Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1351

 

STATE OF MINNESOTA

 

 

EIGHTY-EIGHTH SESSION - 2013

 

_____________________

 

TWENTY-EIGHTH DAY

 

Saint Paul, Minnesota, Wednesday, March 20, 2013

 

 

The House of Representatives convened at 12:00 noon and was called to order by Paul Thissen, Speaker of the House.

 

Prayer was offered by the Reverend Cindy Yanchury, Advent United Methodist Church, Eagan, Minnesota.

 

The members of the House gave the pledge of allegiance to the flag of the United States of America.

 

The roll was called and the following members were present:

 


Abeler

Albright

Allen

Anderson, M.

Anderson, P.

Anderson, S.

Atkins

Barrett

Beard

Benson, J.

Benson, M.

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Daudt

Davids

Davnie

Dean, M.

Dehn, R.

Dettmer

Dorholt

Drazkowski

Erhardt

Erickson, R.

Erickson, S.

Fabian

Falk

Faust

Fischer

FitzSimmons

Franson

Freiberg

Fritz

Garofalo

Green

Gruenhagen

Gunther

Halverson

Hamilton

Hansen

Hausman

Hertaus

Hilstrom

Holberg

Hoppe

Hortman

Howe

Huntley

Isaacson

Johnson, B.

Johnson, C.

Johnson, S.

Kahn

Kelly

Kieffer

Kiel

Kresha

Laine

Leidiger

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Lohmer

Loon

Mahoney

Mariani

Marquart

Masin

McDonald

McNamar

McNamara

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Myhra

Nelson

Newberger

Newton

Nornes

Norton

O'Driscoll

O'Neill

Paymar

Pelowski

Peppin

Persell

Petersburg

Poppe

Pugh

Quam

Radinovich

Rosenthal

Runbeck

Sanders

Savick

Sawatzky

Schoen

Schomacker

Scott

Selcer

Simon

Simonson

Sundin

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wagenius

Ward, J.A.

Ward, J.E.

Wills

Winkler

Woodard

Yarusso

Zerwas

Spk.Thissen


 

A quorum was present.

 

Dill, Hackbarth, Mack, Slocum and Zellers were excused.

 

Anzelc and Hornstein were excused until 1:35 p.m.

 

The Chief Clerk proceeded to read the Journal of the preceding day. There being no objection, further reading of the Journal was dispensed with and the Journal was approved as corrected by the Chief Clerk.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1352

REPORTS OF CHIEF CLERK

 

S. F. No. 359 and H. F. No. 414, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

 

SUSPENSION OF RULES

 

Hornstein moved that the rules be so far suspended that S. F. No. 359 be substituted for H. F. No. 414 and that the House File be indefinitely postponed. The motion prevailed.

 

 

REPORTS OF STANDING COMMITTEES AND DIVISIONS

 

 

Murphy, M., from the Committee on State Government Finance and Veterans Affairs to which was referred:

 

H. F. No. 11, A bill for an act relating to capital improvements; appropriating money to establish the Northern Minnesota Veterans Home; authorizing the sale and issuance of state bonds.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Capital Investment.

 

The report was adopted.

 

 

Lesch from the Committee on Civil Law to which was referred:

 

H. F. No. 19, A bill for an act relating to probate; multiparty accounts; allowing agency designations in certain situations; amending Minnesota Statutes 2012, sections 524.6-201, by adding a subdivision; 524.6-203; 524.6-204; 524.6-211; 524.6-213, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 524.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2012, section 524.6-201, is amended by adding a subdivision to read:

 

Subd. 2a. Agent. "Agent" means a person authorized to make account transactions for a party.

 

Sec. 2. Minnesota Statutes 2012, section 524.6-201, subdivision 7, is amended to read:

 

Subd. 7. Party. "Party" means a person who, by the terms of the account, has a present right, subject to request, to payment from a multiple-party account other than as an agent. A P.O.D. payee is a party only after the account becomes payable by reason of the payee surviving the original party. Unless the context otherwise requires, it includes a guardian, conservator, personal representative, or assignee, including an attaching creditor, of a party. It also includes a person identified as a trustee of an account for another whether or not a beneficiary is named, but it does not include any named beneficiary unless the beneficiary has a present right of withdrawal.

 

Sec. 3. Minnesota Statutes 2012, section 524.6-203, is amended to read:

 

524.6-203 OWNERSHIP DURING LIFETIME.

 

(a) A joint account belongs, during the lifetime of all parties, to the parties in proportion to the net contributions by each to the sums on deposit, unless there is clear and convincing evidence of a different intent.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1353

(b) A P.O.D. account belongs to the original purchasing or depositing party during the party's lifetime and not to the P.O.D. payee or payees; if two or more parties are named as original parties, during their lifetimes, rights as between them are governed by clause paragraph (a).

 

(c) An agent in an account with an agency designation has no beneficial right to sums on deposit by virtue of being named as an agent.

 

Sec. 4. [524.6-215] DESIGNATION OF AGENT.

 

(a) By a writing signed by all parties, or by less than all of the parties if the contract of deposit expressly so provides, the parties may designate, as an agent of all parties on an account, a person other than a party.

 

(b) Unless the terms of an agency designation provide that the authority of the agent terminates on disability or incapacity of a party, the agent's authority survives disability and incapacity. The agent may act for a party until the authority of the agent is terminated by the party, by an attorney-in-fact appointed by the party, or by a conservator appointed to protect the interests of the party.

 

(c) Death of the sole party or last surviving party terminates the authority of an agent.

 

(d) Except as otherwise provided for in section 524.6-211, a financial institution is not liable for account transactions performed at the direction of, or authorized by, an agent under an agency designation for an account if:

 

(1) the financial institution has no actual notice of the determination of the agent's authority prior to the transaction;

 

(2) the financial institution has no actual knowledge of the death of the sole party or last surviving party; or

 

(3) the agent's authority does not survive the disability or incapacity of all the parties, and the financial institution has not received actual notice of such disability or incapacity.

 

Sec. 5. [524.6-216] TYPES OF ACCOUNT; EXISTING ACCOUNTS.

 

(a) An account may be for a single party or multiple parties. A multiple-party account may be with or without a right of survivorship between the parties. Subject to section 524.6-204, either a single-party account or a multiple-party account may have a P.O.D. designation, an agency designation, or both.

 

(b) An account established before, on or after August 1, 2013, whether in the form prescribed in section 524.6‑213 or in any other form acceptable to the financial institution, is either a single-party account or a multiple‑party account, with or without right of survivorship, and with or without a P.O.D. designation or an agency designation within the meaning of this chapter, and is governed by this chapter.

 

(c) An agency designation created on or after August 1, 2013, is governed by this chapter.

 

Sec. 6. Minnesota Statutes 2012, section 524.6-204, is amended to read:

 

524.6-204 RIGHT OF SURVIVORSHIP.

 

(a) Sums remaining on deposit at the death of a party to a joint account belong to the surviving party or parties as against the estate of the decedent unless: (1) there is clear and convincing evidence of a different intention,; or (2) there is a different disposition made by a valid will as herein provided, specifically referring to such account, as herein provided. If there are two or more surviving parties, their respective ownerships during lifetime shall be in


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1354

proportion to their previous ownership interests under section 524.6-203 augmented by an equal share for each survivor of any interest the decedent may have owned in the account immediately before death; and the right of survivorship continues between the surviving parties. The interest so determined is also the interest disposable by will.

 

(b) If the account is a P.O.D. account, on the death of the original party or of the survivor of two or more original parties, any sums remaining on deposit belong to the P.O.D. payees if surviving, or to the survivor of them if one or more die before the surviving original party; if two or more P.O.D. payees survive, there is no right of survivorship in event of death of a P.O.D. payee thereafter unless the terms of the account or deposit agreement expressly provide for survivorship between them.

 

(c) In other cases, the death of any party to a multiple-party account has no effect on beneficial ownership of the account other than to transfer the rights of the decedent as part of the estate.

 

(d) A right of survivorship arising from the express terms of the account, or under this section, or under a P.O.D. payee designation, may be changed by specific reference by will, but the terms of such will shall not be binding upon any financial institution unless it has been given a notice in writing of a claim thereunder, in which event the deposit shall remain undisbursed until an order has been made by the probate court adjudicating the decedent's interest disposable by will.

 

Sec. 7. Minnesota Statutes 2012, section 524.6-211, is amended to read:

 

524.6-211 FINANCIAL INSTITUTION PROTECTION; DISCHARGE.

 

Payment made pursuant to sections 524.6-208 to 524.6-210 discharges the financial institution from all claims for amounts so paid whether or not the payment is consistent with the beneficial ownership of the account as between parties, P.O.D. payees, or beneficiaries by will or otherwise, or their successors. The protection here given does not extend to payments made after a financial institution has received written notice from any person entitled to request payment to the effect that withdrawals in accordance with the terms of the account, including one having an agency designation, should not be permitted, and the financial institution has had a reasonable opportunity to act on it when the payment is made. Unless the notice is withdrawn by the person giving it, the successor of any deceased party and all other parties entitled to payment must concur in any demand for withdrawal if the financial institution is to be protected under this section. No other notice or any other information shown to have been available to a financial institution shall affect its right to the protection provided here. A financial institution that receives written notice pursuant to this section, or that otherwise has reason to believe that a dispute exists as to the rights of the parties may refuse, without liability, to make payment in accordance with the terms of the account. The protection here provided shall not affect the rights of parties in disputes between themselves or their successors concerning the beneficial ownership of funds in, or withdrawn from, multiple-party accounts.

 

Sec. 8. Minnesota Statutes 2012, section 524.6-213, is amended by adding a subdivision to read:

 

Subd. 3. Contract of deposit; sample form. A contract of deposit that contains provisions in substantially the following form establishes the type of account provided, and the account is governed by the provisions of this part applicable to an account of that type:

 

UNIFORM SINGLE- OR MULTIPLE-PARTY ACCOUNT FORM

 

PARTIES [Name One Or More Parties]:

 

....

 

 

OWNERSHIP [Select One And Initial]:

 

 

..

SINGLE-PARTY ACCOUNT

 

 

..

MULTIPLE-PARTY ACCOUNT

 


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1355

 

Parties own account in proportion to net contributions unless there is clear and convincing evidence of a different intent.

 

 

 

 

RIGHTS AT DEATH [Select One And Initial]:

 

 

 

 

..

SINGLE-PARTY ACCOUNT

 

 

 

 

At death of party, ownership passes as part of party's estate.

 

 

 

..

SINGLE-PARTY ACCOUNT WITH P.O.D. (PAYABLE ON DEATH) DESIGNATION

 

 

 

 

[Name One Or More Beneficiaries]:

.

 

 

 

 

 

 

At death of party, ownership passes to P.O.D. beneficiaries and is not part of party's estate.

 

 

 

..

MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP

 

 

 

At death of party, ownership passes to surviving parties.

 

..

MULTIPLE-PARTY ACCOUNT WITH RIGHT OF SURVIVORSHIP AND P.O.D. (PAYABLE ON DEATH) DESIGNATION

 

 

 

 

[Name One Or More Beneficiaries]:

.

 

 

 

 

 

 

At death of last surviving party, ownership passes to P.O.D. beneficiaries and is not part of last surviving party's estate.

 

 

 

..

MULTIPLE-PARTY ACCOUNT WITHOUT RIGHT OF SURVIVORSHIP

 

 

 

At death of party, deceased party's ownership passes as part of deceased party's estate.

 

 

 

..

AGENCY DESIGNATION [Optional]

 

 

 

Agents may make account transactions for parties but have no ownership or rights at death unless named as P.O.D. beneficiaries. [To Add Agency Designation To Account, Name One Or More Agents]:

..

 

 

[Select One And Initial]:

 

 

 

AGENCY DESIGNATION SURVIVES DISABILITY OR INCAPACITY OF ANY OR ALL OF THE PARTIES

 

 

AGENCY DESIGNATION TERMINATES ON DISABILITY OR INCAPACITY OF THE SOLE PARTY OR THE LAST SURVIVING PARTY


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1356

Sec. 9. Minnesota Statutes 2012, section 524.6-213, is amended by adding a subdivision to read:

 

Subd. 4. Contract of deposit; generally. A contract of deposit that does not contain provisions in substantially the form provided in subdivision 3 is governed by the provisions of this part applicable to the type of account that most nearly conforms to the depositor's intent."

 

Delete the title and insert:

 

"A bill for an act relating to accounts; allowing agency designations in certain situations; providing form language; making clarifying changes; amending Minnesota Statutes 2012, sections 524.6-201, subdivision 7, by adding a subdivision; 524.6-203; 524.6-204; 524.6-211; 524.6-213, by adding subdivisions; proposing coding for new law in Minnesota Statutes, chapter 524."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Murphy, M., from the Committee on State Government Finance and Veterans Affairs to which was referred:

 

H. F. No. 109, A bill for an act relating to capital investment; appropriating money for a new veterans nursing home in Brainerd; authorizing the sale and issuance of state bonds.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. [198.365] VETERANS HOME; BRAINERD.

 

The commissioner may establish a veterans home in Brainerd to provide at least 70 beds for skilled nursing care in conformance with licensing rules of the Department of Health.

 

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

 

Delete the title and insert:

 

"A bill for an act relating to veterans; authorizing a veterans home in Brainerd; proposing coding for new law in Minnesota Statutes, chapter 198."

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

 

The report was adopted.

 

 

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 128, A bill for an act relating to solid waste; amending process for cities to implement organized collection of solid waste; amending Minnesota Statutes 2012, section 115A.94, subdivisions 2, 5, by adding subdivisions; repealing Minnesota Statutes 2012, section 115A.94, subdivision 4.

 

Reported the same back with the following amendments:


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1357

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2012, section 115A.94, subdivision 2, is amended to read:

 

Subd. 2. Local authority. A city or town may organize collection, after public notification and hearing as required in subdivision 4 subdivisions 4a to 4d. A county may organize collection as provided in subdivision 5. A city or town that has organized collection as of May 1, 2013, is exempt from subdivisions 4a to 4d.

 

Sec. 2. Minnesota Statutes 2012, section 115A.94, is amended by adding a subdivision to read:

 

Subd. 4a. Committee establishment. (a) Before implementing an ordinance, franchise, license, contract, or other means of organizing collection, a city or town, by resolution of the governing body, must establish an organized collection options committee to identify, examine, and evaluate various methods of organized collection. The governing body shall appoint the committee members.

 

(b) The organized collection options committee is subject to chapter 13D.

 

Sec. 3. Minnesota Statutes 2012, section 115A.94, is amended by adding a subdivision to read:

 

Subd. 4b. Committee duties. The committee established under subdivision 4a shall:

 

(1) determine which methods of organized collection to examine, which must include:

 

(i) a system in which a single collector collects solid waste from all sections of a city or town; and

 

(ii) a system in which multiple collectors, either singly or as members of an organization of collectors, collect solid waste from different sections of a city or town;

 

(2) establish a list of criteria on which the organized collection methods selected for examination will be evaluated, which may include: costs to residential subscribers, miles driven by collection vehicles on city streets and alleys, initial and operating costs to the city of implementing the organized collection system, providing incentives for waste reduction, impacts on solid waste collectors, and other physical, economic, fiscal, social, environmental, and aesthetic impacts;

 

(3) collect information regarding the operation and efficacy of existing methods of organized collection in other cities and towns;

 

(4) seek input from, at a minimum:

 

(i) the governing body of the city or town;

 

(ii) the local official of the city or town responsible for solid waste issues;

 

(iii) persons currently licensed to operate solid waste collection and recycling services in the city or town; and

 

(iv) residents of the city or town who currently pay for residential solid waste collection services; and

 

(5) issue a report on the committee's research, findings, and any recommendations to the governing body of the city or town.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1358

Sec. 4. Minnesota Statutes 2012, section 115A.94, is amended by adding a subdivision to read:

 

Subd. 4c. Governing body; implementation. The governing body of the city or town shall consider the report and recommendations of the organized collection options committee. The governing body must provide public notice and hold at least one public hearing before deciding whether to implement organized collection. Organized collection may begin no sooner than six months after the effective date of the decision of the governing body of the city or town to implement organized collection.

 

Sec. 5. Minnesota Statutes 2012, section 115A.94, is amended by adding a subdivision to read:

 

Subd. 4d. Participating collectors proposal requirement. Prior to establishing a committee under subdivision 4a to consider organizing residential solid waste collection, a city or town with more than one licensed collector must notify the public and all licensed collectors in the community. The city or town must provide a 60-day period in which meetings and negotiations shall occur exclusively between licensed collectors and the city or town to develop a proposal in which interested licensed collectors, as members of an organization of collectors, collect solid waste from designated sections of the city or town. The proposal shall include identified city or town priorities, including issues related to zone creation, traffic, safety, environmental performance, service provided, and price, and shall reflect existing haulers maintaining their respective market share of business as determined by each hauler's average customer count during the six months prior to the commencement of the 60-day negotiation period. If an existing hauler opts to be excluded from the proposal, the city may allocate its customers proportionally based on market share to the participating collectors who choose to negotiate. The initial organized collection agreement executed under this subdivision must be for a period of three to seven years. Upon execution of an agreement between the participating licensed collectors and city or town, the city or town shall establish organized collection through appropriate local controls and is not required to fulfill the requirements of subdivisions 4a, 4b, and 4c, except that the governing body must provide the public notification and hearing required under subdivision 4c.

 

Sec. 6. Minnesota Statutes 2012, section 115A.94, subdivision 5, is amended to read:

 

Subd. 5. County organized collection. (a) A county may by ordinance require cities and towns within the county to organize collection. Organized collection ordinances of counties may:

 

(1) require cities and towns to require the separation and separate collection of recyclable materials;

 

(2) specify the material to be separated; and

 

(3) require cities and towns to meet any performance standards for source separation that are contained in the county solid waste plan.

 

(b) A county may itself organize collection under subdivision 4 subdivisions 4a to 4d in any city or town that does not comply with a county organized collection ordinance adopted under this subdivision, and the county may implement, as part of its organized collection, the source separation program and performance standards required by its organized collection ordinance.

 

Sec. 7. REPEALER.

 

Minnesota Statutes 2012, section 115A.94, subdivision 4, is repealed.

 

Sec. 8. EFFECTIVE DATE.

 

This act is effective the day following final enactment."

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Environment and Natural Resources Policy.

 

The report was adopted.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1359

Paymar from the Committee on Public Safety Finance and Policy to which was referred:

 

H. F. No. 142, A bill for an act relating to public safety; enhancing penalties for certain repeat criminal sexual conduct offenders; amending Minnesota Statutes 2012, section 609.3451, subdivision 3.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Judiciary Finance and Policy.

 

The report was adopted.

 

Pursuant to Joint Rule 2.03 and in accordance with Senate Concurrent Resolution No. 4, H. F. No. 142 was re-referred to the Committee on Rules and Legislative Administration.

 

 

Carlson from the Committee on Ways and Means to which was referred:

 

H. F. No. 152, A bill for an act relating to transportation; establishing a transportation ombudsperson; amending Minnesota Statutes 2012, section 174.02, by adding a subdivision.

 

Reported the same back with the recommendation that the bill pass.

 

The report was adopted.

 

 

Murphy, M., from the Committee on State Government Finance and Veterans Affairs to which was referred:

 

H. F. No. 221, A bill for an act relating to capital improvements; authorizing the sale and issuance of state bonds; appropriating money for a veterans home in Montevideo.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Capital Investment.

 

The report was adopted.

 

 

Liebling from the Committee on Health and Human Services Policy to which was referred:

 

H. F. No. 256, A bill for an act relating to human services; repealing the MFIP family cap; repealing Minnesota Statutes 2012, section 256J.24, subdivision 6.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Health and Human Services Finance.

 

The report was adopted.

 

 

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 262, A bill for an act relating to health; creating a grant program for spinal cord injury and traumatic brain injury research; establishing the spinal cord and traumatic brain injury advisory committee; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 144.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Health and Human Services Finance.

 

The report was adopted.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1360

Lesch from the Committee on Civil Law to which was referred:

 

H. F. No. 300, A bill for an act relating to tenant's rights; creating a notice to quit or pay prior to filing an eviction action; amending Minnesota Statutes 2012, sections 504B.285, subdivision 1; 504B.291, by adding a subdivision; 504B.321, by adding a subdivision.

 

Reported the same back with the recommendation that the bill pass.

 

The report was adopted.

 

 

Erhardt from the Committee on Transportation Policy to which was referred:

 

H. F. No. 348, A bill for an act relating to transportation; modifying application procedures and requirements for driver's license; amending Minnesota Statutes 2012, section 171.06, subdivision 3; repealing Minnesota Rules, part 7410.0410.

 

Reported the same back with the following amendments:

 

Page 3, line 5, delete "an official"

 

Page 3, delete lines 6 to 10 and insert "a valid, unexpired passport issued by a country other than the United States with a certified birth certificate from a country other than the United States, the District of Columbia, Guam, Puerto Rico, or the United States Virgin Islands. A passport and birth certificate under this paragraph must have"

 

Page 3, line 11, delete "(4)" and delete "card" and insert "document"

 

Page 3, line 13, after the period, insert "Any document not in English must be accompanied by a qualified English translation."

 

Page 3, after line 13, insert:

 

"(f) A driver's license, permit, or identification card issued based on providing a government identification card must include the term "status check" without a date."

 

Page 3, line 14, after "2014" insert ", and applies to a new driver's license, permit, or identification card or a renewal issued on or after that date"

 

Page 3, delete section 2

 

Correct the title numbers accordingly

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Transportation Finance.

 

The report was adopted.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1361

Mariani from the Committee on Education Policy to which was referred:

 

H. F. No. 356, A bill for an act relating to education; allowing school districts to use safe schools levy proceeds for collaborating with mental health professionals; appropriating money; amending Minnesota Statutes 2012, section 126C.44.

 

Reported the same back with the following amendments:

 

Page 1, line 10, strike "$30" and insert "$45"

 

Page 2, line 11, strike "$10" and insert "$15"

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Education Finance.

 

The report was adopted.

 

 

Mariani from the Committee on Education Policy to which was referred:

 

H. F. No. 361, A bill for an act relating to education; providing education in care and treatment settings; appropriating money; amending Minnesota Statutes 2012, sections 124D.68, subdivision 2; 125A.11, subdivision 2; 125A.20; 125A.51; 125A.515, subdivision 1; 125A.75, subdivision 3; 126C.05, subdivision 1; 245.4871, subdivision 10; proposing coding for new law as Minnesota Statutes, chapter 125E; repealing Minnesota Statutes 2012, sections 125A.11; 125A.15; 125A.515, subdivisions 3, 3a, 4, 5, 6, 7, 8, 9, 10; 125A.52.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Education Finance.

 

The report was adopted.

 

 

Murphy, M., from the Committee on State Government Finance and Veterans Affairs to which was referred:

 

H. F. No. 460, A bill for an act relating to capital investment; appropriating money for a new veterans nursing home in Brainerd; authorizing the sale and issuance of state bonds.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Capital Investment.

 

The report was adopted.

 

 

Lesch from the Committee on Civil Law to which was referred:

 

H. F. No. 536, A bill for an act relating to real property; establishing notice for contracts for deed involving residential property; providing remedies; amending Minnesota Statutes 2012, sections 507.235, subdivision 2; 559.211, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 559; repealing Minnesota Statutes 2012, section 507.235, subdivision 4.

 

Reported the same back with the following amendments:


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1362

Page 2, line 4, delete everything after "seller" and insert "during the 12-month period that precedes either: (1) the date on which the purchaser executes a purchase agreement under section 559.202; or (2) if there is no purchase agreement, the date on which the purchaser executes a contract for deed under section 559.202"

 

Page 2, line 5, delete "any calendar year"

 

Page 2, line 28, delete the comma

 

Page 2, line 31, after the semicolon, insert "and"

 

Page 2, delete lines 32 and 33

 

Page 2, line 34, delete "(3)" and insert "(2)"

 

Page 3, line 3, delete "if the multiple seller cannot produce a copy of the notice signed and" and insert "unless the original executed contract for deed contains the following statement: "By initialing here ....... purchaser acknowledges receipt at least five business days before signing this contract for deed of the disclosure statement entitled "Important Information About Contracts for Deed" required by Minnesota Statutes, section 559.202, subdivision 3.""

 

Page 3, line 4, delete "dated by the purchaser."

 

Page 4, line 9, delete "You can cancel it and get your money back if you didn't get this notice five business" and insert "If you haven't already signed the contract for deed, you can cancel the purchase agreement (and get all your money back) if you do so within five business days after getting this notice."

 

Page 4, delete line 10

 

Page 4, line 27, delete "The amount due to the purchaser may," and delete the comma and after "option" insert "an amount not to exceed $2,500 may"

 

Page 4, line 33, delete "treble" and insert "triple" and delete "and" and insert "or"

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Rules and Legislative Administration.

 

The report was adopted.

 

 

Lesch from the Committee on Civil Law to which was referred:

 

H. F. No. 573, A bill for an act relating to insurance; regulating the public employees insurance program; requiring participation by certain school employers; amending Minnesota Statutes 2012, section 43A.316, subdivisions 2, 4, 5, by adding subdivisions.

 

Reported the same back with the following amendments:

 

Page 5, line 27, delete "deemed by the commissioner as" and insert "reasonably"

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on State Government Finance and Veterans Affairs.

 

The report was adopted.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1363

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 592, A bill for an act relating to education finance; authorizing the Perpich Center for Arts Education to operate a voluntary integration magnet school; transferring staff and facilities; modifying funding formulas; appropriating money; amending Minnesota Statutes 2012, section 129C.10, subdivision 3, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 129C.

 

Reported the same back with the following amendments:

 

Page 5, delete subdivision 2 and insert:

 

"Subd. 2. Staff transferred; contracts to remain separate. On or before April 10, 2013, the Perpich Center for Arts Education must notify all licensed and unlicensed employees of the East Metro Integration District assigned to the Crosswinds school as of February 1, 2013, except administrative employees, of open positions for the 2013-2014 school year. Employees shall notify the Perpich Center for Arts Education within 30 days if they request appointment to a position. All requests must be granted. The commissioner of management and budget shall assign these employees to the appropriate job classes in the state civil service. Terms and conditions of employment for the transferred employees on and after August 1, 2013, shall be determined by the collective bargaining agreement or compensation plan applicable to each job class, provided that:

 

(1) a person who becomes a state employee under this section will have seniority with the state as of the date the person became an employee of the East Metro Integration District;

 

(2) if a person took a leave of absence from another school district to become an employee of the East Metro Integration District, the person will have seniority with the state as of the date the person first became an employee of the school district from which the employee took the leave of absence;

 

(3) a separate seniority list shall be maintained for the Crosswinds site of the Perpich Center for Arts Education from the seniority list for the Golden Valley site;

 

(4) the staff member shall receive the greater of:

 

(i) credit on the appointing salary schedule for the Perpich Center for Arts Education for the staff member's years of continuous service under contract with the East Metro Integration District and any member district, if applicable, and for the staff member's educational attainment at the time of appointment; or

 

(ii) the salary that the staff member received in the East Metro Integration District;

 

(5) all staff appointed to the Crosswinds site of the Perpich Center for Arts Education under this subdivision shall be deemed to have completed any applicable probationary period; and

 

(6) all staff appointed to the Crosswinds site of the Perpich Center for Arts Education under this subdivision shall receive credit for accumulations of sick leave, vacation, paid time off, rights to severance benefits, and any other benefits, as if the staff member had been employed by the Perpich Center for Arts Education during the staff member's years of employment by the East Metro Integration District."

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Capital Investment.

 

The report was adopted.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1364

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 622, A bill for an act relating to youth; establishing the Minnesota Youth Council Committee; proposing coding for new law as Minnesota Statutes, chapter 16F.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Education Finance.

 

The report was adopted.

 

 

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 646, A bill for an act relating to public safety; drivers' licenses; driver education; modifying and clarifying provisions relating to instruction permits; establishing a Novice Driver Education Improvement Task Force; authorizing rulemaking; appropriating money; amending Minnesota Statutes 2012, sections 171.05, subdivision 2, by adding a subdivision; 171.0701, by adding a subdivision.

 

Reported the same back with the following amendments:

 

Page 2, line 26, delete everything after the period

 

Page 2, delete lines 27 and 28

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Transportation Finance.

 

The report was adopted.

 

 

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 653, A bill for an act relating to open meeting law; providing that certain communications on social media are not meetings under the law; amending Minnesota Statutes 2012, section 13D.01, subdivision 2.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2012, section 13D.01, subdivision 2, is amended to read:

 

Subd. 2. Exceptions. This chapter does not apply:

 

(1) to meetings of the commissioner of corrections;

 

(2) to a state agency, board, or commission when it is exercising quasi-judicial functions involving disciplinary proceedings; or

 

(3) to participation in social media forums by members of a public body otherwise subject to this chapter, so long as:


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1365

(i) the social media forums are open to public participation;

 

(ii) the social media forums have been first identified by the public body at a public meeting and a list of the identified social media forums is kept on file at the primary offices of the public body;

 

(iii) participation is limited to discussion only and no decision or vote is made or taken;

 

(iv) the use of social media forums is not the sole means of deliberation by the public body; and

 

(v) participation does not take the place of any required public meeting or hearing. "Social media" means forms of Web-based and mobile technologies for communication, such as Web sites for social networking and microblogging, through which users participate in online communities to share information, ideas, messages, and other content; or

 

(4) as otherwise expressly provided by statute."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Hortman from the Committee on Energy Policy to which was referred:

 

H. F. No. 655, A bill for an act relating to energy; regulating the routing process for high-voltage transmission lines; prohibiting the designation of a preferred route in the permitting process; amending Minnesota Statutes 2012, section 216E.03, subdivision 3.

 

Reported the same back with the following amendments:

 

Page 1, after line 18, insert:

 

"Sec. 2. Minnesota Statutes 2012, section 216E.12, subdivision 4, is amended to read:

 

Subd. 4. Contiguous land. (a) When private real property that is an agricultural or nonagricultural homestead, nonhomestead agricultural land, rental residential property, and both commercial and noncommercial seasonal residential recreational property, as those terms are defined in section 273.13 is proposed to be acquired for the construction of a site or route for a high-voltage transmission line with a capacity of 200 kilovolts or more by eminent domain proceedings, the fee owner, or when applicable, the fee owner with the written consent of the contract for deed vendee, or the contract for deed vendee with the written consent of the fee owner, shall have the option to require the utility to condemn a fee interest in any amount of contiguous, commercially viable land which the owner or vendee wholly owns or has contracted to own in undivided fee and elects in writing to transfer to the utility within 60 days after receipt of the notice of the objects of the petition filed pursuant to section 117.055. Commercial viability shall be determined without regard to the presence of the utility route or site. Within 60 days after receipt by the utility of a fee owner's election to exercise this option, the utility shall provide written notice to the fee owner of any objection the utility has to the fee owner's election. If no objection is made within that time, any objection shall be deemed waived. Within 90 days of the service of an objection by the utility, the district court having jurisdiction over the eminent domain proceeding shall hold a hearing to determine whether the utility's objection is upheld or rejected. The owner or, when applicable, the contract vendee shall have only one such option and may not expand or otherwise modify an election without the consent of the utility. The required acquisition of land pursuant to this subdivision shall be considered an acquisition for a public purpose and for use in the utility's


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1366

business, for purposes of chapter 117 and section 500.24, respectively; provided that a utility shall divest itself completely of all such lands used for farming or capable of being used for farming not later than the time it can receive the market value paid at the time of acquisition of lands less any diminution in value by reason of the presence of the utility route or site. Upon the owner's election made under this subdivision, the easement interest over and adjacent to the lands designated by the owner to be acquired in fee, sought in the condemnation petition for a right-of-way for a high-voltage transmission line with a capacity of 200 kilovolts or more shall automatically be converted into a fee taking. The owner's election made under this subdivision does not render the fee taking voluntary.

 

(b) All rights and protections provided to an owner under chapter 117, including in particular sections 117.031, 117.036, 117.186, and 117.52, apply to acquisition of land or an interest in land under this section.

 

(c) Within 90 days of an owner's election under this subdivision to require the utility to acquire land, or 90 days after a district court decision overruling a utility objection to an election made pursuant to paragraph (a), the utility must make a written offer to acquire that land and amend its condemnation petition to include the additional land.

 

(d) For purposes of this subdivision, "owner" means the fee owner, or when applicable, the fee owner with the written consent of the contract for deed vendee, or the contract for deed vendee with the written consent of the fee owner.

 

EFFECTIVE DATE. This section is effective the day following final enactment and applies to eminent domain proceedings or actions pending or commenced on or after that date. "Commenced" means when service of notice of the petition under Minnesota Statutes, section 117.055, is made."

 

Amend the title as follows:

 

Page 1, line 3, after the second semicolon, insert "modifying condemnation procedures;"

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Government Operations.

 

The report was adopted.

 

 

Lesch from the Committee on Civil Law to which was referred:

 

H. F. No. 695, A bill for an act relating to data practices; extending the classification of private data maintained by a library to a vendor providing electronic data services under contract with a library; amending Minnesota Statutes 2012, section 13.40, subdivision 2.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. [13.356] PERSONAL CONTACT AND ONLINE ACCOUNT INFORMATION.

 

Except where disclosure is specifically authorized by law, and notwithstanding section 13.04, subdivision 2, the following data on an individual collected, maintained, or received by a government entity for notification or informational purposes of a general nature as requested by the individual are private data on individuals:

 

(1) telephone number;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1367

(2) e-mail address; and

 

(3) Internet user name, password, Internet protocol address, and any other similar data related to the individual's online account or access procedures.

 

EFFECTIVE DATE. This section is effective the day following final enactment and applies to data collected, maintained, or received before, on, or after that date.

 

Sec. 2. Minnesota Statutes 2012, section 13.37, subdivision 1, is amended to read:

 

Subdivision 1. Definitions. As used in this section, the following terms have the meanings given them.

 

(a) "Security information" means government data the disclosure of which the responsible authority determines would be likely to substantially jeopardize the security of information, possessions, individuals or property against theft, tampering, improper use, attempted escape, illegal disclosure, trespass, or physical injury. "Security information" includes crime prevention block maps and lists of volunteers who participate in community crime prevention programs and their home and mailing addresses and, telephone numbers, e-mail addresses, Internet communication services accounts information or similar accounts information, and global positioning system locations.

 

(b) "Trade secret information" means government data, including a formula, pattern, compilation, program, device, method, technique or process (1) that was supplied by the affected individual or organization, (2) that is the subject of efforts by the individual or organization that are reasonable under the circumstances to maintain its secrecy, and (3) that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use.

 

(c) "Labor relations information" means management positions on economic and noneconomic items that have not been presented during the collective bargaining process or interest arbitration, including information specifically collected or created to prepare the management position.

 

(d) "Parking space leasing data" means the following government data on an applicant for, or lessee of, a parking space: residence address, home telephone number, beginning and ending work hours, place of employment, work telephone number, and location of the parking space.

 

Sec. 3. Minnesota Statutes 2012, section 13.386, subdivision 3, is amended to read:

 

Subd. 3. Collection, storage, use, and dissemination of genetic information. (a) Unless otherwise expressly provided by law, genetic information about an individual:

 

(1) may be collected by a government entity, as defined in section 13.02, subdivision 7a, or any other person only with the written informed consent of the individual;

 

(2) may be used only for purposes to which the individual has given written informed consent;

 

(3) may be stored only for a period of time to which the individual has given written informed consent; and

 

(4) may be disseminated only:

 

(i) with the individual's written informed consent; or


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1368

(ii) if necessary in order to accomplish purposes described by clause (2). A consent to disseminate genetic information under item (i) must be signed and dated. Unless otherwise provided by law, such a consent is valid for one year or for a lesser period specified in the consent.

 

(b) Newborn screening activities conducted under sections 144.125 to 144.128 are subject to paragraph (a). Other programs and activities governed under section 144.192 are not subject to paragraph (a).

 

EFFECTIVE DATE. This section is effective July 1, 2013.

 

Sec. 4. Minnesota Statutes 2012, section 13.43, subdivision 2, is amended to read:

 

Subd. 2. Public data. (a) Except for employees described in subdivision 5 and subject to the limitations described in subdivision 5a, the following personnel data on current and former employees, volunteers, and independent contractors of a government entity is public:

 

(1) name; employee identification number, which must not be the employee's Social Security number; actual gross salary; salary range; terms and conditions of employment relationship; contract fees; actual gross pension; the value and nature of employer paid fringe benefits; and the basis for and the amount of any added remuneration, including expense reimbursement, in addition to salary;

 

(2) job title and bargaining unit; job description; education and training background; and previous work experience;

 

(3) date of first and last employment;

 

(4) the existence and status of any complaints or charges against the employee, regardless of whether the complaint or charge resulted in a disciplinary action;

 

(5) the final disposition of any disciplinary action together with the specific reasons for the action and data documenting the basis of the action, excluding data that would identify confidential sources who are employees of the public body;

 

(6) the complete terms of any agreement settling any dispute arising out of an employment relationship, including a buyout agreement as defined in section 123B.143, subdivision 2, paragraph (a); except that the agreement must include specific reasons for the agreement if it involves the payment of more than $10,000 of public money;

 

(7) work location; a work telephone number; badge number; work-related continuing education; and honors and awards received; and

 

(8) payroll time sheets or other comparable data that are only used to account for employee's work time for payroll purposes, except to the extent that release of time sheet data would reveal the employee's reasons for the use of sick or other medical leave or other not public data.

 

(b) For purposes of this subdivision, a final disposition occurs when the government entity makes its final decision about the disciplinary action, regardless of the possibility of any later proceedings or court proceedings. Final disposition includes a resignation by an individual when the resignation occurs after the final decision of the government entity, or arbitrator. In the case of arbitration proceedings arising under collective bargaining agreements, a final disposition occurs at the conclusion of the arbitration proceedings, or upon the failure of the employee to elect arbitration within the time provided by the collective bargaining agreement. A disciplinary action does not become public data if an arbitrator sustains a grievance and reverses all aspects of any disciplinary action.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1369

(c) The government entity may display a photograph of a current or former employee to a prospective witness as part of the government entity's investigation of any complaint or charge against the employee.

 

(d) A complainant has access to a statement provided by the complainant to a government entity in connection with a complaint or charge against an employee.

 

(e) Notwithstanding paragraph (a), clause (5), and subject to paragraph (f), upon completion of an investigation of a complaint or charge against a public official, or if a public official resigns or is terminated from employment while the complaint or charge is pending, all data relating to the complaint or charge are public, unless access to the data would jeopardize an active investigation or reveal confidential sources. For purposes of this paragraph, "public official" means:

 

(1) the head of a state agency and deputy and assistant state agency heads;

 

(2) members of boards or commissions required by law to be appointed by the governor or other elective officers;

 

(3) executive or administrative heads of departments, bureaus, divisions, or institutions within state government; and

 

(4) the following employees:

 

(i) the chief administrative officer, or the individual acting in an equivalent position, in all political subdivisions;

 

(ii) individuals required to be identified by a political subdivision pursuant to section 471.701;

 

(iii) in a city with a population of more than 7,500 or a county with a population of more than 5,000, individuals in a management capacity reporting directly to the chief administrative officer or the individual acting in an equivalent position: managers; chiefs; heads or directors of departments, divisions, bureaus, or boards; and any equivalent position; and

 

(iv) in a school district,: business managers,; human resource directors, and; athletic directors; chief financial officers; directors; individuals defined as superintendents, and principals, and directors under Minnesota Rules, part 3512.0100; and in a charter school, individuals employed in comparable positions.

 

(f) Data relating to a complaint or charge against an employee identified under paragraph (e), clause (4), are public only if:

 

(1) the complaint or charge results in disciplinary action or the employee resigns or is terminated from employment while the complaint or charge is pending; or

 

(2) potential legal claims arising out of the conduct that is the subject of the complaint or charge are released as part of a settlement agreement with another person.

 

This paragraph and paragraph (e) do not authorize the release of data that are made not public under other law.

 

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

 

Sec. 5. Minnesota Statutes 2012, section 13.64, subdivision 2, is amended to read:

 

Subd. 2. Department of Administration. (a) Security features of building plans, building specifications, and building drawings of state-owned facilities and non-state-owned facilities leased by the state are classified as nonpublic data when maintained by the Department of Administration and may be shared with anyone as needed to perform duties of the commissioner.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1370

(b) Data maintained by the Department of Administration that identifies an individual with a disability or a family member of an individual with a disability related to services funded by the federal Assistive Technology Act, United States Code, title 29, section 3002, for assistive technology device demonstrations, transition training, loans, reuse, or alternative financing are private data.

 

Sec. 6. Minnesota Statutes 2012, section 13.72, subdivision 10, is amended to read:

 

Subd. 10. Transportation service data. Personal, medical, financial, familial, or locational information data pertaining to applicants for or users of services providing transportation for the disabled or elderly, with the exception of the name of the applicant or user of the service, are private.

 

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

 

Sec. 7. Minnesota Statutes 2012, section 13.72, is amended by adding a subdivision to read:

 

Subd. 18. Mileage-based user fees. (a) The following data pertaining to participation in the Minnesota road use test, as required by Laws 2007, chapter 143, article 1, section 3, subdivision 3, paragraph (a), clause (1), are classified as nonpublic or private data:

 

(1) names of participants, participants' contact information, and data contained in applications for participation in the Minnesota road use test;

 

(2) applications for the purchase, lease, or rental of the GPS navigation device;

 

(3) participants' vehicle identification data;

 

(4) financial and credit data; and

 

(5) participants' road usage data.

 

(b) Nothing in this section prohibits the production of summary data, as defined in section 13.02, subdivision 19, as it pertains to types of vehicles used and road usage data, as long as the participants' identities or any other characteristic that could uniquely identify participants are not ascertainable.

 

(c) Notwithstanding section 13.03, subdivision 6, the Department of Transportation shall only produce the data made not public under this subdivision to federal, state, and local law enforcement authorities acting pursuant to a valid probable cause search warrant.

 

Sec. 8. Minnesota Statutes 2012, section 13.72, is amended by adding a subdivision to read:

 

Subd. 19. Construction manager/general contractor data. (a) When the Department of Transportation undertakes a construction manager/general contractor contract, as defined and authorized in sections 161.3207 to 161.3209, the provisions of this subdivision apply.

 

(b) When the commissioner of transportation solicits a request for qualifications:

 

(1) the following data are classified as protected nonpublic:

 

(i) the statement of qualifications scoring evaluation manual; and

 

(ii) the statement of qualifications evaluations;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1371

(2) the statement of qualifications submitted by a potential construction manager/general contractor is classified as nonpublic data; and

 

(3) identifying information concerning the members of the Technical Review Committee is classified as private data.

 

(c) When the commissioner of transportation announces the short list of qualified construction managers/general contractors, the following data become public:

 

(1) the statement of qualifications scoring evaluation manual; and

 

(2) the statement of qualifications evaluations.

 

(d) When the commissioner of transportation solicits a request for proposals:

 

(1) the proposal scoring manual is classified as protected nonpublic data; and

 

(2) the following data are classified as nonpublic data:

 

(i) the proposals submitted by a potential construction manager/general contractor; and

 

(ii) the proposal evaluations.

 

(e) When the commissioner of transportation has completed the ranking of proposals and announces the selected construction manager/general contractor, the proposal evaluation score or rank and proposal evaluations become public data.

 

(f) When the commissioner of transportation conducts contract negotiations with a construction manager/general contractor, government data created, collected, stored, and maintained during those negotiations are nonpublic data until a construction manager/general contractor contract is fully executed.

 

(g) When the construction manager/general contractor contract is fully executed or when the commissioner of transportation decides to use another contract procurement process, other than the construction manager/general contractor authority, authorized under section 161.3209, subdivision 3, paragraph (b), all remaining data not already made public under this subdivision become public.

 

(h) If the commissioner of transportation rejects all responses to a request for proposals before a construction manager/general contractor contract is fully executed, all data, other than that data made public under this subdivision, retains its classification until a resolicitation of the request for proposals results in a fully executed construction manager/general contractor contract or a determination is made to abandon the project. If a resolicitation of proposals does not occur within one year of the announcement of the request for proposals, the remaining data become public.

 

Sec. 9. Minnesota Statutes 2012, section 13.72, is amended by adding a subdivision to read:

 

Subd. 20. Transit customer data. (a) Data on applicants, users, and customers of public transit collected by or through the Metropolitan Council's personalized Web services or the regional fare collection system are private data on individuals. As used in this subdivision, the following terms have the meanings given them:

 

(1) "regional fare collection system" means the fare collection system created and administered by the council that is used for collecting fares or providing fare cards or passes for transit services, which include:


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1372

(i) regular route bus service within the metropolitan area and paratransit service, whether provided by the council or by other providers of regional transit service;

 

(ii) light rail transit service within the metropolitan area;

 

(iii) rideshare programs administered by the council;

 

(iv) special transportation services provided under section 473.386; and

 

(v) commuter rail service;

 

(2) "personalized Web services" means services for which transit service applicants, users, and customers must establish a user account; and

 

(3) "metropolitan area" means the area defined in section 473.121, subdivision 2.

 

(b) The Metropolitan Council may disseminate data on user and customer transaction history and fare card use to government entities, organizations, school districts, educational institutions, and employers that subsidize or provide fare cards to their clients, students, or employees. "Data on user and customer transaction history and fare card use" includes only:

 

(1) the date a fare card was used;

 

(2) the time a fare card was used;

 

(3) the mode of travel;

 

(4) the type of fare product used; and

 

(5) information about the date, time, and type of fare product purchased.

 

Government entities, organizations, school districts, educational institutions, and employers may use customer transaction history and fare card use data only for the purposes of measuring and promoting fare card use and for evaluating the cost effectiveness of their fare card programs. If a user or customer requests in writing that the council limit the disclosure of transaction history and fare card use, the council may disclose only the card balance and the date a card was last used.

 

(c) The Metropolitan Council may disseminate transit service applicant, user, and customer data:

 

(1) to another government entity to prevent unlawful intrusion into government electronic systems;

 

(2) to its Metropolitan Transit Police and other law enforcement agencies conducting investigations; or

 

(3) as otherwise provided by law.

 

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

 

Sec. 10. [144.192] TREATMENT OF BIOLOGICAL SPECIMENS AND HEALTH DATA HELD BY THE DEPARTMENT OF HEALTH AND HEALTH BOARDS.

 

Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1373

(b) "Biological specimen" means tissue, fluids, excretions, or secretions that contain human DNA originating from an identifiable individual, either living or deceased. Biological specimen does not include infectious agents or chemicals that are isolated from a specimen. Nothing in this section or section 13.386 is intended to limit the commissioner's ability to collect, use, store, or disseminate such isolated infectious agents or chemicals.

 

(c) "Health data" has the meaning given in section 13.3805, subdivision 1, paragraph (a), clause (2).

 

(d) "Health oversight" means oversight of the health care system for activities authorized by law, limited to the following:

 

(1) audits;

 

(2) civil, administrative, or criminal investigations;

 

(3) inspections;

 

(4) licensure or disciplinary actions;

 

(5) civil, administrative, or criminal proceedings or actions; and

 

(6) other activities necessary for appropriate oversight of the health care system and persons subject to such governmental regulatory programs for which biological specimens or health data are necessary for determining compliance with program standards.

 

(e) "Individual" has the meaning given in section 13.02, subdivision 8. In addition, for a deceased individual, individual also means the representative of the decedent.

 

(f) "Person" has the meaning given in section 13.02, subdivision 10.

 

(g) "Program operations" means actions, testing, and procedures directly related to the operation of department programs, limited to the following:

 

(1) diagnostic and confirmatory testing;

 

(2) laboratory quality control assurance and improvement;

 

(3) calibration of equipment;

 

(4) evaluation and improvement of test accuracy;

 

(5) method development and validation;

 

(6) compliance with regulatory requirements; and

 

(7) continuity of operations to ensure that testing continues in the event of an emergency.

 

(h) "Public health practice" means actions related to disease, conditions, injuries, risk factors, or exposures taken to protect public health, limited to the following:

 

(1) monitoring the health status of a population;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1374

(2) investigating occurrences and outbreaks;

 

(3) comparing patterns and trends;

 

(4) implementing prevention and control measures;

 

(5) conducting program evaluations and making program improvements;

 

(6) making recommendations concerning health for a population;

 

(7) preventing or controlling known or suspected diseases and injuries; and

 

(8) conducting other activities necessary to protect or improve the health of individuals and populations for which biological specimens or health data are necessary.

 

(i) "Representative of the decedent" has the meaning given in section 13.10, subdivision 1, paragraph (c).

 

(j) "Research" means activities that are not program operations, public health practice, or health oversight, and is otherwise defined in Code of Federal Regulations, title 45, part 46, subpart A, section 46.102(d).

 

Subd. 2. Collection, use, storage, and dissemination. (a) The commissioner may collect, use, store, and disseminate biological specimens and health data, genetic or other, as provided in this section and as authorized under any other provision of applicable law, including any rules adopted on or before June 30, 2013. Any rules adopted after June 30, 2013, must be consistent with the requirements of this section.

 

(b) The provisions in this section supplement other provisions of law and do not supersede or repeal other provisions of law applying to the collection, use, storage, or dissemination of biological specimens or health data.

 

(c) For purposes of this section, genetic information is limited to biological specimens and health data.

 

Subd. 3. Biological specimens and health data for program operations, public health practice, and health oversight. (a) The commissioner may collect, use, store, and disseminate biological specimens and health data to conduct program operations activities, public health practice activities, and health oversight activities. Unless required under other applicable law, consent of an individual is not required under this subdivision.

 

(b) With the approval of the commissioner, biological specimens may be disseminated to establish a diagnosis, to provide treatment, to identify persons at risk of illness, to conduct an epidemiologic investigation to control or prevent the spread of serious disease, or to diminish an imminent threat to the public health.

 

(c) For purposes of Clinical Laboratory Improvement Amendments proficiency testing, the commissioner may disseminate de-identified biological specimens to state public health laboratories that agree, pursuant to contract, not to attempt to re-identify the biological specimens.

 

(d) Health data may be disseminated as provided in section 13.3805, subdivision 1, paragraph (b).

 

Subd. 4. Research. The commissioner may collect, use, store, and disseminate biological specimens and health data to conduct research in a manner that is consistent with the federal common rule for the protection of human subjects in Code of Federal Regulations, title 45, part 46.

 

Subd. 5. Storage of biological specimens and health data according to storage schedules. (a) The commissioner shall store health data according to section 138.17.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1375

(b) The commissioner shall store biological specimens according to a specimen storage schedule. The commissioner shall develop the storage schedule by July 1, 2013, and post it on the department's Web site.

 

Subd. 6. Secure storage of biological specimens. The commissioner shall establish appropriate security safeguards for the storage of biological specimens, with regard for the privacy of the individuals from whom the biological specimens originated, and store the biological specimens accordingly. When a biological specimen is disposed of, it must be destroyed in a way that prevents determining the identity of the individual from whom it originated.

 

Subd. 7. Applicability to health boards. The provisions of subdivisions 2; 3, paragraphs (a), (c), and (d); and 4 to 6 pertaining to the commissioner also apply to boards of health and community health boards organized under chapter 145A. These boards may also disseminate health data pursuant to section 13.3805, subdivision 1, paragraph (b), clause (2).

 

EFFECTIVE DATE. This section is effective July 1, 2013.

 

Sec. 11. Minnesota Statutes 2012, section 144.966, subdivision 2, is amended to read:

 

Subd. 2. Newborn Hearing Screening Advisory Committee. (a) The commissioner of health shall establish a Newborn Hearing Screening Advisory Committee to advise and assist the Department of Health and the Department of Education in:

 

(1) developing protocols and timelines for screening, rescreening, and diagnostic audiological assessment and early medical, audiological, and educational intervention services for children who are deaf or hard-of-hearing;

 

(2) designing protocols for tracking children from birth through age three that may have passed newborn screening but are at risk for delayed or late onset of permanent hearing loss;

 

(3) designing a technical assistance program to support facilities implementing the screening program and facilities conducting rescreening and diagnostic audiological assessment;

 

(4) designing implementation and evaluation of a system of follow-up and tracking; and

 

(5) evaluating program outcomes to increase effectiveness and efficiency and ensure culturally appropriate services for children with a confirmed hearing loss and their families.

 

(b) The commissioner of health shall appoint at least one member from each of the following groups with no less than two of the members being deaf or hard-of-hearing:

 

(1) a representative from a consumer organization representing culturally deaf persons;

 

(2) a parent with a child with hearing loss representing a parent organization;

 

(3) a consumer from an organization representing oral communication options;

 

(4) a consumer from an organization representing cued speech communication options;

 

(5) an audiologist who has experience in evaluation and intervention of infants and young children;

 

(6) a speech-language pathologist who has experience in evaluation and intervention of infants and young children;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1376

(7) two primary care providers who have experience in the care of infants and young children, one of which shall be a pediatrician;

 

(8) a representative from the early hearing detection intervention teams;

 

(9) a representative from the Department of Education resource center for the deaf and hard-of-hearing or the representative's designee;

 

(10) a representative of the Commission of Deaf, DeafBlind and Hard-of-Hearing Minnesotans;

 

(11) a representative from the Department of Human Services Deaf and Hard-of-Hearing Services Division;

 

(12) one or more of the Part C coordinators from the Department of Education, the Department of Health, or the Department of Human Services or the department's designees;

 

(13) the Department of Health early hearing detection and intervention coordinators;

 

(14) two birth hospital representatives from one rural and one urban hospital;

 

(15) a pediatric geneticist;

 

(16) an otolaryngologist;

 

(17) a representative from the Newborn Screening Advisory Committee under this subdivision; and

 

(18) a representative of the Department of Education regional low-incidence facilitators.

 

The commissioner must complete the appointments required under this subdivision by September 1, 2007.

 

(c) The Department of Health member shall chair the first meeting of the committee. At the first meeting, the committee shall elect a chair from its membership. The committee shall meet at the call of the chair, at least four times a year. The committee shall adopt written bylaws to govern its activities. The Department of Health shall provide technical and administrative support services as required by the committee. These services shall include technical support from individuals qualified to administer infant hearing screening, rescreening, and diagnostic audiological assessments.

 

Members of the committee shall receive no compensation for their service, but shall be reimbursed as provided in section 15.059 for expenses incurred as a result of their duties as members of the committee.

 

(d) This subdivision expires June 30, 2013 2019.

 

Sec. 12. Minnesota Statutes 2012, section 144.966, subdivision 3, is amended to read:

 

Subd. 3. Early hearing detection and intervention programs. All hospitals shall establish an early hearing detection and intervention (EHDI) program. Each EHDI program shall:

 

(1) in advance of any hearing screening testing, provide to the newborn's or infant's parents or parent information concerning the nature of the screening procedure, applicable costs of the screening procedure, the potential risks and effects of hearing loss, and the benefits of early detection and intervention;

 

(2) comply with parental consent under section 144.125, subdivision 3 4;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1377

(3) develop policies and procedures for screening and rescreening based on Department of Health recommendations;

 

(4) provide appropriate training and monitoring of individuals responsible for performing hearing screening tests as recommended by the Department of Health;

 

(5) test the newborn's hearing prior to discharge, or, if the newborn is expected to remain in the hospital for a prolonged period, testing shall be performed prior to three months of age or when medically feasible;

 

(6) develop and implement procedures for documenting the results of all hearing screening tests;

 

(7) inform the newborn's or infant's parents or parent, primary care physician, and the Department of Health according to recommendations of the Department of Health of the results of the hearing screening test or rescreening if conducted, or if the newborn or infant was not successfully tested. The hospital that discharges the newborn or infant to home is responsible for the screening; and

 

(8) collect performance data specified by the Department of Health.

 

EFFECTIVE DATE. This section is effective July 1, 2013.

 

Sec. 13. Minnesota Statutes 2012, section 144.966, is amended by adding a subdivision to read:

 

Subd. 8. Construction. Notwithstanding anything to the contrary, nothing in this section shall be construed as constituting newborn screening activities conducted under sections 144.125 to 144.128.

 

EFFECTIVE DATE. This section is effective July 1, 2013.

 

Sec. 14. Minnesota Statutes 2012, section 144.966, is amended by adding a subdivision to read:

 

Subd. 9. Data collected. Data collected by or submitted to the Department of Health pursuant to this section are not subject to section 144.125, subdivisions 6 to 9.

 

Sec. 15. Minnesota Statutes 2012, section 171.07, subdivision 1a, is amended to read:

 

Subd. 1a. Filing photograph or image; data classification. The department shall file, or contract to file, all photographs or electronically produced images obtained in the process of issuing drivers' licenses or Minnesota identification cards. The photographs or electronically produced images shall be private data pursuant to section 13.02, subdivision 12. Notwithstanding section 13.04, subdivision 3, the department shall not be required to provide copies of photographs or electronically produced images to data subjects. The use of the files is restricted:

 

(1) to the issuance and control of drivers' licenses;

 

(2) to criminal justice agencies, as defined in section 299C.46, subdivision 2, for the investigation and prosecution of crimes, service of process, enforcement of no contact orders, location of missing persons, investigation and preparation of cases for criminal, juvenile, and traffic court, and supervision of offenders;

 

(3) to public defenders, as defined in section 611.272, for the investigation and preparation of cases for criminal, juvenile, and traffic courts; and

 

(4) to child support enforcement purposes under section 256.978.; and

 

(5) to a county medical examiner or coroner as required by section 390.005 as necessary to fulfill the duties under sections 390.11 and 390.25.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1378

Sec. 16. Minnesota Statutes 2012, section 268.19, subdivision 1, is amended to read:

 

Subdivision 1. Use of data. (a) Except as provided by this section, data gathered from any person under the administration of the Minnesota Unemployment Insurance Law are private data on individuals or nonpublic data not on individuals as defined in section 13.02, subdivisions 9 and 12, and may not be disclosed except according to a district court order or section 13.05. A subpoena is not considered a district court order. These data may be disseminated to and used by the following agencies without the consent of the subject of the data:

 

(1) state and federal agencies specifically authorized access to the data by state or federal law;

 

(2) any agency of any other state or any federal agency charged with the administration of an unemployment insurance program;

 

(3) any agency responsible for the maintenance of a system of public employment offices for the purpose of assisting individuals in obtaining employment;

 

(4) the public authority responsible for child support in Minnesota or any other state in accordance with section 256.978;

 

(5) human rights agencies within Minnesota that have enforcement powers;

 

(6) the Department of Revenue to the extent necessary for its duties under Minnesota laws;

 

(7) public and private agencies responsible for administering publicly financed assistance programs for the purpose of monitoring the eligibility of the program's recipients;

 

(8) the Department of Labor and Industry and the Division of Insurance Fraud Prevention in the Department of Commerce for uses consistent with the administration of their duties under Minnesota law;

 

(9) local and state welfare agencies for monitoring the eligibility of the data subject for assistance programs, or for any employment or training program administered by those agencies, whether alone, in combination with another welfare agency, or in conjunction with the department or to monitor and evaluate the statewide Minnesota family investment program by providing data on recipients and former recipients of food stamps or food support, cash assistance under chapter 256, 256D, 256J, or 256K, child care assistance under chapter 119B, or medical programs under chapter 256B, 256D, or 256L;

 

(10) local and state welfare agencies for the purpose of identifying employment, wages, and other information to assist in the collection of an overpayment debt in an assistance program;

 

(11) local, state, and federal law enforcement agencies for the purpose of ascertaining the last known address and employment location of an individual who is the subject of a criminal investigation;

 

(12) the United States Immigration and Customs Enforcement has access to data on specific individuals and specific employers provided the specific individual or specific employer is the subject of an investigation by that agency;

 

(13) the Department of Health for the purposes of epidemiologic investigations;

 

(14) the Department of Corrections for the purpose of case planning for preprobation and postprobation employment tracking of offenders sentenced to probation and preconfinement and postconfinement employment tracking of committed offenders for the purpose of case planning; and


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1379

(15) the state auditor to the extent necessary to conduct audits of job opportunity building zones as required under section 469.3201.

 

(b) Data on individuals and employers that are collected, maintained, or used by the department in an investigation under section 268.182 are confidential as to data on individuals and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 and 13, and must not be disclosed except under statute or district court order or to a party named in a criminal proceeding, administrative or judicial, for preparation of a defense.

 

(c) Data gathered by the department in the administration of the Minnesota unemployment insurance program must not be made the subject or the basis for any suit in any civil proceedings, administrative or judicial, unless the action is initiated by the department.

 

Sec. 17. Minnesota Statutes 2012, section 299C.11, subdivision 1, is amended to read:

 

Subdivision 1. Identification data other than DNA. (a) Each sheriff and chief of police shall furnish the bureau, upon such form as the superintendent shall prescribe, with such finger and thumb prints, photographs, distinctive physical mark identification data, information on known aliases and street names, and other identification data as may be requested or required by the superintendent of the bureau, which must be taken under the provisions of section 299C.10. In addition, sheriffs and chiefs of police shall furnish this identification data to the bureau for individuals found to have been convicted of a felony, gross misdemeanor, or targeted misdemeanor, within the ten years immediately preceding their arrest. When the bureau learns that an individual who is the subject of a background check has used, or is using, identifying information, including, but not limited to, name and date of birth, other than those listed on the criminal history, the bureau may add the new identifying information to the criminal history when supported by fingerprints.

 

(b) No petition under chapter 609A is required if the person has not been convicted of any felony or gross misdemeanor, either within or without the state, within the period of ten years immediately preceding the determination of all pending criminal actions or proceedings in favor of the arrested person, and either of the following occurred:

 

(1) all charges were dismissed prior to a determination of probable cause; or

 

(2) the prosecuting authority declined to file any charges and a grand jury did not return an indictment.

 

Where these conditions are met, the bureau or agency shall, upon demand, return to destroy the arrested person person's finger and thumb prints, photographs, distinctive physical mark identification data, information on known aliases and street names, and other identification data, and all copies and duplicates of them.

 

(c) Except as otherwise provided in paragraph (b), upon the determination of all pending criminal actions or proceedings in favor of the arrested person, and the granting of the petition of the arrested person under chapter 609A, the bureau shall seal finger and thumb prints, photographs, distinctive physical mark identification data, information on known aliases and street names, and other identification data, and all copies and duplicates of them if the arrested person has not been convicted of any felony or gross misdemeanor, either within or without the state, within the period of ten years immediately preceding such determination.

 

Sec. 18. Minnesota Statutes 2012, section 299C.46, subdivision 1, is amended to read:

 

Subdivision 1. Establishment; interconnection. The commissioner of public safety shall establish a criminal justice data communications network which that will enable the interconnection of the criminal justice agencies within the state provide secure access to systems and services available from or through the Bureau of Criminal Apprehension. The commissioner of public safety is authorized to lease or purchase facilities and equipment as may be necessary to establish and maintain the data communications network.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1380

Sec. 19. Minnesota Statutes 2012, section 299C.46, subdivision 2, is amended to read:

 

Subd. 2. Criminal justice agency defined. For the purposes of sections 299C.46 to 299C.49, "criminal justice agency" means an agency of the state or an agency of a political subdivision or the federal government charged with detection, enforcement, prosecution, adjudication or incarceration in respect to the criminal or traffic laws of this state. This definition also includes all sites identified and licensed as a detention facility by the commissioner of corrections under section 241.021 and those federal agencies that serve part or all of the state from an office located outside the state.

 

Sec. 20. Minnesota Statutes 2012, section 299C.46, subdivision 2a, is amended to read:

 

Subd. 2a. Noncriminal justice agency defined. For the purposes of sections 299C.46 to 299C.49, "noncriminal justice agency" means an agency of a the state or an agency of a political subdivision of a the state charged with the responsibility of performing checks of state databases connected to the criminal justice data communications network.

 

Sec. 21. Minnesota Statutes 2012, section 299C.46, subdivision 3, is amended to read:

 

Subd. 3. Authorized use, fee. (a) The criminal justice data communications network shall be used exclusively by:

 

(1) criminal justice agencies in connection with the performance of duties required by law;

 

(2) agencies investigating federal security clearances of individuals for assignment or retention in federal employment with duties related to national security, as required by Public Law 99-169 United States Code, title 5, section 9101;

 

(3) other agencies to the extent necessary to provide for protection of the public or property in an a declared emergency or disaster situation;

 

(4) noncriminal justice agencies statutorily mandated, by state or national law, to conduct checks into state databases prior to disbursing licenses or providing benefits;

 

(5) the public authority responsible for child support enforcement in connection with the performance of its duties;

 

(6) the public defender, as provided in section 611.272; and

 

(7) a county attorney or the attorney general, as the county attorney's designee, for the purpose of determining whether a petition for the civil commitment of a proposed patient as a sexual psychopathic personality or as a sexually dangerous person should be filed, and during the pendency of the commitment proceedings.;

 

(8) an agency of the state or a political subdivision whose access to systems or services provided from or through the Bureau of Criminal Apprehension is specifically authorized by federal law or regulation or state statute; and

 

(9) a court for access to data as authorized by federal law or regulation or state statute and related to the disposition of a pending case.

 

(b) The commissioner of public safety shall establish a monthly network access charge to be paid by each participating criminal justice agency. The network access charge shall be a standard fee established for each terminal, computer, or other equipment directly addressable by the data communications network, as follows: January 1, 1984 to December 31, 1984, $40 connect fee per month; January 1, 1985 and thereafter, $50 connect fee per month.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1381

(c) The commissioner of public safety is authorized to arrange for the connection of the data communications network with the criminal justice information system of the federal government, any adjacent state, or Canada country for the secure exchange of information for any of the purposes authorized in paragraph (a), clauses (1), (2), (3), (8), and (9).

 

(d) Prior to establishing a secure connection, a criminal justice agency must:

 

(1) agree to comply with all applicable policies governing access to, submission of, or use of the data;

 

(2) meet the Bureau of Criminal Apprehension's security requirements;

 

(3) agree to pay any required fees; and

 

(4) conduct fingerprint-based state and national background checks on its employees and contractors as required by the Federal Bureau of Investigation.

 

(e) Prior to establishing a secure connection, a noncriminal justice agency must:

 

(1) agree to comply with all applicable policies governing access to, submission of, or use of the data;

 

(2) meet the Bureau of Criminal Apprehension's security requirements;

 

(3) agree to pay any required fees; and

 

(4) conduct fingerprint-based state and national background checks on its employees and contractors.

 

(f) Those noncriminal justice agencies that do not have a secure network connection yet receive data either retrieved over the secure network by an authorized criminal justice agency or as a result of a state or federal criminal history records check shall conduct a background check as provided in paragraph (g) of those individuals who receive and review the data to determine another individual's eligibility for employment, housing, a license, or another legal right dependent on a statutorily-mandated background check.

 

(g) The background check required by paragraph (e) or (f) is accomplished by submitting a request to the superintendent of the Bureau of Criminal Apprehension that includes a signed, written consent for the Minnesota and national criminal history records check, fingerprints, and the required fee. The superintendent may exchange the fingerprints with the Federal Bureau of Investigation for purposes of obtaining the individual's national criminal history record information.

 

The superintendent shall return the results of the national criminal history records check to the noncriminal justice agency to determine if the individual is qualified to have access to state and federal criminal history record information or the secure network. An individual is disqualified when the state and federal criminal history record information shows any of the disqualifiers that the individual will apply to the records of others.

 

When the individual is to have access to the secure network, the noncriminal justice agency will review the criminal history of each employee or contractor with the Criminal Justice Information Services systems officer at the Bureau of Criminal Apprehension, or the officer's designee, to determine if the employee or contractor qualifies for access to the secure network. The Criminal Justice Information Services systems officer or the designee will make the access determination based on Federal Bureau of Investigation policy and Bureau of Criminal Apprehension policy.

 

Sec. 22. [299C.72] MINNESOTA CRIMINAL HISTORY CHECKS.

 

Subdivision 1. Definitions. For purposes of this section, the following terms have the meanings given.

 

(a) "Applicant for employment" means an individual who seeks either county or city employment or has applied to serve as a volunteer in the county or city.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1382

(b) "Applicant for licensure" means an individual who seeks a license issued by the county or city which is not subject to a federal or state-mandated background check.

 

(c) "Authorized law enforcement agency" means the county sheriff for checks conducted for county purposes, the police department for checks conducted for city purposes, or the county sheriff for checks conducted for city purposes where there is no police department.

 

(d) "Criminal history check" means retrieval of criminal history data via the secure network described in section 299C.46.

 

(e) "Criminal history data" means adult convictions and adult open arrests less than one year old found in the Minnesota computerized criminal history repository.

 

(f) "Informed consent" has the meaning given in section 13.05, subdivision 4, paragraph (d).

 

Subd. 2. Criminal history check authorized. (a) The criminal history check authorized by this section cannot be used in place of a statutorily-mandated or authorized background check.

 

(b) An authorized law enforcement agency may conduct a criminal history check of an individual who is an applicant for employment or applicant for licensure. Prior to conducting the criminal history check, the authorized law enforcement agency must receive the informed consent of the individual.

 

(c) The authorized law enforcement agency cannot disseminate criminal history data and must maintain the data securely with the agency's office. The authorized law enforcement agency can indicate whether the applicant for employment or applicant for licensure has a criminal history that would prevent hire or acceptance as a volunteer to a hiring authority, or would prevent the issuance of a license to the department that issues the license.

 

Sec. 23. Minnesota Statutes 2012, section 299F.035, subdivision 1, is amended to read:

 

Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.

 

(b) "Minnesota criminal history data" has the meaning given in section 13.87 means adult convictions and juvenile adjudications.

 

(c) "Criminal justice agency" has the meaning given in section 299C.46, subdivision 2.

 

(d) "Fire department" has the meaning given in section 299N.01, subdivision 2.

 

(e) (d) "Private data" has the meaning given in section 13.02, subdivision 12.

 

Sec. 24. Minnesota Statutes 2012, section 299F.035, subdivision 2, is amended to read:

 

Subd. 2. Plan for access to data. (a) The superintendent of the Bureau of Criminal Apprehension, in consultation with the state fire marshal, shall develop and implement a plan for fire departments to have access to criminal history data A background check must be conducted on all applicants for employment and may be conducted on current employees at a fire department. The fire chief must conduct a Minnesota criminal history record check. For applicants for employment who have lived in Minnesota for less than five years, or on the request of the fire chief, a national criminal history record check must also be conducted.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1383

(b) The plan must include:

 

(1) security procedures to prevent unauthorized use or disclosure of private data; and

 

(2) a procedure for the hiring or employing authority in each fire department to fingerprint job applicants or employees, submit requests to the Bureau of Criminal Apprehension, and obtain state and federal criminal history data reports for a nominal fee.

 

(b) For a Minnesota criminal history record check, the fire chief must either (i) submit the signed informed consent of the applicant or employee and the required fee to the superintendent, or (ii) submit the signed informed consent to the chief of police. The superintendent or chief must retrieve Minnesota criminal history data and provide the data to the fire chief for review.

 

(c) For a national criminal history record check, the fire chief must submit the signed informed consent and fingerprints of the applicant or employee, and the required fee, to the superintendent. The superintendent may exchange the fingerprints with the Federal Bureau of Investigation to obtain the individual's national criminal history record information. The superintendent must return the results of the national criminal history record check to the fire chief for the purpose of determining if the applicant is qualified to be employed or if a current employee is able to retain the employee's position.

 

Sec. 25. Minnesota Statutes 2012, section 299F.77, is amended to read:

 

299F.77 ISSUANCE TO CERTAIN PERSONS PROHIBITED.

 

Subdivision 1. Disqualifiers. The following persons shall not be entitled to receive an explosives license or permit:

 

(1) a person under the age of 18 years;

 

(2) a person who has been convicted in this state or elsewhere of a crime of violence, as defined in section 299F.72, subdivision 1b, unless ten years have elapsed since the person's civil rights have been restored or the sentence has expired, whichever occurs first, and during that time the person has not been convicted of any other crime of violence. For purposes of this section, crime of violence includes crimes in other states or jurisdictions that would have been crimes of violence if they had been committed in this state;

 

(3) a person who is or has ever been confined or committed in Minnesota or elsewhere as a person who is mentally ill, developmentally disabled, or mentally ill and dangerous to the public, as defined in section 253B.02, to a treatment facility, unless the person possesses a certificate of a medical doctor or psychiatrist licensed in Minnesota, or other satisfactory proof, that the person is no longer suffering from this disability;

 

(4) a person who has been convicted in Minnesota or elsewhere for the unlawful use, possession, or sale of a controlled substance other than conviction for possession of a small amount of marijuana, as defined in section 152.01, subdivision 16, or who is or has ever been hospitalized or committed for treatment for the habitual use of a controlled substance or marijuana, as defined in sections 152.01 and 152.02, unless the person possesses a certificate of a medical doctor or psychiatrist licensed in Minnesota, or other satisfactory proof, that the person has not abused a controlled substance or marijuana during the previous two years; and

 

(5) a person who has been confined or committed to a treatment facility in Minnesota or elsewhere as chemically dependent, as defined in section 253B.02, unless the person has completed treatment.

 

Subd. 2. Background check. (a) For licenses issued by the commissioner under section 299F.73, the applicant for licensure must provide the commissioner with all of the information required by Code of Federal Regulations, title 28, section 25.7. The commissioner will forward the information to the superintendent of the Bureau of


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1384

Criminal Apprehension so that criminal records, histories, and warrant information on the applicant can be retrieved from the Minnesota Crime Information System and the National Instant Criminal Background Check System, as well as the civil commitment records maintained by the Department of Human Services. The results must be returned to the commissioner to determine if the individual applicant is qualified to receive a license.

 

(b) For permits issued by a county sheriff or chief of police under section 299F.75, the applicant for a permit must provide the county sheriff or chief of police with all of the information required by Code of Federal Regulations, title 28, section 25.7. The county sheriff or chief of police must check, by means of electronic data transfer, criminal records, histories, and warrant information on each applicant through the Minnesota Crime Information System and the National Instant Criminal Background Check System, as well as the civil commitment records maintained by the Department of Human Services. The county sheriff or police chief shall use the results of the query to determine if the individual applicant is qualified to receive a permit.

 

Sec. 26. Minnesota Statutes 2012, section 340A.301, subdivision 2, is amended to read:

 

Subd. 2. Persons eligible. (a) Licenses under this section may be issued only to a person who:

 

(1) is of good moral character and repute;

 

(2) is 21 years of age or older;

 

(3) has not had a license issued under this chapter revoked within five years of the date of license application, or to any person who at the time of the violation owns any interest, whether as a holder of more than five percent of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or in the business conducted thereon, or to a corporation, partnership, association, enterprise, business, or firm in which any such person is in any manner interested; and

 

(4) has not been convicted within five years of the date of license application of a felony, or of a willful violation of a federal or state law, or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution of alcoholic beverages. The Alcohol and Gambling Enforcement Division may require that fingerprints be taken and may forward the fingerprints to the Federal Bureau of Investigation for purposes of a criminal history check.

 

(b) In order to determine if an individual has a felony or willful violation of federal or state law governing the manufacture, sale, distribution, or possession for sale or distribution of an alcoholic beverage, the applicant for a license to manufacture or sell at wholesale must provide the commissioner with the applicant's signed, written informed consent to conduct a background check. The commissioner may query the Minnesota criminal history repository for records on the applicant. If the commissioner conducts a national criminal history record check, the commissioner must obtain fingerprints from the applicant and forward them and the required fee to the superintendent of the Bureau of Criminal Apprehension. The superintendent may exchange the fingerprints with the Federal Bureau of Investigation for purposes of obtaining the applicant's national criminal history record information. The superintendent shall return the results of the national criminal history records check to the commissioner for the purpose of determining if the applicant is qualified to receive a license.

 

Sec. 27. Minnesota Statutes 2012, section 340A.402, is amended to read:

 

340A.402 PERSONS ELIGIBLE.

 

Subdivision 1. Disqualifiers. No retail license may be issued to:

 

(1) a person under 21 years of age;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1385

(2) a person who has had an intoxicating liquor or 3.2 percent malt liquor license revoked within five years of the license application, or to any person who at the time of the violation owns any interest, whether as a holder of more than five percent of the capital stock of a corporation licensee, as a partner or otherwise, in the premises or in the business conducted thereon, or to a corporation, partnership, association, enterprise, business, or firm in which any such person is in any manner interested;

 

(3) a person not of good moral character and repute; or

 

(4) a person who has a direct or indirect interest in a manufacturer, brewer, or wholesaler.

 

In addition, no new retail license may be issued to, and the governing body of a municipality may refuse to renew the license of, a person who, within five years of the license application, has been convicted of a felony or a willful violation of a federal or state law or local ordinance governing the manufacture, sale, distribution, or possession for sale or distribution of an alcoholic beverage. The Alcohol and Gambling Enforcement Division or licensing authority may require that fingerprints be taken and forwarded to the Federal Bureau of Investigation for purposes of a criminal history check.

 

Subd. 2. Background check. (a) A retail liquor license may be issued by a city, a county, or the commissioner. The chief of police is responsible for the background checks prior to a city issuing a retail liquor license. A county sheriff is responsible for the background checks prior to the county issuing a retail liquor license and for those cities that do not have a police department. The commissioner is responsible for the background checks prior to the state issuing a retail liquor license.

 

(b) The applicant for a retail license must provide the appropriate authority with the applicant's signed, written informed consent to conduct a background check. The appropriate authority is authorized to query the Minnesota criminal history repository for records on the applicant. If the appropriate authority conducts a national criminal history records check, the appropriate authority must obtain fingerprints from the applicant and forward the fingerprints and the required fee to the superintendent of the Bureau of Criminal Apprehension. The superintendent may exchange the fingerprints with the Federal Bureau of Investigation for purposes of obtaining the applicant's national criminal history record information. The superintendent shall return the results of the national criminal history records check to the appropriate authority for the purpose of determining if the applicant is qualified to receive a license.

 

Sec. 28. Minnesota Statutes 2012, section 611A.203, subdivision 4, is amended to read:

 

Subd. 4. Duties; access to data. (a) The domestic fatality review team shall collect, review, and analyze death certificates and death data, including investigative reports, medical and counseling records, victim service records, employment records, child abuse reports, or other information concerning domestic violence deaths, survivor interviews and surveys, and other information deemed by the team as necessary and appropriate concerning the causes and manner of domestic violence deaths.

 

(b) The review team has access to the following not public data, as defined in section 13.02, subdivision 8a, relating to a case being reviewed by the team: inactive law enforcement investigative data under section 13.82; autopsy records and coroner or medical examiner investigative data under section 13.83; hospital, public health, or other medical records of the victim under section 13.384; records under section 13.46, created by social service agencies that provided services to the victim, the alleged perpetrator, or another victim who experienced or was threatened with domestic abuse by the perpetrator; and child maltreatment records under section 626.556, relating to the victim or a family or household member of the victim. Access to medical records under this paragraph also includes records governed by sections 144.291 to 144.298. The review team has access to corrections and detention data as provided in section 13.85.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1386

(c) As part of any review, the domestic fatality review team may compel the production of other records by applying to the district court for a subpoena, which will be effective throughout the state according to the Rules of Civil Procedure.

 

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

 

Sec. 29. REPEALER.

 

Minnesota Statutes 2012, section 299A.28, is repealed."

 

Delete the title and insert:

 

"A bill for an act relating to state government; classifying or modifying certain provisions concerning data practices; requiring informed consent; amending definitions; allowing disclosure of certain data; allowing access to certain records; making technical changes; modifying certain provisions regarding transportation and health data; modifying certain provisions regarding criminal history records, criminal background checks, and other criminal justice data provisions; extending for six years the sunset provision for the newborn screening advisory committee; repealing the McGruff safe house program; amending Minnesota Statutes 2012, sections 13.37, subdivision 1; 13.386, subdivision 3; 13.43, subdivision 2; 13.64, subdivision 2; 13.72, subdivision 10, by adding subdivisions; 144.966, subdivisions 2, 3, by adding subdivisions; 171.07, subdivision 1a; 268.19, subdivision 1; 299C.11, subdivision 1; 299C.46, subdivisions 1, 2, 2a, 3; 299F.035, subdivisions 1, 2; 299F.77; 340A.301, subdivision 2; 340A.402; 611A.203, subdivision 4; proposing coding for new law in Minnesota Statutes, chapters 13; 144; 299C; repealing Minnesota Statutes 2012, section 299A.28."

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Erhardt from the Committee on Transportation Policy to which was referred:

 

H. F. No. 745, A bill for an act relating to municipalities; authorizing municipalities to establish street improvement districts and apportion street improvement fees within districts; requiring adoption of street improvement plan; authorizing collection of fees; proposing coding for new law in Minnesota Statutes, chapter 435.

 

Reported the same back with the following amendments:

 

Page 2, line 8, before "parcels" insert "developed"

 

Page 2, line 10, delete "parcels or" and insert "developed parcels or developed"

 

Page 2, line 18, delete "ten" and insert "30"

 

Page 2, line 19, delete "ten" and insert "30"

 

Page 2, delete subdivision 5

 

Renumber the subdivisions in sequence

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Transportation Finance.

 

The report was adopted.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1387

Lesch from the Committee on Civil Law to which was referred:

 

H. F. No. 748, A bill for an act relating to employment; modifying prompt payment of wages requirements; modifying penalties; amending Minnesota Statutes 2012, sections 181.13; 181.14.

 

Reported the same back with the following amendments:

 

Page 3, line 7, delete "but remain" and insert "and"

 

Page 4, line 3, delete "unless" and insert ", who is not an independent contractor, for lost or stolen property, damage to property, or to recover any other claimed indebtedness running from employee to employer, except as permitted by section 181.79"

 

Page 4, line 4, delete the new language

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Hilstrom from the Committee on Judiciary Finance and Policy to which was referred:

 

H. F. No. 767, A bill for an act relating to human services; making changes to continuing care provisions; modifying provisions related to advisory task forces, nursing homes, resident relocation, medical assistance, long-term care consultation services, assessments, and reporting of maltreatment; requiring a report; amending Minnesota Statutes 2012, sections 15.014, subdivision 2; 144.0724, subdivision 12; 144A.071, subdivision 4d; 144A.161; 256B.056, subdivision 3; 256B.057, subdivision 9; 256B.0652, subdivision 5; 256B.0659, subdivision 7, by adding a subdivision; 256B.0911, subdivision 3a; 256B.092, subdivision 7; 256B.441, subdivisions 1, 43, 63; 256B.49, subdivision 14; 256B.492; 626.557, subdivision 10; repealing Minnesota Statutes 2012, section 256B.437, subdivision 8; Laws 2012, chapter 216, article 11, section 31.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Government Operations.

 

The report was adopted.

 

 

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 778, A bill for an act relating to natural resources; providing for exchange of road easements; modifying forest management investment account; modifying State Timber Act; appropriating money; amending Minnesota Statutes 2012, sections 89.0385; 90.01, subdivisions 4, 5, 6, 8, 11; 90.031, subdivision 4; 90.041, subdivisions 2, 5, 6, 9, by adding subdivisions; 90.045; 90.061, subdivision 8; 90.101, subdivision 1; 90.121; 90.145; 90.151, subdivisions 1, 2, 3, 4, 6, 7, 8, 9; 90.161; 90.162; 90.171; 90.181, subdivision 2; 90.191, subdivision 1; 90.193; 90.195; 90.201, subdivision 2a; 90.211; 90.221; 90.252, subdivision 1; 90.301, subdivisions 2, 4; 90.41, subdivision 1; proposing coding for new law in Minnesota Statutes, chapters 84; 90; repealing Minnesota Statutes 2012, sections 90.163; 90.173; 90.41, subdivision 2.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Environment, Natural Resources and Agriculture Finance.

 

The report was adopted.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1388

Paymar from the Committee on Public Safety Finance and Policy to which was referred:

 

H. F. No. 790, A bill for an act relating to public safety; clarifying when conditional release terms of certain offenders begin; amending Minnesota Statutes 2012, sections 243.166, subdivision 5a; 609.2231, subdivision 3a; 609.3455, subdivisions 6, 7; 617.246, subdivision 7; 617.247, subdivision 9.

 

Reported the same back with the recommendation that the bill pass.

 

The report was adopted.

 

 

Atkins from the Committee on Commerce and Consumer Protection Finance and Policy to which was referred:

 

H. F. No. 817, A bill for an act relating to private detectives; exempting certified public accounting services from licensure requirements; amending Minnesota Statutes 2012, section 326.3341.

 

Reported the same back with the following amendments:

 

Page 2, delete line 8 and insert "(8) a certified public accountant or a CPA firm, while"

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Public Safety Finance and Policy.

 

The report was adopted.

 

 

Paymar from the Committee on Public Safety Finance and Policy to which was referred:

 

H. F. No. 828, A bill for an act relating to public safety; authorizing and modifying access to secure communications network; providing minimum standards; clarifying use of network; amending Minnesota Statutes 2012, sections 299C.11, subdivision 1; 299C.46, subdivisions 1, 2, 2a, 3; 299F.035, subdivisions 1, 2; 299F.77; 340A.301, subdivision 2; 340A.402; proposing coding for new law in Minnesota Statutes, chapter 299C; repealing Minnesota Statutes 2012, section 299A.28.

 

Reported the same back with the recommendation that the bill pass.

 

The report was adopted.

 

 

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 853, A bill for an act relating to public safety; fire and police department aid; modifying threshold for financial reports and audits; amending Minnesota Statutes 2012, section 69.051, subdivision 1.

 

Reported the same back with the recommendation that the bill pass.

 

The report was adopted.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1389

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 857, A bill for an act relating to public pensions; imposing an insurance surcharge; modifying pension aids; providing pension funding; amending Minnesota Statutes 2012, section 69.021, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 297I.

 

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Taxes.

 

The report was adopted.

 

 

Lesch from the Committee on Civil Law to which was referred:

 

H. F. No. 865, A bill for an act relating to environment; providing for product stewardship programs; requiring a report; amending Minnesota Statutes 2012, section 13.7411, subdivision 4; proposing coding for new law in Minnesota Statutes, chapter 115A.

 

Reported the same back with the following amendments:

 

Page 1, delete section 1

 

Page 6, delete subdivision 13 and insert:

 

"Subd. 13. Sales information. Sales information provided to the commissioner under this section is classified as private or nonpublic data, as specified in section 115A.06, subdivision 13."

 

Page 12, delete subdivision 13 and insert:

 

"Subd. 13. Sales information. Sales information provided to the commissioner under this section is classified as private or nonpublic data, as specified in section 115A.06, subdivision 13."

 

Page 14, delete lines 12 to 14 and insert:

 

"(3) "primary battery" means a battery weighing two kilograms or less that is not designed to be electrically recharged, including, but not limited to, alkaline manganese, carbon zinc, lithium, silver oxide, and zinc air batteries. Nonremovable batteries and medical devices as defined in the federal Food, Drug, and Cosmetic Act, United States Code, title 21, section 321(h), as amended, are exempted from this definition."

 

Page 14, delete lines 29 to 31

 

Page 14, line 32, delete "(8)" and insert "(7)"

 

Page 15, line 1, delete "(9)" and insert "(8)"

 

Page 15, line 4, delete "(10)" and insert "(9)"

 

Page 15, line 9, delete "reuse and"

 

Page 15, line 11, delete "and reuse"

 

Page 15, line 33, delete "all"


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1390

Page 15, line 34, before the first "batteries" insert "primary"

 

Page 16, lines 4 and 16, before "batteries" insert "primary"

 

Page 16, line 15, delete "reuse, deconstruct, or"

 

Page 16, line 26, delete "and reused"

 

Page 16, line 31, delete "and"

 

Page 16, line 32, delete the period and insert "; and"

 

Page 16, after line 32, insert:

 

"(v) the market share of the producers participating in the plan."

 

Page 17, line 29, delete "12" and insert "13"

 

Page 18, line 4, delete "unwanted" and insert "discarded"

 

Page 18, line 5, delete "reuse,"

 

Page 18, line 8, after "audit" insert "of the stewardship organization"

 

Page 18, delete subdivision 13 and insert:

 

"Subd. 13. Sales information. Sales information provided to the commissioner under this section is classified as private or nonpublic data, as specified in section 115A.06, subdivision 13."

 

Page 19, after line 11, insert:

 

"Subd. 16. Exemption; medical device. The requirements of this section do not apply to a medical device as defined in the Food, Drug, and Cosmetic Act, United States Code, title 21, section 321, paragraph (h).

 

Subd. 17. Private enforcement. (a) The operator of a statewide product stewardship program established under subdivision 2 that incurs costs exceeding $5,000 to collect, handle, recycle, or properly dispose of discarded primary batteries sold or offered for sale in Minnesota by a producer who does not implement its own program or participate in a program implemented by a stewardship organization, may bring a civil action or actions to recover costs and fees as specified in paragraph (b) from each nonimplementing or nonparticipating producer who can reasonably be identified from a brand or marking on a used consumer battery or from other information.

 

(b) An action under paragraph (a) may be brought against one or more primary battery producers, provided that no such action may be commenced:

 

(1) prior to 60 days after written notice of the operator's intention to file suit has been provided to the agency and the defendant or defendants; or

 

(2) if the agency has commenced enforcement actions under subdivision 10 and is diligently pursuing such actions.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1391

(c) In any action under paragraph (b), the plaintiff operator may recover from a defendant nonimplementing or nonparticipating primary battery producer costs the plaintiff incurred to collect, handle, recycle, or properly dispose of primary batteries reasonably identified as having originated from the defendant, plus the plaintiff's attorney fees and litigation costs."

 

Renumber the sections in sequence and correct the internal references

 

Correct the title numbers accordingly

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Judiciary Finance and Policy.

 

The report was adopted.

 

 

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 894, A bill for an act relating to elections; making policy, technical, and clarifying changes to various provisions related to election law, including provisions related to absentee voting, redistricting, ballots, registration, voting, caucuses, campaigns, the loss and restoration of voting rights, vacancies in nomination, county government structure, and election administration; providing an electronic roster pilot project and task force; establishing the Uniform Faithful Presidential Electors Act; requiring reports; appropriating money; amending Minnesota Statutes 2012, sections 5B.06; 13.851, subdivision 10; 103C.225, subdivision 3; 103C.305, subdivision 3; 201.054, subdivision 2, by adding a subdivision; 201.061, subdivision 3; 201.071, subdivision 2; 201.091, subdivision 8; 201.12, subdivision 3; 201.13, subdivision 1a; 201.14; 201.157; 201.275; 202A.14, subdivision 1; 203B.02, subdivision 1; 203B.04, subdivisions 1, 5; 203B.05, subdivision 1; 203B.06, subdivisions 1, 3; 203B.08, subdivision 3; 203B.081; 203B.121, subdivisions 1, 2, 3, 4, 5; 203B.227; 203B.28; 204B.04, by adding a subdivision; 204B.13, subdivisions 1, 2, 5, by adding subdivisions; 204B.18, subdivision 2; 204B.22, subdivisions 1, 2; 204B.28, subdivision 1; 204B.32, subdivision 1; 204B.33; 204B.35, subdivision 4; 204B.36, subdivision 1; 204B.45, subdivisions 1, 2; 204B.46; 204C.14; 204C.15, subdivision 1; 204C.19, subdivision 2; 204C.25; 204C.27; 204C.35, subdivision 1, by adding a subdivision; 204C.36, subdivision 1; 204D.08, subdivision 6; 204D.09, subdivision 2; 204D.11, subdivisions 1, 4, 5, 6; 204D.13, subdivision 3; 204D.14, subdivisions 1, 3; 204D.15, subdivision 3; 204D.16; 204D.165; 204D.19, subdivision 2, by adding a subdivision; 205.02, subdivision 2; 205.10, subdivision 3; 205.13, subdivision 1a; 205.16, subdivisions 4, 5; 205.17, subdivisions 1, 3; 205A.04, by adding a subdivision; 205A.05, subdivisions 1, 2; 205A.07, subdivisions 3, 3a, 3b; 205A.08, subdivision 1; 206.61, subdivision 4; 206.89, subdivision 2, by adding a subdivision; 206.895; 206.90, subdivision 6; 208.04, subdivisions 1, 2; 211B.045; 211B.37; 241.065, subdivision 2; 340A.416, subdivisions 2, 3; 340A.602; 375.20; 447.32, subdivisions 2, 3, 4; Laws 1963, chapter 276, section 2, subdivision 2, as amended; proposing coding for new law in Minnesota Statutes, chapters 2; 204B; 208; 244; repealing Minnesota Statutes 2012, sections 2.484; 203B.04, subdivision 6; 204B.12, subdivision 2a; 204B.13, subdivisions 4, 6; 204B.42; 204D.11, subdivisions 2, 3; 205.17, subdivisions 2, 4; 205A.08, subdivision 4.

 

Reported the same back with the following amendments:

 

Page 45, delete section 5 and insert:

 

"Sec. 5. Minnesota Statutes 2012, section 201.275, is amended to read:

 

201.275 INVESTIGATIONS; PROSECUTIONS.

 

A county attorney who law enforcement agency that is notified by affidavit of an alleged violation of this chapter shall promptly investigate. Upon receiving an affidavit alleging a violation of this chapter, a county attorney shall promptly forward it to a law enforcement agency with jurisdiction for investigation. If there is probable cause


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1392

for instituting a prosecution, the county attorney shall proceed by complaint or present the charge, with whatever evidence has been found, to the grand jury according to the generally applicable standards regarding the prosecutorial functions and duties of a county attorney, provided that the county attorney is not required to proceed with the prosecution if the complainant withdraws the allegation. A county attorney who refuses or intentionally fails to faithfully perform this or any other duty imposed by this chapter is guilty of a misdemeanor and upon conviction shall forfeit office. The county attorney, under the penalty of forfeiture of office, shall prosecute all violations of this chapter except violations of this section; if, however, a complainant withdraws an allegation under this chapter, the county attorney is not required to proceed with the prosecution. Willful violation of this chapter by any public employee constitutes just cause for suspension without pay or dismissal of the public employee."

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Taxes.

 

The report was adopted.

 

 

Nelson from the Committee on Government Operations to which was referred:

 

H. F. No. 950, A bill for an act relating to collective bargaining; authorizing collective bargaining for family child care providers and individual providers of direct support services; creating a Quality Self-Directed Services Workforce; proposing coding for new law in Minnesota Statutes, chapters 179A; 256B.

 

Reported the same back with the following amendments:

 

Page 2, after line 19, insert:

 

"The commissioner of human services may administer section 179A.06, subdivision 6, for the purposes of this section only."

 

Page 2, line 30, delete "been paid for providing child care assistance"

 

Page 2, line 31, delete "services to participants" and insert "had an active registration under chapter 119B"

 

Page 5, delete lines 32 to 35 and insert:

 

"(3) access to training and educational opportunities, including training funds, for individual providers;

 

(4) required orientation programs, including those for newly hired individual providers;

 

(5) access to job opportunities within covered programs, including referral opportunities and practices, through the operation of public registries;

 

(6) access to and dissemination of information in the registry to participants and participants' representatives; and

 

(7) procedures for resolving grievances regarding matters in clauses (1) to (6)."

 

Page 7, line 13, delete "SELF-DIRECTED" and insert "CONSUMER-DIRECTED"

 

Page 8, line 10, delete "Self-Directed" and insert "Consumer-Directed"

 

Page 8, line 11, delete "Self-Directed" and insert "Consumer-Directed"


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1393

Page 8, delete lines 17 to 19 and insert:

 

"(1) one parent or legal guardian of a minor who is a current recipient of direct support services in covered programs;

 

(2) six current recipients of direct support services in covered programs, including:

 

(i) at least one current recipient of direct support services through consumer-directed community supports; and

 

(ii) two current recipients of direct support services who are adults with a legal guardian, who may participate with the assistance of their guardian or other support person of their choice; and"

 

Page 8, after line 22, insert:

 

"The membership of the council shall be geographically representative of the participants in covered programs and reflect the diversity of direct support service participants with respect to race, age, and disability. No member, other than the chair, shall be an employee of the Department of Human Services or the Department of Management and Budget and no member shall be an individual provider."

 

Page 8, line 26, after the period, insert "Members shall also be reimbursed for reasonable and necessary travel and personal assistance services expenses that allow for performing council duties and attending authorized meetings."

 

Page 8, line 33, delete subdivision 7 and insert:

 

"Subd. 7. Meetings. (a) Notwithstanding section 13D.01, the Quality Consumer-Directed Services Workforce Council may conduct a meeting of its members by telephone or other electronic means so long as the following conditions are met:

 

(1) all members of the council participating in the meeting, wherever their physical location, can hear one another and can hear all discussion and testimony;

 

(2) members of the public present at the regular meeting location of the council can hear all discussion and all votes of members of the council and participate in testimony;

 

(3) at least one member of the council is physically present at the regular meeting location;

 

(4) all votes are conducted by roll call, so each member's vote on each issue can be identified and recorded; and

 

(5) accommodations are made for members with communication barriers so that all members are able to actively participate.

 

(b) Each member of the council participating in a meeting by telephone or other electronic means is considered present at the meeting for purposes of determining a quorum and participating in all proceedings.

 

(c) If telephone or another electronic means is used to conduct a meeting, the council, to the extent practical, shall allow a person to monitor the meeting electronically from a remote location. The council may require the person making such a connection to pay for documented marginal costs that the council incurs as a result of the additional connection.

 

(d) If telephone or another electronic means is used to conduct a regular, special, or emergency meeting, the council shall provide notice of the regular meeting location, of the fact that some members may participate by electronic means, and of the provisions of paragraph (c). The timing and method of providing notice is governed by section 13D.04."


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1394

Page 10, line 8, after "registries" insert "of individuals who have consented to be included"

 

Amend the title as follows:

 

Page 1, line 4, delete "Self-Directed" and insert "Consumer-Directed"

 

 

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Health and Human Services Finance.

 

 

A roll call was requested and properly seconded on the adoption of the report from the Committee on Government Operations relating to H. F. No. 950.

 

 

The Speaker called Hortman to the Chair.

 

 

POINT OF ORDER

 

Daudt raised a point of order pursuant to section 616 of "Mason's Manual of Legislative Procedure," relating to Proposing Amendments to Bills. Speaker pro tempore Hortman ruled the point of order not well taken.

 

 

Savick was excused for the remainder of today's session.

 

 

CALL OF THE HOUSE

 

On the motion of Daudt and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

 


Abeler

Albright

Allen

Anderson, M.

Anderson, P.

Anderson, S.

Barrett

Beard

Benson, J.

Benson, M.

Bernardy

Bly

Brynaert

Carlson

Clark

Cornish

Daudt

Davids

Davnie

Dean, M.

Dehn, R.

Dettmer

Dorholt

Drazkowski

Erhardt

Erickson, R.

Erickson, S.

Fabian

Falk

Faust

Fischer

FitzSimmons

Franson

Freiberg

Fritz

Garofalo

Green

Gruenhagen

Gunther

Halverson

Hamilton

Hansen

Hausman

Hertaus

Hilstrom

Holberg

Hoppe

Hortman

Howe

Huntley

Isaacson

Johnson, B.

Johnson, C.

Johnson, S.

Kahn

Kelly

Kieffer

Kiel

Kresha

Laine

Leidiger

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Lohmer

Loon

Mahoney

Mariani

Marquart

Masin

McNamar

McNamara

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Myhra

Nelson

Newberger

Newton

Nornes

Norton

O'Driscoll

O'Neill

Paymar

Pelowski

Peppin

Persell

Petersburg

Poppe

Pugh

Quam

Radinovich

Rosenthal

Runbeck

Sanders

Sawatzky

Schoen

Schomacker

Scott

Selcer

Simon

Simonson

Sundin

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wagenius

Ward, J.A.

Ward, J.E.

Wills

Winkler

Woodard

Yarusso

Zerwas

Spk. Thissen


 

Murphy, E., moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1395

The Speaker resumed the Chair.

 

 

The question recurred on the adoption of the report from the Committee on Government Operations relating to H. F. No. 950 and the roll was called. There were 65 yeas and 61 nays as follows:

 

Those who voted in the affirmative were:

 


Allen

Atkins

Benson, J.

Bernardy

Bly

Brynaert

Carlson

Clark

Davnie

Dehn, R.

Dorholt

Erhardt

Erickson, R.

Falk

Faust

Fischer

Freiberg

Fritz

Halverson

Hansen

Hausman

Hilstrom

Hortman

Huntley

Isaacson

Johnson, C.

Johnson, S.

Kahn

Laine

Lenczewski

Lesch

Liebling

Lien

Lillie

Loeffler

Mahoney

Mariani

Marquart

Masin

Melin

Metsa

Moran

Morgan

Mullery

Murphy, E.

Murphy, M.

Nelson

Newton

Paymar

Pelowski

Persell

Poppe

Radinovich

Sawatzky

Schoen

Selcer

Simon

Simonson

Sundin

Wagenius

Ward, J.A.

Ward, J.E.

Winkler

Yarusso

Spk. Thissen


 

Those who voted in the negative were:

 


Abeler

Albright

Anderson, M.

Anderson, P.

Anderson, S.

Barrett

Beard

Benson, M.

Cornish

Daudt

Davids

Dean, M.

Dettmer

Drazkowski

Erickson, S.

Fabian

FitzSimmons

Franson

Garofalo

Green

Gruenhagen

Gunther

Hamilton

Hertaus

Holberg

Hoppe

Howe

Johnson, B.

Kelly

Kieffer

Kiel

Kresha

Leidiger

Lohmer

Loon

McDonald

McNamar

McNamara

Myhra

Newberger

Nornes

Norton

O'Driscoll

O'Neill

Peppin

Petersburg

Pugh

Quam

Rosenthal

Runbeck

Sanders

Schomacker

Scott

Swedzinski

Theis

Torkelson

Uglem

Urdahl

Wills

Woodard

Zerwas


 

 

The report from the Committee on Government Operations relating to H. F. No. 950 was adopted.

 

 

Lesch from the Committee on Civil Law to which was referred:

 

H. F. No. 972, A bill for an act relating to legislative enactments; correcting erroneous, ambiguous, and omitted text and obsolete references; removing redundant, conflicting, and superseded provisions; making miscellaneous corrections to laws, statutes, and rules; amending Minnesota Statutes 2012, sections 13.08, subdivision 4; 13.3806, by adding a subdivision; 13.383, subdivision 11a; 13.461, subdivision 2; 13.7191, subdivision 14; 13.7905, by adding a subdivision; 13.7931, by adding a subdivision; 13.82, subdivision 5; 13B.06, subdivisions 4, 7; 13B.07, subdivision 7; 14.57; 14.63; 15A.0815, subdivision 1; 15B.155, subdivision 4; 16A.727; 28.04; 28A.0752, subdivision 1; 28A.085, subdivision 1; 29.21, subdivision 1; 29.22, subdivision 5; 31.02; 31.095; 31.15; 31.51, subdivision 1; 31.56, subdivision 1; 31.59, subdivision 1; 31.632; 31.671; 82.67, subdivision 1; 116.182, subdivision 5; 124D.111, subdivision 1; 126C.05, subdivision 15; 144.10; 144.125, subdivision 7; 144.56, subdivision 2; 148.65, subdivision 4; 148.741; 148B.591; 148D.061, subdivision 1; 150A.06, subdivision 2c; 169.011, by adding a subdivision; 216B.16, subdivision 6b; 216B.164, subdivision 9; 232.20; 232.21, subdivision 1; 232.24; 243.1606, subdivision 1; 245D.03, subdivision 2; 252.27, subdivision 2a; 256B.055, subdivision 1; 256B.0595, subdivision 4; 256J.21, subdivision 2; 256J.24, subdivision 3; 257.0755, subdivision 3; 257.0769, subdivision 1; 259.22, subdivision 4; 259.35, subdivision 1; 259.85, subdivision 1; 260C.007, subdivisions 6, 8; 260C.178, subdivision 1;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1396

260C.503, subdivision 2; 272.488, subdivision 2; 275.066; 297E.021, subdivision 4; 299A.642, subdivision 4; 299A.78, subdivision 1; 299L.02, by adding a subdivision; 308A.931, subdivision 2; 336.9-313; 360.046, subdivision 1; 383A.13, subdivision 4; 390.32, subdivision 9; 463.04; 465.05; 469.169, subdivisions 12, 14, 15, 16, 17, 18; 469.1763, subdivision 2; 471.982, subdivision 3; 473J.14; 504B.285, subdivision 1c; 518B.02, subdivision 3; 524.3-803; 580.041, subdivision 2a; 609.233, subdivision 1a; 609B.445; 611A.02, subdivisions 2, 3; 611A.201, subdivisions 1, 2, 5; 611A.37, subdivisions 2, 3; 611A.373; 611A.46; 611A.77, subdivisions 1, 2, 3; 626.556, subdivision 2; 626.9517, subdivision 1; 629.341, subdivision 4; Laws 2010, chapter 375, section 11; Laws 2012, chapter 199, section 6; Laws 2012, chapter 293, section 13, subdivision 3; repealing Minnesota Statutes 2012, sections 2.031, subdivision 2; 2.444; 2.484; 13.717, subdivisions 6, 7; 260C.301, subdivision 3; 325E.3161; 473.618; Laws 2007, chapter 85, section 3; Laws 2012, chapter 216, article 9, section 4; Minnesota Rules, part 7200.0100, subpart 3a.

 

Reported the same back with the following amendments:

 

Page 8, after line 11, insert:

 

"Sec. 11. Minnesota Statutes 2012, section 16A.965, subdivision 2, is amended to read:

 

Subd. 2. Authorization to issue appropriation bonds. (a) Subject to the limitations of this subdivision, the commissioner may sell and issue appropriation bonds of the state under this section for public purposes as provided by law, including, in particular, the financing of all or a portion of the acquisition, construction, improving, and equipping of the stadium project of the Minnesota Sports Facilities Authority as provided by chapter 473J. Proceeds of the appropriation bonds must be credited to a special appropriation stadium bond proceeds fund in the state treasury. Net income from investment of the proceeds, as estimated by the commissioner, must be credited to the special appropriation stadium bond proceeds fund.

 

(b) Appropriation bonds may be sold and issued in amounts that, in the opinion of the commissioner, are necessary to provide sufficient funds, not to exceed $498,000,000 net of costs of issuance, revenue generated under section 16A.6455 297E.021, and allocated by the commissioner of management and budget for this purpose and costs of credit enhancement for achieving the purposes authorized as provided under paragraph (a), and pay debt service including capitalized interest, pay costs of issuance, make deposits to reserve funds, pay the costs of credit enhancement, or make payments under other agreements entered into under paragraph (d); provided, however, that appropriation bonds issued and unpaid shall not exceed $600,000,000 in principal amount, excluding refunding bonds sold and issued under subdivision 4.

 

(c) Appropriation bonds may be issued from time to time in one or more series on the terms and conditions the commissioner determines to be in the best interests of the state, but the term on any series of appropriation bonds may not exceed 30 years. The appropriation bonds of each issue and series thereof shall be dated and bear interest, and may be includable in or excludable from the gross income of the owners for federal income tax purposes.

 

(d) At the time of, or in anticipation of, issuing the appropriation bonds, and at any time thereafter, so long as the appropriation bonds are outstanding, the commissioner may enter into agreements and ancillary arrangements relating to the appropriation bonds, including but not limited to trust indentures, grant agreements, lease or use agreements, operating agreements, management agreements, liquidity facilities, remarketing or dealer agreements, letter of credit agreements, insurance policies, guaranty agreements, reimbursement agreements, indexing agreements, or interest exchange agreements. Any payments made or received according to the agreement or ancillary arrangement shall be made from or deposited as provided in the agreement or ancillary arrangement. The determination of the commissioner included in an interest exchange agreement that the agreement relates to an appropriation bond shall be conclusive.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1397

(e) The commissioner may enter into written agreements or contracts relating to the continuing disclosure of information necessary to comply with, or facilitate the issuance of appropriation bonds in accordance with federal securities laws, rules, and regulations, including Securities and Exchange Commission rules and regulations in Code of Federal Regulations, title 17, section 240.15c 2-12. An agreement may be in the form of covenants with purchasers and holders of appropriation bonds set forth in the order or resolution authorizing the issuance of the appropriation bonds, or a separate document authorized by the order or resolution.

 

(f) The appropriation bonds are not subject to chapter 16C."

 

Renumber the sections in sequence and correct the internal references

 

Correct the title numbers accordingly

 

 

With the recommendation that when so amended the bill pass.

 

The report was adopted.

 

 

Atkins from the Committee on Commerce and Consumer Protection Finance and Policy to which was referred:

 

H. F. No. 978, A bill for an act relating to health plan regulation; regulating policy and contract coverages; conforming state law to federal requirements; amending Minnesota Statutes 2012, sections 13.7191, subdivision 12; 43A.23, subdivision 1; 43A.317, subdivision 6; 60A.08, subdivision 15; 62A.011, subdivision 3, by adding subdivisions; 62A.02, by adding a subdivision; 62A.03, subdivision 1; 62A.04, subdivision 2; 62A.047; 62A.049; 62A.136; 62A.149, subdivision 1; 62A.17, subdivisions 2, 6; 62A.21, subdivision 2b; 62A.28, subdivision 2; 62A.302; 62A.615; 62A.65, subdivisions 3, 5, 6, 7; 62C.14, subdivision 5; 62C.142, subdivision 2; 62D.02, by adding a subdivision; 62D.07, subdivision 3; 62D.095; 62D.12, by adding a subdivision; 62D.181, subdivision 7; 62D.30, subdivision 8; 62E.02, by adding a subdivision; 62E.04, subdivision 4; 62E.06, subdivision 1; 62E.09; 62E.10, subdivision 7; 62H.04; 62L.02, subdivisions 11, 14a, 26, by adding a subdivision; 62L.03, subdivisions 1, 3, 4, 6; 62L.045, subdivisions 2, 4; 62L.05, subdivision 10; 62L.06; 62L.08; 62L.12, subdivision 2; 62M.05, subdivision 3a; 62M.06, subdivision 1; 62Q.01, by adding subdivisions; 62Q.021; 62Q.17, subdivision 6; 62Q.18, by adding a subdivision; 62Q.19, by adding a subdivision; 62Q.23; 62Q.43, subdivision 2; 62Q.47; 62Q.52; 62Q.55; 62Q.68, subdivision 1; 62Q.69, subdivision 3; 62Q.70, subdivisions 1, 2; 62Q.71; 62Q.73; 62Q.75, subdivision 1; 62Q.80, subdivision 2; 72A.20, subdivision 35; 471.61, subdivision 1a; proposing coding for new law in Minnesota Statutes, chapters 62A; 62Q; 72A; repealing Minnesota Statutes 2012, sections 62A.65, subdivision 6; 62E.02, subdivision 7; 62E.16; 62E.20; 62L.02, subdivisions 4, 18, 19, 23; 62L.05, subdivisions 1, 2, 3, 4, 4a, 5, 6, 7, 11, 12, 13; 62L.081; 62L.10; 62Q.37, subdivision 5.

 

Reported the same back with the following amendments:

 

Delete everything after the enacting clause and insert:

 

"Section 1. Minnesota Statutes 2012, section 43A.23, subdivision 1, is amended to read:

 

Subdivision 1. General. (a) The commissioner is authorized to request proposals or to negotiate and to enter into contracts with parties which in the judgment of the commissioner are best qualified to provide service to the benefit plans. Contracts entered into are not subject to the requirements of sections 16C.16 to 16C.19. The commissioner may negotiate premium rates and coverage. The commissioner shall consider the cost of the plans, conversion options relating to the contracts, service capabilities, character, financial position, and reputation of the carriers, and any other factors which the commissioner deems appropriate. Each benefit contract must be for a


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1398

uniform term of at least one year, but may be made automatically renewable from term to term in the absence of notice of termination by either party. A carrier licensed under chapter 62A is exempt from the taxes imposed by chapter 297I on premiums paid to it by the state.

 

(b) All self-insured hospital and medical service products must comply with coverage mandates, data reporting, and consumer protection requirements applicable to the licensed carrier administering the product, had the product been insured, including chapters 62J, 62M, and 62Q. Any self-insured products that limit coverage to a network of providers or provide different levels of coverage between network and nonnetwork providers shall comply with section 62D.123 and geographic access standards for health maintenance organizations adopted by the commissioner of health in rule under chapter 62D.

 

(c) Notwithstanding paragraph (b), a self-insured hospital and medical product offered under sections 43A.22 to 43A.30 is not required to extend dependent coverage to an eligible employee's unmarried child under the age of 25 to the full extent required under chapters 62A and 62L. Dependent child coverage must, at a minimum, extend to an eligible employee's unmarried dependent child who is under the age of 19 or an unmarried child under the age of 25 who is a full-time student. A person who is at least 19 years of age but who is under the age of 25 and who is not a full-time student must be permitted to be enrolled as a dependent of an eligible employee until age 25 if the person: to the limiting age as defined in section 62Q.01, subdivision 9, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required in sections 62A.042 and 62A.302.

 

(1) was a full-time student immediately prior to being ordered into active military service, as defined in section 190.05, subdivision 5b or 5c;

 

(2) has been separated or discharged from active military service; and

 

(3) would be eligible to enroll as a dependent of an eligible employee, except that the person is not a full-time student.

 

The definition of "full-time student" for purposes of this paragraph includes any student who by reason of illness, injury, or physical or mental disability as documented by a physician is unable to carry what the educational institution considers a full-time course load so long as the student's course load is at least 60 percent of what otherwise is considered by the institution to be a full-time course load. Any notice regarding termination of coverage due to attainment of the limiting age must include information about this definition of "full-time student."

 

(d) Beginning January 1, 2010, the health insurance benefit plans offered in the commissioner's plan under section 43A.18, subdivision 2, and the managerial plan under section 43A.18, subdivision 3, must include an option for a health plan that is compatible with the definition of a high-deductible health plan in section 223 of the United States Internal Revenue Code.

 

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

 

Sec. 2. Minnesota Statutes 2012, section 43A.317, subdivision 6, is amended to read:

 

Subd. 6. Individual eligibility. (a) Procedures. The commissioner shall establish procedures for eligible employees and other eligible individuals to apply for coverage through the program.

 

(b) Employees. An employer shall determine when it applies to the program the criteria its employees must meet to be eligible for coverage under its plan. An employer may subsequently change the criteria annually or at other times with approval of the commissioner. The criteria must provide that new employees become eligible for coverage after a probationary period of at least 30 days, but no more than 90 days.

 

(c) Other individuals. An employer may elect to cover under its plan:


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1399

(1) the spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision 9, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent grandchildren of a covered employee to the extent required in sections 62A.042 and 62A.302;

 

(2) a retiree who is eligible to receive a pension or annuity from the employer and a covered retiree's spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision 9, disabled children to the extent required in sections 62A.14 and 62A.141, and dependent grandchildren to the extent required in sections 62A.042 and 62A.302;

 

(3) the surviving spouse, dependent children to the limiting age as defined in section 62Q.01, subdivision 9, disabled children, and dependent grandchildren of a deceased employee or retiree, if the spouse, children, or grandchildren were covered at the time of the death;

 

(4) a covered employee who becomes disabled, as provided in sections 62A.147 and 62A.148; or

 

(5) any other categories of individuals for whom group coverage is required by state or federal law.

 

An employer shall determine when it applies to the program the criteria individuals in these categories must meet to be eligible for coverage. An employer may subsequently change the criteria annually, or at other times with approval of the commissioner. The criteria for dependent children to the limiting age as defined in section 62Q.01, subdivision 9, disabled children, and dependent grandchildren may be no more inclusive than the criteria under section 43A.18, subdivision 2. This paragraph shall not be interpreted as relieving the program from compliance with any federal and state continuation of coverage requirements.

 

(d) Waiver and late entrance. An eligible individual may waive coverage at the time the employer joins the program or when coverage first becomes available. The commissioner may establish a preexisting condition exclusion of not more than 18 months for late entrants as defined in section 62L.02, subdivision 19.

 

(e) Continuation coverage. The program shall provide all continuation coverage required by state and federal law.

 

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

 

Sec. 3. Minnesota Statutes 2012, section 60A.08, subdivision 15, is amended to read:

 

Subd. 15. Classification of insurance filings data. (a) All forms, rates, and related information filed with the commissioner under section 61A.02 shall be nonpublic data until the filing becomes effective.

 

(b) All forms, rates, and related information filed with the commissioner under section 62A.02 shall be nonpublic data until the filing becomes effective.

 

(c) All forms, rates, and related information filed with the commissioner under section 62C.14, subdivision 10, shall be nonpublic data until the filing becomes effective.

 

(d) All forms, rates, and related information filed with the commissioner under section 70A.06 shall be nonpublic data until the filing becomes effective.

 

(e) All forms, rates, and related information filed with the commissioner under section 79.56 shall be nonpublic data until the filing becomes effective.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1400

(f) Notwithstanding paragraphs (b) and (c), for all rate increases subject to review under section 2794 of the Public Health Services Act and any amendments to, or regulations, or guidance issued under the act that are filed with the commissioner on or after September 1, 2011, the commissioner:

 

(1) may acknowledge receipt of the information;

 

(2) may acknowledge that the corresponding rate filing is pending review;

 

(3) must provide public access from the Department of Commerce's Web site to parts I and II of the Preliminary Justifications of the rate increases subject to review; and

 

(4) must provide notice to the public on the Department of Commerce's Web site of the review of the proposed rate, which must include a statement that the public has 30 calendar days to submit written comments to the commissioner on the rate filing subject to review.

 

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

 

Sec. 4. Minnesota Statutes 2012, section 62A.011, is amended by adding a subdivision to read:

 

Subd. 1a. Affordable Care Act. "Affordable Care Act" means the federal Patient Protection and Affordable Care Act, Public Law 111-148, as amended, including the federal Health Care and Education Reconciliation Act of 2010, Public Law 111-152, and any amendments to, or regulations or guidance issued under these acts.

 

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

 

Sec. 5. Minnesota Statutes 2012, section 62A.011, is amended by adding a subdivision to read:

 

Subd. 1b. Grandfathered plan. "Grandfathered plan" means a health plan in which an individual was enrolled on March 23, 2010, for as long as it maintains that status in accordance with the Affordable Care Act. Unless otherwise specified, grandfathered plans includes both individual and group health plans.

 

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

 

Sec. 6. Minnesota Statutes 2012, section 62A.011, is amended by adding a subdivision to read:

 

Subd. 1c. Group health plan. "Group health plan" means a policy or certificate issued to an employer or an employee organization that is both:

 

(1) a health plan as defined in subdivision 3; and

 

(2) an employee welfare benefit plan as defined in the Employee Retirement Income Security Act of 1974, United States Code, title 29, section 1002, if the plan provides payment for medical care to employees, including both current and former employees, or their dependents, directly or through insurance, reimbursement, or otherwise.

 

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

 

Sec. 7. Minnesota Statutes 2012, section 62A.011, subdivision 3, is amended to read:

 

Subd. 3. Health plan. "Health plan" means a policy or certificate of accident and sickness insurance as defined in section 62A.01 offered by an insurance company licensed under chapter 60A; a subscriber contract or certificate offered by a nonprofit health service plan corporation operating under chapter 62C; a health maintenance contract or


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1401

certificate offered by a health maintenance organization operating under chapter 62D; a health benefit certificate offered by a fraternal benefit society operating under chapter 64B; or health coverage offered by a joint self-insurance employee health plan operating under chapter 62H. Health plan means individual and group coverage, unless otherwise specified. Health plan does not include coverage that is:

 

(1) limited to disability or income protection coverage;

 

(2) automobile medical payment coverage;

 

(3) supplemental liability insurance, including general liability insurance and automobile liability insurance, or coverage issued as a supplement to liability insurance;

 

(4) designed solely to provide payments on a per diem, fixed indemnity, or non-expense-incurred basis, including coverage only for a specified disease or illness or hospital indemnity or other fixed indemnity insurance, if the benefits are provided under a separate policy, certificate, or contract for insurance; there is no coordination between the provision of benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor; and the benefits are paid with respect to an event without regard to whether benefits are provided with respect to such an event under any group health plan maintained by the same plan sponsor;

 

(5) credit accident and health insurance as defined in section 62B.02;

 

(6) designed solely to provide hearing, dental, or vision care;

 

(7) blanket accident and sickness insurance as defined in section 62A.11;

 

(8) accident-only coverage;

 

(9) a long-term care policy as defined in section 62A.46 or 62S.01;

 

(10) issued as a supplement to Medicare, as defined in sections 62A.3099 to 62A.44, or policies, contracts, or certificates that supplement Medicare issued by health maintenance organizations or those policies, contracts, or certificates governed by section 1833 or 1876 of the federal Social Security Act, United States Code, title 42, section 1395, et seq., as amended;

 

(11) workers' compensation insurance; or

 

(12) issued solely as a companion to a health maintenance contract as described in section 62D.12, subdivision 1a, so long as the health maintenance contract meets the definition of a health plan.;

 

(13) coverage for on-site medical clinics; or

 

(14) coverage supplemental to the coverage provided under United States Code, title 10, chapter 55, Civilian Health and Medical Program of the Uniformed Services (CHAMPUS).

 

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

 

Sec. 8. Minnesota Statutes 2012, section 62A.011, is amended by adding a subdivision to read:

 

Subd. 4. Individual health plan. "Individual health plan" means a health plan as defined in subdivision 3 that is offered to individuals in the individual market as defined in subdivision 5, but does not mean short-term coverage as defined in section 62A.65, subdivision 7. For purposes of this chapter, a health carrier shall not be deemed to be offering individual health plan coverage solely because the carrier offers a conversion policy in connection with a group health plan.

 

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


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1402

Sec. 9. Minnesota Statutes 2012, section 62A.011, is amended by adding a subdivision to read:

 

Subd. 5. Individual market. "Individual market" means the market for health insurance coverage offered to individuals other than in connection with a group health plan.

 

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

 

Sec. 10. Minnesota Statutes 2012, section 62A.011, is amended by adding a subdivision to read:

 

Subd. 6. Minnesota Insurance Marketplace. "Minnesota Insurance Marketplace" means the Minnesota Insurance Marketplace as defined in section 62V.02, if enacted, in 2013 H. F. No. 5/S. F. No. 1.

 

Sec. 11. Minnesota Statutes 2012, section 62A.011, is amended by adding a subdivision to read:

 

Subd. 7. Qualified health plan. "Qualified health plan" means a health plan that meets the definition in section 1301(a) of the Affordable Care Act and has been certified by the Board of the Minnesota Insurance Marketplace in accordance with chapter 62V if enacted in 2013 H. F. No. 5/S. F. No. 1 to be offered through the Minnesota Insurance Marketplace.

 

Sec. 12. Minnesota Statutes 2012, section 62A.02, is amended by adding a subdivision to read:

 

Subd. 8. Filing by health carriers for purposes of complying with the certification requirements of the Minnesota Insurance Marketplace. No qualified health plan shall be offered through the Minnesota Insurance Marketplace until its form and the premium rates pertaining to the form have been approved by the commissioner of commerce or health, as appropriate, and the health plan has been determined to comply with the certification requirements of the Minnesota Insurance Marketplace in accordance with an agreement between the commissioners of commerce and health and the Minnesota Insurance Marketplace.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 13. Minnesota Statutes 2012, section 62A.03, subdivision 1, is amended to read:

 

Subdivision 1. Conditions. No policy of individual accident and sickness insurance may be delivered or issued for delivery to a person in this state unless:

 

(1) Premium. The entire money and other considerations therefor are expressed therein.

 

(2) Time effective. The time at which the insurance takes effect and terminates is expressed therein.

 

(3) One person. It purports to insure only one person, except that a policy may insure, originally or by subsequent amendment, upon the application of an adult member of a family deemed the policyholder, any two or more eligible members of that family, including:

 

(a) husband,

 

(b) wife,

 

(c) dependent children as described in sections 62A.302 and 62A.3021, or

 

(d) any children under a specified age of 19 years or less, or

 

(e) (d) any other person dependent upon the policyholder.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1403

(4) Appearance. The style, arrangement, and overall appearance of the policy give no undue prominence to any portion of the text and every printed portion of the text of the policy and of any endorsements or attached papers is plainly printed in light-face type of a style in general use. The type size must be uniform and not less than ten point with a lowercase unspaced alphabet length not less than 120 point. The "text" includes all printed matter except the name and address of the insurer, name or title of the policy, the brief description, if any, the reference to renewal or cancellation by a separate statement, if any, and the captions and subcaptions.

 

(5) Description of policy. The policy, on the first page, indicates or refers to its provisions for renewal or cancellation either in the brief description, if any, or by a separate statement printed in type not smaller than the type used for captions or a separate provision bearing a caption which accurately describes the renewability or cancelability of the policy.

 

(6) Exceptions in policy. The exceptions and reductions of indemnity are set forth in the policy and, except those which are set forth in section 62A.04, printed, at the insurer's option, either with the benefit provision to which they apply, or under an appropriate caption such as "EXCEPTIONS" or "EXCEPTIONS AND REDUCTIONS." However, if an exception or reduction specifically applies only to a particular benefit of the policy, a statement of the exception or reduction must be included with the benefit provision to which it applies.

 

(7) Form number. Each form, including riders and endorsements, is identified by a form number in the lower left hand corner of the first page thereof.

 

(8) No incorporation by reference. It contains no provision purporting to make any portion of the charter, rules, constitution, or bylaws of the insurer a part of the policy unless the portion is set forth in full in the policy, except in the case of the incorporation of, or reference to, a statement of rates, classification of risks, or short rate table filed with the commissioner.

 

(9) Medical benefits. If the policy contains a provision for medical expense benefits, the term "medical benefits" or similar terms as used therein includes treatments by all licensed practitioners of the healing arts unless, subject to the qualifications contained in clause (10), the policy specifically states the practitioners whose services are covered.

 

(10) Osteopath, optometrist, chiropractor, or registered nurse services. With respect to any policy of individual accident and sickness insurance issued or entered into subsequent to August 1, 1974, notwithstanding the provisions of the policy, if it contains a provision providing for reimbursement for any service which is in the lawful scope of practice of a duly licensed osteopath, optometrist, chiropractor, or registered nurse meeting the requirements of section 62A.15, subdivision 3a, the person entitled to benefits or person performing services under the policy is entitled to reimbursement on an equal basis for the service, whether the service is performed by a physician, osteopath, optometrist, chiropractor, or registered nurse meeting the requirements of section 62A.15, subdivision 3a, licensed under the laws of this state.

 

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

 

Sec. 14. Minnesota Statutes 2012, section 62A.04, subdivision 2, is amended to read:

 

Subd. 2. Required provisions. Except as provided in subdivision 4 each such policy delivered or issued for delivery to any person in this state shall contain the provisions specified in this subdivision in the words in which the same appear in this section. The insurer may, at its option, substitute for one or more of such provisions corresponding provisions of different wording approved by the commissioner which are in each instance not less favorable in any respect to the insured or the beneficiary. Such provisions shall be preceded individually by the caption appearing in this subdivision or, at the option of the insurer, by such appropriate individual or group captions or subcaptions as the commissioner may approve.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1404

(1) A provision as follows:

 

ENTIRE CONTRACT; CHANGES: This policy, including the endorsements and the attached papers, if any, constitutes the entire contract of insurance. No change in this policy shall be valid until approved by an executive officer of the insurer and unless such approval be endorsed hereon or attached hereto. No agent has authority to change this policy or to waive any of its provisions.

 

(2) A provision as follows:

 

TIME LIMIT ON CERTAIN DEFENSES: (a) After two years from the date of issue of this policy no misstatements, except fraudulent misstatements, made by the applicant in the application for such policy shall be used to void the policy or to deny a claim for loss incurred or disability (as defined in the policy) commencing after the expiration of such two year period.

 

The foregoing policy provision shall not be so construed as to affect any legal requirement for avoidance of a policy or denial of a claim during such initial two year period, nor to limit the application of clauses (1), (2), (3), (4) and (5), in the event of misstatement with respect to age or occupation or other insurance. A policy which the insured has the right to continue in force subject to its terms by the timely payment of premium (1) until at least age 50 or, (2) in the case of a policy issued after age 44, for at least five years from its date of issue, may contain in lieu of the foregoing the following provisions (from which the clause in parentheses may be omitted at the insurer's option) under the caption "INCONTESTABLE":

 

After this policy has been in force for a period of two years during the lifetime of the insured (excluding any period during which the insured is disabled), it shall become incontestable as to the statements contained in the application.

 

(b) No claim for loss incurred or disability (as defined in the policy) commencing after two years from the date of issue of this policy shall be reduced or denied on the ground that a disease or physical condition not excluded from coverage by name or specific description effective on the date of loss had existed prior to the effective date of coverage of this policy.

 

(3) (a) Except as required for health plans offered through the Minnesota Insurance Marketplace, a provision as follows:

 

GRACE PERIOD: A grace period of ..... (insert a number not less than "7" for weekly premium policies, "10" for monthly premium policies and "31" for all other policies) days will be granted for the payment of each premium falling due after the first premium, during which grace period the policy shall continue in force.

 

A policy which contains a cancellation provision may add, at the end of the above provision,

 

subject to the right of the insurer to cancel in accordance with the cancellation provision hereof.

 

A policy in which the insurer reserves the right to refuse any renewal shall have, at the beginning of the above provision,

 

Unless not less than five days prior to the premium due date the insurer has delivered to the insured or has mailed to the insured's last address as shown by the records of the insurer written notice of its intention not to renew this policy beyond the period for which the premium has been accepted.

 

(b) All qualified health plans offered through the Minnesota Insurance Marketplace must comply with the Affordable Care Act by including a grace period provision no less restrictive than the grace period required by the Affordable Care Act.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1405

(4) A provision as follows:

 

REINSTATEMENT: If any renewal premium be not paid within the time granted the insured for payment, a subsequent acceptance of premium by the insurer or by any agent duly authorized by the insurer to accept such premium, without requiring in connection therewith an application for reinstatement, shall reinstate the policy. If the insurer or such agent requires an application for reinstatement and issues a conditional receipt for the premium tendered, the policy will be reinstated upon approval of such application by the insurer or, lacking such approval, upon the forty-fifth day following the date of such conditional receipt unless the insurer has previously notified the insured in writing of its disapproval of such application. For health plans described in section 62A.011, subdivision 3, clause (10), an insurer must accept payment of a renewal premium and reinstate the policy, if the insured applies for reinstatement no later than 60 days after the due date for the premium payment, unless:

 

(1) the insured has in the interim left the state or the insurer's service area; or

 

(2) the insured has applied for reinstatement on two or more prior occasions.

 

The reinstated policy shall cover only loss resulting from such accidental injury as may be sustained after the date of reinstatement and loss due to such sickness as may begin more than ten days after such date. In all other respects the insured and insurer shall have the same rights thereunder as they had under the policy immediately before the due date of the defaulted premium, subject to any provisions endorsed hereon or attached hereto in connection with the reinstatement. Any premium accepted in connection with a reinstatement shall be applied to a period for which premium has not been previously paid, but not to any period more than 60 days prior to the date of reinstatement. The last sentence of the above provision may be omitted from any policy which the insured has the right to continue in force subject to its terms by the timely payment of premiums (1) until at least age 50, or, (2) in the case of a policy issued after age 44, for at least five years from its date of issue.

 

(5) A provision as follows:

 

NOTICE OF CLAIM: Written notice of claim must be given to the insurer within 20 days after the occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible. Notice given by or on behalf of the insured or the beneficiary to the insurer at ..... (insert the location of such office as the insurer may designate for the purpose), or to any authorized agent of the insurer, with information sufficient to identify the insured, shall be deemed notice to the insurer.

 

In a policy providing a loss-of-time benefit which may be payable for at least two years, an insurer may at its option insert the following between the first and second sentences of the above provision:

 

Subject to the qualifications set forth below, if the insured suffers loss of time on account of disability for which indemnity may be payable for at least two years, the insured shall, at least once in every six months after having given notice of claim, give to the insurer notice of continuance of said disability, except in the event of legal incapacity. The period of six months following any filing of proof by the insured or any payment by the insurer on account of such claim or any denial of liability in whole or in part by the insurer shall be excluded in applying this provision. Delay in the giving of such notice shall not impair the insured's right to any indemnity which would otherwise have accrued during the period of six months preceding the date on which such notice is actually given.

 

(6) A provision as follows:

 

CLAIM FORMS: The insurer, upon receipt of a notice of claim, will furnish to the claimant such forms as are usually furnished by it for filing proofs of loss. If such forms are not furnished within 15 days after the giving of such notice the claimant shall be deemed to have complied with the requirements of this policy as to proof of loss upon submitting, within the time fixed in the policy for filing proofs of loss, written proof covering the occurrence, the character and the extent of the loss for which claim is made.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1406

(7) A provision as follows:

 

PROOFS OF LOSS: Written proof of loss must be furnished to the insurer at its said office in case of claim for loss for which this policy provides any periodic payment contingent upon continuing loss within 90 days after the termination of the period for which the insurer is liable and in case of claim for any other loss within 90 days after the date of such loss. Failure to furnish such proof within the time required shall not invalidate nor reduce any claim if it was not reasonably possible to give proof within such time, provided such proof is furnished as soon as reasonably possible and in no event, except in the absence of legal capacity, later than one year from the time proof is otherwise required.

 

(8) A provision as follows:

 

TIME OF PAYMENT OF CLAIMS: Indemnities payable under this policy for any loss other than loss for which this policy provides periodic payment will be paid immediately upon receipt of due written proof of such loss. Subject to due written proof of loss, all accrued indemnities for loss for which this policy provides periodic payment will be paid ..... (insert period for payment which must not be less frequently than monthly) and any balance remaining unpaid upon the termination of liability will be paid immediately upon receipt of due written proof.

 

(9) A provision as follows:

 

PAYMENT OF CLAIMS: Indemnity for loss of life will be payable in accordance with the beneficiary designation and the provisions respecting such payment which may be prescribed herein and effective at the time of payment. If no such designation or provision is then effective, such indemnity shall be payable to the estate of the insured. Any other accrued indemnities unpaid at the insured's death may, at the option of the insurer, be paid either to such beneficiary or to such estate. All other indemnities will be payable to the insured.

 

The following provisions, or either of them, may be included with the foregoing provision at the option of the insurer:

 

If any indemnity of this policy shall be payable to the estate of the insured, or to an insured or beneficiary who is a minor or otherwise not competent to give a valid release, the insurer may pay such indemnity, up to an amount not exceeding $..... (insert an amount which shall not exceed $1,000), to any relative by blood or connection by marriage of the insured or beneficiary who is deemed by the insurer to be equitably entitled thereto. Any payment made by the insurer in good faith pursuant to this provision shall fully discharge the insurer to the extent of such payment.

 

Subject to any written direction of the insured in the application or otherwise all or a portion of any indemnities provided by this policy on account of hospital, nursing, medical, or surgical services may, at the insurer's option and unless the insured requests otherwise in writing not later than the time of filing proofs of such loss, be paid directly to the hospital or person rendering such services; but it is not required that the service be rendered by a particular hospital or person.

 

(10) A provision as follows:

 

PHYSICAL EXAMINATIONS AND AUTOPSY: The insurer at its own expense shall have the right and opportunity to examine the person of the insured when and as often as it may reasonably require during the pendency of a claim hereunder and to make an autopsy in case of death where it is not forbidden by law.

 

(11) A provision as follows:

 

LEGAL ACTIONS: No action at law or in equity shall be brought to recover on this policy prior to the expiration of 60 days after written proof of loss has been furnished in accordance with the requirements of this policy. No such action shall be brought after the expiration of three years after the time written proof of loss is required to be furnished.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1407

(12) A provision as follows:

 

CHANGE OF BENEFICIARY: Unless the insured makes an irrevocable designation of beneficiary, the right to change of beneficiary is reserved to the insured and the consent of the beneficiary or beneficiaries shall not be requisite to surrender or assignment of this policy or to any change of beneficiary or beneficiaries, or to any other changes in this policy. The first clause of this provision, relating to the irrevocable designation of beneficiary, may be omitted at the insurer's option.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 15. Minnesota Statutes 2012, section 62A.047, is amended to read:

 

62A.047 CHILDREN'S HEALTH SUPERVISION SERVICES AND PRENATAL CARE SERVICES.

 

A policy of individual or group health and accident insurance regulated under this chapter, or individual or group subscriber contract regulated under chapter 62C, health maintenance contract regulated under chapter 62D, or health benefit certificate regulated under chapter 64B, issued, renewed, or continued to provide coverage to a Minnesota resident, must provide coverage for child health supervision services and prenatal care services. The policy, contract, or certificate must specifically exempt reasonable and customary charges for child health supervision services and prenatal care services from a deductible, co-payment, or other coinsurance or dollar limitation requirement. Nothing in this section prohibits a health carrier that has a network of providers from imposing a deductible, co-payment, or other coinsurance or dollar limitation requirement for child health supervision services and prenatal care services that are delivered by an out-of-network provider. This section does not prohibit the use of policy waiting periods or preexisting condition limitations for these services. Minimum benefits may be limited to one visit payable to one provider for all of the services provided at each visit cited in this section subject to the schedule set forth in this section. Nothing in this section applies to a policy designed primarily to provide coverage payable on a per diem, fixed indemnity, or non-expense-incurred basis, or a policy that provides only accident coverage. A policy, contract, or certificate described under this section may not apply preexisting condition limitations to individuals under 19 years of age. This section does not apply to individual coverage under a grandfathered plan.

 

"Child health supervision services" means pediatric preventive services, appropriate immunizations, developmental assessments, and laboratory services appropriate to the age of a child from birth to age six, and appropriate immunizations from ages six to 18, as defined by Standards of Child Health Care issued by the American Academy of Pediatrics. Reimbursement must be made for at least five child health supervision visits from birth to 12 months, three child health supervision visits from 12 months to 24 months, once a year from 24 months to 72 months.

 

"Prenatal care services" means the comprehensive package of medical and psychosocial support provided throughout the pregnancy, including risk assessment, serial surveillance, prenatal education, and use of specialized skills and technology, when needed, as defined by Standards for Obstetric-Gynecologic Services issued by the American College of Obstetricians and Gynecologists.

 

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

 

Sec. 16. Minnesota Statutes 2012, section 62A.049, is amended to read:

 

62A.049 LIMITATION ON PREAUTHORIZATIONS; EMERGENCIES.

 

No policy of accident and sickness insurance or group subscriber contract regulated under chapter 62C issued or renewed in this state may contain a provision that makes an insured person ineligible to receive full benefits because of the insured's failure to obtain preauthorization, if that failure occurs because of the need for emergency


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1408

confinement or emergency treatment. The insured or an authorized representative of the insured shall notify the insurer as soon after the beginning of emergency confinement or emergency treatment as reasonably possible. However, to the extent that the insurer suffers actual prejudice caused by the failure to obtain preauthorization, the insured may be denied all or part of the insured's benefits. This provision does not apply to admissions for treatment of chemical dependency and nervous and mental disorders.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 17. Minnesota Statutes 2012, section 62A.136, is amended to read:

 

62A.136 HEARING, DENTAL, AND VISION PLAN COVERAGE.

 

The following provisions do not apply to health plans as defined in section 62A.011, subdivision 3, clause (6), providing hearing, dental, or vision coverage only: sections 62A.041; 62A.0411; 62A.047; 62A.149; 62A.151; 62A.152; 62A.154; 62A.155; 62A.17, subdivision 6; 62A.21, subdivision 2b; 62A.26; 62A.28; 62A.285; 62A.30; 62A.304; and 62A.3093; and 62E.16.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 18. Minnesota Statutes 2012, section 62A.149, subdivision 1, is amended to read:

 

Subdivision 1. Application. The provisions of this section apply to all group policies of accident and health insurance and group subscriber contracts offered by nonprofit health service plan corporations regulated under chapter 62C, and to a plan or policy that is individually underwritten or provided for a specific individual and family members as a nongroup policy unless the individual elects in writing to refuse benefits under this subdivision in exchange for an appropriate reduction in premiums or subscriber charges under the policy or plan, when the policies or subscriber contracts are issued or delivered in Minnesota or provide benefits to Minnesota residents enrolled thereunder.

 

This section does not apply to policies designed primarily to provide coverage payable on a per diem, fixed indemnity or nonexpense incurred basis or policies that provide accident only coverage.

 

Every insurance policy or subscriber contract included within the provisions of this subdivision, upon issuance or renewal, shall provide coverage that complies with the requirements of section 62Q.47, paragraphs (b) and (c), for the treatment of alcoholism, chemical dependency or drug addiction to any Minnesota resident entitled to coverage.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 19. Minnesota Statutes 2012, section 62A.17, subdivision 2, is amended to read:

 

Subd. 2. Responsibility of employee. Every covered employee electing to continue coverage shall pay the former employer, on a monthly basis, the cost of the continued coverage. The policy, contract, or plan must require the group policyholder or contract holder to, upon request, provide the employee with written verification from the insurer of the cost of this coverage promptly at the time of eligibility for this coverage and at any time during the continuation period. If the policy, contract, or health care plan is administered by a trust, every covered employee electing to continue coverage shall pay the trust the cost of continued coverage according to the eligibility rules established by the trust. In no event shall the amount of premium charged exceed 102 percent of the cost to the plan for such period of coverage for similarly situated employees with respect to whom neither termination nor layoff has occurred, without regard to whether such cost is paid by the employer or employee. The employee shall be eligible to continue the coverage until the employee becomes covered under another group health plan, or for a period of 18 months after the termination of or lay off from employment, whichever is shorter. For an individual age 19 or older,


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1409

if the employee becomes covered under another group policy, contract, or health plan and the new group policy, contract, or health plan contains any preexisting condition limitations, the employee may, subject to the 18-month maximum continuation limit, continue coverage with the former employer until the preexisting condition limitations have been satisfied. The new policy, contract, or health plan is primary except as to the preexisting condition. In the case of a newborn child who is a dependent of the employee, the new policy, contract, or health plan is primary upon the date of birth of the child, regardless of which policy, contract, or health plan coverage is deemed primary for the mother of the child.

 

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

 

Sec. 20. Minnesota Statutes 2012, section 62A.17, subdivision 6, is amended to read:

 

Subd. 6. Conversion to individual policy. A group insurance policy that provides posttermination or layoff coverage as required by this section shall also include a provision allowing a covered employee, surviving spouse, or dependent at the expiration of the posttermination or layoff coverage provided by subdivision 2 to obtain from the insurer offering the group policy or group subscriber contract, at the employee's, spouse's, or dependent's option and expense, without further evidence of insurability and without interruption of coverage, an individual policy of insurance or an individual subscriber contract providing at least the minimum benefits of a qualified plan as prescribed by section 62E.06 and the option of a number three qualified plan, a number two qualified plan, and a number one qualified plan as provided by section 62E.06, subdivisions 1 to 3, provided application is made to the insurer within 30 days following notice of the expiration of the continued coverage and upon payment of the appropriate premium. The required conversion contract must treat pregnancy the same as any other covered illness under the conversion contract. A health maintenance contract issued by a health maintenance organization that provides posttermination or layoff coverage as required by this section shall also include a provision allowing a former employee, surviving spouse, or dependent at the expiration of the posttermination or layoff coverage provided in subdivision 2 to obtain from the health maintenance organization, at the former employee's, spouse's, or dependent's option and expense, without further evidence of insurability and without interruption of coverage, an individual health maintenance contract. Effective January 1, 1985, enrollees who have become nonresidents of the health maintenance organization's service area shall be given the option, to be arranged by the health maintenance organization, of a number three qualified plan, a number two qualified plan, or a number one qualified plan as provided by section 62E.06, subdivisions 1 to 3. This option shall be made available at the enrollee's expense, without further evidence of insurability and without interruption of coverage.

 

A policy providing reduced benefits at a reduced premium rate may be accepted by the employee, the spouse, or a dependent in lieu of the optional coverage otherwise required by this subdivision.

 

The An individual policy or contract issued as a conversion policy prior to January 1, 2014, shall be renewable at the option of the individual as long as the individual is not covered under another qualified plan as defined in section 62E.02, subdivision 4. Any revisions in the table of rate for the individual policy shall apply to the covered person's original age at entry and shall apply equally to all similar conversion policies issued by the insurer.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 21. Minnesota Statutes 2012, section 62A.21, subdivision 2b, is amended to read:

 

Subd. 2b. Conversion privilege. Every policy described in subdivision 1 shall contain a provision allowing a former spouse and dependent children of an insured, without providing evidence of insurability, to obtain from the insurer at the expiration of any continuation of coverage required under subdivision 2a or sections 62A.146 and 62A.20, conversion coverage providing at least the minimum benefits of a qualified plan as prescribed by section 62E.06 and the option of a number three qualified plan, a number two qualified plan, a number one qualified plan as provided by section 62E.06, subdivisions 1 to 3, provided application is made to the insurer within 30 days


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1410

following notice of the expiration of the continued coverage and upon payment of the appropriate premium. The An individual policy or contract issued as a conversion policy prior to January 1, 2014 shall be renewable at the option of the covered person as long as the covered person is not covered under another qualified plan as defined in section 62E.02, subdivision 4. Any revisions in the table of rate for the individual policy shall apply to the covered person's original age at entry and shall apply equally to all similar conversion policies issued by the insurer.

 

A policy providing reduced benefits at a reduced premium rate may be accepted by the covered person in lieu of the optional coverage otherwise required by this subdivision.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 22. Minnesota Statutes 2012, section 62A.28, subdivision 2, is amended to read:

 

Subd. 2. Required coverage. Every policy, plan, certificate, or contract referred to in subdivision 1 issued or renewed after August 1, 1987, must provide coverage for scalp hair prostheses worn for hair loss suffered as a result of alopecia areata.

 

The coverage required by this section is subject to the co-payment, coinsurance, deductible, and other enrollee cost-sharing requirements that apply to similar types of items under the policy, plan, certificate, or contract, and is limited to a maximum of $350 in any benefit year and may be limited to one prosthesis per benefit year.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 23. Minnesota Statutes 2012, section 62A.302, is amended to read:

 

62A.302 COVERAGE OF DEPENDENTS.

 

Subdivision 1. Scope of coverage. This section applies to:

 

(1) a health plan as defined in section 62A.011; and

 

(2) coverage described in section 62A.011, subdivision 3, clauses (4), (6), (7), (8), (9), and (10); and

 

(3) (2) a policy, contract, or certificate issued by a community integrated service network licensed under chapter 62N.

 

Subd. 2. Required coverage. Every health plan included in subdivision 1 that provides dependent coverage must define "dependent" no more restrictively than the definition provided in section 62L.02, subdivision 11.

 

Subd. 3. No additional restrictions permitted. Any health plan included in subdivision 1 that provides dependent coverage of children shall make that coverage available to children until the child attains 26 years of age. A health carrier must not place restrictions on this coverage and must comply with the following requirements:

 

(1) with respect to a child who has not attained 26 years of age, a health carrier shall not define dependent for purposes of eligibility for dependent coverage of children other than the terms of a relationship between a child and the enrollee or spouse of the enrollee;

 

(2) a health carrier must not deny or restrict coverage for a child who has not attained 26 years of age based on (i) the presence or absence of the child's financial dependency upon the participant, primary subscriber, or any other person; (ii) residency with the participant and in the individual market the primary subscriber, or with any other person; (iii) marital status; (iv) student status; (v) employment; or (vi) any combination of those factors; and


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1411

(3) a health carrier must not deny or restrict coverage of a child based on eligibility for other coverage, except as provided in subdivision 5.

 

Subd. 4. Grandchildren. Nothing in this section requires a health carrier to make coverage available for a grandchild, unless the grandparent becomes the legal guardian or adoptive parent of that grandchild or unless the grandchild meets the requirements of section 62A.042. For grandchildren included under a grandparent's policy pursuant to section 62A.042, coverage for the grandchild may terminate if the grandchild does not continue to reside with the covered grandparent continuously from birth, if the grandchild does not remain financially dependent upon the covered grandparent, or when the grandchild reaches age 25, except as provided in section 62A.14 or if coverage is continued under section 62A.20.

 

Subd. 5. Terms of coverage of dependents. The terms of coverage in a health plan offered by a health carrier providing dependent coverage of children cannot vary based on age except for children who are 26 years of age or older.

 

Subd. 6. Opportunity to enroll. A health carrier must comply with all provisions of the Affordable Care Act in regards to providing an opportunity to enroll in coverage to any child whose coverage ended, or was not eligible for coverage under a group health plan or individual health plan because, under the terms of the coverage, the availability of dependent coverage of a child ended before age 26. This section does not require compliance with any provision of the Affordable Care Act before the effective date provided for that provision in the Affordable Care Act. The commissioner shall enforce this section.

 

Subd. 7. Grandfathered plan coverage. (a) For plan years beginning before January 1, 2014, a group health plan that is a grandfathered plan and makes available dependent coverage of children may exclude an adult child who has not attained 26 years of age from coverage only if the adult child is eligible to enroll in an eligible employer-sponsored health benefit plan, as defined in section 5000A(f)(2) of the Internal Revenue Code, other than the group health plan of a parent.

 

(b) For plan years beginning on or after January 1, 2014, a group health plan that is grandfathered plan coverage shall comply with all requirements of this section.

 

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

 

Sec. 24. [62A.3021] COVERAGE OF DEPENDENTS BY PLANS OTHER THAN HEALTH PLANS.

 

Subdivision 1. Scope of coverage. This section applies to coverage described in section 62A.011, subdivision 3, clauses (4), (6), (7), (8), (9), and (10).

 

Subd. 2. Dependent. "Dependent" means an eligible employee's spouse, unmarried child who is under the age of 25 years, dependent child of any age who is disabled and who meets the eligibility criteria in section 62A.14, subdivision 2, or any other person whom state or federal law requires to be treated as a dependent for purposes of health plans. For the purpose of this definition, a child includes a child for whom the employee or the employee's spouse has been appointed legal guardian and an adoptive child as provided in section 62A.27. A child also includes grandchildren as provided in section 62A.042 with continued eligibility of grandchildren as provided in section 62A.302, subdivision 4.

 

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

 

Sec. 25. Minnesota Statutes 2012, section 62A.615, is amended to read:

 

62A.615 PREEXISTING CONDITIONS DISCLOSED AT TIME OF APPLICATION.

 

No insurer may cancel or rescind a health insurance policy for a preexisting condition of which the application or other information provided by the insured reasonably gave the insurer notice. No insurer may restrict coverage for a preexisting condition of which the application or other information provided by the insured reasonably gave the


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1412

insurer notice unless the coverage is restricted at the time the policy is issued and the restriction is disclosed in writing to the insured at the time the policy is issued. In addition, no health plan may restrict coverage for a preexisting condition for an individual who is under 19 years of age. This section does not apply to individual health plans that are grandfathered plans.

 

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

 

Sec. 26. Minnesota Statutes 2012, section 62A.65, subdivision 3, is amended to read:

 

Subd. 3. Premium rate restrictions. No individual health plan may be offered, sold, issued, or renewed to a Minnesota resident unless the premium rate charged is determined in accordance with the following requirements:

 

(a) Premium rates must be no more than 25 percent above and no more than 25 percent below the index rate charged to individuals for the same or similar coverage, adjusted pro rata for rating periods of less than one year. The premium variations permitted by this paragraph must be based only upon health status, claims experience, and occupation. For purposes of this paragraph, health status includes refraining from tobacco use or other actuarially valid lifestyle factors associated with good health, provided that the lifestyle factor and its effect upon premium rates have been determined by the commissioner to be actuarially valid and have been approved by the commissioner. Variations permitted under this paragraph must not be based upon age or applied differently at different ages. This paragraph does not prohibit use of a constant percentage adjustment for factors permitted to be used under this paragraph.

 

(b) (a) Premium rates may vary based upon the ages of covered persons only as provided in this paragraph. In addition to the variation permitted under paragraph (a), each health carrier may use an additional premium variation based upon age of up to plus or minus 50 percent of the index rate in accordance with the provisions of the Affordable Care Act.

 

(c) A health carrier may request approval by the commissioner to establish separate geographic regions determined by the health carrier and to establish separate index rates for each such region.

 

(b) Premium rates may vary based upon geographic rating area. The commissioner shall grant approval if the following conditions are met:

 

(1) the geographic regions must be applied uniformly by the health carrier the areas are established in accordance with the Affordable Care Act;

 

(2) each geographic region must be composed of no fewer than seven counties that create a contiguous region; and

 

(3) the health carrier provides actuarial justification acceptable to the commissioner for the proposed geographic variations in index rates premium rates for each area, establishing that the variations are based upon differences in the cost to the health carrier of providing coverage.

 

(d) Health carriers may use rate cells and must file with the commissioner the rate cells they use. Rate cells must be based upon the number of adults or children covered under the policy and may reflect the availability of Medicare coverage. The rates for different rate cells must not in any way reflect generalized differences in expected costs between principal insureds and their spouses.

 

(c) Premium rates may vary based upon tobacco use, in accordance with the provisions of the Affordable Care Act.

 

(e) (d) In developing its index rates and premiums for a health plan, a health carrier shall take into account only the following factors:

 

(1) actuarially valid differences in rating factors permitted under paragraphs (a) and (b) (c); and


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1413

(2) actuarially valid geographic variations if approved by the commissioner as provided in paragraph (c) (b).

 

(e) The premium charged with respect to any particular individual health plan shall not be adjusted more frequently than annually or January 1 of the year following initial enrollment, except that the premium rates may be changed to reflect:

 

(1) changes to the family composition of the policyholder;

 

(2) changes in geographic rating area of the policyholder, as provided in paragraph (b);

 

(3) changes in age, as provided in paragraph (a);

 

(4) changes in tobacco use, as provided in paragraph (c);

 

(5) transfer to a new health plan requested by the policyholder; or

 

(6) other changes required by or otherwise expressly permitted by state or federal law or regulations.

 

(f) A health carrier shall consider all enrollees in all health plans, other than short-term and grandfathered plan coverage, offered by the health carrier in the individual market, including those enrollees who enroll in qualified health plans offered through the Minnesota Insurance Marketplace to be members of a single risk pool.

 

(g) The commissioner may establish regulations to implement the provisions of this section.

 

(h) In connection with the offering for sale of a health plan in the individual market, a health carrier shall make a reasonable disclosure, as part of its solicitation and sales materials, of all of the following:

 

(1) the provisions of the coverage concerning the health carrier's right to change premium rates and the factors that may affect changes in premium rates; and

 

(2) a listing of and descriptive information, including benefits and premiums, about all individual health plans offered by the health carrier and the availability of the individual health plans for which the individual is qualified.

 

(i) All premium variations must be justified in initial rate filings and upon request of the commissioner in rate revision filings. All rate variations are subject to approval by the commissioner.

 

(g) (j) The loss ratio must comply with the section 62A.021 requirements for individual health plans.

 

(h) (k) The rates must not be approved, unless the commissioner has determined that the rates are reasonable. In determining reasonableness, the commissioner shall consider the growth rates applied under section 62J.04, subdivision 1, paragraph (b), to the calendar year or years that the proposed premium rate would be in effect, and actuarially valid changes in risks associated with the enrollee populations, and actuarially valid changes as a result of statutory changes in Laws 1992, chapter 549.

 

(i) (l) An insurer may, as part of a minimum lifetime loss ratio guarantee filing under section 62A.02, subdivision 3a, include a rating practices guarantee as provided in this paragraph. The rating practices guarantee must be in writing and must guarantee that the policy form will be offered, sold, issued, and renewed only with premium rates and premium rating practices that comply with subdivisions 2, 3, 4, and 5. The rating practices guarantee must be accompanied by an actuarial memorandum that demonstrates that the premium rates and premium rating system used in connection with the policy form will satisfy the guarantee. The guarantee must guarantee refunds of any excess premiums to policyholders charged premiums that exceed those permitted under subdivision 2, 3, 4, or 5. An insurer that complies with this paragraph in connection with a policy form is exempt from the requirement of prior approval by the commissioner under paragraphs (c), (f), and (h).

 

EFFECTIVE DATE. This section is effective January 1, 2014.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1414

Sec. 27. Minnesota Statutes 2012, section 62A.65, subdivision 5, is amended to read:

 

Subd. 5. Portability and conversion of coverage. (a) For plan years beginning on or after January 1, 2014, no individual health plan may be offered, sold, issued, or with respect to children age 18 or under renewed, to a Minnesota resident that contains a preexisting condition limitation, preexisting condition exclusion, or exclusionary rider, unless the limitation or exclusion is permitted under this subdivision and under chapter 62L, provided that, except for children age 18 or under, underwriting restrictions may be retained on individual contracts that are issued without evidence of insurability as a replacement for prior individual coverage that was sold before May 17, 1993. The An individual age 19 or older may be subjected to an 18-month preexisting condition limitation during plan years beginning prior to January 1, 2014, unless the individual has maintained continuous coverage as defined in section 62L.02. The individual must not be subjected to an exclusionary rider. During plan years beginning prior to January 1, 2014, an individual who is age 19 or older and who has maintained continuous coverage may be subjected to a onetime preexisting condition limitation of up to 12 months, with credit for time covered under qualifying coverage as defined in section 62L.02, at the time that the individual first is covered under an individual health plan by any health carrier. Credit must be given for all qualifying coverage with respect to all preexisting conditions, regardless of whether the conditions were preexisting with respect to any previous qualifying coverage. The individual must not be subjected to an exclusionary rider. Thereafter, the individual who is age 19 or older must not be subject to any preexisting condition limitation, preexisting condition exclusion, or exclusionary rider under an individual health plan by any health carrier, except an unexpired portion of a limitation under prior coverage, so long as the individual maintains continuous coverage as defined in section 62L.02. The prohibition on preexisting condition limitations for children age 18 or under does not apply to individual health plans that are grandfathered plans. The prohibition on preexisting condition limitations for adults age 19 and over beginning for plan years on or after January 1, 2014 does not apply to individual health plans that are grandfathered plans.

 

(b) A health carrier must offer an individual health plan to any individual previously covered under a group health plan issued by that health carrier, regardless of the size of the group, so long as the individual maintained continuous coverage as defined in section 62L.02. If the individual has available any continuation coverage provided under sections 62A.146; 62A.148; 62A.17, subdivisions 1 and 2; 62A.20; 62A.21; 62C.142; 62D.101; or 62D.105, or continuation coverage provided under federal law, the health carrier need not offer coverage under this paragraph until the individual has exhausted the continuation coverage. The offer must not be subject to underwriting, except as permitted under this paragraph. A health plan issued under this paragraph must be a qualified plan as defined in section 62E.02 and must not contain any preexisting condition limitation, preexisting condition exclusion, or exclusionary rider, except for any unexpired limitation or exclusion under the previous coverage. The individual health plan must cover pregnancy on the same basis as any other covered illness under the individual health plan. The offer of coverage by the health carrier must inform the individual that the coverage, including what is covered and the health care providers from whom covered care may be obtained, may not be the same as the individual's coverage under the group health plan. The offer of coverage by the health carrier must also inform the individual that the individual, if a Minnesota resident, may be eligible to obtain coverage from (i) other private sources of health coverage, or (ii) the Minnesota Comprehensive Health Association, without a preexisting condition limitation, and must provide the telephone number used by that association for enrollment purposes. The initial premium rate for the individual health plan must comply with subdivision 3. The premium rate upon renewal must comply with subdivision 2. In no event shall the premium rate exceed 100 percent of the premium charged for comparable individual coverage by the Minnesota Comprehensive Health Association, and the premium rate must be less than that amount if necessary to otherwise comply with this section. An individual health plan offered under this paragraph to a person satisfies the health carrier's obligation to offer conversion coverage under section 62E.16, with respect to that person. Coverage issued under this paragraph must provide that it cannot be canceled or nonrenewed as a result of the health carrier's subsequent decision to leave the individual, small employer, or other group market. Section 72A.20, subdivision 28, applies to this paragraph.

 

EFFECTIVE DATE. This section is effective the day following final enactment, except that the amendment made to paragraph (b) is effective January 1, 2014.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1415

Sec. 28. Minnesota Statutes 2012, section 62A.65, subdivision 6, is amended to read:

 

Subd. 6. Guaranteed issue not required. (a) Nothing in this section requires a health carrier to initially issue a health plan to a Minnesota resident who is age 19 or older on the date the health plan becomes effective if the effective date is prior to January 1, 2014, except as otherwise expressly provided in subdivision 4 or 5.

 

(b) Guaranteed issue is required for all health plans, except grandfathered plans, beginning January 1, 2014.

 

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

 

Sec. 29. Minnesota Statutes 2012, section 62A.65, subdivision 7, is amended to read:

 

Subd. 7. Short-term coverage. (a) For purposes of this section, "short-term coverage" means an individual health plan that:

 

(1) is issued to provide coverage for a period of 185 days or less, except that the health plan may permit coverage to continue until the end of a period of hospitalization for a condition for which the covered person was hospitalized on the day that coverage would otherwise have ended;

 

(2) is nonrenewable, provided that the health carrier may provide coverage for one or more subsequent periods that satisfy clause (1), if the total of the periods of coverage do not exceed a total of 365 days out of any 555-day period, plus any additional days covered as a result of hospitalization on the day that a period of coverage would otherwise have ended;

 

(3) does not cover any preexisting conditions, including ones that originated during a previous identical policy or contract with the same health carrier where coverage was continuous between the previous and the current policy or contract; and

 

(4) is available with an immediate effective date without underwriting upon receipt of a completed application indicating eligibility under the health carrier's eligibility requirements, provided that coverage that includes optional benefits may be offered on a basis that does not meet this requirement.

 

(b) Short-term coverage is not subject to subdivisions 2 and 5. Short-term coverage may exclude as a preexisting condition any injury, illness, or condition for which the covered person had medical treatment, symptoms, or any manifestations before the effective date of the coverage, but dependent children born or placed for adoption during the policy period must not be subject to this provision.

 

(c) Notwithstanding subdivision 3, and section 62A.021, a health carrier may combine short-term coverage with its most commonly sold individual qualified plan, as defined in section 62E.02, other than short-term coverage, for purposes of complying with the loss ratio requirement.

 

(d) The 365-day coverage limitation provided in paragraph (a) applies to the total number of days of short-term coverage that covers a person, regardless of the number of policies, contracts, or health carriers that provide the coverage. A written application for short-term coverage must ask the applicant whether the applicant has been covered by short-term coverage by any health carrier within the 555 days immediately preceding the effective date of the coverage being applied for. Short-term coverage issued in violation of the 365-day limitation is valid until the end of its term and does not lose its status as short-term coverage, in spite of the violation. A health carrier that knowingly issues short-term coverage in violation of the 365-day limitation is subject to the administrative penalties otherwise available to the commissioner of commerce or the commissioner of health, as appropriate.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1416

(e) Time spent under short-term coverage counts as time spent under a preexisting condition limitation for purposes of group or individual health plans, other than short-term coverage, subsequently issued to that person, or to cover that person, by any health carrier, if the person maintains continuous coverage as defined in section 62L.02. Short-term coverage is a health plan and is qualifying coverage as defined in section 62L.02. Notwithstanding any other law to the contrary, a health carrier is not required under any circumstances to provide a person covered by short-term coverage the right to obtain coverage on a guaranteed issue basis under another health plan offered by the health carrier, as a result of the person's enrollment in short-term coverage.

 

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

 

Sec. 30. [62A.67] ESSENTIAL HEALTH BENEFIT PACKAGE REQUIREMENTS.

 

Subdivision 1. Essential health benefits package. (a) Health carriers offering an individual health plan must include the essential health benefits package as required under the Affordable Care Act, and as described in this subdivision.

 

(b) The essential health benefits package means coverage that:

 

(1) provides essential health benefits as outlined in the Affordable Care Act;

 

(2) limits cost-sharing for such coverage in accordance with the Affordable Care Act; and

 

(3) subject to subdivision 3, provides bronze, silver, gold, or platinum level of coverage described in the Affordable Care Act.

 

Subd. 2. Coverage for enrollees under the age of 21. If a health carrier offers health coverage in any level specified under section 1302(d) of the Affordable Care Act, as described in subdivision 1, clause (3), the carrier shall also offer coverage in that level in a health plan in which the only enrollees are children who, as of the beginning of a policy year, have not attained the age of 21 years.

 

Subd. 3. Alternative compliance for catastrophic plans. A health carrier not providing a bronze, silver, gold, or platinum level of coverage, as described in subdivision 1, paragraph (b), clause (3), shall be treated as meeting the requirements of the Affordable Care Act with respect to any policy year if the health carrier provides a catastrophic plan that meets the requirements of the Affordable Care Act.

 

Subd. 4. Essential health benefits; definition. For purposes of this section, "essential health benefits" has the meaning given under the Affordable Care Act, and include:

 

(1) ambulatory patient services;

 

(2) emergency services;

 

(3) hospitalization;

 

(4) laboratory services;

 

(5) maternity and newborn care;

 

(6) mental health and substance abuse disorder services, including behavioral health treatment;

 

(7) pediatric services, including oral and vision care;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1417

(8) prescription drugs;

 

(9) preventative and wellness services and chronic disease management;

 

(10) rehabilitative and habilitative services and devices; and

 

(11) other services defined as essential health benefits under the Affordable Care Act.

 

Subd. 5. Exception. This section does not apply to a dental plan as described in the Affordable Care Act.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 31. Minnesota Statutes 2012, section 62C.14, subdivision 5, is amended to read:

 

Subd. 5. Disabled dependents. A subscriber's individual contract or any group contract delivered or issued for delivery in this state and providing that coverage of a dependent child of the subscriber or a dependent child of a covered group member shall terminate upon attainment of a specified limiting age as defined in section 62Q.01, subdivision 9, shall also provide in substance that attainment of that age shall not terminate coverage while the child is (a) incapable of self-sustaining employment by reason of developmental disability, mental illness or disorder, or physical disability, and (b) chiefly dependent upon the subscriber or employee for support and maintenance, provided proof of incapacity and dependency is furnished by the subscriber within 31 days of attainment of the limiting age as defined in section 62Q.01, subdivision 9, and subsequently as required by the corporation, but not more frequently than annually after a two-year period following attainment of the age. Any notice regarding termination of coverage due to attainment of the limiting age must include information about this provision.

 

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

 

Sec. 32. Minnesota Statutes 2012, section 62C.142, subdivision 2, is amended to read:

 

Subd. 2. Conversion privilege. Every subscriber contract, other than a contract whose continuance is contingent upon continued employment or membership, which contains a provision for termination of coverage of the spouse upon dissolution of marriage shall contain a provision allowing a former spouse and dependent children of a subscriber, without providing evidence of insurability, to obtain from the corporation at the expiration of any continuation of coverage required under subdivision 2a or section 62A.146, or upon termination of coverage by reason of an entry of a valid decree of dissolution which does not require the insured to provide continued coverage for the former spouse, an individual subscriber contract providing at least the minimum benefits of a qualified plan as prescribed by section 62E.06 and the option of a number three qualified plan, a number two qualified plan, a number one qualified plan as provided by section 62E.06, subdivisions 1 to 3, provided application is made to the corporation within 30 days following notice of the expiration of the continued coverage and upon payment of the appropriate fee. A subscriber contract providing reduced benefits at a reduced fee may be accepted by the former spouse and dependent children in lieu of the optional coverage otherwise required by this subdivision. The An individual subscriber contract issued as conversion coverage shall be renewable at the option of the former spouse as long as the former spouse is not covered under another qualified plan as defined in section 62E.02, subdivision 4. Any revisions in the table of rate for the individual subscriber contract shall apply to the former spouse's original age at entry and shall apply equally to all similar contracts issued as conversion coverage by the corporation.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 33. Minnesota Statutes 2012, section 62D.07, subdivision 3, is amended to read:

 

Subd. 3. Required provisions. Contracts and evidences of coverage shall contain:

 

(a) no provisions or statements which are unjust, unfair, inequitable, misleading, deceptive, or which are untrue, misleading, or deceptive as defined in section 62D.12, subdivision 1;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1418

(b) a clear, concise and complete statement of:

 

(1) the health care services and the insurance or other benefits, if any, to which the enrollee is entitled under the health maintenance contract;

 

(2) any exclusions or limitations on the services, kind of services, benefits, or kind of benefits, to be provided, including any deductible or co-payment feature and requirements for referrals, prior authorizations, and second opinions;

 

(3) where and in what manner information is available as to how services, including emergency and out of area services, may be obtained;

 

(4) the total amount of payment and co-payment, if any, for health care services and the indemnity or service benefits, if any, which the enrollee is obligated to pay with respect to individual contracts, or an indication whether the plan is contributory or noncontributory with respect to group certificates; and

 

(5) a description of the health maintenance organization's method for resolving enrollee complaints and a statement identifying the commissioner as an external source with whom complaints may be registered; and

 

(c) on the cover page of the evidence of coverage and contract, a clear and complete statement of enrollees' rights. The statement must be in bold print and captioned "Important Enrollee Information and Enrollee Bill of Rights" and must include but not be limited to the following provisions in the following language or in substantially similar language approved in advance by the commissioner, except that paragraph (8) does not apply to prepaid health plans providing coverage for programs administered by the commissioner of human services:

 

ENROLLEE INFORMATION

 

(1) COVERED SERVICES: Services provided by (name of health maintenance organization) will be covered only if services are provided by participating (name of health maintenance organization) providers or authorized by (name of health maintenance organization). Your contract fully defines what services are covered and describes procedures you must follow to obtain coverage.

 

(2) PROVIDERS: Enrolling in (name of health maintenance organization) does not guarantee services by a particular provider on the list of providers. When a provider is no longer part of (name of health maintenance organization), you must choose among remaining (name of the health maintenance organization) providers.

 

(3) REFERRALS: Certain services are covered only upon referral. See section (section number) of your contract for referral requirements. All referrals to non-(name of health maintenance organization) providers and certain types of health care providers must be authorized by (name of health maintenance organization).

 

(4) EMERGENCY SERVICES: Emergency services from providers who are not affiliated with (name of health maintenance organization) will be covered only if proper procedures are followed. Your contract explains the procedures and benefits associated with emergency care from (name of health maintenance organization) and non-(name of health maintenance organization) providers.

 

(5) EXCLUSIONS: Certain services or medical supplies are not covered. You should read the contract for a detailed explanation of all exclusions.

 

(6) CONTINUATION: You may convert to an individual health maintenance organization contract or continue coverage under certain circumstances. These continuation and conversion rights are explained fully in your contract.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1419

(7) CANCELLATION: Your coverage may be canceled by you or (name of health maintenance organization) only under certain conditions. Your contract describes all reasons for cancellation of coverage.

 

(8) NEWBORN COVERAGE: If your health plan provides for dependent coverage, a newborn infant is covered from birth, but only if services are provided by participating (name of health maintenance organization) providers or authorized by (name of health maintenance organization). Certain services are covered only upon referral. (Name of health maintenance organization) will not automatically know of the infant's birth or that you would like coverage under your plan. You should notify (name of health maintenance organization) of the infant's birth and that you would like coverage. If your contract requires an additional premium for each dependent, (name of health maintenance organization) is entitled to all premiums due from the time of the infant's birth until the time you notify (name of health maintenance organization) of the birth. (Name of health maintenance organization) may withhold payment of any health benefits for the newborn infant until any premiums you owe are paid.

 

(9) PRESCRIPTION DRUGS AND MEDICAL EQUIPMENT: Enrolling in (name of health maintenance organization) does not guarantee that any particular prescription drug will be available nor that any particular piece of medical equipment will be available, even if the drug or equipment is available at the start of the contract year.

 

ENROLLEE BILL OF RIGHTS

 

(1) Enrollees have the right to available and accessible services including emergency services, as defined in your contract, 24 hours a day and seven days a week;

 

(2) Enrollees have the right to be informed of health problems, and to receive information regarding treatment alternatives and risks which is sufficient to assure informed choice;

 

(3) Enrollees have the right to refuse treatment, and the right to privacy of medical and financial records maintained by the health maintenance organization and its health care providers, in accordance with existing law;

 

(4) Enrollees have the right to file a complaint with the health maintenance organization and the commissioner of health and the right to initiate a legal proceeding when experiencing a problem with the health maintenance organization or its health care providers;

 

(5) Enrollees have the right to a grace period of 31 days for the payment of each premium for an individual health maintenance contract falling due after the first premium during which period the contract shall continue in force;

 

(6) Medicare enrollees have the right to voluntarily disenroll from the health maintenance organization and the right not to be requested or encouraged to disenroll except in circumstances specified in federal law; and

 

(7) Medicare enrollees have the right to a clear description of nursing home and home care benefits covered by the health maintenance organization.

 

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

 

Sec. 34. Minnesota Statutes 2012, section 62D.095, is amended to read:

 

62D.095 ENROLLEE COST SHARING.

 

Subdivision 1. General application. A health maintenance contract may contain enrollee cost-sharing provisions as specified in this section. Co-payment and deductible provisions in a group contract must not discriminate on the basis of age, sex, race, disability, economic status, or length of enrollment in the health plan. During an open enrollment period in which all offered health plans fully participate without any underwriting restrictions, co-payment and deductible provisions must not discriminate on the basis of preexisting health status.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1420

Subd. 2. Co-payments. (a) A health maintenance contract may impose a co-payment as authorized under Minnesota Rules, part 4685.0801, or under this section and coinsurance consistent with the provisions of the Affordable Care Act as defined under section 62A.011, subdivision 1a.

 

(b) A health maintenance organization may impose a flat fee co-payment on outpatient office visits not to exceed 40 percent of the median provider's charges for similar services or goods received by the enrollees as calculated under Minnesota Rules, part 4685.0801. A health maintenance organization may impose a flat fee co-payment on outpatient prescription drugs not to exceed 50 percent of the median provider's charges for similar services or goods received by the enrollees as calculated under Minnesota Rules, part 4685.0801.

 

(c) If a health maintenance contract is permitted to impose a co-payment for preexisting health status under sections 62D.01 to 62D.30, these provisions may vary with respect to length of enrollment in the health plan.

 

Subd. 3. Deductibles. (a) A health maintenance contract issued by a health maintenance organization that is assessed less than three percent of the total annual amount assessed by the Minnesota comprehensive health association may impose deductibles not to exceed $3,000 per person, per year and $6,000 per family, per year. For purposes of the percentage calculation, a health maintenance organization's assessments include those of its affiliates may impose a deductible consistent with the provisions of the Affordable Care Act as defined under section 62A.011, subdivision 1a.

 

(b) All other health maintenance contracts may impose deductibles not to exceed $2,250 per person, per year and $4,500 per family, per year.

 

Subd. 4. Annual out-of-pocket maximums. (a) A health maintenance contract issued by a health maintenance organization that is assessed less than three percent of the total annual amount assessed by the Minnesota comprehensive health association must include a limitation not to exceed $4,500 per person and $7,500 per family on total annual out-of-pocket enrollee cost-sharing expenses. For purposes of the percentage calculation, a health maintenance organization's assessments include those of its affiliates may impose an annual out-of-pocket maximum consistent with the provisions of the Affordable Care Act as defined under section 62A.011, subdivision 1a.

 

(b) All other health maintenance contracts must include a limitation not to exceed $3,000 per person and $6,000 per family on total annual out-of-pocket enrollee cost-sharing expenses.

 

Subd. 5. Exceptions. No co-payments or deductibles may be imposed on preventive health care services as described in Minnesota Rules, part 4685.0801, subpart 8 consistent with the provisions of the Affordable Care Act as defined under section 62A.011, subdivision 1a.

 

Subd. 6. Public programs. This section does not apply to the prepaid medical assistance program, the MinnesotaCare program, the prepaid general assistance program, the federal Medicare program, or the health plans provided through any of those programs.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 35. Minnesota Statutes 2012, section 62D.181, subdivision 7, is amended to read:

 

Subd. 7. Replacement coverage; limitations. The association is not obligated to offer replacement coverage under this chapter or conversion coverage under section 62E.16 at the end of the periods specified in subdivision 6. Any continuation obligation arising under this chapter or chapter 62A will cease at the end of the periods specified in subdivision 6.

 

EFFECTIVE DATE. This section is effective January 1, 2014.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1421

Sec. 36. Minnesota Statutes 2012, section 62E.02, is amended by adding a subdivision to read:

 

Subd. 2a. Essential health benefits. "Essential health benefits" has the meaning given under section 1302(b) of the Affordable Care Act, as defined under section 62A.011, subdivision 1a. Essential health benefits include:

 

(1) ambulatory patient services;

 

(2) emergency services;

 

(3) hospitalization;

 

(4) laboratory services;

 

(5) maternity and newborn care;

 

(6) mental health and substance abuse disorder services, including behavioral health treatment;

 

(7) pediatric services, including oral and vision care;

 

(8) prescription drugs;

 

(9) preventive and wellness services and chronic disease management;

 

(10) rehabilitative and habilitative services and devices; and

 

(11) other services defined as essential health benefits under the Affordable Care Act as defined in section 62A.011, subdivision 1a.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 37. Minnesota Statutes 2012, section 62E.04, subdivision 4, is amended to read:

 

Subd. 4. Major medical coverage. Each insurer and fraternal shall affirmatively offer coverage of major medical expenses to every applicant who applies to the insurer or fraternal for a new unqualified policy, which has a lifetime benefit limit of less than $1,000,000, at the time of application and annually to every holder of such an unqualified policy of accident and health insurance renewed by the insurer or fraternal. The coverage shall provide that when a covered individual incurs out-of-pocket expenses of $5,000 or more within a calendar year for services covered in section 62E.06, subdivision 1, benefits shall be payable, subject to any co-payment authorized by the commissioner, up to a maximum lifetime limit of not less than $1,000,000 and shall not contain a lifetime maximum on essential health benefits. The offer of coverage of major medical expenses may consist of the offer of a rider on an existing unqualified policy or a new policy which is a qualified plan.

 

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

 

Sec. 38. Minnesota Statutes 2012, section 62E.06, subdivision 1, is amended to read:

 

Subdivision 1. Number three plan. A plan of health coverage shall be certified as a number three qualified plan if it otherwise meets the requirements established by chapters 62A, 62C, and 62Q, and the other laws of this state, whether or not the policy is issued in Minnesota, and meets or exceeds the following minimum standards:


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1422

(a) The minimum benefits for a covered individual shall, subject to the other provisions of this subdivision, be equal to at least 80 percent of the cost of covered services in excess of an annual deductible which does not exceed $150 per person. The coverage shall include a limitation of $3,000 per person on total annual out-of-pocket expenses for services covered under this subdivision. The coverage shall not be subject to a maximum lifetime benefit of not less than $1,000,000 lifetime maximum on essential health benefits.

 

The prohibition on lifetime maximums for essential health benefits and $3,000 limitation on total annual out-of-pocket expenses and the $1,000,000 maximum lifetime benefit shall not be subject to change or substitution by use of an actuarially equivalent benefit.

 

(b) Covered expenses shall be the usual and customary charges for the following services and articles when prescribed by a physician:

 

(1) hospital services;

 

(2) professional services for the diagnosis or treatment of injuries, illnesses, or conditions, other than dental, which are rendered by a physician or at the physician's direction;

 

(3) drugs requiring a physician's prescription;

 

(4) services of a nursing home for not more than 120 days in a year if the services would qualify as reimbursable services under Medicare;

 

(5) services of a home health agency if the services would qualify as reimbursable services under Medicare;

 

(6) use of radium or other radioactive materials;

 

(7) oxygen;

 

(8) anesthetics;

 

(9) prostheses other than dental but including scalp hair prostheses worn for hair loss suffered as a result of alopecia areata;

 

(10) rental or purchase, as appropriate, of durable medical equipment other than eyeglasses and hearing aids, unless coverage is required under section 62Q.675;

 

(11) diagnostic x-rays and laboratory tests;

 

(12) oral surgery for partially or completely unerupted impacted teeth, a tooth root without the extraction of the entire tooth, or the gums and tissues of the mouth when not performed in connection with the extraction or repair of teeth;

 

(13) services of a physical therapist;

 

(14) transportation provided by licensed ambulance service to the nearest facility qualified to treat the condition; or a reasonable mileage rate for transportation to a kidney dialysis center for treatment; and

 

(15) services of an occupational therapist.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1423

(c) Covered expenses for the services and articles specified in this subdivision do not include the following:

 

(1) any charge for care for injury or disease either (i) arising out of an injury in the course of employment and subject to a workers' compensation or similar law, (ii) for which benefits are payable without regard to fault under coverage statutorily required to be contained in any motor vehicle, or other liability insurance policy or equivalent self-insurance, or (iii) for which benefits are payable under another policy of accident and health insurance, Medicare, or any other governmental program except as otherwise provided by section 62A.04, subdivision 3, clause (4);

 

(2) any charge for treatment for cosmetic purposes other than for reconstructive surgery when such service is incidental to or follows surgery resulting from injury, sickness, or other diseases of the involved part or when such service is performed on a covered dependent child because of congenital disease or anomaly which has resulted in a functional defect as determined by the attending physician;

 

(3) care which is primarily for custodial or domiciliary purposes which would not qualify as eligible services under Medicare;

 

(4) any charge for confinement in a private room to the extent it is in excess of the institution's charge for its most common semiprivate room, unless a private room is prescribed as medically necessary by a physician, provided, however, that if the institution does not have semiprivate rooms, its most common semiprivate room charge shall be considered to be 90 percent of its lowest private room charge;

 

(5) that part of any charge for services or articles rendered or prescribed by a physician, dentist, or other health care personnel which exceeds the prevailing charge in the locality where the service is provided; and

 

(6) any charge for services or articles the provision of which is not within the scope of authorized practice of the institution or individual rendering the services or articles.

 

(d) The minimum benefits for a qualified plan shall include, in addition to those benefits specified in clauses (a) and (e), benefits for well baby care, effective July 1, 1980, subject to applicable deductibles, coinsurance provisions, and maximum lifetime benefit limitations.

 

(e) Effective July 1, 1979, the minimum benefits of a qualified plan shall include, in addition to those benefits specified in clause (a), a second opinion from a physician on all surgical procedures expected to cost a total of $500 or more in physician, laboratory, and hospital fees, provided that the coverage need not include the repetition of any diagnostic tests.

 

(f) Effective August 1, 1985, the minimum benefits of a qualified plan must include, in addition to the benefits specified in clauses (a), (d), and (e), coverage for special dietary treatment for phenylketonuria when recommended by a physician.

 

(g) Outpatient mental health coverage is subject to section 62A.152, subdivision 2.

 

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

 

Sec. 39. Minnesota Statutes 2012, section 62E.09, is amended to read:

 

62E.09 DUTIES OF COMMISSIONER.

 

The commissioner may:

 

(a) formulate general policies to advance the purposes of sections 62E.01 to 62E.19;


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1424

(b) supervise the creation of the Minnesota Comprehensive Health Association within the limits described in section 62E.10;

 

(c) approve the selection of the writing carrier by the association, approve the association's contract with the writing carrier, and approve the state plan coverage;

 

(d) appoint advisory committees;

 

(e) conduct periodic audits to assure the general accuracy of the financial data submitted by the writing carrier and the association;

 

(f) contract with the federal government or any other unit of government to ensure coordination of the state plan with other governmental assistance programs;

 

(g) undertake directly or through contracts with other persons studies or demonstration programs to develop awareness of the benefits of sections 62E.01 to 62E.16 62E.15, so that the residents of this state may best avail themselves of the health care benefits provided by these sections;

 

(h) contract with insurers and others for administrative services; and

 

(i) adopt, amend, suspend and repeal rules as reasonably necessary to carry out and make effective the provisions and purposes of sections 62E.01 to 62E.19.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 40. Minnesota Statutes 2012, section 62E.10, subdivision 7, is amended to read:

 

Subd. 7. General powers. The association may:

 

(a) Exercise the powers granted to insurers under the laws of this state;

 

(b) Sue or be sued;

 

(c) Enter into contracts with insurers, similar associations in other states or with other persons for the performance of administrative functions including the functions provided for in clauses (e) and (f);

 

(d) Establish administrative and accounting procedures for the operation of the association;

 

(e) Provide for the reinsuring of risks incurred as a result of issuing the coverages required by sections section 62E.04 and 62E.16 by members of the association. Each member which elects to reinsure its required risks shall determine the categories of coverage it elects to reinsure in the association. The categories of coverage are:

 

(1) individual qualified plans, excluding group conversions;

 

(2) group conversions;

 

(3) group qualified plans with fewer than 50 employees or members; and

 

(4) major medical coverage.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1425

A separate election may be made for each category of coverage. If a member elects to reinsure the risks of a category of coverage, it must reinsure the risk of the coverage of every life covered under every policy issued in that category. A member electing to reinsure risks of a category of coverage shall enter into a contract with the association establishing a reinsurance plan for the risks. This contract may include provision for the pooling of members' risks reinsured through the association and it may provide for assessment of each member reinsuring risks for losses and operating and administrative expenses incurred, or estimated to be incurred in the operation of the reinsurance plan. This reinsurance plan shall be approved by the commissioner before it is effective. Members electing to administer the risks which are reinsured in the association shall comply with the benefit determination guidelines and accounting procedures established by the association. The fee charged by the association for the reinsurance of risks shall not be less than 110 percent of the total anticipated expenses incurred by the association for the reinsurance; and

 

(f) Provide for the administration by the association of policies which are reinsured pursuant to clause (e). Each member electing to reinsure one or more categories of coverage in the association may elect to have the association administer the categories of coverage on the member's behalf. If a member elects to have the association administer the categories of coverage, it must do so for every life covered under every policy issued in that category. The fee for the administration shall not be less than 110 percent of the total anticipated expenses incurred by the association for the administration.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 41. Minnesota Statutes 2012, section 62H.04, is amended to read:

 

62H.04 COMPLIANCE WITH OTHER LAWS.

 

(a) A joint self-insurance plan is subject to the requirements of chapters 62A, 62E, 62L, and 62Q, and sections 72A.17 to 72A.32 unless otherwise specifically exempt. A joint self-insurance plan must pay assessments made by the Minnesota Comprehensive Health Association, as required under section 62E.11.

 

(b) A joint self-insurance plan is exempt from providing the mandated health benefits described in chapters 62A, 62E, 62L, and 62Q if it otherwise provides the benefits required under the Employee Retirement Income Security Act of 1974, United States Code, title 29, sections 1001, et seq., for all employers and not just for the employers with 50 or more employees who are covered by that federal law.

 

(c) A joint self-insurance plan is exempt from section 62L.03, subdivision 1, if the plan offers an annual open enrollment period of no less than 15 days during which all employers that qualify for membership may enter the plan without preexisting condition limitations or exclusions except those permitted under chapter 62L.

 

(d) A joint self-insurance plan is exempt from sections 62A.146, 62A.16, 62A.17, 62A.20, 62A.21, and 62A.65, subdivision 5, paragraph (b), and 62E.16 if the joint self-insurance plan complies with the continuation requirements under the Employee Retirement Income Security Act of 1974, United States Code, title 29, sections 1001, et seq., for all employers and not just for the employers with 20 or more employees who are covered by that federal law.

 

(e) A joint self-insurance plan must provide to all employers the maternity coverage required by federal law for employers with 15 or more employees.

 

(f) A joint self-insurance plan must comply with all the provisions and requirements of the Affordable Care Act as defined under section 62A.011, subdivision 1a, to the extent that they apply to such plans.

 

EFFECTIVE DATE. This section is effective the day following final enactment, except that the amendment made to paragraph (d) is effective January 1, 2014.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1426

Sec. 42. Minnesota Statutes 2012, section 62L.02, subdivision 11, is amended to read:

 

Subd. 11. Dependent. "Dependent" means an eligible employee's spouse, unmarried child who is under the age of 25 years dependent child to the limiting age as defined in section 62Q.01, subdivision 9, dependent child of any age who is disabled and who meets the eligibility criteria in section 62A.14, subdivision 2, or any other person whom state or federal law requires to be treated as a dependent for purposes of health plans. For the purpose of this definition, a dependent child to the limiting age as defined in section 62Q.01, subdivision 9, includes a child for whom the employee or the employee's spouse has been appointed legal guardian and an adoptive child as provided in section 62A.27. A child also means a grandchild as provided in section 62A.042 with continued eligibility of grandchildren as provided in section 62A.302, subdivision 4.

 

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

 

Sec. 43. Minnesota Statutes 2012, section 62L.02, subdivision 14a, is amended to read:

 

Subd. 14a. Guaranteed issue. "Guaranteed issue" means that a health carrier shall not decline an application by a small employer for any health benefit plan offered by that health carrier and shall not decline to cover under a health benefit plan any eligible employee or eligible dependent, including persons who become eligible employees or eligible dependents after initial issuance of the health benefit plan, subject to the health carrier's right to impose preexisting condition limitations permitted under this chapter.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 44. Minnesota Statutes 2012, section 62L.02, is amended by adding a subdivision to read:

 

Subd. 17a. Individual health plan. "Individual health plan" means a health plan as defined under section 62A.011, subdivision 3, that is offered to individuals in the individual market, other than conversion policies or short-term coverage. Small group market health plans offered though the Minnesota Insurance Marketplace to employees of a small employer are not considered individual health plans, regardless of whether the health plan is purchased using a defined contribution from the employer.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 45. Minnesota Statutes 2012, section 62L.02, subdivision 26, is amended to read:

 

Subd. 26. Small employer. (a) "Small employer" means, with respect to a calendar year and a plan year, a person, firm, corporation, partnership, association, or other entity actively engaged in business in Minnesota, including a political subdivision of the state, that employed an average of no fewer than two nor at least one, not including a sole proprietor, but not more than 50 current employees on business days during the preceding calendar year and that employs at least two one current employees employee, not including a sole proprietor, on the first day of the plan year. If an employer has only one eligible employee who has not waived coverage, the sale of a health plan to or for that eligible employee is not a sale to a small employer and is not subject to this chapter and may be treated as the sale of an individual health plan. A small employer plan may be offered through a domiciled association to self-employed individuals and small employers who are members of the association, even if the self-employed individual or small employer has fewer than two current employees. Entities that are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 of the federal Internal Revenue Code are considered a single employer for purposes of determining the number of current employees. Small employer status must be determined on an annual basis as of the renewal date of the health benefit plan. The provisions of this chapter continue to apply to an employer who no longer meets the requirements of this definition until the annual renewal date of the employer's health benefit plan. If an employer was not in existence throughout the preceding calendar year, the determination of whether the employer is a small employer is based upon the average number of current


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1427

employees that it is reasonably expected that the employer will employ on business days in the current calendar year. For purposes of this definition, the term employer includes any predecessor of the employer. An employer that has more than 50 current employees but has 50 or fewer employees, as "employee" is defined under United States Code, title 29, section 1002(6), is a small employer under this subdivision.

 

(b) Where an association, as defined in section 62L.045, comprised of employers contracts with a health carrier to provide coverage to its members who are small employers, the association and health benefit plans it provides to small employers, are subject to section 62L.045, with respect to small employers in the association, even though the association also provides coverage to its members that do not qualify as small employers.

 

(c) If an employer has employees covered under a trust specified in a collective bargaining agreement under the federal Labor-Management Relations Act of 1947, United States Code, title 29, section 141, et seq., as amended, or employees whose health coverage is determined by a collective bargaining agreement and, as a result of the collective bargaining agreement, is purchased separately from the health plan provided to other employees, those employees are excluded in determining whether the employer qualifies as a small employer. Those employees are considered to be a separate small employer if they constitute a group that would qualify as a small employer in the absence of the employees who are not subject to the collective bargaining agreement.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 46. Minnesota Statutes 2012, section 62L.03, subdivision 1, is amended to read:

 

Subdivision 1. Guaranteed issue and reissue. (a) Every health carrier shall, as a condition of authority to transact business in this state in the small employer market, affirmatively market, offer, sell, issue, and renew any of its health benefit plans, on a guaranteed issue basis, to any small employer, including a small employer covered by paragraph (b), that meets the participation and contribution requirements of subdivision 3, as provided in this chapter.

 

(b) A small employer that has its no longer meets the definition of small employer because of a reduction in workforce reduced to one employee may continue coverage as a small employer for 12 months from the date the group is reduced to one employee.

 

(c) Notwithstanding paragraph (a), a health carrier may, at the time of coverage renewal, modify the health coverage for a product offered in the small employer market if the modification is consistent with state law, approved by the commissioner, and effective on a uniform basis for all small employers purchasing that product other than through a qualified association in compliance with section 62L.045, subdivision 2.

 

Paragraph (a) does not apply to a health benefit plan designed for a small employer to comply with a collective bargaining agreement, provided that the health benefit plan otherwise complies with this chapter and is not offered to other small employers, except for other small employers that need it for the same reason. This paragraph applies only with respect to collective bargaining agreements entered into prior to August 21, 1996, and only with respect to plan years beginning before the later of July 1, 1997, or the date upon which the last of the collective bargaining agreements relating to the plan terminates determined without regard to any extension agreed to after August 21, 1996.

 

(d) Every health carrier participating in the small employer market shall make available both of the plans described in section 62L.05 to small employers and shall fully comply with the underwriting and the rate restrictions specified in this chapter for all health benefit plans issued to small employers.

 

(e) (d) A health carrier may cease to transact business in the small employer market as provided under section 62L.09.

 

EFFECTIVE DATE. This section is effective January 1, 2014.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1428

Sec. 47. Minnesota Statutes 2012, section 62L.03, subdivision 3, is amended to read:

 

Subd. 3. Minimum participation and contribution. (a) A small employer that has at least 75 percent of its eligible employees who have not waived coverage participating in a health benefit plan and that contributes at least 50 percent toward the cost of coverage of each eligible employee must be guaranteed coverage on a guaranteed issue basis from any health carrier participating in the small employer market. The participation level of eligible employees must be determined at the initial offering of coverage and at the renewal date of coverage. A health carrier must not increase the participation requirements applicable to a small employer at any time after the small employer has been accepted for coverage. For the purposes of this subdivision, waiver of coverage includes only waivers due to: (1) coverage under another group health plan; (2) unaffordability as specified by the Affordable Care Act as defined under section 62A.011, subdivision 1a; (3) coverage under Medicare Parts A and B; or (3) (4) coverage under medical assistance under chapter 256B or general assistance medical care under chapter 256D.

 

(b) If a small employer does not satisfy the contribution or participation requirements under this subdivision, a health carrier may voluntarily issue or renew individual health plans, or a health benefit plan which must fully comply with this chapter. A health carrier that provides a health benefit plan to a small employer that does not meet the contribution or participation requirements of this subdivision must maintain this information in its files for audit by the commissioner. A health carrier may not offer an individual health plan, purchased through an arrangement between the employer and the health carrier, to any employee unless the health carrier also offers the individual health plan, on a guaranteed issue basis, to all other employees of the same employer. An arrangement permitted under section 62L.12, subdivision 2, paragraph (k), is not an arrangement between the employer and the health carrier for purposes of this paragraph.

 

(c) Nothing in this section obligates a health carrier to issue coverage to a small employer that currently offers coverage through a health benefit plan from another health carrier, unless the new coverage will replace the existing coverage and not serve as one of two or more health benefit plans offered by the employer. This paragraph does not apply if the small employer will meet the required participation level with respect to the new coverage.

 

(d) This section does not apply to health plans offered through the Minnesota Insurance Marketplace under chapter 62V.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 48. Minnesota Statutes 2012, section 62L.03, subdivision 4, is amended to read:

 

Subd. 4. Underwriting restrictions. (a) Health carriers may apply underwriting restrictions to coverage for health benefit plans for small employers, including any preexisting condition limitations, only as expressly permitted under this chapter. For purposes of this section, "underwriting restrictions" means any refusal of the health carrier to issue or renew coverage, any premium rate higher than the lowest rate charged by the health carrier for the same coverage, any preexisting condition limitation, preexisting condition exclusion, or any exclusionary rider.

 

(b) Health carriers may collect information relating to the case characteristics and demographic composition of small employers, as well as health status and health history information about employees, and dependents of employees, of small employers.

 

(c) Except as otherwise authorized for late entrants, preexisting conditions may be excluded by a health carrier for a period not to exceed 12 months from the enrollment date of an eligible employee or dependent, but exclusionary riders must not be used. Late entrants may be subject to a preexisting condition limitation not to exceed 18 months from the enrollment date of the late entrant, but must not be subject to any exclusionary rider or preexisting condition exclusion. When calculating any length of preexisting condition limitation, a health carrier shall credit the time period an eligible employee or dependent was previously covered by qualifying coverage,


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1429

provided that the individual maintains continuous coverage. The credit must be given for all qualifying coverage with respect to all preexisting conditions, regardless of whether the conditions were preexisting with respect to any previous qualifying coverage. Section 60A.082, relating to replacement of group coverage, and the rules adopted under that section apply to this chapter, and this chapter's requirements are in addition to the requirements of that section and the rules adopted under it. A health carrier shall, at the time of first issuance or renewal of a health benefit plan on or after July 1, 1993, credit against any preexisting condition limitation or exclusion permitted under this section, the time period prior to July 1, 1993, during which an eligible employee or dependent was covered by qualifying coverage, if the person has maintained continuous coverage.

 

(d) Health carriers shall not use pregnancy as a preexisting condition under this chapter.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 49. Minnesota Statutes 2012, section 62L.03, subdivision 6, is amended to read:

 

Subd. 6. MCHA enrollees. Health carriers shall offer coverage to any eligible employee or dependent enrolled in MCHA at the time of the health carrier's issuance or renewal of a health benefit plan to a small employer. The health benefit plan must require that the employer permit MCHA enrollees to enroll in the small employer's health benefit plan as of the first date of renewal of a health benefit plan occurring on or after July 1, 1993, and as of each date of renewal after that, or, in the case of a new group, as of the initial effective date of the health benefit plan and as of each date of renewal after that. Unless otherwise permitted by this chapter, Health carriers must not impose any underwriting restrictions, including any preexisting condition limitations or exclusions, on any eligible employee or dependent previously enrolled in MCHA and transferred to a health benefit plan so long as continuous coverage is maintained, provided that the health carrier may impose any unexpired portion of a preexisting condition limitation under the person's MCHA coverage. An MCHA enrollee is not a late entrant, so long as the enrollee has maintained continuous coverage.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 50. Minnesota Statutes 2012, section 62L.045, subdivision 2, is amended to read:

 

Subd. 2. Qualified associations. (a) A qualified association, as defined in this section, and health coverage offered by it, to it, or through it, to a small employer in this state must comply with the requirements of this chapter regarding guaranteed issue, guaranteed renewal, preexisting condition limitations, credit against preexisting condition limitations for continuous coverage, treatment of MCHA enrollees, and the definition of dependent, and with section 62A.65, subdivision 5, paragraph (b). They must also comply with all other requirements of this chapter not specifically exempted in paragraph (b) or (c).

 

(b) A qualified association and a health carrier offering, selling, issuing, or renewing health coverage to, or to cover, a small employer in this state through the qualified association, may, but are not, in connection with that health coverage, required to:

 

(1) offer the two small employer plans described in section 62L.05; and

 

(2) offer to small employers that are not members of the association, health coverage offered to, by, or through the qualified association.

 

(c) A qualified association, and a health carrier offering, selling, issuing, and renewing health coverage to, or to cover, a small employer in this state must comply with section 62L.08, except that:

 

(1) a separate index rate may be applied by a health carrier to each qualified association, provided that:


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1430

(i) the premium rate applied to participating small employer members of the qualified association is no more than 25 percent above and no more than 25 percent below the index rate applied to the qualified association, irrespective of when members applied for health coverage; and

 

(ii) the index rate applied by a health carrier to a qualified association is no more than 20 percent above and no more than 20 percent below the index rate applied by the health carrier to any other qualified association or to any small employer. In comparing index rates for purposes of this clause, the 20 percent shall be calculated as a percent of the larger index rate; and

 

(2) a qualified association described in subdivision 1, paragraph (a), clauses (2) to (4), providing health coverage through a health carrier, or on a self-insured basis in compliance with section 471.617 and the rules adopted under that section, may cover small employers and other employers within the same pool and may charge premiums to small employer members on the same basis as it charges premiums to members that are not small employers, if the premium rates charged to small employers do not have greater variation than permitted under section 62L.08. A qualified association operating under this clause shall annually prove to the commissioner of commerce that it complies with this clause through a sampling procedure acceptable to the commissioner. If the qualified association fails to prove compliance to the satisfaction of the commissioner, the association shall agree to a written plan of correction acceptable to the commissioner. The qualified association is considered to be in compliance under this clause if there is a premium rate that would, if used as an index rate, result in all premium rates in the sample being in compliance with section 62L.08. This clause does not exempt a qualified association or a health carrier providing coverage through the qualified association from the loss ratio requirement of section 62L.08, subdivision 11.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 51. Minnesota Statutes 2012, section 62L.045, subdivision 4, is amended to read:

 

Subd. 4. Principles; association coverage. (a) This subdivision applies to associations as defined in this section, whether qualified associations or not, and is intended to clarify subdivisions 1 to 3.

 

(b) This section applies only to associations that provide health coverage to small employers.

 

(c) A health carrier is not required under this chapter to comply with guaranteed issue and guaranteed renewal with respect to its relationship with the association itself. An arrangement between the health carrier and the association, once entered into, must comply with guaranteed issue and guaranteed renewal with respect to members of the association that are small employers and persons covered through them.

 

(d) When an arrangement between a health carrier and an association has validly terminated, the health carrier has no continuing obligation to small employers and persons covered through them, except as otherwise provided in:

 

(1) section 62A.65, subdivision 5, paragraph (b);

 

(2) any other continuation or conversion rights applicable under state or federal law; and

 

(3) section 60A.082, relating to group replacement coverage, and rules adopted under that section.

 

(e) When an association's arrangement with a health carrier has terminated and the association has entered into a new arrangement with that health carrier or a different health carrier, the new arrangement is subject to section 60A.082 and rules adopted under it, with respect to members of the association that are small employers and persons covered through them.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1431

(f) An association that offers its members more than one plan of health coverage may have uniform rules restricting movement between the plans of health coverage, if the rules do not discriminate against small employers.

 

(g) This chapter does not require or prohibit separation of an association's members into one group consisting only of small employers and another group or other groups consisting of all other members. The association must comply with this section with respect to the small employer group.

 

(h) For purposes of this section, "member" of an association includes an employer participant in the association.

 

(i) For purposes of this section, health coverage issued to, or to cover, a small employer includes a certificate of coverage issued directly to the employer's employees and dependents, rather than to the small employer.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 52. Minnesota Statutes 2012, section 62L.05, subdivision 10, is amended to read:

 

Subd. 10. Medical expense reimbursement. Health carriers may reimburse or pay for medical services, supplies, or articles provided under a small employer plan in accordance with the health carrier's provider contract requirements including, but not limited to, salaried arrangements, capitation, the payment of usual and customary charges, fee schedules, discounts from fee-for-service, per diems, diagnosis-related groups (DRGs), and other payment arrangements. Nothing in this chapter requires a health carrier to develop, implement, or change its provider contract requirements for a small employer plan. Coinsurance, deductibles, and out-of-pocket maximums, and maximum lifetime benefits must be calculated and determined in accordance with each health carrier's standard business practices.

 

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

 

Sec. 53. Minnesota Statutes 2012, section 62L.06, is amended to read:

 

62L.06 DISCLOSURE OF UNDERWRITING RATING PRACTICES.

 

When offering or renewing a health benefit plan, health carriers shall disclose in all solicitation and sales materials:

 

(1) the case characteristics and other rating factors used to determine initial and renewal rates;

 

(2) the extent to which premium rates for a small employer are established or adjusted based upon actual or expected variation in claim experience;

 

(3) provisions concerning the health carrier's right to change premium rates and the factors other than claim experience that affect changes in premium rates;

 

(4) (2) provisions relating to renewability of coverage;

 

(5) the use and effect of any preexisting condition provisions, if permitted;

 

(6) (3) the application of any provider network limitations and their effect on eligibility for benefits; and

 

(7) (4) the ability of small employers to insure eligible employees and dependents currently receiving coverage from the Comprehensive Health Association through health benefit plans.

 

EFFECTIVE DATE. This section is effective January 1, 2014.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1432

Sec. 54. Minnesota Statutes 2012, section 62L.08, is amended to read:

 

62L.08 RESTRICTIONS RELATING TO PREMIUM RATES.

 

Subdivision 1. Rate restrictions. Premium rates for all health benefit plans sold or issued to small employers are subject to the restrictions specified in this section.

 

Subd. 2. General premium variations. Beginning July 1, 1993, each health carrier must offer premium rates to small employers that are no more than 25 percent above and no more than 25 percent below the index rate charged to small employers for the same or similar coverage, adjusted pro rata for rating periods of less than one year. The premium variations permitted by this subdivision must be based only on health status, claims experience, industry of the employer, and duration of coverage from the date of issue. For purposes of this subdivision, health status includes refraining from tobacco use or other actuarially valid lifestyle factors associated with good health, provided that the lifestyle factor and its effect upon premium rates have been determined to be actuarially valid and approved by the commissioner. Variations permitted under this subdivision must not be based upon age or applied differently at different ages. This subdivision does not prohibit use of a constant percentage adjustment for factors permitted to be used under this subdivision.

 

Subd. 2a. Renewal premium increases limited. (a) Beginning January 1, 2003, the percentage increase in the premium rate charged to a small employer for a new rating period must not exceed the sum of the following:

 

(1) the percentage change in the index rate measured from the first day of the prior rating period to the first day of the new rating period;

 

(2) an adjustment, not to exceed 15 percent annually and adjusted pro rata for rating periods of less than one year, due to the claims experience, health status, or duration of coverage of the employees or dependents of the employer; and

 

(3) any adjustment due to change in coverage or in the case characteristics of the employer.

 

(b) This subdivision does not apply if the employer, employee, or any applicant provides the health carrier with false, incomplete, or misleading information.

 

Subd. 3. Age-based premium variations. Beginning July 1, 1993, Each health carrier may offer premium rates to small employers that vary based upon the ages of the eligible employees and dependents of the small employer only as provided in this subdivision. In addition to the variation permitted by subdivision 2, each health carrier may use an additional premium variation based upon age of up to plus or minus 50 percent of the index rate. Premium rates may vary based upon the ages of the eligible employees and dependents of the small employer in accordance with the provisions of the Affordable Care Act as defined in section 62A.011, subdivision 1a.

 

Subd. 4. Geographic premium variations. A health carrier may request approval by the commissioner to establish separate geographic regions determined by the health carrier and to establish separate index rates for each such region Premium rates may vary based on geographic rating areas set by the commissioner. The commissioner shall grant approval if the following conditions are met:

 

(1) the geographic regions must be applied uniformly by the health carrier;

 

(2) each geographic region must be composed of no fewer than seven counties that create a contiguous region; and


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1433

(3) the health carrier provides actuarial justification acceptable to the commissioner for the proposed geographic variations in index rates, establishing that the variations are based upon differences in the cost to the health carrier of providing coverage.

 

Subd. 5. Gender-based rates prohibited. Beginning July 1, 1993, No health carrier may determine premium rates through a method that is in any way based upon the gender of eligible employees or dependents. Rates must not in any way reflect marital status or generalized differences in expected costs between employees and spouses.

 

Subd. 6. Rate cells permitted Tobacco rating. Health carriers may use rate cells and must file with the commissioner the rate cells they use. Rate cells must be based on the number of adults and children covered under the policy and may reflect the availability of Medicare coverage. The rates for different rate cells must not in any way reflect marital status or differences in expected costs between employees and spouses Premium rates may vary based upon tobacco use in accordance with the provisions of the Affordable Care Act as defined in section 62A.011, subdivision 1a.

 

Subd. 7. Index and Premium rate development. (a) In developing its index rates and premiums, a health carrier may take into account only the following factors:

 

(1) actuarially valid differences in benefit designs of health benefit plans; and

 

(2) actuarially valid differences in the rating factors permitted in subdivisions 2 and 3;

 

(3) (2) actuarially valid geographic variations if approved by the commissioner as provided in subdivision 4.

 

(b) All premium variations permitted under this section must be based upon actuarially valid differences in expected cost to the health carrier of providing coverage. The variation must be justified in initial rate filings and upon request of the commissioner in rate revision filings. All premium variations are subject to approval by the commissioner.

 

Subd. 8. Filing requirement. A health carrier that offers, sells, issues, or renews a health benefit plan for small employers shall file with the commissioner the index rates and must demonstrate that all rates shall be within the rating restrictions defined in this chapter. Such demonstration must include the allowable range of rates from the index rates and a description of how the health carrier intends to use demographic factors including case characteristics in calculating the premium rates. The rates shall not be approved, unless the commissioner has determined that the rates are reasonable. In determining reasonableness, the commissioner shall consider the growth rates applied under section 62J.04, subdivision 1, paragraph (b), to the calendar year or years that the proposed premium rate would be in effect, and actuarially valid changes in risk associated with the enrollee population, and actuarially valid changes as a result of statutory changes in Laws 1992, chapter 549.

 

Subd. 9. Effect of assessments. Premium rates must comply with the rating requirements of this section, notwithstanding the imposition of any assessments or premiums paid by health carriers as provided under sections 62L.13 to 62L.22.

 

Subd. 10. Rating report. Beginning January 1, 1995, and annually thereafter, the commissioners of health and commerce shall provide a joint report to the legislature on the effect of the rating restrictions required by this section and the appropriateness of proceeding with additional rate reform. Each report must include an analysis of the availability of health care coverage due to the rating reform, the equitable and appropriate distribution of risk and associated costs, the effect on the self-insurance market, and any resulting or anticipated change in health plan design and market share and availability of health carriers.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1434

Subd. 11. Loss ratio standards. Notwithstanding section 62A.02, subdivision 3, relating to loss ratios, each policy or contract form used with respect to a health benefit plan offered, or issued in the small employer market, is subject, beginning July 1, 1993, to section 62A.021. The commissioner of health has, with respect to carriers under that commissioner's jurisdiction, all of the powers of the commissioner of commerce under that section.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 55. Minnesota Statutes 2012, section 62L.12, subdivision 2, is amended to read:

 

Subd. 2. Exceptions. (a) A health carrier may sell, issue, or renew individual conversion policies to eligible employees otherwise eligible for conversion coverage under section 62D.104 as a result of leaving a health maintenance organization's service area.

 

(b) A health carrier may sell, issue, or renew individual conversion policies to eligible employees otherwise eligible for conversion coverage as a result of the expiration of any continuation of group coverage required under sections 62A.146, 62A.17, 62A.21, 62C.142, 62D.101, and 62D.105.

 

(c) A health carrier may sell, issue, or renew conversion policies under section 62E.16 to eligible employees.

 

(d) A health carrier may sell, issue, or renew individual continuation policies to eligible employees as required.

 

(e) A health carrier may sell, issue, or renew individual health plans if the coverage is appropriate due to an unexpired preexisting condition limitation or exclusion applicable to the person under the employer's group health plan or due to the person's need for health care services not covered under the employer's group health plan.

 

(f) A health carrier may sell, issue, or renew an individual health plan, if the individual has elected to buy the individual health plan not as part of a general plan to substitute individual health plans for a group health plan nor as a result of any violation of subdivision 3 or 4.

 

(g) A health carrier may sell, issue, or renew an individual health plan if coverage provided by the employer is determined to be unaffordable under the provisions of the Affordable Care Act as defined in section 62A.011, subdivision 1a.

 

(h) Nothing in this subdivision relieves a health carrier of any obligation to provide continuation or conversion coverage otherwise required under federal or state law.

 

(h) (i) Nothing in this chapter restricts the offer, sale, issuance, or renewal of coverage issued as a supplement to Medicare under sections 62A.3099 to 62A.44, or policies or contracts that supplement Medicare issued by health maintenance organizations, or those contracts governed by sections 1833, 1851 to 1859, 1860D, or 1876 of the federal Social Security Act, United States Code, title 42, section 1395 et seq., as amended.

 

(i) (j) Nothing in this chapter restricts the offer, sale, issuance, or renewal of individual health plans necessary to comply with a court order.

 

(j) (k) A health carrier may offer, issue, sell, or renew an individual health plan to persons eligible for an employer group health plan, if the individual health plan is a high deductible health plan for use in connection with an existing health savings account, in compliance with the Internal Revenue Code, section 223. In that situation, the same or a different health carrier may offer, issue, sell, or renew a group health plan to cover the other eligible employees in the group.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1435

(k) (l) A health carrier may offer, sell, issue, or renew an individual health plan to one or more employees of a small employer if the individual health plan is marketed directly to all employees of the small employer and the small employer does not contribute directly or indirectly to the premiums or facilitate the administration of the individual health plan. The requirement to market an individual health plan to all employees does not require the health carrier to offer or issue an individual health plan to any employee. For purposes of this paragraph, an employer is not contributing to the premiums or facilitating the administration of the individual health plan if the employer does not contribute to the premium and merely collects the premiums from an employee's wages or salary through payroll deductions and submits payment for the premiums of one or more employees in a lump sum to the health carrier. Except for coverage under section 62A.65, subdivision 5, paragraph (b), or 62E.16, at the request of an employee, the health carrier may bill the employer for the premiums payable by the employee, provided that the employer is not liable for payment except from payroll deductions for that purpose. If an employer is submitting payments under this paragraph, the health carrier shall provide a cancellation notice directly to the primary insured at least ten days prior to termination of coverage for nonpayment of premium. Individual coverage under this paragraph may be offered only if the small employer has not provided coverage under section 62L.03 to the employees within the past 12 months.

 

The employer must provide a written and signed statement to the health carrier that the employer is not contributing directly or indirectly to the employee's premiums. The health carrier may rely on the employer's statement and is not required to guarantee-issue individual health plans to the employer's other current or future employees.

 

EFFECTIVE DATE. This section is effective January 1, 2014.

 

Sec. 56. Minnesota Statutes 2012, section 62M.05, subdivision 3a, is amended to read:

 

Subd. 3a. Standard review determination. (a) Notwithstanding subdivision 3b, an initial determination on all requests for utilization review must be communicated to the provider and enrollee in accordance with this subdivision within ten business days of the request, provided that all information reasonably necessary to make a determination on the request has been made available to the utilization review organization.

 

(b) When an initial determination is made to certify, notification must be provided promptly by telephone to the provider. The utilization review organization shall send written notification to the provider or shall maintain an audit trail of the determination and telephone notification. For purposes of this subdivision, "audit trail" includes documentation of the telephone notification, including the date; the name of the person spoken to; the enrollee; the service, procedure, or admission certified; and the date of the service, procedure, or admission. If the utilization review organization indicates certification by use of a number, the number must be called the "certification number." For purposes of this subdivision, notification may also be made by facsimile to a verified number or by electronic mail to a secure electronic mailbox. These electronic forms of notification satisfy the "audit trail" requirement of this paragraph.

 

(c) When an initial determination is made not to certify, notification must be provided by telephone, by facsimile to a verified number, or by electronic mail to a secure electronic mailbox within one working day after making the determination to the attending health care professional and hospital as applicable. Written notification must also be sent to the hospital as applicable and attending health care professional if notification occurred by telephone. For purposes of this subdivision, notification may be made by facsimile to a verified number or by electronic mail to a secure electronic mailbox. Written notification must be sent to the enrollee and may be sent by United States mail, facsimile to a verified number, or by electronic mail to a secure mailbox. The written notification must include the principal reason or reasons for the determination and the process for initiating an appeal of the determination. Upon request, the utilization review organization shall provide the provider or enrollee with the criteria used to determine the necessity, appropriateness, and efficacy of the health care service and identify the database, professional treatment parameter, or other basis for the criteria. Reasons for a determination not to certify may include, among other things, the lack of adequate information to certify after a reasonable attempt has been made to contact the provider or enrollee.


Journal of the House - 28th Day - Wednesday, March 20, 2013 - Top of Page 1436

(d) When an initial determination is made not to certify, the written notification must inform the enrollee and the attending health care professional of the right to submit an appeal to the internal appeal process described in section 62M.06 and the procedure for initiating the internal appeal. The written notice shall be provided in a culturally and linguistically appropriate manner consistent with the provisions of the Affordable Care Act as defined under section 62A.011, subdivision 1a.

 

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

 

Sec. 57. Minnesota Statutes 2012, section 62M.06, subdivision 1, is amended to read:

 

Subdivision 1. Procedures for appeal. A utilization review organization must have written procedures for appeals of determinations not to certify. The right to appeal must be available to the enrollee and to the attending health care professional. The enrollee shall be allowed to review the information relied upon in the course of the appeal, present evidence and testimony as part of the appeals process, and receive continued coverage pending the outcome of the appeals process.

 

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

 

Sec. 58. Minnesota Statutes 2012, section 62Q.01, is amended by adding a subdivision to read:

 

Subd. 1a. Affordable Care Act. "Affordable Care Act" means the Affordable Care Act as defined in section 62A.011, subdivision 1a.

 

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

 

Sec. 59. Minnesota Statutes 2012, section 62Q.01, is amended by adding a subdivision to read:

 

Subd. 1b. Bona fide association. "Bona fide association" means an association that meets all of the following criteria:

 

(1) serves a single profession that requires a significant amount of education, training or experience, or a license or certificate from a state authority to practice that profession;

 

(2) has been actively in existence for five years;

 

(3) has a constitution and bylaws or other analogous governing documents;

 

(4) has been formed and maintained in good faith for purposes other than obtaining insurance;