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

                            CHAPTER 231-H.F.No. 2085 
                  An act relating to health; specifying status of 
                  certain grants and loans to rural hospitals; providing 
                  for review of hospital moratorium exceptions; 
                  appropriating money; amending Minnesota Statutes 2002, 
                  section 144.148, by adding a subdivision; proposing 
                  coding for new law in Minnesota Statutes, chapter 144. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2002, section 144.148, is 
        amended by adding a subdivision to read: 
           Subd. 9.  [STATUS OF PREVIOUS AWARDS.] The commissioner 
        must regard grants or loans awarded to eligible rural hospitals 
        before August 1, 1999, as grants subject to the conditions of 
        this section and not subject to repayment as loans under 
        Minnesota Statutes 1998, section 144.148. 
           Sec. 2.  [144.552] [PUBLIC INTEREST REVIEW.] 
           (a) A hospital seeking to increase its number of licensed 
        beds or an organization seeking to obtain a hospital license 
        must submit a plan to the commissioner of health.  The plan must 
        include information that includes an explanation of how the 
        expansion will meet the public's interest.  When submitting a 
        plan to the commissioner, an applicant shall pay the 
        commissioner for the commissioner's cost of reviewing the plan, 
        as determined by the commissioner and notwithstanding section 
        16A.1283.  Money received by the commissioner under this section 
        is appropriated to the commissioner for the purpose of 
        administering this section. 
           (b) Plans submitted under this section shall include 
        detailed information necessary for the commissioner to review 
        the plan and reach a finding.  The commissioner may request 
        additional information from the hospital submitting a plan under 
        this section and from others affected by the plan that the 
        commissioner deems necessary to review the plan and make a 
        finding. 
           (c) The commissioner shall review the plan and, within 90 
        days, but no more than six months if extenuating circumstances 
        apply, issue a finding on whether the plan is in the public 
        interest.  In making the recommendation, the commissioner shall 
        consider issues including but not limited to: 
           (1) whether the new hospital or hospital beds are needed to 
        provide timely access to care or access to new or improved 
        services; 
           (2) the financial impact of the new hospital or hospital 
        beds on existing acute-care hospitals that have emergency 
        departments in the region; 
           (3) how the new hospital or hospital beds will affect the 
        ability of existing hospitals in the region to maintain existing 
        staff; 
           (4) the extent to which the new hospital or hospital beds 
        will provide services to nonpaying or low-income patients 
        relative to the level of services provided to these groups by 
        existing hospitals in the region; and 
           (5) the views of affected parties. 
           (d) Upon making a recommendation under paragraph (c), the 
        commissioner shall provide a copy of the recommendation to the 
        chairs of the house and senate committees having jurisdiction 
        over health and human services policy and finance. 
           Presented to the governor May 15, 2004 
           Signed by the governor May 19, 2004, 1:20 p.m.