2nd Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to state government; appropriating money for 1.3 economic development and certain agencies of state 1.4 government; establishing and modifying programs; 1.5 regulating activities and practices; modifying fees; 1.6 eliminating certain boards; transferring regulatory 1.7 authority over health maintenance organizations and 1.8 similar entities to the commissioner of commerce; 1.9 making conforming changes; requiring reports; amending 1.10 Minnesota Statutes 1998, sections 45.0295; 53A.03; 1.11 53A.05, subdivision 1; 60A.14, subdivision 1; 60A.23, 1.12 subdivision 8; 60A.71, subdivision 7; 60B.02; 60B.03, 1.13 subdivisions 2 and 4; 60B.15; 60B.20; 60G.01, 1.14 subdivisions 2 and 4; 60K.06, subdivision 2; 62A.61; 1.15 62D.01, subdivision 2; 62D.02, subdivision 3, and by 1.16 adding a subdivision; 62D.03, subdivisions 1, 3, and 1.17 4; 62D.04, subdivisions 1, 2, 4, and by adding a 1.18 subdivision; 62D.05, subdivision 6; 62D.06, 1.19 subdivision 2; 62D.07, subdivisions 2, 3, and 10; 1.20 62D.08, subdivisions 1, 2, 3, 4, and 5; 62D.09, 1.21 subdivisions 1 and 8; 62D.10, subdivision 4; 62D.11, 1.22 subdivisions 1b, 2, 3, and by adding a subdivision; 1.23 62D.12, subdivisions 1, 2, and 9; 62D.121, 1.24 subdivisions 3a and 7; 62D.14, subdivisions 1, 3, 4, 1.25 5, and 6; 62D.15, subdivisions 1 and 4; 62D.16, 1.26 subdivisions 1 and 2; 62D.17, subdivisions 1, 3, 4, 1.27 and 5; 62D.18, subdivisions 1 and 7; 62D.19; 62D.20, 1.28 subdivision 1; 62D.21; 62D.211; 62D.22, subdivisions 4 1.29 and 10; 62D.24; 62D.30, subdivisions 1 and 3; 62L.02, 1.30 subdivision 8; 62L.05, subdivision 12; 62L.08, 1.31 subdivisions 10 and 11; 62M.11; 62M.16; 62N.02, 1.32 subdivision 4; 62N.26; 62N.31, subdivision 1; 62Q.01, 1.33 subdivision 2; 62Q.07; 62Q.075, subdivision 4; 1.34 62Q.105, subdivisions 6 and 7; 62Q.11; 62Q.22, 1.35 subdivisions 2, 6, and 7; 62Q.32; 62Q.51, subdivision 1.36 3; 62Q.525, subdivision 3; 62R.04, subdivision 5; 1.37 62R.25; 62T.01, subdivision 4; 65B.48, subdivision 3; 1.38 70A.14, subdivision 4; 72A.139, subdivision 2; 72B.04, 1.39 subdivision 10; 79.255, subdivision 10; 80A.28, 1.40 subdivision 1; 82A.08, subdivision 2; 82A.16, 1.41 subdivisions 2 and 6; 116J.415, subdivision 5; 1.42 116J.421, subdivision 3, and by adding subdivisions; 1.43 116J.63, subdivision 4; 116J.8745, subdivisions 1 and 1.44 2; 116L.03, subdivision 5; 116L.04, subdivision 1a; 1.45 116L.06, subdivision 4; 175.17; 176.181, subdivision 1.46 2a; 237.295, subdivision 1; 268.022, subdivision 1; 2.1 268.98, subdivision 3; 298.22, subdivision 2; 326.244, 2.2 subdivision 2, and by adding a subdivision; 326.86, 2.3 subdivision 1; 446A.072, subdivision 4; 462A.20, 2.4 subdivision 2, and by adding a subdivision; 462A.204, 2.5 by adding a subdivision; 462A.209; and 462A.21, by 2.6 adding a subdivision; proposing coding for new law in 2.7 Minnesota Statutes, chapters 116J; and 178; repealing 2.8 Minnesota Statutes 1998, sections 44A.001; 44A.01; 2.9 44A.02; 44A.023; 44A.025; 44A.031; 44A.0311; 44A.06; 2.10 44A.08; 44A.11; 62D.18; 62L.11, subdivision 2; 62Q.45, 2.11 subdivision 1; 138A.01; 138A.02; 138A.03; 138A.04; 2.12 138A.05; 138A.06; 341.01; 341.02; 341.04; 341.045; 2.13 341.05; 341.06; 341.07; 341.08; 341.09; 341.10; 2.14 341.11; 341.115; 341.12; 341.13; 341.15; 462A.28; 2.15 469.305; 469.306; 469.307; 469.308; and 469.31; Laws 2.16 1998, chapter 404, section 13, subdivision 5. 2.17 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 2.18 ARTICLE 1 2.19 APPROPRIATIONS 2.20 Section 1. [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 2.21 The sums shown in the columns marked "APPROPRIATIONS" are 2.22 appropriated from the general fund, or another named fund, to 2.23 the agencies and for the purposes specified in this act, to be 2.24 available for the fiscal years indicated for each purpose. The 2.25 figures "2000" and "2001," where used in this act, mean that the 2.26 appropriation or appropriations listed under them are available 2.27 for the year ending June 30, 2000, or June 30, 2001, 2.28 respectively. The term "first year" means the fiscal year 2.29 ending June 30, 2000, and "second year" means the fiscal year 2.30 ending June 30, 2001. 2.31 SUMMARY BY FUND 2.32 2000 2001 TOTAL 2.33 General $192,698,000 $188,779,000 $381,477,000 2.34 Petroleum Tank 2.35 Cleanup 1,015,000 1,045,000 2,060,000 2.36 Environmental Fund 700,000 700,000 1,400,000 2.37 TANF 6,000,000 4,000,000 10,000,000 2.38 Trunk Highway 745,000 766,000 1,511,000 2.39 Workers' 2.40 Compensation 22,217,000 22,439,000 44,656,000 2.41 Special Revenue 875,000 775,000 1,650,000 2.42 TOTAL $224,250,000 $218,504,000 $442,754,000 2.43 APPROPRIATIONS 2.44 Available for the Year 2.45 Ending June 30 2.46 2000 2001 3.1 Sec. 2. TRADE AND ECONOMIC DEVELOPMENT 3.2 Subdivision 1. Total 3.3 Appropriation 42,137,000 38,791,000 3.4 Summary by Fund 3.5 General 39,192,000 35,825,000 3.6 Trunk Highway 745,000 766,000 3.7 TANF 1,500,000 1,500,000 3.8 Environmental Fund 700,000 700,000 3.9 The amounts that may be spent from this 3.10 appropriation for each program are 3.11 specified in the following subdivisions. 3.12 Subd. 2. Business and Community 3.13 Development 23,646,000 20,922,000 3.14 Summary by Fund 3.15 General 21,446,000 18,722,000 3.16 TANF 1,500,000 1,500,000 3.17 Environmental Fund 700,000 700,000 3.18 $4,017,000 the first year and 3.19 $4,017,000 the second year are for 3.20 Minnesota investment fund grants. 3.21 $400,000 the first year and $400,000 3.22 the second year are for grants to 3.23 Advantage Minnesota, Inc. This is a 3.24 one-time appropriation and is not added 3.25 to the agency's base. The funds are 3.26 available only if matched on at least a 3.27 dollar-for-dollar basis from other 3.28 sources. The commissioner may release 3.29 the funds only upon: 3.30 (1) certification that matching funds, 3.31 in cash, from each participating 3.32 organization are available; and 3.33 (2) review and approval by the 3.34 commissioner of the proposed operations 3.35 plan of Advantage Minnesota, Inc. for 3.36 the biennium. 3.37 $6,418,000 the first year and 3.38 $6,418,000 the second year are for the 3.39 job skills partnership program. If the 3.40 appropriation for either year is 3.41 insufficient, the appropriation for the 3.42 other year is available. Of this 3.43 appropriation, $500,000 in each year is 3.44 a one-time appropriation. This 3.45 appropriation does not cancel. 3.46 $1,500,000 the first year and 3.47 $1,500,000 the second year are 3.48 appropriated from the state's federal 3.49 TANF block grant under Title I of 3.50 Public Law Number 104-193 to the 3.51 commissioner of human services, to be 3.52 transferred to the commissioner of 4.1 trade and economic development for the 4.2 pathways program under Minnesota 4.3 Statutes, section 116L.04, subdivision 4.4 1a. It is the intention of the 4.5 legislature that the general fund base 4.6 funding to the pathways program be 4.7 $1,500,000 per year in the 2002-2003 4.8 biennium. 4.9 $537,000 the first year and $537,000 4.10 the second year are from fees collected 4.11 under Minnesota Statutes, section 4.12 446A.04, subdivision 5, to administer 4.13 the programs of the public facilities 4.14 authority. 4.15 $2,000,000 the first year is for 4.16 wastewater infrastructure supplemental 4.17 assistance grants to municipalities 4.18 under Minnesota Statutes, section 4.19 446A.072. This is a one-time 4.20 appropriation and is not added to the 4.21 agency's base. 4.22 $200,000 the first year and $200,000 4.23 the second year is for community 4.24 resources program allocations to cities 4.25 under Minnesota Statutes, sections 4.26 466A.01 to 466A.08, provided that only 4.27 the cities of Minneapolis and St. Paul 4.28 will be eligible to receive allocations 4.29 from this appropriation. 4.30 $100,000 the first year and $100,000 4.31 the second year are for grants to the 4.32 board of the rural policy and 4.33 development center for operation of the 4.34 center. 4.35 $155,000 the first year and $155,000 4.36 the second year are for grants to the 4.37 metropolitan economic development 4.38 association. 4.39 $187,000 the first year and $188,000 4.40 the second year are for grants to Women 4.41 Venture. This is a one-time 4.42 appropriation and is not added to the 4.43 agency's base. 4.44 $350,000 the first year and $350,000 4.45 the second year are for grants to the 4.46 St. Paul rehabilitation center for its 4.47 current programs, including those 4.48 related to developing job-seeking 4.49 skills and workplace orientation, 4.50 intensive job development, functional 4.51 work English, and on-site job coaching. 4.52 $250,000 is for a grant to the city of 4.53 Windom to provide loans to assist an 4.54 expanding business. This is a one-time 4.55 appropriation and is not added to the 4.56 agency's base. 4.57 $350,000 is for the biennium ending 4.58 June 30, 2001, for a grant to the Camp 4.59 Heartland center. The grant may be 4.60 used for phase II capital expenditures 4.61 including, without limitation, a septic 4.62 system upgrade and bath/shower house 5.1 construction, construction of a family 5.2 lodge, renovation of a medical 5.3 facility, construction of staff housing 5.4 and offices, or expansion and upgrade 5.5 of the dining room and kitchen. This 5.6 is a one-time appropriation and is not 5.7 added to the agency's base. 5.8 $2,800,000 in each year for purposes of 5.9 the contamination cleanup and 5.10 development grant program under 5.11 Minnesota Statutes, sections 116J.551 5.12 to 116J.558. 5.13 $15,000 is for a grant to the city of 5.14 Lake Benton for planning costs 5.15 associated with a new visitor center 5.16 and railroad depot building. This is a 5.17 one-time appropriation and is not added 5.18 to the agency's base. 5.19 $100,000 the first year and $100,000 5.20 the second year are for microenterprise 5.21 technical assistance under Minnesota 5.22 Statutes, section 116J.8745. 5.23 $50,000 in 2000 is for a grant to the 5.24 Chatfield brass band music lending 5.25 library. The money must be used for 5.26 computer hardware and software to 5.27 catalog the music collection and create 5.28 a Web site. This is a one-time 5.29 appropriation and must not be added to 5.30 the agency's budget base. 5.31 $50,000 in fiscal year 2000 is for a 5.32 one-time grant to the Duluth Economic 5.33 Development Authority for the purchase 5.34 and installation of railroad ties to 5.35 improve the Lake Superior Mississippi 5.36 Railroad scenic railway along the St. 5.37 Louis Bay in Duluth. 5.38 $100,000 is appropriated for a grant to 5.39 the city of Lanesboro for 5.40 predevelopment costs for the Root River 5.41 Regional Arts Center. This is a 5.42 one-time appropriation and is not added 5.43 to the agency's budget base. 5.44 $25,000 the first year and $25,000 the 5.45 second year is for grants to county and 5.46 district agricultural societies and 5.47 associations that are eligible to 5.48 receive aid under Minnesota Statutes, 5.49 section 38.02. The commissioner shall 5.50 administer this appropriation pursuant 5.51 to a competitive grant process. 5.52 Subd. 3. Minnesota Trade Office 5.53 2,275,000 2,318,000 5.54 Subd. 4. Tourism 5.55 10,904,000 10,909,000 5.56 Summary by Fund 5.57 General 10,159,000 10,143,000 6.1 Trunk Highway 745,000 766,000 6.2 To develop maximum private sector 6.3 involvement in tourism, $3,500,000 the 6.4 first year and $3,500,000 the second 6.5 year of the amounts appropriated for 6.6 marketing activities are contingent on 6.7 receipt of an equal contribution from 6.8 nonstate sources that have been 6.9 certified by the commissioner. Up to 6.10 one-half of the match may be given in 6.11 in-kind contributions. 6.12 In order to maximize marketing grant 6.13 benefits, the commissioner must give 6.14 priority for joint venture marketing 6.15 grants to organizations with year-round 6.16 sustained tourism activities. For 6.17 programs and projects submitted, the 6.18 commissioner must give priority to 6.19 those that encompass two or more areas 6.20 or that attract nonresident travelers 6.21 to the state. 6.22 If an appropriation for either year for 6.23 grants is not sufficient, the 6.24 appropriation for the other year is 6.25 available for it. 6.26 The commissioner may use grant dollars 6.27 or the value of in-kind services to 6.28 provide the state contribution for the 6.29 partnership program. 6.30 Any unexpended money from general fund 6.31 appropriations made under this 6.32 subdivision does not cancel but must be 6.33 placed in a special advertising account 6.34 for use by the office of tourism to 6.35 purchase additional media. 6.36 $829,000 the first year and $829,000 6.37 the second year are for the Minnesota 6.38 film board. This appropriation is 6.39 available only upon receipt by the 6.40 board of $1 in matching contributions 6.41 of money or in-kind from nonstate 6.42 sources for every $3 provided by this 6.43 appropriation. Of this amount, 6.44 $500,000 the first year and $500,000 6.45 the second year are for grants to the 6.46 Minnesota film board for a film 6.47 production jobs fund to stimulate 6.48 feature film production in Minnesota. 6.49 This appropriation is to reimburse film 6.50 producers for two to five percent of 6.51 documented wages which they paid to 6.52 Minnesotans for film production after 6.53 January 1, 1999. 6.54 $100,000 the first year is for a grant 6.55 to promote tourism in the Mille Lacs 6.56 area. This is a one-time appropriation 6.57 and is not added to the agency's base. 6.58 Subd. 5. Administration 6.59 3,897,000 3,192,000 6.60 $750,000 the first year is appropriated 6.61 for enhancements to the journey travel 7.1 destination system. The funds are 7.2 available only if matched in cash on at 7.3 least a dollar-for-dollar basis from 7.4 other sources. This is a one-time 7.5 appropriation and is available until 7.6 spent. 7.7 Subd. 6. Information and Analysis 7.8 1,415,000 1,450,000 7.9 Sec. 3. MINNESOTA TECHNOLOGY, INC. 5,830,000 5,630,000 7.10 $5,055,000 the first year and 7.11 $5,055,000 the second year are for 7.12 transfer from the general fund to the 7.13 Minnesota Technology, Inc. fund. It is 7.14 the intention of the legislature that 7.15 base funding of $6,105,000 per year is 7.16 intended to be restored in the 7.17 2002-2003 biennium. 7.18 $75,000 the first year and $75,000 the 7.19 second year are for grants to the 7.20 Minnesota inventors congress. 7.21 $100,000 the first year and $100,000 7.22 the second year are for grants to the 7.23 Minnesota cold weather research 7.24 center. By January 15, 2001, the 7.25 center will report to the legislature 7.26 on (1) the sources and amounts of its 7.27 nonstate matching funds, and (2) the 7.28 effectiveness of its program in 7.29 achieving quantifiable economic 7.30 development benefits to the state. 7.31 $600,000 the first year and $400,000 7.32 the second year are for grants to 7.33 Minnesota Project Innovation. The 7.34 legislature intends to reduce the base 7.35 appropriation for this program to 7.36 $200,000 in 2002 and to eliminate the 7.37 base appropriation in 2003. Any 7.38 amounts in excess of those stated 7.39 included in a budget should include a 7.40 change item. 7.41 Sec. 4. ECONOMIC SECURITY 7.42 Subdivision 1. Total 7.43 Appropriation 45,140,000 38,371,000 7.44 Summary by Fund 7.45 General 43,865,000 37,596,000 7.46 Special Revenue 775,000 775,000 7.47 TANF Block Grant 500,000 -0- 7.48 Subd. 2. Rehabilitation Services 22,502,000 22,013,000 7.49 Summary by Fund 7.50 General 22,002,000 22,013,000 7.51 TANF 500,000 -0- 7.52 $1,800,000 the first year and 7.53 $1,800,000 the second year are for 8.1 centers for independent living. The 8.2 commissioner is not required to 8.3 allocate this appropriation equally 8.4 among all centers. 8.5 $500,000 the first year is to provide 8.6 welfare-to-work extended employment 8.7 services to welfare recipients with 8.8 severe impairment to employment, as 8.9 defined in Minnesota Statutes, section 8.10 268A.15, subdivision 1a. Of this 8.11 appropriation, up to five percent is 8.12 for administrative costs. This is a 8.13 one-time appropriation and may not be 8.14 added to the budget base in the 8.15 biennium ending June 30, 2003. This 8.16 appropriation is from the state's 8.17 federal TANF block grant under Public 8.18 Law Number 104-193 to the commissioner 8.19 of human services, to be transferred to 8.20 the commissioner of economic security. 8.21 This appropriation is available until 8.22 June 30, 2001. 8.23 $825,000 the first year and $827,000 8.24 the second year are for employment 8.25 support services for persons with 8.26 mental illness authorized under 8.27 Minnesota Statutes, section 268A.13. 8.28 $250,000 the first year and $250,000 8.29 the second year is for a grant to the 8.30 Minnesota employment center for deaf 8.31 and hard-of-hearing people. 8.32 In fiscal year 2000, $975,000 is to 8.33 increase the reimbursement rates for 8.34 extended employment services. 8.35 Effective for services rendered on or 8.36 after July 1, 1999, the commissioner 8.37 shall increase by ten percent all 8.38 reimbursement rates under Minnesota 8.39 Rules, part 3300.2035, subpart 6, item 8.40 A, for extended employment services for 8.41 persons with severe disabilities or 8.42 related conditions under Minnesota 8.43 Statutes, section 268A.15. This amount 8.44 is added to the agency's base. 8.45 $100,000 the first year and $100,000 8.46 the second year are for a grant to 8.47 Advocating Change Together, Inc., 8.48 (ACT). The grant must be used for the 8.49 training of individuals with 8.50 developmental and other mental health 8.51 disabilities, the maintenance of 8.52 related data, or technical assistance 8.53 for work advancement or additional 8.54 workforce training. No part of this 8.55 grant may be applied to litigation 8.56 costs, or used for legal advocacy or 8.57 legal assistance purposes. This is a 8.58 one-time appropriation and is available 8.59 until June 30, 2001. 8.60 Subd. 3. State Services for the Blind 8.61 6,114,000 4,817,000 8.62 $1,400,000 the first year is 8.63 appropriated to convert the 9.1 communication center to digital 9.2 technology and move the radio talking 9.3 book program to a different frequency. 9.4 The funds are available only if matched 9.5 in cash on at least a dollar-for-dollar 9.6 basis from private sources. This is a 9.7 one-time appropriation and is available 9.8 until June 30, 2001. 9.9 The appropriation in the second year is 9.10 not available until the commissioners 9.11 of finance and economic security have 9.12 reviewed the operation of the state 9.13 services for the blind, determined why 9.14 a budget deficiency occurred in fiscal 9.15 year 1999 and what steps should be 9.16 taken to prevent a future deficiency 9.17 and reported their findings to the 9.18 legislature. 9.19 Subd. 4. Workforce Preparation 9.20 16,474,000 11,491,000 9.21 Summary by Fund 9.22 General 15,699,000 10,716,000 9.23 Special Revenue 775,000 775,000 9.24 $775,000 the first year and $775,000 9.25 the second year are for job training 9.26 programs under Minnesota Statutes, 9.27 sections 268.60 to 268.64. 9.28 Notwithstanding Minnesota Statutes, 9.29 section 268.022, this appropriation is 9.30 from the workforce investment fund. No 9.31 transfers from the workforce investment 9.32 fund shall be made for this purpose 9.33 after June 30, 2003. In preparing the 9.34 budget for fiscal years beginning after 9.35 June 30, 2003, the commissioner of 9.36 finance must reflect in the budget 9.37 documents that no transfers will be 9.38 made. 9.39 $1,822,000 the first year and 9.40 $1,827,000 the second year are for 9.41 displaced homemaker programs under 9.42 Minnesota Statutes, section 268.96. 9.43 The commissioner shall prepare and 9.44 report to the legislature a plan for a 9.45 sliding scale fee structure for this 9.46 program. 9.47 $5,000,000 the first year is 9.48 appropriated to match available United 9.49 States Department of Labor 9.50 Welfare-to-Work funds. 9.51 $1,425,000 the first year and 9.52 $1,425,000 the second year are for 9.53 youth intervention programs under 9.54 Minnesota Statutes, section 268.30. 9.55 Funding from this appropriation may be 9.56 used to expand existing programs to 9.57 serve unmet needs and to create new 9.58 programs in underserved areas. 9.59 $851,000 the first year and $852,000 9.60 the second year are for the Youthbuild 10.1 program under Minnesota Statutes, 10.2 sections 268.361 to 268.366. A 10.3 Minnesota Youthbuild program funded 10.4 under this section as authorized in 10.5 Minnesota Statutes, sections 268.361 to 10.6 268.367, qualifies as an approved 10.7 training program under Minnesota Rules, 10.8 part 5200.0930, subpart 1. 10.9 $116,000 the first year and $116,000 10.10 the second year are appropriated for 10.11 youth violence prevention programs to 10.12 match the federal juvenile 10.13 accountability incentive block grant. 10.14 This is a one-time appropriation. 10.15 Notwithstanding Minnesota Statutes, 10.16 section 268.022, subdivision 2, the 10.17 commissioner of finance shall transfer 10.18 to the general fund from the dedicated 10.19 fund $19,500,000 the first year and 10.20 $9,500,000 the second year of the money 10.21 collected through the special 10.22 assessment established in Minnesota 10.23 Statutes, section 268.022, subdivision 10.24 1. No transfers from the dedicated 10.25 fund to the general fund are to be made 10.26 after June 30, 2003. If the 10.27 commissioner of finance prepares a 10.28 budget for any period beginning after 10.29 June 30, 2003, that calls for such a 10.30 transfer, the budget documents must 10.31 reflect a change item. 10.32 Subd. 5. Workforce Exchange 10.33 50,000 50,000 10.34 The commissioner of economic security 10.35 is directed to prepare a plan to reduce 10.36 the number of line managers and reduce 10.37 the costs of operation in workforce 10.38 centers. The legislature finds it 10.39 unacceptable to have up to five 10.40 managers in individual workforce 10.41 centers. 10.42 $50,000 the first year and $50,000 the 10.43 second year is appropriated for asset 10.44 preservation and facility repair. 10.45 $348,625 the first year is for systems 10.46 development for electronic commerce to 10.47 improve communication with customers of 10.48 the job service and reemployment 10.49 insurance program. In accordance with 10.50 Minnesota Statutes, section 268.194, 10.51 subdivision 5, this money is a one-time 10.52 appropriation from federal money made 10.53 available specifically for that purpose 10.54 under United States Code, title 42, 10.55 section 1103, also known as the Reed 10.56 Act. This appropriation is available 10.57 for two years after the date of 10.58 enactment. 10.59 $2,000,000 the first year and 10.60 $2,000,000 the second year are for 10.61 systems development for electronic 10.62 commerce in the reemployment insurance 10.63 program to improve communication with 11.1 employers. In accordance with 11.2 Minnesota Statutes, section 268.194, 11.3 subdivision 5, this money is a one-time 11.4 appropriation from federal money to be 11.5 made available specifically for that 11.6 purpose under United States Code, title 11.7 42, section 1103, also known as the 11.8 Reed Act, and section 5403 of the 11.9 Federal Balanced Budget Act of 1997. 11.10 Each annual appropriation is available 11.11 for two years after the date of 11.12 enactment. 11.13 Sec. 5. HOUSING FINANCE AGENCY 49,420,000 46,820,000 11.14 Summary by Fund 11.15 General 45,420,000 44,320,000 11.16 TANF 4,000,000 2,500,000 11.17 Subdivision 1. Total Appropriation 11.18 The amounts that may be spent from this 11.19 appropriation for certain programs are 11.20 specified in the following subdivisions. 11.21 This appropriation is for transfer to 11.22 the housing development fund for the 11.23 programs specified. Except as 11.24 otherwise indicated, this transfer is 11.25 part of the agency's permanent budget 11.26 base. 11.27 Subd. 2. Rental Assistance for Mentally Ill 11.28 $1,700,000 the first year and 11.29 $1,700,000 the second year are for a 11.30 rental housing assistance program for 11.31 persons with a mental illness or 11.32 families with an adult member with a 11.33 mental illness under Minnesota 11.34 Statutes, section 462A.2097. 11.35 Subd. 3. Family Homeless Prevention 11.36 $3,250,000 the first year and 11.37 $3,250,000 the second year is for the 11.38 family homeless prevention and 11.39 assistance program under Minnesota 11.40 Statutes, section 462A.204, and is 11.41 available until June 30, 2001. Of this 11.42 amount, $1,875,000 the first year and 11.43 $375,000 the second year is from the 11.44 state's federal TANF block grant under 11.45 Title I of Public Law Number 104-193 to 11.46 the commissioner of human services, to 11.47 be transferred to the housing 11.48 development fund for this program. It 11.49 is the intention of the legislature 11.50 that the general fund base funding to 11.51 this program be $6,500,000 for the 11.52 2002-2003 biennium. 11.53 Subd. 4. Foreclosure Prevention Program 11.54 $583,000 the first year and $583,000 11.55 the second year are for the foreclosure 11.56 prevention and assistance program under 11.57 Minnesota Statutes, section 462A.207. 12.1 Subd. 5. Rental Assistance for 12.2 Family Stabilization 12.3 $2,125,000 the first year and 12.4 $2,125,000 the second year are 12.5 appropriated from the state's federal 12.6 TANF block grant under Title I of 12.7 Public Law Number 104-193 to the 12.8 commissioner of human services, to be 12.9 transferred to the housing development 12.10 fund for the rent assistance for family 12.11 stabilization program under Minnesota 12.12 Statutes, section 462A.205. It is the 12.13 intention of the legislature that the 12.14 general fund base funding for this 12.15 program be $2,000,000 per year for the 12.16 2002-2003 biennium. 12.17 Subd. 6. Housing Trust Fund 12.18 $2,348,000 the first year and 12.19 $2,348,000 the second year are for the 12.20 housing trust fund to be deposited in 12.21 the housing trust fund account created 12.22 under Minnesota Statutes, section 12.23 462A.201, and used for the purposes 12.24 provided in that section. Of this 12.25 amount, $550,000 each year must be used 12.26 for transitional housing. 12.27 Subd. 7. Affordable Rental Investment Fund 12.28 $21,493,000 the first year and 12.29 $21,493,000 the second year are for the 12.30 affordable rental investment fund 12.31 program under Minnesota Statutes, 12.32 section 462A.21, subdivision 8b. Of 12.33 this amount, $15,000,000 the first year 12.34 and $15,000,000 the second year are to 12.35 finance the acquisition, 12.36 rehabilitation, and debt restructuring 12.37 of federally assisted rental property 12.38 and for making equity take-out loans 12.39 under Minnesota Statutes, section 12.40 462A.05, subdivision 39. The owner of 12.41 the federally assisted rental property 12.42 must agree to participate in the 12.43 applicable federally assisted housing 12.44 program and to extend any existing 12.45 low-income affordability restrictions 12.46 on the housing for the maximum term 12.47 permitted. The owner must also enter 12.48 into an agreement that gives local 12.49 units of government, housing and 12.50 redevelopment authorities, and 12.51 nonprofit housing organizations the 12.52 right of first refusal if the rental 12.53 property is offered for sale. Priority 12.54 must be given among comparable 12.55 properties to properties with the 12.56 longest remaining term under an 12.57 agreement for federal rental 12.58 assistance. Priority must also be 12.59 given among comparable rental housing 12.60 developments to developments that are 12.61 or will be owned by local government 12.62 units, a housing and redevelopment 12.63 authority, or a nonprofit housing 12.64 organization. Of this appropriation, 12.65 $5,000,000 in each year is a one-time 12.66 appropriation and is not added to the 13.1 agency's permanent base. 13.2 To the extent practicable, this 13.3 appropriation shall be used so that an 13.4 approximately equal number of housing 13.5 units are financed in the metropolitan 13.6 area, as defined in Minnesota Statutes, 13.7 section 473.121, subdivision 2, and in 13.8 the nonmetropolitan area. 13.9 Subd. 8. Urban Indian Housing Program 13.10 No appropriation is made for the urban 13.11 Indian housing program under Minnesota 13.12 Statutes, section 462A.07, subdivision 13.13 15. It is the intention of the 13.14 legislature that the agency will use 13.15 accumulated reserves to fund this 13.16 program in the 2000-2001 biennium. The 13.17 base of $187,000 per year is intended 13.18 to be restored in fiscal year 2002 and 13.19 beyond. 13.20 Subd. 9. Tribal Indian Housing Program 13.21 $1,683,000 the first year and 13.22 $1,683,000 the second year are for the 13.23 tribal Indian housing program under 13.24 Minnesota Statutes, section 462A.07, 13.25 subdivision 14. 13.26 Subd. 10. Rural and Urban Homesteading 13.27 $186,000 the first year and $186,000 13.28 the second year are for the Minnesota 13.29 rural and urban homesteading program 13.30 under Minnesota Statutes, section 13.31 462A.057. 13.32 Subd. 11. Capacity Building Grants 13.33 $240,000 the first year and $240,000 13.34 the second year are for nonprofit 13.35 capacity building grants under 13.36 Minnesota Statutes, section 462A.21, 13.37 subdivision 3b. 13.38 Subd. 12. Community Rehabilitation Program 13.39 $6,900,000 the first year and 13.40 $6,900,000 the second year are for the 13.41 community rehabilitation program under 13.42 Minnesota Statutes, section 462A.206. 13.43 Of this appropriation, $1,000,000 in 13.44 each year is a one-time appropriation 13.45 and is not added to the agency's base. 13.46 The housing finance agency is 13.47 encouraged to give consideration to 13.48 community rehabilitation program 13.49 applications for grants to purchase and 13.50 rehabilitate housing for families which 13.51 is also used for the purpose of 13.52 providing child care services targeted 13.53 to underserved immigrant and refugee 13.54 families. Grantees receiving money 13.55 under this provision must coordinate 13.56 housing assistance with related 13.57 services funded by the commissioner of 13.58 children, families, and learning. The 13.59 housing finance agency shall report to 14.1 the legislature on the number of 14.2 housing units purchased and 14.3 rehabilitated for this purpose. 14.4 $275,000 the first year and $275,000 14.5 the second year are for full-cycle home 14.6 ownership and purchase-rehabilitation 14.7 lending initiatives under Minnesota 14.8 Statutes, section 462A.21, subdivision 14.9 25. 14.10 Subd. 13. Housing Rehabilitation 14.11 and Accessibility Program 14.12 $4,287,000 the first year and 14.13 $4,287,000 the second year are for the 14.14 housing rehabilitation and 14.15 accessibility program under Minnesota 14.16 Statutes, section 462A.05, subdivisions 14.17 14a and 15a. 14.18 Subd. 14. Home Ownership Assistance Fund 14.19 $900,000 the first year and $900,000 14.20 the second year are for the home 14.21 ownership assistance fund under 14.22 Minnesota Statutes, section 462A.21, 14.23 subdivision 8. 14.24 Subd. 15. School Stability Demonstration 14.25 $1,000,000 the first year is to 14.26 administer the program established in 14.27 Minnesota Statutes, section 462A.204, 14.28 subdivision 8, if enacted. In making 14.29 grants under this program, the 14.30 commissioner shall award sufficient 14.31 funds for a grantee to serve a 14.32 substantial number of the families 14.33 estimated to meet the criteria of 14.34 Minnesota Statutes, section 462A.204, 14.35 subdivision 8, paragraph (c), clause 14.36 (1) or (2), in at least one school 14.37 within a school district. This is a 14.38 one-time appropriation. 14.39 Subd. 16. Innovative and Inclusionary 14.40 Housing Demonstration Projects 14.41 (a) $1,600,000 is appropriated from the 14.42 general fund to the commissioner of the 14.43 Minnesota housing finance agency for 14.44 transfer to the housing development 14.45 fund for the community rehabilitation 14.46 program under Minnesota Statutes, 14.47 section 462A.206. This appropriation 14.48 is for at least three, and not more 14.49 than six, innovative affordable housing 14.50 demonstration projects. 14.51 (b) These pilot projects are to create 14.52 owner-occupied homes which use 14.53 innovative building techniques or 14.54 materials to lower construction costs 14.55 while maintaining high quality 14.56 construction and livability. At least 14.57 one pilot project must be in a city of 14.58 the first class and at least one must 14.59 be in a suburb located in the 14.60 seven-county metropolitan area. 14.61 Applications for grants from this 15.1 appropriation must identify the 15.2 targeted population for whom housing 15.3 will be provided with the grant. 15.4 (c) The commissioner will develop 15.5 procedures to implement this 15.6 demonstration project and establish 15.7 criteria upon which to judge grant 15.8 applications. These criteria must 15.9 include: (1) local effort by the 15.10 community; (2) the community's 15.11 willingness to waive restrictions which 15.12 would otherwise increase costs of 15.13 construction; (3) consistency with 15.14 regionally developed investment 15.15 guidelines; (4) the extent to which the 15.16 project will promote inclusionary 15.17 housing; and (5) the extent to which a 15.18 grant would leverage funding from 15.19 nonstate sources. 15.20 (d) For purposes of paragraph (c), the 15.21 term "inclusionary housing" means a new 15.22 construction development including 15.23 housing with a variety of prices and 15.24 designs which serve families with a 15.25 range of incomes and housing needs. 15.26 This appropriation must be used 15.27 principally for projects which close 15.28 the gap between the market price of 15.29 housing in an area and the price 15.30 affordable to the targeted income level 15.31 or the cost of producing housing and 15.32 the market price of the housing. This 15.33 is a one-time appropriation and is not 15.34 added to the agency's permanent base. 15.35 Subd. 17. Homeownership Counseling 15.36 $50,000 in the first year and $50,000 15.37 in the second year is appropriated from 15.38 the general fund to the housing 15.39 development fund for the fiscal 15.40 biennium ending June 30, 2001, for 15.41 purposes of the community 15.42 rehabilitation program under Minnesota 15.43 Statutes, section 462A.206. This 15.44 appropriation must be used to make a 15.45 grant to a statewide organization that 15.46 advocates on behalf of persons with 15.47 mental retardation or related 15.48 conditions. The grant must be used to 15.49 provide entry cost assistance, 15.50 prepurchase and postpurchase counseling 15.51 to persons with various disabilities 15.52 who are participating in the Fannie Mae 15.53 Homechoice demonstration project and 15.54 other projects designed to encourage 15.55 home ownership among persons with 15.56 disabilities. 15.57 Subd. 18. Cancellations 15.58 The unobligated and unencumbered 15.59 balance in the contract for deed 15.60 guarantee account under Minnesota 15.61 Statutes, section 462A.2091 is 15.62 transferred to the full cycle 15.63 homeownership services program under 15.64 Minnesota Statutes, section 462A.209. 16.1 The unobligated and unencumbered 16.2 balance appropriated to the advisory 16.3 task force on lead hazard reduction 16.4 established under Laws 1997, chapter 16.5 200, article 4, section 1, is 16.6 transferred to the housing 16.7 rehabilitation and accessibility 16.8 program under Minnesota Statutes, 16.9 section 462A.05, subdivisions 14a and 16.10 15a, for use in the emergency loan 16.11 fund. Priority for the use of these 16.12 funds shall be given to emergency loans 16.13 and grants for lead hazard reduction. 16.14 The unobligated and unencumbered 16.15 balance appropriated to the community 16.16 rehabilitation fund account under Laws 16.17 1997, chapter 200, article 1, section 16.18 6, for grants to acquire, demolish, and 16.19 remove substandard multiple-unit 16.20 residential property or acquire, 16.21 rehabilitate, and reconfigure 16.22 multiple-unit residential rental 16.23 property is transferred to the 16.24 affordable rental investment fund 16.25 program under Minnesota Statutes, 16.26 section 462A.21, subdivision 8b. 16.27 Sec. 6. COMMERCE 16.28 Subdivision 1. Total 16.29 Appropriation 18,927,000 19,115,000 16.30 Summary by Fund 16.31 General 17,245,000 17,486,000 16.32 Petro Cleanup 1,015,000 1,045,000 16.33 Workers' 16.34 Compensation 567,000 584,000 16.35 Special Revenue 100,000 -0- 16.36 The amounts that may be spent from this 16.37 appropriation for each program are 16.38 specified in the following subdivisions. 16.39 Subd. 2. Financial Examinations 16.40 3,963,000 4,052,000 16.41 Subd. 3. Registration and Insurance 16.42 4,916,000 6,589,000 16.43 Summary by Fund 16.44 General 4,249,000 6,005,000 16.45 Workers' 16.46 Compensation 567,000 584,000 16.47 Special Revenue 100,000 -0- 16.48 The commissioner shall evaluate the 16.49 feasibility of a state crop revenue 16.50 insurance program to complement similar 16.51 federal programs. 16.52 $100,000 of this appropriation is from 17.1 the special revenue fund and is not 17.2 available unless H. F. No. 743 is 17.3 enacted. 17.4 $784,000 the second year is for 17.5 transfer to the commissioner of health 17.6 to assume responsibilities for HMO 17.7 regulation. 17.8 Subd. 4. Enforcement and Licensing 17.9 4,355,000 4,296,000 17.10 Subd. 5. Petroleum Tank Release 17.11 Cleanup Board 17.12 1,015,000 1,045,000 17.13 This appropriation is from the 17.14 petroleum tank release cleanup fund. 17.15 Subd. 6. Administrative Services 17.16 4,678,000 3,133,000 17.17 $1,400,000 the first year is a one-time 17.18 appropriation to redesign and 17.19 re-engineer the department's data base. 17.20 $90,000 the first year is a one-time 17.21 appropriation for expanding website 17.22 capabilities. 17.23 Sec. 7. BOARD OF ACCOUNTANCY 607,000 624,000 17.24 Sec. 8. BOARD OF ARCHITECTURE, 17.25 ENGINEERING, LAND SURVEYING, 17.26 LANDSCAPE ARCHITECTURE, AND 17.27 INTERIOR DESIGN 770,000 794,000 17.28 Sec. 9. BOARD OF BARBER 17.29 EXAMINERS 144,000 149,000 17.30 Sec. 10. BOARD OF BOXING 84,000 -0- 17.31 Sec. 11. LABOR AND INDUSTRY 17.32 Subdivision 1. Total 17.33 Appropriation 23,843,000 24,183,000 17.34 Summary by Fund 17.35 General 3,736,000 3,913,000 17.36 Workers' 17.37 Compensation 20,107,000 20,270,000 17.38 The amounts that may be spent from this 17.39 appropriation for each program are 17.40 specified in the following subdivisions. 17.41 Subd. 2. Workers' Compensation 17.42 10,586,000 10,833,000 17.43 This appropriation is from the workers' 17.44 compensation fund. 17.45 Subd. 3. Workplace Services 17.46 6,711,000 6,980,000 18.1 Summary by Fund 18.2 General 2,672,000 2,844,000 18.3 Workers' 18.4 Compensation 4,039,000 4,136,000 18.5 Subd. 4. General Support 18.6 6,546,000 6,370,000 18.7 Summary by Fund 18.8 General 1,064,000 1,069,000 18.9 Workers' 18.10 Compensation 5,482,000 5,301,000 18.11 Sec. 12. BUREAU OF MEDIATION 18.12 SERVICES 2,130,000 2,180,000 18.13 Sec. 13. WORKERS' COMPENSATION 18.14 COURT OF APPEALS 1,543,000 1,585,000 18.15 This appropriation is from the workers' 18.16 compensation fund. 18.17 Sec. 14. PUBLIC UTILITIES 18.18 COMMISSION 3,781,000 3,880,000 18.19 Sec. 15. DEPARTMENT OF PUBLIC SERVICE 18.20 Subdivision 1. Total 18.21 Appropriation 9,595,000 9,805,000 18.22 The amounts that may be spent from this 18.23 appropriation for each program are 18.24 specified in the following subdivisions. 18.25 Subd. 2. Telecommunications 18.26 962,000 980,000 18.27 Subd. 3. Weights and Measures 18.28 3,138,000 3,207,000 18.29 Subd. 4. Information and Operations 18.30 Management 18.31 1,575,000 1,618,000 18.32 Subd. 5. Energy 18.33 3,920,000 4,000,000 18.34 $588,000 each year is for transfer to 18.35 the energy and conservation account 18.36 established in Minnesota Statutes, 18.37 section 216B.241, subdivision 2a, for 18.38 programs administered by the 18.39 commissioner of children, families, and 18.40 learning to improve the energy 18.41 efficiency of residential oil-fired 18.42 heating plants in low-income households 18.43 and, when necessary, to provide 18.44 weatherization services to the homes. 18.45 Sec. 16. MINNESOTA HISTORICAL 18.46 SOCIETY 19.1 Subdivision 1. Total 19.2 Appropriation 24,514,000 24,744,000 19.3 The amounts that may be spent from this 19.4 appropriation for each program are 19.5 specified in the following subdivisions. 19.6 Subd. 2. Education and 19.7 Outreach 19.8 General 12,699,000 12,812,000 19.9 Subd. 3. Preservation and Access 19.10 General 9,318,000 9,479,000 19.11 Subd. 4. Information Program 19.12 Delivery 19.13 2,141,000 2,155,000 19.14 Subd. 5. Fiscal Agent 19.15 General 346,000 298,000 19.16 (a) Sibley House Association 19.17 88,000 88,000 19.18 This appropriation is available for 19.19 operation and maintenance of the Sibley 19.20 House and related buildings on the Old 19.21 Mendota state historic site operated by 19.22 the Sibley House Association. 19.23 (b) Minnesota International Center 19.24 50,000 50,000 19.25 (c) Minnesota Air National 19.26 Guard Museum 19.27 19,000 -0- 19.28 (d) Institute for Learning and 19.29 Teaching - Project 120 19.30 110,000 110,000 19.31 (e) Minnesota Military Museum 19.32 29,000 -0- 19.33 (f) Farmamerica 19.34 50,000 50,000 19.35 (g) Winona County Historical Society 19.36 10,000 -0- 19.37 This is a one-time appropriation and is 19.38 not added to the agency's base. 19.39 (h) Balances Forward 19.40 Any unencumbered balance remaining in 19.41 this subdivision the first year does 19.42 not cancel but is available for the 19.43 second year of the biennium. 20.1 Sec. 17. MINNESOTA MUNICIPAL 20.2 BOARD 162,000 -0- 20.3 Sec. 18. COUNCIL ON BLACK 20.4 MINNESOTANS 320,000 329,000 20.5 $25,000 each year is for expenses 20.6 associated with the Dr. Martin Luther 20.7 King Day activities. 20.8 Sec. 19. COUNCIL ON 20.9 CHICANO-LATINO AFFAIRS 314,000 324,000 20.10 Sec. 20. COUNCIL ON 20.11 ASIAN-PACIFIC MINNESOTANS 277,000 286,000 20.12 Sec. 21. INDIAN AFFAIRS 20.13 COUNCIL 551,000 567,000 20.14 Sec. 22. OFFICE OF STRATEGIC 20.15 AND LONG-RANGE PLANNING 161,000 327,000 20.16 To assume administrative 20.17 responsibilities resulting from the 20.18 sunset of the Municipal Board under 20.19 Laws 1997, chapter 202, article 5, 20.20 section 8. 20.21 ARTICLE 2 20.22 MISCELLANEOUS 20.23 Section 1. Minnesota Statutes 1998, section 45.0295, is 20.24 amended to read: 20.25 45.0295 [FEES.] 20.26 (a) The following fees shall be paid to the commissioner: 20.27(1) for a letter of certification of licensure, $20;20.28(2) for a license history, $20;20.29(3) for a duplicate license, $10;20.30(4) for a change of name or address, $10;20.31(5) for a temporary license, $10;20.32(6)(1) for each hour or fraction of one hour of course 20.33 approval for continuing education sought, $10; and 20.34(7)(2) for each continuing education course coordinator 20.35 approval, $100. 20.36 (b) All fees paid to the commissioner under this section 20.37 are nonrefundable, except that an overpayment of a fee shall be 20.38 returned upon proper application. 20.39 Sec. 2. Minnesota Statutes 1998, section 53A.03, is 20.40 amended to read: 20.41 53A.03 [APPLICATION FOR LICENSE; FEES.] 20.42 (a) An application for a license must be in writing, under 21.1 oath, and in the form prescribed and furnished by the 21.2 commissioner and must contain the following: 21.3 (1) the full name and address (both of residence and place 21.4 of business) of the applicant, and if the applicant is a 21.5 partnership or association, of every member, and the name and 21.6 business address if the applicant is a corporation; 21.7 (2) the county and municipality, with street and number, if 21.8 any, of all currency exchange locations operated by the 21.9 applicant; and 21.10 (3) the applicant's occupation or profession, for the ten 21.11 years immediately preceding the application; present or previous 21.12 connection with any other currency exchange in this or any other 21.13 state; whether the applicant has ever been convicted of any 21.14 crime; and the nature of the applicant's occupancy of the 21.15 premises to be licensed; and if the applicant is a partnership 21.16 or a corporation, the information specified in this paragraph 21.17 must be supplied for each partner and each officer and director 21.18 of the corporation. If the applicant is a partnership or a 21.19 nonpublicly held corporation, the information specified in this 21.20 paragraph must be required of each partner and each officer, 21.21 director, and stockholders owning in excess of ten percent of 21.22 the corporate stock of the corporation. 21.23 (b) The application shall be accompanied by a nonrefundable 21.24 fee of$250$1,000 for the review of the initial application. 21.25 Upon approval by the commissioner, an additional license fee 21.26 of$50$500 must be paid by the applicant as an annual license 21.27 fee for the remainder of the calendar year. An annual license 21.28 fee of$50$500 is due for each subsequent calendar year of 21.29 operation upon submission of a license renewal application on or 21.30 before September 1. Fees must be deposited in the state 21.31 treasury and credited to the general fund. Upon payment of the 21.32 required annual license fee, the commissioner shall issue a 21.33 license for the year beginning January 1. 21.34 (c) The commissioner shall require the applicant to submit 21.35 to a background investigation conducted by the bureau of 21.36 criminal apprehension as a condition of licensure. As part of 22.1 the background investigation, the bureau of criminal 22.2 apprehension shall conduct criminal history checks of Minnesota 22.3 records and is authorized to exchange fingerprints with the 22.4 Federal Bureau of Investigation for the purpose of a criminal 22.5 background check of the national files. The cost of the 22.6 investigation must be paid by the applicant. 22.7 (d) For purposes of this section, "applicant" includes an 22.8 employee who exercises management or policy control over the 22.9 company, a director, an officer, a limited or general partner, a 22.10 manager, or a shareholder holding more than ten percent of the 22.11 outstanding stock of the corporation. 22.12 Sec. 3. Minnesota Statutes 1998, section 53A.05, 22.13 subdivision 1, is amended to read: 22.14 Subdivision 1. [NAME OR LOCATION.] If a licensee proposes 22.15 to change the name or location of any or all of its currency 22.16 exchanges, the licensee shall file an application for approval 22.17 of the change with the commissioner. The commissioner shall not 22.18 approve a change of location if the requirements of sections 22.19 53A.02, subdivision 2, and 53A.04 have not been satisfied. If 22.20 the change is approved by the commissioner, the commissioner 22.21 shall issue an amended license in the licensee's new name or 22.22 location. A$50$100 fee must be paid for the amended license. 22.23 Sec. 4. Minnesota Statutes 1998, section 60A.14, 22.24 subdivision 1, is amended to read: 22.25 Subdivision 1. [FEES OTHER THAN EXAMINATION FEES.] In 22.26 addition to the fees and charges provided for examinations, the 22.27 following fees must be paid to the commissioner for deposit in 22.28 the general fund: 22.29 (a) by township mutual fire insurance companies: 22.30 (1) for filing certificate of incorporation $25 and 22.31 amendments thereto, $10; 22.32 (2) for filing annual statements, $15; 22.33 (3) for each annual certificate of authority, $15; 22.34 (4) for filing bylaws $25 and amendments thereto, $10. 22.35 (b) by other domestic and foreign companies including 22.36 fraternals and reciprocal exchanges: 23.1 (1) for filing certified copy of certificate of articles of 23.2 incorporation, $100; 23.3 (2) for filing annual statement, $225; 23.4 (3) for filing certified copy of amendment to certificate 23.5 or articles of incorporation, $100; 23.6 (4) for filing bylaws, $75 or amendments thereto, $75; 23.7 (5) for each company's certificate of authority, $575, 23.8 annually. 23.9 (c) the following general fees apply: 23.10 (1) for each certificate, including certified copy of 23.11 certificate of authority, renewal, valuation of life policies, 23.12 corporate condition or qualification, $25; 23.13 (2) for each copy of paper on file in the commissioner's 23.14 office 50 cents per page, and $2.50 for certifying the same; 23.15 (3) for license to procure insurance in unadmitted foreign 23.16 companies, $575; 23.17 (4) for valuing the policies of life insurance companies, 23.18 one cent per $1,000 of insurance so valued, provided that the 23.19 fee shall not exceed $13,000 per year for any company. The 23.20 commissioner may, in lieu of a valuation of the policies of any 23.21 foreign life insurance company admitted, or applying for 23.22 admission, to do business in this state, accept a certificate of 23.23 valuation from the company's own actuary or from the 23.24 commissioner of insurance of the state or territory in which the 23.25 company is domiciled; 23.26 (5) for receiving and filing certificates of policies by 23.27 the company's actuary, or by the commissioner of insurance of 23.28 any other state or territory, $50; 23.29 (6) for each appointment of an agent filed with the 23.30 commissioner, a domestic insurer shall remit $5 and all other 23.31 insurers shall remit $3; 23.32 (7) for filing forms and rates,$50$75 per filing; 23.33 (8) for annual renewal of surplus lines insurer license, 23.34 $300. 23.35 The commissioner shall adopt rules to define filings that 23.36 are subject to a fee. 24.1 Sec. 5. Minnesota Statutes 1998, section 60A.23, 24.2 subdivision 8, is amended to read: 24.3 Subd. 8. [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS 24.4 WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1) [SCOPE.] This 24.5 subdivision applies to any vendor of risk management services 24.6 and to any entity which administers, for compensation, a 24.7 self-insurance or insurance plan. This subdivision does not 24.8 apply (a) to an insurance company authorized to transact 24.9 insurance in this state, as defined by section 60A.06, 24.10 subdivision 1, clauses (4) and (5); (b) to a service plan 24.11 corporation, as defined by section 62C.02, subdivision 6; (c) to 24.12 a health maintenance organization, as defined by section 62D.02, 24.13 subdivision 4; (d) to an employer directly operating a 24.14 self-insurance plan for its employees' benefits; (e) to an 24.15 entity which administers a program of health benefits 24.16 established pursuant to a collective bargaining agreement 24.17 between an employer, or group or association of employers, and a 24.18 union or unions; or (f) to an entity which administers a 24.19 self-insurance or insurance plan if a licensed Minnesota insurer 24.20 is providing insurance to the plan and if the licensed insurer 24.21 has appointed the entity administering the plan as one of its 24.22 licensed agents within this state. 24.23 (2) [DEFINITIONS.] For purposes of this subdivision the 24.24 following terms have the meanings given them. 24.25 (a) "Administering a self-insurance or insurance plan" 24.26 means (i) processing, reviewing or paying claims, (ii) 24.27 establishing or operating funds and accounts, or (iii) otherwise 24.28 providing necessary administrative services in connection with 24.29 the operation of a self-insurance or insurance plan. 24.30 (b) "Employer" means an employer, as defined by section 24.31 62E.02, subdivision 2. 24.32 (c) "Entity" means any association, corporation, 24.33 partnership, sole proprietorship, trust, or other business 24.34 entity engaged in or transacting business in this state. 24.35 (d) "Self-insurance or insurance plan" means a plan 24.36 providing life, medical or hospital care, accident, sickness or 25.1 disability insurance for the benefit of employees or members of 25.2 an association, or a plan providing liability coverage for any 25.3 other risk or hazard, which is or is not directly insured or 25.4 provided by a licensed insurer, service plan corporation, or 25.5 health maintenance organization. 25.6 (e) "Vendor of risk management services" means an entity 25.7 providing for compensation actuarial, financial management, 25.8 accounting, legal or other services for the purpose of designing 25.9 and establishing a self-insurance or insurance plan for an 25.10 employer. 25.11 (3) [LICENSE.] No vendor of risk management services or 25.12 entity administering a self-insurance or insurance plan may 25.13 transact this business in this state unless it is licensed to do 25.14 so by the commissioner. An applicant for a license shall state 25.15 in writing the type of activities it seeks authorization to 25.16 engage in and the type of services it seeks authorization to 25.17 provide. The license may be granted only when the commissioner 25.18 is satisfied that the entity possesses the necessary 25.19 organization, background, expertise, and financial integrity to 25.20 supply the services sought to be offered. The commissioner may 25.21 issue a license subject to restrictions or limitations upon the 25.22 authorization, including the type of services which may be 25.23 supplied or the activities which may be engaged in. The license 25.24 fee is$500$1,000 for the initial application and$500$1,000 25.25 for each two-year renewal. All licenses are for a period of two 25.26 years. 25.27 (4) [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] 25.28 To assure that self-insurance or insurance plans are financially 25.29 solvent, are administered in a fair and equitable fashion, and 25.30 are processing claims and paying benefits in a prompt, fair, and 25.31 honest manner, vendors of risk management services and entities 25.32 administering insurance or self-insurance plans are subject to 25.33 the supervision and examination by the commissioner. Vendors of 25.34 risk management services, entities administering insurance or 25.35 self-insurance plans, and insurance or self-insurance plans 25.36 established or operated by them are subject to the trade 26.1 practice requirements of sections 72A.19 to 72A.30. In lieu of 26.2 an unlimited guarantee from a parent corporation for a vendor of 26.3 risk management services or an entity administering insurance or 26.4 self-insurance plans, the commissioner may accept a surety bond 26.5 in a form satisfactory to the commissioner in an amount equal to 26.6 120 percent of the total amount of claims handled by the 26.7 applicant in the prior year. If at any time the total amount of 26.8 claims handled during a year exceeds the amount upon which the 26.9 bond was calculated, the administrator shall immediately notify 26.10 the commissioner. The commissioner may require that the bond be 26.11 increased accordingly. 26.12 (5) [RULEMAKING AUTHORITY.] To carry out the purposes of 26.13 this subdivision, the commissioner may adopt rules pursuant to 26.14 sections 14.001 to 14.69. These rules may: 26.15 (a) establish reporting requirements for administrators of 26.16 insurance or self-insurance plans; 26.17 (b) establish standards and guidelines to assure the 26.18 adequacy of financing, reinsuring, and administration of 26.19 insurance or self-insurance plans; 26.20 (c) establish bonding requirements or other provisions 26.21 assuring the financial integrity of entities administering 26.22 insurance or self-insurance plans; or 26.23 (d) establish other reasonable requirements to further the 26.24 purposes of this subdivision. 26.25 Sec. 6. Minnesota Statutes 1998, section 60A.71, 26.26 subdivision 7, is amended to read: 26.27 Subd. 7. [FEES.] Each applicant for a reinsurance 26.28 intermediary license shall pay to the commissioner a fee of 26.29$160$200 for an initial two-year license and a fee of$120$150 26.30 for each renewal. Applications shall be submitted on forms 26.31 prescribed by the commissioner. 26.32 Sec. 7. Minnesota Statutes 1998, section 60K.06, 26.33 subdivision 2, is amended to read: 26.34 Subd. 2. [LICENSING FEES.] (a) In addition to the fees and 26.35 charges provided for examinations, each agent licensed pursuant 26.36 to section 60K.03 shall pay to the commissioner: 27.1 (1) a fee of$60$80 per license for an initial license 27.2 issued to an individual agent, and a fee of$60$80 for each 27.3 renewal; 27.4 (2) a fee of$160$200 for an initial license issued to a 27.5 partnership, limited liability company, or corporation, and a 27.6 fee of$120$150 for each renewal; 27.7 (3) a fee of $75 for an initial amendment (variable 27.8 annuity) to a license, and a fee of $50 for each renewal; and 27.9 (4) a fee of $500 for an initial surplus lines agent's 27.10 license, and a fee of $500 for each renewal. 27.11 (b) Persons whose applications have been properly and 27.12 timely filed who have not received notice of denial of renewal 27.13 are approved for renewal and may continue to transact business 27.14 whether or not the renewed license has been received on or 27.15 before November 1 of the renewal year. Applications for renewal 27.16 of a license are timely filed if received by the commissioner on 27.17 or before the 15th day preceding the license renewal date of the 27.18 applicant on forms duly executed and accompanied by appropriate 27.19 fees. An application mailed is considered timely filed if 27.20 addressed to the commissioner, with proper postage, and 27.21 postmarked on or before the 15th day preceding the licensing 27.22 renewal date of the applicant. 27.23 (c) Initial licenses issued under this section must be 27.24 valid for a period not to exceed two years. The commissioner 27.25 shall assign an expiration date to each initial license so that 27.26 approximately one-half of all licenses expire each year. Each 27.27 initial license must expire on October 31 of the expiration year 27.28 assigned by the commissioner. 27.29 (d) All fees shall be retained by the commissioner and are 27.30 nonreturnable, except that an overpayment of any fee must be 27.31 refunded upon proper application. 27.32 Sec. 8. Minnesota Statutes 1998, section 65B.48, 27.33 subdivision 3, is amended to read: 27.34 Subd. 3. Self-insurance, subject to approval of the 27.35 commissioner, is effected by filing with the commissioner in 27.36 satisfactory form: 28.1 (1) a continuing undertaking by the owner or other 28.2 appropriate person to pay tort liabilities or basic economic 28.3 loss benefits, or both, and to perform all other obligations 28.4 imposed by sections 65B.41 to 65B.71; 28.5 (2) evidence that appropriate provision exists for prompt 28.6 administration of all claims, benefits, and obligations provided 28.7 by sections 65B.41 to 65B.71; 28.8 (3) evidence that reliable financial arrangements, 28.9 deposits, or commitments exist providing assurance, 28.10 substantially equivalent to that afforded by a policy of 28.11 insurance complying with sections 65B.41 to 65B.71, for payment 28.12 of tort liabilities, basic economic loss benefits, and all other 28.13 obligations imposed by sections 65B.41 to 65B.71; and 28.14 (4) a nonrefundable initial application fee of$500$1,500 28.15 and an annual renewal fee of$100$400 for political 28.16 subdivisions and$250$500 for nonpolitical entities. 28.17 Sec. 9. Minnesota Statutes 1998, section 70A.14, 28.18 subdivision 4, is amended to read: 28.19 Subd. 4. [DURATION.] Licenses issued pursuant to this 28.20 section shall remain in effect until the licensee withdraws from 28.21 the state or until the license is suspended or revoked. The fee 28.22 for each license shall be$1,000$3,000, payable every three 28.23 years. 28.24 Sec. 10. Minnesota Statutes 1998, section 72B.04, 28.25 subdivision 10, is amended to read: 28.26 Subd. 10. [FEES.] A fee of$40$80 is imposed for each 28.27 initial license or temporary permit and$25$80 for each renewal 28.28 thereof or amendment thereto. A fee of $20 is imposed for the 28.29 registration of each nonlicensed adjuster who is required to 28.30 register under section 72B.06. All fees shall be transmitted to 28.31 the commissioner and shall be payable to the state treasurer. 28.32 If a fee is paid for an examination and if within one year from 28.33 the date of that payment no written request for a refund is 28.34 received by the commissioner or the examination for which the 28.35 fee was paid is not taken, the fee is forfeited to the state of 28.36 Minnesota. 29.1 Sec. 11. Minnesota Statutes 1998, section 79.255, 29.2 subdivision 10, is amended to read: 29.3 Subd. 10. [FEE.] A registration or exemption certificate 29.4 fee of$50$100 shall be paid. 29.5 Sec. 12. Minnesota Statutes 1998, section 80A.28, 29.6 subdivision 1, is amended to read: 29.7 Subdivision 1. (a) There shall be a filing fee of $100 for 29.8 every application for registration or notice filing. There 29.9 shall be an additional fee of one-tenth of one percent of the 29.10 maximum aggregate offering price at which the securities are to 29.11 be offered in this state, and the maximum combined fees shall 29.12 not exceed $300. 29.13 (b) When an application for registration is withdrawn 29.14 before the effective date or a preeffective stop order is 29.15 entered under section 80A.13, subdivision 1, all but the $100 29.16 filing fee shall be returned. If an application to register 29.17 securities is denied, the total of all fees received shall be 29.18 retained. 29.19 (c) Where a filing is made in connection with a federal 29.20 covered security under section 18(b)(2) of the Securities Act of 29.21 1933, there is a fee of $100 for every initial filing. If the 29.22 filing is made in connection with redeemable securities issued 29.23 by an open end management company or unit investment trust, as 29.24 defined in the Investment Company Act of 1940, there is an 29.25 additional fee of 1/20 of one percent of the maximum aggregate 29.26 offering price at which the securities are to be offered in this 29.27 state. If the filing is made in connection with redeemable 29.28 securities issued by such a company or trust, there is no 29.29 maximum fee for securities filings made according to this 29.30 paragraph. If the filing is made in connection with any other 29.31 federal covered security under Section 18(b)(2) of the 29.32 Securities Act of 1933, there is an additional fee of one-tenth 29.33 of one percent of the maximum aggregate offering price at which 29.34 the securities are to be offered in this state, and the combined 29.35 fees shall not exceed $300. Beginning with fiscal year 2000 and 29.36 continuing each fiscal year thereafter, upon completion of the 30.1 fiscal year, the commissioner shall determine the total amount 30.2 of all fees that were collected under this paragraph in 30.3 connection with any filings made during the last completed 30.4 fiscal year on behalf of a security that is a federal covered 30.5 security pursuant to section 18(b)(2) of the Securities Act of 30.6 1933. To the extent the total fees collected by the 30.7 commissioner in connection with such filings exceeds 30.8 $21,072,000, the commissioner shall refund, on a pro rata basis, 30.9 to all persons who paid any fees during such completed fiscal 30.10 year, the amount of such fees collected by the commissioner that 30.11 are in excess of $21,072,000. No refunds are required of 30.12 amounts of $100 or less for a fiscal year. 30.13 Sec. 13. Minnesota Statutes 1998, section 82A.08, 30.14 subdivision 2, is amended to read: 30.15 Subd. 2. [FEE.] Every annual report filed pursuant to this 30.16 section shall be accompanied by a fee of$100$500. 30.17 Sec. 14. Minnesota Statutes 1998, section 82A.16, 30.18 subdivision 2, is amended to read: 30.19 Subd. 2. [FEE AND CONTENTS.] A salesperson or broker may 30.20 apply for a license by filing a fee of$25$50 and an 30.21 application with the commissioner which includes the following 30.22 information: 30.23 (1) the applicant's name, age, residence address, and, in 30.24 the case of a salesperson, the name and place of business of the 30.25 membership camping operator or broker on whose behalf the 30.26 salesperson will be acting; 30.27 (2) the applicant's date and place of birth; 30.28 (3) a statement whether or not the applicant within the 30.29 past ten years has been convicted of a misdemeanor or felony 30.30 involving theft, fraud, or dishonesty or whether or not the 30.31 applicant within the past ten years has been enjoined from, had 30.32 any civil penalty assessed for, or been found to have engaged in 30.33 any violation of any securities, land sales, camping, or 30.34 consumer protection statutes; 30.35 (4) a statement whether or not the applicant is named as a 30.36 defendant in a pending criminal indictment or proceeding 31.1 involving fraud, theft, or dishonesty or is a defendant in a 31.2 pending lawsuit arising out of alleged violations of securities, 31.3 land sales, camping, or consumer protection statutes. A copy of 31.4 the charge, complaint, or lawsuit shall be provided to the 31.5 commissioner; 31.6 (5) a statement describing the applicant's employment 31.7 history for the past five years and whether or not any 31.8 termination of employment during the last five years was 31.9 occasioned by a theft, fraud, or act of dishonesty; 31.10 (6) an affidavit certifying that the applicant is 31.11 knowledgeable concerning the provisions of this section and 31.12 sections 82A.05, 82A.13, and 82A.14, and any rules adopted under 31.13 those sections; 31.14 (7) a statement whether or not the applicant has ever been 31.15 licensed by this state or its political subdivisions to engage 31.16 in any other business or profession; whether any such license 31.17 has been denied, suspended, or revoked and, if so, the 31.18 circumstances of the denial, suspension, or revocation; 31.19 (8) such other information as the commissioner may 31.20 reasonably deem necessary to administer the provisions of 31.21 sections 82A.01 to 82A.26, by rule or order. 31.22 Sec. 15. Minnesota Statutes 1998, section 82A.16, 31.23 subdivision 6, is amended to read: 31.24 Subd. 6. [RENEWAL.] The license of a salesperson and 31.25 broker shall be renewed annually by the filing of a form 31.26 prescribed by the commissioner and payment of a fee of$10$25. 31.27 Sec. 16. Minnesota Statutes 1998, section 116J.415, 31.28 subdivision 5, is amended to read: 31.29 Subd. 5. [LOAN CRITERIA.] The following criteria apply to 31.30 loans made under the challenge grant program: 31.31 (1) loans must be made to businesses that are not likely to 31.32 undertake a project for which loans are sought without 31.33 assistance from the challenge grant program; 31.34 (2) a loan must be used for a project designed principally 31.35 to benefit low-income persons through the creation of job or 31.36 business opportunities for them; 32.1 (3) the minimum loan is $5,000 and the maximum 32.2 is$100,000$200,000; 32.3 (4) a loan may not exceed 50 percent of the total cost of 32.4 an individual project; 32.5 (5) a loan may not be used for a retail development 32.6 project; and 32.7 (6) a business applying for a loan, except a 32.8 microenterprise loan under subdivision 6, must be sponsored by a 32.9 resolution of the governing body of the local governmental unit 32.10 within whose jurisdiction the project is located. 32.11 Sec. 17. Minnesota Statutes 1998, section 116J.421, 32.12 subdivision 3, is amended to read: 32.13 Subd. 3. [DUTIES.] The center shall: 32.14 (1) research and identify present and emerging social and 32.15 economic issues for rural Minnesota, including health care, 32.16 transportation, crime, housing, and job training; 32.17 (2) forge alliances and partnerships with rural communities 32.18 to find practical solutions to economic and social problems; 32.19 (3) provide a resource center for rural communities on 32.20 issues of importance to them; 32.21 (4) encourage collaboration across higher education 32.22 institutions to provide interdisciplinary team approaches to 32.23 problem solving with rural communities; and 32.24 (5) involve students in center projects. 32.25 Sec. 18. Minnesota Statutes 1998, section 116J.421, is 32.26 amended by adding a subdivision to read: 32.27 Subd. 6. [USED APPROPRIATION.] State appropriations to the 32.28 board, whether from the general fund or the rural policy and 32.29 development fund, may, at the discretion of the board, be 32.30 expended for administration of the center and to carry out its 32.31 duties under this section or under other law. 32.32 Sec. 19. Minnesota Statutes 1998, section 116J.421, is 32.33 amended by adding a subdivision to read: 32.34 Subd. 7. [BOARD COMPENSATION AND OTHER 32.35 FUNDS.] Compensation and expense reimbursement of board members 32.36 is as provided in section 15.0575, subdivision 3. 33.1 Sec. 20. Minnesota Statutes 1998, section 116J.63, 33.2 subdivision 4, is amended to read: 33.3 Subd. 4. The office of tourism may market tourism-related 33.4 publications, trade, and mediapromotional materialpromotion 33.5 and advertising programs and information distribution to 33.6 businesses and organizations. The proceeds from the marketing 33.7 must be placed in a specialaccountrevenue accounts and are 33.8 appropriated to the commissioner toprepare and distribute the33.9office's publications and media promotional materialsimplement 33.10 the programs for which the revenue is collected. 33.11 Sec. 21. Minnesota Statutes 1998, section 116J.8745, 33.12 subdivision 1, is amended to read: 33.13 Subdivision 1. [TECHNICAL ASSISTANCE; LOAN 33.14 ADMINISTRATION.] The commissioner of trade and economic 33.15 development shall make grants to nonprofit organizations to 33.16 provide technical assistance to individualswith entrepreneurial33.17plans that require microenterprise loans in an amount ranging33.18from approximately $1,000 to $25,000, and for loan33.19administration costs related to those microenterprise loans.33.20Microenterprise is a small business which employs under five33.21employees plus the owner and requires under $25,000 to startto 33.22 support the startup and growth of self-employment and 33.23 microbusinesses. Eligible businesses are microenterprises 33.24 employing under five people plus the owner and requiring under 33.25 $25,000 or no capital to start or expand the business. Eligible 33.26 expenses include loan administration costs related to providing 33.27 microenterprise loans. 33.28 Sec. 22. Minnesota Statutes 1998, section 116J.8745, 33.29 subdivision 2, is amended to read: 33.30 Subd. 2. [GRANT ELIGIBILITY AND ALLOCATION.] Nonprofit 33.31 organizations must apply for grants under this section following 33.32 procedures established by the commissioner. To be eligible for 33.33 a grant, an organization must demonstrate to the commissioner 33.34 that it has the appropriate expertise. The commissioner shall 33.35 give preference for grants to organizations that target 33.36 nontraditional entrepreneurs such as women, members of a 34.1 minority, low-income individuals, or persons seeking work who 34.2 are currently on or recently removed from welfare assistance. 34.3 An application must include: 34.4 (1) the local need for microenterprise support; 34.5 (2) proposed criteria for business eligibility; 34.6 (3) proposals for identifying and serving eligible 34.7 businesses; 34.8 (4) a description of technical assistance to be provided to 34.9 eligible businesses; 34.10 (5) proposals to coordinate technical assistance with 34.11 financial assistance;and34.12 (6) a demonstration of ability to collaborate with other 34.13 agencies including educational and financial institutions; and 34.14 (7) project goals identifying the number of eligible 34.15 businesses to be assisted with the state funds awarded under the 34.16 grant. 34.17 Sec. 23. [116J.9665] [WORLD TRADE CENTER.] 34.18 Subdivision 1. [DEFINITIONS.] For purposes of this 34.19 section, the following terms have the meaning given them: 34.20 (1) "Conference and service center" means the approximately 34.21 20,000 square feet of space on the third and fourth floors of 34.22 the Minnesota world trade center that the state of Minnesota has 34.23 the right to possess, occupy, and use subject to the terms and 34.24 conditions of the development agreement. 34.25 (2) "Development agreement" means the agreement entered 34.26 into by and between the world trade center board, as agent of 34.27 the state of Minnesota, and Oxford Development Minnesota, Inc. 34.28 dated July 27, 1984, and the amendments to that agreement, for 34.29 development and construction of a world trade center at a 34.30 designated site in Minnesota. 34.31 (3) "Minnesota world trade center" means the facility 34.32 constructed in accordance with the development agreement or 34.33 other facilities meeting the membership requirements of the 34.34 World Trade Centers Association. 34.35 Subd. 2. [GENERALLY.] The commissioner shall facilitate 34.36 and support Minnesota world trade center programs and services 35.1 and promote the Minnesota world trade center. 35.2 Subd. 3. [POWERS.] In furtherance of the goals set forth 35.3 in subdivision 2, and in addition to the powers granted by 35.4 sections 116J.035 and 116J.966, the commissioner may: 35.5 (1) define, formulate, administer, and deliver programs and 35.6 services through the world trade center; 35.7 (2) establish satellite operations of the Minnesota world 35.8 trade center within the continental United States; 35.9 (3) accept gifts and grants from other sources; 35.10 (4) set and collect fees for services and programs; 35.11 (5) adopt membership requirements for an association of 35.12 members of the Minnesota world trade center; 35.13 (6) participate jointly with private persons, firms, 35.14 corporations, or organizations or with public entities in 35.15 appropriate programs or projects and enter into contracts to 35.16 spend money to carry out those programs or projects; 35.17 (7) acquire and dispose of personal property, including 35.18 inchoate and intellectual property, royalties, stock, and stock 35.19 warrants; 35.20 (8) enter into contracts or agreements with a federal or 35.21 state agency, individual, business entity, or other 35.22 organization; 35.23 (9) acquire and dispose of real property or an interest in 35.24 real property; and 35.25 (10) hold and maintain membership for the Minnesota world 35.26 trade center in the World Trade Centers Association. 35.27 Performance of these powers is not subject to chapters 14, 35.28 16A, 16B, and 16C. 35.29 Subd. 4. [DUTIES.] The commissioner shall: 35.30 (1) promote and market the Minnesota world trade center and 35.31 membership in the World Trade Center Association; 35.32 (2) sponsor conferences or other promotional events in the 35.33 conference and service center; 35.34 (3) sponsor, develop, and conduct educational programs 35.35 related to international trade; 35.36 (4) establish and maintain an office in the Minnesota world 36.1 trade center; and 36.2 (5) not duplicate programs or services provided by the 36.3 commissioner of agriculture. 36.4 Subd. 5. [PROMOTIONAL EXPENSES.] The commissioner may 36.5 expend money to carry out this section. Promotional expenses 36.6 include, but are not limited to, expenses for the food, lodging, 36.7 and travel of consultants and speakers, and publications and 36.8 other forms of advertising. Promotional expenditures may be 36.9 made in the same manner as expenditures made by private persons, 36.10 firms, corporations, or associations for similar purposes, and 36.11 are not subject to regulation by the commissioner of employee 36.12 relations. 36.13 Subd. 6. [WORLD TRADE CENTER ACCOUNT.] The world trade 36.14 center account is in the special revenue fund. All money 36.15 received from the use of the conference and service center or 36.16 appropriated under this section must be deposited in the 36.17 account. Money in the account including interest earned is 36.18 appropriated to the commissioner and must be used exclusively 36.19 for the purposes of this section. 36.20 Subd. 7. [SERVICE INFORMATION; CLASSIFICATION OF DATA.] (a) 36.21 Service information, including databases, purchased by the 36.22 commissioner or developed by the commissioner for sale pursuant 36.23 to this section, is not subject to chapter 13. 36.24 (b) For purposes of this subdivision, "business transaction" 36.25 means a transaction between parties other than the 36.26 commissioner. The following data received or developed by the 36.27 commissioner is private with respect to data on individuals and 36.28 nonpublic with respect to data not on individuals: 36.29 (1) data relating to the financial condition of individuals 36.30 or businesses receiving or performing services by or on behalf 36.31 of the commissioner in furtherance of this section; 36.32 (2) at the request of either party to the transaction data 36.33 on business transactions; and 36.34 (3) at the request of the person or business seeking the 36.35 information, the identities of persons or businesses requesting 36.36 business or trade information from the commissioner, and the 37.1 nature of the trade information. 37.2 Subd. 8. [USE OF CONFERENCE AND SERVICE CENTER.] The 37.3 commissioner shall operate or provide for the operation of the 37.4 conference and service center. Priority use of the conference 37.5 and service center must be given to programs and activities 37.6 related to international trade. The commissioner may permit use 37.7 of the center for public benefits and other revenue-raising 37.8 purposes only after all requests for use of the center for 37.9 international business have been accommodated. 37.10 Sec. 24. Minnesota Statutes 1998, section 116L.03, 37.11 subdivision 5, is amended to read: 37.12 Subd. 5. [TERMS.] The terms of appointed members shall be 37.13 for four years except for the initial appointments. The initial 37.14 appointments of the governor shall have the following terms: 37.15 two members each for one, two, three, and four years. 37.16 Compensation for board members will be allowable as provided for 37.17 in section 15.0575, subdivision 3. 37.18 Sec. 25. Minnesota Statutes 1998, section 116L.04, 37.19 subdivision 1a, is amended to read: 37.20 Subd. 1a. [PATHWAYS PROGRAM.] The pathways program may 37.21 provide grants-in-aid for developing programs which assist in 37.22 the transition of persons from welfare to work. The program is 37.23 to be operated by the board. The board shall consult and 37.24 coordinate withthe Job Training Partnership Act, Title II-A,37.25 program administrators at the department of economic security to 37.26 design and provide services for temporary assistance for needy 37.27 families recipients. 37.28 Pathways grants-in-aid may be awarded to educational or 37.29 other nonprofit training institutions for education and training 37.30 programs that serve public assistance recipients transitioning 37.31 from public assistance to employment. 37.32 Preference shall be given to projects that: 37.33 (1) provide employment with benefits paid to employees; 37.34 (2) provide employment where there are defined career paths 37.35 for trainees; 37.36 (3) pilot the development of an educational pathway that 38.1 can be used on a continuing basis for transitioning persons from 38.2 public assistance directly to work; and 38.3 (4) demonstrate the active participation of department of 38.4 economic security workforce centers, Minnesota state college and 38.5 university institutions and other educational institutions, and 38.6 local welfare agencies. 38.7 Pathways projects must demonstrate the active involvement 38.8 and financial commitment of private business. Pathways projects 38.9 must be matched with cash or in-kind contributions on at least a 38.10 one-to-one ratio by participating private business. 38.11 A single grant to any one institution shall not exceed 38.12$200,000$400,000. 38.13 The board shall annually, by March 31, report to the 38.14 commissioners of economic security and trade and economic 38.15 development on pathways programs, including the number of public 38.16 assistance recipients participating in the program, the number 38.17 of participants placed in employment, the salary and benefits 38.18 they receive, and the state program costs per participant. 38.19 Sec. 26. Minnesota Statutes 1998, section 116L.06, 38.20 subdivision 4, is amended to read: 38.21 Subd. 4. [LOAN TERMS.] Loans may be secured or unsecured, 38.22 shall be for a term of no more thantwofive years, and shall 38.23 bear no interest. The maximum amount of a loan is $250,000. A 38.24 loan origination fee of up to two percent of the principal of 38.25 the loan may be charged. An employer may have only one 38.26 outstanding loan. The loans shall contain such other standard 38.27 commercial loan terms as the board deems appropriate. 38.28 Sec. 27. Minnesota Statutes 1998, section 175.17, is 38.29 amended to read: 38.30 175.17 [POWERS AND DUTIES, COMMISSIONER OF THE DEPARTMENT 38.31 OF LABOR AND INDUSTRY.] 38.32 (1) The commissioner shall administer the laws relating to 38.33 workers' compensation and the laws governing employees of the 38.34 state, a county, or other governmental subdivisions who contract 38.35 tuberculosis; 38.36 (2) The commissioner shall adopt reasonable and proper 39.1 rules governing rules of practice before the workers' 39.2 compensation division in matters which are not before a 39.3 compensation judge; 39.4 (3) The commissioner shall collect, collate, and publish 39.5 statistical and other information relating to work under the 39.6 department's jurisdiction and make public reports the 39.7 commissioner judges necessary, including such other reports as 39.8 may be required by law; 39.9 (4) The commissioner shall establish and maintain branch 39.10 offices as needed for the conduct of the affairs of the workers' 39.11 compensation division; 39.12 (5) The commissioner may: 39.13 (a) apply for, receive, and spend money received from 39.14 federal, municipal, county, regional, and other government 39.15 agencies and private sources; and 39.16 (b) apply for, accept, and disburse grants and other aids 39.17 from public and private sources. 39.18 Sec. 28. Minnesota Statutes 1998, section 176.181, 39.19 subdivision 2a, is amended to read: 39.20 Subd. 2a. [APPLICATION FEE.] Every initial application 39.21 filed pursuant to subdivision 2 requesting authority to 39.22 self-insure shall be accompanied by a nonrefundable fee of 39.23$2,500$4,000. When an employer seeks to be added as a member 39.24 of an existing approved group under section 79A.03, subdivision 39.25 6, the proposed new member shall pay a nonrefundable$250$400 39.26 application fee to the commissioner at the time of application. 39.27 Each annual report due August 1 under section 79A.03, 39.28 subdivision 9, shall be accompanied by an annual fee 39.29 of$200$500. 39.30 Sec. 29. [178.12] [APPRENTICESHIP REGISTRATION ACCOUNT IN 39.31 SPECIAL REVENUE FUND.] 39.32 The apprenticeship registration account is established in 39.33 the special revenue fund of the state treasury. An annual 39.34 registration fee will be charged to each sponsor for each 39.35 apprentice registered in the program. The fee is established at 39.36 $130 per apprentice. Subsequent adjustments to this fee will be 40.1 made pursuant to section 16A.1285, subdivision 2. The fees 40.2 collected and any interest earned are appropriated to the 40.3 commissioner for purposes of this chapter. 40.4 Sec. 30. Minnesota Statutes 1998, section 237.295, 40.5 subdivision 1, is amended to read: 40.6 Subdivision 1. [PAYMENT FOR INVESTIGATION.] (a) Whenever 40.7 the department or commission, in a proceeding upon its own 40.8 motion, on complaint, or upon an application to it, considers it 40.9 necessary, in order to carry out the duties imposed on it, to 40.10 investigate the books, accounts, practices, and activities of 40.11 any company, parties to the proceeding shall pay the expenses 40.12 reasonably attributable to the proceeding. The department and 40.13 commission shall ascertain the expenses, and the department 40.14 shall render a bill for those expenses to the parties, at the 40.15 conclusion of the proceeding. The department is authorized to 40.16 submit billings to parties at intervals selected by the 40.17 department during the course of a proceeding. 40.18 (b) The allocation of costs may be adjusted for cause by 40.19 the commission during the course of the proceeding, or upon the 40.20 closing of the docket and issuance of an order. In addition to 40.21 the rights granted in subdivision 3, parties to a proceeding may 40.22 object to the allocation at any time during the proceeding. 40.23 Withdrawal by a party to a proceeding does not absolve the party 40.24 from paying allocated costs as determined by the commission. 40.25 The commission may decide that a party should not pay any 40.26 allocated costs of the proceeding. 40.27 (c) The bill constitutes notice of the assessment and a 40.28 demand for payment. The amount of the bills assessed by the 40.29 department under this subdivision must be paid by the parties 40.30 into the state treasury within 30 days from the date of 40.31 assessment. The total amount, in a calendar year, for which a 40.32 telephone company may become liable, by reason of costs incurred 40.33 by the department and commission within that calendar year, may 40.34 not exceed two-fifths of one percent of the gross jurisdictional 40.35 operating revenue of the telephone company in the last preceding 40.36 calendar year. Direct charges may be assessed without regard to 41.1 this limitation until the gross jurisdictional operating revenue 41.2 of the telephone company for the preceding calendar year has 41.3 been reported for the first time. Where, under this 41.4 subdivision, costs are incurred within a calendar year that are 41.5 in excess of two-fifths of one percent of the gross 41.6 jurisdictional operating revenues, the excess costs are not 41.7 chargeable as part of the remainder under subdivision 2. 41.8 (d) Except as otherwise provided in paragraph (e), for 41.9 purposes of assessing the cost of a proceeding to a party, 41.10 "party" means any entity or group subject to the laws and rules 41.11 of this state, however organized, whether public or private, 41.12 whether domestic or foreign, whether for profit or nonprofit, 41.13 and whether natural, corporate, or political, such as a business 41.14 or commercial enterprise organized as any type or combination of 41.15 corporation, limited liability company, partnership, limited 41.16 liability partnership, proprietorship, association, cooperative, 41.17 joint venture, carrier, or utility, and any successor or 41.18 assignee of any of them; a social or charitable organization; 41.19 and any type or combination of political subdivision, which 41.20 includes the executive, judicial, or legislative branch of the 41.21 state, a local government unit, an agency of the state or a 41.22 local government unit, or a combination of any of them. 41.23 (e) For assessment and billing purposes, "party" does not 41.24 include: 41.25 (i) the department of public service or the residential 41.26 utilities division of the office of attorney general; any entity 41.27 or group instituted primarily for the purpose of mutual help and 41.28 not conducted for profit; intervenors awarded compensation under 41.29 section 237.075, subdivision 10; or any individual or group or 41.30 counsel for the individual or group representing the interests 41.31 of end users or classes of end users of services provided by 41.32 telephone companies or telecommunications carriers, as 41.33 determined by the commission.; 41.34 (ii) political subdivisions of the state participating as 41.35 task force members, offering comments, or requesting or 41.36 appearing at a hearing in a rulemaking proceeding under section 42.1 237.163, subdivision 8, paragraph (a); or 42.2 (iii) political subdivisions of the state appearing before 42.3 the commission pursuant to a complaint brought under section 42.4 237.163, subdivision 8, paragraph (b). 42.5 The exemption in clauses (ii) and (iii) does not apply to a 42.6 municipality which owns or operates a telephone exchange within 42.7 its own borders pursuant to section 237.19 with regard to a 42.8 proceeding that could affect the operation of the municipality's 42.9 local exchange telephone service. 42.10 Sec. 31. Minnesota Statutes 1998, section 268.022, 42.11 subdivision 1, is amended to read: 42.12 Subdivision 1. [DETERMINATION AND COLLECTION OFSPECIAL 42.13 ASSESSMENT.] (a)In addition to all other taxes, assessments,42.14and payment obligations under chapter 268, each employer, except42.15an employer making payments in lieu of taxes is liable for a42.16special assessment levied at the rate of one-tenth of oneA 42.17 special assessment shall be levied during a calendar year upon 42.18 those employers which, pursuant to section 268.051, subdivision 42.19 1, are liable for reemployment insurance taxes, except an 42.20 employer that has, applicable to that calendar year: 42.21 (1) a reemployment insurance experience rating of zero 42.22 pursuant to section 268.051, subdivision 3; or 42.23 (2) been assigned the applicable reemployment insurance tax 42.24 rate for new employers pursuant to section 268.051, subdivision 42.25 5, paragraph (a). 42.26 The special assessment shall be .07 percentper yearon all 42.27 taxable wages, as defined in section268.04268.035, subdivision 42.2825b24. The special assessment shallbecome due andbe 42.29 paidby each employer to the departmenton the same schedule and 42.30 in the same manner asotherreemployment insurance taxes. 42.31 (b) The special assessmentlevied under this sectionis in 42.32 addition to, and shall not affect the computation ofany other42.33 reemployment insurance taxes, assessments,or other payment 42.34 obligationsdueunder this chapter. 42.35 (c)Notwithstanding any provision to the contrary,If on 42.36 June 30 of any year, beginning in the year 2001, the unobligated 43.1 balance of the special assessment fund under this section is 43.2 greater than$30,000,000$20,000,000, the special assessment for 43.3 the following calendar yearonlyshall belevied at a rate of43.41/20th of one0.03 percenton all taxable wages. 43.5 (d) If on July 1 of any year the seasonally adjusted total 43.6 rate of unemployment in Minnesota, as determined by the 43.7 commissioner, equaled or exceeded 5 percent for any six of the 43.8 prior 12 months, the commissioner may eliminate the exceptions 43.9 to assessment in paragraph (a), clauses (1) and (2), for the 43.10 following calendar year. 43.11 Sec. 32. Minnesota Statutes 1998, section 268.98, 43.12 subdivision 3, is amended to read: 43.13 Subd. 3. [COST LIMITATIONS.] (a) For purposes of sections 43.14 268.9781 and 268.9782, funds allocated to a grantee are subject 43.15 to the following limitations: 43.16 (1) a maximum of 15 percent for administration in a worker 43.17 adjustment services plan and ten percent in a dislocation event 43.18 services grant; 43.19 (2) a minimum of 50 percent for provision of training 43.20 assistance; 43.21 (3)a minimum of ten percent and maximum of 30 percent for43.22provision of support services; andno more than five percent 43.23 statewide may be allocated annually for support services, as 43.24 defined in section 268.975, subdivision 13; and 43.25 (4) the balance used for provision of basic readjustment 43.26 assistance. 43.27 (b) A waiver of the cost limitation on providing training 43.28 assistance may be requested. The waiver may not permit less 43.29 than 30 percent of the funds be spent on training assistance. 43.30 (c) The commissioner shall prescribe the form and manner 43.31 for submission of an application for a waiver under paragraph 43.32 (b). Criteria for granting a waiver shall be established by the 43.33 commissioner in consultation with the workforce development 43.34 council. 43.35 Sec. 33. Minnesota Statutes 1998, section 298.22, 43.36 subdivision 2, is amended to read: 44.1 Subd. 2. [IRON RANGE RESOURCES AND REHABILITATION BOARD.] 44.2 There is hereby created the iron range resources and 44.3 rehabilitation board, consisting of 11 members,fiveten of whom 44.4 arestate senatorsappointed by thesubcommittee on committees44.5of the rules committee of the senate, and five of whom are44.6representatives, appointed by the speaker of the house of44.7representatives. The members shall be appointed in January of44.8every odd-numbered yeargovernor, with advice and consent of the 44.9 senate. Terms, removal, compensation, and filling of vacancies 44.10 are governed by section 15.0575. No more than six members of 44.11 the board may support the same political party. The 11th member 44.12 of the board is the commissioner of natural resources. 44.13Vacancies on the board shall be filled in the same manner as the44.14original members were chosen. At least a majority of the44.15legislativeAll members of the boardshall be elected from state44.16senatorial or legislative districts in which over 50 percent of44.17the residentsother than the commissioner of natural resources 44.18 must reside within a tax relief area as defined in section 44.19 273.134. All expenditures and projects made by the commissioner 44.20 of iron range resources and rehabilitation shall first be 44.21 submitted to the iron range resources and rehabilitation board 44.22 for approval by at least eight board members of expenditures and 44.23 projects for rehabilitation purposes as provided by this 44.24 section, and the method, manner, and time of payment of all 44.25 funds proposed to be disbursed shall be first approved or 44.26 disapproved by the board. The board shall biennially make its 44.27 report to the governor and the legislature on or before November 44.28 15 of each even-numbered year. The expenses of the board shall 44.29 be paid by the state from the funds raised pursuant to this 44.30 section. 44.31 Sec. 34. Minnesota Statutes 1998, section 326.244, 44.32 subdivision 2, is amended to read: 44.33 Subd. 2. [PROCEDURE.] (a) At or before commencement of any 44.34 installation required to be inspected by the board, the 44.35 electrical contractor, installer, special electrician, or owner 44.36 making the installation shall submit to the board a request for 45.1 inspection, in a form prescribed by the board, together with the 45.2 fees required for the installation. 45.3 (b) The fees required are a handling fee and an inspection 45.4 fee, in the amounts set forth in subdivision 6.The handling45.5fee shall be set by the board in an amount sufficient to pay the45.6cost of printing and handling the form requesting an45.7inspection. The inspection fee shall be set by the board in an45.8amount sufficient to pay the actual costs of the inspection and45.9the board's costs in administering the inspection. All fees45.10shall be set pursuant to the procedure of sections 14.001 to45.1114.69.45.12 (c) If the inspector finds that the installation is not in 45.13 compliance with accepted standards of construction for safety to 45.14 life and property as required by section 326.243, the inspector 45.15 shall by written order condemn the installation or noncomplying 45.16 portion thereof, or order service to the installation 45.17 disconnected, and shall send a copy of the order to the board. 45.18 If the installation or the noncomplying part will seriously and 45.19 proximately endanger human life and property, the order of the 45.20 inspector, when approved by the inspector's superior, shall 45.21 require immediate condemnation or disconnection. In all other 45.22 cases, the order of the inspector shall permit a reasonable 45.23 opportunity for the installation to be brought into compliance 45.24 with accepted standards of construction for safety to life and 45.25 property prior to the effective time established for 45.26 condemnation or disconnection. 45.27 (d) Copies of each condemnation or disconnection order 45.28 shall be served personally or by mail upon the property owner, 45.29 and the electrical contractor, installer, or special electrician 45.30 making the installation, and other persons as the board by rule 45.31 may direct. An aggrieved party may appeal any condemnation or 45.32 disconnection order by filing with the board a notice of appeal 45.33 within ten days after (1) service upon the aggrieved party of 45.34 the condemnation or disconnection order, if this service is 45.35 required, or (2) filing of the order with the board, whichever 45.36 is later. The appeal shall proceed and the order of the 46.1 inspector shall have the effect the order, by its terms, and the 46.2 rules of the board provides. The board shall adopt rules 46.3 providing procedures for the conduct of appeals, including 46.4 provisions for the stay of enforcement of the order of the 46.5 inspector pending such appeal when justified by the 46.6 circumstances. 46.7 Sec. 35. Minnesota Statutes 1998, section 326.244, is 46.8 amended by adding a subdivision to read: 46.9 Subd. 6. [FEE SCHEDULE.] State electrical inspection fees 46.10 shall be paid according to the following schedule. 46.11 (a) The minimum fee for each separate inspection of an 46.12 installation, replacement, alteration, or repair limited to one 46.13 inspection only is $15. 46.14 (b) The inspection fee for each service, change of service, 46.15 temporary service, power supply unit, addition, alteration, or 46.16 repair to a service or power supply unit shall be: 0- to and 46.17 including 200-ampere capacity, $15; for each additional 46.18 100-ampere capacity or fraction thereof, $5. A separate request 46.19 for electrical inspection shall be filed for temporary services. 46.20 (c) The fee for each circuit or feeder, or addition, 46.21 alteration, or repair of a circuit or feeder including the 46.22 equipment served, and including circuits fed from feeders, 46.23 except as provided for in paragraph (d), clauses (1) to (11), 46.24 shall be: 46.25 (1) 0- to and including 100-ampere capacity, $4; and 46.26 (2) for each additional 100-ampere capacity or fraction 46.27 thereof, $2. 46.28 (d) Limitations and additions to the fees of paragraphs (a) 46.29 to (c): 46.30 (1) The fee for a single-family dwelling shall not exceed 46.31 $55 if the electrical service is not over 200-ampere capacity. 46.32 This fee includes not more than three inspections. The fee for 46.33 a single-family dwelling over 200- to and including 400-ampere 46.34 capacity shall not exceed $100. This fee includes not more than 46.35 four inspections. These fees shall apply to each separate 46.36 service, and include the service, feeders, circuits, fixtures, 47.1 and equipment. The fee for additional inspections shall be the 47.2 reinspection fee in paragraph (f). Multifamily dwellings with 47.3 individual services to each unit are computed at the 47.4 single-family dwelling rate. 47.5 (2) The fee for each farm building or farm structure with a 47.6 service not over 200-ampere capacity shall not exceed $55. This 47.7 fee includes not more than three inspections. The fee for each 47.8 building or structure with a service over 200- to and including 47.9 400-ampere capacity shall not exceed $100. This fee includes 47.10 not more than four inspections. These fees include the 47.11 services, feeders, circuits, fixtures, and equipment. The fee 47.12 for additional inspections shall be the reinspection fee in 47.13 paragraph (f). Pole-top current metering and pole-top 47.14 disconnecting means on the farm yard pole are exempt from 47.15 inspection and inspection fees. 47.16 (3) The fee for each unit of a multifamily dwelling having 47.17 three to six dwelling units shall not exceed $30. The fee for 47.18 each multifamily dwelling exceeding six units shall not exceed 47.19 $20 per dwelling unit. This fee includes only the wiring in an 47.20 individual dwelling unit and the final feeder to that unit. The 47.21 fee for the service and all other circuits shall be as specified 47.22 in paragraphs (a) to (c), except that the fee for each house 47.23 panel shall not exceed $55. A separate request for electrical 47.24 inspection is required for each building. The fee for a 47.25 two-unit dwelling or duplex shall be the same as for two 47.26 single-family dwellings. 47.27 (4) Recreational vehicle parks fees shall be in accordance 47.28 with paragraphs (a) to (c). 47.29 (5) The fee for mobile home park stalls shall be $6 per 47.30 unit stall exclusive of the feeder to the mobile home with a 47.31 minimum fee of $15 per inspection trip. The fee for permanently 47.32 installed feeders shall be in accordance with paragraph (c). 47.33 (6) In addition to the preceding fees in this paragraph, 47.34 the fee for each street lighting standard shall be $1, and the 47.35 fee for each traffic signal standard shall be $2. Circuits 47.36 originating within the standard shall not be used when computing 48.1 the fee. 48.2 (7) In addition to the preceding fees in this paragraph, 48.3 the fees for all transformers and generators for light, heat, 48.4 and power shall be $5 per unit plus $3 per ten-kilovolt-amperes 48.5 or fraction thereof. The maximum fee for a transformer or 48.6 generator in this category is $40. 48.7 (8) In addition to the preceding fees in this paragraph, 48.8 the inspection fees for transformers for signs and outline 48.9 lighting shall be $5 per unit. 48.10 (9) In addition to the preceding fees in this paragraph, 48.11 unless included in the maximum fee, the inspection fee for 48.12 remote control, signal, alarm, or communication circuits and 48.13 circuits of less than 50 volts shall be $5 for ten openings or 48.14 devices of each system plus $2 for each additional ten or 48.15 fraction thereof, with a minimum fee of $15 per inspection trip. 48.16 (10) In addition to the preceding fees in this paragraph, 48.17 the inspection fee for each separate inspection of a swimming 48.18 pool shall be $15. Reinforcing steel and bonding for swimming 48.19 pools requires a rough-in inspection. 48.20 (11) In addition to the preceding fees in this paragraph, 48.21 the fee for all wiring on center pivot irrigation booms shall be 48.22 $30. The fees for all other wiring for the irrigation system 48.23 shall be as specified in this subdivision. 48.24 (e) Investigation fees: Work without a request for 48.25 electrical inspection. 48.26 (1) Whenever any work for which a request for electrical 48.27 inspection is required by the board has begun without first 48.28 obtaining the request for inspection, a special investigation 48.29 shall be made before a request for electrical inspection is 48.30 accepted by the board. 48.31 (2) An investigation fee, in addition to the full fee 48.32 required by paragraphs (a) to (d), shall be paid before an 48.33 inspection is made. The investigation fee shall be equal to the 48.34 amount of the fee required by paragraphs (a) to (d). The 48.35 payment of the investigation fee does not exempt any person from 48.36 compliance with all other provisions of the board rules or 49.1 statutes nor from any penalty prescribed by law. 49.2 (f) When reinspection is necessary to determine whether 49.3 unsafe conditions have been corrected and the conditions are not 49.4 the subject of an appeal pending before the board or any court, 49.5 a reinspection fee of $15 may be assessed in writing by the 49.6 inspector. 49.7 (g) For inspections not covered in this subdivision, or for 49.8 requested special inspections or services, the fee shall be $23 49.9 per hour, including travel time, plus 24 cents per mile 49.10 traveled, plus the reasonable cost of equipment or material 49.11 consumed. This provision is applicable to inspection of empty 49.12 conduits and other jobs as may be determined by the board. 49.13 (h) For inspection of transient projects, including but not 49.14 limited to carnivals and circuses, the inspection fees shall be 49.15 as specified in this paragraph. 49.16 The fee for inspection of power supply units shall be that 49.17 fee specified in paragraph (b). A like fee will be required for 49.18 power supply units at each engagement during the season. Rides, 49.19 devices, or concessions shall be inspected at their first 49.20 appearance of the season, and the inspection fee shall be $15 49.21 per unit. 49.22 In addition to the fee for the power supply units, there 49.23 shall be a general inspection for each engagement during the 49.24 season at the hourly rate, with a two-hour minimum. In addition 49.25 to the above fees, inspections required on Saturdays, Sundays, 49.26 holidays, or after regular business hours will be at the hourly 49.27 rate, including travel time. An owner of a migratory amusement 49.28 enterprise shall notify the board of its season itinerary and 49.29 make application for initial inspection a minimum of 14 days 49.30 before its first engagement in the state. For subsequent 49.31 engagements not listed on the itinerary sent to the board, where 49.32 the board is not notified at least 48 hours in advance, a charge 49.33 of $100 will be made in addition to all required fees. Also, a 49.34 fee at the hourly rate will be charged for additional time spent 49.35 by the inspector if the equipment is not ready for inspection at 49.36 the time and date specified on the request for electrical 50.1 inspection. The fee for reinspection of corrections is $15 for 50.2 each reinspection. 50.3 (i) The handling fee to pay the cost of printing and 50.4 handling of the form requesting an inspection shall be $1. 50.5 Sec. 36. Minnesota Statutes 1998, section 326.86, 50.6 subdivision 1, is amended to read: 50.7 Subdivision 1. [LICENSING FEE.] The licensing fee for 50.8 persons licensed pursuant to sections 326.83 to 326.991 50.9 is$75$100 per year.The commissioner may adjust the fees50.10under section 16A.1285 to recover the costs of administration50.11and enforcement. The fees must be limited to the cost of50.12license administration and enforcement and must be deposited in50.13the state treasury and credited to the general fund.50.14 Sec. 37. Minnesota Statutes 1998, section 446A.072, 50.15 subdivision 4, is amended to read: 50.16 Subd. 4. [FUNDING LEVEL.] (a) The authority shall provide 50.17 supplemental assistance for essential project component costs as 50.18 certified by the commissioner of the pollution control agency 50.19 under section 116.182, subdivision 4. 50.20 (b) A municipality may not receive more than $4,000,000 50.21 under this section unless specifically approved by law. 50.22 (c) The authority shall provide supplemental assistance for 50.23 up to one-half of the eligible grant funding level determined by 50.24 the United States Department of Agriculture Rural Development 50.25 funding for projects listed on the agency's project priority 50.26 list, in priority order. For municipalities that are not 50.27 eligible for United States Department of Agriculture Rural 50.28 Development funding for wastewater, the authority shall provide 50.29 supplemental assistance for: (1) essential project component 50.30 costs calculated by first determining the amount needed to 50.31 reduce a municipality's annual residential sewer costs to 1.4 50.32 percent of the municipality's median household income or $25 per 50.33 month per household, whichever is greater, and then multiplying 50.34 that amount by 80 percent to determine the actual award amount 50.35 to supplement loans under section 446A.07; and (2) up to 50 50.36 percent of the incremental costs specifically identified by the 51.1 agency as being attributable to more stringent wastewater 51.2 standards required to protect outstanding resource value waters 51.3 or outstanding international resource value waters. 51.4 (d) Notwithstanding paragraph (b), in the event that a 51.5 municipality's monthly residential sewer service charges average 51.6 above $50, the authority will provide 90 percent of the grant 51.7 amount needed to reduce the average monthly sewer service charge 51.8 to $50, provided the project is ranked in the top 50 percentile 51.9 of the agency's intended use plan. 51.10 (e)Notwithstanding paragraphs (b), (c), and (d), a51.11municipality with an annual median household income of $40,00051.12or greater shall not be eligible for a grant, except for51.13incremental costs specifically identified by the agency as being51.14attributable to more stringent wastewater standards required to51.15protect outstanding resource value waters or outstanding51.16international resource value waters.51.17(f)The authority shall provide supplemental assistance to 51.18 a municipality that would not otherwise qualify for supplemental 51.19 assistance if: 51.20 (1) the municipality voluntarily accepts a sewer connection 51.21 from another governmental unit to serve residential, industrial, 51.22 or commercial developments that were completed before March 1, 51.23 1996, or are on lots whose plats were recorded before that date; 51.24 and 51.25 (2) fees charged by the municipality for the connection 51.26 must take into account state and federal grants used by the 51.27 municipality for the construction of the treatment plant. 51.28 The amount of supplemental assistance under this paragraph must 51.29 be sufficient to reduce debt service payments under section 51.30 446A.07 to an extent equivalent to a zero percent loan in an 51.31 amount up to the other governmental unit's project costs 51.32 necessary for connection. Eligibility for supplemental 51.33 assistance under this paragraph ends three years after the 51.34 agency certifies that the connection has met the operational 51.35 performance standards established by the agency. 51.36 Sec. 38. Minnesota Statutes 1998, section 462A.20, 52.1 subdivision 2, is amended to read: 52.2 Subd. 2. [WHICH MONEY IN FUND.] There shall be paid into 52.3 the housing development fund: 52.4 (a) Any moneys appropriated and made available by the state 52.5 for the purposes of the fund; 52.6 (b) Any moneys which the agency receives in repayment of 52.7 advances made from the fund; 52.8 (c) Any other moneys which may be made available to the 52.9 agency for the purpose of the fund from any other source or 52.10 sources; 52.11 (d) All fees and charges collected by the agency; 52.12 (e) All interest or other income not required by the 52.13 provisions of a resolution or indenture securing notes or bonds 52.14 to be paid into another special fund; but the agency shall not52.15expend money for its cost of general administration of agency52.16programs in any fiscal year in excess of such limit for such52.17fiscal year as may be established by law. "Cost of general52.18administration of agency programs" does not include debt52.19service, amortization of deferred financing costs, loan52.20origination costs, professional and other contractual services,52.21any deposit or expenditure required to be made by the provisions52.22of a bond or note resolution or indenture, or any deposit or52.23expenditure made to preserve the security for the bonds or notes. 52.24 Sec. 39. Minnesota Statutes 1998, section 462A.20, is 52.25 amended by adding a subdivision to read: 52.26 Subd. 2a. [OPERATING COSTS REPORT.] On or before February 52.27 15 of each year, the agency shall deliver a report to the chairs 52.28 of the finance and appropriations committees of the legislature 52.29 on the costs of operating the agency in the previous fiscal year. 52.30 The report shall include the expenditures for salaries and 52.31 benefits, rent, professional and technical services, general 52.32 agency administration, and agency's audited financial statements 52.33 which include information on expenditures and receipts relating 52.34 to debt issuance and administration and loan origination and 52.35 administration. The report shall include a budget plan for 52.36 salaries and benefits, rent, professional and technical 53.1 services, and general administration for the current fiscal 53.2 year, including estimates of changes in costs from the previous 53.3 fiscal year. If it appears that the costs in the current fiscal 53.4 year will exceed the budget plan contained in the report 53.5 submitted under this subdivision, the agency must submit a 53.6 revised budget plan to the commissioner of finance and obtain 53.7 the commissioner's concurrence with the revised plan. 53.8 Sec. 40. Minnesota Statutes 1998, section 462A.204, is 53.9 amended by adding a subdivision to read: 53.10 Subd. 8. [SCHOOL STABILITY DEMONSTRATION.] (a) The agency 53.11 in consultation with the interagency task force on homelessness 53.12 may establish a school stability demonstration project under the 53.13 family homeless prevention and assistance program. The purpose 53.14 of the demonstration project is to secure stable housing for 53.15 families with school-age children who have moved frequently and 53.16 for unaccompanied youth. For purposes of this subdivision, 53.17 "unaccompanied youth" are minors who are leaving foster care or 53.18 juvenile correctional facilities, or minors who meet the 53.19 definition of a child in need of services or protection under 53.20 section 260.015, subdivision 2a, but for whom no court finding 53.21 has been made pursuant to that statute. 53.22 (b) The agency shall make grants to family homeless 53.23 prevention and assistance projects in communities with a school 53.24 or schools that have a significant degree of student mobility. 53.25 (c) Each demonstration project must be designed to reduce 53.26 school absenteeism; stabilize children in one home setting, or 53.27 at a minimum, in one school setting; and reduce shelter usage. 53.28 Each demonstration project must include plans for the following: 53.29 (1) targeting of families with children under age 12 who, 53.30 in the last 12 months have either: changed schools or homes at 53.31 least once or been absent from school at least 15 percent of the 53.32 school year and who have either been evicted from their housing; 53.33 are living in overcrowded or hazardous lead conditions in their 53.34 current housing; or are paying more than 50 percent of their 53.35 income for rent; 53.36 (2) targeting of unaccompanied youth in need of an 54.1 alternative residential setting; 54.2 (3) connecting families with the social services necessary 54.3 to maintain the family's stability in their home; 54.4 (4) connecting families with job training programs; 54.5 (5) assessing the impact of the demonstration project on 54.6 student performance and report its findings to the agency; and 54.7 (6) one or more of the following: 54.8 (i) provision of rental assistance for a specified period 54.9 of time, which may exceed 24 months provided they have applied 54.10 for section 8 housing assistance; or 54.11 (ii) development of permanent supportive housing or 54.12 transitional housing. 54.13 (d) Notwithstanding subdivision 2, grants under this 54.14 section may be used to acquire, rehabilitate, or construct 54.15 transitional or permanent housing. 54.16 (e) Each grantee under the demonstration project must 54.17 include representatives of the local school district or targeted 54.18 schools, or both, and of the local community correction agencies 54.19 on its advisory committee. 54.20 (f) Beginning in 2001, each grantee shall submit an annual 54.21 demonstration project report to the state interagency task force 54.22 on homelessness. The report must include the actual program 54.23 results compared to program objectives, including for the 54.24 families served in the project a comparison before and after 54.25 assistance from the demonstration project of the rate of school 54.26 absenteeism, the number of residential and school moves, and the 54.27 number of incidents and length of homeless shelter usage, and 54.28 academic progress. 54.29 Sec. 41. Minnesota Statutes 1998, section 462A.209, is 54.30 amended to read: 54.31 462A.209 [HOME OWNERSHIP ASSISTANCE.] 54.32 Subdivision 1. [FULL CYCLE HOME OWNERSHIP SERVICES.] The 54.33 full cycle home ownership services program shall be used to fund 54.34 nonprofit organizations and political subdivisions providing, 54.35 building capacity to provide, or supporting full cycle lending 54.36 for home ownership to low and moderate income home buyers and 55.1 homeowners, including seniors. The purpose of the program is to 55.2 encourage private investment in affordable housing and 55.3 collaboration of nonprofit organizations and political 55.4 subdivisions with each other and private lenders in providing 55.5 full cycle lending services. 55.6 Subd. 2. [DEFINITION.] "Full cycle home ownership 55.7 services" means supporting eligible home buyers and owners 55.8 through all phases of purchasing and keeping a home, by 55.9 providing prepurchase home buyer education, prepurchase 55.10 counseling and credit repair, prepurchase property inspection 55.11 and technical and financial assistance to buyers in 55.12 rehabilitating the home, postpurchaseandcounseling including 55.13 home equity conversion loan counseling, mortgage default 55.14 counseling, postpurchase assistance with home maintenance, entry 55.15 cost assistance, and access to flexible loan products. 55.16 Subd. 3. [ELIGIBILITY.] The agency shall establish 55.17 eligibility criteria for nonprofit organizations and political 55.18 subdivisions to receive funding under this section. The 55.19 eligibility criteria must require the nonprofit organization or 55.20 political subdivision to provide, to build capacity to provide, 55.21 or support full cycle home ownership services for eligible home 55.22 buyers. The agency may fund a nonprofit organization or 55.23 political subdivision that will provide full cycle home 55.24 ownership services by coordinating with one or more other 55.25 organizations that will provide specific components of full 55.26 cycle home ownership services. The agency may make exceptions 55.27 to providing all components of full cycle lending if justified 55.28 by the application. If there are more applicants requesting 55.29 funding than there are funds available, the agency shall award 55.30 the funds on a competitive basis and also assure an equitable 55.31 geographic distribution of the available funds. The eligibility 55.32 criteria must require the nonprofit organization or political 55.33 subdivision to have a demonstrated involvement in the local 55.34 community and to target the housing affordability needs of the 55.35 local community or, in the case of home equity conversion loan 55.36 counseling, to have demonstrated experience with counseling 56.1 older persons on housing, to be knowledgeable about programs in 56.2 Minnesota that may provide alternatives to home equity 56.3 conversion, and to provide the counseling in Minnesota. 56.4 Partnerships and collaboration with innovative, grass roots, or 56.5 community-based initiatives shall be encouraged. The agency 56.6 shall give priority to nonprofit organizations and political 56.7 subdivisions that provide matching funds. Applicants for funds 56.8 under section 462A.057 may also apply funds under this program. 56.9 Subd. 4. [ENTRY COST HOME OWNERSHIP OPPORTUNITY PROGRAM.] 56.10 The agency may establish an entry cost home ownership 56.11 opportunity program, on terms and conditions it deems advisable, 56.12 to assist individuals with downpayment and closing costs to 56.13 finance the purchase of a home. 56.14 Sec. 42. Minnesota Statutes 1998, section 462A.21, is 56.15 amended by adding a subdivision to read: 56.16 Subd. 25. [FULL CYCLE HOMEOWNERSHIP SERVICES.] The agency 56.17 may spend money for the purposes of section 462A.209 and may pay 56.18 the costs and expenses necessary and incidental to the 56.19 development and operation of the program. 56.20 Sec. 43. [ACCOUNTABILITY MEASURES.] 56.21 The commissioner of economic security shall adopt 56.22 accountability measures to ensure that money from the dedicated 56.23 fund established under Minnesota Statutes, section 268.022, 56.24 allocated for training assistance and support services, as 56.25 defined in Minnesota Statutes, section 268.975, subdivisions 12 56.26 and 13, is used to further the purposes of the program. The 56.27 commissioner shall report to the legislature by October 1, 1999, 56.28 on the accountability measures and shall make the measures 56.29 effective by November 1, 1999. 56.30 Sec. 44. [GRANT REQUIREMENTS WAIVED.] 56.31 A grant by the commissioner of trade and economic 56.32 development to Grant county for community infrastructure 56.33 improvements needed to develop value-added agriprocessing 56.34 facilities is not subject to the maximum grant limitation of 56.35 Minnesota Statutes, section 116J.8731, subdivision 5, or agency 56.36 policy regarding maximum grant per job created. 57.1 Sec. 45. [REPORT TO LEGISLATURE.] 57.2 The commissioner of the Minnesota housing finance agency 57.3 shall report to the legislature by February 1, 2001, on current 57.4 and proposed strategies related to HIV/AIDS for coordinating 57.5 local, state, and federal housing resources to address 57.6 identified opportunities and needs, plans for future 57.7 implementation, and recommendations for future legislative 57.8 action. The commissioner shall consult with the commissioners 57.9 of health and human services and representatives of affected 57.10 populations in preparing this report. 57.11 Sec. 46. [PRINCIPLES ESTABLISHED.] 57.12 When considering potential state investments to assist 57.13 Minnesota's mining industry, the commissioner of trade and 57.14 economic development will consider the following principles: 57.15 (1) any state investment should receive a direct financial 57.16 return and should be structured as a loan or equity investment; 57.17 (2) investment decisions should take into account the 57.18 evolution of the entire mining industry and should not be made 57.19 solely with reference to individual projects; 57.20 (3) in the case of large development projects, state funds 57.21 should be disbursed at the same time as the majority of other 57.22 funds committed to the project and should not be available for 57.23 predevelopment or early stage funding; 57.24 (4) the commissioner of trade and economic development will 57.25 direct consideration of state investments in the mining industry 57.26 in consultation with the commissioners of natural resources, 57.27 revenue, the pollution control agency, and the iron range 57.28 resources and rehabilitation board; and 57.29 (5) no state investment will be made without thorough 57.30 review, including independent professional analysis as needed, 57.31 of all financial aspects of the investment. 57.32 Sec. 47. [MEMBERSHIP AGREEMENT.] 57.33 The commissioner shall request the executive board of the 57.34 World Trade Centers Association to transfer the membership of 57.35 the Minnesota world trade center corporation in the World Trade 57.36 Centers Association to the department of trade and economic 58.1 development, Minnesota trade office. 58.2 Sec. 48. [TRANSFERS.] 58.3 All of the rights and obligations of the Minnesota world 58.4 trade center corporation under the development agreement and all 58.5 existing contracts related to the approximately 20,000 square 58.6 feet to which the world trade center corporation is a party or 58.7 beneficiary is transferred to the state of Minnesota, department 58.8 of trade and economic development, Minnesota trade office. All 58.9 other property of the world trade center corporation is 58.10 transferred and appropriated to the commissioner per Minnesota 58.11 Statutes 1998, section 15.039. 58.12 Sec. 49. [TRANSFER OF POSITIONS AND EMPLOYEES.] 58.13 All positions and employees of the world trade conference 58.14 center are transferred to the executive branch of the state 58.15 government under the department of trade and economic 58.16 development on July 1, 1999, under the following conditions. 58.17 The commissioner of employee relations will determine which 58.18 positions are to be placed in the classified service and which 58.19 are placed in the unclassified service of the state in 58.20 accordance with appropriate provisions of Minnesota Statutes, 58.21 chapter 43A. The commissioner will allocate positions to 58.22 appropriate classes in the state classification plan. Positions 58.23 transferred with their incumbents do not create vacancies in 58.24 state service. 58.25 Employees transferred to unlimited classified positions are 58.26 transferred to state service without examinations. Those 58.27 transferred to positions in the managerial plan pursuant to 58.28 Minnesota Statutes, section 43A.18, subdivision 3, who have 58.29 completed 12 months of service in their position and all others 58.30 who have completed six months of service in their positions are 58.31 transferred with permanent status. Employees transferred to 58.32 managerial positions with less than 12 months of service in 58.33 their positions are transferred with probationary status. 58.34 However, all time spent by these employees in the positions must 58.35 be credited toward meeting the probationary period requirement 58.36 of the contract or plan governing the classification to which 59.1 their positions have been assigned. 59.2 Employees transferred to limited classified positions or to 59.3 temporary unclassified positions shall receive emergency, 59.4 temporary, or temporary unclassified appointments under 59.5 provisions of Minnesota Statutes, section 43A.15, subdivisions 2 59.6 and 3, or Minnesota Statutes, section 43A.08, subdivision 2a, as 59.7 appropriate. 59.8 The appointing authority and incumbent employees of 59.9 unlimited positions whose positions have been assigned by the 59.10 department of employee relations to classes in the state 59.11 classification plan shall have access to the provisions of 59.12 Minnesota Statutes, section 43A.07, subdivision 3, regarding 59.13 protested allocation of their positions effective July 1, 1999, 59.14 and for 30 days thereafter. 59.15 Sec. 50. [SPENDING APPROVED.] 59.16 Requests to spend federal funds from the commissioners of 59.17 economic security, trade and economic development, and public 59.18 service for which further review was requested under Minnesota 59.19 Statutes, section 3.3005, subdivision 2a, in February 1999, are 59.20 approved for the purposes indicated in the requests. 59.21 Sec. 51. [REPEALER.] 59.22 (a) Minnesota Statutes 1998, sections 44A.001; 44A.01; 59.23 44A.02; 44A.023; 44A.025; 44A.031; 44A.0311; 44A.06; 44A.08; and 59.24 44A.11, are repealed. 59.25 (b) Minnesota Statutes 1998, sections 138A.01; 138A.02; 59.26 138A.03; 138A.04; 138A.05; 138A.06; 462A.28; 469.305; 469.306; 59.27 469.307; 469.308; and 469.31, are repealed. 59.28 (c) Minnesota Statutes 1998, sections 341.01; 341.02; 59.29 341.04; 341.045; 341.05; 341.06; 341.07; 341.08; 341.09; 341.10; 59.30 341.11; 341.115; 341.12; 341.13; and 341.15, are repealed. 59.31 (d) Laws 1998, chapter 404, section 13, subdivision 5, is 59.32 repealed. 59.33 Sec. 52. [EFFECTIVE DATES.] 59.34 Section 44 is effective the day following final enactment. 59.35 Sections 48 is effective June 30, 1999. 59.36 Section 51, paragraph (a), is effective July 1, 1999. 60.1 Section 51, paragraph (b), is effective July 1, 1999. 60.2 Section 51, paragraph (c), is effective June 30, 2000. 60.3 Section 51, paragraph (d), is effective the day following 60.4 final enactment. 60.5 ARTICLE 3 60.6 HEALTH MAINTENANCE ORGANIZATIONS 60.7 Section 1. Minnesota Statutes 1998, section 62D.01, 60.8 subdivision 2, is amended to read: 60.9 Subd. 2. (a) Faced with the continuation of mounting costs 60.10 of health care coupled with its inaccessibility to large 60.11 segments of the population, the legislature has determined that 60.12 there is a need to explore alternative methods for the delivery 60.13 of health care services, with a view toward achieving greater 60.14 efficiency and economy in providing these services. 60.15 (b) It is, therefore, the policy of the state to eliminate 60.16 the barriers to the organization, promotion, and expansion of 60.17 health maintenance organizations; to provide for their 60.18 regulation by the state commissioner ofhealthcommerce and the 60.19 state commissioner of health; and to exempt them from the 60.20 operation of the insurance and nonprofit health service plan 60.21 corporation laws of the state except as hereinafter provided. 60.22 (c) It is further the intention of the legislature to 60.23 closely monitor the development of health maintenance 60.24 organizations in order to assess their impact on the costs of 60.25 health care to consumers, the accessibility of health care to 60.26 consumers, and the quality of health care provided to consumers. 60.27 Sec. 2. Minnesota Statutes 1998, section 62D.02, 60.28 subdivision 3, is amended to read: 60.29 Subd. 3. "Commissioner ofhealthcommerce" or 60.30 "commissioner" means the state commissioner ofhealthcommerce 60.31 or a designee. 60.32 Sec. 3. Minnesota Statutes 1998, section 62D.02, is 60.33 amended by adding a subdivision to read: 60.34 Subd. 17. [QUALITY OF CARE.] "Quality of care" means the 60.35 degree to which health services for individuals and populations 60.36 are consistent with current professional knowledge and accepted 61.1 standards for: 61.2 (1) availability and access to provider network and care 61.3 management systems; 61.4 (2) provider credentialing and monitoring procedures and 61.5 needs of the community and individuals served; 61.6 (3) process for appropriate, effective, patient-centered 61.7 care delivery consistent with accepted practice parameters; and 61.8 (4) patient satisfaction and increased likelihood of 61.9 desired clinical and functional outcomes. 61.10 Sec. 4. Minnesota Statutes 1998, section 62D.03, 61.11 subdivision 1, is amended to read: 61.12 Subdivision 1. Notwithstanding any law of this state to 61.13 the contrary, any nonprofit corporation organized to do so or a 61.14 local governmental unit may apply to the commissionerof health61.15 for a certificate of authority to establish and operate a health 61.16 maintenance organization in compliance with sections 62D.01 to 61.17 62D.30. No person shall establish or operate a health 61.18 maintenance organization in this state, nor sell or offer to 61.19 sell, or solicit offers to purchase or receive advance or 61.20 periodic consideration in conjunction with a health maintenance 61.21 organization or health maintenance contract unless the 61.22 organization has a certificate of authority under sections 61.23 62D.01 to 62D.30. 61.24 Sec. 5. Minnesota Statutes 1998, section 62D.03, 61.25 subdivision 3, is amended to read: 61.26 Subd. 3. The commissioner or commissioner of health may 61.27 require any person providing physician and hospital services 61.28 with payments made in the manner set forth in section 62D.02, 61.29 subdivision 4, to apply for a certificate of authority under 61.30 sections 62D.01 to 62D.30. An applicant may continue to operate 61.31 until the commissionerof healthacts upon the application. In 61.32 the event that an application is denied, the applicant shall 61.33 henceforth be treated as a health maintenance organization whose 61.34 certificate of authority has been revoked. Any person directed 61.35 to apply for a certificate of authority shall be subject to the 61.36 provisions of this subdivision. 62.1 Sec. 6. Minnesota Statutes 1998, section 62D.03, 62.2 subdivision 4, is amended to read: 62.3 Subd. 4. Each application for a certificate of authority 62.4 shall be verified by an officer or authorized representative of 62.5 the applicant, and shall be in a form prescribed by the 62.6 commissionerof health. Each application shall include the 62.7 following: 62.8 (a) a copy of the basic organizational document, if any, of 62.9 the applicant and of each major participating entity; such as 62.10 the articles of incorporation, or other applicable documents, 62.11 and all amendments thereto; 62.12 (b) a copy of the bylaws, rules and regulations, or similar 62.13 document, if any, and all amendments thereto which regulate the 62.14 conduct of the affairs of the applicant and of each major 62.15 participating entity; 62.16 (c) a list of the names, addresses, and official positions 62.17 of the following: 62.18 (1) all members of the board of directors, or governing 62.19 body of the local government unit, and the principal officers 62.20 and shareholders of the applicant organization; and 62.21 (2) all members of the board of directors, or governing 62.22 body of the local government unit, and the principal officers of 62.23 the major participating entity and each shareholder beneficially 62.24 owning more than ten percent of any voting stock of the major 62.25 participating entity; 62.26 The commissioner may by rule identify persons included in 62.27 the term "principal officers"; 62.28 (d) a full disclosure of the extent and nature of any 62.29 contract or financial arrangements between the following: 62.30 (1) the health maintenance organization and the persons 62.31 listed in clause (c)(1); 62.32 (2) the health maintenance organization and the persons 62.33 listed in clause (c)(2); 62.34 (3) each major participating entity and the persons listed 62.35 in clause (c)(1) concerning any financial relationship with the 62.36 health maintenance organization; and 63.1 (4) each major participating entity and the persons listed 63.2 in clause (c)(2) concerning any financial relationship with the 63.3 health maintenance organization; 63.4 (e) the name and address of each participating entity and 63.5 the agreed upon duration of each contract or agreement; 63.6 (f) a copy of the form of each contract binding the 63.7 participating entities and the health maintenance organization. 63.8 Contractual provisions shall be consistent with the purposes of 63.9 sections 62D.01 to 62D.30, in regard to the services to be 63.10 performed under the contract, the manner in which payment for 63.11 services is determined, the nature and extent of 63.12 responsibilities to be retained by the health maintenance 63.13 organization, the nature and extent of risk sharing permissible, 63.14 and contractual termination provisions; 63.15 (g) a copy of each contract binding major participating 63.16 entities and the health maintenance organization. Contract 63.17 information filed with the commissioner shall be confidential 63.18 and subject to the provisions of section 13.37, subdivision 1, 63.19 clause (b), upon the request of the health maintenance 63.20 organization. 63.21 Upon initial filing of each contract, the health 63.22 maintenance organization shall file a separate document 63.23 detailing the projected annual expenses to the major 63.24 participating entity in performing the contract and the 63.25 projected annual revenues received by the entity from the health 63.26 maintenance organization for such performance. The commissioner 63.27 shall disapprove any contract with a major participating entity 63.28 if the contract will result in an unreasonable expense under 63.29 section 62D.19. The commissioner shall approve or disapprove a 63.30 contract within 30 days of filing. 63.31 Within 120 days of the anniversary of the implementation of 63.32 each contract, the health maintenance organization shall file a 63.33 document detailing the actual expenses incurred and reported by 63.34 the major participating entity in performing the contract in the 63.35 preceding year and the actual revenues received from the health 63.36 maintenance organization by the entity in payment for the 64.1 performance; 64.2 (h) a statement generally describing the health maintenance 64.3 organization, its health maintenance contracts and separate 64.4 health service contracts, facilities, and personnel, including a 64.5 statement describing the manner in which the applicant proposes 64.6 to provide enrollees with comprehensive health maintenance 64.7 services and separate health services; 64.8 (i) a copy of the form of each evidence of coverage to be 64.9 issued to the enrollees; 64.10 (j) a copy of the form of each individual or group health 64.11 maintenance contract and each separate health service contract 64.12 which is to be issued to enrollees or their representatives; 64.13 (k) financial statements showing the applicant's assets, 64.14 liabilities, and sources of financial support. If the 64.15 applicant's financial affairs are audited by independent 64.16 certified public accountants, a copy of the applicant's most 64.17 recent certified financial statement may be deemed to satisfy 64.18 this requirement; 64.19 (l) a description of the proposed method of marketing the 64.20 plan, a schedule of proposed charges, and a financial plan which 64.21 includes a three-year projection of the expenses and income and 64.22 other sources of future capital; 64.23 (m) a statement reasonably describing the geographic area 64.24 or areas to be served and the type or types of enrollees to be 64.25 served; 64.26 (n) a description of the complaint procedures to be 64.27 utilized as required under section 62D.11; 64.28 (o) a description of the procedures and programs to be 64.29 implemented to meet the requirements of section 62D.04, 64.30subdivision 1, clauses (b) and (c)subdivision 1a, paragraph 64.31 (a), clauses (1) and (2), and to monitor the quality of health 64.32 care provided to enrollees; 64.33 (p) a description of the mechanism by which enrollees will 64.34 be afforded an opportunity to participate in matters of policy 64.35 and operation under section 62D.06; 64.36 (q) a copy of any agreement between the health maintenance 65.1 organization and an insurer or nonprofit health service 65.2 corporation regarding reinsurance, stop-loss coverage, 65.3 insolvency coverage, or any other type of coverage for potential 65.4 costs of health services, as authorized in sections 62D.04, 65.5 subdivision 1, clause (f), 62D.05, subdivision 3, and 62D.13; 65.6 (r) a copy of the conflict of interest policy which applies 65.7 to all members of the board of directors and the principal 65.8 officers of the health maintenance organization, as described in 65.9 section 62D.04, subdivision 1, paragraph (g). All currently65.10licensed health maintenance organizations shall also file a65.11conflict of interest policy with the commissioner within 60 days65.12after August 1, 1990, or at a later date if approved by the65.13commissioner; 65.14 (s) a copy of the statement that describes the health 65.15 maintenance organization's prior authorization administrative 65.16 procedures; 65.17 (t) a copy of the agreement between the guaranteeing 65.18 organization and the health maintenance organization, as 65.19 described in section 62D.043, subdivision 6; and 65.20 (u) other information as the commissionerof healthmay 65.21 reasonably require to be provided. 65.22 Sec. 7. Minnesota Statutes 1998, section 62D.04, 65.23 subdivision 1, is amended to read: 65.24 Subdivision 1. Upon receipt of an application for a 65.25 certificate of authority, the commissionerof healthshall 65.26 determine whether the applicant for a certificate of authority 65.27 has: 65.28(a) demonstrated the willingness and potential ability to65.29assure that health care services will be provided in such a65.30manner as to enhance and assure both the availability and65.31accessibility of adequate personnel and facilities;65.32(b) arrangements for an ongoing evaluation of the quality65.33of health care;65.34(c) a procedure to develop, compile, evaluate, and report65.35statistics relating to the cost of its operations, the pattern65.36of utilization of its services, the quality, availability and66.1accessibility of its services, and such other matters as may be66.2reasonably required by regulation of the commissioner of health;66.3(d) reasonable provisions for emergency and out of area66.4health care services;66.5(e)(a) demonstrated that it is financially responsible and 66.6 may reasonably be expected to meet its obligations to enrollees 66.7 and prospective enrollees. In making this determination, the 66.8 commissionerof healthshall require the amounts of net worth 66.9 and working capital required in section 62D.042, the deposit 66.10 required in section 62D.041, and in addition shall consider: 66.11 (1) the financial soundness of its arrangements for health 66.12 care services and the proposed schedule of charges used in 66.13 connection therewith; 66.14 (2) arrangements which will guarantee for a reasonable 66.15 period of time the continued availability or payment of the cost 66.16 of health care services in the event of discontinuance of the 66.17 health maintenance organization; and 66.18 (3) agreements with providers for the provision of health 66.19 care services; 66.20(f)(b) demonstrated that it will assume full financial 66.21 risk on a prospective basis for the provision of comprehensive 66.22 health maintenance services, including hospital care; provided, 66.23 however, that the requirement in this paragraph shall not 66.24 prohibit the following: 66.25 (1) a health maintenance organization from obtaining 66.26 insurance or making other arrangements (i) for the cost of 66.27 providing to any enrollee comprehensive health maintenance 66.28 services, the aggregate value of which exceeds $5,000 in any 66.29 year, (ii) for the cost of providing comprehensive health care 66.30 services to its members on a nonelective emergency basis, or 66.31 while they are outside the area served by the organization, or 66.32 (iii) for not more than 95 percent of the amount by which the 66.33 health maintenance organization's costs for any of its fiscal 66.34 years exceed 105 percent of its income for such fiscal years; 66.35 and 66.36 (2) a health maintenance organization from having a 67.1 provision in a group health maintenance contract allowing an 67.2 adjustment of premiums paid based upon the actual health 67.3 services utilization of the enrollees covered under the 67.4 contract, except that at no time during the life of the contract 67.5 shall the contract holder fully self-insure the financial risk 67.6 of health care services delivered under the contract. Risk 67.7 sharing arrangements shall be subject to the requirements of 67.8 sections 62D.01 to 62D.30; 67.9(g)(c) demonstrated that it has made provisions for and 67.10 adopted a conflict of interest policy applicable to all members 67.11 of the board of directors and the principal officers of the 67.12 health maintenance organization. The conflict of interest 67.13 policy shall include the procedures described in section 67.14 317A.255, subdivisions 1 and 2. However, the commissioner is 67.15 not precluded from finding that a particular transaction is an 67.16 unreasonable expense as described in section 62D.19 even if the 67.17 directors follow the required procedures; and 67.18(h)(d) otherwise met the requirements of sections 62D.01 67.19 to 62D.30. 67.20 Sec. 8. Minnesota Statutes 1998, section 62D.04, is 67.21 amended by adding a subdivision to read: 67.22 Subd. 1a. [REVIEW BY COMMISSIONER OF HEALTH.] (a) Upon 67.23 receipt of an application for a certificate of authority, the 67.24 commissioner shall request that the commissioner of health 67.25 certify whether the applicant has: 67.26 (1) demonstrated the willingness and potential ability to 67.27 assure that health care services will be provided in such a 67.28 manner so as to enhance and assure both the availability and 67.29 accessibility of adequate personnel and facilities; 67.30 (2) arrangements for an ongoing evaluation of the quality 67.31 of health care; 67.32 (3) a procedure to develop, compile, evaluate, and report 67.33 statistics relating to the cost of its operations, the pattern 67.34 of utilization of its services, the quality, availability and 67.35 accessibility of its services, and such other matters as may be 67.36 reasonably required by rule of the commissioner; and 68.1 (4) reasonable provisions for emergency and out-of-area 68.2 health care services. 68.3 (b) The commissioner of health shall provide the 68.4 certification, or notification that certification is not 68.5 forthcoming, to the commissioner within the time period 68.6 specified in subdivision 2. 68.7 Sec. 9. Minnesota Statutes 1998, section 62D.04, 68.8 subdivision 2, is amended to read: 68.9 Subd. 2. Within 90 days after the receipt of the 68.10 application for a certificate of authority, the commissionerof68.11healthshall determine whether or not the applicant meets the 68.12 requirements of this section. If the commissionerof health68.13 determines that the applicant meets the requirements of sections 68.14 62D.01 to 62D.30, the commissioner shall issue a certificate of 68.15 authority to the applicant. The commissioner shall not issue a 68.16 certificate without the certification by the commissioner of 68.17 health required by subdivision 1a. If the commissionerof68.18healthdetermines that the applicant is not qualified, the 68.19 commissioner shall so notify the applicant and shall specify the 68.20 reason or reasons for such disqualification. 68.21 Sec. 10. Minnesota Statutes 1998, section 62D.04, 68.22 subdivision 4, is amended to read: 68.23 Subd. 4. [CONTINUED COMPLIANCE.] Upon being granted a 68.24 certificate of authority to operate as a health maintenance 68.25 organization, the organization must continue to operate in 68.26 compliance with the standards set forth insubdivision 168.27 subdivisions 1 and 1a. Noncompliance may result in the 68.28 imposition of a fine or the suspension or revocation of the 68.29 certificate of authority, in accordance with sections 62D.15 to 68.30 62D.17. The commissioner of health shall inform the 68.31 commissioner of any failure to comply with subdivision 1a. 68.32 Sec. 11. Minnesota Statutes 1998, section 62D.05, 68.33 subdivision 6, is amended to read: 68.34 Subd. 6. [SUPPLEMENTAL BENEFITS.] (a) A health maintenance 68.35 organization may, as a supplemental benefit, provide coverage to 68.36 its enrollees for health care services and supplies received 69.1 from providers who are not employed by, under contract with, or 69.2 otherwise affiliated with the health maintenance organization. 69.3 Supplemental benefits may be provided if the following 69.4 conditions are met: 69.5 (1) a health maintenance organization desiring to offer 69.6 supplemental benefits must at all times comply with the 69.7 requirements of sections 62D.041 and 62D.042; 69.8 (2) a health maintenance organization offering supplemental 69.9 benefits must maintain an additional surplus in the first year 69.10 supplemental benefits are offered equal to the lesser of 69.11 $500,000 or 33 percent of the supplemental benefit expenses. At 69.12 the end of the second year supplemental benefits are offered, 69.13 the health maintenance organization must maintain an additional 69.14 surplus equal to the lesser of $1,000,000 or 33 percent of the 69.15 supplemental benefit expenses. At the end of the third year 69.16 benefits are offered and every year after that, the health 69.17 maintenance organization must maintain an additional surplus 69.18 equal to the greater of $1,000,000 or 33 percent of the 69.19 supplemental benefit expenses. When in the judgment of the 69.20 commissioner the health maintenance organization's surplus is 69.21 inadequate, the commissioner may require the health maintenance 69.22 organization to maintain additional surplus; 69.23 (3) claims relating to supplemental benefits must be 69.24 processed in accordance with the requirements of section 69.25 72A.201; and 69.26 (4) in marketing supplemental benefits, the health 69.27 maintenance organization shall fully disclose and describe to 69.28 enrollees and potential enrollees the nature and extent of the 69.29 supplemental coverage, and any claims filing and other 69.30 administrative responsibilities in regard to supplemental 69.31 benefits. 69.32 (b) The commissioner may, pursuant to chapter 14, adopt, 69.33 enforce, and administer rules relating to this subdivision, 69.34 including: rules insuring that these benefits are supplementary 69.35 and not substitutes for comprehensive health maintenance 69.36 services by addressing percentage of out-of-plan coverage; rules 70.1 relating to the establishment of necessary financial reserves; 70.2 rules relating to marketing practices; and other rules necessary 70.3 for the effective and efficient administration of this 70.4 subdivision. The commissioner, in adopting rules, shall give 70.5 consideration to existing laws and rules administered and 70.6 enforced by thedepartment of commercecommissioner relating to 70.7 health insurance plans. 70.8 Sec. 12. Minnesota Statutes 1998, section 62D.06, 70.9 subdivision 2, is amended to read: 70.10 Subd. 2. The governing body shall establish a mechanism to 70.11 afford the enrollees an opportunity to express their opinions in 70.12 matters of policy and operation through the establishment of 70.13 advisory panels, by the use of advisory referenda on major 70.14 policy decisions, or through the use of other mechanisms as may 70.15 be prescribed or permitted by the commissionerof health. 70.16 Sec. 13. Minnesota Statutes 1998, section 62D.07, 70.17 subdivision 2, is amended to read: 70.18 Subd. 2. No evidence of coverage or contract, or amendment 70.19 thereto shall be issued or delivered to any person in this state 70.20 until a copy of the form of the evidence of coverage or contract 70.21 or amendment thereto has been filed with the commissionerof70.22healthpursuant to section 62D.03 or 62D.08. 70.23 Sec. 14. Minnesota Statutes 1998, section 62D.07, 70.24 subdivision 3, is amended to read: 70.25 Subd. 3. Contracts and evidences of coverage shall contain: 70.26 (a) No provisions or statements which are unjust, unfair, 70.27 inequitable, misleading, deceptive, or which are untrue, 70.28 misleading, or deceptive as defined in section 62D.12, 70.29 subdivision 1; 70.30 (b) A clear, concise and complete statement of: 70.31 (1) the health care services and the insurance or other 70.32 benefits, if any, to which the enrollee is entitled under the 70.33 health maintenance contract; 70.34 (2) any exclusions or limitations on the services, kind of 70.35 services, benefits, or kind of benefits, to be provided, 70.36 including any deductible or copayment feature and requirements 71.1 for referrals, prior authorizations, and second opinions; 71.2 (3) where and in what manner information is available as to 71.3 how services, including emergency and out of area services, may 71.4 be obtained; 71.5 (4) the total amount of payment and copayment, if any, for 71.6 health care services and the indemnity or service benefits, if 71.7 any, which the enrollee is obligated to pay with respect to 71.8 individual contracts, or an indication whether the plan is 71.9 contributory or noncontributory with respect to group 71.10 certificates; and 71.11 (5) a description of the health maintenance organization's 71.12 method for resolving enrollee complaints and a statement 71.13 identifying the commissioner as an external source with whom 71.14 complaints may be registered; and 71.15 (c) On the cover page of the evidence of coverage and 71.16 contract, a clear and complete statement of enrollees' rights. 71.17 The statement must be in bold print and captioned "Important 71.18 Enrollee Information and Enrollee Bill of Rights" and must 71.19 include but not be limited to the following provisions in the 71.20 following language or in substantially similar language approved 71.21 in advance by the commissioner, except that paragraph (8) does 71.22 not apply to prepaid health plans providing coverage for 71.23 programs administered by the commissioner of human services: 71.24 ENROLLEE INFORMATION 71.25 (1) COVERED SERVICES: Services provided by (name of health 71.26 maintenance organization) will be covered only if services are 71.27 provided by participating (name of health maintenance 71.28 organization) providers or authorized by (name of health 71.29 maintenance organization). Your contract fully defines what 71.30 services are covered and describes procedures you must follow to 71.31 obtain coverage. 71.32 (2) PROVIDERS: Enrolling in (name of health maintenance 71.33 organization) does not guarantee services by a particular 71.34 provider on the list of providers. When a provider is no longer 71.35 part of (name of health maintenance organization), you must 71.36 choose among remaining (name of the health maintenance 72.1 organization) providers. 72.2 (3) REFERRALS: Certain services are covered only upon 72.3 referral. See section (section number) of your contract for 72.4 referral requirements. All referrals to non-(name of health 72.5 maintenance organization) providers and certain types of health 72.6 care providers must be authorized by (name of health maintenance 72.7 organization). 72.8 (4) EMERGENCY SERVICES: Emergency services from providers 72.9 who are not affiliated with (name of health maintenance 72.10 organization) will be covered only if proper procedures are 72.11 followed. Your contract explains the procedures and benefits 72.12 associated with emergency care from (name of health maintenance 72.13 organization) and non-(name of health maintenance organization) 72.14 providers. 72.15 (5) EXCLUSIONS: Certain services or medical supplies are 72.16 not covered. You should read the contract for a detailed 72.17 explanation of all exclusions. 72.18 (6) CONTINUATION: You may convert to an individual health 72.19 maintenance organization contract or continue coverage under 72.20 certain circumstances. These continuation and conversion rights 72.21 are explained fully in your contract. 72.22 (7) CANCELLATION: Your coverage may be canceled by you or 72.23 (name of health maintenance organization) only under certain 72.24 conditions. Your contract describes all reasons for 72.25 cancellation of coverage. 72.26 (8) NEWBORN COVERAGE: If your health plan provides for 72.27 dependent coverage, a newborn infant is covered from birth, but 72.28 only if services are provided by participating (name of health 72.29 maintenance organization) providers or authorized by (name of 72.30 health maintenance organization). Certain services are covered 72.31 only upon referral. (Name of health maintenance organization) 72.32 will not automatically know of the infant's birth or that you 72.33 would like coverage under your plan. You should notify (name of 72.34 health maintenance organization) of the infant's birth and that 72.35 you would like coverage. If your contract requires an 72.36 additional premium for each dependent, (name of health 73.1 maintenance organization) is entitled to all premiums due from 73.2 the time of the infant's birth until the time you notify (name 73.3 of health maintenance organization) of the birth. (Name of 73.4 health maintenance organization) may withhold payment of any 73.5 health benefits for the newborn infant until any premiums you 73.6 owe are paid. 73.7 (9) PRESCRIPTION DRUGS AND MEDICAL EQUIPMENT: Enrolling in 73.8 (name of health maintenance organization) does not guarantee 73.9 that any particular prescription drug will be available nor that 73.10 any particular piece of medical equipment will be available, 73.11 even if the drug or equipment is available at the start of the 73.12 contract year. 73.13 ENROLLEE BILL OF RIGHTS 73.14 (1) Enrollees have the right to available and accessible 73.15 services including emergency services, as defined in your 73.16 contract, 24 hours a day and seven days a week; 73.17 (2) Enrollees have the right to be informed of health 73.18 problems, and to receive information regarding treatment 73.19 alternatives and risks which is sufficient to assure informed 73.20 choice; 73.21 (3) Enrollees have the right to refuse treatment, and the 73.22 right to privacy of medical and financial records maintained by 73.23 the health maintenance organization and its health care 73.24 providers, in accordance with existing law; 73.25 (4) Enrollees have the right to file a complaint with the 73.26 health maintenance organization and the commissioner ofhealth73.27 commerce and the right to initiate a legal proceeding when 73.28 experiencing a problem with the health maintenance organization 73.29 or its health care providers; 73.30 (5) Enrollees have the right to a grace period of 31 days 73.31 for the payment of each premium for an individual health 73.32 maintenance contract falling due after the first premium during 73.33 which period the contract shall continue in force; 73.34 (6) Medicare enrollees have the right to voluntarily 73.35 disenroll from the health maintenance organization and the right 73.36 not to be requested or encouraged to disenroll except in 74.1 circumstances specified in federal law; and 74.2 (7) Medicare enrollees have the right to a clear 74.3 description of nursing home and home care benefits covered by 74.4 the health maintenance organization. 74.5 Sec. 15. Minnesota Statutes 1998, section 62D.07, 74.6 subdivision 10, is amended to read: 74.7 Subd. 10. An individual health maintenance organization 74.8 contract and an evidence of coverage must contain a department 74.9 ofhealthcommerce telephone number that the enrollee can call 74.10 to register a complaint about a health maintenance organization. 74.11 Sec. 16. Minnesota Statutes 1998, section 62D.08, 74.12 subdivision 1, is amended to read: 74.13 Subdivision 1. A health maintenance organization shall, 74.14 unless otherwise provided for by rules adopted by the 74.15 commissionerof health, file notice with the commissionerof74.16healthprior to any modification of the operations or documents 74.17 described in the information submitted under clauses (a), (b), 74.18 (e), (f), (g), (i), (j), (l), (m), (n), (o), (p), (q), (r), (s), 74.19 and (t) of section 62D.03, subdivision 4. If the modification 74.20 involves the operations or documents described in the 74.21 information submitted under section 62D.03, subdivision 4, 74.22 clause (o), the notice of modification must be filed with the 74.23 commissioner of health at the same time it is filed with the 74.24 commissioner. The commissioner of health shall provide the 74.25 commissioner with a recommendation on the approval or 74.26 disapproval of the modifications within 60 days of the filing. 74.27 If the commissionerof healthdoes not disapprove of the filing 74.28 within 60 days, it shall be deemed approved and may be 74.29 implemented by the health maintenance organization. 74.30 Sec. 17. Minnesota Statutes 1998, section 62D.08, 74.31 subdivision 2, is amended to read: 74.32 Subd. 2. Every health maintenance organization shall 74.33 annually, on or before April 1, file a verified report with the 74.34 commissionerof healthand with the commissioner of health, 74.35 covering the preceding calendar year. However, utilization data 74.36 required under subdivision 3, clause (c), shall be filed on or 75.1 before July 1. 75.2 Sec. 18. Minnesota Statutes 1998, section 62D.08, 75.3 subdivision 3, is amended to read: 75.4 Subd. 3. Such report shall be on forms prescribed by the 75.5 commissionerof health, and shall include: 75.6 (a) A financial statement of the organization, including 75.7 its balance sheet and receipts and disbursements for the 75.8 preceding year certified by an independent certified public 75.9 accountant, reflecting at least (1) all prepayment and other 75.10 payments received for health care services rendered, (2) 75.11 expenditures to all providers, by classes or groups of 75.12 providers, and insurance companies or nonprofit health service 75.13 plan corporations engaged to fulfill obligations arising out of 75.14 the health maintenance contract, (3) expenditures for capital 75.15 improvements, or additions thereto, including but not limited to 75.16 construction, renovation or purchase of facilities and capital 75.17 equipment, and (4) a supplementary statement of assets, 75.18 liabilities, premium revenue, and expenditures for risk sharing 75.19 business under section 62D.04, subdivision 1, on forms 75.20 prescribed by the commissioner; 75.21 (b) The number of new enrollees enrolled during the year, 75.22 the number of group enrollees and the number of individual 75.23 enrollees as of the end of the year and the number of enrollees 75.24 terminated during the year; 75.25 (c) A summary of information compiled pursuant to section 75.26 62D.04,subdivision 1, clause (c)subdivision 1a, paragraph (a), 75.27 clause (3), in such form as may be required by the 75.28 commissionerof health; 75.29 (d) A report of the names and addresses of all persons set 75.30 forth in section 62D.03, subdivision 4, clause (c), who were 75.31 associated with the health maintenance organization or the major 75.32 participating entity during the preceding year, and the amount 75.33 of wages, expense reimbursements, or other payments to such 75.34 individuals for services to the health maintenance organization 75.35 or the major participating entity, as those services relate to 75.36 the health maintenance organization, including a full disclosure 76.1 of all financial arrangements during the preceding year required 76.2 to be disclosed pursuant to section 62D.03, subdivision 4, 76.3 clause (d); 76.4 (e) A separate report addressing health maintenance 76.5 contracts sold to individuals covered by Medicare, title XVIII 76.6 of the Social Security Act, as amended, including the 76.7 information required under section 62D.30, subdivision 6; and 76.8 (f) Such other information relating to the performance of 76.9 the health maintenance organization as is reasonably necessary 76.10 to enable the commissionerof healthto carry out the duties 76.11 under sections 62D.01 to 62D.30. 76.12 Sec. 19. Minnesota Statutes 1998, section 62D.08, 76.13 subdivision 4, is amended to read: 76.14 Subd. 4. Any health maintenance organization which fails 76.15 to file a verified report with the commissioner and with the 76.16 commissioner of health on or before April 1 of the year due 76.17 shall be subject to the levy of a fine up to $500 for each day 76.18 the report is past due. This failure will serve as a basis for 76.19 other disciplinary action against the organization, including 76.20 suspension or revocation, in accordance with sections 62D.15 to 76.21 62D.17 and chapter 45. The commissioner may grant an extension 76.22 of the reporting deadline upon good cause shown by the health 76.23 maintenance organization. Any fine levied or disciplinary 76.24 action taken against the organization under this subdivision is 76.25 subject to the contested case and judicial review provisions of 76.26 sections 14.57 to 14.69. 76.27 Sec. 20. Minnesota Statutes 1998, section 62D.08, 76.28 subdivision 5, is amended to read: 76.29 Subd. 5. Every health maintenance organization shall 76.30 inform the commissioner of any change in the information 76.31 described in section 62D.03, subdivision 4, clause (e), 76.32 including any change in address, any modification of the 76.33 duration of any contract or agreement, and any addition to the 76.34 list of participating entities, within ten working days of the 76.35 notification of the change. Any cancellation or discontinuance 76.36 of any contract or agreement listed in section 62D.03, 77.1 subdivision 4, clause (e), or listed subsequently in accordance 77.2 with this subdivision, shall be reported to the commissioner 120 77.3 days before the effective date. When the health maintenance 77.4 organization terminates a provider for cause, death, disability, 77.5 or loss of license, the health maintenance organization must 77.6 notify the commissioner within three working days of the date 77.7 the health maintenance organization sends out or receives the 77.8 notice of cancellation, discontinuance, or termination. Any 77.9 health maintenance organization which fails to notify the 77.10 commissioner within the time periods prescribed in this 77.11 subdivision shall be subject to the levy of a fine up to $200 77.12 per contract for each day the notice is past due, accruing up to 77.13 the date the organization notifies the commissioner of the 77.14 cancellation or discontinuance. Any fine levied under this 77.15 subdivision is subject to the contested case and judicial review 77.16 provisions of chapter 14. The levy of a fine does not preclude 77.17 the commissioner from using other penalties described in 77.18 sections 62D.15 to 62D.17 and chapter 45. 77.19 Sec. 21. Minnesota Statutes 1998, section 62D.09, 77.20 subdivision 1, is amended to read: 77.21 Subdivision 1. (a) Any written marketing materials which 77.22 may be directed toward potential enrollees and which include a 77.23 detailed description of benefits provided by the health 77.24 maintenance organization shall include a statement of enrollee 77.25 information and rights as described in section 62D.07, 77.26 subdivision 3, paragraphs (b) and (c). Prior to any oral 77.27 marketing presentation, the agent marketing the plan must inform 77.28 the potential enrollees that any complaints concerning the 77.29 material presented should be directed to the health maintenance 77.30 organization, the commissionerof health, or, if applicable, the 77.31 employer. 77.32 (b) Detailed marketing materials must affirmatively 77.33 disclose all exclusions and limitations in the organization's 77.34 services or kinds of services offered to the contracting party, 77.35 including but not limited to the following types of exclusions 77.36 and limitations: 78.1 (1) health care services not provided; 78.2 (2) health care services requiring copayments or 78.3 deductibles paid by enrollees; 78.4 (3) the fact that access to health care services does not 78.5 guarantee access to a particular provider type; and 78.6 (4) health care services that are or may be provided only 78.7 by referral of a physician. 78.8 (c) No marketing materials may lead consumers to believe 78.9 that all health care needs will be covered. All marketing 78.10 materials must alert consumers to possible uncovered expenses 78.11 with the following language in bold print: "THIS HEALTH CARE 78.12 PLAN MAY NOT COVER ALL YOUR HEALTH CARE EXPENSES; READ YOUR 78.13 CONTRACT CAREFULLY TO DETERMINE WHICH EXPENSES ARE COVERED." 78.14 Immediately following the disclosure required under paragraph 78.15 (b), clause (3), consumers must be given a telephone number to 78.16 use to contact the health maintenance organization for specific 78.17 information about access to provider types. 78.18 (d) The disclosures required in paragraphs (b) and (c) are 78.19 not required on billboards or image, and name identification 78.20 advertisement. 78.21 Sec. 22. Minnesota Statutes 1998, section 62D.09, 78.22 subdivision 8, is amended to read: 78.23 Subd. 8. Each health maintenance organization shall issue 78.24 a membership card to its enrollees. The membership card must: 78.25 (1) identify the health maintenance organization; 78.26 (2) include the name, address, and telephone number to call 78.27 if the enrollee has a complaint; 78.28 (3) include the telephone number to call or the instruction 78.29 on how to receive authorization for emergency care; and 78.30 (4) include one of the following: 78.31 (i) the telephone number to call to appeal to or file a 78.32 complaint with the commissionerof health; or 78.33 (ii) for persons enrolled under section 256B.69, 256D.03, 78.34 or 256L.12, the telephone number to call to file a complaint 78.35 with the ombudsperson designated by the commissioner of human 78.36 services under section 256B.69 and the address to appeal to the 79.1 commissioner of human services. The ombudsperson shall annually 79.2 provide the commissionerof healthwith a summary of complaints 79.3 and actions taken. 79.4 Sec. 23. Minnesota Statutes 1998, section 62D.10, 79.5 subdivision 4, is amended to read: 79.6 Subd. 4. A health plan may apply to the commissionerof79.7healthfor a waiver of the requirements of this section or for 79.8 authorization to impose such underwriting restrictions upon open 79.9 enrollment as are necessary (a) to preserve its financial 79.10 stability, (b) to prevent excessive adverse selection by 79.11 prospective enrollees, or (c) to avoid unreasonably high or 79.12 unmarketable charges for enrollee coverage for health care 79.13 services. The commissionerof healthupon a showing of good 79.14 cause, shall approve or upon failure to show good cause shall 79.15 deny such application within 30 days of the receipt thereof from 79.16 the health plan. The commissionerof healthmay, in accordance 79.17 with chapter 14, promulgate rules to implement this section. 79.18 Sec. 24. Minnesota Statutes 1998, section 62D.11, 79.19 subdivision 1b, is amended to read: 79.20 Subd. 1b. [EXPEDITED RESOLUTION OF COMPLAINTS ABOUT 79.21 MEDICALLY URGENT SERVICES.] In addition to any remedy contained 79.22 in subdivision 1a, when a complaint involves a dispute about a 79.23 health maintenance organization's coverage of a medically urgent 79.24 service, the commissioner or the commissioner of health may also 79.25 order the health maintenance organization to use an expedited 79.26 system to process the complaint. 79.27 Sec. 25. Minnesota Statutes 1998, section 62D.11, 79.28 subdivision 2, is amended to read: 79.29 Subd. 2. The health maintenance organization shall 79.30 maintain a record of each written complaint filed with it for 79.31 five years and the commissionerof healthand the commissioner 79.32 of health shall have access to the records. 79.33 Sec. 26. Minnesota Statutes 1998, section 62D.11, 79.34 subdivision 3, is amended to read: 79.35 Subd. 3. [DENIAL OF COVERAGE.] Within a reasonable time 79.36 after receiving an enrollee's written or oral communication to 80.1 the health maintenance organization concerning a denial of 80.2 coverage or inadequacy of services, the health maintenance 80.3 organization shall provide the enrollee with a written statement 80.4 of the reason for the denial of coverage, and a statement 80.5 approved by the commissionerof healthwhich explains the health 80.6 maintenance organization complaint procedures, and in the case 80.7 of Medicare enrollees, which also explains Medicare appeal 80.8 procedures. 80.9 Sec. 27. Minnesota Statutes 1998, section 62D.11, is 80.10 amended by adding a subdivision to read: 80.11 Subd. 5. [REFERRAL TO COMMISSIONER OF HEALTH.] (a) The 80.12 commissioner shall determine whether a complaint relates 80.13 primarily to quality of care. The commissioner shall refer such 80.14 complaints to the commissioner of health for information, 80.15 recommendation, investigation, or resolution. 80.16 (b) All investigation, examination, rulemaking action, 80.17 penalty assessment, and enforcement authority under this chapter 80.18 is available to the commissioner of health on matters related to 80.19 the quality of care. 80.20 Sec. 28. Minnesota Statutes 1998, section 62D.12, 80.21 subdivision 1, is amended to read: 80.22 Subdivision 1. No health maintenance organization or 80.23 representative thereof may cause or knowingly permit the use of 80.24 advertising or solicitation which is untrue or misleading, or 80.25 any form of evidence of coverage which is deceptive. Each 80.26 health maintenance organization shall be subject to sections 80.27 72A.17 to 72A.32, relating to the regulation of trade practices, 80.28 except(a)to the extent that the nature of a health maintenance 80.29 organization renders such sections clearly inappropriateand (b)80.30that enforcement shall be by the commissioner of health and not80.31by the commissioner of commerce. Every health maintenance 80.32 organization shall be subject to sections 8.31 and 325F.69. 80.33 Sec. 29. Minnesota Statutes 1998, section 62D.12, 80.34 subdivision 2, is amended to read: 80.35 Subd. 2. No health maintenance organization may cancel or 80.36 fail to renew the coverage of an enrollee except for (a) failure 81.1 to pay the charge for health care coverage; (b) termination of 81.2 the health care plan; (c) termination of the group plan; (d) 81.3 enrollee moving out of the area served, subject to section 81.4 62A.17, subdivisions 1 and 6, and section 62D.104; (e) enrollee 81.5 moving out of an eligible group, subject to section 62A.17, 81.6 subdivisions 1 and 6, and section 62D.104; (f) failure to make 81.7 copayments required by the health care plan; or (g) other 81.8 reasons established in rules promulgated by the commissionerof81.9health. 81.10 Sec. 30. Minnesota Statutes 1998, section 62D.12, 81.11 subdivision 9, is amended to read: 81.12 Subd. 9. All net earnings of the health maintenance 81.13 organization shall be devoted to the nonprofit purposes of the 81.14 health maintenance organization in providing comprehensive 81.15 health care. No health maintenance organization shall provide 81.16 for the payment, whether directly or indirectly, of any part of 81.17 its net earnings, to any person as a dividend or rebate; 81.18 provided, however, that health maintenance organizations may 81.19 make payments to providers or other persons based upon the 81.20 efficient provision of services or as incentives to provide 81.21 quality care. The commissionerof healthshall, pursuant to 81.22 sections 62D.01 to 62D.30, revoke the certificate of authority 81.23 of any health maintenance organization in violation of this 81.24 subdivision. 81.25 Sec. 31. Minnesota Statutes 1998, section 62D.121, 81.26 subdivision 3a, is amended to read: 81.27 Subd. 3a. If the replacement coverage is health 81.28 maintenance organization coverage, as explained in subdivisions 81.29 2 and 2a, the fee shall not exceed 125 percent of the cost of 81.30 the average fee charged by health maintenance organizations for 81.31 a similar health plan. The commissionerof health willshall 81.32 determine the average cost of the plan on the basis of 81.33 information provided annually by the health maintenance 81.34 organizations concerning the rates charged by the health 81.35 maintenance organizations for the plans offered. Fees or 81.36 premiums charged under this section must be actuarially 82.1 justified. 82.2 Sec. 32. Minnesota Statutes 1998, section 62D.121, 82.3 subdivision 7, is amended to read: 82.4 Subd. 7. [GEOGRAPHIC ACCESSIBILITY.] If the 82.5 commissioner of health determines that there are not enough 82.6 providers to assure that enrollees have accessible health 82.7 services available in a geographic service area, the 82.8 commissioner of health shall institute a plan of corrective 82.9 action that shall be followed by the health maintenance 82.10 organization. Such a plan may include but not be limited to 82.11 requiring the health maintenance organization to make payments 82.12 to nonparticipating providers for health services for enrollees, 82.13 requiring the health maintenance organization to discontinue 82.14 accepting new enrollees in that service area, and requiring the 82.15 health maintenance organization to reduce its geographic service 82.16 area. If a nonparticipating provider has been a participating 82.17 provider with the health maintenance organization within the 82.18 last year, any payments made under this section must not exceed 82.19 the payment level of the previous contract unless the 82.20 commissioner of health determines that without adjusting 82.21 payments the health maintenance organization will be unable to 82.22 meet the health care needs of enrollees in the area. 82.23 Sec. 33. Minnesota Statutes 1998, section 62D.14, 82.24 subdivision 1, is amended to read: 82.25 Subdivision 1. The commissionerof healthmay make an 82.26 examination of the affairs of any health maintenance 82.27 organization and its contracts, agreements, or other 82.28 arrangements with any participating entity as often as the 82.29 commissionerof healthdeems necessary for the protection of the 82.30 interests of the people of this state, but not less frequently 82.31 than once every three years. Examinations of participating 82.32 entities pursuant to this subdivision shall be limited to their 82.33 dealings with the health maintenance organization and its 82.34 enrollees, except that examinations of major participating 82.35 entities may include inspection of the entity's financial 82.36 statements kept in the ordinary course of business. The 83.1 commissioner may require major participating entities to submit 83.2 the financial statements directly to the commissioner. 83.3 Financial statements of major participating entities are subject 83.4 to the provisions of section 13.37, subdivision 1, clause (b), 83.5 upon request of the major participating entity or the health 83.6 maintenance organization with which it contracts. 83.7 Sec. 34. Minnesota Statutes 1998, section 62D.14, 83.8 subdivision 3, is amended to read: 83.9 Subd. 3. In order to accomplish the duties under this 83.10 section with respect to the dealings of the participating 83.11 entities with the health maintenance organization, the 83.12 commissionerof health shall havehas the right to: 83.13 (a) inspect or otherwise evaluate the quality, 83.14 appropriateness, and timeliness of services performed, or 83.15 arrange with the commissioner of health for the commissioner of 83.16 health to do so; 83.17 (b) audit and inspect any books and records of a health 83.18 maintenance organization and a participating entity which 83.19 pertain to services performed and determinations of amounts 83.20 payable under such contract; 83.21 (c) require persons or organizations under examination to 83.22 be deposed and to answer interrogatories, regardless of whether 83.23 an administrative hearing or other civil proceeding has been or 83.24 will be initiated; and 83.25 (d) employ site visits, public hearings, or any other 83.26 procedures considered appropriate to obtain the information 83.27 necessary to determine the issues. 83.28 Sec. 35. Minnesota Statutes 1998, section 62D.14, 83.29 subdivision 4, is amended to read: 83.30 Subd. 4. Any data or information pertaining to the 83.31 diagnosis, treatment, or health of any enrollee, or any 83.32 application obtained from any person, shall be private as 83.33 defined in chapter 13 and shall not be disclosed to any person 83.34 except (a) to the extent necessary to carry out the purposes of 83.35 sections 62D.01 to 62D.30, the commissioner and the commissioner 83.36 of health and a designee shall have access to the above data or 84.1 information but the data removed from the health maintenance 84.2 organization or participating entity shall not identify any 84.3 particular patient or client by name or contain any other unique 84.4 personal identifier; (b) upon the express consent of the 84.5 enrollee or applicant; (c) pursuant to statute or court order 84.6 for the production of evidence or the discovery thereof; or (d) 84.7 in the event of claim or litigation between such person and the 84.8 provider or health maintenance organization wherein such data or 84.9 information is pertinent. In any case involving a suspected 84.10 violation of a law applicable to health maintenance 84.11 organizations in which access to health data maintained by the 84.12 health maintenance organization or participating entity is 84.13 necessary, the commissioner and the commissioner of health and 84.14 agents, while maintaining the privacy rights of individuals and 84.15 families, shall be permitted to obtain data that identifies any 84.16 particular patient or client by name. A health maintenance 84.17 organization shall be entitled to claim any statutory privileges 84.18 against such disclosure which the provider who furnished such 84.19 information to the health maintenance organization is entitled 84.20 to claim. 84.21 Sec. 36. Minnesota Statutes 1998, section 62D.14, 84.22 subdivision 5, is amended to read: 84.23 Subd. 5. The commissionerof health shalland the 84.24 commissioner of health have the power to administer oaths to and 84.25 examine witnesses, and to issue subpoenas. 84.26 Sec. 37. Minnesota Statutes 1998, section 62D.14, 84.27 subdivision 6, is amended to read: 84.28 Subd. 6. Reasonable expenses of examinations under this 84.29 section shall be assessed by the commissionerof healthagainst 84.30 the organization being examined, and shall be remitted to the 84.31 commissionerof healthfor deposit in the general fund of the 84.32 state treasury. 84.33 Sec. 38. Minnesota Statutes 1998, section 62D.15, 84.34 subdivision 1, is amended to read: 84.35 Subdivision 1. [SUSPENSION OR REVOCATION.] (a) The 84.36 commissionerof healthmay suspend or revoke any certificate of 85.1 authority issued to a health maintenance organization under 85.2 sections 62D.01 to 62D.30 if the commissioner finds that: 85.3(a)(1) The health maintenance organization is operating 85.4 significantly in contravention of its basic organizational 85.5 document, its health maintenance contract, or in a manner 85.6 contrary to that described in and reasonably inferred from any 85.7 other information submitted under section 62D.03, unless 85.8 amendments to such submissions have been filed with and approved 85.9 by the commissionerof health; 85.10(b)(2) The health maintenance organization issues 85.11 evidences of coverage which do not comply with the requirements 85.12 of section 62D.07; 85.13(c)(3) The health maintenance organization is unable to 85.14 fulfill its obligations to furnish comprehensive health 85.15 maintenance services as required under its health maintenance 85.16 contract; 85.17(d)(4) The health maintenance organization is no longer 85.18 financially responsible and may reasonably be expected to be 85.19 unable to meet its obligations to enrollees or prospective 85.20 enrollees; 85.21(e)(5) The health maintenance organization has failed to 85.22 implement a mechanism affording the enrollees an opportunity to 85.23 participate in matters of policy and operation under section 85.24 62D.06; 85.25(f)(6) The health maintenance organization has failed to 85.26 implement the complaint system required by section 62D.11 in a 85.27 manner designed to reasonably resolve valid complaints; 85.28(g)(7) The health maintenance organization, or any person 85.29 acting with its sanction, has advertised or merchandised its 85.30 services in an untrue, misrepresentative, misleading, deceptive, 85.31 or unfair manner; 85.32(h)(8) The continued operation of the health maintenance 85.33 organization would be hazardous to its enrollees; or 85.34(i)(9) The health maintenance organization has otherwise 85.35 failed to substantially comply with sections 62D.01 to 62D.30 or 85.36 with any other statute or administrative rule applicable to 86.1 health maintenance organizations, or has submitted false 86.2 information in any report required hereunder. 86.3 (b) The commissioner of health may by order suspend or 86.4 revoke the certificate of authority of a health maintenance 86.5 organization when the commissioner of health finds failure to 86.6 comply with section 62D.04, subdivision 1a, or any other area of 86.7 responsibility assigned by statute or rule to the commissioner 86.8 of health. The commissioner of health shall notify the 86.9 commissioner of any action taken under this paragraph. 86.10 Sec. 39. Minnesota Statutes 1998, section 62D.15, 86.11 subdivision 4, is amended to read: 86.12 Subd. 4. When the certificate of authority of a health 86.13 maintenance organization is revoked, the organization shall 86.14 proceed, immediately following the effective date of the order 86.15 of revocation, to wind up its affairs, and shall conduct no 86.16 further business except as may be essential to the orderly 86.17 conclusion of the affairs of the organization. It shall engage 86.18 in no further advertising or solicitation whatsoever. The 86.19 commissionerof healthmay, by written order, permit further 86.20 operation of the organization as the commissioner may find to be 86.21 in the best interest of enrollees, to the end that enrollees 86.22 will be afforded the greatest practical opportunity to obtain 86.23 continuing health care coverage. 86.24 Sec. 40. Minnesota Statutes 1998, section 62D.16, 86.25 subdivision 1, is amended to read: 86.26 Subdivision 1. When the commissionerof healthhas cause 86.27 to believe that grounds for the denial, suspension or revocation 86.28 of a certificate of authority exists, the commissioner shall 86.29 notify the health maintenance organization in writing 86.30 specifically stating the grounds for denial, suspension or 86.31 revocation and fixing a time of at least 20 days thereafter for 86.32 a hearing on the matter, except in summary proceedings as 86.33 provided in section 62D.18. 86.34 Sec. 41. Minnesota Statutes 1998, section 62D.16, 86.35 subdivision 2, is amended to read: 86.36 Subd. 2. After such hearing, or upon the failure of the 87.1 health maintenance organization to appear at the hearing, the 87.2 commissionerof healthshall take action as is deemed advisable 87.3 and shall issue written findings which shall be mailed to the 87.4 health maintenance organization. The action of the commissioner 87.5of healthshall be subject to judicial review pursuant to 87.6 chapter 14. 87.7 Sec. 42. Minnesota Statutes 1998, section 62D.17, 87.8 subdivision 1, is amended to read: 87.9 Subdivision 1. The commissionerof healthmay, for any 87.10 violation of statute or rule applicable to a health maintenance 87.11 organization, or in lieu of suspension or revocation of a 87.12 certificate of authority under section 62D.15, levy an 87.13 administrative penalty in an amount up to $25,000 for each 87.14 violation. In the case of contracts or agreements made pursuant 87.15 to section 62D.05, subdivisions 2 to 4, each contract or 87.16 agreement entered into or implemented in a manner which violates 87.17 sections 62D.01 to 62D.30 shall be considered a separate 87.18 violation. In determining the level of an administrative 87.19 penalty, the commissioner shall consider the following factors: 87.20 (1) the number of enrollees affected by the violation; 87.21 (2) the effect of the violation on enrollees' health and 87.22 access to health services; 87.23 (3) if only one enrollee is affected, the effect of the 87.24 violation on that enrollee's health; 87.25 (4) whether the violation is an isolated incident or part 87.26 of a pattern of violations;and87.27 (5) the economic benefits derived by the health maintenance 87.28 organization or a participating provider by virtue of the 87.29 violation; and 87.30 (6) any recommendation made by the commissioner of health. 87.31 Reasonable notice in writing to the health maintenance 87.32 organization shall be given of the intent to levy the penalty 87.33 and the reasons therefor, and the health maintenance 87.34 organization may have 15 days within which to file a written 87.35 request for an administrative hearing and review of the 87.36commissioner of health'scommissioner's determination. Such 88.1 administrative hearing shall be subject to judicial review 88.2 pursuant to chapter 14. 88.3 Sec. 43. Minnesota Statutes 1998, section 62D.17, 88.4 subdivision 3, is amended to read: 88.5 Subd. 3. (a) If the commissionerof healthshall, for any 88.6 reason, have cause to believe that any violation of sections 88.7 62D.01 to 62D.30 has occurred or is threatened, the commissioner 88.8of healthmay, before commencing action under sections 62D.15 88.9 and 62D.16, and subdivision 1, give notice to the health 88.10 maintenance organization and to the representatives, or other 88.11 persons who appear to be involved in such suspected violation, 88.12 to arrange a voluntary conference with the alleged violators or 88.13 their authorized representatives for the purpose of attempting 88.14 to ascertain the facts relating to such suspected violation and, 88.15 in the event it appears that any violation has occurred or is 88.16 threatened, to arrive at an adequate and effective means of 88.17 correcting or preventing such violation. 88.18 (b) Proceedings under this subdivision shall not be 88.19 governed by any formal procedural requirements, and may be 88.20 conducted in such manner as the commissionerof healthmay deem 88.21 appropriate under the circumstances. 88.22 Sec. 44. Minnesota Statutes 1998, section 62D.17, 88.23 subdivision 4, is amended to read: 88.24 Subd. 4. (a) The commissionerof healthmay issue an order 88.25 directing a health maintenance organization or a representative 88.26 of a health maintenance organization to cease and desist from 88.27 engaging in any act or practice in violation of the provisions 88.28 of sections 62D.01 to 62D.30. 88.29 (1) The cease and desist order may direct a health 88.30 maintenance organization to pay for or provide a service when 88.31 that service is required by statute or rule to be provided. 88.32 (2) Thecommissioner may issue acease and desist order 88.33directingmay direct a health maintenance organization to pay 88.34 for a service that is required by statute or rule to be 88.35 provided, only if there is a demonstrable and irreparable harm 88.36 to the public or an enrollee. 89.1 (3) If the cease and desist order involves a dispute over 89.2 the medical necessity of a procedure based on its experimental 89.3 nature, the commissioner may issue a cease and desist order only 89.4 if the following conditions are met: 89.5 (i) the commissioner has consulted with appropriate and 89.6 identified experts; 89.7 (ii) the commissioner has reviewed relevant scientific and 89.8 medical literature; and 89.9 (iii) the commissioner has considered all other relevant 89.10 factors including whether final approval of the technology or 89.11 procedure has been granted by the appropriate government agency; 89.12 the availability of scientific evidence concerning the effect of 89.13 the technology or procedure on health outcomes; the availability 89.14 of scientific evidence that the technology or procedure is as 89.15 beneficial as established alternatives; and the availability of 89.16 evidence of benefit or improvement without the technology or 89.17 procedure. 89.18 (b) Within 20 days after service of the order to cease and 89.19 desist, the respondent may request a hearing on the question of 89.20 whether acts or practices in violation of sections 62D.01 to 89.21 62D.30 have occurred. Such hearings shall be subject to 89.22 judicial review as provided by chapter 14. 89.23 If the acts or practices involve violation of the reporting 89.24 requirements of section 62D.08, or if the commissioner has 89.25 ordered the rehabilitation, liquidation, or conservation of the 89.26 health maintenance organization in accordance with section 89.27 62D.18, the health maintenance organization may request an 89.28 expedited hearing on the matter. The hearing shall be held 89.29 within 15 days of the request. Within ten days thereafter, an 89.30 administrative law judge shall issue a recommendation on the 89.31 matter. The commissioner shall make a final determination on 89.32 the matter within ten days of receipt of the administrative law 89.33 judge's recommendation. 89.34When a request for a stay accompanies the hearing request,89.35the matter shall be referred to the office of administrative89.36hearings within three working days of receipt of the request.90.1Within ten days thereafter, an administrative law judge shall90.2issue a recommendation to grant or deny the stay. The90.3commissioner shall grant or deny the stay within five days of90.4receipt of the administrative law judge's recommendation.90.5To the extent the acts or practices alleged do not involve90.6(1) violations of section 62D.08; (2) violations which may90.7result in the financial insolvency of the health maintenance90.8organization; (3) violations which threaten the life and health90.9of enrollees; (4) violations which affect whole classes of90.10enrollees; or (5) violations of benefits or service requirements90.11mandated by law; if a timely request for a hearing is made, the90.12cease and desist order shall be stayed for a period of 90 days90.13from the date the hearing is requested or until a final90.14determination is made on the order, whichever is earlier.90.15During this stay, the respondent may show cause why the order90.16should not become effective upon the expiration of the stay.90.17Arguments on this issue shall be made through briefs filed with90.18the administrative law judge no later than ten days prior to the90.19expiration of the stay.90.20 Sec. 45. Minnesota Statutes 1998, section 62D.17, 90.21 subdivision 5, is amended to read: 90.22 Subd. 5. In the event of noncompliance with a cease and 90.23 desist order issued pursuant to subdivision 4, the commissioner 90.24of healthmay institute a proceeding to obtain injunctive relief 90.25 or other appropriate relief in Ramsey county district court. 90.26 Sec. 46. Minnesota Statutes 1998, section 62D.18, 90.27 subdivision 1, is amended to read: 90.28 Subdivision 1. [COMMISSIONER OF HEALTH;COURT ORDER.] The 90.29 commissionerof healthmay apply by verified petition to the 90.30 district court of Ramsey county or the county in which the 90.31 principal office of the health maintenance organization is 90.32 located for an order directing the commissionerof healthto 90.33 rehabilitate or liquidate a health maintenance organization. 90.34 The rehabilitation or liquidation of a health maintenance 90.35 organization shall be conducted under the supervision of the 90.36 commissionerof healthunder the procedures, and with the powers 91.1 granted to a rehabilitator or liquidator, in chapter 60B, except 91.2 to the extent that the nature of health maintenance 91.3 organizations renders the procedures or powers clearly 91.4 inappropriate and as provided in this subdivision or in chapter 91.5 60B. A health maintenance organization shall be considered an 91.6 insurance company for the purposes of rehabilitation or 91.7 liquidation as provided in subdivisions 4, 6, and 7. 91.8 Sec. 47. Minnesota Statutes 1998, section 62D.18, 91.9 subdivision 7, is amended to read: 91.10 Subd. 7. [EXAMINATION ACCOUNT.] The commissionerof health91.11 shall assess against a health maintenance organization not yet 91.12 in rehabilitation or liquidation a fee sufficient to cover the 91.13 costs of a special examination. The fee must be deposited in an 91.14 examination account. Money in the account is appropriated to 91.15 the commissionerof healthto pay for the examinations. If the 91.16 money in the account is insufficient to pay the initial costs of 91.17 examinations, the commissioner may use other money appropriated 91.18 to the commissioner, provided the other appropriation is 91.19 reimbursed from the examination account when it contains 91.20 sufficient money. Money from the examination account must be 91.21 used to pay per diem salaries and expenses of special examiners, 91.22 including meals, lodging, laundry, transportation, and mileage. 91.23 The salary of regular employees of thehealthcommerce 91.24 department must not be paid out of the account. 91.25 Sec. 48. Minnesota Statutes 1998, section 62D.19, is 91.26 amended to read: 91.27 62D.19 [UNREASONABLE EXPENSES.] 91.28 No health maintenance organization shall incur or pay for 91.29 any expense of any nature which is unreasonably high in relation 91.30 to the value of the service or goods provided. The commissioner 91.31of healthshall implement and enforce this section by rules 91.32 adopted under this section. 91.33 In an effort to achieve the stated purposes of sections 91.34 62D.01 to 62D.30; in order to safeguard the underlying nonprofit 91.35 status of health maintenance organizations; and to ensure that 91.36 the payment of health maintenance organization money to major 92.1 participating entities results in a corresponding benefit to the 92.2 health maintenance organization and its enrollees, when 92.3 determining whether an organization has incurred an unreasonable 92.4 expense in relation to a major participating entity, due 92.5 consideration shall be given to, in addition to any other 92.6 appropriate factors, whether the officers and trustees of the 92.7 health maintenance organization have acted with good faith and 92.8 in the best interests of the health maintenance organization in 92.9 entering into, and performing under, a contract under which the 92.10 health maintenance organization has incurred an expense. The 92.11 commissioner has standing to sue, on behalf of a health 92.12 maintenance organization, officers or trustees of the health 92.13 maintenance organization who have breached their fiduciary duty 92.14 in entering into and performing such contracts. 92.15 Sec. 49. Minnesota Statutes 1998, section 62D.20, 92.16 subdivision 1, is amended to read: 92.17 Subdivision 1. [RULEMAKING.] The commissionerof health92.18 may, pursuant to chapter 14, promulgate such reasonable rules as 92.19 are necessary or proper to carry out the provisions of sections 92.20 62D.01 to 62D.30. Included among such rules shall be those 92.21 which provide minimum requirements for the provision of 92.22 comprehensive health maintenance services, as defined in section 92.23 62D.02, subdivision 7, and reasonable exclusions therefrom. 92.24 Nothing in such rules shall force or require a health 92.25 maintenance organization to provide elective, induced abortions, 92.26 except as medically necessary to prevent the death of the 92.27 mother, whether performed in a hospital, other abortion 92.28 facility, or the office of a physician; the rules shall provide 92.29 every health maintenance organization the option of excluding or 92.30 including elective, induced abortions, except as medically 92.31 necessary to prevent the death of the mother, as part of its 92.32 comprehensive health maintenance services. 92.33 Sec. 50. Minnesota Statutes 1998, section 62D.21, is 92.34 amended to read: 92.35 62D.21 [FEES.] 92.36 Every health maintenance organization subject to sections 93.1 62D.01 to 62D.30 shall pay to the commissionerof healthfees as 93.2 prescribed by the commissionerof health pursuant to section93.3144.122for the following: 93.4 (a) Filing an application for a certificate of authority, 93.5 (b) Filing an amendment to a certificate of authority, 93.6 (c) Filing each annual report, and 93.7 (d) Other filings, as specified by rule. 93.8 Sec. 51. Minnesota Statutes 1998, section 62D.211, is 93.9 amended to read: 93.10 62D.211 [RENEWAL FEE.] 93.11 Each health maintenance organization subject to sections 93.12 62D.01 to 62D.30 shall submit to the commissionerof healtheach 93.13 year before June 15 a certificate of authority renewal fee in 93.14 the amount of $10,000 each plus 20 cents per person enrolled in 93.15 the health maintenance organization on December 31 of the 93.16 preceding year. The commissioner may adjust the renewal fee in 93.17 rule under the provisions of chapter 14. 93.18 Sec. 52. Minnesota Statutes 1998, section 62D.22, 93.19 subdivision 4, is amended to read: 93.20 Subd. 4. To the extent that it furthers the purposes of 93.21 sections 62D.01 to 62D.30, the commissionerof healthshall 93.22 attempt to coordinate the operations of sections 62D.01 to 93.23 62D.30 relating to the quality of health care services with the 93.24 operations of United States Code, title 42, sections 1320c to 93.25 1320c-20. The commissioner shall seek and consider 93.26 recommendations from the commissioner of health regarding this 93.27 coordination. 93.28 Sec. 53. Minnesota Statutes 1998, section 62D.22, 93.29 subdivision 10, is amended to read: 93.30 Subd. 10. Any person or committee conducting a review of a 93.31 health maintenance organization or a participating entity, 93.32 pursuant to sections 62D.01 to 62D.30, shall have access to any 93.33 data or information necessary to conduct the review. All data 93.34 or information is subject to admission into evidence in any 93.35 civil action initiated by the commissionerof healthagainst the 93.36 health maintenance organization. The data and information are 94.1 subject to chapter 13. 94.2 Sec. 54. Minnesota Statutes 1998, section 62D.24, is 94.3 amended to read: 94.4 62D.24 [STATE COMMISSIONER OF HEALTH'SAUTHORITY TO 94.5 CONTRACT.] 94.6 The commissionerof health, in carrying out the obligations 94.7 under sections 62D.01 to 62D.30, may contract with the 94.8 commissioner ofcommercehealth or other qualified persons to 94.9 make recommendations concerning the determinations required to 94.10 be made. Such recommendations may be accepted in full or in 94.11 part by the commissionerof health. 94.12 Sec. 55. Minnesota Statutes 1998, section 62D.30, 94.13 subdivision 1, is amended to read: 94.14 Subdivision 1. The commissionerof healthmay establish 94.15 demonstration projects to allow health maintenance organizations 94.16 to extend coverage to: 94.17 (a) Individuals enrolled in Part A or Part B, or both, of 94.18 the Medicare program, Title XVIII of the Social Security Act, 94.19 United States Code, title 42, section 1395 et seq.; 94.20 (b) Groups of fewer than 50 employees where each group is 94.21 covered by a single group health policy; 94.22 (c) Individuals who are not eligible for enrollment in any 94.23 group health maintenance contracts; and 94.24 (d) Low income population groups. 94.25 For purposes of this section, the commissionerof health94.26 may waive compliance with minimum benefits pursuant to sections 94.27 62A.151 and 62D.02, subdivision 7, full financial risk pursuant 94.28 to section 62D.04, subdivision 1, clause (f), open enrollment 94.29 pursuant to section 62D.10, and to applicable rules if there is 94.30 reasonable evidence that the rules prohibit the operation of the 94.31 demonstration project. The commissioner shall provide for 94.32 public comment before any statute or rule is waived. 94.33 Sec. 56. Minnesota Statutes 1998, section 62D.30, 94.34 subdivision 3, is amended to read: 94.35 Subd. 3. A health maintenance organization electing to 94.36 participate in a demonstration project shall apply to the 95.1 commissioner for approval on a form developed by the 95.2 commissioner. The application shall include at least the 95.3 following: 95.4 (a) A statement identifying the population that the project 95.5 is designed to serve; 95.6 (b) A description of the proposed project including a 95.7 statement projecting a schedule of costs and benefits for the 95.8 enrollee; 95.9 (c) Reference to the sections of Minnesota Statutes and 95.10 department ofhealthcommerce rules for which waiver is 95.11 requested; 95.12 (d) Evidence that application of the requirements of 95.13 applicable Minnesota Statutes and department ofhealthcommerce 95.14 rules would, unless waived, prohibit the operation of the 95.15 demonstration project; 95.16 (e) Evidence that another arrangement is available for 95.17 assumption of full financial risk if full financial risk is 95.18 waived under subdivision 1; 95.19 (f) An estimate of the number of years needed to adequately 95.20 demonstrate the project's effects; and 95.21 (g) Other information the commissioner may reasonably 95.22 require. 95.23 Sec. 57. [REPORT; REGULATION OF RISK-BEARING ENTITIES.] 95.24 The commissioners of commerce and health shall study the 95.25 issues involved in consistent regulation of all entities that 95.26 assume financial risks related to health coverage in this 95.27 state. The study must consider all such entities, regardless of 95.28 current licensure or regulation. The commissioners must 95.29 consider laws recently enacted by the state of Ohio on this 95.30 subject and any relevant model laws or regulations adopted or 95.31 under consideration by the National Association of Insurance 95.32 Commissioners. The commissioners shall provide a written 95.33 report, with recommendations, to the legislature in compliance 95.34 with Minnesota Statutes, section 3.195, no later than January 95.35 15, 2000. 95.36 Sec. 58. [EFFECT OF TRANSFER OF RESPONSIBILITIES.] 96.1 Minnesota Statutes, section 15.039, applies to this act. 96.2 Sec. 59. [REPEALER.] 96.3 Minnesota Statutes 1998, section 62D.18, is repealed. 96.4 Sec. 60. [EFFECTIVE DATE.] 96.5 This article is effective July 1, 2000, except that section 96.6 57 is effective the day following final enactment. 96.7 ARTICLE 4 96.8 COMMUNITY INTEGRATED SERVICE NETWORKS, HEALTH 96.9 CARE COOPERATIVES, AND COMMUNITY PURCHASING ARRANGEMENTS 96.10 Section 1. Minnesota Statutes 1998, section 62N.02, 96.11 subdivision 4, is amended to read: 96.12 Subd. 4. [COMMISSIONER.] "Commissioner" means the 96.13 commissioner ofhealthcommerce or the commissioner's designated 96.14 representative. With respect to this chapter, the commissioner 96.15 of health has the same role as under chapter 62D. 96.16 Sec. 2. Minnesota Statutes 1998, section 62N.26, is 96.17 amended to read: 96.18 62N.26 [SHARED SERVICES COOPERATIVE.] 96.19 The commissionerof healthshall establish, or assist in 96.20 establishing, a shared services cooperative organized under 96.21 chapter 308A to make available administrative and legal 96.22 services, technical assistance, provider contracting and billing 96.23 services, and other services to those community integrated 96.24 service networks that choose to participate in the cooperative. 96.25 The commissioner shall provide, to the extent funds are 96.26 appropriated, start-up loans sufficient to maintain the shared 96.27 services cooperative until its operations can be maintained by 96.28 fees and contributions. The cooperative must not be staffed, 96.29 administered, or supervised by the commissionerof health. The 96.30 cooperative shall make use of existing resources that are 96.31 already available in the community, to the extent possible. 96.32 Sec. 3. Minnesota Statutes 1998, section 62N.31, 96.33 subdivision 1, is amended to read: 96.34 Subdivision 1. [GENERAL.] Each health care providing 96.35 entity seeking initial accreditation as an accredited capitated 96.36 provider shall submit to the commissionerof healthsufficient 97.1 information to establish that the applicant has operational 97.2 capacity, facilities, personnel, and financial capability to 97.3 provide the contracted covered services to the enrollees of the 97.4 network for which it seeks accreditation (1) on an ongoing 97.5 basis; and (2) for a period of 120 days following the insolvency 97.6 of the network without receiving payment from the network. 97.7 Accreditation shall continue until abandoned by the accredited 97.8 capitated provider or revoked by the commissioner in accordance 97.9 with subdivision 4. The applicant may establish financial 97.10 capability by demonstrating that the provider amount at risk can 97.11 be covered by or through any of allocated or restricted funds, a 97.12 letter of credit, the taxing authority of the applicant or 97.13 governmental sponsor of the applicant, an unrestricted fund 97.14 balance at least two times the provider amount at risk, 97.15 reinsurance, either purchased directly by the applicant or by 97.16 the community network to which it will be accredited, or any 97.17 other method accepted by the commissioner. Accreditation of a 97.18 health care providing entity shall not in itself limit the right 97.19 of the accredited capitated provider to seek payment of unpaid 97.20 capitated amounts from a community network, whether the 97.21 community network is solvent or insolvent; provided that, if the 97.22 community network is subject to any liquidation, rehabilitation, 97.23 or conservation proceedings, the accredited capitated provider 97.24 shall have the status accorded creditors under section 60B.44, 97.25 subdivision 10. 97.26 Sec. 4. Minnesota Statutes 1998, section 62R.04, 97.27 subdivision 5, is amended to read: 97.28 Subd. 5. [COMMISSIONER.] Unless otherwise specified, 97.29 "commissioner" means the commissioner ofhealth for a health97.30care network cooperative licensed under chapter 62D or 62N and97.31the commissioner ofcommercefor a health care network97.32cooperative licensed under chapter 62C. With respect to this 97.33 chapter, the commissioner of health has the same role as under 97.34 chapter 62D. 97.35 Sec. 5. Minnesota Statutes 1998, section 62R.25, is 97.36 amended to read: 98.1 62R.25 [NOTIFICATION OF CONTRACT; REPORT TO LEGISLATURE.] 98.2(a)Each health provider cooperative shall notify the 98.3office of rural healthcommissioner in writing upon entering a 98.4 contract described in section 62R.17. 98.5(b) The department of health, office of rural health, shall98.6provide an information report to the MinnesotaCare finance98.7division of the house health and human services committee and98.8the senate health care committee no later than January 15, 1999,98.9on the status of direct contracting between health provider98.10cooperatives and self-insured employer plans or qualified98.11employers in accordance with sections 62R.17 to 62R.26. The98.12report shall consider the effects on public policy and on health98.13provider cooperatives of a possible requirement that health98.14provider cooperatives using direct contracting be obligated to98.15become community integrated service networks.98.16 Sec. 6. Minnesota Statutes 1998, section 62T.01, 98.17 subdivision 4, is amended to read: 98.18 Subd. 4. [COMMISSIONER.] "Commissioner" means the 98.19 commissioner ofhealthcommerce. With respect to this chapter, 98.20 the commissioner of health has the same role as under chapter 98.21 62D. 98.22 Sec. 7. [EFFECTIVE DATE.] 98.23 This article is effective July 1, 2000. 98.24 ARTICLE 5 98.25 CONFORMING CHANGES 98.26 Section 1. Minnesota Statutes 1998, section 60B.02, is 98.27 amended to read: 98.28 60B.02 [PERSONS COVERED.] 98.29 The proceedings authorized by sections 60B.01 to 60B.61 may 98.30 be applied to: 98.31 (1) All insurers who are doing, or have done, an insurance 98.32 business in this state, and against whom claims arising from 98.33 that business may exist now or in the future; 98.34 (2) All insurers who purport to do an insurance business in 98.35 this state; 98.36 (3) All insurers who have insureds resident in this state; 99.1 (4) All other persons organized or in the process of 99.2 organizing with the intent to do an insurance business in this 99.3 state; and 99.4 (5) All nonprofit service plan corporations incorporated or 99.5 operating under the Nonprofit Health Service Plan Corporation 99.6 Act, health maintenance organizations operating under chapter 99.7 62D, any health plan incorporated under chapter 317A, all 99.8 fraternal benefit societies operating under chapter 64B, except 99.9 those associations enumerated in section 64B.38, all township 99.10 mutual or other companies operating under chapter 67A, and all 99.11 reciprocals or interinsurance exchanges operating under chapter 99.12 71A. 99.13 Sec. 2. Minnesota Statutes 1998, section 60B.03, 99.14 subdivision 2, is amended to read: 99.15 Subd. 2. [COMMISSIONER.] "Commissioner" means the 99.16 commissioner of commerce of the state of Minnesota and, in that 99.17 commissioner's absence or disability, a deputy or other person 99.18 duly designated to act in that commissioner's place.In the99.19context of rehabilitation or liquidation of a health maintenance99.20organization, "commissioner" means the commissioner of health of99.21the state of Minnesota and, in that commissioner's absence or99.22disability, a deputy or other person duly designated to act in99.23that commissioner's place.99.24 Sec. 3. Minnesota Statutes 1998, section 60B.03, 99.25 subdivision 4, is amended to read: 99.26 Subd. 4. [INSURER.] "Insurer" means any person who is 99.27 doing, has done, purports to do or is licensed to do an 99.28 insurance business and is or has been subject to the authority 99.29 of, or to liquidation, rehabilitation, reorganization, or 99.30 conservation by,athe commissioner. For purposes of sections 99.31 60B.01 to 60B.61, all other persons included under section 99.32 60B.02 shall be deemed to be insurers. 99.33 Sec. 4. Minnesota Statutes 1998, section 60B.15, is 99.34 amended to read: 99.35 60B.15 [GROUNDS FOR REHABILITATION.] 99.36 The commissioner may apply by verified petition to the 100.1 district court for Ramsey county or for the county in which the 100.2 principal office of the insurer is located for an order 100.3 directing the commissioner to rehabilitate a domestic insurer or 100.4 an alien insurer domiciled in this state on any one or more of 100.5 the following grounds: 100.6 (1) Any ground on which the commissioner may apply for an 100.7 order of liquidation under section 60B.20, whenever the 100.8 commissioner believes that the insurer may be successfully 100.9 rehabilitated without substantial increase in the risk of loss 100.10 to creditors of the insurer, its policyholders or to the public; 100.11 (2) That the commissioner has reasonable cause to believe 100.12 that there has been theft from the insurer, wrongful 100.13 sequestration or diversion of the insurer's assets, forgery or 100.14 fraud affecting the insurer or other illegal conduct in, by or 100.15 with respect to the insurer, which endanger assets in an amount 100.16 threatening insolvency of the insurer; 100.17 (3) That substantial and unexplained discrepancies exist 100.18 between the insurer's records and the most recent annual report 100.19 or other official company reports; 100.20 (4) That the insurer, after written demand by the 100.21 commissioner, has failed to remove any person who in fact has 100.22 executive authority in the insurer, whether an officer, manager, 100.23 general agent, employee, or other person, if the person has been 100.24 found by the commissioner after notice and hearing to be 100.25 dishonest or untrustworthy in a way affecting the insurer's 100.26 business such as is the basis for action under section 60A.052; 100.27 (5) That control of the insurer, whether by stock ownership 100.28 or otherwise, and whether direct or indirect, is in one or more 100.29 persons found by the commissioner after notice and hearing to be 100.30 dishonest or untrustworthy such as is the basis for action under 100.31 section 60A.052; 100.32 (6) That the insurer, after written demand by the 100.33 commissioner, has failed within a reasonable period of time to 100.34 terminate the employment and status and all influences on 100.35 management of any person who in fact has executive authority in 100.36 the insurer, whether an officer, manager, general agent, 101.1 employee or other person if the person has refused to submit to 101.2 lawful examination under oath by the commissioner concerning the 101.3 affairs of the insurer, whether in this state or elsewhere; 101.4 (7) That after lawful written demand by the commissioner 101.5 the insurer has failed to submit promptly any of its own 101.6 property, books, accounts, documents, or other records, or those 101.7 of any subsidiary or related company within the control of the 101.8 insurer, or those of any person having executive authority in 101.9 the insurer so far as they pertain to the insurer, to reasonable 101.10 inspection or examination by the commissioner or an authorized 101.11 representative. If the insurer is unable to submit the 101.12 property, books, accounts, documents, or other records of a 101.13 person having executive authority in the insurer, it shall be 101.14 excused from doing so if it promptly and effectively terminates 101.15 the relationship of the person to the insurer; 101.16 (8) That without first obtaining the written consent of the 101.17 commissioner, or if required by law, the written consent of the 101.18 attorney general, the insurer has transferred, or attempted to 101.19 transfer, substantially its entire property or business, or has 101.20 entered into any transaction the effect of which is to merge, 101.21 consolidate, or reinsure substantially its entire property or 101.22 business of any other person; 101.23 (9) That the insurer or its property has been or is the 101.24 subject of an application for the appointment of a receiver, 101.25 trustee, custodian, conservator or sequestrator or similar 101.26 fiduciary of the insurer or its property otherwise than as 101.27 authorized under sections 60B.01 to 60B.61, and that such 101.28 appointment has been made or is imminent, and that such 101.29 appointment might divest the courts of this state of 101.30 jurisdiction or prejudice orderly delinquency proceedings under 101.31 sections 60B.01 to 60B.61; 101.32 (10) That within the previous year the insurer has 101.33 willfully violated its charter or articles of incorporation or 101.34 its bylaws or any applicable insurance law or regulation of any 101.35 state, or of the federal government, or any valid order of the 101.36 commissioner under section 60B.11 in any manner or as to any 102.1 matter which threatens substantial injury to the insurer, its 102.2 creditors, it policyholders or the public, or having become 102.3 aware within the previous year of an unintentional or willful 102.4 violation has failed to take all reasonable steps to remedy the 102.5 situation resulting from the violation and to prevent the same 102.6 violations in the future; 102.7 (11) That the directors of the insurer are deadlocked in 102.8 the management of the insurer's affairs and that the members or 102.9 shareholders are unable to break the deadlock and that 102.10 irreparable injury to the insurer, its creditors, its 102.11 policyholders, or the public is threatened by reason thereof; 102.12 (12) That the insurer has failed to pay for 60 days after 102.13 due date any obligation to this state or any political 102.14 subdivision thereof or any judgment entered in this state, 102.15 except that such nonpayment shall not be a ground until 60 days 102.16 after any good faith effort by the insurer to contest the 102.17 obligation or judgment has been terminated, whether it is before 102.18 the commissioner or in the courts; 102.19 (13) That the insurer has failed to file its annual report 102.20 or other report within the time allowed by law, and after 102.21 written demand by the commissioner has failed to give an 102.22 adequate explanation immediately; 102.23 (14) That two-thirds of the board of directors, or the 102.24 holders of a majority of the shares entitled to vote, or a 102.25 majority of members or policyholders of an insurer subject to 102.26 control by its members or policyholders, consent to 102.27 rehabilitation under sections 60B.01 to 60B.61; 102.28 (15) That the insurer is engaging in a systematic practice 102.29 of reaching settlements with and obtaining releases from 102.30 policyholders or third party claimants and then unreasonably 102.31 delaying payment of or failing to pay the agreed upon 102.32 settlements; 102.33 (16) That the insurer is in such condition that the further 102.34 transaction of business would be hazardous, financially or 102.35 otherwise, to its policyholders, its creditors, or the public; 102.36 (17) That within the previous 12 months the insurer has 103.1 systematically attempted to compromise with its creditors on the 103.2 ground that it is financially unable to pay its claims in full; 103.3 (18)In the context of a health maintenance organization,103.4"insurer" when used in clauses (1) to (17) means "health103.5maintenance organization."In addition to the grounds in clauses 103.6 (1) to (17), any one of the following constitutes grounds for 103.7 rehabilitation of a health maintenance organization: 103.8 (a) the health maintenance organization is unable or is 103.9 expected to be unable to meet its debts as they become due; 103.10 (b) grounds exist under section 62D.042, subdivision 7; 103.11 (c) the health maintenance organization's liabilities 103.12 exceed the current value of its assets, exclusive of intangibles 103.13 and, where the guaranteeing organization's financial condition 103.14 no longer meets the requirements of sections 62D.041 and 103.15 62D.042, exclusive of any deposits, letters of credit, or 103.16 guarantees provided by any guaranteeing organization under 103.17 chapter 62D; 103.18 (d) in addition to grounds under clause (16), within the 103.19 last year the health maintenance organization has failed, and 103.20 the commissionerof healthexpects such failure to continue in 103.21 the future, to make comprehensive medical care adequately 103.22 available and accessible to its enrollees and the health 103.23 maintenance organization has not successfully implemented a plan 103.24 of corrective action pursuant to section 62D.121, subdivision 7; 103.25 and 103.26 (e) in addition to grounds under clause (16), within the 103.27 last year the directors or officers of the health maintenance 103.28 organization willfully violated the requirements of section 103.29 317A.251, or having become aware within the previous year of an 103.30 unintentional or willful violation of section 317A.251, have 103.31 failed to take all reasonable steps to remedy the situation 103.32 resulting from the violation and to prevent the same violation 103.33 in the future; 103.34 (19) An affiliate of the insurer has been placed in 103.35 conservatorship, rehabilitation, liquidation, or other court 103.36 supervision such that the insurer's financial condition may be 104.1 jeopardized. 104.2 Sec. 5. Minnesota Statutes 1998, section 60B.20, is 104.3 amended to read: 104.4 60B.20 [GROUNDS FOR LIQUIDATION.] 104.5 The commissioner may apply by verified petition to the 104.6 district court for Ramsey county or for the county in which the 104.7 principal office of the insurer is located for an order to 104.8 liquidate a domestic insurer or an alien insurer domiciled in 104.9 this state on any one or more of the following grounds: 104.10 (1) Any ground on which the commissioner may apply for an 104.11 order of rehabilitation under section 60B.15, whenever the 104.12 commissioner believes that attempts to rehabilitate the insurer 104.13 would substantially increase the risk of loss to its creditors, 104.14 its policyholders, or the public, or would be futile, or that 104.15 rehabilitation would serve no useful purpose; 104.16 (2) That the insurer is or is about to become insolvent; 104.17 (3) That the insurer has not transacted the business for 104.18 which it was organized or incorporated during the previous 12 104.19 months or has transacted only a token such business during that 104.20 period, although authorized to do so throughout that period, or 104.21 that more than 12 months after incorporation it has failed to 104.22 become authorized to do the business for which it was organized 104.23 or incorporated; 104.24 (4) That the insurer has commenced, or within the previous 104.25 year has attempted to commence, voluntary dissolution or 104.26 liquidation otherwise than as provided in section 60B.04, 104.27 subdivision 3 in the case of a solvent insurer; 104.28 (5) That the insurer has concealed records or assets from 104.29 the commissioner or improperly removed them from the 104.30 jurisdiction, or the commissioner believes that the insurer is 104.31 about to do so; 104.32 (6) That the insurer does not satisfy the requirements that 104.33 would be applicable if it were seeking initial authorization in 104.34 this state to do the business for which it was organized or 104.35 incorporated, except for: 104.36 (i) Requirements that are intended to apply only at the 105.1 time the initial authorization to do business is obtained, and 105.2 not thereafter; and 105.3 (ii) Requirements that are expressly made inapplicable by 105.4 the laws establishing the requirements; 105.5 (7) That the holders of two-thirds of the shares entitled 105.6 to vote, or two-thirds of the members or policyholders entitled 105.7 to vote in an insurer controlled by its members or 105.8 policyholders, have consented to a petition; 105.9 (8)In the context of a health maintenance organization,105.10"insurer" when used in clauses (1) to (7) means "health105.11maintenance organization."In addition to the grounds in clauses 105.12 (1) to (7), any one of the following constitutes grounds for 105.13 liquidation of a health maintenance organization: 105.14 (i) the health maintenance organization is unable or is 105.15 expected to be unable to meet its debts as they become due; 105.16 (ii) grounds exist under section 62D.042, subdivision 7; 105.17 (iii) the health maintenance organization's liabilities 105.18 exceed the current value of its assets, exclusive of intangibles 105.19 and, where the guaranteeing organization's financial condition 105.20 no longer meets the requirements of sections 62D.041 and 105.21 62D.042, exclusive of any deposits, letters of credit, or 105.22 guarantees provided by any guaranteeing organization under 105.23 chapter 62D; 105.24 (iv) within the last year the health maintenance 105.25 organization has failed, and the commissionerof healthexpects 105.26 failure to continue in the future, to make comprehensive medical 105.27 care adequately available and accessible to its enrollees and 105.28 the health maintenance organization has not successfully 105.29 implemented a plan of corrective action pursuant to section 105.30 62D.121, subdivision 7; and 105.31 (v) within the last year the directors or officers of the 105.32 health maintenance organization willfully violated the 105.33 requirements of section 317A.251, or having become aware within 105.34 the previous year of an unintentional or willful violation of 105.35 section 317A.251, have failed to take all reasonable steps to 105.36 remedy the situation resulting from the violation and to prevent 106.1 the same violation in the future. 106.2 Sec. 6. Minnesota Statutes 1998, section 60G.01, 106.3 subdivision 2, is amended to read: 106.4 Subd. 2. [COMMISSIONER.] "Commissioner" means the 106.5 commissioner of commerce, except that "commissioner" means the106.6commissioner of health for administrative supervision of health106.7maintenance organizations. 106.8 Sec. 7. Minnesota Statutes 1998, section 60G.01, 106.9 subdivision 4, is amended to read: 106.10 Subd. 4. [DEPARTMENT.] "Department" means the department 106.11 of commerce, except that "department" means the department of106.12health for administrative supervision of health maintenance106.13organizations. 106.14 Sec. 8. Minnesota Statutes 1998, section 62A.61, is 106.15 amended to read: 106.16 62A.61 [DISCLOSURE OF METHODS USED BY HEALTH CARRIERS TO 106.17 DETERMINE USUAL AND CUSTOMARY FEES.] 106.18 (a) A health carrier that bases reimbursement to health 106.19 care providers upon a usual and customary fee must maintain in 106.20 its office a copy of a description of the methodology used to 106.21 calculate fees including at least the following: 106.22 (1) the frequency of the determination of usual and 106.23 customary fees; 106.24 (2) a general description of the methodology used to 106.25 determine usual and customary fees; and 106.26 (3) the percentile of usual and customary fees that 106.27 determines the maximum allowable reimbursement. 106.28 (b) A health carrier must provide a copy of the information 106.29 described in paragraph (a) to the commissionerof health or the106.30commissioner of commerce,upon request. 106.31 (c) The commissionerof health or the commissioner of106.32commerce, as appropriate,may use to enforce this section any 106.33 enforcement powers otherwise available to the commissioner with 106.34 respect to the health carrier. The commissionerof health or106.35commerce, as appropriate,may require health carriers to provide 106.36 the information required under this section and may use any 107.1 powers granted under other laws relating to the regulation of 107.2 health carriers to enforce compliance. 107.3 (d) For purposes of this section, "health carrier" has the 107.4 meaning given in section 62A.011. 107.5 Sec. 9. Minnesota Statutes 1998, section 62L.02, 107.6 subdivision 8, is amended to read: 107.7 Subd. 8. [COMMISSIONER.] "Commissioner" means the 107.8 commissioner of commercefor health carriers subject to the107.9jurisdiction of the department of commerce or the commissioner107.10of health for health carriers subject to the jurisdiction of the107.11department of health,or therelevantcommissioner's designated 107.12 representative.For purposes of sections 62L.13 to 62L.22,107.13"commissioner" means the commissioner of commerce or that107.14commissioner's designated representative.107.15 Sec. 10. Minnesota Statutes 1998, section 62L.05, 107.16 subdivision 12, is amended to read: 107.17 Subd. 12. [DEMONSTRATION PROJECTS.] Nothing in this 107.18 chapter prohibits a health maintenance organization from 107.19 offering a demonstration project authorized under section 62D.30. 107.20 The commissionerof healthmay approve a demonstration project 107.21 which offers benefits that do not meet the requirements of a 107.22 small employer plan if the commissioner finds that the 107.23 requirements of section 62D.30 are otherwise met. 107.24 Sec. 11. Minnesota Statutes 1998, section 62L.08, 107.25 subdivision 10, is amended to read: 107.26 Subd. 10. [RATING REPORT.] Beginning January 1, 1995, and 107.27 annually thereafter, thecommissioners of health and107.28commercecommissioner shall provide ajointreport to the 107.29 legislature on the effect of the rating restrictions required by 107.30 this section and the appropriateness of proceeding with 107.31 additional rate reform. Each report must include an analysis of 107.32 the availability of health care coverage due to the rating 107.33 reform, the equitable and appropriate distribution of risk and 107.34 associated costs, the effect on the self-insurance market, and 107.35 any resulting or anticipated change in health plan design and 107.36 market share and availability of health carriers. 108.1 Sec. 12. Minnesota Statutes 1998, section 62L.08, 108.2 subdivision 11, is amended to read: 108.3 Subd. 11. [LOSS RATIO STANDARDS.] Notwithstanding section 108.4 62A.02, subdivision 3, relating to loss ratios, each policy or 108.5 contract form used with respect to a health benefit plan 108.6 offered, or issued in the small employer market, is subject, 108.7 beginning July 1, 1993, to section 62A.021.The commissioner of108.8health has, with respect to carriers under that commissioner's108.9jurisdiction, all of the powers of the commissioner of commerce108.10under that section.108.11 Sec. 13. Minnesota Statutes 1998, section 62M.11, is 108.12 amended to read: 108.13 62M.11 [COMPLAINTS TO COMMERCEOR HEALTH.] 108.14 Notwithstanding the provisions of sections 62M.01 to 108.15 62M.16, an enrollee may file a complaint regarding a 108.16 determination not to certify directly to the commissioner 108.17responsible for regulating the utilization review108.18organizationof commerce. 108.19 Sec. 14. Minnesota Statutes 1998, section 62M.16, is 108.20 amended to read: 108.21 62M.16 [RULEMAKING.] 108.22 If it is determined that rules are reasonable and necessary 108.23 to accomplish the purpose of sections 62M.01 to 62M.16, the 108.24 rules must be adoptedthrough a joint rulemaking process by both108.25the department of commerce and the department of healthby the 108.26 commissioner of commerce. 108.27 Sec. 15. Minnesota Statutes 1998, section 62Q.01, 108.28 subdivision 2, is amended to read: 108.29 Subd. 2. [COMMISSIONER.] "Commissioner" means the 108.30 commissioner ofhealth for purposes of regulating health108.31maintenance organizations, and community integrated service108.32networks, or the commissioner ofcommercefor purposes of108.33regulating all other health plan companies. For all other108.34purposes, "commissioner" means the commissioner of health. 108.35 Sec. 16. Minnesota Statutes 1998, section 62Q.07, is 108.36 amended to read: 109.1 62Q.07 [ACTION PLANS.] 109.2 Subdivision 1. [ACTION PLANS REQUIRED.] (a) To increase 109.3 public awareness and accountability of health plan companies, 109.4 all health plan companies that issue or renew a health plan, as 109.5 defined in section 62Q.01, must annually file with the 109.6applicablecommissioner an action plan that satisfies the 109.7 requirements of this section beginning July 1, 1994, as a 109.8 condition of doing business in Minnesota. For purposes of this 109.9 subdivision, "health plan" includes the coverages described in 109.10 section 62A.011, subdivision 3, clause (10). Each health plan 109.11 company must also file its action plan with the information 109.12 clearinghouse. Action plans are required solely to provide 109.13 information to consumers, purchasers, and the larger community 109.14 as a first step toward greater accountability of health plan 109.15 companies. The sole function of the commissioner in relation to 109.16 the action plans is to ensure that each health plan company 109.17 files a complete action plan, that the action plan is truthful 109.18 and not misleading, and that the action plan is reviewed by 109.19 appropriate community agencies. 109.20 (b) Ifathe commissionerresponsible for regulating a109.21health plan company required to file an action plan under this109.22sectionhas reason to believe an action plan is false or 109.23 misleading, the commissioner may conduct an investigation to 109.24 determine whether the action plan is truthful and not 109.25 misleading, and may require the health plan company to submit 109.26 any information that the commissioner reasonably deems necessary 109.27 to complete the investigation. If the commissioner determines 109.28 that an action plan is false or misleading, the commissioner may 109.29 require the health plan company to file an amended plan or may 109.30 take any action authorized under chapter 72A. 109.31 Subd. 2. [CONTENTS OF ACTION PLANS.] (a) An action plan 109.32 must include a detailed description of all of the health plan 109.33 company's methods and procedures, standards, qualifications, 109.34 criteria, and credentialing requirements for designating the 109.35 providers who are eligible to participate in the health plan 109.36 company's provider network, including any limitations on the 110.1 numbers of providers to be included in the network. This 110.2 description must be updated by the health plan company and filed 110.3 with theapplicable agencycommissioner on a quarterly basis. 110.4 (b) An action plan must include the number of full-time 110.5 equivalent physicians, by specialty, nonphysician providers, and 110.6 allied health providers used to provide services. The action 110.7 plan must also describe how the health plan company intends to 110.8 encourage the use of nonphysician providers, midlevel 110.9 practitioners, and allied health professionals, through at least 110.10 consumer education, physician education, and referral and 110.11 advisement systems. The annual action plan must also include 110.12 data that is broken down by type of provider, reflecting actual 110.13 utilization of midlevel practitioners and allied professionals 110.14 by enrollees of the health plan company during the previous 110.15 year.Until July 1, 1995, a health plan company may use110.16estimates if actual data is not available.For purposes of this 110.17 paragraph, "provider" has the meaning given in section 62J.03, 110.18 subdivision 8. 110.19 (c) An action plan must include a description of the health 110.20 plan company's policy on determining the number and the type of 110.21 providers that are necessary to deliver cost-effective health 110.22 care to its enrollees. The action plan must also include the 110.23 health plan company's strategy, including provider recruitment 110.24 and retention activities, for ensuring that sufficient providers 110.25 are available to its enrollees. 110.26 (d) An action plan must include a description of actions 110.27 taken or planned by the health plan company to ensure that 110.28 information from report cards, outcome studies, and complaints 110.29 is used internally to improve quality of the services provided 110.30 by the health plan company. 110.31 (e) An action plan must include a detailed description of 110.32 the health plan company's policies and procedures for enrolling 110.33 and serving high risk and special needs populations. This 110.34 description must also include the barriers that are present for 110.35 the high risk and special needs population and how the health 110.36 plan company is addressing these barriers in order to provide 111.1 greater access to these populations. "High risk and special 111.2 needs populations" includes, but is not limited to, recipients 111.3 of medical assistance, general assistance medical care, and 111.4 MinnesotaCare; persons with chronic conditions or disabilities; 111.5 individuals within certain racial, cultural, and ethnic 111.6 communities; individuals and families with low income; 111.7 adolescents; the elderly; individuals with limited or no English 111.8 language proficiency; persons with high-cost preexisting 111.9 conditions; homeless persons; chemically dependent persons; 111.10 persons with serious and persistent mental illness; children 111.11 with severe emotional disturbance; and persons who are at high 111.12 risk of requiring treatment. For purposes of this paragraph, 111.13 "provider" has the meaning given in section 62J.03, subdivision 111.14 8. 111.15 (f) An action plan must include a general description of 111.16 any action the health plan company has taken and those it 111.17 intends to take to offer health coverage options to rural 111.18 communities and other communities not currently served by the 111.19 health plan company. 111.20 (g) A health plan company other than a large managed care 111.21 plan company may satisfy any of the requirements of the action 111.22 plan in paragraphs (a) to (f) by stating that it has no 111.23 policies, procedures, practices, or requirements, either written 111.24 or unwritten, or formal or informal, and has undertaken no 111.25 activities or plans on the issues required to be addressed in 111.26 the action plan, provided that the statement is truthful and not 111.27 misleading. For purposes of this paragraph, "large managed care 111.28 plan company" means a health maintenance organization or other 111.29 health plan company that employs or contracts with health care 111.30 providers, that has more than 50,000 enrollees in this state. 111.31 If a health plan company employs or contracts with providers for 111.32 some of its health plans and does not do so for other health 111.33 plans that it offers, the health plan company is a large managed 111.34 care plan company if it has more than 50,000 enrollees in this 111.35 state in health plans for which it does employ or contract with 111.36 providers. 112.1 Sec. 17. Minnesota Statutes 1998, section 62Q.075, 112.2 subdivision 4, is amended to read: 112.3 Subd. 4. [REVIEW.] Upon receipt of the plan, the 112.4appropriatecommissioner shall provide a copy to the regional 112.5 coordinating boards, local community health boards, and other 112.6 relevant community organizations within the managed care 112.7 organization's service area. After reviewing the plan, these 112.8 community groups may submit written comments on the plan to 112.9eitherthe commissioner ofhealth orcommerce, as applicable,112.10 and may advise the commissioner of the managed care 112.11 organization's effectiveness in assisting to achieve regional 112.12 public health goals. The plan may be reviewed by the county 112.13 boards, or city councils acting as a local board of health in 112.14 accordance with chapter 145A, within the managed care 112.15 organization's service area to determine whether the plan is 112.16 consistent with the goals and objectives of the plans required 112.17 under chapters 145A and 256E and whether the plan meets the 112.18 needs of the community. The county board, or applicable city 112.19 council, may also review and make recommendations on the 112.20 availability and accessibility of services provided by the 112.21 managed care organization. The county board, or applicable city 112.22 council, may submit written comments to theappropriate112.23 commissioner, and may advise the commissioner of the managed 112.24 care organization's effectiveness in assisting to meet the needs 112.25 and goals as defined under the responsibilities of chapters 145A 112.26 and 256E.The commissioner of health shall develop112.27recommendations to utilize the written comments submitted as112.28part of the licensure process to ensure local public112.29accountability. These recommendations shall be reported to the112.30legislative commission on health care access by January 15,112.311996.Copies of these written comments must be provided to the 112.32 managed care organization. The plan and any comments submitted 112.33 must be filed with the information clearinghouse to be 112.34 distributed to the public. 112.35 Sec. 18. Minnesota Statutes 1998, section 62Q.105, 112.36 subdivision 6, is amended to read: 113.1 Subd. 6. [RECORDKEEPING.] Health plan companies shall 113.2 maintain records of all enrollee complaints and their 113.3 resolutions. These records must be retained for five years, and 113.4 must be made available to theappropriatecommissioner upon 113.5 request. 113.6 Sec. 19. Minnesota Statutes 1998, section 62Q.105, 113.7 subdivision 7, is amended to read: 113.8 Subd. 7. [REPORTING.] Each health plan company shall 113.9 submit to theappropriatecommissioner, as part of the company's 113.10 annual filing, data on the number and type of complaints that 113.11 are not resolved within 30 days. A health plan company shall 113.12 also make this information available to the public upon request. 113.13 Sec. 20. Minnesota Statutes 1998, section 62Q.11, is 113.14 amended to read: 113.15 62Q.11 [DISPUTE RESOLUTION.] 113.16 Subdivision 1. [ESTABLISHED.] Thecommissioners of health113.17and commercecommissioner shall make dispute resolution 113.18 processes available to encourage early settlement of disputes in 113.19 order to avoid the time and cost associated with litigation and 113.20 other formal adversarial hearings. For purposes of this 113.21 section, "dispute resolution" means the use of negotiation, 113.22 mediation, arbitration, mediation-arbitration, neutral fact 113.23 finding, and minitrials. These processes shall be nonbinding 113.24 unless otherwise agreed to by all parties to the dispute. 113.25 Subd. 2. [REQUIREMENTS.] (a) If an enrollee, health care 113.26 provider, or applicant for network provider status chooses to 113.27 use a dispute resolution process prior to the filing of a formal 113.28 claim or of a lawsuit, the health plan company must participate. 113.29 (b) If an enrollee, health care provider, or applicant for 113.30 network provider status chooses to use a dispute resolution 113.31 process after the filing of a lawsuit, the health plan company 113.32 must participate in dispute resolution, including, but not 113.33 limited to, alternative dispute resolution under rule 114 of the 113.34 Minnesota general rules of practice. 113.35 (c) Thecommissioners of health and commercecommissioner 113.36 shall inform and educate health plan companies' enrollees about 114.1 dispute resolution and its benefits, and shall establish 114.2 appropriate cost-sharing requirements for parties taking part in 114.3 alternative dispute resolution. 114.4 (d) A health plan company may encourage but not require an 114.5 enrollee to submit a complaint to alternative dispute resolution. 114.6 Sec. 21. Minnesota Statutes 1998, section 62Q.22, 114.7 subdivision 2, is amended to read: 114.8 Subd. 2. [REGISTRATION.] A community health clinic that 114.9 offers a prepaid option under this section must register on an 114.10 annual basis with the commissionerof health. 114.11 Sec. 22. Minnesota Statutes 1998, section 62Q.22, 114.12 subdivision 6, is amended to read: 114.13 Subd. 6. [INFORMATION TO BE PROVIDED.] (a) A community 114.14 health clinic must provide an individual or family who purchases 114.15 a prepaid option a clear and concise written statement that 114.16 includes the following information: 114.17 (1) the health care services that the prepaid option 114.18 covers; 114.19 (2) any exclusions or limitations on the health care 114.20 services offered, including any preexisting condition 114.21 limitations, cost-sharing arrangements, or prior authorization 114.22 requirements; 114.23 (3) where the health care services may be obtained; 114.24 (4) a description of the clinic's method for resolving 114.25 patient complaints, including a description of how a patient can 114.26 file a complaint with the department ofhealthcommerce; and 114.27 (5) a description of the conditions under which the prepaid 114.28 option may be canceled or terminated. 114.29 (b) The commissionerof healthmust approve a copy of the 114.30 written statement before the community health clinic may offer 114.31 the prepaid option described in this section. 114.32 Sec. 23. Minnesota Statutes 1998, section 62Q.22, 114.33 subdivision 7, is amended to read: 114.34 Subd. 7. [COMPLAINT PROCESS.] (a) A community health 114.35 clinic that offers a prepaid option under this section must 114.36 establish a complaint resolution process. As an alternative to 115.1 establishing its own process, a community health clinic may use 115.2 the complaint process of another organization. 115.3 (b) A community health clinic must make reasonable efforts 115.4 to resolve complaints and to inform complainants in writing of 115.5 the clinic's decision within 60 days of receiving the complaint. 115.6 (c) A community health clinic that offers a prepaid option 115.7 under this section must report all complaints that are not 115.8 resolved within 60 days to the commissionerof health. 115.9 Sec. 24. Minnesota Statutes 1998, section 62Q.32, is 115.10 amended to read: 115.11 62Q.32 [LOCAL OMBUDSPERSON.] 115.12 County board or community health service agencies may 115.13 establish an office of ombudsperson to provide a system of 115.14 consumer advocacy for persons receiving health care services 115.15 through a health plan company. The ombudsperson's functions may 115.16 include, but are not limited to: 115.17 (a) mediation or advocacy on behalf of a person accessing 115.18 the complaint and appeal procedures to ensure that necessary 115.19 medical services are provided by the health plan company; and 115.20 (b) investigation of the quality of services provided to a 115.21 person and determine the extent to which quality assurance 115.22 mechanisms are needed or any other system change may be needed. 115.23The commissioner of health shall make recommendations for115.24funding these functions including the amount of funding needed115.25and a plan for distribution. The commissioner shall submit115.26these recommendations to the legislative commission on health115.27care access by January 15, 1996.115.28 Sec. 25. Minnesota Statutes 1998, section 62Q.51, 115.29 subdivision 3, is amended to read: 115.30 Subd. 3. [RATE APPROVAL.] The premium rates and cost 115.31 sharing requirements for each option must be submitted to the 115.32 commissionerof health or the commissioner of commerceas 115.33 required by law. A health plan that includes lower enrollee 115.34 cost sharing for services provided by network providers than for 115.35 services provided by out-of-network providers, or lower enrollee 115.36 cost sharing for services provided with prior authorization or 116.1 second opinion than for services provided without prior 116.2 authorization or second opinion, qualifies as a point-of-service 116.3 option. 116.4 Sec. 26. Minnesota Statutes 1998, section 62Q.525, 116.5 subdivision 3, is amended to read: 116.6 Subd. 3. [REQUIRED COVERAGE.] (a) Every type of coverage 116.7 included in subdivision 1 that provides coverage for drugs may 116.8 not exclude coverage of a drug for the treatment of cancer on 116.9 the ground that the drug has not been approved by the federal 116.10 Food and Drug Administration for the treatment of cancer if the 116.11 drug is recognized for treatment of cancer in one of the 116.12 standard reference compendia or in one article in the medical 116.13 literature, as defined in subdivision 2. 116.14 (b) Coverage of a drug required by this subdivision 116.15 includes coverage of medically necessary services directly 116.16 related to and required for appropriate administration of the 116.17 drug. 116.18 (c) Coverage required by this subdivision does not include 116.19 coverage of a drug not listed on the formulary of the coverage 116.20 included in subdivision 1. 116.21 (d) Coverage of a drug required under this subdivision must 116.22 not be subject to any copayment, coinsurance, deductible, or 116.23 other enrollee cost-sharing greater than the coverage included 116.24 in subdivision 1 applies to other drugs. 116.25 (e) The commissionerof commerce or health, as appropriate,116.26 may direct a person that issues coverage included in subdivision 116.27 1 to make payments required by this section. 116.28 Sec. 27. Minnesota Statutes 1998, section 72A.139, 116.29 subdivision 2, is amended to read: 116.30 Subd. 2. [DEFINITIONS.] (a) As used in this section, 116.31 "commissioner" means the commissioner of commercefor health116.32plan companies and other insurers regulated by that commissioner116.33and the commissioner of health for health plan companies116.34regulated by that commissioner. 116.35 (b) As used in this section, a "genetic test" means a 116.36 presymptomatic test of a person's genes, gene products, or 117.1 chromosomes for the purpose of determining the presence or 117.2 absence of a gene or genes that exhibit abnormalities, defects, 117.3 or deficiencies, including carrier status, that are known to be 117.4 the cause of a disease or disorder, or are determined to be 117.5 associated with a statistically increased risk of development of 117.6 a disease or disorder. "Genetic test" does not include a 117.7 cholesterol test or other test not conducted for the purpose of 117.8 determining the presence or absence of a person's gene or genes. 117.9 (c) As used in this section, "health plan" has the meaning 117.10 given in section 62Q.01, subdivision 3. 117.11 (d) As used in this section, "health plan company" has the 117.12 meaning given in section 62Q.01, subdivision 4. 117.13 (e) As used in this section, "individual" means an 117.14 applicant for coverage or a person already covered by the health 117.15 plan company or other insurer. 117.16 Sec. 28. [REPEALER.] 117.17 Minnesota Statutes 1998, sections 62L.11, subdivision 2; 117.18 and 62Q.45, subdivision 1, are repealed. 117.19 Sec. 29. [EFFECTIVE DATE.] 117.20 This article is effective July 1, 2000.