Changes to the Supplemental Nursing Services Agency Laws Passed by the 2002 Legislature

May, 2002

Information Bulletin 02-7

Changes to the Supplemental Nursing Services Agency Laws Passed by the 2002 Legislature


On April 26, 2002 Governor Ventura signed into law Chapter 287. This law makes changes in the Supplemental Nursing Services Agency (SNSA) law enacted in the 2001 Legislative Session. Attached to this bulletin is a copy of Chapter 287. It shows the changes made to the law. Words that have dashes through them have been removed from the law. New law is indicated by underlined language. Also attached is a document that combines the 2001 law and the 2002 changes.

Highlights of the Changes:

  • Supplemental nursing services agencies under common ownership with health care facilities are no longer exempt from registration as a supplemental nursing services agency.

  • As a part of the registration requirements SNSAs must provide proof of: carrying a surety bond covering employee theft and dishonesty in the amount of $10,000; worker's compensation coverage; notifying the commissioner of revenue of the bank where the SNSA deposits employee income tax withholding. If the SNSA believes it is not responsible for employee income tax withholding, they must provide the commissioner of revenue with the name and address of each employee for whom taxes are not being withheld. (MDH will contact SNSAs prior to August 1, 2002 to verify this information.)

  • The SNSA must document that each person provided to the health care facility is an employee of the SNSA and is not an independent contractor. (MDH will contact SNSAs prior to August 1, 2002 to obtain this information.)

    The Commissioner of Health is prohibited from registering an SNSA that knowingly supplies a person to a health care facility with an illegally or fraudulently obtained diploma, registration, license, certificate or background study. SNSAs who provide staff with fraudulent credentials will have their registration revoked upon 15 days notice.

  • SNSAs may request a hearing to challenge revocation of their registration.

  • An applicant for an SNSA registration who is denied an initial registration or an SNSA who is denied renewal of their registration may request a hearing.

  • The commissioner shall not issue or renew a registration to a SNSA if a controlling person includes any individual or entity who was a controlling person of a supplemental nursing services agency whose registration was not renewed or was revoked because of noncompliance within the last five years.

  • The maximum charges for SNSAs that provide services to nursing homes have been changed. The maximum charges will now include a factor to account for payroll taxes. The Department of Human Services plans to update the maximum charges for services provided to nursing homes on July 1, 2002 and every July 1 thereafter.

  • The maximum charges are to be calculated by defining wages as hourly rates of pay and shift differentials, including weekend shift differential and overtime.

  • The portion of the law revising maximum charges is effective April 9, 2002. Other portions of the law are effective August 1, 2002.

Reminder to Health Care Facilities:

It is a violation of state law to use services from an SNSA that is not registered with the Minnesota Department of Health. Beginning August 1, 2002 we will issue state licensing orders and/or federal deficiencies to health care facilities that use non-registered SNSAs. To determine if an SNSA is registered, check the following website:

Directory of Registered Supplemental Nursing Services Agencies (SNSAs)

or call MDH at (651) 201-4101 for information. We suggest that you bookmark this web address and periodically check the registration of SNSAs that you use as part of your overall quality assurance plan since the registration status of a SNSA can change.

If you have any questions regarding this Information Bulletin, please contact in writing:

Minnesota Department of Health
Health Regulation Division
Licensing and Certification Program
85 East Seventh Place, Suite 300
PO Box 64900
St. Paul, Minnesota 55164-0900
Telephone: (651) 201-4101

Friday, February 06, 2015 at 01:38PM