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Key: (1) language to be deleted (2) new language

                            CHAPTER 241-S.F.No. 999 
                  An act relating to state finance; adding certain human 
                  services obligations to the requirement that state 
                  agencies promptly pay their bills; amending Minnesota 
                  Statutes 1994, section 16A.124, subdivision 8, and by 
                  adding a subdivision. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 1994, section 16A.124, is 
        amended by adding a subdivision to read: 
           Subd. 4b.  [HEALTH CARE PAYMENTS.] The commissioner of 
        human services must pay or deny a valid vendor obligation for 
        health services under the medical assistance, general assistance 
        medical care, or MinnesotaCare program within 30 days after 
        receipt.  A "valid vendor obligation" means a clean claim 
        submitted directly to the commissioner by an eligible health 
        care provider for health services provided to an eligible 
        recipient.  A "clean claim" means an original paper or 
        electronic claim with correct data elements, prepared in 
        accordance with the commissioner's published specifications for 
        claim preparation, that does not require an attachment or text 
        information to pay or deny the claim.  Adjustment claims, claims 
        with attachments and text information, and claims submitted to 
        the commissioner as the secondary or tertiary payer, that have 
        been prepared in accordance with the commissioner's published 
        specifications, must be adjudicated within 90 days after receipt.
           Sec. 2.  Minnesota Statutes 1994, section 16A.124, 
        subdivision 8, is amended to read: 
           Subd. 8.  [APPLICABILITY.] Subdivisions 1 to 7 apply to all 
        agency purchases, leases, rentals, and contracts for services, 
        including construction and remodeling contracts, except for: 
           (1) purchases from or contracts for service with a public 
        utility as defined in section 216B.02 or a telephone company as 
        defined in section 237.01 that has on file with the public 
        utilities commission an approved practice regarding late fees; 
        and 
           (2) provider billings to and contracts with the 
        commissioner of human services for health care services, which 
        are subject only to subdivisions 4a and 4b.  
           Sec. 3.  [EFFECTIVE DATE.] 
           This act is effective July 1, 1996, and applies to all 
        vendor obligations existing or arising on or after that date. 
           Presented to the governor May 23, 1995 
           Signed by the governor May 25, 1995, 8:47 a.m.