1.1                          A bill for an act 
  1.2             relating to health; repealing MinnesotaCare provider 
  1.3             tax; repealing premium tax for certain health plan 
  1.4             companies; requiring pass-through of savings to 
  1.5             consumers; providing for disposition of tobacco 
  1.6             settlement money; providing for financial management 
  1.7             of MinnesotaCare; amending Minnesota Statutes 2000, 
  1.8             sections 62J.041, subdivision 1; 62Q.095, subdivision 
  1.9             6; 214.16, subdivisions 2 and 3; 270B.01, subdivision 
  1.10            8; 270B.14, subdivision 1; and 297I.15, by adding a 
  1.11            subdivision; proposing coding for new law in Minnesota 
  1.12            Statutes, chapters 16A; 62Q; and 256L; repealing 
  1.13            Minnesota Statutes 2000, sections 13.4967, subdivision 
  1.14            3; 16A.76; 62T.10; 144.1484, subdivision 2; 256L.02, 
  1.15            subdivision 3; 295.50; 295.51; 295.52; 295.53; 295.54; 
  1.16            295.55; 295.56; 295.57; 295.58; 295.582; 295.59; and 
  1.17            297I.05, subdivision 5. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19                             ARTICLE 1 
  1.20                 USE OF TOBACCO SETTLEMENT PROCEEDS 
  1.21     REPEAL OF MINNESOTACARE TAXES; ELIMINATION OF PREMIUM TAX
  1.22     Section 1.  [16A.725] [TOBACCO SETTLEMENT REVENUES.] 
  1.23     Subdivision 1.  [ONE-TIME PAYMENTS.] The commissioner shall 
  1.24  credit to the health care access fund the tobacco settlement 
  1.25  payments received by the state on January 2, 2002, and January 
  1.26  2, 2003, as a result of the settlement of the lawsuit styled as 
  1.27  State v. Philip Morris Inc., No. C1-94-8565 (Minnesota District 
  1.28  Court, Second Judicial District). 
  1.29     Subd. 2.  [ONGOING PAYMENTS.] Beginning with the payment 
  1.30  due December 31, 2000, the commissioner shall credit to the 
  1.31  health care access fund all ongoing payments due December 31 of 
  2.1   each year that are received by the state as a result of the 
  2.2   settlement of the lawsuit styled as State v. Philip Morris Inc., 
  2.3   No. C1-94-8565 (Minnesota District Court, Second Judicial 
  2.4   District). 
  2.5      <b>[EFFECTIVE DATE.]</b> This section is effective the day 
  2.6   following final enactment. 
  2.7      Sec. 2.  [62Q.671] [PASS-THROUGH OF SAVINGS TO CONSUMERS.] 
  2.8      Subdivision 1.  [REDUCED PREMIUMS.] All health plan 
  2.9   companies must pass on to consumers, in the form of reduced 
  2.10  premium rates, all savings resulting from: 
  2.11     (1) the repeal of the MinnesotaCare provider taxes imposed 
  2.12  under Minnesota Statutes 2000, section 295.52, and the resulting 
  2.13  reduction in the transfer of additional expenses generated by 
  2.14  Minnesota Statutes 2000, section 295.52, obligations to 
  2.15  third-party contracts under Minnesota Statutes 2000, section 
  2.16  295.582; and 
  2.17     (2) the repeal of the one percent premium tax for health 
  2.18  maintenance organizations, nonprofit health service plan 
  2.19  corporations, and community integrated service networks imposed 
  2.20  under Minnesota Statutes 2000, section 297I.05, subdivision 5. 
  2.21     Subd. 2.  [DOCUMENTING COMPLIANCE.] Each health plan 
  2.22  company must include with its annual renewal for certification 
  2.23  of authority or licensure documentation indicating compliance 
  2.24  with subdivision 1. 
  2.25     Subd. 3.  [ENFORCEMENT.] If the appropriate commissioner 
  2.26  finds that a health plan company has not complied with 
  2.27  subdivision 1, the commissioner may take enforcement action 
  2.28  against that health plan company.  The commissioner may, by 
  2.29  order, fine or censure the health plan company or revoke or 
  2.30  suspend the certificate of authority or license of the health 
  2.31  plan company to do business in this state if the commissioner 
  2.32  finds that the health plan company has not complied with this 
  2.33  section.  The health plan company may appeal the commissioner's 
  2.34  order through a contested case hearing in accordance with 
  2.35  chapter 14. 
  2.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
  3.1   and applies to premium rates for health plans issued or renewed 
  3.2   after that date. 
  3.3      Sec. 3.  [256L.022] [MINNESOTACARE PROGRAM FINANCIAL 
  3.4   MANAGEMENT.] 
  3.5      Subdivision 1.  [FORECASTING FUNDS.] The MinnesotaCare 
  3.6   program is not an entitlement.  The commissioner of human 
  3.7   services shall not expend more funds than the appropriations 
  3.8   made available by the legislature.  Appropriations made 
  3.9   available must include the state-appropriated funds and federal 
  3.10  funds specified for this purpose and other available funds 
  3.11  transferred from other accounts as allowed by Minnesota law.  
  3.12  Regardless of this limitation on expenditures, the total 
  3.13  projected costs of this program must be forecasted and 
  3.14  recognized in the fund balance. 
  3.15     Subd. 2.  [DETERMINATION BY COMMISSIONER.] As part of each 
  3.16  state revenue and expenditure forecast, the commissioner shall 
  3.17  make an assessment of expected MinnesotaCare program 
  3.18  expenditures for the remainder of the current biennium and for 
  3.19  the following biennium.  If the commissioner determines that 
  3.20  projected MinnesotaCare expenditures during a biennium will 
  3.21  exceed the total of:  (1) the funds projected to be available in 
  3.22  the health care access fund; and (2) projected payments from the 
  3.23  tobacco settlement required to be deposited in the health care 
  3.24  access fund under section 16A.725 for that biennium, the 
  3.25  commissioner of human services and the commissioner of finance 
  3.26  shall implement subdivision 1, effective on the first day of the 
  3.27  biennium for which the commissioner of human services makes the 
  3.28  determination. 
  3.29     Subd. 3.  [CONTINGENT APPLICABILITY.] Subdivision 1 is 
  3.30  effective only if the commissioner of human services makes a 
  3.31  determination under subdivision 2 that projected MinnesotaCare 
  3.32  program expenditures will exceed available funding during a 
  3.33  biennium.  If the commissioner makes this determination, 
  3.34  subdivision 1 is effective on the first day of the biennium for 
  3.35  which the commissioner makes the determination. 
  3.36     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001. 
  4.1      Sec. 4.  Minnesota Statutes 2000, section 297I.15, is 
  4.2   amended by adding a subdivision to read: 
  4.3      Subd. 11.  [HEALTH MAINTENANCE ORGANIZATIONS; NONPROFIT 
  4.4   HEALTH SERVICE PLAN CORPORATIONS; COMMUNITY INTEGRATED SERVICE 
  4.5   NETWORKS.] Premiums paid to health maintenance organizations, 
  4.6   nonprofit health service plan corporations, and community 
  4.7   integrated service networks are exempt from the taxes imposed 
  4.8   under this chapter. 
  4.9      <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
  4.10  and applies to tax years beginning on or after that date. 
  4.11     Sec. 5.  [REPEALER.] 
  4.12     Subdivision 1.  [MINNESOTACARE PROVIDER TAX.] Minnesota 
  4.13  Statutes 2000, sections 295.50; 295.51; 295.52; 295.53; 295.54; 
  4.14  295.55; 295.56; 295.57; 295.58; 295.582; and 295.59, are 
  4.15  repealed. 
  4.16     Subd. 2.  [FEDERAL RESERVE; FINANCIAL MANAGEMENT.] 
  4.17  Minnesota Statutes 2000, sections 16A.76; and 256L.02, 
  4.18  subdivision 3, are repealed. 
  4.19     Subd. 3.  [NONPROFIT HEALTH PLAN COMPANY PREMIUM 
  4.20  TAX.] Minnesota Statutes 2000, section 297I.05, subdivision 5, 
  4.21  is repealed. 
  4.22     <b>[EFFECTIVE DATE.]</b> This section is effective July 1, 2001, 
  4.23  and applies to taxable years beginning on or after that date. 
  4.24                             ARTICLE 2 
  4.25                         CONFORMING CHANGES 
  4.26     Section 1.  Minnesota Statutes 2000, section 62J.041, 
  4.27  subdivision 1, is amended to read: 
  4.28     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  4.29  section, the following definitions apply. 
  4.30     (b) "Health plan company" has the definition provided in 
  4.31  section 62Q.01. 
  4.32     (c) "Total expenditures" means incurred claims or 
  4.33  expenditures on health care services, administrative expenses, 
  4.34  charitable contributions, and all other payments made by health 
  4.35  plan companies out of premium revenues. 
  4.36     (d) "Net expenditures" means total expenditures minus 
  5.1   exempted taxes and assessments and payments or allocations made 
  5.2   to establish or maintain reserves.  
  5.3      (e) "Exempted taxes and assessments" means direct payments 
  5.4   for taxes to government agencies, contributions to the Minnesota 
  5.5   comprehensive health association, the medical assistance 
  5.6   provider's surcharge under section 256.9657, the MinnesotaCare 
  5.7   provider tax under Minnesota Statutes 2000, section 295.52, 
  5.8   assessments by the health coverage reinsurance association, 
  5.9   assessments by the Minnesota life and health insurance guaranty 
  5.10  association, assessments by the Minnesota risk adjustment 
  5.11  association, and any new assessments imposed by federal or state 
  5.12  law. 
  5.13     (f) "Consumer cost-sharing or subscriber liability" means 
  5.14  enrollee coinsurance, copayment, deductible payments, and 
  5.15  amounts in excess of benefit plan maximums. 
  5.16     Sec. 2.  Minnesota Statutes 2000, section 62Q.095, 
  5.17  subdivision 6, is amended to read: 
  5.18     Subd. 6.  [EXEMPTION.] A health plan company, to the extent 
  5.19  that it operates as a staff model health plan company as defined 
  5.20  in section 295.50, subdivision 12b, by employing allied 
  5.21  independent health care providers to deliver health care 
  5.22  services to enrollees, is exempt from this section.  For 
  5.23  purposes of this subdivision, "staff model health plan company" 
  5.24  means a health plan company as defined in section 62Q.01, 
  5.25  subdivision 4, that employs one or more types of health care 
  5.26  provider to deliver health care services to the health plan 
  5.27  company's enrollees. 
  5.28     Sec. 3.  Minnesota Statutes 2000, section 214.16, 
  5.29  subdivision 2, is amended to read: 
  5.30     Subd. 2.  [BOARD COOPERATION REQUIRED.] The board shall 
  5.31  assist the commissioner of health in data collection activities 
  5.32  required under Laws 1992, chapter 549, article 7, and shall 
  5.33  assist the commissioner of revenue in activities related to 
  5.34  collection of the health care provider tax required under Laws 
  5.35  1992, chapter 549, article 9.  Upon the request of the 
  5.36  commissioner or the commissioner of revenue, the board shall 
  6.1   make available names and addresses of current licensees and 
  6.2   provide other information or assistance as needed. 
  6.3      Sec. 4.  Minnesota Statutes 2000, section 214.16, 
  6.4   subdivision 3, is amended to read: 
  6.5      Subd. 3.  [GROUNDS FOR DISCIPLINARY ACTION.] The board 
  6.6   shall take disciplinary action, which may include license 
  6.7   revocation, against a regulated person for: 
  6.8      (1) intentional failure to provide the commissioner of 
  6.9   health with the data required under chapter 62J; and 
  6.10     (2) intentional failure to provide the commissioner of 
  6.11  revenue with data on gross revenue and other information 
  6.12  required for the commissioner to implement sections 295.50 to 
  6.13  295.58; 
  6.14     (3) intentional failure to pay the health care provider tax 
  6.15  required under section 295.52; and 
  6.16     (4) entering into a contract or arrangement that is 
  6.17  prohibited under sections 62J.70 to 62J.73. 
  6.18     Sec. 5.  Minnesota Statutes 2000, section 270B.01, 
  6.19  subdivision 8, is amended to read: 
  6.20     Subd. 8.  [MINNESOTA TAX LAWS.] For purposes of this 
  6.21  chapter only, unless expressly stated otherwise, "Minnesota tax 
  6.22  laws" means the taxes, refunds, and fees administered by or paid 
  6.23  to the commissioner under chapters 115B (except taxes imposed 
  6.24  under sections 115B.21 to 115B.24), 289A (except taxes imposed 
  6.25  under sections 298.01, 298.015, and 298.24), 290, 290A, 291, 
  6.26  297A, and 297H and sections 295.50 to 295.59, or any similar 
  6.27  Indian tribal tax administered by the commissioner pursuant to 
  6.28  any tax agreement between the state and the Indian tribal 
  6.29  government, and includes any laws for the assessment, 
  6.30  collection, and enforcement of those taxes, refunds, and fees. 
  6.31     Sec. 6.  Minnesota Statutes 2000, section 270B.14, 
  6.32  subdivision 1, is amended to read: 
  6.33     Subdivision 1.  [DISCLOSURE TO COMMISSIONER OF HUMAN 
  6.34  SERVICES.] (a) On the request of the commissioner of human 
  6.35  services, the commissioner shall disclose return information 
  6.36  regarding taxes imposed by chapter 290, and claims for refunds 
  7.1   under chapter 290A, to the extent provided in paragraph (b) and 
  7.2   for the purposes set forth in paragraph (c). 
  7.3      (b) Data that may be disclosed are limited to data relating 
  7.4   to the identity, whereabouts, employment, income, and property 
  7.5   of a person owing or alleged to be owing an obligation of child 
  7.6   support. 
  7.7      (c) The commissioner of human services may request data 
  7.8   only for the purposes of carrying out the child support 
  7.9   enforcement program and to assist in the location of parents who 
  7.10  have, or appear to have, deserted their children.  Data received 
  7.11  may be used only as set forth in section 256.978. 
  7.12     (d) The commissioner shall provide the records and 
  7.13  information necessary to administer the supplemental housing 
  7.14  allowance to the commissioner of human services.  
  7.15     (e) At the request of the commissioner of human services, 
  7.16  the commissioner of revenue shall electronically match the 
  7.17  social security numbers and names of participants in the 
  7.18  telephone assistance plan operated under sections 237.69 to 
  7.19  237.711, with those of property tax refund filers, and determine 
  7.20  whether each participant's household income is within the 
  7.21  eligibility standards for the telephone assistance plan. 
  7.22     (f) The commissioner may provide records and information 
  7.23  collected under Minnesota Statutes 2000, sections 295.50 to 
  7.24  295.59 to the commissioner of human services for purposes of the 
  7.25  Medicaid Voluntary Contribution and Provider-Specific Tax 
  7.26  Amendments of 1991, Public Law Number 102-234.  Upon the written 
  7.27  agreement by the United States Department of Health and Human 
  7.28  Services to maintain the confidentiality of the data, the 
  7.29  commissioner may provide records and information collected under 
  7.30  Minnesota Statutes 2000, sections 295.50 to 295.59 to the Health 
  7.31  Care Financing Administration section of the United States 
  7.32  Department of Health and Human Services for purposes of meeting 
  7.33  federal reporting requirements.  
  7.34     (g) The commissioner may provide records and information to 
  7.35  the commissioner of human services as necessary to administer 
  7.36  the early refund of refundable tax credits. 
  8.1      (h) The commissioner may disclose information to the 
  8.2   commissioner of human services necessary to verify income for 
  8.3   eligibility and premium payment under the MinnesotaCare program, 
  8.4   under section 256L.05, subdivision 2. 
  8.5      (i) The commissioner may disclose information to the 
  8.6   commissioner of human services necessary to verify whether 
  8.7   applicants or recipients for the Minnesota family investment 
  8.8   program, general assistance, food stamps, and Minnesota 
  8.9   supplemental aid program have claimed refundable tax credits 
  8.10  under chapter 290 and the property tax refund under chapter 
  8.11  290A, and the amounts of the credits. 
  8.12     Sec. 7.  [REPEALER.] 
  8.13     Minnesota Statutes 2000, sections 13.4967, subdivision 3; 
  8.14  62T.10; and 144.1484, subdivision 2, are repealed. 
  8.15     Sec. 8.  [EFFECTIVE DATE.] 
  8.16     Sections 1 to 7 are effective July 1, 2001.