Engrossments
Introduction		Posted on 03/07/2007

ARTICLE 2

UNIVERSAL COVERAGE

Section 1.

Minnesota Statutes 2006, section 62A.65, is amended by adding a
subdivision to read:

new text begin Subd. 1a. new text end

new text begin Guaranteed issuance. new text end

new text begin All health plan companies participating in the
individual market must offer and make available on a guaranteed issue basis the qualified
minimum coverage specified under section 62Q.167.
new text end

Sec. 2.

Minnesota Statutes 2006, section 62E.02, subdivision 7, is amended to read:

Subd. 7.

Dependent.

"Dependent" means a spouse or unmarried child under the age
of deleted text begin 19deleted text end new text begin 25new text end yearsdeleted text begin , a dependent child who is a student under the age of 25,deleted text end or a dependent
child of any age who is disabled.

Sec. 3.

Minnesota Statutes 2006, 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 deleted text begin 19deleted text end new text begin 25new text end years, deleted text begin unmarried child under the age of 25
years who is a full-time student as defined in section 62A.301,deleted text end 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.

Sec. 4.

Minnesota Statutes 2006, section 62Q.165, is amended to read:

62Q.165 UNIVERSAL COVERAGE.

Subdivision 1.

Definition.

It is the commitment of the state to achieve universal
health coverage for all Minnesotansnew text begin by the year 2011new text end . Universal coverage is achieved
when:

(1) every Minnesotan has access to a full range of quality health care services;

(2) every Minnesotan is able to obtain affordable health coverage which pays for the
full range of services, including preventive and primary care; and

(3) every Minnesotan pays into the health care system according to that person's
ability.

Subd. 2.

Goal.

It is the goal of the state to make continuous progress toward
reducing the number of Minnesotans who do not have health coverage so that by January
1, deleted text begin 2000deleted text end new text begin 2011new text end , deleted text begin fewer than four percent of the state's population will be without health
coveragedeleted text end new text begin all Minnesota residents have access to affordable health coveragenew text end . The goal will
be achieved by improving access to private health coverage through insurance reforms and
market reforms, by making health coverage more affordable for low-income Minnesotans
through purchasing pools and state subsidies, and by reducing the cost of health coverage
through cost containment programs and methods of ensuring that all Minnesotans are
paying into the system according to their ability.

new text begin Subd. 4. new text end

new text begin Coverage required. new text end

new text begin (a) In order to ensure that every Minnesotan receives
cost-effective primary and preventive care services necessary to maintain health, has
coverage to pay for needed treatment so that the costs are not shifted to other Minnesotans,
and pays a fair share of the cost of coverage and treatment, every Minnesotan is required
to have health coverage that satisfies the minimum coverage requirements in section
62Q.167. The parent or legal guardian of a minor child is required to maintain coverage
for the child.
new text end

new text begin (b) All health plan companies are required to issue coverage to any individual or
family that seeks coverage, as provided in section 62A.65, subdivision 1a.
new text end

new text begin (c) Individuals or families who are unable to pay the full costs of private health
coverage due to income are eligible to receive a subsidy or tax credit or to enroll in
MinnesotaCare, medical assistance, or general assistance medical care.
new text end

new text begin (d) The Minnesota Health Care Access Portal established under section 62Q.168
shall provide information and assistance to Minnesotans regarding their responsibility to
have health coverage and the options available to them. The portal shall contact uninsured
individuals reported under section 62Q.166 to inform them of their responsibility and
options and shall require these individuals to provide proof of health coverage within
60 days.
new text end

Sec. 5.

new text begin [62Q.166] HEALTH COVERAGE FOR UNINSURED PERSONS.
new text end

new text begin Subdivision 1. new text end

new text begin Commissioner of commerce. new text end

new text begin The commissioner of commerce
shall identify individuals without health coverage and provide these individuals with
information about Minnesota's coverage requirement and options for obtaining health
coverage.
new text end

new text begin Subd. 2. new text end

new text begin Employers. new text end

new text begin All employers subject to chapter 268 must:
new text end

new text begin (1) collect additional income tax withholding, in the manner specified by the
commissioner of revenue under subdivision 3;
new text end

new text begin (2) report to the Minnesota Health Care Access Portal, in the manner specified by
the portal, the name, address, and telephone numbers of any employees who do not obtain
health coverage through the employer and do not provide the employer with proof that
coverage is maintained from another source; and
new text end

new text begin (3) offer a plan for pretax withholding and payment of employee health plan
premiums and health expenses as authorized under section 125 of the Internal Revenue
Code.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner of revenue. new text end

new text begin The commissioner of revenue, in consultation
with the commissioners of health and commerce, shall develop and administer a method
for collecting information through the individual income tax return to determine whether a
taxpayer, and any spouse or dependents, maintained the health coverage required by law
and to assess an additional fair-share tax equivalent to the average premium charged by
the Minnesota Comprehensive Health Association for each individual, for each month
during which the required coverage was not maintained. The method must include a
process for employers to collect additional income tax withholding from employees who
do not obtain health coverage through the employer and do not provide the employer with
proof that coverage is maintained from another source. The collection methodology must
be tested and operational prior to the implementation of the guaranteed issue requirements
of section 62A.65.
new text end

new text begin Subd. 4. new text end

new text begin Health care providers. new text end

new text begin Any health care professional, institution, or facility
that is licensed by the state or a licensing board or is authorized to receive payments
from a health plan company or state or federal health care program, is required to report
to the Minnesota Health Care Portal the name, address, and telephone numbers of any
patient seeking treatment who does not have health coverage, within seven days of first
contact with the patient.
new text end

new text begin Subd. 5. new text end

new text begin Health plan companies. new text end

new text begin All health plan companies shall file with the
commissioner of commerce, at the time and in the format specified by the commissioner,
the names and other information required by the commissioner for all persons who were
enrolled in a health plan during a period specified by the commissioner. The commissioner
shall compare data on persons covered by health plan companies, state health care
programs, and public employers with drivers' license records, income tax records, or other
available sources of data to identify persons for whom there is no evidence of coverage,
and shall inform the Minnesota Health Care Access Portal.
new text end

Sec. 6.

new text begin [62Q.167] QUALIFIED MINIMUM COVERAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Required offering. new text end

new text begin All health plan companies must offer a health
plan that is designated as the basic health plan and that provides the coverage specified
in this section and satisfies all requirements of this section. Health plan companies may
offer additional health plans, in addition to the basic health plan, to the extent otherwise
authorized by law, provided that all health plans offered by the health plan company must
cover at least the mandated minimum coverage specified in this section and satisfy the
other requirements of this section.
new text end

new text begin Subd. 2. new text end

new text begin Coverage of preventive services. new text end

new text begin Notwithstanding any other law, the
basic health plan and all other health plans offered by a health plan company must cover
health education, health supervision including evaluation and follow-up, immunization,
and early disease detection, without a deductible. A co-payment may be charged for
services covered under this subdivision to the extent authorized by other laws. The
commissioner of commerce shall adopt rules specifying a maximum co-payment for these
services at an amount that will not impede access to these services.
new text end

new text begin Subd. 3. new text end

new text begin Covered services. new text end

new text begin The basic health plan must include all covered benefits
required by law, following submittal of recommendations by the commissioner of
commerce under section 13, subdivision 3.
new text end

new text begin Subd. 4. new text end

new text begin Coverage of prescription drugs. new text end

new text begin The basic health plan may have a drug
formulary and shall require substitution of generic equivalents when available.
new text end

new text begin Subd. 5. new text end

new text begin Coverage of cost-effective services. new text end

new text begin The commissioners of health and
commerce shall convene an expert advisory panel consisting of researchers, actuaries,
and other persons with experience and knowledge relating to the analysis of the cost
impact of coverage of specified benefits. The panel shall assess available research to
identify services which, if covered without a deductible and with minimum co-payments,
are likely to result in savings that are equal to or greater than the cost of providing the
service. Among other activities, the panel shall determine what preventive services
should be covered under section 62Q.167, subdivision 2, based on an analysis of the
recommendations of the United States Preventive Services Task Force and other relevant
research and analysis. The commissioners shall annually report on the panel's findings
to the governor and to the chairs of the house and senate committees with jurisdiction
over health care finance and policy and provide recommendations regarding whether
certain services shall be covered without a deductible and with a maximum co-payment
as determined by the commissioner under subdivision 2.
new text end

new text begin Subd. 6. new text end

new text begin Maximum deductible. new text end

new text begin No health plan may include an annual deductible
greater than $10,000 per person.
new text end

new text begin Subd. 7. new text end

new text begin Out-of-pocket maximum benefit. new text end

new text begin No health plan may include an annual
out-of-pocket maximum greater than $10,000 per person.
new text end

new text begin Subd. 8. new text end

new text begin Lifetime maximum benefit. new text end

new text begin No health plan may include a lifetime
maximum benefit.
new text end

new text begin Subd. 9. new text end

new text begin Premiums. new text end

new text begin Qualified minimum coverage plans are subject to the
underwriting and rating requirements of section 62L.08.
new text end

Sec. 7.

new text begin [62Q.168] MINNESOTA HEALTH CARE ACCESS PORTAL.
new text end

new text begin Subdivision 1. new text end

new text begin Creation; tax exemption. new text end

new text begin The Minnesota Health Care Access
Portal is established as a public corporation to promote the public health and welfare of
the state of Minnesota. The corporation is exempt from the taxes imposed under chapter
297I and any other laws of this state, and all property owned by the association is exempt
from taxation.
new text end

new text begin Subd. 2. new text end

new text begin Board of directors. new text end

new text begin The board of directors of the corporation shall be
comprised of 12 members appointed by the governor, ten of whom must have expertise
in health plan administration, health plan marketing and outreach, health care benefit
development, actuarial analysis, or the provision of medical and other health care services,
and two of whom must be enrolled in a health plan offered through the individual market
and represent consumers.
new text end

new text begin Subd. 3. new text end

new text begin General powers. new text end

new text begin The corporation may:
new text end

new text begin (1) exercise the powers granted to insurers under the laws of this state;
new text end

new text begin (2) sue or be sued;
new text end

new text begin (3) enter into contracts with insurers, similar organizations in other states, or with
other persons for the performance of administrative functions; and
new text end

new text begin (4) establish administrative and accounting procedures for the operation of the
corporation.
new text end

new text begin Subd. 4. new text end

new text begin Exemption from administrative procedures. new text end

new text begin The corporation is exempt
from the rulemaking requirements of chapter 14, but to the extent authorized by law to
adopt rules, the corporation may use the provisions of section 14.386, paragraph (a),
clauses (1) and (3). Section 14.386, paragraph (b), does not apply to these rules.
new text end

new text begin Subd. 5. new text end

new text begin Purpose. new text end

new text begin The corporation's purpose is to improve access of individuals,
families, and employers to an array of private health insurance plans and to administer
public subsidies for eligible persons. The corporation shall provide information and
assistance on health plan options to persons seeking coverage. The corporation shall
administer subsidy programs authorized by law. The corporation shall receive information
about uninsured persons reported under section 62Q.166 and shall contact those persons,
inform them of their responsibility and options, and require them to provide proof of
coverage within 60 days.
new text end

new text begin Subd. 6. new text end

new text begin Risk adjustment. new text end

new text begin The corporation shall administer a risk-adjustment
mechanism to spread the risk of high-cost enrollees across all purchasers and health plan
companies.
new text end

new text begin Subd. 7. new text end

new text begin Combining employer contributions. new text end

new text begin The corporation shall administer
a program to enable persons and families who have access to more than one
employer-sponsored health plan to combine the multiple employer contributions toward
the purchase of a single health plan, to the extent permitted by law.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2007.
new text end

Sec. 8.

Minnesota Statutes 2006, section 256L.07, subdivision 1, is amended to read:

Subdivision 1.

General requirements.

(a) Children enrolled in the original
children's health plan as of September 30, 1992, children who enrolled in the
MinnesotaCare program after September 30, 1992, pursuant to Laws 1992, chapter 549,
article 4, section 17, and children who have family gross incomes that are equal to or
less than 150 percent of the federal poverty guidelines are eligible without meeting
the requirements of subdivision 2 deleted text begin and the four-month requirement in subdivision 3deleted text end , as
long as they maintain continuous coverage in the MinnesotaCare program or medical
assistance. Children who apply for MinnesotaCare on or after the implementation date
of the employer-subsidized health coverage program as described in Laws 1998, chapter
407, article 5, section 45, who have family gross incomes that are equal to or less than 150
percent of the federal poverty guidelines, must meet the requirements of subdivision 2 to
be eligible for MinnesotaCare.

(b) Families enrolled in MinnesotaCare under section 256L.04, subdivision 1, whose
income increases above 275 percent of the federal poverty guidelines, are no longer
eligible for the program and shall be disenrolled by the commissioner. Individuals enrolled
in MinnesotaCare under section 256L.04, subdivision 7, whose income increases above
175 percent of the federal poverty guidelines are no longer eligible for the program and
shall be disenrolled by the commissioner. For persons disenrolled under this subdivision,
MinnesotaCare coverage terminates the last day of the calendar month following the
month in which the commissioner determines that the income of a family or individual
exceeds program income limits.

(c) Notwithstanding paragraph (b), children may remain enrolled in MinnesotaCare
if ten percent of their gross individual or gross family income as defined in section
256L.01, subdivision 4, is less than the premium for a six-month policy with a $500
deductible available through the Minnesota Comprehensive Health Association. Children
who are no longer eligible for MinnesotaCare under this clause shall be given a 12-month
notice period from the date that ineligibility is determined before disenrollment. The
premium for children remaining eligible under this clause shall be the maximum premium
determined under section 256L.15, subdivision 2, paragraph (b).

(d) Notwithstanding paragraphs (b) and (c), parents are not eligible for
MinnesotaCare if gross household income exceeds $25,000 for the six-month period
of eligibility.

Sec. 9.

Minnesota Statutes 2006, section 256L.07, subdivision 3, is amended to read:

Subd. 3.

Other health coverage.

(a) Families and individuals enrolled in the
MinnesotaCare program must have no health coverage while enrolled deleted text begin or for at least four
months prior to application and renewaldeleted text end . Children enrolled in the original children's health
plan and children in families with income equal to or less than 150 percent of the federal
poverty guidelines, who have other health insurance, are eligible if the coverage:

(1) lacks two or more of the following:

(i) basic hospital insurance;

(ii) medical-surgical insurance;

(iii) prescription drug coverage;

(iv) dental coverage; or

(v) vision coverage;

(2) requires a deductible of $100 or more per person per year; or

(3) lacks coverage because the child has exceeded the maximum coverage for a
particular diagnosis or the policy excludes a particular diagnosis.

The commissioner may change this eligibility criterion for sliding scale premiums
in order to remain within the limits of available appropriations. The requirement of no
health coverage does not apply to newborns.

(b) Medical assistance, general assistance medical care, and the Civilian Health and
Medical Program of the Uniformed Service, CHAMPUS, or other coverage provided under
United States Code, title 10, subtitle A, part II, chapter 55, are not considered insurance or
health coverage for purposes of the four-month requirement described in this subdivision.

(c) For purposes of this subdivision, an applicant or enrollee who is entitled to
Medicare Part A or enrolled in Medicare Part B coverage under title XVIII of the Social
Security Act, United States Code, title 42, sections 1395c to 1395w-152, is considered to
have health coverage. An applicant or enrollee who is entitled to premium-free Medicare
Part A may not refuse to apply for or enroll in Medicare coverage to establish eligibility
for MinnesotaCare.

(d) Applicants who were recipients of medical assistance or general assistance
medical care within one month of application must meet the provisions of this subdivision
and subdivision 2.

(e) Cost-effective health insurance that was paid for by medical assistance is not
considered health coverage for purposes of the four-month requirement under this
section, except if the insurance continued after medical assistance no longer considered it
cost-effective or after medical assistance closed.

Sec. 10.

Minnesota Statutes 2006, section 290.01, subdivision 19b, as amended by
Laws 2007, chapter 1, section 2, is amended to read:

Subd. 19b.

Subtractions from federal taxable income.

For individuals, estates,
and trusts, there shall be subtracted from federal taxable income:

(1) net interest income on obligations of any authority, commission, or
instrumentality of the United States to the extent includable in taxable income for federal
income tax purposes but exempt from state income tax under the laws of the United States;

(2) if included in federal taxable income, the amount of any overpayment of income
tax to Minnesota or to any other state, for any previous taxable year, whether the amount
is received as a refund or as a credit to another taxable year's income tax liability;

(3) the amount paid to others, less the amount used to claim the credit allowed under
section 290.0674, not to exceed $1,625 for each qualifying child in grades kindergarten
to 6 and $2,500 for each qualifying child in grades 7 to 12, for tuition, textbooks, and
transportation of each qualifying child in attending an elementary or secondary school
situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a
resident of this state may legally fulfill the state's compulsory attendance laws, which
is not operated for profit, and which adheres to the provisions of the Civil Rights Act
of 1964 and chapter 363A. For the purposes of this clause, "tuition" includes fees or
tuition as defined in section 290.0674, subdivision 1, clause (1). As used in this clause,
"textbooks" includes books and other instructional materials and equipment purchased
or leased for use in elementary and secondary schools in teaching only those subjects
legally and commonly taught in public elementary and secondary schools in this state.
Equipment expenses qualifying for deduction includes expenses as defined and limited in
section 290.0674, subdivision 1, clause (3). "Textbooks" does not include instructional
books and materials used in the teaching of religious tenets, doctrines, or worship, the
purpose of which is to instill such tenets, doctrines, or worship, nor does it include books
or materials for, or transportation to, extracurricular activities including sporting events,
musical or dramatic events, speech activities, driver's education, or similar programs. For
purposes of the subtraction provided by this clause, "qualifying child" has the meaning
given in section 32(c)(3) of the Internal Revenue Code;

(4) income as provided under section 290.0802;

(5) to the extent included in federal adjusted gross income, income realized on
disposition of property exempt from tax under section 290.491;

(6) to the extent not deducted or not deductible pursuant to section 408(d)(8)(E)
of the Internal Revenue Code in determining federal taxable income by an individual
who does not itemize deductions for federal income tax purposes for the taxable year, an
amount equal to 50 percent of the excess of charitable contributions over $500 allowable
as a deduction for the taxable year under section 170(a) of the Internal Revenue Code and
under the provisions of Public Law 109-1;

(7) for taxable years beginning before January 1, 2008, the amount of the federal
small ethanol producer credit allowed under section 40(a)(3) of the Internal Revenue Code
which is included in gross income under section 87 of the Internal Revenue Code;

(8) for individuals who are allowed a federal foreign tax credit for taxes that do not
qualify for a credit under section 290.06, subdivision 22, an amount equal to the carryover
of subnational foreign taxes for the taxable year, but not to exceed the total subnational
foreign taxes reported in claiming the foreign tax credit. For purposes of this clause,
"federal foreign tax credit" means the credit allowed under section 27 of the Internal
Revenue Code, and "carryover of subnational foreign taxes" equals the carryover allowed
under section 904(c) of the Internal Revenue Code minus national level foreign taxes to
the extent they exceed the federal foreign tax credit;

(9) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (7), or 19c, clause (15), in the case
of a shareholder of a corporation that is an S corporation, an amount equal to one-fifth
of the delayed depreciation. For purposes of this clause, "delayed depreciation" means
the amount of the addition made by the taxpayer under subdivision 19a, clause (7), or
subdivision 19c, clause (15), in the case of a shareholder of an S corporation, minus the
positive value of any net operating loss under section 172 of the Internal Revenue Code
generated for the tax year of the addition. The resulting delayed depreciation cannot be
less than zero;

(10) job opportunity building zone income as provided under section 469.316;

(11) the amount of compensation paid to members of the Minnesota National Guard
or other reserve components of the United States military for active service performed
in Minnesota, excluding compensation for services performed under the Active Guard
Reserve (AGR) program. For purposes of this clause, "active service" means (i) state
active service as defined in section 190.05, subdivision 5a, clause (1); (ii) federally
funded state active service as defined in section 190.05, subdivision 5b; or (iii) federal
active service as defined in section 190.05, subdivision 5c, but "active service" excludes
services performed exclusively for purposes of basic combat training, advanced individual
training, annual training, and periodic inactive duty training; special training periodically
made available to reserve members; and service performed in accordance with section
190.08, subdivision 3;

(12) the amount of compensation paid to Minnesota residents who are members
of the armed forces of the United States or United Nations for active duty performed
outside Minnesota;

(13) an amount, not to exceed $10,000, equal to qualified expenses related to a
qualified donor's donation, while living, of one or more of the qualified donor's organs
to another person for human organ transplantation. For purposes of this clause, "organ"
means all or part of an individual's liver, pancreas, kidney, intestine, lung, or bone marrow;
"human organ transplantation" means the medical procedure by which transfer of a human
organ is made from the body of one person to the body of another person; "qualified
expenses" means unreimbursed expenses for both the individual and the qualified donor
for (i) travel, (ii) lodging, and (iii) lost wages net of sick pay, except that such expenses
may be subtracted under this clause only once; and "qualified donor" means the individual
or the individual's dependent, as defined in section 152 of the Internal Revenue Code. An
individual may claim the subtraction in this clause for each instance of organ donation for
transplantation during the taxable year in which the qualified expenses occur;

(14) in each of the five tax years immediately following the tax year in which an
addition is required under subdivision 19a, clause (8), or 19c, clause (16), in the case of a
shareholder of a corporation that is an S corporation, an amount equal to one-fifth of the
addition made by the taxpayer under subdivision 19a, clause (8), or 19c, clause (16), in the
case of a shareholder of a corporation that is an S corporation, minus the positive value of
any net operating loss under section 172 of the Internal Revenue Code generated for the
tax year of the addition. If the net operating loss exceeds the addition for the tax year, a
subtraction is not allowed under this clause;

(15) to the extent included in federal taxable income, compensation paid to a
nonresident who is a service member as defined in United States Code, title 10, section
101(a)(5), for military service as defined in the Service Member Civil Relief Act, Public
Law 108-189, section 101(2); deleted text begin and
deleted text end

(16) international economic development zone income as provided under section
469.325deleted text begin .deleted text end new text begin ; and
new text end

new text begin (17) to the extent not deducted in computing or otherwise excluded from federal
taxable income or used to compute the credit under section 290.0672, amounts paid
during the taxable year for insurance as defined in section 213(d)(1)(D) of the Internal
Revenue Code.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 11.

new text begin [290.0678] EXCESS HEALTH CARE COST CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin An individual is allowed a credit against the tax
under this chapter equal to the amount by which the total paid by the individual for health
care costs exceeds a?|. percent of the individual's income
new text end

new text begin Subd. 1a. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Income" has the meaning given in section 290.067, subdivision 2a.
new text end

new text begin (c) "Health care costs" means health plan premiums and co-payments and deductible
amounts paid by the individual or spouse for covered health care services, drugs, devices,
and equipment received by the individual, the individual's spouse, or the individual's
dependent.
new text end

new text begin (d) "Dependent" has the meaning given in section 152(a) of the Internal Revenue
Code.
new text end

new text begin Subd. 2. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit which a claimant is eligible
to receive under this section exceeds the claimant's tax liability under this chapter, the
commissioner shall refund the excess to the claimant.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin An amount sufficient to pay the refunds required by this
section is annually appropriated to the commissioner from the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Right to credit. new text end

new text begin The right to file a claim under this section shall be personal
to the claimant and shall not survive death, but such right may be exercised on behalf of
a claimant by the claimant's legal guardian or attorney-in-fact. When a claimant dies
after having filed a timely claim, the amount of the claim shall be paid to the claimant's
surviving spouse or dependent. If there is no surviving spouse or dependent, the claim may
be paid to the claimant's personal representative, but if none is appointed and qualified
within two years of the filing of the claim, the amount of the claim shall escheat to the state.
new text end

Sec. 12.

Minnesota Statutes 2006, section 290.091, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For purposes of the tax imposed by this section, the following
terms have the meanings given:

(a) "Alternative minimum taxable income" means the sum of the following for
the taxable year:

(1) the taxpayer's federal alternative minimum taxable income as defined in section
55(b)(2) of the Internal Revenue Code;

(2) the taxpayer's itemized deductions allowed in computing federal alternative
minimum taxable income, but excluding:

(i) the charitable contribution deduction under section 170 of the Internal Revenue
Code:

(A) for taxable years beginning before January 1, 2006, to the extent that the
deduction exceeds 1.0 percent of adjusted gross income;

(B) for taxable years beginning after December 31, 2005, to the full extent of the
deduction.

For purposes of this clause, "adjusted gross income" has the meaning given in
section 62 of the Internal Revenue Code;

(ii) the medical expense deduction;

(iii) the casualty, theft, and disaster loss deduction; and

(iv) the impairment-related work expenses of a disabled person;

(3) for depletion allowances computed under section 613A(c) of the Internal
Revenue Code, with respect to each property (as defined in section 614 of the Internal
Revenue Code), to the extent not included in federal alternative minimum taxable income,
the excess of the deduction for depletion allowable under section 611 of the Internal
Revenue Code for the taxable year over the adjusted basis of the property at the end of the
taxable year (determined without regard to the depletion deduction for the taxable year);

(4) to the extent not included in federal alternative minimum taxable income, the
amount of the tax preference for intangible drilling cost under section 57(a)(2) of the
Internal Revenue Code determined without regard to subparagraph (E);

(5) to the extent not included in federal alternative minimum taxable income, the
amount of interest income as provided by section 290.01, subdivision 19a, clause (1); and

(6) the amount of addition required by section 290.01, subdivision 19a, clauses
(7), (8), and (9);

less the sum of the amounts determined under the following:

(1) interest income as defined in section 290.01, subdivision 19b, clause (1);

(2) an overpayment of state income tax as provided by section 290.01, subdivision
19b, clause (2), to the extent included in federal alternative minimum taxable income;

(3) the amount of investment interest paid or accrued within the taxable year on
indebtedness to the extent that the amount does not exceed net investment income, as
defined in section 163(d)(4) of the Internal Revenue Code. Interest does not include
amounts deducted in computing federal adjusted gross income; and

(4) amounts subtracted from federal taxable income as provided by section 290.01,
subdivision 19b, clauses (9) to deleted text begin (16)deleted text end new text begin (17)new text end .

In the case of an estate or trust, alternative minimum taxable income must be
computed as provided in section 59(c) of the Internal Revenue Code.

(b) "Investment interest" means investment interest as defined in section 163(d)(3)
of the Internal Revenue Code.

(c) "Tentative minimum tax" equals 6.4 percent of alternative minimum taxable
income after subtracting the exemption amount determined under subdivision 3.

(d) "Regular tax" means the tax that would be imposed under this chapter (without
regard to this section and section 290.032), reduced by the sum of the nonrefundable
credits allowed under this chapter.

(e) "Net minimum tax" means the minimum tax imposed by this section.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2006.
new text end

Sec. 13. new text begin STUDIES AND REPORTS.
new text end

new text begin Subdivision 1. new text end

new text begin State subsidized health coverage. new text end

new text begin The commissioner of human
services shall present to the legislature by December 15, 2008, a report, recommendations,
and proposed legislation for changing the MinnesotaCare program sliding scale premium
structure to allow a more gradual transition from subsidized coverage to unsubsidized
coverage as income increases.
new text end

new text begin Subd. 2. new text end

new text begin Health plan risk adjustment task force. new text end

new text begin The commissioner of commerce
shall convene a task force to identify a risk adjustment methodology that will provide for
the fair and equitable distribution of risk associated with the guaranteed issue requirement
of section 62A.65, subdivision 1a, across all purchasers and health plan companies. The
task force must include representatives of health plan companies that have experience in
risk adjustment and reinsurance programs. The risk adjustment methodology must be
operational prior to the implementation of the guaranteed issue requirement of section
62A.65, subdivision 1a. By December 15, 2008, the commissioner, after consulting
with the task force, shall present to the legislature by December 15, 2008, a report,
recommendations, and proposed legislation to establish a risk adjustment mechanism to be
administered by the Minnesota Health Care Access Portal. The proposed risk adjustment
mechanism must spread the risk of high-cost enrollees in qualified minimum coverage
plans specified in section 62Q.167 across all purchasers and health plan companies in a
market in which the qualified minimum coverage must be offered and made available on a
guaranteed issuance basis. Prior to submitting the report, the commissioner shall complete
financial analysis and modeling of the proposed mechanism.
new text end

new text begin Subd. 3. new text end

new text begin Implementation plan. new text end

new text begin The commissioner of commerce, in cooperation
with the commissioners of health, human services, employee relations, and revenue, shall
study and present to the legislature by December 15, 2008, a report, implementation plan,
and proposed legislation for the implementation of the health plan and insurance market
changes specified in this act and the structure and duties of the Minnesota Health Care
Access Portal. The commissioner shall include the following:
new text end

new text begin (1) the minimum benefit set that must be offered under qualified minimum coverage,
to be developed in consultation with consumers, employers, labor unions, health
plan companies, health care providers, public health agencies, and other persons and
organizations as determined by the commissioner;
new text end

new text begin (2) a report on the implications, advantages, and disadvantages of combining the
individual and group health plan markets; and
new text end

new text begin (3) an analysis of methods of enforcing the mandate on individuals to maintain
health coverage and recommendations for improvements or additions to the enforcement
methods specified in this article.
new text end

new text begin Subd. 4. new text end

new text begin Affordability of health plan premiums. new text end

new text begin The commissioner of health, in
cooperation with the commissioners of commerce and human services, shall study and
present recommendations to the legislature by December 15, 2007, on the maximum
amount that an individual or household should be expected to pay in a calendar year in
health plan premiums, deductibles, and co-payments before qualifying for subsidized
coverage or an income tax credit under Minnesota Statutes, section 290.067.
new text end

new text begin Subd. 5. new text end

new text begin Combining multiple employer contributions. new text end

new text begin The commissioner of
commerce shall study and provide a report and recommendations to the legislature by
December 15, 2007, on methods for the Minnesota Health Care Access Portal to enable
individuals and families to combine employer contributions and apply them toward the
purchase of a single health plan.
new text end

new text begin Subd. 6. new text end

new text begin Variable deductibles and co-payments based on income. new text end

new text begin The
commissioner of commerce shall conduct a study and provide a report and
recommendations to the legislature by December 15, 2007, on the feasibility of requiring
health plans to contain sliding scale deductibles and co-payments based on individual
and family income.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 14. new text begin APPROPRIATIONS.
new text end

new text begin The following amounts are appropriated from the general fund to the respective
commissioners or entities for the fiscal year beginning July 1, 2007, to implement this
article:
new text end

new text begin (a) $....... to the commissioner of health;
new text end

new text begin (b) $....... to the commissioner of commerce;
new text end

new text begin (c) $....... to the commissioner of human services;
new text end

new text begin (d) $....... to the commissioner of revenue; and
new text end

new text begin (e) $....... to the Minnesota Health Care Access Portal corporation.
new text end

Sec. 15. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2006, sections 62A.301; and 62A.65, subdivision 6, new text end new text begin are repealed.
new text end

Sec. 16. new text begin EFFECTIVE DATE.
new text end

new text begin Except as otherwise provided, the sections of this article are effective 180 days after
the commissioner of commerce publishes in the state register the certification required by
this section and apply to coverage offered, sold, issued, or renewed on or after that date.
The certification must declare that the following requirements have been met:
new text end

new text begin (1) a statute is in effect requiring all residents of the state to have health care
coverage;
new text end

new text begin (2) state agencies have been identified and charged with the responsibility of
monitoring and enforcing compliance with the coverage requirement;
new text end

new text begin (3) the commissioner of revenue has certified to the governor and the appropriate
legislative committees that the collection methodology required under section 62Q.166
is operational; and
new text end

new text begin (4) the commissioner of commerce has certified to the governor and the chairs of the
house and senate committees with jurisdiction over health care financing and policy and
health insurance that an appropriate risk adjustment methodology is operational.
new text end

ARTICLE 3

PROTECTING AND PROMOTING HEALTH

Section 1.

Minnesota Statutes 2006, section 120B.021, subdivision 1, is amended to
read:

Subdivision 1.

Required academic standards.

The following subject areas are
required for statewide accountability:

(1) language arts;

(2) mathematics;

(3) science;

(4) social studies, including history, geography, economics, and government and
citizenship;

(5) health and physical educationdeleted text begin , for which locally developed academic standards
applydeleted text end ; and

(6) the arts, for which statewide or locally developed academic standards apply, as
determined by the school district. Public elementary and middle schools must offer at least
three and require at least two of the following four arts areas: dance; music; theater; and
visual arts. Public high schools must offer at least three and require at least one of the
following five arts areas: media arts; dance; music; theater; and visual arts.

The commissioner must submit proposed standards in science and social studies to
the legislature by February 1, 2004.

For purposes of applicable federal law, the academic standards for language arts,
mathematics, and science apply to all public school students, except the very few students
with extreme cognitive or physical impairments for whom an individualized education
plan team has determined that the required academic standards are inappropriate.
An individualized education plan team that makes this determination must establish
alternative standards.

A school district, no later than the 2007-2008 school year, must adopt graduation
requirements that meet or exceed state graduation requirements established in law or
rule. A school district that incorporates these state graduation requirements before the
2007-2008 school year must provide students who enter the 9th grade in or before
the 2003-2004 school year the opportunity to earn a diploma based on existing locally
established graduation requirements in effect when the students entered the 9th grade.
District efforts to develop, implement, or improve instruction or curriculum as a result
of the provisions of this section must be consistent with sections 120B.10, 120B.11,
and 120B.20.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment,
except that clause (5) applies to students entering the ninth grade in the 2008-2009 school
year and later.
new text end

Sec. 2.

Minnesota Statutes 2006, section 120B.023, subdivision 2, is amended to read:

Subd. 2.

Revisions and reviews required.

(a) The commissioner of education must
revise and appropriately embed technology and information literacy standards consistent
with recommendations from school media specialists into the state's academic standards
and graduation requirements and implement a review cycle for state academic standards
and related benchmarks, consistent with this subdivision. During each review cycle, the
commissioner also must examine the alignment of each required academic standard and
related benchmark with the knowledge and skills students need for college readiness and
advanced work in the particular subject area.

(b) The commissioner in the 2006-2007 school year must revise and align the state's
academic standards and high school graduation requirements in mathematics to require
that students satisfactorily complete the revised mathematics standards, beginning in the
2010-2011 school year. Under the revised standards:

(1) students must satisfactorily complete an algebra I credit by the end of eighth
grade; and

(2) students scheduled to graduate in the 2014-2015 school year or later must
satisfactorily complete an algebra II credit or its equivalent.

The commissioner also must ensure that the statewide mathematics assessments
administered to students in grades 3 through 8 and 11 beginning in the 2010-2011
school year are aligned with the state academic standards in mathematics. The statewide
11th grade mathematics test administered to students under clause (2) beginning in
the 2013-2014 school year must include algebra II test items that are aligned with
corresponding state academic standards in mathematics. The commissioner must
implement a review of the academic standards and related benchmarks in mathematics
beginning in the 2015-2016 school year.

(c) The commissioner in the 2007-2008 school year must revise and align the state's
academic standards and high school graduation requirements in the arts to require that
students satisfactorily complete the revised arts standards beginning in the 2010-2011
school year. The commissioner must implement a review of the academic standards and
related benchmarks in arts beginning in the 2016-2017 school year.

(d) The commissioner in the 2008-2009 school year must revise and align the state's
academic standards and high school graduation requirements in science to require that
students satisfactorily complete the revised science standards, beginning in the 2011-2012
school year. Under the revised standards, students scheduled to graduate in the 2014-2015
school year or later must satisfactorily complete a chemistry or physics credit. The
commissioner must implement a review of the academic standards and related benchmarks
in science beginning in the 2017-2018 school year.

(e) The commissioner in the 2009-2010 school year must revise and align the state's
academic standards and high school graduation requirements in language arts to require
that students satisfactorily complete the revised language arts standards beginning in the
2012-2013 school year. The commissioner must implement a review of the academic
standards and related benchmarks in language arts beginning in the 2018-2019 school year.

(f) The commissioner in the 2010-2011 school year must revise and align the state's
academic standards and high school graduation requirements in social studies to require
that students satisfactorily complete the revised social studies standards beginning in the
2013-2014 school year. The commissioner must implement a review of the academic
standards and related benchmarks in social studies beginning in the 2019-2020 school year.

(g) School districts and charter schools must revise and align local academic
standards and high school graduation requirements in deleted text begin health, physical education,deleted text end world
languagesdeleted text begin ,deleted text end and career and technical education to require students to complete the revised
standards beginning in a school year determined by the school district or charter school.
School districts and charter schools must formally establish a periodic review cycle for
the academic standards and related benchmarks in deleted text begin health, physical education,deleted text end world
languagesdeleted text begin ,deleted text end and career and technical education.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to students entering the ninth grade in the 2008-2009 school year and later.
new text end

Sec. 3.

Minnesota Statutes 2006, section 120B.024, is amended to read:

120B.024 GRADUATION REQUIREMENTS; COURSE CREDITS.

(a) Students beginning 9th grade in the 2004-2005 school year and later must
successfully complete the following high school level course credits for graduation:

(1) four credits of language arts;

(2) three credits of mathematics, encompassing at least algebra, geometry, statistics,
and probability sufficient to satisfy the academic standard;

(3) three credits of science, including at least one credit in biology;

(4) three and one-half credits of social studies, encompassing at least United
States history, geography, government and citizenship, world history, and economics or
three credits of social studies encompassing at least United States history, geography,
government and citizenship, and world history, and one-half credit of economics taught in
a school's social studies, agriculture education, or business department;

(5) one credit in the arts; deleted text begin and
deleted text end

(6) new text begin one-half credit in physical education and one-half credit in health education; and
new text end

new text begin (7) new text end a minimum of deleted text begin sevendeleted text end new text begin sixnew text end elective course credits.

A course credit is equivalent to a student successfully completing an academic
year of study or a student mastering the applicable subject matter, as determined by the
local school district.

(b) An agriculture science course may fulfill a science credit requirement in addition
to the specified science credits in biology and chemistry or physics under paragraph (a),
clause (3).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to students entering the ninth grade in the 2008-2009 school year and later.
new text end

Sec. 4.

new text begin [121A.215] LOCAL SCHOOL WELLNESS.
new text end

new text begin The commissioner of education shall evaluate local school wellness policies in
order to understand the differences between policies, highlight innovation, and encourage
improvement. The commissioner shall establish continuing education requirements for
nutrition for school lunch program staff.
new text end

Sec. 5. new text begin REPORT ON GAPS IN PUBLIC HEALTH SERVICES AND FUNDING.
new text end

new text begin The commissioner of health shall conduct a comprehensive gap analysis of
Minnesota's public health infrastructure, including governmental public health agency
capacity, structure, and funding for activities that are required to provide essential public
health services at the state and local public health level. The commissioner shall also
inventory private sector capacity to collaborate with the government sector on public
health initiatives. The commissioner shall submit a report and recommendations to the
legislature by December 15, 2007, on how to achieve a more stable and reliable funding
source for the public health system.
new text end

Sec. 6. new text begin HEALTHY COMMUNITIES INITIATIVE.
new text end

new text begin The commissioner of health shall administer grants and financial incentive programs
to encourage communities to implement urban and community planning designs and
templates that foster healthy lifestyles. By December 15, 2007, the commissioner shall
submit a report to the governor and the legislature containing recommendations on the
administration, funding, and requirements for the programs.
new text end

Sec. 7. new text begin RULEMAKING AUTHORITY.
new text end

new text begin The commissioner of education shall adopt rules under Minnesota Statutes, chapter
14, for health and physical education standards required for high school graduation,
consistent with Minnesota Statutes, section 120B.024.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 8. new text begin APPROPRIATIONS.
new text end

new text begin (a) $....... is appropriated from the general fund to the commissioner of education for
the fiscal year beginning July 1, 2007, to implement section 4.
new text end

new text begin (b) $....... is appropriated from the general fund to the commissioner of health for the
fiscal year beginning July 1, 2007, to implement sections 5 and 6.
new text end

SF 1689

Bill Text Versions

ARTICLE 1

MEDICAL HOME

Section 1. new text begin HEALTH CARE PAYMENT REFORM PILOT PROJECTS.new text end

new text begin Subdivision 1. new text end

new text begin Pilot projects. new text end

new text begin Subd. 2. new text end

new text begin Payment methods and incentives. new text end

new text begin Subd. 3. new text end

new text begin Requirements. new text end

new text begin Subd. 4. new text end

new text begin Evaluation. new text end

new text begin Subd. 5. new text end

new text begin Regulatory and payment barriers. new text end

Sec. 2. new text begin APPROPRIATIONS.new text end

ARTICLE 2

UNIVERSAL COVERAGE

Section 1.

new text begin Subd. 1a. new text end

new text begin Guaranteed issuance. new text end

Sec. 2.

Subd. 7.

Dependent.

Sec. 3.

Subd. 11.

Dependent.

Sec. 4.

62Q.165 UNIVERSAL COVERAGE.

Subdivision 1.

Definition.

Subd. 2.

Goal.

new text begin Subd. 4. new text end

new text begin Coverage required. new text end

Sec. 5.

new text begin [62Q.166] HEALTH COVERAGE FOR UNINSURED PERSONS. new text end

new text begin Subdivision 1. new text end

new text begin Commissioner of commerce. new text end

new text begin Subd. 2. new text end

new text begin Employers. new text end

new text begin Subd. 3. new text end

new text begin Commissioner of revenue. new text end

new text begin Subd. 4. new text end

new text begin Health care providers. new text end

new text begin Subd. 5. new text end

new text begin Health plan companies. new text end

Sec. 6.

new text begin [62Q.167] QUALIFIED MINIMUM COVERAGE. new text end

new text begin Subdivision 1. new text end

new text begin Required offering. new text end

new text begin Subd. 2. new text end

new text begin Coverage of preventive services. new text end

new text begin Subd. 3. new text end

new text begin Covered services. new text end

new text begin Subd. 4. new text end

new text begin Coverage of prescription drugs. new text end

new text begin Subd. 5. new text end

new text begin Coverage of cost-effective services. new text end

new text begin Subd. 6. new text end

new text begin Maximum deductible. new text end

new text begin Subd. 7. new text end

new text begin Out-of-pocket maximum benefit. new text end

new text begin Subd. 8. new text end

new text begin Lifetime maximum benefit. new text end

new text begin Subd. 9. new text end

new text begin Premiums. new text end

Sec. 7.

new text begin [62Q.168] MINNESOTA HEALTH CARE ACCESS PORTAL. new text end

new text begin Subdivision 1. new text end

new text begin Creation; tax exemption. new text end

new text begin Subd. 2. new text end

new text begin Board of directors. new text end

new text begin Subd. 3. new text end

new text begin General powers. new text end

new text begin Subd. 4. new text end

new text begin Exemption from administrative procedures. new text end

new text begin Subd. 5. new text end

new text begin Purpose. new text end

new text begin Subd. 6. new text end

Section 1. new text begin HEALTH CARE PAYMENT REFORM PILOT PROJECTS.
new text end

Sec. 2. new text begin APPROPRIATIONS.
new text end

new text begin [62Q.166] HEALTH COVERAGE FOR UNINSURED PERSONS.
new text end

new text begin [62Q.167] QUALIFIED MINIMUM COVERAGE.
new text end

new text begin [62Q.168] MINNESOTA HEALTH CARE ACCESS PORTAL.
new text end

new text begin [290.0678] EXCESS HEALTH CARE COST CREDIT.
new text end

Sec. 13. new text begin STUDIES AND REPORTS.
new text end

Sec. 14. new text begin APPROPRIATIONS.
new text end

Sec. 15. new text begin REPEALER.
new text end

Sec. 16. new text begin EFFECTIVE DATE.
new text end

new text begin [121A.215] LOCAL SCHOOL WELLNESS.
new text end

Sec. 5. new text begin REPORT ON GAPS IN PUBLIC HEALTH SERVICES AND FUNDING.
new text end

Sec. 6. new text begin HEALTHY COMMUNITIES INITIATIVE.
new text end

Sec. 7. new text begin RULEMAKING AUTHORITY.
new text end

Sec. 8. new text begin APPROPRIATIONS.
new text end