1.1                          A bill for an act 
  1.2             relating to human services; changing nursing facility 
  1.3             salary adjustment per diem; amending Minnesota 
  1.4             Statutes 1999 Supplement, section 256B.431, 
  1.5             subdivision 2i. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.8   256B.431, subdivision 2i, is amended to read: 
  1.9      Subd. 2i.  [OPERATING COSTS AFTER JULY 1, 1988.] (a)  
  1.10  [OTHER OPERATING COST LIMITS.] For rate years beginning on or 
  1.11  after July 1, 1989, the adjusted other operating cost limits 
  1.12  must be indexed as in Minnesota Rules, part 9549.0056, subparts 
  1.13  3 and 4.  For the rate period beginning October 1, 1992, and for 
  1.14  rate years beginning after June 30, 1993, the amount of the 
  1.15  surcharge under section 256.9657, subdivision 1, shall be 
  1.16  included in the plant operations and maintenance operating cost 
  1.17  category.  The surcharge shall be an allowable cost for the 
  1.18  purpose of establishing the payment rate. 
  1.19     (b)  [CARE-RELATED OPERATING COST LIMITS.] For rate years 
  1.20  beginning on or after July 1, 1989, the adjusted care-related 
  1.21  limits must be indexed as in Minnesota Rules, part 9549.0056, 
  1.22  subparts 1 and 2. 
  1.23     (c)  [SALARY ADJUSTMENT PER DIEM.] Effective July 1, 
  1.24  1998 2000, to June 30, 2000 2001, the commissioner shall make 
  1.25  available the salary adjustment per diem calculated in clause 
  2.1   (1) or (2) to the total operating cost payment rate of each 
  2.2   nursing facility reimbursed under this section or section 
  2.3   256B.434.  The salary adjustment per diem for each nursing 
  2.4   facility must be determined as follows:  
  2.5      (1) For each nursing facility that reports salaries for 
  2.6   registered nurses, licensed practical nurses, and aides, 
  2.7   orderlies and attendants separately, the commissioner shall 
  2.8   determine the salary adjustment per diem by multiplying the 
  2.9   total salaries, payroll taxes, and fringe benefits allowed in 
  2.10  each operating cost category, except management fees and 
  2.11  administrator and central office salaries and the related 
  2.12  payroll taxes and fringe benefits, by 3.0 5.0 percent and then 
  2.13  dividing the resulting amount by the nursing facility's actual 
  2.14  resident days. 
  2.15     (2) For each nursing facility that does not report salaries 
  2.16  for registered nurses, licensed practical nurses, aides, 
  2.17  orderlies, and attendants separately, the salary adjustment per 
  2.18  diem is the weighted average salary adjustment per diem increase 
  2.19  determined under clause (1).  
  2.20     (3) A nursing facility may apply for the salary adjustment 
  2.21  per diem calculated under clauses (1) and (2).  The application 
  2.22  must be made to the commissioner and contain a plan by which the 
  2.23  nursing facility will distribute the salary adjustment to 
  2.24  employees of the nursing facility.  In order to apply for a 
  2.25  salary adjustment, a nursing facility reimbursed under section 
  2.26  256B.434, must report the information required by clause (1) or 
  2.27  (2) in the application, in the manner specified by the 
  2.28  commissioner.  For nursing facilities in which the employees are 
  2.29  represented by an exclusive bargaining representative, an 
  2.30  agreement negotiated and agreed to by the employer and the 
  2.31  exclusive bargaining representative, after July 1, 1998 2000, 
  2.32  may constitute the plan for the salary distribution.  The 
  2.33  commissioner shall review the plan to ensure that the salary 
  2.34  adjustment per diem is used solely to increase the compensation 
  2.35  of nursing home facility employees.  To be eligible, a facility 
  2.36  must submit its plan for the salary distribution by December 31, 
  3.1   1998 2000.  If a facility's plan for salary distribution is 
  3.2   effective for its employees after July 1, 1998 2000, the salary 
  3.3   adjustment cost per diem shall be effective the same date as its 
  3.4   plan. 
  3.5      (4) Additional costs incurred by nursing facilities as a 
  3.6   result of this salary adjustment are not allowable costs for 
  3.7   purposes of the September 30, 1998 2000, cost report. 
  3.8      (d)  [NEW BASE YEAR.] The commissioner shall establish a 
  3.9   new base year for the reporting years ending September 30, 1991, 
  3.10  and September 30, 1992.  In establishing a new base year, the 
  3.11  commissioner must take into account:  
  3.12     (1) statutory changes made in geographic groups; 
  3.13     (2) redefinitions of cost categories; and 
  3.14     (3) reclassification, pass-through, or exemption of certain 
  3.15  costs. 
  3.16     Sec. 2.  [EFFECTIVE DATE.] 
  3.17     Section 1 is effective July 1, 2000.