1.1 	A bill for an act
1.2 	relating to insurance; modifying certain regulations to reduce the incidence 
1.3 	of insurance fraud; providing an administrative penalty for insurance fraud; 
1.4 	creating a process for deauthorization of the right of health care providers to 
1.5 	receive certain payments under chapter 65B; limiting reimbursement for certain 
1.6 	prescription drugs; regulating batch billing; modifying certain economic benefits 
1.7 	under chapter 65B; establishing a task force on motor vehicle insurance coverage 
1.8 	verification; amending Minnesota Statutes 2012, sections 13.7191, subdivision 
1.9 	16; 13.82, subdivision 6; 60A.952, subdivision 3; 65B.44, subdivisions 2, 3, 4, 
1.10 	6, by adding a subdivision; 72A.502, subdivision 2; proposing coding for new 
1.11 	law in Minnesota Statutes, chapters 45; 65A; repealing Minnesota Statutes 2012, 
1.12 	section 72A.327.
1.13 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.14 	Section 1. Minnesota Statutes 2012, section 13.7191, subdivision 16, is amended to read:
1.15 		Subd. 16.Regulation of trade practices; insurance contract data. (a) Insurance 
1.16 	contract data. Certain insurance contract data held by the commissioner of commerce are 
1.17 	classified under section 72A.20, subdivision 15.
1.18 	(b) Health claims appeals. Documents that are part of an appeal from denial of 
1.19 	health care coverage for experimental treatment are classified under section 72A.327.

1.20 	Sec. 2. Minnesota Statutes 2012, section 13.82, subdivision 6, is amended to read:
1.21 		Subd. 6.Response or incident data. (a) Subject to paragraph (b), the following data 
1.22 	created or collected by law enforcement agencies which document the agency's response to 
1.23 	a request for service including, but not limited to, responses to traffic accidents, or which 
1.24 	describe actions taken by the agency on its own initiative shall be public government data:
1.25 	(a) (1) date, time and place of the action;
2.1 	(b) (2) agencies, units of agencies and individual agency personnel participating in the 
2.2 	action unless the identities of agency personnel qualify for protection under subdivision 17;
2.3 	(c) (3) any resistance encountered by the agency;
2.4 	(d) (4) any pursuit engaged in by the agency;
2.5 	(e) (5) whether any weapons were used by the agency or other individuals;
2.6 	(f) (6) a brief factual reconstruction of events associated with the action;
2.7 	(g) (7) names and addresses of witnesses to the agency action or the incident unless 
2.8 	the identity of any witness qualifies for protection under subdivision 17;
2.9 	(h) (8) names and addresses of any victims or casualties unless the identities of those 
2.10 	individuals qualify for protection under subdivision 17;
2.11 	(i) (9) the name and location of the health care facility to which victims or casualties 
2.12 	were taken;
2.13 	(j) (10) response or incident report number;
2.14 	(k) (11) dates of birth of the parties involved in a traffic accident;
2.15 	(l) (12) whether the parties involved were wearing seat belts; and
2.16 	(m) (13) the alcohol concentration of each driver.
2.17 	(b) Response or incident data under paragraph (a) that are contained in a traffic 
2.18 	accident report filed under section 169.09 are not public data until 90 days after the 
2.19 	accident report is filed with the commissioner of public safety.

2.20 	Sec. 3. [45.0137] LICENSING AUTHORITY PENALTIES.
2.21 		Subdivision 1.Definitions. (a) As used in this section, the following terms have 
2.22 	the meaning given.
2.23 	(b) "Appropriate licensing authority" means the state agency responsible for 
2.24 	licensing and discipline of a provider.
2.25 	(c) "Commissioner" means the commissioner of commerce.
2.26 	(d) "Medical services" means those services eligible for reimbursement under 
2.27 	section 65B.44, subdivision 2.
2.28 	(e) "Provider of medical services" or "provider" means a person or entity that has 
2.29 	provided medical services.
2.30 		Subd. 2.Authority to impose penalties. An appropriate licensing authority upon 
2.31 	finding, after investigation as provided in subdivision 5, or referral by the commissioner, 
2.32 	that the provider engaged in activities set forth in subdivision 4 may, by order:
2.33 	(1) remove authorization for a provider of medical services to demand or request 
2.34 	payment under chapter 65B for medical services;
3.1 	(2) impose an administrative penalty against a provider of medical services not 
3.2 	exceeding $25,000 per incident and not more than double the economic benefit derived 
3.3 	by the provider of medical services in engaging in the prohibited activities set forth in 
3.4 	subdivision 4; or
3.5 	(3) order restitution by the provider of medical services of any proceeds received 
3.6 	by the provider of medical services in engaging in the prohibited activities set forth in 
3.7 	subdivision 4.
3.8 		Subd. 3.Factors to consider in imposing penalties. (a) In determining the 
3.9 	penalties imposed under subdivision 2, the licensing authority must consider:
3.10 	(1) the nature, circumstances, extent, gravity, and number of violations;
3.11 	(2) the degree of culpability of the violator;
3.12 	(3) prior offenses and repeated violations of the violator; and
3.13 	(4) any other matter that the licensing authority considers appropriate and relevant.
3.14 	(b) If an administrative penalty is not paid after all rights of appeal have been waived 
3.15 	or exhausted, the licensing authority may bring a civil action in a court of competent 
3.16 	jurisdiction to collect the administrative penalty, including expenses and litigation costs, 
3.17 	reasonable attorney fees, and interest.
3.18 	(c) This section does not affect the right to take any independent action to seek 
3.19 	recovery against a person who violates this section.
3.20 		Subd. 4. Prohibited activities.  A provider is subject to the penalties set forth 
3.21 	in subdivision 2 if the provider: 
3.22 	(1) has been guilty of professional or other misconduct or incompetency in 
3.23 	connection with medical services rendered;
3.24 	(2) has exceeded the limits of professional competence in providing medical services 
3.25 	or has knowingly made a false statement or representation as to a material fact in any 
3.26 	report made in connection with any claim under chapter 65B;
3.27 	(3) has violated section 65B.54, subdivision 6;
3.28 	(4) has refused to appear before, or to answer upon request of, the commissioner 
3.29 	or duly authorized officer of an appropriate licensing authority, any legal question, or 
3.30 	to produce any relevant information concerning conduct in connection with providing 
3.31 	medical services;
3.32 	(5) has engaged in patterns of billing for medical services that were not provided; or
3.33 	(6) has engaged in conduct which has resulted in the provider being placed on the 
3.34 	United States Department of Health and Human Services, Office of the Inspector General, 
3.35 	List of Excluded Individuals and Entities.
4.1 		Subd. 5.Investigation. (a) An appropriate licensing authority may investigate any 
4.2 	reports, allegations, or other information in its possession regarding providers engaging in 
4.3 	any of the unlawful activities set forth in subdivision 4.
4.4 	(b) The commissioner may also investigate any reports made under section 45.0135, 
4.5 	or other information in the commissioner's possession, regarding providers of medical 
4.6 	services engaging in any of the unlawful activities set forth in subdivision 4. After 
4.7 	conducting an investigation, the commissioner may refer to the appropriate licensing 
4.8 	authority a list of any providers who the commissioner believes may have engaged in any 
4.9 	of the unlawful activities set forth in subdivision 4 together with a description of the 
4.10 	grounds for inclusion on the list. Within 60 days of receipt of the list, the appropriate 
4.11 	licensing authority must notify the commissioner in writing of any action taken with 
4.12 	respect to the provider, including whether an order was made under subdivision 2. The 
4.13 	appropriate licensing authority must post on the appropriate licensing authority's Web site 
4.14 	a list of providers for which an order was issued under subdivision 2.
4.15 	(c) Hearings under this section must be conducted in accordance with chapter 14 and 
4.16 	any other applicable law.
4.17 		Subd. 6.Not compensable. If a provider renders medical services to an insured 
4.18 	notwithstanding issuance of an order under subdivision 2 those medical services are not 
4.19 	compensable and may not be billed to the insured.

4.20 	Sec. 4. Minnesota Statutes 2012, section 60A.952, subdivision 3, is amended to read:
4.21 		Subd. 3.Immunity from liability. If insurers, insurance support organizations 
4.22 	as defined in section 72A.491, subdivision 12, agents acting on the insurers' behalf, or 
4.23 	authorized persons release information in good faith under this section, whether orally 
4.24 	or in writing, they are immune from any liability, civil or criminal, for the release or 
4.25 	reporting of the information.

4.26 	Sec. 5. [65A.285] SURCHARGE PROHIBITION.
4.27 		Subdivision 1.Surcharge prohibition. An insurer may not impose a surcharge on 
4.28 	homeowners insurance solely as a result of a consumer inquiry.
4.29 		Subd. 2.Definitions. For purposes of this section:
4.30 	(1) "consumer inquiry" means a telephone call or other communication made to an 
4.31 	insurer that does not result in a paid claim and that is in regard to the general terms or 
4.32 	conditions of or coverage offered under an insurance policy. The term includes a question 
4.33 	concerning the process for filing a claim and whether a policy will cover a loss; and
5.1 	(2) "surcharge" means an increase in premium for a policy, including the removal 
5.2 	of a claim-free discount.

5.3 	Sec. 6. Minnesota Statutes 2012, section 65B.44, subdivision 2, is amended to read:
5.4 		Subd. 2.Medical expense benefits. (a) Medical expense benefits shall reimburse 
5.5 	all reasonable expenses for necessary:
5.6 	(1) medical, surgical, x-ray, optical, dental, chiropractic, and rehabilitative services, 
5.7 	including prosthetic devices;
5.8 	(2) prescription drugs, provided that:
5.9 	(i) prescription drugs filled and dispensed outside of a licensed pharmacy  shall be 
5.10 	billed at the average wholesale price (AWP), or its equivalent, for that drug on that date 
5.11 	as published in Medispan, Redbook, or Gold Standard Drug Database, as identified by 
5.12 	its National Drug Code, plus a dispensing fee of $4.18;
5.13 	(ii) if a prescription drug has been repackaged, the average wholesale price used 
5.14 	to determine the maximum reimbursement shall be the average wholesale price for 
5.15 	the underlying drug product, as identified by its National Drug Code from the original 
5.16 	labeler; and
5.17 	(iii) compound drugs shall be billed by listing each drug and its National Drug Code 
5.18 	number included in the compound and calculating the charge for each drug separately. 
5.19 	Reimbursement shall be based on the sum of the fee for each ingredient for which 
5.20 	there is an assigned National Drug Code number plus a single dispensing fee of $4.18. 
5.21 	Compound drugs shall not be dispensed without first obtaining preauthorization from the 
5.22 	reparation obligor;
5.23 	(3) ambulance and all other transportation expenses incurred in traveling to receive 
5.24 	other covered medical expense benefits;
5.25 	(4) sign interpreting and language translation services, other than such services 
5.26 	provided by a family member of the patient, related to the receipt of medical, surgical, 
5.27 	x-ray, optical, dental, chiropractic, hospital, extended care, nursing, and rehabilitative 
5.28 	services; and
5.29 	(5) hospital, extended care, and nursing services.
5.30 	(b) Hospital room and board benefits may be limited, except for intensive care 
5.31 	facilities, to the regular daily semiprivate room rates customarily charged by the institution 
5.32 	in which the recipient of benefits is confined.
5.33 	(c) Such benefits shall also include necessary remedial treatment and services 
5.34 	recognized and permitted under the laws of this state for an injured person who relies 
6.1 	upon spiritual means through prayer alone for healing in accordance with that person's 
6.2 	religious beliefs.
6.3 	(d) Medical expense loss includes medical expenses accrued prior to the death of a 
6.4 	person notwithstanding the fact that benefits are paid or payable to the decedent's survivors.
6.5 	(e) Medical expense benefits for rehabilitative services shall be subject to the 
6.6 	provisions of section 65B.45.

6.7 	Sec. 7. Minnesota Statutes 2012, section 65B.44, is amended by adding a subdivision 
6.8 	to read:
6.9 		Subd. 2a.Billing. (a) Providers of goods and services for which a medical expense 
6.10 	benefit claim is submitted shall notify the appropriate reparation obligor of the date the 
6.11 	services were commenced or the goods were first provided within 30 days of determining 
6.12 	the identity of the reparation obligor, but in any event not later than 90 days from the date 
6.13 	services were commenced or goods were first provided. Once the reparation obligor 
6.14 	has been established, all bills must be submitted to the reparation obligor not later than 
6.15 	60 days from the date of service.
6.16 	(b) If the provider of goods and services for which a medical expense benefit claim 
6.17 	is submitted fails to submit a bill and supporting documentation to a reparation obligor as 
6.18 	required in this subdivision, the medical expenses shall not be compensable.

6.19 	Sec. 8. Minnesota Statutes 2012, section 65B.44, subdivision 3, is amended to read:
6.20 		Subd. 3.Disability and income loss benefits. (a) Disability and income loss 
6.21 	benefits shall provide compensation for 85 percent of the injured person's loss of present 
6.22 	and future gross income from inability to work proximately caused by the nonfatal 
6.23 	injury subject to a maximum of $250 $500 per week. Loss of income includes the costs 
6.24 	incurred by a self-employed person to hire substitute employees to perform tasks which 
6.25 	are necessary to maintain the income of the injured person, which are normally performed 
6.26 	by the injured person, and which cannot be performed because of the injury.
6.27 	(b) If the injured person is unemployed at the time of injury and is receiving or is 
6.28 	eligible to receive unemployment benefits under chapter 268, but the injured person loses 
6.29 	eligibility for those benefits because of inability to work caused by the injury, disability 
6.30 	and income loss benefits shall provide compensation for the lost benefits in an amount 
6.31 	equal to the unemployment benefits which otherwise would have been payable, subject to 
6.32 	a maximum of $250 $500 per week.
6.33 	(c) Compensation under this subdivision shall be reduced by any income from 
6.34 	substitute work actually performed by the injured person or by income the injured person 
7.1 	would have earned in available appropriate substitute work which the injured person was 
7.2 	capable of performing but unreasonably failed to undertake.
7.3 	(d) For the purposes of this section "inability to work" means disability which 
7.4 	prevents the injured person from engaging in any substantial gainful occupation or 
7.5 	employment on a regular basis, for wage or profit, for which the injured person is or may 
7.6 	by training become reasonably qualified. If the injured person returns to employment and 
7.7 	is unable by reason of the injury to work continuously, compensation for lost income shall 
7.8 	be reduced by the income received while the injured person is actually able to work. The 
7.9 	weekly maximums may not be prorated to arrive at a daily maximum, even if the injured 
7.10 	person does not incur loss of income for a full week.
7.11 	(e) For the purposes of this section, an injured person who is "unable by reason of 
7.12 	the injury to work continuously" includes, but is not limited to, a person who misses time 
7.13 	from work, including reasonable travel time, and loses income, vacation, or sick leave 
7.14 	benefits, to obtain medical treatment for an injury arising out of the maintenance or use 
7.15 	of a motor vehicle.

7.16 	Sec. 9. Minnesota Statutes 2012, section 65B.44, subdivision 4, is amended to read:
7.17 		Subd. 4.Funeral and burial expenses. Funeral and burial benefits shall be 
7.18 	reasonable expenses not in excess of $2,000 $5,000, including expenses for cremation or 
7.19 	delivery under the Darlene Luther Revised Uniform Anatomical Gift Act, chapter 525A.

7.20 	Sec. 10. Minnesota Statutes 2012, section 65B.44, subdivision 6, is amended to read:
7.21 		Subd. 6.Survivors economic loss benefits. Survivors economic loss benefits, in 
7.22 	the event of death occurring within one year of the date of the accident, caused by and 
7.23 	arising out of injuries received in the accident, are subject to a maximum of $200 $500
7.24 	 per week and shall cover loss accruing after decedent's death of contributions of money 
7.25 	or tangible things of economic value, not including services, that surviving dependents 
7.26 	would have received from the decedent for their support during their dependency had the 
7.27 	decedent not suffered the injury causing death.
7.28 	For the purposes of definition under sections 65B.41 to 65B.71, the following 
7.29 	described persons shall be presumed to be dependents of a deceased person: (a) a wife 
7.30 	is dependent on a husband with whom she lives at the time of his death; (b) a husband 
7.31 	is dependent on a wife with whom he lives at the time of her death; (c) any child while 
7.32 	under the age of 18 years, or while over that age but physically or mentally incapacitated 
7.33 	from earning, is dependent on the parent with whom the child is living or from whom the 
7.34 	child is receiving support regularly at the time of the death of such parent. Questions of 
8.1 	the existence and the extent of dependency shall be questions of fact, considering the 
8.2 	support regularly received from the deceased.
8.3 	Payments shall be made to the dependent, except that benefits to a dependent who 
8.4 	is a child or an incapacitated person may be paid to the dependent's surviving parent or 
8.5 	guardian. Payments shall be terminated whenever the recipient ceases to maintain a status 
8.6 	which if the decedent were alive would be that of dependency.

8.7 	Sec. 11. Minnesota Statutes 2012, section 72A.502, subdivision 2, is amended to read:
8.8 		Subd. 2.Prevention of fraud. Personal or privileged information may be disclosed 
8.9 	without a written authorization to another person if the information is limited to that 
8.10 	which is reasonably necessary to detect or prevent criminal activity, fraud, material 
8.11 	misrepresentation, or material nondisclosure in connection with an insurance transaction, 
8.12 	and that person agrees not to disclose the information further without the individual 
8.13 	written authorization unless the further disclosure is otherwise permitted by this section 
8.14 	if made by an insurer, insurance agent, or insurance-support organization. Any insurer, 
8.15 	insurance agent, or insurance-support organization making such a disclosure is immune 
8.16 	from liability under section 60A.952, subdivision 3.

8.17 	Sec. 12. TASK FORCE ON MOTOR VEHICLE INSURANCE COVERAGE 
8.18 	VERIFICATION.
 8.19 		Subdivision 1.Establishment. The task force on motor vehicle insurance coverage 
8.20 	verification is established to review and evaluate approaches to insurance coverage 
8.21 	verification and recommend legislation to create and fund a program in this state.
8.22 		Subd. 2.Membership; meetings; staff. (a) The task force shall be composed of 
8.23 	13 members, who must be appointed by July 1, 2014, and who serve at the pleasure of 
8.24 	their appointing authorities:
8.25 	(1) the commissioner of public safety or a designee;
8.26 	(2) the commissioner of commerce or a designee;
8.27 	(3) two members of the house of representatives, one appointed by the speaker of the 
8.28 	house and one appointed by the minority leader;
8.29 	(4) two members of the senate, one appointed by the Subcommittee on Committees 
8.30 	of the Committee on Rules and Administration and one appointed by the minority leader;
8.31 	(5) a representative of Minnesota Deputy Registrars Association;
8.32 	(6) a representative of AAA Minnesota;
8.33 	(7) a representative of AARP Minnesota;
8.34 	(8) a representative of the Insurance Federation of Minnesota;
9.1 	(9) a representative of the Minnesota Bankers Association;
9.2 	(10) a representative of the Minnesota Bar Association; and
9.3 	(11) a representative of the Minnesota Police and Peace Officers Association.
9.4 	(b) Compensation and expense reimbursement must be as provided under Minnesota 
9.5 	Statutes, section 15.059, subdivision 3, to members of the task force.
9.6 	(c) The commissioner of public safety shall convene the task force by August 
9.7 	1, 2014, and shall appoint a chair from the membership of the task force. Staffing and 
9.8 	technical assistance must be provided by the Department of Public Safety.
9.9 		Subd. 3.Duties. The task force shall review and evaluate programs established in 
9.10 	other states as well as programs proposed by third parties, identify one or more programs 
9.11 	recommended for implementation in this state, and, as to the recommended programs, 
9.12 	adopt findings concerning:
9.13 	(1) comparative costs of programs;
9.14 	(2) implementation considerations, and in particular, identifying the appropriate 
9.15 	supervising agency and assessing compatibility with existing and planned computer 
9.16 	systems;
9.17 	(3) effectiveness in verifying existence of motor vehicle insurance coverage;
9.18 	(4) identification of categories of authorized users;
9.19 	(5) simplicity of access and use for authorized users;
9.20 	(6) data privacy considerations;
9.21 	(7) data retention policies; and
9.22 	(8) statutory changes necessary for implementation.
9.23 		Subd. 4.Report. By February 1, 2015, the task force must submit to the 
9.24 	chairs and ranking minority members of the house of representatives and senate 
9.25 	committees and divisions with primary jurisdiction over commerce and transportation its 
9.26 	written recommendations, including any draft legislation necessary to implement the 
9.27 	recommendations.
9.28 		Subd. 5.Sunset. The task force shall sunset the day after submitting the report 
9.29 	under subdivision 4, or February 2, 2015, whichever is earlier.

9.30 	EFFECTIVE DATE. This section is effective the day following final enactment.

9.31 	Sec. 13.  REPEALER.
 9.32 	Minnesota Statutes 2012, section 72A.327, is repealed.