1.1    .................... moves to amend H. F. No. 4014 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2006, section 144A.071, subdivision 4c, is amended to
1.5    Subd. 4c. Exceptions for replacement beds after June 30, 2003. (a) The
1.6commissioner of health, in coordination with the commissioner of human services, may
1.7approve the renovation, replacement, upgrading, or relocation of a nursing home or
1.8boarding care home, under the following conditions:
1.9    (1) to license and certify an 80-bed city-owned facility in Nicollet County to be
1.10constructed on the site of a new city-owned hospital to replace an existing 85-bed facility
1.11attached to a hospital that is also being replaced. The threshold allowed for this project
1.12under section 144A.073 shall be the maximum amount available to pay the additional
1.13medical assistance costs of the new facility;
1.14    (2) to license and certify 29 beds to be added to an existing 69-bed facility in St.
1.15Louis County, provided that the 29 beds must be transferred from active or layaway status
1.16at an existing facility in St. Louis County that had 235 beds on April 1, 2003.
1.17The licensed capacity at the 235-bed facility must be reduced to 206 beds, but the payment
1.18rate at that facility shall not be adjusted as a result of this transfer. The operating payment
1.19rate of the facility adding beds after completion of this project shall be the same as it was
1.20on the day prior to the day the beds are licensed and certified. This project shall not
1.21proceed unless it is approved and financed under the provisions of section 144A.073;
1.22    (3) to license and certify a new 60-bed facility in Austin, provided that: (i) 45 of
1.23the new beds are transferred from a 45-bed facility in Austin under common ownership
1.24that is closed and 15 of the new beds are transferred from a 182-bed facility in Albert Lea
1.25under common ownership; (ii) the commissioner of human services is authorized by the
1.262004 legislature to negotiate budget-neutral planned nursing facility closures; and (iii)
1.27money is available from planned closures of facilities under common ownership to make
2.1implementation of this clause budget-neutral to the state. The bed capacity of the Albert
2.2Lea facility shall be reduced to 167 beds following the transfer. Of the 60 beds at the
2.3new facility, 20 beds shall be used for a special care unit for persons with Alzheimer's
2.4disease or related dementias; and
2.5    (4) to license and certify up to 80 beds transferred from an existing state-owned
2.6nursing facility in Cass County to a new facility located on the grounds of the
2.7Ah-Gwah-Ching campus. The operating cost payment rates for the new facility shall be
2.8determined based on the interim and settle-up payment provisions of Minnesota Rules,
2.9part 9549.0057, and the reimbursement provisions of section 256B.431. The property
2.10payment rate for the first three years of operation shall be $35 per day. For subsequent
2.11years, the property payment rate of $35 per day shall be adjusted for inflation as provided
2.12in section 256B.434, subdivision 4, paragraph (c), as long as the facility has a contract
2.13under section 256B.434; and
2.14    (5) to initiate a pilot program to license and certify up to 80 beds transferred from
2.15an existing county-owned nursing facility in Steele County relocated to the site of a new
2.16acute care facility as part of the county's Communities for a Lifetime comprehensive plan
2.17to create innovative responses to the aging of its population. Upon relocation to the new
2.18site, the nursing facility shall delicense 28 beds. The property payment rate for the first
2.19three years of operation of the new facility shall be increased by an amount as calculated
2.20according to items (i) to (v):
2.21    (i) compute the estimated decrease in medical assistance residents served by the
2.22nursing facility by multiplying the decrease in licensed beds by the historical percentage
2.23of medical assistance resident days;
2.24    (ii) compute the annual savings to the medical assistance program from the
2.25delicensure of 28 beds by multiplying the anticipated decrease in medical assistance
2.26residents, determined in item (i), by the existing facility's weighted average payment rate
2.27multiplied by 365;
2.28    (iii) compute the anticipated annual costs for community-based services by
2.29multiplying the anticipated decrease in medical assistance residents served by the nursing
2.30facility, determined in item (i), by the average monthly elderly waiver service costs for
2.31individuals in Steele County multiplied by 12;
2.32    (iv) subtract the amount in item (iii) from the amount in item (ii);
2.33    (v) divide the amount in item (iv) by an amount equal to the relocated nursing
2.34facility's occupancy factor under section 256B.431, subdivision 3f, paragraph (c),
2.35multiplied by the historical percentage of medical assistance resident days.
3.1    For subsequent years, the adjusted property payment rate shall be adjusted for
3.2inflation as provided in section 256B.434, subdivision 4, paragraph (c), as long as the
3.3facility has a contract under section 256B.434.
3.4    (b) Projects approved under this subdivision shall be treated in a manner equivalent
3.5to projects approved under subdivision 4a.

3.7    Subdivision 1. Asset transfer authorized. Steele County may lease, sell, or
3.8otherwise transfer to a nonprofit corporation all of the real and personal property, tangible
3.9and intangible, including contract rights, receivables, and enterprise funds, owned or
3.10used by the county for nursing home, assisted living, and related purposes and may
3.11acquire a membership interest in the nonprofit corporation. Any lease must provide for
3.12rent payable by the corporation at least sufficient to pay the principal and interest on
3.13the outstanding bonds of the county issued to finance any of the facilities. The lease
3.14may grant the corporation an option or require the corporation to purchase the facilities
3.15upon payment or redemption of the outstanding bonds. Any lease, sale, or other transfer
3.16must be on terms and conditions approved by the county board, without advertisement or
3.17public solicitation of bids.
3.18    Subd. 2. Status of transferee. The articles of incorporation or bylaws of the
3.19transferee corporation may provide that the county board has the right to appoint and
3.20remove one or more members of the governing board of the corporation and that specified
3.21actions be subject to the approval of the members. The corporation shall be a nonprofit
3.22corporation organized under Minnesota Statutes, chapter 317A, and entitled to exercise
3.23all of the powers of a nonprofit corporation under that chapter. If the county board
3.24does not have the right to appoint a majority of the governing board of the nonprofit
3.25corporation, neither Minnesota Statutes, section 465.717, nor other laws applicable to
3.26public corporations shall apply to the nonprofit corporation.
3.27    Subd. 3. Open meeting law; data practices. A nonprofit corporation created under
3.28this section is subject to the Minnesota Open Meeting Law and Minnesota Government
3.29Data Practices Act.
3.30EFFECTIVE DATE; LOCAL APPROVAL.This section is effective the day
3.31after the governing body of Steele County and its chief clerical officer timely complete
3.32compliance with Minnesota Statutes, section 645.021, subdivisions 2 and 3."
3.33Amend the title accordingly