1.1                          A bill for an act 
  1.2             relating to state finance; adding certain human 
  1.3             services obligations to the requirement that state 
  1.4             agencies promptly pay their bills; amending Minnesota 
  1.5             Statutes 1994, section 16A.124, subdivision 8, and by 
  1.6             adding a subdivision. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 16A.124, is 
  1.9   amended by adding a subdivision to read: 
  1.10     Subd. 4b.  [HEALTH CARE PAYMENTS.] The commissioner of 
  1.11  human services must pay or deny a valid vendor obligation for 
  1.12  health services under the medical assistance, general assistance 
  1.13  medical care, or MinnesotaCare program within 30 days after 
  1.14  receipt.  A "valid vendor obligation" means a clean claim 
  1.15  submitted directly to the commissioner by an eligible health 
  1.16  care provider for health services provided to an eligible 
  1.17  recipient.  A "clean claim" means an original paper or 
  1.18  electronic claim with correct data elements, prepared in 
  1.19  accordance with the commissioner's published specifications for 
  1.20  claim preparation, that does not require an attachment or text 
  1.21  information to pay or deny the claim.  Adjustment claims, claims 
  1.22  with attachments and text information, and claims submitted to 
  1.23  the commissioner as the secondary or tertiary payer, that have 
  1.24  been prepared in accordance with the commissioner's published 
  1.25  specifications, must be adjudicated within 90 days after receipt.
  1.26     Sec. 2.  Minnesota Statutes 1994, section 16A.124, 
  2.1   subdivision 8, is amended to read: 
  2.2      Subd. 8.  [APPLICABILITY.] Subdivisions 1 to 7 apply to all 
  2.3   agency purchases, leases, rentals, and contracts for services, 
  2.4   including construction and remodeling contracts, except for: 
  2.5      (1) purchases from or contracts for service with a public 
  2.6   utility as defined in section 216B.02 or a telephone company as 
  2.7   defined in section 237.01 that has on file with the public 
  2.8   utilities commission an approved practice regarding late fees; 
  2.9   and 
  2.10     (2) provider billings to and contracts with the 
  2.11  commissioner of human services for health care services, which 
  2.12  are subject only to subdivisions 4a and 4b.  
  2.13     Sec. 3.  [EFFECTIVE DATE.] 
  2.14     This act is effective July 1, 1996, and applies to all 
  2.15  vendor obligations existing or arising on or after that date.