Minnesota Legislature
HF 2786
as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
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A bill for an act
relating to health; requiring large employers to report information on employee
health insurance costs; requiring certain large employers to pay assessments;
requiring assessments to be deposited into the Health Care Access Fund;
requiring rulemaking; proposing coding for new law in Minnesota Statutes,
chapter 175.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[175.40] DEFINITIONS.
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new text begin Subdivision 1. new text end
new text begin Applicability. new text end
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For purposes of sections 175.40 to 175.45, the
following definitions apply.
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new text begin Subd. 2. new text end
new text begin Commissioner. new text end
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"Commissioner" means the commissioner of labor and
industry.
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new text begin Subd. 3. new text end
new text begin Employee. new text end
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"Employee" means a person who performs services for hire for
an employer, and includes all individuals employed at any site owned or operated by an
employer. "Employee" does not include an independent contractor.
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new text begin Subd. 4. new text end
new text begin Employer. new text end
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"Employer" has the meaning provided in section 177.23,
subdivision 6, except that "employer" does not include the federal or state governments,
or any political subdivision of the state.
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new text begin Subd. 5. new text end
new text begin Health insurance costs. new text end
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"Health insurance costs" means the amount
paid by an employer to provide health care or health insurance to employees in the state
to the extent the costs may be deductible by an employer under federal tax law. "Health
insurance costs" includes payments for medical care, prescription drugs, vision care,
medical savings accounts, and any other costs to provide health benefits as defined in
section 213(d) of the Internal Revenue Code.
new text end
new text begin Subd. 6. new text end
new text begin Wages. new text end
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"Wages" has the meaning provided in section 177.23, subdivision
4.
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new text begin EFFECTIVE DATE. new text end
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This section is effective January 1, 2007.
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Sec. 2.
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[175.41] ANNUAL EMPLOYER REPORT ON HEALTH INSURANCE
COSTS.
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new text begin Subdivision 1. new text end
new text begin Annual reporting. new text end
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On January 1, 2007, and annually thereafter, each
employer with 10,000 or more employees in the state shall submit to the commissioner, on
a form and in a manner approved by the commissioner:
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(1) the number of employees of the employer in the state as of a specific day of the
year immediately preceding the previous calendar year as determined by the employer
on an annual basis;
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(2) the amount spent by the employer in the year immediately preceding the previous
calendar year on health insurance costs in the state; and
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(3) the percentage of wages that was spent by the employer in the year immediately
preceding the previous calendar year on health insurance costs in the state.
new text end
new text begin Subd. 2. new text end
new text begin Criteria for information. new text end
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The information required shall:
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(1) be designated in a report signed by the principal executive officer or an individual
performing a similar function; and
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(2) include an affidavit under penalty of perjury that the information required under
subdivision 1:
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(i) was reviewed by the signing officer; and
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(ii) is true to the best of the signing officer's knowledge, information, and belief.
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new text begin Subd. 3. new text end
new text begin Exemption. new text end
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When calculating the percentage of payroll under subdivision
1, an employer may exempt:
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(1) wages paid to any employee in excess of the median household income in the
state as published by the United States Census Bureau; and
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(2) wages paid to an employee who is enrolled in or eligible for Medicare.
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new text begin Subd. 4. new text end
new text begin Rulemaking. new text end
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The commissioner shall adopt rules to specify the
information that an employer shall submit under subdivision 1.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2007.
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Sec. 3.
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[175.42] EMPLOYER PAYMENTS.
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new text begin Subdivision 1. new text end
new text begin Nonprofit employers. new text end
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An employer with 10,000 or more employees
in the state that is organized as a nonprofit organization and does not spend at least eight
percent of the total wages paid to employees in the state on health insurance costs shall
pay to the commissioner an amount equal to the difference between what the employer
spends for health insurance costs and an amount equal to eight percent of the total wages
paid to employees in the state.
new text end
new text begin Subd. 2. new text end
new text begin For-profit employer. new text end
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An employer with 10,000 or more employees in the
state that is not organized as a nonprofit organization and does not spend at least ten
percent of the total wages paid to employees in the state on health insurance costs shall
pay to the commissioner an amount equal to the difference between what the employer
spends for health insurance costs and an amount equal to ten percent of the total wages
paid to employees in the state.
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new text begin Subd. 3. new text end
new text begin Other requirements. new text end
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An employer may not deduct any payment made
under subdivision 1 or 2 from the wages of an employee. An employer shall make the
payment required under this section to the commissioner on a periodic basis as determined
by the commissioner.
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new text begin EFFECTIVE DATE. new text end
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This section is effective January 1, 2007.
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Sec. 4.
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[175.43] CIVIL PENALTIES.
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Failure to report in accordance with section 175.41 shall result in the imposition by
the commissioner of a civil penalty of $250 for each day that the report is not timely filed.
Failure to make the payment required under section 175.42 shall result in the imposition
by the commissioner of a civil penalty of $250,000.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2007.
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Sec. 5.
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[175.44] REPORT BY COMMISSIONER.
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new text begin Subdivision 1. new text end
new text begin Content of report. new text end
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On or before March 15 of each year, the
commissioner shall report to the legislature on:
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(1) the name of each nonprofit and for-profit employer with 10,000 or more
employees in the state;
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(2) the employer's definition of full-time employee and part-time employee;
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(3) the number of full-time employees;
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(4) the number of full-time employees eligible to receive health insurance benefits;
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(5) the number of full-time employees receiving health insurance benefits from
the employer;
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(6) the source of health insurance benefits for those eligible full-time employees
not receiving health insurance benefits through an employer subject to reporting under
section 175.41;
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(7) the number of part-time employees;
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(8) the number of part-time employees eligible to receive health insurance benefits;
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(9) the number of part-time employees receiving health insurance benefits from
the employer; and
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(10) the source of health insurance benefits for those eligible part-time employees
not receiving health insurance benefits through an employer subject to reporting under
section 175.41.
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new text begin Subd. 2. new text end
new text begin Use of employer reporting date. new text end
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The information required under
subdivision 1 shall be reported as of the information reporting date determined by the
employer under section 175.41, subdivision 1, clause (1).
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new text begin Subd. 3. new text end
new text begin Definitions. new text end
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For purposes of this section, "health insurance benefits"
means payments for medical care, prescription drugs, vision care, medical savings
accounts, and any other costs to provide health benefits, as defined in section 213(d) of the
Internal Revenue Code.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2007.
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Sec. 6.
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[175.45] DUTIES OF COMMISSIONER.
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The commissioner shall:
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(1) on an annual basis, based on the information reported under section 175.41:
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(i) verify which employers have 10,000 or more employees in the state; and
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(ii) ensure that all employers with 10,000 or more employees in the state have made
the report required under section 175.41;
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(2) adopt rules to implement sections 175.40 to 175.45; and
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(3) pay the revenue from the payroll assessment into the health care access fund
established under section 16A.724.
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new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2007.
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