on or after that date. County or tribal contracts for services specified in this
section must be amended to pass through this rate increase within 60 days of the effective
date of the increase. The five percent increase shall consist of a workforce compensation
component of three percent, a quality component of one percent, and a person-centered
component of one percent.
new text end

new text begin Subd. 2. new text end

new text begin Eligible services, grants, and programs. new text end

new text begin The rate changes described
in this section apply to:
new text end

new text begin (1) home and community-based waivered services for persons with developmental
disabilities, including consumer-directed community supports, under section 256B.092;
new text end

new text begin (2) waivered services under community alternatives for disabled individuals,
including consumer-directed community supports, under section 256B.49;
new text end

new text begin (3) community alternative care waivered services, including consumer-directed
community supports, under section 256B.49;
new text end

new text begin (4) brain injury waivered services, including consumer-directed community
supports, under section 256B.49;
new text end

new text begin (5) home and community-based waivered services for the elderly under section
256B.0915;
new text end

new text begin (6) nursing services and home health services under section 256B.0625, subdivision
6a;
new text end

new text begin (7) personal care services and qualified professional supervision of personal care
services under section 256B.0625, subdivisions 6a and 19a;
new text end

new text begin (8) home care nursing services under section 256B.0625, subdivision 7;
new text end

new text begin (9) community first services and supports under section 256B.85;
new text end

new text begin (10) essential community supports under section 256B.0922;
new text end

new text begin (11) day training and habilitation services for adults with developmental disabilities
under sections 252.41 to 252.46, including the additional cost to counties of the rate
adjustments on day training and habilitation services provided as a social service;
new text end

new text begin (12) alternative care services under section 256B.0913;
new text end

new text begin (13) living skills training programs for persons with intractable epilepsy who need
assistance in the transition to independent living under Laws 1988, chapter 689;
new text end

new text begin (14) semi-independent living services (SILS) under section 252.275;
new text end

new text begin (15) consumer support grants under section 256.476;
new text end

new text begin (16) family support grants under section 252.32;
new text end

new text begin (17) housing access grants under section 256B.0658;
new text end

new text begin (18) self-advocacy grants under Laws 2009, chapter 101;
new text end

new text begin (19) technology grants under Laws 2009, chapter 79;
new text end

new text begin (20) aging grants under sections 256.975 to 256.977 and 256B.0917;
new text end

new text begin (21) deaf and hard-of-hearing grants, including community support services for deaf
and hard-of-hearing adults with mental illness who use or wish to use sign language as
their primary means of communication under section 256.01, subdivision 2;
new text end

new text begin (22) deaf and hard-of-hearing grants under sections 256C.233, 256C.25, and
256C.261;
new text end

new text begin (23) Disability Linkage Line grants under section 256.01, subdivision 24;
new text end

new text begin (24) home and community-based transition initiative grants under section 256.478;
new text end

new text begin (25) employment support grants under section 256B.021, subdivision 6; and
new text end

new text begin (26) grants provided to people who are eligible for the Housing Opportunities for
Persons with AIDS program under section 256B.492.
new text end

new text begin Subd. 3. new text end

new text begin Managed care and county-based purchasing plans. new text end

new text begin A managed
care plan or county-based purchasing plan receiving state payments for the services,
grants, and programs in subdivision 2 must include the increase in their payments to
providers. For the purposes of this section, "providers" are entities that provide care
coordination are providers. To implement the rate increase in subdivision 1, capitation
rates paid by the commissioner to managed care plans and county-based purchasing plans
under section 256B.69 shall reflect a five percent increase for the services, grants, and
programs specified in subdivision 2 for the period beginning on the effective date of
the rate adjustment under subdivision 1.
new text end

new text begin Subd. 4. new text end

new text begin Consumer-directed community supports. new text end

new text begin Counties shall increase the
budget for each recipient of consumer-directed community supports by the amount in
subdivision 1 on the effective date of the rate adjustment under subdivision 1.
new text end

new text begin Subd. 5. new text end

new text begin Workforce compensation component. new text end

new text begin Providers that receive a rate
increase under subdivision 1 shall use 90 percent of the additional revenue attributed to the
workforce compensation component of the rate increase to increase compensation-related
costs for employees directly employed by the program on or after the effective date of the
rate adjustment under subdivision 1, except:
new text end

new text begin (1) persons employed in the central office of a corporation or entity that has an
ownership interest in the provider or exercises control over the provider; and
new text end

new text begin (2) persons paid by the provider under a management contract.
new text end

new text begin Subd. 6. new text end

new text begin Compensation-related costs. new text end

new text begin Compensation-related costs include:
new text end

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

new text begin (2) the employer's share of FICA taxes, Medicare taxes, state and federal
unemployment taxes, workers' compensation, and mileage reimbursement;
new text end

new text begin (3) the employer's share of health and dental insurance, life insurance, disability
insurance, long-term care insurance, uniform allowance, pensions, and contributions to
employee retirement accounts; and
new text end

new text begin (4) other benefits provided and workforce needs, including the recruiting and
training of employees as specified in the distribution plan required under subdivision 11.
new text end

new text begin Subd. 7. new text end

new text begin Public employees under collective bargaining agreement. new text end

new text begin For public
employees under a collective bargaining agreement, the increases for wages and benefits
are available and pay rates must be increased only to the extent that the increases comply
with laws governing public employees' collective bargaining. Money received by a
provider for pay increases for public employees under subdivision 5 must be used only for
pay increases implemented between July 1 and August 1 of the year the rate adjustment is
implemented under subdivision 1.
new text end

new text begin Subd. 8. new text end

new text begin Employees represented by exclusive bargaining representative. new text end

new text begin For a
provider that has employees who are represented by an exclusive bargaining representative,
the provider shall obtain a letter of acceptance of the distribution plan required under
subdivision 11, relating to the members of the bargaining unit, signed by the exclusive
bargaining agent. Upon receipt of the letter of acceptance, the provider shall be deemed to
have met all the requirements of this section relating to the members of the bargaining unit.
Upon request, the provider shall produce the letter of acceptance to the commissioner.
new text end

new text begin Subd. 9. new text end

new text begin State grant contracts. new text end

new text begin The commissioner shall amend state grant
contracts that include direct personnel-related grant expenditures to include the allocation
for the portion of the contract related to employee compensation. Grant contracts for
compensation-related services must be amended to pass through these adjustments within
60 days of the effective date of the rate adjustment under subdivision 1 and must be
retroactive to the effective date of the rate adjustment under subdivision 1.
new text end

new text begin Subd. 10. new text end

new text begin Board on Aging; area agencies on aging. new text end

new text begin The Board on Aging and its
area agencies on aging shall amend their grants that include direct personnel-related grant
expenditures to include the rate adjustments for the portion of the grant related to employee
compensation. Grants for compensation-related services must be amended to apply these
adjustments within 60 days of the effective date of the rate adjustment under subdivision 1
and must be retroactive to the effective date of the rate adjustment under subdivision 1.
new text end

new text begin Subd. 11. new text end

new text begin Distribution plan. new text end

new text begin (a) A provider that receives a rate adjustment under
subdivision 1 that is subject to subdivision 5 shall prepare and, upon request, submit to the
commissioner a distribution plan that specifies the amount of money the provider expects
to receive that is subject to the requirements of subdivision 5, including how that money
will be distributed to increase compensation for employees.
new text end

new text begin (b) Within six months of the effective date of the rate adjustment, the provider shall
post the distribution plan required under paragraph (a) for a period of at least six weeks in
an area of the provider's operation to which all eligible employees have access and shall
provide instructions for employees who do not believe they have received the wage and
other compensation-related increases specified in the distribution plan. The instructions
must include a mailing address, e-mail address, and telephone number that the employee
may use to contact the commissioner or the commissioner's representative.
new text end

new text begin Subd. 12. new text end

new text begin Quality component. new text end

new text begin To receive the quality component of the rate
increase under subdivision 1, a provider must submit to the commissioner documentation
that identifies a quality improvement project that the provider must implement by June 30
of the calendar year following the year in which the rate adjustment under subdivision 1 is
implemented. The project may be a continuation or enhancement of projects developed
under Laws 2014, chapter 312, article 27, section 75, paragraph (e). Documentation must
be provided in a format specified by the commissioner. Projects must:
new text end

new text begin (1) improve the quality of life of home and community-based services recipients in
a meaningful way;
new text end

new text begin (2) improve the quality of services in a meaningful way; or
new text end

new text begin (3) deliver good quality service more efficiently while using the savings to enhance
the services for recipients served.
new text end

new text begin Subd. 13. new text end

new text begin Person-centered component. new text end

new text begin To receive the person-centered component
of the rate increase under subdivision 1, a provider must submit to the commissioner
documentation that identifies a community integration improvement project that the
provider must implement by June 30 of the calendar year following the year in which the
rate adjustment under subdivision 1 is implemented. Documentation must be provided
in a format specified by the commissioner. Projects must:
new text end

new text begin (1) incorporate person-centered thinking into the provision of services;
new text end

new text begin (2) advance one or more of the goals adopted in the state's Olmstead plan; or
new text end

new text begin (3) for providers listed in subdivision 2, clause (5) or (12), meet the requirements
of subdivision 12.
new text end

new text begin Subd. 14. new text end

new text begin Exemptions. new text end

new text begin (a) Providers listed in subdivision 2, clauses (6) to (10) and
(13) to (26), are not subject to the requirements of subdivisions 12 and 13.
new text end

new text begin (b) Providers of home-delivered meals and congregate dining services are not
subject to the requirements of subdivisions 5, 12, and 13.
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. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, section 256B.5012, subdivisions 4, 5, 6, 7, 8, 9, 10, 11,
and 14,
new text end new text begin are repealed.
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