1.1                          A bill for an act 
  1.2             relating to human services; permitting nursing 
  1.3             facilities to place beds on layaway status; adjusting 
  1.4             nursing facility reimbursement; amending Minnesota 
  1.5             Statutes 1998, sections 144A.071, by adding a 
  1.6             subdivision; and 256B.431, by adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 144A.071, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 4b.  [LICENSED BEDS ON LAYAWAY STATUS.] A licensed 
  1.11  and certified nursing facility may lay away, upon prior written 
  1.12  notice to the commissioners of health and human services, 
  1.13  licensed and certified beds.  Beds on layaway shall have the 
  1.14  same status as voluntarily delicensed and decertified beds and 
  1.15  shall not be subject to license fees and license surcharge 
  1.16  fees.  In addition, beds on layaway status may be relicensed and 
  1.17  recertified at any time on or after one year after the effective 
  1.18  date of layaway in the facility of origin.  Beds may remain on 
  1.19  layaway status for up to five years. 
  1.20     Sec. 2.  Minnesota Statutes 1998, section 256B.431, is 
  1.21  amended by adding a subdivision to read: 
  1.22     Subd. 29.  [CHANGES TO NURSING FACILITY REIMBURSEMENT 
  1.23  BEGINNING JULY 1, 2000.] (a) For rate years beginning on or 
  1.24  after July 1, 2000, the licensed beds used to calculate capacity 
  1.25  days for nursing facilities reimbursed under this section, as 
  1.26  determined under Minnesota Rules, part 9549.0060, shall not 
  2.1   include licensed beds on layaway status.  The adjusted rental 
  2.2   per diem shall be calculated by multiplying the facility's 
  2.3   capacity days prior to written notice to the commissioners of 
  2.4   health and human services by the rental rate from the most 
  2.5   recent cost report, and dividing that amount by the capacity 
  2.6   days derived from placing beds on layaway status. 
  2.7      (b) For rate years beginning on or after July 1, 2000, the 
  2.8   rental rate portion of the property rate that was determined by 
  2.9   the most recent cost report of nursing facilities reimbursed 
  2.10  under section 256B.434 shall be adjusted by using current 
  2.11  capacity days as determined under Minnesota Rules, part 
  2.12  9549.0060, excluding those licensed beds on layaway status.  The 
  2.13  adjusted base rental rate shall be incorporated back into the 
  2.14  base property rate.  The base property rate shall then be 
  2.15  updated by any inflationary increase received by a facility 
  2.16  since electing to use the payment project under section 
  2.17  256B.434.  The adjusted rental per diem shall be calculated by 
  2.18  multiplying the facility's capacity days prior to written notice 
  2.19  to the commissioners of health and human services by the rental 
  2.20  rate from the most recent cost report, and dividing that amount 
  2.21  by the capacity days derived from placing beds on layaway status.
  2.22     (c) A nursing facility shall have its rates changed to 
  2.23  reflect any change in capacity days within one month of sending 
  2.24  written notice to the commissioner of human services. 
  2.25     (d) For nursing facilities reimbursed under this section 
  2.26  and section 256B.434, any beds placed in layaway status shall 
  2.27  not be included in calculating facility occupancy as it pertains 
  2.28  to leave days defined in Minnesota Rules, part 9505.0415. 
  2.29     (e) For nursing facilities reimbursed under this section 
  2.30  and section 256B.434, the rental rate calculated after placing 
  2.31  beds on layaway status may not be less than the rental rate 
  2.32  prior to placing beds on layaway status.