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(b) Science labs and
workforce initiatives 5,140,000
To renovate, furnish, and equip teaching
laboratories and classrooms for science and applied technology at campuses
statewide. Campuses may use nonstate
funds to increase the size of the projects.
This appropriation may be used at the following campuses: Central Lakes College, Brainerd; Minnesota
State College, Southeast Technical, Winona; Minnesota State Community and
Technical College, Moorhead and Detroit Lakes; Minnesota West Community and Technical
College, Granite Falls; Northland Community and Technical College, Thief River
Falls; Northwest Technical College, Bemidji, Pine Technical College; Riverland
Community College, Austin; and South Central College, Faribault.
(c) Property Acquisition 3,400,000
To acquire real property adjacent to the state
college and university campuses or within the boundaries of the campus master
plan. This appropriation may be used at
St. Cloud Technical College.
Subd. 23. Debt service
(a) The board shall pay the debt service on
one-third of the principal amount of state bonds sold to finance projects
authorized by this section, except for higher education asset preservation and
replacement and the design of Memorial Hall at Winona State University, except
that, where a nonstate match is required, the debt service is due on a
principal amount equal to one-third of the total project cost, less the match
committed before the bonds are sold.
After each sale of general obligation bonds, the commissioner of finance
shall notify the board of the amounts assessed for each year for the life of
the bonds.
(b) The commissioner shall reduce the board's
assessment each year by one-third of the net income from investment of general
obligation bond proceeds in proportion to the amount of principal and interest
otherwise required to be paid by the board.
The board shall pay its resulting net assessment to the commissioner of
finance by December 1 each year. If the
board fails to make a payment when due, the commissioner of finance shall
reduce allotments for appropriations from the general fund otherwise available
to the board and apply the amount of the reduction to cover the missed debt
service payment. The commissioner of
finance shall credit the payments received from the board to the bond debt
service account in the state bond fund each December 1 before money is
transferred from the general fund under Minnesota Statutes, section 16A.641,
subdivision 10.
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Subd. 24. Unspent Appropriations
(a) Upon substantial completion of a project
authorized in this section and after written notice to the commissioner of
finance, the Board of Trustees must use any money remaining in the
appropriation for that project for HEAPR under Minnesota Statutes, section
135A.046. The Board of Trustees must
report by February 1 of each even-numbered year to the chairs of the house and
senate committees with jurisdiction over capital investments and higher
education finance, and to the chairs of the house Ways and Means Committee and
the senate Finance Committee, on how the remaining money has been allocated or
spent.
(b) The unspent portion of an appropriation
for a project in this section that is complete, is available for higher
education asset preservation and replacement under this subdivision, at the
same campus as the project for which the original appropriation was made and
the debt service requirement under subdivision 23 is reduced accordingly. Minnesota Statutes, section 16A.642, applies
from the date of the original appropriation to the unspent amount transferred.
Sec. 4. MINNESOTA DEPARTMENT OF EDUCATION
17,200,000
Subdivision
1. To the commissioner of
education for the purposes specified in this section.
Subd. 2. Independent School District No. 707,
Nett Lake 10,700,000
This appropriation is from the maximum effort
school loan fund for a capital loan to Independent School District No. 707,
Nett Lake, as provided in Minnesota Statutes, sections 126C.60 to 126C.72, to
design, construct, furnish, and equip renovation of the elementary school and
construction of a new facility to house Head Start, day care, youth programs, a
community medical clinic, and K-6 education.
The commissioner and Independent School District No. 707, Nett Lake,
shall report to the legislature by January 10, 2007, on the progress of the
capital loan.
Subd. 3. Library improvement grants 1,000,000
For library improvement grants under
Minnesota Statutes, section 134.45, subdivision 5b.
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Subd. 4. MacPhail Music Center 5,000,000
(a) For a grant to the city of Minneapolis to
predesign, design, construct, furnish, and equip a new facility for the
MacPhail Center for Music. The city of
Minneapolis may enter into a lease or management agreement to operate the
center, subject to Minnesota Statutes, section 16A.695. This appropriation is not available until
the commissioner has determined that not less than $15,000,000 has been
committed to the MacPhail Center for Music from nonstate sources, and that the
available money is sufficient to complete a functional facility. Money secured before the effective date of
this section may count toward the required commitment of nonstate sources,
provided it is used for qualified capital expenditures. Any land acquisition costs paid by MacPhail
Center for Music qualify as capital expenditures.
(b) The city of Minneapolis may provide money
to predesign, design, construct, furnish, and equip a center for music
education, including classrooms and a recital hall in the city of Minneapolis,
to provide a facility for education of students, music therapy programs for
persons with disabilities, music teacher training opportunities, curriculum and
program development, and to provide the programming in public and private
schools and in partnership with other organizations throughout the state.
Subd.
5. Early Childhood Learning and Child Protection Facilities 500,000
To the commissioner of human services for
grants to rehabilitate facilities for programs under Minnesota Statutes,
section 119A.45, except that a grant may not exceed $75,000 per program and
$200,000 per facility.
Sec. 5. MINNESOTA STATE ACADEMIES
Subdivision
1. To the commissioner of
administration for the purposes specified in this section 2,534,000
Subd. 2. Asset preservation 2,509,000
For asset preservation on both campuses of
the academies, to be spent in accordance with Minnesota Statutes, section
16B.307.
Subd. 3. Frechette Hall 25,000
To begin to design the renovation of
Frechette Hall, including a new electrical system, new HVAC system, new
windows, plumbing upgrades, removal of the fireplace and sunken seating in the
commons area, addition of recreational space for students to utilize during
inclement weather, and repair of the Scout Cabin.
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Sec. 6. PERPICH CENTER FOR ARTS EDUCATION
1,051,000
To the commissioner of administration for
campus asset preservation at the Perpich Center for Arts Education, including
sewer line replacement, air conditioning, reroofing of the east half of the
main school building, and sidewalk and paving improvements, to be spent in
accordance with Minnesota Statutes, section 16B.307.
Sec. 7. NATURAL RESOURCES
Subdivision
1. To the commissioner of
natural resources for the purposes specified in this section 100,704,000
The appropriations in this section are
subject to the requirements of the natural resources capital improvement
program set forth in new Minnesota Statutes, section 86A.12, unless this
section or the statutes referred to in this section provide more specific
standards, criteria, or priorities for projects than section 86A.12.
Subd. 2. Statewide Asset Preservation 2,000,000
For the renovation of state-owned facilities
operated by the commissioner of natural resources, to be spent in accordance
with Minnesota Statutes, section 16B.307.
The commissioner may use this appropriation to replace buildings if that
is the most cost-effective method of renovation.
The unspent portion of an appropriation, but
not to exceed ten percent of the appropriation, for a project in this section
that is complete, other than an appropriation for flood hazard mitigation, is
available for asset preservation.
Minnesota Statutes, section 16A.642, applies from the date of the
original appropriation to the unspent amount transferred.
Subd. 3. Flood Hazard Mitigation Grants 25,000,000
For the state share of flood hazard
mitigation grants for publicly owned capital improvements to prevent or
alleviate flood damage under Minnesota Statutes, section 103F.161.
The commissioner shall determine project
priorities as appropriate, based on need.
This appropriation includes money for the
following projects:
(a) Austin
(b) Albert Lea
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(c) Crookston
(d) Canisteo Mine
(e) Delano
(f) East Grand Forks
(g) Golden Valley
(h) Grand Marais Creek
(i) Granite Falls
(j) Inver Grove Heights
(k) Manston Slough
(l) Oakport Township
(m) Riverton Township
(n) Shell Rock Watershed District
(o) St. Vincent
(p) Wild Rice River Watershed District
For any project listed in this subdivision
that the commissioner determines is not ready to proceed or does not expend all
the money allocated to it, the commissioner may allocate that project's money
to a project on the commissioner's priority list.
To the extent that the cost of a project in
Ada, Breckenridge, Crookston, Dawson, East Grand Forks, Granite Falls, Montevideo,
Oakport Township, Roseau, St. Vincent, or Warren exceeds two percent of the
median household income in the municipality multiplied by the number of
households in the municipality, this appropriation is also for the local share
of the project. The local share for the
St. Vincent dike may not exceed $30,000.
Subd. 4. Dam renovation and removal 2,250,000
To renovate or remove publicly owned
dams. The commissioner shall determine
project priorities as appropriate under Minnesota Statutes, sections 103G.511
and 103G.515.
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$250,000 is for a grant to the city of Kenyon
for the Kenyon embankment removal project.
Notwithstanding Minnesota Statutes, section
16A.69, subdivision 2, upon the award of final contracts for the completion of
a project listed in this subdivision, the commissioner may transfer the
unencumbered balance in the project account to any other dam renovation or
removal project on the commissioner's priority list.
Subd. 5. Stream protection and restoration
2,000,000
For the design and construction of the
following stream protection and restoration projects: the Red Lake River, Otter
Tail Power dam upstream of Crookston; Otter Tail River, Lake Breckinridge dam;
Red River of the North, Christine, and Hickson dams; West Branch of the Lac Qui
Parle River, Dawson; Des Moines River, city of Jackson dam; South Fork Crow
River, Hutchinson dam; and Red River of the North, $25,000 for riverbank
protection and restoration within the city of Oslo.
Subd.
6. Water access acquisition, betterment, and fishing piers 3,000,000
For public water access acquisition,
construction, and renovation projects of a capital nature on lakes and rivers,
including water access through the provision of fishing piers and shoreline
access under Minnesota Statutes, section 86A.05, subdivision 9.
Subd. 7. Lake Superior safe harbors 3,000,000
To design and construct capital improvements
to public accesses and small craft harbors on Lake Superior in accordance with
Minnesota Statutes, sections 86A.20 to 86A.24, and in cooperation with the
United States Army Corps of Engineers.
This appropriation may be used to develop the
harbor of refuge and marina at Two Harbors and is added to the appropriations
in Laws 1998, chapter 404, section 7, subdivision 24; and Laws 2000, chapter
492, article 1, section 7, subdivision 21, as amended by Laws 2005, chapter 20,
article 1, section 42. Notwithstanding
those laws, the commissioner may proceed with the Two Harbors project upon
securing an agreement with the U.S. Army Corps of Engineers that commits
federal expenditures of at least $4,000,000 to the project.
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Subd. 8. Fisheries acquisition and improvement
2,000,000
To acquire land and interests in land for aquatic
management areas and to make public improvements and betterments of a capital
nature to aquatic management areas established under Minnesota Statutes,
section 86A.05, subdivision 14.
Subd. 9. Fish hatchery improvements 1,000,000
For improvements of a capital nature to renovate
fish culture facilities at hatcheries owned by the state and operated by the
commissioner of natural resources under Minnesota Statutes, section 97A.045,
subdivision 1.
Subd. 10. RIM
- wildlife area land acquisition and improvement 14,000,000
To acquire land for wildlife management area
purposes and for improvements of a capital nature to develop, protect, or
improve habitat and facilities on wildlife management areas under Minnesota
Statutes, section 86A.05, subdivision 8.
Subd. 11. Water control structures 1,000,000
To rehabilitate or replace water control structures
used to manage shallow lakes and wetlands for waterfowl habitat on wildlife
management areas under Minnesota Statutes, section 86A.05, subdivision 8.
Subd. 12. Native prairie bank easements and
development 1,000,000
To acquire native prairie bank easements under
Minnesota Statutes, section 84.96, and to develop and restore certain tracts of
prairie bank lands for which the easement is permanent.
Subd. 13. Scientific
and natural area acquisition and development 2,000,000
To acquire land for scientific
and natural areas and for protection and improvements of a capital nature to
scientific and natural areas under Minnesota Statutes, sections 84.033 and
86A.05, subdivision 5.
Subd. 14. State forest land acquisition 1,000,000
To acquire private lands from willing sellers within
the boundaries of state forests established under Minnesota Statutes, section
89.021.
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Subd.
15. Large scale forest land and Forest Legacy conservation easements
7,000,000
To acquire conservation easements as
described under Minnesota Statutes, chapter 84C, on private forest lands and
within Forest Legacy Areas established under United States Code, title 16,
section 2103c. The conservation
easements must guarantee public access, including hunting and fishing. Expenditure of money from this appropriation
within a Forest Legacy Area must be matched by $2 of nonstate money for each $1
of state money.
Subd. 16. State forest land reforestation 4,000,000
To increase reforestation activities to meet
the reforestation requirements of Minnesota Statutes, section 89.002,
subdivision 2, including planting, seeding, site preparation, and purchasing
tree seeds and seedlings.
Subd. 17. State park and recreation area
acquisition 3,000,000
To acquire from willing sellers private lands
within state parks established under Minnesota Statutes, section 85.012, and
state recreation areas established under Minnesota Statutes, section 85.013.
Subd.
18. State park infrastructure rehabilitation and natural resource
restoration 3,000,000
For infrastructure rehabilitation and natural
resource restoration projects within state parks established under Minnesota
Statutes, section 85.012, and state recreation areas established under
Minnesota Statutes, section 85.013.
$25,000 is for electrical hookups at Monson
Lake State Park.
Subd. 19. State park building construction and rehabilitation 3,000,000
To construct and to renovate buildings in
state parks and state recreation areas in accordance with a master plan
required under Minnesota Statutes, section 86A.09.
$1,500,000 is to construct a visitor center
at Grand Portage State Park. The
unexpended balance from the appropriation in Laws 2005, chapter 20, article 1,
section 7, subdivision 22, to predesign and design the center may be added to
this appropriation.
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Subd. 20. State park camper cabins 2,000,000
To construct camper cabins and upgrade
infrastructure for the cabins in state parks under Minnesota Statutes, section
85.012, and state recreation areas under Minnesota Statutes, section 85.013.
$150,000 is for camper cabins at Glacial
Lakes State Park and $150,000 is for camper cabins at Sibley State Park.
Subd. 21. State trail acquisition and development
10,811,000
To acquire land for and to construct and
renovate state trails under Minnesota Statutes, section 85.015.
$750,000 is for the Blufflands Trail:
$350,000 is for the Chester Woods segment; $300,000 is for the segment from
Preston to Forestville; and $100,000 is for the Root River segment.
$500,000 is for the Casey Jones Trail.
$400,000 is for the Cuyuna Lakes Trail.
$750,000 is for the Gateway Trail.
$1,185,000 is for the Gitchi-Gami Trail.
$1,000,000 is for the Glacial Lakes Trail
from New London to Paynesville. Money
not needed for that segment may be used for the segment from Paynesville to
Richmond.
$500,000 is for the Goodhue Pioneer Trail.
$250,000 is for the Heartland Trail from Park
Rapids to Detroit Lakes.
$1,000,000 is for the Mill Towns Trail.
$226,000 is for the Minnesota River Trail
from Big Stone National Wildlife Refuge to the city of Ortonville.
$1,500,000 is for the Paul Bunyan Trail.
$750,000 is for the Shooting Star Trail.
$2,000,000 is for the rehabilitation of state
trails.
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For any project listed in this subdivision
that the commissioner determines is not ready to proceed, the commissioner may
allocate that project's money to another state trail project identified in this
subdivision. The chairs of the house
and senate committees with jurisdiction over environment and natural resources
and legislators from the affected legislative districts must be notified of any
changes.
Subd. 22. Regional trails 1,133,000
For matching grants under Minnesota Statutes,
section 85.019, subdivision 4b.
$648,000 is for the Agassiz Recreational ATV
Trail.
$485,000 is for a grant to the Central
Minnesota Regional Parks and Trails Coordination Board to design, engineer, and
construct 6.3 miles of trail and two parking areas along the Mississippi River
in Sherburne County, to be known as Xcel Energy Great River Woodland
Trail.
Subd. 23. Trail connections 2,010,000
For matching grants under Minnesota Statutes,
section 85.019, subdivision 4c.
$500,000 is for a grant to Carlton County to
predesign, design, and construct a nonmotorized pedestrian trail connection to
the Willard Munger State Trail from the city of Carlton through the city of
Scanlon continuing to the city of Cloquet, along the St. Louis River in Carlton
County.
$260,000 is to provide the state match for
the cost of the Soo Line Multiuse Recreational Bridge project over marked Trunk
Highway 169 in Mille Lacs County.
$175,000 is for a grant to the city of Bowlus
in Morrison County to design, construct, furnish, and equip a trailhead center
at the head of the Soo Line Recreational Trail.
$125,000 is for a grant to Morrison County to
predesign, design, construct, furnish, and equip a park-and-ride lot and
restroom building adjacent to the Soo Line Recreational Trail at U.S. Highway 10.
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$950,000 is for a grant to the St. Louis and
Lake Counties Regional Railroad Authority for land acquisition, engineering,
construction, furnishing, and equipping of a 19-mile "Boundary Waters
Connection" of the Mesabi Trail from Bearhead State Park to the
International Wolf Center in Ely. This
appropriation is contingent upon a matching contribution of $950,000 from other
sources, public or private.
Subd. 24. Metro greenways and natural areas
500,000
To provide grants to local units of
government for acquisition or betterment of greenways and natural areas in the
metro region and portions of the surrounding counties and to acquire greenways
and natural areas in the metro region and portions of the surrounding counties
through the purchase of conservation easements or fee titles. The commissioner shall determine the project
priorities and shall consult with representatives of local units of government,
nonprofit organizations, and other interested parties.
Subd. 25. Local initiative grants 2,000,000
(1) For grants to units of government to
acquire and better parks and outdoor recreation areas under Minnesota Statutes,
section 85.019, subdivision 2; and
(2) for grants to units of government to
acquire and better natural and scenic areas under Minnesota Statutes, section
85.019, subdivision 4a.
Subd. 26. Forest Roads and Bridges 1,000,000
For reconstruction, resurfacing, replacement,
and construction of state forest roads and bridges under Minnesota Statutes,
section 89.002.
Subd. 27. Prairie Wetlands ELC 2,000,000
For a grant under Minnesota Statutes, section
84.0875, to the city of Fergus Falls to predesign, design, construct, furnish,
and equip the expansion of the Prairie Wetlands Environmental Learning Center.
Sec. 8. POLLUTION CONTROL AGENCY
Subdivision
1. To the Pollution Control
Agency for the purposes specified in this section 17,300,000
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Subd. 2. Closed Landfill Program 10,800,000
To design and construct remedial systems and
acquire land at landfills throughout the state in accordance with the closed
landfill program under Minnesota Statutes, section 115B.39 to 115B.42.
$3,650,000 is to design and construct
remedial systems at the Albert Lea Landfill, including relocating and
incorporating waste from the former Albert Lea Dump owned by the City of Albert
Lea pursuant to Minnesota Statutes, section 115B.403, which action may be taken
by the Pollution Control Agency notwithstanding the provisions of Minnesota
Statutes, section 115B.403, paragraphs (a) and (b).
Subd. 3. Capital Assistance Program 4,000,000
For the solid waste capital assistance grants
program under Minnesota Statutes, section 115A.54.
Subd. 4. Koochiching RECAP 2,500,000
For a grant to Koochiching County to prepare
a site for and to design, construct, and equip a plasma torch gasification
facility that converts municipal solid waste into energy and slag, reducing the
need to dispose of the waste in a landfill.
This appropriation is not available until the
commissioner has determined that at least an equal amount has been committed to
the project from nonstate sources.
Sec. 9. BOARD OF WATER AND SOIL RESOURCES
Subdivision
1. To the Board of Water and Soil
Resources for the purposes specified in this section 7,900,000
Subd. 2. Wetland replacement due to public road
projects 4,200,000
$700,000 is from the general fund to
administer the program.
To acquire land for wetlands or restore
wetlands to be used to replace wetlands drained or filled as a result of the
repair, maintenance, or rehabilitation of existing public roads as required by
Minnesota Statutes, section 103G.222, subdivision 1, paragraphs (k) and (l).
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The purchase price paid for acquisition of
land, fee, or perpetual easement must be the fair market value as determined by
the board. The board may enter into
agreements with the federal government, other state agencies, political
subdivisions, and nonprofit organizations or fee owners to acquire land and
restore and create wetlands and to acquire existing wetland banking
credits. Acquisition of or the
conveyance of land may be in the name of the political subdivision.
Subd. 3. Streambank, Lakeshore Erosion Control
1,000,000
For grants to soil and water conservation
districts for streambank, stream channel, lakeshore, and roadside protection
and restoration projects through the state cost-share program under Minnesota
Statutes, section 103C.501.
Subd. 4. Minnesota River Area II 500,000
For grants to assist local governments in
Area II of the Minnesota River Basin to acquire, design, and construct
floodwater retention systems. The
grants are not available until the board determines that $1 has been committed
to the project from nonstate sources for every $3 of state grant.
Subd. 5. Grass Lake 2,200,000
To acquire conservation easements, reroute
County Ditch 23A, construct water control structures, and plant vegetation in
order to restore the Grass Lake prairie wetland basin adjacent to the city of
Willmar in Kandiyohi County.
Sec. 10. AGRICULTURE 1,500,000
To the commissioner of administration to construct,
furnish, and equip a biosafety level 3 agriculture laboratory in the
Agriculture and Health Joint Laboratory facility in St. Paul.
Sec. 11. MINNESOTA ZOOLOGICAL GARDEN
Subdivision
1. To the Minnesota Zoological
Garden for the purposes in this section. 15,000,000
Subd. 2. Asset Preservation 7,500,000
For capital asset preservation improvements
and betterments, to be spent in accordance with Minnesota Statutes, section
16B.307.
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Subd. 3. Master Plan 7,500,000
For implementation of the 2001 Minnesota
Zoological Garden Facilities and Business Master Plan.
Sec. 12. ADMINISTRATION
Subdivision
1. To the commissioner of
administration for the purposes specified in this section 9,250,000
Subd.
2. Capital Asset Preservation and Replacement Account (CAPRA) 4,000,000
To be spent in accordance with Minnesota
Statutes, section 16A.632.
Subd. 3. Asset Preservation 5,000,000
For asset preservation projects in properties
managed by the commissioner. This
appropriation must be spent in accordance with Minnesota Statutes, section
16B.307.
$150,000 is to restore and renovate the
Minnesota Peace Officers Memorial on the Capitol grounds in St. Paul.
Subd. 4. Workers Memorial 100,000
To design and construct a workers memorial on
the Capitol grounds in St. Paul.
Subd. 5. Hmong Veterans Statue 150,000
To complete design and construction of a statue
in the capitol area to honor the Hmong veterans of the war in Laos who were
allied with American forces during the Vietnam War, pursuant to Laws 2003,
chapter 69.
Sec.
13. CAPITOL AREA ARCHITECTURAL AND PLANNING BOARD
Capitol Building 2,400,000
To the commissioner of administration to
renovate the dome of the Capitol and continue design work to restore the
Capitol Building.
The appropriation in this section may not be
spent on any project that affects space under the control of the senate without
the approval of the secretary of the senate nor on any project that affects
space under the control of the house of representatives without the approval of
the chief sergeant-at-arms of the house.
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Sec. 14. MILITARY AFFAIRS 7,579,000
Subdivision
1. To the adjutant general for
the purposes specified in this section
Subd. 2. Asset preservation 4,000,000
For asset preservation improvements and
betterments of a capital nature at military affairs facilities statewide, to be
spent in accordance with Minnesota Statutes, section 16B.307.
Subd. 3. Facility life safety improvements
1,000,000
For life safety improvements and to correct
code deficiencies at military affairs facilities statewide, to be spent in
accordance with Minnesota Statutes, section 16B.307.
Subd. 4. Lead abatement and range conversion
1,029,000
For lead abatement and to design, construct,
furnish, and equip the current indoor
firing ranges in ten National Guard Training and Community Centers for storage
space, classrooms, and office space.
This appropriation may be used at Training and Community Centers located
in the cities of: Albert Lea, Bloomington,
Brainerd, Duluth, Jackson, Montevideo, Moorhead, Rochester, Rosemount, and St.
Peter.
Subd. 5. Facility ADA compliance 1,400,000
For Americans with Disabilities Act (ADA)
alterations to existing National Guard Training and Community Centers in
locations throughout the state, to be spent in accordance with Minnesota
Statutes, section 16B.307.
Subd. 6. Starbase Minnesota 150,000
For predesign and design of a new facility
for the Starbase Minnesota program, subject to Minnesota Statutes, section
16A.695.
Sec. 15. PUBLIC SAFETY
Scott County Public Safety Training Center 1,000,000
To the commissioner of public safety for a
grant to Scott County to design, construct, furnish, and equip a regional
public safety training center.
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Sec. 16. TRANSPORTATION
Subdivision
1. To the commissioner of
transportation for the purposes specified in this section 143,000,000
Subd. 2. Local bridge replacement and
rehabilitation 55,000,000
This appropriation is from the bond proceeds
account in the state transportation fund as provided in Minnesota Statutes,
section 174.50, to match federal money and to replace or rehabilitate local
deficient bridges.
Political subdivisions may use grants made
under this section to construct or reconstruct bridges, including:
(1) matching federal-aid grants to construct
or reconstruct key bridges;
(2) paying the costs of preliminary engineering
and environmental studies authorized under Minnesota Statutes, section 174.50,
subdivision 6a;
(3) paying the costs to abandon an existing
bridge that is deficient and in need of replacement, but where no replacement
will be made; and
(4) paying the costs to construct a road or
street to facilitate the abandonment
of an existing bridge determined by the commissioner to be deficient, if the
commissioner determines that construction of the road or street is more cost
efficient than the replacement of the existing bridge.
$2,500,000 is for a grant to Hennepin County
to design replacement of the Lowry Avenue bridge carrying County State-Aid
Highway 153 across the Mississippi River in Minneapolis.
Subd. 3. Local Road Improvement Program 16,000,000
This appropriation is from the bond proceeds
account in the state transportation fund as provided in Minnesota Statutes,
section 174.50.
$7,650,000 is for construction and
reconstruction of local roads with statewide or regional significance under
Minnesota Statutes, section 174.52, subdivision 4. Of this amount, $500,000 is for county state-aid highway 46
between Interstate 35 and Interstate 90 in Freeborn County.
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$
$7,650,000 is for grants to counties to
assist in paying the costs of capital improvement projects on county state-aid
highways under Minnesota Statutes, section 174.52, subdivision 4a, but not to
the county of Anoka, Carver, Chisago, Dakota, Hennepin, Ramsey, Scott, or
Washington.
$700,000 is for a grant to the city of
Staples in Todd County to predesign, design, and construct a highway overpass
over U.S. Highway 10 and the Burlington
Northern Santa Fe Railroad tracks in Staples.
Subd. 4. Northstar Commuter Rail 60,000,000
(a) To acquire land, or an interest in land,
and to design, construct, furnish, and equip the Northstar commuter rail line
serving Big Lake to downtown Minneapolis and to acquire land, or an interest in
land, and to design, construct, furnish, and equip the extension of the
Hiawatha light rail transit line from its terminus in downtown Minneapolis to a
new terminus near Fifth Avenue North adjacent to the proposed downtown
Minneapolis commuter rail station.
(b) This appropriation is added to the
appropriation in Laws 2005, chapter 20, article 1, section 18, subdivision 5.
(c) This appropriation is not available until
a full-funding grant agreement has been executed with the Federal Transit
Administration.
(d) If the Northstar commuter rail line is
extended from Big Lake to the St. Cloud area, regional rail authority members
of the Northstar Corridor Development Authority who did not fund a portion of
the share of capital costs from Minneapolis to Big Lake shall contribute an
amount for the extension equal to the amount they would have contributed for
their proportional share of the entire line from Minneapolis to the St. Cloud
area.
Subd. 5. Northeast Minnesota rail initiative
1,300,000
For a grant to St. Louis County to renovate
the St. Louis County Heritage and Arts Center (the Duluth Depot) and to match
federal money for preliminary engineering, environmental studies, and
construction of the rail line, railway stations, park-and-ride lots, and other
railroad appurtenances necessary to facilitate the return of intercity and
commuter/passenger rail service within Duluth and the Duluth/Twin Cities rail
corridor.
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APPROPRIATIONS
$
Subd. 6. Rail Service Improvement 3,700,000
For the rail service improvement program, to
be spent for the purposes set forth in Minnesota Statutes, section 222.50,
subdivision 7.
(a) $700,000 is for a grant to the McLeod
County Railroad Authority to acquire land for and to design and construct a
railroad switching yard facility in Glencoe.
This appropriation is not available until the commissioner determines
that funds sufficient to complete the project are committed to the project from
nonstate sources.
(b) $1,000,000 is for a grant to the
Minnesota Valley Regional Rail Authority to rehabilitate up to 33 miles of
railroad track from Gibbon to Norwood-Young America. The commissioner may not make the grant until the commissioner
has determined that the authority has obtained a commitment for at least
$495,000 in federal funds for the project.
A grant under this paragraph is in addition to any grant, loan, or loan
guarantee for this project made by the commissioner under Minnesota Statutes,
sections 222.46 to 222.62.
Subd. 7. Port Development Assistance 3,000,000
For grants under Minnesota Statutes, chapter
457A. Any improvements made with the
proceeds of these grants must be publicly owned.
Subd. 8. Greater Minnesota Transit 2,000,000
For capital assistance for greater Minnesota
transit systems to be used for transit capital facilities under Minnesota
Statutes, section 174.24, subdivision 3c.
Money from this appropriation may be used to pay up to 80 percent of the
nonfederal share of these facilities.
Subd. 9. St. Cloud Regional Airport 2,000,000
For a grant to the city of St. Cloud to
acquire land adjacent to the St. Cloud Regional Airport.
Sec. 17. METROPOLITAN COUNCIL
Subdivision
1. To the Metropolitan Council
for the purposes specified in this section 55,962,000
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APPROPRIATIONS
$
Subd. 2. I-35W Bus Rapid Transit (BRT) 3,300,000
For design, preliminary engineering, and
construction of passenger facilities for a Bus Rapid Transit station at 46th
Street and Interstate 35W.
Subd. 3. Cedar Avenue Bus Rapid Transit (BRT)
5,000,000
For environmental studies, preliminary engineering,
bus lane improvements, and transit station construction and improvements in the
Cedar Avenue Bus Rapid Transit Corridor.
This appropriation may not be spent for capital
improvements within a trunk highway right-of-way.
Subd. 4. Central corridor transit way 7,800,000
To conduct environmental
studies, complete preliminary engineering, and design the Central
corridor transit way between downtown Minneapolis and downtown St. Paul.
This appropriation may not be spent for capital
improvements within a trunk highway right-of-way.
This appropriation is not available until the
commissioner of finance has determined that, by September 1, 2006, the
Metropolitan Council, the Ramsey County Regional Rail Authority, and the
Hennepin County Regional Rail Authority have entered into a memorandum of
understanding that specifies future expected funding shares for operating and
capital for the Central Corridor Transit Way.
The agreement must require that the named agencies be responsible for at
least one-third of the state and local match to federal new-start capital
funding.
Subd. 5. Red Rock corridor transit way 500,000
For preliminary engineering and environmental review
of the Red Rock corridor transit way between Hastings and Minneapolis via St.
Paul.
Subd. 6. Robert Street corridor transit way
500,000
For environmental studies and preliminary
engineering of bus rapid transit or light rail transit for the Robert Street
corridor transit way along a corridor on or parallel to U.S. Highway 52 and
Robert Street from within the city of St. Paul to Dakota County Road 42 in
Rosemount.
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APPROPRIATIONS
$
Subd. 7. Union Depot 3,500,000
For a grant to the Ramsey County Regional
Railroad Authority to acquire land and structures, to renovate structures, and
for design, engineering, and environmental work to revitalize Union Depot for
use as a multimodal transit center in St. Paul.
Subd. 8. Metropolitan Regional Parks Capital Improvements 35,362,000
For the cost of improvements and betterments
of a capital nature and acquisition by the council and local government units
of regional recreational open-space lands in accordance with the council's
policy plan as provided in Minnesota Statutes, section 473.147. Priority must be given to park
rehabilitation and land acquisition projects.
$300,000 is for a grant to the city of
Bloomington to renovate the old Cedar Avenue bridge to serve as a hiking and
bicycling trail connection.
$6,000,000 is to acquire land for the Empire
Wetlands Wildlife Area and Regional Park in Dakota County.
$1,800,000 is for a grant to the city of
Minneapolis to complete construction of the Cedar Lake Trail.
$3,500,000 is for a grant to the Minneapolis
Park and Recreation Board to design, construct, furnish, and equip a new
cultural and community center in the East Phillips neighborhood in Minneapolis.
$250,000 is for a grant to the Minneapolis
Park and Recreation Board to predesign completion of the Grand Rounds National
Scenic Byway by providing a link between northeast Minneapolis on Stinson
Avenue and Southeast Minneapolis at East River Road.
$2,500,000 is for a grant to the Minneapolis
Park and Recreation Board to mitigate flooding at Lake of the Isles in the city
of Minneapolis. The grant must be used
for shoreline stabilization and restoration, dredging, wetland replacement, and
other infrastructure improvements necessary to deal with the 1997 flood damage
and to prevent future flooding.
$321,000 is for a grant to Ramsey County to
construct a bicycle and pedestrian trail on the north side of Lower Afton Road
between Century Avenue and McKnight Road in the city of Maplewood. This appropriation is not available until
the commissioner has determined that at least an equal amount has been
committed from nonstate sources.
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APPROPRIATIONS
$
$9,000,000 is for a grant to the city of St.
Paul to predesign, design, construct, furnish, equip, and redevelop
infrastructure at the Como Zoo.
$2,500,000 is for a grant to the city of St.
Paul to acquire land for and to predesign, design, construct, furnish, and
equip river park development and redevelopment infrastructure in National Great
River Park along the Mississippi River in St. Paul.
$2,000,000 is for a grant to the city of
South St. Paul for the closure, capping, and remediation of approximately 80
acres of the Port Crosby construction and demolition debris landfill in South
St. Paul, as the fifth phase of converting the land into parkland, and to
restore approximately 80 acres of riverfront land along the Mississippi River.
$191,000 is for a grant to the city of White
Bear Lake to construct the Lake Avenue Regional Trail connecting Highway 96
Regional Trail with Ramsey Beach.
Sec. 18. HUMAN SERVICES
Subdivision
1. To the commissioner of
administration for the purposes specified in this section 58,321,000
Subd. 2. Asset preservation and facility design
3,000,000
For asset preservation improvements and
betterments of a capital nature at Department of Human Services facilities
statewide, to be spent in accordance with Minnesota Statutes, section
16B.307. Notwithstanding section 16B.307,
subdivision 1, paragraph (d), any portion of this appropriation may also be
used to design the second phase of additional residential, program, and
ancillary service capacity for the Minnesota sex offender treatment program at
Moose Lake.
Subd. 3. Moose Lake Sex Offender Treatment -
Phase 1 41,321,000
To design, construct, furnish, and equip the
first of two phases of additional residential, program, and ancillary service
capacity for the Minnesota sex offender treatment program at Moose Lake to
accommodate 400 additional patients.
Subd.
4. St. Peter Regional Treatment Center Program and Activity Building
2,500,000
To design, construct, furnish, and equip a
new program and activity building on the lower campus of the St. Peter Regional
Treatment Center for individuals committed as sexual psychopathic
personalities, sexually dangerous persons, mentally ill, or mentally ill and
dangerous.
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APPROPRIATIONS
$
Subd. 5. Statewide Security Upgrades 5,000,000
To provide security upgrades of a capital nature at
Department of Human Services campuses, including but not limited to: security fencing, control centers,
electronic monitoring and perimeter security equipment, electrical distribution
systems, and building security renovations.
This appropriation may be used at the St. Peter, Moose Lake, and Anoka
campuses, and at the METO campus in Cambridge.
Subd. 6. Systemwide Redevelopment, Reuse, or
Demolition 5,000,000
To demolish surplus, nonfunctional, or deteriorated
facilities and infrastructure or to renovate surplus, nonfunctional, or
deteriorated facilities and infrastructure at Department of Human Services
campuses that the commissioner of administration is authorized to convey to a
local unit of government under Laws 2005, chapter 20, article 1, section 46, or
other law. These projects must
facilitate the redevelopment or reuse of these campuses and must be implemented
consistent with the comprehensive redevelopment plans developed and approved
under Laws 2003, First Special Session chapter 14, article 6, section 64,
subdivision 2, unless expressly provided otherwise. If a surplus campus is sold or transferred to a local unit of
government, unspent portions of this appropriation may be granted to that local
unit of government for the purposes stated in this subdivision.
Subd. 7. Systemwide Roof Renovation and
Replacement 1,500,000
For renovation and replacement of roofs at
Department of Human Services facilities statewide, to be spent in accordance
with Minnesota Statutes, section 16B.307.
Sec. 19. VETERANS HOMES BOARD
Subdivision 1. To the commissioner of administration for
the purposes specified in this section 12,090,000
Subd. 2. Asset Preservation 6,000,000
For asset preservation improvements and betterments
of a capital nature at veterans homes statewide, to be spent in accordance with
Minnesota Statutes, section 16B.307.
Subd. 3. Fergus Falls Veterans Home 637,000
To design a 21-bed special care unit to treat
individuals with Alzheimer's disease or dementia.
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APPROPRIATIONS
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Subd. 4. Hastings Veterans Home Supportive
Housing 700,000
To design 30 units of permanent supportive
housing for veterans with disabilities.
The Minnesota Veterans Homes Board and the
Minnesota Housing Fiance Agency must work together cooperatively on the
development of a viable permanent supportive housing project to serve only
veterans on the campus of the Hastings home.
Subd. 5. Luverne Veterans Home 599,000
To complete the design, construction,
furnishing, and equipping of an addition to the nursing care facility, to be used
as an Alzheimer's and dementia program, dining, and wander area.
Subd. 6. Minneapolis Veterans Home
Emergency Power 2,457,000
To upgrade the emergency power system to make
it code compliant and add emergency power outlets to Building 17.
Federal money received by the Minnesota
Veterans Homes Board of Directors as reimbursement for 65 percent of this state
capital expenditure must be credited to the debt service account in the state
bond fund.
Subd. 7. Silver Bay Veterans Home
Master Plan Renovation 1,697,000
For the state share of the cost to design,
construct, furnish, and equip an addition to and renovation of the nursing care
facility.
Sec. 20. CORRECTIONS
Subdivision
1. To the commissioner of
administration for the purposes specified in this section 61,065,000
Subd. 2. Asset Preservation 5,000,000
For improvements and betterments of a capital
nature at Minnesota correctional facilities statewide, in accordance with
Minnesota Statutes, section 16B.307.
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APPROPRIATIONS
$
Subd. 3. Minnesota Correctional Facility -
Faribault
Phase 2 27,993,000
To design, construct, furnish, and equip an
expansion at the Minnesota Correctional Facility - Faribault, to include, but
not be limited to, one new 416-bed, double-bunked, wet-celled lockable living
unit; renovation of an existing living unit into a long-term care housing unit;
additional programming space; and demolition of one vacated unit.
Subd. 4. Minnesota correctional facility - Lino
Lakes
Medical services 2,494,000
To design, construct, furnish, and equip the
renovation of the southeast portion of the B building to provide consolidated
health, dental, and psychological services to offenders at the facility.
Subd. 5. Minnesota Correctional Facility - Red
Wing
Vocational Education
Building 623,000
To design a new vocational education building
with a combined classroom and shop complex.
Subd. 6. Minnesota correctional facility -
Shakopee
Bed Expansion 5,375,000
To design, construct, furnish, and equip an
addition to accommodate 92 beds.
Subd. 7. Minnesota correctional facility -
Stillwater
Segregation Unit 19,580,000
To complete design and to construct, furnish,
and equip a 150-bed segregation unit.
Sec. 21. EMPLOYMENT AND ECONOMIC DEVELOPMENT
Subdivision
1. To the commissioner of
employment and economic development or other named agency for the purposes
specified in this section 160,642,000
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APPROPRIATIONS
$
Subd. 2. State match for federal grants 38,800,000
(a) To the Public Facilities Authority:
(1) to match federal grants for the water
pollution control revolving fund under Minnesota Statutes, section 446A.07; and
(2) to match federal grants for the drinking
water revolving fund under Minnesota Statutes, section 446A.081.
(b) The expenditure and allocation of state
matching money between funds described in paragraph (a), clauses (1) and (2),
must ensure that the matching funds required for the drinking water revolving
fund are available to match the 2007 and 2008 federal grants, with the balance
to be made available to the water pollution control revolving fund.
(c) This appropriation must be used for
qualified capital projects.
Subd. 3. Wastewater infrastructure funding
program 23,300,000
(a) To the Public Facilities Authority for
the purposes specified in this subdivision. $20,000,000 of this appropriation
is for grants and loans to eligible municipalities under the wastewater
infrastructure program established in Minnesota Statutes, section 446A.072.
To the greatest practical extent, the
authority must use the appropriation for projects on the 2006 project priority
list in priority order by qualified applicants that submit plans and
specifications to the Pollution Control Agency or receive a funding commitment
from USDA Rural Economic and Community Development by June 30, 2007, or for
projects on the 2007 project priority list in priority order by qualified
applicants that submit plans and specifications to the Pollution Control Agency
or have received a funding commitment from USDA Rural Economic and Community Development
by December 31, 2007.
$300,000 of this appropriation is from the
general fund to implement the wastewater infrastructure program.
(b) The grants listed in this paragraph are
not subject to the 2006 or 2007 project priority list nor to the limitations on
grant amounts set forth in Minnesota Statutes, section 446A.072, subdivision
5a.
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APPROPRIATIONS
$
Up to $6,500,000 is for corrective action on systems
build since 2000 with federal USDA Rural and Economic and Community Development
money or Small Cities Development Program grant money that are problematic or
failing for the cities of Big Fork, Darfur, Donaldson, Nerstrand, Palisade,
Spring Hill, Strandquist, Tamarack, and Wolf Lake. A grant must not exceed the amount of federal money used in the
project unless, upon consultation with the Pollution Control Agency, the
consulting engineers, and other reliable technical experts, the authority
determines the best course of action to correct the problem would exceed that
amount and that other grant funding is not available.
Up to $500,000 is for the
cities of Dunnell, Dumont, Henriette, Lewisville, McGrath, and Ostrander to
cover necessary and appropriate costs over and above the money appropriated in
Laws 2005, chapter 20, article 1, section 23, subdivision 3, paragraph (b).
(c) $3,000,000 of the appropriation in this
subdivision is for a grant to the city of Askov to acquire land for, and to
design, construct, furnish, and equip a new wastewater treatment facility and
sewer and water extensions in the city of Askov.
(d) $1,500,000 of the appropriation in this
subdivision is for a grant to Lake Township in Roseau County to design,
construct, furnish, and equip a wastewater treatment plant at Springsteel.
Subd. 4. Central
Iron Range Sanitary Sewer District Treatment Facilities 2,500,000
To the Public Facilities Authority for a grant to
the Central Iron Range Sanitary Sewer District to design, construct, and equip
an expansion of wastewater treatment at Hibbing's South Wastewater Treatment
Plant, mercury treatment facilities at the plant, and sanitary sewer lines to
connect Hibbing, Chisholm, and Buhl to use the upgrades at the plant.
Subd. 5. Greater
Minnesota Business Development Infrastructure Grant Program 7,750,000
For grants under Minnesota Statutes, section
116J.431.
$250,000 is for a grant to Polk County to build
approximately one mile of ten-ton road to provide access to a new ethanol plant
outside of the city of Erskine.
$1,400,000 is for a grant to the city of LaCrescent
for public infrastructure made necessary by the reconstruction of a highway and
a bridge.
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APPROPRIATIONS
$
Subd. 6. Redevelopment Account 9,000,000
For purposes of the redevelopment account under
Minnesota Statutes, section 116J.571.
$800,000 is for a grant to the city of Worthington
to remediate contaminated soil and redevelop the site of the former Campbell
Soup factory.
$250,000 is for a grant to the city of Winona to
predesign facilities for the Shakespeare Festival as part of the riverfront
redevelopment plan. This grant is
exempt from the requirements of Minnesota Statutes, sections 116J.572 to
116J.575.
Subd. 7. Bioscience
business development public infrastructure
grant program 10,000,000
For grants under new Minnesota Statutes, section
116J.435.
Up to $8,000,000 is for a grant to the city of
Rochester.
$2,000,000 is for grants to political subdivisions
to predesign, design, construct, furnish, and equip publicly owned
infrastructure required to support bioscience development in Minnesota outside
of the counties of Anoka, Carver, Dakota, Hennepin, Olmsted, Ramsey, Scott, and
Washington.
Subd. 8. Workforce Center Renovations 600,000
For renovation of the Workforce Center in North
Minneapolis. Renovations include
exterior sheathing, mold remediation, electrical service upgrades, window
replacement, overhead sprinklers, alley drainage, ADA compliance costs, and
other costs necessary to remediate water damage.
Subd. 9. Total Maximum Daily Load (TMDL) Grants
5,000,000
To the Public Facilities Authority for total maximum
daily load grants under Minnesota Statutes, section 446A.073.
Subd. 10. Clean Water Legacy 3,310,000
To the Public Facilities Authority for the purposes
specified in this subdivision.
(a) $2,310,000 is for the phosphorus reduction grant
program for grants under Minnesota Statutes, section 446A.074. A grant must not exceed $500,000 per
project.
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APPROPRIATIONS
$
(b) $1,000,000 is for the small community wastewater
treatment fund for loans and grants under Minnesota Statutes, section 446A.075.
Subd. 11. Bemidji Regional Events Center 3,000,000
For a grant to the city of Bemidji to predesign,
design, and acquire and prepare a site for a regional event center.
Subd. 12. Burnsville - water treatment facility
2,500,000
To the Public Facilities Authority for a grant to
the city of Burnsville to design, construct, furnish, and equip a water
treatment facility that will provide an additional potable water source for the
city of Burnsville using water from the Burnsville quarry.
This appropriation is added to the appropriation in
Laws 2005, chapter 20, article 1, section 23, subdivision 6, and is subject to
the same conditions.
Subd. 13. Duluth
Lake Superior Zoo 600,000
For a grant to the city of Duluth to predesign,
design, construct, furnish, and equip renovations to the Polar Shores exhibit.
This appropriation is not available until the
commissioner has determined that at least $200,000 has been committed from
nonstate sources.
Subd. 14. Itasca County - infrastructure 12,000,000
For a grant to Itasca County for public
infrastructure needed to support a steel plant in Itasca County or an
innovative energy project in Itasca County under Minnesota Statutes, section
216B.1694, that uses clean energy technology as defined in Minnesota Statutes,
section 216B.1693, or both. Grant money
may be used by Itasca County to acquire right-of-way and mitigate loss of wetlands
and runoff of storm water, to predesign, design, construct, and equip roads and
rail lines, and, in cooperation with municipal public utilities, to predesign,
design, construct, and equip natural gas pipelines, electric infrastructure,
water supply systems, and wastewater collection and treatment systems.
Up to $4,000,000 of this appropriation may be spent
before the full financing for either project has been closed.
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APPROPRIATIONS
$
Subd. 15. Lewis and Clark Rural Water System, Inc.
3,282,000
To the Public Facilities Authority for grants
to the city of Luverne, city of Worthington Public Utilities, Lincoln-Pipestone
rural water system, and Rock County rural water system to acquire land,
predesign, design, construct, furnish, and equip one or more water transmission
and storage facilities to accommodate the connection with the Lewis and Clark
Rural Water System, Inc. that will serve southwestern Minnesota.
The grants must be awarded to projects approved
by the Lewis and Clark Joint Powers Board.
This appropriation is available to the extent
that each $1 of state money is matched by at least $1 of local money paid to
the Lewis and Clark Rural Water System, Inc. to reimburse the system for costs
incurred on eligible projects.
Subd. 16. Little Falls - Zoo 400,000
For a grant to the city of Little Falls in
Morrison County to design and construct capital improvements at the Little
Falls Zoo.
Subd. 17. Minneapolis
(a) Lowry Avenue Corridor 5,000,000
For a grant to Hennepin County for Phase II
capital improvements to the Lowry Avenue corridor from Theodore Wirth Parkway
to Girard Avenue in Minneapolis.
(b) Shubert Performing Arts
and Education Center 11,000,000
For a grant to the city of Minneapolis to
construct, furnish, and equip the Shubert Theater and an associated atrium to
create the Minnesota Shubert Performing Arts and Education Center.
The city of Minneapolis may establish and
maintain a performing arts and education center for the purposes of public arts
education and dance, music, and other performances. The city may exercise the powers granted in Minnesota Statutes,
section 471.191, to acquire and better facilities for a performing arts and
education center. Performing arts and
education facilities that have been acquired or bettered in whole or in part
with the proceeds of state bonds must be owned or leased by the city, but may
be leased to or managed by a nonprofit organization to carry out the purposes
of the performing arts and education program established by the city. The lease or management agreement must
comply with the requirements of Minnesota Statutes, section 16A.695.
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APPROPRIATIONS
$
This appropriation is not available until the
commissioner has determined that at least an equal amount has been committed
from nonstate sources.
Subd. 18. Mountain Iron - Energy Park 500,000
For a grant to the city of Mountain Iron to
prepare a site for and construct access roads and utilities for a sustainable
and renewable energy industrial park to be located in the city of Mountain
Iron.
Subd. 19. Redwood-Cottonwood Rivers Control Area
1,600,000
To the Public Facilities Authority for a
grant to the Redwood-Cottonwood Rivers Control Area, a joint powers entity, to
predesign, design, construct, and equip the reservoir reclamation and
enhancement of the 66-acre Lake Redwood Reservoir to increase its depth from
2.8 feet to 15 feet to remove 650,000 cubic yards of sediment, to attain
compliance with both turbidity and fecal coliform impairments for the project
area, and to secure renewable energy capacity of the hydroelectric dam, which
is impeded by lack of water capacity.
The appropriation is not available until the
authority determines that an equal amount has been committed to the project
from nonstate sources. The nonstate
portion will provide low interest loans to remediate or replace 173
noncompliant septic systems that are imminent health threats and provide
technical assistance to reduce phosphorus loading to the Redwood River to
assist total maximum daily load (TMDL) compliance of the low-dissolved oxygen
impairment on the lower Minnesota River.
Subd. 20 Roseville - John Rose Minnesota Oval
500,000
For a grant to the city of Roseville to
predesign, design, construct, furnish, and equip the renovation of the John
Rose Minnesota Oval.
Subd. 21. St. Paul
(a) Asian Pacific Cultural
Center 400,000
For a grant to the city of St. Paul to design
an Asian Pacific Cultural center, subject to Minnesota Statutes, section
16A.695. This appropriation is not
available until the commissioner has determined that at least an equal amount
has been committed from nonstate sources.
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APPROPRIATIONS
$
(b) Ordway Center for the
Performing Arts 7,500,000
For a grant to the city of St. Paul to
design, construct, furnish, and equip the renovation of the Ordway Center for
the Performing Arts. The city of St.
Paul may operate a performing arts center and may enter into a lease or
management agreement for the center, subject to Minnesota Statutes, section
16A.695.
Subd. 22. Southwest Regional Event Center 11,000,000
To the Board of Trustees of the Minnesota
State Colleges and Universities to design, construct, furnish, and equip a
multipurpose regional event center at Southwest Minnesota State University.
This appropriation is not available until the
board determines that at least $5,000,000 has been committed to the project
from private, nongovernmental sources.
Subd. 23. Virginia - Regional Medical Center
Helipad 600,000
For a grant to the city of Virginia to design,
construct, furnish, and equip an access elevator and helipad to be located on
the roof of the Virginia Regional Medical Center.
Subd. 24. Willmar - Rice Memorial Hospital Dental
Clinic 500,000
For a grant to the city of Willmar to
construct a dental clinic at the Rice Memorial Hospital in Willmar. The clinic is to be operated collaboratively
with the University of Minnesota School of Dentistry to provide dental care to
underserved patients and an opportunity for students to practice in a rural
setting.
Sec. 22. HOUSING FINANCE AGENCY
Subdivision
1. To the Housing Finance Agency
for the purposes specified in this section 19,500,000
Subd. 2. Transitional housing 2,000,000
For loans or grants for publicly owned
temporary or transitional housing under Minnesota Statutes, section 462A.201,
subdivision 2. If money appropriated
under this subdivision has not been selected for commitment by the Housing
Finance Agency within 18 months after the effective date of this section, after
written notice to the commissioner of finance, the agency may allocate the
uncommitted money to loans and grants for publicly owned permanent rental
housing under subdivision 3 and Minnesota Statutes, section 462A.202,
subdivision 3a. Minnesota Statutes,
section 16A.642, applies to the amounts transferred from the date of the
original appropriation.
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APPROPRIATIONS
$
Subd. 3. Supportive Housing for Long-term
Homeless 17,500,000
For loans and grants for publicly owned permanent
rental housing under Minnesota Statutes, section 462A.202, subdivision 3a, for
persons who either have been without a permanent residence for at least 12
months or on at least four occasions in the last three years, or who are at
significant risk of lacking a permanent residence for at least 12 months or on
at least four occasions in the last three years. The housing must provide or coordinate with linkages to services
necessary for residents to maintain housing stability and maximize
opportunities for education and employment.
Preference among comparable proposals must be given
to proposals that (1) colocate housing and services accessible to the general
public as well as to the residents, and (2) provide housing affordable to a
range of household income levels.
Sec. 23. MINNESOTA HISTORICAL SOCIETY
Subdivision 1. To the Minnesota Historical Society for
the purposes specified in this section 5,672,000
Subd. 2. Historic sites asset preservation
3,000,000
For capital improvements and betterments at state
historic sites, buildings, landscaping at historic buildings, exhibits,
markers, and monuments, to be spent in accordance with Minnesota Statutes,
section 16B.307. The society shall
determine project priorities as appropriate based on need.
Subd. 3. Historic Fort Snelling Museum 1,100,000
To design the restoration and renovation of the 1904
Cavalry Barracks Building for the historic Fort Snelling Museum.
Subd. 4. County and local preservation grants
1,000,000
To be allocated to county and local jurisdictions as
matching money for historic preservation projects of a capital nature, as
provided in Minnesota Statutes, section 138.93. Grant recipients must be public entities and must match state
funds on at least an equal basis. The
facilities must be publicly owned.
$100,000 is for a grant to the city of Maplewood to
complete restoration of the Bruentrup Farm in Maplewood. This appropriation is not available until
the commissioner of finance has determined that at least an equal amount has
been committed from nonstate sources.
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APPROPRIATIONS
$
Subd. 5. History Center visitor services 572,000
For security upgrades and facility
renovations in the library and for electrical infrastructure upgrades.
Sec. 24. BOND SALE EXPENSES 948,000
To the commissioner of finance for bond sale
expenses under Minnesota Statutes, section 16A.641, subdivision 8.
Sec. 25. BOND
SALE AUTHORIZATION.
Subdivision 1. Bond proceeds fund. To provide the money appropriated in this
act from the bond proceeds fund, the commissioner of finance shall sell and
issue bonds of the state in an amount up to $925,080,000 in the manner, upon
the terms, and with the effect prescribed by Minnesota Statutes, sections
16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4
to 7.
Subd. 2. Maximum effort school
loan fund. To provide the
money appropriated in this act from the maximum effort school loan fund, the
commissioner of finance shall sell and issue bonds of the state in an amount up
to $10,700,000 in the manner, upon the terms, and with the effect prescribed by
Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
The proceeds of the bonds, except accrued interest and any premium
received on the sale of the bonds, must be credited to a bond proceeds account
in the maximum effort school loan fund.
Subd. 3. Transportation fund
bond proceeds account. To
provide the money appropriated in this act from the state transportation fund,
the commissioner of finance shall sell and issue bonds of the state in an amount
up to $71,000,000 in the manner, upon the terms, and with the effect prescribed
by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota
Constitution, article XI, sections 4 to 7.
The proceeds of the bonds, except accrued interest and any premium
received on the sale of the bonds, must be credited to a bond proceeds account
in the state transportation fund.
Sec. 26. CANCELLATION.
The $7,800,000 appropriation
in Laws 2002, chapter 280, section 3, to the Metropolitan Council to design and
construct bus garages, is canceled. The
bond sale authorization in Laws 2002, chapter 280, section 4, is reduced by
$7,800,000.
Sec. 27. Minnesota Statutes 2004, section 16A.11,
subdivision 1, is amended to read:
Subdivision 1. When. The governor shall submit a three-part
budget to the legislature. Parts one
and two, the budget message and detailed operating budget, must be submitted by
the fourth Tuesday in January in each odd-numbered year. However, in a year following the election of
a governor who had not been governor the previous year, parts one and two must
be submitted by the third Tuesday in February.
Part three, the detailed recommendations as to capital expenditure, must
be submitted as follows: agency capital
budget requests by July 1 15 of each odd-numbered year, and
governor's recommendations by January 15 of each even-numbered year. Detailed recommendations as to information
technology expenditure must be submitted as part of the detailed operating
budget. Information technology
recommendations must include projects to be funded during the next biennium and
planning estimates for an additional two bienniums. Information technology recommendations must specify purposes of
the funding such as infrastructure, hardware, software, or training.
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Sec. 28. Minnesota Statutes 2004, section 16A.86,
subdivision 2, is amended to read:
Subd. 2. Budget
request. A political subdivision
that requests an appropriation of state money for a local capital improvement
project is encouraged to submit a preliminary the request to the
commissioner of finance by June July 15 of an odd-numbered year
to ensure its full consideration. The
final request must be submitted by November 1.
The requests must be submitted in the form and with the supporting
documentation required by the commissioner of finance. All requests timely received by the
commissioner must be forwarded to the legislature, along with agency requests,
by the deadline established in section 16A.11, subdivision 1.
Sec. 29. Minnesota Statutes 2004, section 16A.86,
subdivision 4, is amended to read:
Subd. 4. Funding. (a) The state share of a project covered by
this section must be no more than half the total cost of the project, including
predesign, design, construction, furnishings, and equipment, except as provided
in paragraph (b). This subdivision does
not apply to a project proposed by a school district or other school
organization.
(b) The state share may be
more than half the total cost of a project if the project is deemed needed as a
result of a disaster or to prevent a disaster or is located in a political
subdivision with a very low average net tax capacity.
(c) Nothing in this section prevents
the governor from recommending, or the legislature from considering or funding,
projects that do not meet the deadlines deadline in subdivision 2
or the criteria in this subdivision or subdivision 3 when the governor or the
legislature determines that there is a compelling reason for the recommendation
or funding.
Sec. 30. [16B.307]
ASSET PRESERVATION APPROPRIATIONS.
Subdivision 1. Standards. Article XI, section 5, clause (a), of the
Constitution requires that state general obligation bonds be issued to finance
only the acquisition or betterment of public land, buildings, and other public
improvements of a capital nature. Money
appropriated for asset preservation, whether from state bond proceeds or from
other revenue, is subject to the following additional limitations:
(a) An appropriation for
asset preservation may not be used to acquire new land nor to acquire or
construct new buildings, additions to buildings, or major new improvements.
(b) An appropriation for
asset preservation may be used only for a capital expenditure on a capital
asset previously owned by the state, within the meaning of generally accepted
accounting principles as applied to public expenditures. The commissioner of administration will
consult with the commissioner of finance to the extent necessary to ensure this
and will furnish the commissioner of finance a list of projects to be financed
from the account in order of their priority.
The legislature assumes that many projects for preservation and
replacement of portions of existing capital assets will constitute betterments
and capital improvements within the meaning of the Constitution and capital
expenditures under generally accepted accounting principles, and will be
financed more efficiently and economically under this section than by direct
appropriations for specific projects.
(c) Categories of projects
considered likely to be most needed and appropriate for asset preservation
appropriations are the following:
(1) projects to remove life
safety hazards, like building code violations or structural defects. Notwithstanding paragraph (a), a project in
this category may include an addition to an existing building if it is a
required component of the hazard removal project;
(2) projects to eliminate or
contain hazardous substances like asbestos or lead paint;
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(3) major
projects to replace or repair roofs, windows, tuckpointing, mechanical or
electrical systems, utility infrastructure, tunnels, site renovations necessary
to support building use, and structural components necessary to preserve the
exterior and interior of existing buildings; and
(4) projects to renovate
parking structures.
(d) Up to ten percent of an
appropriation subject to this section may be used for design costs for projects
eligible to be funded under this section in anticipation of future asset
preservation appropriations.
Subd. 2. Report. By January 15 of each year, the
commissioner of an agency that has received an appropriation for asset
preservation shall submit to the commissioner of finance, the chairs of the
legislative committees or divisions that currently oversee the appropriations
to the agency, and to the chairs of the senate and house of representatives
Capital Investment Committees, a list of the projects that have been funded
with money under this program during the preceding calendar year, as well as a
list of those priority asset preservation projects for which state bond
proceeds fund appropriations will be sought during that year's legislative
session.
Sec. 31. Minnesota Statutes 2004, section 85.015, is
amended by adding a subdivision to read:
Subd. 25. Great River Ridge
Trail, Wabasha and Olmsted Counties.
(a) The trail shall originate in the city of Plainview in Wabasha
County and extend southwesterly through the city of Elgin in Wabasha County and
the town of Viola in Olmsted County to the Chester Woods Trail in Olmsted
County.
(b) The commissioner of
natural resources shall enter an agreement with the Wabasha County Regional
Rail Authority to maintain and develop the Great River Ridge Trail as a state
trail.
EFFECTIVE DATE. This section is effective the day after the governing body of
the Wabasha County Regional Rail Authority and its chief clerical officer
timely complete their compliance with Minnesota Statutes, section 645.021,
subdivisions 2 and 3.
Sec. 32. Minnesota Statutes 2005 Supplement, section
85.019, subdivision 2, is amended to read:
Subd. 2. Parks
and outdoor recreation areas. (a)
The commissioner shall administer a program to provide grants to units of
government for up to 50 percent of the costs of acquisition and betterment of
public land and improvements needed for parks and other outdoor recreation
areas and facilities, including costs to create veterans memorial gardens and
parks.
(b) For units of government
outside the metropolitan area as defined in section 473.121, subdivision 2, the
local match required for a grant to acquire or better a regional park or
regional outdoor recreation area is $2 of nonstate money for each $3 of state
money.
Sec. 33. [86A.12]
NATURAL RESOURCES CAPITAL IMPROVEMENT PROGRAM.
Subdivision 1. Establishment. A natural resources capital improvement
program is established to prioritize among eligible public projects to be
funded from state bond proceeds appropriated to the commissioner and distinctly
specified for the purposes of the program established in this section and in
accordance with the standards and criteria set forth in this section.
Subd. 2. Purposes. The purpose of the natural resources
capital improvement program is to improve the management and conservation of
the natural resources of the state, including recreational, scientific and
natural areas, and wild game and fish, through the acquisition and betterment
of public lands, buildings, and improvements of a capital nature.
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Subd. 3. Program standards. Article XI, section 5, clause (a), of the
Constitution provides that state general obligation bonds may be issued to
finance the acquisition or betterment, including preservation, of public land,
buildings, and improvements of a capital nature and to provide money to be
appropriated or loaned to any agency or political subdivision of the state for
those purposes. Article XI, section 5,
clause (f), of the Constitution further provides that state general obligation
bonds may be issued to finance the promotion of forestation and prevention and
abatement of forest fires, including the compulsory clearing and improving of
public and private wild lands. In
interpreting these provisions and applying them to the purpose of the program
established in this section, the following standards are adopted for
determining the priority among eligible natural resources projects to be funded
under the program:
(a) A project will be an
expenditure eligible under this program only when it is a capital expenditure
on a capital asset owned or to be owned by the state or a political subdivision
of the state within the meaning of accepted accounting principles as applied to
public expenditures. The legislature
assumes that some provisions for the management and conservation of the natural
resources of the state constituting acquisition or betterment of land,
buildings, or capital improvements within the meaning of the Constitution will
be sensitive to timing and circumstances and require discretion of the
commissioner based on currently available facts and circumstances, particularly
projects related to the mitigation of natural disasters and the acquisition of
lands as they become available, and so these projects will be financed more
efficiently and economically under the program than by separate appropriations
for each project.
(b) The commissioner will
review potential eligible projects, will make initial allocations among types
of eligible projects within each category enumerated in the act making an
appropriation for the program, will determine priorities within each category,
and will allocate money as specified in the appropriation act and in priority
order within each category until the available appropriation for the category
has been committed.
Subd. 4. Criteria for priorities. (a) The following criteria must be
considered:
(1) expansion of the natural
resources of the state for the enjoyment and use of the public;
(2) urgency in providing for
the conservation of the natural resources of the state, including protection of
threatened and endangered species and waters;
(3) necessity in ensuring
the safety of the public; and
(4) additional criteria for
priorities otherwise specified in state law, statute, rule, or regulation
applicable to a category listed in the act making an appropriation for the
program.
(b) Criteria can be stated
only in general terms, since it is a purpose of the program to improve the
allocation of limited amounts of available funds by enlisting the knowledge and
experience of the Department of Natural Resources in determining relative needs
as they develop.
(c) The criteria in
paragraph (a) are not listed in a rank order of priority.
(d) Economy is also to be
determined and may even reinforce a decision based on other criteria, if the
project would forestall a larger future capital expenditure or would reduce
operating expense.
(e) Absolute cost must also
be considered. It may be too high to
warrant funding except by an additional appropriation, or so high as to warrant
a recommendation to abandon the project.
It may be so low as to permit payment out of the department's operating
budget.
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Subd. 5. Report. By January 15 of each year, the
commissioner of natural resources shall submit to the commissioner of finance,
the chairs of the legislative committees or divisions that currently oversee
the appropriations to the Department of Natural Resources, and to the chairs of
the senate and the house of representatives Capital Investment Committees, a
list of the projects that have been funded with money under this program during
the preceding calendar year, as well as a list of those priority projects for
which state bond proceeds fund appropriations will be sought under this program
during that year's legislative session.
Sec. 34. [116J.435]
BIOSCIENCE BUSINESS DEVELOPMENT PUBLIC INFRASTRUCTURE GRANT PROGRAM.
Subdivision 1. Creation of account. A bioscience business development public
infrastructure account is created in the bond proceeds fund. Money in the account may only be used for
capital costs of public infrastructure for eligible bioscience business
development projects.
Subd. 2. Definitions. For purposes of this section:
(1) "local governmental
unit" means a county, city, town, special district, or other political
subdivision or public corporation;
(2) "governing
body" means the council, board of commissioners, board of trustees, or
other body charged with governing a local governmental unit;
(3) "public
infrastructure" means publicly owned physical infrastructure in this
state, including, but not limited to, wastewater collection and treatment
systems, drinking water systems, storm sewers, utility extensions,
telecommunications infrastructure, streets, roads, bridges, parking ramps,
facilities that support basic science and clinical research, and research
infrastructure; and
(4) "eligible
project" means a bioscience business development capital improvement
project in this state, including: manufacturing; technology; warehousing and
distribution; research and development; bioscience business incubator;
agricultural bioprocessing; or industrial, office, or research park development
that would be used by a bioscience-based business.
Subd. 3. Grant program
established. (a) The
commissioner shall make competitive grants to local governmental units to
acquire and prepare land on which public infrastructure required to support an
eligible project will be located, including demolition of structures and
remediation of any hazardous conditions on the land, or to predesign, design,
acquire, construct, furnish, and equip public infrastructure required to
support an eligible project. The local
governmental unit receiving a grant must provide for the remainder of the
public infrastructure costs.
(b) The amount of a grant
may not exceed the lesser of the cost of the public infrastructure or 50
percent of the sum of the cost of the public infrastructure plus the cost of
the completed eligible project.
(c) The purpose of the
program is to keep or enhance jobs in the area, increase the tax base, or to
expand or create new economic development through the growth of new bioscience
businesses and organizations.
Subd. 4. Application. (a) The commissioner must develop forms
and procedures for soliciting and reviewing applications for grants under this
section. At a minimum, a local
governmental unit must include the following information in its application:
(1) a resolution of its
governing body certifying that the money required to be supplied by the local
governmental unit to complete the public infrastructure is available and
committed;
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(2) a detailed
estimate, along with necessary supporting evidence, of the total development
costs for the public infrastructure and eligible project;
(3) an assessment of the
potential or likely use of the site for bioscience activities after completion
of the public infrastructure and eligible project;
(4) a timeline indicating
the major milestones of the public infrastructure and eligible project and
their anticipated completion dates;
(5) a commitment from the
governing body to repay the grant if the milestones are not realized by the
completion date identified in clause (4); and
(6) any additional
information or material the commissioner prescribes.
(b) The determination of
whether to make a grant under subdivision 3 is within the discretion of the
commissioner, subject to this section.
The commissioner's decisions and application of the priorities are not
subject to judicial review, except for abuse of discretion.
Subd. 5. Priorities. (a) If applications for grants exceed the
available appropriations, grants must be made for public infrastructure that,
in the commissioner's judgment, provides the highest return in public benefits
for the public costs incurred. "Public benefits" include job
creation, environmental benefits to the state and region, efficient use of public
transportation, efficient use of existing infrastructure, provision of
affordable housing, multiuse development that constitutes community rebuilding
rather than single-use development, crime reduction, blight reduction,
community stabilization, and property tax base maintenance or improvement. In making this judgment, the commissioner
shall give priority to eligible projects with one or more of the following
characteristics:
(1) the potential of the
local government unit to attract viable bioscience businesses;
(2) proximity to public
transit if located in a metropolitan county, as defined in section 473.121,
subdivision 4;
(3) multijurisdictional
eligible projects that take into account the need for affordable housing,
transportation, and environmental impact;
(4) the eligible project is
not relocating substantially the same operation from another location in the
state, unless the commissioner determines the eligible project cannot be
reasonably accommodated within the local governmental unit in which the
business is currently located, or the business would otherwise relocate to
another state or country; and
(5) the number of jobs that
will be created.
(b) The factors in paragraph
(a) are not listed in a rank order of priority; rather, the commissioner may
weigh each factor, depending upon the facts and circumstances, as the
commissioner considers appropriate.
Subd. 6. Cancellation of grant. If a grant is awarded to a local
governmental unit and funds are not encumbered for the grant within four years
after the award date, the grant must be canceled.
Subd. 7. Repayment of grant. If an eligible project supported by
public infrastructure funded with a grant awarded under this section is not
occupied by a bioscience business in accordance with the grant application
under subdivision 4 within five years after the date of the last grant payment,
the grant recipient must repay the amount of the grant received. The commissioner must deposit all money
received under this subdivision into the state treasury and credit it to the
debt service account in the state bond fund.
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Sec. 35. Minnesota Statutes 2004, section 136F.98,
subdivision 1, is amended to read:
Subdivision 1. Issuance
of bonds. The Board of Trustees of
the Minnesota State Colleges and Universities or a successor may issue revenue
bonds under sections 136F.90 to 136F.97 whose aggregate principal amount at any
time may not exceed $100,000,000, $150,000,000 and payable from
the revenue appropriated to the fund established by section 136F.94, and use
the proceeds together with other public or private money that may otherwise
become available to acquire land, and to acquire, construct, complete, remodel,
and equip structures or portions thereof to be used for dormitory, residence
hall, student union, food service, and related parking purposes at,
or for any other similar revenue-producing building or buildings of such type
and character as the board finds desirable for the good and benefit of the
state universities. Before issuing the
bonds or any part of them, the board shall consult with and obtain the advisory
recommendations of the chairs of the house Ways and Means Committee and the
senate Finance Committee about the facilities to be financed by the bonds.
Sec. 36. Minnesota Statutes 2004, section 222.49, is
amended to read:
222.49 RAIL SERVICE IMPROVEMENT ACCOUNT; APPROPRIATION.
The rail service improvement
account is created in the special revenue fund in the state treasury. The commissioner shall deposit in this
account all money appropriated to or received by the department for the purpose
of rail service improvement, including excluding bond proceeds as
authorized by article XI, section 5, clause (i) of the Minnesota
Constitution. All money so deposited is
appropriated to the department for expenditure for rail service improvement in
accordance with applicable state and federal law. This appropriation shall not lapse but shall be available until
the purpose for which it was appropriated has been accomplished. No money appropriated to the department for
the purposes of administering the rail service improvement program shall be
deposited in the rail service improvement account nor shall such administrative
costs be paid from the account.
Sec. 37. [241.0222]
CONTRACTS WITH NEWLY CONSTRUCTED JAIL FACILITIES THAT PROVIDE ACCESS TO
CHEMICAL DEPENDENCY TREATMENT PROGRAMS.
Notwithstanding any law to
the contrary, the commissioner is expressly authorized to enter into contracts,
up to five years in duration, with a county or group of counties to house
inmates committed to the custody of the commissioner in newly constructed
county or regional jail facilities that provide inmates access to chemical
dependency treatment programs licensed by the Department of Human
Services. A contract entered into under
this section may contain an option to renew the contract for a term of up to
five years.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 38. Minnesota Statutes 2005 Supplement, section
245.036, is amended to read:
245.036 LEASES FOR STATE-OPERATED, COMMUNITY-BASED PROGRAMS.
(a) Notwithstanding section
16B.24, subdivision 6, paragraph (a), or any other law to the contrary, the
commissioner of administration may lease land or other premises to provide
state-operated, community-based programs authorized by sections 246.014,
paragraph (a), 252.50, 253.018, and 253.28 for a term of 20 years or less,
with a ten-year or less option to renew, subject to cancellation upon 30 days'
notice by the state for any reason, except rental of other land or premises for
the same use.
(b) The commissioner of
administration may also lease land or premises from political subdivisions of
the state to provide state-operated, community-based programs authorized by
sections 246.014, paragraph (a), 252.50, 253.018, and 253.28 for a term
of 20 years or less, with a ten-year or less option to renew. A lease under this paragraph may be canceled
only due to the lack of a legislative appropriation for the program.
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Sec. 39. Minnesota Statutes 2004, section 446A.12,
subdivision 1, is amended to read:
Subdivision 1. Bonding
authority. The authority may issue
negotiable bonds in a principal amount that the authority determines necessary
to provide sufficient funds for achieving its purposes, including the making of
loans and purchase of securities, the payment of interest on bonds of the
authority, the establishment of reserves to secure its bonds, the payment of
fees to a third party providing credit enhancement, and the payment of all
other expenditures of the authority incident to and necessary or convenient to
carry out its corporate purposes and powers, but not including the making of
grants. Bonds of the authority may be
issued as bonds or notes or in any other form authorized by law. The principal amount of bonds issued and
outstanding under this section at any time may not exceed $1,250,000,000
$1,500,000,000, excluding bonds for which refunding bonds or crossover
refunding bonds have been issued.
Sec. 40. Laws 2000, chapter 492, article 1, section
7, subdivision 21, as amended by Laws 2005, chapter 20, article 1, section 42,
is amended to read:
Subd. 21. Harbor of Refuge at Two Harbors 1,000,000
To develop the harbor of refuge and marina at
Two Harbors, including public access improvements, marina slips, parking
facilities, utilities, a fuel dock, and an administration building.
This appropriation is not available until the
commissioner has determined that at least $500,000 has been committed from
federal sources. Notwithstanding
Minnesota Statutes, section 16A.642, this appropriation and its corresponding
bond authorization do not cancel until June 30, 2006 December 31,
2009.
Sec. 41. Laws 2002,
chapter 393, section 19, subdivision 2, is amended to read:
Subd. 2. Northwest Busway 20,000,000
To design and construct a busway in the
northwest metropolitan area between downtown Minneapolis and Rogers. This appropriation is contingent on
$12,000,000 from Hennepin county and $5,000,000 from the metropolitan council
for the project. Total funding from all
sources may be used for roadway design, reconstruction, acquisition of land and
right-of-way, and to design, construct, furnish, and equip transit stations and
park and rides. Design-build under new
Minnesota Statutes, sections 383B.158 to 383B.1586, may be used for
implementing this project. Notwithstanding
Minnesota Statutes, section 16A.642, this appropriation and its corresponding
bond authorization do not cancel until December 31, 2010.
Sec. 42. Laws 2005,
chapter 20, article 1, section 5, subdivision 2, is amended to read:
Subd. 2. Independent School District No. 38 - Red
Lake 18,000,000
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This appropriation
is from the maximum effort school loan fund for a capital loan to Independent
School District No. 38, Red Lake, as provided in Minnesota Statutes, sections
126C.60 to 126C.72, to design, construct, renovate, furnish, and equip a new
middle school and the existing high school.
The commissioner and Independent School District No. 38, Red Lake, shall
report to the legislature by January 10, 2006, on the progress of the capital
loan.
The unexpended balance from the appropriation
in Laws 2002, chapter 393, section 5, subdivision 2, to design, construct,
renovate, furnish, equip, and for health and safety capital improvements to
school facilities may be added to this appropriation.
Sec. 43. Laws 2005,
chapter 20, article 1, section 7, subdivision 14, is amended to read:
Subd. 14. State Trail Development 7,910,000
To acquire land for and to develop and rehabilitate
state trails as specified in Minnesota Statutes, section 85.015.
$1,500,000 is for the Blazing Star Trail.
$435,000 is for a segment of the Blufflands Trail,
from Preston to Forestville.
$200,000 is for a segment of the Blufflands Trail,
from Chester Woods County Park to the city limits of Rochester in Olmsted
County, primarily for nonmotorized riding and hiking.
$400,000 is for the Douglas Trail.
$400,000 is for the Gateway Trail.
$725,000 is for the Gitchi Gami Trail.
$500,000 is for the Glacial Lakes Trail.
$200,000 is for the Goodhue Pioneer Trail.
$300,000 is for the Heartland Trail.
$300,000 is for the Mill Towns Trail.
$100,000 is for the Minnesota River Trail.
$2,400,000 is for the Paul Bunyan Trail: $1,500,000 $320,000 is for an
extension across Excelsior Road in the city of Baxter to connect with the
Oberstar Tunnel and may be used to match federal money for the trail;
$900,000 is to acquire right-of-way in the city of Bemidji and to rehabilitate
the trail.
$450,000 is for the Shooting Star Trail.
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Sec. 44. Laws 2005, chapter 20, article 1, section
10, subdivision 2, is amended to read:
Subd. 2. RIM and CREP Conservation Easements 23,000,000
This appropriation is to acquire conservation
easements from landowners on marginal lands to protect soil and water quality
and to support fish and wildlife habitat as provided in Minnesota Statutes, section
103F.515 sections 103F.501 to 103F.535.
$3,000,000 is to implement the program.
Sec. 45. Laws 2005,
chapter 20, article 1, section 19, subdivision 6, is amended to read:
Subd. 6. Metropolitan Regional Parks Capital Improvements 14,664,000
This appropriation must be used to pay the
cost of improvements and betterments of a capital nature and acquisition by the
council and local government units of regional recreational open-space lands in
accordance with the council's policy plan as provided in Minnesota Statutes,
section 473.147. Priority should be
given to park rehabilitation and land acquisition projects.
For purposes of Minnesota Statutes, section
473.351, Columbia Parkway, Ridgeway Parkway, and Stinson Boulevard are
considered to be part of the metropolitan regional recreation open space
system.
$100,000 is for a grant to Ramsey and
Washington Counties, or either of them as jointly agreed, to prepare
engineering design documents for the development of a trail adjacent to marked
Trunk Highway 120 from its intersection with Joy Road to its intersection with
20th Street in the city of North St. Paul, adjacent to marked Trunk Highway
96 from its intersection with marked Trunk Highway 61 to its intersection with
marked Trunk Highway 244, and adjacent to marked Trunk Highway 244 from its
intersection with marked Trunk Highway 96 to and including its intersection
with Washington County Road 12 to be known as the Silver Lake Trail. The design must be consistent with the
recommendations of the Lake Links Trail Network Master Plan prepared for Ramsey
and Washington Counties.
$388,000 is for a grant to the city of St.
Paul for park and trail improvements in the Desnoyer Park area, above the Meeker
Island lock historic site.
$4,676,000 is for a grant to the city of St.
Paul to design and construct river's edge improvements at Raspberry Island and
Upper Landing and develop a public park on Raspberry Island. Of this amount, $676,000 $56,000 is
the local match for an Upper Landing federal TEA-21 grant.
Journal
of the House - 111th Day - Saturday, May 20, 2006 - Top of Page 8526
$2,500,000 is for a
grant to the city of South St. Paul for the closure, capping, and remediation
of approximately 80 acres of the Port Crosby construction and demolition debris
landfill in South St. Paul, as the fourth phase of converting the land into
parkland, and to restore approximately 80 acres of riverfront land along the
Mississippi River.
Sec. 46. Laws 2005,
chapter 20, article 1, section 20, subdivision 2, is amended to read:
Subd. 2. State-Operated Services Forensics Programs
3,259,000
To design new facilities to be constructed on
the campus of the St. Peter Moose Lake Regional Treatment Center
for individuals committed as sexual psychopathic personalities, sexually
dangerous persons, mentally ill, or mentally ill and dangerous.
Sec. 47. Laws 2005,
chapter 20, article 1, section 20, subdivision 3, is amended to read:
Subd. 3. Systemwide Redevelopment, Reuse, or
Demolition 17,600,000
To demolish or improve surplus,
nonfunctional, or deteriorated facilities and infrastructure at Department of
Human Services campuses statewide.
(a) Up to $8,600,000 may be used to
predesign, design, construct, furnish, and equip renovation of existing space
or construction of new space for skilled nursing home capacity for forensic
treatment programs operated by state-operated services on the campus of St.
Peter Regional Treatment Center.
(b) $4,000,000 may be used to prepare and
develop a site, including demolition of buildings and infrastructure, to
implement the redevelopment and reuse of the Ah-Gwah-Ching Regional Treatment
Center campus. If the property is sold
or transferred to a local unit of government, the unspent portion of this
appropriation may be granted to the local unit of government that acquires the
campus for the purposes stated in this subdivision.
Up to $400,000 may be used for a grant to the
city of Walker to connect the water reservoir to the city.
(c) $1,000,000 may be used to renovate one or
more buildings for chemical dependency treatment specializing in
methamphetamine addiction, and demolish buildings, on the Willmar Regional
Treatment Center campus. If the
property is sold or transferred to a local unit of government, the unspent
portion of this appropriation may be granted to the local unit of government
that acquires the campus for the purposes stated in this subdivision.
Journal of the House - 111th
Day - Saturday, May 20, 2006 - Top of Page 8527
(d) Up to
$2,210,000 may be spent by the commissioner of finance to retire municipal
bonds issued by the city of Fergus Falls and to retire interfund loans incurred
by the city of Fergus Falls in connection with the waste incinerator and steam
heating facility at the Fergus Falls Regional Treatment Center. $447,610 of unexpended nonsalary money
from state-operated services may be transferred as a grant to the city of
Fergus Falls to retire interfund loans incurred by the city of Fergus Falls in
connection with the waste incinerator and steam heating facility at the Fergus
Falls Regional Treatment Center. This
money is only available upon satisfactory completion of implementation of the
final master plan agreement, as approved by the Department of Administration,
the Department of Human Services, and the city of Fergus Falls.
(e) Up to $400,000 may be used for a grant to the city of Fergus Falls
to demolish the city's waste-to-energy incineration plant located on the
grounds of the Fergus Falls Regional Treatment Center.
(f) The provisions, terms, and conditions of any grant made by the
director of the Office of Environmental Assistance under Minnesota Statutes,
chapter 115A, to the city of Fergus Falls for the waste incinerator steam
heating facility that supports the Fergus Falls Regional Treatment Center and
that may come into effect as a result of the incinerator and facility being
closed, are hereby waived.
Sec. 48. Laws 2005,
chapter 20, article 1, section 20, subdivision 4, is amended to read:
Subd. 4. Willmar
Regional Treatment Center Retrofit 900,000
To demolish buildings, predesign, design, renovate, construct, furnish,
and equip buildings at the Willmar Regional Treatment Center for reuse, and
renovate campus support buildings and campus infrastructure, including
tunnels. These projects are to develop
the Willmar Regional Treatment Center campus for health care, mental health
care, chemical dependency treatment, housing, and other public purposes and
must be implemented consistent with the recommendations in the final Willmar
Regional Treatment Center Master Plan and Reuse Study prepared and approved
under Laws 2003, First Special Session chapter 14, article 6, section 64,
subdivision 2, unless expressly provided otherwise. If the Willmar Regional Treatment Center property is sold or
transferred to a local unit of government, the unspent portion of this
appropriation may be granted to the local unit of government that acquires the
campus for the purposes stated in this subdivision to design,
construct, furnish, and equip a maintenance facility.
Sec. 49. Laws 2005,
chapter 20, article 1, section 23, subdivision 3, is amended to read:
Subd. 3. Wastewater Infrastructure Funding Program
29,900,000
Journal of the House - 111th
Day - Saturday, May 20, 2006 - Top of Page 8528
(a) To the Public
Facilities Authority for the purposes specified in this subdivision. $29,300,000 of this appropriation is for
grants and loans to eligible municipalities under the wastewater infrastructure
program established in Minnesota Statutes, section 446A.072.
To the greatest practical extent, the authority must use the
appropriation for projects on the 2005 project priority list in priority order
to qualified applicants that submit plans and specifications to the Pollution
Control Agency or receive a funding commitment from USDA Rural Economic and
Community Development before December 1, 2006.
$600,000 of this appropriation is to implement the wastewater
infrastructure program.
(b) The grants listed in this paragraph are not subject to the 2005
project priority list nor to the limitations on grant amounts set forth in
Minnesota Statutes, section 446A.072, subdivision 5a.
$1,500,000 is for a grant to the city of Aurora to reconstruct its
wastewater treatment plant, damaged in an explosion May 5, 2004.
$1,700,000 is for a grant to the Central Iron Range Sanitary Sewer
District Authority to predesign and design the necessary facilities to collect,
treat, and dispose of sewage in the district, including a pump-storage facility
and a wind-energy facility.
Up to $5,000,000 may be used as grants to the cities of Dunnell,
Dumont, Henriette, Lewisville, McGrath, and Ostrander to undertake corrective
action on systems built since 2001 with federal money from USDA Rural Economic
and Community Development. A grant must
not exceed the amount of federal money used in the construction of systems that
incorporated sand filter treatment, fixed activated sludge treatment, or
mechanical package plant treatment technologies.
$4,950,000 is for a grant to the city of Duluth for design and
construction of sanitary sewer overflow storage facilities at selected
locations in the city of Duluth. This
appropriation is available when matched by $1 of money secured or provided by
the city of Duluth for each $1 of state money.
$1,700,000 is for a grant to the city of Eagle Bend to predesign,
design, construct, furnish, and equip a wastewater collection and treatment
system.
$1,500,000 is for a grant to the city of Two Harbors to retire loans,
whether interfund or otherwise, incurred to acquire land for, design,
construct, furnish, and equip a 2,500,000 gallon equalization basin and a
chlorine-contact tank of at least 100,000
Journal of the House - 111th
Day - Saturday, May 20, 2006 - Top of Page 8529
gallon capacity,
adjacent to the city's wastewater treatment plant. The equalization basin is required under the city's National
Pollution Discharge Elimination System permit.
This appropriation is not available until the commissioner of finance
determines that $325,000 has been committed to the project from nonstate
sources.
$1,550,000 for a grant to the city of Bayport for the Middle St. Croix
River Watershed Management Organization to complete the sewer system extending
from Minnesota Department of Natural Resources pond 82-310P (the prison pond)
in Bayport through the Stillwater prison grounds to the St. Croix River.
$2,000,000 is to the commissioner of employment and economic
development for a grant to the city of New Brighton to relocate a sanitary
sewer interceptor for sanitary sewer and storm water improvements in
the Northwest Quadrant to allow for redevelopment of that area.
Sec. 50. Laws 2005,
chapter 20, article 1, section 23, subdivision 12, as amended by Laws 2006,
chapter 171, section 2, is amended to read:
Subd. 12. Bioscience
Development 18,500,000
For grants to political subdivisions to predesign, design, acquire,
construct, furnish, and equip publicly owned infrastructure required to support
bioscience development in this state.
$2,500,000 is for a grant to the city of Worthington.
$14,000,000 cumulatively is for grants to the counties of Ramsey and
Anoka for public improvements to the portion of County Road J located within
each county. This amount may be used to
repay loans the proceeds of which were used for the public improvement. The grants to the individual counties shall
be in amounts proportionate to the individual counties' costs associated with
the public improvements.
$2,000,000 is for bioscience business development
public infrastructure grants under new Minnesota Statutes, section 116J.435.
Sec. 51. Laws 2005,
chapter 20, article 1, section 27, is amended to read:
Sec. 27. BOND SALE SCHEDULE
The commissioner of finance shall schedule the sale
of state general obligation bonds so that, during the biennium ending June 30,
2007, no more than $780,536,000 $763,706,000 will need to be
transferred from the general fund to the state bond fund to pay principal and
interest due and to become due on outstanding state
Journal
of the House - 111th Day - Saturday, May 20, 2006 - Top of Page 8530
general obligation
bonds. During the biennium, before each
sale of state general obligation bonds, the commissioner of finance shall
calculate the amount of debt service payments needed on bonds previously issued
and shall estimate the amount of debt service payments that will be needed on
the bonds scheduled to be sold. The
commissioner shall adjust the amount of bonds scheduled to be sold so as to
remain within the limit set by this section.
The amount needed to make the debt service payments is appropriated from
the general fund as provided in Minnesota Statutes, section 16A.641.
Sec. 52.
Laws 2005, chapter 152, article 1, section 39, subdivision 1, is amended
to read:
Subdivision 1. Issuance;
purpose. Notwithstanding any
provision of Minnesota Statutes, chapter 298, to the contrary, the commissioner
of Iron Range resources and rehabilitation may shall issue
revenue bonds in a principal amount of $15,000,000, plus an amount
sufficient to pay costs of issuance, in one or more series, and thereafter
may issue bonds to refund those bonds.
The proceeds of the bonds must be used to pay the costs of issuance
and to make grants to school districts located in the taconite tax relief
area defined in Minnesota Statutes, section 273.134, or the taconite assistance
area defined in Minnesota Statutes, section 273.1341, to be used by the school
districts to pay for health, safety, and maintenance improvements but only
if the school district has levied the maximum amount allowable under law for
those purposes.
Sec. 53. OUTDOOR
LIGHTING PURCHASE.
All purchasing of outdoor
lighting fixtures using funds appropriated under this act must give
consideration to maximizing energy conservation and savings, reducing glare,
minimizing light pollution, and preserving the natural night environment.
Sec. 54. FERGUS
FALLS INCINERATOR; CONVEYANCE OF EQUIPMENT.
Notwithstanding any law,
administrative rule, commissioner's order, or agreement to the contrary, the
city of Fergus Falls may convey to the city of Perham, for nominal
consideration, all or part of the air pollution equipment, including the
building and related equipment, that is currently located at the Fergus Falls
incinerator. The conveyance shall be in
a form approved by the attorney general and must be used for public
purposes. The city of Perham is responsible
for the costs of dismantling, transporting, and reassembling the equipment in
Perham, as part of the expansion of the Perham resource recovery facility.
Sec. 55. EFFECTIVE
DATE.
Except as otherwise
provided, this act is effective the day following final enactment."
Delete the title and insert:
"A bill for an act
relating to capital improvements; authorizing spending to acquire and better
public land and buildings and other improvements of a capital nature with
certain conditions; establishing new programs and modifying existing programs;
authorizing the sale of state bonds; appropriating money; amending Minnesota
Statutes 2004, sections 16A.11, subdivision 1; 16A.86, subdivisions 2, 4;
85.015, by adding a subdivision; 136F.98, subdivision 1; 222.49; 446A.12,
subdivision 1; Minnesota Statutes 2005 Supplement, sections 85.019, subdivision
2; 245.036; Laws 2000, chapter 492, article 1, section 7, subdivision 21, as
amended; Laws 2002, chapter 393, section 19, subdivision 2; Laws 2005, chapter 20,
article 1, sections 5, subdivision 2; 7, subdivision 14; 10, subdivision 2; 19,
subdivision 6; 20, subdivisions 2, 3, 4; 23, subdivisions 3, 12, as amended;
27; Laws 2005, chapter 152, article 1, section 39, subdivision 1; proposing
coding for new law in Minnesota Statutes, chapters 16B; 86A; 116J; 241."
Journal
of the House - 111th Day - Saturday, May 20, 2006 - Top of Page 8531
We request the
adoption of this report and repassage of the bill.
House Conferees: Dan Dorman, Laura Brod, Denny McNamara and Bud
Nornes.
Senate Conferees: Keith Langseth, Sandra L. Pappas, Wesley J.
Skoglund, James P. Metzen and Paul E. Koering.
Dorman moved that the report of the Conference Committee on
H. F. No. 2959 be adopted and that the bill be repassed as amended
by the Conference Committee. The motion
prevailed.
H. F. No. 2959, A bill for an act relating to capital
improvements; authorizing spending to acquire and better public land and
buildings and other public improvements of a capital nature with certain
conditions; establishing new programs and modifying existing programs;
authorizing sale of state bonds; appropriating money; amending Minnesota
Statutes 2004, sections 16A.11, subdivision 1; 16A.86, subdivisions 2, 4;
85.013, by adding a subdivision; 123A.44; 123A.441; 123A.442; 123A.443;
136F.98, subdivision 1; 446A.12, subdivision 1; Minnesota Statutes 2005
Supplement, sections 116.182, subdivision 2; 116J.575, subdivision 1; Laws
2000, chapter 492, article 1, section 7, subdivision 21, as amended; Laws 2002,
chapter 393, section 19, subdivision 2; Laws 2005, chapter 20, article 1,
sections 7, subdivisions 14, 21; 19, subdivision 6; 20, subdivisions 2, 3; 23,
subdivisions 3, 12; 27; proposing coding for new law in Minnesota Statutes,
chapters 16B; 85; 116J; 446A.
The bill was read for the third time, as amended by Conference,
and placed upon its repassage.
The question was taken on the repassage of the bill and the
roll was called. There were 111 yeas
and 21 nays as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hamilton
Hansen
Haws
Heidgerken
Hilstrom
Hilty
Hornstein
Hortman
Hosch
Howes
Johnson, R.
Juhnke
Kahn
Kelliher
Knoblach
Koenen
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Nornes
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Samuelson
Scalze
Seifert
Sertich
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
Journal of the House - 111th
Day - Saturday, May 20, 2006 - Top of Page 8532
Those who voted in the negative
were:
Anderson, B.
Buesgens
DeLaForest
Emmer
Hackbarth
Hausman
Hoppe
Huntley
Jaros
Johnson, J.
Johnson, S.
Klinzing
Kohls
Krinkie
Mahoney
Mariani
Newman
Olson
Peppin
Sailer
Vandeveer
The bill was repassed, as amended by Conference, and its title
agreed to.
The Speaker called Paulsen to the Chair.
CONFERENCE
COMMITTEE REPORT ON H. F. NO. 3451
A bill for an act relating to governmental operations;
regulating certain historic properties; providing standards for dedication of
land to the public in a proposed development; authorizing a dedication fee on
certain new housing units; authorizing the conveyance of certain surplus state
lands; requiring a study and report; removing a route from the trunk highway
system; amending Minnesota Statutes 2004, section 462.358, subdivision 2b;
proposing coding for new law in Minnesota Statutes, chapter 15; repealing
Minnesota Statutes 2004, section 161.115, subdivisions 173, 225.
May
20, 2006
The Honorable Steve Sviggum
Speaker of the House of
Representatives
The Honorable James P.
Metzen
President of the Senate
We, the undersigned
conferees for H. F. No. 3451 report that we have agreed upon the items in
dispute and recommend as follows:
That the House concur in the
Senate amendments.
We
request the adoption of this report and repassage of the bill.
House Conferees: Bruce Anderson, Frank Hornstein and Mike
Charron.
Senate Conferees: Betsy Wergin, Linda Higgins and Gary Kubly.
Anderson, B., moved that the report of the Conference Committee
on H. F. No. 3451 be adopted and that the bill be repassed as
amended by the Conference Committee.
The motion prevailed.
Journal
of the House - 111th Day - Saturday, May 20, 2006 - Top of Page 8533
H. F. No. 3451, A bill for an
act relating to governmental operations; regulating certain historic
properties; providing standards for dedication of land to the public in a
proposed development; authorizing a dedication fee on certain new housing
units; authorizing the conveyance of certain surplus state lands; requiring a
study and report; removing a route from the trunk highway system; amending
Minnesota Statutes 2004, section 462.358, subdivision 2b; proposing coding for
new law in Minnesota Statutes, chapter 15; repealing Minnesota Statutes 2004,
section 161.115, subdivisions 173, 225.
The bill was read for the third time, as amended by Conference,
and placed upon its repassage.
The question was taken on the repassage of the bill and the
roll was called. There were 132 yeas
and 1 nay as follows:
Those who voted in the affirmative were:
Abeler
Abrams
Anderson, B.
Atkins
Beard
Bernardy
Blaine
Bradley
Brod
Buesgens
Carlson
Charron
Clark
Cornish
Cox
Cybart
Davids
Davnie
Dean
DeLaForest
Demmer
Dempsey
Dill
Dittrich
Dorman
Dorn
Eastlund
Eken
Ellison
Emmer
Entenza
Erhardt
Erickson
Finstad
Fritz
Garofalo
Gazelka
Goodwin
Greiling
Gunther
Hackbarth
Hamilton
Hansen
Hausman
Haws
Heidgerken
Hilstrom
Hilty
Holberg
Hoppe
Hornstein
Hortman
Hosch
Howes
Huntley
Jaros
Johnson, J.
Johnson, R.
Johnson, S.
Juhnke
Kahn
Kelliher
Knoblach
Koenen
Kohls
Krinkie
Lanning
Larson
Latz
Lenczewski
Lesch
Liebling
Lieder
Lillie
Loeffler
Magnus
Mahoney
Mariani
Marquart
McNamara
Meslow
Moe
Mullery
Murphy
Nelson, M.
Nelson, P.
Newman
Nornes
Olson
Otremba
Ozment
Paulsen
Paymar
Pelowski
Penas
Peppin
Peterson, A.
Peterson, N.
Peterson, S.
Poppe
Powell
Rukavina
Ruth
Ruud
Sailer
Samuelson
Scalze
Seifert
Sertich
Severson
Sieben
Simon
Simpson
Slawik
Smith
Soderstrom
Solberg
Sykora
Thao
Thissen
Tingelstad
Urdahl
Vandeveer
Wagenius
Walker
Wardlow
Welti
Westerberg
Westrom
Wilkin
Zellers
Spk. Sviggum
Those who voted in the negative were:
Klinzing
The bill was repassed, as amended by Conference, and its title
agreed to.
Speaker pro tempore Paulsen called Abrams to the Chair.
There being no objection, the order of business reverted to
Messages from the Senate.
MESSAGES FROM THE SENATE
The following messages were received from the Senate:
Journal
of the House - 111th Day - Saturday, May 20, 2006 - Top of Page 8534
Mr. Speaker:
I hereby announce the passage by the Senate of the following
House File, herewith returned:
H. F. No. 3664, A bill for an act relating to the military;
expanding eligibility for the salary differential program for state employees
ordered into active military service; permitting military personnel stationed
outside Minnesota to use state parks without fee while home on leave; providing
leave without pay to family members of soldiers wounded or killed while in
active service, and for family members of deployed soldiers to attend send-off
or homecoming ceremonies; establishing a policy statement supportive of
military service; providing certain job protections for persons ordered into
active military service; adding cross-references; directing institutions of
higher education to provide credit for military training and experience for
veterans; clarifying law governing renewal of occupational licenses and
professional certifications during and following active military service;
authorizing National Guard security guard employees to carry certain weapons;
authorizing the placement of plaques honoring certain veterans in the Court of
Honor; amending Minnesota Statutes 2004, sections 85.053, by adding a
subdivision; 190.055; 326.56; 609.67, subdivisions 3, 5; 626.88, subdivision 1;
Minnesota Statutes 2005 Supplement, sections 43A.183; 192.502, by adding
subdivisions; proposing coding for new law in Minnesota Statutes, chapters 181;
190; 197.
Patrick E. Flahaven, Secretary of the Senate
Mr. Speaker:
I hereby announce that the Senate has concurred in and adopted
the report of the Conference Committee on:
S. F. No. 3480.
The Senate has repassed said bill in accordance with the
recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to
the House.
Patrice Dworak, First Assistant Secretary of the Senate
CONFERENCE
COMMITTEE REPORT ON S. F. NO. 3480
A bill for an act relating to commerce; regulating license
education; regulating certain insurers, insurance forms and rates, coverages,
purchases, filings, utilization reviews, and claims; enacting an interstate
insurance product regulation compact and providing for its administration;
regulating the Minnesota uniform health care identification card; requiring
certain reports; amending Minnesota Statutes 2004, sections 61A.02, subdivision
3; 61A.092, subdivision 3; 62A.02, subdivision 3; 62A.095, subdivision 1;
62A.17, subdivisions 1, 2; 62A.27; 62A.3093; 62C.14, subdivisions 9, 10;
62E.13, subdivision 3; 62E.14, subdivision 5; 62J.60, subdivisions 2, 3;
62L.02, subdivision 24; 62M.01, subdivision 2; 62M.09, subdivision 9; 62S.05,
by adding a subdivision; 62S.08, subdivision 3; 62S.081, subdivision 4; 62S.10,
subdivision 2; 62S.13, by adding a subdivision; 62S.14, subdivision 2; 62S.15;
62S.20, subdivision 1; 62S.24, subdivisions 1, 3, 4, by adding subdivisions;
62S.25, subdivision 6, by adding a subdivision; 62S.26; 62S.265, subdivision 1;
62S.266, subdivision 2; 62S.29, subdivision 1; 62S.30; 70A.07; 72C.10,
subdivision 1; 79.01, by adding subdivisions; 79.251, subdivision 1, by adding
a subdivision; 79.252, by adding subdivisions; 79A.23, subdivision 3; 79A.32;
123A.21, by adding a subdivision; Minnesota Statutes 2005 Supplement, sections
45.22; 45.23; 62A.316; 65B.49, subdivision 5a; 72A.201, subdivision 6; 79A.04,
subdivision
Journal
of the House - 111th Day - Saturday, May 20, 2006 - Top of Page 8535
2; 256B.0571;
proposing coding for new law in Minnesota Statutes, chapters 43A; 61A; 62A;
62Q; 62S; repealing Minnesota Statutes 2005 Supplement, section 256B.0571,
subdivisions 2, 5, 11; Minnesota Rules, parts 2781.0100; 2781.0200; 2781.0300;
2781.0400; 2781.0500; 2781.0600.
May 20, 2006
The Honorable James P. Metzen
President of the Senate
The Honorable Steve Sviggum
Speaker of the House of Representatives
We, the undersigned
conferees for S. F. No. 3480 report that we have agreed upon the items in
dispute and recommend as follows:
That the House recede from
its amendments and that S. F. No. 3480 be further amended as follows:
Delete everything after the
enacting clause and insert:
"Section 1. Minnesota Statutes 2005 Supplement, section
45.22, is amended to read:
45.22 LICENSE EDUCATION APPROVAL.
(a) License education courses
must be approved in advance by the commissioner. Each sponsor who offers a license education course must have
at least one coordinator, approved by the commissioner, be approved by
the commissioner. Each approved sponsor
must have at least one coordinator who meets the criteria specified in
Minnesota Rules, chapter 2809, and who is responsible for supervising the
educational program and assuring compliance with all laws and rules.
"Sponsor" means any person or entity offering approved education.
(b) For coordinators with an
initial approval date before August 1, 2005, approval will expire on December
31, 2005. For courses with an initial
approval date on or before December 31, 2000, approval will expire on April 30,
2006. For courses with an initial
approval date after January 1, 2001, but before August 1, 2005, approval will
expire on April 30, 2007.
Sec. 2. Minnesota Statutes 2005 Supplement, section
45.23, is amended to read:
45.23 LICENSE EDUCATION FEES.
The following fees must be
paid to the commissioner:
(1) initial course approval,
$10 for each hour or fraction of one hour of education course approval
sought. Initial course approval expires
on the last day of the 24th month after the course is approved;
(2) renewal of course
approval, $10 per course. Renewal of
course approval expires on the last day of the 24th month after the course is
renewed;
(3) initial coordinator
sponsor approval, $100. Initial
coordinator approval expires on the last day of the 24th month after the
coordinator is approved; Initial sponsor approval issued under this
section is valid for a period not to exceed 24 months and expires on January 31
of the renewal year assigned by the commissioner. Active sponsors who have at least one approved coordinator as of
the effective date of this section are deemed to be approved sponsors and are
not required to submit an initial application for sponsor approval; and
Journal
of the House - 111th Day - Saturday, May 20, 2006 - Top of Page 8536
(4) renewal of coordinator
sponsor approval, $10. Renewal
of coordinator approval expires on the last day of the 24th month after the
coordinator is renewed. Each renewal of sponsor approval is valid for a
period of 24 months. Active sponsors
who have at least one approved coordinator as of the effective date of this
section will have an expiration date of January 31, 2008.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec.
3. [60A.99]
INTERSTATE INSURANCE PRODUCT REGULATION COMPACT.
Subdivision
1. Enactment
and form. The Interstate
Insurance Product Regulation Compact is enacted into law and entered into with
all other states legally joining in it in substantially the following form:
Article
I. Purposes
The
purposes of this Compact are, through means of joint and cooperative action
among the Compacting States:
1. To promote and protect the interest of
consumers of individual and group annuity, life insurance, disability income
and long-term care insurance products;
2. To develop uniform standards for insurance
products covered under the Compact;
3. To establish a central clearinghouse to
receive and provide prompt review of insurance products covered under the
Compact and, in certain cases, advertisements related thereto, submitted by
insurers authorized to do business in one or more Compacting States;
4. To give appropriate regulatory approval to
those product filings and advertisements satisfying the applicable uniform
standard;
5. To improve coordination of regulatory resources
and expertise between state insurance departments regarding the setting of
uniform standards and review of insurance products covered under the Compact;
6. To create the Interstate Insurance Product
Regulation Commission; and
7. To perform these and such other related
functions as may be consistent with the state regulation of the business of
insurance.
Article
II. Definitions
For
purposes of this Compact:
1.
"Advertisement" means any material designed to create public interest
in a Product, or induce the public to purchase, increase, modify, reinstate,
borrow on, surrender, replace or retain a policy, as more specifically defined
in the Rules and Operating Procedures of the Commission.
2.
"Bylaws" mean those bylaws established by the Commission for its
governance, or for directing or controlling the Commission's actions or
conduct.
3.
"Compacting State" means any State which has enacted this Compact
legislation and which has not withdrawn pursuant to Article XIV, Section 1, or
been terminated pursuant to Article XIV, Section 2.
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4.
"Commission" means the "Interstate Insurance Product Regulation
Commission" established by this Compact.
5.
"Commissioner" means the chief insurance regulatory official of a
State including, but not limited to commissioner, superintendent, director or
administrator.
6.
"Domiciliary State" means the state in which an Insurer is
incorporated or organized; or, in the case of an alien Insurer, its state of
entry.
7.
"Insurer" means any entity licensed by a State to issue contracts of
insurance for any of the lines of insurance covered by this Act.
8.
"Member" means the person chosen by a Compacting State as its
representative to the Commission, or his or her designee.
9.
"Noncompacting State" means any State which is not at the time a
Compacting State.
10.
"Operating Procedures" mean procedures promulgated by the Commission
implementing a Rule, Uniform Standard, or a provision of this Compact.
11.
"Product" means the form of a policy or contract, including any
application, endorsement, or related form which is attached to and made a part
of the policy or contract, and any evidence of coverage or certificate, for an
individual or group annuity, life insurance, disability income or long-term
care insurance product that an Insurer is authorized to issue.
12.
"Rule" means a statement of general or particular applicability and
future effect promulgated by the Commission, including a Uniform Standard
developed pursuant to Article VII of this Compact, designed to implement,
interpret, or prescribe law or policy or describing the organization,
procedure, or practice requirements of the Commission, which shall have the
force and effect of law in the Compacting States.
13.
"State" means any state, district, or territory of the United States
of America.
14.
"Third Party Filer" means an entity that submits a Product filing to
the Commission on behalf of an Insurer.
15.
"Uniform Standard" means a standard adopted by the Commission for a
Product line, pursuant to Article VII of this Compact, and shall include all of
the Product requirements in aggregate; provided, that each Uniform Standard
shall be construed, whether express or implied, to prohibit the use of any
inconsistent, misleading or ambiguous provisions in a Product and the form of
the Product made available to the public shall not be unfair, inequitable or
against public policy as determined by the Commission.
Article
III. Establishment of the Commission
and Venue
1. The Compacting States hereby create and
establish a joint public agency known as the "Interstate Insurance Product
Regulation Commission." Pursuant to Article IV, the Commission will have
the power to develop Uniform Standards for Product lines, receive and provide
prompt review of Products filed therewith, and give approval to those Product
filings satisfying applicable Uniform Standards; provided, it is not intended
for the Commission to be the exclusive entity for receipt and review of
insurance product filings. Nothing
herein shall prohibit any Insurer from filing its product in any State wherein
the Insurer is licensed to conduct the business of insurance; and any such
filing shall be subject to the laws of the State where filed.
2. The Commission is a body corporate and
politic, and an instrumentality of the Compacting States.
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3. The Commission is solely responsible for its
liabilities except as otherwise specifically provided in this Compact.
4. Venue is proper and judicial proceedings by or against the
Commission shall be brought solely and exclusively in a Court of competent
jurisdiction where the principal office of the Commission is located.
Article IV. Powers of the Commission
The Commission shall have
the following powers:
1. To promulgate Rules, pursuant to Article VII of this Compact,
which shall have the force and effect of law and shall be binding in the
Compacting States to the extent and in the manner provided in this Compact;
2. To exercise its rulemaking authority and establish reasonable
Uniform Standards for Products covered under the Compact, and Advertisement
related thereto, which shall have the force and effect of law and shall be
binding in the Compacting States, but only for those Products filed with the
Commission, provided, that a Compacting State shall have the right to opt out
of such Uniform Standard pursuant to Article VII, to the extent and in the
manner provided in this Compact, and, provided further, that any Uniform
Standard established by the Commission for long-term care insurance products
may provide the same or greater protections for consumers as, but shall not
provide less than, those protections set forth in the National Association of
Insurance Commissioners' Long-Term Care Insurance Model Act and Long-Term Care
Insurance Model Regulation, respectively, adopted as of 2001. The Commission shall consider whether any
subsequent amendments to the NAIC Long-Term Care Insurance Model Act or
Long-Term Care Insurance Model Regulation adopted by the NAIC require amending
of the Uniform Standards established by the Commission for long-term care
insurance products;
3. To receive and review in an expeditious manner Products filed
with the Commission, and rate filings for disability income and long-term care
insurance Products, and give approval of those Products and rate filings that
satisfy the applicable Uniform Standard, where such approval shall have the
force and effect of law and be binding on the Compacting States to the extent
and in the manner provided in the Compact;
4. To receive and review in an expeditious manner Advertisement
relating to long-term care insurance products for which Uniform Standards have
been adopted by the Commission, and give approval to all Advertisement that
satisfies the applicable Uniform Standard.
For any product covered under this Compact, other than long-term care
insurance products, the Commission shall have the authority to require an
insurer to submit all or any part of its Advertisement with respect to that
product for review or approval prior to use, if the Commission determines that
the nature of the product is such that an Advertisement of the product could
have the capacity or tendency to mislead the public. The actions of the Commission as provided in this section shall
have the force and effect of law and shall be binding in the Compacting States
to the extent and in the manner provided in the Compact;
5. To exercise its rulemaking authority and designate Products and
Advertisement that may be subject to a self-certification process without the
need for prior approval by the Commission;
6. To promulgate Operating Procedures, pursuant to Article VII of
this Compact, which shall be binding in the Compacting States to the extent and
in the manner provided in this compact;
7. To bring and prosecute legal proceedings or actions in its name
as the Commission; provided, that the standing of any state insurance
department to sue or be sued under applicable law shall not be affected;
8. To issue subpoenas requiring the attendance and testimony of
witnesses and the production of evidence;
9. To establish and maintain offices;
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10. To purchase and maintain insurance and
bonds;
11. To borrow, accept or contract for services
of personnel, including, but not limited to, employees of a Compacting State;
12. To hire employees, professionals or
specialists, and elect or appoint officers, and to fix their compensation,
define their duties and give them appropriate authority to carry out the
purposes of the Compact, and determine their qualifications; and to establish
the Commission's personnel policies and programs relating to, among other
things, conflicts of interest, rates of compensation and qualifications of
personnel;
13. To accept any and all appropriate donations
and grants of money, equipment, supplies, materials and services, and to
receive, utilize and dispose of the same; provided that at all times the
Commission shall strive to avoid any appearance of impropriety;
14. To lease, purchase, accept appropriate gifts
or donations of, or otherwise to own, hold, improve or use, any property, real,
personal or mixed; provided that at all times the Commission shall strive to
avoid any appearance of impropriety;
15. To sell, convey, mortgage, pledge, lease,
exchange, abandon or otherwise dispose of any property, real, personal or
mixed;
16. To remit filing fees to Compacting States as
may be set forth in the Bylaws, Rules or Operating Procedures;
17. To enforce compliance by Compacting States
with Rules, Uniform Standards, Operating Procedures and Bylaws;
18. To provide for dispute resolution among
Compacting States;
19. To advise Compacting States on issues
relating to Insurers domiciled or doing business in Noncompacting
jurisdictions, consistent with the purposes of this Compact;
20. To provide advice and training to those
personnel in state insurance departments responsible for product review, and to
be a resource for state insurance departments;
21. To establish a budget and make expenditures;
22. To borrow money;
23. To appoint committees, including advisory
committees comprising Members, state insurance regulators, state legislators or
their representatives, insurance industry and consumer representatives, and
such other interested persons as may be designated in the Bylaws;
24. To provide and receive information from, and
to cooperate with law enforcement agencies;
25. To adopt and use a corporate seal; and
26. To perform such other functions as may be
necessary or appropriate to achieve the purposes of this Compact consistent
with the state regulation of the business of insurance.
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Article V. Organization of the Commission
1. Membership, Voting and Bylaws
a. Each Compacting State shall have and be
limited to one Member. Each Member
shall be qualified to serve in that capacity pursuant to applicable law of the
Compacting State. Any Member may be removed
or suspended from office as provided by the law of the State from which he or
she shall be appointed. Any vacancy
occurring in the Commission shall be filled in accordance with the laws of the
Compacting State wherein the vacancy exists.
Nothing herein shall be construed to affect the manner in which a
Compacting State determines the election or appointment and qualification of
its own Commissioner.
b. Each Member shall be entitled to one vote
and shall have an opportunity to participate in the governance of the
Commission in accordance with the Bylaws.
Notwithstanding any provision herein to the contrary, no action of the
Commission with respect to the promulgation of a Uniform Standard shall be
effective unless two-thirds of the Members vote in favor thereof.
c. The Commission shall, by a majority of the
Members, prescribe Bylaws to govern its conduct as may be necessary or
appropriate to carry out the purposes, and exercise the powers, of the Compact,
including, but not limited to:
i. Establishing the fiscal year of the
Commission;
ii. Providing reasonable procedures for
appointing and electing members, as well as holding meetings, of the Management
Committee;
iii. Providing reasonable standards and
procedures: (i) for the establishment and meetings of other committees, and
(ii) governing any general or specific delegation of any authority or function
of the Commission;
iv. Providing reasonable procedures for calling
and conducting meetings of the Commission that consist of a majority of
Commission members, ensuring reasonable advance notice of each such meeting and
providing for the right of citizens to attend each such meeting with enumerated
exceptions designed to protect the public's interest, the privacy of
individuals, and insurers' proprietary information, including trade secrets. The Commission may meet in camera only after
a majority of the entire membership votes to close a meeting en toto or in
part. As soon as practicable, the
Commission must make public (i) a copy of the vote to close the meeting
revealing the vote of each Member with no proxy votes allowed, and (ii) votes
taken during such meeting;
v. Establishing the titles, duties and
authority and reasonable procedures for the election of the officers of the
Commission;
vi. Providing reasonable standards and
procedures for the establishment of the personnel policies and programs of the
Commission. Notwithstanding any civil
service or other similar laws of any Compacting State, the Bylaws shall
exclusively govern the personnel policies and programs of the Commission;
vii. Promulgating a code of ethics to address
permissible and prohibited activities of commission members and employees; and
viii. Providing a mechanism for winding up the
operations of the Commission and the equitable disposition of any surplus funds
that may exist after the termination of the Compact after the payment and/or
reserving of all of its debts and obligations.
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d. The Commission shall publish its bylaws in a
convenient form and file a copy thereof and a copy of any amendment thereto,
with the appropriate agency or officer in each of the Compacting States.
2. Management Committee, Officers and Personnel
a. A Management Committee comprising no more than 14 members shall
be established as follows:
i. One member from each of the six Compacting States with the
largest premium volume for individual and group annuities, life, disability
income and long-term care insurance products, determined from the records of
the NAIC for the prior year;
ii. Four members from those Compacting States
with at least two percent of the market based on the premium volume described
above, other than the six Compacting States with the largest premium volume,
selected on a rotating basis as provided in the Bylaws; and
iii. Four members from those Compacting States
with less than two percent of the market, based on the premium volume described
above, with one selected from each of the four zone regions of the NAIC as
provided in the Bylaws.
b. The Management Committee shall have such authority and duties as
may be set forth in the Bylaws, including but not limited to:
i. Managing the affairs of the Commission in a manner consistent
with the Bylaws and purposes of the Commission;
ii. Establishing and overseeing an
organizational structure within, and appropriate procedures for, the Commission
to provide for the creation of Uniform Standards and other Rules, receipt and
review of product filings, administrative and technical support functions,
review of decisions regarding the disapproval of a product filing, and the
review of elections made by a Compacting State to opt out of a Uniform
Standard; provided that a Uniform Standard shall not be submitted to the
Compacting States for adoption unless approved by two-thirds of the members of
the Management Committee;
iii. Overseeing the offices of the Commission;
and
iv. Planning, implementing, and coordinating
communications and activities with other state, federal and local government
organizations in order to advance the goals of the Commission.
c. The Commission shall elect annually officers from the Management
Committee, with each having such authority and duties, as may be specified in
the Bylaws.
d. The Management Committee may, subject to the approval of the
Commission, appoint or retain an executive director for such period, upon such
terms and conditions and for such compensation as the Commission may deem
appropriate. The executive director
shall serve as secretary to the Commission, but shall not be a Member of the
Commission. The executive director
shall hire and supervise such other staff as may be authorized by the
Commission.
3. Legislative and Advisory Committees
a. A legislative committee comprising state legislators or their
designees shall be established to monitor the operations of, and make
recommendations to, the Commission, including the Management Committee;
provided that the manner of selection and term of any legislative committee
member shall be as set forth in the Bylaws.
Prior to
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the adoption by
the Commission of any Uniform Standard, revision to the Bylaws, annual budget
or other significant matter as may be provided in the Bylaws, the Management
Committee shall consult with and report to the legislative committee.
b. The Commission shall establish two advisory committees, one of
which shall comprise consumer representatives independent of the insurance
industry, and the other comprising insurance industry representatives.
c. The Commission may establish additional advisory committees as
its Bylaws may provide for the carrying out of its functions.
4. Corporate Records of the Commission
The Commission shall maintain
its corporate books and records in accordance with the Bylaws.
5. Qualified Immunity, Defense, and Indemnification
a. The Members, officers, executive director, employees, and
representatives of the Commission shall be immune from suit and liability,
either personally or in their official capacity, for any claim for damage to or
loss of property or personal injury or other civil liability caused by or
arising out of any actual or alleged act, error or omission that occurred, or
that the person against whom the claim is made had a reasonable basis for
believing occurred within the scope of Commission employment, duties or
responsibilities; provided, that nothing in this paragraph shall be construed
to protect any such person from suit and/or liability for any damage, loss,
injury or liability caused by the intentional or willful and wanton misconduct
of that person.
b. The Commission shall defend any Member, officer, executive
director, employee, or representative of the Commission in any civil action
seeking to impose liability arising out of any actual or alleged act, error, or
omission that occurred within the scope of Commission employment, duties, or
responsibilities, or that the person against whom the claim is made had a
reasonable basis for believing occurred within the scope of Commission
employment, duties, or responsibilities; provided, that nothing herein shall be
construed to prohibit that person from retaining his or her own counsel; and
provided further, that the actual or alleged act, error, or omission did not
result from that person's intentional or willful and wanton misconduct.
c. The Commission shall indemnify and hold harmless any Member,
officer, executive director, employee, or representative of the Commission for
the amount of any settlement or judgment obtained against that person arising
out of any actual or alleged act, error, or omission that occurred within the
scope of Commission employment, duties, or responsibilities, or that such
person had a reasonable basis for believing occurred within the scope of
Commission employment, duties, or responsibilities, provided, that the actual
or alleged act, error, or omission did not result from the intentional or
willful and wanton misconduct of that person.
Article VI. Meetings and Acts of the Commission
1. The Commission shall meet and take such actions as are consistent
with the provisions of this Compact and the Bylaws.
2. Each Member of the Commission shall have the right and power to
cast a vote to which that Compacting State is entitled and to participate in
the business and affairs of the Commission.
A Member shall vote in person or by such other means as provided in the
Bylaws. The Bylaws may provide for
Members' participation in meetings by telephone or other means of
communication.
3. The Commission shall meet at least once during each calendar
year. Additional meeting shall be held
as set forth in the Bylaws.
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Article
VII. Rules and Operating
Procedures: Rulemaking Functions
of
the Commission and Opting Out of Uniform Standards
1. Rulemaking Authority. The Commission shall promulgate reasonable
Rules, including Uniform Standards, and Operating Procedures in order to
effectively and efficiently achieve the purposes of this Compact. Notwithstanding the foregoing, in the event
the Commission exercises its rulemaking authority in a manner that is beyond
the scope of the purposes of this Act, or the powers granted hereunder, then
such an action by the Commission shall be invalid and have no force and effect.
2. Rulemaking Procedure. Rules and Operating Procedures shall be made
pursuant to a rulemaking process that conforms to the Model State
Administrative Procedure Act of 1981 as amended, as may be appropriate to the
operations of the Commission. Before
the Commission adopts a Uniform Standard, the Commission shall give written
notice to the relevant state legislative committee(s) in each Compacting State
responsible for insurance issues of its intention to adopt the Uniform
Standard. The Commission in adopting a
Uniform Standard shall consider fully all submitted materials and issue a
concise explanation of its decision.
3. Effective Date and Opt Out of a Uniform
Standard. A Uniform Standard shall
become effective 90 days after its promulgation by the Commission or such later
date as the Commission may determine; provided, however, that a Compacting
State may opt out of a Uniform Standard as provided in this Article. "Opt
out" shall be defined as any action by a Compacting State to decline to
adopt or participate in a promulgated Uniform Standard. All other Rules and Operating Procedures,
and amendments thereto, shall become effective as of the date specified in each
Rule, Operating Procedure, or amendment.
4. Opt Out Procedure. A Compacting State may opt out of a Uniform Standard, either by
legislation or regulation duly promulgated by the Insurance Department under
the Compacting State's Administrative Procedure Act. If a Compacting State elects to opt out of a Uniform Standard by
regulation, it must (a) give written notice to the Commission no later than ten
business days after the Uniform Standard is promulgated, or at the time the
State becomes a Compacting State and (b) find that the Uniform Standard does
not provide reasonable protections to the citizens of the State, given the
conditions in the State. The
Commissioner shall make specific findings of fact and conclusions of law, based
on a preponderance of the evidence, detailing the conditions in the State which
warrant a departure from the Uniform Standard and determining that the Uniform
Standard would not reasonably protect the citizens of the State. The Commissioner must consider and balance
the following factors and find that the conditions in the State and needs of
the citizens of the State outweigh: (i) the intent of the legislature to
participate in, and the benefits of, an interstate agreement to establish
national uniform consumer protections for the Products subject to this Act; and
(ii) the presumption that a Uniform Standard adopted by the Commission provides
reasonable protections to consumers of the relevant Product.
Notwithstanding
the foregoing, a Compacting State may, at the time of its enactment of this
Compact, prospectively opt out of all Uniform Standards involving long-term
care insurance products by expressly providing for such opt out in the enacted
Compact, and such an opt out shall not be treated as a material variance in the
offer or acceptance of any State to participate in this Compact. Such an opt out shall be effective at the
time of enactment of this Compact by the Compacting State and shall apply to
all existing Uniform Standards involving long-term care insurance products and those
subsequently promulgated.
5. Effect of Opt Out. If a Compacting State elects to opt out of a Uniform Standard,
the Uniform Standard shall remain applicable in the Compacting State electing
to opt out until such time the opt out legislation is enacted into law or the
regulation opting out becomes effective.
Once
the opt out of a Uniform Standard by a Compacting State becomes effective as
provided under the laws of that State, the Uniform Standard shall have no
further force and effect in that State unless and until the legislation or
regulation implementing the opt out is repealed or otherwise becomes
ineffective under the laws of the State.
If a Compacting State opts out of a Uniform Standard after the Uniform
Standard has been made effective in that State, the opt out shall have the same
prospective effect as provided under Article XIV for withdrawals.
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6. Stay of Uniform Standard. If a Compacting State has formally initiated
the process of opting out of a Uniform Standard by regulation, and while the
regulatory opt out is pending, the Compacting State may petition the
Commission, at least 15 days before the effective date of the Uniform Standard,
to stay the effectiveness of the Uniform Standard in that State. The Commission may grant a stay if it
determines the regulatory opt out is being pursued in a reasonable manner and
there is a likelihood of success. If a
stay is granted or extended by the Commission, the stay or extension thereof
may postpone the effective date by up to 90 days, unless affirmatively extended
by the Commission; provided, a stay may not be permitted to remain in effect
for more than one year unless the Compacting State can show extraordinary circumstances
which warrant a continuance of the stay, including, but not limited to, the
existence of a legal challenge which prevents the Compacting State from opting
out. A stay may be terminated by the
Commission upon notice that the rulemaking process has been terminated.
7. Not later than 30 days after a Rule or
Operating Procedure is promulgated, any person may file a petition for judicial
review of the Rule or Operating Procedure; provided, that the filing of such a
petition shall not stay or otherwise prevent the Rule or Operating Procedure
from becoming effective unless the court finds that the petitioner has a
substantial likelihood of success. The
court shall give deference to the actions of the Commission consistent with
applicable law and shall not find the Rule or Operating Procedure to be
unlawful if the Rule or Operating Procedure represents a reasonable exercise of
the Commission's authority.
Article
VIII. Commission Records and
Enforcement
1. The Commission shall promulgate Rules
establishing conditions and procedures for public inspection and copying of its
information and official records, except such information and records involving
the privacy of individuals and insurers' trade secrets. The Commission may promulgate additional
Rules under which it may make available to federal and state agencies,
including law enforcement agencies, records and information otherwise exempt
from disclosure, and may enter into agreements with such agencies to receive or
exchange information or records subject to nondisclosure and confidentiality
provisions.
2. Except as to privileged records, data and
information, the laws of any Compacting State pertaining to confidentiality or
nondisclosure shall not relieve any Compacting State Commissioner of the duty
to disclose any relevant records, data or information to the Commission;
provided, that disclosure to the Commission shall not be deemed to waive or
otherwise affect any confidentiality requirement; and further provided, that,
except as otherwise expressly provided in this Act, the Commission shall not be
subject to the Compacting State's laws pertaining to confidentiality and
nondisclosure with respect to records, data and information in its
possession. Confidential information of
the Commission shall remain confidential after such information is provided to
any Commissioner.
3. The Commission shall monitor Compacting
States for compliance with duly adopted Bylaws, Rules, including Uniform
Standards, and Operating Procedures.
The Commission shall notify any noncomplying Compacting State in writing
of its noncompliance with Commission Bylaws, Rules or Operating
Procedures. If a noncomplying
Compacting State fails to remedy its noncompliance within the time specified in
the notice of noncompliance, the Compacting State shall be deemed to be in
default as set forth in Article XIV.
4. The Commissioner of any State in which an
Insurer is authorized to do business, or is conducting the business of
insurance, shall continue to exercise his or her authority to oversee the
market regulation of the activities of the Insurer in accordance with the
provisions of the State's law. The
Commissioner's enforcement of compliance with the Compact is governed by the following
provisions:
a. With respect to the Commissioner's market
regulation of a Product or Advertisement that is approved or certified to the
Commission, the content of the Product or Advertisement shall not constitute a
violation of the provisions, standards or requirements of the Compact except
upon a final order of the Commission, issued at the request of a Commissioner
after prior notice to the Insurer and an opportunity for hearing before the
Commission.
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b. Before a Commissioner may bring an action
for violation of any provision, standard or requirement of the Compact relating
to the content of an Advertisement not approved or certified to the Commission,
the Commission, or an authorized Commission officer or employee, must authorize
the action. However, authorization
pursuant to this paragraph does not require notice to the Insurer, opportunity
for hearing or disclosure of requests for authorization or records of the
Commission's action on such requests.
Article
IX. Dispute Resolution
The
Commission shall attempt, upon the request of a Member, to resolve any disputes
or other issues that are subject to this Compact and which may arise between
two or more Compacting States, or between Compacting States and Noncompacting
States, and the Commission shall promulgate an Operating Procedure providing
for resolution of such disputes.
Article
X. Product Filing and Approval
1. Insurers and Third Party Filers seeking to
have a Product approved by the Commission shall file the Product with, and pay
applicable filing fees to, the Commission.
Nothing in this Act shall be construed to restrict or otherwise prevent
an insurer from filing its Product with the insurance department in any State
wherein the insurer is licensed to conduct the business of insurance, and such
filing shall be subject to the laws of the States where filed.
2. The Commission shall establish appropriate
filing and review processes and procedures pursuant to Commission Rules and
Operating Procedures. Notwithstanding
any provision herein to the contrary, the Commission shall promulgate Rules to
establish conditions and procedures under which the Commission will provide
public access to Product filing information.
In establishing such Rules, the Commission shall consider the interests
of the public in having access to such information, as well as protection of
personal medical and financial information and trade secrets, that may be
contained in a Product filing or supporting information.
3. Any Product approved by the Commission may
be sold or otherwise issued in those Compacting States for which the Insurer is
legally authorized to do business.
Article
XI. Review of Commission Decisions
Regarding Filings
1. Not later than 30 days after the Commission
has given notice of a disapproved Product or Advertisement filed with the
Commission, the Insurer or Third Party Filer whose filing was disapproved may
appeal the determination to a review panel appointed by the Commission. The Commission shall promulgate Rules to
establish procedures for appointing such review panels and provide for notice
and hearing. An allegation that the
Commission, in disapproving a Product or Advertisement filed with the
Commission, acted arbitrarily, capriciously, or in a manner that is an abuse of
discretion or otherwise not in accordance with the law, is subject to judicial
review in accordance with Article III, Section 4.
2. The Commission shall have authority to
monitor, review and reconsider Products and Advertisement subsequent to their
filing or approval upon a finding that the product does not meet the relevant
Uniform Standard. Where appropriate,
the Commission may withdraw or modify its approval after proper notice and
hearing, subject to the appeal process in Section 1 above.
Article
XII. Finance
1. The Commission shall pay or provide for the
payment of the reasonable expenses of its establishment and organization. To fund the cost of its initial operations,
the Commission may accept contributions and other forms of funding from the
National Association of Insurance Commissioners, Compacting States, and other
sources. Contributions and other forms
of funding from other sources shall be of such a nature that the independence
of the Commission concerning the performance of its duties shall not be
compromised.
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2. The Commission shall collect a filing fee
from each Insurer and Third Party Filer filing a product with the Commission to
cover the cost of the operations and activities of the Commission and its staff
in a total amount sufficient to cover the Commission's annual budget.
3. The Commission's budget for a fiscal year
shall not be approved until it has been subject to notice and comment as set
forth in Article VII of this Compact.
4. The Commission shall be exempt from all
taxation in and by the Compacting states.
5. The Commission shall not pledge the credit
of any Compacting State, except by and with the appropriate legal authority of
that Compacting State.
6. The Commission shall keep complete and
accurate accounts of all its internal receipts, including grants and donations,
and disbursements of all funds under its control. The internal financial accounts of the Commission shall be
subject to the accounting procedures established under its Bylaws. The financial accounts and reports including
the system of internal controls and procedures of the Commission shall be
audited annually by an independent certified public accountant. Upon the determination of the Commission,
but no less frequently than every three years, the review of the independent
auditor shall include a management and performance audit of the
Commission. The Commission shall make an
Annual Report to the Governor and legislature of the Compacting States, which
shall include a report of the independent audit. The Commission's internal accounts shall not be confidential and
such materials may be shared with the Commissioner of any Compacting State upon
request provided, however, that any work papers related to any internal or
independent audit and any information regarding the privacy of individuals and
insurers' proprietary information, including trade secrets, shall remain
confidential.
7. No Compacting State shall have any claim to
or ownership of any property held by or vested in the Commission or to any
Commission funds held pursuant to the provisions of this Compact.
Article
XIII. Compacting States, Effective Date
and Amendment
1. Any State is eligible to become a Compacting
State.
2. The Compact shall become effective and
binding upon legislative enactment of the Compact into law by two Compacting
States; provided, the Commission shall become effective for purposes of
adopting Uniform Standards for, reviewing, and giving approval or disapproval
of, Products filed with the Commission that satisfy applicable Uniform
Standards only after 26 States are Compacting States or, alternatively, by
States representing greater than 40 percent of the premium volume for life
insurance, annuity, disability income and long-term care insurance products,
based on records of the NAIC for the prior year. Thereafter, it shall become effective and binding as to any other
Compacting State upon enactment of the Compact into law by that State.
3. Amendments to the Compact may be proposed by
the Commission for enactment by the Compacting States. No amendment shall become effective and
binding upon the Commission and the Compacting States unless and until all
Compacting States enact the amendment into law.
Article
XIV. Withdrawal, Default and
Termination
1. Withdrawal
a. Once effective, the Compact shall continue
in force and remain binding upon each and every Compacting State; provided,
that a Compacting State may withdraw from the Compact ("Withdrawing
State") by enacting a statute specifically repealing the statute which
enacted the Compact into law.
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b. The effective date of withdrawal is the
effective date of the repealing statute.
However, the withdrawal shall not apply to any product filings approved
or self-certified, or any Advertisement of such products, on the date the
repealing statute becomes effective, except by mutual agreement of the
Commission and the Withdrawing State unless the approval is rescinded by the
Withdrawing State as provided in Paragraph e of this section.
c. The Commissioner of the Withdrawing State shall immediately
notify the Management Committee in writing upon the introduction of legislation
repealing this Compact in the Withdrawing State.
d. The Commission shall notify the other Compacting States of the
introduction of such legislation within ten days after its receipt of notice
thereof.
e. The Withdrawing State is responsible for all obligations, duties
and liabilities incurred through the effective date of withdrawal, including
any obligations, the performance of which extend beyond the effective date of
withdrawal, except to the extent those obligations may have been released or
relinquished by mutual agreement of the Commission and the Withdrawing
State. The Commission's approval of
Products and Advertisement prior to the effective date of withdrawal shall continue
to be effective and be given full force and effect in the Withdrawing State,
unless formally rescinded by the Withdrawing State in the same manner as
provided by the laws of the Withdrawing State for the prospective disapproval
of products or advertisement previously approved under state law.
f. Reinstatement following withdrawal of any Compacting State shall
occur upon the effective date of the Withdrawing State reenacting the Compact.
2. Default
a. If the Commission determines that any Compacting State has at any
time defaulted ("Defaulting State") in the performance of any of its
obligations or responsibilities under this Compact, the Bylaws or duly
promulgated Rules or Operating Procedures, then, after notice and hearing as
set forth in the Bylaws, all rights, privileges and benefits conferred by this
Compact on the Defaulting State shall be suspended from the effective date of
default as fixed by the Commission. The
grounds for default include, but are not limited to, failure of a Compacting
State to perform its obligations or responsibilities, and any other grounds
designated in Commission Rules. The
Commission shall immediately notify the Defaulting State in writing of the
Defaulting State's suspension pending a cure of the default. The Commission shall stipulate the
conditions and the time period within which the Defaulting State must cure its
default. If the Defaulting State fails
to cure the default within the time period specified by the Commission, the
Defaulting State shall be terminated form the Compact and all rights,
privileges and benefits conferred by this Compact shall be terminated from the
effective date of termination.
b. Product approvals by the Commission or product
self-certifications, or any Advertisement in connection with such product, that
are in force on the effective date of termination shall remain in force in the
Defaulting State in the same manner as if the Defaulting State had withdrawn
voluntarily pursuant to Section 1 of this article.
c. Reinstatement following termination of any Compacting State
requires a reenactment of the Compact.
3. Dissolution of Compact
a. The Compact dissolves effective upon the date of the withdrawal
or default of the Compacting State which reduces membership in the Compact to
one Compacting State.
b. Upon the dissolution of this Compact, the Compact becomes null
and void and shall be of no further force or effect, and the business and
affairs of the Commission shall be wound up and any surplus funds shall be
distributed in accordance with the Bylaws.
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Article XV. Severability and Construction
1. The provisions of this Compact shall be
severable; and if any phrase, clause, sentence, or provision is deemed
unenforceable, the remaining provisions of the Compact shall be enforceable.
2. The provisions of this Compact shall be
liberally construed to effectuate its purposes.
Article
XVI. Binding Effect of Compact and
Other Laws
1. Other Laws
a. Nothing herein prevents the enforcement of
any other law of a Compacting State, except as provided in Paragraph b of this
section.
b. For any Product approved or certified to the
Commission, the Rules, Uniform Standards, and any other requirements of the
Commission shall constitute the exclusive provisions applicable to the content,
approval, and certification of such Products.
For Advertisement that is subject to the Commission's authority, any
Rule, Uniform Standard, or other requirement of the Commission which governs
the content of the Advertisement shall constitute the exclusive provision that
a Commissioner may apply to the content of the Advertisement. Notwithstanding the foregoing, no action taken
by the Commission shall abrogate or restrict: (i) the access of any person to
state courts; (ii) remedies available under state law related to breach of
contract, tort, or other laws not specifically directed to the content of the
Product; (iii) state law relating to the construction of insurance contracts;
or (iv) the authority of the attorney general of the state, including but not
limited to maintaining any actions or proceedings, as authorized by law.
c. All insurance products filed with individual
States shall be subject to the laws of those States.
2. Binding Effect of this Compact
a. All lawful actions of the Commission,
including all Rules and Operating Procedures promulgated by the Commission, are
binding upon the Compacting States.
b. All agreements between the Commission and
the Compacting States are binding in accordance with their terms.
c. Upon the request of a party to a conflict
over the meaning or interpretation of Commission actions, and upon a majority
vote of the Compacting States, the Commission may issue advisory opinions
regarding the meaning or interpretation in dispute.
d. In the event any provision of this Compact
exceeds the constitutional limits imposed on the legislature of any Compacting
State, the obligations, duties, powers or jurisdiction sought to be conferred
by that provision upon the Commission shall be ineffective as to that
Compacting State, and those obligations, duties, powers, or jurisdiction shall
remain in the Compacting State and shall be exercised by the agency thereof to
which those obligations, duties, powers, or jurisdiction are delegated by law
in effect at the time this Compact becomes effective.
Subd.
2. Commission
representative. The
commissioner of commerce is the representative of this state to the commission.
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Sec. 4. [60A.991]
INTERSTATE INSURANCE PRODUCT REGULATION COMPACT OPT OUT ADMINISTRATION.
Subdivision 1. Access to courts. The commissioner must opt out by
regulation of any uniform standard that permits a product to deny a consumer's
access to the courts to resolve a dispute related to the product. In addition to opting out, the commissioner
must petition the commission for a stay of the effective date of the standard.
Subd. 2. Deference by courts. A decision by the commissioner to opt out
by regulation shall be given deference by the courts.
Sec. 5. Minnesota Statutes 2004, section 61A.02,
subdivision 3, is amended to read:
Subd. 3. Disapproval. (a) The commissioner shall, within 60
days after the filing of any form, disapprove the form:
(1) if the benefits provided
are unreasonable in relation to the premium charged;
(2) if the safety and
soundness of the company would be threatened by the offering of an excess rate
of interest on the policy or contract;
(3) if it contains a
provision or provisions which are unlawful, unfair, inequitable, misleading, or
encourages misrepresentation of the policy; or
(4) if the form, or its
provisions, is otherwise not in the public interest. It shall be unlawful for the company to issue any policy in the
form so disapproved. If the
commissioner does not within 60 days after the filing of any form, disapprove
or otherwise object, the form shall be deemed approved.
(b) When an insurer or the
Minnesota Comprehensive Health Association fails to respond to an objection or
inquiry within 60 days, the filing is automatically disapproved. A resubmission is required if action by the
Department of Commerce is subsequently requested. An additional filing fee is required for the resubmission.
(c) For purposes of paragraph
(a), clause (2), an excess rate of interest is a rate of interest exceeding
the rate of interest determined by subtracting three percentage points from
Moody's corporate bond yield average as most recently available.
Sec. 6. Minnesota Statutes 2004, section 61A.092,
subdivision 3, is amended to read:
Subd. 3. Notice
of options. Upon termination of or
layoff from employment of a covered employee, the employer shall inform the
employee of:
(1) the employee's right to
elect to continue the coverage;
(2) the amount the employee
must pay monthly to the employer to retain the coverage;
(3) the manner in which and
the office of the employer to which the payment to the employer must be made;
and
(4) the time by which the
payments to the employer must be made to retain coverage.
The employee has 60 days
within which to elect coverage. The
60-day period shall begin to run on the date coverage would otherwise terminate
or on the date upon which notice of the right to coverage is received,
whichever is later.
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If the covered
employee or covered dependent dies during the 60-day election period and before
the covered employee makes an election to continue or reject continuation, then
the covered employee will be considered to have elected continuation of
coverage. The estate of beneficiary
previously selected by the former employee or covered dependent would then
be entitled to a death benefit equal to the amount of insurance that could have
been continued less any unpaid premium owing as of the date of death.
Notice
must be in writing and sent by first class mail to the employee's last known
address which the employee has provided to the employer.
A
notice in substantially the following form is sufficient: "As a terminated
or laid off employee, the law authorizes you to maintain your group insurance
benefits, in an amount equal to the amount of insurance in effect on the date
you terminated or were laid off from employment, for a period of up to 18
months. To do so, you must notify your
former employer within 60 days of your receipt of this notice that you intend
to retain this coverage and must make a monthly payment of $............ at
............. by the ............. of each month."
Sec.
7. Minnesota Statutes 2004, section
62A.02, subdivision 3, is amended to read:
Subd.
3. Standards
for disapproval. (a) The
commissioner shall, within 60 days after the filing of any form or rate,
disapprove the form or rate:
(1) if
the benefits provided are not reasonable in relation to the premium charged;
(2) if
it contains a provision or provisions which are unjust, unfair, inequitable,
misleading, deceptive or encourage misrepresentation of the health plan form,
or otherwise does not comply with this chapter, chapter 62L, or chapter 72A;
(3) if
the proposed premium rate is excessive or not adequate; or
(4)
the actuarial reasons and data submitted do not justify the rate.
The
party proposing a rate has the burden of proving by a preponderance of the
evidence that it does not violate this subdivision.
In
determining the reasonableness of a rate, the commissioner shall also review all
administrative contracts, service contracts, and other agreements to determine
the reasonableness of the cost of the contracts or agreement and effect of the
contracts on the rate. If the
commissioner determines that a contract or agreement is not reasonable, the
commissioner shall disapprove any rate that reflects any unreasonable cost
arising out of the contract or agreement.
The commissioner may require any information that the commissioner deems
necessary to determine the reasonableness of the cost.
For
the purposes of this subdivision, the commissioner shall establish by rule a
schedule of minimum anticipated loss ratios which shall be based on (i) the
type or types of coverage provided, (ii) whether the policy is for group or
individual coverage, and (iii) the size of the group for group policies. Except for individual policies of disability
or income protection insurance, the minimum anticipated loss ratio shall not be
less than 50 percent after the first year that a policy is in force. All applicants for a policy shall be
informed in writing at the time of application of the anticipated loss ratio of
the policy. "Anticipated loss ratio" means the ratio at the time of
filing, at the time of notice of withdrawal under subdivision 4a, or at the time
of subsequent rate revision of the present value of all expected future
benefits, excluding dividends, to the present value of all expected future
premiums.
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If the commissioner
notifies a health carrier that has filed any form or rate that it does not
comply with this chapter, chapter 62L, or chapter 72A, it shall be unlawful for
the health carrier to issue or use the form or rate. In the notice the commissioner shall specify the reasons for
disapproval and state that a hearing will be granted within 20 days after
request in writing by the health carrier.
The
60-day period within which the commissioner is to approve or disapprove the
form or rate does not begin to run until a complete filing of all data and
materials required by statute or requested by the commissioner has been
submitted.
However,
if the supporting data is not filed within 30 days after a request by the
commissioner, the rate is not effective and is presumed to be an excessive
rate.
(b)
When an insurer or the Minnesota Comprehensive Health Association fails to
respond to an objection or inquiry within 60 days, the filing is automatically
disapproved. A resubmission is required
if action by the Department of Commerce is subsequently requested. An additional filing fee is required for the
resubmission.
Sec.
8. Minnesota Statutes 2004, section
62A.02, is amended by adding a subdivision to read:
Subd.
3a. Individual
policy rates file and use; minimum lifetime loss ratio guarantee. (a) Notwithstanding subdivisions 2, 3,
4a, 5a, and 6, individual premium rates may be used upon filing with the
department of an individual policy form if the filing is accompanied by the
individual policy form filing and a minimum lifetime loss ratio guarantee. Insurers may use the filing procedure
specified in this subdivision only if the affected individual policy forms
disclose the benefit of a minimum lifetime loss ratio guarantee. Insurers may amend individual policy forms
to provide for a minimum lifetime loss ratio guarantee. If an insurer elects to use the filing
procedure in this subdivision for an individual policy rate, the insurer shall
not use a filing of premium rates that does not provide a minimum lifetime loss
ratio guarantee for that individual policy rate.
(b)
The minimum lifetime loss ratio guarantee must be in writing and must contain
at least the following:
(1)
an actuarial memorandum specifying the expected loss ratio that complies with
the standards as set forth in this subdivision;
(2)
a statement certifying that all rates, fees, dues, and other charges are not
excessive, inadequate, or unfairly discriminatory;
(3)
detailed experience information concerning the policy forms;
(4)
a step-by-step description of the process used to develop the minimum lifetime
loss ratio, including demonstration with supporting data;
(5)
guarantee of specific minimum lifetime loss ratio that must be greater than or
equal to 65 percent for policies issued to individuals or for certificates
issued to members of an association that does not offer coverage to small
employers, taking into consideration adjustments for duration;
(6)
a guarantee that the actual Minnesota loss ratio for the calendar year in which
the new rates take effect, and for each year thereafter until new rates are
filed, will meet or exceed the minimum lifetime loss ratio standards referred
to in clause (5), adjusted for duration;
(7)
a guarantee that the actual Minnesota lifetime loss ratio shall meet or exceed
the minimum lifetime loss ratio standards referred to in clause (5); and
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(8) if the
annual earned premium volume in Minnesota under the particular policy form is
less than $2,500,000, the minimum lifetime loss ratio guarantee must be based
partially on the Minnesota earned premium and other credible factors as
specified by the commissioner.
(c) The actual Minnesota
minimum loss ratio results for each year at issue must be independently audited
at the insurer's expense, and the audit report must be filed with the
commissioner not later than 120 days after the end of the year at issue.
(d) The insurer shall refund
premiums in the amount necessary to bring the actual loss ratio up to the
guaranteed minimum lifetime loss ratio.
For the purpose of this paragraph, loss ratio and guaranteed minimum
lifetime loss ratio are the expected aggregate loss ratio of all approved
individual policy forms that provide for a minimum lifetime loss ratio
guarantee.
(e) A Minnesota policyholder
affected by the guaranteed minimum lifetime loss ratio shall receive a portion
of the premium refund relative to the premium paid by the policyholder. The refund must be made to all Minnesota
policyholders insured under the applicable policy form during the year at issue
if the refund would equal $10 or more per policy. The refund must include statutory interest from July 1 of the
year at issue until the date of payment.
Payment must be made not later than 180 days after the end of the year
at issue.
(f) Premium refunds of less
than $10 per insured must be credited to the policyholder's account.
(g) Subdivisions 2 and 3 do
not apply if premium rates are filed with the department and accompanied by a
minimum lifetime loss ratio guarantee that meets the requirements of this
subdivision. Such filings are deemed
approved. When determining a loss ratio
for the purposes of a minimum lifetime loss ratio guarantee, the insurer shall divide
the total of the claims incurred, plus preferred provider organization
expenses, case management, and utilization review expenses, plus reinsurance
premiums less reinsurance recoveries by the premiums earned less state and
local taxes less other assessments. The
insurer shall identify any assessment allocated.
(h) The policy form filing
of an insurer using the filing procedure with a minimum lifetime loss ratio
guarantee must disclose to the enrollee, member, or subscriber an explanation
of the minimum lifetime loss ratio guarantee, and the actual loss ratio, and
any adjustments for duration.
(i) The insurer who elects
to use the filing procedure with a minimum lifetime loss ratio guarantee shall
notify all policyholders of the refund calculation, the result of the refund
calculation, the percentage of premium on an aggregate basis to be refunded, if
any, any amount of the refund attributed to the payment of interests, and an
explanation of amounts less than $10.
Sec. 9. Minnesota Statutes 2004, section 62A.021,
subdivision 1, is amended to read:
Subdivision
1. Loss
ratio standards. (a)
Notwithstanding section 62A.02, subdivision 3, relating to loss ratios, and
except as otherwise authorized by section 62A.02, subdivision 3a, for
individual policies or certificates, health care policies or certificates
shall not be delivered or issued for delivery to an individual or to a small
employer as defined in section 62L.02, unless the policies or certificates can
be expected, as estimated for the entire period for which rates are computed to
provide coverage, to return to Minnesota policyholders and certificate holders
in the form of aggregate benefits not including anticipated refunds or credits,
provided under the policies or certificates, (1) at least 75 percent of the
aggregate amount of premiums earned in the case of policies issued in the small
employer market, as defined in section 62L.02, subdivision 27, calculated on an
aggregate basis; and (2) at least 65 percent of the aggregate amount of premiums
earned in the case of each policy form or certificate form issued in the
individual market; calculated on the basis of incurred claims experience or
incurred health care expenses where coverage is provided by a health
maintenance organization on a service rather than reimbursement basis and
earned premiums for the period and according to accepted actuarial principles
and practices. Assessments by the
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reinsurance association
created in chapter 62L and all types of taxes, surcharges, or assessments
created by Laws 1992, chapter 549, or created on or after April 23, 1992, are
included in the calculation of incurred claims experience or incurred health
care expenses. The applicable
percentage for policies and certificates issued in the small employer market,
as defined in section 62L.02, increases by one percentage point on July 1 of
each year, beginning on July 1, 1994, until an 82 percent loss ratio is reached
on July 1, 2000. The applicable
percentage for policy forms and certificate forms issued in the individual
market increases by one percentage point on July 1 of each year, beginning on
July 1, 1994, until a 72 percent loss ratio is reached on July 1, 2000. A health carrier that enters a market after
July 1, 1993, does not start at the beginning of the phase-in schedule and must
instead comply with the loss ratio requirements applicable to other health
carriers in that market for each time period.
Premiums earned and claims incurred in markets other than the small
employer and individual markets are not relevant for purposes of this section.
(b)
All filings of rates and rating schedules shall demonstrate that actual
expected claims in relation to premiums comply with the requirements of this
section when combined with actual experience to date. Filings of rate revisions shall also demonstrate that the
anticipated loss ratio over the entire future period for which the revised
rates are computed to provide coverage can be expected to meet the appropriate
loss ratio standards, and aggregate loss ratio from inception of the policy
form or certificate form shall equal or exceed the appropriate loss ratio
standards.
(c) A
health carrier that issues health care policies and certificates to individuals
or to small employers, as defined in section 62L.02, in this state shall file
annually its rates, rating schedule, and supporting documentation including
ratios of incurred losses to earned premiums by policy form or certificate form
duration for approval by the commissioner according to the filing requirements
and procedures prescribed by the commissioner.
The supporting documentation shall also demonstrate in accordance with
actuarial standards of practice using reasonable assumptions that the
appropriate loss ratio standards can be expected to be met over the entire
period for which rates are computed.
The demonstration shall exclude active life reserves. If the data submitted does not confirm that
the health carrier has satisfied the loss ratio requirements of this section,
the commissioner shall notify the health carrier in writing of the
deficiency. The health carrier shall
have 30 days from the date of the commissioner's notice to file amended rates
that comply with this section. If the
health carrier fails to file amended rates within the prescribed time, the
commissioner shall order that the health carrier's filed rates for the
nonconforming policy form or certificate form be reduced to an amount that
would have resulted in a loss ratio that complied with this section had it been
in effect for the reporting period of the supplement. The health carrier's failure to file amended rates within the
specified time or the issuance of the commissioner's order amending the rates
does not preclude the health carrier from filing an amendment of its rates at a
later time. The commissioner shall
annually make the submitted data available to the public at a cost not to
exceed the cost of copying. The data
must be compiled in a form useful for consumers who wish to compare premium
charges and loss ratios.
(d)
Each sale of a policy or certificate that does not comply with the loss ratio
requirements of this section is an unfair or deceptive act or practice in the
business of insurance and is subject to the penalties in sections 72A.17 to
72A.32.
(e)(1)
For purposes of this section, health care policies issued as a result of
solicitations of individuals through the mail or mass media advertising,
including both print and broadcast advertising, shall be treated as individual
policies.
(2)
For purposes of this section, (i) "health care policy" or
"health care certificate" is a health plan as defined in section
62A.011; and (ii) "health carrier" has the meaning given in section
62A.011 and includes all health carriers delivering or issuing for delivery
health care policies or certificates in this state or offering these policies
or certificates to residents of this state.
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(f) The loss ratio
phase-in as described in paragraph (a) does not apply to individual policies
and small employer policies issued by a health plan company that is assessed
less than three percent of the total annual amount assessed by the Minnesota
Comprehensive Health Association. These
policies must meet a 68 percent loss ratio for individual policies, a 71
percent loss ratio for small employer policies with fewer than ten employees,
and a 75 percent loss ratio for all other small employer policies.
(g) Notwithstanding
paragraphs (a) and (f), the loss ratio shall be 60 percent for a health plan as
defined in section 62A.011, offered by an insurance company licensed under
chapter 60A that is assessed less than ten percent of the total annual amount
assessed by the Minnesota Comprehensive Health Association. For purposes of the percentage calculation
of the association's assessments, an insurance company's assessments include
those of its affiliates.
(h) The commissioners of
commerce and health shall each annually issue a public report listing, by
health plan company, the actual loss ratios experienced in the individual and
small employer markets in this state by the health plan companies that the
commissioners respectively regulate.
The commissioners shall coordinate release of these reports so as to
release them as a joint report or as separate reports issued the same day. The report or reports shall be released no
later than June 1 for loss ratios experienced for the preceding calendar
year. Health plan companies shall
provide to the commissioners any information requested by the commissioners for
purposes of this paragraph.
Sec. 10. Minnesota Statutes 2004, section 62A.095,
subdivision 1, is amended to read:
Subdivision 1. Applicability. (a) No health plan shall be offered, sold,
or issued to a resident of this state, or to cover a resident of this state,
unless the health plan complies with subdivision 2.
(b) Health plans providing
benefits under health care programs administered by the commissioner of human
services are not subject to the limits described in subdivision 2 but are
subject to the right of subrogation provisions under section 256B.37 and the
lien provisions under section 256.015; 256B.042; 256D.03, subdivision 8; or
256L.03, subdivision 6.
For purposes of this
section, "health plan" includes coverage that is excluded under
section 62A.011, subdivision 3, clauses (4), (7), and (10).
Sec. 11. Minnesota Statutes 2004, section 62A.27, is
amended to read:
62A.27 COVERAGE OF ADOPTED CHILDREN.
(a) A health plan that
provides coverage to a Minnesota resident must cover adopted children of the
insured, subscriber, participant, or enrollee on the same basis as other
dependents. Consequently, the plan shall
not contain any provision concerning preexisting condition limitations,
insurability, eligibility, or health underwriting approval concerning children
placed for adoption with the participant.
(b)
The coverage required by this section is effective from the date of placement
for adoption. For purposes of this
section, placement for adoption means the assumption and retention by a person
of a legal obligation for total or partial support of a child in anticipation
of adoption of the child. The child's
placement with a person terminates upon the termination of the legal obligation
for total or partial support.
(c)
For the purpose of this section, health plan includes:
(1)
coverage offered by community integrated service networks;
(2)
coverage that is designed solely to provide dental or vision care; and
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(3) any plan under
the federal Employee Retirement Income Security Act of 1974 (ERISA), United
States Code, title 29, sections 1001 to 1461.
(d) No policy or contract
covered by this section may require notification to a health carrier as a
condition for this dependent coverage.
However, if the policy or contract mandates an additional premium for
each dependent, the health carrier is entitled to all premiums that would have
been collected had the health carrier been aware of the additional
dependent. The health carrier may
withhold payment of any health benefits for the new dependent until it has been
compensated with the applicable premium which would have been owed if the
health carrier had been informed of the additional dependent immediately.
Sec. 12. Minnesota Statutes 2004, section 62A.3093,
is amended to read:
62A.3093 COVERAGE FOR DIABETES.
Subdivision 1. Required coverage. A health plan, including a plan providing
the coverage specified in section 62A.011, subdivision 3, clause (10), must
provide coverage for: (1) all physician prescribed medically appropriate and
necessary equipment and supplies used in the management and treatment of
diabetes; and (2) diabetes outpatient self-management training and education,
including medical nutrition therapy, that is provided by a certified,
registered, or licensed health care professional working in a program consistent
with the national standards of diabetes self-management education as
established by the American Diabetes Association. Coverage must include persons with gestational, type I or type II
diabetes. Coverage required under this
section is subject to the same deductible or coinsurance provisions applicable
to the plan's hospital, medical expense, medical equipment, or prescription
drug benefits. A health carrier may not
reduce or eliminate coverage due to this requirement.
Subd. 2. Medicare Part D
exception. A health plan
providing the coverage specified in section 62A.011, subdivision 3, clause
(10), is not subject to the requirements of subdivision 1, clause (1), with
respect to equipment and supplies covered under the Medicare Part D Prescription
Drug program, whether or not the covered person is enrolled in a Medicare Part
D plan.
This subdivision does not
apply to a health plan providing the coverage specified in section 62A.011,
subdivision 3, clause (10), that was in effect on December 31, 2005, if the
covered person remains enrolled in the plan and does not enroll in a Medicare
Part D plan.
EFFECTIVE DATE. This section is effective retroactive to January 1, 2006.
Sec. 13. Minnesota Statutes 2005 Supplement, section
62A.316, is amended to read:
62A.316 BASIC MEDICARE SUPPLEMENT PLAN; COVERAGE.
(a) The basic Medicare
supplement plan must have a level of coverage that will provide:
(1) coverage for all of the
Medicare Part A inpatient hospital coinsurance amounts, and 100 percent of all
Medicare part A eligible expenses for hospitalization not covered by Medicare,
after satisfying the Medicare Part A deductible;
(2) coverage for the daily
co-payment amount of Medicare Part A eligible expenses for the calendar year
incurred for skilled nursing facility care;
(3) coverage for the
coinsurance amount, or in the case of outpatient department services paid under
a prospective payment system, the co-payment amount, of Medicare eligible
expenses under Medicare Part B regardless of hospital confinement, subject to
the Medicare Part B deductible amount;
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(4) 80 percent of
the hospital and medical expenses and supplies incurred during travel outside
the United States as a result of a medical emergency;
(5)
coverage for the reasonable cost of the first three pints of blood, or
equivalent quantities of packed red blood cells as defined under federal
regulations under Medicare Parts A and B, unless replaced in accordance with
federal regulations;
(6)
100 percent of the cost of immunizations not otherwise covered under Part D of
the Medicare program and routine screening procedures for cancer screening
including mammograms and pap smears; and
(7) 80
percent of coverage for all physician prescribed medically appropriate and
necessary equipment and supplies used in the management and treatment of
diabetes not otherwise covered under Part D of the Medicare program. Coverage must include persons with
gestational, type I, or type II diabetes.
Coverage under this clause is subject to section 62A.3093,
subdivision 2.
(b)
Only the following optional benefit riders may be added to this plan:
(1)
coverage for all of the Medicare Part A inpatient hospital deductible amount;
(2) a
minimum of 80 percent of eligible medical expenses and supplies not covered by
Medicare Part B, not to exceed any charge limitation established by the
Medicare program or state law;
(3)
coverage for all of the Medicare Part B annual deductible;
(4)
coverage for at least 50 percent, or the equivalent of 50 percent, of usual and
customary prescription drug expenses.
An outpatient prescription drug benefit must not be included for sale or
issuance in a Medicare policy or certificate issued on or after January 1,
2006;
(5)
preventive medical care benefit coverage for the following preventative health
services not covered by Medicare:
(i) an
annual clinical preventive medical history and physical examination that may
include tests and services from clause (ii) and patient education to address
preventive health care measures;
(ii)
preventive screening tests or preventive services, the selection and frequency
of which is determined to be medically appropriate by the attending physician.
Reimbursement
shall be for the actual charges up to 100 percent of the Medicare-approved
amount for each service, as if Medicare were to cover the service as identified
in American Medical Association current procedural terminology (AMA CPT) codes,
to a maximum of $120 annually under this benefit. This benefit shall not include payment for a procedure covered by
Medicare;
(6)
coverage for services to provide short-term at-home assistance with activities
of daily living for those recovering from an illness, injury, or surgery:
(i)
For purposes of this benefit, the following definitions apply:
(A)
"activities of daily living" include, but are not limited to,
bathing, dressing, personal hygiene, transferring, eating, ambulating,
assistance with drugs that are normally self-administered, and changing
bandages or other dressings;
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(B) "care
provider" means a duly qualified or licensed home health aide/homemaker,
personal care aid, or nurse provided through a licensed home health care agency
or referred by a licensed referral agency or licensed nurses registry;
(C)
"home" means a place used by the insured as a place of residence,
provided that the place would qualify as a residence for home health care
services covered by Medicare. A
hospital or skilled nursing facility shall not be considered the insured's
place of residence;
(D)
"at-home recovery visit" means the period of a visit required to
provide at-home recovery care, without limit on the duration of the visit,
except each consecutive four hours in a 24-hour period of services provided by
a care provider is one visit;
(ii)
Coverage requirements and limitations:
(A)
at-home recovery services provided must be primarily services that assist in
activities of daily living;
(B)
the insured's attending physician must certify that the specific type and
frequency of at-home recovery services are necessary because of a condition for
which a home care plan of treatment was approved by Medicare;
(C)
coverage is limited to:
(I) no
more than the number and type of at-home recovery visits certified as necessary
by the insured's attending physician.
The total number of at-home recovery visits shall not exceed the number
of Medicare-approved home care visits under a Medicare-approved home care plan
of treatment;
(II)
the actual charges for each visit up to a maximum reimbursement of $40 per
visit;
(III)
$1,600 per calendar year;
(IV)
seven visits in any one week;
(V) care
furnished on a visiting basis in the insured's home;
(VI)
services provided by a care provider as defined in this section;
(VII)
at-home recovery visits while the insured is covered under the policy or
certificate and not otherwise excluded;
(VIII)
at-home recovery visits received during the period the insured is receiving
Medicare-approved home care services or no more than eight weeks after the
service date of the last Medicare-approved home health care visit;
(iii)
Coverage is excluded for:
(A)
home care visits paid for by Medicare or other government programs; and
(B)
care provided by family members, unpaid volunteers, or providers who are not
care providers;
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(7) coverage for at
least 50 percent, or the equivalent of 50 percent, of usual and customary
prescription drug expenses to a maximum of $1,200 paid by the issuer annually
under this benefit. An issuer of
Medicare supplement insurance policies that elects to offer this benefit rider
shall also make available coverage that contains the rider specified in clause
(4). An outpatient prescription drug
benefit must not be included for sale or issuance in a Medicare policy or
certificate issued on or after January 1, 2006.
EFFECTIVE DATE. This section is effective retroactively from January 1, 2006.
Sec. 14. [62A.3161]
MEDICARE SUPPLEMENT PLAN WITH 50 PERCENT COVERAGE.
The Medicare supplement plan
with 50 percent coverage must have a level of coverage that will provide:
(1) 100 percent of Medicare
Part A hospitalization coinsurance plus coverage for 365 days after Medicare
benefits end;
(2) coverage for 50 percent
of the Medicare Part A inpatient hospital deductible amount per benefit period
until the out-of-pocket limitation is met as described in clause (8);
(3) coverage for 50 percent
of the coinsurance amount for each day used from the 21st through the 100th day
in a Medicare benefit period for posthospital skilled nursing care eligible
under Medicare Part A until the out-of-pocket limitation is met as described in
clause (8);
(4) coverage for 50 percent
of cost sharing for all Medicare Part A eligible expenses and respite care
until the out-of-pocket limitation is met as described in clause (8);
(5) coverage for 50 percent,
under Medicare Part A or B, of the reasonable cost of the first three pints of
blood, or equivalent quantities of packed red blood cells, as defined under
federal regulations, unless replaced according to federal regulations, until
the out-of-pocket limitation is met as described in clause (8);
(6) except for coverage
provided in this clause, coverage for 50 percent of the cost sharing otherwise
applicable under Medicare Part B, after the policyholder pays the Medicare Part
B deductible, until the out-of-pocket limitation is met as described in clause
(8);
(7) coverage of 100 percent
of the cost sharing for Medicare Part B preventive services and diagnostic
procedures for cancer screening described in section 62A.30 after the
policyholder pays the Medicare Part B deductible; and
(8) coverage of 100 percent
of all cost sharing under Medicare Parts A and B for the balance of the
calendar year after the individual has reached the out-of-pocket limitation on
annual expenditures under Medicare Parts A and B of $4,000 in 2006, indexed
each year by the appropriate inflation adjustment by the secretary of the
United States Department of Health and Human Services.
Sec. 15. [62A.3162]
MEDICARE SUPPLEMENT PLAN WITH 75 PERCENT COVERAGE.
The basic Medicare
supplement plan with 75 percent coverage must have a level of coverage that
will provide:
(1) 100 percent of Medicare
Part A hospitalization coinsurance plus coverage for 365 days after Medicare
benefits end;
(2) coverage for 75 percent
of the Medicare Part A inpatient hospital deductible amount per benefit period
until the out-of-pocket limitation is met as described in clause (8);
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(3) coverage for
75 percent of the coinsurance amount for each day used from the 21st through
the 100th day in a Medicare benefit period for posthospital skilled nursing
care eligible under Medicare Part A until the out-of-pocket limitation is met
as described in clause (8);
(4)
coverage for 75 percent of cost sharing for all Medicare Part A eligible
expenses and respite care until the out-of-pocket limitation is met as
described in clause (8);
(5)
coverage for 75 percent, under Medicare Part A or B, of the reasonable cost of
the first three pints of blood, or equivalent quantities of packed red blood
cells, as defined under federal regulations, unless replaced according to
federal regulations until the out-of-pocket limitation is met as described in
clause (8);
(6)
except for coverage provided in this clause, coverage for 75 percent of the
cost sharing otherwise applicable under Medicare Part B after the policyholder
pays the Medicare Part B deductible until the out-of-pocket limitation is met
as described in clause (8);
(7)
coverage of 100 percent of the cost sharing for Medicare Part B preventive
services and diagnostic procedures for cancer screening described in section
62A.30 after the policyholder pays the Medicare Part B deductible; and
(8)
coverage of 100 percent of all cost sharing under Medicare Parts A and B for
the balance of the calendar year after the individual has reached the
out-of-pocket limitation on annual expenditures under Medicare Parts A and B of
$2,000 in 2006, indexed each year by the appropriate inflation adjustment by
the Secretary of the United States Department of Health and Human Services.
Sec.
16. Minnesota Statutes 2004, section
62A.65, subdivision 3, is amended to read:
Subd.
3. Premium
rate restrictions. No individual
health plan may be offered, sold, issued, or renewed to a Minnesota resident
unless the premium rate charged is determined in accordance with the following
requirements:
(a)
Premium rates must be no more than 25 percent above and no more than 25 percent
below the index rate charged to individuals for the same or similar coverage,
adjusted pro rata for rating periods of less than one year. The premium variations permitted by this
paragraph must be based only upon health status, claims experience, and occupation. For purposes of this paragraph, health
status includes refraining from tobacco use or other actuarially valid
lifestyle factors associated with good health, provided that the lifestyle
factor and its effect upon premium rates have been determined by the
commissioner to be actuarially valid and have been approved by the
commissioner. Variations permitted
under this paragraph must not be based upon age or applied differently at
different ages. This paragraph does not
prohibit use of a constant percentage adjustment for factors permitted to be
used under this paragraph.
(b)
Premium rates may vary based upon the ages of covered persons only as provided
in this paragraph. In addition to the
variation permitted under paragraph (a), each health carrier may use an
additional premium variation based upon age of up to plus or minus 50 percent
of the index rate.
(c) A
health carrier may request approval by the commissioner to establish no more
than three separate geographic regions determined by the health
carrier and to establish separate index rates for each such region,
provided that the index rates do not vary between any two regions by more than
20 percent. Health carriers that do not
do business in the Minneapolis/St. Paul
metropolitan area may request approval for no more than two geographic regions,
and clauses (2) and (3) do not apply to approval of requests made by those
health carriers. The commissioner may
shall grant approval if the following conditions are met: (1) the
geographic regions must be applied uniformly by the health carrier;
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(2) one
geographic region must be based on the Minneapolis/St. Paul metropolitan area;
(3)
for each geographic region that is rural, the index rate for that region must
not exceed the index rate for the Minneapolis/St. Paul metropolitan area; and
(2)
each geographic region must be composed of no fewer than seven counties that
create a contiguous region; and
(4) (3) the health carrier provides
actuarial justification acceptable to the commissioner for the proposed
geographic variations in index rates, establishing that the variations are
based upon differences in the cost to the health carrier of providing coverage.
(d) Health
carriers may use rate cells and must file with the commissioner the rate cells
they use. Rate cells must be based upon
the number of adults or children covered under the policy and may reflect the
availability of Medicare coverage. The
rates for different rate cells must not in any way reflect generalized
differences in expected costs between principal insureds and their spouses.
(e) In
developing its index rates and premiums for a health plan, a health carrier
shall take into account only the following factors:
(1)
actuarially valid differences in rating factors permitted under paragraphs (a)
and (b); and
(2)
actuarially valid geographic variations if approved by the commissioner as
provided in paragraph (c).
(f)
All premium variations must be justified in initial rate filings and upon
request of the commissioner in rate revision filings. All rate variations are subject to approval by the commissioner.
(g)
The loss ratio must comply with the section 62A.021 requirements for individual
health plans.
(h)
The rates must not be approved, unless the commissioner has determined that the
rates are reasonable. In determining
reasonableness, the commissioner shall consider the growth rates applied under
section 62J.04, subdivision 1, paragraph (b), to the calendar year or years
that the proposed premium rate would be in effect, actuarially valid changes in
risks associated with the enrollee populations, and actuarially valid changes
as a result of statutory changes in Laws 1992, chapter 549.
(i)
An insurer may, as part of a minimum lifetime loss ratio guarantee filing under
section 62A.02, subdivision 3a, include a rating practices guarantee as
provided in this paragraph. The rating
practices guarantee must be in writing and must guarantee that the policy form
will be offered, sold, issued, and renewed only with premium rates and premium
rating practices that comply with subdivisions 2, 3, 4, and 5. The rating practices guarantee must be
accompanied by an actuarial memorandum that demonstrates that the premium rates
and premium rating system used in connection with the policy form will satisfy
the guarantee. The guarantee must
guarantee refunds of any excess premiums to policyholders charged premiums that
exceed those permitted under subdivision 2, 3, 4, or 5. An insurer that complies with this paragraph
in connection with a policy form is exempt from the requirement of prior
approval by the commissioner under paragraphs (c), (f), and (h).
EFFECTIVE DATE. The amendments to paragraph (c) of this section are effective
January 1, 2007, and apply to policies issued or renewed on or after that date.
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Sec. 17. Minnesota Statutes 2004, section 62C.14,
subdivision 9, is amended to read:
Subd.
9. Required
filing. No service plan corporation
shall deliver or issue for delivery in this state any subscriber contract,
endorsement, rider, amendment or application until a copy of the form thereof
has been filed with the commissioner, subject to disapproval by the
commissioner. Any such form issued or
in use on August 1, 1971, if filed with the commissioner within 60 days after
August 1, 1971, shall be deemed filed upon receipt by the commissioner. When an insurer, service plan
corporation, or the Minnesota Comprehensive Health Association fails to respond
to an objection or inquiry within 60 days, the filing is automatically
disapproved. A resubmission is required
if action by the Department of Commerce is subsequently requested. An additional filing fee is required for the
resubmission. The commissioner also
may by regulation exempt from filing those subscriber contracts issued to a
group of not less than 300 subscribers, or to other groups upon such reasonable
conditions and restrictions as the commissioner may require.
Sec.
18. Minnesota Statutes 2004, section
62C.14, subdivision 10, is amended to read:
Subd.
10. Filing or disapproval.
Except as otherwise provided in subdivision 9, all forms received by the
commissioner shall be deemed filed 60 days after received unless disapproved by
order transmitted to the corporation stating that the form used in a specified
respect is contrary to law, contains a provision or provisions which are
unfair, inequitable, misleading, inconsistent or ambiguous, or is in part
illegible. It shall be unlawful to
issue or use a document disapproved by the commissioner. When an insurer, service plan
corporation, or the Minnesota Comprehensive Health Association fails to respond
to an objection or inquiry within 60 days, the filing is automatically
disapproved. A resubmission is required
if action by the Department of Commerce is subsequently requested. An additional filing fee is required for the
resubmission.
Sec.
19. Minnesota Statutes 2004, section
62E.13, subdivision 3, is amended to read:
Subd.
3. Duties
of writing carrier. The writing
carrier shall perform all administrative and claims payment functions required
by this section. The writing carrier
shall provide these services for a period of three five years,
unless a request to terminate is approved by the commissioner. The commissioner shall approve or deny a
request to terminate within 90 days of its receipt. A failure to make a final decision on a request to terminate
within the specified period shall be deemed to be an approval. Six months prior to the expiration of each three-year
five-year period, the association shall invite submissions of policy forms
from members of the association, including the writing carrier. The association shall follow the provisions
of subdivision 2 in selecting a writing carrier for the subsequent three-year
five-year period.
Sec.
20. Minnesota Statutes 2004, section
62E.14, subdivision 5, is amended to read:
Subd.
5. Terminated
employees. An employee who is
voluntarily or involuntarily terminated or laid off from employment and unable
to exercise the option to continue coverage under section 62A.17, and who is
a Minnesota resident and who is otherwise eligible, may enroll in the
comprehensive health insurance plan, by submitting an application that is
received by the writing carrier no later than 90 days after termination or
layoff, with a waiver of the preexisting condition limitation set forth in
subdivision 3 and a waiver of the evidence of rejection set forth in
subdivision 1, paragraph (c).
EFFECTIVE DATE. This section is effective the day following final enactment.
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Sec. 21. Minnesota Statutes 2005 Supplement, section
62J.052, is amended to read:
62J.052 PROVIDER COST DISCLOSURE.
Subdivision
1. Health
care providers. (a) Each health
care provider, as defined by section 62J.03, subdivision 8, except hospitals
and outpatient surgical centers subject to the requirements of section
62J.823, shall provide the following information:
(1)
the average allowable payment from private third-party payers for the 20
50 services or procedures most commonly performed;
(2)
the average payment rates for those services and procedures for medical
assistance;
(3)
the average charge for those services and procedures for individuals who have
no applicable private or public coverage; and
(4)
the average charge for those services and procedures, including all patients.
(b)
This information shall be updated annually and be readily available at no cost
to the public on site.
Subd.
2. Pharmacies. (a) Each pharmacy, as defined in section
151.01, subdivision 2, shall provide the following information to a patient
upon request:
(1)
the pharmacy's own usual and customary price for a prescription drug;
(2)
a record, including all transactions on record with the pharmacy both past and
present, of all co-payments and other cost-sharing paid to the pharmacy by the
patient for up to two years; and
(3)
the total amount of all co-payments and other cost-sharing paid to the pharmacy
by the patient over the previous two years.
(b)
The information required under paragraph (a) must be readily available at no cost
to the patient.
EFFECTIVE DATE. This section is effective October 1, 2006.
Sec.
22. Minnesota Statutes 2004, section
62J.60, subdivision 2, is amended to read:
Subd.
2. General
characteristics. (a) The Minnesota
uniform health care identification card must be a preprinted card constructed
of plastic, paper, or any other medium that conforms with ANSI and ISO 7810
physical characteristics standards. The
card dimensions must also conform to ANSI and ISO 7810 physical characteristics
standard. The use of a signature panel
is optional. The uniform prescription
drug information contained on the card must conform with the format adopted by
the NCPDP and, except as provided in subdivision 3, paragraph (a), clause (2),
must include all of the fields required to submit a claim in conformance with
the most recent pharmacy identification card implementation guide produced by
the NCPDP. All information required to
submit a prescription drug claim, exclusive of information provided on a
prescription that is required by law, must be included on the card in a clear,
readable, and understandable manner. If
a health benefit plan requires a conditional or situational field, as defined
by the NCPDP, the conditional or situational field must conform to the most
recent pharmacy information card implementation guide produced by the NCPDP.
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(b) The Minnesota
uniform health care identification card must have an essential information window
on the front side with the following data elements left justified in the
following top to bottom sequence:
card issuer name, electronic transaction routing information, card
issuer identification number, cardholder (insured) identification number, and cardholder
(insured) identification name. No
optional data may be interspersed between these data elements. The window must be left justified.
(c) Standardized labels are
required next to human readable data elements and must come before the human
readable data elements.
Sec. 23. Minnesota Statutes 2004, section 62J.60,
subdivision 3, is amended to read:
Subd. 3. Human
readable data elements. (a) The
following are the minimum human readable data elements that must be present on
the front side of the Minnesota uniform health care identification card:
(1) card issuer name or
logo, which is the name or logo that identifies the card issuer. The card issuer name or logo may be located
at the top of the card. No standard
label is required for this data element;
(2) complete electronic
transaction routing information including, at a minimum, the international
identification number. The standardized
label of this data element is "RxBIN." Processor control numbers and
group numbers are required if needed to electronically process a prescription
drug claim. The standardized label for
the process control numbers data element is "RxPCN" and the
standardized label for the group numbers data element is "RxGrp,"
except that if the group number data element is a universal element to be used
by all health care providers, the standardized label may be "Grp." To
conserve vertical space on the card, the international identification number
and the processor control number may be printed on the same line;
(3) card issuer
identification number. The standardized
label for this element is "Issuer";
(4) cardholder (insured)
identification number, which is the unique identification number of the
individual card holder established and defined under this section. The standardized label for the data element
is "ID";
(5) (4) cardholder
(insured) identification name, which is the name of the individual card
holder. The identification name must be
formatted as follows: first name,
space, optional middle initial, space, last name, optional space and name
suffix. The standardized label for this
data element is "Name";
(6) (5) care type, which
is the description of the group purchaser's plan product under which the
beneficiary is covered. The description
shall include the health plan company name and the plan or product name. The standardized label for this data element
is "Care Type";
(7) (6) service type,
which is the description of coverage provided such as hospital, dental, vision,
prescription, or mental health. The
standard label for this data element is "Svc Type"; and
(8) (7) provider/clinic
name, which is the name of the primary care clinic the card holder is assigned
to by the health plan company. The
standard label for this field is "PCP." This information is mandatory
only if the health plan company assigns a specific primary care provider to the
card holder.
(b) The following human
readable data elements shall be present on the back side of the Minnesota
uniform health care identification card.
These elements must be left justified, and no optional data elements may
be interspersed between them:
(1) claims submission names
and addresses, which are the names and addresses of the entity or entities to
which claims should be submitted. If
different destinations are required for different types of claims, this must be
labeled;
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(2) telephone
numbers and names that pharmacies and other health care providers may call for
assistance. These telephone numbers and
names are required on the back side of the card only if one of the contacts
listed in clause (3) cannot provide pharmacies or other providers with
assistance or with the telephone numbers and names of contacts for assistance;
and
(3)
telephone numbers and names; which are the telephone numbers and names of the
following contacts with a standardized label describing the service function as
applicable:
(i)
eligibility and benefit information;
(ii)
utilization review;
(iii)
precertification; or
(iv)
customer services.
(c)
The following human readable data elements are mandatory on the back side of
the Minnesota uniform health care identification card for health maintenance
organizations:
(1)
emergency care authorization telephone number or instruction on how to receive
authorization for emergency care. There
is no standard label required for this information; and
(2)
one of the following:
(i)
telephone number to call to appeal to or file a complaint with the commissioner
of health; or
(ii)
for persons enrolled under section 256B.69, 256D.03, or 256L.12, the telephone
number to call to file a complaint with the ombudsperson designated by the
commissioner of human services under section 256B.69 and the address to appeal
to the commissioner of human services.
There is no standard label required for this information.
(d)
All human readable data elements not required under paragraphs (a) to (c) are
optional and may be used at the issuer's discretion.
Sec.
24. Minnesota Statutes 2004, section
62J.81, subdivision 1, is amended to read:
Subdivision
1. Required
disclosure of estimated payment. (a)
A health care provider, as defined in section 62J.03, subdivision 8, or
the provider's designee as agreed to by that designee, shall, at the
request of a consumer, provide that consumer with a good faith estimate of the
reimbursement the provider expects to receive from the health plan company in
which the consumer is enrolled. Health
plan companies must allow contracted providers, or their designee, to
release this information. A good faith
estimate must also be made available at the request of a consumer who is not
enrolled in a health plan company.
Payment information provided by a provider, or by the provider's
designee as agreed to by that designee, to a patient pursuant to this
subdivision does not constitute a legally binding estimate of the cost of
services.
(b)
A health plan company, as defined in section 62J.03, subdivision 10, shall, at
the request of an enrollee or the enrollee's designee, provide that enrollee
with a good faith estimate of the reimbursement the health plan company would
expect to pay to a specified provider within the network for a health care
service specified by the enrollee. If
requested by the enrollee, the health plan company shall also provide to the
enrollee a good faith estimate of the enrollee's out-of-pocket cost for the
health care service. An estimate
provided to an enrollee under this paragraph is not a legally binding estimate
of the reimbursement or out-of-pocket cost.
EFFECTIVE DATE. Paragraph (a) is effective the day following final
enactment. Paragraph (b) is effective
January 1, 2007.
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Sec. 25. [62J.823]
HOSPITAL PRICING TRANSPARENCY.
Subdivision 1. Short title. This section may be cited as the Hospital
Pricing Transparency Act.
Subd. 2. Definition. For the purposes of this section,
"estimate" means the actual price expected to be billed to the
individual or to the individual's health plan company based on the specific
diagnostic-related group code or specific procedure code or codes, reflecting
any known discounts the individual would receive.
Subd. 3. Applicability and
scope. Any hospital, as
defined in section 144.696, subdivision 3, and outpatient surgical center, as
defined in section 144.696, subdivision 4, shall provide a written estimate of
the cost of a specific service or stay upon the request of a patient, doctor,
or the patient's representative. The
request must include:
(1) the health coverage
status of the patient, including the specific health plan or other health
coverage under which the patient is enrolled, if any; and
(2) at least one of the following:
(i) the specific
diagnostic-related group code;
(ii) the name of the
procedure or procedures to be performed;
(iii) the type of treatment
to be received; or
(iv) any other information
that will allow the hospital or outpatient surgical center to determine the
specific diagnostic-related group or procedure code or codes.
Subd. 4. Estimate. (a) An estimate provided by the hospital
or outpatient surgical center must contain:
(1) the method used to
calculate the estimate;
(2) the specific
diagnostic-related group or procedure code or codes used to calculate the
estimate, and a description of the diagnostic-related group or procedure code
or codes that is reasonably understandable to a patient; and
(3) a statement indicating
that the estimate, while accurate, may not reflect the actual billed charges
and that the final bill may be higher or lower depending on the patient's
specific circumstances.
(b) The estimate may be
provided in any method that meets the needs of the patient and the hospital or
outpatient surgical center, including electronically; however, a paper copy
must be provided if specifically requested.
EFFECTIVE DATE. This section is effective October 1, 2006.
Sec. 26. [62J.83]
REDUCED PAYMENT AMOUNTS PERMITTED.
(a) Notwithstanding any
provision of chapter 148 or any other provision of law to the contrary, a
health care provider may provide care to a patient at a discounted payment
amount, including care provided for free.
(b) This section does not
apply in a situation in which the discounted payment amount is not permitted
under federal law.
EFFECTIVE DATE. This section is effective the day following final enactment.
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Sec. 27. Minnesota Statutes 2004, section 62L.02,
subdivision 24, is amended to read:
Subd.
24. Qualifying coverage.
"Qualifying coverage" means health benefits or health coverage
provided under:
(1) a
health benefit plan, as defined in this section, but without regard to whether
it is issued to a small employer and including blanket accident and sickness
insurance, other than accident-only coverage, as defined in section 62A.11;
(2)
part A or part B of Medicare;
(3)
medical assistance under chapter 256B;
(4)
general assistance medical care under chapter 256D;
(5)
MCHA;
(6) a
self-insured health plan;
(7)
the MinnesotaCare program established under section 256L.02;
(8) a
plan provided under section 43A.316, 43A.317, or 471.617;
(9)
the Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) or
other coverage provided under United States Code, title 10, chapter 55;
(10)
coverage provided by a health care network cooperative under chapter 62R;
(11) a
medical care program of the Indian Health Service or of a tribal organization;
(12)
the federal Employees Health Benefits Plan, or other coverage provided under
United States Code, title 5, chapter 89;
(13) a
health benefit plan under section 5(e) of the Peace Corps Act, codified as
United States Code, title 22, section 2504(e);
(14) a
health plan; or
(15) a
plan similar to any of the above plans provided in this state or in another
state as determined by the commissioner.;
(16)
any plan established or maintained by a state, the United States government, or
a foreign country, or any political subdivision of a state, the United States
government, or a foreign country that provides health coverage to individuals
who are enrolled in the plan; or
(17)
the State Children's Health Insurance Program (SCHIP).
Sec.
28. Minnesota Statutes 2004, section
62L.03, subdivision 3, is amended to read:
Subd. 3. Minimum
participation and contribution. (a)
A small employer that has at least 75 percent of its eligible employees who have
not waived coverage participating in a health benefit plan and that contributes
at least 50 percent toward the cost of coverage of each eligible employee must
be guaranteed coverage on a guaranteed issue basis from any health carrier
participating in the small employer market.
The participation level of eligible
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employees must be
determined at the initial offering of coverage and at the renewal date of
coverage. A health carrier must not
increase the participation requirements applicable to a small employer at any
time after the small employer has been accepted for coverage. For the purposes of this subdivision, waiver
of coverage includes only waivers due to: (1) coverage under another group
health plan; (2) coverage under Medicare Parts A and B; (3) coverage under MCHA
permitted under section 62E.141; or (4) coverage under medical assistance under
chapter 256B or general assistance medical care under chapter 256D.
(b) If a small employer does
not satisfy the contribution or participation requirements under this
subdivision, a health carrier may voluntarily issue or renew individual health
plans, or a health benefit plan which must fully comply with this chapter. A health carrier that provides a health
benefit plan to a small employer that does not meet the contribution or
participation requirements of this subdivision must maintain this information
in its files for audit by the commissioner.
A health carrier may not offer an individual health plan, purchased
through an arrangement between the employer and the health carrier, to any
employee unless the health carrier also offers the individual health plan, on a
guaranteed issue basis, to all other employees of the same employer. An arrangement permitted under section
62L.12, subdivision 2, paragraph (k), is not an arrangement between the
employer and the health carrier for purposes of this paragraph.
(c) Nothing in this section
obligates a health carrier to issue coverage to a small employer that currently
offers coverage through a health benefit plan from another health carrier,
unless the new coverage will replace the existing coverage and not serve as one
of two or more health benefit plans offered by the employer. This paragraph does not apply if the small
employer will meet the required participation level with respect to the new
coverage.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec. 29. Minnesota Statutes 2004, section 62L.08,
subdivision 4, is amended to read:
Subd. 4. Geographic
premium variations. A health
carrier may request approval by the commissioner to establish no more than
three separate geographic regions determined by the health
carrier and to establish separate index rates for each such region,
provided that the index rates do not vary between any two regions by more than
20 percent. Health carriers that do not
do business in the Minneapolis/St. Paul
metropolitan area may request approval for no more than two geographic regions,
and clauses (2) and (3) do not apply to approval of requests made by those
health carriers. A health carrier may
also request approval to establish one or more additional geographic regions
and one or more separate index rates for premiums for employees working and
residing outside of Minnesota. The
commissioner may shall grant approval if the following conditions
are met:
(1) the geographic regions
must be applied uniformly by the health carrier;
(2) one geographic region must
be based on the Minneapolis/St. Paul
metropolitan area;
(3) if one geographic region
is rural, the index rate for the rural region must not exceed the index rate
for the Minneapolis/St. Paul
metropolitan area;
(2) each geographic region
must be composed of no fewer than seven counties that create a contiguous
region; and
(4) (3) the health carrier provides
actuarial justification acceptable to the commissioner for the proposed
geographic variations in index rates, establishing that the variations are
based upon differences in the cost to the health carrier of providing coverage.
EFFECTIVE DATE. This section is effective January 1, 2007, and applies to
policies issued or renewed on or after that date.
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Sec. 30. Minnesota Statutes 2005 Supplement, section
62L.12, subdivision 2, is amended to read:
Subd.
2. Exceptions. (a) A health carrier may sell, issue, or
renew individual conversion policies to eligible employees otherwise eligible
for conversion coverage under section 62D.104 as a result of leaving a health
maintenance organization's service area.
(b) A
health carrier may sell, issue, or renew individual conversion policies to
eligible employees otherwise eligible for conversion coverage as a result of
the expiration of any continuation of group coverage required under sections
62A.146, 62A.17, 62A.21, 62C.142, 62D.101, and 62D.105.
(c) A
health carrier may sell, issue, or renew conversion policies under section
62E.16 to eligible employees.
(d) A
health carrier may sell, issue, or renew individual continuation policies to
eligible employees as required.
(e) A
health carrier may sell, issue, or renew individual health plans if the
coverage is appropriate due to an unexpired preexisting condition limitation or
exclusion applicable to the person under the employer's group health plan or
due to the person's need for health care services not covered under the
employer's group health plan.
(f) A
health carrier may sell, issue, or renew an individual health plan, if the
individual has elected to buy the individual health plan not as part of a
general plan to substitute individual health plans for a group health plan nor
as a result of any violation of subdivision 3 or 4.
(g)
Nothing in this subdivision relieves a health carrier of any obligation to
provide continuation or conversion coverage otherwise required under federal or
state law.
(h)
Nothing in this chapter restricts the offer, sale, issuance, or renewal of
coverage issued as a supplement to Medicare under sections 62A.31 to 62A.44, or
policies or contracts that supplement Medicare issued by health maintenance
organizations, or those contracts governed by sections 1833, 1851 to 1859,
1860D, or 1876 of the federal Social Security Act, United States Code, title
42, section 1395 et seq., as amended.
(i)
Nothing in this chapter restricts the offer, sale, issuance, or renewal of
individual health plans necessary to comply with a court order.
(j) A
health carrier may offer, issue, sell, or renew an individual health plan to
persons eligible for an employer group health plan, if the individual health
plan is a high deductible health plan for use in connection with an existing
health savings account, in compliance with the Internal Revenue Code, section
223. In that situation, the same or a
different health carrier may offer, issue, sell, or renew a group health plan
to cover the other eligible employees in the group.
(k)
A health carrier may offer, sell, issue, or renew an individual health plan to
one or more employees of a small employer if the individual health plan is
marketed directly to all employees of the small employer and the small employer
does not contribute directly or indirectly to the premiums or facilitate the
administration of the individual health plan.
The requirement to market an individual health plan to all employees
does not require the health carrier to offer or issue an individual health plan
to any employee. For purposes of this
paragraph, an employer is not contributing to the premiums or facilitating the
administration of the individual health plan if the employer does not
contribute to the premium and merely collects the premiums from an employee's
wages or salary through payroll deductions and submits payment for the premiums
of one or more employees in a lump sum to the health carrier. Except for coverage under section 62A.65,
subdivision 5, paragraph (b), or 62E.16, at the request of an employee, the
health carrier may bill the employer for the premiums payable by the employee,
provided that the employer is
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not liable for
payment except from payroll deductions for that purpose. If an employer is submitting payments under
this paragraph, the health carrier shall provide a cancellation notice directly
to the primary insured at least ten days prior to termination of coverage for
nonpayment of premium. Individual
coverage under this paragraph may be offered only if the small employer has not
provided coverage under section 62L.03 to the employees within the past 12
months.
The
employer must provide a written and signed statement to the health carrier that
the employer is not contributing directly or indirectly to the employee's
premiums. The health carrier may rely
on the employer's statement and is not required to guarantee-issue individual
health plans to the employer's other current or future employees.
EFFECTIVE DATE. This section is effective the day following final enactment.
Sec.
31. Minnesota Statutes 2004, section
62M.01, subdivision 2, is amended to read:
Subd.
2. Jurisdiction. Sections 62M.01 to 62M.16 apply to any
insurance company licensed under chapter 60A to offer, sell, or issue a policy
of accident and sickness insurance as defined in section 62A.01; a health
service plan licensed under chapter 62C; a health maintenance organization
licensed under chapter 62D; the Minnesota Comprehensive Health Association
created under chapter 62E; a community integrated service network licensed
under chapter 62N; an accountable provider network operating under chapter 62T;
a fraternal benefit society operating under chapter 64B; a joint self-insurance
employee health plan operating under chapter 62H; a multiple employer welfare
arrangement, as defined in section 3 of the Employee Retirement Income Security
Act of 1974 (ERISA), United States Code, title 29, section 1103, as amended; a
third party administrator licensed under section 60A.23, subdivision 8, that
provides utilization review services for the administration of benefits under a
health benefit plan as defined in section 62M.02; or any entity performing
utilization review on behalf of a business entity in this state pursuant to a
health benefit plan covering a Minnesota resident.
Sec.
32. [62M.072] USE OF EVIDENCE-BASED STANDARDS.
If
no independently developed evidence-based standards exist for a particular
treatment, testing, or imaging procedure, then an insurer or utilization review
organization shall not deny coverage of the treatment, testing, or imaging
based solely on the grounds that the treatment, testing, or imaging does not
meet an evidence-based standard. This
section does not prohibit an insurer or utilization review organization from
denying coverage for services that are investigational, experimental, or not
medically necessary.
Sec.
33. Minnesota Statutes 2004, section
62M.09, subdivision 9, is amended to read:
Subd.
9. Annual
report. A utilization review
organization shall file an annual report with the annual financial statement it
submits to the commissioner of commerce that includes:
(1)
per 1,000 claims utilization reviews, the number and rate of claims
denied determinations not to certify based on medical necessity for
each procedure or service; and
(2)
the number and rate of denials overturned on appeal.
A
utilization review organization that is not a licensed health carrier must
submit the annual report required by this subdivision on April 1 of each year.
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Sec. 34. [62Q.645]
DISTRIBUTION OF INFORMATION; ADMINISTRATIVE EFFICIENCY AND COVERAGE OPTIONS.
(a)
The commissioner may use reports submitted by health plan companies, service
cooperatives, and the public employee insurance program created in section
43A.316 to compile entity specific administrative efficiency reports; may make
these reports available on state agency Web sites, including minnesotahealthinfo.com;
and may include information on:
(1)
number of covered lives;
(2)
covered services;
(3)
geographic availability;
(4)
whom to contact to obtain current premium rates;
(5)
administrative costs, using the definition of administrative costs developed
under section 62J.38;
(6)
Internet links to information on the health plan, if available; and
(7)
any other information about the health plan identified by the commissioner as
being useful for employers, consumers, providers, and others in evaluating
health plan options.
(b)
This section does not apply to a health plan company unless its annual
Minnesota premiums exceed $50,000,000 based on the most recent assessment base
of the Minnesota Comprehensive Health Association. For purposes of this determination, the premiums of a health plan
company include those of its affiliates.
Sec.
35. [62Q.80] COMMUNITY-BASED HEALTH CARE COVERAGE PROGRAM.
Subdivision
1. Scope. (a) A community-based health care
initiative may develop and operate a community-based health care coverage
program that offers to eligible individuals and their dependents the option of
purchasing through their employer health care coverage on a fixed prepaid basis
without meeting the requirements of chapter 60A, 62A, 62C, 62D, 62Q, or 62T, or
any other law or rule that applies to entities licensed under these chapters.
(b)
The initiative shall establish health outcomes to be achieved through the
program and performance measurements in order to determine whether these
outcomes have been met. The outcomes
must include, but are not limited to:
(1)
a reduction in uncompensated care provided by providers participating in the
community-based health network;
(2)
an increase in the delivery of preventive health care services; and
(3)
health improvement for enrollees with chronic health conditions through the
management of these conditions.
In establishing performance
measurements, the initiative shall use measures that are consistent with
measures published by nonprofit Minnesota or national organizations that
produce and disseminate health care quality measures.
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(c) Any program
established under this section shall not constitute a financial liability for
the state, in that any financial risk involved in the operation or termination
of the program shall be borne by the community-based initiative and the
participating health care providers.
Subd. 2. Definitions. For purposes of this section, the
following definitions apply:
(a)
"Community-based" means located in or primarily relating to the
community of geographically contiguous political subdivisions, as determined by
the board of a community-based health initiative that is served by the
community-based health care coverage program.
(b) "Community-based
health care coverage program" or "program" means a program
administered by a community-based health initiative that provides health care
services through provider members of a community-based health network or
combination of networks to eligible individuals and their dependents who are
enrolled in the program.
(c) "Community-based
health initiative" means a nonprofit corporation that is governed by a
board that has at least 80 percent of its members residing in the community and
includes representatives of the participating network providers and employers.
(d) "Community-based
health network" means a contract-based network of health care providers
organized by the community-based health initiative to provide or support the
delivery of health care services to enrollees of the community-based health
care coverage program on a risk-sharing or nonrisk-sharing basis.
(e) "Dependent"
means an eligible employee's spouse or unmarried child who is under the age of
19 years.
Subd. 3. Approval. (a) Prior to the operation of a
community-based health care coverage program, a community-based health
initiative shall submit to the commissioner of health for approval the
community-based health care coverage program developed by the initiative. The commissioner shall only approve a
program that has been awarded a community access program grant from the United
States Department of Health and Human Services. The commissioner shall ensure that the program meets the federal
grant requirements and any requirements described in this section and is
actuarially sound based on a review of appropriate records and methods utilized
by the community-based health initiative in establishing premium rates for the
community-based health care coverage program.
(b) Prior to approval, the
commissioner shall also ensure that:
(1) the benefits offered
comply with subdivision 8 and that there are adequate numbers of health care
providers participating in the community-based health network to deliver the
benefits offered under the program;
(2) the activities of the
program are limited to activities that are exempt under this section or
otherwise from regulation by the commissioner of commerce;
(3) the complaint resolution
process meets the requirements of subdivision 10; and
(4) the data privacy
policies and procedures comply with state and federal law.
Subd. 4. Establishment. (a) The initiative shall establish
and operate upon approval by the commissioner of health a community-based
health care coverage program. The
operational structure established by the initiative shall include, but is not
limited to:
(1) establishing a process
for enrolling eligible individuals and their dependents;
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(2) collecting
and coordinating premiums from enrollees and employers of enrollees;
(3)
providing payment to participating providers;
(4)
establishing a benefit set according to subdivision 8 and establishing premium
rates and cost-sharing requirements;
(5)
creating incentives to encourage primary care and wellness services; and
(6)
initiating disease management services, as appropriate.
(b)
The payments collected under paragraph (a), clause (2), may be used to capture
available federal funds.
Subd.
5. Qualifying
employees. To be eligible
for the community-based health care coverage program, an individual must:
(1)
reside in or work within the designated community-based geographic area served
by the program;
(2)
be employed by a qualifying employer or be an employee's dependent;
(3)
not be enrolled in or have currently available health coverage; and
(4)
not be enrolled in medical assistance, general assistance medical care,
MinnesotaCare, or Medicare.
Subd.
6. Qualifying
employers. (a) To qualify
for participation in the community-based health care coverage program, an
employer must:
(1)
employ at least one but no more than 50 employees at the time of initial
enrollment in the program;
(2)
pay its employees a median wage of $12.50 per hour or less; and
(3)
not have offered employer-subsidized health coverage to its employees for at
least 12 months prior to the initial enrollment in the program. For purposes of this section,
"employer-subsidized health coverage" means health care coverage for
which the employer pays at least 50 percent of the cost of coverage for the
employee.
(b)
To participate in the program, a qualifying employer agrees to:
(1)
offer health care coverage through the program to all eligible employees and
their dependents regardless of health status;
(2)
participate in the program for an initial term of at least one year;
(3)
pay a percentage of the premium established by the initiative for the employee;
and
(4)
provide the initiative with any employee information deemed necessary by the
initiative to determine eligibility and premium payments.
Subd.
7. Participating
providers. Any health care
provider participating in the community-based health network must accept as
payment in full the payment rate established by the initiative and may not
charge to or collect from an enrollee any amount in access of this amount for
any service covered under the program.
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Subd. 8. Coverage. (a) The initiative shall establish
the health care benefits offered through the community-based health care
coverage program. The benefits
established shall include, at a minimum:
(1)
child health supervision services up to age 18, as defined under section
62A.047; and
(2)
preventive services, including:
(i)
health education and wellness services;
(ii)
health supervision, evaluation, and follow-up;
(iii)
immunizations; and
(iv)
early disease detection.
(b)
Coverage of health care services offered by the program may be limited to
participating health care providers or health networks. All services covered under the program must
be services that are offered within the scope of practice of the participating
health care providers.
(c)
The initiative may establish cost-sharing requirements. Any co-payment or deductible provisions
established may not discriminate on the basis of age, sex, race, disability,
economic status, or length of enrollment in the program.
(d)
If the initiative amends or alters the benefits offered through the program
from the initial offering, the initiative must notify the commissioner of
health and all enrollees of the benefit change.
Subd.
9. Enrollee
information. (a) The
initiative must provide an individual or family who enrolls in the program a
clear and concise written statement that includes the following information:
(1)
health care services that are provided under the program;
(2)
any exclusions or limitations on the health care services offered, including
any cost-sharing arrangements or prior authorization requirements;
(3)
a list of where the health care services can be obtained and that all health
care services must be provided by or through a participating health care
provider or community-based health network;
(4)
a description of the program's complaint resolution process, including how to
submit a complaint; how to file a complaint with the commissioner of health;
and how to obtain an external review of any adverse decisions as provided under
subdivision 10;
(5)
the conditions under which the program or coverage under the program may be
canceled or terminated; and
(6)
a precise statement specifying that this program is not an insurance product
and, as such, is exempt from state regulation of insurance products.
(b)
The commissioner of health must approve a copy of the written statement prior
to the operation of the program.
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Subd. 10. Complaint resolution
process. (a) The initiative
must establish a complaint resolution process.
The process must make reasonable efforts to resolve complaints and to inform
complainants in writing of the initiative's decision within 60 days of
receiving the complaint. Any decision
that is adverse to the enrollee shall include a description of the right to an
external review as provided in paragraph (c) and how to exercise this right.
(b) The initiative must
report any complaint that is not resolved within 60 days to the commissioner of
health.
(c) The initiative must
include in the complaint resolution process the ability of an enrollee to
pursue the external review process provided under section 62Q.73 with any
decision rendered under this external review process binding on the initiative.
Subd. 11. Data privacy. The initiative shall establish data
privacy policies and procedures for the program that comply with state and
federal data privacy laws.
Subd. 12. Limitations on
enrollment. (a) The
initiative may limit enrollment in the program. If enrollment is limited, a waiting list must be established.
(b) The initiative shall not
restrict or deny enrollment in the program except for nonpayment of premiums,
fraud or misrepresentation, or as otherwise permitted under this section.
(c) The initiative may
require a certain percentage of participation from eligible employees of a
qualifying employer before coverage can be offered through the program.
Subd. 13. Report. (a) The initiative shall submit
quarterly status reports to the commissioner of health on January 15, April 15,
July 15, and October 15 of each year, with the first report due January 15,
2007. The status report shall include:
(1) the financial status of
the program, including the premium rates, cost per member per month, claims
paid out, premiums received, and administrative expenses;
(2) a description of the
health care benefits offered and the services utilized;
(3) the number of employers
participating, the number of employees and dependents covered under the
program, and the number of health care providers participating;
(4) a description of the
health outcomes to be achieved by the program and a status report on the
performance measurements to be used and collected; and
(5) any other information
requested by the commissioner of health or commerce or the legislature.
(b) The initiative shall
contract with an independent entity to conduct an evaluation of the program to
be submitted to the commissioners of health and commerce and the legislature by
January 15, 2009. The evaluation shall
include:
(1) an analysis of the
health outcomes established by the initiative and the performance measurements
to determine whether the outcomes are being achieved;
(2) an analysis of the
financial status of the program, including the claims to premiums loss ratio
and utilization and cost experience;
(3) the demographics of the
enrollees, including their age, gender, family income, and the number of
dependents;
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(4) the number
of employers and employees who have been denied access to the program and the
basis for the denial;
(5) specific analysis on
enrollees who have aggregate medical claims totaling over $5,000 per year,
including data on the enrollee's main diagnosis and whether all the medical
claims were covered by the program;
(6) number of enrollees
referred to state public assistance programs;
(7) a comparison of
employer-subsidized health coverage provided in a comparable geographic area to
the designated community-based geographic area served by the program,
including, to the extent available:
(i) the difference in the
number of employers with 50 or fewer employees offering employer-subsidized
health coverage;
(ii) the difference in
uncompensated care being provided in each area; and
(iii) a comparison of health
care outcomes and measurements established by the initiative; and
(8) any other information
requested by the commissioner of health or commerce.
Subd. 14. Sunset. This section expires December 31, 2011.
Sec. 36. Minnesota Statutes 2004, section 62S.05, is
amended by adding a subdivision to read:
Subd. 4. Extension of limitation
periods. The commissioner
may extend the limitation periods set forth in subdivisions 1 and 2 as to
specific age group categories in specific policy forms upon finding that the
extension is in the best interest of the public.
EFFECTIVE DATE. This section is effective July 1, 2006.
Sec. 37. Minnesota Statutes 2004, section 62S.08,
subdivision 3, is amended to read:
Subd. 3. Mandatory
format. The following standard
format outline of coverage must be used, unless otherwise specifically
indicated:
COMPANY NAME
ADDRESS - CITY AND STATE
TELEPHONE NUMBER
LONG-TERM CARE INSURANCE
OUTLINE OF COVERAGE
Policy Number or Group
Master Policy and Certificate Number
(Except for policies or
certificates which are guaranteed issue, the following caution statement, or
language substantially similar, must appear as follows in the outline of
coverage.)
CAUTION: The issuance of this long-term care
insurance (policy) (certificate) is based upon your responses to the questions
on your application. A copy of your
(application) (enrollment form) (is enclosed) (was retained by you when you
applied). If your answers are incorrect
or untrue, the company has the right to deny benefits or rescind your
policy. The best time to clear up any
questions is now, before a claim arises.
If, for any reason, any of your answers are incorrect, contact the
company at this address: (insert address).
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(1) This policy is
(an individual policy of insurance) (a group policy) which was issued in the
(indicate jurisdiction in which group policy was issued).
(2) PURPOSE OF OUTLINE OF
COVERAGE. This outline of coverage
provides a very brief description of the important features of the policy. You should compare this outline of coverage
to outlines of coverage for other policies available to you. This is not an insurance contract, but only
a summary of coverage. Only the
individual or group policy contains governing contractual provisions. This means that the policy or group policy
sets forth in detail the rights and obligations of both you and the insurance
company. Therefore, if you purchase
this coverage, or any other coverage, it is important that you READ YOUR POLICY
(OR CERTIFICATE) CAREFULLY.
(3) THIS PLAN IS INTENDED TO
BE A QUALIFIED LONG-TERM CARE INSURANCE CONTRACT AS DEFINED UNDER SECTION
7702(B)(b) OF THE INTERNAL REVENUE CODE OF 1986.
(4) TERMS UNDER WHICH THE
POLICY OR CERTIFICATE MAY BE CONTINUED IN FORCE OR DISCONTINUED.
(a) (For long-term care
health insurance policies or certificates describe one of the following
permissible policy renewability provisions:)
(1) (Policies and
certificates that are guaranteed renewable shall contain the following
statement:) RENEWABILITY: THIS POLICY
(CERTIFICATE) IS GUARANTEED RENEWABLE.
This means you have the right, subject to the terms of your policy,
(certificate) to continue this policy as long as you pay your premiums on time.
(Company name) cannot change any of the terms of your policy on its own, except
that, in the future, IT MAY INCREASE THE PREMIUM YOU PAY.
(2) (Policies and
certificates that are noncancelable shall contain the following statement:)
RENEWABILITY: THIS POLICY (CERTIFICATE) IS NONCANCELABLE. This means that you have the right, subject
to the terms of your policy, to continue this policy as long as you pay your
premiums on time. (Company name) cannot change any of the terms of your policy
on its own and cannot change the premium you currently pay. However, if your policy contains an
inflation protection feature where you choose to increase your benefits,
(company name) may increase your premium at that time for those additional
benefits.
(b) (For group coverage,
specifically describe continuation/conversion provisions applicable to the
certificate and group policy.)
(c) (Describe waiver of
premium provisions or state that there are not such provisions.)
(5) TERMS UNDER WHICH THE
COMPANY MAY CHANGE PREMIUMS.
(In bold type larger than
the maximum type required to be used for the other provisions of the outline of
coverage, state whether or not the company has a right to change the premium
and, if a right exists, describe clearly and concisely each circumstance under
which the premium may change.)
(6) TERMS UNDER WHICH THE POLICY
OR CERTIFICATE MAY BE RETURNED AND PREMIUM REFUNDED.
(a) (Provide a brief
description of the right to return -- "free look" provision of the
policy.)
(b) (Include a statement
that the policy either does or does not contain provisions providing for a
refund or partial refund of premium upon the death of an insured or surrender
of the policy or certificate. If the
policy contains such provisions, include a description of them.)
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of the House - 111th Day - Saturday, May 20, 2006 - Top of Page 8577
(5) (7) THIS IS NOT
MEDICARE SUPPLEMENT COVERAGE. If you
are eligible for Medicare, review the Medicare Supplement Buyer's Guide
available from the insurance company.
(a)
(For agents) neither (insert company name) nor its agents represent Medicare,
the federal government, or any state government.
(b)
(For direct response) (insert company name) is not representing Medicare, the
federal government, or any state government.
(6) (8) LONG-TERM CARE
COVERAGE. Policies of this category are
designed to provide coverage for one or more necessary or medically necessary
diagnostic, preventive, therapeutic, rehabilitative, maintenance, or personal
care services, provided in a setting other than an acute care unit of a
hospital, such as in a nursing home, in the community, or in the home.
This
policy provides coverage in the form of a fixed dollar indemnity benefit for
covered long-term care expenses, subject to policy (limitations), (waiting
periods), and (coinsurance) requirements. (Modify this paragraph if the policy
is not an indemnity policy.)
(7) (9) BENEFITS
PROVIDED BY THIS POLICY.
(a)
(Covered services, related deductible(s), waiting periods, elimination periods,
and benefit maximums.)
(b)
(Institutional benefits, by skill level.)
(c)
(Noninstitutional benefits, by skill level.)
(d)
(Eligibility for payment of benefits.)
(Activities
of daily living and cognitive impairment shall be used to measure an insured's
need for long-term care and must be defined and described as part of the
outline of coverage.)
(Any
benefit screens must be explained in this section. If these screens differ for different benefits, explanation of
the screen should accompany each benefit description. If an attending physician or other specified person must certify
a certain level of functional dependency in order to be eligible for benefits,
this too must be specified. If
activities of daily living (ADLs) are used to measure an insured's need for
long-term care, then these qualifying criteria or screens must be explained.)
(8) (10) LIMITATIONS AND
EXCLUSIONS:
Describe:
(a)
preexisting conditions;
(b)
noneligible facilities/provider;
(c)
noneligible levels of care (e.g., unlicensed providers, care or treatment
provided by a family member, etc.);
(d)
exclusions/exceptions; and
(e)
limitations.
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of the House - 111th Day - Saturday, May 20, 2006 - Top of Page 8578
(This section
should provide a brief specific description of any policy provisions which
limit, exclude, restrict, reduce, delay, or in any other manner operate to
qualify payment of the benefits described in paragraph (6) (8).)
THIS
POLICY MAY NOT COVER ALL THE EXPENSES ASSOCIATED WITH YOUR LONG-TERM CARE
NEEDS.
(9) (11) RELATIONSHIP OF
COST OF CARE AND BENEFITS. Because the
costs of long-term care services will likely increase over time, you should
consider whether and how the benefits of this plan may be adjusted. As applicable, indicate the following:
(a)
that the benefit level will not increase over time;