1.1 A bill for an act
1.2 relating to health facilities; prohibiting certain conditions for admission to or
1.3 continued residence in certain facilities; requiring review and approval of increases
1.4 in amounts charged by assisted living facilities; prohibiting termination or
1.5 nonrenewal of assisted living contracts on certain grounds; modifying provisions
1.6 governing arbitration in assisted living contracts; amending Minnesota Statutes
1.7 2024, sections 144G.09, subdivision 2; 144G.19, by adding a subdivision; 144G.40,
1.8 by adding a subdivision; 144G.51; 144G.52, by adding a subdivision; 144G.53;
1.9 245D.10, by adding a subdivision; proposing coding for new law in Minnesota
1.10 Statutes, chapters 144A; 144G.
1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12 Section 1. [144A.104] PROHIBITED CONDITION FOR ADMISSION OR
1.13CONTINUED RESIDENCE.
1.14 A nursing home is prohibited from requiring a current or prospective resident to have
1.15or obtain a guardian or conservator as a condition of admission to or continued residence
1.16in the nursing home.
1.17 Sec. 2. Minnesota Statutes 2024, section 144G.09, subdivision 2, is amended to read:
1.18 Subd. 2.Regulatory functions.(a) The commissioner shall:
1.19 (1) license, survey, and monitor without advance notice assisted living facilities in
1.20accordance with this chapter and rules;
1.21 (2) survey every provisional licensee within one year of the provisional license issuance
1.22date subject to the provisional licensee providing assisted living services to residents;
1.23 (3) survey assisted living facility licensees at least once every two years;
1Sec. 2.
REVISOR SGS/DG 25-0213301/30/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 2216
NINETY-FOURTH SESSION
Authored by Moller, Nadeau and Reyer03/12/2025
The bill was read for the first time and referred to the Committee on Human Services Finance and Policy 2.1 (4) investigate complaints of assisted living facilities;
2.2 (5) issue correction orders and assess civil penalties under sections 144G.30 and 144G.31;
2.3 (6) take action as authorized in section 144G.20; and
2.4 (7) approve or disapprove proposed increases in amounts charged for housing or assisted
2.5living services under sections 144G.19, subdivision 5, and 144G.40, subdivision 4; and
2.6 (7) (8) take other action reasonably required to accomplish the purposes of this chapter.
2.7 (b) The commissioner shall review blueprints for all new facility construction and must
2.8approve the plans before construction may be commenced.
2.9 (c) The commissioner shall provide on-site review of the construction to ensure that all
2.10physical environment standards are met before the facility license is complete.
2.11 Sec. 3. Minnesota Statutes 2024, section 144G.19, is amended by adding a subdivision to
2.12read:
2.13 Subd. 5.Change of ownership; increase in amount charged for housing or
2.14services.(a) Following a change of ownership, the new licensee must honor the terms of
2.15an assisted living contract in effect at the time of the change of ownership until the contract
2.16expires. A new licensee that proposes to increase the amount charged for housing or assisted
2.17living services in an assisted living contract replacing a contract in effect at the time of the
2.18change of ownership must provide the commissioner with justification for and specific
2.19documentation supporting the proposed increase.
2.20 (b) The commissioner must review the justification and documentation provided under
2.21paragraph (a) and approve or disapprove the proposed increase. The commissioner may
2.22request from the new licensee additional documentation or information the commissioner
2.23deems necessary to conduct the review. An assisted living facility must not implement a
2.24proposed increase described in paragraph (a) unless the commissioner approves the proposed
2.25increase.
2.26 Sec. 4. Minnesota Statutes 2024, section 144G.40, is amended by adding a subdivision to
2.27read:
2.28 Subd. 4.Increase in amount charged for housing or services.(a) If an assisted living
2.29facility proposes to increase the amount charged for housing or assisted living services by
2.30an amount that exceeds the change in the Consumer Price Index for All Urban Consumers
2.31published by the federal Bureau of Labor Statistics, for the most recent 12-month period
2Sec. 4.
REVISOR SGS/DG 25-0213301/30/25 3.1for which data is available, the assisted living facility must provide the commissioner with
3.2justification for and specific documentation supporting the proposed increase.
3.3 (b) The documentation required under paragraph (a) must include:
3.4 (1) data on operational costs, including but not limited to the cost of staffing, utilities,
3.5maintenance, and other day-to-day expenses necessary to operate the facility;
3.6 (2) data on the proposed imposition of any new fees, but is not limited to a raw food
3.7fee, community fee, pharmacy choice or coordination fee, hospice choice or coordination
3.8fee, or activities fee;
3.9 (3) the facility's balance sheet, including projected revenues and expenses for the next
3.10fiscal year;
3.11 (4) data on costs related to compliance with new regulatory requirements, including but
3.12not limited to health and safety requirements;
3.13 (5) data on capital improvements to, upgrades to, or expansion of the facility, including
3.14but not limited to building renovations or new construction;
3.15 (6) a comparison of the facility's costs and fees and the costs and fees of similar facilities
3.16in the region where the facility is located;
3.17 (7) data on whether the facility's residents have increased needs or are requesting new
3.18amenities; and
3.19 (8) the percentage of revenue devoted to administrative costs and the percentage of
3.20revenue devoted to marketing costs.
3.21 (c) The commissioner must review the justification and documentation provided under
3.22paragraph (a) and approve or disapprove the proposed increase. The commissioner may
3.23request from the facility additional documentation or information the commissioner deems
3.24necessary to conduct the review. An assisted living facility must not implement a proposed
3.25increase described in paragraph (a) unless the commissioner approves the proposed increase.
3.26 (d) If the commissioner approves the proposed increase, approval must be conditioned
3.27on the facility maintaining or improving the quality of care it provides, including but not
3.28limited to hiring additional staff, improving staff training, updating medical equipment, or
3.29upgrading physical environment elements of the facility.
3Sec. 4.
REVISOR SGS/DG 25-0213301/30/25 4.1 Sec. 5. [144G.505] PROHIBITED CONDITION OF ADMISSION OR CONTINUED
4.2RESIDENCE.
4.3 An assisted living facility is prohibited from requiring a current or prospective resident
4.4to have or obtain a guardian or conservator as a condition of admission to or continued
4.5residence in the assisted living facility.
4.6 Sec. 6. Minnesota Statutes 2024, section 144G.51, is amended to read:
4.7 144G.51 ARBITRATION.
4.8 (a) An assisted living facility must clearly and conspicuously disclose, in writing in an
4.9assisted living contract, any arbitration provision in the contract that precludes, limits, or
4.10delays the ability of a resident from taking a civil action. is prohibited from:
4.11 (1) requiring mandatory arbitration to resolve contractual or other disputes; or
4.12 (2) requiring a current or prospective resident, as a condition of admission to or continued
4.13residence in the facility, to agree to use arbitration to resolve contractual or other disputes.
4.14 (b) The use of arbitration to resolve a contractual or other dispute must be optional for
4.15the resident. Any optional arbitration provision must be contained in a separate writing as
4.16an addendum to the assisted living contract, together with a conspicuous notice that arbitration
4.17is optional and cannot be a condition of admission or continued residence. An arbitration
4.18agreement that violates this paragraph is void and unenforceable.
4.19 (b) (c) An optional arbitration requirement provision must not include a choice of law
4.20or choice of venue provision. Assisted living contracts must adhere to Minnesota law and
4.21any other applicable federal or local law.
4.22 Sec. 7. Minnesota Statutes 2024, section 144G.52, is amended by adding a subdivision to
4.23read:
4.24 Subd. 5a.Impermissible ground for termination.A facility must not terminate an
4.25assisted living contract on the ground that the resident changes from using private funds to
4.26using public funds to pay for housing or services. This subdivision does not prohibit a
4.27facility from terminating an assisted living contract for nonpayment according to subdivision
4.283, or for a violation of the assisted living contract according to subdivision 4.
4Sec. 7.
REVISOR SGS/DG 25-0213301/30/25 5.1 Sec. 8. Minnesota Statutes 2024, section 144G.53, is amended to read:
5.2 144G.53 NONRENEWAL OF HOUSING.
5.3 Subdivision 1.Notice or termination procedure.(a) If a facility decides to not renew
5.4a resident's housing under a contract, the facility must either (1) provide the resident with
5.560 calendar days' notice of the nonrenewal and assistance with relocation planning, or (2)
5.6follow the termination procedure under section 144G.52.
5.7 (b) The notice must include the reason for the nonrenewal and contact information of
5.8the Office of Ombudsman for Long-Term Care and the Office of Ombudsman for Mental
5.9Health and Developmental Disabilities.
5.10 (c) A facility must:
5.11 (1) provide notice of the nonrenewal to the Office of Ombudsman for Long-Term Care;
5.12and
5.13 (2) for residents who receive home and community-based waiver services under chapter
5.14256S and section 256B.49, provide notice to the resident's case manager;.
5.15 Subd. 2.Prohibited ground for nonrenewal.A facility must not decline to renew a
5.16resident's housing under a contract on the ground that the resident changes from using private
5.17funds to using public funds to pay for housing. This subdivision does not prohibit a facility
5.18from terminating an assisted living contract for nonpayment according to section 144G.52,
5.19subdivision 3, or for a violation of the assisted living contract according to section 144G.52,
5.20subdivision 4.
5.21 Subd. 3.Requirements following notice.If a facility provides notice of nonrenewal
5.22according to subdivision 1, the facility must:
5.23 (3) (1) ensure a coordinated move to a safe location, as defined in section 144G.55,
5.24subdivision 2, that is appropriate for the resident;
5.25 (4) (2) ensure a coordinated move to an appropriate service provider identified by the
5.26facility, if services are still needed and desired by the resident;
5.27 (5) (3) consult and cooperate with the resident, legal representative, designated
5.28representative, case manager for a resident who receives home and community-based waiver
5.29services under chapter 256S and section 256B.49, relevant health professionals, and any
5.30other persons of the resident's choosing to make arrangements to move the resident, including
5.31consideration of the resident's goals; and
5.32 (6) (4) prepare a written plan to prepare for the move.
5Sec. 8.
REVISOR SGS/DG 25-0213301/30/25 6.1 Subd. 4.Right to move to location of resident's choosing or to use provider of
6.2resident's choosing.(d) A resident may decline to move to the location the facility identifies
6.3or to accept services from a service provider the facility identifies, and may instead choose
6.4to move to a location of the resident's choosing or receive services from a service provider
6.5of the resident's choosing within the timeline prescribed in the nonrenewal notice.
6.6 Sec. 9. Minnesota Statutes 2024, section 245D.10, is amended by adding a subdivision to
6.7read:
6.8 Subd. 1a.Prohibited condition of admission or continued residence.A license holder
6.9is prohibited from requiring a current or prospective resident to have or obtain a guardian
6.10or conservator as a condition of admission to or continued residence in the facility.
6Sec. 9.
REVISOR SGS/DG 25-0213301/30/25