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

                            CHAPTER 218-H.F.No. 2027 
                  An act relating to human services; providing an 
                  exemption to the moratorium on nursing home 
                  construction; amending Minnesota Statutes 2003 
                  Supplement, section 144A.071, subdivision 4c. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2003 Supplement, 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; and 
           (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; and 
           (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. 
           (b) Projects approved under this subdivision shall be 
        treated in a manner equivalent to projects approved under 
        subdivision 4a. 
           Presented to the governor May 15, 2004 
           Signed by the governor May 19, 2004, 10:15 a.m.