1.1 	A bill for an act
1.2 	relating to insurance; modifying Medicare supplement benefits; modifying 
1.3 	provisions governing renewability and discontinuation of health plans; modifying 
1.4 	reporting requirements related to the 340B drug program; modifying uniform 
1.5 	explanation of benefits specifications; modifying notice and public hearing 
1.6 	requirements related to hospitals closing, curtailing operations, relocating services, 
1.7 	or ceasing to offer certain services; modifying composition and organization of 
1.8 	the health equity advisory and leadership council; requiring public posting of 
1.9 	information relating to prescription drug prices; requiring pharmacy benefit 
1.10 	managers to submit prescription drug fee information to the commissioner of 
1.11 	health;amending Minnesota Statutes 2024, sections 62A.31, subdivisions 1r, 1w; 
1.12 	62A.65, subdivisions 1, 2, by adding a subdivision; 62D.12, subdivisions 2, 2a; 
1.13 	62D.121, subdivision 1; 62J.461, subdivisions 3, 4, 5; 62J.51, subdivision 19a; 
1.14 	62J.581; 62J.84, subdivisions 2, 3, 6, 10, 11, 12, 13, 14, 15; 62K.10, subdivisions 
1.15 	2, 5, 6; 144.50, by adding a subdivision; 144.555, subdivisions 1a, 1b; 145.987, 
1.16 	subdivisions 1, 2; repealing Minnesota Statutes 2024, section 62K.10, subdivision 
1.17 	3.
1.18 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.19 	Section 1. Minnesota Statutes 2024, section 62A.31, subdivision 1r, is amended to read:
1.20 		Subd. 1r.Community rate. (a) Each health maintenance organization, health service 
1.21 	plan corporation, insurer, or fraternal benefit society that sells Medicare-related coverage 
1.22 	shall establish a separate community rate for that coverage. Beginning January 1, 1993, no 
1.23 	Medicare-related coverage may be offered, issued, sold, or renewed to a Minnesota resident, 
1.24 	except at the community rate required by this subdivision. The same community rate must 
1.25 	apply to newly issued coverage and to renewal coverage.
1.26 	(b) For coverage that supplements Medicare and for the Part A rate calculation for plans 
1.27 	governed by section 1833 of the federal Social Security Act, United States Code, title 42, 
1.28 	section 1395, et seq., the community rate may take into account only the following factors:
2.1 	(1) actuarially valid differences in benefit designs or provider networks;
2.2 	(2) geographic variations in rates if preapproved by the commissioner of commerce; 
2.3 	and
2.4 	(3) premium reductions in recognition of healthy lifestyle behaviors, including but not 
2.5 	limited to, refraining from the use of tobacco. Premium reductions must be actuarially valid 
2.6 	and must relate only to those healthy lifestyle behaviors that have a proven positive impact 
2.7 	on health. Factors used by the health carrier making this premium reduction must be filed 
2.8 	with and approved by the commissioner of commerce.; and
2.9 	(4) premium increases in recognition of late enrollment or reenrollment. A premium 
2.10 	increase of ten percent must be applied as a flat percentage of premium for an individual 
2.11 	who (i) enrolls in a Medicare supplement policy outside of the individual's initial enrollment 
2.12 	period in Medicare Part B, and (ii) is not eligible for a guaranteed issue period under 
2.13 	subdivision 1u.
2.14 	(c) For insureds not residing in Anoka, Carver, Chisago, Dakota, Hennepin, Ramsey, 
2.15 	Scott, or Washington County, a health plan may, at the option of the health carrier, phase 
2.16 	in compliance under the following timetable:
2.17 	(i) (1) a premium adjustment as of March 1, 1993, that consists of one-half of the 
2.18 	difference between the community rate that would be applicable to the person as of March 
2.19 	1, 1993, and the premium rate that would be applicable to the person as of March 1, 1993, 
2.20 	under the rate schedule permitted on December 31, 1992. A health plan may, at the option 
2.21 	of the health carrier, implement the entire premium difference described in this clause for 
2.22 	any person as of March 1, 1993, if the premium difference would be 15 percent or less of 
2.23 	the premium rate that would be applicable to the person as of March 1, 1993, under the rate 
2.24 	schedule permitted on December 31, 1992, if the health plan does so uniformly regardless 
2.25 	of whether the premium difference causes premiums to rise or to fall. The premium difference 
2.26 	described in this clause is in addition to any premium adjustment attributable to medical 
2.27 	cost inflation or any other lawful factor and is intended to describe only the premium 
2.28 	difference attributable to the transition to the community rate; and
2.29 	(ii) (2) with respect to any person whose premium adjustment was constrained under 
2.30 	clause (i) (1), a premium adjustment as of January 1, 1994, that consists of the remaining 
2.31 	one-half of the premium difference attributable to the transition to the community rate, as 
2.32 	described in clause (i) (1).
2.33 	(d) A health plan that initially follows the phase-in timetable may at any subsequent 
2.34 	time comply on a more rapid timetable. A health plan that is in full compliance as of January 
3.1 	1, 1993, may not use the phase-in timetable and must remain in full compliance. Health 
3.2 	plans that follow the phase-in timetable must charge the same premium rate for newly issued 
3.3 	coverage that they charge for renewal coverage. A health plan whose premiums are 
3.4 	constrained by paragraph (c), clause (i) (1), may take the constraint into account in 
3.5 	establishing its community rate.
3.6 	(e) From January 1, 1993 to February 28, 1993, a health plan may, at the health carrier's 
3.7 	option, charge the community rate under this paragraph or may instead charge premiums 
3.8 	permitted as of December 31, 1992.

3.9 	Sec. 2. Minnesota Statutes 2024, section 62A.31, subdivision 1w, is amended to read:
3.10 		Subd. 1w.Open enrollment. A medicare supplement policy or certificate must not be 
3.11 	sold or issued to an eligible individual outside of the time periods described in subdivision
3.12 	subdivisions 1h and 1u.

3.13 	Sec. 3. Minnesota Statutes 2024, section 62A.65, subdivision 1, is amended to read:
3.14 		Subdivision 1.Applicability. No health carrier, as defined in section 62A.011, shall 
3.15 	offer, sell, issue, or renew any individual health plan, as defined in section 62A.011, to a 
3.16 	Minnesota resident except in compliance with this section. This section does not apply to 
3.17 	the Comprehensive Health Association established in section 62E.10.

3.18 	Sec. 4. Minnesota Statutes 2024, section 62A.65, subdivision 2, is amended to read:
3.19 		Subd. 2.Guaranteed renewal. No individual health plan may be offered, sold, issued, 
3.20 	or renewed to a Minnesota resident unless the health plan provides that the plan is guaranteed 
3.21 	renewable at a premium rate that does not take into account the claims experience or any 
3.22 	change in the health status of any covered person that occurred after the initial issuance of 
3.23 	the health plan to the person. The premium rate upon renewal must also otherwise comply 
3.24 	with this section. A health carrier must not refuseis prohibited from refusing to renew an
3.25 	a Minnesota resident's individual health plan, except for nonpayment of premiums, fraud, 
3.26 	or misrepresentation. unless:
3.27 	(1) the enrollee has failed to pay premiums in accordance with the health plan's terms, 
3.28 	including any timeliness requirements;
3.29 	(2) the enrollee has performed an act or practice that constitutes fraud or made an 
3.30 	intentional misrepresentation of material fact under the health plan's terms;
3.31 	(3) the enrollee no longer lives in the area where the issuer is authorized to operate;
4.1 	(4) a health carrier discontinues an individual health plan as provided under subdivision 
4.2 	2a; or
4.3 	(5) a health carrier discontinues issuing new individual health plans and refuses to renew 
4.4 	all of the health carrier's existing individual health plans issued in Minnesota as provided 
4.5 	under subdivision 8.

4.6 	Sec. 5. Minnesota Statutes 2024, section 62A.65, is amended by adding a subdivision to 
4.7 	read:
4.8 		Subd. 2a.Discontinuing individual health plan. (a) In order to discontinue a particular 
4.9 	type of individual health plan in Minnesota for purposes of subdivision 2, clause (4), a health 
4.10 	carrier must:
4.11 	(1) provide written notice to the commissioner that approves the individual health plan's 
4.12 	policy forms and filings, in the form and manner approved by the commissioner, regarding 
4.13 	the health carrier's intent to discontinue a particular type of individual health plan in 
4.14 	Minnesota. The notice must be provided no later than May 1 of the year before the date the 
4.15 	individual health plan intends to discontinue the particular type of individual health plan;
4.16 	(2) provide written notice to each individual enrolled in the individual health plan no 
4.17 	later than 90 days before the date the coverage is discontinued;
4.18 	(3) offer each individual covered by the individual health plan that the health carrier 
4.19 	intends to discontinue the option to purchase on a guaranteed-issue basis any other individual 
4.20 	health plan currently offered by the health carrier for individuals in that market; and
4.21 	(4) act uniformly without regard to any factor relating to the health status factor of 
4.22 	covered individuals or dependents of covered individuals who may become eligible for 
4.23 	coverage.
4.24 	(b) The commissioner may disapprove a health carrier discontinuing a particular type 
4.25 	of individual health plan within 60 days after receiving notice under paragraph (a) if the 
4.26 	commissioner determines discontinuing the plan is not in Minnesota policyholders' best 
4.27 	interest. When making the determination under this paragraph, the commissioner may 
4.28 	consider the size of plan enrollment, the availability of comparable individual health plan 
4.29 	options offered by the health carrier in Minnesota, or any other factor the commissioner 
4.30 	deems relevant.
4.31 	(c) A health carrier may appeal the commissioner's determination under paragraph (b) 
4.32 	to disapprove the health carrier's plan to discontinue a particular type of individual health 
4.33 	plan in Minnesota. An appeal under this paragraph is subject to the contested case procedures 
5.1 	under chapter 14 and must be made within 30 days of the date the commissioner makes a 
5.2 	written determination under paragraph (b).

5.3 	Sec. 6. Minnesota Statutes 2024, section 62D.12, subdivision 2, is amended to read:
5.4 		Subd. 2.Coverage cancellation; nonrenewal. No health maintenance organization may 
5.5 	cancel or fail to renew the coverage of an enrollee except for (1) failure to pay the charge 
5.6 	for health care coverage; (2) termination of the health care plan subject to section 62A.65, 
5.7 	subdivisions 2 and 2a; (3) termination of the group plan; (4) enrollee moving out of the area 
5.8 	served, subject to section 62A.17, subdivisions 1 and 6, and section 62D.104; (5) enrollee 
5.9 	moving out of an eligible group, subject to section 62A.17, subdivisions 1 and 6, and section 
5.10 	62D.104; (6) failure to make co-payments required by pay premiums as provided by the 
5.11 	terms of the health care plan, including timeliness requirements; (7) fraud or 
5.12 	misrepresentation by the enrollee with respect to eligibility for coverage or any other material 
5.13 	fact; or (8) other reasons established in rules promulgated by the commissioner of health.

5.14 	Sec. 7. Minnesota Statutes 2024, section 62D.12, subdivision 2a, is amended to read:
5.15 		Subd. 2a.Cancellation or nonrenewal notice. Enrollees shall be given 30 days' notice 
5.16 	of any cancellation or nonrenewal, except that: (1) enrollees in a plan terminated under 
5.17 	section 62A.65, subdivision 2, clause (4), and 2a, must receive the 90 days' notice required 
5.18 	under section 62A.65, subdivision 2a, paragraph (a), clause (2); and (2) enrollees who are 
5.19 	eligible to receive replacement coverage under section 62D.121, subdivision 1, shall receive 
5.20 	90 days' notice as provided under section 62D.121, subdivision 5.

5.21 	Sec. 8. Minnesota Statutes 2024, section 62D.121, subdivision 1, is amended to read:
5.22 		Subdivision 1.Replacement coverage. When membership of an enrollee who has 
5.23 	individual health coverage is terminated by the health maintenance organization for a reason 
5.24 	other than (a) failure to pay the charge for health care coverage; (b) failure to make 
5.25 	co-payments required by pay premiums as provided by the terms of the health care plan, 
5.26 	including timeliness requirements; (c) enrollee moving out of the area served; or (d) a 
5.27 	materially false statement or misrepresentation by the enrollee in the application for 
5.28 	membership, the health maintenance organization must offer or arrange to offer replacement 
5.29 	coverage, without evidence of insurability, without preexisting condition exclusions, and 
5.30 	without interruption of coverage.

6.1 	Sec. 9. Minnesota Statutes 2024, section 62J.461, subdivision 3, is amended to read:
6.2 		Subd. 3.Reporting by covered entities to the commissioner. (a) Each 340B covered 
6.3 	entity shall report to the commissioner by April 1 of each year the following information 
6.4 	for transactions conducted by the 340B covered entity or on its behalf, and related to its 
6.5 	participation in the federal 340B program for the previous calendar year:
6.6 	(1) the aggregated acquisition cost for prescription drugs obtained under the 340B 
6.7 	program;
6.8 	(2) the aggregated payment amount received for drugs obtained under the 340B program 
6.9 	and dispensed or administered to patients;:
6.10 	(i) that are net of the contracted price for insurance claims payments; and
6.11 	(ii) that reflect the portion of payment received from grants, cash, or other payment types 
6.12 	that relate to the dispensing or administering of drugs obtained under the 340B program;
6.13 	(3) the number of pricing units dispensed or administered for prescription drugs described 
6.14 	in clause (2); and
6.15 	(4) the aggregated payments made:
6.16 	(i) to contract pharmacies to dispense drugs obtained under the 340B program;
6.17 	(ii) to any other entity that is not the covered entity and is not a contract pharmacy for 
6.18 	managing any aspect of the covered entity's 340B program; and
6.19 	(iii) for all other internal, direct expenses related to administering the 340B program
6.20 	with a detailed description of the direct costs included.
6.21 	The information under clauses (2) and (3) must be reported by payer type, including but 
6.22 	not limited to commercial insurance, medical assistance, MinnesotaCare, and Medicare, in 
6.23 	the form and manner prescribed by the commissioner.
6.24 	(b) For covered entities that are hospitals, the information required under paragraph (a), 
6.25 	clauses (1) to (3), must also be reported at the national drug code level for the 50 most 
6.26 	frequently dispensed or administered drugs by the facility under the 340B program.
6.27 	(c) Data submitted to the commissioner under paragraphs (a) and (b) are classified as 
6.28 	nonpublic data, as defined in section 13.02, subdivision 9.

6.29 	Sec. 10. Minnesota Statutes 2024, section 62J.461, subdivision 4, is amended to read:
6.30 		Subd. 4.Enforcement and exceptions. (a) Any health care covered entity subject to 
6.31 	reporting under this section that fails to provide data in the form and manner prescribed by 
7.1 	the commissioner is subject to the levy of a fine paid to the commissioner of up to $500 for 
7.2 	each day the data are past due. Any fine levied against the entity under this subdivision is 
7.3 	subject to the contested case and judicial review provisions of sections 14.57and to14.69.
7.4 	(b) The commissioner may grant an entity an extension of or exemption from the reporting 
7.5 	obligations under this subdivision section, upon a showing of good cause by the entity.

7.6 	Sec. 11. Minnesota Statutes 2024, section 62J.461, subdivision 5, is amended to read:
7.7 		Subd. 5.Reports to the legislature. By November 15, 2024, and by November 15 of 
7.8 	each year thereafter, the commissioner shall submit to the chairs and ranking minority 
7.9 	members of the legislative committees with jurisdiction over health care finance and policy, 
7.10 	a report that aggregates the data submitted under subdivision 3, paragraphs (a) and (b). The 
7.11 	following information must be included in the report For all 340B entities whose net 340B 
7.12 	revenue constitutes a significant share, as determined by the commissioner, of all net 340B 
7.13 	revenue across all 340B covered entities in Minnesota, the following information must also 
7.14 	be included in the report:
7.15 	(1) the information submitted under subdivision 2; and
7.16 	(2) for each 340B entity identified in subdivision 2, that entity's 340B net revenue as 
7.17 	calculated using the data submitted under subdivision 3, paragraph (a), with net revenue 
7.18 	being subdivision 3, paragraph (a), clause (2), less the sum of subdivision 3, paragraph (a), 
7.19 	clauses (1) and (4).
7.20 	For all other entities, the data in the report must be aggregated to the entity type or groupings 
7.21 	of entity types in a manner that prevents the identification of an individual entity and any 
7.22 	entity's specific data value reported for an individual data element.

7.23 	Sec. 12. Minnesota Statutes 2024, section 62J.51, subdivision 19a, is amended to read:
7.24 		Subd. 19a.Uniform explanation of benefits document. "Uniform explanation of 
7.25 	benefits document" means either the document associated with and explaining the details 
7.26 	of a group purchaser's claim adjudication for services rendered or its electronic equivalent 
7.27 	under section 62J.581, which is sent to a patient.

8.1 	Sec. 13. Minnesota Statutes 2024, section 62J.581, is amended to read:
8.2 	62J.581 STANDARDS FOR MINNESOTA UNIFORM HEALTH CARE 
8.3 	REIMBURSEMENT DOCUMENTS.
8.4 		Subdivision 1.Minnesota uniform remittance advice.  All group purchasers shall 
8.5 	provide a uniform claim payment/advice transaction to health care providers when a claim 
8.6 	is adjudicated. The uniform claim payment/advice transaction shall comply with section 
8.7 	62J.536, subdivision 1, paragraph (b), and rules adopted under section 62J.536, subdivision 
8.8 	2.
8.9 		Subd. 2.Minnesota uniform explanation of benefits document. (a) All group 
8.10 	purchasers shall provide a uniform explanation of benefits document to health care patients 
8.11 	when an explanation of benefits document is provided as otherwise required or permitted 
8.12 	by law. The uniform explanation of benefits document shall comply with the standards 
8.13 	prescribed in this section.
8.14 	(b) Notwithstanding paragraph (a), this section does not apply to group purchasers not 
8.15 	included as covered entities under United States Code, title 42, sections 1320d to 1320d-8, 
8.16 	as amended from time to time, and the regulations promulgated under those sections.
8.17 		Subd. 3.Scope. For purposes of sections 62J.50 to 62J.61, the uniform claim 
8.18 	payment/advice transaction and uniform explanation of benefits document format specified 
8.19 	in subdivision 4 shall apply to all health care services delivered by a health care provider 
8.20 	or health care provider organization in Minnesota, regardless of the location of the payer. 
8.21 	Health care services not paid on an individual claims basis, such as capitated payments, are 
8.22 	not included in this section. A health plan company is excluded from the requirements in 
8.23 	subdivisions 1 and subdivision 2 if they comply with section 62A.01, subdivisions 2 and 
8.24 	3.
8.25 		Subd. 4.Specifications. (a) The uniform explanation of benefits document shall be 
8.26 	provided by use of a paper document conforming to the specifications in this section or its 
8.27 	electronic equivalent under paragraph (b).
8.28 	(b) Group purchasers may make the uniform explanation of benefits available in a version 
8.29 	that can be accessed by health care patients electronically if:
8.30 	(1) the group purchaser making the uniform explanation of benefits available 
8.31 	electronically provides health care patients the ability to choose whether to receive paper, 
8.32 	electronic, or both paper and electronic versions of their uniform explanation of benefits;
9.1 	(2) the group purchaser provides clear, readily accessible information and instructions 
9.2 	for the patient to communicate their choice; and
9.3 	(3) health care patients not responding to the opportunity to make a choice will receive 
9.4 	at a minimum a paper uniform explanation of benefits.
9.5 	(c) The commissioner, after consulting with the Administrative Uniformity Committee, 
9.6 	shall specify the data elements and definitions for the paper uniform explanation of benefits 
9.7 	document. The commissioner and the Administrative Uniformity Committee must consult 
9.8 	with the Minnesota Dental Association and Delta Dental Plan of Minnesota before requiring 
9.9 	under this section the use of a paper document for the uniform explanation of benefits 
9.10 	document or the uniform claim payment/advice transaction for dental care services. Any 
9.11 	electronic version of the uniform explanation of benefits must use the same data elements 
9.12 	and definitions as the paper uniform explanation of benefits.
9.13 		Subd. 5.Effective date. The requirements in subdivisions 1 and 2 are effective June 30, 
9.14 	2007. The requirements in subdivisions 1 and 2 apply regardless of when the health care 
9.15 	service was provided to the patient.

9.16 	Sec. 14. Minnesota Statutes 2024, section 62J.84, subdivision 2, is amended to read:
9.17 		Subd. 2.Definitions. (a) For purposes of this section, the terms defined in this subdivision 
9.18 	have the meanings given.
9.19 	(b) "Biosimilar" means a drug that is produced or distributed pursuant to a biologics 
9.20 	license application approved under United States Code, title 42, section 262(K)(3).
9.21 	(c) "Brand name drug" means a drug that is produced or distributed pursuant to:
9.22 	(1) a new drug application approved under United States Code, title 21, section 355(c), 
9.23 	except for a generic drug as defined under Code of Federal Regulations, title 42, section 
9.24 	447.502; or
9.25 	(2) a biologics license application approved under United States Code, title 42, section 
9.26 	262(a)(c).
9.27 	(d) "Commissioner" means the commissioner of health.
9.28 	(e) "Generic drug" means a drug that is marketed or distributed pursuant to:
9.29 	(1) an abbreviated new drug application approved under United States Code, title 21, 
9.30 	section 355(j);
10.1 	(2) an authorized generic as defined under Code of Federal Regulations, title 42, section 
10.2 	447.502; or
10.3 	(3) a drug that entered the market the year before 1962 and was not originally marketed 
10.4 	under a new drug application.
10.5 	(f) "Manufacturer" means a drug manufacturer licensed under section 151.252.
10.6 	(g) "New prescription drug" or "new drug" means a prescription drug approved for 
10.7 	marketing by the United States Food and Drug Administration (FDA) for which no previous 
10.8 	wholesale acquisition cost has been established for comparison.
10.9 	(h) "Patient assistance program" means a program that a manufacturer offers to the public 
10.10 	in which a consumer may reduce the consumer's out-of-pocket costs for prescription drugs 
10.11 	by using coupons, discount cards, prepaid gift cards, manufacturer debit cards, or by other 
10.12 	means.
10.13 	(i) "Prescription drug" or "drug" has the meaning provided in section 151.441, subdivision 
10.14 	8.
10.15 	(j) "Price" means the wholesale acquisition cost as defined in United States Code, title 
10.16 	42, section 1395w-3a(c)(6)(B).
10.17 	(k) "30-day supply" means the total daily dosage units of a prescription drug 
10.18 	recommended by the prescribing label approved by the FDA for 30 days. If the 
10.19 	FDA-approved prescribing label includes more than one recommended daily dosage, the 
10.20 	30-day supply is based on the maximum recommended daily dosage on the FDA-approved 
10.21 	prescribing label.
10.22 	(l) "Course of treatment" means the total dosage of a single prescription for a prescription 
10.23 	drug recommended by the FDA-approved prescribing label. If the FDA-approved prescribing 
10.24 	label includes more than one recommended dosage for a single course of treatment, the 
10.25 	course of treatment is the maximum recommended dosage on the FDA-approved prescribing 
10.26 	label.
10.27 	(m) "Drug product family" means a group of one or more prescription drugs that share 
10.28 	a unique generic drug description or nontrade name and dosage form.
10.29 	(n) "Individual salable unit" means the smallest container of product introduced into 
10.30 	commerce by the manufacturer or repackager that is intended by the manufacturer or 
10.31 	repackager for individual sale to a dispenser.
11.1 	(o) (n) "National drug code" means the three-segment code maintained by the federal 
11.2 	Food and Drug Administration that includes a labeler code, a product code, and a package 
11.3 	code for a drug product and that has been converted to an 11-digit format consisting of five 
11.4 	digits in the first segment, four digits in the second segment, and two digits in the third 
11.5 	segment. A three-segment code shall be considered converted to an 11-digit format when, 
11.6 	as necessary, at least one "0" has been added to the front of each segment containing less 
11.7 	than the specified number of digits such that each segment contains the specified number 
11.8 	of digits.
11.9 	(p) (o) "Pharmacy" or "pharmacy provider" means a community/outpatient pharmacy 
11.10 	as defined in Minnesota Rules, part 6800.0100, subpart 2, that is also licensed as a pharmacy 
11.11 	by the Board of Pharmacy under section 151.19.
11.12 	(q) (p) "Pharmacy benefit manager" or "PBM" means an entity licensed to act as a 
11.13 	pharmacy benefit manager under section 62W.03.
11.14 	(r) (q) "Pricing unit" means the smallest dispensable amount of a prescription drug 
11.15 	product that could be dispensed or administered.
11.16 	(s) (r) "Rebate" means a discount, chargeback, or other price concession that affects the 
11.17 	price of a prescription drug product, regardless of whether conferred through regular 
11.18 	aggregate payments, on a claim-by-claim basis at the point of sale, as part of retrospective 
11.19 	financial reconciliations, including reconciliations that also reflect other contractual 
11.20 	arrangements, or by any other method. "Rebate" does not mean a bona fide service fee as 
11.21 	defined in Code of Federal Regulations, title 42, section 447.502.
11.22 	(t) (s) "Reporting entity" means any manufacturer, pharmacy, pharmacy benefit manager, 
11.23 	wholesale drug distributor, or any other entity required to submit data under this section.
11.24 	(u) (t) "Wholesale drug distributor" or "wholesaler" means an entity that:
11.25 	(1) is licensed to act as a wholesale drug distributor under section 151.47; and.
11.26 	(2) distributes prescription drugs, for which it is not the manufacturer, to persons or 
11.27 	entities, or both, other than a consumer or patient in the state.

11.28 	Sec. 15. Minnesota Statutes 2024, section 62J.84, subdivision 3, is amended to read:
11.29 		Subd. 3.Prescription drug price increases reporting. (a) Beginning January 1, 2022, 
11.30 	a drug manufacturer must submit to the commissioner the information described in paragraph 
11.31 	(b) for each prescription drug for which the price was $100 or greater for a 30-day supply 
11.32 	or for a course of treatment lasting less than 30 days and:
12.1 	(1) for brand name drugs where there is an increase of ten percent or greater in the price 
12.2 	over the previous 12-month period or an increase of 16 percent or greater in the price over 
12.3 	the previous 24-month period; and
12.4 	(2) for generic or biosimilar drugs where there is an increase of 50 percent or greater in 
12.5 	the price over the previous 12-month period.
12.6 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
12.7 	the commissioner no later than 60 days after the price increase goes into effect, in the form 
12.8 	and manner prescribed by the commissioner, the following information, if applicable:
12.9 	(1) the description and price of the drug and the net increase, expressed as a percentage, 
12.10 	with the following listed separately:
12.11 	(i) the national drug code;
12.12 	(ii) the product name;
12.13 	(iii) the dosage form;
12.14 	(iv) the strength; and
12.15 	(v) the package size;
12.16 	(2) the factors that contributed to the price increase;
12.17 	(3) the name of any generic version of the prescription drug available on the market;
12.18 	(4) the year the prescription drug was introduced for sale in the United States;
12.19 	(4) (5) the introductory price of the prescription drug when it was introduced for sale in 
12.20 	the United States and the price of the drug on the last day of each of the five calendar years 
12.21 	preceding the price increase;
12.22 	(5) (6) the direct costs incurred during the previous 12-month period by the manufacturer 
12.23 	that are associated with the prescription drug, listed separately:
12.24 	(i) to manufacture the prescription drug;
12.25 	(ii) to market the prescription drug, including advertising costs; and
12.26 	(iii) to distribute the prescription drug;
12.27 	(7) the number of units of the prescription drug sold during the previous 12-month period;
12.28 	(6) (8) the total sales revenue for the prescription drug during the previous 12-month 
12.29 	period;
13.1 	(9) the total rebate payable amount accrued for the prescription drug during the previous 
13.2 	12-month period;
13.3 	(7) (10) the manufacturer's net profit attributable to the prescription drug during the 
13.4 	previous 12-month period;
13.5 	(8) (11) the total amount of financial assistance the manufacturer has provided through 
13.6 	patient prescription assistance programs during the previous 12-month period, if applicable;
13.7 	(9) (12) any agreement between a manufacturer and another entity contingent upon any 
13.8 	delay in offering to market a generic version of the prescription drug;
13.9 	(10) (13) the patent expiration date of the prescription drug if it is under patent;
13.10 	(11) (14) the name and location of the company that manufactured the drug;
13.11 	(12) (15) if a brand name prescription drug, the highest price paid for the prescription 
13.12 	drug during the previous calendar year in the ten countries, excluding the United States, 
13.13 	that charged the highest single price for the prescription drug; and
13.14 	(13) (16) if the prescription drug was acquired by the manufacturer during the previous 
13.15 	12-month period, all of the following information:
13.16 	(i) price at acquisition;
13.17 	(ii) price in the calendar year prior to acquisition;
13.18 	(iii) name of the company from which the drug was acquired;
13.19 	(iv) date of acquisition; and
13.20 	(v) acquisition price.
13.21 	(c) The manufacturer may submit any documentation necessary to support the information 
13.22 	reported under this subdivision.

13.23 	Sec. 16. Minnesota Statutes 2024, section 62J.84, subdivision 6, is amended to read:
13.24 		Subd. 6.Public posting of prescription drug price information. (a) The commissioner 
13.25 	shall post on the department's website, or may contract with a private entity or consortium 
13.26 	that satisfies the standards of section 62U.04, subdivision 6, to meet this requirement, the 
13.27 	following information:
13.28 	(1) a list of the prescription drugs reported under subdivisions 3, 4, and 11 to 14 and the 
13.29 	manufacturers of those prescription drugs; and
14.1 	(2) a list of reporting entities that reported prescription drug price information under 
14.2 	subdivisions 3, 4, and 11 to 14; and
14.3 	(2) (3) information reported to the commissioner under subdivisions 3, 4, and 11 to 14, 
14.4 	aggregated on a per-drug basis in a manner that does not allow the identification of a reporting 
14.5 	entity that is not the manufacturer of the drug.
14.6 	(b) The information must be published in an easy-to-read format and in a manner that 
14.7 	identifies the information that is disclosed on a per-drug basis and must not be aggregated 
14.8 	in a manner that prevents the identification of the prescription drug.
14.9 	(c) The commissioner shall not post to the department's website or a private entity 
14.10 	contracting with the commissioner shall not post any information described in this section 
14.11 	if the information is not public data under section 13.02, subdivision 8a; or is trade secret 
14.12 	information under section 13.37, subdivision 1, paragraph (b); or is trade secret information 
14.13 	pursuant to the Defend Trade Secrets Act of 2016, United States Code, title 18, section 
14.14 	1836, as amended. If a reporting entity believes information should be withheld from public 
14.15 	disclosure pursuant to this paragraph, the reporting entity must clearly and specifically 
14.16 	identify that information and describe the legal basis in writing when the reporting entity 
14.17 	submits the information under this section. If the commissioner disagrees with the reporting 
14.18 	entity's request to withhold information from public disclosure, the commissioner shall 
14.19 	provide the reporting entity written notice that the information will be publicly posted 30 
14.20 	days after the date of the notice.
14.21 	(d) If the commissioner withholds any information from public disclosure pursuant to 
14.22 	this subdivision, the commissioner shall post to the department's website a report describing 
14.23 	the nature of the information and the commissioner's basis for withholding the information 
14.24 	from disclosure.
14.25 	(e) To the extent the information required to be posted under this subdivision is collected 
14.26 	and made available to the public by another state, by the University of Minnesota, or through 
14.27 	an online drug pricing reference and analytical tool, the commissioner may reference the 
14.28 	availability of this drug price data from another source including, within existing 
14.29 	appropriations, creating the ability of the public to access the data from the source for 
14.30 	purposes of meeting the reporting requirements of this subdivision.

14.31 	Sec. 17. Minnesota Statutes 2024, section 62J.84, subdivision 10, is amended to read:
14.32 		Subd. 10.Notice of prescription drugs of substantial public interest. (a) No later than 
14.33 	January 31, 2024, and quarterly thereafter, the commissioner shall produce and post on the 
15.1 	department's website a list of prescription drugs that the commissioner determines to represent 
15.2 	a substantial public interest and for which the commissioner intends to request data under 
15.3 	subdivisions 11 to 14, subject to paragraph (c). The commissioner shall base its inclusion 
15.4 	of prescription drugs on any information the commissioner determines is relevant to providing 
15.5 	greater consumer awareness of the factors contributing to the cost of prescription drugs in 
15.6 	the state, and the commissioner shall consider drug product families that include prescription 
15.7 	drugs:
15.8 	(1) that triggered reporting under subdivision 3 or 4 during the previous calendar quarter;
15.9 	(2) for which average claims paid amounts exceeded 125 percent of the price as of the 
15.10 	claim incurred date during the most recent calendar quarter for which claims paid amounts 
15.11 	are available; or
15.12 	(3) that are identified by members of the public during a public comment process.
15.13 	(b) Not sooner than 30 days after publicly posting the list of prescription drugs under 
15.14 	paragraph (a), the department shall notify, via email, reporting entities registered with the 
15.15 	department of:
15.16 	(1) the requirement to report under subdivisions 11 to 14.; and
15.17 	(2) the reporting period for which data must be provided.
15.18 	(c) The commissioner must not designate more than 500 prescription drugs as having a 
15.19 	substantial public interest in any one notice.
15.20 	(d) Notwithstanding subdivision 16, the commissioner is exempt from chapter 14, 
15.21 	including section 14.386, in implementing this subdivision.

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

15.23 	Sec. 18. Minnesota Statutes 2024, section 62J.84, subdivision 11, is amended to read:
15.24 		Subd. 11.Manufacturer prescription drug substantial public interest reporting. (a) 
15.25 	Beginning January 1, 2024, a manufacturer must submit to the commissioner the information 
15.26 	described in paragraph (b) for any prescription drug:
15.27 	(1) included in a notification to report issued to the manufacturer by the department 
15.28 	under subdivision 10;
15.29 	(2) which the manufacturer manufactures or repackages;
15.30 	(3) for which the manufacturer sets the wholesale acquisition cost; and
16.1 	(4) for which the manufacturer has not submitted data under subdivision 3 during the 
16.2 	120-day period prior to the date of the notification to report.
16.3 	(b) For each of the drugs described in paragraph (a), the manufacturer shall submit to 
16.4 	the commissioner no later than 60 days after the date of the notification to report, in the 
16.5 	form and manner prescribed by the commissioner, the following information, if applicable:
16.6 	(1) a description of the drug with the following listed separately:
16.7 	(i) the national drug code;
16.8 	(ii) the product name;
16.9 	(iii) the dosage form;
16.10 	(iv) the strength; and
16.11 	(v) the package size;
16.12 	(2) the price of the drug product on the later of:
16.13 	(i) the day one year prior to the date of the notification to report;
16.14 	(ii) the introduced to market date; or
16.15 	(iii) the acquisition date;
16.16 	(3) the price of the drug product on the date of the notification to report;
16.17 	(4) the year the prescription drug was introduced for sale in the United States;
16.18 	(4) (5) the introductory price of the prescription drug when it was introduced for sale in 
16.19 	the United States and the price of the drug on the last day of each of the five calendar years 
16.20 	preceding the date of the notification to report;
16.21 	(5) (6) the direct costs incurred during the 12-month period prior to the date of reporting 
16.22 	period specified in the notification to report by the manufacturers that are associated with 
16.23 	the prescription drug, listed separately:
16.24 	(i) to manufacture the prescription drug;
16.25 	(ii) to market the prescription drug, including advertising costs; and
16.26 	(iii) to distribute the prescription drug;
16.27 	(6) (7) the number of units of the prescription drug sold during the 12-month period 
16.28 	prior to the date of reporting period specified in the notification to report;
17.1 	(7) (8) the total sales revenue for the prescription drug during the 12-month period prior 
17.2 	to the date of reporting period specified in the notification to report;
17.3 	(8) (9) the total rebate payable amount accrued for the prescription drug during the 
17.4 	12-month period prior to the date of reporting period specified in the notification to report;
17.5 	(9) (10) the manufacturer's net profit attributable to the prescription drug during the 
17.6 	12-month period prior to the date of reporting period specified in the notification to report;
17.7 	(10) (11) the total amount of financial assistance the manufacturer has provided through 
17.8 	patient prescription assistance programs during the 12-month period prior to the date of
17.9 	reporting period specified in the notification to report, if applicable;
17.10 	(11) (12) any agreement between a manufacturer and another entity contingent upon 
17.11 	any delay in offering to market a generic version of the prescription drug;
17.12 	(12) (13) the patent expiration date of the prescription drug if the prescription drug is 
17.13 	under patent;
17.14 	(13) (14) the name and location of the company that manufactured the drug;
17.15 	(14) (15) if the prescription drug is a brand name prescription drug, the ten countries 
17.16 	other than the United States that paid the highest prices for the prescription drug during the 
17.17 	previous calendar year and their prices; and
17.18 	(15) (16) if the prescription drug was acquired by the manufacturer within a 12-month 
17.19 	period prior to the date of the reporting period specified in the notification to report, all of 
17.20 	the following information:
17.21 	(i) the price at acquisition;
17.22 	(ii) the price in the calendar year prior to acquisition;
17.23 	(iii) the name of the company from which the drug was acquired;
17.24 	(iv) the date of acquisition; and
17.25 	(v) the acquisition price.
17.26 	(c) The manufacturer may submit any documentation necessary to support the information 
17.27 	reported under this subdivision.

18.1 	Sec. 19. Minnesota Statutes 2024, section 62J.84, subdivision 12, is amended to read:
18.2 		Subd. 12.Pharmacy prescription drug substantial public interest reporting. (a) 
18.3 	Beginning January 1, 2024, a pharmacy must submit to the commissioner the information 
18.4 	described in paragraph (b) for any prescription drug:
18.5 	(1) included in a notification to report issued to the pharmacy by the department under 
18.6 	subdivision 10.; and
18.7 	(2) that the pharmacy dispensed in Minnesota or mailed to a Minnesota address.
18.8 	(b) For each of the drugs described in paragraph (a), the pharmacy shall submit to the 
18.9 	commissioner no later than 60 days after the date of the notification to report, in the form 
18.10 	and manner prescribed by the commissioner, the following information, if applicable:
18.11 	(1) a description of the drug with the following listed separately:
18.12 	(i) the national drug code;
18.13 	(ii) the product name;
18.14 	(iii) the dosage form;
18.15 	(iv) the strength; and
18.16 	(v) the package size;
18.17 	(2) the number of units of the drug acquired during the 12-month period prior to the date 
18.18 	of reporting period specified in the notification to report;
18.19 	(3) the total spent before rebates by the pharmacy to acquire the drug during the 12-month 
18.20 	period prior to the date of reporting period specified in the notification to report;
18.21 	(4) the total rebate receivable amount accrued by the pharmacy for the drug during the 
18.22 	12-month period prior to the date of reporting period specified in the notification to report;
18.23 	(5) the number of pricing units of the drug dispensed by the pharmacy during the 
18.24 	12-month period prior to the date of reporting period specified in the notification to report;
18.25 	(6) the total payment receivable by the pharmacy for dispensing the drug including 
18.26 	ingredient cost, dispensing fee, and administrative fees during the 12-month period prior 
18.27 	to the date of reporting period specified in the notification to report;
18.28 	(7) the total rebate payable amount accrued by the pharmacy for the drug during the 
18.29 	12-month period prior to the date of reporting period specified in the notification to report; 
18.30 	and
19.1 	(8) the average cash price paid by consumers per pricing unit for prescriptions dispensed 
19.2 	where no claim was submitted to a health care service plan or health insurer during the 
19.3 	12-month period prior to the date of reporting period specified in the notification to report.
19.4 	(c) The pharmacy may submit any documentation necessary to support the information 
19.5 	reported under this subdivision.
19.6 	(d) The commissioner may grant extensions, exemptions, or both to compliance with 
19.7 	the requirements of paragraphs (a) and (b) by small or independent pharmacies, if compliance 
19.8 	with paragraphs (a) and (b) would represent a hardship or undue burden to the pharmacy. 
19.9 	The commissioner may establish procedures for small or independent pharmacies to request 
19.10 	extensions or exemptions under this paragraph.

19.11 	Sec. 20. Minnesota Statutes 2024, section 62J.84, subdivision 13, is amended to read:
19.12 		Subd. 13.PBM prescription drug substantial public interest reporting. (a) Beginning 
19.13 	January 1, 2024, a PBM must submit to the commissioner the information described in 
19.14 	paragraph (b) for any prescription drug:
19.15 	(1) included in a notification to report issued to the PBM by the department under 
19.16 	subdivision 10.; and
19.17 	(2) for which the PBM fulfilled pharmacy benefit management duties for Minnesota 
19.18 	residents.
19.19 	(b) For each of the drugs described in paragraph (a), the PBM shall submit to the 
19.20 	commissioner no later than 60 days after the date of the notification to report, in the form 
19.21 	and manner prescribed by the commissioner, the following information, if applicable:
19.22 	(1) a description of the drug with the following listed separately:
19.23 	(i) the national drug code;
19.24 	(ii) the product name;
19.25 	(iii) the dosage form;
19.26 	(iv) the strength; and
19.27 	(v) the package size;
19.28 	(2) the number of pricing units of the drug product filled for which the PBM administered 
19.29 	claims during the 12-month period prior to the date of reporting period specified in the 
19.30 	notification to report;
20.1 	(3) the total reimbursement amount accrued and payable to pharmacies for pricing units 
20.2 	of the drug product filled for which the PBM administered claims during the 12-month 
20.3 	period prior to the date of reporting period specified in the notification to report;
20.4 	(4) the total reimbursement or administrative fee amount, or both, accrued and receivable 
20.5 	from payers for pricing units of the drug product filled for which the PBM administered 
20.6 	claims during the 12-month period prior to the date of reporting period specified in the 
20.7 	notification to report;
20.8 	(5) the total administrative fee amount accrued and receivable from payers for pricing 
20.9 	units of the drug product filled during the reporting period specified in the notification to 
20.10 	report;
20.11 	(5) (6) the total rebate receivable amount accrued by the PBM for the drug product 
20.12 	during the 12-month period prior to the date of reporting period specified in the notification 
20.13 	to report; and
20.14 	(6) (7) the total rebate payable amount accrued by the PBM for the drug product during 
20.15 	the 12-month period prior to the date of reporting period specified in the notification to 
20.16 	report.
20.17 	(c) The PBM may submit any documentation necessary to support the information 
20.18 	reported under this subdivision.

20.19 	Sec. 21. Minnesota Statutes 2024, section 62J.84, subdivision 14, is amended to read:
20.20 		Subd. 14.Wholesale drug distributor prescription drug substantial public interest 
20.21 	reporting. (a) Beginning January 1, 2024, a wholesale drug distributor that distributes 
20.22 	prescription drugs, for which it is not the manufacturer, to persons or entities, or both, other 
20.23 	than a consumer or patient in the state, must submit to the commissioner the information 
20.24 	described in paragraph (b) for any prescription drug:
20.25 	(1) included in a notification to report issued to the wholesale drug distributor by the 
20.26 	department under subdivision 10.; and
20.27 	(2) that the wholesale drug distributor distributed within or into Minnesota.
20.28 	(b) For each of the drugs described in paragraph (a), the wholesale drug distributor shall 
20.29 	submit to the commissioner no later than 60 days after the date of the notification to report, 
20.30 	in the form and manner prescribed by the commissioner, the following information, if 
20.31 	applicable:
20.32 	(1) a description of the drug with the following listed separately:
21.1 	(i) the national drug code;
21.2 	(ii) the product name;
21.3 	(iii) the dosage form;
21.4 	(iv) the strength; and
21.5 	(v) the package size;
21.6 	(2) the number of units of the drug product acquired by the wholesale drug distributor 
21.7 	during the 12-month period prior to the date of reporting period specified in the notification 
21.8 	to report;
21.9 	(3) the total spent before rebates by the wholesale drug distributor to acquire the drug 
21.10 	product during the 12-month period prior to the date of reporting period specified in the 
21.11 	notification to report;
21.12 	(4) the total rebate receivable amount accrued by the wholesale drug distributor for the 
21.13 	drug product during the 12-month period prior to the date of reporting period specified in
21.14 	the notification to report;
21.15 	(5) the number of units of the drug product sold by the wholesale drug distributor during 
21.16 	the 12-month period prior to the date of reporting period specified in the notification to 
21.17 	report;
21.18 	(6) gross revenue from sales in the United States generated by the wholesale drug 
21.19 	distributor for this the drug product during the 12-month period prior to the date of reporting 
21.20 	period specified in the notification to report; and
21.21 	(7) total rebate payable amount accrued by the wholesale drug distributor for the drug 
21.22 	product during the 12-month period prior to the date of reporting period specified in the 
21.23 	notification to report.
21.24 	(c) The wholesale drug distributor may submit any documentation necessary to support 
21.25 	the information reported under this subdivision.

21.26 	Sec. 22. Minnesota Statutes 2024, section 62J.84, subdivision 15, is amended to read:
21.27 		Subd. 15.Registration requirements. Beginning Effective January 1, 2024 2026, a 
21.28 	reporting entity subject to this chapter shall register, or update existing registration 
21.29 	information, with the department in a form and manner prescribed by the commissioner by 
21.30 	January 30 of each year.

22.1 	Sec. 23. Minnesota Statutes 2024, section 62K.10, subdivision 2, is amended to read:
22.2 		Subd. 2.Primary care; mental health services; general hospital services Time and 
22.3 	distance standards. The maximum travel distance or time shall be the lesser of 30 miles 
22.4 	or 30 minutes to the nearest provider of each of the following services: primary care services, 
22.5 	mental health services, and general hospital services Health carriers must meet the time and 
22.6 	distance standards under Code of Federal Regulations, title 45, section 155.1050.

22.7 	Sec. 24. Minnesota Statutes 2024, section 62K.10, subdivision 5, is amended to read:
22.8 		Subd. 5.Waiver. (a) A health carrier may apply to the commissioner of health for a 
22.9 	waiver of the requirements in subdivision 2 or 3 if it is unable to meet the statutory 
22.10 	requirements. A waiver application must be submitted on a form provided by the 
22.11 	commissioner, must be accompanied by an application fee of $500 for each application to 
22.12 	waive the requirements in subdivision 2 or 3 for one or more provider types per county, and 
22.13 	must:
22.14 	(1) demonstrate with specific data that the requirement of subdivision 2 or 3 is not 
22.15 	feasible in a particular service area or part of a service area; and
22.16 	(2) include specific information as to the steps that were and will be taken to address 
22.17 	the network inadequacy, and, for steps that will be taken prospectively to address network 
22.18 	inadequacy, the time frame within which those steps will be taken.
22.19 	(b) The commissioner shall establish guidelines for evaluating waiver applications, 
22.20 	standards governing approval or denial of a waiver application, and standards for steps that 
22.21 	health carriers must take to address the network inadequacy and allow the health carrier to 
22.22 	meet network adequacy requirements within a reasonable time period. The commissioner 
22.23 	shall review each waiver application using these guidelines and standards and shall approve 
22.24 	a waiver application only if:
22.25 	(1) the standards for approval established by the commissioner are satisfied; and
22.26 	(2) the steps that were and will be taken to address the network inadequacy and the time 
22.27 	frame for taking these steps satisfy the standards established by the commissioner.
22.28 	(c) If, in its waiver application, a health carrier demonstrates to the commissioner that 
22.29 	there are no providers of a specific type or specialty in a county, the commissioner may 
22.30 	approve a waiver in which the health carrier is allowed to address network inadequacy in 
22.31 	that county by providing for patient access to providers of that type or specialty via telehealth, 
22.32 	as defined in section 62A.673, subdivision 2.
23.1 	(d) The waiver shall automatically expire after one year. Upon or prior to expiration of 
23.2 	a waiver, a health carrier unable to meet the requirements in subdivision 2 or 3 must submit 
23.3 	a new waiver application under paragraph (a) and must also submit evidence of steps the 
23.4 	carrier took to address the network inadequacy. When the commissioner reviews a waiver 
23.5 	application for a network adequacy requirement which has been waived for the carrier for 
23.6 	the most recent one-year period, the commissioner shall also examine the steps the carrier 
23.7 	took during that one-year period to address network inadequacy, and shall only approve a 
23.8 	subsequent waiver application that satisfies the requirements in paragraph (b), demonstrates 
23.9 	that the carrier took the steps it proposed to address network inadequacy, and explains why 
23.10 	the carrier continues to be unable to satisfy the requirements in subdivision 2 or 3.
23.11 	(e) Application fees collected under this subdivision shall be deposited in the state 
23.12 	government special revenue fund in the state treasury.

23.13 	Sec. 25. Minnesota Statutes 2024, section 62K.10, subdivision 6, is amended to read:
23.14 		Subd. 6.Referral centers. Subdivisions Subdivision 2 and 3 shall not apply if an enrollee 
23.15 	is referred to a referral center for health care services. A referral center is a medical facility 
23.16 	that provides highly specialized medical care, including but not limited to organ transplants. 
23.17 	A health carrier or preferred provider organization may consider the volume of services 
23.18 	provided annually, case mix, and severity adjusted mortality and morbidity rates in 
23.19 	designating a referral center.

23.20 	Sec. 26. Minnesota Statutes 2024, section 144.50, is amended by adding a subdivision to 
23.21 	read:
23.22 		Subd. 8.Controlling person. (a) "Controlling person" means an owner and the following 
23.23 	individuals and entities, if applicable:
23.24 	(1) each officer of the organization, including the chief executive officer and the chief 
23.25 	financial officer;
23.26 	(2) the hospital administrator; and
23.27 	(3) any managerial official.
23.28 	(b) Controlling person also means any entity or natural person who has any direct or 
23.29 	indirect ownership interest in:
23.30 	(1) any corporation, partnership, or other business association which is a controlling 
23.31 	person;
24.1 	(2) the land on which a hospital is located;
24.2 	(3) the structure in which a hospital is located;
24.3 	(4) any entity with at least a five percent mortgage, contract for deed, deed of trust, or 
24.4 	other security interest in the land or structure comprising a hospital; or
24.5 	(5) any lease or sublease of the land, structure, or facilities comprising a hospital.
24.6 	(c) Controlling person does not include:
24.7 	(1) a bank, savings bank, trust company, savings association, credit union, industrial 
24.8 	loan and thrift company, investment banking firm, or insurance company unless the entity 
24.9 	directly or through a subsidiary operates a hospital;
24.10 	(2) government and government-sponsored entities such as the United States Department 
24.11 	of Housing and Urban Development, Ginnie Mae, Fannie Mae, Freddie Mac, and the 
24.12 	Minnesota Housing Finance Agency which provide loans, financing, and insurance products 
24.13 	for housing sites;
24.14 	(3) an individual who is a state or federal official, a state or federal employee, or a 
24.15 	member or employee of the governing body of a political subdivision of the state or federal 
24.16 	government that operates one or more hospitals, unless the individual is also an officer, 
24.17 	owner, or managerial official of the hospital, receives any remuneration from a hospital, or 
24.18 	who is a controlling person not otherwise excluded in this subdivision;
24.19 	(4) a natural person who is a member of a tax-exempt organization under section 290.05, 
24.20 	subdivision 2, unless the individual is also a controlling person not otherwise excluded in 
24.21 	this subdivision; and
24.22 	(5) a natural person who owns less than five percent of the outstanding common shares 
24.23 	of a corporation:
24.24 	(i) whose securities are exempt by virtue of section 80A.45, clause (6); or
24.25 	(ii) whose transactions are exempt by virtue of section 80A.46, clause (7).

24.26 	Sec. 27. Minnesota Statutes 2024, section 144.555, subdivision 1a, is amended to read:
24.27 		Subd. 1a.Notice of closing, curtailing operations, relocating services, or ceasing to 
24.28 	offer certain services; hospitals. (a) The controlling persons of a hospital licensed under 
24.29 	sections 144.50 to 144.56 or a hospital campus must notify the commissioner of health, the 
24.30 	public, and others at least 182 days before the hospital or hospital campus voluntarily plans 
24.31 	to implement one of the scheduled actions listed in paragraph (b), unless the controlling 
25.1 	persons can demonstrate to the commissioner that meeting the advanced notice requirement 
25.2 	is not feasible and the commissioner approves a shorter advanced notice.
25.3 	(b) The following scheduled actions require advanced notice under paragraph (a):
25.4 	(1) ceasing operations;
25.5 	(2) curtailing operations to the extent that patients inpatients or emergency department 
25.6 	services must be relocated;
25.7 	(3) relocating the provision of inpatient health services or emergency department services
25.8 	to another hospital or another hospital campus; or
25.9 	(4) ceasing to offer inpatient maternity care and inpatient newborn care services, inpatient
25.10 	intensive care unit services, inpatient mental health services, or inpatient substance use 
25.11 	disorder treatment services.
25.12 	(c) A notice required under this subdivision must comply with the requirements in 
25.13 	subdivision 1d.
25.14 	(d) The commissioner shall cooperate with the controlling persons and advise them 
25.15 	about relocating the patients.
25.16 	(e) In this subdivision, "inpatient" means services that are provided to a person who has 
25.17 	been admitted to a hospital for bed occupancy.

25.18 	Sec. 28. Minnesota Statutes 2024, section 144.555, subdivision 1b, is amended to read:
25.19 		Subd. 1b.Public hearing. Within 30 days after receiving notice under subdivision 1a, 
25.20 	the commissioner shall conduct a public hearing on the scheduled cessation of operations, 
25.21 	curtailment of operations, relocation of health services, or cessation in offering health 
25.22 	services. The commissioner must provide adequate public notice of the hearing in a time 
25.23 	and manner determined by the commissioner. The commissioner must ensure that video 
25.24 	conferencing technology will be used to allow members of the public to view and participate 
25.25 	in the hearing. The controlling persons of the hospital or hospital campus must participate 
25.26 	in the public hearing. The public hearing must be held at a location that is within ten miles 
25.27 	of the hospital or hospital campus and which can accommodate anticipated public attendance
25.28 	or with the commissioner's approval as close as is practicable, and that is provided or arranged 
25.29 	by the hospital or hospital campus. Video conferencing technology must be used to allow 
25.30 	members of the public to view and participate in the hearing. The public hearing must 
25.31 	include:
26.1 	(1) an explanation by the controlling persons of the reasons for ceasing or curtailing 
26.2 	operations, relocating health services, or ceasing to offer any of the listed health services;
26.3 	(2) a description of the actions that controlling persons will take to ensure that residents 
26.4 	in the hospital's or campus's service area have continued access to the health services being 
26.5 	eliminated, curtailed, or relocated;
26.6 	(3) an opportunity for public testimony for at least one hour on the scheduled cessation 
26.7 	or curtailment of operations, relocation of health services, or cessation in offering any of 
26.8 	the listed health services, and on the hospital's or campus's plan to ensure continued access 
26.9 	to those health services being eliminated, curtailed, or relocated; and
26.10 	(4) an opportunity for the controlling persons to respond to questions from interested 
26.11 	persons.

26.12 	Sec. 29. Minnesota Statutes 2024, section 145.987, subdivision 1, is amended to read:
26.13 		Subdivision 1.Establishment; composition of advisory council. The health equity 
26.14 	advisory and leadership (HEAL) council consists of 18 members appointed by the 
26.15 	commissioner of health, including but not limited to members who will provide representation 
26.16 	from the following groups:
26.17 	(1) African American and African heritage communities;
26.18 	(2) Asian American and Pacific Islander communities;
26.19 	(3) Latina/o/x communities;
26.20 	(4) American Indian communities and Tribal governments and nations;
26.21 	(5) disability communities;
26.22 	(6) lesbian, gay, bisexual, transgender, and queer (LGBTQ) communities; and
26.23 	(7) representatives who reside outside the seven-county metropolitan area.

26.24 	Sec. 30. Minnesota Statutes 2024, section 145.987, subdivision 2, is amended to read:
26.25 		Subd. 2.Organization and meetings. (a) Terms, compensation, and removal of members 
26.26 	of the advisory council shall be as provided in section 15.059, subdivisions 2 to 4, except 
26.27 	that terms for advisory council members shall be for two years. Members may be reappointed 
26.28 	to serve up to two additional terms. Notwithstanding section 15.059, subdivision 6, the 
26.29 	advisory council shall not expire. The commissioner shall recommend appointments to 
27.1 	replace members vacating their positions in a timely manner, no more than three months 
27.2 	after the advisory council reviews panel recommendations.
27.3 	(b) The commissioner must convene meetings at least quarterly and must provide meeting 
27.4 	space and administrative support to the advisory council. Subcommittees may be convened 
27.5 	as necessary. Advisory council meetings are subject to the Open Meeting Law under chapter 
27.6 	13D.

27.7 	Sec. 31. REPEALER.
 27.8 	Minnesota Statutes 2024, section 62K.10, subdivision 3, is repealed.

APPENDIX 

Repealed Minnesota Statutes: S2477-2 

62K.10 GEOGRAPHIC ACCESSIBILITY; PROVIDER NETWORK ADEQUACY.Subd. 3.Other health services. 
The maximum travel distance or time shall be the lesser of 60 miles or 60 minutes to the nearest provider of specialty physician services, ancillary services, specialized hospital services, and all other health services not listed in subdivision 2.