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

Office of the Revisor of Statutes

Key: (1) language to be deleted (2) new language

                            CHAPTER 287-S.F.No. 2459 
                  An act relating to health; modifying requirements for 
                  supplemental nursing services agencies; providing for 
                  revocation of supplemental nursing services agency's 
                  registration if the agency supplies persons with 
                  illegal diplomas to health care facilities; providing 
                  for revocation procedures; amending Minnesota Statutes 
                  2001 Supplement, sections 144A.70, subdivision 6; 
                  144A.71, subdivision 2; 144A.72, subdivision 1, by 
                  adding subdivisions; 144A.74. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2001 Supplement, section 
        144A.70, subdivision 6, is amended to read: 
           Subd. 6.  [SUPPLEMENTAL NURSING SERVICES AGENCY.] 
        "Supplemental nursing services agency" means a person, firm, 
        corporation, partnership, or association engaged for hire in the 
        business of providing or procuring temporary employment in 
        health care facilities for nurses, nursing assistants, nurse 
        aides, and orderlies.  Supplemental nursing services agency does 
        not include an individual who only engages in providing the 
        individual's services on a temporary basis to health care 
        facilities.  Supplemental nursing services agency also does not 
        include any nursing service agency that is limited to providing 
        temporary nursing personnel solely to one or more health care 
        facilities owned or operated by the same person, firm, 
        corporation, or partnership. 
           Sec. 2.  Minnesota Statutes 2001 Supplement, section 
        144A.71, subdivision 2, is amended to read: 
           Subd. 2.  [APPLICATION INFORMATION AND FEE.] The 
        commissioner shall establish forms and procedures for processing 
        each supplemental nursing services agency registration 
        application.  An application for a supplemental nursing services 
        agency registration must include at least the following: 
           (1) the names and addresses of the owner or owners of the 
        supplemental nursing services agency; 
           (2) if the owner is a corporation, copies of its articles 
        of incorporation and current bylaws, together with the names and 
        addresses of its officers and directors; 
           (3) satisfactory proof of compliance with section 144A.72, 
        subdivision 1, clauses (5) to (7); 
           (4) any other relevant information that the commissioner 
        determines is necessary to properly evaluate an application for 
        registration; and 
           (4) (5) the annual registration fee for a supplemental 
        nursing services agency, which is $891. 
           Sec. 3.  Minnesota Statutes 2001 Supplement, section 
        144A.72, subdivision 1, is amended to read: 
           Subdivision 1.  [MINIMUM CRITERIA.] The commissioner shall 
        require that, as a condition of registration: 
           (1) the supplemental nursing services agency shall document 
        that each temporary employee provided to health care facilities 
        currently meets the minimum licensing, training, and continuing 
        education standards for the position in which the employee will 
        be working; 
           (2) the supplemental nursing services agency shall comply 
        with all pertinent requirements relating to the health and other 
        qualifications of personnel employed in health care facilities; 
           (3) the supplemental nursing services agency must not 
        restrict in any manner the employment opportunities of its 
        employees; 
           (4) the supplemental nursing services agency, when 
        supplying temporary employees to a health care facility, and 
        when requested by the facility to do so, shall agree that at 
        least 30 percent of the total personnel hours supplied are 
        during night, holiday, or weekend shifts; 
           (5) the supplemental nursing services agency shall carry 
        medical malpractice insurance to insure against the loss, 
        damage, or expense incident to a claim arising out of the death 
        or injury of any person as the result of negligence or 
        malpractice in the provision of health care services by the 
        supplemental nursing services agency or by any employee of the 
        agency; and 
           (6) (5) the supplemental nursing services agency shall 
        carry an employee dishonesty bond in the amount of $10,000; 
           (6) the supplemental nursing services agency shall maintain 
        insurance coverage for workers' compensation for all nurses, 
        nursing assistants, nurse aides, and orderlies provided or 
        procured by the agency; 
           (7) the supplemental nursing services agency shall file 
        with the commissioner of revenue:  (i) the name and address of 
        the bank, savings bank, or savings association in which the 
        supplemental nursing services agency deposits all employee 
        income tax withholdings; and (ii) the name and address of any 
        nurse, nursing assistant, nurse aide, or orderly whose income is 
        derived from placement by the agency, if the agency purports the 
        income is not subject to withholding; 
           (8) the supplemental nursing services agency must not, in 
        any contract with any employee or health care facility, require 
        the payment of liquidated damages, employment fees, or other 
        compensation should the employee be hired as a permanent 
        employee of a health care facility; and 
           (9) the supplemental nursing services agency shall document 
        that each temporary employee provided to health care facilities 
        is an employee of the agency and is not an independent 
        contractor. 
           Sec. 4.  Minnesota Statutes 2001 Supplement, section 
        144A.72, is amended by adding a subdivision to read: 
           Subd. 3.  [REVOCATION.] Notwithstanding subdivision 2, the 
        registration of a supplemental nursing services agency that 
        knowingly supplies to a health care facility a person with an 
        illegally or fraudulently obtained or issued diploma, 
        registration, license, certificate, or background study shall be 
        revoked by the commissioner.  The commissioner shall notify the 
        supplemental nursing services agency 15 days in advance of the 
        date of revocation.  
           Sec. 5.  Minnesota Statutes 2001 Supplement, section 
        144A.72, is amended by adding a subdivision to read: 
           Subd. 4.  [HEARING.] (a) No supplemental nursing services 
        agency's registration may be revoked without a hearing held as a 
        contested case in accordance with chapter 14.  The hearing must 
        commence within 60 days after the proceedings are initiated.  
           (b) If a controlling person has been notified by the 
        commissioner of health that the supplemental nursing services 
        agency will not receive an initial registration or that a 
        renewal of the registration has been denied, the controlling 
        person or a legal representative on behalf of the supplemental 
        nursing services agency may request and receive a hearing on the 
        denial.  This hearing shall be held as a contested case in 
        accordance with chapter 14.  
           Sec. 6.  Minnesota Statutes 2001 Supplement, section 
        144A.72, is amended by adding a subdivision to read: 
           Subd. 5.  [PERIOD OF INELIGIBILITY.] (a) The controlling 
        person of a supplemental nursing services agency whose 
        registration has not been renewed or has been revoked because of 
        noncompliance with the provisions of sections 144A.70 to 144A.74 
        shall not be eligible to apply for nor will be granted a 
        registration for five years following the effective date of the 
        nonrenewal or revocation.  
           (b) The commissioner shall not issue or renew a 
        registration to a supplemental nursing services agency if a 
        controlling person includes any individual or entity who was a 
        controlling person of a supplemental nursing services agency 
        whose registration was not renewed or was revoked as described 
        in paragraph (a) for five years following the effective date of 
        nonrenewal or revocation. 
           Sec. 7.  Minnesota Statutes 2001 Supplement, section 
        144A.74, is amended to read: 
           144A.74 [MAXIMUM CHARGES.] 
           A supplemental nursing services agency must not bill or 
        receive payments from a nursing home licensed under this chapter 
        at a rate higher than 150 percent of the sum of the weighted 
        average wage rate, plus a factor determined by the commissioner 
        to incorporate payroll taxes as defined in Minnesota Rules, part 
        9549.0020, subpart 33, for the applicable employee 
        classification for the geographic group to which the nursing 
        home is assigned under Minnesota Rules, part 9549.0052.  The 
        weighted average wage rates must be determined by the 
        commissioner of human services and reported to the commissioner 
        of health on an annual basis.  Wages are defined as hourly rate 
        of pay and shift differential, including weekend shift 
        differential and overtime.  Facilities shall provide information 
        necessary to determine weighted average wage rates to the 
        commissioner of human services in a format requested by the 
        commissioner.  The maximum rate must include all charges for 
        administrative fees, contract fees, or other special charges in 
        addition to the hourly rates for the temporary nursing pool 
        personnel supplied to a nursing home. 
           [EFFECTIVE DATE.] This section is effective 14 days after 
        final enactment. 
           Presented to the governor March 25, 2002 
           Signed by the governor March 26, 2002, 2:35 p.m.