HF 1664

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2015 04:34pm

A bill for an act
relating to taxation; MNsure; providing a contingent credit for health insurance
coverage; requiring the state to transition to a federally facilitated exchange;
appropriating money; proposing coding for new law in Minnesota Statutes,
chapter 290; repealing Minnesota Statutes 2014, sections 62V.01; 62V.02;
62V.03; 62V.04; 62V.05; 62V.06; 62V.07; 62V.08; 62V.09; 62V.10; 62V.11.

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

Section 1.

new text begin [290.0682] PREMIUM SUPPORT CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin A qualified individual is allowed a credit against the
tax imposed under this chapter for the taxable year. The credit equals the dollar amount
of the credit to which the qualified individual would be entitled under section 36B of the
Internal Revenue Code for the taxable year, if the qualified individual had enrolled in
the qualified health plan through a state exchange established under section 1311 of the
Affordable Care Act (Public Laws 111-148 and 111-152). The credit amount equals the
final total federal credit after reconciliation with any advance payments of the federal credit.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Coverage month" has the meaning given in section 36B(c)(2) of the Internal
Revenue Code, except that the requirement that the individual (spouse, dependent, or
combination of them) enroll in the qualified health plan through an exchange established
under section 1311 of the Affordable Care Act, does not apply.
new text end

new text begin (c) "Qualified individual" means an individual who for the taxable year:
new text end

new text begin (1) is an applicable taxpayer as that term is defined in section 36B(c)(1) of the
Internal Revenue Code;
new text end

new text begin (2) is a resident of Minnesota;
new text end

new text begin (3) pays premiums for a coverage month; and
new text end

new text begin (4) does not qualify for a federal credit under section 36B of the Internal Revenue
Code because the individual did not enroll in a qualified health plan through a state
exchange established under section 1311 of the Affordable Care Act.
new text end

new text begin Subd. 3. new text end

new text begin Refundable. new text end

new text begin If the amount of credit that the taxpayer is eligible to receive
under this section exceeds the liability for tax, the commissioner shall refund the excess
to the taxpayer.
new text end

new text begin Subd. 4. new text end

new text begin Contingent implementation. new text end

new text begin The commissioner of revenue shall
implement this section only if the United States Supreme Court rules in King v. Burwell
(No. 14-114) that persons obtaining qualified health plan coverage through a federally
facilitated marketplace do not qualify for advanced premium tax credits.
new text end

new text begin Subd. 5. new text end

new text begin Sunset. new text end

new text begin If implemented, this section shall sunset January 1, 2020.
new text end

new text begin Subd. 6. new text end

new text begin Study. new text end

new text begin If the commissioner of revenue implements this section as provided
under subdivision 4, the commissioners of revenue and human services shall study and
make recommendations to the legislature on whether the continuation of premium support
credits beyond December 31, 2019, is necessary to ensure the availability of affordable
health care coverage to persons purchasing coverage through the federally facilitated
marketplace. If continuation is recommended, the commissioners shall also evaluate and
recommend state funding options for premium support credits. The commissioners shall
present evaluation results and recommendations to the legislature by December 15, 2018.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective on the date advanced premium tax
credits are no longer available to persons obtaining qualified health plan coverage through
a federally facilitated marketplace, as determined in a ruling by the United States Supreme
Court.
new text end

Sec. 2.

new text begin ESTABLISHMENT OF FEDERALLY FACILITATED MARKETPLACE.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin The commissioner of commerce, in cooperation
with the secretary of Health and Human Services, shall establish a federally facilitated
marketplace for Minnesota, for coverage beginning January 1, 2017. The federally
facilitated marketplace shall take the place of MNsure, established under Minnesota
Statutes, chapter 62V. In working with the secretary of Health and Human Services to
develop the federally facilitated marketplace, the commissioner of commerce shall:
new text end

new text begin (1) seek to incorporate, where appropriate and cost effective, elements of the
MNsure eligibility determination system;
new text end

new text begin (2) regularly consult with stakeholder groups, including but not limited to
representatives of state agencies, health care providers, health plan companies, brokers,
and consumers; and
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new text begin (3) seek all available federal grants and funds for state planning and development
costs.
new text end

new text begin Subd. 2. new text end

new text begin Implementation plan; draft legislation. new text end

new text begin The commissioner of commerce,
in consultation with the commissioner of human services, the chief information officer
of MN.IT, and the MNsure board, shall develop and present to the 2016 legislature an
implementation plan for conversion to a federally facilitated marketplace. The plan must
include draft legislation for any changes in state law necessary to implement a federally
facilitated marketplace, including but not limited to necessary changes to Laws 2013,
chapter 84, and technical and conforming changes related to the repeal of Minnesota
Statutes, chapter 62V.
new text end

new text begin Subd. 3. new text end

new text begin Vendor contract. new text end

new text begin The commissioner of commerce, in consultation with
the commissioner of human services, the chief information officer of MN.IT, and the
MNsure board, shall contract with a vendor to provide technical assistance in developing
and implementing the plan for conversion to a federally facilitated marketplace.
new text end

Sec. 3. new text begin APPROPRIATION.
new text end

new text begin $....... is appropriated from the general fund to the commissioner of commerce for
the biennium ending June 30, 2017, to contract with a vendor as required under section 2.
new text end

Sec. 4. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2014, sections 62V.01; 62V.02; 62V.03; 62V.04; 62V.05; 62V.06;
62V.07; 62V.08; 62V.09; 62V.10; and 62V.11, new text end new text begin are repealed, effective January 1, 2017.
new text end