Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF2522 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to health facilities; prohibiting certain conditions for admission to or
3	3		1.3 continued residence in certain facilities; requiring review and approval of increases
4	4		1.4 in amounts charged by assisted living facilities; prohibiting termination or
5		-	1.5 nonrenewal of assisted living contracts on certain grounds; ~~amending Minnesota~~
6		-	1.6 ~~Statutes 2024,~~ ~~sections 144G.09, subdivision 2~~; ~~144G.19, by adding a subdivision;~~
7		-	1.7 144G.40, by adding a subdivision; 144G.52, ~~by adding a subdivision; 144G.53;~~
8		-	1.8 ~~245D~~.10, by adding a subdivision; ~~proposing coding for new law in Minnesota~~
9		-	1.9 ~~Statutes~~, ~~chapters 144A~~; ~~144G.~~
10		-	1.~~10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:~~
11		-	1.~~11 Section 1.~~ ~~[144A.104] PROHIBITED CONDITION FOR ADMISSION OR~~
12		-	1.~~12CONTINUED RESIDENCE~~.
13		-	1.~~13 A nursing home is prohibited from requiring a current or prospective resident to have~~
14		-	1.~~14or obtain~~ a ~~guardian~~ or ~~conservator as a condition of admission~~ to ~~or continued residence~~
15		-	1.~~15in the nursing home.~~
16		-	1.~~16 Sec~~. ~~2. Minnesota Statutes 2024, section 144G.09, subdivision 2, is amended to read:~~
17		-	1.17 ~~Subd~~. 2.~~Regulatory functions~~.~~(a) The commissioner shall~~:
18		-	1.18 (1) ~~license, survey,~~ ~~and monitor without advance notice assisted living facilities in~~
19		-	1.~~19accordance with this chapter~~ and ~~rules;~~
20		-	1.~~20 (2) survey every provisional licensee within one year of the provisional license issuance~~
21		-	1.~~21date subject to~~ the provisional ~~licensee providing assisted living services to residents;~~
22		-	1.~~22 (3) survey~~ assisted living ~~facility licensees at least once every two years~~;
23		-	1.23 (4) ~~investigate complaints of~~ assisted living ~~facilities~~;
	5	+	1.5 nonrenewal of assisted living contracts on certain grounds; modifying provisions
	6	+	1.6 governing arbitration in assisted living contracts; amending Minnesota Statutes
	7	+	1.7 2024, sections 144G.09, subdivision 2; 144G.19, by adding a subdivision; 144G.40,
	8	+	1.8 by adding a subdivision; 144G.51; 144G.52, by adding a subdivision; 144G.53;
	9	+	1.9 245D.10, by adding a subdivision; proposing coding for new law in Minnesota
	10	+	1.10 Statutes, chapters 144A; 144G.
	11	+	1.11BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
	12	+	1.12 Section 1. [144A.104] PROHIBITED CONDITION FOR ADMISSION OR
	13	+	1.13CONTINUED RESIDENCE.
	14	+	1.14 A nursing home is prohibited from requiring a current or prospective resident to have
	15	+	1.15or obtain a guardian or conservator as a condition of admission to or continued residence
	16	+	1.16in the nursing home.
	17	+	1.17 Sec. 2. Minnesota Statutes 2024, section 144G.09, subdivision 2, is amended to read:
	18	+	1.18 Subd. 2.Regulatory functions.(a) The commissioner shall:
	19	+	1.19 (1) license, survey, and monitor without advance notice assisted living facilities in
	20	+	1.20accordance with this chapter and rules;
	21	+	1.21 (2) survey every provisional licensee within one year of the provisional license issuance
	22	+	1.22date subject to the provisional licensee providing assisted living services to residents;
	23	+	1.23 (3) survey assisted living facility licensees at least once every two years;
24	24		1Sec. 2.
25		-	~~S2522-1 1st Engrossment~~~~SF2522~~ REVISOR SGS
	25	+	25-02133 as introduced01/30/25 REVISOR SGS/DG
26	26		SENATE
27	27		STATE OF MINNESOTA
28	28		S.F. No. 2522NINETY-FOURTH SESSION
29		-	(SENATE AUTHORS: MANN~~, Mohamed~~ and ~~Maye Quade~~)
	29	+	(SENATE AUTHORS: MANN and Mohamed)
30	30		OFFICIAL STATUSD-PGDATE
31		-	Introduction and first reading76603/13/2025
32		-	Referred to Human Services
33		-	Comm report: Amended, No recommendation, re-referred to Housing and Homelessness Prevention03/20/2025
34		-	Author added Maye Quade 2.1 (5) issue correction orders and assess civil penalties under sections 144G.30 and 144G.31;
35		-	2.2 (6) take action as authorized in section 144G.20; and
36		-	2.3 (7) approve or disapprove proposed increases in amounts charged for housing or assisted
37		-	2.4living services under sections 144G.19, subdivision 5, and 144G.40, subdivision 4; and
38		-	2.5 (7) (8) take other action reasonably required to accomplish the purposes of this chapter.
39		-	2.6 (b) The commissioner shall review blueprints for all new facility construction and must
40		-	2.7approve the plans before construction may be commenced.
41		-	2.8 (c) The commissioner shall provide on-site review of the construction to ensure that all
42		-	2.9physical environment standards are met before the facility license is complete.
43		-	2.10 Sec. 3. Minnesota Statutes 2024, section 144G.19, is amended by adding a subdivision to
44		-	2.11read:
45		-	2.12 Subd. 5.Change of ownership; increase in amount charged for housing or
46		-	2.13services.(a) Following a change of ownership, the new licensee must honor the terms of
47		-	2.14an assisted living contract in effect at the time of the change of ownership until the contract
48		-	2.15expires. A new licensee that proposes to increase the amount charged for housing or assisted
49		-	2.16living services in an assisted living contract replacing a contract in effect at the time of the
50		-	2.17change of ownership must provide the commissioner with justification for and specific
51		-	2.18documentation supporting the proposed increase.
52		-	2.19 (b) The commissioner must review the justification and documentation provided under
53		-	2.20paragraph (a) and approve or disapprove the proposed increase. The commissioner may
54		-	2.21request from the new licensee additional documentation or information the commissioner
55		-	2.22deems necessary to conduct the review. An assisted living facility must not implement a
56		-	2.23proposed increase described in paragraph (a) unless the commissioner approves the proposed
57		-	2.24increase.
58		-	2.25 Sec. 4. Minnesota Statutes 2024, section 144G.40, is amended by adding a subdivision to
59		-	2.26read:
60		-	2.27 Subd. 4.Increase in amount charged for housing or services.(a) If an assisted living
61		-	2.28facility proposes to increase the amount charged for housing or assisted living services by
62		-	2.29an amount that exceeds the change in the Consumer Price Index for All Urban Consumers
63		-	2.30published by the federal Bureau of Labor Statistics, for the most recent 12-month period
64		-	2.31for which data is available, the assisted living facility must provide the commissioner with
65		-	2.32justification for and specific documentation supporting the proposed increase.
	31	+	Introduction and first reading03/13/2025
	32	+	Referred to Human Services 2.1 (4) investigate complaints of assisted living facilities;
	33	+	2.2 (5) issue correction orders and assess civil penalties under sections 144G.30 and 144G.31;
	34	+	2.3 (6) take action as authorized in section 144G.20; and
	35	+	2.4 (7) approve or disapprove proposed increases in amounts charged for housing or assisted
	36	+	2.5living services under sections 144G.19, subdivision 5, and 144G.40, subdivision 4; and
	37	+	2.6 (7) (8) take other action reasonably required to accomplish the purposes of this chapter.
	38	+	2.7 (b) The commissioner shall review blueprints for all new facility construction and must
	39	+	2.8approve the plans before construction may be commenced.
	40	+	2.9 (c) The commissioner shall provide on-site review of the construction to ensure that all
	41	+	2.10physical environment standards are met before the facility license is complete.
	42	+	2.11 Sec. 3. Minnesota Statutes 2024, section 144G.19, is amended by adding a subdivision to
	43	+	2.12read:
	44	+	2.13 Subd. 5.Change of ownership; increase in amount charged for housing or
	45	+	2.14services.(a) Following a change of ownership, the new licensee must honor the terms of
	46	+	2.15an assisted living contract in effect at the time of the change of ownership until the contract
	47	+	2.16expires. A new licensee that proposes to increase the amount charged for housing or assisted
	48	+	2.17living services in an assisted living contract replacing a contract in effect at the time of the
	49	+	2.18change of ownership must provide the commissioner with justification for and specific
	50	+	2.19documentation supporting the proposed increase.
	51	+	2.20 (b) The commissioner must review the justification and documentation provided under
	52	+	2.21paragraph (a) and approve or disapprove the proposed increase. The commissioner may
	53	+	2.22request from the new licensee additional documentation or information the commissioner
	54	+	2.23deems necessary to conduct the review. An assisted living facility must not implement a
	55	+	2.24proposed increase described in paragraph (a) unless the commissioner approves the proposed
	56	+	2.25increase.
	57	+	2.26 Sec. 4. Minnesota Statutes 2024, section 144G.40, is amended by adding a subdivision to
	58	+	2.27read:
	59	+	2.28 Subd. 4.Increase in amount charged for housing or services.(a) If an assisted living
	60	+	2.29facility proposes to increase the amount charged for housing or assisted living services by
	61	+	2.30an amount that exceeds the change in the Consumer Price Index for All Urban Consumers
	62	+	2.31published by the federal Bureau of Labor Statistics, for the most recent 12-month period
66	63		2Sec. 4.
67		-	S2522-1 1st EngrossmentSF2522 REVISOR SGS 3.1 (b) The documentation required under paragraph (a) must include:
68		-	3.2 (1) data on operational costs, including but not limited to the cost of staffing, utilities,
69		-	3.3maintenance, and other day-to-day expenses necessary to operate the facility;
70		-	3.4 (2) data on the proposed imposition of any new fees, but is not limited to a raw food
71		-	3.5fee, community fee, pharmacy choice or coordination fee, hospice choice or coordination
72		-	3.6fee, or activities fee;
73		-	3.7 (3) the facility's balance sheet, including projected revenues and expenses for the next
74		-	3.8fiscal year;
75		-	3.9 (4) data on costs related to compliance with new regulatory requirements, including but
76		-	3.10not limited to health and safety requirements;
77		-	3.11 (5) data on capital improvements to, upgrades to, or expansion of the facility, including
78		-	3.12but not limited to building renovations or new construction;
79		-	3.13 (6) a comparison of the facility's costs and fees and the costs and fees of similar facilities
80		-	3.14in the region where the facility is located;
81		-	3.15 (7) data on whether the facility's residents have increased needs or are requesting new
82		-	3.16amenities; and
83		-	3.17 (8) the percentage of revenue devoted to administrative costs and the percentage of
84		-	3.18revenue devoted to marketing costs.
85		-	3.19 (c) The commissioner must review the justification and documentation provided under
86		-	3.20paragraph (a) and approve or disapprove the proposed increase. The commissioner may
87		-	3.21request from the facility additional documentation or information the commissioner deems
88		-	3.22necessary to conduct the review. An assisted living facility must not implement a proposed
89		-	3.23increase described in paragraph (a) unless the commissioner approves the proposed increase.
90		-	3.24 (d) If the commissioner approves the proposed increase, approval must be conditioned
91		-	3.25on the facility maintaining or improving the quality of care it provides, including but not
92		-	3.26limited to hiring additional staff, improving staff training, updating medical equipment, or
93		-	3.27upgrading physical environment elements of the facility.
94		-	3.28 Sec. 5. [144G.505] PROHIBITED CONDITION OF ADMISSION OR CONTINUED
95		-	3.29RESIDENCE.
96		-	3.30 An assisted living facility is prohibited from requiring a current or prospective resident
97		-	3.31to have or obtain a guardian or conservator as a condition of admission to or continued
98		-	3.32residence in the assisted living facility.
99		-	3Sec. 5.
100		-	S2522-1 1st EngrossmentSF2522 REVISOR SGS 4.1 Sec. 6. Minnesota Statutes 2024, section 144G.52, is amended by adding a subdivision to
101		-	4.2read:
102		-	4.3 Subd. 5a.Impermissible ground for termination.A facility must not terminate an
103		-	4.4assisted living contract on the ground that the resident changes from using private funds to
104		-	4.5using public funds to pay for housing or services. This subdivision does not prohibit a
105		-	4.6facility from terminating an assisted living contract for nonpayment according to subdivision
106		-	4.73, or for a violation of the assisted living contract according to subdivision 4.
107		-	4.8 Sec. 7. Minnesota Statutes 2024, section 144G.53, is amended to read:
108		-	4.9 144G.53 NONRENEWAL OF HOUSING.
109		-	4.10 Subdivision 1.Notice or termination procedure.(a) If a facility decides to not renew
110		-	4.11a resident's housing under a contract, the facility must either (1) provide the resident with
111		-	4.1260 calendar days' notice of the nonrenewal and assistance with relocation planning, or (2)
112		-	4.13follow the termination procedure under section 144G.52.
113		-	4.14 (b) The notice must include the reason for the nonrenewal and contact information of
114		-	4.15the Office of Ombudsman for Long-Term Care and the Office of Ombudsman for Mental
115		-	4.16Health and Developmental Disabilities.
116		-	4.17 (c) A facility must:
117		-	4.18 (1) provide notice of the nonrenewal to the Office of Ombudsman for Long-Term Care;
118		-	4.19and
119		-	4.20 (2) for residents who receive home and community-based waiver services under chapter
120		-	4.21256S and section 256B.49, provide notice to the resident's case manager;.
121		-	4.22 Subd. 2.Prohibited ground for nonrenewal.A facility must not decline to renew a
122		-	4.23resident's housing under a contract on the ground that the resident changes from using private
123		-	4.24funds to using public funds to pay for housing. This subdivision does not prohibit a facility
124		-	4.25from terminating an assisted living contract for nonpayment according to section 144G.52,
125		-	4.26subdivision 3, or for a violation of the assisted living contract according to section 144G.52,
126		-	4.27subdivision 4.
127		-	4.28 Subd. 3.Requirements following notice.If a facility provides notice of nonrenewal
128		-	4.29according to subdivision 1, the facility must:
129		-	4.30 (3) (1) ensure a coordinated move to a safe location, as defined in section 144G.55,
130		-	4.31subdivision 2, that is appropriate for the resident;
	64	+	25-02133 as introduced01/30/25 REVISOR SGS/DG 3.1for which data is available, the assisted living facility must provide the commissioner with
	65	+	3.2justification for and specific documentation supporting the proposed increase.
	66	+	3.3 (b) The documentation required under paragraph (a) must include:
	67	+	3.4 (1) data on operational costs, including but not limited to the cost of staffing, utilities,
	68	+	3.5maintenance, and other day-to-day expenses necessary to operate the facility;
	69	+	3.6 (2) data on the proposed imposition of any new fees, but is not limited to a raw food
	70	+	3.7fee, community fee, pharmacy choice or coordination fee, hospice choice or coordination
	71	+	3.8fee, or activities fee;
	72	+	3.9 (3) the facility's balance sheet, including projected revenues and expenses for the next
	73	+	3.10fiscal year;
	74	+	3.11 (4) data on costs related to compliance with new regulatory requirements, including but
	75	+	3.12not limited to health and safety requirements;
	76	+	3.13 (5) data on capital improvements to, upgrades to, or expansion of the facility, including
	77	+	3.14but not limited to building renovations or new construction;
	78	+	3.15 (6) a comparison of the facility's costs and fees and the costs and fees of similar facilities
	79	+	3.16in the region where the facility is located;
	80	+	3.17 (7) data on whether the facility's residents have increased needs or are requesting new
	81	+	3.18amenities; and
	82	+	3.19 (8) the percentage of revenue devoted to administrative costs and the percentage of
	83	+	3.20revenue devoted to marketing costs.
	84	+	3.21 (c) The commissioner must review the justification and documentation provided under
	85	+	3.22paragraph (a) and approve or disapprove the proposed increase. The commissioner may
	86	+	3.23request from the facility additional documentation or information the commissioner deems
	87	+	3.24necessary to conduct the review. An assisted living facility must not implement a proposed
	88	+	3.25increase described in paragraph (a) unless the commissioner approves the proposed increase.
	89	+	3.26 (d) If the commissioner approves the proposed increase, approval must be conditioned
	90	+	3.27on the facility maintaining or improving the quality of care it provides, including but not
	91	+	3.28limited to hiring additional staff, improving staff training, updating medical equipment, or
	92	+	3.29upgrading physical environment elements of the facility.
	93	+	3Sec. 4.
	94	+	25-02133 as introduced01/30/25 REVISOR SGS/DG 4.1 Sec. 5. [144G.505] PROHIBITED CONDITION OF ADMISSION OR CONTINUED
	95	+	4.2RESIDENCE.
	96	+	4.3 An assisted living facility is prohibited from requiring a current or prospective resident
	97	+	4.4to have or obtain a guardian or conservator as a condition of admission to or continued
	98	+	4.5residence in the assisted living facility.
	99	+	4.6 Sec. 6. Minnesota Statutes 2024, section 144G.51, is amended to read:
	100	+	4.7 144G.51 ARBITRATION.
	101	+	4.8 (a) An assisted living facility must clearly and conspicuously disclose, in writing in an
	102	+	4.9assisted living contract, any arbitration provision in the contract that precludes, limits, or
	103	+	4.10delays the ability of a resident from taking a civil action. is prohibited from:
	104	+	4.11 (1) requiring mandatory arbitration to resolve contractual or other disputes; or
	105	+	4.12 (2) requiring a current or prospective resident, as a condition of admission to or continued
	106	+	4.13residence in the facility, to agree to use arbitration to resolve contractual or other disputes.
	107	+	4.14 (b) The use of arbitration to resolve a contractual or other dispute must be optional for
	108	+	4.15the resident. Any optional arbitration provision must be contained in a separate writing as
	109	+	4.16an addendum to the assisted living contract, together with a conspicuous notice that arbitration
	110	+	4.17is optional and cannot be a condition of admission or continued residence. An arbitration
	111	+	4.18agreement that violates this paragraph is void and unenforceable.
	112	+	4.19 (b) (c) An optional arbitration requirement provision must not include a choice of law
	113	+	4.20or choice of venue provision. Assisted living contracts must adhere to Minnesota law and
	114	+	4.21any other applicable federal or local law.
	115	+	4.22 Sec. 7. Minnesota Statutes 2024, section 144G.52, is amended by adding a subdivision to
	116	+	4.23read:
	117	+	4.24 Subd. 5a.Impermissible ground for termination.A facility must not terminate an
	118	+	4.25assisted living contract on the ground that the resident changes from using private funds to
	119	+	4.26using public funds to pay for housing or services. This subdivision does not prohibit a
	120	+	4.27facility from terminating an assisted living contract for nonpayment according to subdivision
	121	+	4.283, or for a violation of the assisted living contract according to subdivision 4.
131	122		4Sec. 7.
132		-	S2522-1 1st EngrossmentSF2522 REVISOR SGS 5.1 (4) (2) ensure a coordinated move to an appropriate service provider identified by the
133		-	5.2facility, if services are still needed and desired by the resident;
134		-	5.3 (5) (3) consult and cooperate with the resident, legal representative, designated
135		-	5.4representative, case manager for a resident who receives home and community-based waiver
136		-	5.5services under chapter 256S and section 256B.49, relevant health professionals, and any
137		-	5.6other persons of the resident's choosing to make arrangements to move the resident, including
138		-	5.7consideration of the resident's goals; and
139		-	5.8 (6) (4) prepare a written plan to prepare for the move.
140		-	5.9 Subd. 4.Right to move to location of resident's choosing or to use provider of
141		-	5.10resident's choosing.(d) A resident may decline to move to the location the facility identifies
142		-	5.11or to accept services from a service provider the facility identifies, and may instead choose
143		-	5.12to move to a location of the resident's choosing or receive services from a service provider
144		-	5.13of the resident's choosing within the timeline prescribed in the nonrenewal notice.
145		-	5.14 Sec. 8. Minnesota Statutes 2024, section 245D.10, is amended by adding a subdivision to
146		-	5.15read:
147		-	5.16 Subd. 1a.Prohibited condition of admission or continued residence.A license holder
148		-	5.17is prohibited from requiring a current or prospective resident to have or obtain a guardian
149		-	5.18or conservator as a condition of admission to or continued residence in the facility.
	123	+	25-02133 as introduced01/30/25 REVISOR SGS/DG 5.1 Sec. 8. Minnesota Statutes 2024, section 144G.53, is amended to read:
	124	+	5.2 144G.53 NONRENEWAL OF HOUSING.
	125	+	5.3 Subdivision 1.Notice or termination procedure.(a) If a facility decides to not renew
	126	+	5.4a resident's housing under a contract, the facility must either (1) provide the resident with
	127	+	5.560 calendar days' notice of the nonrenewal and assistance with relocation planning, or (2)
	128	+	5.6follow the termination procedure under section 144G.52.
	129	+	5.7 (b) The notice must include the reason for the nonrenewal and contact information of
	130	+	5.8the Office of Ombudsman for Long-Term Care and the Office of Ombudsman for Mental
	131	+	5.9Health and Developmental Disabilities.
	132	+	5.10 (c) A facility must:
	133	+	5.11 (1) provide notice of the nonrenewal to the Office of Ombudsman for Long-Term Care;
	134	+	5.12and
	135	+	5.13 (2) for residents who receive home and community-based waiver services under chapter
	136	+	5.14256S and section 256B.49, provide notice to the resident's case manager;.
	137	+	5.15 Subd. 2.Prohibited ground for nonrenewal.A facility must not decline to renew a
	138	+	5.16resident's housing under a contract on the ground that the resident changes from using private
	139	+	5.17funds to using public funds to pay for housing. This subdivision does not prohibit a facility
	140	+	5.18from terminating an assisted living contract for nonpayment according to section 144G.52,
	141	+	5.19subdivision 3, or for a violation of the assisted living contract according to section 144G.52,
	142	+	5.20subdivision 4.
	143	+	5.21 Subd. 3.Requirements following notice.If a facility provides notice of nonrenewal
	144	+	5.22according to subdivision 1, the facility must:
	145	+	5.23 (3) (1) ensure a coordinated move to a safe location, as defined in section 144G.55,
	146	+	5.24subdivision 2, that is appropriate for the resident;
	147	+	5.25 (4) (2) ensure a coordinated move to an appropriate service provider identified by the
	148	+	5.26facility, if services are still needed and desired by the resident;
	149	+	5.27 (5) (3) consult and cooperate with the resident, legal representative, designated
	150	+	5.28representative, case manager for a resident who receives home and community-based waiver
	151	+	5.29services under chapter 256S and section 256B.49, relevant health professionals, and any
	152	+	5.30other persons of the resident's choosing to make arrangements to move the resident, including
	153	+	5.31consideration of the resident's goals; and
	154	+	5.32 (6) (4) prepare a written plan to prepare for the move.
150	155		5Sec. 8.
151		-	S2522-1 1st EngrossmentSF2522 REVISOR SGS
	156	+	25-02133 as introduced01/30/25 REVISOR SGS/DG 6.1 Subd. 4.Right to move to location of resident's choosing or to use provider of
	157	+	6.2resident's choosing.(d) A resident may decline to move to the location the facility identifies
	158	+	6.3or to accept services from a service provider the facility identifies, and may instead choose
	159	+	6.4to move to a location of the resident's choosing or receive services from a service provider
	160	+	6.5of the resident's choosing within the timeline prescribed in the nonrenewal notice.
	161	+	6.6 Sec. 9. Minnesota Statutes 2024, section 245D.10, is amended by adding a subdivision to
	162	+	6.7read:
	163	+	6.8 Subd. 1a.Prohibited condition of admission or continued residence.A license holder
	164	+	6.9is prohibited from requiring a current or prospective resident to have or obtain a guardian
	165	+	6.10or conservator as a condition of admission to or continued residence in the facility.
	166	+	6Sec. 9.
	167	+	25-02133 as introduced01/30/25 REVISOR SGS/DG