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Minnesota Legislature

Office of the Revisor of Statutes

HF 177

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 01/17/2007

Current Version - as introduced

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A bill for an act
relating to health; establishing the fair share health care fund; requiring large
employers to report information on health care costs; requiring certain large
employers to make payments to the fair share health care fund; requiring the
designation and provision of subsidies for approved health coverage options;
proposing coding for new law in Minnesota Statutes, chapters 16A; 175.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [16A.726] ESTABLISHMENT OF FAIR SHARE HEALTH CARE
FUND.
new text end

new text begin The fair share health care fund is established in the state treasury to finance coverage
for uninsured workers. The fund may be used to support the operations of the medical
assistance and MinnesotaCare programs, and to help uninsured workers and their
dependents obtain health care or coverage through approved health coverage options, as
designated by the commissioner of labor and industry under section 175.45. The fund
is a direct appropriated special revenue fund. The commissioner shall deposit to the
credit of the fund money made available to the fund. Notwithstanding section 11A.20, all
investment income and all investment losses attributable to the investment of the fair share
health care fund not currently needed shall be credited to the fair share health care fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 2.

new text begin [175.40] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin For purposes of sections 175.40 to 175.45, the
following definitions apply.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of labor and
industry.
new text end

new text begin Subd. 3. new text end

new text begin Employee. new text end

new text begin "Employee" means a person who performs services for hire for
an employer, and includes all individuals employed at any site owned or operated by an
employer. "Employee" does not include an independent contractor.
new text end

new text begin Subd. 4. new text end

new text begin Employer. new text end

new text begin "Employer" has the meaning provided in section 177.23,
subdivision 6, except that "employer" does not include the federal or state governments,
or any political subdivision of the state.
new text end

new text begin Subd. 5. new text end

new text begin Health care expenditures. new text end

new text begin "Health care expenditures" means the amount
paid by an employer to provide health care benefits or reimburse employees for their
health care costs, including but not limited to payments for medical care, prescription
drugs, vision care, and medical savings accounts.
new text end

new text begin Subd. 6. new text end

new text begin Salaries. new text end

new text begin "Salaries" means the periodic compensation of employees, before
deductions for deferred compensation, supplemental retirement plans, or other voluntary
salary reduction programs, and also means "wages" and includes net income from fees.
new text end

new text begin Subd. 7. new text end

new text begin Wages. new text end

new text begin "Wages" has the meaning provided in section 177.23, subdivision
4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 3.

new text begin [175.41] EMPLOYER REPORTING REQUIREMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to all employers with 10,000
or more employees in the state.
new text end

new text begin Subd. 2. new text end

new text begin Reporting requirement. new text end

new text begin On January 1, 2008, and each January 1
thereafter, an employer shall submit to the commissioner, on a form and in the manner
approved by the commissioner:
new text end

new text begin (1) the employer's definition of full-time employee and part-time employee;
new text end

new text begin (2) the number of full-time and part-time employees of the employer in the state as
of January 1 of the previous year;
new text end

new text begin (3) the number of full-time and part-time employees eligible to receive health care
expenditures, and the number of full-time and part-time employees receiving health care
expenditures from the employer;
new text end

new text begin (4) the amount spent by the employer in the previous calendar year on health care
expenditures for employees in the state; and
new text end

new text begin (5) the percentage of payroll that was spent by the employer in the previous calendar
year on health care expenditures for employees in the state.
new text end

new text begin Subd. 3. new text end

new text begin Additional requirements. new text end

new text begin The information required shall:
new text end

new text begin (1) be designated in a report signed by the principal executive officer or an individual
performing a similar function; and
new text end

new text begin (2) include an affidavit under penalty of perjury that the information required under
subdivision 2 was reviewed by the signing officer, was based on the officer's knowledge,
and does not contain any untrue statement of a material fact or omit a material fact
necessary to make the statement.
new text end

new text begin Subd. 4. new text end

new text begin Exemption. new text end

new text begin When calculating the percentage of payroll under subdivision
2, clause (5), or the amount spent on health care expenditures under subdivision 2, clause
(4), an employer may exempt wages and salaries paid to an employee who is enrolled in
or eligible for Medicare.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 4.

new text begin [175.42] REPORT AND MINIMUM PERCENTAGES.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner's report. new text end

new text begin On or before March 15 of each year, the
commissioner shall report to the legislature on:
new text end

new text begin (1) the name of each nonprofit and for-profit employer with 10,000 or more
employees in the state;
new text end

new text begin (2) the employer's definition of full-time employee and part-time employee;
new text end

new text begin (3) the number of full-time and part-time employees;
new text end

new text begin (4) the number of full-time and part-time employees eligible to receive health care
expenditures;
new text end

new text begin (5) the number of full-time and part-time employees receiving health care
expenditures from the employer;
new text end

new text begin (6) the source of health care benefits for those eligible full-time and part-time
employees not receiving health care expenditures through an employer subject to reporting;
new text end

new text begin (7) the percent of total wages and salaries each nonprofit and for-profit employer
with 10,000 or more employees in the state spends on health care expenditures;
new text end

new text begin (8) the average percent of total wages and salaries for-profit employers with 10,000
or more employees in the state spend on health care expenditures; and
new text end

new text begin (9) the average percent of total wages and salaries nonprofit employers with 10,000
or more employees in the state spend on health care expenditures.
new text end

new text begin Subd. 2. new text end

new text begin Minimum percentages. new text end

new text begin (a) This subdivision applies to employers with
10,000 or more employees in the state.
new text end

new text begin (b) The minimum percentage for-profit employers shall spend on health care
expenditures is 10 percent, for purposes of determining whether an employer must make a
payment under section 175.43 based on health care expenditures reported for calendar
year 2006. The percentage determined in subdivision 1, clause (8), shall become the
minimum percentage for-profit employers shall spend on health care expenditures, for
purposes of determining whether an employer must make a payment under section 175.43
based on health care expenditures reported for calendar years 2007 and beyond.
new text end

new text begin (c) The minimum percentage nonprofit employers shall spend on health care
expenditures is 8 percent, for purposes of determining whether an employer must make a
payment under section 175.43 based on health care expenditures reported for calendar
year 2006. The percentage determined in subdivision 1, clause (9), shall become the
minimum percentage nonprofit employers shall spend on health care expenditures, for
purposes of determining whether an employer must make a payment under section 175.43
based on health care expenditures reported for calendar years 2007 and beyond.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 5.

new text begin [175.43] PAYMENT TO THE fair share health care fund.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin This section applies to all employers with 10,000
or more employees in the state.
new text end

new text begin Subd. 2. new text end

new text begin For-profit employers. new text end

new text begin An employer that is not organized as a nonprofit
organization and does not spend at least the minimum percentage of total wages and
salaries on health care expenditures, as specified in section 175.42, subdivision 2,
paragraph (b), shall pay to the commissioner an amount equal to the difference between
what the employer spends for health care expenditures and an amount equal to the
minimum percentage.
new text end

new text begin Subd. 3. new text end

new text begin Nonprofit employers. new text end

new text begin An employer that is organized as a nonprofit
organization and does not spend at least the minimum percentage of total wages and
salaries on health care expenditures, as specified in section 175.42, subdivision 2,
paragraph (c), shall pay to the commissioner an amount equal to the difference between
what the employer spends for health care expenditures and an amount equal to the
minimum percentage.
new text end

new text begin Subd. 4. new text end

new text begin Additional requirement. new text end

new text begin An employer may not deduct any payment made
under subdivision 2 or 3 from the wages of an employee.
new text end

new text begin Subd. 5. new text end

new text begin Payment timeline; deposit of payment. new text end

new text begin An employer shall make the
payment required under this section to the commissioner on a periodic basis as determined
by the commissioner. The commissioner shall deposit payments received under this
section into the fair share health care fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 6.

new text begin [175.44] PENALTIES FOR LATE REPORTING AND NONPAYMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Late reporting. new text end

new text begin Failure to report in accordance with section 175.41
shall result in the imposition by the commissioner of a civil penalty of $1,000 for each
day that the report is not timely filed. The penalties shall be deposited in the fair share
health care fund.
new text end

new text begin Subd. 2. new text end

new text begin Nonpayment. new text end

new text begin Failure to make the payment required under section 175.43
shall result in the imposition by the secretary of a civil penalty of $500,000. The penalties
shall be deposited in the fair share health care fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end

Sec. 7.

new text begin [175.45] APPROVED HEALTH COVERAGE OPTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Designation. new text end

new text begin The commissioner of labor and industry, in consultation
with the commissioners of health, human services, and commerce, shall designate
approved health coverage options for workers and dependents, including, but not limited
to, workers whose employers have paid assessments to the fair share health care fund.
Workers and dependents purchasing an approved health coverage option shall be eligible
for subsidy payments from the fair share health care fund. In making this designation, the
commissioners shall consider the extent to which a coverage option provides coverage that
is affordable and accessible, and the extent to which the coverage option is community
rated, guaranteed issued, and has benefits actuarially equivalent to the Federal Employees
Health Benefit Plan standard Blue Cross Blue Shield Option.
new text end

new text begin Subd. 2. new text end

new text begin Subsidy program. new text end

new text begin The commissioners shall develop a program to provide
subsidies for workers and dependents purchasing an approved coverage option, and shall
present recommendations and draft legislation to implement the program to the legislature
by December 15, 2008.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective January 1, 2008.
new text end