Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF780 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to human services; modifying nursing facility payment rates; modifying
3	3	1.3 elderly waiver rates; modifying payment rates for customized living services
4	4	1.4 provided under certain disability waivers; modifying payment rates for
5	5	1.5 home-delivered meals under the disability waivers; appropriating money; amending
6	6	1.6 Minnesota Statutes 2022, sections 256B.4912, by adding a subdivision; 256R.02,
7	7	1.7 subdivisions 16, 24, 26, 29, 34, by adding subdivisions; 256R.23, subdivisions 2,
8	8	1.8 3; 256R.24, subdivision 1; 256R.25; 256S.201, subdivision 3; 256S.21; 256S.211,
9	9	1.9 by adding a subdivision; 256S.213, subdivision 1; repealing Minnesota Statutes
10	10	1.10 2022, section 256S.2101.
11	11	1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
12	12	1.12 Section 1. Minnesota Statutes 2022, section 256B.4912, is amended by adding a subdivision
13	13	1.13to read:
14	14	1.14 Subd. 16.Rates established by the commissioner.For home-delivered meals eligible
15	15	1.15for reimbursement under the developmental disabilities waiver, the brain injury waiver, the
16	16	1.16community alternative care waiver, and the community access for disability inclusion waiver,
17	17	1.17the commissioner must establish rates equal to the rates for home-delivered meals established
18	18	1.18under section 256S.215, subdivision 15.
19	19	1.19 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval,
20	20	1.20whichever occurs later. The commissioner of human services shall notify the revisor of
21	21	1.21statutes when federal approval is obtained.
22	22	1.22 Sec. 2. Minnesota Statutes 2022, section 256R.02, subdivision 16, is amended to read:
23	23	1.23 Subd. 16.Dietary costs."Dietary costs" means the costs for the salaries and wages of
24	24	1.24the dietary supervisor, dietitians, chefs, cooks, dishwashers, and other employees assigned
25	25	1Sec. 2.
26	26	23-01171 as introduced01/17/23 REVISOR AGW/JW
27	27	SENATE
28	28	STATE OF MINNESOTA
29	29	S.F. No. 780NINETY-THIRD SESSION
30	30	(SENATE AUTHORS: HOFFMAN, Abeler and Kupec)
31	31	OFFICIAL STATUSD-PGDATE
32	32	Introduction and first reading01/26/2023
33	33	Referred to Health and Human Services 2.1to the kitchen and dining room, and associated fringe benefits and payroll taxes. Dietary
34	34	2.2costs also includes the salaries or fees of dietary consultants, dietary supplies, and food
35	35	2.3preparation and serving.
36	36	2.4 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
37	37	2.52025, or upon federal approval, whichever occurs later. The commissioner of human services
38	38	2.6shall notify the revisor of statutes when federal approval is obtained.
39	39	2.7 Sec. 3. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision to
40	40	2.8read:
41	41	2.9 Subd. 16a.Dietary labor costs."Dietary labor costs" means the costs for the salaries
42	42	2.10and wages of the dietary supervisor, dietitians, chefs, cooks, dishwashers, contracted dietary
43	43	2.11employees, and other employees assigned to the kitchen and dining room and associated
44	44	2.12fringe benefits and payroll taxes.
45	45	2.13 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
46	46	2.142025, or upon federal approval, whichever occurs later. The commissioner of human services
47	47	2.15shall notify the revisor of statutes when federal approval is obtained.
48	48	2.16 Sec. 4. Minnesota Statutes 2022, section 256R.02, subdivision 24, is amended to read:
49	49	2.17 Subd. 24.Housekeeping costs."Housekeeping costs" means the costs for the salaries
50	50	2.18and wages of the housekeeping supervisor, housekeepers, and other cleaning employees
51	51	2.19and associated fringe benefits and payroll taxes. It also includes the cost of housekeeping
52	52	2.20supplies, including, but not limited to, cleaning and lavatory supplies and contract services.
53	53	2.21 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
54	54	2.222025, or upon federal approval, whichever occurs later. The commissioner of human services
55	55	2.23shall notify the revisor of statutes when federal approval is obtained.
56	56	2.24 Sec. 5. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision to
57	57	2.25read:
58	58	2.26 Subd. 24a.Housekeeping labor costs."Housekeeping labor costs" means the costs for
59	59	2.27the salaries and wages of the housekeeping supervisor, housekeepers, contracted
60	60	2.28housekeeping employees, and other cleaning employees and associated fringe benefits and
61	61	2.29payroll taxes.
62	62	2Sec. 5.
63	63	23-01171 as introduced01/17/23 REVISOR AGW/JW 3.1 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
64	64	3.22025, or upon federal approval, whichever occurs later. The commissioner of human services
65	65	3.3shall notify the revisor of statutes when federal approval is obtained.
66	66	3.4 Sec. 6. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision to
67	67	3.5read:
68	68	3.6 Subd. 25b.Known cost change factor."Known cost change factor" means 1.00 plus
69	69	3.7the forecasted percentage change in the CPI-U index from July 1 of the reporting period to
70	70	3.8July 1 of the rate year as determined by the national economic consultant used by the
71	71	3.9commissioner of management and budget.
72	72	3.10 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
73	73	3.112025, or upon federal approval, whichever occurs later. The commissioner of human services
74	74	3.12shall notify the revisor of statutes when federal approval is obtained.
75	75	3.13 Sec. 7. Minnesota Statutes 2022, section 256R.02, subdivision 26, is amended to read:
76	76	3.14 Subd. 26.Laundry costs."Laundry costs" means the costs for the salaries and wages
77	77	3.15of the laundry supervisor and other laundry employees, associated fringe benefits, and
78	78	3.16payroll taxes. It also includes the costs of linen and bedding, the laundering of resident
79	79	3.17clothing, laundry supplies, and contract services.
80	80	3.18 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
81	81	3.192025, or upon federal approval, whichever occurs later. The commissioner of human services
82	82	3.20shall notify the revisor of statutes when federal approval is obtained.
83	83	3.21 Sec. 8. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision to
84	84	3.22read:
85	85	3.23 Subd. 26a.Laundry labor costs."Laundry labor costs" means the costs for the salaries
86	86	3.24and wages of the laundry supervisor, contracted laundry employees, and other laundry
87	87	3.25employees and associated fringe benefits and payroll taxes.
88	88	3.26 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
89	89	3.272025, or upon federal approval, whichever occurs later. The commissioner of human services
90	90	3.28shall notify the revisor of statutes when federal approval is obtained.
91	91	3Sec. 8.
92	92	23-01171 as introduced01/17/23 REVISOR AGW/JW 4.1 Sec. 9. Minnesota Statutes 2022, section 256R.02, subdivision 29, is amended to read:
93	93	4.2 Subd. 29.Maintenance and plant operations costs."Maintenance and plant operations
94	94	4.3costs" means the costs for the salaries and wages of the maintenance supervisor, engineers,
95	95	4.4heating-plant employees, and other maintenance employees and associated fringe benefits
96	96	4.5and payroll taxes. It also includes identifiable costs for maintenance and operation of the
97	97	4.6building and grounds, including, but not limited to, fuel, electricity, plastic waste bags,
98	98	4.7medical waste and garbage removal, water, sewer, supplies, tools, repairs, and minor
99	99	4.8equipment not requiring capitalization under Medicare guidelines.
100	100	4.9 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
101	101	4.102025, or upon federal approval, whichever occurs later. The commissioner of human services
102	102	4.11shall notify the revisor of statutes when federal approval is obtained.
103	103	4.12 Sec. 10. Minnesota Statutes 2022, section 256R.02, is amended by adding a subdivision
104	104	4.13to read:
105	105	4.14 Subd. 29a.Maintenance and plant operations labor costs."Maintenance and plant
106	106	4.15operations labor costs" means the costs for the salaries and wages of the maintenance
107	107	4.16supervisor, engineers, heating-plant employees, and other maintenance employees and
108	108	4.17associated fringe benefits and payroll taxes.
109	109	4.18 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
110	110	4.192025, or upon federal approval, whichever occurs later. The commissioner of human services
111	111	4.20shall notify the revisor of statutes when federal approval is obtained.
112	112	4.21 Sec. 11. Minnesota Statutes 2022, section 256R.02, subdivision 34, is amended to read:
113	113	4.22 Subd. 34.Other care-related costs."Other care-related costs" means the sum of activities
114	114	4.23costs, other direct care costs, raw food costs, dietary labor costs, housekeeping labor costs,
115	115	4.24laundry labor costs, maintenance and plant operations labor costs, therapy costs, and social
116	116	4.25services costs.
117	117	4.26 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
118	118	4.272025, or upon federal approval, whichever occurs later. The commissioner of human services
119	119	4.28shall notify the revisor of statutes when federal approval is obtained.
120	120	4.29 Sec. 12. Minnesota Statutes 2022, section 256R.23, subdivision 2, is amended to read:
121	121	4.30 Subd. 2.Calculation of direct care cost per standardized day.Each facility's direct
122	122	4.31care cost per standardized day is calculated as follows: (1) multiply the facility's direct care
123	123	4Sec. 12.
124	124	23-01171 as introduced01/17/23 REVISOR AGW/JW 5.1costs divided and the known cost change factor; and (2) divide the result of clause (1) by
125	125	5.2the sum of the facility's standardized days. A facility's direct care cost per standardized day
126	126	5.3is the facility's cost per day for direct care services associated with a case mix index of 1.00.
127	127	5.4 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
128	128	5.52025, or upon federal approval, whichever occurs later. The commissioner of human services
129	129	5.6shall notify the revisor of statutes when federal approval is obtained.
130	130	5.7 Sec. 13. Minnesota Statutes 2022, section 256R.23, subdivision 3, is amended to read:
131	131	5.8 Subd. 3.Calculation of other care-related cost per resident day.Each facility's other
132	132	5.9care-related cost per resident day is its calculated as follows: (1) multiply the facility's other
133	133	5.10care-related costs, divided and the known cost change factor; and (2) divide the result of
134	134	5.11clause (1) by the sum of the facility's resident days.
135	135	5.12 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
136	136	5.132025, or upon federal approval, whichever occurs later. The commissioner of human services
137	137	5.14shall notify the revisor of statutes when federal approval is obtained.
138	138	5.15 Sec. 14. Minnesota Statutes 2022, section 256R.24, subdivision 1, is amended to read:
139	139	5.16 Subdivision 1.Determination of other operating cost per day.Each facility's other
140	140	5.17operating cost per day is its calculated as follows: (1) multiply the facility's other operating
141	141	5.18costs divided and the known cost change factor; and (2) divide the result of clause (1) by
142	142	5.19the sum of the facility's resident days.
143	143	5.20 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
144	144	5.212025, or upon federal approval, whichever occurs later. The commissioner of human services
145	145	5.22shall notify the revisor of statutes when federal approval is obtained.
146	146	5.23 Sec. 15. Minnesota Statutes 2022, section 256R.25, is amended to read:
147	147	5.24 256R.25 EXTERNAL FIXED COSTS PAYMENT RATE.
148	148	5.25 (a) The payment rate for external fixed costs is the sum of the amounts in paragraphs
149	149	5.26(b) to (o).
150	150	5.27 (b) For a facility licensed as a nursing home, the portion related to the provider surcharge
151	151	5.28under section 256.9657 is equal to $8.86 per resident day. For a facility licensed as both a
152	152	5.29nursing home and a boarding care home, the portion related to the provider surcharge under
153	153	5.30section 256.9657 is equal to $8.86 per resident day multiplied by the result of its number
154	154	5.31of nursing home beds divided by its total number of licensed beds.
155	155	5Sec. 15.
156	156	23-01171 as introduced01/17/23 REVISOR AGW/JW 6.1 (c) The portion related to the licensure fee under section 144.122, paragraph (d), is the
157	157	6.2amount of the fee divided by the sum of the facility's resident days.
158	158	6.3 (d) The portion related to development and education of resident and family advisory
159	159	6.4councils under section 144A.33 is $5 per resident day divided by 365.
160	160	6.5 (e) The portion related to scholarships is determined under section 256R.37.
161	161	6.6 (f) The portion related to planned closure rate adjustments is as determined under section
162	162	6.7256R.40, subdivision 5, and Minnesota Statutes 2010, section 256B.436.
163	163	6.8 (g) The portion related to consolidation rate adjustments shall be as determined under
164	164	6.9section 144A.071, subdivisions 4c, paragraph (a), clauses (5) and (6), and 4d.
165	165	6.10 (h) The portion related to single-bed room incentives is as determined under section
166	166	6.11256R.41.
167	167	6.12 (i) The portions related to real estate taxes, special assessments, and payments made in
168	168	6.13lieu of real estate taxes directly identified or allocated to the nursing facility are the allowable
169	169	6.14amounts divided by the sum of the facility's resident days. Allowable costs under this
170	170	6.15paragraph for payments made by a nonprofit nursing facility that are in lieu of real estate
171	171	6.16taxes shall not exceed the amount which the nursing facility would have paid to a city or
172	172	6.17township and county for fire, police, sanitation services, and road maintenance costs had
173	173	6.18real estate taxes been levied on that property for those purposes.
174	174	6.19 (j) The portion related to employer health insurance costs is the calculated as follows:
175	175	6.20(1) multiply the facility's allowable employer health insurance costs divided and the known
176	176	6.21cost change factor; and (2) divide the result of clause (1) by the sum of the facility's resident
177	177	6.22days.
178	178	6.23 (k) The portion related to the Public Employees Retirement Association is the allowable
179	179	6.24costs divided by the sum of the facility's resident days.
180	180	6.25 (l) The portion related to quality improvement incentive payment rate adjustments is
181	181	6.26the amount determined under section 256R.39.
182	182	6.27 (m) The portion related to performance-based incentive payments is the amount
183	183	6.28determined under section 256R.38.
184	184	6.29 (n) The portion related to special dietary needs is the amount determined under section
185	185	6.30256R.51.
186	186	6.31 (o) The portion related to the rate adjustments for border city facilities is the amount
187	187	6.32determined under section 256R.481.
188	188	6Sec. 15.
189	189	23-01171 as introduced01/17/23 REVISOR AGW/JW 7.1 EFFECTIVE DATE.This section is effective for the rate year beginning January 1,
190	190	7.22025, or upon federal approval, whichever occurs later. The commissioner of human services
191	191	7.3shall notify the revisor of statutes when federal approval is obtained.
192	192	7.4 Sec. 16. Minnesota Statutes 2022, section 256S.201, subdivision 3, is amended to read:
193	193	7.5 Subd. 3.Customized living service rates.The authorized rates for customized living
194	194	7.6services and 24-hour customized living services must be based on the amount of component
195	195	7.7services to be provided utilizing component rates established by the commissioner in section
196	196	7.8256S.215. Counties and tribes shall use tools issued by the commissioner to develop and
197	197	7.9document customized living service plans and rates.
198	198	7.10 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval,
199	199	7.11whichever occurs later. The commissioner of human services shall notify the revisor of
200	200	7.12statutes when federal approval is obtained.
201	201	7.13 Sec. 17. Minnesota Statutes 2022, section 256S.21, is amended to read:
202	202	7.14 256S.21 RATE SETTING; APPLICATION.
203	203	7.15 The payment methodologies in sections 256S.2101 256S.211 to 256S.215 apply to
204	204	7.16elderly waiver, elderly waiver customized living, and elderly waiver foster care under this
205	205	7.17chapter; alternative care under section 256B.0913; essential community supports under
206	206	7.18section 256B.0922; and community access for disability inclusion customized living and
207	207	7.19brain injury customized living under section 256B.49.
208	208	7.20 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval,
209	209	7.21whichever occurs later. The commissioner of human services shall notify the revisor of
210	210	7.22statutes when federal approval is obtained.
211	211	7.23 Sec. 18. Minnesota Statutes 2022, section 256S.211, is amended by adding a subdivision
212	212	7.24to read:
213	213	7.25 Subd. 1a.Updating base wages.Each January 1, the commissioner must update the
214	214	7.26base wages under this section based on the most recently available Minneapolis-St.
215	215	7.27Paul-Bloomington, MN-WI MetroSA average wage data from the Bureau of Labor Statistics.
216	216	7.28 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval,
217	217	7.29whichever occurs later. The commissioner of human services shall notify the revisor of
218	218	7.30statutes when federal approval is obtained.
219	219	7Sec. 18.
220	220	23-01171 as introduced01/17/23 REVISOR AGW/JW 8.1 Sec. 19. Minnesota Statutes 2022, section 256S.213, subdivision 1, is amended to read:
221	221	8.2 Subdivision 1.Payroll taxes and benefits factor.The payroll taxes and benefits factor
222	222	8.3is the sum of net payroll taxes and benefits, divided by the sum of all salaries for all nursing
223	223	8.4facilities on the most recent and available cost report. The commissioner must update the
224	224	8.5payroll tax and benefit factor each January 1.
225	225	8.6 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval,
226	226	8.7whichever occurs later. The commissioner of human services shall notify the revisor of
227	227	8.8statutes when federal approval is obtained.
228	228	8.9 Sec. 20. DIRECTION TO COMMISSIONER OF HUMAN SERVICES; PARTIAL
229	229	8.10YEAR RATE ADJUSTMENTS.
230	230	8.11 (a) The commissioner must update the base wage indices in Minnesota Statutes, section
231	231	8.12256S.212, based on the most recently available Minneapolis-St. Paul-Bloomington, MN-WI
232	232	8.13MetroSA average wage data from the Bureau of Labor Statistics.
233	233	8.14 (b) The commissioner must update the payroll tax and benefit factor in Minnesota
234	234	8.15Statutes, section 256S.213, subdivision 1, based on the most recently available nursing
235	235	8.16facility cost report data.
236	236	8.17 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval,
237	237	8.18whichever occurs later, for services rendered on or after the day upon which this section
238	238	8.19becomes effective. The commissioner of human services shall notify the revisor of statutes
239	239	8.20when federal approval is obtained.
240	240	8.21 Sec. 21. NURSING FACILITY FUNDING.
241	241	8.22 (a) Effective July 1, 2023, through December 31, 2025, the total payment rate for all
242	242	8.23facilities reimbursed under Minnesota Statutes, chapter 256R, must be increased by $52 per
243	243	8.24resident day.
244	244	8.25 (b) To be eligible to receive a payment under this section, a nursing facility must attest
245	245	8.26to the commissioner of human services that the additional revenue will be used exclusively
246	246	8.27to increase compensation-related costs for employees directly employed by the facility on
247	247	8.28or after July 1, 2023, excluding:
248	248	8.29 (1) owners of the building and operation;
249	249	8.30 (2) persons employed in the central office of an entity that has any ownership interest
250	250	8.31in the nursing facility or exercises control over the nursing facility;
251	251	8Sec. 21.
252	252	23-01171 as introduced01/17/23 REVISOR AGW/JW 9.1 (3) persons paid by the nursing facility under a management contract; and
253	253	9.2 (4) persons providing separately billable services.
254	254	9.3 (c) Contracted housekeeping, dietary, and laundry employees providing services on site
255	255	9.4at the nursing facility are eligible for compensation-related cost increases under this section,
256	256	9.5provided the agency that employs the employees submits to the nursing facility proof of
257	257	9.6the costs of the increases provided to those employees.
258	258	9.7 (d) For purposes of this section, compensation-related costs include:
259	259	9.8 (1) permanent new increases to wages and salaries implemented on or after July 1, 2023,
260	260	9.9and before September 1, 2023, for nursing facility employees;
261	261	9.10 (2) permanent new increases to wages and salaries implemented on or after July 1, 2023,
262	262	9.11and before September 1, 2023, for employees in the organization's shared services
263	263	9.12departments of hospital-attached nursing facilities for the nursing facility allocated share
264	264	9.13of wages; and
265	265	9.14 (3) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment
266	266	9.15taxes, PERA, workers' compensation, and pension and employee retirement accounts directly
267	267	9.16associated with the wage and salary increases in clauses (1) and (2) incurred no later than
268	268	9.17December 31, 2025, and paid for no later than June 30, 2026.
269	269	9.18 (e) A facility that receives a rate increase under this section must complete a distribution
270	270	9.19plan in the form and manner determined by the commissioner. This plan must specify the
271	271	9.20total amount of money the facility is estimated to receive from this rate increase and how
272	272	9.21that money will be distributed to increase the allowable compensation-related costs described
273	273	9.22in paragraph (d) for employees described in paragraphs (b) and (c). This estimate must be
274	274	9.23calculated by multiplying $52 and the sum of the medical assistance and private pay resident
275	275	9.24days as defined in Minnesota Statutes, section 256R.02, subdivision 45, for the period
276	276	9.25beginning October 1, 2021, through September 30, 2022, dividing this sum by 365 and
277	277	9.26multiplying the result by 915. A facility must submit its distribution plan to the commissioner
278	278	9.27by October 1, 2023. The commissioner may review the distribution plan to ensure that the
279	279	9.28payment rate adjustment per resident day is used in accordance with this section. The
280	280	9.29commissioner may allow for a distribution plan amendment under exceptional circumstances
281	281	9.30to be determined at the sole discretion of the commissioner.
282	282	9.31 (f) By September 1, 2023, a facility must post the distribution plan summary and leave
283	283	9.32it posted for a period of at least six months in an area of the facility to which all employees
284	284	9.33have access. The posted distribution plan summary must be in the form and manner
285	285	9Sec. 21.
286	286	23-01171 as introduced01/17/23 REVISOR AGW/JW 10.1determined by the commissioner. The distribution plan summary must include instructions
287	287	10.2regarding how to contact the commissioner, or the commissioner's representative, if an
288	288	10.3employee believes the employee is covered by paragraph (b) or (c) and has not received the
289	289	10.4compensation-related increases described in paragraph (d). The instruction to such employees
290	290	10.5must include the email address and telephone number that may be used by the employee to
291	291	10.6contact the commissioner's representative. The posted distribution plan summary must
292	292	10.7demonstrate how the increase in paragraph (a) received by the nursing facility from July 1,
293	293	10.82023, through December 31, 2025, will be used in full to pay the compensation-related costs
294	294	10.9in paragraph (d) for employees described in paragraphs (b) and (c).
295	295	10.10 (g) If the nursing facility expends less on new compensation-related costs than the amount
296	296	10.11made available by the rate increase in this section for that purpose, the amount of this rate
297	297	10.12adjustment must be reduced to equal the amount utilized by the facility for purposes
298	298	10.13authorized under this section. If the facility fails to post the distribution plan summary in
299	299	10.14its facility as required, fails to submit its distribution plan to the commissioner by the due
300	300	10.15date, or uses these funds for unauthorized purposes, these rate increases must be treated as
301	301	10.16an overpayment and subsequently recovered.
302	302	10.17 (h) The commissioner must not treat payments received under this section as an applicable
303	303	10.18credit for purposes of setting total payment rates under Minnesota Statutes, chapter 256R.
304	304	10.19 EFFECTIVE DATE.This section is effective July 1, 2023, or upon federal approval,
305	305	10.20whichever is later. The commissioner of human services shall notify the revisor of statutes
306	306	10.21when approval is obtained.
307	307	10.22Sec. 22. ELDERLY WAIVER RATE FRAMEWORK; SPENDING
308	308	10.23REQUIREMENTS.
309	309	10.24 Subdivision 1.Spending requirements.At least 80 percent of the marginal increase in
310	310	10.25revenue from the full implementation of the elderly waiver rate framework under Minnesota
311	311	10.26Statutes, sections 256S.21 to 256S.215, for services rendered on or after the day of
312	312	10.27implementation of the repeal of Minnesota Statutes, section 256S.2101, must be used to
313	313	10.28increase compensation-related costs for employees directly employed by the provider.
314	314	10.29 Subd. 2.Compensation-related costs.For the purposes of this section,
315	315	10.30compensation-related costs include:
316	316	10.31 (1) wages and salaries;
317	317	10.32 (2) the employer's share of FICA taxes, Medicare taxes, state and federal unemployment
318	318	10.33taxes, workers' compensation, and mileage reimbursement;
319	319	10Sec. 22.
320	320	23-01171 as introduced01/17/23 REVISOR AGW/JW 11.1 (3) the employer's paid share of health and dental insurance, life insurance, disability
321	321	11.2insurance, long-term care insurance, uniform allowance, pensions, and contributions to
322	322	11.3employee retirement accounts; and
323	323	11.4 (4) benefits that address direct support professional workforce needs above and beyond
324	324	11.5what employees were offered prior to full implementation of the elderly waiver rate
325	325	11.6framework under Minnesota Statutes, sections 256S.21 to 256S.215.
326	326	11.7 Subd. 3.Nonallowed costs.Compensation-related costs for persons employed in the
327	327	11.8central office of a corporation or entity that has an ownership interest in the provider or
328	328	11.9exercises control over the provider, or for persons paid by the provider under a management
329	329	11.10contract, do not count toward the 80 percent requirement under subdivision 1.
330	330	11.11 Subd. 4.Distribution plans.A provider agency or individual provider that receives
331	331	11.12additional revenue subject to the requirements of this section must prepare, and upon request
332	332	11.13submit to the commissioner, a distribution plan that specifies the amount of money the
333	333	11.14provider expects to receive that is subject to the requirements of this section, including how
334	334	11.15that money was or will be distributed to increase compensation-related costs for employees.
335	335	11.16Within 60 days of final full implementation of the elderly waiver rate framework subject
336	336	11.17to the requirements of this section, the provider must post the distribution plan and leave it
337	337	11.18posted for a period of at least six months in an area of the provider's operation to which all
338	338	11.19direct support professionals have access. The posted distribution plan must include
339	339	11.20instructions regarding how to contact the commissioner, or the commissioner's representative,
340	340	11.21if an employee has not received the compensation-related increase described in the plan.
341	341	11.22 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval,
342	342	11.23whichever is later. The commissioner of human services shall notify the revisor of statutes
343	343	11.24when federal approval is obtained.
344	344	11.25Sec. 23. REPEALER.
345	345	11.26 Minnesota Statutes 2022, section 256S.2101, is repealed.
346	346	11.27 EFFECTIVE DATE.This section is effective January 1, 2024, or upon federal approval,
347	347	11.28whichever occurs later. The commissioner of human services shall notify the revisor of
348	348	11.29statutes when federal approval is obtained.
349	349	11Sec. 23.
350	350	23-01171 as introduced01/17/23 REVISOR AGW/JW