1.1                          A bill for an act 
  1.2             relating to human services; providing for a planned 
  1.3             closure rate adjustment for certain nursing 
  1.4             facilities; amending Minnesota Statutes 2002, section 
  1.5             256B.437, subdivision 6. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 256B.437, 
  1.8   subdivision 6, is amended to read: 
  1.9      Subd. 6.  [PLANNED CLOSURE RATE ADJUSTMENT.] (a) The 
  1.10  commissioner of human services shall calculate the amount of the 
  1.11  planned closure rate adjustment available under subdivision 3, 
  1.12  paragraph (b), for up to 5,140 beds according to clauses (1) to 
  1.13  (4): 
  1.14     (1) the amount available is the net reduction of nursing 
  1.15  facility beds multiplied by $2,080; 
  1.16     (2) the total number of beds in the nursing facility or 
  1.17  facilities receiving the planned closure rate adjustment must be 
  1.18  identified; 
  1.19     (3) capacity days are determined by multiplying the number 
  1.20  determined under clause (2) by 365; and 
  1.21     (4) the planned closure rate adjustment is the amount 
  1.22  available in clause (1), divided by capacity days determined 
  1.23  under clause (3). 
  1.24     (b) A planned closure rate adjustment under this section is 
  1.25  effective on the first day of the month following completion of 
  2.1   closure of the facility designated for closure in the 
  2.2   application and becomes part of the nursing facility's total 
  2.3   operating payment rate. 
  2.4      (c) Applicants may use the planned closure rate adjustment 
  2.5   to allow for a property payment for a new nursing facility or an 
  2.6   addition to an existing nursing facility or as an operating 
  2.7   payment rate adjustment.  Applications approved under this 
  2.8   subdivision are exempt from other requirements for moratorium 
  2.9   exceptions under section 144A.073, subdivisions 2 and 3. 
  2.10     (d) Upon the request of a closing facility, the 
  2.11  commissioner must allow the facility a closure rate adjustment 
  2.12  as provided under section 144A.161, subdivision 10. 
  2.13     (e) A facility that has received a planned closure rate 
  2.14  adjustment may reassign it to another facility that is under the 
  2.15  same ownership at any time within three years of its effective 
  2.16  date.  The amount of the adjustment shall be computed according 
  2.17  to paragraph (a). 
  2.18     (f) If the per bed dollar amount specified in paragraph 
  2.19  (a), clause (1), is increased, the commissioner shall 
  2.20  recalculate planned closure rate adjustments for facilities that 
  2.21  delicense beds under this section on or after July 1, 2001, to 
  2.22  reflect the increase in the per bed dollar amount.  The 
  2.23  recalculated planned closure rate adjustment shall be effective 
  2.24  from the date the per bed dollar amount is increased. 
  2.25     (g) A 26-bed facility that voluntarily delicensed its beds 
  2.26  in June 2002, for which the commissioner of human services 
  2.27  neither approved nor denied the facility's closure plan, shall 
  2.28  be assigned a planned closure rate adjustment effective July 1, 
  2.29  2002, for reassignment to a 22-bed facility under common 
  2.30  ownership.  The commissioner shall not reassign the rate to the 
  2.31  five nursing facilities with the lowest rates in the development 
  2.32  region. 
  2.33     Sec. 2.  [EFFECTIVE DATE.] 
  2.34     Section 1 is effective the day following final enactment.