1.1.................... moves to amend S.F. No. 4410, the first unofficial engrossment, as follows:
1.2Page 444, after line 10, insert:

1.3    "Sec. ... Minnesota Statutes 2021 Supplement, section 256B.4914, subdivision 5, as
1.4amended by Laws 2022, chapter 33, section 1, is amended to read:
1.5    Subd. 5. Base wage index; establishment and updates. (a) The base wage index is
1.6established to determine staffing costs associated with providing services to individuals
1.7receiving home and community-based services. For purposes of calculating the base wage,
1.8Minnesota-specific wages taken from job descriptions and standard occupational
1.9classification (SOC) codes from the Bureau of Labor Statistics as defined in the Occupational
1.10Handbook must be used.
1.11(b) The commissioner shall update the base wage index in subdivision 5a, publish these
1.12updated values, and load them into the rate management system as follows:
1.13(1) on January 1, 2022, based on wage data by SOC from the Bureau of Labor Statistics
1.14available as of December 31, 2019;
1.15(2) on January 1, 2023, based on wage data by SOC from the Bureau of Labor Statistics
1.16available as of December 31, 2020;
1.17(3) on November 1, 2024 January 1, 2025, based on wage data by SOC from the Bureau
1.18of Labor Statistics available as of December 31, 2021 2022; and
1.19(3) (4) on July 1, 2026 January 1, 2027, and every two years thereafter, based on wage
1.20data by SOC from the Bureau of Labor Statistics available 30 24 months and one day prior
1.21to the scheduled update.
2.1EFFECTIVE DATE.This section is effective January 1, 2023, or upon federal approval,
2.2whichever is later. The commissioner of human services shall notify the revisor of statutes
2.3when federal approval is obtained."
2.4Page 459, after line 14, insert:

2.5    "Sec. ... Laws 2022, chapter 33, section 1, subdivision 5b, is amended to read:
2.6    Subd. 5b. Standard component value adjustments. The commissioner shall update
2.7the client and programming support, transportation, and program facility cost component
2.8values as required in subdivisions 6 to 9a for changes in the Consumer Price Index. The
2.9commissioner shall adjust these values higher or lower, publish these updated values, and
2.10load them into the rate management system as follows:
2.11(1) on January 1, 2022, by the percentage change in the CPI-U from the date of the
2.12previous update to the data available on December 31, 2019;
2.13(2) on January 1, 2023, by the percentage change in the CPI-U from the date of previous
2.14update to the data available on December 31, 2021;
2.15(3) on November 1, 2024 January 1, 2025, by the percentage change in the CPI-U from
2.16the date of the previous update to the data available as of December 31, 2021 2023; and
2.17(3) (4) on July 1, 2026 January 1, 2027, and every two years thereafter, by the percentage
2.18change in the CPI-U from the date of the previous update to the data available 30 12 months
2.19and one day prior to the scheduled update.
2.20EFFECTIVE DATE.This section is effective January 1, 2023, or upon federal approval,
2.21whichever is later. The commissioner of human services shall notify the revisor of statutes
2.22when federal approval is obtained.

2.23    Sec. ... Laws 2022, chapter 33, section 1, subdivision 5c, is amended to read:
2.24    Subd. 5c. Removal of after-framework adjustments. Any rate adjustments applied to
2.25the service rates calculated under this section outside of the cost components and rate
2.26methodology specified in this section shall be removed from rate calculations upon
2.27implementation of the updates under subdivisions 5 and, 5b, and 5f.
2.28EFFECTIVE DATE.This section is effective January 1, 2023, or upon federal approval,
2.29whichever is later. The commissioner of human services shall notify the revisor of statutes
2.30when federal approval is obtained.

3.1    Sec. ... Laws 2022, chapter 33, section 1, subdivision 5d, is amended to read:
3.2    Subd. 5d. Unavailable data for updates and adjustments. If Bureau of Labor Statistics
3.3occupational codes or Consumer Price Index items specified in subdivisions 5 or, 5b, or 5f
3.4are unavailable in the future, the commissioner shall recommend to the legislature codes or
3.5items to update and replace.
3.6EFFECTIVE DATE.This section is effective January 1, 2023, or upon federal approval,
3.7whichever is later. The commissioner of human services shall notify the revisor of statutes
3.8when federal approval is obtained.

3.9    Sec. ... Laws 2022, chapter 33, section 1, subdivision 5e, is amended to read:
3.10    Subd. 5e. Inflationary update spending requirement. (a) At least 80 percent of the
3.11marginal increase in revenue from the rate adjustment applied to the service rates calculated
3.12under subdivisions 5 and 5b beginning on January 1, 2022, for services rendered between
3.13January 1, 2022, and March 31, 2024, must be used to increase compensation-related costs
3.14for employees directly employed by the program on or after January 1, 2022.
3.15(b) For the purposes of this subdivision, compensation-related costs include:
3.16(1) wages and salaries;
3.17(2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment
3.18taxes, workers' compensation, and mileage reimbursement;
3.19(3) the employer's paid share of health and dental insurance, life insurance, disability
3.20insurance, long-term care insurance, uniform allowance, pensions, and contributions to
3.21employee retirement accounts; and
3.22(4) benefits that address direct support professional workforce needs above and beyond
3.23what employees were offered prior to January 1, 2022 implementation of the applicable
3.24rate adjustment, including retention and recruitment bonuses and tuition reimbursement.
3.25    (c) Compensation-related costs for persons employed in the central office of a corporation
3.26or entity that has an ownership interest in the provider or exercises control over the provider,
3.27or for persons paid by the provider under a management contract, do not count toward the
3.2880 percent requirement under this subdivision.
3.29    (d) A provider agency or individual provider that receives a rate subject to the
3.30requirements of this subdivision shall prepare, and upon request submit to the commissioner,
3.31a distribution plan that specifies the amount of money the provider expects to receive that
3.32is subject to the requirements of this subdivision, including how that money was or will be
4.1distributed to increase compensation-related costs for employees. Within 60 days of final
4.2implementation of a rate adjustment subject to the requirements of this subdivision, the
4.3provider must post the distribution plan and leave it posted for a period of at least six months
4.4in an area of the provider's operation to which all direct support professionals have access.
4.5The posted distribution plan must include instructions regarding how to contact the
4.6commissioner or commissioner's representative if an employee believes the employee has
4.7not received the compensation-related increase described in the plan.
4.8    (e) This subdivision expires June 30, 2024 At least 80 percent of the marginal increase
4.9in revenue from the rate adjustments applied to service rates calculated under subdivisions
4.105, 5b, and 5f beginning on January 1, 2023, and on January 1, 2025, for services rendered
4.11on or after those dates must be used to increase compensation-related costs for employees
4.12directly employed by the program.
4.13EFFECTIVE DATE.This section is effective January 1, 2023, or upon federal approval,
4.14whichever is later. The commissioner of human services shall notify the revisor of statutes
4.15when federal approval is obtained.

4.16    Sec. ... Laws 2022, chapter 33, section 1, is amended by adding a subdivision to read:
4.17    Subd. 5f. Competitive workforce factor adjustments. (a) On January 1, 2023, and
4.18every two years thereafter, the commissioner shall update the competitive workforce factor
4.19to equal the differential between:
4.20(1) the most recently available wage data by SOC code for the weighted average wage
4.21for direct care staff for residential services and direct care staff for day services; and
4.22(2) the most recently available wage data by SOC code of the weighted average wage
4.23of comparable occupations.
4.24(b) For each update of the competitive workforce factor, the update shall not decrease
4.25the competitive workforce factor by more than 2.0. If the competitive workforce factor is
4.26less than or equal to zero, then the competitive workforce factor is zero.
4.27EFFECTIVE DATE.This section is effective January 1, 2023, or upon federal approval,
4.28whichever is later. The commissioner of human services shall notify the revisor of statutes
4.29when federal approval is obtained."
4.30Page 460, after line 28, insert:

5.1    "Sec. ... Laws 2022, chapter 33, section 1, subdivision 10c, is amended to read:
5.2    Subd. 10c. Reporting and analysis of competitive workforce factor. (a) Beginning
5.3February 1, 2021 2024, and every two years thereafter, the commissioner shall report to the
5.4chairs and ranking minority members of the legislative committees and divisions with
5.5jurisdiction over health and human services policy and finance an analysis of the competitive
5.6workforce factor.
5.7(b) The report must include recommendations to update the competitive workforce factor
5.8using:
5.9(1) the most recently available wage data by SOC code for the weighted average wage
5.10for direct care staff for residential services and direct care staff for day services;
5.11(2) the most recently available wage data by SOC code of the weighted average wage
5.12of comparable occupations; and
5.13(3) workforce data as required under subdivision 10b.
5.14    (c) The commissioner shall not recommend an increase or decrease of the competitive
5.15workforce factor from the current value by more than two percentage points. If, after a
5.16biennial analysis for the next report, the competitive workforce factor is less than or equal
5.17to zero, the commissioner shall recommend a competitive workforce factor of zero This
5.18subdivision expires upon submission of the calendar year 2030 report.
5.19EFFECTIVE DATE.This section is effective January 1, 2023, or upon federal approval,
5.20whichever is later. The commissioner of human services shall notify the revisor of statutes
5.21when federal approval is obtained."
5.22Page 465, after line 23, insert:

5.23    "Sec. ... DIRECTION TO COMMISSIONER OF HUMAN SERVICES;
5.24ADDITIONAL DWRS RATE INCREASES.
5.25    Subdivision 1. Additional rate increases. (a) In addition to the rate increases described
5.26in the amendments contained in this act to Minnesota Statutes, section 256B.4914, the
5.27commissioner shall further adjust the rates as described in paragraphs (b) to (f) until the net
5.28increase in the rates established under Minnesota Statutes, section 256B.4914, as amended
5.29in this act, and under this section are equivalent to a three-year appropriation of $253,001,000
5.30for fiscal years 2023, 2024, and 2025. The commissioner shall apply the rate changes in
5.31this section after applying other changes contained in this act. The commissioner shall apply
5.32the rate changes in this section in the order presented in the following paragraphs. If the
6.1three-year appropriation target is reached after applying the provisions of a paragraph, the
6.2commissioner shall not apply the provisions in the remaining paragraphs.
6.3(b) Notwithstanding Minnesota Statutes, section 256B.4914, subdivision 5, paragraph
6.4(b), clause (2), as added by amendment in this act, on January 1, 2023, the commissioner
6.5shall adjust the data used to update the base wage index by using up to the most recently
6.6available wage data by SOC code from the Bureau of Labor Statistics. If the estimated cost
6.7of fully implementing the rate adjustment in this paragraph exceeds the three-year
6.8appropriation target, the commissioner shall proportionately reduce the estimated change
6.9to the wage index to reach the target.
6.10(c) Notwithstanding Minnesota Statutes, section 256B.4914, subdivision 5b, clause (2),
6.11as added by amendment in this act, on January 1, 2023, the commissioner shall adjust the
6.12data used to update the client and programming support, transportation, and program facility
6.13cost component values by using up to the most recently available data. If the estimated cost
6.14of fully implementing the rate adjustment in this paragraph exceeds the three-year
6.15appropriation target, the commissioner shall proportionately reduce the estimated change
6.16to component values to reach the target.
6.17(d) Notwithstanding the provision in Minnesota Statutes, section 256B.4914, subdivision
6.185f, paragraph (a), as added by amendment in this act, requiring a biennial update of the
6.19competitive workforce factor, on January 1, 2024, the commissioner shall update the
6.20competitive workforce factor. If the estimated cost of fully implementing the rate adjustment
6.21in this paragraph exceeds the three-year appropriation target, the commissioner shall cap
6.22the increase in the competitive workforce factor to reach the target.
6.23(e) Notwithstanding the provision in Minnesota Statutes, section 256B.4914, subdivision
6.245, paragraph (b), as amended in this act, on January 1, 2024, the commissioner shall update
6.25the base wage index in Minnesota Statutes, section 256B.4914, subdivision 5a, based on
6.26the most recently available wage data by SOC from the Bureau of Labor Statistics. If the
6.27estimated cost of fully implementing the rate adjustment in this paragraph exceeds the
6.28three-year appropriation target, the commissioner shall proportionately reduce the estimated
6.29change to component values to reach the target.
6.30(f) Notwithstanding the provision in Minnesota Statutes, section 256B.4914, subdivision
6.315b, as amended in this act, on January 1, 2024, the commissioner shall update the client and
6.32programming support, transportation, and program facility cost component values based
6.33on the most recently available wage data by SOC from the Bureau of Labor Statistics. If
6.34the estimated cost of fully implementing the rate adjustment in this paragraph exceeds the
7.1three-year appropriation target, the commissioner shall proportionately reduce the estimated
7.2change to component values to reach the target.
7.3    Subd. 2. Spending requirements. A program or provider that receives a rate increase
7.4under this section is subject to the requirements of Minnesota Statutes, section 256B.4914,
7.5subdivision 5e."
7.6Page 826, line 17, delete "96,704,000" and insert "97,254,000"
7.7Page 827, line 13, delete "$9,679,000" and insert "$9,789,000"
7.8Page 832, line 28, delete "(75,208,000)" and insert "(69,562,000)"
7.9Page 854, line 2, delete "6,501,000" and insert "305,000"
7.10Renumber the sections in sequence and correct the internal references
7.11Amend the title accordingly