Text: HSB00531                          Text: HSB00533
Text: HSB00500 - HSB00599               Text: HSB Index
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House Study Bill 532

Bill Text

PAG LIN
  1  1    Section 1.  Section 249H.2, subsection 1, paragraph f, Code
  1  2 Supplement 2001, is amended to read as follows:
  1  3    f.  Grants and loans are necessary to cover the
  1  4 expenditures related to the development of alternative health
  1  5 care services.  Development of these alternatives will improve
  1  6 access to and delivery of long-term care services to
  1  7 underserved individuals or in underserved areas, which will in
  1  8 turn contain or reduce the cost and improve the quality of
  1  9 health care services.
  1 10    Sec. 2.  Section 249H.5, subsection 1, Code 2001, is
  1 11 amended to read as follows:
  1 12    1.  Moneys deposited in the senior living trust fund
  1 13 created in section 249H.4 shall be used only as provided in
  1 14 appropriations from the trust fund to the department of human
  1 15 services and the department of elder affairs, and for
  1 16 purposes, including the awarding of grants and loans, as
  1 17 specified in this chapter.
  1 18    Sec. 3.  Section 249H.6, Code Supplement 2001, is amended
  1 19 to read as follows:
  1 20    249H.6  NURSING FACILITY CONVERSION AND LONG-TERM CARE
  1 21 SERVICES DEVELOPMENT GRANTS AND LOANS.
  1 22    1.  The department of human services, at the direction of
  1 23 the senior living coordinating unit, may use moneys
  1 24 appropriated to the department from the senior living trust
  1 25 fund to award grants and loans to any of the following:
  1 26    a.  A licensed nursing facility that has been an approved
  1 27 provider under the medical assistance program for the two-year
  1 28 period prior to application for the grant or loan.  The grant
  1 29 or loan awarded may be used to convert all or a portion of the
  1 30 licensed nursing facility to a certified assisted-living
  1 31 program and may be used for capital or one-time expenditures,
  1 32 including but not limited to start-up expenses, training
  1 33 expenses, and operating losses for the first year of operation
  1 34 following conversion associated with the nursing facility
  1 35 conversion.
  2  1    b.  A long-term care provider or a licensed nursing
  2  2 facility that has been an approved provider under the medical
  2  3 assistance program for the two-year period prior to
  2  4 application for the grant or loan or a provider that will meet
  2  5 applicable medical assistance provider requirements as
  2  6 specified in subsection 2, paragraph "c" or "d".  The grant or
  2  7 loan awarded may be used for capital or one-time expenditures,
  2  8 including but not limited to start-up expenses, training
  2  9 expenses, and operating losses for the first year of operation
  2 10 for long-term care service development.
  2 11    2.  A grant or loan shall be awarded only to an applicant
  2 12 who meets all of the following criteria, as applicable to the
  2 13 type of grant or loan:
  2 14    a.  The applicant is a long-term care provider or a nursing
  2 15 facility that is located in an area determined by the senior
  2 16 living coordinating unit to be underserved with respect to a
  2 17 particular long-term care alternative service, and that has
  2 18 demonstrated the ability or potential to provide quality long-
  2 19 term care alternative services.
  2 20    b.  The applicant is able to provide a minimum matching
  2 21 contribution of twenty percent of the total cost of any
  2 22 conversion, remodeling, or construction.
  2 23    c.  The applicant is applying for a nursing facility
  2 24 conversion grant or loan and is able to demonstrate all of the
  2 25 following:
  2 26    (1)  Conversion of the nursing facility or a distinct
  2 27 portion of the nursing facility to an assisted-living program
  2 28 is projected to offer efficient and economical care to
  2 29 individuals requiring long-term care services in the service
  2 30 area.
  2 31    (2)  Assisted-living services are otherwise not likely to
  2 32 be available in the area for individuals eligible for services
  2 33 under the medical assistance program.
  2 34    (3)  The resulting reduction in the availability of nursing
  2 35 facility services is not projected to cause undue hardship on
  3  1 those individuals requiring nursing facility services for a
  3  2 period of at least ten years.
  3  3    (4)  Public support following a community-based assessment.
  3  4    (5)  Conversion of the nursing facility is projected to
  3  5 result in a lower per client reimbursement cost to the grant
  3  6 or loan applicant under the medical assistance program.
  3  7    d.  The applicant is applying for a long-term care service
  3  8 development grant or loan and is able to demonstrate all of
  3  9 the following:
  3 10    (1)  Long-term care service development is projected to
  3 11 offer efficient and economical care to individuals requiring
  3 12 long-term care services in the service area.
  3 13    (2)  The proposed long-term care alternative is otherwise
  3 14 not likely to be available in the area for individuals
  3 15 eligible for services under the medical assistance program.
  3 16    (3)  Public support following a community-based assessment.
  3 17    e.  The applicant agrees to do all of the following as
  3 18 applicable to the type of grant or loan:
  3 19    (1)  Participate and maintain a minimum medical assistance
  3 20 client base participation rate of forty percent, subject to
  3 21 the demand for participation by individuals eligible for
  3 22 medical assistance.
  3 23    (2)  Provide a service delivery package that is affordable
  3 24 for those individuals eligible for services under the medical
  3 25 assistance home and community-based services waiver program.
  3 26    (3)  Provide a refund to the senior living trust fund, on
  3 27 an amortized basis, in the amount of the grant or loan, if the
  3 28 applicant or the applicant's successor in interest ceases to
  3 29 operate an affordable long-term care alternative within the
  3 30 first ten-year period of operation following the awarding of
  3 31 the grant or loan or if the applicant or the applicant's
  3 32 successor in interest fails to maintain a participation rate
  3 33 of forty percent in accordance with subparagraph (1).
  3 34    3.  The department of human services shall adopt rules in
  3 35 consultation with the senior living coordinating unit,
  4  1 pursuant to chapter 17A, to provide all of the following:
  4  2    a.  An application process and eligibility criteria for the
  4  3 awarding of grants and loans.  The eligibility criteria shall
  4  4 include but are not limited to the applicant's demonstration
  4  5 of an affordable service package, the applicant's use of the
  4  6 funds for allowable costs, and the applicant's ability to
  4  7 refund the funds if required under subsection 2, paragraph
  4  8 "e", subparagraph (3).  The primary eligibility criterion used
  4  9 shall be the applicant's potential impact on the overall goal
  4 10 of moving toward a balanced, comprehensive, affordable, high-
  4 11 quality, long-term care system.
  4 12    b.  Criteria to be utilized in determining the amount of
  4 13 the grant or loan awarded.
  4 14    c.  Weighted criteria to be utilized in prioritizing the
  4 15 awarding of grants or loans to individual grantees or
  4 16 borrowers during a grant or loan cycle.  Greater weight shall
  4 17 be given to the applicant's demonstration of potential
  4 18 reduction of nursing facility beds, the applicant's ability to
  4 19 meet demonstrated community need, and the established history
  4 20 of the applicant in providing quality long-term care services.
  4 21    d.  Policies and procedures for certification of the
  4 22 matching funds required of applicants under subsection 2,
  4 23 paragraph "b".
  4 24    e.  Other procedures the department of human services deems
  4 25 necessary for the proper administration of this section,
  4 26 including but not limited to the submission of progress
  4 27 reports on a bimonthly basis to the senior living coordinating
  4 28 unit.
  4 29    4.  The department of human services shall adopt rules to
  4 30 ensure that a nursing facility that receives a nursing
  4 31 facility conversion grant or loan allocates costs in an
  4 32 equitable manner.
  4 33    5.  In addition to the types of grants and loans described
  4 34 in subsection 1, the department of human services, at the
  4 35 direction of the senior living coordinating unit, may also use
  5  1 moneys appropriated to the department from the senior living
  5  2 trust fund to award grants or loans, of not more than one
  5  3 hundred thousand dollars per grant or loan, to licensed
  5  4 nursing facilities that are awarded nursing facility
  5  5 conversion grants or loans and agree, as part of the nursing
  5  6 facility conversion, to also provide adult day services, child
  5  7 care for children with special needs, safe shelter for victims
  5  8 of dependent adult abuse, or respite care.
  5  9    6.  The department of human services shall establish a
  5 10 calendar for receiving and evaluating applications and for
  5 11 awarding of grants and loans.
  5 12    7.  a.  The department of human services shall develop a
  5 13 cost report to be completed by a grantee or borrower which
  5 14 includes, but is not limited to, revenue, costs, loans
  5 15 undertaken by the grantee or borrower, fixed assets of the
  5 16 grantee or borrower, a balance sheet, and a profit and loss
  5 17 statement.
  5 18    b.  Grantees and borrowers shall submit, annually,
  5 19 completed cost reports to the department of human services
  5 20 regarding the project for a period of ten years following the
  5 21 date of initial operation of the grantee's or borrower's long-
  5 22 term care alternative.
  5 23    8.  The department of human services, in consultation with
  5 24 the department of elder affairs, shall provide annual reports
  5 25 to the governor and the general assembly concerning grants and
  5 26 loans awarded.  The annual report shall include the total
  5 27 number of applicants and approved applicants, an overview of
  5 28 the various grants and loans awarded, and detailed reports of
  5 29 the cost of each project funded by a grant or loan and
  5 30 information submitted by the approved applicant.
  5 31    9.  For the purpose of this section, "underserved" means
  5 32 areas in which four and four-tenths percent of the number of
  5 33 individuals sixty-five years of age and older is not greater
  5 34 than the number of currently licensed nursing facility beds
  5 35 and certified assisted-living units.  In addition, the
  6  1 department, in determining if an area is underserved, may
  6  2 consider additional information gathered through the
  6  3 department's own research or submitted by an applicant,
  6  4 including but not limited to any of the following:
  6  5    a.  Availability of and access to long-term care
  6  6 alternatives relative to individuals eligible for medical
  6  7 assistance.
  6  8    b.  The current number of seniors and persons with
  6  9 disabilities and the projected number of these individuals.
  6 10    c.  The current number of seniors and persons with
  6 11 disabilities requiring professional nursing care and the
  6 12 projected number of these individuals.
  6 13    d.  The current availability of long-term care alternatives
  6 14 and any known changes in the availability of such
  6 15 alternatives.
  6 16    10.  This section does not create an entitlement to any
  6 17 funds available for grants or loans under this section, and
  6 18 the department of human services may only award grants and
  6 19 loans to the extent funds are available and within its
  6 20 discretion, to the extent applications are approved.
  6 21    11.  In addition to any other remedies provided by law, the
  6 22 department of human services may recoup any grant or loan
  6 23 funding previously awarded and disbursed to a grantee or
  6 24 borrower or the grantee's or borrower's successor in interest
  6 25 and may reduce the amount of any grant or loan awarded, but
  6 26 not yet disbursed, to a grantee or borrower or the grantee's
  6 27 or borrower's successor in interest, by the amount of any
  6 28 refund owed by a grantee or borrower or the grantee's or
  6 29 borrower's successor in interest pursuant to subsection 2,
  6 30 paragraph "e", subparagraph (3).
  6 31    12.  The senior living coordinating unit shall review
  6 32 projects that receive grants or loans under this section to
  6 33 ensure that the goal to provide alternatives to nursing
  6 34 facility care is being met and that an adequate number of
  6 35 nursing facility services remains to meet the needs of Iowans.
  7  1    Sec. 4.  Section 249H.11, Code 2001, is amended to read as
  7  2 follows:
  7  3    249H.11  FUTURE REPEAL.
  7  4    Section 249H.6 is repealed on June 30, 2005.  However,
  7  5 grants or loans awarded and moneys appropriated for grants or
  7  6 loans on or before June 30, 2005, shall be disbursed to
  7  7 eligible applicants after that date if necessary.  
  7  8                           EXPLANATION
  7  9    This bill authorizes the awarding of loans as well as
  7 10 grants under the senior living trust fund.  Under the bill,
  7 11 loans awarded must generally meet the same criteria as grants
  7 12 awarded.  
  7 13 LSB 5313DP 79
  7 14 pf/cls/14
     

Text: HSB00531                          Text: HSB00533
Text: HSB00500 - HSB00599               Text: HSB Index
Bills and Amendments: General Index     Bill History: General Index

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