<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.sd20bb674-d317-4b5c-9741-bba204291369P0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.sd20bb674-d317-4b5c-9741-bba204291369C0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sd20bb674-d317-4b5c-9741-bba204291369C0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sd20bb674-d317-4b5c-9741-bba204291369C0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.sd20bb674-d317-4b5c-9741-bba204291369C0-000002 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.sd20bb674-d317-4b5c-9741-bba204291369000003 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0">    </span><a href="https://sdlegislature.gov/Rules?Rule=67:16:04:52"><span class="sd20bb674-d317-4b5c-9741-bba204291369C0-000000">67:16:04:52</span></a><span class="sd20bb674-d317-4b5c-9741-bba204291369C0-000001">.  Maximum capital cost for leased facility.</span><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0"> The maximum capital cost for leased facilities is limited to the lower of actual costs or the total capital costs per resident day established in § </span><a href="https://sdlegislature.gov/Rules?Rule=67:16:04:51"><span class="sd20bb674-d317-4b5c-9741-bba204291369C0-000002">67:16:04:51</span></a><span class="sd20bb674-d317-4b5c-9741-bba204291369C0">.</span></p><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369000003"> </span></p><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0">    The capital cost items for computing the above limit consist of rent, building insurance, building depreciation, furniture and equipment depreciation, amortization of organization and preoperating costs, capital related interest, and return on net equity. The capital cost items are allowable only if incurred and paid by the lessee. Capital costs incurred by the lessor and passed on to the lessee </span><span class="sd20bb674-d317-4b5c-9741-bba204291369C0">are not allowed</span><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0"> in any other manner than as outlined in this section. No reimbursement is allowed for additional costs related to subleases.</span></p><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369000003"> </span></p><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0">    The maximum allowed for the rental component of the capital cost items for facilities negotiating new leases and facilities renewing, assigning, selling, transferring, or otherwise changing existing leases, is limited to the lower of actual lease costs or </span><span class="sd20bb674-d317-4b5c-9741-bba204291369C0">seventy</span><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0"> percent of the average per diem cost of the capital cost for owner-managed facilities, excluding hospital-affiliated facilities.</span></p><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369000003"> </span></p><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0">    </span><span class="sd20bb674-d317-4b5c-9741-bba204291369C0-000001">Source:</span><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0"> 16 SDR 26, effective August 13, 1989; 17 SDR 50, effective October 7, 1990; 18 SDR 67, effective October 13, 1991; transferred from § </span><a href="https://sdlegislature.gov/Rules?Rule=67:16:04:08.09"><span class="sd20bb674-d317-4b5c-9741-bba204291369C0-000002">67:16:04:08.09</span></a><span class="sd20bb674-d317-4b5c-9741-bba204291369C0">, 21 SDR 8, effective July 25, 1994; 26 SDR 5, effective July 1, 1999; 26 SDR 21, effective August 24, 1999; 29 SDR 177, effective July 1, 2003; 29 SDR 177, adopted July 1, 2003, effective July 1, 2004; 35 SDR 312, effective July 6, 2009</span><span class="sd20bb674-d317-4b5c-9741-bba204291369C0">; 50 SDR 11, effective August 7, 2023</span><span class="sd20bb674-d317-4b5c-9741-bba204291369C0">.</span></p><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0">    </span><span class="sd20bb674-d317-4b5c-9741-bba204291369C0-000001">General Authority:</span><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="sd20bb674-d317-4b5c-9741-bba204291369C0-000002">28-6-1</span></a><span class="sd20bb674-d317-4b5c-9741-bba204291369C0">.</span></p><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0">    </span><span class="sd20bb674-d317-4b5c-9741-bba204291369C0-000001">Law Implemented:</span><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369C0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=28-6-1"><span class="sd20bb674-d317-4b5c-9741-bba204291369C0-000002">28-6-1</span></a><span class="sd20bb674-d317-4b5c-9741-bba204291369C0">.</span></p><p dir="ltr" class="sd20bb674-d317-4b5c-9741-bba204291369P0"><span xml:space="preserve" class="sd20bb674-d317-4b5c-9741-bba204291369000003"> </span></p></div></body></html>