1.1                          A bill for an act 
  1.2             relating to human services; providing for changes to 
  1.3             the rate setting formula for nursing facilities with 
  1.4             predominately Rule 80 operations; appropriating money; 
  1.5             amending Minnesota Statutes 1996, section 256B.431, by 
  1.6             adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 256B.431, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 27.  [RULE 80 LIMITED EXEMPTION.] For the rate year 
  1.11  beginning July 1, 1998, the commissioner shall compute the 
  1.12  payment rate for a nursing facility exempted from care-related 
  1.13  limits under subdivision 2b, paragraph (d), clause (2), with a 
  1.14  minimum of three-quarters of its beds licensed to provide 
  1.15  residential services for the physically handicapped under 
  1.16  Minnesota Rules, parts 9570.2000 to 9570.3400, with the 
  1.17  operating cost spend-up limit under subdivision 26, paragraph 
  1.18  (a), increased by the amount the facility's care-related cost 
  1.19  per diem exceeded the care-related per diem limit otherwise 
  1.20  applicable to nonfreestanding facilities in its geographic group 
  1.21  for the rate year beginning July 1, 1998, without application of 
  1.22  subdivision 26, paragraph (b).  For rate years beginning on or 
  1.23  after July 1, 1999, the commissioner shall exclude that amount 
  1.24  in calculating the facility's operating cost per diem for 
  1.25  purposes of applying subdivision 26, paragraph (b). 
  1.26     Sec. 2.  [APPROPRIATION.] 
  2.1      $254,000 is appropriated from the general fund to the 
  2.2   commissioner of human services to provide funding for section 1. 
  2.3      Sec. 3.  [EFFECTIVE DATE.] 
  2.4      Sections 1 and 2 are effective the day following final 
  2.5   enactment.