1.1                          A bill for an act 
  1.2             relating to human services; providing a six percent 
  1.3             rate increase for nursing facilities, intermediate 
  1.4             care facilities for persons with mental retardation, 
  1.5             and other programs; appropriating money; amending 
  1.6             Minnesota Statutes 2000, sections 256B.431, by adding 
  1.7             a subdivision; and 256B.501, by adding a subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 256B.431, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 31.  [NURSING FACILITY RATE INCREASES BEGINNING JULY 
  1.12  1, 2001, AND JULY 1, 2002.] (a) For the rate years beginning 
  1.13  July 1, 2001, and July 1, 2002, the commissioner shall make 
  1.14  available to each nursing facility reimbursed under this section 
  1.15  or section 256B.434 an adjustment equal to six percent of the 
  1.16  total operating payment rate.  The operating payment rates in 
  1.17  effect on June 30, 2001, and June 30, 2002, respectively, shall 
  1.18  include the adjustment in subdivision 2i, paragraph (c). 
  1.19     (b) Eighty percent of the adjustment must be used to 
  1.20  increase the wages and benefits, including health insurance, of 
  1.21  all employees except management fees, the administrator, and 
  1.22  central office staff and to pay associated costs for FICA, the 
  1.23  Medicare tax, workers' compensation premiums, and federal and 
  1.24  state unemployment insurance. 
  1.25     Money received by a facility as a result of the additional 
  1.26  rate increase provided under this paragraph shall be used only 
  2.1   for wage increases implemented on or after July 1, 2001, or July 
  2.2   1, 2002, respectively, and shall not be used for wage increases 
  2.3   implemented prior to those dates. 
  2.4      (c) Ten percent of the adjustment must be used for employee 
  2.5   recruitment, training, transportation, and administration. 
  2.6      (d) Ten percent of the adjustment may be used for other 
  2.7   operating costs. 
  2.8      (e) A nursing facility may apply for the 
  2.9   compensation-related payment rate adjustment calculated under 
  2.10  paragraph (b).  The application must be made to the commissioner 
  2.11  and contain a plan by which the nursing facility will distribute 
  2.12  the compensation-related portion of the payment rate adjustment 
  2.13  to employees of the nursing facility.  For nursing facilities in 
  2.14  which the employees are represented by an exclusive bargaining 
  2.15  representative, an agreement negotiated and agreed to by the 
  2.16  employer and the exclusive bargaining representative constitutes 
  2.17  the plan.  A negotiated agreement may constitute the plan only 
  2.18  if the agreement is finalized after the date of enactment of all 
  2.19  increases for the rate year.  The commissioner shall review the 
  2.20  plan to ensure that the payment rate adjustment per diem is used 
  2.21  as provided in paragraph (b).  To be eligible, a facility must 
  2.22  submit its plan for the compensation distribution by December 31 
  2.23  each year.  If a facility's plan for compensation distribution 
  2.24  is effective for its employees after July 1 of the year that the 
  2.25  funds are available, the payment rate adjustment per diem shall 
  2.26  be effective the same date as its plan. 
  2.27     (f) A copy of the approved distribution plan must be made 
  2.28  available to all employees.  This must be done by giving each 
  2.29  employee a copy or by posting it in an area of the nursing 
  2.30  facility to which all employees have access.  If an employee 
  2.31  does not receive the compensation adjustment described in their 
  2.32  facility's approved plan and is unable to resolve the problem 
  2.33  with the facility's management or through the employee's union 
  2.34  representative, the employee may contact the commissioner at an 
  2.35  address or phone number provided by the commissioner and 
  2.36  included in the approved plan.  
  3.1      Sec. 2.  Minnesota Statutes 2000, section 256B.501, is 
  3.2   amended by adding a subdivision to read: 
  3.3      Subd. 14.  [ICF/MR RATE INCREASES BEGINNING OCTOBER 1, 
  3.4   2000, AND JANUARY 1, 2002.] (a) For the rate years beginning 
  3.5   October 1, 2000, and January 1, 2002, the commissioner shall 
  3.6   make available to each facility reimbursed under this section, 
  3.7   section 256B.5011, and Laws 1993, First Special Session chapter 
  3.8   1, article 4, section 11, an adjustment to the total operating 
  3.9   payment rate of six percent. 
  3.10     (b) Eighty percent of the adjustment shall be used to 
  3.11  increase the wages and benefits, including health insurance, of 
  3.12  all employees except administrative and central office employees 
  3.13  and to pay associated costs for FICA, the Medicare tax, workers' 
  3.14  compensation premiums, and federal and state unemployment 
  3.15  insurance provided that this increase shall be used only for 
  3.16  wage increases implemented on or after the first day of the 
  3.17  fiscal year in which the increase is available, and shall not be 
  3.18  used for wage increases implemented prior to that date. 
  3.19     (c) Ten percent of the adjustment must be used for employee 
  3.20  recruitment, training, transportation, and administration. 
  3.21     (d) Ten percent of the adjustment may be used for other 
  3.22  operating costs. 
  3.23     (e) For each facility, the commissioner shall determine the 
  3.24  payment rate adjustment using the percentage specified in 
  3.25  paragraph (a) multiplied by the total operating payment rate in 
  3.26  effect on the last day of the prior rate year, and dividing the 
  3.27  resulting amount by the facility's actual resident days.  The 
  3.28  total operating payment rate shall include the adjustment 
  3.29  provided in subdivision 12. 
  3.30     (f) Any facility whose payment rates are governed by 
  3.31  closure agreements, receivership agreements, or Minnesota Rules, 
  3.32  part 9553.0075, is not eligible for an adjustment otherwise 
  3.33  granted under this subdivision.  
  3.34     (g) A facility may apply for the compensation-related 
  3.35  payment rate adjustment calculated under paragraph (b).  The 
  3.36  application must be made to the commissioner and contain a plan 
  4.1   by which the facility will distribute the compensation-related 
  4.2   portion of the payment rate adjustment to employees of the 
  4.3   facility.  For facilities in which the employees are represented 
  4.4   by an exclusive bargaining representative, an agreement 
  4.5   negotiated and agreed to by the employer and the exclusive 
  4.6   bargaining representative constitutes the plan.  A negotiated 
  4.7   agreement may constitute the plan only if the agreement is 
  4.8   finalized after the date of enactment of all rate increases for 
  4.9   the rate year.  The commissioner shall review the plan to ensure 
  4.10  that the payment rate adjustment per diem is used as provided in 
  4.11  this subdivision.  To be eligible, a facility must submit its 
  4.12  plan for the compensation distribution by December 31, 2000, and 
  4.13  March 31, 2002, respectively.  If a facility's plan for 
  4.14  compensation distribution is effective for its employees after 
  4.15  the first day of the applicable rate year that the funds are 
  4.16  available, the payment rate adjustment per diem shall be 
  4.17  effective the same date as its plan. 
  4.18     (h) A copy of the approved distribution plan must be made 
  4.19  available to all employees.  This must be done by giving each 
  4.20  employee a copy or by posting it in an area of the facility to 
  4.21  which all employees have access.  If an employee does not 
  4.22  receive the compensation adjustment described in their 
  4.23  facility's approved plan and is unable to resolve the problem 
  4.24  with the facility's management or through the employee's union 
  4.25  representative, the employee may contact the commissioner at an 
  4.26  address or telephone number provided by the commissioner and 
  4.27  included in the approved plan. 
  4.28     Sec. 3.  [PROVIDER RATE INCREASES.] 
  4.29     (a) The commissioner shall increase reimbursement rates by 
  4.30  six percent each year of the biennium for the providers listed 
  4.31  in paragraph (b).  The increases shall be effective for services 
  4.32  rendered on or after July 1 of each year. 
  4.33     (b) The rate increases described in this section shall be 
  4.34  provided to home and community-based waivered services for 
  4.35  persons with mental retardation or related conditions under 
  4.36  Minnesota Statutes, section 256B.501; home and community-based 
  5.1   waivered services for the elderly under Minnesota Statutes, 
  5.2   section 256B.0915; waivered services under community 
  5.3   alternatives for disabled individuals under Minnesota Statutes, 
  5.4   section 256B.49; community alternative care waivered services 
  5.5   under Minnesota Statutes, section 256B.49; traumatic brain 
  5.6   injury waivered services under Minnesota Statutes, section 
  5.7   256B.49; nursing services and home health services under 
  5.8   Minnesota Statutes, section 256B.0625, subdivision 6a; personal 
  5.9   care services and nursing supervision of personal care services 
  5.10  under Minnesota Statutes, section 256B.0625, subdivision 19a; 
  5.11  private-duty nursing services under Minnesota Statutes, section 
  5.12  256B.0625, subdivision 7; day training and habilitation services 
  5.13  for adults with mental retardation or related conditions under 
  5.14  Minnesota Statutes, sections 252.40 to 252.46; alternative care 
  5.15  services under Minnesota Statutes, section 256B.0913; adult 
  5.16  residential program grants under Minnesota Rules, parts 
  5.17  9535.2000 to 9535.3000; adult and family community support 
  5.18  grants under Minnesota Rules, parts 9535.1700 to 9535.1760; 
  5.19  semi-independent living services under Minnesota Statutes, 
  5.20  section 252.275, including SILS funding under county social 
  5.21  services grants formerly funded under Minnesota Statutes, 
  5.22  chapter 256I; community support services for deaf and 
  5.23  hard-of-hearing adults with mental illness who use or wish to 
  5.24  use sign language as their primary means of communication; and 
  5.25  living skills training programs for persons with intractable 
  5.26  epilepsy who need assistance in the transition to independent 
  5.27  living. 
  5.28     (c) Providers that receive a rate increase under this 
  5.29  section shall use 80 percent of the additional revenue to 
  5.30  increase the wages and benefits, including health insurance, of 
  5.31  all employees other than the administrator and central office 
  5.32  staff and to pay associated costs for FICA, the Medicare tax, 
  5.33  workers' compensation premiums, and federal and state 
  5.34  unemployment insurance; ten percent of the additional revenue 
  5.35  for employee recruitment, training, transportation, and 
  5.36  administration; and ten percent for other operations costs.  For 
  6.1   public employees, the portion of this increase reserved to 
  6.2   increase compensation for certain staff shall be available and 
  6.3   pay rates shall be increased only to the extent that they comply 
  6.4   with laws governing public employees collective bargaining.  
  6.5   Money for wage increases received by a provider as a result of 
  6.6   the additional rate increase described in this paragraph shall 
  6.7   be used only for wage increases implemented on or after the 
  6.8   first day of the state fiscal year in which the increase is 
  6.9   available and shall not be used for wage increases implemented 
  6.10  prior to that date. 
  6.11     (d) A copy of the provider's plan for complying with 
  6.12  paragraph (c) must be made available to all employees.  This 
  6.13  must be done by giving each employee a copy or by posting it in 
  6.14  an area of the provider's operation to which all employees have 
  6.15  access.  If an employee does not receive the compensation 
  6.16  adjustment described in the plan and is unable to resolve the 
  6.17  problem with the provider, the employee may contact the 
  6.18  employee's union representative.  If the employee is not covered 
  6.19  by a collective bargaining agreement, the employee may contact 
  6.20  the commissioner at a phone number provided by the commissioner 
  6.21  and included in the provider's plan. 
  6.22     Sec. 4.  [APPROPRIATION.] 
  6.23     $....... is appropriated from the general fund to the 
  6.24  commissioner of human services for the biennium beginning July 
  6.25  1, 2001, for the purposes of sections 1 to 3.