HF 3418

as introduced - 86th Legislature (2009 - 2010) Posted on 03/08/2010 09:01am

A bill for an act
relating to Minnesota's business climate; permitting sales in this state of health
insurance permitted in another state under certain conditions; authorizing
electronic environmental assessment worksheets; modifying the definition of a
small employer under the Small Employer Health Benefits Act; reducing the
corporate franchise tax rate; amending Minnesota Statutes 2008, section 290.06,
subdivision 1; Minnesota Statutes 2009 Supplement, section 62L.02, subdivision
26; proposing coding for new law in Minnesota Statutes, chapters 16E; 62Q.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [16E.23] ELECTRONIC LICENSING; ENVIRONMENTAL
ASSESSMENT WORKSHEETS.
new text end

new text begin The statewide electronic licensing system must provide a means for responsible
governmental units to complete environmental assessment worksheets online, and must
include online templates that will assist responsible governmental units in completing
the worksheets.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2009 Supplement, section 62L.02, subdivision 26, is
amended to read:

Subd. 26.

Small employer.

(a) "Small employer" means, with respect to a calendar
year and a plan year, a person, firm, corporation, partnership, association, or other entity
actively engaged in business in Minnesota, including a political subdivision of the state,
that employed an average of no fewer than two nor more than deleted text begin 50 deleted text end new text begin 100 new text end current employees
on business days during the preceding calendar year and that employs at least two current
employees on the first day of the plan year. If an employer has only one eligible employee
who has not waived coverage, the sale of a health plan to or for that eligible employee
is not a sale to a small employer and is not subject to this chapter and may be treated as
the sale of an individual health plan. A small employer plan may be offered through a
domiciled association to self-employed individuals and small employers who are members
of the association, even if the self-employed individual or small employer has fewer than
two current employees. Entities that are treated as a single employer under subsection (b),
(c), (m), or (o) of section 414 of the federal Internal Revenue Code are considered a single
employer for purposes of determining the number of current employees. Small employer
status must be determined on an annual basis as of the renewal date of the health benefit
plan. The provisions of this chapter continue to apply to an employer who no longer meets
the requirements of this definition until the annual renewal date of the employer's health
benefit plan. If an employer was not in existence throughout the preceding calendar year,
the determination of whether the employer is a small employer is based upon the average
number of current employees that it is reasonably expected that the employer will employ
on business days in the current calendar year. For purposes of this definition, the term
employer includes any predecessor of the employer. An employer that has more than deleted text begin 50 deleted text end new text begin
100 new text end current employees but has deleted text begin 50 deleted text end new text begin 100 new text end or fewer employees, as "employee" is defined under
United States Code, title 29, section 1002(6), is a small employer under this subdivision.

(b) Where an association, as defined in section 62L.045, comprised of employers
contracts with a health carrier to provide coverage to its members who are small employers,
the association and health benefit plans it provides to small employers, are subject to
section 62L.045, with respect to small employers in the association, even though the
association also provides coverage to its members that do not qualify as small employers.

(c) If an employer has employees covered under a trust specified in a collective
bargaining agreement under the federal Labor-Management Relations Act of 1947,
United States Code, title 29, section 141, et seq., as amended, or employees whose health
coverage is determined by a collective bargaining agreement and, as a result of the
collective bargaining agreement, is purchased separately from the health plan provided
to other employees, those employees are excluded in determining whether the employer
qualifies as a small employer. Those employees are considered to be a separate small
employer if they constitute a group that would qualify as a small employer in the absence
of the employees who are not subject to the collective bargaining agreement.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2010, and applies to
coverage offered, sold, issued, or renewed on or after that date.
new text end

Sec. 3.

new text begin [62Q.022] HEALTH PLANS APPROVED IN OTHER STATES; SALE IN
MINNESOTA PERMITTED.
new text end

new text begin Subdivision 1. new text end

new text begin Sale permitted. new text end

new text begin An individual or group health plan, as defined in
section 62Q.01, subdivision 3, that meets the requirements of the laws of another state
may be offered, issued, sold, or renewed to a Minnesota resident or employer, regardless
of whether the health plan complies with the otherwise applicable requirements of this
state if it satisfies the requirements specified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Requirements and exemptions. new text end

new text begin (a) An individual or group health plan
qualifies under subdivision 1 if the commissioner of commerce or commissioner of health,
whichever is appropriate for the type of health plan company, has determined that:
new text end

new text begin (1) the entity providing the health plan is a health plan company as defined in section
62Q.01, subdivision 4, that holds a certificate of authority under chapter 60A, 62C, 62D,
62H, 62N, or 64B authorizing it to do business as a health plan company in this state,
regardless of whether the health plan company is domiciled in this state;
new text end

new text begin (2) the state insurance regulator in the health plan company's state of domicile is
accredited by the National Association of Insurance Commissioners;
new text end

new text begin (3) the health plan company is not in a condition of insolvency, as defined in section
60B.03, subdivision 15, paragraph (b);
new text end

new text begin (4) the insurance regulator in the state of domicile has reviewed and approved
the policy form proposed to be used in this state for compliance with the laws of the
domiciliary state;
new text end

new text begin (5) the health plan provides that the health plan company will comply with sections
72A.20 and 72.201, relating to regulation of trade practices and claims settlement
practices;
new text end

new text begin (6) the health plan and the health plan company comply with this state's underwriting,
premium rating bands, and minimum loss ratio requirements;
new text end

new text begin (7) the health plan will be sold through insurance producers licensed to sell health
plans in this state;
new text end

new text begin (8) the health plan company has agreed to pay, and does pay, the same taxes,
assessments, and other fees that apply to other health plan companies of the same type
doing business in this state, including assessments by the Minnesota Comprehensive
Health Association under chapter 62E and the Minnesota Life and Health Insurance
Guaranty Association under chapter 61B;
new text end

new text begin (9) the health plan complies with all applicable federal laws; and
new text end

new text begin (10) the health plan company's state of domicile is designated in rules adopted by the
Minnesota commissioner of commerce, in consultation with the commissioner of health, as
one of the top 25 states in effective regulation of health insurance products and companies
and in achieving efficient and high-quality health care outcomes for its residents.
new text end

new text begin (b) A health plan offered, issued, sold, or renewed under this section may, but is not
required to, provide coverage of: (1) specific benefits; (2) care provided by specific types
of health care providers; and (3) categories of dependents and other persons, otherwise
required to be covered under the laws of this state. If a health plan does not provide
coverages referenced in this paragraph, the health plan company must provide to the
purchaser, at the time of initial purchase and each renewal, a written disclosure of the
otherwise-required coverage that the health plan does not cover.
new text end

new text begin (c) A health plan company that qualifies under this section except that it is a
for-profit health maintenance organization, is eligible for a certificate of authority from the
commissioner of health on the same basis as nonprofit entities for purposes of providing
health plan coverage under this section, notwithstanding section 62D.03, subdivision 1,
and other provisions requiring that health maintenance organizations that do business
in this state be nonprofit entities.
new text end

new text begin (d) The commissioner of commerce or the commissioner of health, whichever has
authority over the type of health plan company involved, shall enforce compliance with
this section.
new text end

new text begin Subd. 3. new text end

new text begin Conflict of laws. new text end

new text begin In the event of any conflict between this section and
other laws of this state, this section governs.
new text end

new text begin Subd. 4. new text end

new text begin Interstate compacts. new text end

new text begin The commissioner may seek to arrange one or more
interstate compacts to facilitate the operation of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2011, and applies to
coverage offered, issued, sold, or renewed on or after that date.
new text end

Sec. 4.

Minnesota Statutes 2008, section 290.06, subdivision 1, is amended to read:

Subdivision 1.

Computation, corporations.

The franchise tax imposed upon
corporations shall be computed by applying to their taxable income the rate of deleted text begin 9.8 deleted text end new text begin 7.85 new text end
percent.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2009.
new text end