1.1 	A bill for an act
1.2 	relating to health; establishing requirements for use of net earnings of nonprofit 
1.3 	health maintenance organizations;amending Minnesota Statutes 2018, section 
1.4 	62D.12, by adding a subdivision.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2018, section 62D.12, is amended by adding a subdivision 
1.7 	to read:
1.8 		Subd. 8a.Net earnings. All net earnings of a nonprofit health maintenance organization 
1.9 	must be devoted to the nonprofit purposes of the health maintenance organization in providing 
1.10 	comprehensive health care. A nonprofit health maintenance organization must not provide 
1.11 	for the payment, whether directly or indirectly, of any part of its net earnings to any person 
1.12 	for a purpose other than providing comprehensive health care, except that the health 
1.13 	maintenance organization may make payments to providers or other persons based on the 
1.14 	efficient provision of services or as incentives to provide quality care. The commissioner 
1.15 	of health shall, pursuant to this chapter, revoke the certificate of authority of any nonprofit 
1.16 	health maintenance organization in violation of this subdivision.

1.17 	EFFECTIVE DATE. This section is effective the day following final enactment.