1.1 	A bill for an act
1.2 	relating to health; creating the fair share health care fund; requiring large 
1.3 	employers to report information on employee health benefit spending; requiring 
1.4 	certain large employers to pay assessments; requiring assessments to be deposited 
1.5 	into the fair share health care fund; proposing coding for new law in Minnesota 
1.6 	Statutes, chapters 16A; 175.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. [16A.77] FAIR SHARE HEALTH CARE FUND.
1.9 	A fair share health care fund is established in the state treasury to support the 
1.10 	operations of the medical assistance and MinnesotaCare programs.  The fund is a direct 
1.11 	appropriated special revenue fund.  The commissioner shall deposit to the credit of the 
1.12 	fund money made available to the fund.  Notwithstanding section 11A.20, all investment 
1.13 	income and all investment losses attributable to the investment of the fair share health care 
1.14 	fund not currently needed shall be credited to the fair share health care fund.

1.15 	EFFECTIVE DATE. This section is effective January 1, 2007.

1.16 	Sec. 2. [175.40] DEFINITIONS.
1.17 		Subdivision 1.Applicability. For purposes of sections 175.40 to 175.45, the 
1.18 	following definitions apply.
1.19 		Subd. 2.Commissioner. "Commissioner" means the commissioner of labor and 
1.20 	industry.
1.21 		Subd. 3.Employee. "Employee" means a person who performs services for hire for 
1.22 	an employer, and includes all individuals employed at any site owned or operated by an 
1.23 	employer.  Employee does not include an independent contractor.
2.1 		Subd. 4.Employer. "Employer" has the meaning provided in section 177.23, 
2.2 	subdivision 6, except that employer does not include the federal or state governments 
2.3 	or any political subdivision of the state.
2.4 		Subd. 5.Health insurance costs. "Health insurance costs" means the amount paid 
2.5 	by an employer to provide health care or health insurance to employees in the state to the 
2.6 	extent the costs may be deductible by an employer under federal tax law.  Health insurance 
2.7 	costs includes payments for medical care, prescription drugs, vision care, medical savings 
2.8 	accounts, and any other costs to provide health benefits as defined in section 213(d) of the 
2.9 	Internal Revenue Code.
2.10 		Subd. 6.Wages. "Wages" has the meaning provided in section 177.23, subdivision 
2.11 	4.

2.12 	EFFECTIVE DATE. This section is effective January 1, 2007.

2.13 	Sec. 3. [175.41] EMPLOYER REPORTING REQUIREMENTS.
2.14 		Subdivision 1.Annual reporting. On January 1, 2007, and annually thereafter, each 
2.15 	employer with 10,000 or more employees in the state shall submit to the commissioner, on 
2.16 	a form and in a manner approved by the commissioner:
2.17 	(1) the number of employees of the employer in the state as of a specific day of the 
2.18 	year immediately preceding the previous calendar year as determined by the employer 
2.19 	on an annual basis; 
2.20 	(2) the amount spent by the employer in the year immediately preceding the previous 
2.21 	calendar year on health insurance costs in the state; and 
2.22 	(3) the percentage of payroll that was spent by the employer in the year immediately 
2.23 	preceding the previous calendar year on health insurance costs in the state.
2.24 		Subd. 2.Criteria for information. The information required shall:
2.25 	(1) be designated in a report signed by the principal executive officer or an individual 
2.26 	performing a similar function; and
2.27 	(2) include an affidavit under penalty of perjury that the information required under 
2.28 	subdivision 1:
2.29 	(i) was reviewed by the signing officer; and
2.30 	(ii) is true to the best of the signing officer's knowledge, information, and belief.
2.31 		Subd. 3.Exemption. When calculating the percentage of payroll under subdivision 
2.32 	1, an employer may exempt:
2.33 	(1) wages paid to any employee in excess of the median household income in the 
2.34 	state as published by the United States Census Bureau; and
2.35 	(2) wages paid to an employee who is enrolled in or eligible for Medicare.
3.1 		Subd. 4.Rulemaking. The commissioner shall adopt rules to specify the 
3.2 	information required under subdivision 1.

3.3 	EFFECTIVE DATE. This section is effective January 1, 2007.

3.4 	Sec. 4. [175.42] EMPLOYER PAYMENTS TO FUND.
3.5 		Subdivision 1.Nonprofit employers. An employer with 10,000 or more employees 
3.6 	in the state that is organized as a nonprofit organization and does not spend at least six 
3.7 	percent of the total wages paid to employees in the state on health insurance costs shall 
3.8 	pay to the commissioner an amount equal to the difference between what the employer 
3.9 	spends for health insurance costs and an amount equal to six percent of the total wages 
3.10 	paid to employees in the state.
3.11 		Subd. 2.For-profit employer. An employer with 10,000 or more employees in the 
3.12 	state that is not organized as a nonprofit organization and does not spend at least eight 
3.13 	percent of the total wages paid to employees in the state on health insurance costs shall 
3.14 	pay to the commissioner an amount equal to the difference between what the employer 
3.15 	spends for health insurance costs and an amount equal to eight percent of the total wages 
3.16 	paid to employees in the state.
3.17 		Subd. 3.Other requirements. An employer may not deduct any payment made 
3.18 	under subdivision 1 or 2 from the wages of an employee.  An employer shall make the 
3.19 	payment required under this section to the commissioner on a periodic basis as determined 
3.20 	by the commissioner.

3.21 	EFFECTIVE DATE. This section is effective January 1, 2007.

3.22 	Sec. 5. [175.43] CIVIL PENALTIES.
3.23 	Failure to report in accordance with section 175.41 shall result in the imposition by 
3.24 	the commissioner of a civil penalty of $250 for each day that the report is not timely filed. 
3.25 	Failure to make the payment required under section 175.42 shall result in the imposition 
3.26 	by the commissioner of a civil penalty of $250,000.

3.27 	EFFECTIVE DATE. This section is effective January 1, 2007.

3.28 	Sec. 6. [175.44] REPORT TO LEGISLATURE.
3.29 		Subdivision 1.Content of report. On or before March 15 of each year, the 
3.30 	commissioner shall report to the legislature on:
3.31 	(1) the name of each nonprofit and for-profit employer with 10,000 or more 
3.32 	employees in the state;
4.1 	(2) the employer's definition of full-time employee and part-time employee;
4.2 	(3) the number of full-time employees;
4.3 	(4) the number of full-time employees eligible to receive health insurance benefits;
4.4 	(5) the number of full-time employees receiving health insurance benefits from 
4.5 	the employer;
4.6 	(6) the source of health insurance benefits for those eligible full-time employees 
4.7 	not receiving health insurance benefits through an employer subject to reporting under 
4.8 	section 175.41;
4.9 	(7) the number of part-time employees;
4.10 	(8) the number of part-time employees eligible to receive health insurance benefits;
4.11 	(9) the number of part-time employees receiving health insurance benefits from 
4.12 	the employer; and
4.13 	(10) the source of health insurance benefits for those eligible part-time employees 
4.14 	not receiving health insurance benefits through an employer subject to reporting under 
4.15 	section 175.41.
4.16 		Subd. 2.Use of employer reporting date. The information required under 
4.17 	subdivision 1 shall be reported as of the information reporting date determined by the 
4.18 	employer under section 175.41, subdivision 1, clause (1).
4.19 		Subd. 3.Definitions. For purposes of this section, "health insurance benefits" 
4.20 	means payments for medical care, prescription drugs, vision care, medical savings 
4.21 	accounts, and any other costs to provide health benefits, as defined in section 213(d) of the 
4.22 	Internal Revenue Code.

4.23 	EFFECTIVE DATE. This section is effective January 1, 2007.

4.24 	Sec. 7. [175.45] DUTIES OF COMMISSIONER.
4.25 	The commissioner shall:
4.26 	(1) on an annual basis, based on the information reported under section 175.41:
4.27 	(i) verify which employers have 10,000 or more employees in the state; and
4.28 	(ii) ensure that all employers with 10,000 or more employees in the state have made 
4.29 	the report required under section 175.41;
4.30 	(2) adopt rules to implement sections 175.40 to 175.45; and
4.31 	(3) pay the revenue from the payroll assessment into the fair share health care fund 
4.32 	established under section 16A.77.

4.33 	EFFECTIVE DATE. This section is effective January 1, 2007.