1.1                          A bill for an act 
  1.2             relating to health; repealing MinnesotaCare provider 
  1.3             taxes; providing for disposition of tobacco settlement 
  1.4             money; requiring pass-through of savings to 
  1.5             purchasers; amending Minnesota Statutes 2002, sections 
  1.6             13.4963, subdivision 2; 62J.041, subdivision 1; 
  1.7             62Q.095, subdivision 6; 214.16, subdivisions 2, 3; 
  1.8             270B.14, subdivision 1; proposing coding for new law 
  1.9             in Minnesota Statutes, chapters 62Q; 256L; repealing 
  1.10            Minnesota Statutes 2002, sections 13.4967, subdivision 
  1.11            3; 144.1484, subdivision 2; 295.50; 295.51; 295.52; 
  1.12            295.53; 295.54; 295.55; 295.56; 295.57; 295.58; 
  1.13            295.581; 295.582; 295.59. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2002, section 13.4963, 
  1.16  subdivision 2, is amended to read: 
  1.17     Subd. 2.  [GENERALLY.] Classification and disclosure of tax 
  1.18  data created, collected, or maintained by the department of 
  1.19  revenue under chapter 115B (except taxes imposed under sections 
  1.20  115B.21 to 115B.24), 289A (except for taxes imposed under 
  1.21  sections 298.01, 298.015, and 298.24), 290, 290A, 291, 297A, or 
  1.22  297H, and sections 295.50 to 295.59 or any similar Indian tribal 
  1.23  tax administered by the commissioner according to a tax 
  1.24  agreement between the state and an Indian tribal government are 
  1.25  governed by chapter 270B. 
  1.26     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
  1.27     Sec. 2.  Minnesota Statutes 2002, section 62J.041, 
  1.28  subdivision 1, is amended to read: 
  1.29     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  2.1   section, the following definitions apply. 
  2.2      (b) "Health plan company" has the definition provided in 
  2.3   section 62Q.01. 
  2.4      (c) "Total expenditures" means incurred claims or 
  2.5   expenditures on health care services, administrative expenses, 
  2.6   charitable contributions, and all other payments made by health 
  2.7   plan companies out of premium revenues. 
  2.8      (d) "Net expenditures" means total expenditures minus 
  2.9   exempted taxes and assessments and payments or allocations made 
  2.10  to establish or maintain reserves.  
  2.11     (e) "Exempted taxes and assessments" means direct payments 
  2.12  for taxes to government agencies, contributions to the Minnesota 
  2.13  comprehensive health association, the medical assistance 
  2.14  provider's surcharge under section 256.9657, the MinnesotaCare 
  2.15  provider tax under Minnesota Statutes 2002, section 295.52, 
  2.16  assessments by the health coverage reinsurance association, 
  2.17  assessments by the Minnesota life and health insurance guaranty 
  2.18  association, assessments by the Minnesota risk adjustment 
  2.19  association, and any new assessments imposed by federal or state 
  2.20  law. 
  2.21     (f) "Consumer cost-sharing or subscriber liability" means 
  2.22  enrollee coinsurance, copayment, deductible payments, and 
  2.23  amounts in excess of benefit plan maximums. 
  2.24     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
  2.25     Sec. 3.  Minnesota Statutes 2002, section 62Q.095, 
  2.26  subdivision 6, is amended to read: 
  2.27     Subd. 6.  [EXEMPTION.] A health plan company, to the extent 
  2.28  that it operates as a staff model health plan company as defined 
  2.29  in section 295.50, subdivision 12b, by employing allied 
  2.30  independent health care providers to deliver health care 
  2.31  services to enrollees, is exempt from this section.  For 
  2.32  purposes of this subdivision, "staff model health plan company" 
  2.33  means a health plan company as defined in section 62Q.01, 
  2.34  subdivision 4, that employs one or more types of health care 
  2.35  provider to deliver health care services to the health plan 
  2.36  company's enrollees.  
  3.1      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
  3.2      Sec. 4.  [62Q.752] [PASS-THROUGH OF SAVINGS TO PURCHASERS.] 
  3.3      Subdivision 1.  [REDUCED PREMIUMS.] All health plan 
  3.4   companies shall pass on to purchasers, in the form of reduced 
  3.5   premium rates, all savings resulting from the repeal of the 
  3.6   MinnesotaCare provider taxes imposed under Minnesota Statutes 
  3.7   2002, section 295.52, and the resulting reduction in the 
  3.8   transfer of additional expenses generated by provider tax 
  3.9   obligations to third-party contracts under Minnesota Statutes 
  3.10  2002, section 295.582. 
  3.11     Subd. 2.  [DOCUMENTING COMPLIANCE.] Each health plan 
  3.12  company shall annually submit documentation indicating 
  3.13  compliance with subdivision 1 to the appropriate commissioner. 
  3.14     Subd. 3.  [ENFORCEMENT.] If the appropriate commissioner 
  3.15  finds that a health plan company has not complied with 
  3.16  subdivision 1, the commissioner may take enforcement action 
  3.17  against the health plan company. 
  3.18     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
  3.19     Sec. 5.  Minnesota Statutes 2002, section 214.16, 
  3.20  subdivision 2, is amended to read: 
  3.21     Subd. 2.  [BOARD COOPERATION REQUIRED.] The board shall 
  3.22  assist the commissioner of health in data collection activities 
  3.23  required under Laws 1992, chapter 549, article 7, and shall 
  3.24  assist the commissioner of revenue in activities related to 
  3.25  collection of the health care provider tax required under Laws 
  3.26  1992, chapter 549, article 9.  Upon the request of the 
  3.27  commissioner or the commissioner of revenue, the board shall 
  3.28  make available names and addresses of current licensees and 
  3.29  provide other information or assistance as needed. 
  3.30     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
  3.31     Sec. 6.  Minnesota Statutes 2002, section 214.16, 
  3.32  subdivision 3, is amended to read: 
  3.33     Subd. 3.  [GROUNDS FOR DISCIPLINARY ACTION.] The board 
  3.34  shall take disciplinary action, which may include license 
  3.35  revocation, against a regulated person for: 
  3.36     (1) intentional failure to provide the commissioner of 
  4.1   health with the data required under chapter 62J; and 
  4.2      (2) intentional failure to provide the commissioner of 
  4.3   revenue with data on gross revenue and other information 
  4.4   required for the commissioner to implement sections 295.50 to 
  4.5   295.58; 
  4.6      (3) intentional failure to pay the health care provider tax 
  4.7   required under section 295.52; and 
  4.8      (4) entering into a contract or arrangement that is 
  4.9   prohibited under sections 62J.70 to 62J.73. 
  4.10     <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
  4.11     Sec. 7.  [256L.021] [USE OF TOBACCO SETTLEMENT PROCEEDS.] 
  4.12     (a) The commissioner of finance, beginning with the annual 
  4.13  payment due December 31, 2003, shall deposit the annual payments 
  4.14  due under the terms of the tobacco settlement on December 31 of 
  4.15  each year into the health care access fund established under 
  4.16  section 16A.724. 
  4.17     (b) For purposes of this section, "tobacco settlement" 
  4.18  means the consent judgment entered in the case of State v. 
  4.19  Philip Morris Inc., No. C1-94-8565 (Minnesota District Court, 
  4.20  Second Judicial District). 
  4.21     Sec. 8.  Minnesota Statutes 2002, section 270B.14, 
  4.22  subdivision 1, is amended to read: 
  4.23     Subdivision 1.  [DISCLOSURE TO COMMISSIONER OF HUMAN 
  4.24  SERVICES.] (a) On the request of the commissioner of human 
  4.25  services, the commissioner shall disclose return information 
  4.26  regarding taxes imposed by chapter 290, and claims for refunds 
  4.27  under chapter 290A, to the extent provided in paragraph (b) and 
  4.28  for the purposes set forth in paragraph (c). 
  4.29     (b) Data that may be disclosed are limited to data relating 
  4.30  to the identity, whereabouts, employment, income, and property 
  4.31  of a person owing or alleged to be owing an obligation of child 
  4.32  support. 
  4.33     (c) The commissioner of human services may request data 
  4.34  only for the purposes of carrying out the child support 
  4.35  enforcement program and to assist in the location of parents who 
  4.36  have, or appear to have, deserted their children.  Data received 
  5.1   may be used only as set forth in section 256.978. 
  5.2      (d) The commissioner shall provide the records and 
  5.3   information necessary to administer the supplemental housing 
  5.4   allowance to the commissioner of human services.  
  5.5      (e) At the request of the commissioner of human services, 
  5.6   the commissioner of revenue shall electronically match the 
  5.7   social security numbers and names of participants in the 
  5.8   telephone assistance plan operated under sections 237.69 to 
  5.9   237.711, with those of property tax refund filers, and determine 
  5.10  whether each participant's household income is within the 
  5.11  eligibility standards for the telephone assistance plan. 
  5.12     (f) The commissioner may provide records and information 
  5.13  collected under Minnesota Statutes 2002, sections 295.50 to 
  5.14  295.59, to the commissioner of human services for purposes of 
  5.15  the Medicaid Voluntary Contribution and Provider-Specific Tax 
  5.16  Amendments of 1991, Public Law Number 102-234.  Upon the written 
  5.17  agreement by the United States Department of Health and Human 
  5.18  Services to maintain the confidentiality of the data, the 
  5.19  commissioner may provide records and information collected under 
  5.20  Minnesota Statutes 2002, sections 295.50 to 295.59, to the 
  5.21  Centers for Medicare and Medicaid Services section of the United 
  5.22  States Department of Health and Human Services for purposes of 
  5.23  meeting federal reporting requirements. 
  5.24     (g) The commissioner may provide records and information to 
  5.25  the commissioner of human services as necessary to administer 
  5.26  the early refund of refundable tax credits. 
  5.27     (h) The commissioner may disclose information to the 
  5.28  commissioner of human services necessary to verify income for 
  5.29  eligibility and premium payment under the MinnesotaCare program, 
  5.30  under section 256L.05, subdivision 2. 
  5.31     (i) The commissioner may disclose information to the 
  5.32  commissioner of human services necessary to verify whether 
  5.33  applicants or recipients for the Minnesota family investment 
  5.34  program, general assistance, food stamps, and Minnesota 
  5.35  supplemental aid program have claimed refundable tax credits 
  5.36  under chapter 290 and the property tax refund under chapter 
  6.1   290A, and the amounts of the credits. 
  6.2      <b>[EFFECTIVE DATE.]</b> This section is effective January 1, 2004.
  6.3      Sec. 9.  [REPEALER; MINNESOTACARE PROVIDER TAXES.] 
  6.4      Minnesota Statutes 2002, sections 13.4967, subdivision 3; 
  6.5   144.1484, subdivision 2; 295.50; 295.51; 295.52; 295.53; 295.54; 
  6.6   295.55; 295.56; 295.57; 295.58; 295.581; 295.582; and 295.59, 
  6.7   are repealed effective January 1, 2004, for tax periods 
  6.8   beginning on or after that date.