1.1 	A bill for an act
1.2 	relating to health; modifying the nursing home construction moratorium by 
1.3 	creating an additional exception for a new facility for persons with eating 
1.4 	disorders to be located in Hennepin or Dakota County;amending Minnesota 
1.5 	Statutes 2004, section 144A.071, subdivision 3.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 144A.071, subdivision 3, is amended to 
1.8 	read:
1.9 		Subd. 3.Exceptions authorizing an increase in beds. (a) The commissioner 
1.10 	of health, in coordination with the commissioner of human services, may approve the 
1.11 	addition of a new certified bed or the addition of a new licensed nursing home bed, under 
1.12 	the following conditions:
1.13 	~~(a)~~ (1) to license or certify a new bed in place of one decertified after July 1, 1993, as 
1.14 	long as the number of certified plus newly certified or recertified beds does not exceed the 
1.15 	number of beds licensed or certified on July 1, 1993, or to address an extreme hardship 
1.16 	situation, in a particular county that, together with all contiguous Minnesota counties, has 
1.17 	fewer nursing home beds per 1,000 elderly than the number that is ten percent higher than 
1.18 	the national average of nursing home beds per 1,000 elderly individuals. For the purposes 
1.19 	of this section, the national average of nursing home beds shall be the most recent figure 
1.20 	that can be supplied by the federal Centers for Medicare and Medicaid Services and the 
1.21 	number of elderly in the county or the nation shall be determined by the most recent 
1.22 	federal census or the most recent estimate of the state demographer as of July 1, of each 
1.23 	year of persons age 65 and older, whichever is the most recent at the time of the request for 
1.24 	replacement. An extreme hardship situation can only be found after the county documents 
1.25 	the existence of unmet medical needs that cannot be addressed by any other alternatives;
2.1 	~~(b)~~ (2) to certify or license new beds in a new facility that is to be operated by the 
2.2 	commissioner of veterans affairs or when the costs of constructing and operating the new 
2.3 	beds are to be reimbursed by the commissioner of veterans affairs or the United States 
2.4 	Veterans Administration;
2.5 	~~(c)~~ (3) to license or certify beds in a facility that has been involuntarily delicensed 
2.6 	or decertified for participation in the medical assistance program, provided that an 
2.7 	application for relicensure or recertification is submitted to the commissioner within 120 
2.8 	days after delicensure or decertification;
2.9 	~~(d)~~ (4) to certify two existing beds in a facility with 66 licensed beds on January 1, 
2.10 	1994, that had an average occupancy rate of 98 percent or higher in both calendar years 
2.11 	1992 and 1993, and which began construction of four attached assisted living units in 
2.12 	April 1993; ~~or~~
2.13 	~~(e)~~ (5) to certify four existing beds in a facility in Winona with 139 beds, of which 
2.14 	129 beds are certified~~.~~; or
2.15 	(6) to approve a project involving the establishment of a new facility in Hennepin or 
2.16 	Dakota County that the legislature hereby determines to be uniquely and urgently needed 
2.17 	and feasible and that is demonstrated by the project applicant to meet the following criteria:
2.18 	(i) the facility will operate primarily to serve persons with eating disorders;
2.19 	(ii) the facility will be licensed and certified for no more than 30 beds;
2.20 	(iii) the facility will be owned either by a nonprofit corporation that is exempt from 
2.21 	income tax pursuant to United States Code, title 26, section 501(c)(3) or by an entity that 
2.22 	is a related organization of a nonprofit corporation exempt from income tax pursuant 
2.23 	to United States Code, section 501(c)(3);
2.24 	(iv) the entity owning the facility, or a related organization of the entity, operates a 
2.25 	hospital located in Hennepin County; and
2.26 	(v) the entity owning the facility, or a related organization of the entity, will furnish a 
2.27 	continuum of services to persons with eating disorders, including acute inpatient hospital 
2.28 	and ambulatory services.
2.29 	(b) The exception available under paragraph (a), clause (6), is limited to the 
2.30 	establishment of one new facility. Between June 30 and September 30 of each year until 
2.31 	the commissioner issues an order approving an application under this paragraph, any 
2.32 	entity that:
2.33 	(i) has a plan for a new facility; and 
2.34 	(ii) desires to establish a new facility must submit an application to the commissioner 
2.35 	for an exception to subdivision 2 according to paragraph (a), clause (6). The application 
2.36 	must contain the plan and any additional relevant evidence not contained in the plan 
3.1 	that is supportive of the application and demonstrates evidence of compliance with the 
3.2 	criteria specified in paragraph (a), clause (6).
3.3 	(c) If there is only one applicant, the commissioner shall review the application 
3.4 	to determine compliance with the criteria. If the commissioner determines that the 
3.5 	application complies with the criteria, the commissioner shall issue an order approving the 
3.6 	application. An applicant aggrieved by an order issued by the commissioner concerning 
3.7 	the applicant's application may request that the commissioner initiate a contested case 
3.8 	proceeding under sections 14.57 to 14.62. Judicial review of the final decision of the 
3.9 	commissioner shall be governed by chapter 14.
3.10 	(d) If there is more than one applicant during any period between June 30 and 
3.11 	September 30, the commissioner shall determine which applications comply with the 
3.12 	criteria. If more than one application complies with the criteria, the commissioner 
3.13 	shall determine which applicant would best satisfy the criteria established in paragraph 
3.14 	(a), clause (6). The commissioner shall make this determination by order following a 
3.15 	hearing as provided in this paragraph. This hearing shall not constitute or be considered 
3.16 	a contested case hearing under chapter 14 and shall be conducted solely under the 
3.17 	procedures specified in this paragraph. The hearing shall commence after 90 days' 
3.18 	notice to the applicants is given by the commissioner. The hearing may be conducted 
3.19 	by the commissioner or by a person designated by the commissioner, who may be an 
3.20 	administrative law judge. The purpose of the hearing shall be to receive evidence to assist 
3.21 	the commissioner in determining which applicant best meets the criteria in paragraph (a), 
3.22 	clause (6), item (ii). The parties to the hearing shall consist only of those applicants 
3.23 	who have submitted a completed application that the commissioner has determined 
3.24 	would be in the public interest. Each applicant shall have the right to be represented by 
3.25 	counsel, to present evidence deemed relevant by the commissioner, and to examine and 
3.26 	cross-examine witnesses. Persons who are not parties to the proceeding but who wish to 
3.27 	present comments or submit information may do so in the manner determined by the 
3.28 	commissioner or the commissioner's designee. Any person who is not a party shall have 
3.29 	no right to examine or cross-examine witnesses. The commissioner shall issue an order 
3.30 	approving an application within 30 days following the closing of the record of the hearing. 
3.31 	The commissioner's order shall include a statement of the reasons the application best 
3.32 	meets the criteria of paragraph (a), clause (6). Any applicant aggrieved by an order issued 
3.33 	by the commissioner under this paragraph may seek judicial review of the final decision of 
3.34 	the commissioner under sections 14.63 to 14.68.