A bill for an act
relating to health; establishing the Health Care Commission; proposing coding for
new law as Minnesota Statutes, chapter 144I.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [144I.01] LEGISLATIVE FINDINGS.
new text end

new text begin The legislature finds while this state enjoys superior medical resources, the state has a
responsibility to ensure that these resources are available, accessible, and affordable to all
residents regardless of geography or financial status, so that all residents of this state will
benefit from high-quality health care. It is hereby declared to be in the public interest that
the state develop and maintain a state health care plan and that the health care system in the
state be regulated consistent with the state health care plan as provided in this chapter in
order to ensure consumers of health care services in this state have adequate, accessible,
convenient, and reliable health care services at reasonable rates, consistent with the financial
and economic requirements of health care companies and health care providers and their
need to construct, close, and consolidate health care facilities to provide health care services
and to avoid unnecessary duplication of facilities and services.
new text end

Sec. 2.

new text begin [144I.02] HEALTH CARE COMMISSION ESTABLISHED.
new text end

new text begin Subdivision 1. new text end

new text begin Establishment. new text end

new text begin There is created a Health Care Commission. The Health
Care Commission shall have and possess all of the rights and powers and perform all of the
duties vested in it by this chapter.
new text end

new text begin Subd. 2. new text end

new text begin Purpose. new text end

new text begin The purpose of the Health Care Commission is to promote the
development of a health care regulatory system that provides financial and geographic
access to quality health care services at a reasonable cost by developing a state health care
plan, facilitating development of regional health care plans, developing and implementing
the regulatory powers of the commission consistent with the state health care plan, and
issuing certificates of need based on the state health care plan.
new text end

new text begin Subd. 3. new text end

new text begin Members. new text end

new text begin (a) The Health Care Commission shall consist of seven members.
The terms of members shall be six years and until their successors have been appointed and
qualified, except that three of the initial appointments shall be six years, two of the initial
appointments shall be four years, and two of the initial appointments shall be two years.
Each commissioner shall be appointed by the governor with the advice and consent of the
senate. The governor shall designate the length of term of each initial appointment prior to
the nominee being qualified. At least one commissioner must have been domiciled at the
time of appointment outside the seven-county metropolitan area. For purposes of this
subdivision, "seven-county metropolitan area" means Anoka, Carver, Dakota, Hennepin,
Ramsey, Scott, and Washington Counties.
new text end

new text begin (b) When selecting commissioners, the governor shall give consideration to persons who
have engaged in the profession of health care economics, health care administration,
medicine, nursing, public accounting, finance, and law, as well as being representative of
the general public.
new text end

new text begin Subd. 4. new text end

new text begin Removal; vacancy. new text end

new text begin The removal of members and filling of vacancies on the
commission shall be as provided in section 15.0575.
new text end

new text begin Subd. 5. new text end

new text begin Chair. new text end

new text begin The governor shall select one of the commissioners to serve as the chair
for a term concurrent with that of the governor. If a vacancy occurs in the position of chair,
the governor shall select a new chair to complete the unexpired term.
new text end

new text begin Subd. 6. new text end

new text begin Powers and duties of chair. new text end

new text begin The chair shall be the principal executive officer
of the commission and shall preside at meetings of the commission. The chair shall organize
the work of the commission and may make assignments to commission members, appoint
committees, and give direction to the commission staff through the executive secretary
subject to the approval of the commission.
new text end

Sec. 3.

new text begin [144I.03] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of this chapter, the terms defined in this section
have the meanings given.
new text end

new text begin Subd. 2. new text end

new text begin Health care company. new text end

new text begin "Health care company" means persons, corporations,
or other legal entities and their lessees, trustees, and receivers, engaged in the business of
owning, operating, maintaining, or controlling equipment or facilities in this state for
furnishing health care services in Minnesota.
new text end

new text begin Subd. 3. new text end

new text begin Health care facility. new text end

new text begin "Health care facility" means a structure or structures
available for use within this state as a hospital, clinic, psychiatric residential treatment
facility, birth center, outpatient surgical center, comprehensive outpatient rehabilitation
facility, outpatient physical therapy or speech pathology facility, end-stage renal dialysis
facility, medical laboratory, pharmacy, radiation therapy facility, diagnostic imaging facility,
medical office building, residence for nurses or interns, residential hospice, prescribed
pediatric extended care facility, or other facility related to the delivery of health care services.
new text end

new text begin Subd. 4. new text end

new text begin Health care provider. new text end

new text begin "Health care provider" or "provider" means a person
or organization other than a nursing home that provides health care or medical care services
within Minnesota for a fee and is eligible for reimbursement under the medical assistance
program under chapter 256B. For purposes of this subdivision, "for a fee" includes traditional
fee-for-service arrangements, capitation arrangements, and any other arrangement in which
a provider receives compensation for providing health care services or has the authority to
directly bill a group purchaser, health carrier, or individual for providing health care services.
For purposes of this subdivision, "eligible for reimbursement under the medical assistance
program" means that the provider's services would be reimbursed by the medical assistance
program if the services were provided to medical assistance enrollees and the provider
sought reimbursement, or that the services would be eligible for reimbursement under
medical assistance except that those services are characterized as experimental, cosmetic,
or voluntary.
new text end

new text begin Subd. 5. new text end

new text begin Health care service. new text end

new text begin (a) "Health care service" means:
new text end

new text begin (1) a service or item that would be covered by the medical assistance program under
chapter 256B if provided in accordance with medical assistance requirements to an eligible
medical assistance recipient; and
new text end

new text begin (2) a service or item that would be covered by medical assistance except that it is
characterized as experimental, cosmetic, or voluntary.
new text end

new text begin (b) Health care service does not include retail, over-the-counter sales of nonprescription
drugs and other retail sales of health-related products that are not generally paid for by
medical assistance and other third-party coverage.
new text end

Sec. 4.

new text begin [144I.04] CONFLICT OF INTEREST.
new text end

new text begin No person, while a member of the commission, while acting as executive secretary of
the commission, or while employed in a professional capacity by the commission, shall
receive any income, other than dividends or other earnings from a mutual fund or trust if
these earnings do not constitute a significant portion of the person's income, directly or
indirectly from any health care company or other organization subject to regulation by the
commission.
new text end

Sec. 5.

new text begin [144I.05] EXECUTIVE SECRETARY; COMMISSION EMPLOYEES.
new text end

new text begin Subdivision 1. new text end

new text begin Selection of executive secretary.