1.1.................... moves to amend H.F. No. 2885 as follows:
1.2Page 2, line 15, delete "section 2, subdivision 3" and insert "subdivision 64"
1.3Page 2, delete section 2 and insert:

1.4    "Sec. 2. Minnesota Statutes 2012, section 256B.441, is amended by adding a
1.5subdivision to read:
1.6    Subd. 64. Rate adjustment for compensation-related costs. (a) Total payment
1.7rates of all nursing facilities that are reimbursed under this section or section 256B.434
1.8shall be increased effective October 1, 2014, to address compensation costs for nursing
1.9facility employees paid less than $14.00 per hour.
1.10(b) Based on the application in paragraph (d), the commissioner shall calculate
1.11the annualized compensation costs by adding the totals of clauses (1), (2), and (3). The
1.12result must be divided by the resident days from the most recently available cost report to
1.13determine a per diem amount, which must be included in the external fixed cost portion of
1.14the total payment rate under subdivision 53:
1.15(1) the sum of the difference between $9.50 and any hourly wage rate of less than
1.16$9.50, multiplied by the number of compensated hours at that wage rate;
1.17(2) the sum of items (i) to (viii):
1.18(i) for all compensated hours from $8.00 to $8.49 per hour, the number of
1.19compensated hours is multiplied by $0.13;
1.20(ii) for all compensated hours from $8.50 to $8.99 per hour, the number of
1.21compensated hours is multiplied by $0.25;
1.22(iii) for all compensated hours from $9.00 to $9.49 per hour, the number of
1.23compensated hours is multiplied by $0.38;
1.24(iv) for all compensated hours from $9.50 to $10.49 per hour, the number of
1.25compensated hours is multiplied by $0.50;
1.26(v) for all compensated hours from $10.50 to $10.99 per hour, the number of
1.27compensated hours is multiplied by $0.40;
2.1(vi) for all compensated hours from $11.00 to $11.49 per hour, the number of
2.2compensated hours is multiplied by $0.30;
2.3(vii) for all compensated hours from $11.50 to $11.99 per hour, the number of
2.4compensated hours is multiplied by $0.20; and
2.5(viii) for all compensated hours from $12.00 to $13.00 per hour, the number of
2.6compensated hours is multiplied by $0.10; and
2.7(3) the sum of the employer's share of FICA taxes, Medicare taxes, state and federal
2.8unemployment taxes, workers' compensation, pensions, and contributions to employee
2.9retirement accounts attributable to the amounts in clauses (1) and (2).
2.10(c) For the rate year beginning October 1, 2014, nursing facilities that receive
2.11approval of the application in paragraph (d) must receive a rate adjustment according to
2.12paragraph (b). The rate adjustment must be used to pay compensation costs for nursing
2.13facility employees paid less than $14.00 per hour. The rate adjustment must continue to
2.14be included in the total payment rate in subsequent years.
2.15(d) To receive a rate adjustment, nursing facilities must submit an application to the
2.16commissioner in a form and manner determined by the commissioner. The application
2.17shall include data for a period beginning with the first pay period after January 1, 2015,
2.18including at least three months of employee compensated hours by wage rate, and a
2.19spending plan that describes how the funds from the rate adjustment will be allocated
2.20for compensation to employees paid less than $14.00 per hour. The application must
2.21be submitted by December 31, 2014. The commissioner may request any additional
2.22information needed to determine the rate adjustment within three weeks of receiving
2.23a complete application. The nursing facility must provide any additional information
2.24requested by the commissioner by March 31, 2015. The commissioner may waive the
2.25deadlines in this subdivision under extraordinary circumstances.
2.26(e) For nursing facilities in which employees are represented by an exclusive
2.27bargaining representative, the commissioner shall approve the application submitted under
2.28this subdivision only upon receipt of a letter of acceptance of the spending plan in regard
2.29to members of the bargaining unit, signed by the exclusive bargaining agent and dated
2.30after May 31, 2014. Upon receipt of the letter of acceptance, the commissioner shall
2.31deem all requirements of this subdivision as having been met in regard to the members
2.32of the bargaining unit."
2.33Renumber the sections in sequence and correct the internal references
2.34Amend the title accordingly