1.1 A bill for an act 1.2 relating to human services; modifying rates for certain disability waiver services; 1.3 modifying rates for certain elderly waiver services; modifying rate floors for certain 1.4 customized living services; modifying rates for nursing facilities; establishing rate 1.5 floors for intermediate care facilities for persons with developmental disabilities; 1.6 modifying rates for intermediate care facilities for persons with developmental 1.7 disabilities; modifying rates for community first services and supports; modifying 1.8 rates for personal care assistance services; modifying rates for certain home care 1.9 services; modifying rates for nonemergency medical transportation services; 1.10 establishing a fuel cost rate adjustment for medical transportation services; 1.11 modifying provisions related to home and community-based services; modifying 1.12 provisions related to the emergency staffing pool; establishing a residential settings 1.13 closure prevention grant program; appropriating money; amending Minnesota 1.14 Statutes 2022, sections 256B.0625, subdivisions 17, 17a; 256B.0659, subdivisions 1.15 1, 12, 17a, 19, 24; 256B.0913, subdivisions 4, 5; 256B.4911, by adding a 1.16 subdivision; 256B.4912, by adding a subdivision; 256B.4914, subdivisions 3, as 1.17 amended, 4, 5, 5a, 5b, 5c, 5d, 5e, 8, 9, 10, 10a, 10c, 12, 14, by adding a subdivision; 1.18 256B.5012, by adding subdivisions; 256B.85, subdivisions 7, 7a, by adding a 1.19 subdivision; 256B.851, subdivision 5; 256E.35, subdivisions 1, 2, 4a, 6, 7; 256P.02, 1.20 by adding a subdivision; 256R.02, subdivisions 16, 24, 26, 29, 34, by adding 1.21 subdivisions; 256R.23, subdivisions 2, 3; 256R.24, subdivision 1; 256R.25; 1.22 256S.15, subdivision 2; 256S.18, by adding a subdivision; 256S.19, subdivision 1.23 3; 256S.205, subdivisions 3, 5; 256S.2101, subdivisions 1, 2, by adding 1.24 subdivisions; 256S.212; 256S.213; 256S.214; 256S.215; Laws 2022, chapter 40, 1.25 section 6; proposing coding for new law in Minnesota Statutes, chapter 256; 1.26 repealing Minnesota Statutes 2022, sections 256B.4914, subdivision 9a; 256S.19, 1.27 subdivision 4. 1.28BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.29 ARTICLE 1 1.30 CAREGIVERS STABILIZATION ACT 1.31 Section 1. TITLE. 1.32 This act may be cited as the "Caregivers Stabilization Act of 2023." 1Article 1 Section 1. REVISOR AGW/HL 23-0127812/21/22 State of Minnesota This Document can be made available in alternative formats upon request HOUSE OF REPRESENTATIVES H. F. No. 32 NINETY-THIRD SESSION Authored by Noor01/04/2023 The bill was read for the first time and referred to the Committee on Human Services Finance 2.1 ARTICLE 2 2.2 DISABILITY WAIVERS 2.3 Section 1. Minnesota Statutes 2022, section 256B.4912, is amended by adding a subdivision 2.4to read: 2.5 Subd. 16.Rates established by the commissioner.For homemaker services eligible 2.6for reimbursement under the developmental disabilities waiver, the brain injury waiver, the 2.7community alternative care waiver, and the community access for disability inclusion waiver, 2.8the commissioner must establish rates equal to the rates established under sections 256S.21 2.9to 256S.215 for the corresponding homemaker services. 2.10 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 2.11whichever is later. The commissioner of human services shall notify the revisor of statutes 2.12when federal approval is obtained. 2.13 Sec. 2. Minnesota Statutes 2022, section 256B.4914, subdivision 3, is amended to read: 2.14 Subd. 3.Applicable services.Applicable services are those authorized under the state's 2.15home and community-based services waivers under sections 256B.092 and 256B.49, 2.16including the following, as defined in the federally approved home and community-based 2.17services plan: 2.18 (1) 24-hour customized living; 2.19 (2) adult day services; 2.20 (3) adult day services bath; 2.21 (4) community residential services; 2.22 (5) customized living; 2.23 (6) day support services; 2.24 (7) employment development services; 2.25 (8) employment exploration services; 2.26 (9) employment support services; 2.27 (10) family residential services; 2.28 (11) individualized home supports; 2.29 (12) individualized home supports with family training; 2Article 2 Sec. 2. REVISOR AGW/HL 23-0127812/21/22 3.1 (13) individualized home supports with training; 3.2 (14) integrated community supports; 3.3 (15) night supervision; 3.4 (16) positive support services; 3.5 (17) prevocational services; 3.6 (18) residential support services; 3.7 (19) respite services; 3.8 (20) transportation services; and 3.9 (21) (20) other services as approved by the federal government in the state home and 3.10community-based services waiver plan. 3.11 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 3.12whichever is later. The commissioner of human services shall notify the revisor of statutes 3.13when federal approval is obtained. 3.14 Sec. 3. Minnesota Statutes 2022, section 256B.4914, subdivision 4, is amended to read: 3.15 Subd. 4.Data collection for rate determination.(a) Rates for applicable home and 3.16community-based waivered services, including customized rates under subdivision 12, are 3.17set by the rates management system. 3.18 (b) Data and information in the rates management system must be used to calculate an 3.19individual's rate. 3.20 (c) Service providers, with information from the support plan and oversight by lead 3.21agencies, shall provide values and information needed to calculate an individual's rate in 3.22the rates management system. The determination of service levels must be part of a discussion 3.23with members of the support team as defined in section 245D.02, subdivision 34. This 3.24discussion must occur prior to the final establishment of each individual's rate. The values 3.25and information include: 3.26 (1) shared staffing hours; 3.27 (2) individual staffing hours; 3.28 (3) direct registered nurse hours; 3.29 (4) direct licensed practical nurse hours; 3.30 (5) staffing ratios; 3Article 2 Sec. 3. REVISOR AGW/HL 23-0127812/21/22 4.1 (6) information to document variable levels of service qualification for variable levels 4.2of reimbursement in each framework; 4.3 (7) shared or individualized arrangements for unit-based services, including the staffing 4.4ratio; 4.5 (8) number of trips and miles for transportation services; and 4.6 (9) service hours provided through monitoring technology. 4.7 (d) Updates to individual data must include: 4.8 (1) data for each individual that is updated annually when renewing service plans; and 4.9 (2) requests by individuals or lead agencies to update a rate whenever there is a change 4.10in an individual's service needs, with accompanying documentation. 4.11 (e) Lead agencies shall review and approve all services reflecting each individual's needs, 4.12and the values to calculate the final payment rate for services with variables under 4.13subdivisions 6 to 9a 9 for each individual. Lead agencies must notify the individual and the 4.14service provider of the final agreed-upon values and rate, and provide information that is 4.15identical to what was entered into the rates management system. If a value used was 4.16mistakenly or erroneously entered and used to calculate a rate, a provider may petition lead 4.17agencies to correct it. Lead agencies must respond to these requests. When responding to 4.18the request, the lead agency must consider: 4.19 (1) meeting the health and welfare needs of the individual or individuals receiving 4.20services by service site, identified in their support plan under section 245D.02, subdivision 4.214b, and any addendum under section 245D.02, subdivision 4c; 4.22 (2) meeting the requirements for staffing under subdivision 2, paragraphs (h), (n), and 4.23(o); and meeting or exceeding the licensing standards for staffing required under section 4.24245D.09, subdivision 1; and 4.25 (3) meeting the staffing ratio requirements under subdivision 2, paragraph (o), and 4.26meeting or exceeding the licensing standards for staffing required under section 245D.31. 4.27 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 4.28whichever is later. The commissioner of human services shall notify the revisor of statutes 4.29when federal approval is obtained. 4Article 2 Sec. 3. REVISOR AGW/HL 23-0127812/21/22 5.1 Sec. 4. Minnesota Statutes 2022, section 256B.4914, subdivision 5, is amended to read: 5.2 Subd. 5.Base wage index; establishment and updates.(a) The base wage index is 5.3established to determine staffing costs associated with providing services to individuals 5.4receiving home and community-based services. For purposes of calculating the base wage, 5.5Minnesota-specific wages taken from job descriptions and standard occupational 5.6classification (SOC) codes from the Bureau of Labor Statistics as defined in the Occupational 5.7Handbook must be used. 5.8 (b) The commissioner shall update the base wage index in subdivision 5a, publish these 5.9updated values, and load them into the rate management system as follows: 5.10 (1) on January 1, 2022, based on wage data by SOC from the Bureau of Labor Statistics 5.11available as of December 31, 2019; and 5.12 (2) on November 1, 2024, based on wage data by SOC from the Bureau of Labor Statistics 5.13available as of December 31, 2021; and 5.14 (3) (2) on July 1, 2026 January 1, 2024, and every two years thereafter, based on wage 5.15data by SOC from the Bureau of Labor Statistics available 30 24 months and one day prior 5.16to the scheduled update. 5.17 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 5.18whichever is later. The commissioner of human services shall notify the revisor of statutes 5.19when federal approval is obtained. 5.20 Sec. 5. Minnesota Statutes 2022, section 256B.4914, subdivision 5a, is amended to read: 5.21 Subd. 5a.Base wage index; calculations.The base wage index must be calculated as 5.22follows: 5.23 (1) for supervisory staff, 100 percent of the median wage for community and social 5.24services specialist (SOC code 21-1099), with the exception of the supervisor of positive 5.25supports professional, positive supports analyst, and positive supports specialist, which is 5.26100 percent of the median wage for clinical counseling and school psychologist (SOC code 5.2719-3031); 5.28 (2) for registered nurse staff, 100 percent of the median wage for registered nurses (SOC 5.29code 29-1141); 5.30 (3) for licensed practical nurse staff, 100 percent of the median wage for licensed practical 5.31nurses (SOC code 29-2061); 5Article 2 Sec. 5. REVISOR AGW/HL 23-0127812/21/22 6.1 (4) for residential asleep-overnight staff, the minimum wage in Minnesota for large 6.2employers, with the exception of asleep-overnight staff for family residential services, which 6.3is 36 percent of the minimum wage in Minnesota for large employers; 6.4 (5) for residential direct care staff, the sum of: 6.5 (i) 15 percent of the subtotal of 50 percent of the median wage for home health and 6.6personal care aide (SOC code 31-1120); 30 percent of the median wage for nursing assistant 6.7(SOC code 31-1131); and 20 percent of the median wage for social and human services 6.8aide (SOC code 21-1093); and 6.9 (ii) 85 percent of the subtotal of 40 percent of the median wage for home health and 6.10personal care aide (SOC code 31-1120); 20 percent of the median wage for nursing assistant 6.11(SOC code 31-1014 31-1131); 20 percent of the median wage for psychiatric technician 6.12(SOC code 29-2053); and 20 percent of the median wage for social and human services 6.13aide (SOC code 21-1093); 6.14 (6) for adult day services staff, 70 percent of the median wage for nursing assistant (SOC 6.15code 31-1131); and 30 percent of the median wage for home health and personal care aide 6.16(SOC code 31-1120); 6.17 (7) for day support services staff and prevocational services staff, 20 percent of the 6.18median wage for nursing assistant (SOC code 31-1131); 20 percent of the median wage for 6.19psychiatric technician (SOC code 29-2053); and 60 percent of the median wage for social 6.20and human services aide (SOC code 21-1093); 6.21 (8) for positive supports analyst staff, 100 percent of the median wage for substance 6.22abuse, behavioral disorder, and mental health counselor (SOC code 21-1018); 6.23 (9) for positive supports professional staff, 100 percent of the median wage for clinical 6.24counseling and school psychologist (SOC code 19-3031); 6.25 (10) for positive supports specialist staff, 100 percent of the median wage for psychiatric 6.26technicians (SOC code 29-2053); 6.27 (11) for individualized home supports with family training staff, 20 percent of the median 6.28wage for nursing aide (SOC code 31-1131); 30 percent of the median wage for community 6.29social service specialist (SOC code 21-1099); 40 percent of the median wage for social and 6.30human services aide (SOC code 21-1093); and ten percent of the median wage for psychiatric 6.31technician (SOC code 29-2053); 6.32 (12) for individualized home supports with training services staff, 40 percent of the 6.33median wage for community social service specialist (SOC code 21-1099); 50 percent of 6Article 2 Sec. 5. REVISOR AGW/HL 23-0127812/21/22 7.1the median wage for social and human services aide (SOC code 21-1093); and ten percent 7.2of the median wage for psychiatric technician (SOC code 29-2053); 7.3 (13) for employment support services staff, 50 percent of the median wage for 7.4rehabilitation counselor (SOC code 21-1015); and 50 percent of the median wage for 7.5community and social services specialist (SOC code 21-1099); 7.6 (14) for employment exploration services staff, 50 percent of the median wage for 7.7rehabilitation counselor (SOC code 21-1015) education, guidance, school, and vocational 7.8counselor (SOC code 21-1012); and 50 percent of the median wage for community and 7.9social services specialist (SOC code 21-1099); 7.10 (15) for employment development services staff, 50 percent of the median wage for 7.11education, guidance, school, and vocational counselors (SOC code 21-1012); and 50 percent 7.12of the median wage for community and social services specialist (SOC code 21-1099); 7.13 (16) for individualized home support without training staff, 50 percent of the median 7.14wage for home health and personal care aide (SOC code 31-1120); and 50 percent of the 7.15median wage for nursing assistant (SOC code 31-1131); and 7.16 (17) for night supervision staff, 40 percent of the median wage for home health and 7.17personal care aide (SOC code 31-1120); 20 percent of the median wage for nursing assistant 7.18(SOC code 31-1131); 20 percent of the median wage for psychiatric technician (SOC code 7.1929-2053); and 20 percent of the median wage for social and human services aide (SOC code 7.2021-1093); and. 7.21 (18) for respite staff, 50 percent of the median wage for home health and personal care 7.22aide (SOC code 31-1131); and 50 percent of the median wage for nursing assistant (SOC 7.23code 31-1014). 7.24 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 7.25whichever is later. The commissioner of human services shall notify the revisor of statutes 7.26when federal approval is obtained. 7.27 Sec. 6. Minnesota Statutes 2022, section 256B.4914, subdivision 5b, is amended to read: 7.28 Subd. 5b.Standard component value adjustments.The commissioner shall update 7.29the client and programming support, transportation, and program facility cost component 7.30values as required in subdivisions 6 to 9a 9 for changes in the Consumer Price Index. The 7.31commissioner shall adjust these values higher or lower, publish these updated values, and 7.32load them into the rate management system as follows: 7Article 2 Sec. 6. REVISOR AGW/HL 23-0127812/21/22 8.1 (1) on January 1, 2022, by the percentage change in the CPI-U from the date of the 8.2previous update to the data available on December 31, 2019; and 8.3 (2) on November 1, 2024, by the percentage change in the CPI-U from the date of the 8.4previous update to the data available as of December 31, 2021; and 8.5 (3) (2) on July January 1, 2026 2024, and every two years thereafter, by the percentage 8.6change in the CPI-U from the date of the previous update to the data available 30 12 months 8.7and one day prior to the scheduled update. 8.8 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 8.9whichever is later. The commissioner of human services shall notify the revisor of statutes 8.10when federal approval is obtained. 8.11 Sec. 7. Minnesota Statutes 2022, section 256B.4914, subdivision 5c, is amended to read: 8.12 Subd. 5c.Removal of after-framework adjustments.Any rate adjustments applied to 8.13the service rates calculated under this section outside of the cost components and rate 8.14methodology specified in this section shall be removed from rate calculations upon 8.15implementation of the updates under subdivisions 5 and, 5b, and 5f. 8.16 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 8.17whichever is later. The commissioner of human services shall notify the revisor of statutes 8.18when federal approval is obtained. 8.19 Sec. 8. Minnesota Statutes 2022, section 256B.4914, subdivision 5d, is amended to read: 8.20 Subd. 5d.Unavailable data for updates and adjustments.If Bureau of Labor Statistics 8.21occupational codes or Consumer Price Index items specified in subdivision 5 or, 5b, or 5f 8.22are unavailable in the future, the commissioner shall recommend to the legislature codes or 8.23items to update and replace. 8.24 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 8.25whichever is later. The commissioner of human services shall notify the revisor of statutes 8.26when federal approval is obtained. 8.27 Sec. 9. Minnesota Statutes 2022, section 256B.4914, subdivision 5e, is amended to read: 8.28 Subd. 5e.Inflationary update spending requirement.(a) At least 80 percent of the 8.29marginal increase in revenue from the rate adjustment applied to the service rates adjustments 8.30calculated under subdivisions 5 and, 5b beginning on January 1, 2022, and 5f for services 8.31rendered between January 1, 2022, and March 31, 2024, on or after the day of implementation 8Article 2 Sec. 9. REVISOR AGW/HL 23-0127812/21/22 9.1of the adjustment must be used to increase compensation-related costs for employees directly 9.2employed by the program on or after January 1, 2022. 9.3 (b) For the purposes of this subdivision, compensation-related costs include: 9.4 (1) wages and salaries; 9.5 (2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment 9.6taxes, workers' compensation, and mileage reimbursement; 9.7 (3) the employer's paid share of health and dental insurance, life insurance, disability 9.8insurance, long-term care insurance, uniform allowance, pensions, and contributions to 9.9employee retirement accounts; and 9.10 (4) benefits that address direct support professional workforce needs above and beyond 9.11what employees were offered prior to January 1, 2022 implementation of the applicable 9.12rate adjustment, including retention and recruitment bonuses and tuition reimbursement. 9.13 (c) Compensation-related costs for persons employed in the central office of a corporation 9.14or entity that has an ownership interest in the provider or exercises control over the provider, 9.15or for persons paid by the provider under a management contract, do not count toward the 9.1680 percent requirement under this subdivision. 9.17 (d) A provider agency or individual provider that receives a rate subject to the 9.18requirements of this subdivision shall prepare, and upon request submit to the commissioner, 9.19a distribution plan that specifies the amount of money the provider expects to receive that 9.20is subject to the requirements of this subdivision, including how that money was or will be 9.21distributed to increase compensation-related costs for employees. Within 60 days of final 9.22implementation of a rate adjustment subject to the requirements of this subdivision, the 9.23provider must post the distribution plan and leave it posted for a period of at least six months 9.24in an area of the provider's operation to which all direct support professionals have access. 9.25The posted distribution plan must include instructions regarding how to contact the 9.26commissioner or commissioner's representative if an employee believes the employee has 9.27not received the compensation-related increase described in the plan. 9.28 (e) This subdivision expires June 30, 2024. 9.29 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 9.30whichever is later. The commissioner of human services shall notify the revisor of statutes 9.31when federal approval is obtained. 9Article 2 Sec. 9. REVISOR AGW/HL 23-0127812/21/22 10.1 Sec. 10. Minnesota Statutes 2022, section 256B.4914, is amended by adding a subdivision 10.2to read: 10.3 Subd. 5f.Competitive workforce factor adjustments.(a) On January 1, 2024, and 10.4every two years thereafter, the commissioner shall update the competitive workforce factor 10.5to equal the differential between: 10.6 (1) the most recently available wage data by SOC code for the weighted average wage 10.7for direct care staff for residential support services and direct care staff for day programs; 10.8and 10.9 (2) the most recently available wage data by SOC code of the weighted average wage 10.10of comparable occupations. 10.11 (b) For each update of the competitive workforce factor, the update must not decrease 10.12the competitive workforce factor by more than 2.0. If the competitive workforce factor is 10.13less than or equal to zero, then the competitive workforce factor is zero. 10.14 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 10.15whichever is later. The commissioner of human services shall notify the revisor of statutes 10.16when federal approval is obtained. 10.17Sec. 11. Minnesota Statutes 2022, section 256B.4914, subdivision 8, is amended to read: 10.18 Subd. 8. Unit-based services with programming; component values and calculation 10.19of payment rates.(a) For the purpose of this section, unit-based services with programming 10.20include employment exploration services, employment development services, employment 10.21support services, individualized home supports with family training, individualized home 10.22supports with training, and positive support services provided to an individual outside of 10.23any service plan for a day program or residential support service. 10.24 (b) Component values for unit-based services with programming are: 10.25 (1) competitive workforce factor: 4.7 percent; 10.26 (2) supervisory span of control ratio: 11 percent; 10.27 (3) employee vacation, sick, and training allowance ratio: 8.71 percent; 10.28 (4) employee-related cost ratio: 23.6 percent; 10.29 (5) program plan support ratio: 15.5 percent; 10.30 (6) client programming and support ratio: 4.7 percent, updated as specified in subdivision 10.315b; 10Article 2 Sec. 11. REVISOR AGW/HL 23-0127812/21/22 11.1 (7) general administrative support ratio: 13.25 percent; 11.2 (8) program-related expense ratio: 6.1 percent; and 11.3 (9) absence and utilization factor ratio: 3.9 percent. 11.4 (c) A unit of service for unit-based services with programming is 15 minutes. 11.5 (d) Payments for unit-based services with programming must be calculated as follows, 11.6unless the services are reimbursed separately as part of a residential support services or day 11.7program payment rate: 11.8 (1) determine the number of units of service to meet a recipient's needs; 11.9 (2) determine the appropriate hourly staff wage rates derived by the commissioner as 11.10provided in subdivisions 5 and 5a; 11.11 (3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 11.12product of one plus the competitive workforce factor; 11.13 (4) for a recipient requiring customization for deaf and hard-of-hearing language 11.14accessibility under subdivision 12, add the customization rate provided in subdivision 12 11.15to the result of clause (3); 11.16 (5) multiply the number of direct staffing hours by the appropriate staff wage; 11.17 (6) multiply the number of direct staffing hours by the product of the supervisory span 11.18of control ratio and the appropriate supervisory staff wage in subdivision 5a, clause (1); 11.19 (7) combine the results of clauses (5) and (6), and multiply the result by one plus the 11.20employee vacation, sick, and training allowance ratio. This is defined as the direct staffing 11.21rate; 11.22 (8) for program plan support, multiply the result of clause (7) by one plus the program 11.23plan support ratio; 11.24 (9) for employee-related expenses, multiply the result of clause (8) by one plus the 11.25employee-related cost ratio; 11.26 (10) for client programming and supports, multiply the result of clause (9) by one plus 11.27the client programming and support ratio; 11.28 (11) this is the subtotal rate; 11.29 (12) sum the standard general administrative support ratio, the program-related expense 11.30ratio, and the absence and utilization factor ratio; 11Article 2 Sec. 11. REVISOR AGW/HL 23-0127812/21/22 12.1 (13) divide the result of clause (11) by one minus the result of clause (12). This is the 12.2total payment amount; 12.3 (14) for services provided in a shared manner, divide the total payment in clause (13) 12.4as follows: 12.5 (i) for employment exploration services, divide by the number of service recipients, not 12.6to exceed five; 12.7 (ii) for employment support services, divide by the number of service recipients, not to 12.8exceed six; and 12.9 (iii) for individualized home supports with training and individualized home supports 12.10with family training, divide by the number of service recipients, not to exceed two three; 12.11and 12.12 (15) adjust the result of clause (14) by a factor to be determined by the commissioner 12.13to adjust for regional differences in the cost of providing services. 12.14 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 12.15whichever is later. The commissioner of human services shall notify the revisor of statutes 12.16when federal approval is obtained. 12.17Sec. 12. Minnesota Statutes 2022, section 256B.4914, subdivision 9, is amended to read: 12.18 Subd. 9. Unit-based services without programming; component values and 12.19calculation of payment rates.(a) For the purposes of this section, unit-based services 12.20without programming include individualized home supports without training and night 12.21supervision provided to an individual outside of any service plan for a day program or 12.22residential support service. Unit-based services without programming do not include respite. 12.23 (b) Component values for unit-based services without programming are: 12.24 (1) competitive workforce factor: 4.7 percent; 12.25 (2) supervisory span of control ratio: 11 percent; 12.26 (3) employee vacation, sick, and training allowance ratio: 8.71 percent; 12.27 (4) employee-related cost ratio: 23.6 percent; 12.28 (5) program plan support ratio: 7.0 percent; 12.29 (6) client programming and support ratio: 2.3 percent, updated as specified in subdivision 12.305b; 12Article 2 Sec. 12. REVISOR AGW/HL 23-0127812/21/22 13.1 (7) general administrative support ratio: 13.25 percent; 13.2 (8) program-related expense ratio: 2.9 percent; and 13.3 (9) absence and utilization factor ratio: 3.9 percent. 13.4 (c) A unit of service for unit-based services without programming is 15 minutes. 13.5 (d) Payments for unit-based services without programming must be calculated as follows 13.6unless the services are reimbursed separately as part of a residential support services or day 13.7program payment rate: 13.8 (1) determine the number of units of service to meet a recipient's needs; 13.9 (2) determine the appropriate hourly staff wage rates derived by the commissioner as 13.10provided in subdivisions 5 to 5a; 13.11 (3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the 13.12product of one plus the competitive workforce factor; 13.13 (4) for a recipient requiring customization for deaf and hard-of-hearing language 13.14accessibility under subdivision 12, add the customization rate provided in subdivision 12 13.15to the result of clause (3); 13.16 (5) multiply the number of direct staffing hours by the appropriate staff wage; 13.17 (6) multiply the number of direct staffing hours by the product of the supervisory span 13.18of control ratio and the appropriate supervisory staff wage in subdivision 5a, clause (1); 13.19 (7) combine the results of clauses (5) and (6), and multiply the result by one plus the 13.20employee vacation, sick, and training allowance ratio. This is defined as the direct staffing 13.21rate; 13.22 (8) for program plan support, multiply the result of clause (7) by one plus the program 13.23plan support ratio; 13.24 (9) for employee-related expenses, multiply the result of clause (8) by one plus the 13.25employee-related cost ratio; 13.26 (10) for client programming and supports, multiply the result of clause (9) by one plus 13.27the client programming and support ratio; 13.28 (11) this is the subtotal rate; 13.29 (12) sum the standard general administrative support ratio, the program-related expense 13.30ratio, and the absence and utilization factor ratio; 13Article 2 Sec. 12. REVISOR AGW/HL 23-0127812/21/22 14.1 (13) divide the result of clause (11) by one minus the result of clause (12). This is the 14.2total payment amount; 14.3 (14) for individualized home supports without training provided in a shared manner, 14.4divide the total payment amount in clause (13) by the number of service recipients, not to 14.5exceed two three; and 14.6 (15) adjust the result of clause (14) by a factor to be determined by the commissioner 14.7to adjust for regional differences in the cost of providing services. 14.8 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 14.9whichever is later. The commissioner of human services shall notify the revisor of statutes 14.10when federal approval is obtained. 14.11Sec. 13. Minnesota Statutes 2022, section 256B.4914, subdivision 10, is amended to read: 14.12 Subd. 10.Evaluation of information and data.(a) The commissioner shall, within 14.13available resources, conduct research and gather data and information from existing state 14.14systems or other outside sources on the following items: 14.15 (1) differences in the underlying cost to provide services and care across the state; 14.16 (2) mileage, vehicle type, lift requirements, incidents of individual and shared rides, and 14.17units of transportation for all day services, which must be collected from providers using 14.18the rate management worksheet and entered into the rates management system; and 14.19 (3) the distinct underlying costs for services provided by a license holder under sections 14.20245D.05, 245D.06, 245D.07, 245D.071, 245D.081, and 245D.09, and for services provided 14.21by a license holder certified under section 245D.33. 14.22 (b) The commissioner, in consultation with stakeholders, shall review and evaluate the 14.23following values already in subdivisions 6 to 9a 9, or issues that impact all services, including, 14.24but not limited to: 14.25 (1) values for transportation rates; 14.26 (2) values for services where monitoring technology replaces staff time; 14.27 (3) values for indirect services; 14.28 (4) values for nursing; 14.29 (5) values for the facility use rate in day services, and the weightings used in the day 14.30service ratios and adjustments to those weightings; 14.31 (6) values for workers' compensation as part of employee-related expenses; 14Article 2 Sec. 13. REVISOR AGW/HL 23-0127812/21/22 15.1 (7) values for unemployment insurance as part of employee-related expenses; 15.2 (8) direct care workforce labor market measures; 15.3 (9) any changes in state or federal law with a direct impact on the underlying cost of 15.4providing home and community-based services; 15.5 (10) outcome measures, determined by the commissioner, for home and community-based 15.6services rates determined under this section; and 15.7 (11) different competitive workforce factors by service, as determined under subdivision 15.810b. 15.9 (c) The commissioner shall report to the chairs and the ranking minority members of 15.10the legislative committees and divisions with jurisdiction over health and human services 15.11policy and finance with the information and data gathered under paragraphs (a) and (b) on 15.12January 15, 2021, with a full report, and a full report once every four years thereafter. 15.13 (d) Beginning July 1, 2022, the commissioner shall renew analysis and implement 15.14changes to the regional adjustment factors once every six years. Prior to implementation, 15.15the commissioner shall consult with stakeholders on the methodology to calculate the 15.16adjustment. 15.17 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 15.18whichever is later. The commissioner of human services shall notify the revisor of statutes 15.19when federal approval is obtained. 15.20Sec. 14. Minnesota Statutes 2022, section 256B.4914, subdivision 10a, is amended to 15.21read: 15.22 Subd. 10a.Reporting and analysis of cost data.(a) The commissioner must ensure 15.23that wage values and component values in subdivisions 5 to 9a 9 reflect the cost to provide 15.24the service. As determined by the commissioner, in consultation with stakeholders identified 15.25in subdivision 17, a provider enrolled to provide services with rates determined under this 15.26section must submit requested cost data to the commissioner to support research on the cost 15.27of providing services that have rates determined by the disability waiver rates system. 15.28Requested cost data may include, but is not limited to: 15.29 (1) worker wage costs; 15.30 (2) benefits paid; 15.31 (3) supervisor wage costs; 15Article 2 Sec. 14. REVISOR AGW/HL 23-0127812/21/22 16.1 (4) executive wage costs; 16.2 (5) vacation, sick, and training time paid; 16.3 (6) taxes, workers' compensation, and unemployment insurance costs paid; 16.4 (7) administrative costs paid; 16.5 (8) program costs paid; 16.6 (9) transportation costs paid; 16.7 (10) vacancy rates; and 16.8 (11) other data relating to costs required to provide services requested by the 16.9commissioner. 16.10 (b) At least once in any five-year period, a provider must submit cost data for a fiscal 16.11year that ended not more than 18 months prior to the submission date. The commissioner 16.12shall provide each provider a 90-day notice prior to its submission due date. If a provider 16.13fails to submit required reporting data, the commissioner shall provide notice to providers 16.14that have not provided required data 30 days after the required submission date, and a second 16.15notice for providers who have not provided required data 60 days after the required 16.16submission date. The commissioner shall temporarily suspend payments to the provider if 16.17cost data is not received 90 days after the required submission date. Withheld payments 16.18shall be made once data is received by the commissioner. 16.19 (c) The commissioner shall conduct a random validation of data submitted under 16.20paragraph (a) to ensure data accuracy. 16.21 (d) The commissioner shall analyze cost data submitted under paragraph (a) and, in 16.22consultation with stakeholders identified in subdivision 17, may submit recommendations 16.23on component values and inflationary factor adjustments to the chairs and ranking minority 16.24members of the legislative committees with jurisdiction over human services once every 16.25four years beginning January 1, 2021. The commissioner shall make recommendations in 16.26conjunction with reports submitted to the legislature according to subdivision 10, paragraph 16.27(c). 16.28 (e) The commissioner shall release cost data in an aggregate form, and cost data from 16.29individual providers shall not be released except as provided for in current law. 16.30 (f) The commissioner, in consultation with stakeholders identified in subdivision 17, 16.31shall develop and implement a process for providing training and technical assistance 16Article 2 Sec. 14. REVISOR AGW/HL 23-0127812/21/22 17.1necessary to support provider submission of cost documentation required under paragraph 17.2(a). 17.3 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 17.4whichever is later. The commissioner of human services shall notify the revisor of statutes 17.5when federal approval is obtained. 17.6 Sec. 15. Minnesota Statutes 2022, section 256B.4914, subdivision 10c, is amended to 17.7read: 17.8 Subd. 10c.Reporting and analysis of competitive workforce factor.(a) Beginning 17.9February 1, 2021 2025, and every two years thereafter, the commissioner shall report to the 17.10chairs and ranking minority members of the legislative committees and divisions with 17.11jurisdiction over health and human services policy and finance an analysis of the competitive 17.12workforce factor. 17.13 (b) The report must include recommendations to update the competitive workforce factor 17.14using: 17.15 (1) the most recently available wage data by SOC code for the weighted average wage 17.16for direct care staff for residential services and direct care staff for day services; 17.17 (2) the most recently available wage data by SOC code of the weighted average wage 17.18of comparable occupations; and 17.19 (3) workforce data as required under subdivision 10b. 17.20 (c) The commissioner shall not recommend an increase or decrease of the competitive 17.21workforce factor from the current value by more than two percentage points. If, after a 17.22biennial analysis for the next report, the competitive workforce factor is less than or equal 17.23to zero, the commissioner shall recommend a competitive workforce factor of zero. This 17.24subdivision expires upon submission of the calendar year 2030 report. 17.25 EFFECTIVE DATE.This section is effective July 1, 2023. 17.26Sec. 16. Minnesota Statutes 2022, section 256B.4914, subdivision 12, is amended to read: 17.27 Subd. 12.Customization of rates for individuals.(a) For persons determined to have 17.28higher needs based on being deaf or hard-of-hearing, the direct-care costs must be increased 17.29by an adjustment factor prior to calculating the rate under subdivisions 6 to 9a 9. The 17.30customization rate with respect to deaf or hard-of-hearing persons shall be $2.50 per hour 17.31for waiver recipients who meet the respective criteria as determined by the commissioner. 17Article 2 Sec. 16. REVISOR AGW/HL 23-0127812/21/22 18.1 (b) For the purposes of this section, "deaf and hard-of-hearing" means: 18.2 (1) the person has a developmental disability and: 18.3 (i) an assessment score which indicates a hearing impairment that is severe or that the 18.4person has no useful hearing; 18.5 (ii) an expressive communications score that indicates the person uses single signs or 18.6gestures, uses an augmentative communication aid, or does not have functional 18.7communication, or the person's expressive communications is unknown; and 18.8 (iii) a communication score which indicates the person comprehends signs, gestures, 18.9and modeling prompts or does not comprehend verbal, visual, or gestural communication, 18.10or that the person's receptive communication score is unknown; or 18.11 (2) the person receives long-term care services and has an assessment score that indicates 18.12the person hears only very loud sounds, the person has no useful hearing, or a determination 18.13cannot be made; and the person receives long-term care services and has an assessment that 18.14indicates the person communicates needs with sign language, symbol board, written 18.15messages, gestures, or an interpreter; communicates with inappropriate content, makes 18.16garbled sounds or displays echolalia, or does not communicate needs. 18.17 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 18.18whichever is later. The commissioner of human services shall notify the revisor of statutes 18.19when federal approval is obtained. 18.20Sec. 17. Minnesota Statutes 2022, section 256B.4914, subdivision 14, is amended to read: 18.21 Subd. 14.Exceptions.(a) In a format prescribed by the commissioner, lead agencies 18.22must identify individuals with exceptional needs that cannot be met under the disability 18.23waiver rate system. The commissioner shall use that information to evaluate and, if necessary, 18.24approve an alternative payment rate for those individuals. Whether granted, denied, or 18.25modified, the commissioner shall respond to all exception requests in writing. The 18.26commissioner shall include in the written response the basis for the action and provide 18.27notification of the right to appeal under paragraph (h). 18.28 (b) Lead agencies must act on an exception request within 30 days and notify the initiator 18.29of the request of their recommendation in writing. A lead agency shall submit all exception 18.30requests along with its recommendation to the commissioner. 18.31 (c) An application for a rate exception may be submitted for the following criteria: 18.32 (1) an individual has service needs that cannot be met through additional units of service; 18Article 2 Sec. 17. REVISOR AGW/HL 23-0127812/21/22 19.1 (2) an individual's rate determined under subdivisions 6 to 9a 9 is so insufficient that it 19.2has resulted in an individual receiving a notice of discharge from the individual's provider; 19.3or 19.4 (3) an individual's service needs, including behavioral changes, require a level of service 19.5which necessitates a change in provider or which requires the current provider to propose 19.6service changes beyond those currently authorized. 19.7 (d) Exception requests must include the following information: 19.8 (1) the service needs required by each individual that are not accounted for in subdivisions 19.96 to 9a 9; 19.10 (2) the service rate requested and the difference from the rate determined in subdivisions 19.116 to 9a 9; 19.12 (3) a basis for the underlying costs used for the rate exception and any accompanying 19.13documentation; and 19.14 (4) any contingencies for approval. 19.15 (e) Approved rate exceptions shall be managed within lead agency allocations under 19.16sections 256B.092 and 256B.49. 19.17 (f) Individual disability waiver recipients, an interested party, or the license holder that 19.18would receive the rate exception increase may request that a lead agency submit an exception 19.19request. A lead agency that denies such a request shall notify the individual waiver recipient, 19.20interested party, or license holder of its decision and the reasons for denying the request in 19.21writing no later than 30 days after the request has been made and shall submit its denial to 19.22the commissioner in accordance with paragraph (b). The reasons for the denial must be 19.23based on the failure to meet the criteria in paragraph (c). 19.24 (g) The commissioner shall determine whether to approve or deny an exception request 19.25no more than 30 days after receiving the request. If the commissioner denies the request, 19.26the commissioner shall notify the lead agency and the individual disability waiver recipient, 19.27the interested party, and the license holder in writing of the reasons for the denial. 19.28 (h) The individual disability waiver recipient may appeal any denial of an exception 19.29request by either the lead agency or the commissioner, pursuant to sections 256.045 and 19.30256.0451. When the denial of an exception request results in the proposed demission of a 19.31waiver recipient from a residential or day habilitation program, the commissioner shall issue 19.32a temporary stay of demission, when requested by the disability waiver recipient, consistent 19.33with the provisions of section 256.045, subdivisions 4a and 6, paragraph (c). The temporary 19Article 2 Sec. 17. REVISOR AGW/HL 23-0127812/21/22 20.1stay shall remain in effect until the lead agency can provide an informed choice of 20.2appropriate, alternative services to the disability waiver. 20.3 (i) Providers may petition lead agencies to update values that were entered incorrectly 20.4or erroneously into the rate management system, based on past service level discussions 20.5and determination in subdivision 4, without applying for a rate exception. 20.6 (j) The starting date for the rate exception will be the later of the date of the recipient's 20.7change in support or the date of the request to the lead agency for an exception. 20.8 (k) The commissioner shall track all exception requests received and their dispositions. 20.9The commissioner shall issue quarterly public exceptions statistical reports, including the 20.10number of exception requests received and the numbers granted, denied, withdrawn, and 20.11pending. The report shall include the average amount of time required to process exceptions. 20.12 (l) Approved rate exceptions remain in effect in all cases until an individual's needs 20.13change as defined in paragraph (c). 20.14 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 20.15whichever is later. The commissioner of human services shall notify the revisor of statutes 20.16when federal approval is obtained. 20.17Sec. 18. Minnesota Statutes 2022, section 256S.2101, subdivision 1, is amended to read: 20.18 Subdivision 1.Phase-in for disability waiver customized living rates.All rates and 20.19rate components for community access for disability inclusion customized living and brain 20.20injury customized living under section 256B.4914 shall must be the sum of ten 21.6 percent 20.21of the rates calculated under sections 256S.211 to 256S.215 and 90 78.4 percent of the rates 20.22calculated using the rate methodology in effect as of June 30, 2017. 20.23 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 20.24whichever is later. The commissioner of human services shall notify the revisor of statutes 20.25when federal approval is obtained. 20.26Sec. 19. DIRECTION TO COMMISSIONER; DISABILITY WAIVER SHARED 20.27SERVICES RATES. 20.28 The commissioner of human services shall establish a rate system for shared homemaker 20.29services and shared chore services provided under Minnesota Statutes, sections 256B.092 20.30and 256B.49. For two persons sharing services, the rate paid to a provider must not exceed 20.311-1/2 times the rate paid for serving a single individual, and for three persons sharing 20.32services, the rate paid to a provider must not exceed two times the rate paid for serving a 20Article 2 Sec. 19. REVISOR AGW/HL 23-0127812/21/22 21.1single individual. These rates apply only when all of the criteria for the shared service have 21.2been met. 21.3 Sec. 20. DIRECTION TO COMMISSIONER; SHARED SERVICES. 21.4 (a) By December 1, 2023, the commissioner of human services shall seek any necessary 21.5changes to home and community-based services waiver plans regarding sharing services in 21.6order to: 21.7 (1) permit shared services for additional services, including chore, homemaker, and 21.8night supervision; 21.9 (2) permit existing shared services at higher ratios, including individualized home 21.10supports without training, individualized home supports with training, and individualized 21.11home supports with family training at a ratio of one staff person to three recipients; 21.12 (3) ensure that individuals who are seeking to share services permitted under the waiver 21.13plans in an own-home setting are not required to live in a licensed setting in order to share 21.14services so long as all other requirements are met; and 21.15 (4) issue guidance for shared services, including: 21.16 (i) informed choice for all individuals sharing the services; 21.17 (ii) guidance for when multiple shared services by different providers occur in one home 21.18and how lead agencies and individuals shall determine that shared service is appropriate to 21.19meet the needs, health, and safety of each individual for whom the lead agency provides 21.20case management or care coordination; and 21.21 (iii) guidance clarifying that an individual's decision to share services does not reduce 21.22any determination of the individual's overall or assessed needs for services. 21.23 (b) The commissioner shall develop or provide guidance outlining: 21.24 (1) instructions for shared services support planning; 21.25 (2) person-centered approaches and informed choice in shared services support planning; 21.26and 21.27 (3) required contents of shared services agreements. 21.28 (c) The commissioner shall seek and utilize stakeholder input for any proposed changes 21.29to waiver plans and any shared services guidance. 21Article 2 Sec. 20. REVISOR AGW/HL 23-0127812/21/22 22.1 Sec. 21. DIRECTION TO COMMISSIONER; LIFE-SHARING SERVICES. 22.2 Subdivision 1.Recommendations required.The commissioner of human services shall 22.3develop recommendations for establishing life sharing as a covered medical assistance 22.4waiver service. 22.5 Subd. 2.Definition.For the purposes of this section, "life sharing" means a 22.6relationship-based living arrangement between an adult with a disability and an individual 22.7or family in which they share their lives and experiences while the adult with a disability 22.8receives support from the individual or family using person-centered practices. 22.9 Subd. 3.Stakeholder engagement and consultation.(a) The commissioner must 22.10proactively solicit participation in the development of the life-sharing medical assistance 22.11service through a robust stakeholder engagement process that results in the inclusion of a 22.12racially, culturally, and geographically diverse group of interested stakeholders from each 22.13of the following groups: 22.14 (1) providers currently providing or interested in providing life-sharing services; 22.15 (2) people with disabilities accessing or interested in accessing life-sharing services; 22.16 (3) disability advocacy organizations; and 22.17 (4) lead agencies. 22.18 (b) The commissioner must proactively seek input into and assistance with the 22.19development of recommendations for establishing the life-sharing service from interested 22.20stakeholders. 22.21 (c) The commissioner must provide a method for the commissioner and interested 22.22stakeholders to cofacilitate public meetings. The first meeting must occur before January 22.2331, 2023. The commissioner must host the cofacilitated meetings at least monthly through 22.24December 31, 2023. All meetings must be accessible to all interested stakeholders, recorded, 22.25and posted online within one week of the meeting date. 22.26 Subd. 4.Required topics to be discussed during development of the 22.27recommendations.The commissioner and the interested stakeholders must discuss the 22.28following topics: 22.29 (1) the distinction between life sharing and adult family foster care; 22.30 (2) successful life-sharing models used in other states; 22.31 (3) services and supports that could be included in a life-sharing service; 22Article 2 Sec. 21. REVISOR AGW/HL 23-0127812/21/22 23.1 (4) potential barriers to providing or accessing life-sharing services; 23.2 (5) solutions to remove identified barriers to providing or accessing life-sharing services; 23.3 (6) potential medical assistance payment methodologies for life-sharing services; 23.4 (7) expanding awareness of the life-sharing model; and 23.5 (8) draft language for legislation necessary to define and implement life-sharing services. 23.6 Subd. 5.Report to the legislature.By December 31, 2024, the commissioner must 23.7provide to the chairs and ranking minority members of the house of representatives and 23.8senate committees and divisions with jurisdiction over direct care services a report 23.9summarizing the discussions between the commissioner and the interested stakeholders and 23.10the commissioner's recommendations. The report must also include any draft legislation 23.11necessary to define and implement life-sharing services. 23.12Sec. 22. REPEALER. 23.13 Minnesota Statutes 2022, section 256B.4914, subdivision 9a, is repealed. 23.14 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 23.15whichever is later. The commissioner of human services shall notify the revisor of statutes 23.16when federal approval is obtained. 23.17 ARTICLE 3 23.18 ELDERLY WAIVER 23.19Section 1. Minnesota Statutes 2022, section 256B.0913, subdivision 4, is amended to read: 23.20 Subd. 4.Eligibility for funding for services for nonmedical assistance recipients.(a) 23.21Funding for services under the alternative care program is available to persons who meet 23.22the following criteria: 23.23 (1) the person is a citizen of the United States or a United States national; 23.24 (2) the person has been determined by a community assessment under section 256B.0911 23.25to be a person who would require the level of care provided in a nursing facility, as 23.26determined under section 256B.0911, subdivision 26, but for the provision of services under 23.27the alternative care program; 23.28 (3) the person is age 65 or older; 23.29 (4) the person would be eligible for medical assistance within 135 days of admission to 23.30a nursing facility; 23Article 3 Section 1. REVISOR AGW/HL 23-0127812/21/22 24.1 (5) the person is not ineligible for the payment of long-term care services by the medical 24.2assistance program due to an asset transfer penalty under section 256B.0595 or equity 24.3interest in the home exceeding $500,000 as stated in section 256B.056; 24.4 (6) the person needs long-term care services that are not funded through other state or 24.5federal funding, or other health insurance or other third-party insurance such as long-term 24.6care insurance; 24.7 (7) except for individuals described in clause (8), the monthly cost of the alternative 24.8care services funded by the program for this person does not exceed 75 percent of the 24.9monthly limit described under section 256S.18. This monthly limit does not prohibit the 24.10alternative care client from payment for additional services, but in no case may the cost of 24.11additional services purchased under this section exceed the difference between the client's 24.12monthly service limit defined under section 256S.04, and the alternative care program 24.13monthly service limit defined in this paragraph. If care-related supplies and equipment or 24.14environmental modifications and adaptations are or will be purchased for an alternative 24.15care services recipient, the costs may be prorated on a monthly basis for up to 12 consecutive 24.16months beginning with the month of purchase. If the monthly cost of a recipient's other 24.17alternative care services exceeds the monthly limit established in this paragraph, the annual 24.18cost of the alternative care services shall must be determined. In this event, the annual cost 24.19of alternative care services shall must not exceed 12 times the monthly limit described in 24.20this paragraph; 24.21 (8) for individuals assigned a case mix classification A as described under section 24.22256S.18, with (i) no dependencies in activities of daily living, or (ii) up to two dependencies 24.23in bathing, dressing, grooming, walking, and eating when the dependency score in eating 24.24is three or greater as determined by an assessment performed under section 256B.0911, the 24.25monthly cost of alternative care services funded by the program cannot exceed $593 per 24.26month for all new participants enrolled in the program on or after July 1, 2011. This monthly 24.27limit shall be applied to all other participants who meet this criteria at reassessment. This 24.28monthly limit shall must be increased annually as described in section 256S.18. This monthly 24.29limit does not prohibit the alternative care client from payment for additional services, but 24.30in no case may the cost of additional services purchased exceed the difference between the 24.31client's monthly service limit defined in this clause and the limit described in clause (7) for 24.32case mix classification A; and 24.33 (9) the person is making timely payments of the assessed monthly fee; and 24Article 3 Section 1. REVISOR AGW/HL 23-0127812/21/22 25.1 (10) for a person participating in consumer-directed community supports, the person's 25.2monthly service limit must be equal to the monthly service limits in clause (7), except that 25.3a person assigned a case mix classification L must receive the monthly service limit for 25.4case mix classification A. 25.5 A person is ineligible if payment of the fee is over 60 days past due, unless the person 25.6agrees to: 25.7 (i) the appointment of a representative payee; 25.8 (ii) automatic payment from a financial account; 25.9 (iii) the establishment of greater family involvement in the financial management of 25.10payments; or 25.11 (iv) another method acceptable to the lead agency to ensure prompt fee payments. 25.12 (b) The lead agency may extend the client's eligibility as necessary while making 25.13arrangements to facilitate payment of past-due amounts and future premium payments. 25.14Following disenrollment due to nonpayment of a monthly fee, eligibility shall must not be 25.15reinstated for a period of 30 days. 25.16 (c) Alternative care funding under this subdivision is not available for a person who is 25.17a medical assistance recipient or who would be eligible for medical assistance without a 25.18spenddown or waiver obligation. A person whose initial application for medical assistance 25.19and the elderly waiver program is being processed may be served under the alternative care 25.20program for a period up to 60 days. If the individual is found to be eligible for medical 25.21assistance, medical assistance must be billed for services payable under the federally 25.22approved elderly waiver plan and delivered from the date the individual was found eligible 25.23for the federally approved elderly waiver plan. Notwithstanding this provision, alternative 25.24care funds may not be used to pay for any service the cost of which: (i) is payable by medical 25.25assistance; (ii) is used by a recipient to meet a waiver obligation; or (iii) is used to pay a 25.26medical assistance income spenddown for a person who is eligible to participate in the 25.27federally approved elderly waiver program under the special income standard provision. 25.28 (d) Alternative care funding is not available for a person who resides in a licensed nursing 25.29home, certified boarding care home, hospital, or intermediate care facility, except for case 25.30management services which are provided in support of the discharge planning process for 25.31a nursing home resident or certified boarding care home resident to assist with a relocation 25.32process to a community-based setting. 25Article 3 Section 1. REVISOR AGW/HL 23-0127812/21/22 26.1 (e) Alternative care funding is not available for a person whose income is greater than 26.2the maintenance needs allowance under section 256S.05, but equal to or less than 120 percent 26.3of the federal poverty guideline effective July 1 in the fiscal year for which alternative care 26.4eligibility is determined, who would be eligible for the elderly waiver with a waiver 26.5obligation. 26.6 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 26.7whichever is later. The commissioner of human services shall notify the revisor of statutes 26.8when federal approval is obtained. 26.9 Sec. 2. Minnesota Statutes 2022, section 256B.0913, subdivision 5, is amended to read: 26.10 Subd. 5.Services covered under alternative care.Alternative care funding may be 26.11used for payment of costs of: 26.12 (1) adult day services and adult day services bath; 26.13 (2) home care; 26.14 (3) homemaker services; 26.15 (4) personal care; 26.16 (5) case management and conversion case management; 26.17 (6) respite care; 26.18 (7) specialized supplies and equipment; 26.19 (8) home-delivered meals; 26.20 (9) nonmedical transportation; 26.21 (10) nursing services; 26.22 (11) chore services; 26.23 (12) companion services; 26.24 (13) nutrition services; 26.25 (14) family caregiver training and education; 26.26 (15) coaching and counseling; 26.27 (16) telehome care to provide services in their own homes in conjunction with in-home 26.28visits; 26Article 3 Sec. 2. REVISOR AGW/HL 23-0127812/21/22 27.1 (17) consumer-directed community supports under the alternative care programs which 27.2are available statewide and limited to the average monthly expenditures representative of 27.3all alternative care program participants for the same case mix resident class assigned in 27.4the most recent fiscal year for which complete expenditure data is available; 27.5 (18) environmental accessibility and adaptations; and 27.6 (19) discretionary services, for which lead agencies may make payment from their 27.7alternative care program allocation for services not otherwise defined in this section or 27.8section 256B.0625, following approval by the commissioner. 27.9 Total annual payments for discretionary services for all clients served by a lead agency 27.10must not exceed 25 percent of that lead agency's annual alternative care program base 27.11allocation, except that when alternative care services receive federal financial participation 27.12under the 1115 waiver demonstration, funding shall be allocated in accordance with 27.13subdivision 17. 27.14 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 27.15whichever is later. The commissioner of human services shall notify the revisor of statutes 27.16when federal approval is obtained. 27.17Sec. 3. Minnesota Statutes 2022, section 256S.15, subdivision 2, is amended to read: 27.18 Subd. 2.Foster care limit.The elderly waiver payment for the foster care service in 27.19combination with the payment for all other elderly waiver services, including case 27.20management, must not exceed the monthly case mix budget cap for the participant as 27.21specified in sections 256S.18, subdivision 3, and 256S.19, subdivisions subdivision 3 and 27.224. 27.23 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 27.24whichever is later. The commissioner of human services shall notify the revisor of statutes 27.25when federal approval is obtained. 27.26Sec. 4. Minnesota Statutes 2022, section 256S.18, is amended by adding a subdivision to 27.27read: 27.28 Subd. 3a.Monthly case mix budget caps for consumer-directed community 27.29supports.The monthly case mix budget caps for each case mix classification for 27.30consumer-directed community supports must be equal to the monthly case mix budget caps 27.31in subdivision 3. 27.32 EFFECTIVE DATE.This section is effective January 1, 2024. 27Article 3 Sec. 4. REVISOR AGW/HL 23-0127812/21/22 28.1 Sec. 5. Minnesota Statutes 2022, section 256S.19, subdivision 3, is amended to read: 28.2 Subd. 3.Calculation of monthly conversion budget cap without consumer-directed 28.3community supports caps.(a) The elderly waiver monthly conversion budget cap for the 28.4cost of elderly waiver services without consumer-directed community supports must be 28.5based on the nursing facility case mix adjusted total payment rate of the nursing facility 28.6where the elderly waiver applicant currently resides for the applicant's case mix classification 28.7as determined according to section 256R.17. 28.8 (b) The elderly waiver monthly conversion budget cap for the cost of elderly waiver 28.9services without consumer-directed community supports shall must be calculated by 28.10multiplying the applicable nursing facility case mix adjusted total payment rate by 365, 28.11dividing by 12, and subtracting the participant's maintenance needs allowance. 28.12 (c) A participant's initially approved monthly conversion budget cap for elderly waiver 28.13services without consumer-directed community supports shall must be adjusted at least 28.14annually as described in section 256S.18, subdivision 5. 28.15 (d) Conversion budget caps for individuals participating in consumer-directed community 28.16supports must also be set as described in paragraphs (a) to (c). 28.17 EFFECTIVE DATE.This section is effective January 1, 2024. 28.18Sec. 6. Minnesota Statutes 2022, section 256S.205, subdivision 3, is amended to read: 28.19 Subd. 3.Rate adjustment eligibility criteria.Only facilities satisfying all of the 28.20following conditions on September 1 of the application year are eligible for designation as 28.21a disproportionate share facility: 28.22 (1) at least 83.5 80 percent of the residents of the facility are customized living residents; 28.23and 28.24 (2) at least 70 50 percent of the customized living residents are elderly waiver participants. 28.25 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 28.26whichever is later. The commissioner of human services shall notify the revisor of statutes 28.27when federal approval is obtained. 28.28Sec. 7. Minnesota Statutes 2022, section 256S.205, subdivision 5, is amended to read: 28.29 Subd. 5.Rate adjustment; rate floor.(a) Notwithstanding the 24-hour customized 28.30living monthly service rate limits under section 256S.202, subdivision 2, and the component 28.31service rates established under section 256S.201, subdivision 4, the commissioner must 28Article 3 Sec. 7. REVISOR AGW/HL 23-0127812/21/22 29.1establish a rate floor equal to $119 $139 per resident per day for 24-hour customized living 29.2services provided to an elderly waiver participant in a designated disproportionate share 29.3facility. 29.4 (b) The commissioner must apply the rate floor to the services described in paragraph 29.5(a) provided during the rate year. 29.6 (c) The commissioner must adjust the rate floor by the same amount and at the same 29.7time as any adjustment to the 24-hour customized living monthly service rate limits under 29.8section 256S.202, subdivision 2. 29.9 (d) The commissioner shall not implement the rate floor under this section if the 29.10customized living rates established under sections 256S.21 to 256S.215 will be implemented 29.11at 100 percent on January 1 of the year following an application year. 29.12 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 29.13whichever is later. The commissioner of human services shall notify the revisor of statutes 29.14when federal approval is obtained. 29.15Sec. 8. Minnesota Statutes 2022, section 256S.2101, subdivision 2, is amended to read: 29.16 Subd. 2.Phase-in for elderly waiver rates.Except for home-delivered meals as 29.17described in section 256S.215, subdivision 15 the services in subdivisions 4 and 5, all rates 29.18and rate components for elderly waiver, elderly waiver customized living, and elderly waiver 29.19foster care under this chapter; alternative care under section 256B.0913; and essential 29.20community supports under section 256B.0922 shall must be the sum of 18.8 21.6 percent 29.21of the rates calculated under sections 256S.211 to 256S.215, and 81.2 78.4 percent of the 29.22rates calculated using the rate methodology in effect as of June 30, 2017. The rate for 29.23home-delivered meals shall be the sum of the service rate in effect as of January 1, 2019, 29.24and the increases described in section 256S.215, subdivision 15. 29.25 EFFECTIVE DATE.This section is effective January 1, 2024. 29.26Sec. 9. Minnesota Statutes 2022, section 256S.2101, is amended by adding a subdivision 29.27to read: 29.28 Subd. 3.Spending requirements.(a) At least 80 percent of the marginal increase in 29.29revenue from the implementation of any adjustments to a phase-in proportion under this 29.30section, or any adjustments to the base wage indices under section 256S.212, for services 29.31rendered on or after the day of implementation of the modified phase-in proportion or 29Article 3 Sec. 9. REVISOR AGW/HL 23-0127812/21/22 30.1applicable adjustment to the base wage indices must be used to increase compensation-related 30.2costs for employees directly employed by the provider. 30.3 (b) For the purposes of this subdivision, compensation-related costs include: 30.4 (1) wages and salaries; 30.5 (2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment 30.6taxes, workers' compensation, and mileage reimbursement; 30.7 (3) the employer's paid share of health and dental insurance, life insurance, disability 30.8insurance, long-term care insurance, uniform allowance, pensions, and contributions to 30.9employee retirement accounts; and 30.10 (4) benefits that address direct support professional workforce needs above and beyond 30.11what employees were offered prior to the implementation of adjusted phase-in proportions 30.12under this section, including any concurrent or subsequent adjustments to the base wage 30.13indices. 30.14 (c) Compensation-related costs for persons employed in the central office of a corporation 30.15or entity that has an ownership interest in the provider or exercises control over the provider, 30.16or for persons paid by the provider under a management contract, do not count toward the 30.1780 percent requirement under this subdivision. 30.18 (d) A provider agency or individual provider that receives additional revenue subject to 30.19the requirements of this subdivision shall prepare, and upon request submit to the 30.20commissioner, a distribution plan that specifies the amount of money the provider expects 30.21to receive that is subject to the requirements of this subdivision, including how that money 30.22was or will be distributed to increase compensation-related costs for employees. Within 60 30.23days of final implementation of the new phase-in proportion or adjustment to the base wage 30.24indices subject to the requirements of this subdivision, the provider must post the distribution 30.25plan and leave it posted for a period of at least six months in an area of the provider's 30.26operation to which all direct support professionals have access. The posted distribution plan 30.27must include instructions regarding how to contact the commissioner, or the commissioner's 30.28representative, if an employee has not received the compensation-related increase described 30.29in the plan. 30.30 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 30.31whichever is later. The commissioner of human services shall notify the revisor of statutes 30.32when federal approval is obtained. 30Article 3 Sec. 9. REVISOR AGW/HL 23-0127812/21/22 31.1 Sec. 10. Minnesota Statutes 2022, section 256S.2101, is amended by adding a subdivision 31.2to read: 31.3 Subd. 4.Phase-in for home-delivered meals rate.The home-delivered meals rate for 31.4the elderly waiver under this chapter; alternative care under section 256B.0913; and essential 31.5community supports under section 256B.0922 must be the sum of 65 percent of the rate in 31.6section 256S.215, subdivision 15, and 35 percent of the rate calculated using the rate 31.7methodology in effect as of June 30, 2017. 31.8 EFFECTIVE DATE.This section is effective January 1, 2024. 31.9 Sec. 11. Minnesota Statutes 2022, section 256S.2101, is amended by adding a subdivision 31.10to read: 31.11 Subd. 5.Service rates exempt from phase-in.Subdivision 2 does not apply to rates 31.12for homemaker services described in section 256S.215, subdivisions 9 to 11. 31.13 EFFECTIVE DATE.This section is effective January 1, 2024. 31.14Sec. 12. Minnesota Statutes 2022, section 256S.212, is amended to read: 31.15 256S.212 RATE SETTING; BASE WAGE INDEX. 31.16 Subdivision 1.Updating SOC codes.If any of the SOC codes and positions used in 31.17this section are no longer available, the commissioner shall, in consultation with stakeholders, 31.18select a new SOC code and position that is the closest match to the previously used SOC 31.19position. 31.20 Subd. 1a.Updating base wages.(a) On January 1, 2024, and every two years thereafter, 31.21the commissioner must update the base wages for the services listed in paragraph (b) based 31.22on the most recently available Bureau of Labor Statistics Minneapolis-St. Paul-Bloomington, 31.23MN-WI MetroSA data. Any marginal increase in revenue from implementation of any 31.24adjustment to base wages under this section, including any modifications to SOC codes or 31.25positions, is subject to the spending requirements under section 256S.2101, subdivision 3. 31.26 (b) This subdivision applies to: 31.27 (1) the homemaker services and assistance with personal care base wage under subdivision 31.288; 31.29 (2) the homemaker services and cleaning base wage under subdivision 9; 31.30 (3) the homemaker services and home management base wage under subdivision 10; 31.31and 31Article 3 Sec. 12. REVISOR AGW/HL 23-0127812/21/22 32.1 (4) for the purposes of calculating the unlicensed supervisor supervision wage component 32.2used to calculate the homemaker services rates under section 256S.215, subdivisions 9 to 32.311, the unlicensed supervisor base wage under subdivision 15. 32.4 Subd. 2.Home management and support services base wage.For customized living, 32.5and foster care, and residential care component services, the home management and support 32.6services base wage equals 33.33 percent of the Minneapolis-St. Paul-Bloomington, MN-WI 32.7MetroSA average wage for home health and personal and home care aide aides (SOC code 32.839-9021 31-1120); 33.33 percent of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA 32.9average wage for food preparation workers (SOC code 35-2021); and 33.34 percent of the 32.10Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for maids and 32.11housekeeping cleaners (SOC code 37-2012). 32.12 Subd. 3.Home care aide base wage.For customized living, and foster care, and 32.13residential care component services, the home care aide base wage equals 50 75 percent of 32.14the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for home health 32.15and personal care aides (SOC code 31-1011 31-1120); and 50 25 percent of the 32.16Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for nursing assistants 32.17(SOC code 31-1014 31-1131). 32.18 Subd. 4.Home health aide base wage.For customized living, and foster care, and 32.19residential care component services, the home health aide base wage equals 20 33.33 percent 32.20of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for licensed 32.21practical and licensed vocational nurses (SOC code 29-2061); and 80 33.33 percent of the 32.22Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for nursing assistants 32.23(SOC code 31-1014 31-1131); and 33.34 percent of the Minneapolis-St. Paul-Bloomington, 32.24MN-WI MetroSA average wage for home health and personal care aides (SOC code 32.2531-1120). 32.26 Subd. 5.Medication setups by licensed nurse base wage.For customized living, and 32.27foster care, and residential care component services, the medication setups by licensed nurse 32.28base wage equals ten 25 percent of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA 32.29average wage for licensed practical and licensed vocational nurses (SOC code 29-2061); 32.30and 90 75 percent of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average 32.31wage for registered nurses (SOC code 29-1141). 32.32 Subd. 6.Chore services base wage.The chore services base wage equals 100 50 percent 32.33of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for landscaping 32.34and groundskeeping workers (SOC code 37-3011); and 50 percent of the Minneapolis-St. 32Article 3 Sec. 12. REVISOR AGW/HL 23-0127812/21/22 33.1Paul-Bloomington, MN-WI MetroSA average wage for maids and housekeeping cleaners 33.2(SOC code 37-2012). 33.3 Subd. 7.Companion services base wage.The companion services base wage equals 33.450 80 percent of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage 33.5for home health and personal and home care aides (SOC code 39-9021 31-1120); and 50 33.620 percent of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for 33.7maids and housekeeping cleaners (SOC code 37-2012). 33.8 Subd. 8.Homemaker services and assistance with personal care base wage.The 33.9homemaker services and assistance with personal care base wage equals 60 50 percent of 33.10the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for home health 33.11and personal and home care aide aides (SOC code 39-9021 31-1120); 20 and 50 percent of 33.12the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for nursing assistants 33.13(SOC code 31-1014 31-1131); and 20 percent of the Minneapolis-St. Paul-Bloomington, 33.14MN-WI MetroSA average wage for maids and housekeeping cleaners (SOC code 37-2012). 33.15 Subd. 9.Homemaker services and cleaning base wage.The homemaker services and 33.16cleaning base wage equals 60 percent of the Minneapolis-St. Paul-Bloomington, MN-WI 33.17MetroSA average wage for personal and home care aide (SOC code 39-9021); 20 percent 33.18of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for nursing 33.19assistants (SOC code 31-1014); and 20 100 percent of the Minneapolis-St. Paul-Bloomington, 33.20MN-WI MetroSA average wage for maids and housekeeping cleaners (SOC code 37-2012). 33.21 Subd. 10.Homemaker services and home management base wage.The homemaker 33.22services and home management base wage equals 60 50 percent of the Minneapolis-St. 33.23Paul-Bloomington, MN-WI MetroSA average wage for home health and personal and home 33.24care aide aides (SOC code 39-9021 31-1120); 20 and 50 percent of the Minneapolis-St. 33.25Paul-Bloomington, MN-WI MetroSA average wage for nursing assistants (SOC code 33.2631-1014 31-1131); and 20 percent of the Minneapolis-St. Paul-Bloomington, MN-WI 33.27MetroSA average wage for maids and housekeeping cleaners (SOC code 37-2012). 33.28 Subd. 11.In-home respite care services base wage.The in-home respite care services 33.29base wage equals five 15 percent of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA 33.30average wage for registered nurses (SOC code 29-1141); 75 percent of the Minneapolis-St. 33.31Paul-Bloomington, MN-WI MetroSA average wage for nursing assistants home health and 33.32personal care aides (SOC code 31-1014 31-1120); and 20 ten percent of the Minneapolis-St. 33.33Paul-Bloomington, MN-WI MetroSA average wage for licensed practical and licensed 33.34vocational nurses (SOC code 29-2061). 33Article 3 Sec. 12. REVISOR AGW/HL 23-0127812/21/22 34.1 Subd. 12.Out-of-home respite care services base wage.The out-of-home respite care 34.2services base wage equals five 15 percent of the Minneapolis-St. Paul-Bloomington, MN-WI 34.3MetroSA average wage for registered nurses (SOC code 29-1141); 75 percent of the 34.4Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for nursing assistants 34.5home health and personal care aides (SOC code 31-1014 31-1120); and 20 ten percent of 34.6the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for licensed practical 34.7and licensed vocational nurses (SOC code 29-2061). 34.8 Subd. 13.Individual community living support base wage.The individual community 34.9living support base wage equals 20 60 percent of the Minneapolis-St. Paul-Bloomington, 34.10MN-WI MetroSA average wage for licensed practical and licensed vocational nurses social 34.11and human services aides (SOC code 29-2061 21-1093); and 80 40 percent of the 34.12Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for nursing assistants 34.13(SOC code 31-1014 31-1131). 34.14 Subd. 14.Registered nurse base wage.The registered nurse base wage equals 100 34.15percent of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for 34.16registered nurses (SOC code 29-1141). 34.17 Subd. 15.Social worker Unlicensed supervisor base wage.The social worker 34.18unlicensed supervisor base wage equals 100 percent of the Minneapolis-St. 34.19Paul-Bloomington, MN-WI MetroSA average wage for medical and public health social 34.20first-line supervisors of personal service workers (SOC code 21-1022 39-1098). 34.21 Subd. 16.Adult day services base wage.The adult day services base wage equals 75 34.22percent of the Minneapolis-St. Paul-Bloomington, MN-WI MetroSA average wage for home 34.23health and personal care aides (SOC code 31-1120); and 25 percent of the Minneapolis-St. 34.24Paul-Bloomington, MN-WI MetroSA average wage for nursing assistants (SOC code 34.2531-1131). 34.26 EFFECTIVE DATE.This section is effective January 1, 2024. 34.27Sec. 13. Minnesota Statutes 2022, section 256S.213, is amended to read: 34.28 256S.213 RATE SETTING; FACTORS AND SUPERVISION WAGE 34.29COMPONENTS . 34.30 Subdivision 1.Payroll taxes and benefits factor.The payroll taxes and benefits factor 34.31is the sum of net payroll taxes and benefits, divided by the sum of all salaries for all nursing 34.32facilities on the most recent and available cost report. 34Article 3 Sec. 13. REVISOR AGW/HL 23-0127812/21/22 35.1 Subd. 2.General and administrative factor.The general and administrative factor is 35.2the difference of net general and administrative expenses and administrative salaries, divided 35.3by total operating expenses for all nursing facilities on the most recent and available cost 35.4report 14.4 percent. 35.5 Subd. 3.Program plan support factor.(a) The program plan support factor is 12.8 ten 35.6percent for the following services to cover the cost of direct service staff needed to provide 35.7support for home and community-based the service when not engaged in direct contact with 35.8participants.: 35.9 (1) adult day services; 35.10 (2) customized living; and 35.11 (3) foster care. 35.12 (b) The program plan support factor is 15.5 percent for the following services to cover 35.13the cost of direct service staff needed to provide support for the service when not engaged 35.14in direct contact with participants: 35.15 (1) chore services; 35.16 (2) companion services; 35.17 (3) homemaker services and assistance with personal care; 35.18 (4) homemaker services and cleaning; 35.19 (5) homemaker services and home management; 35.20 (6) in-home respite care; 35.21 (7) individual community living support; and 35.22 (8) out-of-home respite care. 35.23 Subd. 4.Registered nurse management and supervision factor wage component.The 35.24registered nurse management and supervision factor wage component equals 15 percent of 35.25the registered nurse adjusted base wage as defined in section 256S.214. 35.26 Subd. 5.Social worker Unlicensed supervisor supervision factor wage 35.27component.The social worker unlicensed supervisor supervision factor wage component 35.28equals 15 percent of the social worker unlicensed supervisor adjusted base wage as defined 35.29in section 256S.214. 35.30 Subd. 6.Facility and equipment factor.The facility and equipment factor for adult 35.31day services is 16.2 percent. 35Article 3 Sec. 13. REVISOR AGW/HL 23-0127812/21/22 36.1 Subd. 7.Food, supplies, and transportation factor.The food, supplies, and 36.2transportation factor for adult day services is 24 percent. 36.3 Subd. 8.Supplies and transportation factor.The supplies and transportation factor 36.4for the following services is 1.56 percent: 36.5 (1) chore services; 36.6 (2) companion services; 36.7 (3) homemaker services and assistance with personal care; 36.8 (4) homemaker services and cleaning; 36.9 (5) homemaker services and home management; 36.10 (6) in-home respite care; 36.11 (7) individual community living support; and 36.12 (8) out-of-home respite care. 36.13 Subd. 9.Absence factor.The absence factor for the following services is 4.5 percent: 36.14 (1) adult day services; 36.15 (2) chore services; 36.16 (3) companion services; 36.17 (4) homemaker services and assistance with personal care; 36.18 (5) homemaker services and cleaning; 36.19 (6) homemaker services and home management; 36.20 (7) in-home respite care; 36.21 (8) individual community living support; and 36.22 (9) out-of-home respite care. 36.23 EFFECTIVE DATE.This section is effective January 1, 2024. 36.24Sec. 14. Minnesota Statutes 2022, section 256S.214, is amended to read: 36.25 256S.214 RATE SETTING; ADJUSTED BASE WAGE. 36.26 For the purposes of section 256S.215, the adjusted base wage for each position equals 36.27the position's base wage under section 256S.212 plus: 36Article 3 Sec. 14. REVISOR AGW/HL 23-0127812/21/22 37.1 (1) the position's base wage multiplied by the payroll taxes and benefits factor under 37.2section 256S.213, subdivision 1; 37.3 (2) the position's base wage multiplied by the general and administrative factor under 37.4section 256S.213, subdivision 2; and 37.5 (3) (2) the position's base wage multiplied by the applicable program plan support factor 37.6under section 256S.213, subdivision 3.; and 37.7 (3) the position's base wage multiplied by the absence factor under section 256S.213, 37.8subdivision 9, if applicable. 37.9 EFFECTIVE DATE.This section is effective January 1, 2024. 37.10Sec. 15. Minnesota Statutes 2022, section 256S.215, is amended to read: 37.11 256S.215 RATE SETTING; COMPONENT RATES. 37.12 Subdivision 1.Medication setups by licensed nurse component rate.The component 37.13rate for medication setups by a licensed nurse equals the medication setups by licensed 37.14nurse adjusted base wage. 37.15 Subd. 2.Home management and support services component rate.The component 37.16rate for home management and support services is calculated as follows: 37.17 (1) sum the home management and support services adjusted base wage plus and the 37.18registered nurse management and supervision factor. wage component; 37.19 (2) multiply the result of clause (1) by the general and administrative factor; and 37.20 (3) sum the results of clauses (1) and (2). 37.21 Subd. 3.Home care aide services component rate.The component rate for home care 37.22aide services is calculated as follows: 37.23 (1) sum the home health aide services adjusted base wage plus and the registered nurse 37.24management and supervision factor. wage component; 37.25 (2) multiply clause (1) by the general and administrative factor; and 37.26 (3) sum the results of clauses (1) and (2). 37.27 Subd. 4.Home health aide services component rate.The component rate for home 37.28health aide services is calculated as follows: 37.29 (1) sum the home health aide services adjusted base wage plus and the registered nurse 37.30management and supervision factor. wage component; 37Article 3 Sec. 15. REVISOR AGW/HL 23-0127812/21/22 38.1 (2) multiply the result of clause (1) by the general and administrative factor; and 38.2 (3) sum the results of clauses (1) and (2). 38.3 Subd. 5.Socialization component rate.The component rate under elderly waiver 38.4customized living for one-to-one socialization equals the home management and support 38.5services component rate. 38.6 Subd. 6.Transportation component rate.The component rate under elderly waiver 38.7customized living for one-to-one transportation equals the home management and support 38.8services component rate. 38.9 Subd. 7.Chore services rate.The 15-minute unit rate for chore services is calculated 38.10as follows: 38.11 (1) sum the chore services adjusted base wage and the social worker unlicensed supervisor 38.12supervision factor wage component; and 38.13 (2) multiply the result of clause (1) by the general and administrative factor; 38.14 (3) multiply the result of clause (1) by the supplies and transportation factor; and 38.15 (4) sum the results of clauses (1) to (3) and divide the result of clause (1) by four. 38.16 Subd. 8.Companion services rate.The 15-minute unit rate for companion services is 38.17calculated as follows: 38.18 (1) sum the companion services adjusted base wage and the social worker unlicensed 38.19supervisor supervision factor wage component; and 38.20 (2) multiply the result of clause (1) by the general and administrative factor; 38.21 (3) multiply the result of clause (1) by the supplies and transportation factor; and 38.22 (4) sum the results of clauses (1) to (3) and divide the result of clause (1) by four. 38.23 Subd. 9.Homemaker services and assistance with personal care rate.The 15-minute 38.24unit rate for homemaker services and assistance with personal care is calculated as follows: 38.25 (1) sum the homemaker services and assistance with personal care adjusted base wage 38.26and the registered nurse management and unlicensed supervisor supervision factor wage 38.27component; and 38.28 (2) multiply the result of clause (1) by the general and administrative factor; 38.29 (3) multiply the result of clause (1) by the supplies and transportation factor; and 38.30 (4) sum the results of clauses (1) to (3) and divide the result of clause (1) by four. 38Article 3 Sec. 15. REVISOR AGW/HL 23-0127812/21/22 39.1 Subd. 10.Homemaker services and cleaning rate.The 15-minute unit rate for 39.2homemaker services and cleaning is calculated as follows: 39.3 (1) sum the homemaker services and cleaning adjusted base wage and the registered 39.4nurse management and unlicensed supervisor supervision factor base wage; and 39.5 (2) multiply the result of clause (1) by the general and administrative factor; 39.6 (3) multiply the result of clause (1) by the supplies and transportation factor; and 39.7 (4) sum the results of clauses (1) to (3) and divide the result of clause (1) by four. 39.8 Subd. 11.Homemaker services and home management rate.The 15-minute unit rate 39.9for homemaker services and home management is calculated as follows: 39.10 (1) sum the homemaker services and home management adjusted base wage and the 39.11registered nurse management and unlicensed supervisor supervision factor wage component; 39.12and 39.13 (2) multiply the result of clause (1) by the general and administrative factor; 39.14 (3) multiply the result of clause (1) by the supplies and transportation factor; and 39.15 (4) sum the results of clauses (1) to (3) and divide the result of clause (1) by four. 39.16 Subd. 12.In-home respite care services rates.(a) The 15-minute unit rate for in-home 39.17respite care services is calculated as follows: 39.18 (1) sum the in-home respite care services adjusted base wage and the registered nurse 39.19management and supervision factor wage component; and 39.20 (2) multiply the result of clause (1) by the general and administrative factor; 39.21 (3) multiply the result of clause (1) by the supplies and transportation factor; and 39.22 (4) sum the results of clauses (1) to (3) and divide the result of clause (1) by four. 39.23 (b) The in-home respite care services daily rate equals the in-home respite care services 39.2415-minute unit rate multiplied by 18. 39.25 Subd. 13.Out-of-home respite care services rates.(a) The 15-minute unit rate for 39.26out-of-home respite care is calculated as follows: 39.27 (1) sum the out-of-home respite care services adjusted base wage and the registered 39.28nurse management and supervision factor wage component; and 39.29 (2) multiply the result of clause (1) by the general and administrative factor; 39.30 (3) multiply the result of clause (1) by the supplies and transportation factor; and 39Article 3 Sec. 15. REVISOR AGW/HL 23-0127812/21/22 40.1 (4) sum the results of clauses (1) to (3) and divide the result of clause (1) by four. 40.2 (b) The out-of-home respite care services daily rate equals the 15-minute unit rate for 40.3out-of-home respite care services multiplied by 18. 40.4 Subd. 14.Individual community living support rate.The individual community living 40.5support rate is calculated as follows: 40.6 (1) sum the home care aide individual community living support adjusted base wage 40.7and the social worker registered nurse management and supervision factor wage component; 40.8and 40.9 (2) multiply the result of clause (1) by the general and administrative factor; 40.10 (3) multiply the result of clause (1) by the supplies and transportation factor; and 40.11 (4) sum the results of clauses (1) to (3) and divide the result of clause (1) by four. 40.12 Subd. 15.Home-delivered meals rate.The home-delivered meals rate equals $9.30 40.13$8.17. On July 1 of each year, the commissioner shall increase update the home delivered 40.14meals rate every July 1 by the percent increase in the nursing facility dietary per diem using 40.15the two most recent and available nursing facility cost reports. 40.16 Subd. 16.Adult day services rate.The 15-minute unit rate for adult day services, with 40.17an assumed staffing ratio of one staff person to four participants, is the sum of is calculated 40.18as follows: 40.19 (1) one-sixteenth of the home care aide divide the adult day services adjusted base wage, 40.20except that the general and administrative factor used to determine the home care aide 40.21services adjusted base wage is 20 percent by five to reflect an assumed staffing ratio of one 40.22to five; 40.23 (2) one-fourth of the registered nurse management and supervision factor sum the result 40.24of clause (1) and the registered nurse management and supervision wage component; and 40.25 (3) $0.63 to cover the cost of meals. multiply the result of clause (2) by the general and 40.26administrative factor; 40.27 (4) multiply the result of clause (2) by the facility and equipment factor; 40.28 (5) multiply the result of clause (2) by the food, supplies, and transportation factor; and 40.29 (6) sum the results of clauses (2) to (5) and divide the result by four. 40.30 Subd. 17.Adult day services bath rate.The 15-minute unit rate for adult day services 40.31bath is the sum of calculated as follows: 40Article 3 Sec. 15. REVISOR AGW/HL 23-0127812/21/22 41.1 (1) one-fourth of the home care aide sum the adult day services adjusted base wage, 41.2except that the general and administrative factor used to determine the home care aide 41.3services adjusted base wage is 20 percent and the registered nurse management and 41.4supervision wage component; 41.5 (2) one-fourth of the registered nurse management and supervision factor multiply the 41.6result of clause (1) by the general and administrative factor; and 41.7 (3) $0.63 to cover the cost of meals. multiply the result of clause (1) by the facility and 41.8equipment factor; 41.9 (4) multiply the result of clause (1) by the food, supplies, and transportation factor; and 41.10 (5) sum the results of clauses (1) to (4) and divide the result by four. 41.11 EFFECTIVE DATE.This section is effective the January 1, 2024. 41.12Sec. 16. DIRECTION TO COMMISSIONER; ESTABLISHING SHARED SERVICE 41.13RATES. 41.14 The commissioner shall establish a rate system for shared homemaker services and 41.15shared chore services based on homemaker rates for a single individual under section 41.16256S.215, subdivisions 9 to 11, and the chore rate for a single individual under section 41.17256S.215, subdivision 7. For two persons sharing services, the rate paid to a provider must 41.18not exceed 1-1/2 times the rate paid for serving a single individual, and for three persons 41.19sharing services, the rate paid to a provider must not exceed two times the rate paid for 41.20serving a single individual. These rates apply only when all of the criteria for the shared 41.21service have been met. 41.22Sec. 17. REVISOR INSTRUCTION. 41.23 (a) In Minnesota Statutes, chapter 256S, the revisor of statutes shall change the following 41.24terms wherever the terms appear: 41.25 (1) "homemaker services and assistance with personal care" to "homemaker assistance 41.26with personal care services"; 41.27 (2) "homemaker services and cleaning" to "homemaker cleaning services"; and 41.28 (3) "homemaker services and home management" to "homemaker home management 41.29services." 41.30 (b) The revisor shall make any necessary grammatical changes related to the changes 41.31in terms under paragraph (a). 41Article 3 Sec. 17. REVISOR AGW/HL 23-0127812/21/22 42.1 EFFECTIVE DATE.This section is effective July 1, 2023. 42.2 Sec. 18. REPEALER. 42.3 Minnesota Statutes 2022, section 256S.19, subdivision 4, is repealed. 42.4 EFFECTIVE DATE.This section is effective January 1, 2024. 42.5 ARTICLE 4 42.6 HOME CARE 42.7 Section 1. Minnesota Statutes 2022, section 256B.0659, subdivision 1, is amended to read: 42.8 Subdivision 1.Definitions.(a) For the purposes of this section, the terms defined in 42.9paragraphs (b) to (r) have the meanings given unless otherwise provided in text. 42.10 (b) "Activities of daily living" means grooming, dressing, bathing, transferring, mobility, 42.11positioning, eating, and toileting. 42.12 (c) "Behavior," effective January 1, 2010, means a category to determine the home care 42.13rating and is based on the criteria found in this section. "Level I behavior" means physical 42.14aggression towards toward self, others, or destruction of property that requires the immediate 42.15response of another person. 42.16 (d) "Complex health-related needs," effective January 1, 2010, means a category to 42.17determine the home care rating and is based on the criteria found in this section. 42.18 (e) "Critical activities of daily living," effective January 1, 2010, means transferring, 42.19mobility, eating, and toileting. 42.20 (f) "Dependency in activities of daily living" means a person requires assistance to begin 42.21and complete one or more of the activities of daily living. 42.22 (g) "Extended personal care assistance service" means personal care assistance services 42.23included in a service plan under one of the home and community-based services waivers 42.24authorized under chapter 256S and sections 256B.092, subdivision 5, and 256B.49, which 42.25exceed the amount, duration, and frequency of the state plan personal care assistance services 42.26for participants who: 42.27 (1) need assistance provided periodically during a week, but less than daily will not be 42.28able to remain in their homes without the assistance, and other replacement services are 42.29more expensive or are not available when personal care assistance services are to be reduced; 42.30or 42Article 4 Section 1. REVISOR AGW/HL 23-0127812/21/22 43.1 (2) need additional personal care assistance services beyond the amount authorized by 43.2the state plan personal care assistance assessment in order to ensure that their safety, health, 43.3and welfare are provided for in their homes. 43.4 (h) "Health-related procedures and tasks" means procedures and tasks that can be 43.5delegated or assigned by a licensed health care professional under state law to be performed 43.6by a personal care assistant. 43.7 (i) "Instrumental activities of daily living" means activities to include meal planning and 43.8preparation; basic assistance with paying bills; shopping for food, clothing, and other 43.9essential items; performing household tasks integral to the personal care assistance services; 43.10communication by telephone and other media; and traveling, including to medical 43.11appointments and to participate in the community. For purposes of this paragraph, traveling 43.12includes driving and accompanying the recipient in the recipient's chosen mode of 43.13transportation and according to the recipient's personal care assistance care plan. 43.14 (j) "Managing employee" has the same definition as Code of Federal Regulations, title 43.1542, section 455. 43.16 (k) "Qualified professional" means a professional providing supervision of personal care 43.17assistance services and staff as defined in section 256B.0625, subdivision 19c. 43.18 (l) "Personal care assistance provider agency" means a medical assistance enrolled 43.19provider that provides or assists with providing personal care assistance services and includes 43.20a personal care assistance provider organization, personal care assistance choice agency, 43.21class A licensed nursing agency, and Medicare-certified home health agency. 43.22 (m) "Personal care assistant" or "PCA" means an individual employed by a personal 43.23care assistance agency who provides personal care assistance services. 43.24 (n) "Personal care assistance care plan" means a written description of personal care 43.25assistance services developed by the personal care assistance provider according to the 43.26service plan. 43.27 (o) "Responsible party" means an individual who is capable of providing the support 43.28necessary to assist the recipient to live in the community. 43.29 (p) "Self-administered medication" means medication taken orally, by injection, nebulizer, 43.30or insertion, or applied topically without the need for assistance. 43.31 (q) "Service plan" means a written summary of the assessment and description of the 43.32services needed by the recipient. 43Article 4 Section 1. REVISOR AGW/HL 23-0127812/21/22 44.1 (r) "Wages and benefits" means wages and salaries, the employer's share of FICA taxes, 44.2Medicare taxes, state and federal unemployment taxes, workers' compensation, mileage 44.3reimbursement, health and dental insurance, life insurance, disability insurance, long-term 44.4care insurance, uniform allowance, and contributions to employee retirement accounts. 44.5 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 44.6whichever is later. The commissioner of human services shall notify the revisor of statutes 44.7when federal approval is obtained. 44.8 Sec. 2. Minnesota Statutes 2022, section 256B.0659, subdivision 12, is amended to read: 44.9 Subd. 12.Documentation of personal care assistance services provided.(a) Personal 44.10care assistance services for a recipient must be documented daily by each personal care 44.11assistant, on a time sheet form approved by the commissioner. All documentation may be 44.12web-based, electronic, or paper documentation. The completed form must be submitted on 44.13a monthly basis to the provider and kept in the recipient's health record. 44.14 (b) The activity documentation must correspond to the personal care assistance care plan 44.15and be reviewed by the qualified professional. 44.16 (c) The personal care assistant time sheet must be on a form approved by the 44.17commissioner documenting time the personal care assistant provides services in the home. 44.18The following criteria must be included in the time sheet: 44.19 (1) full name of personal care assistant and individual provider number; 44.20 (2) provider name and telephone numbers; 44.21 (3) full name of recipient and either the recipient's medical assistance identification 44.22number or date of birth; 44.23 (4) consecutive dates, including month, day, and year, and arrival and departure times 44.24with a.m. or p.m. notations; 44.25 (5) signatures of recipient or the responsible party; 44.26 (6) personal signature of the personal care assistant; 44.27 (7) any shared care provided, if applicable; 44.28 (8) a statement that it is a federal crime to provide false information on personal care 44.29service billings for medical assistance payments; and 44.30 (9) dates and location of recipient stays in a hospital, care facility, or incarceration; and 44Article 4 Sec. 2. REVISOR AGW/HL 23-0127812/21/22 45.1 (10) any time spent traveling, as described in subdivision 1, paragraph (i), including 45.2start and stop times with a.m. and p.m. designations, the origination site, and the destination 45.3site. 45.4 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 45.5whichever is later. The commissioner of human services shall notify the revisor of statutes 45.6when federal approval is obtained. 45.7 Sec. 3. Minnesota Statutes 2022, section 256B.0659, subdivision 17a, is amended to read: 45.8 Subd. 17a.Enhanced rate.An enhanced rate of 107.5 143 percent of the rate paid for 45.9personal care assistance services shall be paid for services provided to persons who qualify 45.10for ten or more hours of personal care assistance services per day when provided by a 45.11personal care assistant who meets the requirements of subdivision 11, paragraph (d). Any 45.12change in the eligibility criteria for the enhanced rate for personal care assistance services 45.13as described in this subdivision and referenced in subdivision 11, paragraph (d), does not 45.14constitute a change in a term or condition for individual providers as defined in section 45.15256B.0711, and is not subject to the state's obligation to meet and negotiate under chapter 45.16179A. 45.17 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 45.18whichever is later. The commissioner of human services shall notify the revisor of statutes 45.19when federal approval is obtained. 45.20Sec. 4. Minnesota Statutes 2022, section 256B.0659, subdivision 19, is amended to read: 45.21 Subd. 19.Personal care assistance choice option; qualifications; duties.(a) Under 45.22personal care assistance choice, the recipient or responsible party shall: 45.23 (1) recruit, hire, schedule, and terminate personal care assistants according to the terms 45.24of the written agreement required under subdivision 20, paragraph (a); 45.25 (2) develop a personal care assistance care plan based on the assessed needs and 45.26addressing the health and safety of the recipient with the assistance of a qualified professional 45.27as needed; 45.28 (3) orient and train the personal care assistant with assistance as needed from the qualified 45.29professional; 45.30 (4) supervise and evaluate the personal care assistant with the qualified professional, 45.31who is required to visit the recipient at least every 180 days; 45Article 4 Sec. 4. REVISOR AGW/HL 23-0127812/21/22 46.1 (5) monitor and verify in writing and report to the personal care assistance choice agency 46.2the number of hours worked by the personal care assistant and the qualified professional; 46.3 (6) engage in an annual reassessment as required in subdivision 3a to determine 46.4continuing eligibility and service authorization; and 46.5 (7) use the same personal care assistance choice provider agency if shared personal 46.6assistance care is being used; and 46.7 (8) ensure that a personal care assistant driving the recipient under subdivision 1, 46.8paragraph (i), has a valid driver's license and the vehicle used is registered and insured 46.9according to Minnesota law. 46.10 (b) The personal care assistance choice provider agency shall: 46.11 (1) meet all personal care assistance provider agency standards; 46.12 (2) enter into a written agreement with the recipient, responsible party, and personal 46.13care assistants; 46.14 (3) not be related as a parent, child, sibling, or spouse to the recipient or the personal 46.15care assistant; and 46.16 (4) ensure arm's-length transactions without undue influence or coercion with the recipient 46.17and personal care assistant. 46.18 (c) The duties of the personal care assistance choice provider agency are to: 46.19 (1) be the employer of the personal care assistant and the qualified professional for 46.20employment law and related regulations including but not limited to purchasing and 46.21maintaining workers' compensation, unemployment insurance, surety and fidelity bonds, 46.22and liability insurance, and submit any or all necessary documentation including but not 46.23limited to workers' compensation, unemployment insurance, and labor market data required 46.24under section 256B.4912, subdivision 1a; 46.25 (2) bill the medical assistance program for personal care assistance services and qualified 46.26professional services; 46.27 (3) request and complete background studies that comply with the requirements for 46.28personal care assistants and qualified professionals; 46.29 (4) pay the personal care assistant and qualified professional based on actual hours of 46.30services provided; 46.31 (5) withhold and pay all applicable federal and state taxes; 46Article 4 Sec. 4. REVISOR AGW/HL 23-0127812/21/22 47.1 (6) verify and keep records of hours worked by the personal care assistant and qualified 47.2professional; 47.3 (7) make the arrangements and pay taxes and other benefits, if any, and comply with 47.4any legal requirements for a Minnesota employer; 47.5 (8) enroll in the medical assistance program as a personal care assistance choice agency; 47.6and 47.7 (9) enter into a written agreement as specified in subdivision 20 before services are 47.8provided. 47.9 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 47.10whichever is later. The commissioner of human services shall notify the revisor of statutes 47.11when federal approval is obtained. 47.12Sec. 5. Minnesota Statutes 2022, section 256B.0659, subdivision 24, is amended to read: 47.13 Subd. 24.Personal care assistance provider agency; general duties.A personal care 47.14assistance provider agency shall: 47.15 (1) enroll as a Medicaid provider meeting all provider standards, including completion 47.16of the required provider training; 47.17 (2) comply with general medical assistance coverage requirements; 47.18 (3) demonstrate compliance with law and policies of the personal care assistance program 47.19to be determined by the commissioner; 47.20 (4) comply with background study requirements; 47.21 (5) verify and keep records of hours worked by the personal care assistant and qualified 47.22professional; 47.23 (6) not engage in any agency-initiated direct contact or marketing in person, by phone, 47.24or other electronic means to potential recipients, guardians, or family members; 47.25 (7) pay the personal care assistant and qualified professional based on actual hours of 47.26services provided; 47.27 (8) withhold and pay all applicable federal and state taxes; 47.28 (9) document that the agency uses a minimum of 72.5 percent of the revenue generated 47.29by the medical assistance rate for personal care assistance services for employee personal 47.30care assistant wages and benefits. The revenue generated by the qualified professional and 47Article 4 Sec. 5. REVISOR AGW/HL 23-0127812/21/22 48.1the reasonable costs associated with the qualified professional shall not be used in making 48.2this calculation; 48.3 (10) make the arrangements and pay unemployment insurance, taxes, workers' 48.4compensation, liability insurance, and other benefits, if any; 48.5 (11) enter into a written agreement under subdivision 20 before services are provided; 48.6 (12) report suspected neglect and abuse to the common entry point according to section 48.7256B.0651; 48.8 (13) provide the recipient with a copy of the home care bill of rights at start of service; 48.9 (14) request reassessments at least 60 days prior to the end of the current authorization 48.10for personal care assistance services, on forms provided by the commissioner; 48.11 (15) comply with the labor market reporting requirements described in section 256B.4912, 48.12subdivision 1a; and 48.13 (16) document that the agency uses the additional revenue due to the enhanced rate under 48.14subdivision 17a for the wages and benefits of the PCAs whose services meet the requirements 48.15under subdivision 11, paragraph (d); and 48.16 (17) ensure that a personal care assistant driving a recipient under subdivision 1, 48.17paragraph (i), has a valid driver's license and the vehicle used is registered and insured 48.18according to Minnesota law. 48.19 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 48.20whichever is later. The commissioner of human services shall notify the revisor of statutes 48.21when federal approval is obtained. 48.22Sec. 6. Minnesota Statutes 2022, section 256B.4911, is amended by adding a subdivision 48.23to read: 48.24 Subd. 6.Services provided by parents and spouses.(a) This subdivision limits medical 48.25assistance payments under the consumer-directed community supports option for personal 48.26assistance services provided by a parent to the parent's minor child or by a participant's 48.27spouse. This subdivision applies to the consumer-directed community supports option 48.28available under all of the following: 48.29 (1) alternative care program; 48.30 (2) brain injury waiver; 48.31 (3) community alternative care waiver; 48Article 4 Sec. 6. REVISOR AGW/HL 23-0127812/21/22 49.1 (4) community access for disability inclusion waiver; 49.2 (5) developmental disabilities waiver; 49.3 (6) elderly waiver; and 49.4 (7) Minnesota senior health option. 49.5 (b) For the purposes of this subdivision, "parent" means a parent, stepparent, or legal 49.6guardian of a minor. 49.7 (c) If multiple parents are providing personal assistance services to their minor child or 49.8children, each parent may provide up to 40 hours of personal assistance services in any 49.9seven-day period regardless of the number of children served. The total number of hours 49.10of personal assistance services provided by all of the parents must not exceed 80 hours in 49.11a seven-day period regardless of the number of children served. 49.12 (d) If only one parent is providing personal assistance services to a minor child or 49.13children, the parent may provide up to 60 hours of personal assistance services in a seven-day 49.14period regardless of the number of children served. 49.15 (e) If a participant's spouse is providing personal assistance services, the spouse may 49.16provide up to 60 hours of personal assistance services in a seven-day period. 49.17 (f) This subdivision must not be construed to permit an increase in the total authorized 49.18consumer-directed community supports budget for an individual. 49.19 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 49.20whichever is later. The commissioner of human services shall notify the revisor of statutes 49.21when federal approval is obtained. 49.22Sec. 7. Minnesota Statutes 2022, section 256B.85, subdivision 7, is amended to read: 49.23 Subd. 7.Community first services and supports; covered services.Services and 49.24supports covered under CFSS include: 49.25 (1) assistance to accomplish activities of daily living (ADLs), instrumental activities of 49.26daily living (IADLs), and health-related procedures and tasks through hands-on assistance 49.27to accomplish the task or constant supervision and cueing to accomplish the task; 49.28 (2) assistance to acquire, maintain, or enhance the skills necessary for the participant to 49.29accomplish activities of daily living, instrumental activities of daily living, or health-related 49.30tasks; 49Article 4 Sec. 7. REVISOR AGW/HL 23-0127812/21/22 50.1 (3) expenditures for items, services, supports, environmental modifications, or goods, 50.2including assistive technology. These expenditures must: 50.3 (i) relate to a need identified in a participant's CFSS service delivery plan; and 50.4 (ii) increase independence or substitute for human assistance, to the extent that 50.5expenditures would otherwise be made for human assistance for the participant's assessed 50.6needs; 50.7 (4) observation and redirection for behavior or symptoms where there is a need for 50.8assistance; 50.9 (5) back-up systems or mechanisms, such as the use of pagers or other electronic devices, 50.10to ensure continuity of the participant's services and supports; 50.11 (6) services provided by a consultation services provider as defined under subdivision 50.1217, that is under contract with the department and enrolled as a Minnesota health care 50.13program provider; 50.14 (7) services provided by an FMS provider as defined under subdivision 13a, that is an 50.15enrolled provider with the department; 50.16 (8) CFSS services provided by a support worker who is a parent, stepparent, or legal 50.17guardian of a participant under age 18, or who is the participant's spouse. These support 50.18workers shall not: Covered services under this clause are subject to the limitations described 50.19in subdivision 7b; and 50.20 (i) provide any medical assistance home and community-based services in excess of 40 50.21hours per seven-day period regardless of the number of parents providing services, 50.22combination of parents and spouses providing services, or number of children who receive 50.23medical assistance services; and 50.24 (ii) have a wage that exceeds the current rate for a CFSS support worker including the 50.25wage, benefits, and payroll taxes; and 50.26 (9) worker training and development services as described in subdivision 18a. 50.27 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 50.28whichever is later. The commissioner of human services shall notify the revisor of statutes 50.29when federal approval is obtained. 50Article 4 Sec. 7. REVISOR AGW/HL 23-0127812/21/22 51.1 Sec. 8. Minnesota Statutes 2022, section 256B.85, subdivision 7a, is amended to read: 51.2 Subd. 7a.Enhanced rate.An enhanced rate of 107.5 143 percent of the rate paid for 51.3CFSS must be paid for services provided to persons who qualify for ten or more hours of 51.4CFSS per day when provided by a support worker who meets the requirements of subdivision 51.516, paragraph (e). Any change in the eligibility criteria for the enhanced rate for CFSS as 51.6described in this subdivision and referenced in subdivision 16, paragraph (e), does not 51.7constitute a change in a term or condition for individual providers as defined in section 51.8256B.0711, and is not subject to the state's obligation to meet and negotiate under chapter 51.9179A. 51.10 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 51.11whichever is later. The commissioner of human services shall notify the revisor of statutes 51.12when federal approval is obtained. 51.13Sec. 9. Minnesota Statutes 2022, section 256B.85, is amended by adding a subdivision to 51.14read: 51.15 Subd. 7b.Services provided by parents and spouses.(a) This subdivision applies to 51.16services and supports described in subdivision 7, clause (8). 51.17 (b) If multiple parents are support workers providing CFSS services to their minor child 51.18or children, each parent may provide up to 40 hours of medical assistance home and 51.19community-based services in any seven-day period regardless of the number of children 51.20served. The total number of hours of medical assistance home and community-based services 51.21provided by all of the parents must not exceed 80 hours in a seven-day period regardless of 51.22the number of children served. 51.23 (c) If only one parent is a support worker providing CFSS services to the parent's minor 51.24child or children, the parent may provide up to 60 hours of medical assistance home and 51.25community-based services in a seven-day period regardless of the number of children served. 51.26 (d) If a participant's spouse is a support worker providing CFSS services, the spouse 51.27may provide up to 60 hours of medical assistance home and community-based services in 51.28a seven-day period. 51.29 (e) Paragraphs (b) to (d) must not be construed to permit an increase in either the total 51.30authorized service budget for an individual or the total number of authorized service units. 51.31 (f) A parent or participant's spouse must not receive a wage that exceeds the current rate 51.32for a CFSS support worker, including wages, benefits, and payroll taxes. 51Article 4 Sec. 9. REVISOR AGW/HL 23-0127812/21/22 52.1 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 52.2whichever is later. The commissioner of human services shall notify the revisor of statutes 52.3when federal approval is obtained. 52.4 Sec. 10. Minnesota Statutes 2022, section 256B.851, subdivision 5, is amended to read: 52.5 Subd. 5.Payment rates; component values.(a) The commissioner must use the 52.6following component values: 52.7 (1) employee vacation, sick, and training factor, 8.71 percent; 52.8 (2) employer taxes and workers' compensation factor, 11.56 percent; 52.9 (3) employee benefits factor, 12.04 percent; 52.10 (4) client programming and supports factor, 2.30 percent; 52.11 (5) program plan support factor, 7.00 percent; 52.12 (6) general business and administrative expenses factor, 13.25 percent; 52.13 (7) program administration expenses factor, 2.90 percent; and 52.14 (8) absence and utilization factor, 3.90 percent. 52.15 (b) For purposes of implementation, the commissioner shall use the following 52.16implementation components: 52.17 (1) personal care assistance services and CFSS: 75.45 ... percent; 52.18 (2) enhanced rate personal care assistance services and enhanced rate CFSS: 75.45 ... 52.19percent; and 52.20 (3) qualified professional services and CFSS worker training and development: 75.45 52.21... percent. 52.22 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 52.23whichever is later. The commissioner of human services shall notify the revisor of statutes 52.24when federal approval is obtained. 52.25Sec. 11. PERSONAL CARE ASSISTANCE ENHANCED RATE FOR PERSONS 52.26USING CONSUMER-DIRECTED COMMUNITY SUPPORTS. 52.27 The commissioner of human services shall increase the annual budgets for participants 52.28who use consumer-directed community supports under Minnesota Statutes, sections 52.29256B.0913, subdivision 5, clause (17); 256B.092, subdivision 1b, paragraph (a), clause (4); 52Article 4 Sec. 11. REVISOR AGW/HL 23-0127812/21/22 53.1and 256B.49, subdivision 16, paragraph (c); and chapter 256S, by 43 percent for participants 53.2who: (1) are determined by assessment to be eligible for ten or more hours of personal care 53.3assistance services or community first services and supports per day; and (2) use direct 53.4support services provided by a worker employed by the participant who has completed 53.5training identified in Minnesota Statutes, section 256B.0659, subdivision 11, paragraph (d), 53.6or 256B.85, subdivision 16, paragraph (e). 53.7 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval, 53.8whichever is later. The commissioner of human services shall notify the revisor of statutes 53.9when federal approval is obtained. 53.10Sec. 12. RATE INCREASE FOR CERTAIN HOME CARE SERVICES. 53.11 Subdivision 1.Rate increases.(a) Effective January 1, 2024, or upon federal approval, 53.12whichever is later, the commissioner of human services shall increase payment rates for 53.13home health aide visits by 14 percent from the rates in effect on December 31, 2023. The 53.14commissioner must apply the annual rate increases under Minnesota Statutes, section 53.15256B.0653, subdivision 8, to the rates resulting from the application of the rate increases 53.16under this paragraph. 53.17 (b) Effective January 1, 2024, or upon federal approval, whichever is later, the 53.18commissioner shall increase payment rates for respiratory therapy under Minnesota Rules, 53.19part 9505.0295, subpart 2, item E, and for home health services and home care nursing 53.20services, except home health aide visits, under Minnesota Statutes, section 256B.0651, 53.21subdivision 2, clauses (1) to (3), by 38.8 percent from the rates in effect on December 31, 53.222023. The commissioner must apply the annual rate increases under Minnesota Statutes, 53.23sections 256B.0653, subdivision 8, and 256B.0654, subdivision 5, to the rates resulting 53.24from the application of the rate increase under this paragraph. 53.25 Subd. 2.Spending requirements.(a) At least 80 percent of the marginal increase in 53.26revenue for home care services resulting from implementation of the rate increases under 53.27this section for services rendered on or after the day of implementation of the increase must 53.28be used to increase compensation-related costs for employees directly employed by the 53.29provider to provide the services. 53.30 (b) For the purposes of this subdivision, compensation-related costs include: 53.31 (1) wages and salaries; 53.32 (2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment 53.33taxes, workers' compensation, and mileage reimbursement; 53Article 4 Sec. 12. REVISOR AGW/HL 23-0127812/21/22 54.1 (3) the employer's paid share of health and dental insurance, life insurance, disability 54.2insurance, long-term care insurance, uniform allowance, pensions, and contributions to 54.3employee retirement accounts; and 54.4 (4) benefits that address direct support professional workforce needs above and beyond 54.5what employees were offered prior to implementation of the rate increases. 54.6 (c) Compensation-related costs for persons employed in the central office of a corporation 54.7or entity that has an ownership interest in the provider or exercises control over the provider, 54.8or for persons paid by the provider under a management contract, do not count toward the 54.980 percent requirement under this subdivision. 54.10 (d) A provider agency or individual provider that receives additional revenue subject to 54.11the requirements of this subdivision shall prepare, and upon request submit to the 54.12commissioner, a distribution plan that specifies the amount of money the provider expects 54.13to receive that is subject to the requirements of this subdivision, including how that money 54.14was or will be distributed to increase compensation-related costs for employees. Within 60 54.15days of final implementation of the new rate methodology or any rate adjustment subject 54.16to the requirements of this subdivision, the provider must post the distribution plan and 54.17leave it posted for a period of at least six months in an area of the provider's operation to 54.18which all direct support professionals have access. The posted distribution plan must include 54.19instructions regarding how to contact the commissioner, or the commissioner's representative, 54.20if an employee has not received the compensation-related increase described in the plan. 54.21 ARTICLE 5 54.22 NURSING FACILITIES 54.23Section 1. Minnesota Statutes 2022, section 256R.02, subdivision 16, is amended to read: 54.24 Subd. 16.Dietary costs."Dietary costs" means the costs for the salaries and wages of 54.25the dietary supervisor, dietitians, chefs, cooks, dishwashers, and other employees assigned 54.26to the kitchen and dining room, and associated fringe benefits and payroll taxes. Dietary 54.27costs also includes the salaries or fees of dietary consultants, dietary supplies, and food 54.28preparation and serving. 54.29 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 54.302025, or upon federal approval, whichever is later. The commissioner of human services 54.31shall notify the revisor of statutes when federal approval is obtained. 54Article 5 Section 1. REVISOR AGW/HL 23-0127812/21/22 55.1 Sec. 2. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision to 55.2read: 55.3 Subd. 16a.Dietary labor costs."Dietary labor costs" means the costs for the salaries 55.4and wages of the dietary supervisor, dietitians, chefs, cooks, dishwashers, and other 55.5employees assigned to the kitchen and dining room, and associated fringe benefits and 55.6payroll taxes. 55.7 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 55.82025, or upon federal approval, whichever is later. The commissioner of human services 55.9shall notify the revisor of statutes when federal approval is obtained. 55.10Sec. 3. Minnesota Statutes 2022, section 256R.02, subdivision 24, is amended to read: 55.11 Subd. 24.Housekeeping costs."Housekeeping costs" means the costs for the salaries 55.12and wages of the housekeeping supervisor, housekeepers, and other cleaning employees 55.13and associated fringe benefits and payroll taxes. It also includes the cost of housekeeping 55.14supplies, including, but not limited to, cleaning and lavatory supplies and contract services. 55.15 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 55.162025, or upon federal approval, whichever is later. The commissioner of human services 55.17shall notify the revisor of statutes when federal approval is obtained. 55.18Sec. 4. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision to 55.19read: 55.20 Subd. 24a.Housekeeping labor costs."Housekeeping labor costs" means the costs for 55.21the salaries and wages of the housekeeping supervisor, housekeepers, and other cleaning 55.22employees, and associated fringe benefits and payroll taxes. 55.23 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 55.242025, or upon federal approval, whichever is later. The commissioner of human services 55.25shall notify the revisor of statutes when federal approval is obtained. 55.26Sec. 5. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision to 55.27read: 55.28 Subd. 25b.Known cost change factor."Known cost change factor" means 1.00 plus 55.29the forecasted percentage change in the CPI-U index from July 1 of the reporting period to 55.30July 1 of the rate year as determined by the national economic consultant used by the 55.31commissioner of management and budget. 55Article 5 Sec. 5. REVISOR AGW/HL 23-0127812/21/22 56.1 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 56.22025, or upon federal approval, whichever is later. The commissioner of human services 56.3shall notify the revisor of statutes when federal approval is obtained. 56.4 Sec. 6. Minnesota Statutes 2022, section 256R.02, subdivision 26, is amended to read: 56.5 Subd. 26.Laundry costs."Laundry costs" means the costs for the salaries and wages 56.6of the laundry supervisor and other laundry employees, associated fringe benefits, and 56.7payroll taxes. It also includes the costs of linen and bedding, the laundering of resident 56.8clothing, laundry supplies, and contract services. 56.9 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 56.102025, or upon federal approval, whichever is later. The commissioner of human services 56.11shall notify the revisor of statutes when federal approval is obtained. 56.12Sec. 7. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision to 56.13read: 56.14 Subd. 26a.Laundry labor costs."Laundry labor costs" means the costs for the salaries 56.15and wages of the laundry supervisor and other laundry employees, and associated fringe 56.16benefits and payroll taxes. 56.17 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 56.182025, or upon federal approval, whichever is later. The commissioner of human services 56.19shall notify the revisor of statutes when federal approval is obtained. 56.20Sec. 8. Minnesota Statutes 2022, section 256R.02, subdivision 29, is amended to read: 56.21 Subd. 29.Maintenance and plant operations costs."Maintenance and plant operations 56.22costs" means the costs for the salaries and wages of the maintenance supervisor, engineers, 56.23heating-plant employees, and other maintenance employees and associated fringe benefits 56.24and payroll taxes. It also includes identifiable costs for maintenance and operation of the 56.25building and grounds, including, but not limited to, fuel, electricity, plastic waste bags, 56.26medical waste and garbage removal, water, sewer, supplies, tools, repairs, and minor 56.27equipment not requiring capitalization under Medicare guidelines. 56.28 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 56.292025, or upon federal approval, whichever is later. The commissioner of human services 56.30shall notify the revisor of statutes when federal approval is obtained. 56Article 5 Sec. 8. REVISOR AGW/HL 23-0127812/21/22 57.1 Sec. 9. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision to 57.2read: 57.3 Subd. 29a.Maintenance and plant operations labor costs."Maintenance and plant 57.4operations labor costs" means the costs for the salaries and wages of the maintenance 57.5supervisor, engineers, heating-plant employees, and other maintenance employees, and 57.6associated fringe benefits and payroll taxes. 57.7 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 57.82025, or upon federal approval, whichever is later. The commissioner of human services 57.9shall notify the revisor of statutes when federal approval is obtained. 57.10Sec. 10. Minnesota Statutes 2022, section 256R.02, subdivision 34, is amended to read: 57.11 Subd. 34.Other care-related costs."Other care-related costs" means the sum of activities 57.12costs, other direct care costs, raw food costs, dietary labor costs, housekeeping labor costs, 57.13laundry labor costs, maintenance and plant operations labor costs, therapy costs, and social 57.14services costs. 57.15 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 57.162025, or upon federal approval, whichever is later. The commissioner of human services 57.17shall notify the revisor of statutes when federal approval is obtained. 57.18Sec. 11. Minnesota Statutes 2022, section 256R.23, subdivision 2, is amended to read: 57.19 Subd. 2.Calculation of direct care cost per standardized day.Each facility's direct 57.20care cost per standardized day is (1) the product of the facility's direct care costs and the 57.21known cost change factor, (2) divided by the sum of the facility's standardized days. A 57.22facility's direct care cost per standardized day is the facility's cost per day for direct care 57.23services associated with a case mix index of 1.00. 57.24 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 57.252025, or upon federal approval, whichever is later. The commissioner of human services 57.26shall notify the revisor of statutes when federal approval is obtained. 57.27Sec. 12. Minnesota Statutes 2022, section 256R.23, subdivision 3, is amended to read: 57.28 Subd. 3.Calculation of other care-related cost per resident day.Each facility's other 57.29care-related cost per resident day is (1) the product of its other care-related costs and the 57.30known cost change factor, (2) divided by the sum of the facility's resident days. 57Article 5 Sec. 12. REVISOR AGW/HL 23-0127812/21/22 58.1 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 58.22025, or upon federal approval, whichever is later. The commissioner of human services 58.3shall notify the revisor of statutes when federal approval is obtained. 58.4 Sec. 13. Minnesota Statutes 2022, section 256R.24, subdivision 1, is amended to read: 58.5 Subdivision 1.Determination of other operating cost per day.Each facility's other 58.6operating cost per day is (1) the product of its other operating costs and the known cost 58.7change factor, (2) divided by the sum of the facility's resident days. 58.8 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 58.92025, or upon federal approval, whichever is later. The commissioner of human services 58.10shall notify the revisor of statutes when federal approval is obtained. 58.11Sec. 14. Minnesota Statutes 2022, section 256R.25, is amended to read: 58.12 256R.25 EXTERNAL FIXED COSTS PAYMENT RATE. 58.13 (a) The payment rate for external fixed costs is the sum of the amounts in paragraphs 58.14(b) to (o). 58.15 (b) For a facility licensed as a nursing home, the portion related to the provider surcharge 58.16under section 256.9657 is equal to $8.86 per resident day. For a facility licensed as both a 58.17nursing home and a boarding care home, the portion related to the provider surcharge under 58.18section 256.9657 is equal to $8.86 per resident day multiplied by the result of its number 58.19of nursing home beds divided by its total number of licensed beds. 58.20 (c) The portion related to the licensure fee under section 144.122, paragraph (d), is the 58.21amount of the fee divided by the sum of the facility's resident days. 58.22 (d) The portion related to development and education of resident and family advisory 58.23councils under section 144A.33 is $5 per resident day divided by 365. 58.24 (e) The portion related to scholarships is determined under section 256R.37. 58.25 (f) The portion related to planned closure rate adjustments is as determined under section 58.26256R.40, subdivision 5, and Minnesota Statutes 2010, section 256B.436. 58.27 (g) The portion related to consolidation rate adjustments shall be as determined under 58.28section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d. 58.29 (h) The portion related to single-bed room incentives is as determined under section 58.30256R.41. 58Article 5 Sec. 14. REVISOR AGW/HL 23-0127812/21/22 59.1 (i) The portions related to real estate taxes, special assessments, and payments made in 59.2lieu of real estate taxes directly identified or allocated to the nursing facility are the allowable 59.3amounts divided by the sum of the facility's resident days. Allowable costs under this 59.4paragraph for payments made by a nonprofit nursing facility that are in lieu of real estate 59.5taxes shall not exceed the amount which the nursing facility would have paid to a city or 59.6township and county for fire, police, sanitation services, and road maintenance costs had 59.7real estate taxes been levied on that property for those purposes. 59.8 (j) The portion related to employer health insurance costs is (1) the product of the 59.9allowable costs and the known cost change factor, (2) divided by the sum of the facility's 59.10resident days. 59.11 (k) The portion related to the Public Employees Retirement Association is the allowable 59.12costs divided by the sum of the facility's resident days. 59.13 (l) The portion related to quality improvement incentive payment rate adjustments is 59.14the amount determined under section 256R.39. 59.15 (m) The portion related to performance-based incentive payments is the amount 59.16determined under section 256R.38. 59.17 (n) The portion related to special dietary needs is the amount determined under section 59.18256R.51. 59.19 (o) The portion related to the rate adjustments for border city facilities is the amount 59.20determined under section 256R.481. 59.21 EFFECTIVE DATE.This section is effective for the rate year beginning January 1, 59.222025, or upon federal approval, whichever is later. The commissioner of human services 59.23shall notify the revisor of statutes when federal approval is obtained. 59.24Sec. 15. NURSING FACILITY FUNDING. 59.25 (a) Effective July 1, 2023, through December 31, 2025, the total payment rate for all 59.26facilities reimbursed under Minnesota Statutes, chapter 256R, must be increased by $28.65 59.27per resident day. 59.28 (b) To be eligible to receive a payment under this section, a nursing facility must attest 59.29to the commissioner of human services that the additional revenue will be used exclusively 59.30to increase compensation-related costs for employees directly employed by the facility on 59.31or after July 1, 2023, excluding: 59.32 (1) owners of the building and operation; 59Article 5 Sec. 15. REVISOR AGW/HL 23-0127812/21/22 60.1 (2) persons employed in the central office of an entity that has any ownership interest 60.2in the nursing facility or exercises control over the nursing facility; 60.3 (3) persons paid by the nursing facility under a management contract; and 60.4 (4) persons providing separately billable services. 60.5 (c) Contracted housekeeping, dietary, and laundry employees providing services on site 60.6at the nursing facility are eligible for compensation-related cost increases under this section, 60.7provided the agency that employs them submits to the nursing facility proof of the costs of 60.8the increases provided to those employees. 60.9 (d) For purposes of this section, compensation-related costs include: 60.10 (1) permanent new increases to wages and salaries implemented on or after July 1, 2023, 60.11and before September 1, 2023, for nursing facility employees; 60.12 (2) permanent new increases to wages and salaries implemented on or after July 1, 2023, 60.13and before September 1, 2023, for employees in the organization's shared services 60.14departments of hospital-attached nursing facilities for the nursing facility allocated share 60.15of wages; and 60.16 (3) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment 60.17taxes, PERA, workers' compensation, and pension and employee retirement accounts directly 60.18associated with the wage and salary increases in clauses (1) and (2) incurred no later than 60.19December 31, 2025, and paid for no later than June 30, 2026. 60.20 (e) A facility that receives a rate increase under this section must complete a distribution 60.21plan in the form and manner determined by the commissioner. This plan must specify the 60.22total amount of money the facility is estimated to receive from this rate increase and how 60.23that money will be distributed to increase the allowable compensation-related costs described 60.24in paragraph (d) for employees described in paragraphs (b) and (c). This estimate must be 60.25computed by multiplying $28.65 by the sum of the medical assistance and private pay 60.26resident days as defined in Minnesota Statutes, section 256R.02, subdivision 45, for the 60.27period beginning October 1, 2021, through September 30, 2022, dividing this sum by 365 60.28and multiplying the result by 915. A facility must submit its distribution plan to the 60.29commissioner by October 1, 2023. The commissioner may review the distribution plan to 60.30ensure that the payment rate adjustment per resident day is used in accordance with this 60.31section. The commissioner may allow for a distribution plan amendment under exceptional 60.32circumstances to be determined at the sole discretion of the commissioner. 60Article 5 Sec. 15. REVISOR AGW/HL 23-0127812/21/22 61.1 (f) By September 1, 2023, a facility must post the distribution plan summary and leave 61.2it posted for a period of at least six months in an area of the facility to which all employees 61.3have access. The posted distribution plan summary must be in the form and manner 61.4determined by the commissioner. The distribution plan summary must include instructions 61.5regarding how to contact the commissioner, or the commissioner's representative, if an 61.6employee believes the employee is covered by paragraph (b) or (c) and has not received the 61.7compensation-related increases described in paragraph (d). The instruction to such employees 61.8must include the e-mail address and telephone number that may be used by the employee 61.9to contact the commissioner's representative. The posted distribution plan summary must 61.10demonstrate how the increase in paragraph (a) received by the nursing facility from July 1, 61.112023, through December 1, 2025, will be used in full to pay the compensation-related costs 61.12in paragraph (d) for employees described in paragraphs (b) and (c). 61.13 (g) If the nursing facility expends less on new compensation-related costs than the amount 61.14that was made available by the rate increase in this section for that purpose, the amount of 61.15this rate adjustment must be reduced to equal the amount utilized by the facility for purposes 61.16authorized under this section. If the facility fails to post the distribution plan summary in 61.17its facility as required, fails to submit its distribution plan to the commissioner by the due 61.18date, or uses these funds for unauthorized purposes, these rate increases must be treated as 61.19an overpayment and subsequently recovered. 61.20 (h) The commissioner shall not treat payments received under this section as an applicable 61.21credit for purposes of setting total payment rates under Minnesota Statutes, chapter 256R. 61.22 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 61.23whichever is later. The commissioner of human services shall notify the revisor of statutes 61.24when federal approval is obtained. 61.25 ARTICLE 6 61.26 INTERMEDIATE CARE FACILITIES 61.27Section 1. Minnesota Statutes 2022, section 256B.5012, is amended by adding a subdivision 61.28to read: 61.29 Subd. 19.ICF/DD rate increase effective July 1, 2023.(a) Effective July 1, 2023, the 61.30daily operating payment rate for a class A intermediate care facility for persons with 61.31developmental disabilities is increased by $50. 61.32 (b) Effective July 1, 2023, the daily operating payment rate for a class B intermediate 61.33care facility for persons with developmental disabilities is increased by $50. 61Article 6 Section 1. REVISOR AGW/HL 23-0127812/21/22 62.1 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 62.2whichever is later. The commissioner of human services shall notify the revisor of statutes 62.3when federal approval is obtained. 62.4 Sec. 2. Minnesota Statutes 2022, section 256B.5012, is amended by adding a subdivision 62.5to read: 62.6 Subd. 20.ICF/DD minimum daily operating payment rates.(a) The minimum daily 62.7operating payment rate for a class A intermediate care facility for persons with developmental 62.8disabilities is $300. 62.9 (b) The minimum daily operating payment rate for a class B intermediate care facility 62.10for persons with developmental disabilities is $400. 62.11 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 62.12whichever is later. The commissioner of human services shall notify the revisor of statutes 62.13when federal approval is obtained. 62.14Sec. 3. Minnesota Statutes 2022, section 256B.5012, is amended by adding a subdivision 62.15to read: 62.16 Subd. 21.Spending requirements.(a) At least 80 percent of the marginal increase in 62.17revenue resulting from implementation of the rate increases under subdivisions 19 and 20 62.18for services rendered on or after the day of implementation of the increases must be used 62.19to increase compensation-related costs for employees directly employed by the facility. 62.20 (b) For the purposes of this subdivision, compensation-related costs include: 62.21 (1) wages and salaries; 62.22 (2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment 62.23taxes, workers' compensation, and mileage reimbursement; 62.24 (3) the employer's paid share of health and dental insurance, life insurance, disability 62.25insurance, long-term care insurance, uniform allowance, pensions, and contributions to 62.26employee retirement accounts; and 62.27 (4) benefits that address direct support professional workforce needs above and beyond 62.28what employees were offered prior to implementation of the rate increases. 62.29 (c) Compensation-related costs for persons employed in the central office of a corporation 62.30or entity that has an ownership interest in the provider or exercises control over the provider, 62Article 6 Sec. 3. REVISOR AGW/HL 23-0127812/21/22 63.1or for persons paid by the provider under a management contract, do not count toward the 63.280 percent requirement under this subdivision. 63.3 (d) A provider agency or individual provider that receives additional revenue subject to 63.4the requirements of this subdivision shall prepare, and upon request submit to the 63.5commissioner, a distribution plan that specifies the amount of money the provider expects 63.6to receive that is subject to the requirements of this subdivision, including how that money 63.7was or will be distributed to increase compensation-related costs for employees. Within 60 63.8days of final implementation of the new rate methodology or any rate adjustment subject 63.9to the requirements of this subdivision, the provider must post the distribution plan and 63.10leave it posted for a period of at least six months in an area of the provider's operation to 63.11which all direct support professionals have access. The posted distribution plan must include 63.12instructions regarding how to contact the commissioner, or the commissioner's representative, 63.13if an employee has not received the compensation-related increase described in the plan. 63.14Sec. 4. DIRECTION TO COMMISSIONER; APPLICATION OF INTERMEDIATE 63.15CARE FACILITIES FOR PERSONS WITH DEVELOPMENT AL DISABILITIES 63.16RATE INCREASES. 63.17 The commissioner of human services shall apply the rate increases under Minnesota 63.18Statutes, section 256B.5012, subdivisions 19 and 20, as follows: 63.19 (1) apply Minnesota Statutes, section 256B.5012, subdivision 19; and 63.20 (2) apply any required rate increase as required under Minnesota Statutes, section 63.21256B.5012, subdivision 20, to the results of clause (1). 63.22 ARTICLE 7 63.23 EMERGENCY AND NONEMERGENCY MEDICAL TRANSPORTATION 63.24Section 1. Minnesota Statutes 2022, section 256B.0625, subdivision 17, is amended to 63.25read: 63.26 Subd. 17.Transportation costs.(a) "Nonemergency medical transportation service" 63.27means motor vehicle transportation provided by a public or private person that serves 63.28Minnesota health care program beneficiaries who do not require emergency ambulance 63.29service, as defined in section 144E.001, subdivision 3, to obtain covered medical services. 63.30 (b) Medical assistance covers medical transportation costs incurred solely for obtaining 63.31emergency medical care or transportation costs incurred by eligible persons in obtaining 63.32emergency or nonemergency medical care when paid directly to an ambulance company, 63Article 7 Section 1. REVISOR AGW/HL 23-0127812/21/22 64.1nonemergency medical transportation company, or other recognized providers of 64.2transportation services. Medical transportation must be provided by: 64.3 (1) nonemergency medical transportation providers who meet the requirements of this 64.4subdivision; 64.5 (2) ambulances, as defined in section 144E.001, subdivision 2; 64.6 (3) taxicabs that meet the requirements of this subdivision; 64.7 (4) public transit, as defined in section 174.22, subdivision 7; or 64.8 (5) not-for-hire vehicles, including volunteer drivers, as defined in section 65B.472, 64.9subdivision 1, paragraph (h). 64.10 (c) Medical assistance covers nonemergency medical transportation provided by 64.11nonemergency medical transportation providers enrolled in the Minnesota health care 64.12programs. All nonemergency medical transportation providers must comply with the 64.13operating standards for special transportation service as defined in sections 174.29 to 174.30 64.14and Minnesota Rules, chapter 8840, and all drivers must be individually enrolled with the 64.15commissioner and reported on the claim as the individual who provided the service. All 64.16nonemergency medical transportation providers shall bill for nonemergency medical 64.17transportation services in accordance with Minnesota health care programs criteria. Publicly 64.18operated transit systems, volunteers, and not-for-hire vehicles are exempt from the 64.19requirements outlined in this paragraph. 64.20 (d) An organization may be terminated, denied, or suspended from enrollment if: 64.21 (1) the provider has not initiated background studies on the individuals specified in 64.22section 174.30, subdivision 10, paragraph (a), clauses (1) to (3); or 64.23 (2) the provider has initiated background studies on the individuals specified in section 64.24174.30, subdivision 10, paragraph (a), clauses (1) to (3), and: 64.25 (i) the commissioner has sent the provider a notice that the individual has been 64.26disqualified under section 245C.14; and 64.27 (ii) the individual has not received a disqualification set-aside specific to the special 64.28transportation services provider under sections 245C.22 and 245C.23. 64.29 (e) The administrative agency of nonemergency medical transportation must: 64.30 (1) adhere to the policies defined by the commissioner; 64Article 7 Section 1. REVISOR AGW/HL 23-0127812/21/22 65.1 (2) pay nonemergency medical transportation providers for services provided to 65.2Minnesota health care programs beneficiaries to obtain covered medical services; 65.3 (3) provide data monthly to the commissioner on appeals, complaints, no-shows, canceled 65.4trips, and number of trips by mode; and 65.5 (4) by July 1, 2016, in accordance with subdivision 18e, utilize a web-based single 65.6administrative structure assessment tool that meets the technical requirements established 65.7by the commissioner, reconciles trip information with claims being submitted by providers, 65.8and ensures prompt payment for nonemergency medical transportation services. 65.9 (f) Until the commissioner implements the single administrative structure and delivery 65.10system under subdivision 18e, clients shall obtain their level-of-service certificate from the 65.11commissioner or an entity approved by the commissioner that does not dispatch rides for 65.12clients using modes of transportation under paragraph (i), clauses (4), (5), (6), and (7). 65.13 (g) The commissioner may use an order by the recipient's attending physician, advanced 65.14practice registered nurse, physician assistant, or a medical or mental health professional to 65.15certify that the recipient requires nonemergency medical transportation services. 65.16Nonemergency medical transportation providers shall perform driver-assisted services for 65.17eligible individuals, when appropriate. Driver-assisted service includes passenger pickup 65.18at and return to the individual's residence or place of business, assistance with admittance 65.19of the individual to the medical facility, and assistance in passenger securement or in securing 65.20of wheelchairs, child seats, or stretchers in the vehicle. 65.21 Nonemergency medical transportation providers must take clients to the health care 65.22provider using the most direct route, and must not exceed 30 miles for a trip to a primary 65.23care provider or 60 miles for a trip to a specialty care provider, unless the client receives 65.24authorization from the local agency. 65.25 Nonemergency medical transportation providers may not bill for separate base rates for 65.26the continuation of a trip beyond the original destination. Nonemergency medical 65.27transportation providers must maintain trip logs, which include pickup and drop-off times, 65.28signed by the medical provider or client, whichever is deemed most appropriate, attesting 65.29to mileage traveled to obtain covered medical services. Clients requesting client mileage 65.30reimbursement must sign the trip log attesting mileage traveled to obtain covered medical 65.31services. 65.32 (h) The administrative agency shall use the level of service process established by the 65.33commissioner to determine the client's most appropriate mode of transportation. If public 65Article 7 Section 1. REVISOR AGW/HL 23-0127812/21/22 66.1transit or a certified transportation provider is not available to provide the appropriate service 66.2mode for the client, the client may receive a onetime service upgrade. 66.3 (i) The covered modes of transportation are: 66.4 (1) client reimbursement, which includes client mileage reimbursement provided to 66.5clients who have their own transportation, or to family or an acquaintance who provides 66.6transportation to the client; 66.7 (2) volunteer transport, which includes transportation by volunteers using their own 66.8vehicle; 66.9 (3) unassisted transport, which includes transportation provided to a client by a taxicab 66.10or public transit. If a taxicab or public transit is not available, the client can receive 66.11transportation from another nonemergency medical transportation provider; 66.12 (4) assisted transport, which includes transport provided to clients who require assistance 66.13by a nonemergency medical transportation provider; 66.14 (5) lift-equipped/ramp transport, which includes transport provided to a client who is 66.15dependent on a device and requires a nonemergency medical transportation provider with 66.16a vehicle containing a lift or ramp; 66.17 (6) protected transport, which includes transport provided to a client who has received 66.18a prescreening that has deemed other forms of transportation inappropriate and who requires 66.19a provider: (i) with a protected vehicle that is not an ambulance or police car and has safety 66.20locks, a video recorder, and a transparent thermoplastic partition between the passenger and 66.21the vehicle driver; and (ii) who is certified as a protected transport provider; and 66.22 (7) stretcher transport, which includes transport for a client in a prone or supine position 66.23and requires a nonemergency medical transportation provider with a vehicle that can transport 66.24a client in a prone or supine position. 66.25 (j) The local agency shall be the single administrative agency and shall administer and 66.26reimburse for modes defined in paragraph (i) according to paragraphs (m) and (n) when the 66.27commissioner has developed, made available, and funded the web-based single administrative 66.28structure, assessment tool, and level of need assessment under subdivision 18e. The local 66.29agency's financial obligation is limited to funds provided by the state or federal government. 66.30 (k) The commissioner shall: 66.31 (1) verify that the mode and use of nonemergency medical transportation is appropriate; 66.32 (2) verify that the client is going to an approved medical appointment; and 66Article 7 Section 1. REVISOR AGW/HL 23-0127812/21/22 67.1 (3) investigate all complaints and appeals. 67.2 (l) The administrative agency shall pay for the services provided in this subdivision and 67.3seek reimbursement from the commissioner, if appropriate. As vendors of medical care, 67.4local agencies are subject to the provisions in section 256B.041, the sanctions and monetary 67.5recovery actions in section 256B.064, and Minnesota Rules, parts 9505.2160 to 9505.2245. 67.6 (m) Payments for nonemergency medical transportation must be paid based on the client's 67.7assessed mode under paragraph (h), not the type of vehicle used to provide the service. The 67.8medical assistance reimbursement rates for nonemergency medical transportation services 67.9that are payable by or on behalf of the commissioner for nonemergency medical 67.10transportation services are: 67.11 (1) $0.22 per mile for client reimbursement; 67.12 (2) up to 100 percent of the Internal Revenue Service business deduction rate for volunteer 67.13transport; 67.14 (3) equivalent to the standard fare for unassisted transport when provided by public 67.15transit, and $11 $12.93 for the base rate and $1.30 $1.53 per mile when provided by a 67.16nonemergency medical transportation provider; 67.17 (4) $13 $15.28 for the base rate and $1.30 $1.53 per mile for assisted transport; 67.18 (5) $18 $21.15 for the base rate and $1.55 $1.82 per mile for lift-equipped/ramp transport; 67.19 (6) $75 for the base rate and $2.40 per mile for protected transport; and 67.20 (7) $60 for the base rate and $2.40 per mile for stretcher transport, and $9 per trip for 67.21an additional attendant if deemed medically necessary. 67.22 (n) The base rate for nonemergency medical transportation services in areas defined 67.23under RUCA to be super rural is equal to 111.3 percent of the respective base rate in 67.24paragraph (m), clauses (1) to (7). The mileage rate for nonemergency medical transportation 67.25services in areas defined under RUCA to be rural or super rural areas is: 67.26 (1) for a trip equal to 17 miles or less, equal to 125 percent of the respective mileage 67.27rate in paragraph (m), clauses (1) to (7); and 67.28 (2) for a trip between 18 and 50 miles, equal to 112.5 percent of the respective mileage 67.29rate in paragraph (m), clauses (1) to (7). 67.30 (o) For purposes of reimbursement rates for nonemergency medical transportation 67.31services under paragraphs (m) and (n), the zip code of the recipient's place of residence 67.32shall determine whether the urban, rural, or super rural reimbursement rate applies. 67Article 7 Section 1. REVISOR AGW/HL 23-0127812/21/22 68.1 (p) For purposes of this subdivision, "rural urban commuting area" or "RUCA" means 68.2a census-tract based classification system under which a geographical area is determined 68.3to be urban, rural, or super rural. 68.4 (q) The commissioner, when determining reimbursement rates for nonemergency medical 68.5transportation under paragraphs (m) and (n), shall exempt all modes of transportation listed 68.6under paragraph (i) from Minnesota Rules, part 9505.0445, item R, subitem (2). 68.7 (r) Effective for the first day of each calendar quarter in which the price of gasoline as 68.8posted publicly by the United States Energy Information Administration exceeds $3.00 per 68.9gallon, the commissioner shall adjust the rate paid per mile in paragraph (m) by one percent 68.10up or down for every increase or decrease of ten cents for the price of gasoline. The increase 68.11or decrease must be calculated using a base gasoline price of $3.00. The percentage increase 68.12or decrease must be calculated using the average of the most recently available price of all 68.13grades of gasoline for Minnesota as posted publicly by the United States Energy Information 68.14Administration. 68.15 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 68.16whichever is later. The commissioner of human services shall notify the revisor of statutes 68.17when federal approval is obtained. 68.18Sec. 2. Minnesota Statutes 2022, section 256B.0625, subdivision 17a, is amended to read: 68.19 Subd. 17a.Payment for ambulance services.(a) Medical assistance covers ambulance 68.20services. Providers shall bill ambulance services according to Medicare criteria. 68.21Nonemergency ambulance services shall not be paid as emergencies. Effective for services 68.22rendered on or after July 1, 2001, medical assistance payments for ambulance services shall 68.23be paid at the Medicare reimbursement rate or at the medical assistance payment rate in 68.24effect on July 1, 2000, whichever is greater. 68.25 (b) Effective for services provided on or after July 1, 2016, medical assistance payment 68.26rates for ambulance services identified in this paragraph are increased by five percent. 68.27Capitation payments made to managed care plans and county-based purchasing plans for 68.28ambulance services provided on or after January 1, 2017, shall be increased to reflect this 68.29rate increase. The increased rate described in this paragraph applies to ambulance service 68.30providers whose base of operations as defined in section 144E.10 is located: 68.31 (1) outside the metropolitan counties listed in section 473.121, subdivision 4, and outside 68.32the cities of Duluth, Mankato, Moorhead, St. Cloud, and Rochester; or 68.33 (2) within a municipality with a population of less than 1,000. 68Article 7 Sec. 2. REVISOR AGW/HL 23-0127812/21/22 69.1 (c) Effective for the first day of each calendar quarter in which the price of gasoline as 69.2posted publicly by the United States Energy Information Administration exceeds $3.00 per 69.3gallon, the commissioner shall adjust the rate paid per mile in paragraphs (a) and (b) by one 69.4percent up or down for every increase or decrease of ten cents for the price of gasoline. The 69.5increase or decrease must be calculated using a base gasoline price of $3.00. The percentage 69.6increase or decrease must be calculated using the average of the most recently available 69.7price of all grades of gasoline for Minnesota as posted publicly by the United States Energy 69.8Information Administration. 69.9 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval, 69.10whichever is later. The commissioner of human services shall notify the revisor of statutes 69.11when federal approval is obtained. 69.12Sec. 3. NONEMERGENCY MEDICAL TRANSPORTATION SPENDING 69.13REQUIREMENTS. 69.14 (a) At least 80 percent of the marginal increase in revenue from the implementation of 69.15rate increases in this act under Minnesota Statutes, section 256B.0625, subdivision 17, 69.16paragraph (m), clauses (3) to (5), for services rendered on or after the day of implementation 69.17of the rate increases must be used to increase compensation-related costs for drivers. 69.18 (b) For the purposes of this subdivision, compensation-related costs include: 69.19 (1) wages and salaries; 69.20 (2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment 69.21taxes, workers' compensation, and mileage reimbursement; 69.22 (3) the employer's paid share of health and dental insurance, life insurance, disability 69.23insurance, long-term care insurance, uniform allowance, pensions, and contributions to 69.24employee retirement accounts; and 69.25 (4) benefits that address direct support professional workforce needs above and beyond 69.26what employees were offered prior to the implementation of the rate increases. 69.27 (c) Compensation-related costs for persons employed in the central office of a corporation 69.28or entity that has an ownership interest in the provider or exercises control over the provider, 69.29or for persons paid by the provider under a management contract, do not count toward the 69.3080 percent requirement under this subdivision. 69.31 (d) A provider agency or individual provider that receives additional revenue subject to 69.32the requirements of this subdivision shall prepare, and upon request submit to the 69Article 7 Sec. 3. REVISOR AGW/HL 23-0127812/21/22 70.1commissioner, a distribution plan that specifies the amount of money the provider expects 70.2to receive that is subject to the requirements of this section, including how that money was 70.3or will be distributed to increase compensation-related costs for drivers. Within 60 days of 70.4final implementation of the new phase-in proportion or adjustment to the base wage indices 70.5subject to the requirements of this subdivision, the provider must post the distribution plan 70.6and leave it posted for a period of at least six months in an area of the provider's operation 70.7to which all drivers have access. The posted distribution plan must include instructions 70.8regarding how to contact the commissioner, or the commissioner's representative, if a driver 70.9has not received the compensation-related increase described in the plan. 70.10 ARTICLE 8 70.11 RESIDENTIAL SETTING CLOSURE PREVENTION GRANTS 70.12Section 1. [256.4795] RESIDENTIAL SETTING CLOSURE PREVENTION 70.13GRANTS. 70.14 Subdivision 1.Residential setting closure prevention grants established.The 70.15commissioner of human services shall establish a grant program to reduce the risk of 70.16residential settings in financial distress from closing. The commissioner shall limit 70.17expenditures under this subdivision to the amount appropriated for this purpose. 70.18 Subd. 2.Definitions.(a) For the purposes of this section, the terms in this subdivision 70.19have the meanings given them. 70.20 (b) "At risk of closure" or "at risk of closing" means a residential setting is in significant 70.21financial distress, and, in the judgment of the commissioner, the setting will close without 70.22additional funding from the commissioner. 70.23 (c) "Residential setting" means any of the following: (1) a nursing facility; (2) an assisted 70.24living facility with a majority of residents receiving services funded by medical assistance; 70.25(3) a setting exempt from assisted living facility licensure under section 144G.08, subdivision 70.267, clauses (10) to (13), with a majority of residents receiving services funded by medical 70.27assistance; (4) an intermediate care facility for persons with developmental disabilities; or 70.28(5) an adult foster care setting, a community residential setting, or an integrated community 70.29supports setting. 70.30 Subd. 3.Eligibility.(a) A license holder operating a residential setting in significant 70.31financial distress may apply to the commissioner for a grant under this section to relieve its 70.32immediate financial distress. 70Article 8 Section 1. REVISOR AGW/HL 23-0127812/21/22 71.1 (b) Lead agencies that suspect a residential setting is in significant financial distress may 71.2refer the license holder to the commissioner for consideration by the commissioner for grant 71.3funding under this section. Upon a referral from a lead agency under this section, the 71.4commissioner shall immediately solicit an application from the license holder, providing 71.5individualized technical assistance to the license holder regarding the application process. 71.6 (c) The commissioner must give priority for closure prevention grants to residential 71.7settings that are the most significantly at risk of closing in violation of the applicable notice 71.8requirements prior to the termination of services. 71.9 Subd. 4.Criteria and limitations.(a) Within available appropriations for this purpose, 71.10the commissioner must award sufficient funding to a residential setting at risk of closure to 71.11ensure that the residential setting remains open long enough to comply with the applicable 71.12termination of services notification requirements. 71.13 (b) The commissioner may award additional funding to a residential setting at risk of 71.14closure if, in the judgment of the commissioner, the residential setting is likely to remain 71.15open and financially viable after receiving time-limited additional funding from the 71.16commissioner. 71.17 (c) Before receiving any additional funding under paragraph (b), grantees must work 71.18with the commissioner to develop a business plan and corrective action plan to reduce the 71.19risk of future financial distress. No residential setting may receive additional funding under 71.20paragraph (b) more than once. 71.21 Subd. 5.Interagency coordination.The commissioner must coordinate the grant 71.22activities under this section with any other impacted state agencies and lead agencies. 71.23 Subd. 6.Administrative funding.The commissioner may use up to 6.5 percent of the 71.24grant money appropriated for the commissioner's costs related to administration of this 71.25program. 71.26 EFFECTIVE DATE.This section is effective July 1, 2023. 71Article 8 Section 1. REVISOR AGW/HL 23-0127812/21/22 72.1 ARTICLE 9 72.2 EXPANSION OF EMERGENCY STAFFING POOL 72.3 Section 1. Laws 2022, chapter 40, section 6, is amended to read: 72.4 Sec. 6. COMMISSIONER OF HUMAN SERVICES; TEMPORARY STAFFING 72.5POOL; APPROPRIATION. 72.6 (a) The commissioner of human services shall establish a temporary emergency staffing 72.7pool for congregate settings and for providers or recipients of home- and community-based 72.8services experiencing staffing crises. Vendor contracts may include retention bonuses, 72.9sign-on bonuses, and payment for hours on call. The commissioner may pay for necessary 72.10training, travel, and lodging expenses of the temporary staff. Contracts for temporary staffing 72.11executed under this section: (1) should minimize the recruitment away from providers' 72.12current workforces; and (2) may not be executed with an individual until at least 30 days 72.13since the individual was last employed in Minnesota by one of the types of facilities, 72.14providers, or individuals listed in paragraph (g). 72.15 (b) Temporary staff, at the request of the commissioner, may be deployed to providers 72.16of home- and community-based services, individual recipients of home- and 72.17community-based services, and long-term care facilities and other congregate care residential 72.18facilities and programs experiencing an emergency staffing crisis on or after the effective 72.19date of this section. Temporary staff must be provided at no cost to the provider, individual 72.20recipient, facility, or program receiving the temporary staff. 72.21 (c) Members of the temporary staffing pool under this section are not state employees. 72.22 (d) The commissioner must coordinate the activities under this section with any other 72.23impacted state agencies, to appropriately prioritize locations to deploy contracted temporary 72.24staff. 72.25 (e) The commissioner must give priority for deploying staff to providers, individual 72.26recipients, facilities, and programs with the most significant staffing crises and where, but 72.27for this assistance, residents or service recipients would be at significant risk of injury due 72.28to the need to transfer to another a facility or a hospital for adequately staffed care. 72.29 (f) A provider, individual recipient, facility, or program may seek onetime assistance 72.30per setting or individual service recipient from the temporary staffing pool only after the 72.31provider, individual recipient, facility, or program has used all resources available to obtain 72.32temporary staff but is unable to meet the provider's, individual's, facility's, or program's 72.33temporary staffing needs. A provider, individual, facility, or program may apply for 72Article 9 Section 1. REVISOR AGW/HL 23-0127812/21/22 73.1temporary staff for up to 21 days. Applicants must submit a proposed plan for ensuring 73.2resident safety at the end of that time period. 73.3 (g) Providers, individuals, facilities, and programs eligible to obtain temporary staff 73.4from the temporary staffing pool include: 73.5 (1) nursing facilities; 73.6 (2) assisted living facilities; 73.7 (3) intermediate care facilities for persons with developmental disabilities; 73.8 (4) adult foster care or , community residential settings, or integrated community supports 73.9settings; 73.10 (5) licensed substance use disorder treatment facilities; 73.11 (6) unlicensed county-based substance use disorder treatment facilities; 73.12 (7) licensed facilities for adults with mental illness; 73.13 (8) licensed detoxification programs; 73.14 (9) licensed withdrawal management programs; 73.15 (10) licensed children's residential facilities; 73.16 (11) licensed child foster residence settings; 73.17 (12) unlicensed, Tribal-certified facilities that perform functions similar to the licensed 73.18facilities listed in this paragraph; 73.19 (13) boarding care homes; 73.20 (14) board and lodging establishments serving people with disabilities or disabling 73.21conditions; 73.22 (15) board and lodging establishments with special services; 73.23 (16) supervised living facilities; 73.24 (17) supportive housing; 73.25 (18) sober homes; 73.26 (19) community-based halfway houses for people exiting the correctional system; 73.27 (20) shelters serving people experiencing homelessness; 73.28 (21) drop-in centers for people experiencing homelessness; 73Article 9 Section 1. REVISOR AGW/HL 23-0127812/21/22 74.1 (22) homeless outreach services for unsheltered individuals; 74.2 (23) shelters for people experiencing domestic violence; and 74.3 (24) temporary isolation spaces for people who test positive for COVID-19; 74.4 (25) individuals who use consumer-directed community supports; 74.5 (26) individuals who use the personal care assistance choice program; 74.6 (27) personal care assistance provider agencies; 74.7 (28) individuals who use the community first services and supports budget model; 74.8 (29) agency-providers of community first services and supports; and 74.9 (30) providers of individualized home supports. 74.10 (h) Notwithstanding Minnesota Statutes, chapter 16C, the commissioner may maintain, 74.11extend, or renew contracts for temporary staffing entered into on or after September 1, 2020. 74.12The commissioner may also enter into new contracts with eligible entities for temporary 74.13staff deployed in the temporary staffing pool. The commissioner may use up to 6.5 percent 74.14of this funding for the commissioner's costs related to administration of this program. 74.15 (i) The commissioner shall seek all allowable FEMA reimbursement for the costs of this 74.16activity. 74.17 ARTICLE 10 74.18 FAMILY ASSETS FOR INDEPENDENCE 74.19Section 1. Minnesota Statutes 2022, section 256E.35, subdivision 1, is amended to read: 74.20 Subdivision 1.Establishment.The Minnesota family assets for independence initiative 74.21is established to provide incentives for low-income families to accrue assets for education, 74.22housing, vehicles, emergencies, and economic development purposes. 74.23Sec. 2. Minnesota Statutes 2022, section 256E.35, subdivision 2, is amended to read: 74.24 Subd. 2.Definitions.(a) The definitions in this subdivision apply to this section. 74.25 (b) "Eligible educational institution" means the following: 74.26 (1) an institution of higher education described in section 101 or 102 of the Higher 74.27Education Act of 1965; or 74.28 (2) an area vocational education school, as defined in subparagraph (C) or (D) of United 74.29States Code, title 20, chapter 44, section 2302 (3) (the Carl D. Perkins Vocational and 74Article 10 Sec. 2. REVISOR AGW/HL 23-0127812/21/22 75.1Applied Technology Education Act), which is located within any state, as defined in United 75.2States Code, title 20, chapter 44, section 2302 (30). This clause is applicable only to the 75.3extent section 2302 is in effect on August 1, 2008. 75.4 (c) "Family asset account" means a savings account opened by a household participating 75.5in the Minnesota family assets for independence initiative. 75.6 (d) "Fiduciary organization" means: 75.7 (1) a community action agency that has obtained recognition under section 256E.31; 75.8 (2) a federal community development credit union serving the seven-county metropolitan 75.9area; or 75.10 (3) a women-oriented economic development agency serving the seven-county 75.11metropolitan area.; 75.12 (4) a federally recognized Tribal nation; or 75.13 (5) a nonprofit organization, as defined under section 501(c)(3) of the Internal Revenue 75.14Code. 75.15 (e) "Financial coach" means a person who: 75.16 (1) has completed an intensive financial literacy training workshop that includes 75.17curriculum on budgeting to increase savings, debt reduction and asset building, building a 75.18good credit rating, and consumer protection; 75.19 (2) participates in ongoing statewide family assets for independence in Minnesota (FAIM) 75.20network training meetings under FAIM program supervision; and 75.21 (3) provides financial coaching to program participants under subdivision 4a. 75.22 (f) "Financial institution" means a bank, bank and trust, savings bank, savings association, 75.23or credit union, the deposits of which are insured by the Federal Deposit Insurance 75.24Corporation or the National Credit Union Administration. 75.25 (g) "Household" means all individuals who share use of a dwelling unit as primary 75.26quarters for living and eating separate from other individuals. 75.27 (h) "Permissible use" means: 75.28 (1) postsecondary educational expenses at an eligible educational institution as defined 75.29in paragraph (b), including books, supplies, and equipment required for courses of instruction; 75.30 (2) acquisition costs of acquiring, constructing, or reconstructing a residence, including 75.31any usual or reasonable settlement, financing, or other closing costs; 75Article 10 Sec. 2. REVISOR AGW/HL 23-0127812/21/22 76.1 (3) business capitalization expenses for expenditures on capital, plant, equipment, working 76.2capital, and inventory expenses of a legitimate business pursuant to a business plan approved 76.3by the fiduciary organization; 76.4 (4) acquisition costs of a principal residence within the meaning of section 1034 of the 76.5Internal Revenue Code of 1986 which do not exceed 100 percent of the average area purchase 76.6price applicable to the residence determined according to section 143(e)(2) and (3) of the 76.7Internal Revenue Code of 1986; and 76.8 (5) acquisition costs of a personal vehicle only if approved by the fiduciary organization.; 76.9 (6) contribution to an emergency savings account; and 76.10 (7) contribution to a Minnesota 529 savings plan. 76.11Sec. 3. Minnesota Statutes 2022, section 256E.35, subdivision 4a, is amended to read: 76.12 Subd. 4a.Financial coaching.A financial coach shall provide the following to program 76.13participants: 76.14 (1) financial education relating to budgeting, debt reduction, asset-specific training, 76.15credit building, and financial stability activities; 76.16 (2) asset-specific training related to buying a home or vehicle, acquiring postsecondary 76.17education, or starting or expanding a small business, saving for emergencies, or saving for 76.18a child's education; and 76.19 (3) financial stability education and training to improve and sustain financial security. 76.20Sec. 4. Minnesota Statutes 2022, section 256E.35, subdivision 6, is amended to read: 76.21 Subd. 6.Withdrawal; matching; permissible uses.(a) To receive a match, a 76.22participating household must transfer funds withdrawn from a family asset account to its 76.23matching fund custodial account held by the fiscal agent, according to the family asset 76.24agreement. The fiscal agent must determine if the match request is for a permissible use 76.25consistent with the household's family asset agreement. 76.26 (b) The fiscal agent must ensure the household's custodial account contains the applicable 76.27matching funds to match the balance in the household's account, including interest, on at 76.28least a quarterly basis and at the time of an approved withdrawal. Matches must be a 76.29contribution of $3 from state grant or TANF funds for every $1 of funds withdrawn from 76.30the family asset account not to exceed a $6,000 $9,000 lifetime limit. 76Article 10 Sec. 4. REVISOR AGW/HL 23-0127812/21/22 77.1 (c) Notwithstanding paragraph (b), if funds are appropriated for the Federal Assets for 77.2Independence Act of 1998, and a participating fiduciary organization is awarded a grant 77.3under that act, participating households with that fiduciary organization must be provided 77.4matches as follows: 77.5 (1) from state grant and TANF funds, a matching contribution of $1.50 for every $1 of 77.6funds withdrawn from the family asset account not to exceed a $3,000 $4,500 lifetime limit; 77.7and 77.8 (2) from nonstate funds, a matching contribution of not less than $1.50 for every $1 of 77.9funds withdrawn from the family asset account not to exceed a $3,000 $4,500 lifetime limit. 77.10 (d) Upon receipt of transferred custodial account funds, the fiscal agent must make a 77.11direct payment to the vendor of the goods or services for the permissible use. 77.12Sec. 5. Minnesota Statutes 2022, section 256E.35, subdivision 7, is amended to read: 77.13 Subd. 7.Program reporting.The fiscal agent on behalf of each fiduciary organization 77.14participating in a family assets for independence initiative must report quarterly to the 77.15commissioner of human services identifying the participants with accounts, the number of 77.16accounts, the amount of savings and matches for each participant's account, the uses of the 77.17account, and the number of businesses, homes, vehicles, and educational services paid for 77.18with money from the account, and the amount of contributions to Minnesota 529 savings 77.19plans and emergency savings accounts, as well as other information that may be required 77.20for the commissioner to administer the program and meet federal TANF reporting 77.21requirements. 77.22Sec. 6. Minnesota Statutes 2022, section 256P.02, is amended by adding a subdivision to 77.23read: 77.24 Subd. 4.Account exception.Family asset accounts under section 256E.35 and individual 77.25development accounts authorized under the Assets for Independence Act, Title IV of the 77.26Community Opportunities, Accountability, and Training and Educational Services Human 77.27Services Reauthorization Act of 1998, Public Law 105-285, must be excluded when 77.28determining the equity value of personal property. 77Article 10 Sec. 6. REVISOR AGW/HL 23-0127812/21/22 78.1 ARTICLE 11 78.2 APPROPRIATIONS 78.3 Section 1. APPROPRIATION; FAMILY ASSETS FOR INDEPENDENCE. 78.4 $100,000 in fiscal year 2024 and $100,000 in fiscal year 2025 are appropriated from the 78.5general fund to the commissioner of human services for the purposes of the family assets 78.6for independence program in Minnesota Statutes, section 256E.35. 78.7 Sec. 2. APPROPRIATION; LIFESHARING SERVICE DEVELOPMENT . 78.8 $184,000 in fiscal year 2024 is appropriated from the general fund to the commissioner 78.9of human services for engaging stakeholders and developing a lifesharing service under the 78.10state's medical assistance disability waivers and elderly waiver. This is a onetime 78.11appropriation and is available until June 30, 2025. 78.12Sec. 3. APPROPRIATION; RESIDENTIAL SETTING CLOSURE PREVENTION 78.13GRANTS. 78.14 $6,671,000 in fiscal year 2024 and $6,671,000 in fiscal year 2025 are appropriated from 78.15the general fund to the commissioner of human services for residential setting closure 78.16prevention grants under Minnesota Statutes, section 256.4795. 78.17Sec. 4. APPROPRIATION; WELLNESS IN THE WOODS. 78.18 $100,000 in fiscal year 2024 and $100,000 in fiscal year 2025 are appropriated from the 78.19general fund to the commissioner of human services for a grant to Wellness in the Woods 78.20for daily peer support and special sessions for individuals who are in substance use disorder 78.21recovery, are transitioning out of incarceration, or have experienced trauma. 78Article 11 Sec. 4. REVISOR AGW/HL 23-0127812/21/22 256B.4914 HOME AND COMMUNITY-BASED SERVICES WAIVERS; RATE SETTING. Subd. 9a.Respite services; component values and calculation of payment rates.(a) For the purposes of this section, respite services include respite services provided to an individual outside of any service plan for a day program or residential support service. (b) Component values for respite services are: (1) competitive workforce factor: 4.7 percent; (2) supervisory span of control ratio: 11 percent; (3) employee vacation, sick, and training allowance ratio: 8.71 percent; (4) employee-related cost ratio: 23.6 percent; (5) general administrative support ratio: 13.25 percent; (6) program-related expense ratio: 2.9 percent; and (7) absence and utilization factor ratio: 3.9 percent. (c) A unit of service for respite services is 15 minutes. (d) Payments for respite services must be calculated as follows unless the service is reimbursed separately as part of a residential support services or day program payment rate: (1) determine the number of units of service to meet an individual's needs; (2) determine the appropriate hourly staff wage rates derived by the commissioner as provided in subdivisions 5 and 5a; (3) except for subdivision 5a, clauses (1) to (4), multiply the result of clause (2) by the product of one plus the competitive workforce factor; (4) for a recipient requiring deaf and hard-of-hearing customization under subdivision 12, add the customization rate provided in subdivision 12 to the result of clause (3); (5) multiply the number of direct staffing hours by the appropriate staff wage; (6) multiply the number of direct staffing hours by the product of the supervisory span of control ratio and the appropriate supervisory staff wage in subdivision 5a, clause (1); (7) combine the results of clauses (5) and (6), and multiply the result by one plus the employee vacation, sick, and training allowance ratio. This is defined as the direct staffing rate; (8) for employee-related expenses, multiply the result of clause (7) by one plus the employee-related cost ratio; (9) this is the subtotal rate; (10) sum the standard general administrative support ratio, the program-related expense ratio, and the absence and utilization factor ratio; (11) divide the result of clause (9) by one minus the result of clause (10). This is the total payment amount; (12) for respite services provided in a shared manner, divide the total payment amount in clause (11) by the number of service recipients, not to exceed three; and (13) adjust the result of clause (12) by a factor to be determined by the commissioner to adjust for regional differences in the cost of providing services. 256S.19 MONTHLY CASE MIX BUDGET CAPS; NURSING FACILITY RESIDENTS. Subd. 4.Calculation of monthly conversion budget cap with consumer-directed community supports.For the elderly waiver monthly conversion budget cap for the cost of elderly waiver services with consumer-directed community supports, the nursing facility case mix adjusted total payment rate used under subdivision 3 to calculate the monthly conversion budget cap for elderly waiver services without consumer-directed community supports must be reduced by a percentage equal to the percentage difference between the consumer-directed community supports budget limit that would be assigned according to the elderly waiver plan and the corresponding monthly case mix budget cap under this chapter, but not to exceed 50 percent. 1R APPENDIX Repealed Minnesota Statutes: 23-01278