1.1                          A bill for an act 
  1.2             relating to human services; providing compensation 
  1.3             enhancement to nursing facilities; appropriating money.
  1.4   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.5      Section 1.  [COMPENSATION ENHANCEMENT.] 
  1.6      Effective July 1, 1999, the commissioner shall make 
  1.7   available compensation enhancement funds calculated as described 
  1.8   in paragraph (a) to the total operating cost payment rate of 
  1.9   each nursing facility under Minnesota Statutes, section 256B.431 
  1.10  or 256B.434. 
  1.11     (a) For each nursing facility, the commissioner shall 
  1.12  determine the amount of compensation enhancement by multiplying 
  1.13  the total number of resident days, as reported on the cost 
  1.14  report for reporting year October 1, 1997, to September 30, 
  1.15  1998, for nursing facilities under Minnesota Statutes, section 
  1.16  256B.431; or by the total number of resident days as reported on 
  1.17  the December 31, 1998, data collection report form for nursing 
  1.18  facilities under Minnesota Statutes, section 256B.434, by 
  1.19  ......  In determining the per diem increase, the commissioner 
  1.20  shall use medical assistance and private pay days only as the 
  1.21  denominator.  The commissioner shall notify the facility of the 
  1.22  available funds by June 1, 1999. 
  1.23     (b) Each nursing facility that is eligible to receive 
  1.24  compensation enhancement funds may apply for these funds by 
  2.1   submitting a plan to the commissioner.  The plan must identify 
  2.2   how the funds will be spent.  The commissioner shall review and 
  2.3   approve the plan if the plan identifies that the compensation 
  2.4   enhancement funds will be solely used to: 
  2.5      (1) increase wages of existing employees, either on a 
  2.6   percentage basis or a per hour basis; 
  2.7      (2) add staff hours; 
  2.8      (3) cover additional payroll taxes and increased benefit 
  2.9   costs related to clauses (1) and (2); and 
  2.10     (4) improve employee benefits such as health insurance or 
  2.11  pension benefits. 
  2.12     (c) All employees except facility owners, administrators, 
  2.13  employees under contract, and employees from temporary pool 
  2.14  agencies will be eligible to receive compensation enhancements. 
  2.15     (d) To be eligible, a facility must submit a compensation 
  2.16  distribution plan by December 31, 1999.  If a facility's 
  2.17  compensation distribution plan is effective for employees after 
  2.18  July 1, 1999, the salary adjustment cost per diem shall be 
  2.19  effective the same date as the facility's plan.