1.1To: Senator Cohen, Chair
1.2Committee on Finance
1.3Senator Lourey,
1.4Chair of the Health and Human Services Division, to which was referred
1.5S.F. No. 1: relating to commerce; establishing the Minnesota
1.6Insurance Marketplace; prescribing its powers and duties; authorizing rulemaking;
1.7appropriating money;amending Minnesota Statutes 2012, sections 13.7191, by adding
1.8a subdivision; 13D.08, by adding a subdivision; 16A.725, subdivision 3, by adding a
1.9subdivision; proposing coding for new law as Minnesota Statutes, chapter 62V; repealing
1.10Minnesota Statutes 2012, section 256.9658, subdivision 1.
1.11Reports the same back with the recommendation that the bill be amended as follows:
1.12Delete everything after the enacting clause and insert:

1.13    "Section 1. Minnesota Statutes 2012, section 13.7191, is amended by adding a
1.14subdivision to read:
1.15    Subd. 14a. Minnesota Insurance Marketplace. Classification and sharing of data
1.16of the Minnesota Insurance Marketplace is governed by section 62V.06.

1.17    Sec. 2. Minnesota Statutes 2012, section 13D.08, is amended by adding a subdivision
1.18to read:
1.19    Subd. 5a. Minnesota Insurance Marketplace. Meetings of the Minnesota
1.20Insurance Marketplace are governed by section 62V.03, subdivision 2.

1.21    Sec. 3. Minnesota Statutes 2012, section 16A.725, is amended by adding a subdivision
1.22to read:
1.23    Subd. 2a. Certified Minnesota Insurance Marketplace operating costs. (a) By
1.24April 30 of each year, beginning April 30, 2015, the board of directors of the Minnesota
1.25Insurance Marketplace shall certify to the commissioner of management and budget the
1.26estimated costs necessary to fund the operations of the Minnesota Insurance Marketplace,
1.27under chapter 62V for the next fiscal year.
1.28    (b) By June 1, 2013, the Board of Directors of the Minnesota Insurance Marketplace
1.29shall certify to the commissioner of management and budget the estimated costs necessary
1.30to fund the operations of the Minnesota Insurance Marketplace under chapter 62V for the
1.31next biennium that are not covered by federal funds.

1.32    Sec. 4. Minnesota Statutes 2012, section 16A.725, subdivision 3, is amended to read:
1.33    Subd. 3. Fund reimbursements. (a) Each fiscal year, beginning fiscal year 2016,
1.34the commissioner of management and budget shall first transfer from the health impact
1.35fund to the Minnesota Insurance Marketplace account in the special revenue fund, the
2.1amount of certified expenditures under subdivision 2a, paragraph (a), or the balance of the
2.2fund, whichever is less.
2.3    (b) For the 2014-2015 biennium, the commissioner of management and budget shall
2.4first transfer from the health impact fund to the Minnesota Insurance Marketplace account
2.5in the special revenue fund, the amount of certified expenditures under subdivision 2a,
2.6paragraph (b), or the balance of the fund, whichever is less. These funds may be used in
2.7either year of the biennium.
2.8Each fiscal year, (c) If any balance remains in the health impact fund after the
2.9transfer in paragraph (a) or (b), the commissioner of management and budget shall first
2.10 transfer from the health impact fund to the general fund an amount sufficient to offset the
2.11general fund cost of the certified expenditures under subdivision 2 or the balance of the
2.12fund, whichever is less.
2.13(b) (d) If any balance remains in the health impact fund after the transfer transfers in
2.14paragraph paragraphs (a) to (c), the commissioner of management and budget shall transfer
2.15to the health care access fund the amount sufficient to offset the health care access fund cost
2.16of the certified expenditures in subdivision 2, or the balance of the fund, whichever is less.

2.17    Sec. 5. [62V.01] TITLE.
2.18This chapter may be cited as the "Minnesota Insurance Marketplace Act."

2.19    Sec. 6. [62V.02] DEFINITIONS.
2.20    Subdivision 1. Scope. For the purposes of this chapter, the following terms have
2.21the meanings given.
2.22    Subd. 2. Board. "Board" means the Board of Directors of the Minnesota Insurance
2.23Marketplace specified in section 62V.04.
2.24    Subd. 3. Dental plan. "Dental plan" has the meaning defined in section 62Q.76,
2.25subdivision 3.
2.26    Subd. 4. Health plan. "Health plan" means a policy, contract, certificate, or
2.27agreement defined in section 62A.011, subdivision 3.
2.28    Subd. 5. Health carrier. "Health carrier" has the meaning defined in section
2.2962A.011.
2.30    Subd. 6. Individual market. "Individual market" means the market for health
2.31insurance coverage offered to individuals.
2.32    Subd. 7. Insurance producer. "Insurance producer" has the meaning defined
2.33in section 60K.31.
3.1    Subd. 8. Minnesota Insurance Marketplace. "Minnesota Insurance Marketplace"
3.2means the Minnesota Insurance Marketplace created as a state health benefit exchange
3.3as described in section 1311 of the federal Patient Protection and Affordable Care Act
3.4(Public Law 111-148), and further defined through amendments to the act and regulations
3.5issued under the act.
3.6    Subd. 9. Navigator. "Navigator" has the meaning described in section 1311(i) of
3.7the federal Patient Protection and Affordable Care Act (Public Law 111-148), and further
3.8defined through amendments to the act and regulations issued under the act.
3.9    Subd. 10. Public health care program. "Public health care program" means any
3.10public health care program administered by the commissioner of human services.
3.11    Subd. 11. Qualified health plan. "Qualified health plan" means a health plan that
3.12meets the definition in section 1301(a) of the Affordable Care Act (Public Law 111-148),
3.13and has been certified by the board in accordance with section 62V.05, subdivision 5, to
3.14be offered through the Minnesota Insurance Marketplace.
3.15    Subd. 12. Small group market. "Small group market" means the market for health
3.16insurance coverage offered to small employers as defined in section 62L.02, subdivision 26.

3.17    Sec. 7. [62V.03] MINNESOTA INSURANCE MARKETPLACE;
3.18ESTABLISHMENT.
3.19    Subdivision 1. Creation. The Minnesota Insurance Marketplace is created as a
3.20board under section 15.012, paragraph (a), to:
3.21(1) promote innovation, competition, quality, value, market participation,
3.22affordability, meaningful choices, health improvement, care management, reduction of
3.23health disparities, and portability of health plans;
3.24(2) facilitate and simplify the comparison, choice, enrollment, and purchase of
3.25health plans for individuals purchasing in the individual market through the Minnesota
3.26Insurance Marketplace and for employees and employers purchasing in the small group
3.27market through the Minnesota Insurance Marketplace;
3.28(3) assist small employers with access to small business health insurance tax credits
3.29and to assist individuals with access to public health care programs, premium assistance
3.30tax credits and cost-sharing reductions, and certificates of exemption from individual
3.31responsibility requirements; and
3.32(4) facilitate the integration and transition of individuals between public health care
3.33programs and health plans in the individual market.
3.34    Subd. 2. Application of other law. (a) The Minnesota Insurance Marketplace is
3.35subject to review by the legislative auditor under section 3.971.
4.1(b) Board members of the Minnesota Insurance Marketplace are subject to section
4.210A.07. Board members and the personnel of the Minnesota Insurance Marketplace
4.3are subject to section 10A.071.
4.4(c) All meetings of the board shall comply with the open meeting law in chapter
4.513D, except that:
4.6(1) meetings regarding personnel negotiations may be closed at the discretion of
4.7the board;
4.8(2) meetings regarding contract negotiations may be closed at the discretion of
4.9the board; and
4.10(3) meetings or portions of meetings where not public data, as defined in section
4.1113.02, subdivision 8a, or trade secret information, as defined in section 13.37, subdivision
4.121, are discussed must be closed to the public.
4.13    (d) The Minnesota Insurance Marketplace and provisions specified under this chapter,
4.14are exempt from chapter 14, including section 14.386, except as specified in section 62V.05.
4.15(e) The board and the Web site are exempt from chapter 60K.
4.16(f) Section 3.3005 applies to any federal funds received by the Minnesota Insurance
4.17Marketplace.

4.18    Sec. 8. [62V.04] GOVERNANCE.
4.19    Subdivision 1. Board. The Minnesota Insurance Marketplace is governed by a
4.20board of directors with seven members.
4.21    Subd. 2. Appointment. (a) Board membership of the Minnesota Insurance
4.22Marketplace consists of the following:
4.23(1) three members appointed by the governor and confirmed by the senate, with
4.24one member representing the interests of individual consumers eligible for individual
4.25market coverage, one member representing individual consumers eligible for public health
4.26care program coverage, and one member representing small employers. Members are
4.27appointed to serve a four-year term following the initial staggered-term lot determination;
4.28(2) three members appointed by the governor and confirmed by the senate, who
4.29have demonstrated expertise, leadership, and innovation in the following areas: one
4.30member representing the areas of health administration, health care finance, health plan
4.31purchasing, and health care delivery systems; one member representing the areas of
4.32public health, health disparities, public health care programs, and the uninsured; and
4.33one member representing health policy issues related to the small group and individual
4.34markets. Members are appointed to serve a four-year term following the initial staggered
4.35term lot determination; and
5.1(3) the commissioner of human services or a designee.
5.2(b) The governor shall make appointments to the board that are consistent with
5.3federal law and regulations regarding its composition and structure.
5.4(c) Section 15.0597 shall apply to all appointments, except for the commissioner
5.5and initial appointments.
5.6(d) Initial appointments shall be made within 30 days of enactment.
5.7    Subd. 3. Terms. (a) Board members may serve no more than two consecutive
5.8terms, except for the commissioner or the commissioner's designee, who shall serve
5.9until replaced by the governor.
5.10(b) A board member may resign at any time by giving written notice to the board.
5.11(c) The appointed members under subdivision 2, paragraph (a), clauses (1) and (2),
5.12shall have an initial term of two, three, or four years, determined by lot by the secretary of
5.13state.
5.14    Subd. 4. Conflicts of interest. Within one year prior to or at any time during their
5.15appointed term, board members appointed under subdivision 2, paragraph (a), clauses (1)
5.16and (2), shall not be employed by, be a member of the board of directors of, or otherwise
5.17be a representative of a health carrier, health care provider, navigator, insurance producer,
5.18or other entity in the business of selling items or services of significant value to or through
5.19the Minnesota Insurance Marketplace.
5.20    Subd. 5. Acting chair; first meeting; supervision. (a) The governor shall designate
5.21as acting chair one of the appointees described in subdivision 2.
5.22(b) The board shall hold its first meeting within 60 days of enactment.
5.23(c) The board shall elect a chair to replace the acting chair at the first meeting.
5.24    Subd. 6. Chair. The board shall have a chair, elected by a majority of members.
5.25The chair shall serve for one year.
5.26    Subd. 7. Officers. The members of the board shall elect officers by a majority of
5.27members. The officers shall serve for one year.
5.28    Subd. 8. Vacancies. If a vacancy occurs on the board, the governor shall appoint a
5.29new member within 90 days to serve the remainder of the unexpired term.
5.30    Subd. 9. Removal. A board member may be removed by the board only for cause,
5.31following notice, hearing, and a two-thirds vote of the board. A conflict of interest as
5.32defined in subdivision 4 shall be cause for removal from the board.
5.33    Subd. 10. Meetings. The board shall meet at least quarterly.
5.34    Subd. 11. Quorum. A majority of the members of the board constitutes a quorum,
5.35and the affirmative vote of a majority of members of the board is necessary and sufficient
5.36for action taken by the board.
6.1    Subd. 12. Compensation. The board members shall be paid a salary not to exceed
6.2the salary limits established under section 15A.0815, subdivision 4. The salary for
6.3board members shall be set in accordance with this subdivision and section 15A.0815,
6.4subdivision 5.
6.5    Subd. 13. Advisory committees. (a) The board shall establish and maintain
6.6advisory committees to provide insurance producers, health care providers, the health
6.7care industry, consumers, and other stakeholders with the opportunity to share their
6.8perspectives regarding the operation of the Minnesota Insurance Marketplace as required
6.9under section 1311(d)(6) of the Affordable Care Act (Public Law 111-148). The board
6.10shall regularly consult with the advisory committees. The advisory committees established
6.11under this paragraph shall not expire.
6.12    (b) The board may establish additional advisory committees, as necessary, to gather
6.13and provide information to the board in order to facilitate the operation of the Minnesota
6.14Insurance Marketplace. The advisory committees established under this paragraph shall
6.15not expire, except by action of the board.
6.16    (c) Section 15.0597 shall not apply to any advisory committee established by the
6.17board under this subdivision.

6.18    Sec. 9. [62V.05] RESPONSIBILITIES AND POWERS OF THE MINNESOTA
6.19INSURANCE MARKETPLACE.
6.20    Subdivision 1. General. (a) The board shall operate the Minnesota Insurance
6.21Marketplace according to this chapter and applicable state and federal law.
6.22(b) The board has the power to:
6.23(1) employ personnel and delegate administrative, operational, and other
6.24responsibilities to the director and other personnel as deemed appropriate by the board.
6.25The director and managerial staff of the Minnesota Insurance Marketplace shall serve in
6.26the unclassified service and shall be governed by a compensation plan prepared by the
6.27board, submitted to the commissioner of management and budget for review and comment
6.28within 14 days of its receipt, and approved by the Legislative Coordinating Commission
6.29and the legislature under section 3.855, subdivision 3, except that section 15A.0815,
6.30subdivision 5, paragraph (e), shall not apply;
6.31(2) establish the budget of the Minnesota Insurance Marketplace;
6.32(3) seek and accept money, grants, loans, donations, materials, services, or
6.33advertising revenue from government agencies, philanthropic organizations, and public
6.34and private sources to fund the operation of the Minnesota Insurance Marketplace;
6.35(4) contract for the receipt and provision of goods and services;
7.1(5) enter into information-sharing agreements with federal and state agencies and
7.2other entities as authorized under section 62V.06; and
7.3(6) take any other actions reasonably required to implement and administer its
7.4responsibilities.
7.5(c) Within 180 days of enactment, the board shall establish bylaws, policies,
7.6and procedures governing the operations of the Minnesota Insurance Marketplace in
7.7accordance with this chapter.
7.8    Subd. 2. Operations funding. Funding for the operations of the Minnesota
7.9Insurance Marketplace shall cover any compensation provided to navigators participating
7.10in the navigator program.
7.11    Subd. 3. Insurance producers. (a) Within 30 days of enactment, the commissioner
7.12of management and budget, in consultation with the commissioner of commerce, shall
7.13establish certification requirements that must be met by insurance producers in order to
7.14assist individuals and small employers with purchasing coverage through the Minnesota
7.15Insurance Marketplace. The requirements established under this paragraph shall remain
7.16in effect until the implementation of the requirements established under paragraph (b)
7.17or January 1, 2015, whichever is later. Prior to January 1, 2015, the commissioner of
7.18management and budget may amend the requirements, if necessary, due to a change in
7.19federal rules.
7.20    (b) The board, in consultation with the commissioner of commerce, may establish
7.21certification requirements for insurance producers assisting individuals and small
7.22employers with purchasing coverage through the Minnesota Insurance Marketplace.
7.23Certification shall be issued by the Minnesota Insurance Marketplace.
7.24    (c) Certification requirements shall not exceed the requirements established under
7.25Code of Federal Regulations, title 45, part 155.220. Certification shall include training on
7.26health plans available through the Minnesota Insurance Marketplace, available tax credits
7.27and cost-sharing arrangements, compliance with privacy and security standards, eligibility
7.28verification processes, online enrollment tools, and basic information on available public
7.29health care programs. Training required for certification under this subdivision shall
7.30qualify for continuing education requirements for insurance producers required under
7.31chapter 60K, and must comply with course approval requirements under chapter 45.
7.32    (d) Any compensation, including, but not limited to, commissions, service fees,
7.33and brokerage fees paid to an insurance producer for selling, soliciting, or negotiating
7.34coverage offered through the Minnesota Insurance Marketplace shall be paid by the
7.35health carrier and must be the same for health plans offered or sold inside the Minnesota
8.1Insurance Marketplace as for health plans offered or sold outside the Minnesota Insurance
8.2Marketplace.
8.3    (e) Any insurance producer compensation structure established by a health carrier
8.4for the small group market must include compensation for defined contribution plans that
8.5involve multiple health carriers. The compensation offered must be commensurate with
8.6other small group market defined health plans.
8.7    (f) Any insurance producer assisting an individual or small employer with
8.8purchasing coverage through the Minnesota Insurance Marketplace must disclose, orally
8.9and in writing, to the individual or small employer at the time of the first solicitation with
8.10the prospective purchaser the following:
8.11    (1) the health carriers and qualified health plans offered through the Minnesota
8.12Insurance Marketplace that the producer is authorized to sell, and that the producer may
8.13not be authorized to sell all the qualified health plans offered through the Minnesota
8.14Insurance Marketplace;
8.15    (2) the producer may be receiving compensation from a health carrier for enrolling
8.16the individual or small employer into a particular health plan; and
8.17    (3) information on all qualified health plans offered through the Minnesota Insurance
8.18Marketplace is available through the Minnesota Insurance Marketplace Web site.
8.19For purposes of this paragraph, "solicitation" means any contact by a producer, or any
8.20person acting on behalf of a producer made for the purpose of selling or attempting to sell
8.21coverage through the Minnesota Insurance Marketplace. If the first solicitation is made by
8.22telephone, the disclosures required under this paragraph need not be made in writing.
8.23    (g) Beginning January 15, 2015, each health carrier that offers or sells qualified
8.24health plans through the Minnesota Insurance Marketplace shall report in writing to the
8.25board and the commissioner of commerce the compensation and other incentives it offers
8.26or provides to insurance producers with regard to each type of health plan the health carrier
8.27offers or sells both inside and outside of the Minnesota Insurance Marketplace. Each
8.28health carrier shall submit a report annually and upon any change to the compensation or
8.29other incentives offered or provided to insurance producers.
8.30    (h) Nothing in this subdivision shall be construed to limit the licensure requirements
8.31or regulatory functions of the commissioner of commerce under chapter 60K.
8.32    Subd. 4. Navigator; in-person assisters; call center. (a) The board shall establish
8.33policies and procedures for the ongoing operation of a navigator program, in-person
8.34assister program, call center, and customer service provisions for the Minnesota Insurance
8.35Marketplace to be implemented beginning January 1, 2015.
9.1(b) Until the implementation of the policies and procedures described in paragraph
9.2(a), the following shall be in effect:
9.3(1) the navigator program shall be met by section 256.962;
9.4(2) entities eligible to be navigators may serve as in-person assisters;
9.5(3) the commissioner of management and budget shall establish requirements and
9.6compensation for the navigator program and the in-person assister program within 30 days
9.7of enactment. Compensation for navigators and in-person assisters must take into account
9.8any other compensation received by the navigator or in-person assister for conducting
9.9the same or similar services; and
9.10(4) call center operations shall utilize existing state resources and personnel,
9.11including referrals to counties for medical assistance.
9.12(c) The commissioner of management and budget shall establish a toll-free number
9.13for the Minnesota Insurance Marketplace and may hire and contract for additional
9.14resources as deemed necessary.
9.15    (d) In establishing training standards for the navigator program, the board must
9.16ensure that all entities and individuals carrying out navigator functions have training in
9.17the needs of underserved and vulnerable populations; eligibility and enrollment rules
9.18and procedures; the range of available public health care programs and qualified health
9.19plan options available through the Minnesota Insurance Marketplace; and privacy and
9.20security standards. For calendar year 2014, the commissioner of human services shall
9.21ensure that the program under section 256.962 provides application assistance for both
9.22qualified health plans offered through the Minnesota Insurance Marketplace and public
9.23health care programs.
9.24(e) The board must ensure that any information provided by navigators, in-person
9.25assisters, the call center, or other customer assistance portals be accessible to persons
9.26with disabilities and that information provided on public health care programs include
9.27information on other coverage options available to persons with disabilities.
9.28    Subd. 5. Health carrier and health plan requirements; participation. (a)
9.29Beginning January 1, 2015, the board may establish minimum certification requirements
9.30for health carriers and health plans to be offered through the Minnesota Insurance
9.31Marketplace that satisfy the federal requirements under section 1311(c)(1) of the
9.32Affordable Care Act (Public Law 111-148).
9.33    (b) Paragraph (a) does not apply if by June 1, 2013, the legislature enacts regulatory
9.34requirements that:
9.35    (1) apply uniformly to all health carriers and health plans in the individual market;
10.1    (2) apply uniformly to all health carriers and health plans in the small group market;
10.2and
10.3    (3) satisfy minimum federal certification requirements under section 1311(c)(1) of
10.4the Affordable Care Act (Public Law 111-148).
10.5    (c) In accordance with section 1311(e) of the Affordable Care Act (Public Law
10.6111-148), the board shall establish certification procedures for selection of qualified health
10.7plans to be offered through the Minnesota Insurance Marketplace. The board shall certify
10.8a health plan as a qualified health plan, if:
10.9    (1) the health plan meets the minimum certification requirements established in
10.10paragraph (a) or the market regulatory requirements described in paragraph (b); and
10.11    (2) the board determines that making the health plan available through the Minnesota
10.12Insurance Marketplace is in the interests of qualified individuals and qualified employers
10.13using the Minnesota Insurance Marketplace.
10.14    (d) In determining the interests of qualified individuals and employers under
10.15paragraph (c), clause (2), the board may consider affordability; quality and value of
10.16the health plans; promotion of initiatives to reduce health disparities; long-term cost
10.17containment; market stability; and meaningful choice and access. The board may
10.18not exclude a health plan for any reason specified under section 1311(e)(1)(B) of the
10.19Affordable Care Act (Public Law 111-148).
10.20    (e) For qualified health plans offered through the Minnesota Insurance Marketplace,
10.21effective January 1, 2014, the board shall determine whether a health plan satisfies
10.22paragraph (c), clause (2), by considering a combination of the following criteria:
10.23    (1) reasonableness of expected costs supporting the health plan's premiums and
10.24cost-sharing structure;
10.25    (2) quality and sufficiency of the health plan's provider networks;
10.26    (3) quality improvement activities;
10.27    (4) quality initiatives related to cultural and linguistic competency;
10.28    (5) promotion of initiatives for improving health, disease prevention, and wellness;
10.29and
10.30    (6) providing a manageable number of choices to consumers that present clear
10.31product differentiation.
10.32    (f) For qualified health plans offered through the Minnesota Insurance Marketplace,
10.33on or after January 1, 2015, the board shall establish the criteria for satisfying paragraph
10.34(c), clause (2), by February 1 of each year, beginning February 1, 2014. The criteria
10.35must include the measures to be used by the board to determine whether the criteria have
11.1been met. The board may use the rulemaking process described in subdivision 9 for
11.2selection criteria.
11.3    (g) For qualified health plans offered through the Minnesota Insurance Marketplace
11.4beginning January 1, 2015, health carriers must use the most current addendum for Indian
11.5health care providers approved by Centers for Medicare and Medicaid Services and the
11.6tribes as part of their contracts with Indian health care providers.
11.7    Subd. 6. Appeals process; eligibility determinations. (a) The board shall
11.8establish a process for appeal of individual or employer eligibility determinations or
11.9redeterminations of the Minnesota Insurance Marketplace. The process must provide for a
11.10reasonable opportunity to be heard and timely resolution of the appeal, consistent with the
11.11requirements of federal law and regulations.
11.12(b) The Minnesota Insurance Marketplace may establish service-level agreements
11.13with state agencies to conduct hearings for appeals. Notwithstanding section 471.59,
11.14subdivision 1, a state agency is authorized to enter into service-level agreements for this
11.15purpose with the Minnesota Insurance Marketplace.
11.16(c) For proceedings under this subdivision and subdivision 7, the Minnesota
11.17Insurance Marketplace may be represented by an attorney who is an employee of the
11.18Minnesota Insurance Marketplace.
11.19(d) This subdivision does not apply to appeals of determinations where a state
11.20agency hearing is available under section 256.045.
11.21    Subd. 7. Contested case proceeding; health carrier determinations. A health
11.22carrier that is aggrieved by a decision of the board regarding its compliance with
11.23certification requirements or participation in the Minnesota Insurance Marketplace under
11.24subdivision 5 is entitled to a contested case proceeding under chapter 14. The report or
11.25order of the administrative law judge constitutes the final decision in the case, subject to
11.26judicial review under sections 14.63 to 14.69.
11.27    Subd. 8. Agreements; consultation. (a) The board shall:
11.28(1) establish and maintain an agreement with the chief information officer of
11.29the Office of Enterprise Technology for information technology services that ensures
11.30coordination with public health care programs. The board may establish and maintain
11.31agreements with the chief information officer of the Office of Enterprise Technology for
11.32other information technology services, including an agreement that would permit the
11.33Minnesota Insurance Marketplace to administer eligibility for additional health care and
11.34public assistance programs under the authority of the commissioner of human services;
11.35(2) establish and maintain an agreement with the commissioner of human services
11.36for cost allocation and services regarding eligibility determinations and enrollment for
12.1public health care programs that use a modified adjusted gross income standard to
12.2determine program eligibility. The board may establish and maintain an agreement with
12.3the commissioner of human services for other services; and
12.4(3) establish and maintain an agreement with the commissioners of commerce
12.5and health for services regarding enforcement of Minnesota Insurance Marketplace
12.6certification requirements for health plans and dental plans offered through the Minnesota
12.7Insurance Marketplace. The board may establish and maintain agreements with the
12.8commissioners of commerce and health for other services.
12.9(b) The board shall consult with the commissioners of commerce and health
12.10regarding the operations of the Minnesota Insurance Marketplace.
12.11(c) The board shall consult with Indian tribes and organizations regarding the
12.12operation of the Minnesota Insurance Marketplace.
12.13(d) Beginning March 15, 2014, and each March 15 thereafter, the board shall submit
12.14a report to the chairs and ranking minority members of the committees in the senate and
12.15house of representatives with primary jurisdiction over commerce, health, and human
12.16services on all the agreements entered into with the chief information officer of the Office
12.17of Enterprise Technology, or the commissioners of human services, health, or commerce
12.18in accordance with this subdivision. The report shall include the agency in which the
12.19agreement is with; the time period of the agreement; the purpose of the agreement; and
12.20a summary of the terms of the agreement. A copy of the agreement must be submitted
12.21to the extent practicable.
12.22    Subd. 9. Rulemaking in first year. (a) Effective upon enactment until January 1,
12.232014, the Minnesota Insurance Marketplace may adopt rules to implement any provisions
12.24of this chapter following the process in this subdivision.
12.25(b) The Minnesota Insurance Marketplace shall publish proposed rules in the State
12.26Register.
12.27(c) Interested parties have 21 days after publication to comment on the proposed
12.28rules. After the Minnesota Insurance Marketplace has considered all comments, the
12.29Minnesota Insurance Marketplace shall publish notice in the State Register that the rules
12.30have been adopted and the rules shall take effect on publication.
12.31(d) If the adopted rules are the same as the proposed rules, the notice shall state that
12.32the rules have been adopted as proposed and shall cite the prior publication. If the adopted
12.33rules differ from the proposed rules, the portions of the adopted rules that differ from the
12.34proposed rules shall be included in the notice of adoption, together with a citation to the
12.35prior State Register that contained the notice of the proposed rules.
13.1(e) The Minnesota Insurance Marketplace shall seek comments from the Department
13.2of Administration, Information Policy Analysis Division, before adopting any final rules
13.3involving the sharing, use, or disclosure of not public data.
13.4(f) By January 15, 2014, the board shall submit a report to the chairs and ranking
13.5minority members of the committees in the senate and the house of representatives
13.6with primary jurisdiction over commerce and health, that lists and describes all rules
13.7promulgated under this subdivision.
13.8    (g) If the rulemaking process described in this subdivision is not used, the board
13.9must comply with the standard rulemaking process in chapter 14.
13.10    Subd. 10. Rulemaking after the first year. Beginning January 1, 2014, the
13.11board may adopt rules to implement any provisions in this chapter using the expedited
13.12rulemaking process in section 14.389. If the expedited rulemaking process is not used, the
13.13board must comply with the standard rulemaking process in chapter 14.
13.14    Subd. 11. Dental plans. (a) The provisions of this section that apply to health plans
13.15shall apply to dental plans offered as stand-alone dental plans through the Minnesota
13.16Insurance Marketplace, to the extent practicable.
13.17    (b) A stand-alone dental plan offered through the Minnesota Insurance Marketplace
13.18must meet all certification requirements under section 1311(c)(1) of the Affordable Care
13.19Act (Public Law 111-148) that are applicable to health plans, except for certification
13.20requirements that cannot be met because the dental plan only covers dental benefits.
13.21    Subd. 12. Limitations; risk-bearing. (a) The board shall not bear insurance risk or
13.22enter into any agreement with health care providers to pay claims.
13.23(b) Nothing in this subdivision shall prevent the Minnesota Insurance Marketplace
13.24from providing insurance for its employees.

13.25    Sec. 10. [62V.06] DATA.
13.26(a) The definitions in section 13.02 apply to this section.
13.27(b) Government data of the Minnesota Insurance Marketplace on individuals,
13.28employees of employers, and employers using the Minnesota Insurance Marketplace are
13.29private data on individuals or nonpublic data. The Minnesota Insurance Marketplace
13.30may share not public data with state and federal agencies and other entities if the board
13.31determines that the exchange of the data is necessary to carry out the functions of the
13.32Minnesota Insurance Marketplace. State agencies shall share not public data with the
13.33Minnesota Insurance Marketplace if the board determines that the exchange of the
13.34data is reasonably necessary to carry out the functions of the Minnesota Insurance
13.35Marketplace. Data-sharing agreements must include adequate protections with respect to
14.1the confidentiality and integrity of the data to be shared and comply with applicable law.
14.2Notwithstanding the provisions governing summary data in sections 13.02, subdivision
14.319, and 13.05, subdivision 7, the Minnesota Insurance Marketplace may derive summary
14.4data from nonpublic data under this section.

14.5    Sec. 11. [62V.07] FUNDS.
14.6    The Minnesota Insurance Marketplace account is created in the special revenue fund
14.7of the state treasury. All funds received by the Minnesota Insurance Marketplace shall
14.8be deposited in the account. Funds in the account are appropriated to the Minnesota
14.9Insurance Marketplace for the operation of the Minnesota Insurance Marketplace.

14.10    Sec. 12. [62V.08] REPORT.
14.11The Minnesota Insurance Marketplace shall submit a report to the legislature by
14.12January 15, 2015, and each January 15 thereafter, on: (1) the performance of Minnesota
14.13Insurance Marketplace operations; (2) meeting the Minnesota Insurance Marketplace
14.14responsibilities; and (3) an accounting of the Minnesota Insurance Marketplace budget
14.15activities.

14.16    Sec. 13. [62V.09] EXPIRATION AND SUNSET EXCLUSION.
14.17Notwithstanding section 15.059, the board and its advisory committees shall not
14.18expire. The board and its advisory committees are not subject to review or sunsetting
14.19under chapter 3D.

14.20    Sec. 14. [62V.10] LEGISLATIVE OVERSIGHT COMMITTEE.
14.21    Subdivision 1. Legislative oversight. (a) The legislative oversight committee is
14.22established to provide oversight to the implementation of this chapter and the operation
14.23of the Minnesota Insurance Marketplace.
14.24(b) The committee shall review the operations of the Minnesota Insurance
14.25Marketplace at least annually and shall recommend necessary changes in policy,
14.26implementation, and statutes to the board and to the legislature.
14.27(c) The Minnesota Insurance Marketplace shall present to the committee the annual
14.28report required in section 62V.08, as well as the reports on rules required in section
14.2962V.05, subdivision 9, the appeals process under section 62V.05, subdivision 6, and the
14.30actions taken regarding the treatment of multiemployer plans.
14.31    Subd. 2. Membership; meetings; compensation. (a) The legislative oversight
14.32committee shall consist of five members of the senate, three members appointed by the
15.1majority leader of the senate, and two members appointed by the minority leader of the
15.2senate; and five members of the house of representatives, three members appointed by
15.3the speaker of the house, and two members appointed by the minority leader of the house
15.4of representatives.
15.5(b) Appointed legislative members serve at the pleasure of the appointing authority
15.6and shall continue to serve until their successors are appointed.
15.7(c) The first meeting of the committee shall be convened by the chair of the
15.8Legislative Coordinating Commission. Members shall elect a chair at the first meeting.
15.9The chair must convene at least one meeting annually, and may convene other meetings as
15.10deemed necessary.
15.11(d) The members shall serve without compensation.
15.12    Subd. 3. Review of costs. The board shall submit for review the estimated costs
15.13necessary to fund the operations of the Minnesota Insurance Marketplace as certified under
15.14section 16A.725, subdivision 2a, to the committee at the same time as the certification is
15.15provided to the commissioner of management and budget.

15.16    Sec. 15. TRANSITION OF AUTHORITY.
15.17(a) Upon the effective date of this act, the commissioner of management and budget
15.18shall exercise all authorities and responsibilities under Minnesota Statutes, sections 62V.03
15.19and 62V.05 until the board has satisfied the requirements of Minnesota Statutes, section
15.2062V.05, subdivision 1, paragraph (c). In exercising these authorities and responsibilities of
15.21the board, the commissioner of management and budget shall be subject to or exempted
15.22from the same statutory provisions as the board, as identified in Minnesota Statutes,
15.23section 62V.03, subdivision 2.
15.24(b) Upon the establishment of bylaws, policies, and procedures governing the
15.25operations of the Minnesota Insurance Marketplace by the board as required under
15.26Minnesota Statutes, section 62V.05, subdivision 1, paragraph (c), all personnel, assets,
15.27contracts, obligations, and funds managed by the commissioner of management and
15.28budget for the design and development of the Minnesota Insurance Marketplace shall be
15.29transferred to the board. Existing personnel managed by the commissioner of management
15.30and budget for the design and development of the Minnesota Insurance Marketplace shall
15.31staff the board upon enactment.

15.32    Sec. 16. MINNESOTA COMPREHENSIVE HEALTH ASSOCIATION
15.33TERMINATION.
16.1The commissioner of commerce, in consultation with the board of directors of
16.2the Minnesota Comprehensive Health Association, has the authority to develop and
16.3implement the phase out and eventual termination of coverage provided by the Minnesota
16.4Comprehensive Health Association under Minnesota Statutes, chapter 62E. The phase out
16.5of coverage shall begin no sooner than January 1, 2014, or upon the effective date of the
16.6operation of the Minnesota Insurance Marketplace and the ability to purchase qualified
16.7health plans through the Minnesota Insurance Marketplace, whichever is later, and shall,
16.8to the extent practicable, ensure the least amount of disruption to the enrollees' health care
16.9coverage. The member assessments established under Minnesota Statutes, section 62E.11,
16.10shall take into consideration any phase out of coverage implemented under this section.

16.11    Sec. 17. REPORT ON APPEALS PROCESS.
16.12By February 1, 2014, and February 1, 2015, the Board of Directors of the Minnesota
16.13Insurance Marketplace shall submit a report to the chairs and ranking minority members
16.14of the committees in the senate and house of representatives with primary jurisdiction over
16.15commerce, health, and civil law on the appeals process for eligibility determinations
16.16established under Minnesota Statutes, section 62V.05, subdivision 6.

16.17    Sec. 18. CONTINGENT TREATMENT OF MULTIEMPLOYER PLANS.
16.18    On or after the date that final federal regulations are adopted regarding the treatment
16.19of multiemployer plans, the Minnesota Insurance Marketplace shall take such actions as
16.20are necessary, in consultation with the commissioner of commerce and in accordance with
16.21final federal regulations, to: (1) ensure that all multiemployer plans are notified of the
16.22final federal rules; (2) conform all policies and procedures of the Minnesota Insurance
16.23Marketplace with applicable federal rules related to multiemployer plans; and (3) permit
16.24multiemployer plans to be integrated in the Minnesota Insurance Marketplace to the
16.25maximum extent permitted by federal rules. The Minnesota Insurance Marketplace shall
16.26submit written notification to the legislature regarding its compliance with this section.

16.27    Sec. 19. REPEALER.
16.28Minnesota Statutes 2012, section 256.9658, subdivision 1, is repealed.

16.29    Sec. 20. EFFECTIVE DATE.
16.30Sections 1 to 19 are effective the day following final enactment. Any actions taken
16.31by any state agencies in furtherance of the design, development, and implementation
16.32of the Minnesota Insurance Marketplace prior to the effective date shall be considered
17.1actions taken by the Minnesota Insurance Marketplace and shall be governed by the
17.2provisions of this chapter and state law. Health plan and dental plan coverage through the
17.3Minnesota Insurance Marketplace is effective January 1, 2014."
17.4Amend the title numbers accordingly
17.5And when so amended that the bill be recommended to pass and be referred to
17.6the full committee.
..... 17.7
17.8(Division Chair)
17.9February 14, 2013 .....
17.10(Date of Division recommendation)