.................... moves to amend H. F. No. 721, the first engrossment, as follows:
Page 4, delete section 4 and insert:
"Sec. 3. Minnesota Statutes 2006, section 256B.434, is amended by adding a
subdivision to read:
1.5 Subd. 19. Nursing facility rate increases beginning October 1, 2007, and
1.6October 1, 2008. (a) For the rate year beginning October 1, 2007, the commissioner
1.7shall make available to each nursing facility reimbursed under this section operating
1.8payment rate adjustments equal to five percent of the operating payment rates in effect
1.9on September 30, 2007. For the rate year beginning October 1, 2008, the commissioner
1.10shall make available to each nursing facility reimbursed under this section operating
1.11payment rate adjustments equal to five percent of the operating payment rates in effect
1.12on September 30, 2008.
1.13 (b) 75 percent of the money resulting from the rate adjustments under paragraph (a)
1.14must be used for increases in compensation-related costs of eligible employees.
1.15 (c) For purposes of this subdivision, eligible employees includes all persons directly
1.16employed by the nursing facility on or after the effective date of the rate adjustments,
1.18 (1) persons employed in the central office of a corporation that has an ownership
1.19interest in the nursing facility or exercises control over the nursing facility; and
1.20 (2) persons paid by the nursing facility under a management contract.
1.21 (d) The commissioner shall allow as compensation-related costs all costs for:
1.22 (1) wages and salaries;
1.23 (2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers'
1.25 (3) the employer's share of health and dental insurance, life insurance, disability
1.26insurance, long-term care insurance, uniform allowance, and pensions; and
1.27 (4) other benefits provided, subject to the approval of the commissioner.
2.1 (e) The portion of the rate adjustments under paragraph (a) that is not subject to the
2.2requirements in paragraph (b) shall be provided to nursing facilities effective October
2.31 of each year.
2.4 (f) Nursing facilities may apply for the portion of the rate adjustments under
2.5paragraph (a) that is subject to the requirements in paragraph (b). The application
2.6must be submitted to the commissioner within six months of the effective date of the
2.7rate adjustments, and the nursing facility must provide additional information required
2.8by the commissioner within nine months of the effective date of the rate adjustments.
2.9The commissioner must respond to all applications within three weeks of receipt.
2.10The commissioner may waive the deadlines in this paragraph under extraordinary
2.11circumstances, to be determined at the sole discretion of the commissioner. The
2.12application must contain:
2.13 (1) an estimate of the amounts of money that must be used as specified in paragraph
2.15 (2) a detailed distribution plan specifying the allowable compensation-related
2.16increases the nursing facility will implement to use the funds available in clause (1);
2.17 (3) a description of how the nursing facility will notify eligible employees of
2.18the contents of the approved application, which must provide for giving each eligible
2.19employee a copy of the approved application, excluding the information required in clause
2.20(1), or posting a copy of the approved application, excluding the information required in
2.21clause (1), for a period of at least six weeks in an area of the nursing facility to which all
2.22eligible employees have access; and
2.23 (4) instructions for employees who believe they have not received the
2.24compensation-related increases specified in clause (2), as approved by the commissioner,
2.25and which must include a mailing address, e-mail address, and the telephone number
2.26that may be used by the employee to contact the commissioner or the commissioner's
2.28 (g) The commissioner shall ensure that cost increases in distribution plans under
2.29paragraph (f), clause (2), that may be included in approved applications, comply with
2.30requirements in clauses (1) to (4):
2.31 (1) costs to be incurred during the applicable rate year resulting from wage and
2.32salary increases implemented prior to the first day of the nursing facility's payroll period
2.33that includes October 1 of each year shall be allowed if they were not used in a prior
3.1 (2) a portion of the costs resulting from tenure-related wage or salary increases may
3.2be considered to be allowable compensation-related increases, in accordance with existing
3.3formulas that the commissioner shall provide;
3.4 (3) the annualized amount of increases in costs for the employer's share of health
3.5and dental insurance, life insurance, disability insurance, and workers' compensation shall
3.6be allowable compensation-related increases if they are effective on or after April 1 of
3.7the year in which the rate adjustments are effective and prior to April 1 of the following
3.9 (4) for nursing facilities in which employees are represented by an exclusive
3.10bargaining representative, an agreement negotiated and agreed to by the employer and
3.11the exclusive bargaining representative constitutes the plan. The commissioner shall not
3.12review and shall not require changes to the portions of the plan covered by collective
3.13bargaining agreements. A negotiated agreement may constitute the plan only if the
3.14agreement is finalized after the date of enactment of all increases for the rate year and
3.15signed by both parties prior to submission to the commissioner.
3.16 (h) The commissioner shall review applications received under paragraph (f) and
3.17shall provide the portion of the rate adjustments under paragraph (b) if the requirements of
3.18this subdivision have been met. The rate adjustments shall be effective October 1 of each
3.19year. Notwithstanding paragraph (a), if the approved application distributes less money
3.20than is available, the amount of the rate adjustment shall be reduced so that the amount of
3.21money made available is equal to the amount to be distributed.
Amend the title accordingly