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HF 1414

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/08/2017 12:43pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/20/2017
1st Engrossment Posted on 03/08/2017

Current Version - 1st Engrossment

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A bill for an act
relating to health; requiring commissioner of human services to establish
demonstration projects for complex patient populations; establishing a fee schedule
for providers serving managed care enrollees; requiring a final report on new
payment methodologies; establishing alternative performance measures; authorizing
commissioner of health to award health information technology grants; modifying
requirements governing measures to assess health care quality and quality incentive
payments to providers; appropriating money; amending Minnesota Statutes 2016,
sections 62J.496, subdivisions 1, 2, by adding a subdivision; 62U.02, subdivisions
1, 2, 3, 4; 256B.072; 256B.0755, by adding a subdivision; 256B.69, by adding a
subdivision; Laws 2015, chapter 71, article 11, section 63.

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

ARTICLE 1

PAYMENT REFORM PILOT PROJECTS

Section 1.

Minnesota Statutes 2016, section 256B.0755, is amended by adding a subdivision
to read:


new text begin Subd. 8. new text end

new text begin Demonstration projects for complex patient populations. new text end

new text begin (a) The
commissioner of human services shall establish special demonstration projects for care
networks that serve patient populations that experience significantly poorer health, higher
risks of chronic disease, and poor quality and outcomes of care relative to the general
population due to social, cultural, and economic risk factors affecting population health and
the delivery of care. These factors include but are not limited to poverty, homelessness,
neighborhood or region of residence, mental health or substance use disorder, transportation
barriers, and racial or cultural barriers.
new text end

new text begin (b) To be eligible to be served by the pilot project, an individual must:
new text end

new text begin (1) be eligible for medical assistance under section 256B.055 or MinnesotaCare under
chapter 256L;
new text end

new text begin (2) reside in the service area of the care network;
new text end

new text begin (3) have a combination of multiple risk factors identified by the care network and
approved by the commissioner; and
new text end

new text begin (4) agree to participate in the pilot project. The commissioner may identify an individual
who is potentially eligible to be enrolled in the pilot project based on zip code or other
geographic designation, medical diagnosis, utilization history, or other factors that indicate
whether an individual would benefit from participation in the pilot project.
new text end

new text begin (c) Pilot projects may be established by care networks made up of multiple providers,
or individual providers with care coordination agreements with other providers, who can
provide integrated, coordinated services to patients. To participate in the demonstration
project, a care network:
new text end

new text begin (1) must have a patient caseload of which at least … percent of patients are enrolled in
medical assistance or MinnesotaCare, or are uninsured;
new text end

new text begin (2) serve a geographic area whose population experiences substantially poorer overall
health compared to the overall Minnesota population;
new text end

new text begin (3) have lower quality-of-care scores under some traditional quality measures due to the
economic, behavioral health, cultural and geographic factors of the patients served rather
than the clinical expertise of the providers in the care network; and
new text end

new text begin (4) serve a population whose utilization history indicates an opportunity to improve
health outcomes and reduce total cost of care through better patient engagement, coordination
of care, and the provision of specialized services to address nonclinical risk factors and
barriers to access.
new text end

new text begin (d) The commissioner shall waive or modify conditions and requirements for integrated
health partnerships under this section that may be a barrier to testing new care delivery
models that are tailored to high-risk, complex populations, as follows:
new text end

new text begin (1) quality of care and patient satisfaction standards must be risk-adjusted to reflect
economic, behavioral health, cultural, geographic, or other nonclinical risk factors of the
patients served;
new text end

new text begin (2) the commissioner shall pay a monthly care coordination fee for each enrollee that is
in addition to any other payments, gain-sharing, or health care home payments that would
otherwise be received;
new text end

new text begin (3) patient attribution to the care network shall be based on the patients who meet the
criteria identified in this section who have agreed to participate in the pilot project;
new text end

new text begin (4) requirements establishing a minimum number of persons to be eligible to participate
in the integrated health network do not apply; and
new text end

new text begin (5) the commissioner shall waive or modify other integrated health network requirements
that may discourage participation by rural, independent, community-based, and safety net
providers.
new text end

new text begin (e) The commissioner, in consultation with the commissioner of health, may authorize
care networks to test workforce models that will improve health outcomes or reduce health
care costs. The commissioner may waive enrollment, credentialing, or reimbursement
conditions or requirements for new or emerging categories of health care professionals and
may establish or modify payment methods to encourage the use of new or emerging
categories of health care professionals to improve health outcomes or reduce costs.
new text end

new text begin (f) An existing integrated health partnership operating under this section is eligible to
participate in the pilot project while continuing as an integrated health partnership, and
qualifies for the exceptions in paragraph (e). All pilot projects authorized under this
subdivision are eligible to receive the information and data that are available to integrated
health networks.
new text end

new text begin (g) The commissioners of health and human services, in consultation with care networks
and organizations with expertise in serving the patients identified in this subdivision, shall
test new methods of measuring provider performance and providing payment incentives to
improve health outcomes and reduce administrative burdens for providers and state agencies.
The new payment incentives, performance measures must:
new text end

new text begin (1) pay providers adequately for patient engagement, health improvement, and care
coordination services for high-risk, complex populations;
new text end

new text begin (2) ensure that providers use the additional payments made available under this
subdivision to reduce the total costs of health care for patients by reducing unnecessary
utilization of hospital services, emergency rooms, and high-cost specialty services and
prescription drugs; and
new text end

new text begin (3) establish payment methods and set payment amounts based in part on patient
complexity related to poverty, homelessness, mental health or substance abuse, rural isolation,
transportation barriers, and language or cultural barriers. Total payment may reflect payments
for new types of cost-effective services or health professionals, higher rates for existing
cost-effective covered services and health professionals, and special add-on payment amounts
that increase existing payment rates based on the nonclinical factors contributing to the
complexity of the patients served.
new text end

new text begin (h) A health care provider participating in a pilot project under this subdivision remains
eligible to receive any other payments authorized by federal or state law, rule, or policy,
unless the provider and commissioner have mutually agreed to an alternative payment
method intended to replace an existing payment method. This includes but is not limited to
base payment rates, add-on payments, critical access payments, disproportionate share
payments, or other special rates. The commissioner shall also require any managed care
organization under contract with the commissioner to deliver services to medical assistance
and MinnesotaCare enrollees to continue to make payments to a provider participating in
a pilot project under this section for services provided to medical assistance and
MinnesotaCare enrollees.
new text end

ARTICLE 2

ADEQUACY OF MANAGED CARE PAYMENTS

Section 1.

Minnesota Statutes 2016, section 256B.69, is amended by adding a subdivision
to read:


new text begin Subd. 36. new text end

new text begin Payment rates. new text end

new text begin The commissioner shall develop a minimum provider payment
fee schedule for managed care plans and county-based purchasing plans for use in
reimbursing health care providers for services delivered to medical assistance and
MinnesotaCare enrollees. A managed care or county-based purchasing plan must pay health
care providers at least the minimum amount specified in the fee schedule. The minimum
amount specified shall be 110 percent of the base payment amount that applies to services
provided to persons not enrolled in a managed care or county-based purchasing plan. The
base payment amount must include all applicable payment increases, add-on or supplemental
payments, disproportionate share payments, critical access payments, care coordination
payments, and gain-sharing payments, and payment amounts determined under any applicable
prospective or alternative payment method. Managed care and county-based purchasing
plans must submit documentation of compliance with this requirement to the commissioner,
in the form and manner specified by the commissioner. For purposes of this subdivision,
"health care provider" means a vendor of medical care as defined in section 256B.02,
subdivision 7.
new text end

Sec. 2.

Laws 2015, chapter 71, article 11, section 63, is amended to read:


Sec. 63. HEALTH DISPARITIES PAYMENT ENHANCEMENT.

(a) The commissioner of human services shall develop a methodology to pay a higher
payment rate for health care providers and services that takes into consideration the higher
cost, complexity, and resources needed to serve patients and populations who experience
the greatest health disparities in order to achieve the same health and quality outcomes that
are achieved for other patients and populations. In developing the methodology, the
commissioner shall take into consideration all existing payment methods and rates, including
add-on or enhanced rates paid to providers serving high concentrations of low-income
patients or populations or providing access in underserved regions or populations. The new
methodology must not result in a net decrease in total payment from all sources for those
providers who qualify for additional add-on payments or enhanced payments, including,
but not limited to, critical access dental, community clinic add-ons, federally qualified health
centers payment rates, and disproportionate share payments. The commissioner shall develop
the methodology in consultation with affected stakeholders, including communities impacted
by health disparities, using culturally appropriate methods of community engagement. The
proposed methodology must include recommendations for how the methodology could be
incorporated into payment methods used in both fee-for-service and managed care plans.

(b) The commissioner shall submit a report on the analysis and provide options for new
payment methodologies that incorporate health disparities to the chairs and ranking minority
members of the legislative committees with jurisdiction over health care policy and finance
by February 1, 2016. The scope of the report and the development work described in
paragraph (a) is limited to data currently available to the Department of Human Services;
analyses of the data for reliability and completeness; analyses of how these data relate to
health disparities, outcomes, and expenditures; and options for incorporating these data or
measures into a payment methodology.

new text begin (c) The commissioner shall submit a final report, implementation plan, and
implementation budget to the chairs and ranking minority members of the legislative
committees with jurisdiction over health care policy and finance by December 1, 2017.
new text end

ARTICLE 3

REFORMS TO PROVIDER PAYMENTS AND QUALITY STANDARDS

Section 1.

Minnesota Statutes 2016, section 62U.02, subdivision 1, is amended to read:


Subdivision 1.

Development.

(a) The commissioner of health shall develop a standardized
set of measures by which to assess the quality of health care services offered by health care
providers, including health care providers certified as health care homes under section
256B.0751. Quality measures must be based on medical evidence and be developed through
a process in which providers new text begin and consumers new text end participate. The measures shall be used for the
quality incentive payment system developed in subdivision 2 and must:

(1) include uniform definitions, measures, and forms for submission of data, to the
greatest extent possible;

(2) seek to avoid increasing the administrative burden on health care providers;

deleted text begin (3) be initially based on existing quality indicators for physician and hospital services,
which are measured and reported publicly by quality measurement organizations, including,
but not limited to, Minnesota Community Measurement and specialty societies;
deleted text end

deleted text begin (4)deleted text end new text begin (3)new text end place a priority on measures of health care outcomesnew text begin and health improvementnew text end ,
rather than process measures, wherever possible; and

deleted text begin (5)deleted text end new text begin (4)new text end incorporate measures for primary care, including new text begin health risk assessments and
new text end preventive new text begin and health improvement new text end services, coronary artery and heart disease, diabetes,
asthma, depression, and other measures as determined by the commissioner.

(b) Effective July 1, 2016, the commissioner shall stratify quality measures by race,
ethnicity, preferred language, and country of origin beginning with five measures, and
stratifying additional measures to the extent resources are available. On or after January 1,
2018, the commissioner deleted text begin may require measures to be stratified bydeleted text end new text begin shall stratify all measures
by a population health risk index factor that accounts for a combination of factors outside
the control of health care providers that affect patient health and provider performance on
quality measures. Population health risk factors to be considered in developing the index
shall include poverty, neighborhood or region of residence, homelessness, co-occurring
mental health and substance use disorders, and
new text end other sociodemographic factors that according
to reliable data are correlated with health disparities and have an impact on performance
on quality or cost indicators. New methods of stratifying data under this paragraph must be
tested and evaluated through pilot projects prior to adding them to the statewide system. In
determining whether to add additional sociodemographic factors and developing the
methodology to be used, the commissioner shall consider the reporting burden on providers
and determine whether there are alternative sources of data that could be used. The
commissioner shall ensure that categories and data collection methods are developed in
consultation with those communities impacted by health disparities using culturally
appropriate community engagement principles and methods. deleted text begin The commissioner shall
implement this paragraph in coordination with the contracting entity retained under
subdivision 4, in order to build upon the data stratification methodology that has been
developed and tested by the entity.
deleted text end Nothing in this paragraph expands or changes the
commissioner's authority to collect, analyze, or report health care data. Any data collected
to implement this paragraph must be data that is available or is authorized to be collected
under other laws. Nothing in this paragraph grants authority to the commissioner to collect
or analyze patient-level or patient-specific data of the patient characteristics identified under
this paragraph.

(c) The measures shall be reviewed at least annually by the commissioner.

Sec. 2.

Minnesota Statutes 2016, section 62U.02, subdivision 2, is amended to read:


Subd. 2.

Quality incentive payments.

(a) By July 1, 2009, the commissioner shall
develop a system of quality incentive payments under which providers are eligible for
quality-based payments that are in addition to existing payment levels, based upon a
comparison of provider performance against specified targets, and improvement over time.
The targets must be based upon and consistent with the quality measures established under
subdivision 1.

(b) To the extent possible, the payment system must adjust for variations in patient
population in order to new text begin factor out nonclinical factors that affect quality measures scores and
to
new text end reduce incentives to health care providers to avoid high-risk patients or populations,
including those with risk factors related to race, ethnicity, language, country of origin, and
sociodemographic factorsnew text begin , including those population health risk factors specified in
subdivision 1, paragraph (b)
new text end .

(c) The requirements of section 62Q.101 do not apply under this incentive payment
system.

Sec. 3.

Minnesota Statutes 2016, section 62U.02, subdivision 3, is amended to read:


Subd. 3.

Quality transparency.

(a) The commissioner shall establish standards for
measuring health outcomes, establish a system for risk adjusting quality measures, and issue
annual public reports on provider quality beginning July 1, 2010.

(b) Effective July 1, 2017, the risk adjustment system established under this subdivision
shall adjust for patient characteristics identified under subdivision 1, paragraph (b), that are
correlated with health disparities and have an impact on performance on cost and quality
measures. The risk adjustment method may consist of reporting based on new text begin one or more of
the following: adjustment of scores based on the index established under subdivision 1;
new text end an
actual-to-expected comparison that reflects the characteristics of the patient population
served by the clinic or hospitalnew text begin ; or segmentation of providers based on characteristics of
patient populations served
new text end . The commissioner shall implement this paragraph in coordination
with any contracting entity retained under subdivision 4.

(c) By January 1, 2010, physician clinics and hospitals shall submit standardized
electronic information on the outcomes and processes associated with patient care to the
commissioner or the commissioner's designee. In addition to measures of care processes
and outcomes, the report may include other measures designated by the commissioner,
including, but not limited to, care infrastructure and patient satisfaction. The commissioner
shall ensure that any quality data reporting requirements established under this subdivision
are not duplicative of new text begin quality measures or measurement methods established for the Medicare
or Medicaid programs, or duplicative of specific,
new text end publicly reporteddeleted text begin , communitywidedeleted text end quality
deleted text begin reporting activities currently under way in Minnesotadeleted text end new text begin measures available from other sourcesnew text end .
Nothing in this subdivision is intended to replace or duplicate current privately supported
activities related to quality measurement and reporting in Minnesotanew text begin that meet the conditions
and requirements of this section and rules or policies adopted by the commissioner to
implement this section
new text end .

Sec. 4.

Minnesota Statutes 2016, section 62U.02, subdivision 4, is amended to read:


Subd. 4.

Contracting.

The commissioner may contract with deleted text begin a private entity or consortium
of
deleted text end new text begin one or morenew text end private entities to complete the tasks in subdivisions 1 to 3. deleted text begin Thedeleted text end new text begin Anew text end private
entity or consortium must deleted text begin be nonprofit anddeleted text end have governance that includes representatives
from the following stakeholder groups: health care providers, including providers serving
high concentrations of patients and communities impacted by health disparities; health plan
companies; consumers, including consumers representing groups who experience health
disparities; employers or other health care purchasers; and state government. No one
stakeholder group shall have a majority of the votes on any issue or hold extraordinary
powers not granted to any other governance stakeholder.

Sec. 5.

Minnesota Statutes 2016, section 256B.072, is amended to read:


256B.072 PERFORMANCE REPORTING AND QUALITY IMPROVEMENT
SYSTEM.

new text begin Subdivision 1. new text end

new text begin Establishment and administration. new text end

(a) The commissioner of human
services shall establish a performance reporting system for health care providers who provide
health care services to public program recipients covered under chapters 256B, 256D, and
256L, reporting separately for managed care and fee-for-service recipients.

(b) The measures used for the performance reporting system for medical groups shall
include measures of care for asthma, diabetes, hypertension, and coronary artery disease
and measures of preventive care services. The measures used for the performance reporting
system for inpatient hospitals shall include measures of care for acute myocardial infarction,
heart failure, and pneumonia, and measures of care and prevention of surgical infections.
In the case of a medical group, the measures used shall be consistent with measures published
by nonprofit Minnesota or national organizations that produce and disseminate health care
quality measures or evidence-based health care guidelines. In the case of inpatient hospital
measures, the commissioner shall appoint the Minnesota Hospital Association and Stratis
Health to advise on the development of the performance measures to be used for hospital
reporting. To enable a consistent measurement process across the community, the
commissioner may use measures of care provided for patients in addition to those identified
in paragraph (a). The commissioner shall ensure collaboration with other health care reporting
organizations so that the measures described in this section are consistent with those reported
by those organizations and used by other purchasers in Minnesota.

(c) The commissioner may require providers to submit information in a required format
to a health care reporting organization or to cooperate with the information collection
procedures of that organization. The commissioner may collaborate with a reporting
organization to collect information reported and to prevent duplication of reporting.

(d) By October 1, 2007, and annually thereafter, the commissioner shall report through
a public Web site the results by medical groups and hospitals, where possible, of the measures
under this section, and shall compare the results by medical groups and hospitals for patients
enrolled in public programs to patients enrolled in private health plans. To achieve this
reporting, the commissioner may collaborate with a health care reporting organization that
operates a Web site suitable for this purpose.

(e) Performance measures must be stratified as provided under section 62U.02,
subdivision 1, paragraph (b), and risk-adjusted as specified in section 62U.02, subdivision
3, paragraph (b).

new text begin Subd. 2. new text end

new text begin Alternative performance measures. new text end

new text begin (a) The commissioner shall develop
alternative performance measures for providers who primarily serve patients who:
new text end

new text begin (1) are uninsured or enrolled in Minnesota health care programs; and
new text end

new text begin (2) display socioeconomic characteristics associated with poor health outcomes.
new text end

new text begin The commissioner, beginning July 1, 2018, shall give providers the option to have their
performance measured using these alternative measures. The commissioner shall develop
and use alternative measures for all provider performance reporting initiatives administered
by the commissioner, including but not limited to those initiatives required by this section.
new text end

new text begin (b) Alternative performance measures:
new text end

new text begin (1) must account for nonclinical patient characteristics that are correlated with health
disparities and have an impact on provider performance on standardized statewide cost and
quality measures;
new text end

new text begin (2) may include new measures appropriate to the patient population served, standardized
statewide measures that have been adjusted or modified to account for sociodemographic
factors, or a combination of both types of measures; and
new text end

new text begin (3) must include one or more measures of provider initiatives to improve the health of
patients and prevent future chronic disease, in addition to measures related to the quality
of care.
new text end

new text begin (c) The alternative measures must be developed and used for all:
new text end

new text begin (1) public reporting of provider performance;
new text end

new text begin (2) provider quality measurement and payment rate determinations under fee-for-service,
managed care, and county-based purchasing; and
new text end

new text begin (3) provider quality measurement and payment rate determinations under value-based
purchasing and care coordination arrangements, including but not limited to those initiatives
operating under sections 256B.0751, 256B.0753, 256B.0755, 256B.0756, and 256B.0757.
new text end

new text begin (d) The commissioner shall establish eligibility criteria for providers to participate in
the alternative performance measurement system, and a process for providers to voluntarily
opt in. The commissioner may require providers to submit any additional information
necessary to determine eligibility for the alternative performance measurement system and
to measure provider performance using the alternative measures.
new text end

ARTICLE 4

HEALTH INFORMATION TECHNOLOGY GRANTS

Section 1.

Minnesota Statutes 2016, section 62J.496, subdivision 1, is amended to read:


Subdivision 1.

Account establishment.

(a) An account is established to:

(1) finance the purchase of certified electronic health records or qualified electronic
health records as defined in section 62J.495, subdivision 1a;

(2) enhance the utilization of electronic health record technology, which may include
costs associated with upgrading the technology to meet the criteria necessary to be a certified
electronic health record or a qualified electronic health record;

(3) train personnel in the use of electronic health record technology; deleted text begin and
deleted text end

(4) improve the secure electronic exchange of health informationnew text begin ; and
new text end

new text begin (5) improve the use of health information technology and data analytics to support new
health care delivery models and payment models designed to improve health outcomes and
reduce the total cost of care
new text end .

(b) Amounts deposited in the account, including any grant funds obtained through federal
or other sources, loan repayments, and interest earned on the amounts shall be used only
for awarding loans or loan guarantees, as a source of reserve and security for leveraged
loans, for activities authorized in section 62J.495, deleted text begin subdivisiondeleted text end new text begin subdivisionsnew text end 4new text begin and 5new text end , or for
the administration of the account.

(c) The commissioner may accept contributions to the account from private sector entities
subject to the following provisions:

(1) the contributing entity may not specify the recipient or recipients of any loan issued
under this subdivision;

(2) the commissioner shall make public the identity of any private contributor to the
loan new text begin and grant new text end fund, as well as the amount of the contribution provided;

(3) the commissioner may issue letters of commendation or make other awards that have
no financial value to any such entity; and

(4) a contributing entity may not specify that the recipient or recipients of any loan use
specific products or services, nor may the contributing entity imply that a contribution is
an endorsement of any specific product or service.

(d) The commissioner may use the loan funds to reimburse private sector entities for
any contribution made to the loan new text begin and grant new text end fund. Reimbursement to private entities may
not exceed the principle amount contributed to the loan new text begin and grant new text end fund.

(e) The commissioner may use funds deposited in the account to guarantee, or purchase
insurance for, a local obligation if the guarantee or purchase would improve credit market
access or reduce the interest rate applicable to the obligation involved.

(f) The commissioner may use funds deposited in the account as a source of revenue or
security for the payment of principal and interest on revenue or general obligation bonds
issued by the state if the proceeds of the sale of the bonds will be deposited into the loan
new text begin and grant new text end fund.

(g) The commissioner shall not award new loans or loan guarantees after July 1, 2016.

Sec. 2.

Minnesota Statutes 2016, section 62J.496, subdivision 2, is amended to read:


Subd. 2.

Eligibility.

(a) "Eligible borrower" new text begin or "eligible grantee" new text end means one of the
following:

(1) federally qualified health centers;

(2) community clinics, as defined under section 145.9268;

(3) nonprofit or local unit of government hospitals licensed under sections 144.50 to
144.56;

(4) individual or small group physician practices that are focused primarily on primary
care;

(5) nursing facilities licensed under sections 144A.01 to 144A.27;

(6) local public health departments as defined in chapter 145A; deleted text begin and
deleted text end

new text begin (7) community-based mental health, substance use disorder, or dental providers who are
not part of a large health system, large health care corporation, or large group practice; and
new text end

deleted text begin (7)deleted text end new text begin (8)new text end other providers of health or health care services approved by the commissioner
for which interoperable electronic health record capability would improve quality of care,
patient safety, or community health.

(b) The commissioner shall administer the loan new text begin and grant new text end fund to prioritize support and
assistance to:

(1) critical access hospitals;

(2) federally qualified health centers;

(3) new text begin community-based new text end entities that serve new text begin a high proportion of new text end uninsured, underinsured,
and medically underserved individuals, regardless of whether such area is urban or rural;

(4) individual or small group practices that are primarily focused on primary carenew text begin and
serve a high proportion of patients who are low income and uninsured, underinsured, or
enrolled in medical assistance or MinnesotaCare
new text end ;

(5) nursing facilities certified to participate in the medical assistance program; and

(6) providers enrolled in the elderly waiver program of customized living or 24-hour
customized living of the medical assistance program, if at least half of their annual operating
revenue is paid under the medical assistance program.

(c) An eligible applicant must submit a loan application to the commissioner of health
on forms prescribed by the commissioner. The application must include, at a minimum:

(1) the amount of the loan requested and a description of the purpose or project for which
the loan proceeds will be used;

(2) a quote from a vendor;

(3) a description of the health care entities and other groups participating in the project;

(4) evidence of financial stability and a demonstrated ability to repay the loan; and

(5) a description of how the system to be financed interoperates or plans in the future
to interoperate with other health care entities and provider groups located in the same
geographical area;

(6) a plan on how the certified electronic health record technology will be maintained
and supported over time; and

(7) any other requirements for applications included or developed pursuant to section
3014 of the HITECH Act.

Sec. 3.

Minnesota Statutes 2016, section 62J.496, is amended by adding a subdivision to
read:


new text begin Subd. 5. new text end

new text begin Technology grants. new text end

new text begin In addition to administering the loan program under this
section, the commissioner shall award grants to eligible grantees according to the priorities
in subdivision 2, paragraph (b). Grants must be awarded from money appropriated to the
commissioner for purposes of this section or from money obtained from other sources as
authorized under subdivision 1. Grant funds must be used for the purposes specified in
subdivision 1.
new text end