1.1 	A bill for an act
1.2 	relating to health; requiring certain health care
1.3 	facilities to provide charity care; proposing coding
1.4 	for new law in Minnesota Statutes, chapter 144.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [144.501] CHARITY CARE REQUIREMENT.
1.7 		Subdivision 1.Definition. "Charity care" means the cost
1.8 	to a nonprofit health care facility required to be licensed
1.9 	under sections 144.50 to 144.56 for rendering free or discounted
1.10 	care to persons who cannot afford to pay and who are not
1.11 	eligible for health care provided by public programs and for
1.12 	which the facility did not expect payment.  To qualify as
1.13 	charity care, a bill or claim must be generated and recorded by
1.14 	the facility and the patient must meet the facility's criteria
1.15 	for care, consistent with its mission and financial ability.
1.16 		Subd. 2.Charity care required. Each calendar year, a
1.17 	nonprofit health care facility required to be licensed under
1.18 	sections 144.50 to 144.56 must donate the provision of charity
1.19 	care in an amount equal to at least five percent of its annual
1.20 	revenues.  A facility that is insolvent or would become
1.21 	insolvent if it provided this level of charity care may seek an
1.22 	exemption from the commissioner of health and must give the
1.23 	commissioner access to its financial records to establish the
1.24 	need for the exemption.
1.25 		Subd. 3.Health care facility report. Beginning April 1,
2.1 	2007, each nonprofit health care facility required to be
2.2 	licensed under sections 144.50 to 144.56 must report to the
2.3 	commissioner of health on a form developed by the commissioner
2.4 	to verify that the facility has satisfied the requirement for
2.5 	providing charity care.  The report must be submitted to the
2.6 	commissioner by April 1 each year for the previous calendar
2.7 	year.  The commissioner of health must be given access to the
2.8 	facility's financial records to the extent necessary to
2.9 	establish that the requirement for providing charity care has
2.10 	been met.
2.11 		Subd. 4.Notice to attorney general. The commissioner of
2.12 	health must notify the attorney general when it appears that a
2.13 	nonprofit health care facility required to be licensed under
2.14 	sections 144.50 to 144.56 has failed to submit the report
2.15 	required by this section or has failed to satisfy the
2.16 	requirement for providing charity care.  The attorney general
2.17 	may obtain access to the facility's financial records to the
2.18 	extent necessary to determine whether a violation has occurred,
2.19 	may take remedial action under section 317A.813 in the case of a
2.20 	violation of this section, and shall be awarded attorney fees if
2.21 	the state prevails.

2.22 	Sec. 2. EFFECTIVE DATE.
 2.23 	Section 1 is effective January 1, 2006.