1.1                          A bill for an act
  1.2             relating to commerce; regulating Medicare supplement 
  1.3             insurance; conforming state law to the minimum federal 
  1.4             standards; regulating loss ratios on health coverage; 
  1.5             updating specifications for petroleum products; 
  1.6             amending Minnesota Statutes 2002, sections 41A.09, 
  1.7             subdivision 2a; 62A.021, subdivision 1; 62A.31, 
  1.8             subdivisions 1f, 1u, by adding a subdivision; 62A.315; 
  1.9             62A.316; 239.761; 239.792; 296A.01, subdivisions 2, 7, 
  1.10            8, 14, 19, 20, 22, 23, 24, 25, 26, 28, by adding a 
  1.11            subdivision. 
  1.12  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.13                             ARTICLE 1
  1.14                    MEDICARE SUPPLEMENT COVERAGE
  1.15     Section 1.  Minnesota Statutes 2002, section 62A.31, 
  1.16  subdivision 1f, is amended to read: 
  1.17     Subd. 1f.  [SUSPENSION BASED ON ENTITLEMENT TO MEDICAL 
  1.18  ASSISTANCE.] (a) The policy or certificate must provide that 
  1.19  benefits and premiums under the policy or certificate shall be 
  1.20  suspended for any period that may be provided by federal 
  1.21  regulation at the request of the policyholder or certificate 
  1.22  holder for the period, not to exceed 24 months, in which the 
  1.23  policyholder or certificate holder has applied for and is 
  1.24  determined to be entitled to medical assistance under title XIX 
  1.25  of the Social Security Act, but only if the policyholder or 
  1.26  certificate holder notifies the issuer of the policy or 
  1.27  certificate within 90 days after the date the individual becomes 
  1.28  entitled to this assistance. 
  2.1      (b) If suspension occurs and if the policyholder or 
  2.2   certificate holder loses entitlement to this medical assistance, 
  2.3   the policy or certificate shall be automatically reinstated, 
  2.4   effective as of the date of termination of this entitlement, if 
  2.5   the policyholder or certificate holder provides notice of loss 
  2.6   of the entitlement within 90 days after the date of the loss and 
  2.7   pays the premium attributable to the period, effective as of the 
  2.8   date of termination of entitlement. 
  2.9      (c) The policy must provide that upon reinstatement (1) 
  2.10  there is no additional waiting period with respect to treatment 
  2.11  of preexisting conditions, (2) coverage is provided which is 
  2.12  substantially equivalent to coverage in effect before the date 
  2.13  of the suspension, and (3) premiums are classified on terms that 
  2.14  are at least as favorable to the policyholder or certificate 
  2.15  holder as the premium classification terms that would have 
  2.16  applied to the policyholder or certificate holder had coverage 
  2.17  not been suspended. 
  2.18     Sec. 2.  Minnesota Statutes 2002, section 62A.31, 
  2.19  subdivision 1u, is amended to read: 
  2.20     Subd. 1u.  [GUARANTEED ISSUE FOR ELIGIBLE PERSONS.] (a)(1) 
  2.21  Eligible persons are those individuals described in paragraph 
  2.22  (b) who apply to enroll under the Medicare supplement policy not 
  2.23  later than 63 days after the date of the termination of 
  2.24  enrollment described in paragraph (b), seek to enroll under the 
  2.25  policy during the period specified in paragraph (c), and who 
  2.26  submit evidence of the date of termination or disenrollment with 
  2.27  the application for a Medicare supplement policy. 
  2.28     (2) With respect to eligible persons, an issuer shall not:  
  2.29  deny or condition the issuance or effectiveness of a Medicare 
  2.30  supplement policy described in paragraph (c) that is offered and 
  2.31  is available for issuance to new enrollees by the issuer; 
  2.32  discriminate in the pricing of such a Medicare supplement policy 
  2.33  because of health status, claims experience, receipt of health 
  2.34  care, medical condition, or age; or impose an exclusion of 
  2.35  benefits based upon a preexisting condition under such a 
  2.36  Medicare supplement policy. 
  3.1      (b) An eligible person is an individual described in any of 
  3.2   the following: 
  3.3      (1) the individual is enrolled under an employee welfare 
  3.4   benefit plan that provides health benefits that supplement the 
  3.5   benefits under Medicare; and the plan terminates, or the plan 
  3.6   ceases to provide all such supplemental health benefits to the 
  3.7   individual; 
  3.8      (2) the individual is enrolled with a Medicare+Choice 
  3.9   organization under a Medicare+Choice plan under Medicare part C, 
  3.10  and any of the following circumstances apply, or the individual 
  3.11  is 65 years of age or older and is enrolled with a Program of 
  3.12  All-Inclusive Care for the Elderly (PACE) provider under section 
  3.13  1894 of the federal Social Security Act, and there are 
  3.14  circumstances similar to those described in this clause that 
  3.15  would permit discontinuance of the individual's enrollment with 
  3.16  the provider if the individual were enrolled in a 
  3.17  Medicare+Choice plan: 
  3.18     (i) the organization's or plan's certification under 
  3.19  Medicare part C has been terminated or the organization has 
  3.20  terminated or otherwise discontinued providing the plan in the 
  3.21  area in which the individual resides; 
  3.22     (ii) the individual is no longer eligible to elect the plan 
  3.23  because of a change in the individual's place of residence or 
  3.24  other change in circumstances specified by the secretary, but 
  3.25  not including termination of the individual's enrollment on the 
  3.26  basis described in section 1851(g)(3)(B) of the federal Social 
  3.27  Security Act, United States Code, title 42, section 
  3.28  1395w-21(g)(3)(b) (where the individual has not paid premiums on 
  3.29  a timely basis or has engaged in disruptive behavior as 
  3.30  specified in standards under section 1856 of the federal Social 
  3.31  Security Act, United States Code, title 42, section 1395w-26), 
  3.32  or the plan is terminated for all individuals within a residence 
  3.33  area; 
  3.34     (iii) the individual demonstrates, in accordance with 
  3.35  guidelines established by the Secretary, that: 
  3.36     (A) the organization offering the plan substantially 
  4.1   violated a material provision of the organization's contract in 
  4.2   relation to the individual, including the failure to provide an 
  4.3   enrollee on a timely basis medically necessary care for which 
  4.4   benefits are available under the plan or the failure to provide 
  4.5   such covered care in accordance with applicable quality 
  4.6   standards; or 
  4.7      (B) the organization, or agent or other entity acting on 
  4.8   the organization's behalf, materially misrepresented the plan's 
  4.9   provisions in marketing the plan to the individual; or 
  4.10     (iv) the individual meets such other exceptional conditions 
  4.11  as the secretary may provide; 
  4.12     (3)(i) the individual is enrolled with: 
  4.13     (A) an eligible organization under a contract under section 
  4.14  1876 of the federal Social Security Act, United States Code, 
  4.15  title 42, section 1395mm (Medicare risk or cost); 
  4.16     (B) a similar organization operating under demonstration 
  4.17  project authority, effective for periods before April 1, 1999; 
  4.18     (C) an organization under an agreement under section 
  4.19  1833(a)(1)(A) of the federal Social Security Act, United States 
  4.20  Code, title 42, section 1395l(a)(1)(A) (health care prepayment 
  4.21  plan); or 
  4.22     (D) an organization under a Medicare Select policy under 
  4.23  section 62A.318 or the similar law of another state; and 
  4.24     (ii) the enrollment ceases under the same circumstances 
  4.25  that would permit discontinuance of an individual's election of 
  4.26  coverage under clause (2); 
  4.27     (4) the individual is enrolled under a Medicare supplement 
  4.28  policy, and the enrollment ceases because: 
  4.29     (i)(A) of the insolvency of the issuer or bankruptcy of the 
  4.30  nonissuer organization; or 
  4.31     (B) of other involuntary termination of coverage or 
  4.32  enrollment under the policy; 
  4.33     (ii) the issuer of the policy substantially violated a 
  4.34  material provision of the policy; or 
  4.35     (iii) the issuer, or an agent or other entity acting on the 
  4.36  issuer's behalf, materially misrepresented the policy's 
  5.1   provisions in marketing the policy to the individual; 
  5.2      (5)(i) the individual was enrolled under a Medicare 
  5.3   supplement policy and terminates that enrollment and 
  5.4   subsequently enrolls, for the first time, with any 
  5.5   Medicare+Choice organization under a Medicare+Choice plan under 
  5.6   Medicare part C; any eligible organization under a contract 
  5.7   under section 1876 of the federal Social Security Act, United 
  5.8   States Code, title 42, section 1395mm (Medicare risk or cost); 
  5.9   any similar organization operating under demonstration project 
  5.10  authority; an organization under an agreement under section 
  5.11  1833(a)(1)(A) of the federal Social Security Act, United States 
  5.12  Code, title 42, section 1395l(a)(1)(A) (health care prepayment 
  5.13  plan); any PACE provider under section 1894 of the federal 
  5.14  Social Security Act, or a Medicare Select policy under section 
  5.15  62A.318 or the similar law of another state; and 
  5.16     (ii) the subsequent enrollment under paragraph (a) item (i) 
  5.17  is terminated by the enrollee during any period within the first 
  5.18  12 months of such the subsequent enrollment during which the 
  5.19  enrollee is permitted to terminate the subsequent enrollment 
  5.20  under section 1851(e) of the federal Social Security Act; or 
  5.21     (6) the individual, upon first enrolling for benefits under 
  5.22  Medicare part B, enrolls in a Medicare+Choice plan under 
  5.23  Medicare part C, or with a PACE provider under section 1894 of 
  5.24  the federal Social Security Act, and disenrolls from the plan by 
  5.25  not later than 12 months after the effective date of enrollment. 
  5.26     (c)(1) In the case of an individual described in paragraph 
  5.27  (b), clause (1), the guaranteed issue period begins on the date 
  5.28  the individual receives a notice of termination or cessation of 
  5.29  all supplemental health benefits or, if a notice is not 
  5.30  received, notice that a claim has been denied because of a 
  5.31  termination or cessation, and ends 63 days after the date of the 
  5.32  applicable notice. 
  5.33     (2) In the case of an individual described in paragraph 
  5.34  (b), clause (2), (3), (5), or (6), whose enrollment is 
  5.35  terminated involuntarily, the guaranteed issue period begins on 
  5.36  the date that the individual receives a notice of termination 
  6.1   and ends 63 days after the date the applicable coverage is 
  6.2   terminated. 
  6.3      (3) In the case of an individual described in paragraph 
  6.4   (b), clause (4), item (i), the guaranteed issue period begins on 
  6.5   the earlier of:  (i) the date that the individual receives a 
  6.6   notice of termination, a notice of the issuer's bankruptcy or 
  6.7   insolvency, or other such similar notice if any; and (ii) the 
  6.8   date that the applicable coverage is terminated, and ends on the 
  6.9   date that is 63 days after the date the coverage is terminated. 
  6.10     (4) In the case of an individual described in paragraph 
  6.11  (b), clause (2), (4), (5), or (6), who disenrolls voluntarily, 
  6.12  the guaranteed issue period begins on the date that is 60 days 
  6.13  before the effective date of the disenrollment and ends on the 
  6.14  date that is 63 days after the effective date. 
  6.15     (5) In the case of an individual described in paragraph (b) 
  6.16  but not described in this paragraph, the guaranteed issue period 
  6.17  begins on the effective date of disenrollment and ends on the 
  6.18  date that is 63 days after the effective date. 
  6.19     (d)(1) In the case of an individual described in paragraph 
  6.20  (b), clause (5), or deemed to be so described, pursuant to this 
  6.21  paragraph, whose enrollment with an organization or provider 
  6.22  described in paragraph (b), clause (5), item (i), is 
  6.23  involuntarily terminated within the first 12 months of 
  6.24  enrollment, and who, without an intervening enrollment, enrolls 
  6.25  with another such organization or provider, the subsequent 
  6.26  enrollment is deemed to be an initial enrollment described in 
  6.27  paragraph (b), clause (5). 
  6.28     (2) In the case of an individual described in paragraph 
  6.29  (b), clause (6), or deemed to be so described, pursuant to this 
  6.30  paragraph, whose enrollment with a plan or in a program 
  6.31  described in paragraph (b), clause (6), is involuntarily 
  6.32  terminated within the first 12 months of enrollment, and who, 
  6.33  without an intervening enrollment, enrolls in another such plan 
  6.34  or program, the subsequent enrollment is deemed to be an initial 
  6.35  enrollment described in paragraph (b), clause (6). 
  6.36     (3) For purposes of paragraph (b), clauses (5) and (6), no 
  7.1   enrollment of an individual with an organization or provider 
  7.2   described in paragraph (b), clause (5), item (i), or with a plan 
  7.3   or in a program described in paragraph (b), clause (6), may be 
  7.4   deemed to be an initial enrollment under this paragraph after 
  7.5   the two-year period beginning on the date on which the 
  7.6   individual first enrolled with the organization, provider, plan, 
  7.7   or program. 
  7.8      (e) The Medicare supplement policy to which eligible 
  7.9   persons are entitled under: 
  7.10     (1) paragraph (b), clauses (1) to (4), is any Medicare 
  7.11  supplement policy that has a benefit package consisting of the 
  7.12  basic Medicare supplement plan described in section 62A.316, 
  7.13  paragraph (a), plus any combination of the three optional riders 
  7.14  described in section 62A.316, paragraph (b), clauses (1) to (3), 
  7.15  offered by any issuer; 
  7.16     (2) paragraph (b), clause (5), is the same Medicare 
  7.17  supplement policy in which the individual was most recently 
  7.18  previously enrolled, if available from the same issuer, or, if 
  7.19  not so available, any policy described in clause (1) offered by 
  7.20  any issuer; 
  7.21     (3) paragraph (b), clause (6), shall include any Medicare 
  7.22  supplement policy offered by any issuer. 
  7.23     (d) (f)(1) At the time of an event described in paragraph 
  7.24  (b), because of which an individual loses coverage or benefits 
  7.25  due to the termination of a contract or agreement, policy, or 
  7.26  plan, the organization that terminates the contract or 
  7.27  agreement, the issuer terminating the policy, or the 
  7.28  administrator of the plan being terminated, respectively, shall 
  7.29  notify the individual of the individual's rights under this 
  7.30  subdivision, and of the obligations of issuers of Medicare 
  7.31  supplement policies under paragraph (a).  The notice must be 
  7.32  communicated contemporaneously with the notification of 
  7.33  termination. 
  7.34     (2) At the time of an event described in paragraph (b), 
  7.35  because of which an individual ceases enrollment under a 
  7.36  contract or agreement, policy, or plan, the organization that 
  8.1   offers the contract or agreement, regardless of the basis for 
  8.2   the cessation of enrollment, the issuer offering the policy, or 
  8.3   the administrator of the plan, respectively, shall notify the 
  8.4   individual of the individual's rights under this subdivision, 
  8.5   and of the obligations of issuers of Medicare supplement 
  8.6   policies under paragraph (a).  The notice must be communicated 
  8.7   within ten working days of the issuer receiving notification of 
  8.8   disenrollment.  
  8.9      (e) (g) Reference in this subdivision to a situation in 
  8.10  which, or to a basis upon which, an individual's coverage has 
  8.11  been terminated does not provide authority under the laws of 
  8.12  this state for the termination in that situation or upon that 
  8.13  basis. 
  8.14     (f) (h) An individual's rights under this subdivision are 
  8.15  in addition to, and do not modify or limit, the individual's 
  8.16  rights under subdivision 1h. 
  8.17     Sec. 3.  Minnesota Statutes 2002, section 62A.31, is 
  8.18  amended by adding a subdivision to read: 
  8.19     Subd. 7.  [MEDICARE PRESCRIPTION DRUG BENEFIT.] If Congress 
  8.20  enacts legislation creating a prescription drug benefit in the 
  8.21  Medicare program, nothing in this section or any other section 
  8.22  shall prohibit an issuer of a Medicare supplement policy from 
  8.23  offering this prescription drug benefit consistent with the 
  8.24  applicable federal law or regulations.  If an issuer offers the 
  8.25  federal benefit, such an offer shall be deemed to meet the 
  8.26  issuer's mandatory offer obligations under this section and may, 
  8.27  at the discretion of the issuer, constitute replacement coverage 
  8.28  as defined in subdivision 1i for any existing policy containing 
  8.29  a prescription drug benefit. 
  8.30     Sec. 4.  Minnesota Statutes 2002, section 62A.315, is 
  8.31  amended to read: 
  8.32     62A.315 [EXTENDED BASIC MEDICARE SUPPLEMENT PLAN; 
  8.33  COVERAGE.] 
  8.34     The extended basic Medicare supplement plan must have a 
  8.35  level of coverage so that it will be certified as a qualified 
  8.36  plan pursuant to section 62E.07, and will provide: 
  9.1      (1) coverage for all of the Medicare part A inpatient 
  9.2   hospital deductible and coinsurance amounts, and 100 percent of 
  9.3   all Medicare part A eligible expenses for hospitalization not 
  9.4   covered by Medicare; 
  9.5      (2) coverage for the daily copayment amount of Medicare 
  9.6   part A eligible expenses for the calendar year incurred for 
  9.7   skilled nursing facility care; 
  9.8      (3) coverage for the copayment coinsurance amount or in the 
  9.9   case of hospital outpatient department services paid under a 
  9.10  prospective payment system, the co-payment amount, of Medicare 
  9.11  eligible expenses under Medicare part B regardless of hospital 
  9.12  confinement, and the Medicare part B deductible amount; 
  9.13     (4) 80 percent of the usual and customary hospital and 
  9.14  medical expenses and supplies described in section 62E.06, 
  9.15  subdivision 1, not to exceed any charge limitation established 
  9.16  by the Medicare program or state law, the usual and customary 
  9.17  hospital and medical expenses and supplies, described in section 
  9.18  62E.06, subdivision 1, while in a foreign country, and 
  9.19  prescription drug expenses, not covered by Medicare; 
  9.20     (5) coverage for the reasonable cost of the first three 
  9.21  pints of blood, or equivalent quantities of packed red blood 
  9.22  cells as defined under federal regulations under Medicare parts 
  9.23  A and B, unless replaced in accordance with federal regulations; 
  9.24     (6) 100 percent of the cost of immunizations and routine 
  9.25  screening procedures for cancer, including mammograms and pap 
  9.26  smears; 
  9.27     (7) preventive medical care benefit:  coverage for the 
  9.28  following preventive health services: 
  9.29     (i) an annual clinical preventive medical history and 
  9.30  physical examination that may include tests and services from 
  9.31  clause (ii) and patient education to address preventive health 
  9.32  care measures; 
  9.33     (ii) any one or a combination of the following preventive 
  9.34  screening tests or preventive services, the frequency of which 
  9.35  is considered medically appropriate: 
  9.36     (A) fecal occult blood test and/or digital rectal 
 10.1   examination; 
 10.2      (B) dipstick urinalysis for hematuria, bacteriuria, and 
 10.3   proteinuria; 
 10.4      (C) pure tone (air only) hearing screening test 
 10.5   administered or ordered by a physician; 
 10.6      (D) serum cholesterol screening every five years; 
 10.7      (E) thyroid function test; 
 10.8      (F) diabetes screening; 
 10.9      (iii) any other tests or preventive measures determined 
 10.10  appropriate by the attending physician.  
 10.11     Reimbursement shall be for the actual charges up to 100 
 10.12  percent of the Medicare-approved amount for each service as if 
 10.13  Medicare were to cover the service as identified in American 
 10.14  Medical Association current procedural terminology (AMA CPT) 
 10.15  codes to a maximum of $120 annually under this benefit.  This 
 10.16  benefit shall not include payment for any procedure covered by 
 10.17  Medicare; 
 10.18     (8) at-home recovery benefit:  coverage for services to 
 10.19  provide short-term at-home assistance with activities of daily 
 10.20  living for those recovering from an illness, injury, or surgery: 
 10.21     (i) for purposes of this benefit, the following definitions 
 10.22  shall apply: 
 10.23     (A) "activities of daily living" include, but are not 
 10.24  limited to, bathing, dressing, personal hygiene, transferring, 
 10.25  eating, ambulating, assistance with drugs that are normally 
 10.26  self-administered, and changing bandages or other dressings; 
 10.27     (B) "care provider" means a duly qualified or licensed home 
 10.28  health aide/homemaker, personal care aide, or nurse provided 
 10.29  through a licensed home health care agency or referred by a 
 10.30  licensed referral agency or licensed nurses registry; 
 10.31     (C) "home" means a place used by the insured as a place of 
 10.32  residence, provided that the place would qualify as a residence 
 10.33  for home health care services covered by Medicare.  A hospital 
 10.34  or skilled nursing facility shall not be considered the 
 10.35  insured's place of residence; 
 10.36     (D) "at-home recovery visit" means the period of a visit 
 11.1   required to provide at-home recovery care, without limit on the 
 11.2   duration of the visit, except each consecutive four hours in a 
 11.3   24-hour period of services provided by a care provider is one 
 11.4   visit; 
 11.5      (ii) coverage requirements and limitations: 
 11.6      (A) at-home recovery services provided must be primarily 
 11.7   services that assist in activities of daily living; 
 11.8      (B) the insured's attending physician must certify that the 
 11.9   specific type and frequency of at-home recovery services are 
 11.10  necessary because of a condition for which a home care plan of 
 11.11  treatment was approved by Medicare; 
 11.12     (C) coverage is limited to: 
 11.13     (I) no more than the number and type of at-home recovery 
 11.14  visits certified as medically necessary by the insured's 
 11.15  attending physician.  The total number of at-home recovery 
 11.16  visits shall not exceed the number of Medicare-approved home 
 11.17  health care visits under a Medicare-approved home care plan of 
 11.18  treatment; 
 11.19     (II) the actual charges for each visit up to a maximum 
 11.20  reimbursement of $40 per visit; 
 11.21     (III) $1,600 per calendar year; 
 11.22     (IV) seven visits in any one week; 
 11.23     (V) care furnished on a visiting basis in the insured's 
 11.24  home; 
 11.25     (VI) services provided by a care provider as defined in 
 11.26  this section; 
 11.27     (VII) at-home recovery visits while the insured is covered 
 11.28  under the policy or certificate and not otherwise excluded; 
 11.29     (VIII) at-home recovery visits received during the period 
 11.30  the insured is receiving Medicare-approved home care services or 
 11.31  no more than eight weeks after the service date of the last 
 11.32  Medicare-approved home health care visit; 
 11.33     (iii) coverage is excluded for: 
 11.34     (A) home care visits paid for by Medicare or other 
 11.35  government programs; and 
 11.36     (B) care provided by family members, unpaid volunteers, or 
 12.1   providers who are not care providers. 
 12.2      Sec. 5.  Minnesota Statutes 2002, section 62A.316, is 
 12.3   amended to read: 
 12.4      62A.316 [BASIC MEDICARE SUPPLEMENT PLAN; COVERAGE.] 
 12.5      (a) The basic Medicare supplement plan must have a level of 
 12.6   coverage that will provide: 
 12.7      (1) coverage for all of the Medicare part A inpatient 
 12.8   hospital coinsurance amounts, and 100 percent of all Medicare 
 12.9   part A eligible expenses for hospitalization not covered by 
 12.10  Medicare, after satisfying the Medicare part A deductible; 
 12.11     (2) coverage for the daily copayment amount of Medicare 
 12.12  part A eligible expenses for the calendar year incurred for 
 12.13  skilled nursing facility care; 
 12.14     (3) coverage for the copayment coinsurance amount, or in 
 12.15  the case of outpatient department services paid under a 
 12.16  prospective payment system, the co-payment amount, of Medicare 
 12.17  eligible expenses under Medicare part B regardless of hospital 
 12.18  confinement, subject to the Medicare part B deductible amount; 
 12.19     (4) 80 percent of the hospital and medical expenses and 
 12.20  supplies incurred during travel outside the United States as a 
 12.21  result of a medical emergency; 
 12.22     (5) coverage for the reasonable cost of the first three 
 12.23  pints of blood, or equivalent quantities of packed red blood 
 12.24  cells as defined under federal regulations under Medicare parts 
 12.25  A and B, unless replaced in accordance with federal regulations; 
 12.26     (6) 100 percent of the cost of immunizations and routine 
 12.27  screening procedures for cancer screening including mammograms 
 12.28  and pap smears; and 
 12.29     (7) 80 percent of coverage for all physician prescribed 
 12.30  medically appropriate and necessary equipment and supplies used 
 12.31  in the management and treatment of diabetes.  Coverage must 
 12.32  include persons with gestational, type I, or type II diabetes. 
 12.33     (b) Only the following optional benefit riders may be added 
 12.34  to this plan: 
 12.35     (1) coverage for all of the Medicare part A inpatient 
 12.36  hospital deductible amount; 
 13.1      (2) a minimum of 80 percent of eligible medical expenses 
 13.2   and supplies not covered by Medicare part B, not to exceed any 
 13.3   charge limitation established by the Medicare program or state 
 13.4   law; 
 13.5      (3) coverage for all of the Medicare part B annual 
 13.6   deductible; 
 13.7      (4) coverage for at least 50 percent, or the equivalent of 
 13.8   50 percent, of usual and customary prescription drug expenses; 
 13.9      (5) coverage for the following preventive health services: 
 13.10     (i) an annual clinical preventive medical history and 
 13.11  physical examination that may include tests and services from 
 13.12  clause (ii) and patient education to address preventive health 
 13.13  care measures; 
 13.14     (ii) any one or a combination of the following preventive 
 13.15  screening tests or preventive services, the frequency of which 
 13.16  is considered medically appropriate: 
 13.17     (A) fecal occult blood test and/or digital rectal 
 13.18  examination; 
 13.19     (B) dipstick urinalysis for hematuria, bacteriuria, and 
 13.20  proteinuria; 
 13.21     (C) pure tone (air only) hearing screening test, 
 13.22  administered or ordered by a physician; 
 13.23     (D) serum cholesterol screening every five years; 
 13.24     (E) thyroid function test; 
 13.25     (F) diabetes screening; 
 13.26     (iii) any other tests or preventive measures determined 
 13.27  appropriate by the attending physician. 
 13.28     Reimbursement shall be for the actual charges up to 100 
 13.29  percent of the Medicare-approved amount for each service, as if 
 13.30  Medicare were to cover the service as identified in American 
 13.31  Medical Association current procedural terminology (AMA CPT) 
 13.32  codes, to a maximum of $120 annually under this benefit.  This 
 13.33  benefit shall not include payment for a procedure covered by 
 13.34  Medicare; 
 13.35     (6) coverage for services to provide short-term at-home 
 13.36  assistance with activities of daily living for those recovering 
 14.1   from an illness, injury, or surgery: 
 14.2      (i) For purposes of this benefit, the following definitions 
 14.3   apply: 
 14.4      (A) "activities of daily living" include, but are not 
 14.5   limited to, bathing, dressing, personal hygiene, transferring, 
 14.6   eating, ambulating, assistance with drugs that are normally 
 14.7   self-administered, and changing bandages or other dressings; 
 14.8      (B) "care provider" means a duly qualified or licensed home 
 14.9   health aide/homemaker, personal care aid, or nurse provided 
 14.10  through a licensed home health care agency or referred by a 
 14.11  licensed referral agency or licensed nurses registry; 
 14.12     (C) "home" means a place used by the insured as a place of 
 14.13  residence, provided that the place would qualify as a residence 
 14.14  for home health care services covered by Medicare.  A hospital 
 14.15  or skilled nursing facility shall not be considered the 
 14.16  insured's place of residence; 
 14.17     (D) "at-home recovery visit" means the period of a visit 
 14.18  required to provide at-home recovery care, without limit on the 
 14.19  duration of the visit, except each consecutive four hours in a 
 14.20  24-hour period of services provided by a care provider is one 
 14.21  visit; 
 14.22     (ii) Coverage requirements and limitations: 
 14.23     (A) at-home recovery services provided must be primarily 
 14.24  services that assist in activities of daily living; 
 14.25     (B) the insured's attending physician must certify that the 
 14.26  specific type and frequency of at-home recovery services are 
 14.27  necessary because of a condition for which a home care plan of 
 14.28  treatment was approved by Medicare; 
 14.29     (C) coverage is limited to: 
 14.30     (I) no more than the number and type of at-home recovery 
 14.31  visits certified as necessary by the insured's attending 
 14.32  physician.  The total number of at-home recovery visits shall 
 14.33  not exceed the number of Medicare-approved home care visits 
 14.34  under a Medicare-approved home care plan of treatment; 
 14.35     (II) the actual charges for each visit up to a maximum 
 14.36  reimbursement of $40 per visit; 
 15.1      (III) $1,600 per calendar year; 
 15.2      (IV) seven visits in any one week; 
 15.3      (V) care furnished on a visiting basis in the insured's 
 15.4   home; 
 15.5      (VI) services provided by a care provider as defined in 
 15.6   this section; 
 15.7      (VII) at-home recovery visits while the insured is covered 
 15.8   under the policy or certificate and not otherwise excluded; 
 15.9      (VIII) at-home recovery visits received during the period 
 15.10  the insured is receiving Medicare-approved home care services or 
 15.11  no more than eight weeks after the service date of the last 
 15.12  Medicare-approved home health care visit; 
 15.13     (iii) Coverage is excluded for: 
 15.14     (A) home care visits paid for by Medicare or other 
 15.15  government programs; and 
 15.16     (B) care provided by family members, unpaid volunteers, or 
 15.17  providers who are not care providers; 
 15.18     (7) coverage for at least 50 percent, or the equivalent of 
 15.19  50 percent, of usual and customary prescription drug expenses to 
 15.20  a maximum of $1,200 paid by the issuer annually under this 
 15.21  benefit.  An issuer of Medicare supplement insurance policies 
 15.22  that elects to offer this benefit rider shall also make 
 15.23  available coverage that contains the rider specified in clause 
 15.24  (4). 
 15.25                             ARTICLE 2 
 15.26                       OTHER HEALTH COVERAGE 
 15.27     Section 1.  Minnesota Statutes 2002, section 62A.021, 
 15.28  subdivision 1, is amended to read: 
 15.29     Subdivision 1.  [LOSS RATIO STANDARDS.] (a) Notwithstanding 
 15.30  section 62A.02, subdivision 3, relating to loss ratios, health 
 15.31  care policies or certificates shall not be delivered or issued 
 15.32  for delivery to an individual or to a small employer as defined 
 15.33  in section 62L.02, unless the policies or certificates can be 
 15.34  expected, as estimated for the entire period for which rates are 
 15.35  computed to provide coverage, to return to Minnesota 
 15.36  policyholders and certificate holders in the form of aggregate 
 16.1   benefits not including anticipated refunds or credits, provided 
 16.2   under the policies or certificates, (1) at least 75 percent of 
 16.3   the aggregate amount of premiums earned in the case of policies 
 16.4   issued in the small employer market, as defined in section 
 16.5   62L.02, subdivision 27, calculated on an aggregate basis; and 
 16.6   (2) at least 65 percent of the aggregate amount of premiums 
 16.7   earned in the case of each policy form or certificate form 
 16.8   issued in the individual market; calculated on the basis of 
 16.9   incurred claims experience or incurred health care expenses 
 16.10  where coverage is provided by a health maintenance organization 
 16.11  on a service rather than reimbursement basis and earned premiums 
 16.12  for the period and according to accepted actuarial principles 
 16.13  and practices.  Assessments by the reinsurance association 
 16.14  created in chapter 62L and all types of taxes, surcharges, or 
 16.15  assessments created by Laws 1992, chapter 549, or created on or 
 16.16  after April 23, 1992, are included in the calculation of 
 16.17  incurred claims experience or incurred health care expenses.  
 16.18  The applicable percentage for policies and certificates issued 
 16.19  in the small employer market, as defined in section 62L.02, 
 16.20  increases by one percentage point on July 1 of each year, 
 16.21  beginning on July 1, 1994, until an 82 percent loss ratio is 
 16.22  reached on July 1, 2000.  The applicable percentage for policy 
 16.23  forms and certificate forms issued in the individual market 
 16.24  increases by one percentage point on July 1 of each year, 
 16.25  beginning on July 1, 1994, until a 72 percent loss ratio is 
 16.26  reached on July 1, 2000.  A health carrier that enters a market 
 16.27  after July 1, 1993, does not start at the beginning of the 
 16.28  phase-in schedule and must instead comply with the loss ratio 
 16.29  requirements applicable to other health carriers in that market 
 16.30  for each time period.  Premiums earned and claims incurred in 
 16.31  markets other than the small employer and individual markets are 
 16.32  not relevant for purposes of this section. 
 16.33     (b) All filings of rates and rating schedules shall 
 16.34  demonstrate that actual expected claims in relation to premiums 
 16.35  comply with the requirements of this section when combined with 
 16.36  actual experience to date.  Filings of rate revisions shall also 
 17.1   demonstrate that the anticipated loss ratio over the entire 
 17.2   future period for which the revised rates are computed to 
 17.3   provide coverage can be expected to meet the appropriate loss 
 17.4   ratio standards, and aggregate loss ratio from inception of the 
 17.5   policy form or certificate form shall equal or exceed the 
 17.6   appropriate loss ratio standards. 
 17.7      (c) A health carrier that issues health care policies and 
 17.8   certificates to individuals or to small employers, as defined in 
 17.9   section 62L.02, in this state shall file annually its rates, 
 17.10  rating schedule, and supporting documentation including ratios 
 17.11  of incurred losses to earned premiums by policy form or 
 17.12  certificate form duration for approval by the commissioner 
 17.13  according to the filing requirements and procedures prescribed 
 17.14  by the commissioner.  The supporting documentation shall also 
 17.15  demonstrate in accordance with actuarial standards of practice 
 17.16  using reasonable assumptions that the appropriate loss ratio 
 17.17  standards can be expected to be met over the entire period for 
 17.18  which rates are computed.  The demonstration shall exclude 
 17.19  active life reserves.  If the data submitted does not confirm 
 17.20  that the health carrier has satisfied the loss ratio 
 17.21  requirements of this section, the commissioner shall notify the 
 17.22  health carrier in writing of the deficiency.  The health carrier 
 17.23  shall have 30 days from the date of the commissioner's notice to 
 17.24  file amended rates that comply with this section.  If the health 
 17.25  carrier fails to file amended rates within the prescribed time, 
 17.26  the commissioner shall order that the health carrier's filed 
 17.27  rates for the nonconforming policy form or certificate form be 
 17.28  reduced to an amount that would have resulted in a loss ratio 
 17.29  that complied with this section had it been in effect for the 
 17.30  reporting period of the supplement.  The health carrier's 
 17.31  failure to file amended rates within the specified time or the 
 17.32  issuance of the commissioner's order amending the rates does not 
 17.33  preclude the health carrier from filing an amendment of its 
 17.34  rates at a later time.  The commissioner shall annually make the 
 17.35  submitted data available to the public at a cost not to exceed 
 17.36  the cost of copying.  The data must be compiled in a form useful 
 18.1   for consumers who wish to compare premium charges and loss 
 18.2   ratios. 
 18.3      (d) Each sale of a policy or certificate that does not 
 18.4   comply with the loss ratio requirements of this section is an 
 18.5   unfair or deceptive act or practice in the business of insurance 
 18.6   and is subject to the penalties in sections 72A.17 to 72A.32. 
 18.7      (e)(1) For purposes of this section, health care policies 
 18.8   issued as a result of solicitations of individuals through the 
 18.9   mail or mass media advertising, including both print and 
 18.10  broadcast advertising, shall be treated as individual policies. 
 18.11     (2) For purposes of this section, (i) "health care policy" 
 18.12  or "health care certificate" is a health plan as defined in 
 18.13  section 62A.011; and (ii) "health carrier" has the meaning given 
 18.14  in section 62A.011 and includes all health carriers delivering 
 18.15  or issuing for delivery health care policies or certificates in 
 18.16  this state or offering these policies or certificates to 
 18.17  residents of this state.  
 18.18     (f) The loss ratio phase-in as described in paragraph (a) 
 18.19  does not apply to individual policies and small employer 
 18.20  policies issued by a health plan company that is assessed less 
 18.21  than three percent of the total annual amount assessed by the 
 18.22  Minnesota comprehensive health association.  These policies must 
 18.23  meet a 68 percent loss ratio for individual policies, a 71 
 18.24  percent loss ratio for small employer policies with fewer than 
 18.25  ten employees, and a 75 percent loss ratio for all other small 
 18.26  employer policies.  
 18.27     (g) Notwithstanding paragraphs (a) and (f), the loss ratio 
 18.28  shall be 60 percent for a policy or certificate of accident and 
 18.29  sickness insurance as defined in section 62A.01 health plan as 
 18.30  defined in section 62A.011, offered by an insurance company 
 18.31  licensed under chapter 60A that is assessed less than ten 
 18.32  percent of the total annual amount assessed by the Minnesota 
 18.33  Comprehensive Health Association.  For purposes of the 
 18.34  percentage calculation of the association's assessments, an 
 18.35  insurance company's assessments include those of its affiliates. 
 18.36     (h) The commissioners of commerce and health shall each 
 19.1   annually issue a public report listing, by health plan company, 
 19.2   the actual loss ratios experienced in the individual and small 
 19.3   employer markets in this state by the health plan companies that 
 19.4   the commissioners respectively regulate.  The commissioners 
 19.5   shall coordinate release of these reports so as to release them 
 19.6   as a joint report or as separate reports issued the same day.  
 19.7   The report or reports shall be released no later than June 1 for 
 19.8   loss ratios experienced for the preceding calendar year.  Health 
 19.9   plan companies shall provide to the commissioners any 
 19.10  information requested by the commissioners for purposes of this 
 19.11  paragraph. 
 19.12     Sec. 2.  [EFFECTIVE DATE.] 
 19.13     Section 1 is effective the day following final enactment 
 19.14  and applies to policies or certificates issued on or after that 
 19.15  date. 
 19.16                             ARTICLE 3
 19.17                     MOTOR FUEL SPECIFICATIONS
 19.18     Section 1.  Minnesota Statutes 2002, section 41A.09, 
 19.19  subdivision 2a, is amended to read: 
 19.20     Subd. 2a.  [DEFINITIONS.] For the purposes of this section, 
 19.21  the terms defined in this subdivision have the meanings given 
 19.22  them. 
 19.23     (a) "Ethanol" means fermentation ethyl alcohol derived from 
 19.24  agricultural products, including potatoes, cereal, grains, 
 19.25  cheese whey, and sugar beets; forest products; or other 
 19.26  renewable resources, including residue and waste generated from 
 19.27  the production, processing, and marketing of agricultural 
 19.28  products, forest products, and other renewable resources, that: 
 19.29     (1) meets all of the specifications in ASTM specification D 
 19.30  4806-88 D4806-01; and 
 19.31     (2) is denatured as specified in Code of Federal 
 19.32  Regulations, title 27, parts 20 and 21. 
 19.33     (b) "Wet alcohol" means agriculturally derived fermentation 
 19.34  ethyl alcohol having a purity of at least 50 percent but less 
 19.35  than 99 percent. 
 19.36     (c) "Anhydrous alcohol" means fermentation ethyl alcohol 
 20.1   derived from agricultural products as described in paragraph 
 20.2   (a), but that does not meet ASTM specifications or is not 
 20.3   denatured and is shipped in bond for further processing. 
 20.4      (d) "Ethanol plant" means a plant at which ethanol, 
 20.5   anhydrous alcohol, or wet alcohol is produced. 
 20.6      Sec. 2.  Minnesota Statutes 2002, section 239.761, is 
 20.7   amended to read: 
 20.8      239.761 [PETROLEUM PRODUCT SPECIFICATIONS.] 
 20.9      Subdivision 1.  [APPLICABILITY.] A person responsible for 
 20.10  the product must meet the specifications in this section.  The 
 20.11  specifications apply to petroleum products processed, held, 
 20.12  stored, imported, transferred, distributed, offered for 
 20.13  distribution, offered for sale or use, or sold in Minnesota. 
 20.14     Subd. 2.  [COORDINATION WITH DEPARTMENTS OF REVENUE AND 
 20.15  AGRICULTURE.] The petroleum product specifications in this 
 20.16  section are intended to match the definitions and specifications 
 20.17  in sections 41A.09 and 296A.01.  Petroleum products named in 
 20.18  this section are defined in section 296A.01. 
 20.19     Subd. 3.  [GASOLINE.] (a) Gasoline that is not blended with 
 20.20  ethanol must not be contaminated with water or other impurities 
 20.21  and must comply with ASTM specification D 4814-96 D4814-01.  
 20.22  Gasoline that is not blended with ethanol must also comply with 
 20.23  the volatility requirements in Code of Federal Regulations, 
 20.24  title 40, part 80.  
 20.25     (b) After gasoline is sold, transferred, or otherwise 
 20.26  removed from a refinery or terminal, a person responsible for 
 20.27  the product: 
 20.28     (1) may blend the gasoline with agriculturally derived 
 20.29  ethanol as provided in subdivision 4; 
 20.30     (2) shall not blend the gasoline with any oxygenate other 
 20.31  than denatured, agriculturally derived ethanol; 
 20.32     (3) shall not blend the gasoline with other petroleum 
 20.33  products that are not gasoline or denatured, agriculturally 
 20.34  derived ethanol; 
 20.35     (4) shall not blend the gasoline with products commonly and 
 20.36  commercially known as casinghead gasoline, absorption gasoline, 
 21.1   condensation gasoline, drip gasoline, or natural gasoline; and 
 21.2      (5) may blend the gasoline with a detergent additive, an 
 21.3   antiknock additive, or an additive designed to replace 
 21.4   tetra-ethyl lead, that is registered by the EPA. 
 21.5      Subd. 4.  [GASOLINE BLENDED WITH ETHANOL.] (a) Gasoline may 
 21.6   be blended with up to ten percent, by volume, agriculturally 
 21.7   derived, denatured ethanol that complies with the requirements 
 21.8   of subdivision 5.  
 21.9      (b) A gasoline-ethanol blend must: 
 21.10     (1) comply with the volatility requirements in Code of 
 21.11  Federal Regulations, title 40, part 80; 
 21.12     (2) comply with ASTM specification D 4814-96 D4814-01, or 
 21.13  the gasoline base stock from which a gasoline-ethanol blend was 
 21.14  produced must comply with ASTM specification D 4814-96 D4814-01; 
 21.15  and 
 21.16     (3) not be blended with casinghead gasoline, absorption 
 21.17  gasoline, condensation gasoline, drip gasoline, or natural 
 21.18  gasoline after the gasoline-ethanol blend has been sold, 
 21.19  transferred, or otherwise removed from a refinery or terminal. 
 21.20     Subd. 5.  [DENATURED ETHANOL.] Denatured ethanol that is to 
 21.21  be blended with gasoline must be agriculturally derived and must 
 21.22  comply with ASTM specification D 4806-95b D4806-01.  This 
 21.23  includes the requirement that ethanol may be denatured only as 
 21.24  specified in Code of Federal Regulations, title 27, parts 20 and 
 21.25  21. 
 21.26     Subd. 6.  [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] (a) 
 21.27  A person responsible for the product shall comply with the 
 21.28  following requirements: 
 21.29     (1) after July 1, 2000, gasoline containing in excess of 
 21.30  one-third of one percent, in total, of the nonethanol oxygenates 
 21.31  listed in paragraph (b) may must not be sold or offered for sale 
 21.32  at any time in this state; and 
 21.33     (2) after July 1, 2005, gasoline containing any of the 
 21.34  nonethanol oxygenates listed in paragraph (b) may must not be 
 21.35  sold or offered for sale in this state. 
 21.36     (b) The oxygenates prohibited under paragraph (a) are: 
 22.1      (1) methyl tertiary butyl ether, as defined in section 
 22.2   296A.01, subdivision 34; 
 22.3      (2) ethyl tertiary butyl ether, as defined in section 
 22.4   296A.01, subdivision 18; or 
 22.5      (3) tertiary amyl methyl ether. 
 22.6      (c) Gasoline that is blended with an a nonethanol oxygenate 
 22.7   , other than denatured ethanol, must comply with ASTM 
 22.8   specification D 4814-96 D4814-01.  Nonethanol oxygenates, other 
 22.9   than denatured ethanol, must not be blended into gasoline after 
 22.10  the gasoline has been sold, transferred, or otherwise removed 
 22.11  from a refinery or terminal. 
 22.12     Subd. 7.  [HEATING FUEL OIL.] Heating fuel oil must comply 
 22.13  with ASTM specification D 396-96 D396-01. 
 22.14     Subd. 8.  [DIESEL FUEL OIL.] Diesel fuel oil must comply 
 22.15  with ASTM specification D 975-96a D975-01a. 
 22.16     Subd. 9.  [KEROSENE.] Kerosene must comply with ASTM 
 22.17  specification D 3699-96a D3699-01. 
 22.18     Subd. 10.  [AVIATION GASOLINE.] Aviation gasoline must 
 22.19  comply with ASTM specification D 910-96 D910-00. 
 22.20     Subd. 11.  [AVIATION TURBINE FUEL, JET FUEL.] Aviation 
 22.21  turbine fuel and jet fuel must comply with ASTM specification D 
 22.22  1655-96c D1655-01. 
 22.23     Subd. 12.  [GAS TURBINE FUEL OIL.] Fuel oil for use in 
 22.24  nonaviation gas turbine engines must comply with ASTM 
 22.25  specification D 2880-96a D2880-00. 
 22.26     Subd. 13.  [E85.] A blend of ethanol and gasoline, 
 22.27  containing at least 60 percent ethanol and not more than 85 
 22.28  percent ethanol, produced for use as a motor fuel in alternative 
 22.29  fuel vehicles as defined in section 296A.01, subdivision 5, must 
 22.30  comply with ASTM specification D 5798-96 D5798-99. 
 22.31     Subd. 14.  [M85.] A blend of methanol and gasoline, 
 22.32  containing at least 85 percent methanol, produced for use as a 
 22.33  motor fuel in alternative fuel vehicles as defined in section 
 22.34  296A.01, subdivision 5, must comply with ASTM specification 
 22.35  D5797-96. 
 22.36     Sec. 3.  Minnesota Statutes 2002, section 239.792, is 
 23.1   amended to read: 
 23.2      239.792 [GASOLINE OCTANE.] 
 23.3      Subdivision 1.  [DISCLOSURE.] A manufacturer, hauler, 
 23.4   blender, agent, jobber, consignment agent, importer, or 
 23.5   distributor who sells, delivers, or distributes gasoline or 
 23.6   gasoline-oxygenate blends, shall provide, at the time of 
 23.7   delivery, a bill of lading or shipping manifest to the person 
 23.8   who receives the gasoline.  The bill or manifest must state the 
 23.9   minimum octane of the gasoline delivered.  The stated octane 
 23.10  number must be the average of the "motor method" octane number 
 23.11  and the "research method" octane number as determined by the 
 23.12  test methods in ASTM specification D 4814-96 D4814-01, or by a 
 23.13  test method adopted by department rule. 
 23.14     Subd. 2.  [DISPENSER LABELING.] A person responsible for 
 23.15  the product shall clearly, conspicuously, and permanently label 
 23.16  each gasoline dispenser that is used to sell gasoline or 
 23.17  gasoline-oxygenate blends at retail or to dispense gasoline or 
 23.18  gasoline-oxygenate blends into the fuel supply tanks of motor 
 23.19  vehicles, with the minimum octane of the gasoline dispensed.  
 23.20  The label must meet the following requirements: 
 23.21     (a) The octane number displayed on the label must represent 
 23.22  the average of the "motor method" octane number and the 
 23.23  "research method" octane number as determined by the test 
 23.24  methods in ASTM specification D 4814-96 D4814-01, or by a test 
 23.25  method adopted by department rule. 
 23.26     (b) The label must be at least 2-1/2 inches high and three 
 23.27  inches wide, with a yellow background, black border, and black 
 23.28  figures and letters. 
 23.29     (c) The number representing the octane of the gasoline must 
 23.30  be at least one inch high. 
 23.31     (d) The label must include the words "minimum octane" and 
 23.32  the term "(R+M)/2" or "(RON+MON)/2." 
 23.33     Sec. 4.  Minnesota Statutes 2002, section 296A.01, 
 23.34  subdivision 2, is amended to read: 
 23.35     Subd. 2.  [AGRICULTURAL ALCOHOL GASOLINE.] "Agricultural 
 23.36  alcohol gasoline" means a gasoline-ethanol blend of up to ten 
 24.1   percent agriculturally derived fermentation ethanol derived from 
 24.2   agricultural products, such as potatoes, cereal, grains, cheese 
 24.3   whey, sugar beets, forest products, or other renewable 
 24.4   resources, that: 
 24.5      (1) meets the specifications in ASTM specification D 
 24.6   4806-95b D4806-01; and 
 24.7      (2) is denatured as specified in Code of Federal 
 24.8   Regulations, title 27, parts 20 and 21. 
 24.9      Sec. 5.  Minnesota Statutes 2002, section 296A.01, 
 24.10  subdivision 7, is amended to read:  
 24.11     Subd. 7.  [AVIATION GASOLINE.] "Aviation gasoline" means 
 24.12  any gasoline that is capable of use for the purpose of producing 
 24.13  or generating power for propelling internal combustion engine 
 24.14  aircraft, that meets the specifications in ASTM specification D 
 24.15  910-96 D910-00, and that either: 
 24.16     (1) is invoiced and billed by a producer, manufacturer, 
 24.17  refiner, or blender to a distributor or dealer, by a distributor 
 24.18  to a dealer or consumer, or by a dealer to consumer, as 
 24.19  "aviation gasoline"; or 
 24.20     (2) whether or not invoiced and billed as provided in 
 24.21  clause (1), is received, sold, stored, or withdrawn from storage 
 24.22  by any person, to be used for the purpose of producing or 
 24.23  generating power for propelling internal combustion engine 
 24.24  aircraft. 
 24.25     Sec. 6.  Minnesota Statutes 2002, section 296A.01, 
 24.26  subdivision 8, is amended to read: 
 24.27     Subd. 8.  [AVIATION TURBINE FUEL AND JET FUEL.] "Aviation 
 24.28  turbine fuel" and "jet fuel" mean blends of hydrocarbons derived 
 24.29  from crude petroleum, natural gasoline, and synthetic 
 24.30  hydrocarbons, intended for use in aviation turbine engines, and 
 24.31  that meet the specifications in ASTM specification D 
 24.32  1655-96c D1655-01. 
 24.33     Sec. 7.  Minnesota Statutes 2002, section 296A.01, 
 24.34  subdivision 14, is amended to read: 
 24.35     Subd. 14.  [DIESEL FUEL OIL.] "Diesel fuel oil" means a 
 24.36  petroleum distillate or blend of petroleum distillate and 
 25.1   residual fuels, intended for use as a motor fuel in internal 
 25.2   combustion diesel engines, that meets the specifications in ASTM 
 25.3   specification D 975-96a D975-01A.  Diesel fuel includes number 1 
 25.4   and number 2 fuel oils.  K-1 kerosene is not diesel fuel unless 
 25.5   it is blended with diesel fuel for use in motor vehicles.  
 25.6      Sec. 8.  Minnesota Statutes 2002, section 296A.01, 
 25.7   subdivision 19, is amended to read: 
 25.8      Subd. 19.  [E85.] "E85" means a petroleum product that is a 
 25.9   blend of agriculturally derived denatured ethanol and gasoline 
 25.10  or natural gasoline that typically contains 85 percent ethanol 
 25.11  by volume, but at a minimum must contain 60 percent ethanol by 
 25.12  volume.  For the purposes of this chapter, the energy content of 
 25.13  E85 will be considered to be 82,000 BTUs per gallon.  E85 
 25.14  produced for use as a motor fuel in alternative fuel vehicles as 
 25.15  defined in subdivision 5 must comply with ASTM specification D 
 25.16  5798-96 D5798-99. 
 25.17     Sec. 9.  Minnesota Statutes 2002, section 296A.01, 
 25.18  subdivision 20, is amended to read:  
 25.19     Subd. 20.  [ETHANOL, DENATURED.] "Ethanol, denatured" means 
 25.20  ethanol that is to be blended with gasoline, has been 
 25.21  agriculturally derived, and complies with ASTM specification D 
 25.22  4806-95b D4806-01.  This includes the requirement that ethanol 
 25.23  may be denatured only as specified in Code of Federal 
 25.24  Regulations, title 27, parts 20 and 21. 
 25.25     Sec. 10.  Minnesota Statutes 2002, section 296A.01, 
 25.26  subdivision 22, is amended to read:  
 25.27     Subd. 22.  [GAS TURBINE FUEL OIL.] "Gas turbine fuel oil" 
 25.28  means fuel that contains mixtures of hydrocarbon oils free of 
 25.29  inorganic acid and excessive amounts of solid or fibrous foreign 
 25.30  matter, intended for use in nonaviation gas turbine engines, and 
 25.31  that meets the specifications in ASTM specification D 2880-96a 
 25.32  D2880-00. 
 25.33     Sec. 11.  Minnesota Statutes 2002, section 296A.01, 
 25.34  subdivision 23, is amended to read: 
 25.35     Subd. 23.  [GASOLINE.] (a) "Gasoline" means: 
 25.36     (1) all products commonly or commercially known or sold as 
 26.1   gasoline regardless of their classification or uses, except 
 26.2   casinghead gasoline, absorption gasoline, condensation gasoline, 
 26.3   drip gasoline, or natural gasoline that under the requirements 
 26.4   of section 239.761, subdivision 3, must not be blended with 
 26.5   gasoline that has been sold, transferred, or otherwise removed 
 26.6   from a refinery or terminal; and 
 26.7      (2) any liquid prepared, advertised, offered for sale or 
 26.8   sold for use as, or commonly and commercially used as, a fuel in 
 26.9   spark-ignition, internal combustion engines, and that when 
 26.10  tested by the weights and measures division meets the 
 26.11  specifications in ASTM specification D 4814-96 D4814-01. 
 26.12     (b) Gasoline that is not blended with ethanol must not be 
 26.13  contaminated with water or other impurities and must comply with 
 26.14  both ASTM specification D 4814-96 D4814-01 and the volatility 
 26.15  requirements in Code of Federal Regulations, title 40, part 80. 
 26.16     (c) After gasoline is sold, transferred, or otherwise 
 26.17  removed from a refinery or terminal, a person responsible for 
 26.18  the product: 
 26.19     (1) may blend the gasoline with agriculturally derived 
 26.20  ethanol, as provided in subdivision 24; 
 26.21     (2) must not blend the gasoline with any oxygenate other 
 26.22  than denatured, agriculturally derived ethanol; 
 26.23     (3) must not blend the gasoline with other petroleum 
 26.24  products that are not gasoline or denatured, agriculturally 
 26.25  derived ethanol; 
 26.26     (4) must not blend the gasoline with products commonly and 
 26.27  commercially known as casinghead gasoline, absorption gasoline, 
 26.28  condensation gasoline, drip gasoline, or natural gasoline; and 
 26.29     (5) may blend the gasoline with a detergent additive, an 
 26.30  antiknock additive, or an additive designed to replace 
 26.31  tetra-ethyl lead, that is registered by the EPA. 
 26.32     Sec. 12.  Minnesota Statutes 2002, section 296A.01, 
 26.33  subdivision 24, is amended to read:  
 26.34     Subd. 24.  [GASOLINE BLENDED WITH NONETHANOL OXYGENATE.] 
 26.35  "Gasoline blended with nonethanol oxygenate" means gasoline 
 26.36  blended with ETBE, MTBE, or other alcohol or ether, except 
 27.1   denatured ethanol, that is approved as an oxygenate by the EPA, 
 27.2   and that complies with ASTM specification D 4814-96 D4814-01.  
 27.3   Oxygenates, other than denatured ethanol, must not be blended 
 27.4   into gasoline after the gasoline has been sold, transferred, or 
 27.5   otherwise removed from a refinery or terminal. 
 27.6      Sec. 13.  Minnesota Statutes 2002, section 296A.01, 
 27.7   subdivision 25, is amended to read:  
 27.8      Subd. 25.  [GASOLINE BLENDED WITH ETHANOL.] "Gasoline 
 27.9   blended with ethanol" means gasoline blended with up to ten 
 27.10  percent, by volume, agriculturally derived, denatured ethanol.  
 27.11  The blend must comply with the volatility requirements in Code 
 27.12  of Federal Regulations, title 40, part 80.  The blend must also 
 27.13  comply with ASTM specification D 4814-96 D4814-01, or the 
 27.14  gasoline base stock from which a gasoline-ethanol blend was 
 27.15  produced must comply with ASTM specification D 4814-96 D4814-01; 
 27.16  and the gasoline-ethanol blend must not be blended with 
 27.17  casinghead gasoline, absorption gasoline, condensation gasoline, 
 27.18  drip gasoline, or natural gasoline after the gasoline-ethanol 
 27.19  blend has been sold, transferred, or otherwise removed from a 
 27.20  refinery or terminal.  The blend need not comply with ASTM 
 27.21  specification D 4814-96 D4814-01 if it is subjected to a 
 27.22  standard distillation test.  For a distillation test, a 
 27.23  gasoline-ethanol blend is not required to comply with the 
 27.24  temperature specification at the 50 percent liquid recovery 
 27.25  point, if the gasoline from which the gasoline-ethanol blend was 
 27.26  produced complies with all of the distillation specifications. 
 27.27     Sec. 14.  Minnesota Statutes 2002, section 296A.01, 
 27.28  subdivision 26, is amended to read: 
 27.29     Subd. 26.  [HEATING FUEL OIL.] "Heating fuel oil" means a 
 27.30  petroleum distillate, blend of petroleum distillates and 
 27.31  residuals, or petroleum residual heating fuel that meets the 
 27.32  specifications in ASTM specification D 396-96 D396-01. 
 27.33     Sec. 15.  Minnesota Statutes 2002, section 296A.01, 
 27.34  subdivision 28, is amended to read: 
 27.35     Subd. 28.  [KEROSENE.] "Kerosene" means a refined petroleum 
 27.36  distillate consisting of a homogeneous mixture of hydrocarbons 
 28.1   essentially free of water, inorganic acidic and basic compounds, 
 28.2   and excessive amounts of particulate contaminants and that meets 
 28.3   the specifications in ASTM specification D 3699-96a D3699-01. 
 28.4      Sec. 16.  Minnesota Statutes 2002, section 296A.01, is 
 28.5   amended by adding a subdivision to read:  
 28.6      Subd. 38a.  [NONETHANOL OXYGENATE.] "Nonethanol oxygenate" 
 28.7   means ETBE or MTBE, as defined in this section, or other alcohol 
 28.8   or ether, except denatured ethanol, that is approved as an 
 28.9   oxygenate by the EPA.