1.1.................... moves to amend S.F. No. 800, the first unofficial engrossment, as follows:
1.2Page 116, after line 29, insert:

1.3    "Sec. .... [256B.4916] DISABILITY WAIVER REIMBURSEMENT RATE
1.4ADJUSTMENTS.
1.5    Subdivision 1. Historical rate. The commissioner of human services shall adjust the
1.6historical rates calculated in section 256B.4913, subdivision 4a, paragraph (b), in effect
1.7during the banding period under section 256B.4913, subdivision 4a, paragraph (a), for each
1.8reimbursement rate adjustment under section 256B.4919; Laws 2013, chapter 108, article
1.97, sections 34 and 60; and Laws 2014, chapter 312, article 27, sections 57 and 75.
1.10    Subd. 2. Disability waiver rates system. The commissioner shall adjust the rates
1.11calculated in sections 256B.4914, subdivision 6, paragraphs (b) and (c); 256B.4914,
1.12subdivision 7; 256B.4914, subdivision 8; and 256B.4914, subdivision 9, for each
1.13reimbursement rate adjustment under Laws 2013, chapter 108, article 7, sections 34 and
1.1460; and Laws 2014, chapter 312, article 27, sections 57 and 75.
1.15EFFECTIVE DATE.This section is effective the day following final enactment.

1.16    Sec. .... [256B.4919] HOME AND COMMUNITY-BASED SERVICE PROVIDER
1.17RATE AND GRANT ADJUSTMENTS.
1.18    Subdivision 1. Definitions. (a) For the purposes of this section, the terms in this
1.19subdivision have the meaning given, unless otherwise provided for in this section.
1.20(b) "Employee" means a person directly employed by a provider and who provides direct
1.21care to an individual. Employee does not include:
1.22(1) a person employed in the central office of a corporation or entity that has an ownership
1.23interest in the provider or exercises control over the provider;
2.1(2) a person paid by the provider under a management contract;
2.2(3) a person employed by a provider that has less than five percent of the provider's
2.3direct care employees providing services impacted by rate increases under subdivision 2;
2.4or
2.5(4) a person employed by a county, except for a county employee providing services
2.6under paragraph (d), clause (1).
2.7(c) "Rates" means the payments made by the commissioner of human services for
2.8services. Rates includes reimbursement rates, rate limits, individual limits, grants, or
2.9allocations, as applicable.
2.10(d) "Services" refers to:
2.11(1) home and community-based services that have payment rates determined under
2.12section 256B.4914;
2.13(2) nursing services and home health services under section 256B.0625, subdivision 6a;
2.14(3) personal care services and qualified professional supervision of personal care services
2.15under section 256B.0625, subdivisions 6a and 19a;
2.16(4) home care nursing services under section 256B.0625, subdivision 7;
2.17(5) community first services and supports under section 256B.85;
2.18(6) essential community supports under section 256B.0922;
2.19(7) day training and habilitation services for adults with developmental disabilities under
2.20sections 252.41 to 252.46, including the additional cost to counties of the rate adjustments
2.21on day training and habilitation services provided as a social service;
2.22(8) semi-independent living services under section 252.275;
2.23(9) consumer support grants under section 256.476;
2.24(10) housing access grants under section 256B.0658;
2.25(11) self-advocacy grants under Laws 2009, chapter 101;
2.26(12) deaf and hard-of-hearing grants, including community support services for deaf
2.27and hard-of-hearing adults with mental illness who use or wish to use sign language as their
2.28primary means of communication under section 256.01, subdivision 2;
2.29(13) deaf and hard-of-hearing grants under sections 256C.233, 256C.25, and 256C.261;
2.30(14) employment support grants under section 256B.021, subdivision 6; and
3.1(15) grants provided to people who are eligible for the Housing Opportunities for Persons
3.2with AIDS Program under section 256B.492.
3.3    Subd. 2. Rate and grant adjustments. (a) For the rate period beginning July 1, 2017,
3.4the commissioner shall increase rates for services by an amount equal to four percent of
3.5rates in effect on June 30, 2017.
3.6(b) For the rate period beginning July 1, 2018, the commissioner shall increase rates for
3.7services by an amount equal to four percent of rates in effect on June 30, 2018.
3.8    Subd. 3. Wage increases. Except as provided in subdivision 6, a provider that receives
3.9a rate increase under subdivision 2 must increase the wages for employees employed on or
3.10after the effective date of each rate increase by a percentage equal to the percent increase
3.11in rates.
3.12    Subd. 4. Certification of wage increases. (a) A provider that receives a rate increase
3.13under subdivision 2 shall prepare and submit to the commissioner a certification that specifies
3.14that all employees received a wage increase consistent with the requirements of subdivision
3.153.
3.16(b) Within six months of the effective date of each rate increase, the provider shall post
3.17a copy of the certification required under paragraph (a). The provider must post the
3.18certification for at least six weeks in an area of the provider's operation to which all
3.19employees have access and must provide instructions for employees who do not believe
3.20they received the wage increases specified in the certification. The instructions must include
3.21a mailing address, e-mail address, and telephone number that an employee may use to
3.22contact the commissioner or the commissioner's representative.
3.23    Subd. 5. Employees represented by exclusive bargaining representative. For a
3.24provider that has employees who are represented by an exclusive bargaining representative,
3.25the provider shall obtain a letter of acceptance of the certification required under subdivision
3.264, relating to the members of the bargaining unit, signed by the exclusive bargaining agent.
3.27Upon receipt of the letter of acceptance, the provider shall be deemed to have met all the
3.28requirements of this section relating to the members of the bargaining unit. The provider
3.29shall submit the letter of acceptance to the commissioner along with the certification required
3.30by subdivision 4.
3.31    Subd. 6. Public employees under collective bargaining agreement. For public
3.32employees under a collective bargaining agreement, the increases for wages are available
3.33and wages may be increased, but only to the extent that the wage increases comply with
3.34laws governing public employees' collective bargaining.
4.1    Subd. 7. Lead agency waiver budget allocations. On the effective date of each rate
4.2adjustment under subdivision 2, the commissioner shall adjust home and community-based
4.3waivered service budget allocations to lead agencies to reflect the rate adjustment.
4.4    Subd. 8. State grant contracts. The commissioner shall amend state grant contracts
4.5that include direct personnel-related grant expenditures to include an increased allocation
4.6for the portion of the contract related to employee wages. Grant contracts for wages for
4.7direct care workers must be amended to pass through these adjustments within 60 days of
4.8the effective date of each rate adjustment under subdivision 2 and must be retroactive to its
4.9effective date.
4.10    Subd. 9. Managed care and county-based purchasing plans. The commissioner shall
4.11adjust on the effective date of each rate adjustment under subdivision 2 the capitation rates
4.12paid to managed care plans and county-based purchasing plans under section 256B.69 to
4.13reflect each rate adjustment for the services eligible for rate adjustments under this section.
4.14A managed care plan or county-based purchasing plan receiving state payments for these
4.15services must include the increase in their payments to providers.
4.16    Subd. 10. Consumer-directed community supports. Counties shall increase the budget
4.17for each recipient of consumer-directed community supports by the amount of each rate
4.18increase in subdivision 2 on its effective date.
4.19    Subd. 11. County and tribal contracts. County or tribal contracts for services must be
4.20amended to pass through each rate increase within 60 days of the effective date of the
4.21increase.
4.22    Subd. 12. Direct care worker health care coverage. For the rate period beginning July
4.231, 2019, and annually thereafter, the commissioner shall increase rates for each provider
4.24reimbursed under this section in an amount equal to that provider's annualized cost to provide
4.25single health care coverage for its employees during the second most recent rate period.
4.26    Subd. 13. Health carriers; administrators of self-insurance plans. (a) An assessment
4.27is imposed on:
4.28(1) insurance companies licensed under chapter 60A to offer, sell, or issue a policy of
4.29accident and sickness insurance as defined in section 62A.01;
4.30(2) nonprofit health service plan corporations operating under chapter 62C;
4.31(3) health maintenance organizations operating under chapter 62D;
4.32(4) fraternal benefit societies operating under chapter 64B;
5.1(5) joint self-insurance employee health plans operating under chapter 62H; and
5.2(6) administrators of self-insurance plans.
5.3The commissioner shall set the rate of the assessment at the lowest percentage of the total
5.4amount of claims paid by the corporation, organization, society, health plan, or administrator
5.5in the calendar year, with no deduction for claims wholly or partially reimbursed through
5.6stop-loss insurance, sufficient to provide the funding necessary to implement this section
5.7and section 256B.5012, subdivision 18. Any entity subject to an assessment under this
5.8paragraph shall not include the cost of the assessment in the premium rates charged to
5.9enrollees or in any administrative services fee charged to the sponsor of a self-insured plan.
5.10(b) For purposes of this subdivision "administrators of self-insurance plans" means
5.11entities that, for compensation:
5.12(1) process, review, or pay claims;
5.13(2) establish or operate funds and accounts; or
5.14(3) otherwise provide necessary administrative services in connection with the operation
5.15of self-insurance plans.
5.16(c) A healthy workforce account is created in the special revenue fund within the state
5.17treasury. The commissioner shall deposit all revenues, including penalties and interest,
5.18collected under this subdivision from the entities specified in paragraph (a) in the account.
5.19Refunds of overpayments of the assessment imposed by this subdivision must be paid from
5.20the healthy workforce account. There is annually appropriated from the healthy workforce
5.21account to the commissioner the amount necessary to make any refunds of the assessment
5.22imposed under this subdivision.
5.23EFFECTIVE DATE.This section is effective the day following final enactment."
5.24Page 117, after line 21, insert:

5.25    "Sec. .... Minnesota Statutes 2016, section 256B.5012, is amended by adding a subdivision
5.26to read:
5.27    Subd. 18. ICF/DD rate increases effective July 1, 2017, and July 1, 2018. (a) For the
5.28rate period beginning July 1, 2017, the commissioner shall increase operating payments for
5.29each facility reimbursed under this section by an amount equal to four percent of the operating
5.30payment rates in effect on June 30, 2017. For the rate period beginning July 1, 2018, the
5.31commissioner shall increase operating payments for each facility reimbursed under this
5.32section by an amount equal to four percent of the operating payment rates in effect on June
5.3330, 2018.
6.1(b) For each facility, the commissioner shall apply the rate increases based on occupied
6.2beds, using the percentage specified in this subdivision multiplied by the total payment rate,
6.3including the variable rate but excluding the property-related payment rate, in effect on the
6.4last day of the prior rate period. The total rate increase shall include the adjustment provided
6.5in section 256B.501, subdivision 12.
6.6(c) Except as provided under paragraph (g), facilities that receive a rate increase under
6.7this subdivision must increase by four percent the wages for employees employed on or
6.8after the effective date of each rate increase. For the purposes of this subdivision, "employee"
6.9means a person who is employed directly by the facility and who provides direct care to
6.10individuals. Employee does not mean a person who is employed in the central office of a
6.11corporation or entity that has an ownership interest in the facility or exercises control over
6.12the facility, nor a person who is paid by the facility under a management contract.
6.13(d) A facility that receives a rate adjustment under paragraph (a) shall prepare and submit
6.14to the commissioner a certification that all employees received a wage increase consistent
6.15with the requirements of paragraph (c).
6.16(e) Within six months of the effective date of each rate adjustment, the facility shall post
6.17a copy of the certification required under paragraph (d). The facility must post the
6.18certification for at least six weeks in an area of the facility's operation to which all employees
6.19have access and must provide instructions for employees who do not believe they received
6.20the wage increases specified in the certification. The instructions must include a mailing
6.21address, e-mail address, and telephone number that an employee may use to contact the
6.22commissioner or the commissioner's representative.
6.23(f) For a facility that has employees represented by an exclusive bargaining representative,
6.24the provider shall obtain a letter of acceptance of the certification required under paragraph
6.25(d), relating to the members of the bargaining unit, signed by the exclusive bargaining agent.
6.26Upon receipt of the letter of acceptance, the facility shall be deemed to have met all the
6.27requirements of this subdivision relating to the members of the bargaining unit. The facility
6.28shall submit the letter of acceptance to the commissioner along with the certification as
6.29required by paragraph (d).
6.30(g) For public employees under a collective bargaining agreement, the increases for
6.31wages are available and pay rates may be increased, but only to the extent that the pay rate
6.32increases comply with laws governing public employees' collective bargaining.
6.33(h) The commissioner shall amend state grant contracts that include direct
6.34personnel-related grant expenditures to include an increased allocation for the portion of
7.1the contract related to employee wages. Grant contracts for wages for direct care workers
7.2must be amended to pass through these adjustments within 60 days of the effective date of
7.3the increase and must be retroactive to the date of the effective date of the increase.
7.4(i) For the rate period beginning July 1, 2019, and annually thereafter, the commissioner
7.5shall increase operating payment rates for any provider reimbursed under this subdivision
7.6by an amount equal to the provider's annualized cost to provide single health care coverage
7.7for its employees during the second most recent rate period.
7.8EFFECTIVE DATE.This section is effective the day following final enactment."
7.9Page 144, after line 18, insert:

7.10    "Sec. .... REVISOR'S INSTRUCTION.
7.11The revisor of statutes shall renumber the provisions of Minnesota Statutes listed in
7.12column A to the references listed in column B. The revisor shall also make necessary
7.13cross-reference changes in Minnesota Statutes and Minnesota Rules consistent with the
7.14renumbering.

7.15	Column A	Column B
7.16	256B.038	256B.4917
7.17	256B.765	256B.4918"

7.18Page 333, after line 22, insert:

7.19 7.20 7.21

"State Government Special Revenue Fund

70,652,000

165,999,000"

7.22Page 335, after line 3, insert:
7.23"(e) Home and Community-Based Services
7.24Rate Increase. $70,652,000 in fiscal year
7.252018 and $165,999,000 in fiscal year 2019 are
7.26from the state government special revenue
7.27fund healthy workforce account for rate
7.28increases under Minnesota Statutes, sections
7.29256B.4919 and 256B.5012, subdivision 18."
7.30Page 335, line 4, delete "(e)" and insert "(f)"
7.31Adjust amounts accordingly
7.32Renumber the sections in sequence and correct the internal references
7.33Amend the title accordingly