1.1    .................... moves to amend H. F. No. 3976, the delete everything amendment
1.2(H3976DE2), as follows:
1.3Page 41, after line 22, insert:

1.4    "Sec. 9. Minnesota Statutes 2007 Supplement, section 256B.434, subdivision 19,
1.5is amended to read:
1.6    Subd. 19. Nursing facility rate increases beginning October 1, 2007, and
1.7October 1, 2008. (a) For the rate year beginning October 1, 2007, the commissioner
1.8shall make available to each nursing facility reimbursed under this section operating
1.9payment rate adjustments equal to 1.87 percent of the operating payment rates in effect
1.10on September 30, 2007. For the rate year beginning October 1, 2008, the commissioner
1.11shall make available to each nursing facility reimbursed under this section, operating
1.12payment rate adjustments equal to 3.0 percent of the operating payment rates in effect
1.13on September 30, 2008.
1.14    (b) Seventy-five percent of the money resulting from the rate adjustment under
1.15paragraph (a) must be used for increases in compensation-related costs for employees
1.16directly employed by the nursing facility on or after the effective date of the rate
1.17adjustment, except:
1.18    (1) the administrator;
1.19    (2) persons employed in the central office of a corporation that has an ownership
1.20interest in the nursing facility or exercises control over the nursing facility; and
1.21    (3) persons paid by the nursing facility under a management contract.
1.22    (c) Two-thirds of the money available under paragraph (b) must be used for wage
1.23increases for all employees directly employed by the nursing facility on or after the
1.24effective date of the rate adjustment, except those listed in paragraph (b), clauses (1) to
1.25(3). The wage adjustment that employees receive under this paragraph must be paid as
1.26an equal hourly percentage wage increase for all eligible employees. All wage increases
1.27under this paragraph must be effective on the same date. Only costs associated with the
2.1portion of the equal hourly percentage wage increase that goes to all employees shall
2.2qualify under this paragraph. Costs associated with wage increases in excess of the
2.3amount of the equal hourly percentage wage increase provided to all employees shall be
2.4allowed only for meeting the requirements in paragraph (b). This paragraph shall not
2.5apply to employees covered by a collective bargaining agreement.
2.6    (d) The commissioner shall allow as compensation-related costs all costs for:
2.7    (1) wages and salaries;
2.8    (2) FICA taxes, Medicare taxes, state and federal unemployment taxes, and workers'
2.9compensation;
2.10    (3) the employer's share of health and dental insurance, life insurance, disability
2.11insurance, long-term care insurance, uniform allowance, and pensions; and
2.12    (4) other benefits provided, subject to the approval of the commissioner.
2.13    (e) (d) The portion of the rate adjustment under paragraph (a) that is not subject to
2.14the requirements in paragraphs paragraph (b) and (c) shall be provided to nursing facilities
2.15effective October 1, 2007, or October 1, 2008, as applicable.
2.16    (f) (e) Nursing facilities may apply for the portion of the rate adjustment under
2.17paragraph (a) that is subject to the requirements in paragraphs paragraph (b) and (c).
2.18The application must be submitted to the commissioner within six months of the
2.19effective date of the rate adjustment, and the nursing facility must provide additional
2.20information required by the commissioner within nine months of the effective date of
2.21the rate adjustment. The commissioner must respond to all applications within three
2.22weeks of receipt. The commissioner may waive the deadlines in this paragraph under
2.23extraordinary circumstances, to be determined at the sole discretion of the commissioner.
2.24The application must contain:
2.25    (1) an estimate of the amounts of money that must be used as specified in paragraphs
2.26(b) and (c);
2.27    (2) a detailed distribution plan specifying the allowable compensation-related and
2.28wage increases the nursing facility will implement to use the funds available in clause (1);
2.29    (3) a description of how the nursing facility will notify eligible employees of
2.30the contents of the approved application, which must provide for giving each eligible
2.31employee a copy of the approved application, excluding the information required in clause
2.32(1), or posting a copy of the approved application, excluding the information required in
2.33clause (1), for a period of at least six weeks in an area of the nursing facility to which all
2.34eligible employees have access; and
2.35    (4) instructions for employees who believe they have not received the
2.36compensation-related or wage increases specified in clause (2), as approved by the
3.1commissioner, and which must include a mailing address, e-mail address, and the
3.2telephone number that may be used by the employee to contact the commissioner or the
3.3commissioner's representative.
3.4    (g) (f) The commissioner shall ensure that cost increases in distribution plans under
3.5paragraph (f) (e), clause (2), that may be included in approved applications, comply with
3.6the following requirements:
3.7    (1) costs to be incurred during the applicable rate year resulting from wage and
3.8salary increases effective after October 1, 2006, and prior to the first day of the nursing
3.9facility's payroll period that includes October 1, 2007 of each year, shall be allowed if they
3.10were not used in the prior year's application;
3.11    (2) a portion of the costs resulting from tenure-related wage or salary increases
3.12may be considered to be allowable wage increases, according to formulas that the
3.13commissioner shall provide, where employee retention is above the average statewide
3.14rate of retention of direct care employees;
3.15    (3) the annualized amount of increases in costs for the employer's share of health
3.16and dental insurance, life insurance, disability insurance, and workers' compensation
3.17shall be allowable compensation-related increases if they are effective on or after April
3.181, 2007, of the year in which the rate adjustments are effective and prior to April 1, 2008
3.19of the following year; and
3.20    (4) for nursing facilities in which employees are represented by an exclusive
3.21bargaining representative, the commissioner shall approve the application only upon
3.22receipt of a letter of acceptance of the distribution plan, in regard to members of the
3.23bargaining unit, signed by the exclusive bargaining agent and dated after May 25, 2007.
3.24Upon receipt of the letter of acceptance, the commissioner shall deem all requirements of
3.25this section as having been met in regard to the members of the bargaining unit.
3.26    (h) The commissioner shall review applications received under paragraph (f) and
3.27shall provide the portion of the rate adjustment under paragraphs (b) and (c) if the
3.28requirements of this subdivision have been met. The rate adjustment shall be effective
3.29October 1. Notwithstanding paragraph (a), if the approved application distributes less
3.30money than is available, the amount of the rate adjustment shall be reduced so that the
3.31amount of money made available is equal to the amount to be distributed."
3.32Page 43, line 18, after the period insert "Minnesota Statutes 2007 Supplement,
3.33section 256.962, subdivision 5, is repealed."
3.34Page 48, after line 20, insert:
3.35"Nursing facility rate adjustment.
3.36$5,785,000 from the health care access fund
4.1is transferred to the general fund for nursing
4.2facility rate adjustments for fiscal year 2009,
4.3and $32,460,000 is transferred from the
4.4health care access fund to the general fund for
4.5the 2010-2011 biennium for that purpose."
4.6Renumber the sections in sequence and correct the internal references
4.7Amend the title accordingly
4.8Correct the totals and the summaries by fund accordingly