Definitions.

(a) "Attached fixtures" has the meaning given in Minnesota Rules, part 9549.0020 , subpart 6.

(b) deleted text begin "Buildings" deleted text end new text begin "Building" new text end has the meaning given in deleted text begin Minnesota Rules, part 9549.0020 , subpart 7 deleted text end new text begin section 256R.261, subdivision 4 new text end .

(c) "Capital assets" has the meaning given in section deleted text begin 256B.421, subdivision 16 deleted text end new text begin 256R.02, subdivision 8 new text end .

(d) "Commenced construction" means that all of the following conditions were met: the final working drawings and specifications were approved by the commissioner of health; the construction contracts were let; a timely construction schedule was developed, stipulating dates for beginning, achieving various stages, and completing construction; and all zoning and building permits were applied for.

(f) "Construction" means any erection, building, alteration, reconstruction, modernization, or improvement necessary to comply with the nursing home licensure rules.

(g) "Construction project" means:

(1) a capital asset addition to, or replacement of a nursing home or certified boarding care home that results in new space or the remodeling of or renovations to existing facility space; and

(2) the remodeling or renovation of existing facility space the use of which is modified as a result of the project described in clause (1). This existing space and the project described in clause (1) must be used for the functions as designated on the construction plans on completion of the project described in clause (1) for a period of not less than 24 months.

(h) "Depreciation guidelines" deleted text begin means the most recent publication of "The Estimated Useful Lives of Depreciable Hospital Assets," issued by the American Hospital Association, 840 North Lake Shore Drive, Chicago, Illinois, 60611 deleted text end new text begin has the meaning given in section 256R.261, subdivision 11 new text end .

(i) "New licensed" or "new certified beds" means:

(1) newly constructed beds in a facility or the construction of a new facility that would increase the total number of licensed nursing home beds or certified boarding care or nursing home beds in the state; or

(2) newly licensed nursing home beds or newly certified boarding care or nursing home beds that result from remodeling of the facility that involves relocation of beds but does not result in an increase in the total number of beds, except when the project involves the upgrade of boarding care beds to nursing home beds, as defined in section 144A.073, subdivision 1 . "Remodeling" includes any of the type of conversion, renovation, replacement, or upgrading projects as defined in section 144A.073, subdivision 1 .

deleted text begin (j) "Project construction costs" means the cost of the following items that have a completion date within 12 months before or after the completion date of the project described in item (g), clause (1): deleted text end

deleted text begin (1) facility capital asset additions; deleted text end

deleted text begin (2) replacements; deleted text end

deleted text begin (3) renovations; deleted text end

deleted text begin (4) remodeling projects; deleted text end

deleted text begin (5) construction site preparation costs; deleted text end

deleted text begin (6) related soft costs; and deleted text end

deleted text begin (7) the cost of new technology implemented as part of the construction project and depreciable equipment directly identified to the project, if the construction costs for clauses (1) to (6) exceed the threshold for additions and replacements stated in section 256B.431, subdivision 16 . Technology and depreciable equipment shall be included in the project construction costs unless a written election is made by the facility, to not include it in the facility's appraised value for purposes of Minnesota Rules, part 9549.0020 , subpart 5. Debt incurred for purchase of technology and depreciable equipment shall be included as allowable debt for purposes of Minnesota Rules, part 9549.0060 , subpart 5, items A and C, unless the written election is to not include it. Any new technology and depreciable equipment included in the project construction costs that the facility elects not to include in its appraised value and allowable debt shall be treated as provided in section 256B.431, subdivision 17 , deleted text end deleted text begin paragraph (b). Written election under this paragraph must be included in the facility's request for the rate change related to the project, and this election may not be changed. deleted text end

deleted text begin (k) "Technology" means information systems or devices that make documentation, charting, and staff time more efficient or encourage and allow for care through alternative settings including, but not limited to, touch screens, monitors, hand-helds, swipe cards, motion detectors, pagers, telemedicine, medication dispensers, and equipment to monitor vital signs and self-injections, and to observe skin and other conditions. deleted text end