1.1 	A bill for an act
1.2 	relating to commerce; establishing the Minnesota Insurance Marketplace; 
1.3 	prescribing its powers and duties; establishing the right not to participate; 
1.4 	specifying open meeting requirements and data practices procedures; 
1.5 	appropriating money;amending Minnesota Statutes 2012, section 13.7191, by 
1.6 	adding a subdivision; proposing coding for new law as Minnesota Statutes, 
1.7 	chapter 62V.
1.8 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9 	Section 1. Minnesota Statutes 2012, section 13.7191, is amended by adding a 
1.10 	subdivision to read:
1.11 		Subd. 14a.Minnesota Insurance Marketplace. Classification and sharing of data 
1.12 	of the Minnesota Insurance Marketplace is governed by section 62V.06.

1.13 	Sec. 2. [62V.01] TITLE.
1.14 	This chapter may be cited as the "Minnesota Insurance Marketplace Act."

1.15 	Sec. 3. [62V.02] DEFINITIONS.
1.16 		Subdivision 1.Scope. For the purposes of this chapter, the following terms have 
1.17 	the meanings given.
1.18 		Subd. 2.Board. "Board" means the board of directors specified in section 62V.04.
1.19 		Subd. 3.Health benefit plan. "Health benefit plan" means a policy, contract, 
1.20 	certificate, or agreement defined in section 62A.011, subdivision 3, and a dental plan 
1.21 	defined in section 62Q.76, subdivision 3.
1.22 		Subd. 4.Health carrier. "Health carrier" has the meaning defined in section 
1.23 	62A.011.
2.1 		Subd. 5.Individual market. "Individual market" means the market for health 
2.2 	insurance coverage offered to individuals.
2.3 		Subd. 6.Insurance producer. "Insurance producer" has the meaning defined 
2.4 	in section 60K.31.
2.5 		Subd. 7.Minnesota Insurance Marketplace. "Minnesota Insurance Marketplace" 
2.6 	means the Minnesota Insurance Marketplace created as a state health benefit exchange 
2.7 	as described in section 1311 of the federal Patient Protection and Affordable Care Act 
2.8 	(Public Law 111-148), and further defined through amendments to the act and regulations 
2.9 	issued under the act.
2.10 		Subd. 8.Navigator. "Navigator" has the meaning described in section 1311(i) of 
2.11 	the federal Patient Protection and Affordable Care Act (Public Law 111-148), and further 
2.12 	defined through amendments to the act and regulations issued under the act.
2.13 		Subd. 9.MAGI public health care program. "MAGI public health care 
2.14 	program" means any exchange enrollment public health care program administered by 
2.15 	the commissioner of human services whereby eligibility for the program is determined 
2.16 	according to a modified adjusted gross income standard.
2.17 		Subd. 10.Small group market. "Small group market" means the market for health 
2.18 	insurance coverage offered to small employers as defined in section 62L.02, subdivision 26.

2.19 	Sec. 4. [62V.03] MINNESOTA INSURANCE MARKETPLACE; 
2.20 	ESTABLISHMENT.
2.21 		Subdivision 1.Creation. The Minnesota Insurance Marketplace is created as a 
2.22 	board under section 15.012, paragraph (a), to:
2.23 	(1) promote innovation, competition, quality, value, market participation, 
2.24 	affordability, suitable and meaningful choices, health improvement, care management, 
2.25 	and portability of health benefit plans;
2.26 	(2) facilitate and simplify the comparison, choice, enrollment, and purchase of health 
2.27 	benefit plans for individuals purchasing in the individual market through the Minnesota 
2.28 	Insurance Marketplace and for employees and employers purchasing in the small group 
2.29 	market through the Minnesota Insurance Marketplace;
2.30 	(3) assist small employers with access to small business health insurance tax credits 
2.31 	and to assist individuals with access to MAGI public health care programs, premium 
2.32 	assistance tax credits and cost-sharing reductions, and certificates of exemption from 
2.33 	individual responsibility requirements; 
3.1 	(4) facilitate the integration and transition of individuals between MAGI public 
3.2 	health care programs and health benefit plans in the individual or group market and 
3.3 	develop processes that, to the maximum extent possible, provide for continuous coverage;
3.4 	(5) establish a name for the Web-based exchange based on market studies that show 
3.5 	maximum effectiveness in attracting the uninsured and motivating them to take action; and
3.6 	(6) evaluate the effectiveness of the outreach and implementation activities of the 
3.7 	Minnesota Insurance Marketplace in reducing the rate of uninsurance in Minnesota and 
3.8 	in addressing the above responsibilities.
3.9 		Subd. 2.Application of other law. (a) The Minnesota Insurance Marketplace 
3.10 	must be reviewed by the legislative auditor under section 3.971. The legislative auditor 
3.11 	shall audit the books, accounts, and affairs of the Minnesota Insurance Marketplace 
3.12 	once each year or less frequently as the legislative auditor's funds and personnel permit. 
3.13 	Pursuant to section 3.97, subdivision 3a, the Legislative Audit Commission is requested 
3.14 	to direct the legislative auditor to report by March 1, 2014, to the legislature on any 
3.15 	duplication of services that occurs within state government as a result of the creation of the 
3.16 	Minnesota Insurance Marketplace. The legislative auditor may make recommendations on 
3.17 	consolidating or eliminating any services deemed duplicative. The board shall reimburse 
3.18 	the legislative auditor for any costs incurred in the creation of this report.
3.19 	(b) Board members of the Minnesota Insurance Marketplace are subject to section 
3.20 	10A.07. Board members and the personnel of the Minnesota Insurance Marketplace 
3.21 	are subject to section 10A.071.
3.22 	(c) All meetings of the board shall comply with the open meeting law in chapter 
3.23 	13D, except that: 
3.24 	(1) meetings, or portions of meetings, regarding compensation negotiations with the 
3.25 	director or managerial staff may be closed in the same manner and according to the same 
3.26 	procedures identified in section 13D.03;
3.27 	(2) meetings regarding contract negotiation strategy may be closed in the same 
3.28 	manner and according to the same procedures identified in section 13D.05, subdivision 3, 
3.29 	paragraph (c); and
3.30 	(3) meetings, or portions of meetings, regarding not public data described in section 
3.31 	62V.06, subdivision 2, and regarding trade secret information as defined in section 13.37, 
3.32 	subdivision 1, paragraph (b), are closed to the public, but must otherwise comply with 
3.33 	the procedures identified in chapter 13D.
3.34 	(d) The Minnesota Insurance Marketplace and provisions specified under this 
3.35 	chapter are exempt from:
3.36 	(1) chapter 14, including section 14.386 but not sections 14.48 to 14.69; and
4.1 	(2) chapters 16B and 16C, with the exception of sections 16C.08, subdivision 
4.2 	2, paragraph (b), clauses (1) to (8); 16C.086; 16C.09, paragraph (a), clauses (1) and 
4.3 	(3), paragraph (b), and paragraph (c); and section 16C.16. However, the Minnesota 
4.4 	Insurance Marketplace, in consultation with the commissioner of administration, shall 
4.5 	implement policies and procedures to establish an open and competitive procurement 
4.6 	process for the Minnesota Insurance Marketplace that, to the extent practicable, conforms 
4.7 	to the principles and procedures contained in chapters 16B and 16C. In addition, the 
4.8 	Minnesota Insurance Marketplace may enter into an agreement with the commissioner of 
4.9 	administration for other services.
4.10 		Subd. 3.Continued operation of a private marketplace. (a) Nothing in this 
4.11 	chapter shall be construed to prohibit: (1) a health carrier from offering outside of 
4.12 	the Minnesota Insurance Marketplace a health benefit plan to a qualified individual 
4.13 	or qualified employer; and (2) a qualified individual from enrolling in, or a qualified 
4.14 	employer from selecting for its employees, a health benefit plan offered outside of the 
4.15 	Minnesota Insurance Marketplace.
4.16 	(b) Nothing in this chapter shall be construed to restrict the choice of a qualified 
4.17 	individual to enroll or not enroll in a qualified health plan or to participate in the Minnesota 
4.18 	Insurance Marketplace. Nothing in this chapter shall be construed to compel an individual 
4.19 	to enroll in a qualified health plan or to participate in the Minnesota Insurance Marketplace.
4.20 	(c) For purposes of this subdivision, "qualified individual" and "qualified employer" 
4.21 	have the meanings given in section 1312 of the Affordable Care Act, Public Law 111-148, 
4.22 	and further defined through amendments to the act and regulations issued under the act.

4.23 	Sec. 5. [62V.04] GOVERNANCE.
4.24 		Subdivision 1.Board. The Minnesota Insurance Marketplace is governed by a 
4.25 	board of directors with seven members.
4.26 		Subd. 2.Appointment. (a) Board membership of the Minnesota Insurance 
4.27 	Marketplace consists of the following:
4.28 	(1) three members appointed by the governor with the advice and consent of both 
4.29 	the senate and the house of representatives acting separately in accordance with paragraph 
4.30 	(d), with one member representing the interests of individual consumers eligible for 
4.31 	individual market coverage, one member representing individual consumers eligible 
4.32 	for MAGI public health care program coverage, and one member representing small 
4.33 	employers. Members are appointed to serve four-year staggered terms following the 
4.34 	initial staggered-term lot determination;
5.1 	(2) three members appointed by the governor with the advice and consent of both the 
5.2 	senate and the house of representatives acting separately in accordance with paragraph (d) 
5.3 	who have demonstrated expertise, leadership, and innovation in the following areas: one 
5.4 	member representing the areas of health administration, health care finance, health plan 
5.5 	purchasing, and health care delivery systems; one member representing the areas of public 
5.6 	health, health disparities, MAGI public health care programs, and the uninsured; and 
5.7 	one member representing health policy issues related to the small group and individual 
5.8 	markets. Members are appointed to serve four-year staggered terms following the initial 
5.9 	staggered-term lot determination; and
5.10 	(3) the commissioner of human services or a designee.
5.11 	(b) Section 15.0597 shall apply to all appointments, except for the commissioner 
5.12 	and initial appointments.
5.13 	(c) The governor shall make appointments to the board that are consistent with 
5.14 	federal law and regulations regarding its composition and structure.
5.15 	(d) Upon appointment by the governor, a board member shall exercise duties of 
5.16 	office immediately. If both the house of representatives and the senate vote not to confirm 
5.17 	an appointment, the appointment terminates on the day following the vote not to confirm 
5.18 	in the second body to vote.
5.19 	(e) Initial appointments shall be made within 30 days of enactment.
5.20 	(f) One of the members appointed under paragraph (a), clauses (1) and (2), must have 
5.21 	experience in representing the needs of vulnerable populations and persons with disabilities.
5.22 	(g) Membership on the board must include representation from outside the 
5.23 	seven-county metropolitan area, as defined in section 473.121, subdivision 2.
5.24 		Subd. 3.Terms. (a) Board members may serve no more than two consecutive 
5.25 	terms, except for the commissioner or the commissioner's designee, who shall serve 
5.26 	until replaced by the governor.
5.27 	(b) A board member may resign at any time by giving written notice to the board.
5.28 	(c) The appointed members under subdivision 2, paragraph (a), clauses (1) and (2), 
5.29 	shall have an initial term of two, three, or four years, determined by lot by the secretary of 
5.30 	state.
5.31 		Subd. 4.Conflicts of interest. (a) Within one year prior to or at any time during 
5.32 	their appointed term, board members appointed under subdivision 2, paragraph (a), 
5.33 	clauses (1) and (2), shall not be employed by, be a member of the board of directors of, 
5.34 	or otherwise be a representative of a health carrier, institutional health care provider or 
5.35 	other entity providing health care, navigator, insurance producer, or other entity in the 
5.36 	business of selling items or services of significant value to or through the Minnesota 
6.1 	Insurance Marketplace. No member of the board may currently serve as a lobbyist, as 
6.2 	defined under section 10A.01, subdivision 21.
6.3 	(b) Directors must recuse themselves from discussion of and voting on an official 
6.4 	matter if the director has a conflict of interest. A conflict of interest means an association 
6.5 	including a financial or personal association that has the potential to bias or have the 
6.6 	appearance of biasing a director's decisions in matters related to the exchange or the 
6.7 	conduct of activities under this act.
6.8 		Subd. 5.Acting chair; first meeting; supervision. (a) The governor shall designate 
6.9 	as acting chair one of the appointees described in subdivision 2.
6.10 	(b) The board shall hold its first meeting within 60 days of enactment.
6.11 	(c) The board shall elect a chair to replace the acting chair at the first meeting.
6.12 		Subd. 6.Chair. The board shall have a chair, elected by a majority of members. 
6.13 	The chair shall serve for one year.
6.14 		Subd. 7.Officers. The members of the board shall elect officers by a majority of 
6.15 	members. The officers shall serve for one year.
6.16 		Subd. 8.Vacancies. If a vacancy occurs for a board seat that was appointed 
6.17 	by the governor, the governor shall appoint a new member within 90 days, and the 
6.18 	newly appointed member shall be subject to the same confirmation process described in 
6.19 	subdivision 2.
6.20 		Subd. 9.Removal. A board member may be removed by the board only for cause, 
6.21 	following notice, hearing, and a two-thirds vote of the board. A conflict of interest as 
6.22 	defined in subdivision 4 shall be cause for removal from the board.
6.23 		Subd. 10.Meetings. The board shall meet at least quarterly.
6.24 		Subd. 11.Quorum. A majority of the members of the board constitutes a quorum, 
6.25 	and the affirmative vote of a majority of members of the board is necessary and sufficient 
6.26 	for action taken by the board.
6.27 		Subd. 12.Compensation. Board members may be compensated according to 
6.28 	section 15.0575.
6.29 		Subd. 13.Advisory committees. (a) The board may establish, as necessary, 
6.30 	advisory committees to gather information related to the operation of the Minnesota 
6.31 	Insurance Marketplace.
6.32 	(b) Section 15.0597 shall not apply to any advisory committee established by the 
6.33 	board.

6.34 	Sec. 6. [62V.05] RESPONSIBILITIES AND POWERS OF THE MINNESOTA 
6.35 	INSURANCE MARKETPLACE.
7.1 		Subdivision 1.General. (a) The board shall operate the Minnesota Insurance 
7.2 	Marketplace according to this chapter and applicable state and federal law.
7.3 	(b) The board has the power to:
7.4 	(1) employ personnel and delegate administrative, operational, and other 
7.5 	responsibilities to the director and other personnel as deemed appropriate by the board. 
7.6 	This authority is subject to chapters 43A and 179A. The director and managerial staff of 
7.7 	the Minnesota Insurance Marketplace shall serve in the unclassified service and shall be 
7.8 	governed by a compensation plan prepared by the board, submitted to the commissioner 
7.9 	of management and budget for review and comment within 14 days of its receipt, and 
7.10 	approved by the Legislative Coordinating Commission and the legislature under section 
7.11 	3.855, except that section 15A.0815, subdivision 5, paragraph (e), shall not apply;
7.12 	(2) establish the budget of the Minnesota Insurance Marketplace;
7.13 	(3) seek and accept money, grants, loans, donations, materials, services, or 
7.14 	advertising revenue from government agencies, philanthropic organizations, and public 
7.15 	and private sources to fund the operation of the Minnesota Insurance Marketplace. No 
7.16 	revenue raising effort shall advantage any specific health benefit plan, health carrier, or 
7.17 	insurer producer active in the business of the Minnesota Insurance Marketplace;
7.18 	(4) contract for the receipt and provision of goods and services;
7.19 	(5) enter into information-sharing agreements with federal and state agencies and 
7.20 	other entities, provided the agreements include adequate protections with respect to 
7.21 	the confidentiality and integrity of the information to be shared, and comply with all 
7.22 	applicable state and federal laws, regulations, and rules, including the requirements of 
7.23 	section 62V.06; and
7.24 	(6) exercise all powers reasonably necessary to implement and administer the 
7.25 	requirements of this chapter and the Affordable Care Act, Public Law 111-148.
7.26 	(c) The board shall establish policies and procedures to gather public comment and 
7.27 	provide public notice in the State Register.
7.28 	(d) Within 180 days of enactment, the board shall establish bylaws, policies, 
7.29 	and procedures governing the operations of the Minnesota Insurance Marketplace in 
7.30 	accordance with this chapter.
7.31 	(e) If the board's policies, procedures, or other statements are rules, as defined in 
7.32 	section 14.02, subdivision 4, the following requirements apply:
7.33 	(1) the board shall publish proposed rules in the State Register;
7.34 	(2) interested parties have 30 days to comment on the proposed rules. The board 
7.35 	must consider comments it receives. After the board has considered all comments, the 
7.36 	board shall publish the final rule in the State Register;
8.1 	(3) if the adopted rules are the same as the proposed rules, the notice shall state that 
8.2 	the rules have been adopted as proposed and shall cite the prior publication. If the adopted 
8.3 	rules differ from the proposed rules, the portions of the adopted rules that differ from the 
8.4 	proposed rules shall be included in the notice of adoption, together with a citation to the 
8.5 	prior State Register that contained the notice of the proposed rules; and
8.6 	(4) rules published in the State Register before January 1, 2014, take effect upon 
8.7 	publication. Rules published in the State Register on and after January 1, 2014, take 
8.8 	effect 30 days after publication.
8.9 		Subd. 2.Operations funding. (a) Prior to January 1, 2015, the Minnesota 
8.10 	Insurance Marketplace shall retain or collect up to 3.5 percent of total premiums for 
8.11 	individual market and small group market health benefit plans sold through the Minnesota 
8.12 	Insurance Marketplace to fund cash reserves of the Minnesota Insurance Marketplace, but 
8.13 	the amount collected shall not exceed a dollar amount equal to 25 percent of the funds 
8.14 	collected under section 62E.11, subdivision 6, for calendar year 2012.
8.15 	(b) Beginning January 1, 2015, the Minnesota Insurance Marketplace shall retain or 
8.16 	collect up to 3.5 percent of premiums for individual market and small group market health 
8.17 	benefit plans sold through the Minnesota Insurance Marketplace to fund operations of the 
8.18 	Minnesota Insurance Marketplace, but the amount collected shall not exceed a dollar 
8.19 	amount equal to 50 percent of the funds collected under section 62E.11, subdivision 6, 
8.20 	for calendar year 2012.
8.21 	(c) Beginning January 1, 2016, the Minnesota Insurance Marketplace shall retain 
8.22 	or collect up to 3.5 percent of premiums for individual market and small group market 
8.23 	health benefit plans sold through the Minnesota Insurance Marketplace to fund operations 
8.24 	of the Minnesota Insurance Marketplace, but the annual growth in the amount collected or 
8.25 	retained shall not exceed the annual rate of inflation and may never exceed 100 percent of 
8.26 	the funds collected under section 62E.11, subdivision 6, for calendar year 2012.
8.27 		Subd. 3.Insurance producers. (a) The board, in consultation with the 
8.28 	commissioner of commerce, shall establish minimum standards for certifying insurance 
8.29 	producers who may sell health benefit plans through the Minnesota Insurance Marketplace. 
8.30 	Producers must complete four hours of training in order to receive certification. 
8.31 	Certification and training shall be administered by the commissioner of commerce, and the 
8.32 	training required under this section shall qualify as continuing education required under 
8.33 	chapter 60K. In order to remain certified under this subdivision, insurance producers 
8.34 	must comply with all applicable certification requirements, including the requirements 
8.35 	established under paragraphs (d) and (e). A person shall not sell, solicit, or negotiate 
9.1 	insurance for any class or classes of insurance unless the person is licensed for that line of 
9.2 	authority under sections 60K.30 to 60K.56.
9.3 	(b) Producer compensation shall be established by health carriers that provide health 
9.4 	benefit plans through the Minnesota Insurance Marketplace. Compensation to producers 
9.5 	must be equivalent for health benefit plans sold through the marketplace or outside the 
9.6 	marketplace.
9.7 	(c) Each health carrier that offers or sells health benefit plans through the Minnesota 
9.8 	Insurance Marketplace shall report in writing to the marketplace on a quarterly basis the 
9.9 	compensation and other incentives it offers or provides to its insurance producers with 
9.10 	regard to each type of health benefit plan the health carrier offers or sells both inside and 
9.11 	outside the marketplace.
9.12 	(d) An insurance producer that offers health benefits plans for the small group 
9.13 	market in the marketplace shall not discourage an employer from choosing to offer its 
9.14 	employees a defined contribution type of group health benefit plan.
9.15 	(e) Any insurance producer assisting an individual or small employer with 
9.16 	purchasing coverage through the Minnesota Insurance Marketplace must disclose, orally 
9.17 	and in writing, to the individual or small employer at the time of the first solicitation with 
9.18 	the prospective purchaser the following:
9.19 	(1) the health carriers and qualified health plans offered through the Minnesota 
9.20 	Insurance Marketplace that the producer is authorized to sell, and that the producer may 
9.21 	not be authorized to sell all the qualified health plans offered through the Minnesota 
9.22 	Insurance Marketplace;
9.23 	(2) the producer may be receiving compensation from a health carrier for enrolling 
9.24 	the individual or small employer into a particular health plan; and
9.25 	(3) information on all qualified health plans offered through the Minnesota Insurance 
9.26 	Marketplace is available through the Minnesota Insurance Marketplace Web site.
9.27 	For purposes of this paragraph, "solicitation" means any contact by a producer, or any 
9.28 	person acting on behalf of a producer made for the purpose of selling or attempting to sell 
9.29 	coverage through the Minnesota Insurance Marketplace. If the first solicitation is made by 
9.30 	telephone, the disclosures required under this paragraph need not be made in writing, but 
9.31 	the fact that disclosure has been made must be memorialized when the policy is delivered.
9.32 		Subd. 4.Navigator; in-person assisters; call center. (a) The board shall establish 
9.33 	policies and procedures for the ongoing operation of a navigator program, in-person 
9.34 	assister program, call center, and customer service provisions for the Minnesota Insurance 
9.35 	Marketplace to be implemented beginning January 1, 2015. The policies and procedures 
9.36 	must require that a person complete at least eight hours of training specific to helping 
10.1 	people obtain insurance through the exchange before working as an in-person assister or 
10.2 	before working as or on behalf of a navigator directly with people seeking insurance 
10.3 	through the exchange. 
10.4 	(b) Until the implementation of the policies and procedures described in paragraph 
10.5 	(a), the following shall be in effect:
10.6 	(1) the navigator program shall be fulfilled through section 256.962;
10.7 	(2) entities eligible to be navigators, including insurance producers, Indian tribes and 
10.8 	organizations, and counties may serve as in-person assisters;
10.9 	(3) the board shall establish requirements and compensation for the in-person 
10.10 	assister program within 30 days of enactment. Compensation for in-person assisters 
10.11 	must take into account any other compensation received by the in-person assister for 
10.12 	conducting the same or similar services; and
10.13 	(4) call center operations shall utilize existing state resources and personnel, 
10.14 	including referrals to counties for medical assistance.
10.15 	(c) The board shall establish a toll-free number for the Minnesota Insurance 
10.16 	Marketplace and may hire and contract for additional resources as deemed necessary.
10.17 	(d) In establishing training standards for the navigator program, the board must 
10.18 	ensure that all entities and individuals carrying out navigator functions have training in 
10.19 	the needs of underserved and vulnerable populations; eligibility and enrollment rules 
10.20 	and procedures; the range of available public health care programs and qualified health 
10.21 	plan options available through the Minnesota Insurance Marketplace; and privacy and 
10.22 	security standards. For calendar year 2014, the commissioner of human services shall 
10.23 	ensure that the program under section 256.962 provides application assistance for both 
10.24 	qualified health plans offered through the Minnesota Insurance Marketplace and public 
10.25 	health care programs.
10.26 		Subd. 5.Health carrier requirements; participation. (a) Beginning January 1, 
10.27 	2015, the board shall have the power to establish certification requirements for health 
10.28 	carriers and health benefit plans offered through the Minnesota Insurance Marketplace. 
10.29 	The board shall not have the power to establish certification requirements beyond existing 
10.30 	state and federal law for health benefit plans to be offered only outside the Minnesota 
10.31 	Insurance Marketplace. Any health benefit plan that meets state and federal law must be 
10.32 	allowed for sale outside the Minnesota Insurance Marketplace regardless of whether it 
10.33 	meets the board's additional certification requirements for sale through the Minnesota 
10.34 	Insurance Marketplace. 
10.35 	(b) Notwithstanding paragraph (a), the board has the power to select health carriers 
10.36 	and health benefit plans for participation in the Minnesota Insurance Marketplace from 
11.1 	the health carriers and health benefit plans that have met certification requirements and to 
11.2 	determine the requirements, standards, and criteria for selection. In the selection process, 
11.3 	the board shall seek to provide health coverage choices that offer the optimal combination 
11.4 	of choice, value, quality, and service. Selection must be determined in the best interests of 
11.5 	the individual consumers and employers and within federal requirements. The board shall 
11.6 	consistently and uniformly apply these requirements, standards, and criteria to all health 
11.7 	carriers and health benefit plans. In determining the best interests, the board shall consider:
11.8 	(1) affordability and value;
11.9 	(2) promotion of high-quality care;
11.10 	(3) promotion of prevention and wellness;
11.11 	(4) ensuring access to care;
11.12 	(5) alignment and coordination with state agency and private sector purchasing 
11.13 	strategies and payment reform efforts; and
11.14 	(6) other criteria that the board determines appropriate.
11.15 	(c) For health benefit plans offered through the Minnesota Insurance Marketplace 
11.16 	beginning January 1, 2015, health carriers must use the most current addendum for Indian 
11.17 	health care providers approved by Centers for Medicare and Medicaid Services and the 
11.18 	tribes as part of their contracts with Indian health care providers.
11.19 		Subd. 6.Appeals. (a) The board may conduct hearings, appoint hearing officers, 
11.20 	and recommend final orders related to appeals of any Minnesota Insurance Marketplace 
11.21 	determinations, except for those determinations identified in paragraph (d). An appeal 
11.22 	by a health carrier regarding a specific certification or selection determination made by 
11.23 	the Minnesota Insurance Marketplace under subdivision 5, paragraph (a) or (b), must be 
11.24 	conducted as a contested case proceeding under chapter 14, with the report or order of 
11.25 	the administrative law judge constituting the final decision in the case, subject to judicial 
11.26 	review under sections 14.63 to 14.69. For other appeals, the board shall establish hearing 
11.27 	processes which provide for a reasonable opportunity to be heard and timely resolution of 
11.28 	the appeal and which are consistent with the requirements of federal law and guidance. 
11.29 	An appealing party may be represented by legal counsel at these hearings, but this is 
11.30 	not a requirement.
11.31 	(b) The Minnesota Insurance Marketplace may establish service-level agreements 
11.32 	with state agencies to conduct hearings for appeals. Notwithstanding section 471.59, 
11.33 	subdivision 1, a state agency is authorized to enter into service-level agreements for this 
11.34 	purpose with the Minnesota Insurance Marketplace.
11.35 	(c) For proceedings under this subdivision, the Minnesota Insurance Marketplace may 
11.36 	be represented by an attorney who is an employee of the Minnesota Insurance Marketplace.
12.1 	(d) This subdivision does not apply to appeals of determinations where a state 
12.2 	agency hearing is available under section 256.045.
12.3 		Subd. 7.Agreements; consultation. (a) The board shall:
12.4 	(1) establish and maintain an agreement with the chief information officer of 
12.5 	the Office of Enterprise Technology for information technology services that ensures 
12.6 	coordination with MAGI public health care programs. The board may establish and 
12.7 	maintain agreements with the chief information officer of the Office of Enterprise 
12.8 	Technology for other information technology services, including an agreement that would 
12.9 	permit the Minnesota Insurance Marketplace to administer eligibility for additional health 
12.10 	care and public assistance programs under the authority of the commissioner of human 
12.11 	services;
12.12 	(2) establish and maintain an agreement with the commissioner of human services 
12.13 	for cost allocation and services regarding eligibility determinations and enrollment for 
12.14 	MAGI public health care programs. The board may establish and maintain an agreement 
12.15 	with the commissioner of human services for other services; 
12.16 	(3) establish and maintain an agreement with the commissioners of commerce 
12.17 	and health for services regarding enforcement of Minnesota Insurance Marketplace 
12.18 	certification requirements for health benefit plans offered through the Minnesota Insurance 
12.19 	Marketplace. The board may establish and maintain agreements with the commissioners 
12.20 	of commerce and health for other services; and
12.21 	(4) establish interagency agreements to transfer funds to other state agencies for 
12.22 	their costs related to implementing and operating the Minnesota Insurance Marketplace, 
12.23 	excluding medical assistance allocatable costs.
12.24 	(b) The board shall consult with the commissioners of commerce and health 
12.25 	regarding the operations of the Minnesota Insurance Marketplace.
12.26 	(c) The board shall consult with Indian tribes and organizations regarding the 
12.27 	operation of the Minnesota Insurance Marketplace.
12.28 	(d) The board shall establish an advisory committee consisting of representatives 
12.29 	from the health care industry, consumers, and other stakeholders to provide information 
12.30 	and advise the board on the operations of the Minnesota Insurance Marketplace.
12.31 		Subd. 8.Limitations; risk-bearing. (a) The board shall not bear insurance risk or 
12.32 	enter into any agreement with health care providers to pay claims.
12.33 	(b) Nothing in this subdivision shall prevent the Minnesota Insurance Marketplace 
12.34 	from providing insurance for its employees.

12.35 	Sec. 7. [62V.06] DATA PRACTICES.
13.1 		Subdivision 1.Applicability. The Minnesota Insurance Marketplace is a state 
13.2 	agency for purposes of the Minnesota Government Data Practices Act and is subject to all 
13.3 	provisions of chapter 13, in addition to the requirements contained in this section.
13.4 		Subd. 2.Definitions. As used in this section:
13.5 	(1) "individual" means an individual according to section 13.02, subdivision 8, but 
13.6 	does not include a vendor of services; and
13.7 	(2) "participating" means that an individual, employee, or employer is seeking, or 
13.8 	has sought an eligibility determination, enrollment processing, or premium processing 
13.9 	through the Minnesota Insurance Marketplace.
13.10 		Subd. 3.General data classifications. The following data collected, created, or 
13.11 	maintained by the Minnesota Insurance Marketplace (Marketplace) are classified as 
13.12 	private data on individuals, as defined in section 13.02, subdivision 12, or nonpublic data, 
13.13 	as defined in section 13.02, subdivision 9: 
13.14 	(1) data on any individual participating in the Marketplace;
13.15 	(2) data on any individuals participating in the Marketplace as employees of an 
13.16 	employer participating in the Marketplace; and
13.17 	(3) data on employers participating in the Marketplace.
13.18 		Subd. 4.Application and certification data. (a) Data submitted by an insurance 
13.19 	producer in an application for certification to sell a health benefit plan through the 
13.20 	Marketplace, or submitted by an applicant seeking permission or a commission to act as a 
13.21 	navigator or in-person assister, are classified as follows:
13.22 	(1) at the time the application is submitted, all data contained in the application are 
13.23 	private data, as defined in section 13.02, subdivision 12, or nonpublic data as defined in 
13.24 	section 13.02, subdivision 9, except that the name of the applicant is public; and
13.25 	(2) upon a final determination related to the application for certification by the 
13.26 	Marketplace, all data contained in the application are public, with the exception of trade 
13.27 	secret data as defined in section 13.37.
13.28 	(b) Data created or maintained by a government entity as part of the evaluation of 
13.29 	an application are protected nonpublic data, as defined in section 13.02, subdivision 13, 
13.30 	until a final determination as to certification is made and all rights of appeal have been 
13.31 	exhausted. Upon a final determination and exhaustion of all rights of appeal, these data are 
13.32 	public, with the exception of trade secret data as defined in section 13.37 and data subject 
13.33 	to attorney-client privilege or other protection as provided in section 13.393.
13.34 	(c) If an application is denied, the public data must include the criteria used by the 
13.35 	board to evaluate the application and the specific reasons for the denial, and these data 
13.36 	must be published on the Marketplace Web site.
14.1 		Subd. 5.Data sharing. (a) The Minnesota Insurance Marketplace may share or 
14.2 	disseminate data classified as private or nonpublic in subdivision 4 as follows:
14.3 	(1) to the subject of the data, as provided in section 13.04;
14.4 	(2) according to a court order;
14.5 	(3) according to a state or federal law specifically authorizing access to the data;
14.6 	(4) with other state or federal agencies, only to the extent necessary to verify the 
14.7 	identity of, determine the eligibility of, process premiums for, process enrollment of, or 
14.8 	investigate fraud related to an individual, employer, or employee participating in the 
14.9 	Marketplace, provided that the Marketplace must enter into a data-sharing agreement with 
14.10 	the agency prior to sharing data under this clause; and
14.11 	(5) with a nongovernmental person or entity, only to the extent necessary to verify 
14.12 	the identity of, determine the eligibility of, process premiums for, process enrollment 
14.13 	of, or investigate fraud related to an individual, employer, or employee participating in 
14.14 	the Marketplace, provided that the Marketplace must enter a contract with the person 
14.15 	or entity, as provided in section 13.05, subdivision 6 or 11, prior to disseminating data 
14.16 	under this clause.
14.17 	(b) The Minnesota Insurance Marketplace may share or disseminate data classified 
14.18 	as private or nonpublic in subdivision 4 as follows:
14.19 	(1) to the subject of the data, as provided in section 13.04;
14.20 	(2) according to a court order;
14.21 	(3) according to a state or federal law specifically authorizing access to the data;
14.22 	(4) with other state or federal agencies, only to the extent necessary to carry out the 
14.23 	functions of the Marketplace, provided that the Marketplace must enter into a data-sharing 
14.24 	agreement with the agency prior to sharing data under this clause; and
14.25 	(5) with a nongovernmental person or entity, only to the extent necessary to carry 
14.26 	out the functions of the Marketplace, provided that the Marketplace must enter a contract 
14.27 	with the person or entity, as provided in section 13.05, subdivision 6 or 11, prior to 
14.28 	disseminating data under this clause.
14.29 	(c) Sharing or disseminating data outside of the exchange in a manner not authorized 
14.30 	by this subdivision is prohibited. The list of authorized dissemination and sharing 
14.31 	contained in this subdivision must be included in the Tennessen warning required by 
14.32 	section 13.04, subdivision 2.
14.33 	(d) Until July 1, 2014, state agencies must share data classified as private or 
14.34 	nonpublic on individuals, employees, or employers participating in the Marketplace with 
14.35 	the Marketplace, only to the extent such data are necessary to verify the identity of, 
14.36 	determine the eligibility of, process premiums for, process enrollment of, or investigate 
15.1 	fraud related to a Marketplace participant. The agency must enter into a data-sharing 
15.2 	agreement with the Marketplace prior to sharing any data under this paragraph.
15.3 		Subd. 6.Notice and disclosures. (a) In addition to the Tennessen warning required 
15.4 	by section 13.04, subdivision 2, the Marketplace must provide any data subject asked to 
15.5 	supply private data with:
15.6 	(1) a notice of rights related to the handling of genetic information, pursuant to 
15.7 	section 13.386; and
15.8 	(2) a notice of the records retention policy of the Marketplace, detailing the length of 
15.9 	time the Marketplace will retain data on the individual and the manner in which it will 
15.10 	be destroyed upon expiration of that time.
15.11 	(b) All notices required by this subdivision, including the Tennessen warning, must 
15.12 	be provided in an electronic format suitable for downloading or printing.
15.13 		Subd. 7.Summary data. In addition to creation and disclosure of summary data 
15.14 	derived from private data on individuals, as permitted by section 13.05, subdivision 7, 
15.15 	the Marketplace may create and disclose summary data derived from data classified as 
15.16 	nonpublic under this section.
15.17 		Subd. 8.Access to data; audit trail. (a) Only individuals with explicit authorization 
15.18 	from the board may enter, update, or access not public data collected, created, or 
15.19 	maintained by the Marketplace. The ability of authorized individuals to enter, update, or 
15.20 	access data must be limited through the use of role-based access that corresponds to 
15.21 	the official duties or training level of the individual, and the statutory authorization that 
15.22 	grants access for that purpose. All queries and responses, and all actions in which data 
15.23 	are modified, accessed, or disseminated by authorized individuals, must be recorded in 
15.24 	a data audit trail. Data contained in the audit trail are public, to the extent that the data 
15.25 	are not otherwise classified by this section.
15.26 	(b) This subdivision shall not limit or affect the authority of the legislative auditor to 
15.27 	access data needed to conduct audits, evaluations, or investigations of the Marketplace 
15.28 	or the obligation of the board and Marketplace employees to comply with section 3.978, 
15.29 	subdivision 2.
15.30 		Subd. 9.Sale of data prohibited. The Marketplace may not sell any data collected, 
15.31 	created, or maintained by the Marketplace, regardless of its classification, for commercial 
15.32 	or any other purposes.

15.33 	Sec. 8. [62V.07] FUNDS.
15.34 	All funds received by the Minnesota Insurance Marketplace must be deposited in 
15.35 	a dedicated fund which may earn interest and for the fiscal year ending June 30, 2014, 
16.1 	are appropriated to the Minnesota Insurance Marketplace for the purpose for which the 
16.2 	funds were received.

16.3 	Sec. 9. [62V.08] REPORT.
16.4 	(a) The Minnesota Insurance Marketplace shall submit a report to the legislature by 
16.5 	January 15, 2015, and each January 15 thereafter, on: (1) the performance of Minnesota 
16.6 	Insurance Marketplace operations; (2) meeting the Minnesota Insurance Marketplace 
16.7 	responsibilities; and (3) an accounting of the Minnesota Insurance Marketplace budget 
16.8 	activities.
16.9 	(b) The exchange must publish the administrative and operational costs of the 
16.10 	exchange on a Web site to educate consumers on those costs. The information published 
16.11 	must include the amount of premiums and federal premium subsidies collected by the 
16.12 	exchange; the amount and source of revenue received under section 62V.05, subdivision 
16.13 	1, paragraph (b), clause (3); the amount and source of any other fees collected by the 
16.14 	exchange for purposes of supporting its operations; and any misuse of funds as identified 
16.15 	in accordance with section 3.975. The Web site must be updated at least annually.

16.16 	Sec. 10. [62V.09] EXPIRATION AND SUNSET EXCLUSION.
16.17 	Notwithstanding Minnesota Statutes, section 15.059, the Minnesota Insurance 
16.18 	Marketplace Act shall not expire. The board is not subject to review or sunsetting under 
16.19 	Minnesota Statutes, chapter 3D.

16.20 	Sec. 11. [62V.10] RIGHT NOT TO PARTICIPATE.
16.21 	Nothing in this chapter infringes on the right of a Minnesota citizen not to participate 
16.22 	in the Minnesota Insurance Marketplace.

16.23 	Sec. 12. TRANSITION OF AUTHORITY.
 16.24 	(a) Upon the effective date of this act, the commissioner of management and budget 
16.25 	shall exercise all authorities and responsibilities under Minnesota Statutes, sections 
16.26 	62V.03 and 62V.05 until the board has satisfied the requirements of Minnesota Statutes, 
16.27 	section 62V.05, subdivision 1, paragraph (d).
16.28 	(b) Upon the establishment of bylaws, policies, and procedures governing the 
16.29 	operations of the Minnesota Insurance Marketplace by the board as required under 
16.30 	Minnesota Statutes, section 62V.05, subdivision 1, paragraph (d), all personnel, assets, 
16.31 	contracts, obligations, and funds managed by the commissioner of management and 
16.32 	budget for the design and development of the Minnesota Insurance Marketplace shall be 
17.1 	transferred to the board. Existing personnel managed by the commissioner of management 
17.2 	and budget for the design and development of the Minnesota Insurance Marketplace shall 
17.3 	staff the board upon enactment.

17.4 	Sec. 13. MINNESOTA COMPREHENSIVE HEALTH ASSOCIATION.
 17.5 	The commissioner of commerce, in consultation with the board of directors of the 
17.6 	Minnesota Comprehensive Health Association, has the authority to determine the need 
17.7 	for and to implement the eventual appropriate termination of coverage provided by the 
17.8 	Minnesota Comprehensive Health Association under Minnesota Statutes, chapter 62E. 
17.9 	The phase-out of coverage shall begin no sooner than January 1, 2014.

17.10 	Sec. 14. EFFECTIVE DATE.
 17.11 	Sections 1 to 13 are effective the day following final enactment. Any actions taken 
17.12 	by any state agencies in furtherance of the design, development, and implementation of the 
17.13 	Minnesota Insurance Marketplace prior to the effective date shall be considered actions 
17.14 	taken by the Minnesota Insurance Marketplace and shall be governed by the provisions of 
17.15 	this chapter and state law. Health benefit plan coverage through the Minnesota Insurance 
17.16 	Marketplace is effective January 1, 2014.