1.1 	A bill for an act
1.2 	relating to state government; establishing the Center for Health Care Purchasing 
1.3 	Improvement; appropriating money; proposing coding for new law in Minnesota 
1.4 	Statutes, chapter 43A.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [43A.312] CENTER FOR HEALTH CARE PURCHASING 
1.7 	IMPROVEMENT.
1.8 		Subdivision 1.Establishment; administration. The commissioner shall establish 
1.9 	and administer the Center for Health Care Purchasing Improvement as an administrative 
1.10 	unit within the Department of Employee Relations.
1.11 		Subd. 2.Purpose. The purpose of the Center for Health Care Purchasing 
1.12 	Improvement is to support the state in its efforts to be a more prudent and efficient 
1.13 	purchaser of quality health care services.
1.14 		Subd. 3.Staffing; duties; scope. (a) The commissioner may appoint a director, and 
1.15 	up to three additional senior-level staff or co-directors, and other staff as needed who shall 
1.16 	be under the direction of the commissioner.
1.17 	(b) With the authorization of the commissioner of the Department of Employee 
1.18 	Relations, and in consultation or interagency agreement with the appropriate 
1.19 	commissioners of state agencies, the director, or co-directors, may:
1.20 	(1) initiate projects for development of plan designs for state health care purchasing;
1.21 	(2) require reports or surveys to evaluate the performance of current health care 
1.22 	purchasing strategies;
1.23 	(3) conduct policy audits of state programs to measure conformity to state statute or 
1.24 	other purchasing initiatives or objectives;
2.1 	(4) support the Administrative Uniformity Committee under section 62J.50 and 
2.2 	other relevant groups or activities to advance agreement on health care administrative 
2.3 	process streamlining;
2.4 	(5) consult with the Health Economics Unit of the Department of Health regarding 
2.5 	reports and assessments of the health care marketplace;
2.6 	(6) consult with the departments of Health and Commerce regarding health care 
2.7 	regulatory issues and legislative initiatives;
2.8 	(7) work with appropriate Department of Human Services staff and the Centers for 
2.9 	Medicare and Medicaid Services to address federal requirements and conformity issues 
2.10 	for health care purchasing;
2.11 	(8) assist the Minnesota Comprehensive Health Association in health care 
2.12 	purchasing strategies;
2.13 	(9) convene medical directors of agencies engaged in health care purchasing for 
2.14 	advice, collaboration, and exploring possible synergies;
2.15 	(10) recommend redeployment of staff among various state agencies to 
2.16 	commissioners and the governor to better organize health care purchasing efforts;
2.17 	(11) consult with the commissioner of finance regarding:
2.18 	(i) any fees to be assessed to agencies to support the activities of the center; and
2.19 	(ii) calculation of fiscal impacts, including net savings and return on investment, of 
2.20 	health care purchasing strategies and initiatives;
2.21 	(12) contact and participate with other relevant health care task forces, study 
2.22 	activities, and similar efforts with regard to:
2.23 	(i) promoting health information technology;
2.24 	(ii) health care performance measurement and performance-based purchasing;
2.25 	(iii) improving health outcomes for health care conditions of interest; and
2.26 	(iv) identifying and overcoming barriers to more efficient, effective, quality health 
2.27 	care related to items (i) to (iii);
2.28 	(13) develop options or plans for building off existing examples or consensus on 
2.29 	common health care performance measures relevant to ambulatory care, hospitals, and 
2.30 	health plans; and
2.31 	(14) convene a group of health policy experts as advisors on health care market 
2.32 	trends.
2.33 		Subd. 4.Fees; funding. The commissioner, in consultation with the commissioner 
2.34 	of finance, may assess appropriate fees or charges to state agencies for services and 
2.35 	products received from the center. The center may assist in seeking external funding 
3.1 	through appropriate grants or other funding opportunities, and may administer grants 
3.2 	and externally funded projects.
3.3 		Subd. 5.Report. The commissioner must report annually to the legislature and the 
3.4 	governor on the operations, activities, and impacts of the center. The report must be posted 
3.5 	on the Department of Employee Relations Web site and must be available to the public.

3.6 	Sec. 2. APPROPRIATION.
 3.7 	$100,000 is appropriated in fiscal year 2007 from the general fund to the 
3.8 	commissioner of employee relations for the purposes in section 1.