1.1 	A bill for an act
1.2 	relating to taxation; MNsure; providing a contingent credit for health insurance 
1.3 	coverage; requiring the state to transition to a federally facilitated exchange; 
1.4 	appropriating money;proposing coding for new law in Minnesota Statutes, 
1.5 	chapter 290; repealing Minnesota Statutes 2014, sections 62V.01; 62V.02; 
1.6 	62V.03; 62V.04; 62V.05; 62V.06; 62V.07; 62V.08; 62V.09; 62V.10; 62V.11.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. [290.0682] PREMIUM SUPPORT CREDIT.
1.9 		Subdivision 1.Credit allowed. A qualified individual is allowed a credit against the 
1.10 	tax imposed under this chapter for the taxable year. The credit equals the dollar amount 
1.11 	of the credit to which the qualified individual would be entitled under section 36B of the 
1.12 	Internal Revenue Code for the taxable year, if the qualified individual had enrolled in 
1.13 	the qualified health plan through a state exchange established under section 1311 of the 
1.14 	Affordable Care Act (Public Laws 111-148 and 111-152). The credit amount equals the 
1.15 	final total federal credit after reconciliation with any advance payments of the federal credit.
1.16 		Subd. 2.Definitions. (a) For purposes of this section, the following terms have 
1.17 	the meanings given them.
1.18 	(b) "Coverage month" has the meaning given in section 36B(c)(2) of the Internal 
1.19 	Revenue Code, except that the requirement that the individual (spouse, dependent, or 
1.20 	combination of them) enroll in the qualified health plan through an exchange established 
1.21 	under section 1311 of the Affordable Care Act, does not apply.
1.22 	(c) "Qualified individual" means an individual who for the taxable year:
1.23 	(1) is an applicable taxpayer as that term is defined in section 36B(c)(1) of the 
1.24 	Internal Revenue Code;
1.25 	(2) is a resident of Minnesota;
2.1 	(3) pays premiums for a coverage month; and
2.2 	(4) does not qualify for a federal credit under section 36B of the Internal Revenue 
2.3 	Code because the individual did not enroll in a qualified health plan through a state 
2.4 	exchange established under section 1311 of the Affordable Care Act.
2.5 		Subd. 3.Refundable. If the amount of credit that the taxpayer is eligible to receive 
2.6 	under this section exceeds the liability for tax, the commissioner shall refund the excess 
2.7 	to the taxpayer.
2.8 		Subd. 4.Contingent implementation. The commissioner of revenue shall 
2.9 	implement this section only if the United States Supreme Court rules in King v. Burwell 
2.10 	(No. 14-114) that persons obtaining qualified health plan coverage through a federally 
2.11 	facilitated marketplace do not qualify for advanced premium tax credits.
2.12 		Subd. 5.Sunset. If implemented, this section shall sunset January 1, 2020.
2.13 		Subd. 6.Study. If the commissioner of revenue implements this section as provided 
2.14 	under subdivision 4, the commissioners of revenue and human services shall study and 
2.15 	make recommendations to the legislature on whether the continuation of premium support 
2.16 	credits beyond December 31, 2019, is necessary to ensure the availability of affordable 
2.17 	health care coverage to persons purchasing coverage through the federally facilitated 
2.18 	marketplace. If continuation is recommended, the commissioners shall also evaluate and 
2.19 	recommend state funding options for premium support credits. The commissioners shall 
2.20 	present evaluation results and recommendations to the legislature by December 15, 2018.

2.21 	EFFECTIVE DATE. This section is effective on the date advanced premium tax 
2.22 	credits are no longer available to persons obtaining qualified health plan coverage through 
2.23 	a federally facilitated marketplace, as determined in a ruling by the United States Supreme 
2.24 	Court.

2.25 	Sec. 2. ESTABLISHMENT OF FEDERALLY FACILITATED MARKETPLACE.
2.26 		Subdivision 1.Establishment. The commissioner of commerce, in cooperation 
2.27 	with the secretary of Health and Human Services, shall establish a federally facilitated 
2.28 	marketplace for Minnesota, for coverage beginning January 1, 2017. The federally 
2.29 	facilitated marketplace shall take the place of MNsure, established under Minnesota 
2.30 	Statutes, chapter 62V. In working with the secretary of Health and Human Services to 
2.31 	develop the federally facilitated marketplace, the commissioner of commerce shall:
2.32 	(1) seek to incorporate, where appropriate and cost effective, elements of the 
2.33 	MNsure eligibility determination system;
3.1 	(2) regularly consult with stakeholder groups, including but not limited to 
3.2 	representatives of state agencies, health care providers, health plan companies, brokers, 
3.3 	and consumers; and
3.4 	(3) seek all available federal grants and funds for state planning and development 
3.5 	costs.
3.6 		Subd. 2.Implementation plan; draft legislation. The commissioner of commerce, 
3.7 	in consultation with the commissioner of human services, the chief information officer 
3.8 	of MN.IT, and the MNsure board, shall develop and present to the 2016 legislature an 
3.9 	implementation plan for conversion to a federally facilitated marketplace. The plan must 
3.10 	include draft legislation for any changes in state law necessary to implement a federally 
3.11 	facilitated marketplace, including but not limited to necessary changes to Laws 2013, 
3.12 	chapter 84, and technical and conforming changes related to the repeal of Minnesota 
3.13 	Statutes, chapter 62V.
3.14 		Subd. 3.Vendor contract. The commissioner of commerce, in consultation with 
3.15 	the commissioner of human services, the chief information officer of MN.IT, and the 
3.16 	MNsure board, shall contract with a vendor to provide technical assistance in developing 
3.17 	and implementing the plan for conversion to a federally facilitated marketplace.

3.18 	Sec. 3. APPROPRIATION.
 3.19 	$....... is appropriated from the general fund to the commissioner of commerce for 
3.20 	the biennium ending June 30, 2017, to contract with a vendor as required under section 2.

3.21 	Sec. 4. REPEALER.
 3.22 	Minnesota Statutes 2014, sections 62V.01; 62V.02; 62V.03; 62V.04; 62V.05; 62V.06; 
3.23 	62V.07; 62V.08; 62V.09; 62V.10; and 62V.11, are repealed, effective January 1, 2017.