HomeMy WebLinkAbout2020 05-11 CCPCouncil Study Session
V I RT UA L meeting being
conducted by electronic
means in accordance with
Minnesota S tatutes, section
13D.021 P ublic portion
available for connection via
telephone Dial: 1-312-535-
8110 Access Code:
281244297
May 11, 2020
AGE NDA
The City C ounc il requests that attendees turn off cell phones and pagers during the meeting. A copy
of the full C ity Council pac ket is available to the public. The packet ring binder is located at the
entrance of the council chambers.
1.City Council Discussion of Agenda Items and Questions - 6 p.m.
2.M iscellaneous
3.Discussion of Work S ession Agenda Item as T ime P ermits
4.Adjourn
C IT Y C O UNC IL
M E E T I NG
V I RT UA L meeting being
conducted by electronic
means in accordance with
Minnesota S tatutes, section
13D.021 P ublic portion
available for connection via
telephone Dial: 1-312-535-
8110 A ccess Code:
281244297
May 11, 2020
AGE NDA
1.Informal Open F orum with City Council - 6:45 p.m. Individuals wanting to
participate in Open Forum, please dial: 1-312-535-8110 Access C ode: 801
615 321
Provides an opportunity for the public to address the Counc il on items which are not on the
agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to
make personal attac ks, to air personality grievanc es, to make politic al endorsements, or for
political c ampaign purposes. C ounc il Members will not enter into a dialogue with presenter.
Questions from the Council will be for clarific ation only. Open Forum will not be used as a time
for problem solving or reacting to the c omments made but, rather, for hearing the presenter for
informational purposes only.
2.Invocation - 7 p.m. (M ayor E lliott)
3.C all to Order Regular Business M eeting
The C ity Council requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full C ity Counc il packet is available to the public. The packet ring binder is located
at the entrance of the c ouncil chambers.
4.Roll Call
5.P ledge of Allegiance
6.Approval of Agenda and C onsent Agenda
The following items are c onsidered to be routine by the C ity Council and will be enac ted by one
motion. There will be no separate discussion of these items unless a C ounc ilmember so
requests, in whic h event the item will be removed from the c onsent agenda and c onsidered at
the end of C ounc il Consideration I tems.
a.A pproval of Minutes
- Motion to approve the foll owi ng minutes:
March 17, 2020 Speci al Ci ty Counci l
March 23, 2020 Speci al Ci ty Counci l
Apri l 6, 2020 Executi ve Session Special
Apri l 10, 2020 Conti nued Executi ve Sessi on Speci al
Apri l 12, 2020 Conti nued Executi ve Sessi on Speci al
b.A pproval of L icenses
- Moti on to approve l icenses as presented
c.O rdinance A mending Chapter 3 of the C ity C ode of Ordinances
- Motion to approve the fi rst reading of an Ordinance Amending Chapter 3
of the City Code of Ordi nances regarding state bui lding code and calling for
a public hearing and second reading to be held on J une 8, 2020.
d.Resolution E xpressing S upport for C onverting Highway 252 F rom an at-grade
E xpressway to a Grade S eparated F reeway
- Motion to approve a resolution expressing support for converti ng Highway
252 from an at-grade expressway to a grade separated freeway
e.Resolution I dentif ying the Need for L ivable C ommunities D emonstration
A ccount (L C D A) Funding and A uthorizing an Application for Grant F unds
- Motion to approve the resoluti on identifying the need for Livable
Communities Demonstration Account (L CDA) funding and authorizing the
submission of an application for grant funds.
f.Resolution I n S upport of the Medicare for A ll A ct of 2019 and Resolution
S upporting the MN Health P lan
- Approve a resolution supporting the Medicare for All Act of 2019
g.Resolution Authorizing L etter of S upport for L egislation to P rovide F unding
f or S mall Businesses
- Motion to approve a resol ution authorizing a letter of support for
legi slation providing funding for small businesses
7.P resentations/P roclamations/Recognitions/D onations
a.Recognition of Police Week and P eace Officer's Memorial D ay
- Motion to approve a resoluti on recognizing Police Week and May 15,
2020 as Peace Officer's Memorial Day
b.T he 2020 B iennial B ody Worn Camera A udit
-Moti on to approve the Brookl yn Center Police 2020 Bi ennial Body Worn
Camera Audit
8.P ublic Hearings
9.P lanning C ommission Items
10.C ouncil Consideration Items
a.Resolution to A pprove a G rant P rogram to S upport L ocal Nonprofit
O rganizations
- Motion to approve a resolution approving establishment of the local nonprofit
emergency grant program
11.C ouncil Report
12.Adjournment
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :D r. Reggie Edw ards , D eputy C ity M anager
BY:Barb S uciu, City Clerk
S U B J E C T:A pprov al of M inutes
B ackground:
I n accordance w ith Minnes ota S tate S tatute 1 5 .17, the official records of all mee3 ngs mus t be documented
and approved by the gov erning body.
B udget I ssues:
- None
S trate gic Priories and Values:
O pera3 onal E xcellence
AT TA C H M E N TS :
D escrip3on Upload D ate Ty pe
3-17 S pecial M ee3 ng 5/5/2020 Backup M aterial
3-23 M inutes 5/5/2020 Backup M aterial
4-6 Execu3ve S es s ion 5/5/2020 Backup M aterial
4-10 Execu3 ve S es s ion C on3nua3on 5/5/2020 Backup M aterial
4-12 Execu3 ve S es s ion C on3nua3on 5/5/2020 Backup M aterial
03/17/20 -1- DRAFT
MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
SPECIAL EMERGENCY MEETING
MARCH 17, 2020
CITY HALL
CALL TO ORDER
The Brooklyn Center City Council met in Special Emergency Meeting called to order by Mayor
Mike Elliott at 6:00 p.m.
ROLL CALL
In light of the alarming increase in COVID-19 cases in Minnesota and Governor Walz’
emergency declaration, the Mayor, Councilmembers, and City Attorney attended this meeting
telephonically.
Mayor Mike Elliott (via telephone) and Councilmembers Marquita Butler (via telephone), April
Graves (via telephone), Kris Lawrence-Anderson (via telephone), and Dan Ryan (via telephone);
and City Attorney Troy Gilchrist (via telephone). Present were: City Manager Curt Boganey,
Deputy City Manager Reggie Edwards, and City Clerk Barb Suciu.
1. CONSIDER RESOLUTION NO. 2020-XX ACCEPTING A DECLARATION OF
LOCAL EMERGENCY, PURSUANT TO MINNESOTA STATE STATUTE
SECTION 1229, DUE TO COVID-19 HEALTH PANDEMIC
City Manager Curt Boganey stated this special meeting has been called to provide the City
Council with an update on actions taken by the City in response to the COVID-19 pandemic, and
what is expected to unfold in the coming weeks and months. He added the Governor of
Minnesota, as well as the President, have declared a state of emergency, as well as several local
cities. He noted a local emergency is being declared for the City of Brooklyn Center, which will
trigger other provisions for emergency planning. The City Council has received a copy of the
Declaration for their consideration and approval.
Mayor Elliott stated the Declaration allows the City Manager and the Fire Chief, who will serve
as Emergency Manager, to take actions and implement an appropriate emergency plan to contain
and mitigate the virus in an expeditious manner. The Declaration suspends compliance with City
and State laws, and other laws, related to compliance with policies and procedures in an effort to
03/17/20 -2- DRAFT
protect the public health, safety and welfare. The emergency Declaration suspends all City
meetings including City Council, EDA and all Boards, Commissions and Committees, until the
end of April 2020. Special meetings may be called that require action but must be conducted via
phone or other electronic means. All City buildings will be closed as of March 18, 2020 with the
exception of the Police Department until the beginning of April 2020 and can be extended.
Mayor Elliott stated the emergency Declaration allocates resources to local food emergency
agencies that serve Brooklyn Center residents. This includes financial support for food
assistance of $10,000 to CEAP, CAPI and West African Family & Children’s Services. These
organizations have experienced a significant increase in demand for food, and they along with
other food shelves are working to deliver food to senior citizens and other vulnerable community
members adversely affected by the pandemic. These organizations have requested assistance
from the City of Brooklyn Center.
Mayor Elliott stated the emergency Declaration directs the City Manager to work with City Staff
to establish a program that allows City employees to volunteer to use City vehicles to assist in
delivering food. Those who assist in this effort will follow the most current recommendations of
health and safety officials, establishing protocols including curbside delivery.
Mayor Elliott stated the emergency Declaration encourages City departments to evaluate and
make recommendations to the City Manager regarding deployment of resources for the purpose
of helping residents during this period of emergency. The local situation is evolving quickly,
from one day to the next, and the City will take additional steps as needed to address issues as
they arise. The emergency Declaration will remain in place as long as the Governor of
Minnesota maintains his executive order declaring a peacetime emergency.
Mayor Elliott stated this Declaration is effective for three days pending City Council action
authorizing its extension. A Resolution accompanies the Declaration which includes a
recommendation that groups of no larger than 10 people will gather. He added medical
professionals recommend no more than 5 people.
Mayor Elliott stated this unprecedented situation is evolving rapidly, and the City of Brooklyn
Center will need to be able to respond and make decisions based on fast-moving
recommendations and guidelines. He stressed the importance of taking measures to prevent as
many people as possible from getting the virus. Medical professionals have indicated it may be
impossible to prevent the virus, but people can take measures to slow its pace and reduce
demands on the health care system.
Mr. Boganey stated a message to City employees was distributed on Monday March 16, 2020.
He added a copy of this message has been provided to the City Council. He noted directors and
employees are encouraged to work at home, to reinforce the message of social distancing and do
whatever possible to prevent the virus from spreading.
03/17/20 -3- DRAFT
Mr. Boganey stated with the closing of all City buildings, it should be noted that this includes
closure of the liquor store and Earle Brown Heritage Center, effective March 18, 2020. A
program has been established wherein City employees will continue to be paid in the immediate
future, and options are being reviewed to provide funding for employee salaries. There was
concern that employees would want to come to work out of concern that they will not be paid.
He noted all additional costs directly related to the emergency Declaration are being tracked and
recorded in the event that there will be reimbursements available.
Mr. Boganey stated the City’s essential services will continue but may be modified or
discontinued. He added phone, email and online services will be available. Non-essential
services will be deferred for the time being.
Mayor Elliott called for comments and discussion.
Councilmember Ryan asked whether the Governor’s state of emergency is timed at 90 days.
City Attorney Troy Gilchrist stated the Governor’s Order indicated the State of Emergency will
be ongoing until there is Declaration of Repeal.
Councilmember Ryan asked whether the City’s Declaration must be consistent with State
statutes that specify conditions and the authority of the State’s emergency Declaration.
Mr. Gilchrist stated the Resolution that is being considered at tonight’s meeting, which requires
City Council approval, will tie the City’s Declaration of local emergency to the Governor's
Declaration.
Councilmember Graves asked how many City employees are actually not able to work from
home and are coming into work. She stressed the importance of ensuring that the necessary
precautions are taken at City Hall.
Mr. Boganey stated City Staff are currently working on getting that information, including the
number of laptops that will be available for employees who need them to work from home. He
added the question is whether it will be practical for all employees to work from home. He
agreed to provide more information.
Councilmember Graves requested the City Council be notified if there’s anything that needs to
be done to ensure that City employees’ needs are met. Mr. Boganey agreed. He added the
Declaration provides the City with the authority to make certain decisions without prior approval
from the City Council.
Councilmember Graves stated, regarding evictions, whether the City will be able to prevent
people from being displaced from their homes during this period. She asked whether it will be
necessary to work with City or State policy makers to push that to a higher level.
03/17/20 -4- DRAFT
Mayor Elliott stated the City has taken steps to communicate with Hennepin County and other
government units to prevent displacement. He added the emergency Declaration calls upon the
Sheriff to not participate in the eviction of City residents. He noted, in addition, fees, penalties
and administrative costs will be suspended, that would normally have been charged, and water
will not be shut off, which is something the City does not do anyway.
Mayor Elliott stated City Staff plans to connect with Comcast and other utilities providers to
ensure that there is a plan in place to continue to provide utilities.
Councilmember Graves asked about support for small businesses. She stated there are some
links with information about supporting small businesses on the City website.
Mayor Elliott stated those discussions are still pending, but he has been contacted by local small
businesses asking for financial assistance from the City. He added small business owners are
being asked to stay home, and they are isolated and have no income. He noted he has some ideas
about how to address that need.
Councilmember Ryan stated the Governor has indicated that there are plans at the State level to
increase unemployment insurance and other financial assistance programs. He added there has
also been discussion at the federal level regarding transfer payments to workers, and City Staff
can monitor those developments. He noted the City can prevent evictions, waive administrative
fees and late payments, and other measures that are appropriate at the City level. He noted
financial support for workers is beyond the City’s means and should be handled at the State and
Federal levels.
Mayor Elliott stated there have been indications that there will be reimbursements for COVID-19
related expenses that the City undertakes. He stressed the importance of helping residents in the
community who are in dire need, and to think broadly about community support.
Councilmember Butler stated there is information about resources for families like food shelves,
and restaurants that are providing free meals for children, that have been popping up on social
media. She added this type of information can be added to the City website.
Mr. Boganey stated City Staff will do everything they can to get that type of information. He
requested that the City Council send him an email if anyone hears of something in the
community that should be on the website.
Councilmember Lawrence-Anderson asked about Item 5 in the declaration, regarding
encouraging stores to put limits on the amount of goods they can purchase. She asked whether
City Staff have reached out to Cub Foods and Walmart yet. Mr. Boganey stated City Staff will
be doing that tomorrow, after the emergency Declaration goes into effect.
03/17/20 -5- DRAFT
Councilmember Lawrence-Anderson stated Mayor Elliott had mentioned financial assistance for
local organizations. She asked where this funding will come from within the City budget.
Mr. Boganey stated a General Fund allocation of $150,000 has been set aside for contingencies,
and these organizations qualify for funding under that definition.
Mayor Elliott stated it is hoped that the City of Brooklyn Park will contribute funding to these
organizations as well, as this is an ongoing situation. He added a phone meeting is planned with
local area Mayors to talk about actions that other cities are taking. He noted a similar phone
meeting with Hennepin County will also be planned. A conference call is planned for Thursday
March 19, 2020 with leaders of local organizations to discuss mitigation strategies, how to work
together as a community.
Mayor Elliott stated residents who live in multi-family housing are of great concern, and
discussions should be planned to consider ways of ensuring that those residents are safe, and
their needs are met.
Councilmember Lawrence-Anderson stated providing $10,000 in assistance to local
organizations is a good initial outlay, and the City Council can act if more assistance is needed.
She added the immediate future is very uncertain, and the City should attempt to retain as much
of its contingency funding as possible, since it is impossible to know how much will be
expended.
Mayor Elliott agreed, adding the City should be mindful of the amount of contingency funding.
He added there may be some cost savings associated with the closure of City buildings and
facilities. He added the intention is to continue to pay City Staff, including hourly staff.
Mr. Boganey stated the City is confident that all employees will have 2 weeks of direct pay
assuming they will not be working. He added the majority of employees will continue to work
remotely. He noted part-time hourly employees, at the liquor store and Earle Brown Heritage
Center can be paid for two weeks although they are not working.
Mr. Boganey stated it is important to note that there will come a time when it will be difficult
and costly to pay employees who are not working. He added it will become necessary to make
some hard choices with respect to employees who are not working. He noted, however, it is
anticipated that the State of Minnesota will make changes to unemployment laws that will
provide some relief. The situation can be reviewed again in two weeks.
Councilmember Ryan moved and Councilmember Graves seconded to adopt RESOLUTION
NO. 2020-XX Accepting a Declaration of Local Emergency, pursuant to Minnesota State Statute
Section 1229, due to COVID-19 health pandemic.
03/17/20 -6- DRAFT
Upon vote via phone, Mayor Elliott and Councilmembers Butler, Graves, Lawrence-Anderson
and Ryan voted aye. Motion passed unanimously.
MOTION TO SUSPEND RULES
Mayor Elliott requested a motion to extend the meeting past one hour.
Councilmember Butler moved, and Mayor Elliott seconded, to extend the meeting past 7:00 p.m.
Councilmember Ryan asked what the purpose of extending the meeting is. Mayor Elliott stated
the City Council should conclude the discussion regarding next steps.
Upon vote via phone, Mayor Elliott and Councilmembers Butler, Graves, Lawrence-Anderson
and Ryan voted aye. Motion passed unanimously.
2. DISCUSSION REGARDING NEXT STEPS
Mayor Elliott stated the City will work with other government agencies and local municipalities
to coordinate efforts related to long- and short-term plans to address the pandemic at the local
level. He added City Staff will continue to meet as needed to ensure that City residents are kept
informed about the latest updates, via the City’s website as well as social media. He noted it will
be important to provide more information rather than not enough.
Mayor Elliott stated City Staff are working with County and State representatives, as well as the
City Attorney, to figure out how to postpone the upcoming Board of Appeals and Equalization
meetings in April 2020, which are governed by State statute.
Mayor Elliott stated the City Council will hold a Regular Session meeting on Monday, March
23, 2020 to address items that are time-sensitive and for which action is required.
Mr. Boganey stated, as the City Council is aware, the City of Brooklyn Center has a contractual
relationship with a health services provider that can be a resource for the general public. He
added City Staff is working with the provider to determine whether they can provide support
related to mental health issues, in addition to other services offered by the City, with regard to
COVID-19.
Mr. Boganey stated he has a meeting scheduled with the School Superintendent which will be
rescheduled to May 2020. He added the next City Council meeting will be scheduled in June
2020. He noted he fully agrees with the Mayor’s comments regarding the sharing of as much
information as possible with City Staff, the City Council and the City’s residents.
Councilmember Graves stated she appreciates Mr. Boganey’s comments about mental health
concerns during this crisis. She added she hopes the health services agency can be secured as a
03/17/20 -7- DRAFT
resource, and other national or state-wide information related to mental health wellness can be
included on the City’s website. She noted some School Districts are providing lunches for
students who need them, and that information should be on the City’s website. She stressed the
importance of spreading the news.
Councilmember Graves stated there has been a local and national initiative to release non-violent
offenders from jail. She asked whether Brooklyn Center’s Police Officers are making changes,
and what equipment they are using to do their jobs safely and effectively.
Mr. Boganey stated all City employees who deal with the general public are required to wear
personal protective equipment.
Mayor Elliott stated there has not been a discussion yet at the City level regarding release of non-
violent offenders. He added there will be an effort to work with the Sheriff’s Department to
address these concerns. He noted all members of the community are at risk, but especially those
who live in close proximity to each other.
Mr. Boganey stated the City will reconsider how Police Officers are engaged in arrests. He
added the arrest of non-violent offenders, and sending them to jail, would be a bad idea, and a
low priority. He noted, in addition, resources are limited, and there may be fewer police officers
to do critical work.
Councilmember Graves requested that the City Council receive updates as often as they come,
and also be involved in electronic meetings if possible. She stated she is involved in leading an
emergency response team at the City of Minneapolis, to determine how the City and the Health
Department can work together in collaboration with some other groups. She added she can
provide details on these efforts to the City Council as they develop.
Mayor Elliott agreed to include the City Council in communications related to small businesses
and health support.
Councilmember Lawrence-Anderson requested clarification regarding Item 11 in the
Declaration, which indicates that all City meetings will be cancelled through the end of April
2020 except Special Meetings that can be conducted via telephone or other electronic means.
She asked whether City Council meetings will still be held, but via phone or video.
Mayor Elliott stated there will be no meetings through the end of April 2020, but the City
Council may have several Special Meetings to address time sensitive issues.
Mr. Boganey agreed, adding City Staff have been instructed to provide any items that will need
to be addressed by the City Council before April.
03/17/20 -8- DRAFT
Councilmember Lawrence-Anderson asked whether there will be a City Council meeting on
Monday, May 23, 2020, as previously discussed.
Mayor Elliott confirmed there will be a City Council meeting on May 23 that will be conducted
electronically.
Councilmember Lawrence-Anderson asked whether City Staff still wanted to update the City
Council’s electronic tablets, as previously indicated.
Mr. Edwards stated City Staff would like to collect the Councilmembers’ tablets to test them for
video capability.
Mr. Boganey stated Councilmembers can drop off their tablets, or someone from City Staff can
pick it up.
Councilmember Lawrence-Anderson agreed to drop off her tablet on Thursday. Mr. Boganey
requested that she send an email or call City Staff so someone will be there to receive it.
3. ADJOURNMENT
Councilmember Lawrence-Anderson moved and Councilmember Butler seconded adjournment
of the City Council meeting at 7:08 p.m.
Upon vote via phone, Mayor Elliott and Councilmembers Butler, Lawrence-Anderson and Ryan
voted aye. Councilmember Graves abstain. Motion passed unanimously.
03/23/20 -1- DRAFT
MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
CITY COUNCIL MEETING
MARCH 23, 2020
WEBEX
City Manager Curt Boganey stated the Local Board of Appeal and Equalization meeting will be
scheduled for April 6, 2020 at 7:00 p.m. He added the City is required by State statute to
reschedule the Board meeting after it has been cancelled.
1. INVOCATION
Councilmember Butler offered the following quotes as an Invocation:
In commemoration of Women's History Month:
" Each time a woman stands up for herself, without knowing it or claiming
it, she stands up for all women." -Maya Angelou
For reflection during this time of crisis:
"It is our attitude at the beginning of a difficult task which more than
anything else will affect a successful outcome." -Roland James
2. CALL TO ORDER REGULAR BUSINESS MEETING
The Brooklyn Center City Council meeting was called to order by Mayor Mike Elliott at 6:00 p.m.
The meeting was conducted by Webex.
3. ROLL CALL
By Webex: Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, and Dan
Ryan. Councilmember Kris Lawrence-Anderson was not reachable. Also by Webex: City
Manager Curt Boganey, Deputy City Manager Reggie Edwards, and City Clerk Barb Suciu and
City Attorney Troy Gilchrist.
A member of the public called in by Webex to listen to the meeting.
4. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was recited.
5. APPROVAL OF AGENDA AND CONSENT AGENDA
03/23/20 -2- DRAFT
Councilmember Graves moved and Councilmember Ryan seconded to approve the Agenda and
Consent Agenda, and the following consent items were approved:
5a. APPROVAL OF MINUTES
1. March 9, 2020 Study Session
2. March 9, 2020 Regular Session
5b. LICENSES
MECHANICAL LICENSE
K & H Heating, Air Conditioning & Plumbing Inc 4205 Hwy 14 W
Rochester 55901
KB Service Co. 430 County Rd D East
Little Canada 55117
RENTAL LICENSE
INITIAL (TYPE III – one-year license)
3501 62nd Ave N Doreen Kalema / Butterfly Bound Care
1344 68th Ln N Syewon Weah
7101 Girard Ave N Sesan Ogunnuran / EE&J Investment LLC
INITIAL (TYPE II – two-year license)
6813 Noble Ave N Janee Garrison & Jerome English
3212 Quarles RD HPA US1 LLC / Pathlight
RENEWAL (TYPE IV – one-year license)
6725 Bryant Ave N Vong Duong ‐ missing CPTED
5834 Camden Ave N FYR SFR Borrower LLC
6342 Dupont Ave N Ceberus SFR Holdings ‐ missing CPTED
6736 Perry Ave N Mark Coville ‐ missing CPTED
RENEWAL (TYPE III – one-year license)
4506 65th Ave N Virginia Lazo ‐ missing CPTED
7212 Lee Ave N Qiang Fang
7243 Riverdale Rd IH3 Property Illinois LP ‐ missing CPTED
RENEWAL (TYPE II – two-year license)
5329‐33 Brooklyn Blvd Tech P Ung
5228 Ewing Ave N IH3 Property Illinois LP ‐ met action plan
4207 Lakeside Ave #138 Patrick Hall
5322 Logan Ave N Mary Jo Schwartz ‐ met action plan
03/23/20 -3- DRAFT
RENEWAL (TYPE I – three-year license)
6835 Noble Ave N Robert Berglund
1900 Brookview Dr IH3 Property Illinois LP
5959 Camden Ave N Todd Havisto & Dave Baumann
7007 James Ave N Infinite Property
4207 Lakeside Ave #224 Marina Feldman
7141 Newton Ave N IH3 Property Illinois LP
5814 Pearson Dr IH3 Property Illinois LP
5c. SUPPORT FOR THE CITY CLERK TO APPLY FOR THE MCFOA
REGION IV DIRECTOR POSITION
Vote on the motion by Webex: Mayor Elliott and Councilmembers Ryan, Graves, and Butler voted
aye.
Motion passed unanimously.
6. PRESENTATIONS/PROCLAMATIONS/RECOGNITIONS/DONATIONS
-None.
7. PUBLIC HEARINGS
-None.
8. PLANNING COMMISSION ITEMS
8a. PLANNING COMMISSION APPLICATION 2020-001 - SPECIAL USE PERMIT
AND PARKING VARIANCE LOCATED AT 4900 FRANCE AVENUE N.
Community Development Director Meg Beekman reviewed a request for a Special Use Permit and
parking variance for a mosque and community center at 4900 France Avenue. The Planning
Commission, at its February 13, 2020 meeting, was unable to recommend approval or denial of
this application, as there was a split vote. At its March 9, 2020 meeting, the City Council
unanimously approved to direct City Staff to prepare a Resolution for approval of these requests.
Ms. Beekman stated concerns were expressed regarding the viability of the subject property for
the proposed use, in terms of the amount of investment that will be needed, and the fact that both
buildings on the property are currently unfit for occupancy. The City building official is working
with the applicant to determine the changes that are necessary for a Certificate of Occupancy to be
issued.
Ms. Beekman stated the primary concern for the long-term use of this property by the mosque
community is the lack of adequate on-site parking. The Planning Commission noted the
03/23/20 -4- DRAFT
importance of a barrier between the parking lot and the railway line, and the applicant has stated
their intention to do this anyway. The Planning Commission raised concerns about the proposed
shuttle service to bring community members to the property from an offsite parking lot.
Ms. Beekman stated the City Council directed City Staff to prepare findings that support approval
of this request. She added the Resolution that has been provided for the City Council’s review
includes Findings of Fact and a number of conditions that would mitigate concerns discussed at
the staff level and at the Planning Commission meeting, as well as the City Council’s comments.
Ms. Beekman stated noted the applicant is required to have a parking plan on file with the City to
accommodate parking needs. The religious services must be scheduled 30 minutes apart to allow
for the parking lot to clear out. The applicant is required to have an on-site parking attendant,
which they have already discussed as part of their traffic study.
Ms. Beekman stated there is a condition related to submission of architectural plans as there is
currently not a clear plan for the interior of the building, and the building shall not be occupied
until a Certificate of Occupancy is issued. She added there is an existing apartment unit located
in the circular building, which is a pre-existing, non-conforming use, and will no longer be
allowed.
Ms. Beekman stated conditions related to the site plan include landscaping requirements,
accessibility, relocation of an existing trash enclosure and restriping of the parking lot. A fence is
required to be installed along the property’s south perimeter. A parking agreement for shuttle
service to the site from an off-site lot must be on file with the City.
Ms. Beekman stated City Staff recommends that the City Council adopt the Resolution approving
Special Use Permit and parking variance to allow the applicant to operate the mosque and
community center, subject to the findings of approval outlined in the staff report.
Councilmember Butler requested clarification regarding the requirement for approval from the
City for “major changes”, as referenced in the Findings of Fact.
Ms. Beekman that is standard language that the City uses in all its approvals to restrict amendments
to conditions of the approval. She added this relates to major modifications to items included in
the Special Use Permit, including site plan amendments or adjustments, changes to the interior of
the building, or modifications to the exterior.
Councilmember Butler asked whether the requirement of the onsite parking attended was added
by the applicant. Ms. Beekman stated the applicant provided that in their traffic plan as a solution
to manage potential overflow due to insufficient parking.
Councilmember Ryan stated the City Council realizes that the site is challenging but the applicant
is very intent on making this work and believes the site can meet their needs. He added the City
03/23/20 -5- DRAFT
Council is amenable and sympathetic to the applicant’s desire to remain in the community. He
asked what remedy the City has if the applicant fails to meet parking requirements.
City Attorney Troy Gilchrist stated, as with any Special Use Permit, violation of conditions of
approval would result in an effort to bring them into compliance, and if it continues, move into a
formal written notice of the violation. He added a hearing would be scheduled and held, and
decision made regarding whether the revoke the Special Use Permit.
Councilmember Butler moved and Councilmember Ryan seconded to adopt RESOLUTION NO.
2020-36 Approving Planning Commission Application No. 2020-001 Request for a Special Use
Permit and Parking Variance Located at 4900 France Avenue N.
Vote on the motion by Webex: Mayor Elliott and Councilmembers Ryan, Graves, and Butler voted
aye.
Motion passed unanimously.
9. COUNCIL CONSIDERATION ITEMS
-None.
10. COUNCIL REPORT
Councilmember Ryan stated he recently attended the National League of Cities conference and
received notice that several attendees from Colorado tested positive for COVID-19. He added he
has been self-isolated at home but has not had any indication of symptoms.
Councilmember Ryan stated he met recently with staff representatives of Senator Smith and
Representative Oman, to update them and provide information on priority items from the City
Council’s 19-Point List. He added these included CDBG funding, as it is the largest grant received
by the City of Brooklyn Center, as well as affordable housing funding, transportation funding, and
Social Security. He noted that he indicated that the City Council hopes that there will be an
ongoing conversation on all of these issues. He agreed to provide additional details to Mr.
Boganey.
Mayor Elliott thanked Councilmember Ryan for his report. He added Social Security is an
important issue not just for those who receive direct benefits, but also for financial support for
families, and to ensure that Social Security is solvent for future beneficiaries.
Mayor Elliott stated he recently received communication from the U.S. Congress of Mayors,
encouraging local mayors to request support for direct aid to cities from their local legislators. He
added he subsequently reached out to the offices of Senators Smith and Klobuchar regarding this
issue.
03/23/20 -6- DRAFT
Mayor Elliott expressed support for the moratorium on evictions that was recently declared by
Minnesota’s Governor, Tim Walz. He added all other types of payments should also be frozen,
and the City should continue to advocate for its residents, to ensure that credit reports are not
adversely affected by the current worldwide crisis. He expressed concern that many of Brooklyn
Center’s residents rely on public transport, which is not available to them. He also expressed
concern about the City’s multi-family residential buildings, and what can be done to help residents
who live there.
Mayor Elliott stated the City Council and City Staff continue to discuss ways to support and assist
the City’s residents, and especially senior citizens. He added the City’s Fire and Police Department
staff, who are charged with protecting the City, must be protected, and their needs met, as they
continue to have contact with people and potentially risk exposure to the coronavirus.
Mr. Boganey expressed his appreciation for Brooklyn Center’s City Staff, who have been putting
in long hours and volunteering their support, as well as making important adjustments to ensure
that the business of the City runs smoothly in this time of crisis.
11. ADJOURNMENT
Councilmember Butler moved and Councilmember Ryan seconded adjournment of the City
Council meeting at 6:30 p.m.
Vote by Webex: Mayor Elliott and Councilmembers Ryan, Graves, and Butler voted aye.
Motion passed unanimously.
04/06/2020 -1-
MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
EXECUTIVE SESSION SPECIAL CITY COUNCIL MEETING
APRIL 6, 2020
WEBEX
CALL TO ORDER
The Brooklyn Center City Council met in Executive Session and was called to order by Mayor
Mike Elliott at 8:15 p.m.
ROLL CALL
Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, and Dan Ryan. Kris
Lawrence-Anderson was absent and excused. Also present were City Manager Curt Boganey,
Deputy City Manager Reggie Edwards, Public Works Director Doran Cote, City Engineer, Mike
Albers, City Attorney Troy Gilchrist, Attorney James Strommen, and City Clerk Barb Suciu.
UPDATE
City Manager Boganey stated the reconstruction project were about to begin and there was
concerns from a resident regarding the health of children and others during the projects. The Mayor
and City Manager met and the Mayor enacted a proclamation that paused the projects. The City
has received responses from both contractors and tonight we will go into closed session to discuss
proposed litigation.
Mayor Elliott moved and Councilmember Ryan seconded to go into a Closed session.
Vote on the motion by Webex: Mayor Elliott and Councilmembers Ryan, Graves, and Butler
CLOSED SPECIAL MEETING, DISCUSS PENDING LITIGATION REGARDING S.R.
WEIDEMA, INC. AND R.L. LARSON EXCAVATING, INC.
The City Council met in closed Executive Session under the attorney-client privilege to discuss
pending litigation – Minn. Stat. § 13D.05, subd. 3 (b). There was consensus of the City Council
to proceed with further litigation.
OPEN SESSION
Councilmember Butler moved and Councilmember Ryan seconded for the city to keep the
proclamation in place and contact residents in the construction raction area with the mitigation
measures the contractors have proposed and reconvene the meeting on Friday, April 10 at 7:00
p.m.
04/06/2020 -2-
Vote on the motion by Webex: Mayor Elliott and Councilmembers Ryan, and Butler
City Attorney Troy Gilchrist asked for a continuation if the meeting and that would allow the
current public notice to stay in place.
Mayor Elliott moved and Councilmember Ryan to continue the Executive Session at 7:00 p.m.
Friday, April 10 at 11:03 p.m.
Vote on the motion by Webex: Mayor Elliott and Councilmembers Ryan, and Butler
12/18/13 -1-
MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
CONTINUED EXECUTIVE SESSION CITY COUNCIL MEETING
APRIL 10, 2020
WEBEX
CALL TO ORDER
The Brooklyn Center City Council met in Executive Session and was called to order by Mayor
Mike Elliott at 8:15 p.m.
ROLL CALL
Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence-
Anderson, and Dan Ryan. Also present were City Manager Curt Boganey, Deputy City Manager
Reggie Edwards, Public Works Director Doran Cote, City Engineer, Mike Albers, City Attorney
Troy Gilchrist, Attorney James Strommen, and City Clerk Barb Suciu.
Motion by Mayor Elliott and Councilmember Graves seconded to go into closed session to discuss
litigation regarding S.R. Weidema, Inc. and R.L. Larson Excavating, Inc.
Vote on the motion by WebEx: Mayor Elliott and Councilmembers Ryan Lawrence-Anderson,
Graves and Butler voted aye.
CLOSED SPECIAL MEETING, DISCUSS LITIGATION REGARDING S.R.
WEIDEMA, INC. AND R.L. LARSON EXCAVATING, INC.
The City Council met in closed Executive Session under the attorney-client privilege to discuss
pending litigation – Minn. Stat. § 13D.05, subd. 3 (b). There was consensus of the City Council
to proceed with further litigation.
Vote on the motion by WebEx: Mayor Elliott and Councilmembers Ryan Lawrence-Anderson,
Graves and Butler voted aye.
OPEN SESSION
Councilmember Ryan moved and Councilmember Graves seconded the motion to rescind the
Mayoral Emergency Proclamation No. 2020-02 and Allow the Interstate and Grandview Street
Reconstruction Projects to Proceed with Mitigation Measures.
Vote on the motion by WebEx: Councilmembers Ryan Lawrence-Anderson, Graves and Butler
voted aye. Mayor Elliott abstained.
12/18/13 -2-
CONTINUATION
Councilmember Ryan moved and Councilmember Lawrence-Anderson moved to continue this
Executive Session meeting on Sunday, April 12 at 3:00 p.m. if deemed necessary at 8:58 p.m.
Vote on the motion by WebEx: Mayor Elliott and Councilmembers Ryan Lawrence-Anderson,
Graves and Butler voted aye.
04/12/2020 -1-
MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN AND THE STATE OF MINNESOTA
RECONVENE SPECIAL CITY COUNCIL MEETING
APRIL 12, 2020
WEBEX
CALL TO ORDER
The Brooklyn Center City Council met in Executive Session and was called to order by Mayor
Mike Elliott at 3:00 p.m.
ROLL CALL
Mayor Mike Elliott and Councilmembers Marquita Butler, April Graves, Kris Lawrence-
Anderson, and Dan Ryan. Also present were City Manager Curt Boganey, Deputy City Manager
Reggie Edwards, City Engineer, Mike Albers, City Attorney Troy Gilchrist and Attorney James
Strommen, and City Clerk Barb Suciu.
Councilmember Butler moved and Councilmember Ryan seconded to continue the closed session
from April 6, 2020, and April 10, 2020, regarding litigation regarding S.R. Weidema, Inc. and R.L.
Larson Excavating, Inc.
Vote on the motion by Webex: Mayor Elliott and Councilmembers Ryan, Lawrence-Anderson,
Graves, and Butler voted aye.
CONTINUE DISCUSSION FROM APRIL 6, 2020, AND APRIL 10, 2020, SPECIAL
MEETINGS, DISCUSS LITIGATION REGARDING S.R. WEIDEMA, INC. AND R.L.
LARSON EXCAVATING, INC.
The City Council met in closed Executive Session under the attorney-client privilege to discuss
pending litigation – Minn. Stat. § 13D.05, subd. 3 (b). There was consensus of the City Council
to proceed with further litigation.
OPEN SESSION
Councilmember Ryan moved and Councilmember Graves seconded the motion to approve the
settlement with S.R. Weidema, Inc. and R. L. Larson, Excavating, Inc. and instruct staff to work
with the contractors on any other details.
Vote on the motion by Webex: Councilmembers Ryan, Lawrence-Anderson, Graves, and Butler
voted aye. Mayor Elliott abstained.
04/12/2020 -2-
ADJOURNMENT
Councilmember Graves moved and Councilmember Ryan seconded to adjourn the Executive
Session at 5:11 p.m.
Vote on the motion by Webex: Mayor Elliott and Councilmembers Ryan, Lawrence-Anderson,
Graves, and Butler voted aye.
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :D r. Reggie Edw ards , D eputy C ity M anager
BY:A lix Bentrud, D eputy C ity C lerk
S U B J E C T:A pprov al of L icenses
B ackground:
T he follow ing busines s es/pers ons have applied for C ity licens es as noted. Each bus ines s /person has
fulfilled the requirements of the C ity O rdinance gov er ning res pec4 ve licens es , s ubmi5ed appropriate
applica4ons, and paid pr oper fees .
A pplicants for rental dwelling licenses are in compliance w ith C hapter 1 2 of the C ity C ode of O rdinances ,
unless comments are noted below the property addr es s on the a5ached rental r epor t.
A M U S E M E N T D E V I C E L I C E N S E
M etro Coin of M innes ota 726 0 Was hington Ave S
Eden P r air ie 55344
G A R B A G E H AU L E R
C urbside Was te 4025 8 5 th Av e N
Brookly n Par k 55443
D arling I ngredients 9000 3 8 2 nd Av e
Blue Earth 56013
D ick's S anita4on S erv ice I nc 8984 2 1 5 th S treet West
L akev ille 55044
M EC H A N I C A L L I C E N S E
4 F ront Energy S olu4 ons 3230 G orham Ave S te 1
S t L ouis Par k, 5 5 4 2 6
A E S M echanical S er vices G roup I nc 2171 A L H wy 2 2 9
Tallas s e, A L 3 6 0 7 8
A ir Mechanical I nc 16411 A berdeen S t N E
H am L ake, 5 5 3 0 4
B&D P lbg, H tg, & A /C 4145 M acKenz ie C t
S t M ichael, 55376
Blue O x H ea4 ng & A ir L L C 5720 I nter na4 onal P kwy
New H ope, 5 5 4 2 8
Burnsville H ea4 ng & A /C , I nc 3451 B urns v ille P kwy S te 120
Burns v ille, 5 5 3 3 7
C enter Point E ner gy 6161 G olden Valley Rd
G olden Valley, 55422
C entraire H tg & A /C I nc 6811 Was hington Av e S
Edina, 5 5 4 3 9
C orporate M echanical 5113 H ills boro Ave N
New H ope, 5 5 4 2 8
C orv al C ons tr uctors , I nc 1633 Eus 4 s S t
S t Paul, 55108
D J'S H ea4ng & A ir C ond.6060 L aB eaux Av e N E
A lbertv ille, 5 5 3 0 1
D i5er I nc 820 Tower D riv e
M edina, 55330
Elite Refriger a4 on H ea4 ng & A /C , L L C 9324 N ovember D r
S t J os eph, 5 6 3 7 4
Elk Riv er H ea4ng & A ir Condi4 oning I nc 11110 I ndus trial Cir N W #F
Elk Riv er, 55330
G enz-Ryan P lbg & H tg 2200 W H w y 13
Burns v ille, 5 5 3 3 7
G low ing H ear th & H ome 100 Eldor ado D r
Jordan, 55352
G o Fets ch M echanical L L C 565 S hor ev iew Park Rd
S hor ev iew, 5 5 1 2 6
H arris S t Paul I nc 909 M ontreal C ir
S t Paul 5 5 1 0 2
H offman Refr igera4on & H ea4 ng 5660 M emorial Av e N
S 4 llw ater, 5 5 0 8 2
H ome Energy C enter 2415 A nnapolis L n N S te 170
P lymouth, 55441
H omew orks S erv ices C o 1230 Eagan I ndus 4al Rd #117
Eagan, 5 5 1 2 1
H orwitz I nc 7400 49th Ave N
New H ope, 5 5 4 2 8
I nfinity H ea4 ng & A ir C ondi4oning L L C 1017 M eadow w ood D r
Brook lyn Park , 55444
KraH C ontrac4 ng L L C 3415 Ventur a D r S te 100
Woodbury, 5 5 1 2 5
M cChes ney H ea4ng & A ir 8201 175th Ave S E
Becker, 5 5 3 0 8
M cD owall Company P O Box
Waite Par k, 5 6 3 8 7
M etropolitan M echanical Contractors 7450 F ly ing C loud D r
Eden P rairie, 55344
M innesota Petroleum S erv ice 682 39th Ave N E
M inneapolis , 55421
M innetonka P lumbing, I nc 520 R iver S tr eet S
D elano, 55328
N eighborhood P lbg & H tg 130 B roadw ay Av e N
Foley, 5 6 3 2 9
N orthern H ea4 ng & A /C I nc 9431 A lpine D r N W
Rams ey, 5 5 3 0 3
Q uality Refrigera4on 6237 Penn Av e S #1 00
Richfield, 5 5 4 2 3
Q uality S ys tems A /C & Refrigera4on 16847 Welcome Ave S E
P rior L ake, 5 5 3 7 2
R T S Mechanical L L C 725 Tower D r
H amel, 5 5 3 4 0
Ray Welter H tg C o 4637 C hicago Av e S
M inneapolis , 55407
Royalton H ea4 ng & A /C 4120 85th Ave N
Brook lyn Park , 55443
S abre P lumbing, H ea4ng & A /C 15535 M edina Rd
P lymouth, 55447
S t C loud Refriger a4 on 604 L incoln Av e N E
S t C loud, 56304
S chadegg M echanical, I nc 225 B ridgepoint D r
S o S t Paul, 55075
S outh-Town Refr igera4on 6325 Welcome Ave N S te 200
Brook lyn Park , 55429
S tandard H ea4ng & A /C 130 P lymouth Av e N
M inneapolis , 55411
Treated A ir C ondi4 oning 9954 166th C ourt
Becker, 5 5 3 0 8
S I G N H A N G E R 'S L I C E N S E
A rchetype S ign M akers 9611 J ames Ave S
Bloomington, 55431
Elements I nc 10044 F lander s Ct N E S te 100
Blaine, 55449
J ones S ign Company 1711 S cheuring Rd
D ePere, W I , 54115
Pajor G raphics I nc 1301 Was hington Av e N
Minneapolis , 55411
S cenic S ign C ompany P O Box 881
S t Cloud, 56302
S ignart Company 2933 M ondovi R d
Eau C lair e, W I , 5 4 7 0 1
S pectrum S ign S ys tems I nc 8786 W 35 W S erv ice D r N E
Blaine, 55449
Topline A dver 4s ing 11775 J us ten C ircle #A
Maple G r ove, 55369
S trate gic Priories and Values:
S afe, S ecure, S table C ommunity, O pera4onal E xcellence
AT TA C H M E N TS :
D escrip4on Upload D ate Ty pe
Rental C riter ia 5/7/2019 Backup M aterial
5-11-2020 Rentals 5/5/2020 Backup M aterial
Page 2 of 2
b.Police Service Calls.
Police call rates will be based on the average number of valid police calls per unit per
year. Police incidences for purposes of determining licensing categories shall include
disorderly activities and nuisances as defined in Section 12-911, and events
categorized as Part I crimes in the Uniform Crime Reporting System including
homicide, rape, robbery, aggravated assault, burglary, theft, auto theft and arson.
Calls will not be counted for purposes of determining licensing categories where the
victim and suspect are “Family or household members” as defined in the Domestic
Abuse Act, Minnesota Statutes, Section 518B.01, Subd. 2 (b) and where there is a
report of “Domestic Abuse” as defined in the Domestic Abuse Act, Minnesota Statutes,
Section 518B.01, Subd. 2 (a).
License
Category
Number of
Units
Validated Calls for Disorderly Conduct
Service & Part I Crimes
(Calls Per Unit/Year)
No
Category
Impact
1-2 0-1
3-4 units 0-0.25
5 or more units 0-0.35
Decrease 1
Category
1-2 Greater than 1 but not more than 3
3-4 units Greater than 0.25 but not more than 1
5 or more units Greater than 0.35 but not more than 0.50
Decrease 2
Categories
1-2 Greater than 3
3-4 units Greater than 1
5 or more units Greater than 0.50
Property Code and Nuisance Violations Criteria
License Category
(Based on Property
Code Only)
Number of Units Property Code Violations per
Inspected Unit
Type I – 3 Year 1-2 units 0-2
3+ units 0-0.75
Type II – 2 Year 1-2 units Greater than 2 but not more than 5
3+ units Greater than 0.75 but not more than 1.5
Type III – 1 Year 1-2 units Greater than 5 but not more than 9
3+ units Greater than 1.5 but not more than 3
Type IV – 6 Months 1-2 units Greater than 9
3+ units Greater than 3
Property Address Dwelling
Type
Renewal
or Initial Owner
Property
Code
Violations
License
Type Police
CFS *
Final
License
Type **
Previous
License
Type ***
3141 49th Ave N Single Initial Matthew Forster/Elbrus Mgt 7 III N/A III
5019 61st Ave N Single Initial Emmanuel Togbah 31 IV N/A IV
5353 72nd Cir Single Initial Donovan Gilbert / N & G Financial 0 II N/A II
3818 Burquest La Single Initial Ayan I Yusuf/Loving Touch Inc 4 II N/A II
6418 Girard Ave N Single Initial Genet Mahalu Gashaw 9 III N/A III
5305 67th Ave N Single Renewal Sai Yang 0 I 0 I I
2208 69th Ave N Single Renewal
Eli Mash/3511 Fremont LLC - Mitigation
Plan Not Met, Missing Crime Free
Housing
10 IV 0 IV IV
5712 Bryant Ave N Single Renewal FYR SFR BORROW LLC 5 II 0 II I
5834 Camden Ave N Single Renewal FYR SFR BORROW LLC - met mitigation
plan 13 IV 0 IV IV
5316 Colfax Ave N Single Renewal FYR SFR BORROW LLC 6 III 0 III IV
5420 Fremont Ave N Single Renewal Ross Herman 8 III 0 III II
5426 Fremont Ave N Single Renewal Matthew Klein 9 III 0 III II
5642 Logan Ave N Single Renewal MNSF II W1 LLC - missing CPTED follow
up 5 II 0 IV IV
7019 Morgan Ave N Single Renewal Cory Lee McClure / Candlewood Home
Buyers 5 II 0 II II
6900 Quail Ave N Single Renewal Michael Johnson 3 II 0 II II
6924 Scott Ave N Single Renewal Mohammed Mohammed 13 IV 0 IV II
* CFS = Calls For Service for Renewal Licenses Only (Initial Licenses are not applicable to calls for service and will be listed N/A.)
** License Type Being Issued
*** Initial licenses will not show a previous license type
All properties are current on City utilities and property taxes
Type 1 = 3 Year Type II = 2 Year Type III = 1 Year
Rental Licenses for Council Approval on May 11, 2020
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :M eg B eekman
BY:C ommunity D evelopment D irector
S U B J E C T:O rdinance A mending Chapter 3 of the City Code of O rdinances
B ackground:
T he I nterna/onal C ode Council (I C C ) is a nonprofit member-bas ed associa/on that pr ovides a wide r ange
of building s afety s olu/ons including product ev alua/on, accredita/on, cer /fica/on, codifica/on and
training. I t dev elops model codes and standards us ed w or ldw ide. The I C C review s their model codes and
amends them ev er few y ears. Most recently, the I C C adopted an amended s et of codes in 2018.
T he S tate of M innes ota ov er s ees and enforces cons tr uc/on ac/v ity in the s tate thr ough the D epartment of
L abor and I ndus tr y. The s tate adopts state building codes which apply thr oughout the state. I n 2020 the
State of Minneso ta adopted new code requirements that included the 2018 I C C codes with amendments.
T he D epartment of L abor and I ndustry authoriz es municipali/es to adminis ter and enfor ce various
prov is ions of the s tate's building codes provided the municipality adopts the codes into city ordinance.
Chapter 3 of the Brooklyn C enter C ity C ode provides for the applica/on, administra/on a nd enforcement of
various pro visions and amendments to the Minnesota State B uilding C ode including a dop/o n of the N a/onal
E lectrical C o de, the Residen/a l E nergy C o de, the C o mmercial E nergy C ode and the Minneso ta State Mechanic al
Fuel Gas and Plumbing C odes in the C ity of B ro o klyn C enter.
Currently, the City is enforcing the new ly adopted pr ovisions under the S tate Building C ode w ith author ity
prov ided through S tate S tatutes; how ev er, the state does require that ci/es for mally adopt the amended
codes within a certain /me period in order to con/nue to administer the pr ogr am. The adop/on of this
code w ill align our s tandards w ith the S tate S tatutes and allow for s tandards to be cons is tent betw een
agencies .
A document is a?ached that provides informa/on r egar ding the s ignificant changes to the codes .
T he follow ing general changes w er e made w hen the S tate adopted the 2 0 2 0 code to r eplace the previous ly
adopted 2015 code. T he code included many changes that helped to clarify the interpreta/o n of the code.
Modific a/on to basement egress window requirements - N o egress window(s) would be required in a
basement o r basement bedro o m(s) if there is an auto ma/c sprinkler system installed thro ugho ut the
building or if the en/re basement including all po r/o ns of the means of egress to the exit discharge and all
o pen areas o n the level of discharge are pro tected with sprinklers.
C larifica /o n on when to require interconnected smoke alarms or ba?ery operated smoke alarms.
Modific a/on to the calcula/on of required wind loads.
Adding Roof Access requirements for so lar energy systems.
Reorganizing and clarifi ca/on o f deck requirement rela/ng to materials a nd f asteners.
Adds appendix Q to Residen/al C o de rela/ng to /ny ho mes - Applies to ho mes under 400 square feet in
size, c eiling height of 6 D-8 inches. Regula/on for L oDs, Stairs, ladders a nd emergency exits. T he adop/o n
o f this a ppendix do esn’t grant permissio n for /ny homes. I t only regulates ho w tha t are built, if they a re
permi?ed by the Zoning C o de.
T he Minnesota Plumbing C o de was replacing by the 2012 U niform Plumbing C o de.
B udget I ssues:
T he city will hav e s ome cos ts related to the pur chas e of new code books . $5 0 0 is budgeted in the 2021
budget.
S trate gic Priories and Values:
S afe, S ecure, S table C ommunity
AT TA C H M E N TS :
D escrip/on Upload D ate Ty pe
2020 C hanges O verv iew 4/16/2020 Backup M aterial
S tate C ode 2 0 2 0 G uide 4/16/2020 Backup M aterial
O rdinance 4/23/2020 O rdinance
443 Lafayette Road N., St. Paul, MN 55155 • 651-284-5005 • www.dli.mn.gov
Significant changes in the 2020 Minnesota Residential Code
The 2020 Minnesota Residential Code is effective March 31, 2020. The 2020 Minnesota Residential Code adopts
the 2018 edition of the International Residential Code (IRC), with amendments. The IRC governs new
construction of one- and two-family homes and buildings with three or more townhouses, provided the
structure is not more than three stories above grade.
The following IRC provisions are changed by Minnesota amendments:
Administration and Definitions
• Adds a definition of transient and directs code users to the IBC for requirements for dwellings intended
for transient use
Sections R 310.1 and R310.6 provisions for emergency escape and rescue openings for new and existing
basements
• Emergency escape and rescue openings are required in new basements and bedrooms created in
existing basements unless the entire basement area, all portions of the means of egress to the level of
exit discharge, and all areas on the level of exit discharge are protected with an automatic sprinkler
system
Sections R314 and R315 Smoke Alarms and Carbon Monoxide Detectors
• Existing homes are permitted to be equipped with battery-powered smoke alarms and carbon monoxide
detectors that are not interconnected unless alterations or repairs result in the removal of interior wall
or ceiling finishes
• Hardwired, interconnected smoke alarms are not required in existing homes where the basement or
attic provides access to the hardwiring
• New homes continue to be required to have hardwired, interconnected smoke alarms
Table R402.2 Minimum specified compressive strength of concrete
• Clarifies that 5,000 psi concrete is not required for post footings decks or porches, wood foundations,
slab-on-grade foundation walls and footings for floating slabs
Section 404 Foundation and Retaining Walls
• Table R404.1(1) includes prescriptive requirements for foundation walls up to 10 feet in height
The 2020 Minnesota Residential Code also includes these significant changes from the 2018 IRC:
• Section R301.2.1 Wind design criteria require dwellings to be constructed using ultimate design wind
speed (Vult) instead of basic wind speed (Vasd). Table R301.2.1.3 provides conversions from Vult to Vasd.
The actual design wind loads will be equal or slightly less using ultimate wind design speed instead of
basic wind speed.
• Section R324 Solar Energy Systems adds new provisions solar energy systems. Roof-mounted solar PV
systems must allow for roof access, including access pathways from the lowest roof edge to the ridge
and setbacks at the ridge.
• Section R507 Exterior Decks reorganizes and clarifies requirements for decks, including requirements
for materials and fastener and fastener connections.
• Appendix Q addresses tiny houses by providing certain allowances for homes less than 400 square feet
in size.
MINNESOTA
Guide to the
State Building Code
• Administration
• Special Provisions
• Commercial Building
• Elevators and Related Devices
• Residential Building
• Existing Buildings
• Electrical
• Flood-proofing
• Energy Conservation
• Accessibility
• Mechanical and Fuel Gas
• Plumbing
• High Pressure Piping Systems
• Manufactured Homes
• Prefabricated Structures
• Industrialized/Modular Buildings
• Storm Shelters
GUIDE TO THE STATE BUILDING CODE
For nearly 50 years, the Minnesota
State Building Code has been the
standard by which buildings have
been constructed to provide our
citizens with safe, energy efficient
and accessible buildings.
From the many buildings built during
those years, no one will know the
countless lives saved from fire,
structural collapse and hazardous
materials; the injuries prevented
from falls, shattered glass and
electric shock; or the prevention
of damage to buildings from roof
ice, frost heave or water leakage.
In addition, many hundreds of
buildings are now fully accessible
and usable for our family members
and friends with disabilities while
much less fossil fuel has had to be
burned to heat and cool these same
buildings.
This Guide looks back to the original intent of the legislature to provide safe and
affordable housing, places to work, shop, eat, congregate, do business, recreate and
worship. It reviews where these protections currently exist in the state and what codes
are in place to ensure this occurs.
The purpose of this Guide is to inform and educate regulators, government officials
and policy makers about the State Building Code and how it serves the public’s interest
by providing for the safe use of buildings. Because one of the most important roles of
government is to protect its citizens, it is our responsibility to ensure this occurs in the
construction of buildings.
Scott D. McLellan
State Building Official
INTRODUCTION
TABLE OF CONTENTS
History
Legislative Intent
Purpose
Federal Impact
Uniformity
Benefits
Requirements
Enforcement Areas
Chapters
Minnesota Building Code Administration
Minnesota Provisions to the State Building Code
Minnesota Building Code
Minnesota Elevator and Related Devices Code
Minnesota Residential Code
Minnesota Conservation Code for Existing Buildings
Minnesota Energy Code
Minnesota Accessibility Code
Minnesota Mechanical and Fuel Gas Code
Minnesota Plumbing Code
High Pressure Piping Code
National Electrical Code
Industrialized Modular Buildings
Minnesota Manufactured Home Code
Prefabricated Buildings
Flood-Proofing Regulations
Storm Shelters
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Code Book Fact Sheets
G uide to the State Building Code | 5
HISTORY
A State Building Code was established that
applied only to state-owned buildings.
The first State Building Code was enacted
into law that applied to all areas of
Minnesota that enforced a building
code. Up to this point, each municipality
maintained its own unique building code
or had none at all.
The State Building Code became effective
on July 1. If a municipality enforced a
building code, it now had to be the State
Building Code.
Legislation established that the State Building Code would be enforced statewide beginning Jan. 1,
1977, but no later than Jan. 1, 1978. Subsequent legislation passed in 1978 extended the date for
mandatory state-wide enforcement of the State Building Code to Jan. 1, 1979.
Legislation provided that a non-metropolitan county may by negative referendum rescind
enforcement of the State Building Code (except provisions for accessibility). This enabled county
residents and those residing in cities that had not already adopted the code by January 1977 to
participate in the vote.
• If the vote was negative, the code no longer applied to townships or cities located within the
county.
• As a result of the referendums, only eight counties voted to retain the State Building Code.
These were in addition to the seven mandatory metropolitan counties.
Legislation allowed municipalities having a population of less than 2,500 to decide whether or not
the State Building Code will apply in their jurisdiction. If these municipalities had already adopted
the code, they can now rescind their ordinance adopting the State Building Code (unless they were
located in one of the seven metropolitan counties mandated to enforce the State Building Code).
Legislation established for the first time that the State Building Code is the standard that applies
statewide for the construction and remodeling of buildings. This means that the State Building
Code now applies to all work, regardless of whether or not the State Building Code is required to
be enforced by a municipality. This applies to everyone who constructs or remodels buildings, both
homeowners and contractors.
Legislation established that as of Jan. 1, 2008, if a municipality had in effect an ordinance adopting
the State Building Code, that municipality must continue to enforce the State Building Code and may
not repeal its adopting ordinance. The exception is for those municipalities having a population of less
than 2,500 (as permitted by the 1981 legislation).
1965
1971
1972
1977
1979
1981
2008
2008
Photo credit: Ben Franske - Own work, GFDL,
https://commons.wikimedia.org/w/index.php?curid=4390505
6 | G uide to the State Building Code
LAWS 1971 – REGULAR SESSION
Be in enacted by the Legislature of the State of Minnesota:
Section 1. Minnesota Statutes 1969, Section 16.83, is amended to
read:
16.83 STATE BUILDING CODE; POLICY AND PURPOSE;
APPROPRIATING MONEY. Sections 1 to 17 of the act are enacted
to enable the commissioner of administration to promulgate and
administer a state building code in accordance with the provisions
hereof, which code shall govern the construction, reconstruction,
alternation, and repair of state-owned buildings and other structures
to which the code is applicable. It is necessary that building codes be
adopted and enforced to protect the health, safety, welfare, comfort,
and security of the residents of this state. However, the construction
of buildings should be permitted at the least possible cost consistent
with recognized standards of health and safety.
Many citizens of the state are unable to secure adequate housing at prices or rentals which they can
afford. Such a situation is contrary to the public interest and threatens the health, safety, welfare,
comfort, and security of the people of the state. Other persons in commerce and industry are also
affected by the high cost of construction. Construction costs for buildings of all types have risen and
are continuing to rise at unprecedented rates.
A multitude of laws, ordinances, rules, regulations, and codes regulating the construction of buildings
and the use of materials therein is a factor contributing to the high cost of construction. Many such
requirements are obsolete, complex, and unnecessary. They serve to increase costs without providing
correlative benefits of safety to owners, builders, tenants, and users of buildings.
It is the purpose of this act to prescribe and provide for the administration and amendment of a state
code of building construction which will provide basic and uniform performance standards, establish
reasonable safeguards for health, safety, welfare, comfort, and security of the residents of this state
who are occupants and users of buildings, and provide for the use of modern methods, devices,
materials, and techniques which will in part tend to lower construction costs.
LEGISLATIVE INTENT
Below is an excerpt from the 1971 Session Laws when the legislature first authorized creation of a State
Building Code. The purpose of the code, as shown in the first and fourth paragraphs, still appears today
in Minnesota Statute 326B.101. The second and third paragraphs describe factors facing the construction
industry and society at the time that likely contributed to the establishment of the first State Building Code.
6 | Guide to the State Building Code G uide to the State Building Code | 7
PURPOSE
The purpose of the State Building Code is described in Minnesota Statutes 326B.101 where it reads:
In other words:
• Basic – minimum
• Uniform – everyone designs and builds to comply with the same requirements
• Performance standards – requirements should focus on the outcome not specific methods
• Reasonable safeguards – not overly complex, costly or difficult
• Health – safe clean water, proper sewer, sanitation, air quality, light, ventilation
• Safety – protection from fire, smoke, falling, wind, snow, frost, extreme temperature, electrocution,
hazardous materials, panic, breaking glass, structural collapse
• Welfare – accessibility, conserves energy resources, peace of mind, habitability
• Comfort – heating facilities, soundproofing between apartments, room size
• Security – school safety, nursing home dementia units, correctional facilities
• Provide for the use of modern methods, devices, materials and techniques which will in part tend to
lower construction costs – encourage and recognize innovation and technologies that provide cost savings
in labor, equipment, and building materials
• The construction of buildings should be permitted at the least possible cost consistent with recognized
standards of health and safety – manage adoption of nationally recognized safety and health codes to
keep construction costs as low as possible
The commissioner shall administer and amend a state code of building construction which will
provide basic and uniform performance standards, establish reasonable safeguards for health,
safety, welfare, comfort, and security of the residents of this state and provide for the use of
modern methods, devices, materials, and techniques which will in part tend to lower construction
costs. The construction of buildings should be permitted at the least possible cost consistent with
recognized standards of health and safety.
”
8 | G uide to the State Building Code
FEDERAL IMPACT
Energy
Minnesota is obligated to review and adopt a new
commercial energy code when recommended by
the U.S. Department of Energy. However, when a
new, more efficient residential energy code becomes
available, Minnesota is only required to review and
consider adopting the new code.
Manufactured Homes
Since 1976, Minnesota has been a State
Administrative Agency (SAA) for the U.S. Department
of Housing and Urban Development for the
installation of manufactured homes. As a condition of
being an SAA, Minnesota must adopt installation and
dispute-resolution programs compatible with federal
regulations for manufactured homes.
Prefabricated Structures
Since 1995, Minnesota has been part of an interstate
compact for the regulation of prefabricated
structures and modular buildings. This compact
obligates Minnesota and partner states to follow specific state codes as well as uniform model rules and
regulations when constructing prefabricated structures.
Accessibility
Although Minnesota is not required by the federal
government to administer an accessibility code, the
Americans with Disabilities Act (ADA) established both the
requirement and standard that all new and remodeled
buildings are required to follow. To simplify compliance
for architects and building owners, Minnesota adopted a
model accessibility code that is compatible with ADA.
8 | Guide to the State Building Code G uide to the State Building Code | 9
UNIFORMITY
Uniformity is important for several reasons:
Reduced cost
Contractors only have to learn one code. This
enables them to become more efficient in
their design and construction methods, thus
minimizing construction costs. Building product
manufacturers are able to reduce their costs as
they can design their materials to meet just one
standard.
Levels the competition
As the entire construction industry uses the
same standard, estimating construction costs
will be equitable.
Consistent code enforcement
Building officials throughout Minnesota are
trained to understand and enforce a single
standard. This promotes uniform application
and enforcement of the code, thus minimizing
errant interpretations, construction delays and
additional construction cost.
Statutory requirements for uniformity
Minnesota Statute 326B.121 Subd. 1(a):
The State Building Code is the
standard that applies statewide for the
construction, reconstruction, alteration,
repair, and use of buildings and other
structures of the type governed by the
code.
Minnesota Statute 326B.121 Subd. 1(b):
The State Building Code supersedes the
building code of any municipality.
Minnesota Statute 326B.121 Subd. 2(c):
A municipality must not by ordinance,
or through development agreement,
require building code provisions
regulating components or systems of
any structure that are different from any
provision of the State Building Code.
The State Building Code preempts and supersedes local regulation for the construction of buildings. A key
purpose of the legislature establishing a single State Building Code was to promote uniformity of construction
standards throughout Minnesota.
10 | G uide to the State Building Code
BENEFITS
• Provides safe and healthy buildings
• Provides peace of mind that buildings are safe to be used
as intended
• Provides accessible buildings for all people, regardless of
ability
• Provides energy efficient buildings
• Provides buildings that are resilient to weather extremes
• Provides reduced property loss in the event of fire, flood,
wind and snow
• Provides consistency in building design, bidding process
and building construction
• Provides financial institutions with an assured value of
quality and safety. Most require evidence of this through
the Certificate of Occupancy
• Provides insurance companies with permit, inspection and occupancy approvals to verify insurability
• Provides prospective property owners with documented improvement records that are sometimes
necessary for real estate transfers and tax purposes
• Provides the Insurance Services Office (ISO) with a measurable industry standard to determine cost-
effective statewide insurance ratings
• Provides FEMA with a responsible safety standard to base reconstruction costs to replace or repair disaster-
destroyed property
• Provides the public with a way to verify that work is done by licensed contractors, architects and engineers
• Provides a standard for consumer protection through Minnesota’s Contractor Licensing program and
Contractor Recovery Fund
• Provides compatibility with the State Fire Code
• Provides quality community development through the construction of buildings that meets the needs of
society, municipalities, building owners and residents
10 | Guide to the State Building Code G uide to the State Building Code | 11
REQUIREMENTS
Model codes
Minnesota law requires the State Building Code to conform as much as possible to model building codes
generally accepted and in use throughout the United States. A model code is a book of published construction
regulations developed by members of an organization having subject-matter expertise. Model codes are
intended for adoption into law by local governments, states and even countries. Because writing codes
requires a great deal of work by many experienced and varied industry experts, this is usually beyond the
capacity of a local government to produce on its own.
The preferred way to efficiently regulate building safety, accessibility for the disabled and energy efficiency
is through the adoption and enforcement of model codes. However, because model codes are produced for
widespread use throughout all parts of the country, state government must usually amend or change some
provisions in order to address its own particular geography, climate and legislative mandates.
Minnesota rules
Minnesota law states that the commissioner [of the Minnesota Department of Labor and Industry] shall by
rule and in consultation with the Construction Codes Advisory Council establish a code of building standards.
A rule is a type of Minnesota law that is produced by a state agency through a legally prescribed process.
Although authority for making a rule must be granted by the legislature, the legislature is not directly involved
in the process. Adopting a model code into the State Building Code is done by rule. Another example of a rule
is when the changes are made to specific requirements of the model code. Usually these are referred to as
amendments or amending the model code.
Minnesota statutes
Even though the State Building Code is established by rule using model codes, the legislature can still enact
specific requirements into law to regulate the construction of buildings. Most often, this occurs as a result of
a tragedy or string of accidents where the State Building Code may not have provided adequate protections.
Examples of some of the special provisions passed into law by the legislature include:
• bleacher safety,
• window-fall protection,
• required safety devices for automatic garage door openers,
• window-cleaning safety anchorages,
• radon control, and
• smoke detection devices.
The State Building Code is a set of documents that regulate the construction of
buildings so they are safe, energy efficient and accessible. The specific regulations
contained in the State Building Code appear in one of three forms: model codes and
standards, Minnesota Rules and Minnesota Statutes.
12 | G uide to the State Building Code
ENFORCEMENT AREAS
Minnesota State
Building Code is
enforced throughout
these 21 counties.
Minnesota State
Building Code is
enforced by certain
cities and townships.
Throughout Minnesota, 507
municipalities enforce the State
Building Code.
This includes:
• 432 of 852 cities
• 59 or 1,790 townships
• 16 of 87 counties
217 designated building officials serve
the 507 municipalities.
54 of the 217 designated building
officials serve multiple municipalities.
The State Building Code is enforced
throughout 21 counties, 16 of which
have their own county building official.
12 | Guide to the State Building Code G uide to the State Building Code | 13
CHAPTERS
The Minnesota State Building Code consists of 18 chapters. Most of them adopt by reference a model code
or standard that has been developed by a national code-making organization. The remaining chapters contain
subject matter that has been written specifically for Minnesota.
1300 – Minnesota Building Code Administration
1303 – Special Provisions
1305 – Minnesota Commercial Building Code
1307 – Elevators and Related Devices
1309 – Minnesota Residential Code
1311 – Minnesota Conservation Code for Existing Buildings
1315 – Minnesota Electrical Code
1322/23 – Minnesota Energy Code
1335 – Flood-proofing Regulations
1341 – Minnesota Accessibility Code
1346 – Minnesota Mechanical and Fuel Gas Code
1350 – Manufactured Homes
1360 – Prefabricated Structures
1361 – Industrialized/Modular Buildings
1370 – Storm Shelters (Manufactured Home Parks)
4714 – Minnesota Plumbing Code
5230 – Minnesota High Pressure Piping Systems
14 | G uide to the State Building Code
CODE BOOK FACT SHEET
2020 MINNESOTA BUILDING CODE ADMINISTRATION
•Regulates the administration of all Minnesota adopted codes.
•Contains detailed provisions governing building official duties, building department operations, permits,
plan review, violations, fees, inspections, board of appeals and certificate of occupancy.
•Located in Minnesota Rules Chapter 1300. This rule chapter replaces the administrative chapters in each of
the 2018 International Code Council (ICC) model codes adopted by Minnesota.
EFFECTIVE DATE
•Updates to Minnesota Building Code Administration are effective March 31, 2020.
CODE BOOK
The 2020 Minnesota Building Code Administration is incorporated into custom code books published for
Minnesota by the International Code Council (ICC). There is no longer a need to separately purchase the
ICC model code and Minnesota amendments and refer to them both. Now they are contained in a single
reformatted Minnesota-specific code book.
The Minnesota Building Code Administration is available for free online viewing or can be purchased in soft-
cover format as part of Minnesota’s other
published codes.
TO VIEW CODES ONLINE FREE
•Visit www.dli.mn.gov/business/codes-and-
laws to view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com
651-297-3000 or 1-800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html
701-931-4533
2020 MINNESOTA BUILDING CODE
ADMINISTRATION
14 | Guide to the State Building Code G uide to the State Building Code | 15
CODE BOOK FACT SHEET2020 MINNESOTA PROVISIONS TO THE
STATE BUILDING CODE
2020 MINNESOTA PROVISIONS TO THE STATE BUILDING CODE
•Addresses a number of subjects related to Minnesota’s climatic conditions and other provisions not
appropriately regulated in the International Residential Code (IRC) or International Building Code (IBC).
•Contains Minnesota provisions addressing restroom facilities in public buildings, parking spaces for
commuter vans, automatic garage door opening systems, recycling space, footing frost protection,
ground snow load, radial ice on towers, wood for exterior decks, patios and balconies, bleacher safety,
simplified wind loads and radon.
•Located in Minnesota Rules Chapter 1303. This rule chapter contains special code provisions required by
Minnesota statutes.
EFFECTIVE DATES
•Updates to Minnesota Provisions to the State Building Code are effective July 31, 2020.
CODE BOOK
The 2020 Minnesota Provisions to the State Building Code is incorporated into both the Minnesota Building
Code and Minnesota Residential Code published for Minnesota by the International Code Council (ICC). There
is no longer a need to separately purchase the ICC model code and Minnesota amendments and refer to them
both. Now they are contained in a single reformatted Minnesota-specific code book.
The Minnesota Provisions to the State Building Code is available for free online viewing or can be purchased as
part of the Minnesota Building or Minnesota Residential codes in soft-cover format.
TO VIEW CODES ONLINE FREE
•Visit www.dli.mn.gov/business/codes-and-laws to
view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com
651-297-3000 or 1- 800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html
701-931-4533
16 | G uide to the State Building Code
CODE BOOK FACT SHEET
2020 MINNESOTA BUILDING CODE
2020 MINNESOTA BUILDING CODE
•Regulates the design, construction, addition, alteration, repair, use and location of all buildings and
structures other than those regulated by the 2020 Minnesota Residential Code.
•Contains detailed provisions governing building construction. These include requirements for structural,
means of egress, sanitation, life-safety, fire-safety, and moisture protection.
•Located in Minnesota Rules Chapter 1305. This rule chapter adopts by reference Chapters 2 through 33
and 35 of the 2018 International Building Code (IBC) and includes amendments to the IBC.
EFFECTIVE DATES
•Minnesota Building Code is effective March 31, 2020.
CODE BOOK
The 2020 Minnesota Building Code is a custom code book published for Minnesota by the International
Code Council (ICC). It includes Minnesota's amendments into the body of changed sections and reads as a
unified code book. It also includes Minnesota chapters about administration, radon and elevators. There
is no longer a need to separately purchase the ICC model code and
Minnesota amendments and refer to them both. Now they are
contained in a single reformatted Minnesota-specific code book.
Code books are available for purchase and free, online viewing is
available.
TO VIEW CODES ONLINE FREE
•Visit www.dli.mn.gov/business/codes-and-laws to view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com
-651-297-3000 or 1-800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html
701-931-4533
16 | Guide to the State Building Code G uide to the State Building Code | 17
CODE BOOK FACT SHEET
2020 MINNESOTA ELEVATOR AND
RELATED DEVICES CODE
2020 MINNESOTA ELEVATOR AND RELATED DEVICES CODE
•Regulates the design, construction, installation, alteration, repair, removal, operation and maintenance
of elevators and related devices.
•Contains detailed provisions governing passenger elevators, freight elevators, hand-powered elevators,
dumbwaiters, escalators, moving walks, vertical reciprocating conveyors, stage and orchestra lifts,
endless belt lifts, wheelchair lifts and other related devices.
•Located in Minnesota Rules Chapter 1307. This rule chapter incorporates certain standards of the American
Society of Mechanical Engineers (ASME), Chapter 30 of the 2018 International Building Code (IBC), and
Minnesota amendments in Minnesota Rules Chapter 1305.
EFFECTIVE DATE
•Minnesota Elevator and Related Devices Code anticipated effective date is mid-2020.
CODE BOOK
The 2020 Minnesota Elevator and Related Devices Code incorporates several ASME codes and standards with
Minnesota amendments.
TO VIEW CODES ONLINE FREE
•Minnesota Rules Chapter 1307, Elevators and Related Devices,
www.revisor.mn.gov/rules/1307/
TO PURCHASE CODE BOOKS
•The American Society of Mechanical Engineers at www.asme.org/
codes-standards/publications-information/safety-codes-standards
18 | G uide to the State Building Code
CODE BOOK FACT SHEET2020 MINNESOTA RESIDENTIAL CODE
2020 MINNESOTA RESIDENTIAL CODE
•Regulates the design, construction, addition, alteration, repair, use, and location of detached one- and
two-family dwellings, certain townhouses and their accessory structures.
•Contains detailed provisions governing dwelling construction including requirements for structural, life-
safety, fire-safety and moisture protection.
•Located in Minnesota Rules Chapter 1309. This rule chapter adopts by reference Chapters 2 through 10,
44, Section P2904, and Appendix K and Q from the 2018 International Residential Code (IRC) as amended
in Minnesota.
EFFECTIVE DATES
•Residential Code is effective March 31, 2020.
CODE BOOK
The 2020 Minnesota Residential Code is a custom code book published for Minnesota by the International
Code Council (ICC). It includes Minnesota's amendments into the body of changed sections and reads as a
unified code book. It also includes Minnesota chapters about Administration, Radon and Energy. There is no
longer a need to separately purchase the ICC model code and Minnesota
amendments and refer to them both. Now they are contained in a single
reformatted Minnesota-specific code book.
The Minnesota Residential Code is available for free online viewing or can
be purchased in soft-cover format (English and Spanish versions).
TO VIEW CODES ONLINE FREE
•Visit www.dli.mn.gov/business/codes-and-laws to view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com
651-297-3000 or 1-800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html
701-931-4533
18 | Guide to the State Building Code G uide to the State Building Code | 19
CODE BOOK FACT SHEET
2020 MINNESOTA CONSERVATION CODE
FOR EXISTING BUILDINGS
2020 MINNESOTA CONSERVATION CODE FOR EXISTING BUILDINGS
•Regulates the design, alteration, repair, addition, change of occupancy and relocation of existing buildings
and structures, including historic buildings. This code does not apply to buildings or structures regulated
by the 2020 Minnesota Residential Code.
•Contains regulations for building conservation using both prescriptive and performance-based provisions
with emphasis on performance. These regulations may often be less restrictive than the IBC, making
building conservation and reuse of existing buildings more cost effective while maintaining building
safety.
•Located in Minnesota Rules Chapter 1311. This rule chapter adopts by reference Chapters 2 through 16 of
the 2018 International Existing Building Code (IEBC) and includes amendments to the IEBC.
EFFECTIVE DATE
•Conservation Code for Existing Buildings is effective March 31, 2020.
CODE BOOK
The 2020 Minnesota Conservation Code for Existing Buildings is a custom code book published for Minnesota
by the International Code Council (ICC). It includes Minnesota’s amendments into the body of changed sections
and reads as a unified code book. It also includes a Minnesota chapter about Administration. There is no longer
a need to separately purchase the ICC model code and Minnesota amendments and refer to them both. Now
they are contained in a single reformatted Minnesota-specific code book.
The Minnesota Conservation Code for Existing Buildings is available for
purchase in soft-cover format. Free online viewing is also available.
TO VIEW CODES ONLINE FREE
•Visit http://codes.iccsafe.org/#minnesota to view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com
651-297-3000 or 1-800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html
701-931-4533
20 | G uide to the State Building Code
CODE BOOK FACT SHEET
2020 MINNESOTA ENERGY CODE
2020 MINNESOTA ENERGY CODE
•Provides energy-conserving standards for the design, construction, alteration, renovation and repair of
residential and commercial buildings.
•Contains design and construction standards regarding heat-loss control, illumination and climate
control.
•Located in Minnesota Rules Chapters 1322 and 1323. This rule chapter adopts by reference Chapters 2(RE)
through 5(RE) of the 2012 International Energy Conservation Code (IECC) for residential, 2(CE) through
4(CE) and 6(CE) of the 2018 IECC for commercial, and optional AHSRAE Standard 90.1-2016, the 2012
IECC and Minnesota amendments to the IECC. The IECC includes requirements for both residential and
commercial buildings.
EFFECTIVE DATE
•Commercial Energy Code with ANSI/ASHRAE/IES Standard 90.1-2016 is effective March 31, 2020.
•Residential Energy Code is effective Feb. 14, 2015.
CODE BOOK
The 2020 Minnesota Energy Code is a custom code published for Minnesota by the International Code Council
(ICC). It includes Minnesota’s amendments into the body of changed sections and reads as a unified code book.
It also includes a Minnesota chapter on Administration. There is no longer a need to separately purchase the
ICC model code and Minnesota amendments and refer to them both.
Now they are contained a single reformatted Minnesota-specific code
book.
Code books are available for purchase and free, online viewing is also
available.
TO VIEW CODES ONLINE FREE
•Visit www.dli.mn.gov/business/codes-and-laws to view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com
651-297-3000 or 1-800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html
701-931-4533
20 | Guide to the State Building Code G uide to the State Building Code | 21
CODE BOOK FACT SHEET
2020 MINNESOTA ACCESSIBILITY CODE
2020 MINNESOTA ACCESSIBILITY CODE
•Provides standards for the design and construction of buildings to be accessible for all persons.
•Contains detailed scoping requirements from IBC Chapter 11 and detailed technical provisions from ICC/
ANSI A117.1-2009 to ensure that buildings and facilities are designed and constructed to be accessible.
•Located in Minnesota Rules Chapter 1341. This rule chapter adopts by reference Chapter 11 of the 2018
International Building Code (IBC), Section 305 of the 2018 International Existing Building Code (IEBC), ICC/
ANSI A117.1-2009, and Minnesota amendments.
EFFECTIVE DATE
•Minnesota Accessibility Code is effective March 31, 2020.
CODE BOOK
The 2020 Minnesota Accessibility Code is a custom code published for Minnesota by the International Code
Council (ICC). It includes Minnesota’s amendments into the body of
changed sections and reads as a unified code book. It also includes a
Minnesota chapter about Administration. There is no longer a need to
separately purchase the ICC model codes and Minnesota amendments
and refer to them both. Now they are contained in a single reformatted
Minnesota-specific code book.
The Minnesota Accessibility Code is available for purchase in
soft-cover format. Free online viewing is also available.
TO VIEW CODES ONLINE FREE
•Visit http://codes.iccsafe.org/#minnesota to view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com
651-297-3000 or 1-800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html
701-931-4533
22 | G uide to the State Building Code
CODE BOOK FACT SHEET2020 MINNESOTA MECHANICAL AND
FUEL GAS CODE
2020 MINNESOTA MECHANICAL AND FUEL GAS CODE
•Regulates the design, installation, maintenance, alteration and inspection of building mechanical systems
that are used to provide control of environmental conditions and related processes.
•Contains detailed provisions governing mechanical and fuel gas systems using prescriptive and
performance-based provisions with emphasis on performance.
•Located in Minnesota Rules Chapter 1346. This rule chapter adopts by reference Chapters 2 through 15
of the 2018 International Mechanical Code, Chapters 2 through 8 of the 2018 International Fuel Gas Code
(including amendments to both), chapters 1 through 9 of ANSI/ASHRAE Standard 154-2016, Ventilation
for Commercial Cooking Operations, and ANSI/ASHRAE 62.2-2016, Ventilation and Acceptable Indoor Air
Quality in Residential Buildings.
EFFECTIVE DATE
•Minnesota Mechanical and Fuel Gas Code is effective
April 6, 2020.
CODE BOOK
The 2020 Minnesota Mechanical and Fuel Gas Code is a custom code
published for Minnesota by the International Code Council (ICC). It
includes Minnesota’s amendments into the body of changed sections
and reads as a unified code book. It also includes a Minnesota chapter
about Administration. There is no longer a need to separately purchase
the ICC model codes and Minnesota amendments and refer to them
both. Now they are contained in a single reformatted Minnesota-
specific code book.
The Minnesota Mechanical and Fuel Gas Code is available for free
online viewing or can be purchased in soft-cover format.
TO VIEW CODES ONLINE FREE
•Visit www.dli.mn.gov/business/codes-and-laws to view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com 651-297-3000 or 1-800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html
701-931-4533
22 | Guide to the State Building Code G uide to the State Building Code | 23
CODE BOOK FACT SHEET2015 MINNESOTA PLUMBING CODE
2015 MINNESOTA PLUMBING CODE
•Regulates the design and installation of plumbing systems statewide for all buildings including new,
addition, alteration, repair and replacement.
•Contains requirements for drain, waste, and vent systems, water supply and distribution systems, backflow
prevention, water conditioning equipment, roof drainage systems, plumbing fixtures, materials and non-
potable rainwater catchment systems.
•Minnesota Rules, Chapter 4714. The rule incorporates by reference Chapters 2 to 11, 14,and 17 of the
2012 edition of the Uniform Plumbing Code (UPC), and UPC Appendices A, B and I, except for IS 12-2006,
IS 13-2006, IS 26-2006, SIS 1-2003 and SIS 2-2003 of Appendix I, with Minnesota amendments.
EFFECTIVE DATE
•Minnesota Plumbing Code, Chapter 4714, is effective Jan. 23, 2016.
•As of Jan. 23, 2016, Chapter 4715 is repealed.
CODE BOOK
The 2015 Minnesota Plumbing Code is published by the International
Association of the Plumbing and Mechanical Officials (IAPMO) for
Minnesota in a single, reformatted custom code book. It incorporates
Minnesota amendments and reads as a unified code book. It also
includes Chapter 4716, Plumber Licensing and Apprentice Registration,
and Chapter 1300, Minnesota Administration Code.
The 2015 Minnesota Plumbing Code is anticipated to be available for
purchased in January 2016 in a soft-cover format. Online viewing will be
available soon after publication of the 2015 Minnesota Plumbing Code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.minnesotasbookstore.com
651-297-3000 or 1-800-657-3757
•International Association of the Plumbing and Mechanical Officials Online Bookstore
http://iapmomembership.org/
909-472-4208
Email: publications@iapmo.org
24 | G uide to the State Building Code
2019 HIGH PRESSURE PIPING CODE
•Regulates the design, construction and installation of high-pressure steam and other heating mediums,
ammonia refrigeration and bioprocess piping systems.
•Contains detailed material and pressure requirements for pipe, fittings and valves as well as procedure,
qualification and production welding requirements on high pressure piping (HPP) systems.
•The Board of High Pressure Piping Systems has adopted five model codes, with Minnesota amendments:
ASME B31.1-2016 for high pressure steam and other heating mediums; ANSI/IIAR2-2014 and ASME B31.5-
2016 for ammonia refrigeration; ASME BPE-2016 for bioprocess; and ASME Section IX-2017 for welding
requirements on all high-pressure piping systems.
EFFECTIVE DATE
•Minnesota Rules Chapter 5230, containing the Minnesota High Pressure Piping Code, is effective
May 14, 2019.
CODE BOOK
Minnesota High Pressure Piping Laws and Rules is available for free
online viewing or can be purchased as part of the Minnesota Building
Code in soft-cover format.
The four American Society of Mechanical Engineers (ASME) codes
adopted by reference as part of the Minnesota High Pressure Piping
Code are available for purchase online through ASME or other third-party
vendors.
The International Institute of Ammonia Refrigeration Standard ANSI/
IIAR2-2014 is available for purchase online through IIAR.
TO VIEW CODES ONLINE FREE
•Visit www.dli.mn.gov/business/codes-and-laws to view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore, www.mnbookstore.com or 651-297-3000
•American Society of Mechanical Engineers
www.asme.org/shop/standards or 800-843-2763
•International Institute of Ammonia Refrigeration
www.iiar.org or 703-312-4200
CODE BOOK FACT SHEET
2019 HIGH PRESSURE PIPING CODE
24 | Guide to the State Building Code G uide to the State Building Code | 25
CODE BOOK FACT SHEET2020 NATIONAL ELECTRICAL CODE
2020 NATIONAL ELECTRICAL CODE
•The 2020 National Electrical Code (NEC) provides the minimum installation criteria for electrical wiring for
commercial, residential and industrial occupancies. The original code document was developed in 1897 as
a result of united efforts of various insurance, electrical, architectural and allied interests.
•The purpose of the code is the practical safeguarding of persons and property from hazards arising from
the use of electricity. Contains prescriptive installation requirements for premises wiring systems but is not
intended to be a design specification or an instruction manual for untrained persons.
•The code is adopted by the Minnesota Board of Electricity as required by Minnesota Statutes 326B.32
Subd. 2 (3) pursuant to Chapter 14.
EFFECTIVE DATE
•The 2020 NEC anticipated effective date is July 1, 2020, but subject to change.
CODE BOOK
The 2020 NEC is published by the National Fire Protection Association
(NFPA) and is adopted in Minnesota without amendment.
The NEC is available for purchase from the NFPA and free online
viewing is available with user registration, membership is not required.
TO VIEW CODES ONLINE FREE
•Visit www.dli.mn.gov/business/codes-and-laws to view the code.
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com
651-297-3000 or 1-800-657-3757
•National Fire Protection Association
One Batterymarch Park
Quincy, Massachusetts 02169-7471
1-800-344-3555
26 | G uide to the State Building Code
INDUSTRIALIZED MODULAR BUILDINGS
•Regulates the construction, review process and approval for industrialized modular buildings built away
from the site of occupancy by approved modular builders. Modular buildings may be any occupancy or
construction type allowed by code.
•Provides for Minnesota to become member of the Interstate Industrialized Building Commission.
•Contained in Minnesota Rules Chapter 1361. The rule incorporates parts of the 2007 Model Rules
and Regulations and 2007 Uniform Administrative Procedures of the Model Rules and Regulations for
Industrialized/Modular Buildings as adopted by the
Industrialized Buildings Commission.
•Regardless where it is manufactured, the building
must be constructed to the Minnesota State Building
Code when it is to be installed in Minnesota.
•Industrialized Modular Buildings must be constructed
in accordance with the 2020 Minnesota Building
Code.
EFFECTIVE DATES
•Interstate Industrialized Building Commission, 2007
Model Rules and Regulations and 2007 Uniform
Procedures became effective July 1, 2007.
•Minnesota Rule Chapter 1361, Industrialized Modular Buildings, became effective in 1995.
CODE BOOK
•The 2007 Model Rules and Regulations and 2007 Uniform Administrative Procedures are available online.
TO VIEW CODE ONLINE FREE
•Minnesota Rule Chapter 1361, Industrialized Modular Buildings
www.revisor.mn.gov/rules/?id=1361
•2007 IIBC Model Rules and Regulations and Uniform Administrative Procedures
www.interstateibc.org/forms
•
TO PURCHASE CODE BOOKS
•Minnesota’s Bookstore
www.mnbookstore.com
651-297-3000 or 1-800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html or 701-931-4533
CODE BOOK FACT SHEET
INDUSTRIALIZED MODULAR BUILDINGS
26 | Guide to the State Building Code G uide to the State Building Code | 27
MINNESOTA MANUFACTURED HOME CODE
•Regulates the installation and sales of manufactured homes. Licensing of manufacturers, dealers and
installers of manufactured homes built and installed to Code of Federal Regulations.
•Contains detailed regulations for installation and certification of manufactured homes, application forms to
sell manufactured homes and record keeping of the sales and installations.
•Is contained in Minnesota Rules Chapter 1350 and the Code of Federal Regulations CFR 3280, 3282, 3285,
3286 and 3288.
•Manufactured homes are required only to be
constructed to the Manufactured Home Code, CFR
3280 and 3282.
EFFECTIVE DATES
•Minnesota Rule 1350 became effective Jan. 4, 2010.
•CFR 3280 and 3282 became effective June 15, 1976.
•CFR 3288 became effective Feb. 8, 2008.
•CFR 3285 and 3286 became effective Jan. 1, 2009.
CODE BOOK
•Code of Federal Regulations is available at
http://portal.hud.gov/hudportal/HUD?src=/program_
offices/housing/rmra/mhs/csp.
TO VIEW CODE ONLINE FREE
•Minnesota Rule Chapter 1350, Manufactured homes
www.revisor.mn.gov/rules/?id=1350
•Code of Federal Regulations
https://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/rmra/mhs/csp
TO PURCHASE CODE BOOKS
•The Institute for Building Technology and Safety (IBTS) at www.ibts.org/publications.html
CODE BOOK FACT SHEET
MINNESOTA MANUFACTURED HOME CODE
28 | G uide to the State Building Code
PREFABRICATED BUILDINGS
•Governs the construction of prefabricated buildings. These buildings are intended for use as one- and
two-family dwellings or accessory buildings of closed construction built away from the site of occupancy
typically by vocational schools or lumber yards.
•Contains detailed regulations for the submittal of documents to be reviewed and approved prior to
construction. Includes requirements for inspections to determine compliance with the Minnesota State
Building Code.
•Is contained in Minnesota Rules Chapter 1360.
•Prefabricated buildings must be constructed in
accordance with the 2020 Minnesota Residential Code.
EFFECTIVE DATES
•Minnesota Rule Chapter 1360 became effective in 1995.
TO VIEW CODE ONLINE FREE
•Minnesota Rule Chapter 1360, Prefabricated Buildings,
is available at www.revisor.mn.gov/rules/?id=1360.
TO PURCHASE CODE BOOKS
•Minnesota's Bookstore
www.mnbookstore.com
651-297-3000 or 1-800-657-3757
•International Code Council
https://shop.iccsafe.org/state-and-local-codes/minnesota.html
701-931-4533
CODE BOOK FACT SHEET
PREFABRICATED BUILDINGS
28 | Guide to the State Building Code G uide to the State Building Code | 29
MINNESOTA FLOOD-PROOFING CODE
• Ensures that buildings and structures located in a flood hazard zone are properly flood-proofed or elevated in
accordance with prescribed standards.
• These regulations apply to the construction, alteration and repair of any building or parts of a building or
structure in the flood hazard area(s) of municipalities.
• Located in Minnesota Rules Chapter 1335. The rule adopts by
reference sections 100 to 1406 of the 1972 edition of the “Flood-
proofing Regulations” from the Office of the Chief Engineers,
U.S. Army, Washington, D.C., and made part of the State Building
Code.
EFFECTIVE DATES
• Minnesota Rule Chapter 1335, Flood-proofing, became effective
Jan. 14, 1974.
CODE BOOK
• 1972 Flood-proofing Regulations by the Office of the Chief
Engineers, U.S. Army, Washington, D.C.
TO VIEW CODES ONLINE FREE
• 1972 Flood-proofing Regulations by the Office of the Chief
Engineers, U.S. Army, Washington, D.C., available at www.dnr.
state.mn.us/waters/watermgmt_section/floodplain/index.html.
• Minnesota Rule Chapter 1335, Flood-proofing, is available at www.revisor.mn.gov/rules/?id=1335.
CODE BOOK FACT SHEET
MINNESOTA FLOOD-PROOFING CODE
30 | G uide to the State Building Code
STORM SHELTERS •Ensures that buildings or portions of buildings intended to shelter manufactured home park residents from
tornadoes and extreme winds are constructed to provide required protection. •Provides minimum standards of design and construction of manufactured home park storm shelters. •Is contained in Minnesota Rules Chapter 1370, Storm Shelters. The rule adopts by reference FEMA 361, the
Design and Construction Guidance for Community Shelters, July
2000, published by the Federal Emergency Management Agency,
Washington, D.C.
EFFECTIVE DATES •Minnesota Rule Chapter 1370, Storm Shelters, became effective
March 1, 1988.
CODE BOOK •It is available in the Minnesota State Law Library and the
Minnesota Department of Public Safety, Division of Emergency
Management, 85 State Capitol, Saint Paul, Minnesota 55155.
TO VIEW CODES ONLINE FREE •Minnesota Rule Chapter 1370, Storm Shelters, is available at
www.revisor.mn.gov/rules/?id=1370.
•www.fema.gov/fema-p-361-safe-rooms-tornadoes-and-
hurricanes-guidance-community-and-residential-safe-rooms
CODE BOOK FACT SHEET
STORM SHELTERS
30 | Guide to the State Building Code
Minnesota Department of Labor and Industry
Construction Codes and Licensing Division
443 Lafayette Road N., St. Paul, MN 55155
1-800-657-3944
www.dli.mn.gov
CITY OF BROOKLYN CENTER
Notice is hereby given that a Public Hearing will be held on the 8th day of June 2020, at 7 p.m. or
as soon thereafter as the matter may be heard at the City Hall, 6301 Shingle Creek Parkway, to
consider an ordinance relating to building codes in the City.
Auxiliary aids for persons with disabilities are available upon request at least 96 hours in advance.
Please contact the City Clerk at 763-569-3300 to make arrangements.
ORDINANCE NO. ____________________
AN ORDINANCE AMENDING CHAPTER 3 OF THE CITY CODE OF
ORDIANCES RELATING TO BUILDING CODES
THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER DOES ORDAIN AS
FOLLOWS:
Section 1. Brooklyn Center City Code, Section 3-101, is hereby amended as
follows:
CHAPTER 3 - BUILDING CODE
Section 3-101. Building Code. The Minnesota State Building Code, established pursuant to
Minnesota Statutes, Sections 16B.59 to 16B.75, one copy of which is on file in the office of the
city clerk is hereby adopted as the building code for the City of Brooklyn Center. Such code is
hereby incorporated in this ordinance as completely as if set out in full.
A. The following chapters of the Minnesota State Building Code are adopted and
incorporated as part of the building code for the City of Brooklyn Center:
1. 1300 – Administration of the State Building Code
2. 1301 – Building Official Certification
3. 1302 – Construction Approvals
4. 1303 – Minnesota Provisions of the State Building Code and Window Fall
Prevention and Radon
5. 1305 – Adoption of the 20122018 International Building Code with State
Amendments
6. 1307 – Elevators and Related Devices
7. 1309 – 20122018 International Residential Code with State Amendments
8. 1311 – 20122018 International Existing Building Code Adopted with State
Amendments
9. 1315 – Adoption of the 20142017 National Electrical Code
10. 1322 – 2012 International Energy Conservation Code (Residential Provisions)
Adopted with State Amendments
11. 1323 – International Energy Conservation Code (Commercial Provisions)
Adopted with State Amendments
12. 1325 – Solar Energy Systems
13. 1335 – Floodproofing Regulations
14. 1341 – Minnesota Accessibility Code Amends 20122018 International Building
Code, Chapter 11 (is based on ICC/ANSI A117.1/2009)
15. 1346 – 20122018 International Mechanical and Fuel Codes adopted with State
Amendments
16. 1350 – Manufactured Homes
17. 1360 – Prefabricated Buildings
18. 1361 – Industrialized/Modular Buildings
19. 1370 – Storm Shelters (Manufactured Home Parks)
20. 4714 – 2012 Edition of Uniform Plumbing Code with State Amendments
21. 7511 – Minnesota Fire Code
22. Minnesota Energy Code, Minnesota Rules, Chapter 7670 as provided in
Minnesota Statutes Section 16B.617, and Minnesota Rules, Chapters 7672, 7674,
7676, and 7678.
B. The following optional chapters of the Minnesota State Building Code are hereby
adopted and incorporated as part of the building code for the City of Brooklyn Center:
1. International Building Code Appendix J (Grading)
2. 1306, Special Fire Protection Systems, 1306.0020 Subpart 2 Existing and New
Buildings
3. 1335, Floodproofing regulations parts 1335.0600 to 1335.1200.
Section 2. Effective Date. This ordinance shall be effective after adoption and
thirty days following its legal publication.
Adopted this day of , 2020.
Mayor
ATTEST:
City Clerk
Date of Publication
Effective Date
(Strikeout indicates matter to be deleted, double underline indicates new matter.)
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :N/A
BY:C or nelius Boganey, City M anager
S U B J E C T:Res olu'on E xpres s ing S upport for Conv er'ng H ighw ay 252 F r om an at-grade Expres s w ay
to a G rade S eparated F reew ay
B ackground:
At the Mar ch 9 , 2020, City Council this item w as discussed and tabled to the C ity C ouncil's next mee'ng.
(S ee excerpts from March 9, 2 020 City Council mee'ng minutes)
O n February 10, 2 0 2 0 the C ity C ouncil dis cus s ed the cur rent status of the H ighw ay 2 5 2 Environmental
Rev iew. At the mee'ng, C ity M anager Boganey noted the mos t cri'cal is s ue at this point is prov iding a
cons ensus regarding the C ity Council/E DA’s commitment to the conv ers ion of H ighw ay 252 into a freew ay.
T he mee'ng minutes of the February 10, 2 020 C ity Council Wor k S es s ion indicated that “T he major ity
Consens us of the C ity C ouncil/E DA w as to change H ighw ay 252 from a highw ay to a freeway, but the C ity
Council/E DA is not commi<ed to any of the propos ed plans.”
B udget I ssues:
T here are no budgetary is s ues with the propos ed ac'on.
S trate gic Priories and Values:
Key Transporta'on I nves tments
AT TA C H M E N TS :
D escrip'on Upload D ate Ty pe
Res olu'on 5/5/2020 Resolu'on L e<er
Excerpt from M arch 9, City Council mee'ng 5/6/2020 Backup M aterial
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO. _______________
RESOLUTION EXPRESSING SUPPORT FOR CONVERTING HIGHWAY 252
FROM AN AT-GRADE EXPRESSWAY TO A GRADE SEPERATED
FREEWAY
WHEREAS, Highway 252 was constructed as an at-grade expressway in 1985
and 1986; and
WHEREAS, Highway 252 began to experience operational and safety as traffic
volumes increased through the 1980s and 1990s; and
WHEREAS, in the early to mid-2000s the cities of Brooklyn Park and Brooklyn
Center began more intensive discussions with MnDOT regarding the congestion and safety on
Highway 252; and
WHEREAS, several corridor studies and technical analysis have concluded that
Highway 252 would be a safer, less congested roadway if converted from an at-grade expressway
to a freeway; and
WHEREAS, the meeting minutes of the February 10, 2020 City Council Work
Session indicated that “The majority Consensus of the City Council/EDA was to change Highway
252 from a highway to a freeway, but the City Council/EDA is not committed to any of the
proposed plans.”
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota, that the majority Consensus of the City Council/EDA is to change
Highway 252 from an expressway to a freeway.
May 11, 2020
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
EXCERPT FROM MARCH 9, 2020 CITY COUNCIL MEETING
10b. RESOLUTION NO. 2020-35 EXPRESSING SUPPORT FOR CONVERTING
HIGHWAY 252 FROM AN AT-GRADE EXPRESSWAY TO A GRADE
SEPARATED FREEWAY
Mayor Elliott stated he would like the City Council to table this Resolution. He added important
discussions have occurred. Additionally, he attended a meeting at the State Capitol last week with
City Manager Boganey that included County Commissioner Opat; State Representatives and
Senators that represent Brooklyn Center and Brooklyn Park; representatives of Minnesota
Department of Transportation; Brooklyn Park Mayor Jeff Lunde and Brooklyn Park’s City
Engineer, as well as three members of the Minneapolis City Council. Elected officials representing
Minneapolis are proposing a bill that would mandate the provision of Bus Rapid Transit (BRT)
within the 252 Corridor plan.
Mayor Elliott stated Brooklyn Center will be included in this transit discussion, and a City Council
review is required to determine what additional language should be included in a Resolution that
would indicate support for the plan. He added he is proposing that this Resolution be tabled for
further discussion and consideration.
City Attorney Troy Gilchrist stated, as a reminder of rules for tabling motions when a motion is
made and seconded, it is not debatable and must go to a vote. He added tabled motion without a
specific time frame must come back to the next consecutive regular meeting, or a specific date can
be included. He added a Resolution that is tabled indefinitely cannot be put back on the agenda
without majority approval by the City Council.
Councilmember Graves requested clarification regarding Mayor Elliott’s initial comments and
explanation, and how that specifically relates to the proposed Resolution.
Mayor Elliott stated the Task Force gave a presentation earlier in the meeting and presented
information that studies show that, based on the increase in traffic, the 252 Corridor will have the
highest levels of asthma and pollution-related illnesses. He added this statistic includes Brooklyn
Center and Minneapolis. He noted traffic will be traveling from Anoka County into Brooklyn
Center and on to Minneapolis.
Mayor Elliott stated the Resolution, which expresses support for conversion of 252 from a highway
to a freeway, would also indicate support for the increased speed and the number of cars it will
represent, as well as an increase in the number of individuals with related respiratory conditions.
He added he suggests including an indication that those issues will be addressed before we can
support an increase in the amount of traffic.
Councilmember Graves asked how the recent meeting referenced by Mayor Elliott is connected to
the transit aspect of the project.
Mayor Elliott stated including transit would reduce the number of cars.
Councilmember Graves stated transit options are already included as part of the plans for
conversion from a highway to freeway.
Mayor Elliott stated the City of Brooklyn Center’s current plan does not include consideration of
BRT. He added North Minneapolis has a study that indicates that transit is warranted.
Councilmember Graves asked whether the discussion at last week’s meeting at the State Capitol
related to the conversion of 252 to a freeway, or whether the purpose of the meeting was to ensure
that transit is included as part of the conversion.
Mayor Elliott stated concerns were expressed about widening the road because that would mean
more cars. He added there are general concerns about converting 252 to a freeway. He noted the
City Council should have a conversation regarding conversion of 252 to a freeway and what that
will mean for Brooklyn Center and adjacent communities.
Mr. Boganey stated the net result of the conversation at last Friday’s meeting was that there was a
general agreement that it is important to assure that provisions will be made to include mass transit
opportunities as part of the 252 design. He added this type of provision will help to mitigate issues
related to an increase in vehicles and carbon emissions. He noted the attendees agreed to work
together to ensure that the design is sufficiently robust to allow for future mass transit options.
Councilmember Graves stated the City Council has already reviewed the information, provided by
the Task Force and representatives from various agencies who have been working on this project
for years, that mass transit, and the assurance that community members will have access to
opportunities, is a very important concern.
Councilmember Graves stated, at its last meeting, the City Council unanimously agreed to address
this Resolution at tonight’s meeting.
Councilmember Graves moved and Councilmember Lawrence-Anderson seconded to adopt
RESOLUTION NO. 2020-35 Expressing Support for Converting Highway 252 from an At-Grade
Expressway to a Grade Separated Freeway to the City Council’s next meeting.
Mayor Elliott and Councilmember Butler voted against the same. Motion failed.
Mr. Gilchrist stated the initial Resolution has not been disposed of, as the motion failed. He
recommended a Resolution should be brought by an adopted motion.
Councilmember Graves stated she would like to make a motion to table until the full City Council
is present to vote.
Mayor Elliott stated the motion should be continued indefinitely, and the City Council can review
it again at a later date.
Mr. Gilchrist stated if the matter is tabled indefinitely, it shall not be rescheduled without at least
a majority approval of the City Council. He added the City Council could agree to schedule this
for their next meeting.
Mayor Elliott stated this should be tabled indefinitely, to give the City Council time to have a work
session. He added discussions and developments are underway that would be useful for the City
Council to understand.
Councilmember Lawrence-Anderson stated she does not support an indefinite tabling of this item.
She added a specific meeting date should be stated, and she would like to see this Resolution on
the City Council’s next meeting agenda.
Mayor Elliott stated, before last Friday, the City Council was not aware that Minneapolis was
engaged in a discussion regarding this project. He added their elected officials have put forth a
bill about this project. He noted he has spent a lot of time reviewing this issue, including the
meeting on Friday as well as follow-up conversations, and the City Council should allow time to
fully digest before a resolution is proposed. He noted there should be enough time to subsume the
information before this item is placed on a meeting agenda.
Councilmember Lawrence-Anderson stated if all pertinent information is provided to the City
Council with 2 weeks to review and prepare before the next City Council meeting, that is sufficient.
She requested that all information be submitted to the City Council as soon as possible to prepare
for consideration at the next meeting. Councilmember Graves agreed.
Mayor Elliott stated some are privy to more information that has been reviewed in the last week
than others. He added the City Council must consider all the benefits and consequences to the
community, and in the end, make the right set of choices as a City Council.
Councilmember Lawrence-Anderson requested that Mayor Elliott share any information that he
may have that the City Council does not have. She reiterated that all information should be
provided for the City Council’s review if the Mayor is privy to additional information.
Mayor Elliott stated the information he has is based on the meeting he attended last week, and
subsequent conversations. He added he will do his best to get the additional information to the
City Council.
Councilmember Graves stated Mayor Elliott mentioned a bill that was being introduced. She asked
for the name of the bill. Mayor Elliott stated he is unsure.
Mr. Boganey stated he has a copy of the bill that he will provide for the City Council. He added
the bill states that funding for the project should not go forward unless there is a requirement that
bus rapid transit will be provided.
Councilmember Graves asked what other officials the Mayor has been having conversations with,
so she can reach out to them for updates. She added she has spoken with Commissioner Opat.
Mayor Elliott stated he spoke with Minneapolis Councilmember Cunningham, and also
Councilmember Ellison. Mr. Boganey stated the Council President was also present.
Councilmember Graves stated she would reach out to those three individuals.
Councilmember Graves moved and Councilmember Lawrence-Anderson seconded to table
consideration of RESOLUTION NO. 2020-35 Expressing Support for Converting Highway 252
from an At-Grade Expressway to a Grade Separated Freeway to the City Council’s next meeting.
Motion passed unanimously.
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :M eg B eekman, Community D ev elopment D irector
BY:J immy L oy d, Economic D evelopment Coordinator
S U B J E C T:Res olu,on I den,fying the N eed for L ivable C ommuni,es D emons tra,on A ccount (L C DA )
F unding and A uthorizing an A pplica,on for G rant F unds
B ackground:
T he L ivable C ommuni,es D emons tra,on A ccount (L C D A ) is a grant progr am w hich is offered by the
Metropolitan C ouncil through the L ivable C ommuni,es A ct. T he program funds innov a,ve
(re)development proj ects that efficiently link hous ing, jobs, s ervices and trans it in an effort to create
ins piring and livable communi,es. L C DA grants ar e offered for tw o purpos es , both pre-dev elopment and
dev elopment, w ith two funding rounds per year. P re-dev elopment grant applica,ons hav e a maximum
funding amount of $1 0 0 ,000 per round, per applica,on with a grant term of 2 y ears and a required 25 %
local match. Eligible applicants for L C DA funds include municipali,es cur rently par,cipa,ng in the
Metropolitan L ivable C ommuni,es H ousing I ncen,ves P rogram, C oun,es , Economic D evelopment
A uthori,es, H ous ing and Redevelopment A uthor i,es , C ommunity D evelopment A uthori,es and Port
A uthori,es.
Eligible us es for the L C D A P re-D ev elopment funding includes the following:
P roject P lanning A c,v i,es
D evelopment of s ite plans;
P has ing or s taging plans for an iden,fied parcel or mul,ple con,guous parcels ;
D es ign w ork s hops for development alter na,ves ;
Community engagement beyond public mee,ngs .
F inancial A nalys is
Feasibility s tudies of one or mul,ple dev elopment scenarios for an iden,fied parcel, leading to the
development of a pr o-formal
Market s tudy to determine the demand for the proposed development proj ect.
S ite A naly s is
P roject-s pecific s tor mwater management plans ;
S oil tes ,ng to determine feasible land us es for the site (not environmental tes ,ng).
Travel D emand Management P lan
B ackground
T he four E DA -ow ned proper,es located at the northwes t corner of 61st Av enue Nor th and Brooklyn
Boulevard, w hich total a combined 1.79 acres , ini,ally generated interest from T hor L iving, L L C (later
Coali,on D evelopment, L L C ) in 2018, who pres ented plans to the City Council for a 1 1 3 -unit, mixed income
apartment building. A lthough C oali,on D ev elopment, L L C secured a P reliminar y D ev elopment A greement
and P urchas e A gr eement from the C ity, they w er e unable to follow through w ith the con,ngency period
condi,ons outlined under the P urchase A greement (e.g. secure financing, receiv e all neces s ary land us e
approvals from the C ity ) by O ctober 23, 2019; ther efor e, the P urchas e A gr eement w as no longer valid.
D eve lopme nt P lan
T he configura,on as cur rently propos ed on the s ite plan contemplates the r edevelopment of the northw es t
corner of 61s t Av enue North and Brooklyn Boulevard into a four story, 8 3 -8 8 unit apartment building,
although the dev eloper (J O Companies , L L C ) has indicated the poten,al for up to 8 8 units of hous ing.
A s proposed, 5 1 -per cent of the units in the dev elopment would be three-bedr ooms , w hich is unique giv en
that one and tw o-bedr oom units are more oG en the norm. A s the project is intended to prov ide housing
op,ons to thos e mak ing 50 to 60% A M I (A rea M edian I ncome) and 25-percent of the units set aside for
project-based S ec,on 8, the larger three-bedr oom units would be aHrac,v e for families looking for rental
op,ons in Brookly n C enter.
T he building ameni,es w ould include a fitnes s center, bus iness/community center, and the units w ould
feature in-unit w as her s and dryers, balconies , and be pet-friendly. The grounds would allow s pace for
community gardens and leverage a direct connec,on to Wangstad Park, located wes t of the property.
T he applica,on for L C D A pre-dev elopment funds for J O Companies w ould be us ed for community
engagement, mar ket analy s is and site analy s is /planning and financial analy s is . The gr ant applica,on has a
total reques t of $90,0 0 0 from the M etropolitan C ouncil, w hich w ould requir e an addi,onal $22,500
commitment fr om the City of Brooklyn Center if the gr ant applica,on is approv ed and funded. The grant
funding will allow for the developer to hire exper ts w ho s pecializ e in the lis ted gr ant ac,v i,es w hile bringing
addi,onal experience to the dev elopment team. T he work by the consultants that w ould be hired would
make J O Companies more compe,,ve for future dev elopment grant oppor tuni,es offered through the
Metropolitan C ouncil and H ennepin County.
W hile the City cur rently has mul,ple development pr ojects in the pipeline, this pr oject is unique in that it
encaps ulates a dis ,nct mix of us es which, if s ucces s ful w ould be highly innova,v e, and als o aligns w ell w ith
the C ity's strategic prior i,es . F urther, this proj ect would likely not move for w ar d w ithout the as s is tance of
the grant funds .
B udget I ssues:
T here will be a required match of $22,500 from the C ity as a requirement of this gr ant, w hich w ill be funded
from T I F 3 funds .
S trate gic Priories and Values:
Targeted Redevelopment
AT TA C H M E N TS :
D escrip,on Upload D ate Ty pe
Res olu,on 5/5/2020 Resolu,on L eHer
M et C ouncil P re D evelopment A pplica,on 5/5/2020 Backup M aterial
Member __________ introduced the following resolution and moved its
adoption:
RESOLUTION NO. 2020- ___
RESOLUTION IDENTIFYING THE NEED FOR LIVABLE COMMUNITIES
DEMONSTRATION ACCOUNT (“LCDA”) FUNDING AND AUTHORIZING AN
APPLICATION FOR GRANT FUNDS
WHEREAS, the City of Brooklyn Center is a participant in the Metropolitan Livable
Communities Act (“LCA”) Local Housing Incentives Program for 2020 as determined by the
Metropolitan Council, and is therefore eligible to apply for LCA Livable Communities
Demonstration Account and Tax Base Revitalization Account Transit Oriented Development
(Collectively, “TOD”) funds; and
WHEREAS, the City has identified a proposed project within the City that meets LCDA
purposes and criteria and is consistent with and promotes the purposes of the Metropolitan Livable
Communities Act and the policies of the Metropolitan Council’s adopted metropolitan development
guide; and
WHEREAS, the City has the institutional, managerial and financial capability to adequately
manage an LCDA grant; and
WHEREAS, the City certifies that it will comply with all applicable laws and regulations as
stated in the grant agreement; and
WHEREAS, the City acknowledges LCDA grants are intended to fund projects or project
components that can serve as models, examples or prototypes for LCDA development or
redevelopment elsewhere in the Region, and therefore represents that the proposed project or key
components of the proposed project can be replicated in other metropolitan-area communities; and
WHERES, only a limited amount of grant funding is available through the Metropolitan
Council’s Livable Communities LCDA initiative during each funding cycle and the Metropolitan
Council has determined it is appropriate to allocate those scarce grant funds only to eligible projects
that would not occur without the availability of LCDA grant funding.
NOW, THEREFORE, BE IT RESOLVED that, after appropriate examination and due
consideration, the governing body of the City:
1. Finds that it is in the best interests of the City’s development goals and priorities for the
following proposed LCDA project to occur at this particular site at this particular time:
JO Companies – Brooklyn Center
2. Finds that that LCDA Project component(s) for which Livable Communities LCDA funding
is sought:
2
a. Will not occur solely through private or other public investment within the
reasonable foreseeable future; and
b. Will occur within the term of the grant award (two years for Pre-Development
grants, and three years for Development grants,) only if Livable Communities
LCDA funding is made available for this project at this time.
3. Authorizes the Business and Workforce Development Specialist to submit on behalf of the
City an application for Metropolitan Council Livable Communities LCDA grant funds for
the LCDA project components identified in the application, and to execute such agreements
as may be necessary to implement the LCDA Project on behalf of the City.
May 13, 2019
Date Mayor
ATTEST: ___________________
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Application
14100 - 2020 Spring LCDA Pre-Development - Final Application
14218 - 61st and Brooklyn Blvd
LCDA Pre-Development
Status:Submitted Submitted
Date:05/01/2020 9:51 AM
Applicant Information
Primary Contact:
Name:*Jimmy L Loyd
Salutation First N am e M iddle Nam e Last Nam e
Title:*Economic Development Coordinator
Department:
Email:*jloyd@ci.brooklyn-center.mn.us
Address:*6301 Shingle Creek Parkway
*Brooklyn Center Minnesota 55411
City S ta te/P ro v ince Postal C o d e /Z ip
Phone:*763-569-3301
Phone Ext.
Fax:
What Grant Programs are
you most interested in?*LCDA Pre-Development
Organization Information
Name:*BROOKLYN CENTER, CITY OF
Jurisdictional Agency (if
different):
Organization Type: City
Organization Website:
Address:*6301 SHINGLE CREEK PKWY
*BROOKLYN CENTER Minnesota 55430
City S ta te/P ro vince Postal C o d e /Z ip
County:*Hennepin
Phone:*763-569-3320
Ext.
Fax:
Primary Grantee Information
Grantee
Type *City
City in which
the project is
located*
Brooklyn Center
If th e city nam e does not appear in this list, contact the appropriate LCA program coordinator.
If more than
one
governmental
entity is
collaborating
on this
application,
please
explain and
list the names
of all
participants
Who will be the Project Manager at the city, county or local development authority for this
project?
Contact
name*Jimmy Loyd
Mailing
address*6301 Shingle Creek Parkway
City*Brooklyn Center
Phone*763-569-3301
D o n o t e n te r p u n ctu a tion (enter as "6515551212")
Email
address*jloyd@ci.brooklyn-center.mn.us
After entering this inform ation, click SAVE in the Com m and Bar at the top of the screen.
Developer
Organization
name
Street
address
City, state,
zip
Contact
name
Phone Email
JO Companies MN Johnny
Opara
612-743-
5392 johnny.opara@jocompanies.org
Other project contacts
Name Title Organization Street
address
City,
state, Zip
Phone Email
Meg
Beekman
Community
Development
Director
CIty of
Brooklyn
Center
6301
Shingle
Creek
Parkway
Brooklyn
Center MN 55430
763-
569-
3305
mbeekman@ci.brooklyn-
center.mn.us
Section A: Project Information
A.1 Project Location
Address or Intersection
of Project:*61st and Brooklyn Blvd
A.2 Livable Communities Goals
Provide an overview of the proposed development project the pre-development activities will inform. How
will the proposed project meet Livable Communities goals? Specifically address how it will intensify land use
and increase land use diversity; improve the pedestrian and/or bicycle environment; provide connections to
surrounding land uses and job centers; and conserve natural resources. *
The development team is proposing a 4 story, 88-unit (83-88 unit mix range) workforce housing
development in Brooklyn Center. The income/unit mix will consist of 50%-60% AMI. 51% of the units in
the proposed development are 3-bedrooms which is rare but needed for the growing, multi-generational
community in Brooklyn Center.
The building amenities include a community garden, fitness center, business/community center, in-unit
washer and dryer, pet-friendly, and balconies. The site is located on the corner of Brooklyn Blvd and 61st
Ave.
As part of the Livable Communites Goal, the developer and City plan to partner on making city owned
Wangstead Park one of the many destinations for the residents. Wangstead Park is located directly
adjacent to the property and will be a wonderful shared amenity for the proposed development. Since the
development will be aimed directly at families, this partnership will give more open outdoor space for
children to explore in the commnity.
1BR 4 Units 50% AMI
1BR 1 Unit 50% AMI
1BR 10 Units 60% AMI
2BR 9 Units 50% AMI
2BR 1 Unit 50% AMI
2BR 18 Units 60% AMI
3BR 9 50% AMI
3BR 1 50% AMI
3BR 35 60% AMI
(2,000 characters)
Describe the current and future land uses on the site. Specify types of uses, number and condition of
existing buildings, site history, etc. *
The 1.7 acre site is currently vacant with no structures on the site. The first of the four parcel property was
aquired starting 2012 with the last property being acquired in 2019.
(2,000 characters)
A.3: Housing
Does the proposed project include
housing? *Yes
If yes, how will the project help to meet your negotiated affordable lifecycle housing goals? Be as specific as
possible in describing current and proposed housing mix.
This project will help us not only add new multi family to accompany our single family housing stock, but it
will also bring more affordable options for families in Brooklyn Center.
The project will have the following unit mix. (Bedrooms, Unit Count, and AMI level)
(2,000 characters)
How will the proposed development project better connect jobs and housing? *
This project will connect residents to their jobs within the communities and beyond. The project is located
within feet of the 723 bus transit line which travels to key destinations like North Hennepin Community
College and along Brooklyn Blvd where many residents work. For those who live outside of the city, but
would like to live in Brooklyn Center to reduce their work commute this housing option would allow for
such a move. In a longer time horizon, the hope is new development like this will encourage businesses
to open up in brooklyn park and stay for a long time to come.
(2,000 characters)
A.4 Pre-Development Grant Request
Request
amount
Description of use Match
amount
Match
method
Estimated
Commitment Date
$40,000.00
Project Planning (site plan development,
design workshops, community
engagement)
$10,000.00 Combination
$30,000.00 Financial Analysis (market feasibility and
pro forma creation) $8,250.00 Cash
$30,000.00 Site Analysis (Storm water management
and soil testing) $8,250.00 Combination
$100,000.00 $26,500.00
A.5 Grant-Funded Activities Detail
Grant-Funded Activity How does this activity support
incorporating LCDA principles into the
larger development project? LCDA
principles can be found in the LCDA Pre-
Development Application Guide.
What is the product you expect from
this grant activity?
(e.g. 3 site plan alternatives,
Market study with 2-3 development
scenarios)
Development of Site Plans
or Development Staging
Plans
This activity helps inform the
development in respect to achieving
these following LCDA goals. Interrelate
two or more of the following:
development or redevelopment,
affordable housing, and employment
growth; Intensify land uses and lead to
more compact development or
redevelopment; Achieve a mix of
housing opportunities;
From this grant activity, we expect
to have multiple site plan
possibilities to create the best
development for the site. One has
been created, but once more
information is discovered, the plan
may need to be altered. It is good to
have more than one option
available.
Market or Feasibility Study
to develop and evaluate
development scenario(s)
This activity helps inform the
development in respect to achieving
these following LCDA goals. Interrelate
two or more of the following:
development or redevelopment,
affordable housing, and employment
growth; Intensify land uses and lead to
We expect to have a detailed
market study which will better
inform the developer on the
potential customer base and where
their needs are most heavily
weighed. It will also show the
developer more in depth what the
more compact development or
redevelopment; Achieve a mix of
housing opportunities;
rents can be and if more
affordability is needed, and what
cap that could potentially create.
Design
Workshops/Community
Engagement for
Development Project or
Zoning Ordinance
This activity helps inform the
development in respect to achieving
these following LCDA goals. Interrelate
two or more of the following:
development or redevelopment,
affordable housing, and employment
growth; Intensify land uses and lead to
more compact development or
redevelopment; Achieve a mix of
housing opportunities;
The product we expect from this
activity is a robust design workshop
and community engagement that is
facilitated by a consultant who will
be able to encourage active
participation, log the results, and
implement into the larger plan.
Soil testing on project site to
determine feasible land
uses (not related to
contamination)
This activity helps inform the
development in respect to achieving
these following LCDA goals. Interrelate
two or more of the following:
development or redevelopment,
affordable housing, and employment
growth; Intensify land uses and lead to
more compact development or
redevelopment; Achieve a mix of
housing opportunities;
We expect to have some level of
soil testing completed on this site to
determine any remediation efforts.
We expect to also create a storm
water management plan for the site
as well.
Other Project Study
This activity helps inform the
development in respect to achieving
these following LCDA goals. Interrelate
two or more of the following:
development or redevelopment,
affordable housing, and employment
growth; Intensify land uses and lead to
more compact development or
redevelopment; Achieve a mix of
housing opportunities;
With a financial analysis, we expect
to produce a finalized pro forma
and TIF analysis.
B: Readiness
B.1: Comprehensive Plan
What elements of your comprehensive plan does your proposed project address? *
This project addresses multiple elements of the City’s 2040 Comprehensive Plan. The 2040 Plan created
an Overlay District for Brooklyn Boulevard and its surrounding parcels. Brooklyn Boulevard is currently a
mix of single-family homes, retail and service uses. The 2040 Plan envisions higher intensity land uses
along the corridor, a mix of housing types and affordability, neighborhood serving commercial uses, and a
more bicycle and pedestrian-oriented environment connected by human-scaled green spaces and
culturally-appropriate public art. In addition, one of the housing goals identified in the 2040 Plan is to
promote a diverse housing stock that provides accessible housing to all residents. This project directly
supports the implementation of the vision for the Brooklyn Boulevard corridor by significantly increasing
density of the site, incorporating connections to both the adjacent Wangstead Park and the planned
regional trail along the corridor, and integrating creative partnerships to accomplish more deeply
affordable units. Further, the project is providing a much needed housing product which the City has
identified a clear need for; legally-binding affordable housing and three-bedroom apartment units.
(2,000 characters)
Is there a small area plan
in place for your project
area? *
No
B.2: Capacity
Does the project applicant have the capacity to successfully manage the grant? If yes, please describe.*
The project applicant JO Companies has the capacity to successfully manage the grant. Mr. Opara has
put togeter a development team of experienced members who have over 30 years of experince in real
estate development and asset management. As a supportive partner of the project, the city will be also
help as we contribute to the project over the grant period.
(2,000 characters)
Who will
primarily
manage the
grant
activities?*
Johnny Opara of JO Companies
(500 characters)
Does the project team (applicant staff, consultants, etc.) have the capacity to successfully carry out the grant
activities in the 24-month grant period? If yes, please describe. *
The project team has the capacity to successfully carry out the grant activities in the 24 month grant
period. They have already engaged consultants in design, finance, legal and construction. As the project
moves forward, the engaged consultants and partners will be utlized for the necessary grant activities and
there should not be any gaps in technical knowledge.
(2,000 characters)
How will the applicant (City/County/Development Authority) and the rest of the project team work together to
ensure that grant activities are carried out successfully?*
The city of Brooklyn Center EDA is committed to providing assistance for financial analysis for city
resources, providing zoning and design element consultation to assist with the site planning and also help
with community engagement efforts. The city plans to hold regular meetings with project team members
as a central hub for communication on the project. The City of Brooklyn Center is committed to being a
partner with the developer as the project moves along.
(2,000 characters)
Will there be a
sub-recipient
agreement
between the
grant
applicant and
the
developer?
Yes
B.3: Project Timeline
Please provide a timeline of when in the 24-month grant term your grant requested activities will occur.
Break activities into what will be completed in the first 6 months, 12 months, and 18 months and include
additional project milestones as they relate to the future development project. *
0-6 months: Completion of market study and financial analysis, soil testing, site planning and community
engagement event planning
8-12 months: Community engagement, design workshops, continued financial analysis if necessary.
11-18 months: Final design and financial analysis for finance packaging.
(2,000 characters)
C: Demonstration Value
What specific, demonstrated community need does this project fill? How did you determine that need?*
The community need this project fills is bringing newer multifamily housing to the market. Until recently,
there had not been new multi family development for over 40 years. The older housing stock limits not
only the ability to grow the population base, but it limits the economic diversity as well. Aspiring to bring a
unique product to the market, the developer proposes to bulid a majority of the units as three bedrooms.
The grant funds will be used to determine the best unit mix and rents based on the market data.
(2,000 characters)
Describe unique or innovate elements of your project or process that best meet identified community needs.
*
One of the best innovative elements of the project is its partnership with the neighboring senior living
facility. The developer had the foresight to reach out and see how children and their families can interact
with the seinor living residents. Often times seniors can be lonely and not have a lot of visitors. They have
a lot of wisdom and life experience they can pass down, and younger residents have high energy levels
and often time look for organized opportunities to be a part of. Specifics of the partnership have not been
outlined, but each party is committed to working with one another once this project is built.
(2,000 characters)
What can the region learn from your project and/or process? How will you document those findings? *
The largest opportunity for learning for a region is how multigenerational neighborhoods can coexist. If
given the opportunity and resources, people can actively integrate and engage one another in the
community across generations. Plans to document these findings will need to be established, but telling a
story through pictures and narration could be the best way to show how the partnership worked.
(2,000 characters)
D: Catalytic Value
How will LCDA Pre-Development funds move the future development project forward?*
LCDA Pre-Development funds will move the future development project forward by allowing more indepth
planning and analysis to design and create a project that best serves the community. The money will
ensure the project gains more support by understanding the market and financial implications to create
solutions earlier instead of discovering there is no path to development later in the process.
(2,000 characters)
Do you believe this
project will catalyze
additional private
investment? *
Yes
Describe how the development project may catalyze additional intensification and private investment in the
project area. How would this potential future investment inform your understanding of how the risk of
displacement is influenced by the development project?*
By bringing new housing online, businesses and retailers will have more of an incentive to relocate or
start new in Brooklyn Center. They would be able to take advantage of a growing population base for
workforce needs and consumer needs. This future investment would not encourage displacement, but
rather create capacity to bring more people into the community. The risk of displacement becomes less
because the site is vacant, and we will not be displacing residents. We can show how the utilization of
vacant or blighted land can be leveraged to help the city build capacity for residents and businesses.
(2,000 characters)
E: Partnerships and Process
Have you started a
community engagement
process?*
No
If you have not started an engagement process, do you have a defined community engagement plan? Please
describe your plan, including specific engagement goals, how your plan will achieve those goals, and
partnerships you plan to pursue.
Since this is an EDA owned site there will need to be a public hearing for any landsale. The development
team plans to partner with community based organizations for engagement. Additional engagement will
include community listening sessions at various stages of pre development. The goal is to engage 100
residents within a mile radius of the property to participate. The developer plans to meet the goal of 100
residents by sending out regular communication in partership with the city of Brooklyn Center and with
chosen community based organizations.
(2,000 characters)
Are you partnering directly with community members and/or community based organizations? If yes, please
describe. *
There are plans to leverage community based organizations who have deeper relationships with
residents of mutilple cutlures. There have been organizations identified but not selected as of this time.
(2,000 characters)
How does or will your engagement processes mitigate existing racial, ethnic, cultural, or linguistic barriers
and include people of diverse ages, races, ethnicities, incomes, national origins, and abilities?*
By using multiple community based cultural organizations to market the listening sessions and other
engagement activities, we hope to mitigate ethnic, cultural and linguistic barriers. Having engagement
activities at various times allows for people to attend sessions that better suit their schedule and the goal
is to allow as many people to participate as possible.
(2,000 characters)
How does or will your engagement process identify and engage those most impacted by the grant funded
grant activity or future development project?*
The engagement process will examine the demographic of the community and who lives near the
proposed site. The goal is to specifically invite nearby residents to any engagement sessions. The
developers objective is to be a partner with the community and not just a neighbor.
(2,000 characters)
How will the project incorporate and be responsive to community input and vision? Be specific about the
input as well as how you will evaluate which elements will be included in the project. How will you
communicate this process to your community? If you have already started your engagement process, please
describe how you have incorporated community vision thus far, how you evaluated which elements were
included and which were not, and how you are communicating this to your community. *
The project will incorporate and be responsive to the commnity input by documenting feedback during
engagement sessions. The process will be expalined to community menbers clealry as they paricipate.
The development team plans to enage a consultant to help them craft a complete plan to best serve the
commnuity.
(2,000 characters)
Will there be additional
community engagement?
*
No
F: Parcel Information
F.1 Parcels
PIN Address County
3411921430050 6101 Brooklyn Blvd Brooklyn Center, MN 55429 Hennepin
3411921430049 6107 Brooklyn Blvd Brooklyn Center, MN 55429 Hennepin
3411921430051 3600 61st Ave N Brooklyn Center, MN 55429 Hennepin
3411921430052 3606 61st Ave N Brooklyn Center, MN 55429 Hennepin
F.2: Site Area
What is the gross square
footage of the project
site?*
77403
77403
What is the NET
BUILDABLE area in
square feet within the
project site?*
Excluded area*0
If any area has been excluded, describe why.
(2,000 characters)
Section G.1: Required Attachments
Attachment Description File Name Type
File
Size
Parcel Map (from Make-a-Map -
compressed PDF)Parcel Map LCA Parcel Map 61st Brooklyn BLVD.pdf pdf 2.0 MB
Aerial View (from Make-a-Map -
compressed PDF)Aerial Map LCA Aerial Map.pdf pdf 3.8 MB
Overview Map (from Make-a-
Map - compressed PDF)Overview Map LCA Overview Map 61st Brooklyn
BLVD.pdf pdf 7.9 MB
Resolution of Local Support Letter of Support
Signed Letter of Support for JO
Companies.pdf pdf 65 KB
Asset Map (Compressed PDF)Asset Map of community assets within
a 1/2 mile radius of project site. 61stBrooklynBoulevard_AssetMap.pdf pdf 1.1 MB
Section G.2: Other Attachments
Attachment Description File Name Type
File
Size
Site Plan (compressed pdf)Concept Packet with
site plan and elevations
19-1218 JO -
Brooklyn Center
Concept Packet.pdf
pdf 7.5 MB
Elevation (compressed pdf)
Small area plan adopted by the city. Relevant sections to the project
site only. (compressed PDF)
A "Before Photo" of the site showing the existing conditions; prior to
development activities. An "After Photo", from the same vantage point
will be requested after the project is completed if a grant award is
made.
Project Partner Acknowledgement Letter
Certification
By checking this box you
agree that you, the
named applicant, have
read the information
Yes
presented in the
application and that all
information is correct to
the best of your
knowledge. As the named
applicant you are
responsible for the
information presented in
the application and agree
that the application will
be evaluated on the
information you present.
*
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :N/A
BY:C or nelius Boganey, City M anager
S U B J E C T:Res olu'on I n S upport of the M edicar e for A ll A ct of 2019 and Res olu'on S uppor'ng the
M N H ealth P lan
B ackground:
Earlier in the y ear, C ouncil M ember G raves dis cus s ed s upport for the Medicare for A ll A ct of 2019. and
expressed the C ity C ouncil might consider appr oving a r esolu'on in s uppor t of this legis la'on.
Before you tonight, is the resolu'on s uppor 'ng the M edicare for A ll A ct of 2 0 1 9 (H .R. 1 3 8 4 and S . 1129).
A ddi'onally, ther e is a res olu'on suppor'ng the Minnes ota H ealth P lan (H F 1 2 0 0 and S F 1125)
B udget I ssues:
- No budget implica'ons
S trate gic Priories and Values:
Enhanced Community I mage
AT TA C H M E N TS :
D escrip'on Upload D ate Ty pe
Res olu'on M edicar e for A ll 5/6/2020 Resolu'on L e<er
Res olu'on S uppor'ng the M N H ealth P lan 5/6/2020 Resolu'on L e<er
H R 1384 5/6/2020 Backup M aterial
S 1129 5/6/2020 Backup M aterial
H F 1200 5/6/2020 Backup M aterial
S F 1125 5/6/2020 Backup M aterial
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO. _______________
RESOLUTION IN SUPPORT OF THE MEDICARE FOR ALL ACT OF 2019
WHEREAS, the number of Americans without health insurance is still nearly 30
million, while more than 40 million Americans remain underinsured, despite important gains
made since the implementation of the Affordable Care Act; and
WHEREAS, every person in the City of Brooklyn Center/Hennepin County deserves
high quality health care; and
WHEREAS, the never-ending rising costs of health care add challenges to our already
strapped municipal budget and our small businesses, which keep our communities thriving; and
WHEREAS the Medicare for All Act of 2019 would provide national health insurance
for every person in the United States for all necessary medical care including prescription drugs;
hospital, surgical and outpatient services; primary and preventive care; emergency services;
reproductive care; dental and vision care; and long-term care; and
WHEREAS the Medicare for All Act of 2019 would provide coverage without copays,
deductibles or other out-of-pocket costs, and would slash bureaucracy, protect the doctor-patient
relationship and assure patients a free choice of doctors; and
WHEREAS, recent polls show that a majority of Americans support Medicare-for-All;
and
WHEREAS, the Medicare for All Act of 2019 will guarantee that all residents of the
City of Brooklyn Center/Hennepin County will be fully covered for health care without copays,
deductibles or other out-of-pocket costs, and would save millions in taxpayer dollars now spent
on premiums that provide often inadequate health insurance coverage for government
employees; and
WHEREAS, the quality of life for the residents of the City of Brooklyn
Center/Hennepin County will vastly improve because they would be able to get the ongoing care
they need, instead of waiting until they have a medical emergency that could upend their lives as
well as further burden local resources;
NOW THEREFORE BE IT RESOLVED, that the City of Brooklyn Center/Hennepin
County enthusiastically supports the Medicare for All Act of 2019 (H.R. 1384 and S. 1129) and
calls on our federal legislators to work toward its immediate enactment, assuring appropriate and
efficient health care for all residents of the United States.
BE IT FURTHER RESOLVED, that the City of Brooklyn Center/Hennepin County
expresses its enthusiastic support for the Minnesota Health Plan (SF1125/ HF1200) and calls
upon our state legislators to work toward its immediate enactment.
May 11, 2020
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Member introduced the following resolution and moved its adoption:
RESOLUTION NO. _______________
RESOLUTION SUPPORTING THE PROPOSED MINNESOTA HEALTH PLAN
(CURRENTLY SF 1125/HF 1200)
WHEREAS, health care is a universal human need, total health spending in the U.S.
has reached an unsustainable 17.9% of GDP of which one-third can be attributed to administrative
costs—much of that due to our wasteful multi-payer system--two-thirds of health spending is
already publicly funded, and effective price negotiation is virtually nonexistent; and
WHEREAS, Minnesotans would be best served by a health care system that covers
everyone, allows patients to choose their providers, sets premiums based on ability to pay, ensures
adequate numbers of providers across the entire state to guarantee timely access to care; and
WHEREAS, comprehensive care means all medically necessary care, and includes
dental, vision, hearing, mental health, chemical dependency treatment, prescription drugs, medical
equipment and supplies, diagnostic and surgical procedures, women’s health, maternal and child
health, emergency care, long-term care, rehabilitative services, and home care; and
WHEREAS, overall population health would be improved by a system that focuses on
preventive care and early intervention to improve health, as well as management of chronic
diseases; and
WHEREAS, significant cost savings through reduction in administrative burden and
effective price controls could be achieved with a simple, understandable funding and payment
system;
THEREFORE, BE IT RESOLVED that the City of Brooklyn Center supports the
proposed Minnesota Health Plan (currently SF 1125/HF 1200) a commonsense, comprehensive,
affordable, universal health care system that fulfills these important principles and criteria.
BE IT FURTHER RESOLVED the City of Brooklyn Center supports enactment of
HR 1384 and S 1129 (Medicare for All Act of 2019) at the national level.
January 27, 2019
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
I
116TH CONGRESS
1ST SESSION H. R. 1384
To establish an improved Medicare for All national health insurance program.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 27, 2019
Ms. JAYAPAL (for herself, Mrs. DINGELL, Ms. ADAMS, Ms. BARRAGA´N, Ms.
BASS, Mrs. BEATTY, Mr. BEYER, Mr. BLUMENAUER, Ms. BONAMICI, Mr.
BRENDAN F. BOYLE of Pennsylvania, Mr. BROWN of Maryland, Mr. CAR-
SON of Indiana, Mr. CARTWRIGHT, Ms. JUDY CHU of California, Mr.
CICILLINE, Ms. CLARK of Massachusetts, Ms. CLARKE of New York, Mr.
CLAY, Mr. CLEAVER, Mr. COHEN, Mr. DANNY K. DAVIS of Illinois, Mr.
DEFAZIO, Ms. DEGETTE, Mr. DESAULNIER, Mr. MICHAEL F. DOYLE of
Pennsylvania, Mr. ENGEL, Ms. ESCOBAR, Mr. ESPAILLAT, Ms. FRANKEL,
Ms. FUDGE, Ms. GABBARD, Mr. GALLEGO, Mr. GARCI´A of Illinois, Mr.
GOLDEN, Mr. GOMEZ, Mr. GONZALEZ of Texas, Mr. GREEN of Texas,
Mr. GRIJALVA, Ms. HAALAND, Mr. HARDER of California, Mr. HAS-
TINGS, Mrs. HAYES, Mr. HIGGINS of New York, Ms. HILL of California,
Ms. NORTON, Mr. HUFFMAN, Ms. JACKSON LEE, Mr. JOHNSON of Geor-
gia, Mr. KEATING, Ms. KELLY of Illinois, Mr. KENNEDY, Mr. KHANNA,
Mrs. KIRKPATRICK, Mr. LANGEVIN, Mrs. LAWRENCE, Ms. LEE of Cali-
fornia, Mr. LEVIN of California, Mr. LEVIN of Michigan, Mr. LEWIS, Mr.
TED LIEU of California, Mr. LOWENTHAL, Mrs. LOWEY, Mrs. CAROLYN
B. MALONEY of New York, Mr. MCGOVERN, Mr. MCNERNEY, Mr.
MEEKS, Ms. MENG, Mr. NADLER, Mrs. NAPOLITANO, Mr. NEGUSE, Ms.
OCASIO-CORTEZ, Ms. OMAR, Mr. PANETTA, Mr. PAYNE, Mr. PERL-
MUTTER, Ms. PINGREE, Mr. POCAN, Ms. PORTER, Ms. PRESSLEY, Mr.
RASKIN, Ms. ROYBAL-ALLARD, Mr. RUSH, Mr. RYAN, Mr. SABLAN, Ms.
SA´NCHEZ, Mr. SARBANES, Ms. SCHAKOWSKY, Mr. SCHIFF, Mr. SCOTT of
Virginia, Mr. SERRANO, Mr. SMITH of Washington, Ms. SPEIER, Mr.
SWALWELL of California, Mr. TAKANO, Mr. THOMPSON of California, Mr.
THOMPSON of Mississippi, Ms. TITUS, Ms. TLAIB, Mr. TONKO, Mr.
VEASEY, Ms. VELA´ZQUEZ, Mr. VISCLOSKY, Ms. WATERS, Mrs. WATSON
COLEMAN, Mr. WELCH, Ms. WILD, and Ms. WILSON of Florida) intro-
duced the following bill; which was referred to the Committee on Energy
and Commerce, and in addition to the Committees on Ways and Means,
Education and Labor, Rules, Oversight and Reform, and Armed Services,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
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A BILL
To establish an improved Medicare for All national health
insurance program.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
(a) SHORT TITLE.—This Act may be cited as the 4
‘‘Medicare for All Act of 2019’’. 5
(b) TABLE OF CONTENTS.—The table of contents of 6
this Act is as follows: 7
Sec. 1. Short title; table of contents.
TITLE I—ESTABLISHMENT OF THE MEDICARE FOR ALL
PROGRAM; UNIVERSAL COVERAGE; ENROLLMENT
Sec. 101. Establishment of the Medicare for All Program.
Sec. 102. Universal coverage.
Sec. 103. Freedom of choice.
Sec. 104. Non-discrimination.
Sec. 105. Enrollment.
Sec. 106. Effective date of benefits.
Sec. 107. Prohibition against duplicating coverage.
TITLE II—COMPREHENSIVE BENEFITS, INCLUDING PREVENTIVE
BENEFITS AND BENEFITS FOR LONG-TERM CARE
Sec. 201. Comprehensive benefits.
Sec. 202. No cost-sharing.
Sec. 203. Exclusions and limitations.
Sec. 204. Coverage of long-term care services.
TITLE III—PROVIDER PARTICIPATION
Sec. 301. Provider participation and standards; whistleblower protections.
Sec. 302. Qualifications for providers.
Sec. 303. Use of private contracts.
TITLE IV—ADMINISTRATION
Subtitle A—General Administration Provisions
Sec. 401. Administration.
Sec. 402. Consultation.
Sec. 403. Regional administration.
Sec. 404. Beneficiary ombudsman.
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Sec. 405. Conduct of related health programs.
Subtitle B—Control Over Fraud and Abuse
Sec. 411. Application of Federal sanctions to all fraud and abuse under the
Medicare for All Program.
TITLE V—QUALITY ASSESSMENT
Sec. 501. Quality standards.
Sec. 502. Addressing health care disparities.
TITLE VI—HEALTH BUDGET; PAYMENTS; COST CONTAINMENT
MEASURES
Subtitle A—Budgeting
Sec. 601. National health budget.
Subtitle B—Payments to Providers
Sec. 611. Payments to institutional providers based on global budgets.
Sec. 612. Payment to individual providers through fee-for-service.
Sec. 613. Ensuring accurate valuation of services under the Medicare physician
fee schedule.
Sec. 614. Payment prohibitions; capital expenditures; special projects.
Sec. 615. Office of primary health care.
Sec. 616. Payments for prescription drugs and approved devices and equip-
ment.
TITLE VII—UNIVERSAL MEDICARE TRUST FUND
Sec. 701. Universal Medicare Trust Fund.
TITLE VIII—CONFORMING AMENDMENTS TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974
Sec. 801. Prohibition of employee benefits duplicative of benefits under the
Medicare for All Program; coordination in case of workers’
compensation.
Sec. 802. Application of continuation coverage requirements under ERISA and
certain other requirements relating to group health plans.
Sec. 803. Effective date of title.
TITLE IX—ADDITIONAL CONFORMING AMENDMENTS
Sec. 901. Relationship to existing Federal health programs.
Sec. 902. Sunset of provisions related to the State Exchanges.
Sec. 903. Sunset of provisions related to pay for performance programs.
TITLE X—TRANSITION
Subtitle A—Medicare for All Transition Over 2 Years and Transitional Buy-
In Option
Sec. 1001. Medicare for all transition over two years.
Sec. 1002. Establishment of the Medicare transition buy-in.
Subtitle B—Transitional Medicare Reforms
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Sec. 1011. Eliminating the 24-month waiting period for Medicare coverage for
individuals with disabilities.
Sec. 1012. Ensuring continuity of care.
TITLE XI—MISCELLANEOUS
Sec. 1101. Definitions.
Sec. 1102. Rules of construction.
TITLE I—ESTABLISHMENT OF 1
THE MEDICARE FOR ALL PRO-2
GRAM; UNIVERSAL COVER-3
AGE; ENROLLMENT 4
SEC. 101. ESTABLISHMENT OF THE MEDICARE FOR ALL 5
PROGRAM. 6
There is hereby established a national health insur-7
ance program to provide comprehensive protection against 8
the costs of health care and health-related services, in ac-9
cordance with the standards specified in, or established 10
under, this Act. 11
SEC. 102. UNIVERSAL COVERAGE. 12
(a) IN GENERAL.—Every individual who is a resident 13
of the United States is entitled to benefits for health care 14
services under this Act. The Secretary shall promulgate 15
a rule that provides criteria for determining residency for 16
eligibility purposes under this Act. 17
(b) TREATMENT OF OTHER INDIVIDUALS.—The Sec-18
retary may make eligible for benefits for health care serv-19
ices under this Act other individuals not described in sub-20
section (a), and regulate the eligibility of such individuals, 21
to ensure that every person in the United States has ac-22
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cess to health care. In regulating such eligibility, the Sec-1
retary shall ensure that individuals are not allowed to 2
travel to the United States for the sole purpose of obtain-3
ing health care items and services provided under the pro-4
gram established under this Act. 5
SEC. 103. FREEDOM OF CHOICE. 6
Any individual entitled to benefits under this Act may 7
obtain health services from any institution, agency, or in-8
dividual qualified to participate under this Act. 9
SEC. 104. NON-DISCRIMINATION. 10
(a) IN GENERAL.—No person shall, on the basis of 11
race, color, national origin, age, disability, marital status, 12
citizenship status, primary language use, genetic condi-13
tions, previous or existing medical conditions, religion, or 14
sex, including sex stereotyping, gender identity, sexual ori-15
entation, and pregnancy and related medical conditions 16
(including termination of pregnancy), be excluded from 17
participation in or be denied the benefits of the program 18
established under this Act (except as expressly authorized 19
by this Act for purposes of enforcing eligibility standards 20
described in section 102), or be subject to any reduction 21
of benefits or other discrimination by any participating 22
provider (as defined in section 301), or any entity con-23
ducting, administering, or funding a health program or 24
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•HR 1384 IH
activity, including contracts of insurance, pursuant to this 1
Act. 2
(b) CLAIMS OF DISCRIMINATION.— 3
(1) IN GENERAL.—The Secretary shall establish 4
a procedure for adjudication of administrative com-5
plaints alleging a violation of subsection (a). 6
(2) JURISDICTION.—Any person aggrieved by a 7
violation of subsection (a) by a covered entity may 8
file suit in any district court of the United States 9
having jurisdiction of the parties. A person may 10
bring an action under this paragraph concurrently 11
as such administrative remedies as established in 12
paragraph (1). 13
(3) DAMAGES.—If the court finds a violation of 14
subsection (a), the court may grant compensatory 15
and punitive damages, declaratory relief, injunctive 16
relief, attorneys’ fees and costs, or other relief as ap-17
propriate. 18
(c) CONTINUED APPLICATION OF LAWS.—Nothing in 19
this title (or an amendment made by this title) shall be 20
construed to invalidate or otherwise limit any of the rights, 21
remedies, procedures, or legal standards available to indi-22
viduals aggrieved under section 1557 of the Patient Pro-23
tection and Affordable Care Act (42 U.S.C. 18116), title 24
VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et 25
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•HR 1384 IH
seq.), title VII of the Civil Rights Act of 1964 (42 U.S.C. 1
2000e et seq.), title IX of the Education Amendments of 2
1972 (20 U.S.C. 1681 et seq.), section 504 of the Reha-3
bilitation Act of 1973 (29 U.S.C. 794), or the Age Dis-4
crimination Act of 1975 (42 U.S.C. 611 et seq.). Nothing 5
in this title (or an amendment to this title) shall be con-6
strued to supersede State laws that provide additional pro-7
tections against discrimination on any basis described in 8
subsection (a). 9
SEC. 105. ENROLLMENT. 10
(a) IN GENERAL.—The Secretary shall provide a 11
mechanism for the enrollment of individuals eligible for 12
benefits under this Act. The mechanism shall— 13
(1) include a process for the automatic enroll-14
ment of individuals at the time of birth in the 15
United States (or upon establishment of residency in 16
the United States); 17
(2) provide for the enrollment, as of the dates 18
described in section 106, of all individuals who are 19
eligible to be enrolled as of such dates, as applicable; 20
and 21
(3) include a process for the enrollment of indi-22
viduals made eligible for health care services under 23
section 102(b). 24
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•HR 1384 IH
(b) ISSUANCE OF UNIVERSAL MEDICARE CARDS.— 1
In conjunction with an individual’s enrollment for benefits 2
under this Act, the Secretary shall provide for the issuance 3
of a Universal Medicare card that shall be used for pur-4
poses of identification and processing of claims for bene-5
fits under this program. The card shall not include an in-6
dividual’s Social Security number. 7
SEC. 106. EFFECTIVE DATE OF BENEFITS. 8
(a) IN GENERAL.—Except as provided in subsection 9
(b), benefits shall first be available under this Act for 10
items and services furnished 2 years after the date of the 11
enactment of this Act. 12
(b) COVERAGE FOR CERTAIN INDIVIDUALS.— 13
(1) IN GENERAL.—For any eligible individual 14
who— 15
(A) has not yet attained the age of 19 as 16
of the date that is 1 year after the date of the 17
enactment of this Act; or 18
(B) has attained the age of 55 as of the 19
date that is 1 year after the date of the enact-20
ment of this Act, 21
benefits shall first be available under this Act for 22
items and services furnished as of such date. 23
(2) OPTION TO CONTINUE IN OTHER COVERAGE 24
DURING TRANSITION PERIOD.—Any person who is 25
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•HR 1384 IH
eligible to receive benefits as described in paragraph 1
(1) may opt to maintain any coverage described in 2
section 901, private health insurance coverage, or 3
coverage offered pursuant to subtitle A of title X 4
(including the amendments made by such subtitle) 5
until the date described in subsection (a). 6
SEC. 107. PROHIBITION AGAINST DUPLICATING COVERAGE. 7
(a) IN GENERAL.—Beginning on the effective date 8
described in section 106(a), it shall be unlawful for— 9
(1) a private health insurer to sell health insur-10
ance coverage that duplicates the benefits provided 11
under this Act; or 12
(2) an employer to provide benefits for an em-13
ployee, former employee, or the dependents of an 14
employee or former employee that duplicate the ben-15
efits provided under this Act. 16
(b) CONSTRUCTION.—Nothing in this Act shall be 17
construed as prohibiting the sale of health insurance cov-18
erage for any additional benefits not covered by this Act, 19
including additional benefits that an employer may provide 20
to employees or their dependents, or to former employees 21
or their dependents. 22
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TITLE II—COMPREHENSIVE BEN-1
EFITS, INCLUDING PREVEN-2
TIVE BENEFITS AND BENE-3
FITS FOR LONG-TERM CARE 4
SEC. 201. COMPREHENSIVE BENEFITS. 5
(a) IN GENERAL.—Subject to the other provisions of 6
this title and titles IV through IX, individuals enrolled for 7
benefits under this Act are entitled to have payment made 8
by the Secretary to an eligible provider for the following 9
items and services if medically necessary or appropriate 10
for the maintenance of health or for the diagnosis, treat-11
ment, or rehabilitation of a health condition: 12
(1) Hospital services, including inpatient and 13
outpatient hospital care, including 24-hour-a-day 14
emergency services and inpatient prescription drugs. 15
(2) Ambulatory patient services. 16
(3) Primary and preventive services, including 17
chronic disease management. 18
(4) Prescription drugs and medical devices, in-19
cluding outpatient prescription drugs, medical de-20
vices, and biological products. 21
(5) Mental health and substance abuse treat-22
ment services, including inpatient care. 23
(6) Laboratory and diagnostic services. 24
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(7) Comprehensive reproductive, maternity, and 1
newborn care. 2
(8) Pediatrics. 3
(9) Oral health, audiology, and vision services. 4
(10) Rehabilitative and habilitative services and 5
devices. 6
(11) Emergency services and transportation. 7
(12) Early and periodic screening, diagnostic, 8
and treatment services, as described in sections 9
1902(a)(10)(A), 1902(a)(43), 1905(a)(4)(B), and 10
1905(r) of the Social Security Act (42 U.S.C. 11
1396a(a)(10)(A); 1396a(a)(43); 1396d(a)(4)(B); 12
1396d(r)). 13
(13) Necessary transportation to receive health 14
care services for persons with disabilities or low-in-15
come individuals (as determined by the Secretary). 16
(14) Long-term care services and support (as 17
described in section 204). 18
(b) REVISION AND ADJUSTMENT.—The Secretary 19
shall, at least annually, and on a regular basis, evaluate 20
whether the benefits package should be improved or ad-21
justed to promote the health of beneficiaries, account for 22
changes in medical practice or new information from med-23
ical research, or respond to other relevant developments 24
in health science, and shall make recommendations to 25
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•HR 1384 IH
Congress regarding any such improvements or adjust-1
ments. 2
(c) HEARINGS.— 3
(1) IN GENERAL.—The Committee on Energy 4
and Commerce and the Committee on Ways and 5
Means of the House of Representatives shall, not 6
less frequently than annually, hold a hearing on the 7
recommendations submitted by the Secretary under 8
subsection (b). 9
(2) EXERCISE OF RULEMAKING AUTHORITY.— 10
Paragraph (1) is enacted— 11
(A) as an exercise of rulemaking power of 12
the House of Representatives, and, as such, 13
shall be considered as part of the rules of the 14
House, and such rules shall supersede any other 15
rule of the House only to the extent that rule 16
is inconsistent therewith; and 17
(B) with full recognition of the constitu-18
tional right of either House to change such 19
rules (so far as relating to the procedure in 20
such House) at any time, in the same manner, 21
and to the same extent as in the case of any 22
other rule of the House. 23
(d) COMPLEMENTARY AND INTEGRATIVE MEDI-24
CINE.— 25
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(1) IN GENERAL.—In carrying out subsection 1
(b), the Secretary shall consult with the persons de-2
scribed in paragraph (2) with respect to— 3
(A) identifying specific complementary and 4
integrative medicine practices that are appro-5
priate to include in the benefits package; and 6
(B) identifying barriers to the effective 7
provision and integration of such practices into 8
the delivery of health care, and identifying 9
mechanisms for overcoming such barriers. 10
(2) CONSULTATION.—In accordance with para-11
graph (1), the Secretary shall consult with— 12
(A) the Director of the National Center for 13
Complementary and Integrative Health; 14
(B) the Commissioner of Food and Drugs; 15
(C) institutions of higher education, pri-16
vate research institutes, and individual re-17
searchers with extensive experience in com-18
plementary and alternative medicine and the in-19
tegration of such practices into the delivery of 20
health care; 21
(D) nationally recognized providers of com-22
plementary and integrative medicine; and 23
(E) such other officials, entities, and indi-24
viduals with expertise on complementary and 25
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•HR 1384 IH
integrative medicine as the Secretary deter-1
mines appropriate. 2
(e) STATES MAY PROVIDE ADDITIONAL BENE-3
FITS.—Individual States may provide additional benefits 4
for the residents of such States, as determined by such 5
State, and may provide benefits to individuals not eligible 6
for benefits under this Act, at the expense of the State, 7
subject to the requirements specified in section 1102. 8
SEC. 202. NO COST-SHARING. 9
(a) IN GENERAL.—The Secretary shall ensure that 10
no cost-sharing, including deductibles, coinsurance, copay-11
ments, or similar charges, is imposed on an individual for 12
any benefits provided under this Act. 13
(b) NO BALANCE BILLING.—No provider may impose 14
a charge to an enrolled individual for covered services for 15
which benefits are provided under this Act. 16
SEC. 203. EXCLUSIONS AND LIMITATIONS. 17
(a) IN GENERAL.—Benefits for items and services 18
are not available under this Act unless the items and serv-19
ices meet the standards developed by the Secretary pursu-20
ant to section 201(a). 21
(b) TREATMENT OF EXPERIMENTAL ITEMS AND 22
SERVICES AND DRUGS.— 23
(1) IN GENERAL.—In applying subsection (a), 24
the Secretary shall make national coverage deter-25
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•HR 1384 IH
minations with respect to items and services that are 1
experimental in nature. Such determinations shall be 2
consistent with the national coverage determination 3
process as defined in section 1869(f)(1)(B) of the 4
Social Security Act (42 U.S.C. 1395ff(f)(1)(B)). 5
(2) APPEALS PROCESS.—The Secretary shall 6
establish a process by which individuals can appeal 7
coverage decisions. The process shall, as much as is 8
feasible, follow the process for appeals under the 9
Medicare program described in section 1869 of the 10
Social Security Act (42 U.S.C. 1395ff). 11
(c) APPLICATION OF PRACTICE GUIDELINES.— 12
(1) IN GENERAL.—In the case of items and 13
services for which the Department of Health and 14
Human Services has recognized a national practice 15
guideline, such items and services shall be deemed to 16
meet the standards specified in section 201(a) if 17
they have been provided in accordance with such 18
guideline. For purposes of this subsection, an item 19
or service not provided in accordance with a practice 20
guideline shall be deemed to have been provided in 21
accordance with the guideline if the health care pro-22
vider providing the item or service— 23
(A) exercised appropriate professional 24
judgment in accordance with the laws and re-25
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•HR 1384 IH
quirements of the State in which such item or 1
service is furnished in deviating from the guide-2
line; 3
(B) acted in the best interest of the indi-4
vidual receiving the item or service; and 5
(C) acted in a manner consistent with the 6
individual’s wishes. 7
(2) OVERRIDE OF STANDARDS.— 8
(A) IN GENERAL.—An individual’s treating 9
physician or other health care professional au-10
thorized to exercise independent professional 11
judgment in implementing a patient’s medical 12
or nursing care plan in accordance with the 13
scope of practice, licensure, and other law of 14
the State where items and services are to be 15
furnished may override practice standards es-16
tablished pursuant to section 201(a) or practice 17
guidelines described in paragraph (1), including 18
such standards and guidelines that are imple-19
mented by a provider through the use of health 20
information technology, such as electronic 21
health record technology, clinical decision sup-22
port technology, and computerized order entry 23
programs. 24
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(B) LIMITATION.—An override described 1
in subparagraph (A) shall, in the professional 2
judgment of such physician, nurse, or health 3
care professional, be— 4
(i) consistent with such physician’s, 5
nurse’s, or health care professional’s deter-6
mination of medical necessity and appro-7
priateness or nursing assessment; 8
(ii) in the best interests of the indi-9
vidual; and 10
(iii) consistent with the individual’s 11
wishes. 12
SEC. 204. COVERAGE OF LONG-TERM CARE SERVICES. 13
(a) IN GENERAL.—Subject to the other provisions of 14
this Act, individuals enrolled for benefits under this Act 15
are entitled to the following long-term services and sup-16
ports and to have payment made by the Secretary to an 17
eligible provider for such services and supports if medically 18
necessary and appropriate and in accordance with the 19
standards established in this Act, for maintenance of 20
health or for care, services, diagnosis, treatment, or reha-21
bilitation that is related to a medically determinable condi-22
tion, whether physical or mental, of health, injury, or age 23
that— 24
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(1) causes a functional limitation in performing 1
one or more activities of daily living; or 2
(2) requires a similar need of assistance in per-3
forming instrumental activities of daily living due to 4
cognitive or other impairments. 5
(b) ELIGIBILITY.—The Secretary shall promulgate 6
rules that provide for the following: 7
(1) The determination of individual eligibility 8
for long-term services and supports under this sec-9
tion. 10
(2) The assessment of the long-term services 11
and supports needed for eligible individuals. 12
(c) SERVICES AND SUPPORTS.—Long-term services 13
and supports under this section shall be tailored to an in-14
dividual’s needs, as determined through assessment, and 15
shall be defined by the Secretary to— 16
(1) include any long-term nursing services for 17
the enrollee, whether provided in an institution or in 18
a home and community-based setting; 19
(2) provide coverage for a broad spectrum of 20
long-term services and supports, including for home 21
and community-based services and other care pro-22
vided through non-institutional settings; 23
(3) provide coverage that meets the physical, 24
mental, and social needs of recipients while allowing 25
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recipients their maximum possible autonomy and 1
their maximum possible civic, social, and economic 2
participation; 3
(4) prioritize delivery of long-term services and 4
supports through home and community-based serv-5
ices over institutionalization; 6
(5) unless an individual elects otherwise, ensure 7
that recipients will receive home and community 8
based long-term services and supports (as defined in 9
subsection (f)(4)), regardless of the individuals’s 10
type or level of disability, service need, or age; 11
(6) be provided with the goal of enabling per-12
sons with disabilities to receive services in the least 13
restrictive and most integrated setting appropriate 14
to the individual’s needs; 15
(7) be provided in such a manner that allows 16
persons with disabilities to maintain their independ-17
ence, self-determination, and dignity; 18
(8) provide long-term services and supports 19
that are of equal quality and equally accessible 20
across geographic regions; and 21
(9) ensure that long-term services and supports 22
provide recipient’s the option of self-direction of 23
services from either the recipient or care coordina-24
tors of the recipient’s choosing. 25
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(d) PUBLIC CONSULTATION.—In developing regula-1
tions to implement this section, the Secretary shall consult 2
with an advisory commission on long-term services and 3
supports that includes— 4
(1) people with disabilities who use long-term 5
services and supports and older adults who use long- 6
term services and supports; 7
(2) representatives of people with disabilities 8
and representatives of older adults; 9
(3) groups that represent the diversity of the 10
population of people living with disabilities, including 11
gender, racial, and economic diversity; 12
(4) providers of long-term services and sup-13
ports, including family attendants and family care-14
givers, and members of organized labor; 15
(5) disability rights organizations; and 16
(6) relevant academic institutions and research-17
ers. 18
(e) BUDGETING AND PAYMENTS.—Budgeting and 19
payments for long-term services and supports provided 20
under this section shall be made in accordance with the 21
provisions under title VI. 22
(f) DEFINITIONS.—In this section: 23
(1) The term ‘‘long-term services and supports’’ 24
means long-term care, treatment, maintenance, or 25
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services needed to support the activities of daily liv-1
ing and instrumental activities of daily living, includ-2
ing all long-term services and supports available 3
under section 1915 of the Social Security Act (42 4
U.S.C. 1396n), home and community-based services, 5
and any additional services and supports identified 6
by the Secretary to support people with disabilities 7
to live, work, and participate in their communities. 8
(2) The term ‘‘activities of daily living’’ means 9
basic personal everyday activities, including tasks 10
such as eating, toileting, grooming, dressing, bath-11
ing, and transferring. 12
(3) The term ‘‘instrumental activities of daily 13
living’’ means activities related to living independ-14
ently in the community, including but not limited to, 15
meal planning and preparation, managing finances, 16
shopping for food, clothing, and other essential 17
items, performing essential household chores, com-18
municating by phone or other media, and traveling 19
around and participating in the community. 20
(4) The term ‘‘home and community-based 21
services’’ means the home and community-based 22
services that are coverable under subsections (c), 23
(d), (i), and (k) of section 1915 of the Social Secu-24
rity Act (42 U.S.C. 1396n), and as defined by the 25
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Secretary, including as defined in the home and 1
community-based services settings rule in sections 2
441.530 and 441.710 of title 42, Code of Federal 3
Regulations (or a successor regulation). 4
TITLE III—PROVIDER 5
PARTICIPATION 6
SEC. 301. PROVIDER PARTICIPATION AND STANDARDS; 7
WHISTLEBLOWER PROTECTIONS. 8
(a) IN GENERAL.—An individual or other entity fur-9
nishing any covered item or service under this Act is not 10
a qualified provider unless the individual or entity— 11
(1) is a qualified provider of the items or serv-12
ices under section 302; 13
(2) has filed with the Secretary a participation 14
agreement described in subsection (b); and 15
(3) meets, as applicable, such other qualifica-16
tions and conditions with respect to a provider of 17
services under title XVIII of the Social Security Act 18
as described in section 1866 of the Social Security 19
Act (42 U.S.C. 1395cc). 20
(b) REQUIREMENTS IN PARTICIPATION AGREE-21
MENT.— 22
(1) IN GENERAL.—A participation agreement 23
described in this subsection between the Secretary 24
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and a provider shall provide at least for the fol-1
lowing: 2
(A) Items and services to eligible persons 3
shall be furnished by the provider without dis-4
crimination, in accordance with section 104(a). 5
Nothing in this subparagraph shall be con-6
strued as requiring the provision of a type or 7
class of items or services that are outside the 8
scope of the provider’s normal practice. 9
(B) No charge will be made to any enrolled 10
individual for any covered items or services 11
other than for payment authorized by this Act. 12
(C) The provider agrees to furnish such in-13
formation as may be reasonably required by the 14
Secretary, in accordance with uniform reporting 15
standards established under section 401(b)(1), 16
for— 17
(i) quality review by designated enti-18
ties; 19
(ii) making payments under this Act, 20
including the examination of records as 21
may be necessary for the verification of in-22
formation on which such payments are 23
based; 24
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(iii) statistical or other studies re-1
quired for the implementation of this Act; 2
and 3
(iv) such other purposes as the Sec-4
retary may specify. 5
(D) In the case of a provider that is not 6
an individual, the provider agrees not to employ 7
or use for the provision of health services any 8
individual or other provider that has had a par-9
ticipation agreement under this subsection ter-10
minated for cause. The Secretary may authorize 11
such employment or use on a case-by-case 12
basis. 13
(E) In the case of a provider paid under 14
a fee-for-service basis for items and services 15
furnished under this Act, the provider agrees to 16
submit bills and any required supporting docu-17
mentation relating to the provision of covered 18
items and services within 30 days after the date 19
of providing such items and services. 20
(F) In the case of an institutional provider 21
paid pursuant to section 611, the provider 22
agrees to submit information and any other re-23
quired supporting documentation as may be 24
reasonably required by the Secretary within 30 25
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days after the date of providing such items and 1
services and in accordance with the uniform re-2
porting standards established under section 3
401(b)(1), including information on a quarterly 4
basis that— 5
(i) relates to the provision of covered 6
items and services; and 7
(ii) describes items and services fur-8
nished with respect to specific individuals. 9
(G) In the case of a provider that receives 10
payment for items and services furnished under 11
this Act based on diagnosis-related coding, pro-12
cedure coding, or other coding system or data, 13
the provider agrees— 14
(i) to disclose to the Secretary any 15
system or index of coding or classifying pa-16
tient symptoms, diagnoses, clinical inter-17
ventions, episodes, or procedures that such 18
provider utilizes for global budget negotia-19
tions under title VI or for meeting any 20
other payment, documentation, or data col-21
lection requirements under this Act; and 22
(ii) not to use any such system or 23
index to establish financial incentives or 24
disincentives for health care professionals, 25
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or that is proprietary, interferes with the 1
medical or nursing process, or is designed 2
to increase the amount or number of pay-3
ments. 4
(H) The provider complies with the duty of 5
provider ethics and reporting requirements de-6
scribed in paragraph (2). 7
(I) In the case of a provider that is not an 8
individual, the provider agrees that no board 9
member, executive, or administrator of such 10
provider receives compensation from, owns 11
stock or has other financial investments in, or 12
serves as a board member of any entity that 13
contracts with or provides items or services, in-14
cluding pharmaceutical products and medical 15
devices or equipment, to such provider. 16
(2) PROVIDER DUTY OF ETHICS.—Each health 17
care provider, including institutional providers, has a 18
duty to advocate for and to act in the exclusive in-19
terest of each individual under the care of such pro-20
vider according to the applicable legal standard of 21
care, such that no financial interest or relationship 22
impairs any health care provider’s ability to furnish 23
necessary and appropriate care to such individual. 24
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To implement the duty established in this para-1
graph, the Secretary shall— 2
(A) promulgate reasonable reporting rules 3
to evaluate participating provider compliance 4
with this paragraph; 5
(B) prohibit participating providers, 6
spouses, and immediate family members of par-7
ticipating providers, from accepting or entering 8
into any arrangement for any bonus, incentive 9
payment, profit-sharing, or compensation based 10
on patient utilization or based on financial out-11
comes of any other provider or entity; and 12
(C) prohibit participating providers or any 13
board member or representative of such pro-14
vider from serving as board members for or re-15
ceiving any compensation, stock, or other finan-16
cial investment in an entity that contracts with 17
or provides items or services (including pharma-18
ceutical products and medical devices or equip-19
ment) to such provider. 20
(3) TERMINATION OF PARTICIPATION AGREE-21
MENT.— 22
(A) IN GENERAL.—Participation agree-23
ments may be terminated, with appropriate no-24
tice— 25
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(i) by the Secretary for failure to meet 1
the requirements of this Act; 2
(ii) in accordance with the provisions 3
described in section 411; or 4
(iii) by a provider. 5
(B) TERMINATION PROCESS.—Providers 6
shall be provided notice and a reasonable oppor-7
tunity to correct deficiencies before the Sec-8
retary terminates an agreement unless a more 9
immediate termination is required for public 10
safety or similar reasons. 11
(C) PROVIDER PROTECTIONS.— 12
(i) PROHIBITION.—The Secretary may 13
not terminate a participation agreement or 14
in any other way discriminate against, or 15
cause to be discriminated against, any cov-16
ered provider or authorized representative 17
of the provider, on account of such pro-18
vider or representative— 19
(I) providing, causing to be pro-20
vided, or being about to provide or 21
cause to be provided to the provider, 22
the Federal Government, or the attor-23
ney general of a State information re-24
lating to any violation of, or any act 25
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or omission the provider or represent-1
ative reasonably believes to be a viola-2
tion of, any provision of this title (or 3
an amendment made by this title); 4
(II) testifying or being about to 5
testify in a proceeding concerning 6
such violation; 7
(III) assisting or participating, or 8
being about to assist or participate, in 9
such a proceeding; or 10
(IV) objecting to, or refusing to 11
participate in, any activity, policy, 12
practice, or assigned task that the 13
provider or representative reasonably 14
believes to be in violation of any provi-15
sion of this Act (including any amend-16
ment made by this Act), or any order, 17
rule, regulation, standard, or ban 18
under this Act (including any amend-19
ment made by this Act). 20
(ii) COMPLAINT PROCEDURE.—A pro-21
vider or representative who believes that he 22
or she has been discriminated against in 23
violation of this section may seek relief in 24
accordance with the procedures, notifica-25
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tions, burdens of proof, remedies, and stat-1
utes of limitation set forth in section 2
2087(b) of title 15, United States Code. 3
(c) WHISTLEBLOWER PROTECTIONS.— 4
(1) RETALIATION PROHIBITED.—No person 5
may discharge or otherwise discriminate against any 6
employee because the employee or any person acting 7
pursuant to a request of the employee— 8
(A) notified the Secretary or the employ-9
ee’s employer of any alleged violation of this 10
title, including communications related to car-11
rying out the employee’s job duties; 12
(B) refused to engage in any practice made 13
unlawful by this title, if the employee has iden-14
tified the alleged illegality to the employer; 15
(C) testified before or otherwise provided 16
information relevant for Congress or for any 17
Federal or State proceeding regarding any pro-18
vision (or proposed provision) of this title; 19
(D) commenced, caused to be commenced, 20
or is about to commence or cause to be com-21
menced a proceeding under this title; 22
(E) testified or is about to testify in any 23
such proceeding; or 24
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(F) assisted or participated or is about to 1
assist or participate in any manner in such a 2
proceeding or in any other manner in such a 3
proceeding or in any other action to carry out 4
the purposes of this title. 5
(2) ENFORCEMENT ACTION.—Any employee 6
covered by this section who alleges discrimination by 7
an employer in violation of paragraph (1) may bring 8
an action, subject to the statute of limitations in the 9
anti-retaliation provisions of the False Claims Act 10
and the rules and procedures, legal burdens of proof, 11
and remedies applicable under the employee protec-12
tions provisions of the Surface Transportation As-13
sistance Act. 14
(3) APPLICATION.— 15
(A) Nothing in this subsection shall be 16
construed to diminish the rights, privileges, or 17
remedies of any employee under any Federal or 18
State law or regulation, including the rights 19
and remedies against retaliatory action under 20
the False Claims Act (31 U.S.C. 3730(h)), or 21
under any collective bargaining agreement. The 22
rights and remedies in this section may not be 23
waived by any agreement, policy, form, or con-24
dition of employment. 25
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(B) Nothing in this subsection shall be 1
construed to preempt or diminish any other 2
Federal or State law or regulation against dis-3
crimination, demotion, discharge, suspension, 4
threats, harassment, reprimand, retaliation, or 5
any other manner of discrimination, including 6
the rights and remedies against retaliatory ac-7
tion under the False Claims Act (31 U.S.C. 8
3730(h)). 9
(4) DEFINITIONS.—In this subsection: 10
(A) EMPLOYER.—The term ‘‘employer’’ 11
means any person engaged in profit or non-12
profit business or industry, including one or 13
more individuals, partnerships, associations, 14
corporations, trusts, professional membership 15
organization including a certification, discipli-16
nary, or other professional body, unincorporated 17
organizations, nongovernmental organizations, 18
or trustees, and subject to liability for violating 19
the provisions of this Act. 20
(B) EMPLOYEE.—The term ‘‘employee’’ 21
means any individual performing activities 22
under this Act on behalf of an employer. 23
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SEC. 302. QUALIFICATIONS FOR PROVIDERS. 1
(a) IN GENERAL.—A health care provider is consid-2
ered to be qualified to furnish covered items and services 3
under this Act if the provider is licensed or certified to 4
furnish such items and services in the State in which such 5
items or services are furnished and meets— 6
(1) the requirements of such State’s law to fur-7
nish such items and services; and 8
(2) applicable requirements of Federal law to 9
furnish such items and services. 10
(b) LIMITATION.—An entity or provider shall not be 11
qualified to furnish covered items and services under this 12
Act if the entity or provider provides no items and services 13
directly to individuals, including— 14
(1) entities or providers that contract with 15
other entities or providers to provide such items and 16
services; and 17
(2) entities that are currently approved to co-18
ordinate care plans under the Medicare Advantage 19
program established in part C of title XVIII of the 20
Social Security Act (42 U.S.C. 1851 et seq.) but do 21
not directly provide items and services of such care 22
plans. 23
(c) MINIMUM PROVIDER STANDARDS.— 24
(1) IN GENERAL.—The Secretary shall estab-25
lish, evaluate, and update national minimum stand-26
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ards to ensure the quality of items and services pro-1
vided under this Act and to monitor efforts by 2
States to ensure the quality of such items and serv-3
ices. A State may establish additional minimum 4
standards which providers shall meet with respect to 5
items and services provided in such State. 6
(2) NATIONAL MINIMUM STANDARDS.—The 7
Secretary shall establish national minimum stand-8
ards under paragraph (1) for institutional providers 9
of services and individual health care practitioners. 10
Except as the Secretary may specify in order to 11
carry out this Act, a hospital, skilled nursing facility, 12
or other institutional provider of services shall meet 13
standards applicable to such a provider under the 14
Medicare program under title XVIII of the Social 15
Security Act (42 U.S.C. 1395 et seq.). Such stand-16
ards also may include, where appropriate, elements 17
relating to— 18
(A) adequacy and quality of facilities; 19
(B) mandatory minimum safe registered 20
nurse-to-patient staffing ratios and optimal 21
staffing levels for physicians and other health 22
care practitioners; 23
(C) training and competence of personnel 24
(including requirements related to the number 25
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of or type of required continuing education 1
hours); 2
(D) comprehensiveness of service; 3
(E) continuity of service; 4
(F) patient waiting time, access to serv-5
ices, and preferences; and 6
(G) performance standards, including orga-7
nization, facilities, structure of services, effi-8
ciency of operation, and outcome in palliation, 9
improvement of health, stabilization, cure, or 10
rehabilitation. 11
(3) TRANSITION IN APPLICATION.—If the Sec-12
retary provides for additional requirements for pro-13
viders under this subsection, any such additional re-14
quirement shall be implemented in a manner that 15
provides for a reasonable period during which a pre-16
viously qualified provider is permitted to meet such 17
an additional requirement. 18
(4) ABILITY TO PROVIDE SERVICES.—With re-19
spect to any entity or provider certified to provide 20
items and services described in section 201(a)(7), 21
the Secretary may not prohibit such entity or pro-22
vider from participating for reasons other than such 23
entity’s or provider’s ability to provide such items 24
and services. 25
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(d) FEDERAL PROVIDERS.—Any provider qualified to 1
provide health care items and services through the Depart-2
ment of Veterans Affairs or Indian Health Service is a 3
qualifying provider under this section with respect to any 4
individual who qualifies for such items and services under 5
applicable Federal law. 6
SEC. 303. USE OF PRIVATE CONTRACTS. 7
(a) IN GENERAL.—This section shall apply beginning 8
2 years after the date of the enactment of this Act. 9
(b) PARTICIPATING PROVIDERS.— 10
(1) PRIVATE CONTRACTS FOR COVERED ITEMS 11
AND SERVICES FOR ELIGIBLE INDIVIDUALS.—An in-12
stitutional or individual provider with an agreement 13
in effect under section 301 may not bill or enter into 14
any private contract with any individual eligible for 15
benefits under the Act for any item or service that 16
is a benefit under this Act. 17
(2) PRIVATE CONTRACTS FOR NONCOVERED 18
ITEMS AND SERVICES FOR ELIGIBLE INDIVIDUALS.— 19
An institutional or individual provider with an agree-20
ment in effect under section 301 may bill or enter 21
into a private contract with an individual eligible for 22
benefits under the Act for any item or service that 23
is not a benefit under this Act only if— 24
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(A) the contract and provider meet the re-1
quirements specified in paragraphs (3) and (4), 2
respectively; 3
(B) such item or service is not payable or 4
available under this Act; and 5
(C) the provider receives— 6
(i) no reimbursement under this Act 7
directly or indirectly for such item or serv-8
ice, and 9
(ii) receives no amount for such item 10
or service from an organization which re-11
ceives reimbursement for such items or 12
service under this Act directly or indirectly. 13
(3) CONTRACT REQUIREMENTS.—Any contract 14
to provide items and services described in paragraph 15
(2) shall— 16
(A) be in writing and signed by the indi-17
vidual (or authorized representative of the indi-18
vidual) receiving the item or service before the 19
item or service is furnished pursuant to the 20
contract; 21
(B) not be entered into at a time when the 22
individual is facing an emergency health care 23
situation; and 24
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(C) clearly indicate to the individual receiv-1
ing such items and services that by signing 2
such a contract the individual— 3
(i) agrees not to submit a claim (or to 4
request that the provider submit a claim) 5
under this Act for such items or services; 6
(ii) agrees to be responsible for pay-7
ment of such items or services and under-8
stands that no reimbursement will be pro-9
vided under this Act for such items or 10
services; 11
(iii) acknowledges that no limits under 12
this Act apply to amounts that may be 13
charged for such items or services; and 14
(iv) acknowledges that the provider is 15
providing services outside the scope of the 16
program under this Act. 17
(4) AFFIDAVIT.—A participating provider who 18
enters into a contract described in paragraph (2) 19
shall have in effect during the period any item or 20
service is to be provided pursuant to the contract an 21
affidavit that shall— 22
(A) identify the provider who is to furnish 23
such noncovered item or service, and be signed 24
by such provider; 25
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(B) state that the provider will not submit 1
any claim under this Act for any noncovered 2
item or service provided to any individual en-3
rolled under this Act; and 4
(C) be filed with the Secretary no later 5
than 10 days after the first contract to which 6
such affidavit applies is entered into. 7
(5) ENFORCEMENT.—If a provider signing an 8
affidavit described in paragraph (4) knowingly and 9
willfully submits a claim under this title for any item 10
or service provided or receives any reimbursement or 11
amount for any such item or service provided pursu-12
ant to a private contract described in paragraph (2) 13
with respect to such affidavit— 14
(A) any contract described in paragraph 15
(2) shall be null and void; 16
(B) no payment shall be made under this 17
title for any item or service furnished by the 18
provider during the 1-year period beginning on 19
the date the affidavit was signed; and 20
(C) any payment received under this title 21
for any item or service furnished during such 22
period shall be remitted. 23
(6) PRIVATE CONTRACTS FOR INELIGIBLE INDI-24
VIDUALS.—An institutional or individual provider 25
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with an agreement in effect under section 301 may 1
bill or enter into a private contract with any indi-2
vidual ineligible for benefits under the Act for any 3
item or service. 4
(c) NONPARTICIPATING PROVIDERS.— 5
(1) PRIVATE CONTRACTS FOR COVERED ITEMS 6
AND SERVICES FOR ELIGIBLE INDIVIDUALS.—An in-7
stitutional or individual provider with no agreement 8
in effect under section 301 may bill or enter into 9
any private contract with any individual eligible for 10
benefits under the Act for any item or service that 11
is a benefit under this Act described in title II only 12
if the contract and provider meet the requirements 13
specified in paragraphs (2) and (3), respectively. 14
(2) ITEMS REQUIRED TO BE INCLUDED IN CON-15
TRACT.—Any contract to provide items and services 16
described in paragraph (1) shall— 17
(A) be in writing and signed by the indi-18
vidual (or authorized representative of the indi-19
vidual) receiving the item or service before the 20
item or service is furnished pursuant to the 21
contract; 22
(B) not be entered into at a time when the 23
individual is facing an emergency health care 24
situation; and 25
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(C) clearly indicate to the individual receiv-1
ing such items and services that by signing 2
such a contract the individual— 3
(i) acknowledges that the individual 4
has the right to have such items or services 5
provided by other providers for whom pay-6
ment would be made under this Act; 7
(ii) agrees not to submit a claim (or 8
to request that the provider submit a 9
claim) under this Act for such items or 10
services even if such items or services are 11
otherwise covered by this Act; 12
(iii) agrees to be responsible for pay-13
ment of such items or services and under-14
stands that no reimbursement will be pro-15
vided under this Act for such items or 16
services; 17
(iv) acknowledges that no limits under 18
this Act apply to amounts that may be 19
charged for such items or services; and 20
(v) acknowledges that the provider is 21
providing services outside the scope of the 22
program under this Act. 23
(3) AFFIDAVIT.—A provider who enters into a 24
contract described in paragraph (1) shall have in ef-25
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fect during the period any item or service is to be 1
provided pursuant to the contract an affidavit that 2
shall— 3
(A) identify the provider who is to furnish 4
such covered item or service, and be signed by 5
such provider; 6
(B) state that the provider will not submit 7
any claim under this Act for any covered item 8
or service provided to any individual enrolled 9
under this Act during the 2-year period begin-10
ning on the date the affidavit is signed; and 11
(C) be filed with the Secretary no later 12
than 10 days after the first contract to which 13
such affidavit applies is entered into. 14
(4) ENFORCEMENT.—If a provider signing an 15
affidavit described in paragraph (3) knowingly and 16
willfully submits a claim under this title for any item 17
or service provided or receives any reimbursement or 18
amount for any such item or service provided pursu-19
ant to a private contract described in paragraph (1) 20
with respect to such affidavit— 21
(A) any contract described in paragraph 22
(1) shall be null and void; and 23
(B) no payment shall be made under this 24
title for any item or service furnished by the 25
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provider during the 2-year period beginning on 1
the date the affidavit was signed. 2
(5) PRIVATE CONTRACTS FOR NONCOVERED 3
ITEMS AND SERVICES FOR ANY INDIVIDUAL.—An in-4
stitutional or individual provider with no agreement 5
in effect under section 301 may bill or enter into a 6
private contract with any individual for a item or 7
service that is not a benefit under this Act. 8
TITLE IV—ADMINISTRATION 9
Subtitle A—General 10
Administration Provisions 11
SEC. 401. ADMINISTRATION. 12
(a) GENERAL DUTIES OF THE SECRETARY.— 13
(1) IN GENERAL.—The Secretary shall develop 14
policies, procedures, guidelines, and requirements to 15
carry out this Act, including related to— 16
(A) eligibility for benefits; 17
(B) enrollment; 18
(C) benefits provided; 19
(D) provider participation standards and 20
qualifications, as described in title III; 21
(E) levels of funding; 22
(F) methods for determining amounts of 23
payments to providers of covered items and 24
services, consistent with subtitle B; 25
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(G) a process for appealing or petitioning 1
for a determination of coverage or noncoverage 2
of items and services under this Act; 3
(H) planning for capital expenditures and 4
service delivery; 5
(I) planning for health professional edu-6
cation funding; 7
(J) encouraging States to develop regional 8
planning mechanisms; and 9
(K) any other regulations necessary to 10
carry out the purposes of this Act. 11
(2) REGULATIONS.—Regulations authorized by 12
this Act shall be issued by the Secretary in accord-13
ance with section 553 of title 5, United States Code. 14
(3) ACCESSIBILITY.—The Secretary shall have 15
the obligation to ensure the timely and accessible 16
provision of items and services that all eligible indi-17
viduals are entitled to under this Act. 18
(b) UNIFORM REPORTING STANDARDS; ANNUAL RE-19
PORT; STUDIES.— 20
(1) UNIFORM REPORTING STANDARDS.— 21
(A) IN GENERAL.—The Secretary shall es-22
tablish uniform State reporting requirements 23
and national standards to ensure an adequate 24
national database containing information per-25
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taining to health services practitioners, ap-1
proved providers, the costs of facilities and 2
practitioners providing items and services, the 3
quality of such items and services, the outcomes 4
of such items and services, and the equity of 5
health among population groups. Such database 6
shall include, to the maximum extent feasible 7
without compromising patient privacy, health 8
outcome measures used under this Act, and to 9
the maximum extent feasible without excessively 10
burdening providers, a description of the stand-11
ards and qualifications, levels of finding, and 12
methods described in subparagraphs (D) 13
through (F) of subsection (a)(1). 14
(B) REQUIRED DATA DISCLOSURES.—In 15
establishing reporting requirements and stand-16
ards under subparagraph (A), the Secretary 17
shall require a provider with an agreement in 18
effect under section 301 to disclose to the Sec-19
retary, in a time and manner specified by the 20
Secretary, the following (as applicable to the 21
type of provider): 22
(i) Any data the provider is required 23
to report or does report to any State or 24
local agency, or, as of January 1, 2019, to 25
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the Secretary or any entity that is part of 1
the Department of Health and Human 2
Services, except data that are required 3
under the programs terminated in section 4
903. 5
(ii) Annual financial data that in-6
cludes information on employees (including 7
the number of employees, hours worked, 8
and wage information) by job title and by 9
each patient care unit or department with-10
in each facility (including outpatient units 11
or departments); the number of registered 12
nurses per staffed bed by each such unit or 13
department; information on the dollar 14
value and annual spending (including pur-15
chases, upgrades, and maintenance) for 16
health information technology; and risk-ad-17
justed and raw patient outcome data (in-18
cluding data on medical, surgical, obstet-19
ric, and other procedures). 20
(C) REPORTS.—The Secretary shall regu-21
larly analyze information reported to the Sec-22
retary and shall define rules and procedures to 23
allow researchers, scholars, health care pro-24
viders, and others to access and analyze data 25
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for purposes consistent with quality and out-1
comes research, without compromising patient 2
privacy. 3
(2) ANNUAL REPORT.—Beginning 2 years after 4
the date of the enactment of this Act, the Secretary 5
shall annually report to Congress on the following: 6
(A) The status of implementation of the 7
Act. 8
(B) Enrollment under this Act. 9
(C) Benefits under this Act. 10
(D) Expenditures and financing under this 11
Act. 12
(E) Cost-containment measures and 13
achievements under this Act. 14
(F) Quality assurance. 15
(G) Health care utilization patterns, in-16
cluding any changes attributable to the pro-17
gram. 18
(H) Changes in the per-capita costs of 19
health care. 20
(I) Differences in the health status of the 21
populations of the different States, including in-22
come and racial characteristics, and other popu-23
lation health inequities. 24
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(J) Progress on quality and outcome meas-1
ures, and long-range plans and goals for 2
achievements in such areas. 3
(K) Plans for improving service to medi-4
cally underserved populations. 5
(L) Transition problems as a result of im-6
plementation of this Act. 7
(M) Opportunities for improvements under 8
this Act. 9
(3) STATISTICAL ANALYSES AND OTHER STUD-10
IES.—The Secretary may, either directly or by con-11
tract— 12
(A) make statistical and other studies, on 13
a nationwide, regional, State, or local basis, of 14
any aspect of the operation of this Act; 15
(B) develop and test methods of delivery of 16
items and services as the Secretary may con-17
sider necessary or promising for the evaluation, 18
or for the improvement, of the operation of this 19
Act; and 20
(C) develop methodological standards for 21
policymaking. 22
(c) AUDITS.— 23
(1) IN GENERAL.—The Comptroller General of 24
the United States shall conduct an audit of the De-25
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partment of Health and Human Services every fifth 1
fiscal year following the effective date of this Act to 2
determine the effectiveness of the program in car-3
rying out the duties under subsection (a). 4
(2) REPORTS.—The Comptroller General of the 5
United States shall submit a report to Congress con-6
cerning the results of each audit conducted under 7
this subsection. 8
SEC. 402. CONSULTATION. 9
The Secretary shall consult with Federal agencies, 10
Indian tribes and urban Indian health organizations, and 11
private entities, such as labor organizations representing 12
health care workers, professional societies, national asso-13
ciations, nationally recognized associations of health care 14
experts, medical schools and academic health centers, con-15
sumer groups, and business organizations in the formula-16
tion of guidelines, regulations, policy initiatives, and infor-17
mation gathering to ensure the broadest and most in-18
formed input in the administration of this Act. Nothing 19
in this Act shall prevent the Secretary from adopting 20
guidelines, consistent with the provisions of section 203(c), 21
developed by such a private entity if, in the Secretary’s 22
judgment, such guidelines are generally accepted as rea-23
sonable and prudent and consistent with this Act. 24
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SEC. 403. REGIONAL ADMINISTRATION. 1
(a) COORDINATION WITH REGIONAL OFFICES.—The 2
Secretary shall establish and maintain regional offices for 3
purposes of carrying out the duties specified in subsection 4
(c) and promoting adequate access to, and efficient use 5
of, tertiary care facilities, equipment, and services by indi-6
viduals enrolled under this Act. Wherever possible, the 7
Secretary shall incorporate regional offices of the Centers 8
for Medicare & Medicaid Services for this purpose. 9
(b) APPOINTMENT OF REGIONAL DIRECTORS.—In 10
each such regional office there shall be— 11
(1) one regional director appointed by the Sec-12
retary; and 13
(2) one deputy director appointed by the re-14
gional director to represent the Indian and Alaska 15
Native tribes in the region, if any. 16
(c) REGIONAL OFFICE DUTIES.—Each regional di-17
rector shall— 18
(1) provide an annual health care needs assess-19
ment with respect to the region under the director’s 20
jurisdiction to the Secretary after a thorough exam-21
ination of health needs and in consultation with pub-22
lic health officials, clinicians, patients, and patient 23
advocates; 24
(2) recommend any changes in provider reim-25
bursement or payment for delivery of health services 26
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determined appropriate by the regional director, sub-1
ject to the provisions of title VI; and 2
(3) establish a quality assurance mechanism in 3
each such region in order to minimize both under-4
utilization and overutilization of health care items 5
and services and to ensure that all providers meet 6
quality standards established pursuant to this Act. 7
SEC. 404. BENEFICIARY OMBUDSMAN. 8
(a) IN GENERAL.—The Secretary shall appoint a 9
Beneficiary Ombudsman who shall have expertise and ex-10
perience in the fields of health care and education of, and 11
assistance to, individuals enrolled under this Act. 12
(b) DUTIES.—The Beneficiary Ombudsman shall— 13
(1) receive complaints, grievances, and requests 14
for information submitted by individuals enrolled 15
under this Act or eligible to enroll under this Act 16
with respect to any aspect of the Medicare for All 17
Program; 18
(2) provide assistance with respect to com-19
plaints, grievances, and requests referred to in para-20
graph (1), including assistance in collecting relevant 21
information for such individuals, to seek an appeal 22
of a decision or determination made by a regional of-23
fice or the Secretary; and 24
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(3) submit annual reports to Congress and the 1
Secretary that describe the activities of the Ombuds-2
man and that include such recommendations for im-3
provement in the administration of this Act as the 4
Ombudsman determines appropriate. The Ombuds-5
man shall not serve as an advocate for any increases 6
in payments or new coverage of services, but may 7
identify issues and problems in payment or coverage 8
policies. 9
SEC. 405. CONDUCT OF RELATED HEALTH PROGRAMS. 10
In performing functions with respect to health per-11
sonnel education and training, health research, environ-12
mental health, disability insurance, vocational rehabilita-13
tion, the regulation of food and drugs, and all other mat-14
ters pertaining to health, the Secretary shall direct the ac-15
tivities of the Department of Health and Human Services 16
toward contributions to the health of the people com-17
plementary to this Act. 18
Subtitle B—Control Over Fraud 19
and Abuse 20
SEC. 411. APPLICATION OF FEDERAL SANCTIONS TO ALL 21
FRAUD AND ABUSE UNDER THE MEDICARE 22
FOR ALL PROGRAM. 23
The following sections of the Social Security Act shall 24
apply to this Act in the same manner as they apply to 25
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title XVIII or State plans under title XIX of the Social 1
Security Act: 2
(1) Section 1128 (relating to exclusion of indi-3
viduals and entities). 4
(2) Section 1128A (civil monetary penalties). 5
(3) Section 1128B (criminal penalties). 6
(4) Section 1124 (relating to disclosure of own-7
ership and related information). 8
(5) Section 1126 (relating to disclosure of cer-9
tain owners). 10
(6) Section 1877 (relating to physician refer-11
rals). 12
TITLE V—QUALITY ASSESSMENT 13
SEC. 501. QUALITY STANDARDS. 14
(a) IN GENERAL.—All standards and quality meas-15
ures under this Act shall be implemented and evaluated 16
by the Center for Clinical Standards and Quality of the 17
Centers for Medicare & Medicaid Services (referred to in 18
this title as the ‘‘Center’’) or such other agency deter-19
mined appropriate by the Secretary, in coordination with 20
the Agency for Healthcare Research and Quality and other 21
offices of the Department of Health and Human Services. 22
(b) DUTIES OF THE CENTER.—The Center shall per-23
form the following duties: 24
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(1) Review and evaluate each practice guideline 1
developed under part B of title IX of the Public 2
Health Service Act. In so reviewing and evaluating, 3
the Center shall determine whether the guideline 4
should be recognized as a national practice guideline 5
in accordance with and subject to the provisions of 6
section 203(c). 7
(2) Review and evaluate each standard of qual-8
ity, performance measure, and medical review cri-9
terion developed under part B of title IX of the Pub-10
lic Health Service Act (42 U.S.C. 299 et seq.). In 11
so reviewing and evaluating, the Center shall deter-12
mine whether the standard, measure, or criterion is 13
appropriate for use in assessing or reviewing the 14
quality of items and services provided by health care 15
institutions or health care professionals. The use of 16
Quality-Adjusted Life Years, Disability-Adjusted 17
Life Years, or other similar mechanisms that dis-18
criminate against people with disabilities is prohib-19
ited for use in any value or cost-effectiveness assess-20
ments. The Center shall consider the evidentiary 21
basis for the standard, and the validity, reliability, 22
and feasibility of measuring the standard. 23
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(3) Adoption of methodologies for profiling the 1
patterns of practice of health care professionals and 2
for identifying and notifying outliers. 3
(4) Development of minimum criteria for com-4
petence for entities that can qualify to conduct ongo-5
ing and continuous external quality reviews in the 6
administrative regions. Such criteria shall require 7
such an entity to be administratively independent of 8
the individual or board that administers the region 9
and shall ensure that such entities do not provide fi-10
nancial incentives to reviewers to favor one pattern 11
of practice over another. The Center shall ensure co-12
ordination and reporting by such entities to ensure 13
national consistency in quality standards. 14
(5) Submission of a report to the Secretary an-15
nually specifically on findings from outcomes re-16
search and development of practice guidelines that 17
may affect the Secretary’s determination of coverage 18
of services under section 401(a)(1)(G). 19
SEC. 502. ADDRESSING HEALTH CARE DISPARITIES. 20
(a) EVALUATING DATA COLLECTION AP-21
PROACHES.—The Center shall evaluate approaches for the 22
collection of data under this Act, to be performed in con-23
junction with existing quality reporting requirements and 24
programs under this Act, that allow for the ongoing, accu-25
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rate, and timely collection of data on disparities in health 1
care services and performance on the basis of race, eth-2
nicity, gender, geography, disability, or socioeconomic sta-3
tus. In conducting such evaluation, the Center shall con-4
sider the following objectives: 5
(1) Protecting patient privacy. 6
(2) Minimizing the administrative burdens of 7
data collection and reporting on providers under this 8
Act. 9
(3) Improving data on race, ethnicity, gender, 10
geography, and socioeconomic status. 11
(b) REPORTS TO CONGRESS.— 12
(1) REPORT ON EVALUATION.—Not later than 13
18 months after the date on which benefits first be-14
come available as described in section 106(a), the 15
Center shall submit to Congress and the Secretary 16
a report on the evaluation conducted under sub-17
section (a). Such report shall, taking into consider-18
ation the results of such evaluation— 19
(A) identify approaches (including defining 20
methodologies) for identifying and collecting 21
and evaluating data on health care disparities 22
on the basis of race, ethnicity, gender, geog-23
raphy, or socioeconomic status under the Medi-24
care for All Program; and 25
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(B) include recommendations on the most 1
effective strategies and approaches to reporting 2
quality measures, as appropriate, on the basis 3
of race, ethnicity, gender, geography, or socio-4
economic status. 5
(2) REPORT ON DATA ANALYSES.—Not later 6
than 4 years after the submission of the report 7
under subsection (b)(1), and every 4 years there-8
after, the Center shall submit to Congress and the 9
Secretary a report that includes recommendations 10
for improving the identification of health care dis-11
parities based on the analyses of data collected 12
under subsection (c). 13
(c) IMPLEMENTING EFFECTIVE APPROACHES.—Not 14
later than 2 years after the date on which benefits first 15
become available as described in section 106(a), the Sec-16
retary shall implement the approaches identified in the re-17
port submitted under subsection (b)(1) for the ongoing, 18
accurate, and timely collection and evaluation of data on 19
health care disparities on the basis of race, ethnicity, gen-20
der, geography, or socioeconomic status. 21
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TITLE VI—HEALTH BUDGET; 1
PAYMENTS; COST CONTAIN-2
MENT MEASURES 3
Subtitle A—Budgeting 4
SEC. 601. NATIONAL HEALTH BUDGET. 5
(a) NATIONAL HEALTH BUDGET.— 6
(1) IN GENERAL.—By not later than September 7
1 of each year, beginning with the year prior to the 8
date on which benefits first become available as de-9
scribed in section 106(a), the Secretary shall estab-10
lish a national health budget, which specifies a budg-11
et for the total expenditures to be made for covered 12
health care items and services under this Act. 13
(2) DIVISION OF BUDGET INTO COMPONENTS.— 14
The national health budget shall consist of the fol-15
lowing components: 16
(A) An operating budget. 17
(B) A capital expenditures budget. 18
(C) A special projects budget for purposes 19
of allocating funds for capital expenditures and 20
staffing needs of providers located in rural or 21
medically underserved areas (as defined in sec-22
tion 330(b)(3) of the Public Health Service Act 23
(42 U.S.C. 254b(b)(3))), including areas des-24
ignated as health professional shortage areas 25
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(as defined in section 332(a) of the Public 1
Health Service Act (42 U.S.C. 254e(a))). 2
(D) Quality assessment activities under 3
title V. 4
(E) Health professional education expendi-5
tures. 6
(F) Administrative costs, including costs 7
related to the operation of regional offices. 8
(G) A reserve fund to respond to the costs 9
of treating an epidemic, pandemic, natural dis-10
aster, or other such health emergency, or mar-11
ket-shift adjustments related to patient volume. 12
(H) Prevention and public health activities. 13
(3) ALLOCATION AMONG COMPONENTS.—The 14
Secretary shall allocate the funds received for pur-15
poses of carrying out this Act among the compo-16
nents described in paragraph (2) in a manner that 17
ensures— 18
(A) that the operating budget allows for 19
every participating provider in the Medicare for 20
All Program to meet the needs of their respec-21
tive patient populations; 22
(B) that the special projects budget is suf-23
ficient to meet the health care needs within 24
areas described in paragraph (2)(C) through 25
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the construction, renovation, and staffing of 1
health care facilities in a reasonable timeframe; 2
(C) a fair allocation for quality assessment 3
activities; and 4
(D) that the health professional education 5
expenditure component is sufficient to provide 6
for the amount of health professional education 7
expenditures sufficient to meet the need for cov-8
ered health care services. 9
(4) REGIONAL ALLOCATION.—The Secretary 10
shall annually provide each regional office with an 11
allotment the Secretary determines appropriate for 12
purposes of carrying out this Act in such region, in-13
cluding payments to providers in such region, capital 14
expenditures in such region, special projects in such 15
region, health professional education in such region, 16
administrative expenses in such region, and preven-17
tion and public health activities in such region. 18
(5) OPERATING BUDGET.—The operating budg-19
et described in paragraph (2)(A) shall be used for— 20
(A) payments to institutional providers 21
pursuant to section 611; and 22
(B) payments to individual providers pur-23
suant to section 612. 24
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(6) CAPITAL EXPENDITURES BUDGET.—The 1
capital expenditures budget described in paragraph 2
(2)(B) shall be used for— 3
(A) the construction or renovation of 4
health care facilities, excluding congregate or 5
segregated facilities for individuals with disabil-6
ities who receive long-term care services and 7
support; and 8
(B) major equipment purchases. 9
(7) SPECIAL PROJECTS BUDGET.—The special 10
projects budget shall be used for the construction of 11
new facilities, major equipment purchases, and staff-12
ing in rural or medically underserved areas (as de-13
fined in section 330(b)(3) of the Public Health Serv-14
ice Act (42 U.S.C. 254b(b)(3))), including areas des-15
ignated as health professional shortage areas (as de-16
fined in section 332(a) of the Public Health Service 17
Act (42 U.S.C. 254e(a))). 18
(8) TEMPORARY WORKER ASSISTANCE.— 19
(A) IN GENERAL.—For up to 5 years fol-20
lowing the date on which benefits first become 21
available as described in section 106(a), at least 22
1 percent of the budget shall be allocated to 23
programs providing assistance to workers who 24
perform functions in the administration of the 25
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health insurance system, or related functions 1
within health care institutions or organizations 2
who may be affected by the implementation of 3
this Act and who may experience economic dis-4
location as a result of the implementation of 5
this Act. 6
(B) CLARIFICATION.—Assistance described 7
in subparagraph (A) shall include wage replace-8
ment, retirement benefits, job training, and 9
education benefits. 10
(b) DEFINITIONS.—In this section: 11
(1) CAPITAL EXPENDITURES.—The term ‘‘cap-12
ital expenditures’’ means expenses for the purchase, 13
lease, construction, or renovation of capital facilities 14
and for major equipment. 15
(2) HEALTH PROFESSIONAL EDUCATION EX-16
PENDITURES.—The term ‘‘health professional edu-17
cation expenditures’’ means expenditures in hospitals 18
and other health care facilities to cover costs associ-19
ated with teaching and related research activities, in-20
cluding the impact of workforce diversity on patient 21
outcomes. 22
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Subtitle B—Payments to Providers 1
SEC. 611. PAYMENTS TO INSTITUTIONAL PROVIDERS 2
BASED ON GLOBAL BUDGETS. 3
(a) IN GENERAL.—Not later than the beginning of 4
each fiscal quarter during which an institutional provider 5
of care (including hospitals, skilled nursing facilities, Fed-6
erally qualified health centers, home health agencies, and 7
independent dialysis facilities) is to furnish items and 8
services under this Act, the Secretary shall pay to such 9
institutional provider a lump sum in accordance with the 10
succeeding provisions of this subsection and consistent 11
with the following: 12
(1) PAYMENT IN FULL.—Such payment shall be 13
considered as payment in full for all operating ex-14
penses for items and services furnished under this 15
Act, whether inpatient or outpatient, by such pro-16
vider for such quarter, including outpatient or any 17
other care provided by the institutional provider or 18
provided by any health care provider who provided 19
items and services pursuant to an agreement paid 20
through the global budget as described in paragraph 21
(3). 22
(2) QUARTERLY REVIEW.—The regional direc-23
tor, on a quarterly basis, shall review whether re-24
quirements of the institutional provider’s participa-25
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tion agreement and negotiated global budget have 1
been performed and shall determine whether adjust-2
ments to such institutional provider’s payment are 3
warranted. This review shall include consideration 4
for additional funding necessary for unanticipated 5
items and services for individuals with complex med-6
ical needs or market-shift adjustments related to pa-7
tient value. The review shall also include an assess-8
ment of any adjustments made to ensure that accu-9
racy and need for adjustment was appropriate. 10
(3) AGREEMENTS FOR SALARIED PAYMENTS 11
FOR CERTAIN PROVIDERS.—Certain group practices 12
and other health care providers, as determined by 13
the Secretary, with agreements to provide items and 14
services at a specified institutional provider paid a 15
global budget under this subsection may elect to be 16
paid through such institutional provider’s global 17
budget in lieu of payment under section 612 of this 18
title. Any— 19
(A) individual health care professional of 20
such group practice or other provider receiving 21
payment through an institutional provider’s 22
global budget shall be paid on a salaried basis 23
that is equivalent to salaries or other compensa-24
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tion rates negotiated for individual health care 1
professionals of such institutional provider; and 2
(B) any group practice or other health care 3
provider that receives payment through an in-4
stitutional provider global budget under this 5
paragraph shall be subject to the same report-6
ing and disclosure requirements of the institu-7
tional provider. 8
(b) PAYMENT AMOUNT.— 9
(1) IN GENERAL.—The amount of each pay-10
ment to a provider described in subsection (a) shall 11
be determined before the start of each fiscal year 12
through negotiations between the provider and the 13
regional director with jurisdiction over such pro-14
vider. Such amount shall be based on factors speci-15
fied in paragraph (2). 16
(2) PAYMENT FACTORS.—Payments negotiated 17
pursuant to paragraph (1) shall take into account, 18
with respect to a provider— 19
(A) the historical volume of services pro-20
vided for each item and services in the previous 21
3-year period; 22
(B) the actual expenditures of such pro-23
vider in such provider’s most recent cost report 24
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under title XVIII of the Social Security Act for 1
each item and service compared to— 2
(i) such expenditures for other institu-3
tional providers in the director’s jurisdic-4
tion; and 5
(ii) normative payment rates estab-6
lished under comparative payment rate 7
systems, including any adjustments, for 8
such items and services; 9
(C) projected changes in the volume and 10
type of items and services to be furnished; 11
(D) wages for employees, including any 12
necessary increases mandatory minimum safe 13
registered nurse-to-patient ratios and optimal 14
staffing levels for physicians and other health 15
care workers; 16
(E) the provider’s maximum capacity to 17
provide items and services; 18
(F) education and prevention programs; 19
(G) permissible adjustment to the pro-20
vider’s operating budget due to factors such 21
as— 22
(i) an increase in primary or specialty 23
care access; 24
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(ii) efforts to decrease health care dis-1
parities in rural or medically underserved 2
areas; 3
(iii) a response to emergent epidemic 4
conditions; and 5
(iv) proposed new and innovative pa-6
tient care programs at the institutional 7
level; and 8
(H) any other factor determined appro-9
priate by the Secretary. 10
(3) LIMITATION.—Payment amounts negotiated 11
pursuant to paragraph (1) may not— 12
(A) take into account capital expenditures 13
of the provider or any other expenditure not di-14
rectly associated with the provision of items and 15
services by the provider to an individual; 16
(B) be used by a provider for capital ex-17
penditures or such other expenditures; 18
(C) exceed the provider’s capacity to pro-19
vide care under this Act; or 20
(D) be used to pay or otherwise com-21
pensate any board member, executive, or ad-22
ministrator of the institutional provider who 23
has any interest or relationship prohibited 24
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under section 301(b)(2) of this Act or disclosed 1
under section 301 of this Act. 2
(4) OPERATING EXPENSES.—For purposes of 3
this subsection, ‘‘operating expenses’’ of a provider 4
include the following: 5
(A) The cost of all items and services asso-6
ciated with the provision of inpatient care and 7
outpatient care, including the following: 8
(i) Wages and salary costs for physi-9
cians, nurses, and other health care practi-10
tioners employed by an institutional pro-11
vider, including mandatory minimum safe 12
registered nurse-to-patient staffing ratios 13
and optimal staffing levels for physicians 14
and other healthcare workers. 15
(ii) Wages and salary costs for all an-16
cillary staff and services. 17
(iii) Costs of all pharmaceutical prod-18
ucts administered by health care clinicians 19
at the institutional provider’s facilities or 20
through services provided in accordance 21
with State licensing laws or regulations 22
under which the institutional provider op-23
erates. 24
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(iv) Purchasing and maintenance of 1
medical devices, supplies, and other health 2
care technologies, including diagnostic test-3
ing equipment. 4
(v) Costs of all incidental services nec-5
essary for safe patient care and handling. 6
(vi) Costs of patient care, education, 7
and prevention programs, including occu-8
pational health and safety programs, public 9
health programs, and necessary staff to 10
implement such programs, for the contin-11
ued education and health and safety of cli-12
nicians and other individuals employed by 13
the institutional provider. 14
(B) Administrative costs for the institu-15
tional provider. 16
(5) LIMITATION ON COMPENSATION.—Com-17
pensation costs for any employee or any contractor 18
or any subcontractor employee of an institutional 19
provider receiving global budgets under this section 20
shall meet the compensation cap established in sec-21
tion 702 of the Bipartisan Budget Act of 2013 (41 22
U.S.C. 4304(a)(16)) and implementing regulations. 23
(6) REGIONAL NEGOTIATIONS PERMITTED.— 24
Subject to section 614, a regional director may nego-25
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tiate changes to an institutional provider’s global 1
budget, including any adjustments to address un-2
foreseen market-shifts related to patient volume. 3
(c) BASELINE RATES AND ADJUSTMENTS.— 4
(1) IN GENERAL.—The Secretary shall use ex-5
isting prospective payment systems under title 6
XVIII of the Social Security Act to serve as the 7
comparative payment rate system in global budget 8
negotiations described in subsection (b). The Sec-9
retary shall update such comparative payment rate 10
systems annually. 11
(2) SPECIFICATIONS.—In developing the com-12
parative payment rate system, the Secretary shall 13
use only the operating base payment rates under 14
each such prospective payment systems with applica-15
ble adjustments. 16
(3) LIMITATION.—The comparative rate system 17
established under this subsection shall not include 18
the value-based payment adjustments and the cap-19
ital expenses base payment rates that may be in-20
cluded in such a prospective payment system. 21
(4) INITIAL YEAR.—In the first year that global 22
budget payments under this Act are available to in-23
stitutional providers and for purposes of selecting a 24
comparative payment rate system used during initial 25
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global budget negotiations for each institutional pro-1
vider, the Secretary shall take into account the ap-2
propriate prospective payment system from the most 3
recent year under title XVIII of the Social Security 4
Act to determine what operating base payment the 5
institutional provider would have been paid for cov-6
ered items and services furnished the preceding year 7
with applicable adjustments, excluding value-based 8
payment adjustments, based on such prospective 9
payment system. 10
SEC. 612. PAYMENT TO INDIVIDUAL PROVIDERS THROUGH 11
FEE-FOR-SERVICE. 12
(a) IN GENERAL.—In the case of a provider not de-13
scribed in section 611(a) (including those in group prac-14
tices who are not receiving payment on a salaried basis 15
described in section 611(a)(3)), payment for items and 16
services furnished under this Act for which payment is not 17
otherwise made under section 611 shall be made by the 18
Secretary in amounts determined under the fee schedule 19
established pursuant to subsection (b). Such payment 20
shall be considered to be payment in full for such items 21
and services, and a provider receiving such payment may 22
not charge the individual receiving such item or service 23
in any amount. 24
(b) FEE SCHEDULE.— 25
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(1) ESTABLISHMENT.—Not later than 1 year 1
after the date of the enactment of this Act, and in 2
consultation with providers and regional office direc-3
tors, the Secretary shall establish a national fee 4
schedule for items and services payable under this 5
Act. The Secretary shall evaluate the effectiveness of 6
the fee-for-service structure and update such fee 7
schedule annually. 8
(2) AMOUNTS.—In establishing payment 9
amounts for items and services under the fee sched-10
ule established under paragraph (1), the Secretary 11
shall take into account— 12
(A) the amounts payable for such items 13
and services under title XVIII of the Social Se-14
curity Act; and 15
(B) the expertise of providers and value of 16
items and services furnished by such providers. 17
(c) ELECTRONIC BILLING.—The Secretary shall es-18
tablish a uniform national system for electronic billing for 19
purposes of making payments under this subsection. 20
(d) PHYSICIAN PRACTICE REVIEW BOARD.—Each di-21
rector of a regional office, in consultation with representa-22
tives of physicians practicing in that region, shall establish 23
and appoint a physician practice review board to assure 24
quality, cost effectiveness, and fair reimbursements for 25
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physician-delivered items and services. The use of Quality- 1
Adjusted Life Years, Disability-Adjusted Life Years, or 2
other similar mechanisms that discriminate against people 3
with disabilities is prohibited for use in any value or cost- 4
effectiveness assessments. 5
SEC. 613. ENSURING ACCURATE VALUATION OF SERVICES 6
UNDER THE MEDICARE PHYSICIAN FEE 7
SCHEDULE. 8
(a) STANDARDIZED AND DOCUMENTED REVIEW 9
PROCESS.—Section 1848(c)(2) of the Social Security Act 10
(42 U.S.C. 1395w–4(c)(2)) is amended by adding at the 11
end the following new subparagraph: 12
‘‘(P) STANDARDIZED AND DOCUMENTED 13
REVIEW PROCESS.— 14
‘‘(i) IN GENERAL.—Not later than one 15
year after the date of enactment of this 16
subparagraph, the Secretary shall estab-17
lish, document, and make publicly avail-18
able, in consultation with the Office of Pri-19
mary Health Care, a standardized process 20
for reviewing the relative values of physi-21
cians’ services under this paragraph. 22
‘‘(ii) MINIMUM REQUIREMENTS.—The 23
standardized process shall include, at a 24
minimum, methods and criteria for identi-25
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fying services for review, prioritizing the 1
review of services, reviewing stakeholder 2
recommendations, and identifying addi-3
tional resources to be considered during 4
the review process.’’. 5
(b) PLANNED AND DOCUMENTED USE OF FUNDS.— 6
Section 1848(c)(2)(M) of the Social Security Act (42 7
U.S.C. 1395w–4(c)(2)(M)) is amended by adding at the 8
end the following new clause: 9
‘‘(x) PLANNED AND DOCUMENTED 10
USE OF FUNDS.—For each fiscal year (be-11
ginning with the first fiscal year beginning 12
on or after the date of enactment of this 13
clause), the Secretary shall provide to Con-14
gress a written plan for using the funds 15
provided under clause (ix) to collect and 16
use information on physicians’ services in 17
the determination of relative values under 18
this subparagraph.’’. 19
(c) INTERNAL TRACKING OF REVIEWS.— 20
(1) IN GENERAL.—Not later than 1 year after 21
the date of enactment of this Act, the Secretary 22
shall submit to Congress a proposed plan for system-23
atically and internally tracking the Secretary’s re-24
view of the relative values of physicians’ services, 25
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such as by establishing an internal database, under 1
section 1848(c)(2) of the Social Security Act (42 2
U.S.C. 1395w–4(c)(2)), as amended by this section. 3
(2) MINIMUM REQUIREMENTS.—The proposal 4
shall include, at a minimum, plans and a timeline 5
for achieving the ability to systematically and inter-6
nally track the following: 7
(A) When, how, and by whom services are 8
identified for review. 9
(B) When services are reviewed or re-10
viewed or when new services are added. 11
(C) The resources, evidence, data, and rec-12
ommendations used in reviews. 13
(D) When relative values are adjusted. 14
(E) The rationale for final relative value 15
decisions. 16
(d) FREQUENCY OF REVIEW.—Section 1848(c)(2) of 17
the Social Security Act (42 U.S.C. 1395w–4(c)(2)) is 18
amended— 19
(1) in subparagraph (B)(i), by striking ‘‘5’’ and 20
inserting ‘‘4’’; and 21
(2) in subparagraph (K)(i)(I), by striking ‘‘peri-22
odically’’ and inserting ‘‘annually’’. 23
(e) CONSULTATION WITH MEDICARE PAYMENT AD-24
VISORY COMMISSION.— 25
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(1) IN GENERAL.—Section 1848(c)(2) of the 1
Social Security Act (42 U.S.C. 1395w–4(c)(2)) is 2
amended— 3
(A) in subparagraph (B)(i), by inserting 4
‘‘in consultation with the Medicare Payment 5
Advisory Commission,’’ after ‘‘The Secretary,’’; 6
and 7
(B) in subparagraph (K)(i)(I), as amended 8
by subsection (d)(2), by inserting ‘‘, in coordi-9
nation with the Medicare Payment Advisory 10
Commission,’’ after ‘‘annually’’. 11
(2) CONFORMING AMENDMENTS.—Section 1805 12
of the Social Security Act (42 U.S.C. 1395b–6) is 13
amended— 14
(A) in subsection (b)(1)(A), by inserting 15
the following before the semicolon at the end: 16
‘‘and including coordinating with the Secretary 17
in accordance with section 1848(c)(2) to sys-18
tematically review the relative values established 19
for physicians’ services, identify potentially 20
misvalued services, and propose adjustments to 21
the relative values for physicians’ services’’; and 22
(B) in subsection (e)(1), in the second sen-23
tence, by inserting ‘‘or the Ranking Minority 24
Member’’ after ‘‘the Chairman’’. 25
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(f) PERIODIC AUDIT BY THE COMPTROLLER GEN-1
ERAL.—Section 1848(c)(2) of the Social Security Act (42 2
U.S.C. 1395w–4(c)(2)), as amended by subsection (a), is 3
amended by adding at the end the following new subpara-4
graph: 5
‘‘(Q) PERIODIC AUDIT BY THE COMP-6
TROLLER GENERAL.— 7
‘‘(i) IN GENERAL.—The Comptroller 8
General of the United States (in this sub-9
section referred to as the ‘Comptroller 10
General’) shall periodically audit the review 11
by the Secretary of relative values estab-12
lished under this paragraph for physicians’ 13
services. 14
‘‘(ii) ACCESS TO INFORMATION.—The 15
Comptroller General shall have unre-16
stricted access to all deliberations, records, 17
and data related to the activities carried 18
out under this paragraph, in a timely man-19
ner, upon request.’’. 20
SEC. 614. PAYMENT PROHIBITIONS; CAPITAL EXPENDI-21
TURES; SPECIAL PROJECTS. 22
(a) SENSE OF CONGRESS.—It is the sense of Con-23
gress that tens of millions of people in the United States 24
do not receive healthcare services while billions of dollars 25
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that could be spent on providing health care are diverted 1
to profit. There is a moral imperative to correct the mas-2
sive deficiencies in our current health system and to elimi-3
nate profit from the provision of health care. 4
(b) PROHIBITIONS.—Payments to providers under 5
this Act may not take into account, include any process 6
for the provision of funding for, or be used by a provider 7
for— 8
(1) marketing of the provider; 9
(2) the profit or net revenue of the provider, or 10
increasing the profit or net revenue of the provider; 11
(3) incentive payments, bonuses, or other com-12
pensation based on patient utilization of items and 13
services or any financial measure applied with re-14
spect to the provider (or any group practice, inte-15
grated health care delivery system, or other provider 16
with which the provider contracts or has a pecuniary 17
interest), including any value-based payment or em-18
ployment-based compensation; 19
(4) any agreement or arrangement described in 20
section 203(a)(4) of the Labor-Management Report-21
ing and Disclosure Act of 1959 (29 U.S.C. 22
433(a)(4)); or 23
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(5) political or contributions prohibited under 1
section 317 of the Federal Elections Campaign Act 2
of 1971 (52 U.S.C. 30119(a)(1)). 3
(c) PAYMENTS FOR CAPITAL EXPENDITURES.— 4
(1) IN GENERAL.—The Secretary shall pay, 5
from amounts made available for capital expendi-6
tures pursuant to section 601(a)(2)(B), such sums 7
determined appropriate by the Secretary to providers 8
who have submitted an application to the regional 9
director of the region or regions in which the pro-10
vider operates or seeks to operate in a time and 11
manner specified by the Secretary for purposes of 12
funding capital expenditures of such providers. 13
(2) PRIORITY.—The Secretary shall prioritize 14
allocation of funding under paragraph (1) to 15
projects that propose to use such funds to improve 16
service in a medically underserved area (as defined 17
in section 330(b)(3) of the Public Health Service 18
Act (42 U.S.C. 254b(b)(3))) or to address health 19
disparities among racial, income, or ethnic groups, 20
or based on geographic regions. 21
(3) LIMITATION.—The Secretary shall not 22
grant funding for capital expenditures under this 23
subsection for capital projects that are financed di-24
rectly or indirectly through the diversion of private 25
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or other non-Medicare for All Program funding that 1
results in reductions in care to patients, including 2
reductions in registered nursing staffing patterns 3
and changes in emergency room or primary care 4
services or availability. 5
(4) CAPITAL PROJECTS FUNDED BY CHARI-6
TABLE DONATIONS.—Operating expenses and funds 7
shall not by used by an institutional provider receiv-8
ing payment for capital expenditures under this sub-9
section for a capital project funded by charitable do-10
nations without the approval of the regional director 11
or directors of the region or regions where the cap-12
ital project is located. 13
(d) PROHIBITION AGAINST CO-MINGLING OPER-14
ATING AND CAPITAL FUNDS.—Providers that receive pay-15
ment under this title shall be prohibited from using, with 16
respect to funds made available under this Act— 17
(1) funds designated for operating expenditures 18
for capital expenditures or for profit; or 19
(2) funds designated for capital expenditures 20
for operating expenditures. 21
(e) PAYMENTS FOR SPECIAL PROJECTS.— 22
(1) IN GENERAL.—The Secretary shall allocate 23
to each regional director, from amounts made avail-24
able for special projects pursuant to section 25
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601(a)(2)(C), such sums determined appropriate by 1
the Secretary for purposes of funding projects de-2
scribed in such section, including the construction, 3
renovation, or staffing of health care facilities, in 4
rural, underserved, or health professional or medical 5
shortage areas within such region. Each regional di-6
rector shall, prior to distributing such funds in ac-7
cordance with paragraph (2), present a budget de-8
scribing how such funds will be distributed to the 9
Secretary. 10
(2) DISTRIBUTION.—A regional director shall 11
distribute funds to providers operating in the region 12
of such director’s jurisdiction in a manner deter-13
mined appropriate by the director. 14
(f) PROHIBITION ON FINANCIAL INCENTIVE 15
METRICS IN PAYMENT DETERMINATIONS.—The Sec-16
retary may not utilize any quality metrics or standards 17
for the purposes of establishing provider payment meth-18
odologies, programs, modifiers, or adjustments for pro-19
vider payments under this title. 20
SEC. 615. OFFICE OF PRIMARY HEALTH CARE. 21
(a) IN GENERAL.—There is established within the 22
Agency for Healthcare Research and Quality an Office of 23
Primary Health Care, responsible for coordinating with 24
the Secretary, the Health Resources and Services Admin-25
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istration, and other offices in the Department as nec-1
essary, in order to— 2
(1) coordinate health professional education 3
policies and goals, in consultation with the Secretary 4
to achieve the national goals specified in subsection 5
(b); 6
(2) develop and maintain a system to monitor 7
the number and specialties of individuals through 8
their health professional education, any postgraduate 9
training, and professional practice; 10
(3) develop, coordinate, and promote policies 11
that expand the number of primary care practi-12
tioners, registered nurses, midlevel practitioners, and 13
dentists; 14
(4) recommend the appropriate training, tech-15
nical assistance, and patient protection enhance-16
ments of primary care health professionals, including 17
registered nurses, to achieve uniform high quality 18
and patient safety; and 19
(5) consult with the Secretary on the allocation 20
of the special projects budget under section 21
601(a)(2)(C). 22
(b) NATIONAL GOALS.—Not later than 1 year after 23
the date of enactment of this Act, the Office of Primary 24
Health Care shall set forth national goals to increase ac-25
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cess to high quality primary health care, particularly in 1
underserved areas and for underserved populations. 2
(c) CLARIFICATION.—Nothing in this— 3
(1) section shall be construed to preempt any 4
provision of State law establishing practice stand-5
ards or guidelines for health care professionals, in-6
cluding professional licensing or practice laws or reg-7
ulations; and 8
(2) Act shall be construed to require that any 9
State impose additional educational standards or 10
guidelines for health care professionals. 11
SEC. 616. PAYMENTS FOR PRESCRIPTION DRUGS AND AP-12
PROVED DEVICES AND EQUIPMENT. 13
The prices to be paid for covered pharmaceuticals, 14
medical supplies, medical technologies, and medically nec-15
essary equipment covered under this Act shall be nego-16
tiated annually by the Secretary. 17
(1) IN GENERAL.—Notwithstanding any other 18
provision of law, the Secretary shall, for fiscal years 19
beginning on or after the date of the enactment of 20
this subsection, negotiate with pharmaceutical man-21
ufacturers the prices (including discounts, rebates, 22
and other price concessions) that may be charged to 23
the Medicare for All Program during a negotiated 24
price period (as specified by the Secretary) for cov-25
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ered drugs for eligible individuals under the Medi-1
care for All Program. In negotiating such prices 2
under this section, the Secretary shall take into ac-3
count the following factors: 4
(A) The comparative clinical effectiveness 5
and cost effectiveness, when available from an 6
impartial source, of such drug. 7
(B) The budgetary impact of providing 8
coverage of such drug. 9
(C) The number of similarly effective 10
drugs or alternative treatment regimens for 11
each approved use of such drug. 12
(D) The total revenues from global sales 13
obtained by the manufacturer for such drug 14
and the associated investment in research and 15
development of such drug by the manufacturer. 16
(2) FINALIZATION OF NEGOTIATED PRICE.— 17
The negotiated price of each covered drug for a ne-18
gotiated price period shall be finalized not later than 19
30 days before the first fiscal year in such nego-20
tiated price period. 21
(3) COMPETITIVE LICENSING AUTHORITY.— 22
(A) IN GENERAL.—Notwithstanding any 23
exclusivity under clause (iii) or (iv) of section 24
505(j)(5)(F) of the Federal Food, Drug, and 25
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Cosmetic Act, clause (iii) or (iv) of section 1
505(c)(3)(E) of such Act, section 351(k)(7)(A) 2
of the Public Health Service Act, or section 3
527(a) of the Federal Food, Drug, and Cos-4
metic Act, or by an extension of such exclusivity 5
under section 505A of such Act or section 505E 6
of such Act, and any other provision of law that 7
provides for market exclusivity (or extension of 8
market exclusivity) with respect to a drug, in 9
the case that the Secretary is unable to success 10
fully negotiate an appropriate price for a cov-11
ered drug for a negotiated price period, the Sec-12
retary shall authorize the use of any patent, 13
clinical trial data, or other exclusivity granted 14
by the Federal Government with respect to such 15
drug as the Secretary determines appropriate 16
for purposes of manufacturing such drug for 17
sale under Medicare for All Program. Any enti-18
ty making use of a competitive license to use 19
patent, clinical trial data, or other exclusivity 20
under this section shall provide to the manufac-21
turer holding such exclusivity reasonable com-22
pensation, as determined by the Secretary 23
based on the following factors: 24
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(i) The risk-adjusted value of any 1
Federal Government subsidies and invest-2
ments in research and development used to 3
support the development of such drug. 4
(ii) The risk-adjusted value of any in-5
vestment made by such manufacturer in 6
the research and development of such 7
drug. 8
(iii) The impact of the price, including 9
license compensation payments, on meeting 10
the medical need of all patients at a rea-11
sonable cost. 12
(iv) The relationship between the 13
price of such drug, including compensation 14
payments, and the health benefits of such 15
drug. 16
(v) Other relevant factors determined 17
appropriate by the Secretary to provide 18
reasonable compensation. 19
(B) REASONABLE COMPENSATION.—The 20
manufacturer described in subparagraph (A) 21
may seek recovery against the United States in 22
the United States Court of Federal Claims. 23
(C) INTERIM PERIOD.—Until 1 year after 24
a drug described in subparagraph (A) is ap-25
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proved under section 505(j) of the Federal 1
Food, Drug, and Cosmetic Act or section 2
351(k) of the Public Health Service Act and is 3
provided under license issued by the Secretary 4
under such subparagraph, the Medicare for All 5
Program shall not pay more for such drug than 6
the average of the prices available, during the 7
most recent 12-month period for which data is 8
available prior to the beginning of such nego-9
tiated price period, from the manufacturer to 10
any wholesaler, retailer, provider, health main-11
tenance organization, nonprofit entity, or gov-12
ernmental entity in the ten OECD (Organiza-13
tion for Economic Cooperation and Develop-14
ment) countries that have the largest gross do-15
mestic product with a per capita income that is 16
not less than half the per capita income of the 17
United States. 18
(D) AUTHORIZATION FOR SECRETARY TO 19
PROCURE DRUGS DIRECTLY.—The Secretary 20
may procure a drug manufactured pursuant to 21
a competitive license under subparagraph (A) 22
for purposes of this Act. 23
(4) FDA REVIEW OF LICENSED DRUG APPLICA-24
TIONS.—The Secretary shall prioritize review of ap-25
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plications under section 505(j) of the Federal Food, 1
Drug, and Cosmetic Act for drugs licensed under 2
paragraph (3)(A). 3
(5) PROHIBITION OF ANTICOMPETITIVE BEHAV-4
IOR.—No drug manufacturer may engage in anti-5
competitive behavior with another manufacturer that 6
may interfere with the issuance and implementation 7
of a competitive license or run contrary to public 8
policy. 9
(6) REQUIRED REPORTING.—The Secretary 10
may require pharmaceutical manufacturers to dis-11
close to the Secretary such information that the Sec-12
retary determines necessary for purposes of carrying 13
out this subsection. 14
TITLE VII—UNIVERSAL 15
MEDICARE TRUST FUND 16
SEC. 701. UNIVERSAL MEDICARE TRUST FUND. 17
(a) IN GENERAL.—There is hereby created on the 18
books of the Treasury of the United States a trust fund 19
to be known as the Universal Medicare Trust Fund (in 20
this section referred to as the ‘‘Trust Fund’’). The Trust 21
Fund shall consist of such gifts and bequests as may be 22
made and such amounts as may be deposited in, or appro-23
priated to, such Trust Fund as provided in this Act. 24
(b) APPROPRIATIONS INTO TRUST FUND.— 25
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(1) TAXES.—There are appropriated to the 1
Trust Fund for each fiscal year beginning with the 2
fiscal year which includes the date on which benefits 3
first become available as described in section 106, 4
out of any moneys in the Treasury not otherwise ap-5
propriated, amounts equivalent to 100 percent of the 6
net increase in revenues to the Treasury which is at-7
tributable to the amendments made by sections 801 8
and 902. The amounts appropriated by the pre-9
ceding sentence shall be transferred from time to 10
time (but not less frequently than monthly) from the 11
general fund in the Treasury to the Trust Fund, 12
such amounts to be determined on the basis of esti-13
mates by the Secretary of the Treasury of the taxes 14
paid to or deposited into the Treasury, and proper 15
adjustments shall be made in amounts subsequently 16
transferred to the extent prior estimates were in ex-17
cess of or were less than the amounts that should 18
have been so transferred. 19
(2) CURRENT PROGRAM RECEIPTS.— 20
(A) INITIAL YEAR.—Notwithstanding any 21
other provision of law, there is appropriated to 22
the Trust Fund for the fiscal year containing 23
January 1 of the first year following the date 24
of the enactment of this Act, an amount equal 25
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to the aggregate amount appropriated for the 1
preceding fiscal year for the following (in-2
creased by the consumer price index for all 3
urban consumers for the fiscal year involved): 4
(i) The Medicare program under title 5
XVIII of the Social Security Act (other 6
than amounts attributable to any pre-7
miums under such title). 8
(ii) The Medicaid program under 9
State plans approved under title XIX of 10
such Act. 11
(iii) The Federal Employees Health 12
Benefits program, under chapter 89 of title 13
5, United States Code. 14
(iv) The TRICARE program, under 15
chapter 55 of title 10, United States Code. 16
(v) The maternal and child health 17
program (under title V of the Social Secu-18
rity Act), vocational rehabilitation pro-19
grams, programs for drug abuse and men-20
tal health services under the Public Health 21
Service Act, programs providing general 22
hospital or medical assistance, and any 23
other Federal program identified by the 24
Secretary, in consultation with the Sec-25
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retary of the Treasury, to the extent the 1
programs provide for payment for health 2
services the payment of which may be 3
made under this Act. 4
(B) SUBSEQUENT YEARS.—Notwithstand-5
ing any other provision of law, there is appro-6
priated to the trust fund for the fiscal year con-7
taining January 1 of the second year following 8
the date of the enactment of this Act, and for 9
each fiscal year thereafter, an amount equal to 10
the amount appropriated to the Trust Fund for 11
the previous year, adjusted for reductions in 12
costs resulting from the implementation of this 13
Act, changes in the consumer price index for all 14
urban consumers for the fiscal year involved, 15
and other factors determined appropriate by the 16
Secretary. 17
(3) RESTRICTIONS SHALL NOT APPLY.—Any 18
other provision of law in effect on the date of enact-19
ment of this Act restricting the use of Federal funds 20
for any reproductive health service shall not apply to 21
monies in the Trust Fund. 22
(c) INCORPORATION OF PROVISIONS.—The provisions 23
of subsections (b) through (i) of section 1817 of the Social 24
Security Act (42 U.S.C. 1395i) shall apply to the Trust 25
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Fund under this section in the same manner as such pro-1
visions applied to the Federal Hospital Insurance Trust 2
Fund under such section 1817, except that, for purposes 3
of applying such subsections to this section, the ‘‘Board 4
of Trustees of the Trust Fund’’ shall mean the ‘‘Sec-5
retary’’. 6
(d) TRANSFER OF FUNDS.—Any amounts remaining 7
in the Federal Hospital Insurance Trust Fund under sec-8
tion 1817 of the Social Security Act (42 U.S.C. 1395i) 9
or the Federal Supplementary Medical Insurance Trust 10
Fund under section 1841 of such Act (42 U.S.C. 1395t) 11
after the payment of claims for items and services fur-12
nished under title XVIII of such Act have been completed, 13
shall be transferred into the Universal Medicare Trust 14
Fund under this section. 15
TITLE VIII—CONFORMING 16
AMENDMENTS TO THE EM-17
PLOYEE RETIREMENT IN-18
COME SECURITY ACT OF 1974 19
SEC. 801. PROHIBITION OF EMPLOYEE BENEFITS DUPLICA-20
TIVE OF BENEFITS UNDER THE MEDICARE 21
FOR ALL PROGRAM; COORDINATION IN CASE 22
OF WORKERS’ COMPENSATION. 23
(a) IN GENERAL.—Part 5 of subtitle B of title I of 24
the Employee Retirement Income Security Act of 1974 25
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(29 U.S.C. 1131 et seq.) is amended by adding at the end 1
the following new section: 2
‘‘SEC. 522. PROHIBITION OF EMPLOYEE BENEFITS DUPLI-3
CATIVE OF UNIVERSAL MEDICARE PROGRAM 4
BENEFITS; COORDINATION IN CASE OF 5
WORKERS’ COMPENSATION. 6
‘‘(a) IN GENERAL.—Subject to subsection (b), no em-7
ployee benefit plan may provide benefits that duplicate 8
payment for any items or services for which payment may 9
be made under the Medicare for All Act of 2019. 10
‘‘(b) REIMBURSEMENT.—Each workers compensation 11
carrier that is liable for payment for workers compensa-12
tion services furnished in a State shall reimburse the 13
Medicare for All Program for the cost of such services. 14
‘‘(c) DEFINITIONS.—In this subsection— 15
‘‘(1) the term ‘workers compensation carrier’ 16
means an insurance company that underwrite work-17
ers compensation medical benefits with respect to 18
one or more employers and includes an employer or 19
fund that is financially at risk for the provision of 20
workers compensation medical benefits; 21
‘‘(2) the term ‘workers compensation medical 22
benefits’ means, with respect to an enrollee who is 23
an employee subject to the workers compensation 24
laws of a State, the comprehensive medical benefits 25
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for work-related injuries and illnesses provided for 1
under such laws with respect to such an employee; 2
and 3
‘‘(3) the term ‘workers compensation services’ 4
means items and services included in workers com-5
pensation medical benefits and includes items and 6
services (including rehabilitation services and long- 7
term care services) commonly used for treatment of 8
work-related injuries and illnesses.’’. 9
(b) CONFORMING AMENDMENT.—Section 4(b) of the 10
Employee Retirement Income Security Act of 1974 (29 11
U.S.C. 1003(b)) is amended by adding at the end the fol-12
lowing: ‘‘Paragraph (3) shall apply subject to section 13
522(b) (relating to reimbursement of the Medicare for All 14
Program by workers compensation carriers).’’. 15
(c) CLERICAL AMENDMENT.—The table of contents 16
in section 1 of such Act is amended by inserting after the 17
item relating to section 521 the following new item: 18
‘‘Sec. 522. Prohibition of employee benefits duplicative of Universal Medicare
Program benefits; coordination in case of workers’ compensa-
tion.’’.
SEC. 802. APPLICATION OF CONTINUATION COVERAGE RE-19
QUIREMENTS UNDER ERISA AND CERTAIN 20
OTHER REQUIREMENTS RELATING TO 21
GROUP HEALTH PLANS. 22
(a) IN GENERAL.—Part 6 of subtitle B of title I of 23
the Employee Retirement Income Security Act of 1974 24
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(29 U.S.C. 1161 et seq.) shall apply only with respect to 1
any employee health benefit plan that does not duplicate 2
payments for any items or services for which payment may 3
be made under the this Act. 4
(b) CONFORMING AMENDMENT.—Section 601 of part 5
6 of subtitle B of title I of the Employee Retirement In-6
come Security Act of 1974 (19 U.S.C. 1161) is amended 7
by adding the following subsection at the end: 8
‘‘(c) Subsection (a) shall apply to any group health 9
plan that does not duplicate payments for any items or 10
services for which payment may be made under the Uni-11
versal Health Insurance Act of 2017.’’. 12
SEC. 803. EFFECTIVE DATE OF TITLE. 13
The provisions of and amendments made by this title 14
shall take effect on the date described in section 106(a). 15
TITLE IX—ADDITIONAL 16
CONFORMING AMENDMENTS 17
SEC. 901. RELATIONSHIP TO EXISTING FEDERAL HEALTH 18
PROGRAMS. 19
(a) MEDICARE, MEDICAID, AND STATE CHILDREN’S 20
HEALTH INSURANCE PROGRAM (SCHIP).— 21
(1) IN GENERAL.—Notwithstanding any other 22
provision of law and with respect to an individual el-23
igible to enroll under this Act, subject to paragraphs 24
(2) and (3)— 25
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(A) no benefits shall be available under 1
title XVIII of the Social Security Act for any 2
item or service furnished beginning on the date 3
that is 2 years after the date of the enactment 4
of this Act; 5
(B) no individual is entitled to medical as-6
sistance under a State plan approved under 7
title XIX of such Act for any item or service 8
furnished on or after such date; 9
(C) no individual is entitled to medical as-10
sistance under a State child health plan under 11
title XXI of such Act for any item or service 12
furnished on or after such date; and 13
(D) no payment shall be made to a State 14
under section 1903(a) or 2105(a) of such Act 15
with respect to medical assistance or child 16
health assistance for any item or service fur-17
nished on or after such date. 18
(2) TRANSITION.—In the case of inpatient hos-19
pital services and extended care services during a 20
continuous period of stay which began before the ef-21
fective date of benefits under section 106, and which 22
had not ended as of such date, for which benefits 23
are provided under title XVIII of the Social Security 24
Act, under a State plan under title XIX of such Act, 25
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or under a State child health plan under title XXI 1
of such Act, the Secretary shall provide for continu-2
ation of benefits under such title or plan until the 3
end of the period of stay. 4
(3) SCHOOL PROGRAMS.—All school related 5
health programs, centers, initiatives, services, or 6
other activities or work provided under title XIX or 7
title XXI of the Social Security Act as of January 8
1, 2019, shall be continued and covered by the Medi-9
care for All Program. 10
(b) FEDERAL EMPLOYEES HEALTH BENEFITS PRO-11
GRAM.—No benefits shall be made available under chapter 12
89 of title 5, United States Code, with respect to items 13
and services furnished to any individual eligible to enroll 14
under this Act. 15
(c) TRICARE.—No benefits shall be made available 16
under sections 1079 and 1086 of title 10, United States 17
Code, for items or services furnished to any individual eli-18
gible to enroll under this Act. 19
(d) TREATMENT OF BENEFITS FOR VETERANS AND 20
NATIVE AMERICANS.— 21
(1) IN GENERAL.—Nothing in this Act shall af-22
fect the eligibility of veterans for the medical bene-23
fits and services provided under title 38, United 24
States Code, or of Indians for the medical benefits 25
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and services provided by or through the Indian 1
Health Service. 2
(2) REEVALUATION.—No reevaluation of the 3
Indian Health Service shall be undertaken without 4
consultation with tribal leaders and stakeholders. 5
SEC. 902. SUNSET OF PROVISIONS RELATED TO THE STATE 6
EXCHANGES. 7
Effective on the date that is 2 years after the date 8
of the enactment of this Act, the Federal and State Ex-9
changes established pursuant to title I of the Patient Pro-10
tection and Affordable Care Act (Public Law 111–148) 11
shall terminate, and any other provision of law that relies 12
upon participation in or enrollment through such an Ex-13
change, including such provisions of the Internal Revenue 14
Code of 1986, shall cease to have force or effect. 15
SEC. 903. SUNSET OF PROVISIONS RELATED TO PAY FOR 16
PERFORMANCE PROGRAMS. 17
(a) Effective on the date described in section 106(a), 18
the Federal programs related to pay for performance pro-19
grams and value-based purchasing shall terminate, and 20
any other provision of law that relies upon participation 21
in or enrollment in such program shall cease to have force 22
or effect. Programs that shall terminate include— 23
(1) the Merit-based Incentive Payment System 24
established pursuant to subsection (q) of section 25
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1848 of the Social Security Act (42 U.S.C. 1395w– 1
4(q)); 2
(2) the incentives for meaningful use of cer-3
tified EHR technology established pursuant to sub-4
section (a)(7) of section 1848 of the Social Security 5
Act (42 U.S.C. 1395w–4(a)(7)); 6
(3) the incentives for adoption and meaningful 7
use of certified EHR technology established pursu-8
ant to subsection (o) of section 1848 of the Social 9
Security Act (42 U.S.C. 1395w–4(o)); 10
(4) alternative payment models established 11
under section 1833(z) of the Social Security Act (42 12
U.S.C. 1395(z)); and 13
(5) the following programs as established pur-14
suant to the following sections of the Patient Protec-15
tion and Affordable Care Act: 16
(A) Section 2701 (adult health quality 17
measures). 18
(B) Section 2702 (payment adjustments 19
for health care acquired conditions). 20
(C) Section 2706 (Pediatric Accountable 21
Care Organization Demonstration Projects for 22
the purposes of receiving incentive payments). 23
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(D) Section 3002(b) (42 U.S.C. 1395w– 1
4(a)(8)) (incentive payments for quality report-2
ing). 3
(E) Section 3001(a) (42 U.S.C. 4
1395ww(o)) (Hospital Value-Based Purchas-5
ing). 6
(F) Section 3006 (value-based purchasing 7
program for skilled nursing facilities and home 8
health agencies). 9
(G) Section 3007 (42 U.S.C. 1395w–4(p)) 10
(value based payment modifier under physician 11
fee schedule). 12
(H) Section 3008 (42 U.S.C. 1395ww(p)) 13
(payment adjustments for health care-acquired 14
condition). 15
(I) Section 3022 (42 U.S.C. 1395jjj) 16
(Medicare shared savings programs). 17
(J) Section 3023 (42 U.S.C. 1395cc–4) 18
(National Pilot Program on Payment Bun-19
dling). 20
(K) Section 3024 (42 U.S.C. 1395cc–5) 21
(Independence at home demonstration pro-22
gram). 23
(L) Section 3025 (42 U.S.C. 1395ww(q)) 24
(hospital readmissions reduction program). 25
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(M) Section 10301 (plans for value-based 1
purchasing program for ambulatory surgical 2
centers). 3
TITLE X—TRANSITION 4
Subtitle A—Medicare for All Tran-5
sition Over 2 Years and Transi-6
tional Buy-In Option 7
SEC. 1001. MEDICARE FOR ALL TRANSITION OVER TWO 8
YEARS. 9
Title XVIII of the Social Security Act (42 U.S.C. 10
1395c et seq.) is amended by adding at the end the fol-11
lowing new section: 12
‘‘SEC. 1899C. MEDICARE FOR ALL TRANSITION OVER 2 13
YEARS. 14
‘‘(a) TRANSITION.— 15
‘‘(1) IN GENERAL.—Every individual who meets 16
the requirements described in paragraph (3) shall be 17
eligible to enroll in the Medicare for All Program 18
under this section during the transition period start-19
ing one year after the date of enactment of the 20
Medicare for All Act of 2019. 21
‘‘(2) BENEFITS.—An individual enrolled under 22
this section is entitled to the benefits established 23
under title II of the Medicare for All Act of 2019. 24
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‘‘(3) REQUIREMENTS FOR ELIGIBILITY.—The 1
requirements described in this paragraph are the fol-2
lowing: 3
‘‘(A) The individual meets the eligibility re-4
quirements established by the Secretary under 5
title I of the Medicare for All Act of 2019. 6
‘‘(B) The individual has attained the appli-7
cable year of age, or is currently enrolled in 8
Medicare at the time of the transition to Medi-9
care for All. 10
‘‘(4) APPLICABLE YEAR OF AGE DEFINED.— 11
For purposes of this section, the term ‘applicable 12
year of age’ means one year after the date of enact-13
ment of the Medicare for All Act of 2019, the age 14
of 55 or older, the age 18 or younger. 15
‘‘(b) ENROLLMENT; COVERAGE.—The Secretary shall 16
establish enrollment periods and coverage under this sec-17
tion consistent with the principles for establishment of en-18
rollment periods and coverage for individuals under other 19
provisions of this title. The Secretary shall establish such 20
periods so that coverage under this section shall first begin 21
on January 1 of the year on which an individual first be-22
comes eligible to enroll under this section. 23
‘‘(c) SATISFACTION OF INDIVIDUAL MANDATE.—For 24
purposes of applying section 5000A of the Internal Rev-25
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enue Code of 1986, the coverage provided under this sec-1
tion constitutes minimum essential coverage under sub-2
section (f)(1)(A)(i) of such section 5000A. 3
‘‘(d) CONSULTATION.—In promulgating regulations 4
to implement this section, the Secretary shall consult with 5
interested parties, including groups representing bene-6
ficiaries, health care providers, employers, and insurance 7
companies.’’. 8
SEC. 1002. ESTABLISHMENT OF THE MEDICARE TRANSI-9
TION BUY-IN. 10
(a) IN GENERAL.—To carry out the purpose of this 11
section, for the year beginning one year after the date of 12
enactment of this Act and ending with the effective date 13
described in section 106(a), the Secretary, acting through 14
the Administrator of the Centers for Medicare & Medicaid 15
(referred to in this section as the ‘‘Administrator’’), shall 16
establish, and provide for the offering through the Ex-17
changes, an option to buy in to the Medicare for All Pro-18
gram (in this Act referred to as the ‘‘Medicare Transition 19
buy-in’’). 20
(b) ADMINISTERING THE MEDICARE TRANSITION 21
BUY-IN.— 22
(1) ADMINISTRATOR.—The Administrator shall 23
administer the Medicare Transition buy-in in accord-24
ance with this section. 25
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(2) APPLICATION OF ACA REQUIREMENTS.— 1
Consistent with this section, the Medicare Transition 2
buy-in shall comply with requirements under title I 3
of the Patient Protection and Affordable Care Act 4
(and the amendments made by that title) and title 5
XXVII of the Public Health Service Act (42 U.S.C. 6
300gg et seq.) that are applicable to qualified health 7
plans offered through the Exchanges, subject to the 8
limitation under subsection (e)(2). 9
(3) OFFERING THROUGH EXCHANGES.—The 10
Medicare Transition buy-in shall be made available 11
only through the Exchanges, and shall be available 12
to individuals wishing to enroll and to qualified em-13
ployers (as defined in section 1312(f)(2) of the Pa-14
tient Protection and Affordable Care Act (42 U.S.C. 15
18032)) who wish to make such plan available to 16
their employees. 17
(4) ELIGIBILITY TO PURCHASE.—Any United 18
States resident may enroll in the Medicare Transi-19
tion buy-in. 20
(c) BENEFITS; ACTUARIAL VALUE.—In carrying out 21
this section, the Administrator shall ensure that the Medi-22
care Transition buy-in provides— 23
(1) coverage for the benefits required to be cov-24
ered under title II of this Act; and 25
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(2) coverage of benefits that are actuarially 1
equivalent to 90 percent of the full actuarial value 2
of the benefits provided under the plan. 3
(d) PROVIDERS AND REIMBURSEMENT RATES.— 4
(1) IN GENERAL.—With respect to the reim-5
bursement provided to health care providers for cov-6
ered benefits, as described in section 201, provided 7
under the Medicare Transition buy-in, the Adminis-8
trator shall reimburse such providers at rates deter-9
mined for equivalent items and services under the 10
Medicare for All fee-for-service schedule established 11
in section 612(b) of this Act. 12
(2) PRESCRIPTION DRUGS.—Any payment rate 13
under this subsection for a prescription drug shall be 14
at the prices negotiated under section 616 of this 15
Act. 16
(3) PARTICIPATING PROVIDERS.— 17
(A) IN GENERAL.—A health care provider 18
that is a participating provider of services or 19
supplier under the Medicare program under 20
title XVIII of the Social Security Act (42 21
U.S.C. 1395 et seq.) or under a State Medicaid 22
plan under title XIX of such Act (42 U.S.C. 23
1396 et seq.) on the date of enactment of this 24
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Act shall be a participating provider in the 1
Medicare Transition buy-in. 2
(B) ADDITIONAL PROVIDERS.—The Ad-3
ministrator shall establish a process to allow 4
health care providers not described in subpara-5
graph (A) to become participating providers in 6
the Medicare Transition buy-in. Such process 7
shall be similar to the process applied to new 8
providers under the Medicare program. 9
(e) PREMIUMS.— 10
(1) DETERMINATION.—The Administrator shall 11
determine the premium amount for enrolling in the 12
Medicare Transition buy-in, which— 13
(A) may vary according to family or indi-14
vidual coverage, age, and tobacco status (con-15
sistent with clauses (i), (iii), and (iv) of section 16
2701(a)(1)(A) of the Public Health Service Act 17
(42 U.S.C. 300gg(a)(1)(A))); and 18
(B) shall take into account the cost-shar-19
ing reductions and premium tax credits which 20
will be available with respect to the plan under 21
section 1402 of the Patient Protection and Af-22
fordable Care Act (42 U.S.C. 18071) and sec-23
tion 36B of the Internal Revenue Code of 1986, 24
as amended by subsection (g). 25
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(2) LIMITATION.—Variation in premium rates 1
of the Medicare Transition buy-in by rating area, as 2
described in clause (ii) of section 2701(a)(1)(A)(iii) 3
of the Public Health Service Act (42 U.S.C. 4
300gg(a)(1)(A)) is not permitted. 5
(f) TERMINATION.—This section shall cease to have 6
force or effect on the effective date described in section 7
106(a). 8
(g) TAX CREDITS AND COST-SHARING SUBSIDIES.— 9
(1) PREMIUM ASSISTANCE TAX CREDITS.— 10
(A) CREDITS ALLOWED TO MEDICARE 11
TRANSITION BUY-IN ENROLLEES IN NON-EX-12
PANSION STATES.—Paragraph (1) of section 13
36B(c) of the Internal Revenue Code of 1986 14
is amended by redesignating subparagraphs (C) 15
and (D) as subparagraphs (D) and (E), respec-16
tively, and by inserting after subparagraph (B) 17
the following new subparagraph: 18
‘‘(C) SPECIAL RULES FOR MEDICARE 19
TRANSITION BUY-IN ENROLLEES.— 20
‘‘(i) IN GENERAL.—In the case of a 21
taxpayer who is covered, or whose spouse 22
or dependent (as defined in section 152) is 23
covered, by the Medicare Transition buy-in 24
established under section 1002(a) of the 25
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Medicare for All Act of 2019 for all 1
months in the taxable year, subparagraph 2
(A) shall be applied without regard to ‘but 3
does not exceed 400 percent’. 4
‘‘(ii) ENROLLEES IN MEDICAID NON-5
EXPANSION STATES.—In the case of a tax-6
payer residing in a State which (as of the 7
date of the enactment of the Medicare for 8
All Act of 2019) does not provide for eligi-9
bility under clause (i)(VIII) or (ii)(XX) of 10
section 1902(a)(10)(A) of the Social Secu-11
rity Act for medical assistance under title 12
XIX of such Act (or a waiver of the State 13
plan approved under section 1115) who is 14
covered, or whose spouse or dependent (as 15
defined in section 152) is covered, by the 16
Medicare Transition buy-in established 17
under section 1002(a) of the Medicare for 18
All Act of 2019 for all months in the tax-19
able year, subparagraphs (A) and (B) shall 20
be applied by substituting ‘0 percent’ for 21
‘100 percent’ each place it appears.’’. 22
(B) PREMIUM ASSISTANCE AMOUNTS FOR 23
TAXPAYERS ENROLLED IN MEDICARE TRANSI-24
TION BUY-IN.— 25
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(i) IN GENERAL.—Subparagraph (A) 1
of section 36B(b)(3) of such Code is 2
amended—(I) by redesignating clause (ii) 3
as clause (iii), (II) by striking ‘‘clause (ii)’’ 4
in clause (i) and inserting ‘‘clauses (ii) and 5
(iii)’’, and (III) by inserting after clause (i) 6
the following new clause: 7
‘‘(ii) SPECIAL RULES FOR TAXPAYERS 8
ENROLLED IN MEDICARE TRANSITION BUY- 9
IN.—In the case of a taxpayer who is cov-10
ered, or whose spouse or dependent (as de-11
fined in section 152) is covered, by the 12
Medicare Transition buy-in established 13
under section 1002(a) of the Medicare for 14
All Act of 2019 for all months in the tax-15
able year, the applicable percentage for 16
any taxable year shall be determined in the 17
same manner as under clause (i), except 18
that the following table shall apply in lieu 19
of the table contained in such clause: 20
‘‘In the case of household income
(expressed as a percent of
poverty line) within the
following income tier:
The initial
premium
percentage is—
The final
premium
percentage is—
Up to 100 percent .............................. 2.00 2.00
100 percent up to 138 percent ........... 2.04 2.04
138 percent up to 150 percent ........... 3.06 4.08
150 percent and above ........................ 4.08 5.00.’’.
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(ii) CONFORMING AMENDMENT.—Sub-1
clause (I) of clause (iii) of section 2
36B(b)(3) of such Code, as redesignated 3
by subparagraph (A)(i), is amended by in-4
serting ‘‘, and determined after the appli-5
cation of clause (ii)’’ after ‘‘after applica-6
tion of this clause’’. 7
(2) COST-SHARING SUBSIDIES.—Subsection (b) 8
of section 1402 of the Patient Protection and Af-9
fordable Care Act (42 U.S.C. 18071(b)) is amend-10
ed— 11
(A) by inserting ‘‘, or in the Medicare 12
Transition buy-in established under section 13
1002(a) of the Medicare for All Act of 2019,’’ 14
after ‘‘coverage’’ in paragraph (1); 15
(B) by redesignating paragraphs (1) (as so 16
amended) and (2) as subparagraphs (A) and 17
(B), respectively, and by moving such subpara-18
graphs 2 ems to the right; 19
(C) by striking ‘‘INSURED.—In this sec-20
tion’’ and inserting ‘‘INSURED.— 21
‘‘(1) IN GENERAL.—In this section’’; 22
(D) by striking the flush language; and 23
(E) by adding at the end the following new 24
paragraph: 25
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‘‘(2) SPECIAL RULES.— 1
‘‘(A) INDIVIDUALS LAWFULLY PRESENT.— 2
In the case of an individual described in section 3
36B(c)(1)(B) of the Internal Revenue Code of 4
1986, the individual shall be treated as having 5
household income equal to 100 percent of the 6
poverty line for a family of the size involved for 7
purposes of applying this section. 8
‘‘(B) MEDICARE TRANSITION BUY-IN EN-9
ROLLEES IN MEDICAID NON-EXPANSION 10
STATES.—In the case of an individual residing 11
in a State which (as of the date of the enact-12
ment of the Medicare for All Act of 2019) does 13
not provide for eligibility under clause (i)(VIII) 14
or (ii)(XX) of section 1902(a)(10)(A) of the So-15
cial Security Act for medical assistance under 16
title XIX of such Act (or a waiver of the State 17
plan approved under section 1115) who enrolls 18
in such Medicare Transition buy-in, the pre-19
ceding sentence, paragraph (1)(B), and para-20
graphs (1)(A)(i) and (2)(A) of subsection (c) 21
shall each be applied by substituting ‘0 percent’ 22
for ‘100 percent’ each place it appears.’’. 23
(h) CONFORMING AMENDMENTS.— 24
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(1) TREATMENT AS A QUALIFIED HEALTH 1
PLAN.—Section 1301(a)(2) of the Patient Protection 2
and Affordable Care Act (42 U.S.C. 18021(a)(2)) is 3
amended— 4
(A) in the paragraph heading, by inserting 5
‘‘THE MEDICARE TRANSITION BUY-IN,’’ before 6
‘‘AND’’; and 7
(B) by inserting ‘‘The Medicare Transition 8
buy-in,’’ before ‘‘and a multi-State plan’’. 9
(2) LEVEL PLAYING FIELD.—Section 1324(a) 10
of the Patient Protection and Affordable Care Act 11
(42 U.S.C. 18044(a)) is amended by inserting ‘‘the 12
Medicare Transition buy-in,’’ before ‘‘or a multi- 13
State qualified health plan’’. 14
Subtitle B—Transitional Medicare 15
Reforms 16
SEC. 1011. ELIMINATING THE 24-MONTH WAITING PERIOD 17
FOR MEDICARE COVERAGE FOR INDIVID-18
UALS WITH DISABILITIES. 19
(a) IN GENERAL.—Section 226(b) of the Social Secu-20
rity Act (42 U.S.C. 426(b)) is amended— 21
(1) in paragraph (2)(A), by striking ‘‘, and has 22
for 24 calendar months been entitled to,’’; 23
(2) in paragraph (2)(B), by striking ‘‘, and has 24
been for not less than 24 months,’’; 25
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(3) in paragraph (2)(C)(ii), by striking ‘‘, in-1
cluding the requirement that he has been entitled to 2
the specified benefits for 24 months,’’; 3
(4) in the first sentence, by striking ‘‘for each 4
month beginning with the later of (I) July 1973 or 5
(II) the twenty-fifth month of his entitlement or sta-6
tus as a qualified railroad retirement beneficiary de-7
scribed in paragraph (2), and’’ and inserting ‘‘for 8
each month for which the individual meets the re-9
quirements of paragraph (2), beginning with the 10
month following the month in which the individual 11
meets the requirements of such paragraph, and’’; 12
and 13
(5) in the second sentence, by striking ‘‘the 14
‘twenty-fifth month of his entitlement’’’ and all that 15
follows through ‘‘paragraph (2)(C) and’’. 16
(b) CONFORMING AMENDMENTS.— 17
(1) SECTION 226.—Section 226 of the Social 18
Security Act (42 U.S.C. 426) is amended by— 19
(A) striking subsections (e)(1)(B), (f), and 20
(h); and 21
(B) redesignating subsections (g) and (i) 22
as subsections (f) and (g), respectively. 23
(2) MEDICARE DESCRIPTION.—Section 1811(2) 24
of the Social Security Act (42 U.S.C. 1395c(2)) is 25
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amended by striking ‘‘have been entitled for not less 1
than 24 months’’ and inserting ‘‘are entitled’’. 2
(3) MEDICARE COVERAGE.—Section 1837(g)(1) 3
of the Social Security Act (42 U.S.C. 1395p(g)(1)) 4
is amended by striking ‘‘25th month of’’ and insert-5
ing ‘‘month following the first month of’’. 6
(4) RAILROAD RETIREMENT SYSTEM.—Section 7
7(d)(2)(ii) of the Railroad Retirement Act of 1974 8
(45 U.S.C. 231f(d)(2)(ii)) is amended— 9
(A) by striking ‘‘has been entitled to an 10
annuity’’ and inserting ‘‘is entitled to an annu-11
ity’’; 12
(B) by striking ‘‘, for not less than 24 13
months’’; and 14
(C) by striking ‘‘could have been entitled 15
for 24 calendar months, and’’. 16
(c) EFFECTIVE DATE.—The amendments made by 17
this section shall apply to insurance benefits under title 18
XVIII of the Social Security Act with respect to items and 19
services furnished in months beginning after December 1 20
following the date of enactment of this Act, and before 21
the date that is 2 years after the date of the enactment 22
of such Act. 23
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SEC. 1012. ENSURING CONTINUITY OF CARE. 1
(a) IN GENERAL.—The Secretary shall ensure that 2
all persons enrolled or who seeks to enroll in a health plan 3
during the transition period of the Medicare for All Pro-4
gram are protected from disruptions in their care during 5
the transition period, including continuity of care with 6
such persons current health care provider teams. 7
(b) CONTINUITY OF COVERAGE AND CARE IN GEN-8
ERAL.—During the transition period of the Medicare for 9
All Act, group health plans and health insurance issuers 10
offering group or individual health insurance coverage 11
shall not end coverage for an enrollee during the transition 12
period described in the Act until all ages are eligible to 13
enroll in the Medicare for All Program except as expressly 14
agreed upon under the terms of the plan. 15
(c) CONTINUITY OF COVERAGE AND CARE FOR PER-16
SONS WITH COMPLEX MEDICAL NEEDS.— 17
(1) The Secretary shall ensure that persons 18
with disabilities, complex medical needs, or chronic 19
conditions are protected from disruptions in their 20
care during the transition period, including con-21
tinuity of care with such persons current health care 22
provider teams. 23
(2) During the transition period of the Medi-24
care for All Act group health plans and health insur-25
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ance issuers offering group or individual health in-1
surance coverage shall not— 2
(A) end coverage for an enrollee who has 3
a disability, complex medical need, or chronic 4
condition during the transition period described 5
in the Act until all ages are eligible to enroll in 6
the Medicare for All Program; or 7
(B) impose any exclusion with respect to 8
such plan or coverage on the basis of a person’s 9
disability, complex medical need, or chronic con-10
dition during the transition period described 11
under this Act until all ages are eligible to en-12
roll in the Medicare for All Program. 13
(d) PUBLIC CONSULTATION DURING TRANSITION.— 14
The Secretary shall consult with communities and advo-15
cacy organizations of persons living with disabilities as 16
well as other patient advocacy organizations to ensure that 17
the transition buy-in takes into account the continuity of 18
care for persons with disabilities, complex medical needs, 19
or chronic conditions. 20
TITLE XI—MISCELLANEOUS 21
SEC. 1101. DEFINITIONS. 22
In this Act— 23
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(1) the term ‘‘group practice’’ has the meaning 1
given such term in section 1877(h)(4) of the Social 2
Security Act (42 U.S.C. 1395nn(h)(4)); 3
(2) the term ‘‘individual provider’’ means a sup-4
plier (as defined for purposes of paragraph (4)); 5
(3) the term ‘‘institutional provider’’ means— 6
(A) providers of services described in sec-7
tion 1861(u) of such Act (42 U.S.C. 1395x(u)); 8
(B) hospitals as defined in section 1861(e) 9
of the Social Security Act (42 U.S.C. 10
1395x(e)), and any outpatient settings or clinics 11
operating within a hospital license or any set-12
ting or clinic that provides outpatient hospital 13
services; 14
(C) psychiatric hospitals (as defined in sec-15
tion 1861(e) of the Social Security Act (42 16
U.S.C. 1395x(f))); 17
(D) rehabilitation hospitals (as defined by 18
the Secretary of Health and Human Services 19
under section 1886(d)(1)(B)(ii) of the Social 20
Security Act (42 U.S.C. 1395ww(d)(1)(B)(ii))); 21
(E) long-term care hospitals as defined in 22
section 1861 of the Social Security Act (42 23
U.S.C. 1395x(ccc)); and 24
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(F) independent dialysis facilities and inde-1
pendent end-stage renal disease facilities as de-2
scribed in 42 CFR413.174(b); 3
(4) the term ‘‘medically necessary or appro-4
priate’’ means the health care items and services or 5
supplies are needed or appropriate to prevent, diag-6
nose, or treat an illness, injury, condition, disease, or 7
its symptoms for an individual and are determined 8
to be necessary or appropriate for such individual by 9
the physician or other health care professional treat-10
ing such individual, after such professional performs 11
an assessment of such individual’s condition, in a 12
manner that meets— 13
(A) the scope of practice, licensing, and 14
other law of the State in which such items and 15
services are to be furnished; and 16
(B) appropriate standards established by 17
the Secretary for purposes of carrying out this 18
Act; 19
(5) the term ‘‘provider’’ means an institutional 20
provider or a supplier (as defined in section 1861(d) 21
of such Act (42 U.S.C. 1395x(d)) if the reference to 22
‘‘this title’’ were a reference to the Medicare for All 23
Program); 24
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(6) the term ‘‘Secretary’’ means the Secretary 1
of Health and Human Services; 2
(7) the term ‘‘State’’ means a State, the Dis-3
trict of Columbia, or a territory of the United 4
States; and 5
(8) the term ‘‘United States’’ shall include the 6
States, the District of Columbia, and the territories 7
of the United States. 8
SEC. 1102. RULES OF CONSTRUCTION. 9
(a) IN GENERAL.—A State or local government may 10
set additional standards or apply other State or local laws 11
with respect to eligibility, benefits, and minimum provider 12
standards, only if such State or local standards— 13
(1) provide equal or greater eligibility than is 14
available under this Act; 15
(2) provide equal or greater in-person access to 16
benefits under this Act; 17
(3) do not reduce access to benefits under this 18
Act; 19
(4) allow for the effective exercise of the profes-20
sional judgment of physicians or other health care 21
professionals; and 22
(5) are otherwise consistent with this Act. 23
(b) RELATION TO STATE LICENSING LAW.—Nothing 24
in this Act shall be construed to preempt State licensing, 25
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•HR 1384 IH
practice, or educational laws or regulations with respect 1
to health care professionals and health care providers, for 2
such professionals and providers who practice in that 3
State. 4
(c) APPLICATION TO STATE AND FEDERAL LAW ON 5
WORKPLACE RIGHTS.—Nothing in this Act shall be con-6
strued to diminish or alter the rights, privileges, remedies, 7
or obligations of any employee or employer under any Fed-8
eral or State law or regulation or under any collective bar-9
gaining agreement. 10
(d) RESTRICTIONS ON PROVIDERS.—With respect to 11
any individuals or entities certified to provide items and 12
services covered under section 201(a)(7), a State may not 13
prohibit an individual or entity from participating in the 14
program under this Act for reasons other than the ability 15
of the individual or entity to provide such services. 16
Æ
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II
116TH CONGRESS
1ST SESSION S. 1129
To establish a Medicare-for-all national health insurance program.
IN THE SENATE OF THE UNITED STATES
APRIL 10, 2019
Mr. SANDERS (for himself, Ms. BALDWIN, Mr. BLUMENTHAL, Mr. BOOKER,
Mrs. GILLIBRAND, Ms. HARRIS, Mr. LEAHY, Mr. MARKEY, Mr.
MERKLEY, Mr. SCHATZ, Mr. UDALL, Ms. WARREN, Mr. WHITEHOUSE,
Ms. HIRONO, and Mr. HEINRICH) introduced the following bill; which was
read twice and referred to the Committee on Finance
A BILL
To establish a Medicare-for-all national health insurance
program.
Be it enacted by the Senate and House of Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3
(a) SHORT TITLE.—This Act may be cited as the 4
‘‘Medicare for All Act of 2019’’. 5
(b) TABLE OF CONTENTS.—The table of contents for 6
this Act is as follows: 7
Sec. 1. Short title; table of contents.
TITLE I—ESTABLISHMENT OF THE UNIVERSAL MEDICARE
PROGRAM; UNIVERSAL ENTITLEMENT; ENROLLMENT
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Sec. 101. Establishment of the Universal Medicare Program.
Sec. 102. Universal entitlement.
Sec. 103. Freedom of choice.
Sec. 104. Non-discrimination.
Sec. 105. Enrollment.
Sec. 106. Effective date of benefits.
Sec. 107. Prohibition against duplicating coverage.
TITLE II—COMPREHENSIVE BENEFITS, INCLUDING PREVENTIVE
BENEFITS AND BENEFITS FOR LONG-TERM CARE
Sec. 201. Comprehensive benefits.
Sec. 202. No cost-sharing.
Sec. 203. Exclusions and limitations.
Sec. 204. Coverage of institutional long-term care services under Medicaid.
Sec. 205. Prohibiting recovery of correctly paid Medicaid benefits.
Sec. 206. State standards.
TITLE III—PROVIDER PARTICIPATION
Sec. 301. Provider participation and standards.
Sec. 302. Qualifications for providers.
Sec. 303. Use of private contracts.
TITLE IV—ADMINISTRATION
Subtitle A—General Administration Provisions
Sec. 401. Administration.
Sec. 402. Consultation.
Sec. 403. Regional administration.
Sec. 404. Beneficiary ombudsman.
Sec. 405. Complementary conduct of related health programs.
Subtitle B—Control Over Fraud and Abuse
Sec. 411. Application of Federal sanctions to all fraud and abuse under Uni-
versal Medicare Program.
TITLE V—QUALITY ASSESSMENT
Sec. 501. Quality standards.
Sec. 502. Addressing health care disparities.
TITLE VI—HEALTH BUDGET; PAYMENTS; COST CONTAINMENT
MEASURES
Subtitle A—Budgeting
Sec. 601. National health budget.
Subtitle B—Payments to Providers
Sec. 611. Payments to institutional and individual providers.
Sec. 612. Ensuring accurate valuation of services under the Medicare physician
fee schedule.
Sec. 613. Office of primary health care.
Sec. 614. Payments for prescription drugs and approved devices and equip-
ment.
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TITLE VII—UNIVERSAL MEDICARE TRUST FUND
Sec. 701. Universal Medicare Trust Fund.
TITLE VIII—CONFORMING AMENDMENTS TO THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974
Sec. 801. Prohibition of employee benefits duplicative of benefits under the
Universal Medicare Program; coordination in case of workers’
compensation.
Sec. 802. Repeal of continuation coverage requirements under ERISA and cer-
tain other requirements relating to group health plans.
Sec. 803. Effective date of title.
TITLE IX—ADDITIONAL CONFORMING AMENDMENTS
Sec. 901. Relationship to existing Federal health programs.
Sec. 902. Sunset of provisions related to the State Exchanges.
TITLE X—TRANSITION
Subtitle A—Transitional Medicare Buy-In Option and Transitional Public
Option
Sec. 1001. Lowering the Medicare age.
Sec. 1002. Establishment of the Medicare transition plan.
Subtitle B—Transitional Medicare Reforms
Sec. 1011. Medicare protection against high out-of-pocket expenditures for fee-
for-service benefits and elimination of parts A and B deduct-
ibles.
Sec. 1012. Reduction in Medicare part D annual out-of-pocket threshold and
elimination of cost-sharing above that threshold.
Sec. 1013. Coverage of dental and vision services and hearing aids and exami-
nations under Medicare part B.
Sec. 1014. Eliminating the 24-month waiting period for Medicare coverage for
individuals with disabilities.
Sec. 1015. Guaranteed issue of Medigap policies.
Subtitle C—Private Health Insurance Availability During Transitional Period
Sec. 1021. Continuity of care.
TITLE XI—MISCELLANEOUS
Sec. 1101. Updating resource limits for Supplemental Security Income eligi-
bility (SSI).
Sec. 1102. Definitions.
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TITLE I—ESTABLISHMENT OF 1
THE UNIVERSAL MEDICARE 2
PROGRAM; UNIVERSAL ENTI-3
TLEMENT; ENROLLMENT 4
SEC. 101. ESTABLISHMENT OF THE UNIVERSAL MEDICARE 5
PROGRAM. 6
There is hereby established a national health insur-7
ance program to provide comprehensive protection against 8
the costs of health care and health-related services, in ac-9
cordance with the standards specified in, or established 10
under, this Act. 11
SEC. 102. UNIVERSAL ENTITLEMENT. 12
(a) IN GENERAL.—Every individual who is a resident 13
of the United States is entitled to benefits for health care 14
services under this Act. The Secretary shall promulgate 15
a rule that provides criteria for determining residency for 16
eligibility purposes under this Act. 17
(b) TREATMENT OF OTHER INDIVIDUALS.—The Sec-18
retary— 19
(1) may make eligible for benefits for health 20
care services under this Act other individuals not de-21
scribed in subsection (a) and regulate their eligibility 22
to ensure that every person in the United States has 23
access to health care; and 24
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(2) shall promulgate a rule, consistent with 1
Federal immigration laws, to prevent an individual 2
from traveling to the United States for the sole pur-3
pose of obtaining health care services provided under 4
this Act. 5
SEC. 103. FREEDOM OF CHOICE. 6
Any individual entitled to benefits under this Act may 7
obtain health services from any institution, agency, or in-8
dividual qualified to participate under this Act. 9
SEC. 104. NON-DISCRIMINATION. 10
(a) IN GENERAL.—No person shall, on the basis of 11
race, color, national origin, age, disability, or sex, includ-12
ing sex stereotyping, gender identity, sexual orientation, 13
and pregnancy and related medical conditions (including 14
termination of pregnancy), be excluded from participation 15
in, be denied the benefits of, or be subjected to discrimina-16
tion by any participating provider as defined in section 17
301, or any entity conducting, administering, or funding 18
a health program or activity, including contracts of insur-19
ance, pursuant to this Act. 20
(b) CLAIMS OF DISCRIMINATION.— 21
(1) IN GENERAL.—The Secretary shall establish 22
a procedure for adjudication of administrative com-23
plaints alleging a violation of subsection (a). 24
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(2) JURISDICTION.—Any person aggrieved by a 1
violation of subsection (a) by a covered entity may 2
file suit in any district court of the United States 3
having jurisdiction of the parties. 4
(3) DAMAGES.—If the court finds a violation of 5
subsection (a), the court may grant compensatory 6
and punitive damages, declaratory relief, injunctive 7
relief, attorneys’ fees and costs, or other relief as ap-8
propriate. 9
SEC. 105. ENROLLMENT. 10
(a) IN GENERAL.—The Secretary shall provide a 11
mechanism for the enrollment of individuals eligible for 12
benefits under this Act. The mechanism shall— 13
(1) include a process for the automatic enroll-14
ment of individuals at the time of birth in the 15
United States or upon the establishment of resi-16
dency in the United States; 17
(2) provide for the enrollment, as of the date 18
described in section 106, of all individuals who are 19
eligible to be enrolled as of such date; and 20
(3) include a process for the enrollment of indi-21
viduals made eligible for health care services under 22
section 102(b). 23
(b) ISSUANCE OF UNIVERSAL MEDICARE CARDS.— 24
In conjunction with an individual’s enrollment for benefits 25
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•S 1129 IS
under this Act, the Secretary shall provide for the issuance 1
of a Universal Medicare card that shall be used for pur-2
poses of identification and processing of claims for bene-3
fits under this program. The card shall not include an in-4
dividual’s Social Security number. 5
SEC. 106. EFFECTIVE DATE OF BENEFITS. 6
(a) IN GENERAL.—Except as provided in subsection 7
(b), benefits shall first be available under this Act for 8
items and services furnished on January 1 of the fourth 9
calendar year that begins after the date of enactment of 10
this Act. 11
(b) COVERAGE FOR CHILDREN.— 12
(1) IN GENERAL.—For any eligible individual 13
who has not yet attained the age of 19, benefits 14
shall first be available under this Act for items and 15
services furnished on January 1 of the first calendar 16
year that begins after the date of enactment of this 17
Act. 18
(2) OPTION TO CONTINUE IN OTHER COVERAGE 19
DURING TRANSITION PERIOD.—Any person who is 20
eligible to receive benefits as described in paragraph 21
(1) may opt to maintain any coverage described in 22
section 901, private health insurance coverage, or 23
coverage offered pursuant to subtitle A of title X 24
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(including the amendments made by such subtitle) 1
until the effective date described in subsection (a). 2
SEC. 107. PROHIBITION AGAINST DUPLICATING COVERAGE. 3
(a) IN GENERAL.—Beginning on the effective date 4
described in section 106(a), it shall be unlawful for— 5
(1) a private health insurer to sell health insur-6
ance coverage that duplicates the benefits provided 7
under this Act; or 8
(2) an employer to provide benefits for an em-9
ployee, former employee, or the dependents of an 10
employee or former employee that duplicate the ben-11
efits provided under this Act. 12
(b) CONSTRUCTION.—Nothing in this Act shall be 13
construed as prohibiting the sale of health insurance cov-14
erage for any additional benefits not covered by this Act, 15
including additional benefits that an employer may provide 16
to employees or their dependents, or to former employees 17
or their dependents. 18
TITLE II—COMPREHENSIVE BEN-19
EFITS, INCLUDING PREVEN-20
TIVE BENEFITS AND BENE-21
FITS FOR LONG-TERM CARE 22
SEC. 201. COMPREHENSIVE BENEFITS. 23
(a) IN GENERAL.—Subject to the other provisions of 24
this title and titles IV through IX, individuals enrolled for 25
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•S 1129 IS
benefits under this Act are entitled to have payment made 1
by the Secretary to an eligible provider for the following 2
items and services if medically necessary or appropriate 3
for the maintenance of health or for the diagnosis, treat-4
ment, or rehabilitation of a health condition: 5
(1) Hospital services, including inpatient and 6
outpatient hospital care, including 24-hour-a-day 7
emergency services and inpatient prescription drugs. 8
(2) Ambulatory patient services. 9
(3) Primary and preventive services, including 10
chronic disease management. 11
(4) Prescription drugs, medical devices, biologi-12
cal products, including outpatient prescription drugs, 13
medical devices, and biological products. 14
(5) Mental health and substance abuse treat-15
ment services, including inpatient care. 16
(6) Laboratory and diagnostic services. 17
(7) Comprehensive reproductive, maternity, and 18
newborn care. 19
(8) Pediatrics, including early and periodic 20
screening, diagnostic, and treatment services (as de-21
fined in section 1905(r) of the Social Security Act 22
(42 U.S.C. 1396d(r))). 23
(9) Oral health, audiology, and vision services. 24
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(10) Short-term rehabilitative and habilitative 1
services and devices. 2
(11) Emergency services and transportation. 3
(12) Necessary transportation to receive health 4
care services for individuals with disabilities and low- 5
income individuals. 6
(13) Home and community-based long-term 7
services and supports (to be provided in accordance 8
with the requirements for home and community- 9
based settings under sections 441.530 and 441.710 10
of title 42, Code of Federal Regulations), includ-11
ing— 12
(A) services described in paragraphs (7), 13
(8), (13), (19), and (24) of section 1905(a) of 14
the Social Security Act (42 U.S.C. 1396d(a)); 15
(B) home and community-based services 16
described in subsection (c)(4)(B) of section 17
1915 of the Social Security Act (including ha-18
bilitation services defined in subsection (c)(5) of 19
such section); 20
(C) self-directed home and community- 21
based services described in subsection (i) of sec-22
tion 1915 of the Social Security Act; 23
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(D) self-directed personal assistance serv-1
ices (as defined in subsection (j)(4)(A) of sec-2
tion 1915 of the Social Security Act); and 3
(E) home and community-based attendant 4
services and supports described in subsection 5
(k) of section 1915 of the Social Security Act. 6
(b) REVISION AND ADJUSTMENT.—The Secretary 7
shall, on a regular basis, evaluate whether the benefits 8
package should be improved or adjusted to promote the 9
health of beneficiaries, account for changes in medical 10
practice or new information from medical research, or re-11
spond to other relevant developments in health science, 12
and shall make recommendations to Congress regarding 13
any such improvements or adjustments. 14
(c) COMPLEMENTARY AND INTEGRATIVE MEDI-15
CINE.— 16
(1) IN GENERAL.—In carrying out subsection 17
(b), the Secretary shall consult with the persons de-18
scribed in paragraph (1) with respect to— 19
(A) identifying specific complementary and 20
integrative medicine practices that, on the basis 21
of research findings or promising clinical inter-22
ventions, are appropriate to include in the bene-23
fits package; and 24
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•S 1129 IS
(B) identifying barriers to the effective 1
provision and integration of such practices into 2
the delivery of health care, and identifying 3
mechanisms for overcoming such barriers. 4
(2) CONSULTATION.—In accordance with para-5
graph (1), the Secretary shall consult with— 6
(A) the Director of the National Center for 7
Complementary and Integrative Health; 8
(B) the Commissioner of Food and Drugs; 9
(C) institutions of higher education, pri-10
vate research institutes, and individual re-11
searchers with extensive experience in com-12
plementary and integrative medicine and the in-13
tegration of such practices into the delivery of 14
health care; 15
(D) nationally recognized providers of com-16
plementary and integrative medicine; and 17
(E) such other officials, entities, and indi-18
viduals with expertise on complementary and 19
integrative medicine as the Secretary deter-20
mines appropriate. 21
(d) STATES MAY PROVIDE ADDITIONAL BENE-22
FITS.—Individual States may provide additional benefits 23
for the residents of such States at the expense of the 24
State. 25
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SEC. 202. NO COST-SHARING. 1
(a) IN GENERAL.—The Secretary shall ensure that 2
no cost-sharing, including deductibles, coinsurance, copay-3
ments, or similar charges, be imposed on an individual for 4
any benefits provided under this Act, except as described 5
in subsection (b). 6
(b) EXCEPTIONS.—The Secretary may set a cost- 7
sharing schedule for prescription drugs and biological 8
products— 9
(1) provided that— 10
(A) such schedule is evidence-based and 11
encourages the use of generic drugs; 12
(B) such cost-sharing does not apply to 13
preventive drugs; 14
(C) such cost-sharing does not exceed $200 15
annually per individual, adjusted annually for 16
inflation; and 17
(D) such cost-sharing is not imposed on in-18
dividuals with a household income equal to or 19
below 200 percent of the poverty line for a fam-20
ily of the size involved; and 21
(2) under which the Secretary may exempt 22
brand-name drugs from consideration in determining 23
whether an individual has reached any out-of-pocket 24
limit if a generic version of such drug is available. 25
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(c) NO BALANCE BILLING.—Notwithstanding con-1
tracts in accordance with section 303, no provider may 2
impose a charge to an enrolled individual for covered serv-3
ices for which benefits are provided under this Act. 4
SEC. 203. EXCLUSIONS AND LIMITATIONS. 5
(a) IN GENERAL.—Benefits for services are not avail-6
able under this Act unless the services meet the standards 7
specified in section 201(a), as defined by the Secretary. 8
(b) TREATMENT OF EXPERIMENTAL SERVICES AND 9
DRUGS.— 10
(1) IN GENERAL.—In applying subsection (a), 11
the Secretary shall make national coverage deter-12
minations with respect to services that are experi-13
mental in nature. Such determinations shall be con-14
sistent with the national coverage determination 15
process as defined in section 1869(f)(1)(B) of the 16
Social Security Act (42 U.S.C. 1395ff(f)(1)(B)). 17
(2) APPEALS PROCESS.—The Secretary shall 18
establish a process by which individuals can appeal 19
coverage decisions. The process shall, as much as is 20
feasible, follow process for appeals under the Medi-21
care program described in section 1869 of the Social 22
Security Act (42 U.S.C. 1395ff). 23
(c) APPLICATION OF PRACTICE GUIDELINES.—In the 24
case of services for which the Department of Health and 25
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•S 1129 IS
Human Services has recognized a national practice guide-1
line, the services are considered to meet the standards 2
specified in section 201(a) if they have been provided in 3
accordance with such guideline. For purposes of this sub-4
section, a service shall be considered to have been provided 5
in accordance with a practice guideline if the health care 6
provider providing the service exercised appropriate pro-7
fessional discretion to deviate from the guideline in a man-8
ner authorized or anticipated by the guideline. 9
SEC. 204. COVERAGE OF INSTITUTIONAL LONG-TERM CARE 10
SERVICES UNDER MEDICAID. 11
Title XIX of the Social Security Act (42 U.S.C. 1396 12
et seq.) is amended by inserting the following section after 13
section 1946: 14
‘‘STATE PLAN FOR PROVIDING INSTITUTIONAL LONG- 15
TERM CARE SERVICES 16
‘‘SEC. 1947. (a) IN GENERAL.—For quarters begin-17
ning on or after date on which benefits are first available 18
under section 106(a) of the Medicare for All Act of 2019, 19
notwithstanding any other provision of this title— 20
‘‘(1) a State plan for medical assistance shall 21
provide for making medical assistance available for 22
services that are institutional long-term care services 23
in a manner consistent with this section; and 24
‘‘(2) no payment to a State shall be made 25
under this title with respect to expenditures incurred 26
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by the State in providing medical assistance on or 1
after such date for services that are not— 2
‘‘(A) institutional long-term care services; 3
or 4
‘‘(B) other services for which benefits are 5
not available under the Medicare for All Act of 6
2019 and which are furnished under a State 7
plan for medical assistance which provided for 8
medical assistance for such services on Sep-9
tember 1, 2018. 10
‘‘(b) INSTITUTIONAL LONG-TERM CARE SERVICES 11
DEFINED.—In this section, the term ‘institutional long- 12
term care services’ means the following: 13
‘‘(1) Nursing facility services for individuals 21 14
years of age or over described in subparagraph (A) 15
of section 1905(a)(4). 16
‘‘(2) Inpatient services for individuals 65 years 17
of age or over provided in an institution for mental 18
disease described in section 1905(a)(14). 19
‘‘(3) Intermediate care facility services de-20
scribed in section 1905(a)(15). 21
‘‘(4) Inpatient psychiatric hospital services for 22
individuals under age 21 described in section 23
1905(a)(16). 24
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‘‘(5) Nursing facility services described in sec-1
tion 1905(a)(29). 2
‘‘(c) MAINTENANCE OF EFFORT.— 3
‘‘(1) ELIGIBILITY STANDARDS.— 4
‘‘(A) IN GENERAL.—Beginning on the date 5
described in subsection (a), no payment may be 6
made under section 1903 with respect to med-7
ical assistance provided under a State plan for 8
medical assistance if the State adopts income, 9
resource, or other standards and methodologies 10
for purposes of determining an individual’s eli-11
gibility for medical assistance under the State 12
plan that are more restrictive than those ap-13
plied as of January 1, 2019. 14
‘‘(B) INDEXING OF AMOUNTS OF INCOME 15
AND RESOURCE STANDARDS.—In determining 16
whether a State has adopted income or resource 17
standards that are more restrictive than the 18
standards which applied as of January 1, 2019, 19
the Secretary shall deem the amount of any 20
such standard that was applied as of such date 21
to be increased by the percentage increase in 22
the medical care component of the consumer 23
price index for all urban consumers (U.S. city 24
average) from September of 2018 to September 25
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of the fiscal year for which the Secretary is 1
making such determination. 2
‘‘(2) EXPENDITURES.— 3
‘‘(A) IN GENERAL.—For each fiscal year 4
or portion of a fiscal year that occurs during 5
the period that begins on the first day of the 6
first fiscal quarter that begins on or after the 7
date on which benefits are first available under 8
section 106(a) of the Medicare for All Act of 9
2019, as a condition of receiving payments 10
under section 1903(a), a State shall make ex-11
penditures for medical assistance for services 12
that are institutional long-term care services in 13
an amount that is not less than the expenditure 14
floor determined for the State and fiscal year 15
(or portion of a fiscal year) under subparagraph 16
(B). 17
‘‘(B) EXPENDITURE FLOOR.— 18
‘‘(i) IN GENERAL.—For each fiscal 19
year or portion of a fiscal year described in 20
subparagraph (A), the Secretary shall de-21
termine for each State an expenditure floor 22
that shall be equal to— 23
‘‘(I) the amount of the State’s 24
expenditures for fiscal year 2018 on 25
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medical assistance for institutional 1
long-term care services; increased by 2
‘‘(II) the growth factor deter-3
mined under subclause (ii). 4
‘‘(ii) GROWTH FACTOR.—For each fis-5
cal year or portion of a fiscal year de-6
scribed in subparagraph (A), the Secretary 7
shall, not later than September 1 of the 8
fiscal year preceding such fiscal year or 9
portion of a fiscal year, determine a 10
growth factor for each State that takes 11
into account— 12
‘‘(I) the percentage increase in 13
health care costs in the State; 14
‘‘(II) the total amount expended 15
by the State for the previous fiscal 16
year on medical assistance for institu-17
tional long-term care services; 18
‘‘(III) the increase, if any, in the 19
total population of the State from 20
July of 2018 to July of the fiscal year 21
preceding the fiscal year involved; 22
‘‘(IV) the increase, if any, in the 23
population of individuals aged 65 and 24
older of the State from July of 2018 25
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•S 1129 IS
to July of the fiscal year preceding 1
the fiscal year involved; and 2
‘‘(V) the decrease, if any, in the 3
population of the State that requires 4
medical assistance for institutional 5
long-term care services that is attrib-6
utable to the availability of coverage 7
for the services described in section 8
201(a)(13) of the Medicare for All 9
Act of 2019. 10
‘‘(iii) PRORATION RULE.—Any 11
amount determined under this subpara-12
graph for a portion of a fiscal year shall be 13
prorated based on the length of such por-14
tion of a fiscal year relative to a complete 15
fiscal year. 16
‘‘(d) NONAPPLICATION OF CERTAIN REQUIRE-17
MENTS.—Beginning on the date described in subsection 18
(a), any provision of this title requiring a State plan for 19
medical assistance to make available medical assistance 20
for services that are not institutional long-term care serv-21
ices or services described in section 901(a)(3)(A)(ii) of the 22
Medicare for All Act of 2019 shall have no effect.’’. 23
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SEC. 205. PROHIBITING RECOVERY OF CORRECTLY PAID 1
MEDICAID BENEFITS. 2
Section 1917 of the Social Security Act (42 U.S.C. 3
1396p) is amended— 4
(1) by amending subsection (a) to read as fol-5
lows: 6
‘‘(a) No lien may be imposed against the property 7
of any individual prior to his death on account of medical 8
assistance paid or to be paid on his behalf under the State 9
plan, except pursuant to the judgment of a court on ac-10
count of benefits incorrectly paid on behalf of such indi-11
vidual.’’; and 12
(2) by amending subsection (b) to read as fol-13
lows: 14
‘‘(b) No adjustment or recovery of any medical assist-15
ance correctly paid on behalf of an individual under the 16
State plan may be made.’’. 17
SEC. 206. STATE STANDARDS. 18
(a) IN GENERAL.—Nothing in this Act shall prohibit 19
individual States from setting additional standards, with 20
respect to eligibility, benefits, and minimum provider 21
standards, consistent with the purposes of this Act, pro-22
vided that such standards do not restrict eligibility or re-23
duce access to benefits or services. 24
(b) RESTRICTIONS ON PROVIDERS.—With respect to 25
any individuals or entities certified to provide services cov-26
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ered under section 201(a)(7), a State may not prohibit 1
an individual or entity from participating in the program 2
under this Act, for reasons other than the ability of the 3
individual or entity to provide such services. 4
TITLE III—PROVIDER 5
PARTICIPATION 6
SEC. 301. PROVIDER PARTICIPATION AND STANDARDS. 7
(a) IN GENERAL.—An individual or other entity fur-8
nishing any covered service under this Act is not a quali-9
fied provider unless the individual or entity— 10
(1) is a qualified provider of the services under 11
section 302; 12
(2) has filed with the Secretary a participation 13
agreement described in subsection (b); and 14
(3) meets, as applicable, such other qualifica-15
tions and conditions with respect to a provider of 16
services under title XVIII of the Social Security Act 17
as described in section 1866 of the Social Security 18
Act (42 U.S.C. 1395cc). 19
(b) REQUIREMENTS IN PARTICIPATION AGREE-20
MENT.— 21
(1) IN GENERAL.—A participation agreement 22
described in this subsection between the Secretary 23
and a provider shall provide at least for the fol-24
lowing: 25
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(A) Services to eligible persons will be fur-1
nished by the provider without discrimination, 2
in accordance with section 104(a). Nothing in 3
this subparagraph shall be construed as requir-4
ing the provision of a type or class of services 5
that are outside the scope of the provider’s nor-6
mal practice. 7
(B) No charge will be made to any enrolled 8
individual for any covered services other than 9
for payment authorized by this Act. 10
(C) The provider agrees to furnish such in-11
formation as may be reasonably required by the 12
Secretary, in accordance with uniform reporting 13
standards established under section 401(b)(1), 14
for— 15
(i) quality review by designated enti-16
ties; 17
(ii) making payments under this Act, 18
including the examination of records as 19
may be necessary for the verification of in-20
formation on which such payments are 21
based; 22
(iii) statistical or other studies re-23
quired for the implementation of this Act; 24
and 25
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(iv) such other purposes as the Sec-1
retary may specify. 2
(D) In the case of a provider that is not 3
an individual, the provider agrees not to employ 4
or use for the provision of health services any 5
individual or other provider that has had a par-6
ticipation agreement under this subsection ter-7
minated for cause. 8
(E) In the case of a provider paid under 9
a fee-for-service basis, the provider agrees to 10
submit bills and any required supporting docu-11
mentation relating to the provision of covered 12
services within 30 days after the date of pro-13
viding such services. 14
(2) TERMINATION OF PARTICIPATION AGREE-15
MENT.— 16
(A) IN GENERAL.—Participation agree-17
ments may be terminated, with appropriate no-18
tice— 19
(i) by the Secretary for failure to meet 20
the requirements of this Act; or 21
(ii) by a provider. 22
(B) TERMINATION PROCESS.—Providers 23
shall be provided notice and a reasonable oppor-24
tunity to correct deficiencies before the Sec-25
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retary terminates an agreement unless a more 1
immediate termination is required for public 2
safety or similar reasons. 3
(C) PROVIDER PROTECTIONS.— 4
(i) PROHIBITION.—The Secretary may 5
not terminate a participation agreement or 6
in any other way discriminate against, or 7
cause to be discriminated against, any cov-8
ered provider or authorized representative 9
of the provider, on account of such pro-10
vider or representative— 11
(I) providing, causing to be pro-12
vided, or being about to provide or 13
cause to be provided to the provider, 14
the Federal Government, or the attor-15
ney general of a State information re-16
lating to any violation of, or any act 17
or omission the provider or represent-18
ative reasonably believes to be a viola-19
tion of, any provision of this title (or 20
an amendment made by this title); 21
(II) testifying or being about to 22
testify in a proceeding concerning 23
such violation; 24
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(III) assisting or participating, or 1
being about to assist or participate, in 2
such a proceeding; or 3
(IV) objecting to, or refusing to 4
participate in, any activity, policy, 5
practice, or assigned task that the 6
provider or representative reasonably 7
believes to be in violation of any provi-8
sion of this Act (including any amend-9
ment made by this Act), or any order, 10
rule, regulation, standard, or ban 11
under this Act (including any amend-12
ment made by this Act). 13
(ii) COMPLAINT PROCEDURE.—A pro-14
vider or representative who believes that he 15
or she has been discriminated against in 16
violation of this section may seek relief in 17
accordance with the procedures, notifica-18
tions, burdens of proof, remedies, and stat-19
utes of limitation set forth in section 20
2087(b) of title 15, United States Code. 21
SEC. 302. QUALIFICATIONS FOR PROVIDERS. 22
(a) IN GENERAL.—A health care provider is consid-23
ered to be qualified to provide covered services if the pro-24
vider is licensed or certified and meets— 25
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•S 1129 IS
(1) all the requirements of State law to provide 1
such services; and 2
(2) applicable requirements of Federal law to 3
provide such services. 4
(b) MINIMUM PROVIDER STANDARDS.— 5
(1) IN GENERAL.—The Secretary shall estab-6
lish, evaluate, and update national minimum stand-7
ards to ensure the quality of services provided under 8
this Act and to monitor efforts by States to ensure 9
the quality of such services. A State may also estab-10
lish additional minimum standards which providers 11
shall meet with respect to services provided in such 12
State. 13
(2) NATIONAL MINIMUM STANDARDS.—The na-14
tional minimum standards under paragraph (1) shall 15
be established for institutional providers of services 16
and individual health care practitioners. Except as 17
the Secretary may specify in order to carry out this 18
Act, a hospital, skilled nursing facility, or other in-19
stitutional provider of services shall meet standards 20
for such a provider under the Medicare program 21
under title XVIII of the Social Security Act (42 22
U.S.C. 1395 et seq.). Such standards also may in-23
clude, where appropriate, elements relating to— 24
(A) adequacy and quality of facilities; 25
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•S 1129 IS
(B) training and competence of personnel 1
(including continuing education requirements); 2
(C) comprehensiveness of service; 3
(D) continuity of service; 4
(E) patient satisfaction, including waiting 5
time and access to services; and 6
(F) performance standards, including orga-7
nization, facilities, structure of services, effi-8
ciency of operation, and outcome in palliation, 9
improvement of health, stabilization, cure, or 10
rehabilitation. 11
(3) TRANSITION IN APPLICATION.—If the Sec-12
retary provides for additional requirements for pro-13
viders under this subsection, any such additional re-14
quirement shall be implemented in a manner that 15
provides for a reasonable period during which a pre-16
viously qualified provider is permitted to meet such 17
an additional requirement. 18
(4) ABILITY TO PROVIDE SERVICES.—With re-19
spect to any entity or provider certified to provide 20
services described in section 201(a)(7), the Secretary 21
may not prohibit such entity or provider from par-22
ticipating for reasons other than its ability to pro-23
vide such services. 24
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(c) FEDERAL PROVIDERS.—Any provider qualified to 1
provide health care services through the Department of 2
Veterans Affairs or Indian Health Service is a qualifying 3
provider under this section with respect to any individual 4
who qualifies for such services under applicable Federal 5
law. 6
SEC. 303. USE OF PRIVATE CONTRACTS. 7
(a) IN GENERAL.—Subject to the provisions of this 8
subsection, nothing in this Act shall prohibit an institu-9
tional or individual provider from entering into a private 10
contract with an enrolled individual for any item or serv-11
ice— 12
(1) for which no claim for payment is to be sub-13
mitted under this Act; and 14
(2) for which the provider receives— 15
(A) no reimbursement under this Act di-16
rectly or on a capitated basis; and 17
(B) receives no amount for such item or 18
service from an organization which receives re-19
imbursement for such items or service under 20
this Act directly or on a capitated basis. 21
(b) BENEFICIARY PROTECTIONS.— 22
(1) IN GENERAL.—Subsection (a) shall not 23
apply to any contract unless— 24
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•S 1129 IS
(A) the contract is in writing and is signed 1
by the beneficiary before any item or service is 2
provided pursuant to the contract; 3
(B) the contract contains the items de-4
scribed in paragraph (2); and 5
(C) the contract is not entered into at a 6
time when the beneficiary is facing an emer-7
gency health care situation. 8
(2) ITEMS REQUIRED TO BE INCLUDED IN CON-9
TRACT.—Any contract to provide items and services 10
to which subsection (a) applies shall clearly indicate 11
to the beneficiary that by signing such contract the 12
beneficiary— 13
(A) agrees not to submit a claim (or to re-14
quest that the provider submit a claim) under 15
this Act for such items or services even if such 16
items or services are otherwise covered by this 17
Act; 18
(B) agrees to be responsible, whether 19
through insurance offered under section 107(b) 20
or otherwise, for payment of such items or serv-21
ices and understands that no reimbursement 22
will be provided under this Act for such items 23
or services; 24
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•S 1129 IS
(C) acknowledges that no limits under this 1
Act apply to amounts that may be charged for 2
such items or services; 3
(D) if the provider is a non-participating 4
provider, acknowledges that the beneficiary has 5
the right to have such items or services pro-6
vided by other providers for whom payment 7
would be made under this Act; and 8
(E) acknowledges that the provider is pro-9
viding services outside the scope of the program 10
under this Act. 11
(c) PROVIDER REQUIREMENTS.— 12
(1) IN GENERAL.—Subsection (a) shall not 13
apply to any contract unless an affidavit described 14
in paragraph (2) is in effect during the period any 15
item or service is to be provided pursuant to the 16
contract. 17
(2) AFFIDAVIT.—An affidavit is described in 18
this subparagraph shall— 19
(A) identify the practitioner, and be signed 20
by such practitioner; 21
(B) provide that the practitioner will not 22
submit any claim under this title for any item 23
or service provided to any beneficiary (and will 24
not receive any reimbursement or amount de-25
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•S 1129 IS
scribed in paragraph (1)(B) for any such item 1
or service) during the 1-year period beginning 2
on the date the affidavit is signed; and 3
(C) be filed with the Secretary no later 4
than 10 days after the first contract to which 5
such affidavit applies is entered into. 6
(3) ENFORCEMENT.—If a physician or practi-7
tioner signing an affidavit described in paragraph 8
(2) knowingly and willfully submits a claim under 9
this title for any item or service provided during the 10
1-year period described in paragraph (2)(B) (or re-11
ceives any reimbursement or amount described in 12
subsection (a)(2) for any such item or service) with 13
respect to such affidavit— 14
(A) this subsection shall not apply with re-15
spect to any items and services provided by the 16
physician or practitioner pursuant to any con-17
tract on and after the date of such submission 18
and before the end of such period; and 19
(B) no payment shall be made under this 20
title for any item or service furnished by the 21
physician or practitioner during the period de-22
scribed in clause (i) (and no reimbursement or 23
payment of any amount described in subsection 24
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•S 1129 IS
(a)(2) shall be made for any such item or serv-1
ice). 2
TITLE IV—ADMINISTRATION 3
Subtitle A—General 4
Administration Provisions 5
SEC. 401. ADMINISTRATION. 6
(a) GENERAL DUTIES OF THE SECRETARY.— 7
(1) IN GENERAL.—The Secretary shall develop 8
policies, procedures, guidelines, and requirements to 9
carry out this Act, including related to— 10
(A) eligibility for benefits; 11
(B) enrollment; 12
(C) benefits provided; 13
(D) provider participation standards and 14
qualifications, as described in title III; 15
(E) levels of funding; 16
(F) methods for determining amounts of 17
payments to providers of covered services, con-18
sistent with subtitle B; 19
(G) the determination of medical necessity 20
and appropriateness with respect to coverage of 21
certain services; 22
(H) planning for capital expenditures and 23
service delivery; 24
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•S 1129 IS
(I) planning for health professional edu-1
cation funding; 2
(J) encouraging States to develop regional 3
planning mechanisms; and 4
(K) any other regulations necessary to 5
carry out the purpose of this Act. 6
(2) REGULATIONS.—Regulations authorized by 7
this Act shall be issued by the Secretary in accord-8
ance with section 553 of title 5, United States Code. 9
(b) UNIFORM REPORTING STANDARDS; ANNUAL RE-10
PORT; STUDIES.— 11
(1) UNIFORM REPORTING STANDARDS.— 12
(A) IN GENERAL.—The Secretary shall es-13
tablish uniform State reporting requirements 14
and national standards to ensure an adequate 15
national database containing information per-16
taining to health services practitioners, ap-17
proved providers, the costs of facilities and 18
practitioners providing such services, the qual-19
ity of such services, the outcomes of such serv-20
ices, and the equity of health among population 21
groups. Such standards shall include, to the 22
maximum extent feasible without compromising 23
patient privacy, health outcome measures, and 24
to the maximum extent feasible without exces-25
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•S 1129 IS
sively burdening providers, the measures de-1
scribed in subparagraphs (D) through (F) of 2
subsection (a)(1). 3
(B) REPORTS.—The Secretary shall regu-4
larly analyze information reported to it and 5
shall define rules and procedures to allow re-6
searchers, scholars, health care providers, and 7
others to access and analyze data for purposes 8
consistent with quality and outcomes research, 9
without compromising patient privacy. 10
(2) ANNUAL REPORT.—Beginning January 1 of 11
the second year beginning after the effective date of 12
this Act, the Secretary shall annually report to Con-13
gress on the following: 14
(A) The status of implementation of the 15
Act. 16
(B) Enrollment under this Act. 17
(C) Benefits under this Act. 18
(D) Expenditures and financing under this 19
Act. 20
(E) Cost-containment measures and 21
achievements under this Act. 22
(F) Quality assurance. 23
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•S 1129 IS
(G) Health care utilization patterns, in-1
cluding any changes attributable to the pro-2
gram. 3
(H) Changes in the per-capita costs of 4
health care. 5
(I) Differences in the health status of the 6
populations of the different States, including in-7
come and racial characteristics, and other popu-8
lation health inequities. 9
(J) Progress on quality and outcome meas-10
ures, and long-range plans and goals for 11
achievements in such areas. 12
(K) Necessary changes in the education of 13
health personnel. 14
(L) Plans for improving service to medi-15
cally underserved populations. 16
(M) Transition problems as a result of im-17
plementation of this Act. 18
(N) Opportunities for improvements under 19
this Act. 20
(3) STATISTICAL ANALYSES AND OTHER STUD-21
IES.—The Secretary may, either directly or by con-22
tract— 23
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•S 1129 IS
(A) make statistical and other studies, on 1
a nationwide, regional, State, or local basis, of 2
any aspect of the operation of this Act; 3
(B) develop and test methods of payment 4
or delivery as it may consider necessary or 5
promising for the evaluation, or for the im-6
provement, of the operation of this Act; and 7
(C) develop methodological standards for 8
evidence-based policymaking. 9
(c) AUDITS.— 10
(1) IN GENERAL.—The Comptroller General of 11
the United States shall conduct an audit of the 12
Board every fifth fiscal year following the effective 13
date of this Act to determine the effectiveness of the 14
program in carrying out the duties under subsection 15
(a). 16
(2) REPORTS.—The Comptroller General of the 17
United States shall submit a report to Congress con-18
cerning the results of each audit conducted under 19
this subsection. 20
SEC. 402. CONSULTATION. 21
The Secretary shall consult with Federal agencies, 22
Indian tribes and urban Indian health organizations, and 23
private entities, such as professional societies, national as-24
sociations, nationally recognized associations of experts, 25
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•S 1129 IS
medical schools and academic health centers, consumer 1
and patient groups, and labor and business organizations 2
in the formulation of guidelines, regulations, policy initia-3
tives, and information gathering to ensure the broadest 4
and most informed input in the administration of this Act. 5
Nothing in this Act shall prevent the Secretary from 6
adopting guidelines developed by such a private entity if, 7
in the Secretary’s judgment, such guidelines are generally 8
accepted as reasonable and prudent and consistent with 9
this Act. 10
SEC. 403. REGIONAL ADMINISTRATION. 11
(a) COORDINATION WITH REGIONAL OFFICES.—The 12
Secretary shall establish and maintain regional offices to 13
promote adequate access to, and efficient use of, tertiary 14
care facilities, equipment, and services. Wherever possible, 15
the Secretary shall incorporate regional offices of the Cen-16
ters for Medicare & Medicaid Services for this purpose. 17
(b) APPOINTMENT OF REGIONAL AND STATE DIREC-18
TORS.—In each such regional office there shall be— 19
(1) one regional director appointed by the Sec-20
retary; 21
(2) for each State in the region, a deputy direc-22
tor; and 23
(3) one deputy director to represent the Native 24
American and Alaska Native tribes in the region. 25
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•S 1129 IS
(c) REGIONAL OFFICE DUTIES.—Regional offices 1
shall be responsible for— 2
(1) providing an annual State health care needs 3
assessment report to the Secretary, after a thorough 4
examination of health needs, in consultation with 5
public health officials, clinicians, patients, and pa-6
tient advocates; 7
(2) recommending changes in provider reim-8
bursement or payment for delivery of health services 9
in the States within the region; and 10
(3) establishing a quality assurance mechanism 11
in the State in order to minimize both under-utiliza-12
tion and over-utilization and to ensure that all pro-13
viders meet high-quality standards. 14
SEC. 404. BENEFICIARY OMBUDSMAN. 15
(a) IN GENERAL.—The Secretary shall appoint a 16
Beneficiary Ombudsman who shall have expertise and ex-17
perience in the fields of health care and education of, and 18
assistance to, individuals entitled to benefits under this 19
Act. 20
(b) DUTIES.—The Beneficiary Ombudsman shall— 21
(1) receive complaints, grievances, and requests 22
for information submitted by individuals entitled to 23
benefits under this Act with respect to any aspect of 24
the Universal Medicare Program; 25
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•S 1129 IS
(2) provide assistance with respect to com-1
plaints, grievances, and requests referred to in sub-2
paragraph (a), including— 3
(A) assistance in collecting relevant infor-4
mation for such individuals, to seek an appeal 5
of a decision or determination made by a re-6
gional office or the Secretary; and 7
(B) assistance to such individuals in pre-8
senting information under relating to cost-shar-9
ing; and 10
(3) submit annual reports to Congress and the 11
Secretary that describe the activities of the Office 12
and that include such recommendations for improve-13
ment in the administration of this Act as the Om-14
budsman determines appropriate. The Ombudsman 15
shall not serve as an advocate for any increases in 16
payments or new coverage of services, but may iden-17
tify issues and problems in payment or coverage 18
policies. 19
SEC. 405. COMPLEMENTARY CONDUCT OF RELATED 20
HEALTH PROGRAMS. 21
In performing functions with respect to health per-22
sonnel education and training, health research, environ-23
mental health, disability insurance, vocational rehabilita-24
tion, the regulation of food and drugs, and all other mat-25
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•S 1129 IS
ters pertaining to health, the Secretary shall direct the ac-1
tivities of the Department of Health and Human Services 2
toward contributions to the health of the people com-3
plementary to this Act. 4
Subtitle B—Control Over Fraud 5
and Abuse 6
SEC. 411. APPLICATION OF FEDERAL SANCTIONS TO ALL 7
FRAUD AND ABUSE UNDER UNIVERSAL MEDI-8
CARE PROGRAM. 9
The following sections of the Social Security Act shall 10
apply to this Act in the same manner as they apply to 11
State medical assistance plans under title XIX of such 12
Act: 13
(1) Section 1128 (relating to exclusion of indi-14
viduals and entities). 15
(2) Section 1128A (civil monetary penalties). 16
(3) Section 1128B (criminal penalties). 17
(4) Section 1124 (relating to disclosure of own-18
ership and related information). 19
(5) Section 1126 (relating to disclosure of cer-20
tain owners). 21
TITLE V—QUALITY ASSESSMENT 22
SEC. 501. QUALITY STANDARDS. 23
(a) IN GENERAL.—All standards and quality meas-24
ures under this Act shall be performed by the Center for 25
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Clinical Standards and Quality of the Centers for Medi-1
care & Medicaid Services (referred to in this title as the 2
‘‘Center’’), in coordination with the Agency for Healthcare 3
Research and Quality and other offices of the Department 4
of Health and Human Services. 5
(b) DUTIES OF THE CENTER.—The Center shall per-6
form the following duties: 7
(1) PRACTICE GUIDELINES.—The Center shall 8
review and evaluate each practice guideline devel-9
oped under part B of title IX of the Public Health 10
Service Act. The Center shall determine whether the 11
guideline should be recognized as a national practice 12
guideline. 13
(2) STANDARDS OF QUALITY, PERFORMANCE 14
MEASURES, AND MEDICAL REVIEW CRITERIA.—The 15
Center shall review and evaluate each standard of 16
quality, performance measure, and medical review 17
criterion developed under part B of title IX of the 18
Public Health Service Act (42 U.S.C. 299 et seq.). 19
The Center shall determine whether the standard, 20
measure, or criterion is appropriate for use in as-21
sessing or reviewing the quality of services provided 22
by health care institutions or health care profes-23
sionals. In evaluating such standards, the Center 24
shall consider the evidentiary basis for the standard, 25
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and the validity, reliability, and feasibility of meas-1
uring the standard. 2
(3) PROFILING OF PATTERNS OF PRACTICE; 3
IDENTIFICATION OF OUTLIERS.—The Center shall 4
adopt methodologies for profiling the patterns of 5
practice of health care professionals and for identi-6
fying and notifying outliers. 7
(4) CRITERIA FOR ENTITIES CONDUCTING 8
QUALITY REVIEWS.—The Center shall develop min-9
imum criteria for competence for entities that can 10
qualify to conduct ongoing and continuous external 11
quality reviews in the administrative regions. Such 12
criteria shall require such an entity to be adminis-13
tratively independent of the individual or board that 14
administers the region and shall ensure that such 15
entities do not provide financial incentives to review-16
ers to favor one pattern of practice over another. 17
The Center shall ensure coordination and reporting 18
by such entities to ensure national consistency in 19
quality standards. 20
(5) REPORTING.—The Center shall report to 21
the Secretary annually specifically on findings from 22
outcomes research and development of practice 23
guidelines that may affect the Secretary’s deter-24
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mination of coverage of services under section 1
401(a)(1)(G). 2
SEC. 502. ADDRESSING HEALTH CARE DISPARITIES. 3
(a) EVALUATING DATA COLLECTION AP-4
PROACHES.—The Center shall evaluate approaches for the 5
collection of data under this Act, to be performed in con-6
junction with existing quality reporting requirements and 7
programs under this Act, that allow for the ongoing, accu-8
rate, and timely collection of data on disparities in health 9
care services and performance on the basis of race, eth-10
nicity, gender, geography, or socioeconomic status. In con-11
ducting such evaluation, the Secretary shall consider the 12
following objectives: 13
(1) Protecting patient privacy. 14
(2) Minimizing the administrative burdens of 15
data collection and reporting on providers under this 16
Act. 17
(3) Improving Universal Medicare Program 18
data on race, ethnicity, gender, geography, and so-19
cioeconomic status. 20
(b) REPORTS TO CONGRESS.— 21
(1) REPORT ON EVALUATION.—Not later than 22
18 months after the date on which benefits first be-23
come available as described in section 106(a), the 24
Center shall submit to Congress and the Secretary 25
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a report on the evaluation conducted under sub-1
section (a). Such report shall, taking into consider-2
ation the results of such evaluation— 3
(A) identify approaches (including defining 4
methodologies) for identifying and collecting 5
and evaluating data on health care disparities 6
on the basis of race, ethnicity, gender, geog-7
raphy, or socioeconomic status under the Uni-8
versal Medicare Program; and 9
(B) include recommendations on the most 10
effective strategies and approaches to reporting 11
quality measures, as appropriate, on the basis 12
of race, ethnicity, gender, geography, or socio-13
economic status. 14
(2) REPORT ON DATA ANALYSES.—Not later 15
than 4 years after the submission of the report 16
under subsection (b)(1), and 4 years thereafter, the 17
Center shall submit to Congress and the Secretary 18
a report that includes recommendations for improv-19
ing the identification of health care disparities based 20
on the analyses of data collected under subsection 21
(c). 22
(c) IMPLEMENTING EFFECTIVE APPROACHES.—Not 23
later than 2 years after the date on which benefits first 24
become available as described in section 106(a), the Sec-25
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retary shall implement the approaches identified in the re-1
port submitted under subsection (b)(1) for the ongoing, 2
accurate, and timely collection and evaluation of data on 3
health care disparities on the basis of race, ethnicity, gen-4
der, geography, or socioeconomic status. 5
TITLE VI—HEALTH BUDGET; 6
PAYMENTS; COST CONTAIN-7
MENT MEASURES 8
Subtitle A—Budgeting 9
SEC. 601. NATIONAL HEALTH BUDGET. 10
(a) NATIONAL HEALTH BUDGET.— 11
(1) IN GENERAL.—By not later than September 12
1 of each year, beginning with the year prior to the 13
date on which benefits first become available as de-14
scribed in section 106(a), the Secretary shall estab-15
lish a national health budget, which specifies the 16
total expenditures to be made for covered health 17
care services under this Act. 18
(2) DIVISION OF BUDGET INTO COMPONENTS.— 19
In addition to the cost of covered health services, the 20
national health budget shall consist of at least the 21
following components: 22
(A) Quality assessment activities under 23
title V. 24
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(B) Health professional education expendi-1
tures. 2
(C) Administrative costs. 3
(D) Innovation, including in accordance 4
with section 1115A of the Social Security Act 5
(42 U.S.C. 1315a). 6
(E) Operating and other expenditures not 7
described in subparagraphs (A) through (D) 8
(referred to in this Act as the ‘‘operating com-9
ponent’’), consisting of amounts not included in 10
the other components. 11
(F) Capital expenditures. 12
(G) Prevention and public health activities. 13
(3) ALLOCATION AMONG COMPONENTS.—The 14
Secretary shall allocate the budget among the com-15
ponents in a manner that— 16
(A) ensures a fair allocation for quality as-17
sessment activities; and 18
(B) ensures that the health professional 19
education expenditure component is sufficient 20
to provide for the amount of health professional 21
education expenditures sufficient to meet the 22
need for covered health care services. 23
(4) TEMPORARY WORKER ASSISTANCE.—For up 24
to 5 years following the date on which benefits first 25
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become available as described in section 106(a), up 1
to 1 percent of the budget may be allocated to pro-2
grams providing assistance to workers who perform 3
functions in the administration of the health insur-4
ance system and who may experience economic dis-5
location as a result of the implementation of this 6
Act. 7
(5) RESERVE FUND.—The Secretary shall es-8
tablish and maintain a reserve fund to respond to 9
the costs of treating an epidemic, pandemic, natural 10
disaster, or other such health emergency. 11
(b) DEFINITIONS.—In this section: 12
(1) CAPITAL EXPENDITURES.—The term ‘‘cap-13
ital expenditures’’ means expenses for the purchase, 14
lease, construction, or renovation of capital facilities 15
and for equipment and includes return on equity 16
capital. 17
(2) HEALTH PROFESSIONAL EDUCATION EX-18
PENDITURES.—The term ‘‘health professional edu-19
cation expenditures’’ means expenditures in hospitals 20
and other health care facilities to cover costs associ-21
ated with teaching and related research activities. 22
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Subtitle B—Payments to Providers 1
SEC. 611. PAYMENTS TO INSTITUTIONAL AND INDIVIDUAL 2
PROVIDERS. 3
(a) APPLICATION OF PAYMENT PROCESSES UNDER 4
TITLE XVIII.—Except as otherwise provided in this sec-5
tion, the Secretary shall establish, by regulation, fee 6
schedules that establish payment amounts for benefits 7
under this Act in a manner that is consistent with proc-8
esses for determining payments for items and services 9
under title XVIII of the Social Security Act (42 U.S.C. 10
1395 et seq.), including the application of the provisions 11
of, and amendments made by, section 612. 12
(b) APPLICATION OF CURRENT AND PLANNED PAY-13
MENT REFORMS.—Any payment reform activities or dem-14
onstrations planned or implemented with respect to such 15
title XVIII as of the date of the enactment of this Act 16
shall apply to benefits under this Act, including any re-17
form activities or demonstrations planned or implemented 18
under the provisions of, or amendments made by, the 19
Medicare Access and CHIP Reauthorization Act of 2015 20
(Public Law 114–10) and the Patient Protection and Af-21
fordable Care Act (Public Law 111–148). 22
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SEC. 612. ENSURING ACCURATE VALUATION OF SERVICES 1
UNDER THE MEDICARE PHYSICIAN FEE 2
SCHEDULE. 3
(a) STANDARDIZED AND DOCUMENTED REVIEW 4
PROCESS.—Section 1848(c)(2) of the Social Security Act 5
(42 U.S.C. 1395w–4(c)(2)) is amended by adding at the 6
end the following new subparagraph: 7
‘‘(P) STANDARDIZED AND DOCUMENTED 8
REVIEW PROCESS.— 9
‘‘(i) IN GENERAL.—Not later than one 10
year after the date of enactment of this 11
subparagraph, the Secretary shall estab-12
lish, document, and make publicly available 13
a standardized process for reviewing the 14
relative values of physicians’ services under 15
this paragraph. 16
‘‘(ii) MINIMUM REQUIREMENTS.—The 17
standardized process shall include, at a 18
minimum, methods and criteria for identi-19
fying services for review, prioritizing the 20
review of services, reviewing stakeholder 21
recommendations, and identifying addi-22
tional resources to be considered during 23
the review process.’’. 24
(b) PLANNED AND DOCUMENTED USE OF FUNDS.— 25
Section 1848(c)(2)(M) of the Social Security Act (42 26
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U.S.C. 1305w–4(c)(2)(M)) is amended by adding at the 1
end the following new clause: 2
‘‘(x) PLANNED AND DOCUMENTED 3
USE OF FUNDS.—For each fiscal year (be-4
ginning with the first fiscal year beginning 5
on or after the date of enactment of this 6
clause), the Secretary shall provide to Con-7
gress a written plan for using the funds 8
provided under clause (ix) to collect and 9
use information on physicians’ services in 10
the determination of relative values under 11
this subparagraph.’’. 12
(c) INTERNAL TRACKING OF REVIEWS.— 13
(1) IN GENERAL.—Not later than one year 14
after the date of enactment of this Act, the Sec-15
retary shall submit to Congress a proposed plan for 16
systematically and internally tracking its review of 17
the relative values of physicians’ services, such as by 18
establishing an internal database, under section 19
1848(c)(2) of the Social Security Act (42 U.S.C. 20
1395w–4(c)(2)), as amended by this section. 21
(2) MINIMUM REQUIREMENTS.—The proposal 22
shall include, at a minimum, plans and a timeline 23
for achieving the ability to systematically and inter-24
nally track the following: 25
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(A) When, how, and by whom services are 1
identified for review. 2
(B) When services are reviewed or when 3
new services are added. 4
(C) The resources, evidence, data, and rec-5
ommendations used in reviews. 6
(D) When relative values are adjusted. 7
(E) The rationale for final relative value 8
decisions. 9
(d) FREQUENCY OF REVIEW.—Section 1848(c)(2) of 10
the Social Security Act (42 U.S.C. 1395w–4(c)(2)) is 11
amended— 12
(1) in subparagraph (B)(i), by striking ‘‘5’’ and 13
inserting ‘‘4’’; and 14
(2) in subparagraph (K)(i)(I), by striking ‘‘peri-15
odically’’ and inserting ‘‘annually’’. 16
(e) CONSULTATION WITH MEDICARE PAYMENT AD-17
VISORY COMMISSION.— 18
(1) IN GENERAL.—Section 1848(c)(2) of the 19
Social Security Act (42 U.S.C. 1395w–4(c)(2)) is 20
amended— 21
(A) in subparagraph (B)(i), by inserting 22
‘‘in consultation with the Medicare Payment 23
Advisory Commission,’’ after ‘‘The Secretary,’’; 24
and 25
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(B) in subparagraph (K)(i)(I), as amended 1
by subsection (d)(2), by inserting ‘‘, in coordi-2
nation with the Medicare Payment Advisory 3
Commission,’’ after ‘‘annually’’. 4
(2) CONFORMING AMENDMENTS.—Section 1805 5
of the Social Security Act (42 U.S.C. 1395b–6) is 6
amended— 7
(A) in subsection (b)(1)(A), by inserting 8
the following before the semicolon at the end: 9
‘‘and including coordinating with the Secretary 10
in accordance with section 1848(c)(2) to sys-11
tematically review the relative values established 12
for physicians’ services, identify potentially 13
misvalued services, and propose adjustments to 14
the relative values for physicians’ services’’; and 15
(B) in subsection (e)(1), in the second sen-16
tence, by inserting ‘‘or the Ranking Minority 17
Member’’ after ‘‘the Chairman’’. 18
(f) PERIODIC AUDIT BY THE COMPTROLLER GEN-19
ERAL.—Section 1848(c)(2) of the Social Security Act (42 20
U.S.C. 1395w–4(c)(2)), as amended by subsection (a), is 21
amended by adding at the end the following new subpara-22
graph: 23
‘‘(Q) PERIODIC AUDIT BY THE COMP-24
TROLLER GENERAL.— 25
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‘‘(i) IN GENERAL.—The Comptroller 1
General of the United States (in this sub-2
paragraph referred to as the ‘Comptroller 3
General’) shall periodically audit the review 4
by the Secretary of relative values estab-5
lished under this paragraph for physicians’ 6
services. 7
‘‘(ii) ACCESS TO INFORMATION.—The 8
Comptroller General shall have unre-9
stricted access to all deliberations, records, 10
and nonproprietary data related to the ac-11
tivities carried out under this paragraph, 12
in a timely manner, upon request.’’. 13
SEC. 613. OFFICE OF PRIMARY HEALTH CARE. 14
(a) IN GENERAL.—There is established within the 15
Agency for Healthcare Research and Quality an Office of 16
Primary Health Care, responsible for coordinating with 17
the Secretary, the Health Resources and Services Admin-18
istration, and other offices in the Department as nec-19
essary, in order to— 20
(1) coordinate health professional education 21
policies and goals, in consultation with the Secretary 22
to achieve the national goals specified in subsection 23
(b); 24
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(2) develop and maintain a system to monitor 1
the number and specialties of individuals through 2
their health professional education, any postgraduate 3
training, and professional practice; 4
(3) develop, coordinate, and promote policies 5
that expand the number of primary care practi-6
tioners, registered nurses, midlevel practitioners, and 7
dentists; and 8
(4) recommend the appropriate training, edu-9
cation, technical assistance, and patient advocacy en-10
hancements of primary care health professionals, in-11
cluding registered nurses, to achieve uniform high- 12
quality and patient safety. 13
(b) NATIONAL GOALS.—Not later than 1 year after 14
the date of enactment of this Act, the Office of Primary 15
Health Care shall set forth national goals to increase ac-16
cess to high-quality primary health care, particularly in 17
underserved areas and for underserved populations. 18
SEC. 614. PAYMENTS FOR PRESCRIPTION DRUGS AND AP-19
PROVED DEVICES AND EQUIPMENT. 20
(a) NEGOTIATED PRICES.—The prices to be paid for 21
covered pharmaceuticals, medical supplies, and medically 22
necessary assistive equipment shall be negotiated annually 23
by the Secretary. 24
(b) PRESCRIPTION DRUG FORMULARY.— 25
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(1) IN GENERAL.—The Secretary shall establish 1
a prescription drug formulary system, which shall 2
encourage best-practices in prescribing and discour-3
age the use of ineffective, dangerous, or excessively 4
costly medications when better alternatives are avail-5
able. 6
(2) PROMOTION OF USE OF GENERICS.—The 7
formulary under this subsection shall promote the 8
use of generic medications to the greatest extent 9
possible. 10
(3) FORMULARY UPDATES AND PETITION 11
RIGHTS.—The formulary under this subsection shall 12
be updated frequently and clinicians and patients 13
may petition the Secretary to add new pharma-14
ceuticals or to remove ineffective or dangerous medi-15
cations from the formulary. 16
(4) USE OF OFF-FORMULARY MEDICATIONS.— 17
The Secretary shall promulgate rules regarding the 18
use of off-formulary medications which allow for pa-19
tient access but do not compromise the formulary. 20
TITLE VII—UNIVERSAL 21
MEDICARE TRUST FUND 22
SEC. 701. UNIVERSAL MEDICARE TRUST FUND. 23
(a) IN GENERAL.—There is hereby created on the 24
books of the Treasury of the United States a trust fund 25
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to be known as the Universal Medicare Trust Fund (in 1
this section referred to as the ‘‘Trust Fund’’). The Trust 2
Fund shall consist of such gifts and bequests as may be 3
made and such amounts as may be deposited in, or appro-4
priated to, such Trust Fund as provided in this Act. 5
(b) APPROPRIATIONS INTO TRUST FUND.— 6
(1) TAXES.—There are hereby appropriated to 7
the Trust Fund for each fiscal year beginning with 8
the fiscal year which includes the date on which ben-9
efits first become available as described in section 10
106, out of any moneys in the Treasury not other-11
wise appropriated, amounts equivalent to 100 per-12
cent of the net increase in revenues to the Treasury 13
which is attributable to the amendments made by 14
sections 801 and 902. The amounts appropriated by 15
the preceding sentence shall be transferred from 16
time to time (but not less frequently than monthly) 17
from the general fund in the Treasury to the Trust 18
Fund, such amounts to be determined on the basis 19
of estimates by the Secretary of the Treasury of the 20
taxes paid to or deposited into the Treasury; and 21
proper adjustments shall be made in amounts subse-22
quently transferred to the extent prior estimates 23
were in excess of or were less than the amounts that 24
should have been so transferred. 25
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(2) CURRENT PROGRAM RECEIPTS.—Notwith-1
standing any other provision of law, there are hereby 2
appropriated to the Trust Fund for each fiscal year, 3
beginning with the first fiscal year beginning on or 4
after the effective date of benefits under section 106, 5
the amounts that would otherwise have been appro-6
priated to carry out the following programs: 7
(A) The Medicare program under title 8
XVIII of the Social Security Act (other than 9
amounts attributable to any premiums under 10
such title). 11
(B) The Medicaid program, under State 12
plans approved under title XIX of such Act. 13
(C) The Federal employees health benefit 14
program, under chapter 89 of title 5, United 15
States Code. 16
(D) The TRICARE program, under chap-17
ter 55 of title 10, United States Code. 18
(E) The maternal and child health pro-19
gram (under title V of the Social Security Act), 20
vocational rehabilitation programs, programs 21
for drug abuse and mental health services 22
under the Public Health Service Act, programs 23
providing general hospital or medical assistance, 24
and any other Federal program identified by 25
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the Secretary, in consultation with the Sec-1
retary of the Treasury, to the extent the pro-2
grams provide for payment for health services 3
the payment of which may be made under this 4
Act. 5
(3) RESTRICTIONS SHALL NOT APPLY.—Any 6
other provision of law in effect on the date of enact-7
ment of this Act restricting the use of Federal funds 8
for any reproductive health service shall not apply to 9
monies in the Trust Fund. 10
(c) INCORPORATION OF PROVISIONS.—The provisions 11
of subsections (b) through (i) of section 1817 of the Social 12
Security Act (42 U.S.C. 1395i) shall apply to the Trust 13
Fund under this section in the same manner as such pro-14
visions applied to the Federal Hospital Insurance Trust 15
Fund under such section 1817, except that, for purposes 16
of applying such subsections to this section, the ‘‘Board 17
of Trustees of the Trust Fund’’ shall mean the ‘‘Sec-18
retary’’. 19
(d) TRANSFER OF FUNDS.—Any amounts remaining 20
in the Federal Hospital Insurance Trust Fund under sec-21
tion 1817 of the Social Security Act (42 U.S.C. 1395i) 22
or the Federal Supplementary Medical Insurance Trust 23
Fund under section 1841 of such Act (42 U.S.C. 1395t) 24
after the payment of claims for items and services fur-25
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nished under title XVIII of such Act have been completed, 1
shall be transferred into the Universal Medicare Trust 2
Fund under this section. 3
TITLE VIII—CONFORMING 4
AMENDMENTS TO THE EM-5
PLOYEE RETIREMENT IN-6
COME SECURITY ACT OF 1974 7
SEC. 801. PROHIBITION OF EMPLOYEE BENEFITS DUPLICA-8
TIVE OF BENEFITS UNDER THE UNIVERSAL 9
MEDICARE PROGRAM; COORDINATION IN 10
CASE OF WORKERS’ COMPENSATION. 11
(a) IN GENERAL.—Part 5 of subtitle B of title I of 12
the Employee Retirement Income Security Act of 1974 13
(29 U.S.C. 1131 et seq.) is amended by adding at the end 14
the following new section: 15
‘‘SEC. 522. PROHIBITION OF EMPLOYEE BENEFITS DUPLI-16
CATIVE OF UNIVERSAL MEDICARE PROGRAM 17
BENEFITS; COORDINATION IN CASE OF 18
WORKERS’ COMPENSATION. 19
‘‘(a) IN GENERAL.—Subject to subsection (b), no em-20
ployee benefit plan may provide benefits that duplicate 21
payment for any items or services for which payment may 22
be made under the Medicare for All Act of 2019. 23
‘‘(b) REIMBURSEMENT.—Each workers compensation 24
carrier that is liable for payment for workers compensa-25
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tion services furnished in a State shall reimburse the Uni-1
versal Medicare Program for the cost of such services. 2
‘‘(c) DEFINITIONS.—In this subsection— 3
‘‘(1) the term ‘workers compensation carrier’ 4
means an insurance company that underwrite work-5
ers compensation medical benefits with respect to 6
one or more employers and includes an employer or 7
fund that is financially at risk for the provision of 8
workers compensation medical benefits; 9
‘‘(2) the term ‘workers compensation medical 10
benefits’ means, with respect to an enrollee who is 11
an employee subject to the workers compensation 12
laws of a State, the comprehensive medical benefits 13
for work-related injuries and illnesses provided for 14
under such laws with respect to such an employee; 15
and 16
‘‘(3) the term ‘workers compensation services’ 17
means items and services included in workers com-18
pensation medical benefits and includes items and 19
services (including rehabilitation services and long- 20
term-care services) commonly used for treatment of 21
work-related injuries and illnesses.’’. 22
(b) CONFORMING AMENDMENT.—Section 4(b) of the 23
Employee Retirement Income Security Act of 1974 (29 24
U.S.C. 1003(b)) is amended by adding at the end the fol-25
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lowing: ‘‘Paragraph (3) shall apply subject to section 1
522(b) (relating to reimbursement of the Universal Medi-2
care Program by workers compensation carriers).’’. 3
(c) CLERICAL AMENDMENT.—The table of contents 4
in section 1 of such Act is amended by inserting after the 5
item relating to section 521 the following new item: 6
‘‘Sec 522. Prohibition of employee benefits duplicative of Universal Medicare
Program benefits; coordination in case of workers’ compensa-
tion.’’.
SEC. 802. REPEAL OF CONTINUATION COVERAGE REQUIRE-7
MENTS UNDER ERISA AND CERTAIN OTHER 8
REQUIREMENTS RELATING TO GROUP 9
HEALTH PLANS. 10
(a) IN GENERAL.—Part 6 of subtitle B of title I of 11
the Employee Retirement Income Security Act of 1974 12
(29 U.S.C. 1161 et seq.) is repealed. 13
(b) CONFORMING AMENDMENTS.— 14
(1) Section 502(a) of such Act (29 U.S.C. 15
1132(a)) is amended— 16
(A) by striking paragraph (7); and 17
(B) by redesignating paragraphs (8), (9), 18
and (10) as paragraphs (7), (8), and (9), re-19
spectively. 20
(2) Section 502(c)(1) of such Act (29 U.S.C. 21
1132(c)(1)) is amended by striking ‘‘paragraph (1) 22
or (4) of section 606,’’. 23
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(3) Section 514(b) of such Act (29 U.S.C. 1
1144(b)) is amended— 2
(A) in paragraph (7), by striking ‘‘section 3
206(d)(3)(B)(i)).’’; and 4
(B) by striking paragraph (8). 5
(4) The table of contents in section 1 of the 6
Employee Retirement Income Security Act of 1974 7
is amended by striking the items relating to part 6 8
of subtitle B of title I of such Act. 9
SEC. 803. EFFECTIVE DATE OF TITLE. 10
The amendments made by this title shall take effect 11
on effective date of benefits under section 106(a). 12
TITLE IX—ADDITIONAL 13
CONFORMING AMENDMENTS 14
SEC. 901. RELATIONSHIP TO EXISTING FEDERAL HEALTH 15
PROGRAMS. 16
(a) MEDICARE, MEDICAID, AND STATE CHILDREN’S 17
HEALTH INSURANCE PROGRAM (SCHIP).— 18
(1) IN GENERAL.—Notwithstanding any other 19
provision of law, subject to paragraphs (2) and 20
(3)— 21
(A) no benefits shall be available under 22
title XVIII of the Social Security Act for any 23
item or service furnished beginning on or after 24
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the effective date of benefits under section 1
106(a); 2
(B) no individual is entitled to medical as-3
sistance under a State plan approved under 4
title XIX of such Act for any item or service 5
furnished on or after such date; 6
(C) no individual is entitled to medical as-7
sistance under a State child health plan under 8
title XXI of such Act for any item or service 9
furnished on or after such date; and 10
(D) no payment shall be made to a State 11
under section 1903(a) or 2105(a) of such Act 12
with respect to medical assistance or child 13
health assistance for any item or service fur-14
nished on or after such date. 15
(2) TRANSITION.—In the case of inpatient hos-16
pital services and extended care services during a 17
continuous period of stay which began before the ef-18
fective date of benefits under section 106, and which 19
had not ended as of such date, for which benefits 20
are provided under title XVIII of the Social Security 21
Act, under a State plan under title XIX of such Act, 22
or under a State child health plan under title XXI 23
such Act, the Secretary of Health and Human Serv-24
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ices shall provide for continuation of benefits under 1
such title or plan until the end of the period of stay. 2
(3) SERVICES UNDER MEDICAID.— 3
(A) IN GENERAL.—This subsection shall 4
not apply to entitlement to medical assistance 5
provided under title XIX of the Social Security 6
Act for— 7
(i) institutional long-term care serv-8
ices (as defined in section 1947(b) of such 9
Act); or 10
(ii) any other service for which bene-11
fits are not available under this Act and 12
which is furnished under a State plan 13
under title XIX of the Social Security Act 14
which provided for medical assistance for 15
such service on January 1, 2019. 16
(B) COORDINATION BETWEEN SECRETARY 17
AND STATES.—The Secretary shall coordinate 18
with the directors of State agencies responsible 19
for administering State plans under title XIX 20
of the Social Security Act to— 21
(i) identify services described in sub-22
paragraph (A)(ii) with respect to each 23
State plan; and 24
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(ii) ensure that such services continue 1
to be made available under such plan. 2
(C) MAINTENANCE OF EFFORT REQUIRE-3
MENT.—With respect to any service described 4
in subparagraph (A)(ii) that is made available 5
under a State plan under title XIX of the So-6
cial Security Act, the maintenance of effort re-7
quirements described in section 1947(c) of such 8
Act (related to eligibility standards and re-9
quired expenditures) shall apply to such service 10
in the same manner that such requirements 11
apply to institutional long-term care services (as 12
defined in section 1947(b) of such Act). 13
(b) FEDERAL EMPLOYEES HEALTH BENEFITS PRO-14
GRAM.—No benefits shall be made available under chapter 15
89 of title 5, United States Code, for any part of a cov-16
erage period occurring on or after the effective date. 17
(c) TRICARE.—No benefits shall be made available 18
under sections 1079 and 1086 of title 10, United States 19
Code, for items or services furnished on or after the effec-20
tive date. 21
(d) TREATMENT OF BENEFITS FOR VETERANS AND 22
NATIVE AMERICANS.— 23
(1) IN GENERAL.—Nothing in this Act shall af-24
fect the eligibility of veterans for the medical bene-25
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fits and services provided under title 38, United 1
States Code, or of Indians for the medical benefits 2
and services provided by or through the Indian 3
Health Service. 4
(2) REEVALUATION.—No reevaluation of the 5
Indian Health Service shall be undertaken without 6
consultation with tribal leaders and stakeholders. 7
SEC. 902. SUNSET OF PROVISIONS RELATED TO THE STATE 8
EXCHANGES. 9
Effective on the date described in section 106, the 10
Federal and State Exchanges established pursuant to title 11
I of the Patient Protection and Affordable Care Act (Pub-12
lic Law 111–148) shall terminate, and any other provision 13
of law that relies upon participation in or enrollment 14
through such an Exchange, including such provisions of 15
the Internal Revenue Code of 1986, shall cease to have 16
force or effect. 17
TITLE X—TRANSITION 18
Subtitle A—Transitional Medicare 19
Buy-In Option and Transitional 20
Public Option 21
SEC. 1001. LOWERING THE MEDICARE AGE. 22
(a) IN GENERAL.—Title XVIII of the Social Security 23
Act (42 U.S.C. 1395c et seq.) is amended by adding at 24
the end the following new section: 25
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‘‘TRANSITIONAL MEDICARE BUY-IN OPTION FOR CERTAIN 1
INDIVIDUALS 2
‘‘SEC. 1899C. (a) OPTION.— 3
‘‘(1) IN GENERAL.—Every individual who meets 4
the requirements described in paragraph (3) shall be 5
eligible to enroll under this section. 6
‘‘(2) PART A, B, AND D BENEFITS.—An indi-7
vidual enrolled under this section is entitled to the 8
same benefits (and shall receive the same protec-9
tions) under this title as an individual who is enti-10
tled to benefits under part A and enrolled under 11
parts B and D, including the ability to enroll in a 12
Medicare Advantage plan that provides qualified pre-13
scription drug coverage (an MA–PD plan). 14
‘‘(3) REQUIREMENTS FOR ELIGIBILITY.—The 15
requirements described in this paragraph are the fol-16
lowing: 17
‘‘(A) The individual is a resident of the 18
United States. 19
‘‘(B) The individual is— 20
‘‘(i) a citizen or national of the United 21
States; or 22
‘‘(ii) an alien lawfully admitted for 23
permanent residence. 24
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‘‘(C) The individual is not otherwise enti-1
tled to benefits under part A or eligible to en-2
roll under part A or part B. 3
‘‘(D) The individual has attained the appli-4
cable years of age but has not attained 65 years 5
of age. 6
‘‘(4) APPLICABLE YEARS OF AGE DEFINED.— 7
For purposes of this section, the term ‘applicable 8
years of age’ means— 9
‘‘(A) effective January 1 of the first year 10
following the date of enactment of the Medicare 11
for All Act of 2019, the age of 55; 12
‘‘(B) effective January 1 of the second 13
year following such date of enactment, the age 14
of 45; and 15
‘‘(C) effective January 1 of the third year 16
following such date of enactment, the age of 35. 17
‘‘(b) ENROLLMENT; COVERAGE.—The Secretary shall 18
establish enrollment periods and coverage under this sec-19
tion consistent with the principles for establishment of en-20
rollment periods and coverage for individuals under other 21
provisions of this title. The Secretary shall establish such 22
periods so that coverage under this section shall first begin 23
on January 1 of the year on which an individual first be-24
comes eligible to enroll under this section. 25
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‘‘(c) PREMIUM.— 1
‘‘(1) AMOUNT OF MONTHLY PREMIUMS.—The 2
Secretary shall, during September of each year (be-3
ginning with the first September following the date 4
of enactment of the Medicare for All Act of 2019), 5
determine a monthly premium for all individuals en-6
rolled under this section. Such monthly premium 7
shall be equal to 1⁄12 of the annual premium com-8
puted under paragraph (2)(B), which shall apply 9
with respect to coverage provided under this section 10
for any month in the succeeding year. 11
‘‘(2) ANNUAL PREMIUM.— 12
‘‘(A) COMBINED PER CAPITA AVERAGE FOR 13
ALL MEDICARE BENEFITS.—The Secretary shall 14
estimate the average, annual per capita amount 15
for benefits and administrative expenses that 16
will be payable under parts A, B, and D (in-17
cluding, as applicable, under part C) in the year 18
for all individuals enrolled under this section. 19
‘‘(B) ANNUAL PREMIUM.—The annual pre-20
mium under this subsection for months in a 21
year is equal to the average, annual per capita 22
amount estimated under subparagraph (A) for 23
the year. 24
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‘‘(3) INCREASED PREMIUM FOR CERTAIN PART 1
C AND D PLANS.—Nothing in this section shall pre-2
clude an individual from choosing a Medicare Advan-3
tage plan or a prescription drug plan which requires 4
the individual to pay an additional amount (because 5
of supplemental benefits or because it is a more ex-6
pensive plan). In such case the individual would be 7
responsible for the increased monthly premium. 8
‘‘(d) PAYMENT OF PREMIUMS.— 9
‘‘(1) IN GENERAL.—Premiums for enrollment 10
under this section shall be paid to the Secretary at 11
such times, and in such manner, as the Secretary 12
determines appropriate. 13
‘‘(2) DEPOSIT.—Amounts collected by the Sec-14
retary under this section shall be deposited in the 15
Federal Hospital Insurance Trust Fund and the 16
Federal Supplementary Medical Insurance Trust 17
Fund (including the Medicare Prescription Drug Ac-18
count within such Trust Fund) in such proportion 19
as the Secretary determines appropriate. 20
‘‘(e) NOT ELIGIBLE FOR MEDICARE COST-SHARING 21
ASSISTANCE.—An individual enrolled under this section 22
shall not be treated as enrolled under any part of this title 23
for purposes of obtaining medical assistance for Medicare 24
cost-sharing or otherwise under title XIX. 25
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‘‘(f) TREATMENT IN RELATION TO THE AFFORDABLE 1
CARE ACT.— 2
‘‘(1) SATISFACTION OF INDIVIDUAL MAN-3
DATE.—For purposes of applying section 5000A of 4
the Internal Revenue Code of 1986, the coverage 5
provided under this section constitutes minimum es-6
sential coverage under subsection (f)(1)(A)(i) of 7
such section 5000A. 8
‘‘(2) ELIGIBILITY FOR PREMIUM ASSISTANCE.— 9
Coverage provided under this section— 10
‘‘(A) shall be treated as coverage under a 11
qualified health plan in the individual market 12
enrolled in through the Exchange where the in-13
dividual resides for all purposes of section 36B 14
of the Internal Revenue Code of 1986 other 15
than subsection (c)(2)(B) thereof; and 16
‘‘(B) shall not be treated as eligibility for 17
other minimum essential coverage for purposes 18
of subsection (c)(2)(B) of such section 36B. 19
The Secretary shall determine the applicable second 20
lowest cost silver plan which shall apply to coverage 21
under this section for purposes of section 36B of 22
such Code. 23
‘‘(3) ELIGIBILITY FOR COST-SHARING SUB-24
SIDIES.—For purposes of applying section 1402 of 25
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the Patient Protection and Affordable Care Act (42 1
U.S.C. 18071)— 2
‘‘(A) coverage provided under this section 3
shall be treated as coverage under a qualified 4
health plan in the silver level of coverage in the 5
individual market offered through an Exchange; 6
and 7
‘‘(B) the Secretary shall be treated as the 8
issuer of such plan. 9
‘‘(g) NO EFFECT ON BENEFITS FOR INDIVIDUALS 10
OTHERWISE ELIGIBLE OR ON TRUST FUNDS.—The Sec-11
retary shall implement the provisions of this section in 12
such a manner to ensure that such provisions— 13
‘‘(1) have no effect on the benefits under this 14
title for individuals who are entitled to, or enrolled 15
for, such benefits other than through this section; 16
and 17
‘‘(2) have no negative impact on the Federal 18
Hospital Insurance Trust Fund or the Federal Sup-19
plementary Medical Insurance Trust Fund (includ-20
ing the Medicare Prescription Drug Account within 21
such Trust Fund). 22
‘‘(h) CONSULTATION.—In promulgating regulations 23
to implement this section, the Secretary shall consult with 24
interested parties, including groups representing bene-25
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ficiaries, health care providers, employers, and insurance 1
companies.’’. 2
SEC. 1002. ESTABLISHMENT OF THE MEDICARE TRANSI-3
TION PLAN. 4
(a) IN GENERAL.—To carry out the purpose of this 5
section, for plan years beginning with the first plan year 6
that begins after the date of enactment of this Act and 7
ending with the effective date described in section 106, 8
the Secretary, acting through the Administrator of the 9
Centers for Medicare & Medicaid (referred to in this sec-10
tion as the ‘‘Administrator’’), shall establish, and provide 11
for the offering through the Exchanges, of a public health 12
plan (in this Act referred to as the ‘‘Medicare Transition 13
plan’’) that provides affordable, high-quality health bene-14
fits coverage throughout the United States. 15
(b) ADMINISTRATING THE MEDICARE TRANSI-16
TION.— 17
(1) ADMINISTRATOR.—The Administrator shall 18
administer the Medicare Transition plan in accord-19
ance with this section. 20
(2) APPLICATION OF ACA REQUIREMENTS.— 21
Consistent with this section, the Medicare Transition 22
plan shall comply with requirements under title I of 23
the Patient Protection and Affordable Care Act (and 24
the amendments made by that title) and title XXVII 25
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of the Public Health Service Act (42 U.S.C. 300gg 1
et seq.) that are applicable to qualified health plans 2
offered through the Exchanges, subject to the limita-3
tion under subsection (e)(2). 4
(3) OFFERING THROUGH EXCHANGES.—The 5
Medicare Transition plan shall be made available 6
only through the Exchanges, and shall be available 7
to individuals wishing to enroll and to qualified em-8
ployers (as defined in section 1312(f)(2) of the Pa-9
tient Protection and Affordable Care Act (42 U.S.C. 10
18032)) who wish to make such plan available to 11
their employees. 12
(4) ELIGIBILITY TO PURCHASE.—Any United 13
States resident may enroll in the Medicare Transi-14
tion plan. 15
(c) BENEFITS; ACTUARIAL VALUE.—In carrying out 16
this section, the Administrator shall ensure that the Medi-17
care Transition plan provides— 18
(1) coverage for the benefits required to be cov-19
ered under title II; and 20
(2) coverage of benefits that are actuarially 21
equivalent to 90 percent of the full actuarial value 22
of the benefits provided under the plan. 23
(d) PROVIDERS AND REIMBURSEMENT RATES.— 24
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(1) IN GENERAL.—With respect to the reim-1
bursement provided to health care providers for cov-2
ered benefits, as described in section 201, provided 3
under the Medicare Transition plan, the Adminis-4
trator shall reimburse such providers at rates deter-5
mined for equivalent items and services under the 6
original Medicare fee-for-service program under 7
parts A and B of title XVIII of the Social Security 8
Act (42 U.S.C. 1395c et seq.). For items and serv-9
ices covered under the Medicare Transition plan but 10
not covered under such parts A and B, the Adminis-11
trator shall reimburse providers at rates set by the 12
Administrator in a manner consistent with the man-13
ner in which rates for other items and services were 14
set under the original Medicare fee-for-service pro-15
gram. 16
(2) PRESCRIPTION DRUGS.—Any payment rate 17
under this subsection for a prescription drug shall be 18
at a rate negotiated by the Administrator with the 19
manufacturer of the drug. If the Administrator is 20
unable to reach a negotiated agreement on such a 21
reimbursement rate, the Administrator shall estab-22
lish the rate at an amount equal to the lesser of— 23
(A) the price paid by the Secretary of Vet-24
erans Affairs to procure the drug under the 25
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laws administered by the Secretary of Veterans 1
Affairs; 2
(B) the price paid to procure the drug 3
under section 8126 of title 38, United States 4
Code; or 5
(C) the best price determined under sec-6
tion 1927(c)(1)(C) of the Social Security Act 7
(42 U.S.C. 1396r–8(c)(1)(C)) for the drug. 8
(3) PARTICIPATING PROVIDERS.— 9
(A) IN GENERAL.—A health care provider 10
that is a participating provider of services or 11
supplier under the Medicare program under 12
title XVIII of the Social Security Act (42 13
U.S.C. 1395 et seq.) or under a State Medicaid 14
plan under title XIX of such Act (42 U.S.C. 15
1396 et seq.) on the date of enactment of this 16
Act shall be a participating provider in the 17
Medicare Transition plan. 18
(B) ADDITIONAL PROVIDERS.—The Ad-19
ministrator shall establish a process to allow 20
health care providers not described in subpara-21
graph (A) to become participating providers in 22
the Medicare Transition plan. Such process 23
shall be similar to the process applied to new 24
providers under the Medicare program. 25
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(e) PREMIUMS.— 1
(1) DETERMINATION.—The Administrator shall 2
determine the premium amount for enrolling in the 3
Medicare Transition plan, which— 4
(A) may vary according to family or indi-5
vidual coverage, age, and tobacco status (con-6
sistent with clauses (i), (iii), and (iv) of section 7
2701(a)(1)(A) of the Public Health Service Act 8
(42 U.S.C. 300gg(a)(1)(A))); and 9
(B) shall take into account the cost-shar-10
ing reductions and premium tax credits which 11
will be available with respect to the plan under 12
section 1402 of the Patient Protection and Af-13
fordable Care Act (42 U.S.C. 18071) and sec-14
tion 36B of the Internal Revenue Code of 1986, 15
as amended by subsection (g). 16
(2) LIMITATION.—Variation in premium rates 17
of the Medicare Transition plan by rating area, as 18
described in clause (ii) of section 2701(a)(1)(A)(iii) 19
of the Public Health Service Act (42 U.S.C. 20
300gg(a)(1)(A)) is not permitted. 21
(f) TERMINATION.—This section shall cease to have 22
force or effect on the effective date described in section 23
106. 24
(g) TAX CREDITS AND COST-SHARING SUBSIDIES.— 25
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(1) PREMIUM ASSISTANCE TAX CREDITS.— 1
(A) CREDITS ALLOWED TO MEDICARE 2
TRANSITION PLAN ENROLLEES AT OR ABOVE 44 3
PERCENT OF POVERTY IN NON-EXPANSION 4
STATES.—Paragraph (1) of section 36B(c) of 5
the Internal Revenue Code of 1986 is amended 6
by redesignating subparagraphs (C) and (D) as 7
subparagraphs (D) and (E), respectively, and 8
by inserting after subparagraph (B) the fol-9
lowing new subparagraph: 10
‘‘(C) SPECIAL RULES FOR MEDICARE 11
TRANSITION PLAN ENROLLEES.— 12
‘‘(i) IN GENERAL.—In the case of a 13
taxpayer who is covered, or whose spouse 14
or dependent (as defined in section 152) is 15
covered, by the Medicare Transition plan 16
established under section 1002(a) of the 17
Medicare for All Act of 2019 for all 18
months in the taxable year, subparagraph 19
(A) shall be applied without regard to ‘but 20
does not exceed 400 percent’. 21
‘‘(ii) ENROLLEES IN MEDICAID NON- 22
EXPANSION STATES.—In the case of a tax-23
payer residing in a State which (as of the 24
date of the enactment of the Medicare for 25
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All Act of 2019) does not provide for eligi-1
bility under clause (i)(VIII) or (ii)(XX) of 2
section 1902(a)(10)(A) of the Social Secu-3
rity Act for medical assistance under title 4
XIX of such Act (or a waiver of the State 5
plan approved under section 1115) who is 6
covered, or whose spouse or dependent (as 7
defined in section 152) is covered, by the 8
Medicare Transition plan established under 9
section 1002(a) of the Medicare for All Act 10
of 2019 for all months in the taxable year, 11
subparagraphs (A) and (B) shall be ap-12
plied by substituting ‘0 percent’ for ‘100 13
percent’ each place it appears.’’. 14
(B) PREMIUM ASSISTANCE AMOUNTS FOR 15
TAXPAYERS ENROLLED IN MEDICARE TRANSI-16
TION PLAN.— 17
(i) IN GENERAL.—Subparagraph (A) 18
of section 36B(b)(3) of such Code is 19
amended— 20
(I) by redesignating clause (ii) as 21
clause (iii); 22
(II) by striking ‘‘clause (ii)’’ in 23
clause (i) and inserting ‘‘clauses (ii) 24
and (iii)’’; and 25
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(III) by inserting after clause (i) 1
the following new clause: 2
‘‘(ii) SPECIAL RULES FOR TAXPAYERS 3
ENROLLED IN MEDICARE TRANSITION 4
PLAN.—In the case of a taxpayer who is 5
covered, or whose spouse or dependent (as 6
defined in section 152) is covered, by the 7
Medicare Transition plan established under 8
section 1002(a) of the Medicare for All Act 9
of 2019 for all months in the taxable year, 10
the applicable percentage for any taxable 11
year shall be determined in the same man-12
ner as under clause (i), except that the fol-13
lowing table shall apply in lieu of the table 14
contained in such clause: 15
‘‘In the case of household income
(expressed as a percent of poverty line)
within the following income tier:
The initial
premium
percentage is—
The final
premium
percentage is—
Up to 100 percent .................................. 2 2
100 percent up to 138 percent ............... 2.04 2.04
138 percent up to 150 percent ............... 3.06 4.08
150 percent and above ............................ 4.08 5’’.
(ii) CONFORMING AMENDMENT.—Sub-16
clause (I) of clause (iii) of section 17
36B(b)(3) of such Code, as redesignated 18
by subparagraph (A)(i), is amended by in-19
serting ‘‘, and determined after the appli-20
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cation of clause (ii)’’ after ‘‘after applica-1
tion of this clause’’. 2
(2) COST-SHARING SUBSIDIES.—Subsection (b) 3
of section 1402 of the Patient Protection and Af-4
fordable Care Act (42 U.S.C. 18071(b)) is amend-5
ed— 6
(A) by inserting ‘‘, or in the Medicare 7
Transition plan established under section 8
1002(a) of the Medicare for All Act of 2019,’’ 9
after ‘‘coverage’’ in paragraph (1); 10
(B) by redesignating paragraphs (1) (as so 11
amended) and (2) as subparagraphs (A) and 12
(B), respectively, and by moving such subpara-13
graphs 2 ems to the right; 14
(C) by striking ‘‘INSURED.—In this sec-15
tion’’ and inserting ‘‘INSURED.— 16
‘‘(1) IN GENERAL.—In this section’’; 17
(D) by striking the flush language; and 18
(E) by adding at the end the following new 19
paragraph: 20
‘‘(2) SPECIAL RULES.— 21
‘‘(A) INDIVIDUALS LAWFULLY PRESENT.— 22
In the case of an individual described in section 23
36B(c)(1)(B) of the Internal Revenue Code of 24
1986, the individual shall be treated as having 25
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household income equal to 100 percent of the 1
poverty line for a family of the size involved for 2
purposes of applying this section. 3
‘‘(B) MEDICARE TRANSITION PLAN EN-4
ROLLEES IN MEDICAID NON-EXPANSION 5
STATES.—In the case of an individual residing 6
in a State which (as of the date of the enact-7
ment of the Medicare for All Act of 2019) does 8
not provide for eligibility under clause (i)(VIII) 9
or (ii)(XX) of section 1902(a)(10)(A) of the So-10
cial Security Act for medical assistance under 11
title XIX of such Act (or a waiver of the State 12
plan approved under section 1115) who enrolls 13
in such Medicare Transition plan, the preceding 14
sentence, paragraph (1)(B), and paragraphs 15
(1)(A)(i) and (2)(A) of subsection (c) shall each 16
be applied by substituting ‘0 percent’ for ‘100 17
percent’ each place it appears. 18
‘‘(C) ADJUSTED COST-SHARING FOR MEDI-19
CARE TRANSITION PLAN ENROLLEES.—In the 20
case of any individual who enrolls in such Medi-21
care Transition plan, in lieu of the percentages 22
under subsection (c)(1)(B)(i) and (c)(2), the 23
Secretary shall prescribe a method of deter-24
mining the cost-sharing reduction for any such 25
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individual such that the total of the cost-shar-1
ing and the premiums paid by the individual 2
under such Medicare Transition plan does not 3
exceed the percentage of the total allowed costs 4
of benefits provided under the plan equal to the 5
final premium percentage applicable to such in-6
dividual under section 36B(b)(3)(A)(ii) of the 7
Internal Revenue Code of 1986.’’. 8
(h) CONFORMING AMENDMENTS.— 9
(1) TREATMENT AS A QUALIFIED HEALTH 10
PLAN.—Section 1301(a)(2) of the Patient Protection 11
and Affordable Care Act (42 U.S.C. 18021(a)(2)) is 12
amended— 13
(A) in the paragraph heading, by inserting 14
‘‘, THE MEDICARE TRANSITION PLAN,’’ before 15
‘‘AND’’; and 16
(B) by inserting ‘‘The Medicare Transition 17
plan,’’ before ‘‘and a multi-State plan’’. 18
(2) LEVEL PLAYING FIELD.—Section 1324(a) 19
of the Patient Protection and Affordable Care Act 20
(42 U.S.C. 18044(a)) is amended by inserting ‘‘the 21
Medicare Transition plan,’’ before ‘‘or a multi-State 22
qualified health plan’’. 23
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Subtitle B—Transitional Medicare 1
Reforms 2
SEC. 1011. MEDICARE PROTECTION AGAINST HIGH OUT-OF- 3
POCKET EXPENDITURES FOR FEE-FOR-SERV-4
ICE BENEFITS AND ELIMINATION OF PARTS A 5
AND B DEDUCTIBLES. 6
(a) PROTECTION AGAINST HIGH OUT-OF-POCKET 7
EXPENDITURES.—Title XVIII of the Social Security Act 8
(42 U.S.C. 1395 et seq.), as amended by section 1001, 9
is amended by adding at the end the following new section: 10
‘‘PROTECTION AGAINST HIGH OUT-OF-POCKET 11
EXPENDITURES 12
‘‘SEC. 1899D. (a) IN GENERAL.—Notwithstanding 13
any other provision of this title, in the case of an indi-14
vidual entitled to, or enrolled for, benefits under part A 15
or enrolled in part B, if the amount of the out-of-pocket 16
cost-sharing of such individual for a year (effective the 17
year beginning January 1 of the year following the date 18
of enactment of the Medicare for All Act of 2019) equals 19
or exceeds $1,500, the individual shall not be responsible 20
for additional out-of-pocket cost-sharing occurred during 21
that year. 22
‘‘(b) OUT-OF-POCKET COST-SHARING DEFINED.— 23
‘‘(1) IN GENERAL.—Subject to paragraphs (2) 24
and (3), in this section, the term ‘out-of-pocket cost- 25
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sharing’ means, with respect to an individual, the 1
amount of the expenses incurred by the individual 2
that are attributable to— 3
‘‘(A) coinsurance and copayments applica-4
ble under part A or B; or 5
‘‘(B) for items and services that would 6
have otherwise been covered under part A or B 7
but for the exhaustion of those benefits. 8
‘‘(2) CERTAIN COSTS NOT INCLUDED.— 9
‘‘(A) NON-COVERED ITEMS AND SERV-10
ICES.—Expenses incurred for items and serv-11
ices which are not included (or treated as being 12
included) under part A or B shall not be con-13
sidered incurred expenses for purposes of deter-14
mining out-of-pocket cost-sharing under para-15
graph (1). 16
‘‘(B) ITEMS AND SERVICES NOT FUR-17
NISHED ON AN ASSIGNMENT-RELATED BASIS.— 18
If an item or service is furnished to an indi-19
vidual under this title and is not furnished on 20
an assignment-related basis, any additional ex-21
penses the individual incurs above the amount 22
the individual would have incurred if the item 23
or service was furnished on an assignment-re-24
lated basis shall not be considered incurred ex-25
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penses for purposes of determining out-of-pock-1
et cost-sharing under paragraph (1). 2
‘‘(3) SOURCE OF PAYMENT.—For purposes of 3
paragraph (1), the Secretary shall consider expenses 4
to be incurred by the individual without regard to 5
whether the individual or another person, including 6
a State program or other third-party coverage, has 7
paid for such expenses.’’. 8
(b) ELIMINATION OF PARTS A AND B 9
DEDUCTIBLES.— 10
(1) PART A.—Section 1813(b) of the Social Se-11
curity Act (42 U.S.C. 1395e(b)) is amended by add-12
ing at the end the following new paragraph: 13
‘‘(4) For each year (beginning January 1 of the year 14
following the date of enactment of the Medicare for All 15
Act of 2019), the inpatient hospital deductible for the year 16
shall be $0.’’. 17
(2) PART B.—Section 1833(b) of the Social Se-18
curity Act (42 U.S.C. 1395l(b)) is amended, in the 19
first sentence— 20
(A) by striking ‘‘and for a subsequent 21
year’’ and inserting ‘‘for each of 2006 through 22
the year that includes the date of enactment of 23
the Medicare for All Act of 2019’’; and 24
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(B) by inserting ‘‘, and $0 for each year 1
subsequent year’’ after ‘‘$1)’’. 2
SEC. 1012. REDUCTION IN MEDICARE PART D ANNUAL OUT- 3
OF-POCKET THRESHOLD AND ELIMINATION 4
OF COST-SHARING ABOVE THAT THRESHOLD. 5
(a) REDUCTION.—Section 1860D–2(b)(4)(B) of the 6
Social Security Act (42 U.S.C. 1395w–102(b)(4)(B)) is 7
amended— 8
(1) in clause (i), by striking ‘‘For purposes’’ 9
and inserting ‘‘Subject to clause (iii), for purposes’’; 10
and 11
(2) by adding at the end the following new 12
clause: 13
‘‘(iii) REDUCTION IN THRESHOLD 14
DURING TRANSITION PERIOD.— 15
‘‘(I) IN GENERAL.—Subject to 16
subclause (II), for plan years begin-17
ning on or after January 1 following 18
the date of enactment of the Medicare 19
for All Act of 2019 and before Janu-20
ary 1 of the year that is 4 years fol-21
lowing such date of enactment, not-22
withstanding clauses (i) and (ii), the 23
‘annual out-of-pocket threshold’ speci-24
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fied in this subparagraph is equal to 1
$305. 2
‘‘(II) AUTHORITY TO EXEMPT 3
BRAND-NAME DRUGS IF GENERIC 4
AVAILABLE.—In applying subclause 5
(I), the Secretary may exempt costs 6
incurred for a covered part D drug 7
that is an applicable drug under sec-8
tion 1860D–14A(g)(2) if the Sec-9
retary determines that a generic 10
version of that drug is available.’’. 11
(b) ELIMINATION OF COST-SHARING.—Section 12
1860D–2(b)(4)(A) of the Social Security Act (42 U.S.C. 13
1395w–102(b)(4)(A)) is amended— 14
(1) in clause (i)— 15
(A) by redesignating subclauses (I) and 16
(II) as items (aa) and (bb), respectively; 17
(B) by striking ‘‘subparagraph (B), with 18
cost-sharing’’ and inserting the following: ‘‘sub-19
paragraph (B)— 20
‘‘(I) for plan years 2006 through 21
the plan year ending December 31 fol-22
lowing the date of enactment of the 23
Medicare for All Act of 2019, with 24
cost-sharing’’; 25
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(C) in item (bb), as redesignated by sub-1
paragraph (A), by striking the period at the 2
end and inserting ‘‘; and’’; and 3
(D) by adding at the end the following new 4
subclause: 5
‘‘(II) for the plan year beginning 6
January 1 following the date of enact-7
ment of the Medicare for All Act of 8
2019 and the two subsequent plan 9
years, without any cost-sharing.’’; and 10
(2) in clause (ii)— 11
(A) by striking ‘‘clause (i)(I)’’ and insert-12
ing ‘‘clause (i)(I)(aa)’’; and 13
(B) by adding at the end the following new 14
sentence: ‘‘The Secretary shall continue to cal-15
culate the dollar amounts specified in clause 16
(i)(I)(aa), including with the adjustment under 17
this clause, after plan year 2018 for purposes 18
of 1860D–14(a)(1)(D)(iii).’’. 19
(c) CONFORMING AMENDMENTS TO LOW-INCOME 20
SUBSIDY.—Section 1860D–14(a) of the Social Security 21
Act (42 U.S.C. 1395w–114(a)) is amended— 22
(1) in paragraph (1)— 23
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(A) in subparagraph (D)(iii), by striking 1
‘‘1860D–2(b)(4)(A)(i)(I)’’ and inserting 2
‘‘1860D–2(b)(4)(A)(i)(I)(aa)’’; and 3
(B) in subparagraph (E)— 4
(i) in the heading, by inserting 5
‘‘PRIOR TO THE ELIMINATION OF SUCH 6
COST-SHARING FOR ALL INDIVIDUALS’’ 7
after ‘‘THRESHOLD’’; and 8
(ii) by striking ‘‘The elimination’’ and 9
inserting ‘‘For plan years 2006 through 10
the plan year ending December 31 fol-11
lowing the date of enactment of the Medi-12
care for All Act of 2019, the elimination’’; 13
and 14
(2) in paragraph (2)(E)— 15
(A) in the heading, by inserting ‘‘PRIOR TO 16
THE ELIMINATION OF SUCH COST-SHARING FOR 17
ALL INDIVIDUALS’’ after ‘‘THRESHOLD’’; 18
(B) by striking ‘‘Subject to’’ and inserting 19
‘‘For plan years 2006 through the plan year 20
ending December 31 following the date of en-21
actment of the Medicare for All Act of 2019, 22
subject to’’; and 23
(C) by striking ‘‘1860D–2(b)(4)(A)(i)(I)’’ 24
and inserting ‘‘1860D–2(b)(4)(A)(i)(I)(aa)’’. 25
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SEC. 1013. COVERAGE OF DENTAL AND VISION SERVICES 1
AND HEARING AIDS AND EXAMINATIONS 2
UNDER MEDICARE PART B. 3
(a) DENTAL SERVICES.— 4
(1) REMOVAL OF EXCLUSION FROM COV-5
ERAGE.—Section 1862(a) of the Social Security Act 6
(42 U.S.C. 1395y(a)) is amended by striking para-7
graph (12). 8
(2) COVERAGE.— 9
(A) IN GENERAL.—Section 1861(s)(2) of 10
the Social Security Act (42 U.S.C. 1395x(s)(2)) 11
is amended— 12
(i) in subparagraph (GG), by striking 13
‘‘and’’ at the end; 14
(ii) in subparagraph (HH), by strik-15
ing the period at the end and inserting ‘‘; 16
and’’; and 17
(iii) by adding at the end the fol-18
lowing new subparagraph: 19
‘‘(II) dental services;’’. 20
(B) PAYMENT.—Section 1833(a)(1) of the 21
Social Security Act (42 U.S.C. 1395l(a)(1)) is 22
amended— 23
(i) by striking ‘‘and’’ before ‘‘(CC)’’; 24
and 25
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(ii) by inserting before the semicolon 1
at the end the following: ‘‘, and (DD) with 2
respect to dental services described in sec-3
tion 1861(s)(2)(II), the amount paid shall 4
be an amount equal to 80 percent of the 5
lesser of the actual charge for the services 6
or the amount determined under the fee 7
schedule established under section 8
1848(b).’’. 9
(C) EFFECTIVE DATE.—The amendments 10
made by this subsection shall apply to items 11
and services furnished on or after January 1 12
following the date of the enactment of this Act. 13
(b) VISION SERVICES.— 14
(1) IN GENERAL.—Section 1861(s)(2) of the 15
Social Security Act (42 U.S.C. 1395x(s)(2)), as 16
amended by subsection (a), is amended— 17
(A) in subparagraph (HH), by striking 18
‘‘and’’ at the end; 19
(B) in subparagraph (II), by inserting 20
‘‘and’’ at the end; and 21
(C) by adding at the end the following new 22
subparagraph: 23
‘‘(JJ) vision services;’’. 24
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(2) PAYMENT.—Section 1833(a)(1) of the So-1
cial Security Act (42 U.S.C. 1395l(a)(1)), as amend-2
ed by subsection (a), is amended— 3
(A) by striking ‘‘and’’ before ‘‘(DD)’’; and 4
(B) by inserting before the semicolon at 5
the end the following: ‘‘, and (EE) with respect 6
to vision services described in section 7
1861(s)(2)(JJ), the amount paid shall be an 8
amount equal to 80 percent of the lesser of the 9
actual charge for the services or the amount de-10
termined under the fee schedule established 11
under section 1848(b).’’. 12
(3) EFFECTIVE DATE.—The amendments made 13
by this subsection shall apply to items and services 14
furnished on or after January 1 following the date 15
of the enactment of this Act. 16
(c) HEARING AIDS AND EXAMINATIONS THERE-17
FOR.— 18
(1) IN GENERAL.—Section 1862(a)(7) of the 19
Social Security Act (42 U.S.C. 1395y(a)(7)) is 20
amended by striking ‘‘hearing aids or examinations 21
therefor,’’. 22
(2) EFFECTIVE DATE.—The amendment made 23
by this subsection shall apply to items and services 24
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furnished on or after January 1 following the date 1
of the enactment of this Act. 2
SEC. 1014. ELIMINATING THE 24-MONTH WAITING PERIOD 3
FOR MEDICARE COVERAGE FOR INDIVID-4
UALS WITH DISABILITIES. 5
(a) IN GENERAL.—Section 226(b) of the Social Secu-6
rity Act (42 U.S.C. 426(b)) is amended— 7
(1) in paragraph (2)(A), by striking ‘‘, and has 8
for 24 calendar months been entitled to,’’; 9
(2) in paragraph (2)(B), by striking ‘‘, and has 10
been for not less than 24 months,’’; 11
(3) in paragraph (2)(C)(ii), by striking ‘‘, in-12
cluding the requirement that he has been entitled to 13
the specified benefits for 24 months,’’; 14
(4) in the first sentence, by striking ‘‘for each 15
month beginning with the later of (I) July 1973 or 16
(II) the twenty-fifth month of his entitlement or sta-17
tus as a qualified railroad retirement beneficiary de-18
scribed in paragraph (2), and’’ and inserting ‘‘for 19
each month for which the individual meets the re-20
quirements of paragraph (2), beginning with the 21
month following the month in which the individual 22
meets the requirements of such paragraph, and’’; 23
and 24
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(5) in the second sentence, by striking ‘‘the 1
‘twenty-fifth month of his entitlement’’’ and all that 2
follows through ‘‘paragraph (2)(C) and’’. 3
(b) CONFORMING AMENDMENTS.— 4
(1) SECTION 226.—Section 226 of the Social 5
Security Act (42 U.S.C. 426) is amended by— 6
(A) striking subsections (e)(1)(B), (f), and 7
(h); and 8
(B) redesignating subsections (g) and (i) 9
as subsections (f) and (g), respectively. 10
(2) MEDICARE DESCRIPTION.—Section 1811(2) 11
of the Social Security Act (42 U.S.C. 1395c(2)) is 12
amended by striking ‘‘have been entitled for not less 13
than 24 months’’ and inserting ‘‘are entitled’’. 14
(3) MEDICARE COVERAGE.—Section 1837(g)(1) 15
of the Social Security Act (42 U.S.C. 1395p(g)(1)) 16
is amended by striking ‘‘25th month of’’ and insert-17
ing ‘‘month following the first month of’’. 18
(4) RAILROAD RETIREMENT SYSTEM.—Section 19
7(d)(2)(ii) of the Railroad Retirement Act of 1974 20
(45 U.S.C. 231f(d)(2)(ii)) is amended— 21
(A) by striking ‘‘has been entitled to an 22
annuity’’ and inserting ‘‘is entitled to an annu-23
ity’’; 24
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(B) by striking ‘‘, for not less than 24 1
months’’; and 2
(C) by striking ‘‘could have been entitled 3
for 24 calendar months, and’’. 4
(c) EFFECTIVE DATE.—The amendments made by 5
this section shall apply to insurance benefits under title 6
XVIII of the Social Security Act with respect to items and 7
services furnished in months beginning after December 1 8
following the date of enactment of this Act, and before 9
January 1 of the year that is 4 years after such date of 10
enactment. 11
SEC. 1015. GUARANTEED ISSUE OF MEDIGAP POLICIES. 12
Section 1882 of the Social Security Act (42 U.S.C. 13
1395ss) is amended by adding at the end the following 14
new subsection: 15
‘‘(aa) GUARANTEED ISSUE FOR ALL MEDIGAP-ELI-16
GIBLE MEDICARE BENEFICIARIES.—Notwithstanding 17
paragraphs (2)(A) and (2)(D) of subsection (s) or any 18
other provision of this section, on or after the date of en-19
actment of this subsection, the issuer of a medicare sup-20
plemental policy may not deny or condition the issuance 21
or effectiveness of a medicare supplemental policy, or dis-22
criminate in the pricing of the policy, because of health 23
status, claims experience, receipt of health care, or medical 24
condition in the case of any individual entitled to, or en-25
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rolled for, benefits under part A and enrolled for benefits 1
under part B.’’. 2
Subtitle C—Private Health Insur-3
ance Availability During Transi-4
tional Period 5
SEC. 1021. CONTINUITY OF CARE. 6
(a) IN GENERAL.—The Secretary shall ensure that 7
all individuals enrolled in, or who seek to enroll in, a group 8
health plan, health insurance coverage offered by a health 9
insurance issuer, or the plan established under section 10
1002 during the transition period of this Act are protected 11
from disruptions in their care during the transition period. 12
(b) PUBLIC CONSULTATION DURING TRANSITION.— 13
The Secretary shall consult with communities and advo-14
cacy organizations of individuals living with disabilities 15
and other patient advocacy organizations to ensure the 16
transition described in this section takes into account the 17
continuity of care for individuals with disabilities, complex 18
medical needs, or chronic conditions. 19
(c) DEFINITIONS.—In this section, the terms ‘‘health 20
insurance coverage’’, ‘‘health insurance issuer’’, and 21
‘‘group health plans’’ have the meanings given such terms 22
in section 2791 of the Public Health Service Act (42 23
U.S.C. 300gg–91). 24
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TITLE XI—MISCELLANEOUS 1
SEC. 1101. UPDATING RESOURCE LIMITS FOR SUPPLE-2
MENTAL SECURITY INCOME ELIGIBILITY 3
(SSI). 4
Section 1611(a)(3) of the Social Security Act (42 5
U.S.C. 1382(a)(3)) is amended— 6
(1) in subparagraph (A)— 7
(A) by striking ‘‘and’’ after ‘‘January 1, 8
1988,’’; and 9
(B) by inserting ‘‘, and to $6,200 on Janu-10
ary 1, 2019’’ before the period; 11
(2) in subparagraph (B)— 12
(A) by striking ‘‘and’’ after ‘‘January 1, 13
1988,’’; and 14
(B) by inserting ‘‘, and to $4,100 on Janu-15
ary 1, 2019’’ before the period; and 16
(3) by adding at the end the following new sub-17
paragraph: 18
‘‘(C) Beginning with December of 2019, when-19
ever the dollar amounts in effect under paragraphs 20
(1)(A) and (2)(A) of this subsection are increased 21
for a month by a percentage under section 22
1617(a)(2), each of the dollar amounts in effect 23
under this paragraph shall be increased, effective 24
with such month, by the same percentage (and 25
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rounded, if not a multiple of $10, to the closest mul-1
tiple of $10). Each increase under this subparagraph 2
shall be based on the unrounded amount for the 3
prior 12-month period.’’. 4
SEC. 1102. DEFINITIONS. 5
In this Act— 6
(1) the term ‘‘Secretary’’ means the Secretary 7
of Health and Human Services; 8
(2) the term ‘‘State’’ means a State, the Dis-9
trict of Columbia, or a territory of the United 10
States; and 11
(3) the term ‘‘United States’’ shall include the 12
States, the District of Columbia, and the territories 13
of the United States. 14
Æ
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1.1 A bill for an act
1.2 relating to health; guaranteeing that health care is available and affordable for
1.3 every Minnesotan; establishing the Minnesota Health Plan, Minnesota Health
1.4 Board, Minnesota Health Fund, Office of Health Quality and Planning, ombudsman
1.5 for patient advocacy, and auditor general for the Minnesota Health Plan; requesting
1.6 a 1332 waiver; authorizing rulemaking; appropriating money; amending Minnesota
Statutes 2018, sections 13.3806, by adding a subdivision; 14.03, subdivisions 2,
3; 15A.0815, subdivision 2; proposing coding for new law as Minnesota Statutes,
chapter 62W.
1.10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 ARTICLE 1
1.12 MINNESOTA HEALTH PLAN
1.13 Section 1. [62W.01] HEALTH PLAN REQUIREMENTS.
1.14 In order to keep Minnesota residents healthy and provide the best quality of health care,
1.15 the Minnesota Health Plan must:
1.16 (1) ensure all Minnesota residents are covered;
1.17 (2) cover all necessary care, including dental, vision and hearing, mental health, chemical
1.18 dependency treatment, prescription drugs, medical equipment and supplies, long-term care,
1.19 and home care;
1.20 (3) allow patients to choose their providers;
1.21 (4) reduce costs by negotiating fair prices and by cutting administrative bureaucracy,
1.22 not by restricting or denying care;
1.23 (5) be affordable to all through premiums based on ability to pay and elimination of
1.24 co-pays;
1Article 1 Section 1.
REVISOR SGS/TM 19-034101/17/19
State of MinnesotaThis Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 1200NINETY-FIRST SESSION
Authored by Mann, Hausman, Schultz, Koegel, Hassan and others02/14/2019
The bill was read for the first time and referred to the Committee on Health and Human Services Policy
2.1 (6) focus on preventive care and early intervention to improve health;
2.2 (7) ensure that there are enough health care providers to guarantee timely access to care;
2.3 (8) continue Minnesota's leadership in medical education, research, and technology;
2.4 (9) provide adequate and timely payments to providers; and
2.5 (10) use a simple funding and payment system.
2.6 Sec. 2. [62W.02] MINNESOTA HEALTH PLAN GENERAL PROVISIONS.
2.7 Subdivision 1.Short title.This chapter may be cited as the "Minnesota Health Plan."
2.8 Subd. 2.Purpose.The Minnesota Health Plan shall provide all medically necessary
2.9 health care services for all Minnesota residents in a manner that meets the requirements in
2.10 section 62W.01.
2.11 Subd. 3.Definitions.As used in this chapter, the following terms have the meanings
2.12 provided:
2.13 (a) "Board" means the Minnesota Health Board.
2.14 (b) "Plan" means the Minnesota Health Plan.
2.15 (c) "Fund" means the Minnesota Health Fund.
2.16 (d) "Medically necessary" means services or supplies needed to promote health and to
2.17 prevent, diagnose, or treat a particular patient's medical condition that meet accepted
2.18 standards of medical practice within a provider's professional peer group and geographic
2.19 region.
2.20 (e) "Institutional provider" means an inpatient hospital, nursing facility, rehabilitation
2.21 facility, and other health care facilities that provide overnight care.
2.22 (f) "Noninstitutional provider" means individual providers, group practices, clinics,
2.23 outpatient surgical centers, imaging centers, and other health facilities that do not provide
2.24 overnight care.
2.25 ARTICLE 2
2.26 ELIGIBILITY
2.27 Section 1. [62W.03] ELIGIBILITY.
2.28 Subdivision 1.Residency.All Minnesota residents are eligible for the Minnesota Health
2.29 Plan.
2Article 2 Section 1.
REVISOR SGS/TM 19-034101/17/19
3.1 Subd. 2.Enrollment; identification.The Minnesota Health Board shall establish a
3.2 procedure to enroll residents and provide each with identification that may be used by health
3.3 care providers to confirm eligibility for services. The application for enrollment shall be no
3.4 more than two pages.
3.5 Subd. 3.Residents temporarily out of state.(a) The Minnesota Health Plan shall
3.6 provide health care coverage to Minnesota residents who are temporarily out of the state
3.7 who intend to return and reside in Minnesota.
3.8 (b) Coverage for emergency care obtained out of state shall be at prevailing local rates.
3.9 Coverage for nonemergency care obtained out of state shall be according to rates and
3.10 conditions established by the board. The board may require that a resident be transported
3.11 back to Minnesota when prolonged treatment of an emergency condition is necessary and
3.12 when that transport will not adversely affect a patient's care or condition.
3.13 Subd. 4.Visitors.Nonresidents visiting Minnesota shall be billed by the board for all
3.14 services received under the Minnesota Health Plan. The board may enter into
3.15 intergovernmental arrangements or contracts with other states and countries to provide
3.16 reciprocal coverage for temporary visitors.
3.17 Subd. 5.Nonresident employed in Minnesota.The board shall extend eligibility to
3.18 nonresidents employed in Minnesota under a premium schedule set by the board.
3.19 Subd. 6.Business outside of Minnesota employing Minnesota residents.The board
3.20 shall apply for a federal waiver to collect the employer contribution mandated by federal
3.21 law.
3.22 Subd. 7.Retiree benefits.(a) All persons who are eligible for retiree medical benefits
3.23 under an employer-employee contract shall remain eligible for those benefits provided the
3.24 contractually mandated payments for those benefits are made to the Minnesota Health Fund,
3.25 which shall assume financial responsibility for care provided under the terms of the contract
3.26 along with additional health benefits covered by the Minnesota Health Plan. Retirees who
3.27 elect to reside outside of Minnesota shall be eligible for benefits under the terms and
3.28 conditions of the retiree's employer-employee contract.
3.29 (b) The board may establish financial arrangements with states and foreign countries in
3.30 order to facilitate meeting the terms of the contracts described in paragraph (a). Payments
3.31 for care provided by non-Minnesota providers to Minnesota retirees shall be reimbursed at
3.32 rates established by the Minnesota Health Board. Providers who accept any payment from
3.33 the Minnesota Health Plan for a covered service shall not bill the patient for the covered
3.34 service.
3Article 2 Section 1.
REVISOR SGS/TM 19-034101/17/19
4.1 Subd. 8.Presumptive eligibility.(a) An individual is presumed eligible for coverage
4.2 under the Minnesota Health Plan if the individual arrives at a health facility unconscious,
4.3 comatose, or otherwise unable, because of the individual's physical or mental condition, to
4.4 document eligibility or to act on the individual's own behalf. If the patient is a minor, the
4.5 patient is presumed eligible, and the health facility shall provide care as if the patient were
4.6 eligible.
4.7 (b) Any individual is presumed eligible when brought to a health facility according to
4.8 any provision of section 253B.05.
4.9 (c) Any individual involuntarily committed to an acute psychiatric facility or to a hospital
4.10 with psychiatric beds according to any provision of section 253B.05, providing for
4.11 involuntary commitment, is presumed eligible.
4.12 (d) All health facilities subject to state and federal provisions governing emergency
4.13 medical treatment must comply with those provisions.
4.14 Subd. 9.Data.Data collected because an individual applies for or is enrolled in the
4.15 Minnesota Health Plan are private data on individuals as defined in section 13.02, subdivision
4.16 12, but may be released to:
4.17 (1) providers for purposes of confirming enrollment and processing payments for benefits;
4.18 (2) the ombudsman for patient advocacy for purposes of performing duties under section
4.19 62W.12 or 62W.13; or
4.20 (3) the auditor general for purposes of performing duties under section 62W.14.
4.21 Sec. 2. Minnesota Statutes 2018, section 13.3806, is amended by adding a subdivision to
4.22 read:
4.23 Subd. 1d.Minnesota Health Plan.Data on enrollees under the Minnesota Health Plan
4.24 are classified under sections 62W.03, subdivision 9, and 62W.13, subdivision 6.
4.25 ARTICLE 3
4.26 BENEFITS
4.27 Section 1. [62W.04] BENEFITS.
4.28 Subdivision 1.General provisions.Any eligible individual may choose to receive
4.29 services under the Minnesota Health Plan from any participating provider.
4Article 3 Section 1.
REVISOR SGS/TM 19-034101/17/19
5.1 Subd. 2.Covered benefits.Covered health care benefits in this chapter include all
5.2 medically necessary care subject to the limitations specified in subdivision 4. Covered health
5.3 care benefits for Minnesota Health Plan enrollees include:
5.4 (1) inpatient and outpatient health facility services;
5.5 (2) inpatient and outpatient professional health care provider services;
5.6 (3) diagnostic imaging, laboratory services, and other diagnostic and evaluative services;
5.7 (4) medical equipment, appliances, and assistive technology, including prosthetics,
5.8 eyeglasses, and hearing aids, their repair, technical support, and customization needed for
5.9 individual use;
5.10 (5) inpatient and outpatient rehabilitative care;
5.11 (6) emergency care services;
5.12 (7) emergency transportation;
5.13 (8) necessary transportation for health care services for persons with disabilities or who
5.14 may qualify as low income;
5.15 (9) child and adult immunizations and preventive care;
5.16 (10) health and wellness education;
5.17 (11) hospice care;
5.18 (12) care in a skilled nursing facility;
5.19 (13) home health care including health care provided in an assisted living facility;
5.20 (14) mental health services;
5.21 (15) substance abuse treatment;
5.22 (16) dental care;
5.23 (17) vision care;
5.24 (18) hearing care;
5.25 (19) prescription drugs;
5.26 (20) podiatric care;
5.27 (21) chiropractic care;
5.28 (22) acupuncture;
5Article 3 Section 1.
REVISOR SGS/TM 19-034101/17/19
6.1 (23) therapies which are shown by the National Institutes of Health National Center for
6.2 Complementary and Integrative Health to be safe and effective;
6.3 (24) blood and blood products;
6.4 (25) dialysis;
6.5 (26) adult day care;
6.6 (27) rehabilitative and habilitative services;
6.7 (28) ancillary health care or social services previously covered by Minnesota's public
6.8 health programs;
6.9 (29) case management and care coordination;
6.10 (30) language interpretation and translation for health care services, including sign
6.11 language and Braille or other services needed for individuals with communication barriers;
6.12 and
6.13 (31) those health care and long-term supportive services currently covered under
6.14 Minnesota Statutes 2016, chapter 256B, for persons on medical assistance, including home
6.15 and community-based waivered services under chapter 256B.
6.16 Subd. 3.Benefit expansion.The Minnesota Health Board may expand health care
6.17 benefits beyond the minimum benefits described in this section when expansion meets the
6.18 intent of this chapter and when there are sufficient funds to cover the expansion.
6.19 Subd. 4.Cost-sharing for the room and board portion of long-term care.The
6.20 Minnesota Health Board shall develop income and asset qualifications based on medical
6.21 assistance standards for covered benefits under subdivision 2, clauses (12) and (13). All
6.22 health care services for long-term care in a skilled nursing facility or assisted living facility
6.23 are fully covered but, notwithstanding section 62W.20, subdivision 6, room and board costs
6.24 may be charged to patients who do not meet income and asset qualifications.
6.25 Subd. 5.Exclusions.The following health care services shall be excluded from coverage
6.26 by the Minnesota Health Plan:
6.27 (1) health care services determined to have no medical benefit by the board;
6.28 (2) treatments and procedures primarily for cosmetic purposes, unless required to correct
6.29 a congenital defect, restore or correct a part of the body that has been altered as a result of
6.30 injury, disease, or surgery, or determined to be medically necessary by a qualified, licensed
6.31 health care provider in the Minnesota Health Plan; and
6Article 3 Section 1.
REVISOR SGS/TM 19-034101/17/19
7.1 (3) services of a health care provider or facility that is not licensed or accredited by the
7.2 state, except for approved services provided to a Minnesota resident who is temporarily out
7.3 of the state.
7.4 Subd. 6.Prohibition.The Minnesota Health Plan shall not pay for drugs requiring a
7.5 prescription if the pharmaceutical companies directly market those drugs to consumers in
7.6 Minnesota.
7.7 Sec. 2. [62W.041] PATIENT CARE.
7.8 (a) All patients shall have a primary care provider and have access to care coordination.
7.9 (b) Referrals are not required for a patient to see a health care specialist. If a patient sees
7.10 a specialist and does not have a primary care provider, the Minnesota Health Plan may assist
7.11 with choosing a primary care provider.
7.12 (c) The board may establish a computerized registry to assist patients in identifying
7.13 appropriate providers.
7.14 ARTICLE 4
7.15 FUNDING
7.16 Section 1. [62W.19] MINNESOTA HEALTH FUND.
7.17 Subdivision 1.General provisions.(a) The Minnesota Health Fund, a revolving fund,
7.18 is established under the jurisdiction and control of the Minnesota Health Board to implement
7.19 the Minnesota Health Plan and to receive premiums and other sources of revenue. The fund
7.20 shall be administered by a director appointed by the Minnesota Health Board.
7.21 (b) All money collected, received, and transferred according to this chapter shall be
7.22 deposited in the Minnesota Health Fund.
7.23 (c) Money deposited in the Minnesota Health Fund shall be used exclusively to finance
7.24 the Minnesota Health Plan.
7.25 (d) All claims for health care services rendered shall be made to the Minnesota Health
7.26 Fund.
7.27 (e) All payments made for health care services shall be disbursed from the Minnesota
7.28 Health Fund.
7.29 (f) Premiums and other revenues collected each year must be sufficient to cover that
7.30 year's projected costs.
7Article 4 Section 1.
REVISOR SGS/TM 19-034101/17/19
8.1 Subd. 2.Accounts.The Minnesota Health Fund shall have operating, capital, and reserve
8.2 accounts.
8.3 Subd. 3.Operating account.The operating account in the Minnesota Health Fund shall
8.4 be comprised of the accounts specified in paragraphs (a) to (e).
8.5 (a) Medical services account. The medical services account must be used to provide
8.6 for all medical services and benefits covered under the Minnesota Health Plan.
8.7 (b) Prevention account. The prevention account must be used to establish and maintain
8.8 primary community prevention programs, including preventive screening tests.
8.9 (c) Program administration, evaluation, planning, and assessment account. The
8.10 program administration, evaluation, planning, and assessment account must be used to
8.11 monitor and improve the plan's effectiveness and operations. The board may establish grant
8.12 programs including demonstration projects for this purpose.
8.13 (d) Training and development account. The training and development account must
8.14 be used to incentivize the training and development of health care providers and the health
8.15 care workforce needed to meet the health care needs of the population.
8.16 (e) Health service research account. The health service research account must be used
8.17 to support research and innovation as determined by the Minnesota Health Board, and
8.18 recommended by the Office of Health Quality and Planning and the Ombudsman for Patient
8.19 Advocacy.
8.20 Subd. 4.Capital account.The capital account must be used to pay for capital
8.21 expenditures for institutional providers.
8.22 Subd. 5.Reserve account.(a) The Minnesota Health Plan must at all times hold in
8.23 reserve an amount estimated in the aggregate to provide for the payment of all losses and
8.24 claims for which the Minnesota Health Plan may be liable and to provide for the expense
8.25 of adjustment or settlement of losses and claims.
8.26 (b) Money currently held in reserve by state, city, and county health programs must be
8.27 transferred to the Minnesota Health Fund when the Minnesota Health Plan replaces those
8.28 programs.
8.29 (c) The board shall have provisions in place to insure the Minnesota Health Plan against
8.30 unforeseen expenditures or revenue shortfalls not covered by the reserve account. The board
8.31 may borrow money to cover temporary shortfalls.
8Article 4 Section 1.
REVISOR SGS/TM 19-034101/17/19
9.1 Subd. 6.Assets of the Minnesota Health Plan; functions of the commissioner of
9.2 Minnesota Management and Budget.All money received by the Minnesota Health Fund
9.3 shall be paid to the commissioner of Minnesota Management and Budget as agent of the
9.4 board who shall not commingle these funds with any other money. The money in these
9.5 accounts shall be paid out on warrants drawn by the commissioner on requisition by the
9.6 board.
9.7 Subd. 7.Management.The Minnesota Health Fund shall be separate from the state
9.8 treasury. Management of the fund shall be conducted by the Minnesota Health Board, which
9.9 has exclusive authority over the fund.
9.10 Sec. 2. [62W.20] REVENUE SOURCES.
9.11 Subdivision 1.Minnesota Health Plan premium.(a) The Minnesota Health Board
9.12 shall:
9.13 (1) determine the aggregate cost of providing health care according to this chapter;
9.14 (2) develop an equitable and affordable premium structure based on income, including
9.15 unearned income, and a business health tax;
9.16 (3) in consultation with the Department of Revenue, develop an efficient means of
9.17 collecting premiums and the business health tax; and
9.18 (4) coordinate with existing, ongoing funding sources from federal and state programs.
9.19 (b) The premium structure must be based on ability to pay.
9.20 (c) On or before January 15, 2017, the board shall submit to the governor and the
9.21 legislature a report on the premium and business health tax structure established to finance
9.22 the Minnesota Health Plan.
9.23 Subd. 2.Federal receipts.All federal funding received by Minnesota including the
9.24 premium subsidies under the Affordable Care Act, Public Law 111-148, as amended by
9.25 Public Law 111-152, is appropriated to the Minnesota Health Plan Board to be used to
9.26 administer the Minnesota Health Plan under chapter 62W. Federal funding that is received
9.27 for implementing and administering the Minnesota Health Plan must be used to provide
9.28 health care for Minnesota residents.
9.29 Subd. 3.Funds from outside sources.Institutional providers operating under Minnesota
9.30 Health Plan operating budgets may raise and expend funds from sources other than the
9.31 Minnesota Health Plan including private or foundation donors. Contributions to providers
9.32 in excess of $500,000 must be reported to the board.
9Article 4 Sec. 2.
REVISOR SGS/TM 19-034101/17/19
10.1 Subd. 4.Governmental payments.The chief executive officer and, if required under
10.2 federal law, the commissioners of health, human services, and commerce shall seek all
10.3 necessary waivers, exemptions, agreements, or legislation so that all current federal payments
10.4 to the state, including the premium tax credits under the Affordable Care Act, are paid
10.5 directly to the Minnesota Health Plan. When any required waivers, exemptions, agreements,
10.6 or legislation are obtained, the Minnesota Health Plan shall assume responsibility for all
10.7 health care benefits and health care services previously paid for with federal funds. In
10.8 obtaining the waivers, exemptions, agreements, or legislation, the chief executive officer
10.9 and, if required, commissioners shall seek from the federal government a contribution for
10.10 health care services in Minnesota that reflects: medical inflation, the state gross domestic
10.11 product, the size and age of the population, the number of residents living below the poverty
10.12 level, and the number of Medicare and VA eligible individuals, and that does not decrease
10.13 in relation to the federal contribution to other states as a result of the waivers, exemptions,
10.14 agreements, or savings from implementation of the Minnesota Health Plan.
10.15 Subd. 5.Federal preemption.(a) The board shall secure a repeal or a waiver of any
10.16 provision of federal law that preempts any provision of this chapter. The commissioners of
10.17 health, human services, and commerce shall provide all necessary assistance.
10.18 (b) In the section 1332 waiver application, the board shall request to waive any of the
10.19 following provisions of the Patient Protection and Affordable Care Act, to the extent
10.20 necessary to implement this act:
10.21 (1) United States Code, title 42, sections 18021 to 18024;
10.22 (2) United States Code, title 42, sections 18031 to 18033;
10.23 (3) United States Code, title 42, section 18071; and
10.24 (4) sections 36B and 5000A of the Internal Revenue Code of 1986, as amended.
10.25 (c) In the event that a repeal or a waiver of law or regulations cannot be secured, the
10.26 board shall adopt rules, or seek conforming state legislation, consistent with federal law, in
10.27 an effort to best fulfill the purposes of this chapter.
10.28 (d) The Minnesota Health Plan's responsibility for providing care shall be secondary to
10.29 existing federal government programs for health care services to the extent that funding for
10.30 these programs is not transferred to the Minnesota Health Fund or that the transfer is delayed
10.31 beyond the date on which initial benefits are provided under the Minnesota Health Plan.
10.32 Subd. 6.No cost-sharing.No deductible, co-payment, coinsurance, or other cost-sharing
10.33 shall be imposed with respect to covered benefits.
10Article 4 Sec. 2.
REVISOR SGS/TM 19-034101/17/19
11.1 Sec. 3. [62W.21] SUBROGATION.
11.2 Subdivision 1.Collateral source.(a) When other payers for health care have been
11.3 terminated, health care costs shall be collected from collateral sources whenever medical
11.4 services provided to an individual are, or may be, covered services under a policy of
11.5 insurance, or other collateral source available to that individual, or when the individual has
11.6 a right of action for compensation permitted under law.
11.7 (b) As used in this section, collateral source includes:
11.8 (1) health insurance policies and the medical components of automobile, homeowners,
11.9 and other forms of insurance;
11.10 (2) medical components of worker's compensation;
11.11 (3) pension plans;
11.12 (4) employer plans;
11.13 (5) employee benefit contracts;
11.14 (6) government benefit programs;
11.15 (7) a judgment for damages for personal injury;
11.16 (8) the state of last domicile for individuals moving to Minnesota for medical care who
11.17 have extraordinary medical needs; and
11.18 (9) any third party who is or may be liable to an individual for health care services or
11.19 costs.
11.20 (c) Collateral source does not include:
11.21 (1) a contract or plan that is subject to federal preemption; or
11.22 (2) any governmental unit, agency, or service, to the extent that subrogation is prohibited
11.23 by law. An entity described in paragraph (b) is not excluded from the obligations imposed
11.24 by this section by virtue of a contract or relationship with a government unit, agency, or
11.25 service.
11.26 (d) The board shall negotiate waivers, seek federal legislation, or make other arrangements
11.27 to incorporate collateral sources into the Minnesota Health Plan.
11.28 Subd. 2.Notification.When an individual who receives health care services under the
11.29 Minnesota Health Plan is entitled to coverage, reimbursement, indemnity, or other
11.30 compensation from a collateral source, the individual shall notify the health care provider
11.31 and provide information identifying the collateral source, the nature and extent of coverage
11Article 4 Sec. 3.
REVISOR SGS/TM 19-034101/17/19
12.1 or entitlement, and other relevant information. The health care provider shall forward this
12.2 information to the board. The individual entitled to coverage, reimbursement, indemnity,
12.3 or other compensation from a collateral source shall provide additional information as
12.4 requested by the board.
12.5 Subd. 3.Reimbursement.(a) The Minnesota Health Plan shall seek reimbursement
12.6 from the collateral source for services provided to the individual and may institute appropriate
12.7 action, including legal proceedings, to recover the reimbursement. Upon demand, the
12.8 collateral source shall pay to the Minnesota Health Fund the sums it would have paid or
12.9 expended on behalf of the individual for the health care services provided by the Minnesota
12.10 Health Plan.
12.11 (b) In addition to any other right to recovery provided in this section, the board shall
12.12 have the same right to recover the reasonable value of health care benefits from a collateral
12.13 source as provided to the commissioner of human services under section 256B.37.
12.14 (c) If a collateral source is exempt from subrogation or the obligation to reimburse the
12.15 Minnesota Health Plan, the board may require that an individual who is entitled to medical
12.16 services from the source first seek those services from that source before seeking those
12.17 services from the Minnesota Health Plan.
12.18 (d) To the extent permitted by federal law, the board shall have the same right of
12.19 subrogation over contractual retiree health care benefits provided by employers as other
12.20 contracts, allowing the Minnesota Health Plan to recover the cost of health care services
12.21 provided to individuals covered by the retiree benefits, unless arrangements are made to
12.22 transfer the revenues of the health care benefits directly to the Minnesota Health Plan.
12.23 Subd. 4.Defaults, underpayments, and late payments.(a) Default, underpayment, or
12.24 late payment of any tax or other obligation imposed by this chapter shall result in the remedies
12.25 and penalties provided by law, except as provided in this section.
12.26 (b) Eligibility for health care benefits under section 62W.04 shall not be impaired by
12.27 any default, underpayment, or late payment of any premium or other obligation imposed
12.28 by this chapter.
12Article 4 Sec. 3.
REVISOR SGS/TM 19-034101/17/19
13.1 ARTICLE 5
13.2 PAYMENTS
13.3 Section 1. [62W.05] PROVIDER PAYMENTS.
13.4 Subdivision 1.General provisions.(a) All health care providers licensed to practice in
13.5 Minnesota may participate in the Minnesota Health Plan and other providers as determined
13.6 by the board.
13.7 (b) A participating health care provider shall comply with all federal laws and regulations
13.8 governing referral fees and fee splitting including, but not limited to, United States Code,
13.9 title 42, sections 1320a-7b and 1395nn, whether reimbursed by federal funds or not.
13.10 (c) A fee schedule or financial incentive may not adversely affect the care a patient
13.11 receives or the care a health provider recommends.
13.12 Subd. 2.Payments to noninstitutional providers.(a) The Minnesota Health Board
13.13 shall establish and oversee a fair and efficient payment system for noninstitutional providers.
13.14 (b) The board shall pay noninstitutional providers based on rates negotiated with
13.15 providers. Rates shall take into account the need to address provider shortages.
13.16 (c) The board shall establish payment criteria and methods of payment for care
13.17 coordination for patients especially those with chronic illness and complex medical needs.
13.18 (d) Providers who accept any payment from the Minnesota Health Plan for a covered
13.19 health care service shall not bill the patient for the covered health care service.
13.20 (e) Providers shall be paid within 30 business days for claims filed following procedures
13.21 established by the board.
13.22 Subd. 3.Payments to institutional providers.(a) The board shall set annual budgets
13.23 for institutional providers. These budgets shall consist of an operating and a capital budget.
13.24 An institution's annual budget shall be set to cover its anticipated health care services for
13.25 the next year based on past performance and projected changes in prices and health care
13.26 service levels. The annual budget for each individual institutional provider must be set
13.27 separately. The board shall not set a joint budget for a group of more than one institutional
13.28 provider nor for a parent corporation that owns or operates one or more institutional provider.
13.29 (b) Providers who accept any payment from the Minnesota Health Plan for a covered
13.30 health care service shall not bill the patient for the covered health care service.
13.31 Subd. 4.Capital management plan.(a) The board shall periodically develop a capital
13.32 investment plan that will serve as a guide in determining the annual budgets of institutional
13Article 5 Section 1.
REVISOR SGS/TM 19-034101/17/19
14.1 providers and in deciding whether to approve applications for approval of capital expenditures
14.2 by noninstitutional providers.
14.3 (b) Providers who propose to make capital purchases in excess of $500,000 must obtain
14.4 board approval. The board may alter the threshold expenditure level that triggers the
14.5 requirement to submit information on capital expenditures. Institutional providers shall
14.6 propose these expenditures and submit the required information as part of the annual budget
14.7 they submit to the board. Noninstitutional providers shall submit applications for approval
14.8 of these expenditures to the board. The board must respond to capital expenditure applications
14.9 in a timely manner.
14.10 ARTICLE 6
14.11 GOVERNANCE
14.12 Section 1. Minnesota Statutes 2018, section 14.03, subdivision 2, is amended to read:
14.13 Subd. 2.Contested case procedures.The contested case procedures of the
14.14 Administrative Procedure Act provided in sections 14.57 to 14.69 do not apply to (a)
14.15 proceedings under chapter 414, except as specified in that chapter, (b) the commissioner of
14.16 corrections, (c) the unemployment insurance program and the Social Security disability
14.17 determination program in the Department of Employment and Economic Development, (d)
14.18 the commissioner of mediation services, (e) the Workers' Compensation Division in the
14.19 Department of Labor and Industry, (f) the Workers' Compensation Court of Appeals, or (g)
14.20 the Board of Pardons, or (h) the Minnesota Health Plan.
14.21 Sec. 2. Minnesota Statutes 2018, section 15A.0815, subdivision 2, is amended to read:
14.22 Subd. 2.Group I salary limits.The salary for a position listed in this subdivision shall
14.23 not exceed 133 percent of the salary of the governor. This limit must be adjusted annually
14.24 on January 1. The new limit must equal the limit for the prior year increased by the percentage
14.25 increase, if any, in the Consumer Price Index for all urban consumers from October of the
14.26 second prior year to October of the immediately prior year. The commissioner of management
14.27 and budget must publish the limit on the department's website. This subdivision applies to
14.28 the following positions:
14.29 Commissioner of administration;
14.30 Commissioner of agriculture;
14.31 Commissioner of education;
14.32 Commissioner of commerce;
14Article 6 Sec. 2.
REVISOR SGS/TM 19-034101/17/19
15.1 Commissioner of corrections;
15.2 Commissioner of health;
15.3 Chief executive officer of the Minnesota Health Plan;
15.4 Commissioner, Minnesota Office of Higher Education;
15.5 Commissioner, Housing Finance Agency;
15.6 Commissioner of human rights;
15.7 Commissioner of human services;
15.8 Commissioner of labor and industry;
15.9 Commissioner of management and budget;
15.10 Commissioner of natural resources;
15.11 Commissioner, Pollution Control Agency;
15.12 Commissioner of public safety;
15.13 Commissioner of revenue;
15.14 Commissioner of employment and economic development;
15.15 Commissioner of transportation; and
15.16 Commissioner of veterans affairs.
15.17 Sec. 3. [62W.06] MINNESOTA HEALTH BOARD.
15.18 Subdivision 1.Establishment.The Minnesota Health Board is established to promote
15.19 the delivery of high quality, coordinated health care services that enhance health; prevent
15.20 illness, disease, and disability; slow the progression of chronic diseases; and improve personal
15.21 health management. The board shall administer the Minnesota Health Plan. The board shall
15.22 oversee:
15.23 (1) the Office of Health Quality and Planning under section 62W.09; and
15.24 (2) the Minnesota Health Fund under section 62W.19.
15.25 Subd. 2.Board composition.(a) The board shall consist of 15 members, including a
15.26 representative selected by each of the five rural regional health planning boards under section
15.27 62W.08 and three representatives selected by the metropolitan regional health planning
15.28 board under section 62W.08. These members shall appoint the following additional members
15.29 to serve on the board:
15Article 6 Sec. 3.
REVISOR SGS/TM 19-034101/17/19
16.1 (1) one patient member and one employer member; and
16.2 (2) five providers that include one physician, one registered nurse, one mental health
16.3 provider, one dentist, and one facility director.
16.4 (b) Each member shall qualify by taking the oath of office to uphold the Minnesota and
16.5 United States Constitution and to operate the Minnesota Health Plan in the public interest
16.6 by upholding the underlying principles of this chapter.
16.7 Subd. 3.Term and compensation; selection of chair.Board members shall serve four
16.8 years. Board members shall set the board's compensation not to exceed the compensation
16.9 of Public Utilities Commission members. The board shall select the chair from its
16.10 membership.
16.11 Subd. 4.Removal of board member.A board member may be removed by a two-thirds
16.12 vote of the members voting on removal. After receiving notice and hearing, a member may
16.13 be removed for malfeasance or nonfeasance in performance of the member's duties.
16.14 Conviction of any criminal behavior regardless of how much time has lapsed is grounds for
16.15 immediate removal.
16.16 Subd. 5.General duties.The board shall:
16.17 (1) ensure that all of the requirements of section 62W.01 are met;
16.18 (2) hire a chief executive officer for the Minnesota Health Plan who shall be qualified
16.19 after taking the oath of office specified in subdivision 2 and who shall administer all aspects
16.20 of the plan as directed by the board;
16.21 (3) hire a director for the Office of Health Quality and Planning who shall be qualified
16.22 after taking the oath of office specified in subdivision 2;
16.23 (4) hire a director of the Minnesota Health Fund who shall be qualified after taking the
16.24 oath of office specified in subdivision 2;
16.25 (5) provide technical assistance to the regional boards established under section 62W.08;
16.26 (6) conduct necessary investigations and inquiries and require the submission of
16.27 information, documents, and records the board considers necessary to carry out the purposes
16.28 of this chapter;
16.29 (7) establish a process for the board to receive the concerns, opinions, ideas, and
16.30 recommendations of the public regarding all aspects of the Minnesota Health Plan and the
16.31 means of addressing those concerns;
16Article 6 Sec. 3.
REVISOR SGS/TM 19-034101/17/19
17.1 (8) conduct other activities the board considers necessary to carry out the purposes of
17.2 this chapter;
17.3 (9) collaborate with the agencies that license health facilities to ensure that facility
17.4 performance is monitored and that deficient practices are recognized and corrected in a
17.5 timely manner;
17.6 (10) adopt rules, policies, and procedures as necessary to carry out the duties assigned
17.7 under this chapter;
17.8 (11) establish conflict of interest standards that prohibit providers from receiving any
17.9 financial benefit from their medical decisions outside of board reimbursement, including
17.10 any financial benefit for referring a patient for any service, product, or provider, or for
17.11 prescribing, ordering, or recommending any drug, product, or service;
17.12 (12) establish conflict of interest standards related to pharmaceuticals, medical supplies
17.13 and devices and their marketing to providers so that no provider receives any incentive to
17.14 prescribe, administer, or use any product or service;
17.15 (13) require all electronic health records used by providers be fully interoperable with
17.16 the open source electronic health records system used by the United States Veterans
17.17 Administration;
17.18 (14) provide financial help and assistance in retraining and job placement to Minnesota
17.19 workers who may be displaced because of the administrative efficiencies of the Minnesota
17.20 Health Plan;
17.21 (15) ensure that assistance is provided to all workers and communities who may be
17.22 affected by provisions in this chapter; and
17.23 (16) work with the Department of Employment and Economic Development (DEED)
17.24 to ensure that funding and program services are promptly and efficiently distributed to all
17.25 affected workers. DEED shall monitor and report on a regular basis on the status of displaced
17.26 workers.
17.27 There is currently a serious shortage of providers in many health care professions, from
17.28 medical technologists to registered nurses, and many potentially displaced health
17.29 administrative workers already have training in some medical field. To alleviate these
17.30 shortages, the dislocated worker support program should emphasize retraining and placement
17.31 into health care related positions if appropriate. As Minnesota residents, all displaced workers
17.32 shall be covered under the Minnesota Health Plan.
17Article 6 Sec. 3.
REVISOR SGS/TM 19-034101/17/19
18.1 Subd. 6.Waiver request duties.Before submitting a waiver application under section
18.2 1332 of the Patient Protection and Affordable Care Act, Public Law Number 111-148, as
18.3 amended, the board shall do the following, as required by federal law:
18.4 (1) conduct or contract for any necessary actuarial analyses and actuarial certifications
18.5 needed to support the board's estimates that the waiver will comply with the comprehensive
18.6 coverage, affordability, and scope of coverage requirements in federal law;
18.7 (2) conduct or contract for any necessary economic analyses needed to support the
18.8 board's estimates that the waiver will comply with the comprehensive coverage, affordability,
18.9 scope of coverage, and federal deficit requirements in federal law. These analyses must
18.10 include:
18.11 (i) a detailed ten-year budget plan; and
18.12 (ii) a detailed analysis regarding the estimated impact of the waiver on health insurance
18.13 coverage in the state;
18.14 (3) establish a detailed draft implementation timeline for the waiver plan; and
18.15 (4) establish quarterly, annual, and cumulative targets for the comprehensive coverage,
18.16 affordability, scope of coverage, and federal deficit requirements in federal law.
18.17 Subd. 7.Financial duties.The board shall:
18.18 (1) establish and collect premiums and the business health tax according to section
18.19 62W.20, subdivision 1;
18.20 (2) approve statewide and regional budgets that include budgets for the accounts in
18.21 section 62W.19;
18.22 (3) negotiate and establish payment rates for providers;
18.23 (4) monitor compliance with all budgets and payment rates and take action to achieve
18.24 compliance to the extent authorized by law;
18.25 (5) pay claims for medical products or services as negotiated, and may issue requests
18.26 for proposals from Minnesota nonprofit business corporations for a contract to process
18.27 claims;
18.28 (6) seek federal approval to bill other states for health care coverage provided to residents
18.29 from out-of-state who come to Minnesota for long-term care or other costly treatment when
18.30 the resident's home state fails to provide such coverage, unless a reciprocal agreement with
18.31 those states to provide similar coverage to Minnesota residents relocating to those states
18.32 can be negotiated;
18Article 6 Sec. 3.
REVISOR SGS/TM 19-034101/17/19
19.1 (7) administer the Minnesota Health Fund created under section 62W.19;
19.2 (8) annually determine the appropriate level for the Minnesota Health Plan reserve
19.3 account and implement policies needed to establish the appropriate reserve;
19.4 (9) implement fraud prevention measures necessary to protect the operation of the
19.5 Minnesota Health Plan; and
19.6 (10) work to ensure appropriate cost control by:
19.7 (i) instituting aggressive public health measures, early intervention and preventive care,
19.8 health and wellness education, and promotion of personal health improvement;
19.9 (ii) making changes in the delivery of health care services and administration that improve
19.10 efficiency and care quality;
19.11 (iii) minimizing administrative costs;
19.12 (iv) ensuring that the delivery system does not contain excess capacity; and
19.13 (v) negotiating the lowest possible prices for prescription drugs, medical equipment,
19.14 and medical services.
19.15 If the board determines that there will be a revenue shortfall despite the cost control
19.16 measures mentioned in clause (10), the board shall implement measures to correct the
19.17 shortfall, including an increase in premiums and other revenues. The board shall report to
19.18 the legislature on the causes of the shortfall, reasons for the inadequacy of cost controls,
19.19 and measures taken to correct the shortfall.
19.20 Subd. 8.Minnesota Health Board management duties.The board shall:
19.21 (1) develop and implement enrollment procedures for the Minnesota Health Plan;
19.22 (2) implement eligibility standards for the Minnesota Health Plan;
19.23 (3) arrange for health care to be provided at convenient locations, including ensuring
19.24 the availability of school nurses so that all students have access to health care, immunizations,
19.25 and preventive care at public schools and encouraging providers to open small health clinics
19.26 at larger workplaces and retail centers;
19.27 (4) make recommendations, when needed, to the legislature about changes in the
19.28 geographic boundaries of the health planning regions;
19.29 (5) establish an electronic claims and payments system for the Minnesota Health Plan;
19.30 (6) monitor the operation of the Minnesota Health Plan through consumer surveys and
19.31 regular data collection and evaluation activities, including evaluations of the adequacy and
19Article 6 Sec. 3.
REVISOR SGS/TM 19-034101/17/19
20.1 quality of services furnished under the program, the need for changes in the benefit package,
20.2 the cost of each type of service, and the effectiveness of cost control measures under the
20.3 program;
20.4 (7) disseminate information and establish a health care website to provide information
20.5 to the public about the Minnesota Health Plan including providers and facilities, and state
20.6 and regional health planning board meetings and activities;
20.7 (8) collaborate with public health agencies, schools, and community clinics;
20.8 (9) ensure that Minnesota Health Plan policies and providers, including public health
20.9 providers, support all Minnesota residents in achieving and maintaining maximum physical
20.10 and mental health; and
20.11 (10) annually report to the chairs and ranking minority members of the senate and house
20.12 of representatives committees with jurisdiction over health care issues on the performance
20.13 of the Minnesota Health Plan, fiscal condition and need for payment adjustments, any needed
20.14 changes in geographic boundaries of the health planning regions, recommendations for
20.15 statutory changes, receipt of revenue from all sources, whether current year goals and
20.16 priorities are met, future goals and priorities, major new technology or prescription drugs,
20.17 and other circumstances that may affect the cost or quality of health care.
20.18 Subd. 9.Policy duties.The board shall:
20.19 (1) develop and implement cost control and quality assurance procedures;
20.20 (2) ensure strong public health services including education and community prevention
20.21 and clinical services;
20.22 (3) ensure a continuum of coordinated high-quality primary to tertiary care to all
20.23 Minnesota residents; and
20.24 (4) implement policies to ensure that all Minnesota residents receive culturally and
20.25 linguistically competent care.
20.26 Subd. 10.Self-insurance.The board shall determine the feasibility of self-insuring
20.27 providers for malpractice and shall establish a self-insurance system and create a special
20.28 fund for payment of losses incurred if the board determines self-insuring providers would
20.29 reduce costs.
20.30 Sec. 4. [62W.07] HEALTH PLANNING REGIONS.
20.31 A metropolitan health planning region consisting of the seven-county metropolitan area
20.32 is established. By October 1, 2018, the commissioner of health shall designate five rural
20Article 6 Sec. 4.
REVISOR SGS/TM 19-034101/17/19
21.1 health planning regions from the greater Minnesota area composed of geographically
21.2 contiguous counties grouped on the basis of the following considerations:
21.3 (1) patterns of utilization of health care services;
21.4 (2) health care resources, including workforce resources;
21.5 (3) health needs of the population, including public health needs;
21.6 (4) geography;
21.7 (5) population and demographic characteristics; and
21.8 (6) other considerations as appropriate.
21.9 The commissioner of health shall designate the health planning regions.
21.10 Sec. 5. [62W.08] REGIONAL HEALTH PLANNING BOARD.
21.11 Subdivision 1.Regional planning board composition.(a) Each regional board shall
21.12 consist of one county commissioner per county selected by the county board and two county
21.13 commissioners per county selected by the county board in the seven-county metropolitan
21.14 area. A county commissioner may designate a representative to act as a member of the board
21.15 in the member's absence. Each board shall select the chair from among its membership.
21.16 (b) Board members shall serve for four-year terms and may receive per diems for meetings
21.17 as provided in section 15.059, subdivision 3.
21.18 Subd. 2.Regional health board duties.Regional health planning boards shall:
21.19 (1) recommend health standards, goals, priorities, and guidelines for the region;
21.20 (2) prepare an operating and capital budget for the region to recommend to the Minnesota
21.21 Health Board;
21.22 (3) collaborate with local public health care agencies to educate consumers and providers
21.23 on public health programs, goals, and the means of reaching those goals;
21.24 (4) hire a regional health planning director;
21.25 (5) collaborate with public health care agencies to implement public health and wellness
21.26 initiatives; and
21.27 (6) ensure that all parts of the region have access to a 24-hour nurse hotline and 24-hour
21.28 urgent care clinics.
21Article 6 Sec. 5.
REVISOR SGS/TM 19-034101/17/19
22.1 Sec. 6. [62W.09] OFFICE OF HEALTH QUALITY AND PLANNING.
22.2 Subdivision 1.Establishment.The Minnesota Health Board shall establish an Office
22.3 of Health Quality and Planning to assess the quality, access, and funding adequacy of the
22.4 Minnesota Health Plan.
22.5 Subd. 2.General duties.(a) The Office of Health Quality and Planning shall make
22.6 annual recommendations to the board on the overall direction on subjects including:
22.7 (1) the overall effectiveness of the Minnesota Health Plan in addressing public health
22.8 and wellness;
22.9 (2) access to health care;
22.10 (3) quality improvement;
22.11 (4) efficiency of administration;
22.12 (5) adequacy of budget and funding;
22.13 (6) appropriateness of payments for providers;
22.14 (7) capital expenditure needs;
22.15 (8) long-term health care;
22.16 (9) mental health and substance abuse services;
22.17 (10) staffing levels and working conditions in health care facilities;
22.18 (11) identification of number and mix of health care facilities and providers required to
22.19 best meet the needs of the Minnesota Health Plan;
22.20 (12) care for chronically ill patients;
22.21 (13) educating providers on promoting the use of advance directives with patients to
22.22 enable patients to obtain the health care of their choice;
22.23 (14) research needs; and
22.24 (15) integration of disease management programs into health care delivery.
22.25 (b) Analyze shortages in health care workforce required to meet the needs of the
22.26 population and develop plans to meet those needs in collaboration with regional planners
22.27 and educational institutions.
22.28 (c) Analyze methods of paying providers and make recommendations to improve quality
22.29 and control costs.
22Article 6 Sec. 6.
REVISOR SGS/TM 19-034101/17/19
23.1 (d) Assist in coordination of the Minnesota Health Plan and public health programs.
23.2 Subd. 3.Assessment and evaluation of benefits.(a) The Office of Health Quality and
23.3 Planning shall:
23.4 (1) consider health care benefit additions to the Minnesota Health Plan and evaluate
23.5 them based on evidence of clinical efficacy;
23.6 (2) establish a process and criteria by which providers may request authorization to
23.7 provide health care services and treatments that are not included in the Minnesota Health
23.8 Plan benefit set, including experimental health care treatments;
23.9 (3) evaluate proposals to increase the efficiency and effectiveness of the health care
23.10 delivery system, and make recommendations to the board based on the cost-effectiveness
23.11 of the proposals; and
23.12 (4) identify complementary and alternative health care modalities that have been shown
23.13 to be safe and effective.
23.14 (b) The board may convene advisory panels as needed.
23.15 Sec. 7. [62W.10] ETHICS AND CONFLICT OF INTEREST.
23.16 (a) All provisions of section 43A.38 apply to employees and the chief executive officer
23.17 of the Minnesota Health Plan, the members and directors of the Minnesota Health Board,
23.18 the regional health boards, the director of the Office of Health Quality and Planning, the
23.19 director of the Minnesota Health Fund, and the ombudsman for patient advocacy. Failure
23.20 to comply with section 43A.38 shall be grounds for disciplinary action which may include
23.21 termination of employment or removal from the board.
23.22 (b) In order to avoid the appearance of political bias or impropriety, the Minnesota Health
23.23 Plan chief executive officer shall not:
23.24 (1) engage in leadership of, or employment by, a political party or a political organization;
23.25 (2) publicly endorse a political candidate;
23.26 (3) contribute to any political candidates or political parties and political organizations;
23.27 or
23.28 (4) attempt to avoid compliance with this subdivision by making contributions through
23.29 a spouse or other family member.
23.30 (c) In order to avoid a conflict of interest, individuals specified in paragraph (a) shall
23.31 not be currently employed by a medical provider or a pharmaceutical, medical insurance,
23Article 6 Sec. 7.
REVISOR SGS/TM 19-034101/17/19
24.1 or medical supply company. This paragraph does not apply to the five provider members
24.2 of the board.
24.3 Sec. 8. [62W.11] CONFLICT OF INTEREST COMMITTEE.
24.4 (a) The board shall establish a conflict of interest committee to develop standards of
24.5 practice for individuals or entities doing business with the Minnesota Health Plan, including
24.6 but not limited to, board members, providers, and medical suppliers. The committee shall
24.7 establish guidelines on the duty to disclose the existence of a financial interest and all
24.8 material facts related to that financial interest to the committee.
24.9 (b) In considering the transaction or arrangement, if the committee determines a conflict
24.10 of interest exists, the committee shall investigate alternatives to the proposed transaction
24.11 or arrangement. After exercising due diligence, the committee shall determine whether the
24.12 Minnesota Health Plan can obtain with reasonable efforts a more advantageous transaction
24.13 or arrangement with a person or entity that would not give rise to a conflict of interest. If
24.14 this is not reasonably possible under the circumstances, the committee shall make a
24.15 recommendation to the board on whether the transaction or arrangement is in the best interest
24.16 of the Minnesota Health Plan, and whether the transaction is fair and reasonable. The
24.17 committee shall provide the board with all material information used to make the
24.18 recommendation. After reviewing all relevant information, the board shall decide whether
24.19 to approve the transaction or arrangement.
24.20 Sec. 9. [62W.12] OMBUDSMAN OFFICE FOR PATIENT ADVOCACY.
24.21 Subdivision 1.Creation of office.(a) The Ombudsman Office for Patient Advocacy is
24.22 created to represent the interests of the consumers of health care. The ombudsman shall
24.23 help residents of the state secure the health care services and health care benefits they are
24.24 entitled to under the laws administered by the Minnesota Health Board and advocate on
24.25 behalf of and represent the interests of enrollees in entities created by this chapter and in
24.26 other forums.
24.27 (b) The ombudsman shall be a patient advocate appointed by the governor, who serves
24.28 in the unclassified service and may be removed only for just cause. The ombudsman must
24.29 be selected without regard to political affiliation and must be knowledgeable about and have
24.30 experience in health care services and administration.
24.31 (c) The ombudsman may gather information about decisions, acts, and other matters of
24.32 the Minnesota Health Board, health care organization, or a health care program. A person
24.33 may not serve as ombudsman while holding another public office.
24Article 6 Sec. 9.
REVISOR SGS/TM 19-034101/17/19
25.1 (d) The budget for the ombudsman's office shall be determined by the legislature and is
25.2 independent from the Minnesota Health Board. The ombudsman shall establish offices to
25.3 provide convenient access to residents.
25.4 (e) The Minnesota Health Board has no oversight or authority over the ombudsman for
25.5 patient advocacy.
25.6 Subd. 2.Ombudsman's duties.The ombudsman shall:
25.7 (1) ensure that patient advocacy services are available to all Minnesota residents;
25.8 (2) establish and maintain the grievance process according to section 62W.13;
25.9 (3) receive, evaluate, and respond to consumer complaints about the Minnesota Health
25.10 Plan;
25.11 (4) establish a process to receive recommendations from the public about ways to improve
25.12 the Minnesota Health Plan;
25.13 (5) develop educational and informational guides according to communication services
25.14 under section 15.441, describing consumer rights and responsibilities;
25.15 (6) ensure the guides in clause (5) are widely available to consumers and specifically
25.16 available in provider offices and health care facilities; and
25.17 (7) prepare an annual report about the consumer perspective on the performance of the
25.18 Minnesota Health Plan, including recommendations for needed improvements.
25.19 Sec. 10. [62W.13] GRIEVANCE SYSTEM.
25.20 Subdivision 1.Grievance system established.The ombudsman shall establish a
25.21 grievance system for complaints. The system shall provide a process that ensures adequate
25.22 consideration of Minnesota Health Plan enrollee grievances and appropriate remedies.
25.23 Subd. 2.Referral of grievances.The ombudsman may refer any grievance that does
25.24 not pertain to compliance with this chapter to the federal Centers for Medicare and Medicaid
25.25 Services or any other appropriate local, state, and federal government entity for investigation
25.26 and resolution.
25.27 Subd. 3.Submittal by designated agents and providers.A provider may join with,
25.28 or otherwise assist, a complainant to submit the grievance to the ombudsman. A provider
25.29 or an employee of a provider who, in good faith, joins with or assists a complainant in
25.30 submitting a grievance is subject to the protections and remedies under sections 181.931 to
25.31 181.935.
25Article 6 Sec. 10.
REVISOR SGS/TM 19-034101/17/19
26.1 Subd. 4.Review of documents.The ombudsman may require additional information
26.2 from health care providers or the board.
26.3 Subd. 5.Written notice of disposition.The ombudsman shall send a written notice of
26.4 the final disposition of the grievance, and the reasons for the decision, to the complainant,
26.5 to any provider who is assisting the complainant, and to the board, within 30 calendar days
26.6 of receipt of the request for review unless the ombudsman determines that additional time
26.7 is reasonably necessary to fully and fairly evaluate the relevant grievance. The ombudsman's
26.8 order of corrective action shall be binding on the Minnesota Health Plan. A decision of the
26.9 ombudsman is subject to de novo review by the district court.
26.10 Subd. 6.Data.Data on enrollees collected because an enrollee submits a complaint to
26.11 the ombudsman are private data on individuals as defined in section 13.02, subdivision 12,
26.12 but may be released to a provider who is the subject of the complaint or to the board for
26.13 purposes of this section.
26.14 Sec. 11. [62W.14] AUDITOR GENERAL FOR THE MINNESOTA HEALTH PLAN.
26.15 Subdivision 1.Establishment.There is within the Office of the Legislative Auditor an
26.16 auditor general for health care fraud and abuse for the Minnesota Health Plan who is
26.17 appointed by the legislative auditor.
26.18 Subd. 2.Duties.The auditor general shall:
26.19 (1) investigate, audit, and review the financial and business records of the Minnesota
26.20 Health Plan and the Minnesota Health Fund;
26.21 (2) investigate, audit, and review the financial and business records of individuals, public
26.22 and private agencies and institutions, and private corporations that provide services or
26.23 products to the Minnesota Health Plan, the costs of which are reimbursed by the Minnesota
26.24 Health Plan;
26.25 (3) investigate allegations of misconduct on the part of an employee or appointee of the
26.26 Minnesota Health Board and on the part of any provider of health care services that is
26.27 reimbursed by the Minnesota Health Plan, and report any findings of misconduct to the
26.28 attorney general;
26.29 (4) investigate fraud and abuse;
26.30 (5) arrange for the collection and analysis of data needed to investigate the inappropriate
26.31 utilization of these products and services; and
26Article 6 Sec. 11.
REVISOR SGS/TM 19-034101/17/19
27.1 (6) annually report recommendations for improvements to the Minnesota Health Plan
27.2 to the board.
27.3 Sec. 12. [62W.15] MINNESOTA HEALTH PLAN POLICIES AND PROCEDURES;
27.4 RULEMAKING.
27.5 Subdivision 1.Exempt rules.The Minnesota Health Plan policies and procedures are
27.6 exempt from the Administrative Procedure Act but, to the extent authorized by law to adopt
27.7 rules, the board may use the provisions of section 14.386, paragraph (a), clauses (1) and
27.8 (3). Section 14.386, paragraph (b), does not apply to these rules.
27.9 Subd. 2.Rulemaking procedures.(a) Whenever the board determines that a rule should
27.10 be adopted under this section establishing, modifying, or revoking a policy or procedure,
27.11 the board shall publish in the State Register the proposed policy or procedure and shall
27.12 afford interested persons a period of 30 days after publication to submit written data or
27.13 comments.
27.14 (b) On or before the last day of the period provided for the submission of written data
27.15 or comments, any interested person may file with the board written objections to the proposed
27.16 rule, stating the grounds for objection and requesting a public hearing on those objections.
27.17 Within 30 days after the last day for filing objections, the board shall publish in the State
27.18 Register a notice specifying the policy or procedure to which objections have been filed
27.19 and a hearing requested and specifying a time and place for the hearing.
27.20 Subd. 3.Rule adoption.Within 60 days after the expiration of the period provided for
27.21 the submission of written data or comments, or within 60 days after the completion of any
27.22 hearing, the board shall issue a rule adopting, modifying, or revoking a policy or procedure,
27.23 or make a determination that a rule should not be adopted. The rule may contain a provision
27.24 delaying its effective date for such period as the board determines is necessary.
27.25 Sec. 13. [62W.151] EXEMPTION FROM RULEMAKING.
27.26 The board and its operation of the Minnesota Health Plan and the Minnesota Health
27.27 Fund is exempt from rulemaking under chapter 14.
27.28 Sec. 14. Minnesota Statutes 2018, section 14.03, subdivision 3, is amended to read:
27.29 Subd. 3.Rulemaking procedures.(a) The definition of a rule in section 14.02,
27.30 subdivision 4, does not include:
27Article 6 Sec. 14.
REVISOR SGS/TM 19-034101/17/19
28.1 (1) rules concerning only the internal management of the agency or other agencies that
28.2 do not directly affect the rights of or procedures available to the public;
28.3 (2) an application deadline on a form; and the remainder of a form and instructions for
28.4 use of the form to the extent that they do not impose substantive requirements other than
28.5 requirements contained in statute or rule;
28.6 (3) the curriculum adopted by an agency to implement a statute or rule permitting or
28.7 mandating minimum educational requirements for persons regulated by an agency, provided
28.8 the topic areas to be covered by the minimum educational requirements are specified in
28.9 statute or rule;
28.10 (4) procedures for sharing data among government agencies, provided these procedures
28.11 are consistent with chapter 13 and other law governing data practices.
28.12 (b) The definition of a rule in section 14.02, subdivision 4, does not include:
28.13 (1) rules of the commissioner of corrections relating to the release, placement, term, and
28.14 supervision of inmates serving a supervised release or conditional release term, the internal
28.15 management of institutions under the commissioner's control, and rules adopted under
28.16 section 609.105 governing the inmates of those institutions;
28.17 (2) rules relating to weight limitations on the use of highways when the substance of the
28.18 rules is indicated to the public by means of signs;
28.19 (3) opinions of the attorney general;
28.20 (4) the data element dictionary and the annual data acquisition calendar of the Department
28.21 of Education to the extent provided by section 125B.07;
28.22 (5) the occupational safety and health standards provided in section 182.655;
28.23 (6) revenue notices and tax information bulletins of the commissioner of revenue;
28.24 (7) uniform conveyancing forms adopted by the commissioner of commerce under
28.25 section 507.09;
28.26 (8) standards adopted by the Electronic Real Estate Recording Commission established
28.27 under section 507.0945; or
28.28 (9) the interpretive guidelines developed by the commissioner of human services to the
28.29 extent provided in chapter 245A.; or
28.30 (10) rules, policies, and procedures adopted by the Minnesota Health Board under chapter
28.31 62W.
28Article 6 Sec. 14.
REVISOR SGS/TM 19-034101/17/19
29.1 ARTICLE 7
29.2 IMPLEMENTATION
29.3 Section 1. APPROPRIATION.
29.4 $....... in fiscal year 2020 is appropriated from the general fund to the Minnesota Health
29.5 Fund under the Minnesota Health Plan to provide start-up funding for the provisions of
29.6 chapter 62W.
29.7 Sec. 2. EFFECTIVE DATE AND TRANSITION.
29.8 Subdivision 1.Effective date.This act is effective the day following final enactment.
29.9 The commissioner of management and budget and the chief executive officer of the
29.10 Minnesota Health Plan shall regularly update the legislature on the status of planning,
29.11 implementation, and financing of this act.
29.12 Subd. 2.Timing to implement.The Minnesota Health Plan must be operational within
29.13 two years from the date of final enactment of this act.
29.14 Subd. 3.Prohibition.On and after the day the Minnesota Health Plan becomes
29.15 operational, a health plan, as defined in Minnesota Statutes, section 62Q.01, subdivision 3,
29.16 may not be sold in Minnesota for services provided by the Minnesota Health Plan.
29.17 Subd. 4.Transition.(a) The commissioners of health, human services, and commerce
29.18 shall prepare an analysis of the state's capital expenditure needs for the purpose of assisting
29.19 the board in adopting the statewide capital budget for the year following implementation.
29.20 The commissioners shall submit this analysis to the board.
29.21 (b) The following timelines shall be implemented:
29.22 (1) the commissioner of health shall designate the health planning regions utilizing the
29.23 criteria specified in Minnesota Statutes, section 62W.07, 30 days after the date of enactment
29.24 of this act;
29.25 (2) the regional boards shall be established three months after the date of enactment of
29.26 this act; and
29.27 (3) the Minnesota Health Board shall be established five months after the date of
29.28 enactment of this act; and
29.29 (4) the commissioner of health, or the commissioner's designee, shall convene the first
29.30 meeting of each of the regional boards and the Minnesota Health Board within 30 days after
29.31 each of the boards has been established.
29Article 7 Sec. 2.
REVISOR SGS/TM 19-034101/17/19
30.1 Subd. 5.Report.Within one year of the effective date of chapter 62W, DEED shall
30.2 provide to the Minnesota Health Board, the governor, and the chairs and ranking members
30.3 of the legislative committees with jurisdiction over health, human services, and commerce
30.4 a report spelling out the appropriations and legislation necessary to assist all affected
30.5 individuals and communities through the transition.
30Article 7 Sec. 2.
REVISOR SGS/TM 19-034101/17/19
1.1 A bill for an act
1.2 relating to health; guaranteeing that health care is available and affordable for
1.3 every Minnesotan; establishing the Minnesota Health Plan, Minnesota Health
1.4 Board, Minnesota Health Fund, Office of Health Quality and Planning, ombudsman
1.5 for patient advocacy, and auditor general for the Minnesota Health Plan; requesting
1.6 a 1332 waiver; authorizing rulemaking; appropriating money; amending Minnesota
Statutes 2018, sections 13.3806, by adding a subdivision; 14.03, subdivisions 2,
3; 15A.0815, subdivision 2; proposing coding for new law as Minnesota Statutes,
chapter 62W.
1.10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.11 ARTICLE 1
1.12 MINNESOTA HEALTH PLAN
1.13 Section 1. [62W.01] HEALTH PLAN REQUIREMENTS.
1.14 In order to keep Minnesota residents healthy and provide the best quality of health care,
1.15 the Minnesota Health Plan must:
1.16 (1) ensure all Minnesota residents are covered;
1.17 (2) cover all necessary care, including dental, vision and hearing, mental health, chemical
1.18 dependency treatment, prescription drugs, medical equipment and supplies, long-term care,
1.19 and home care;
1.20 (3) allow patients to choose their providers;
1.21 (4) reduce costs by negotiating fair prices and by cutting administrative bureaucracy,
1.22 not by restricting or denying care;
1.23 (5) be affordable to all through premiums based on ability to pay and elimination of
1.24 co-pays;
1Article 1 Section 1.
19-0341 as introduced01/17/19 REVISOR SGS/TM
SENATE
STATE OF MINNESOTA
S.F. No. 1125NINETY-FIRST SESSION
(SENATE AUTHORS: MARTY, Bakk, Eaton, Kent and Rest)
OFFICIAL STATUSD-PGDATE
Introduction and first reading33602/11/2019
Referred to Health and Human Services Finance and Policy
2.1 (6) focus on preventive care and early intervention to improve health;
2.2 (7) ensure that there are enough health care providers to guarantee timely access to care;
2.3 (8) continue Minnesota's leadership in medical education, research, and technology;
2.4 (9) provide adequate and timely payments to providers; and
2.5 (10) use a simple funding and payment system.
2.6 Sec. 2. [62W.02] MINNESOTA HEALTH PLAN GENERAL PROVISIONS.
2.7 Subdivision 1.Short title.This chapter may be cited as the "Minnesota Health Plan."
2.8 Subd. 2.Purpose.The Minnesota Health Plan shall provide all medically necessary
2.9 health care services for all Minnesota residents in a manner that meets the requirements in
2.10 section 62W.01.
2.11 Subd. 3.Definitions.As used in this chapter, the following terms have the meanings
2.12 provided:
2.13 (a) "Board" means the Minnesota Health Board.
2.14 (b) "Plan" means the Minnesota Health Plan.
2.15 (c) "Fund" means the Minnesota Health Fund.
2.16 (d) "Medically necessary" means services or supplies needed to promote health and to
2.17 prevent, diagnose, or treat a particular patient's medical condition that meet accepted
2.18 standards of medical practice within a provider's professional peer group and geographic
2.19 region.
2.20 (e) "Institutional provider" means an inpatient hospital, nursing facility, rehabilitation
2.21 facility, and other health care facilities that provide overnight care.
2.22 (f) "Noninstitutional provider" means individual providers, group practices, clinics,
2.23 outpatient surgical centers, imaging centers, and other health facilities that do not provide
2.24 overnight care.
2.25 ARTICLE 2
2.26 ELIGIBILITY
2.27 Section 1. [62W.03] ELIGIBILITY.
2.28 Subdivision 1.Residency.All Minnesota residents are eligible for the Minnesota Health
2.29 Plan.
2Article 2 Section 1.
19-0341 as introduced01/17/19 REVISOR SGS/TM
3.1 Subd. 2.Enrollment; identification.The Minnesota Health Board shall establish a
3.2 procedure to enroll residents and provide each with identification that may be used by health
3.3 care providers to confirm eligibility for services. The application for enrollment shall be no
3.4 more than two pages.
3.5 Subd. 3.Residents temporarily out of state.(a) The Minnesota Health Plan shall
3.6 provide health care coverage to Minnesota residents who are temporarily out of the state
3.7 who intend to return and reside in Minnesota.
3.8 (b) Coverage for emergency care obtained out of state shall be at prevailing local rates.
3.9 Coverage for nonemergency care obtained out of state shall be according to rates and
3.10 conditions established by the board. The board may require that a resident be transported
3.11 back to Minnesota when prolonged treatment of an emergency condition is necessary and
3.12 when that transport will not adversely affect a patient's care or condition.
3.13 Subd. 4.Visitors.Nonresidents visiting Minnesota shall be billed by the board for all
3.14 services received under the Minnesota Health Plan. The board may enter into
3.15 intergovernmental arrangements or contracts with other states and countries to provide
3.16 reciprocal coverage for temporary visitors.
3.17 Subd. 5.Nonresident employed in Minnesota.The board shall extend eligibility to
3.18 nonresidents employed in Minnesota under a premium schedule set by the board.
3.19 Subd. 6.Business outside of Minnesota employing Minnesota residents.The board
3.20 shall apply for a federal waiver to collect the employer contribution mandated by federal
3.21 law.
3.22 Subd. 7.Retiree benefits.(a) All persons who are eligible for retiree medical benefits
3.23 under an employer-employee contract shall remain eligible for those benefits provided the
3.24 contractually mandated payments for those benefits are made to the Minnesota Health Fund,
3.25 which shall assume financial responsibility for care provided under the terms of the contract
3.26 along with additional health benefits covered by the Minnesota Health Plan. Retirees who
3.27 elect to reside outside of Minnesota shall be eligible for benefits under the terms and
3.28 conditions of the retiree's employer-employee contract.
3.29 (b) The board may establish financial arrangements with states and foreign countries in
3.30 order to facilitate meeting the terms of the contracts described in paragraph (a). Payments
3.31 for care provided by non-Minnesota providers to Minnesota retirees shall be reimbursed at
3.32 rates established by the Minnesota Health Board. Providers who accept any payment from
3.33 the Minnesota Health Plan for a covered service shall not bill the patient for the covered
3.34 service.
3Article 2 Section 1.
19-0341 as introduced01/17/19 REVISOR SGS/TM
4.1 Subd. 8.Presumptive eligibility.(a) An individual is presumed eligible for coverage
4.2 under the Minnesota Health Plan if the individual arrives at a health facility unconscious,
4.3 comatose, or otherwise unable, because of the individual's physical or mental condition, to
4.4 document eligibility or to act on the individual's own behalf. If the patient is a minor, the
4.5 patient is presumed eligible, and the health facility shall provide care as if the patient were
4.6 eligible.
4.7 (b) Any individual is presumed eligible when brought to a health facility according to
4.8 any provision of section 253B.05.
4.9 (c) Any individual involuntarily committed to an acute psychiatric facility or to a hospital
4.10 with psychiatric beds according to any provision of section 253B.05, providing for
4.11 involuntary commitment, is presumed eligible.
4.12 (d) All health facilities subject to state and federal provisions governing emergency
4.13 medical treatment must comply with those provisions.
4.14 Subd. 9.Data.Data collected because an individual applies for or is enrolled in the
4.15 Minnesota Health Plan are private data on individuals as defined in section 13.02, subdivision
4.16 12, but may be released to:
4.17 (1) providers for purposes of confirming enrollment and processing payments for benefits;
4.18 (2) the ombudsman for patient advocacy for purposes of performing duties under section
4.19 62W.12 or 62W.13; or
4.20 (3) the auditor general for purposes of performing duties under section 62W.14.
4.21 Sec. 2. Minnesota Statutes 2018, section 13.3806, is amended by adding a subdivision to
4.22 read:
4.23 Subd. 1d.Minnesota Health Plan.Data on enrollees under the Minnesota Health Plan
4.24 are classified under sections 62W.03, subdivision 9, and 62W.13, subdivision 6.
4.25 ARTICLE 3
4.26 BENEFITS
4.27 Section 1. [62W.04] BENEFITS.
4.28 Subdivision 1.General provisions.Any eligible individual may choose to receive
4.29 services under the Minnesota Health Plan from any participating provider.
4Article 3 Section 1.
19-0341 as introduced01/17/19 REVISOR SGS/TM
5.1 Subd. 2.Covered benefits.Covered health care benefits in this chapter include all
5.2 medically necessary care subject to the limitations specified in subdivision 4. Covered health
5.3 care benefits for Minnesota Health Plan enrollees include:
5.4 (1) inpatient and outpatient health facility services;
5.5 (2) inpatient and outpatient professional health care provider services;
5.6 (3) diagnostic imaging, laboratory services, and other diagnostic and evaluative services;
5.7 (4) medical equipment, appliances, and assistive technology, including prosthetics,
5.8 eyeglasses, and hearing aids, their repair, technical support, and customization needed for
5.9 individual use;
5.10 (5) inpatient and outpatient rehabilitative care;
5.11 (6) emergency care services;
5.12 (7) emergency transportation;
5.13 (8) necessary transportation for health care services for persons with disabilities or who
5.14 may qualify as low income;
5.15 (9) child and adult immunizations and preventive care;
5.16 (10) health and wellness education;
5.17 (11) hospice care;
5.18 (12) care in a skilled nursing facility;
5.19 (13) home health care including health care provided in an assisted living facility;
5.20 (14) mental health services;
5.21 (15) substance abuse treatment;
5.22 (16) dental care;
5.23 (17) vision care;
5.24 (18) hearing care;
5.25 (19) prescription drugs;
5.26 (20) podiatric care;
5.27 (21) chiropractic care;
5.28 (22) acupuncture;
5Article 3 Section 1.
19-0341 as introduced01/17/19 REVISOR SGS/TM
6.1 (23) therapies which are shown by the National Institutes of Health National Center for
6.2 Complementary and Integrative Health to be safe and effective;
6.3 (24) blood and blood products;
6.4 (25) dialysis;
6.5 (26) adult day care;
6.6 (27) rehabilitative and habilitative services;
6.7 (28) ancillary health care or social services previously covered by Minnesota's public
6.8 health programs;
6.9 (29) case management and care coordination;
6.10 (30) language interpretation and translation for health care services, including sign
6.11 language and Braille or other services needed for individuals with communication barriers;
6.12 and
6.13 (31) those health care and long-term supportive services currently covered under
6.14 Minnesota Statutes 2016, chapter 256B, for persons on medical assistance, including home
6.15 and community-based waivered services under chapter 256B.
6.16 Subd. 3.Benefit expansion.The Minnesota Health Board may expand health care
6.17 benefits beyond the minimum benefits described in this section when expansion meets the
6.18 intent of this chapter and when there are sufficient funds to cover the expansion.
6.19 Subd. 4.Cost-sharing for the room and board portion of long-term care.The
6.20 Minnesota Health Board shall develop income and asset qualifications based on medical
6.21 assistance standards for covered benefits under subdivision 2, clauses (12) and (13). All
6.22 health care services for long-term care in a skilled nursing facility or assisted living facility
6.23 are fully covered but, notwithstanding section 62W.20, subdivision 6, room and board costs
6.24 may be charged to patients who do not meet income and asset qualifications.
6.25 Subd. 5.Exclusions.The following health care services shall be excluded from coverage
6.26 by the Minnesota Health Plan:
6.27 (1) health care services determined to have no medical benefit by the board;
6.28 (2) treatments and procedures primarily for cosmetic purposes, unless required to correct
6.29 a congenital defect, restore or correct a part of the body that has been altered as a result of
6.30 injury, disease, or surgery, or determined to be medically necessary by a qualified, licensed
6.31 health care provider in the Minnesota Health Plan; and
6Article 3 Section 1.
19-0341 as introduced01/17/19 REVISOR SGS/TM
7.1 (3) services of a health care provider or facility that is not licensed or accredited by the
7.2 state, except for approved services provided to a Minnesota resident who is temporarily out
7.3 of the state.
7.4 Subd. 6.Prohibition.The Minnesota Health Plan shall not pay for drugs requiring a
7.5 prescription if the pharmaceutical companies directly market those drugs to consumers in
7.6 Minnesota.
7.7 Sec. 2. [62W.041] PATIENT CARE.
7.8 (a) All patients shall have a primary care provider and have access to care coordination.
7.9 (b) Referrals are not required for a patient to see a health care specialist. If a patient sees
7.10 a specialist and does not have a primary care provider, the Minnesota Health Plan may assist
7.11 with choosing a primary care provider.
7.12 (c) The board may establish a computerized registry to assist patients in identifying
7.13 appropriate providers.
7.14 ARTICLE 4
7.15 FUNDING
7.16 Section 1. [62W.19] MINNESOTA HEALTH FUND.
7.17 Subdivision 1.General provisions.(a) The Minnesota Health Fund, a revolving fund,
7.18 is established under the jurisdiction and control of the Minnesota Health Board to implement
7.19 the Minnesota Health Plan and to receive premiums and other sources of revenue. The fund
7.20 shall be administered by a director appointed by the Minnesota Health Board.
7.21 (b) All money collected, received, and transferred according to this chapter shall be
7.22 deposited in the Minnesota Health Fund.
7.23 (c) Money deposited in the Minnesota Health Fund shall be used exclusively to finance
7.24 the Minnesota Health Plan.
7.25 (d) All claims for health care services rendered shall be made to the Minnesota Health
7.26 Fund.
7.27 (e) All payments made for health care services shall be disbursed from the Minnesota
7.28 Health Fund.
7.29 (f) Premiums and other revenues collected each year must be sufficient to cover that
7.30 year's projected costs.
7Article 4 Section 1.
19-0341 as introduced01/17/19 REVISOR SGS/TM
8.1 Subd. 2.Accounts.The Minnesota Health Fund shall have operating, capital, and reserve
8.2 accounts.
8.3 Subd. 3.Operating account.The operating account in the Minnesota Health Fund shall
8.4 be comprised of the accounts specified in paragraphs (a) to (e).
8.5 (a) Medical services account. The medical services account must be used to provide
8.6 for all medical services and benefits covered under the Minnesota Health Plan.
8.7 (b) Prevention account. The prevention account must be used to establish and maintain
8.8 primary community prevention programs, including preventive screening tests.
8.9 (c) Program administration, evaluation, planning, and assessment account. The
8.10 program administration, evaluation, planning, and assessment account must be used to
8.11 monitor and improve the plan's effectiveness and operations. The board may establish grant
8.12 programs including demonstration projects for this purpose.
8.13 (d) Training and development account. The training and development account must
8.14 be used to incentivize the training and development of health care providers and the health
8.15 care workforce needed to meet the health care needs of the population.
8.16 (e) Health service research account. The health service research account must be used
8.17 to support research and innovation as determined by the Minnesota Health Board, and
8.18 recommended by the Office of Health Quality and Planning and the Ombudsman for Patient
8.19 Advocacy.
8.20 Subd. 4.Capital account.The capital account must be used to pay for capital
8.21 expenditures for institutional providers.
8.22 Subd. 5.Reserve account.(a) The Minnesota Health Plan must at all times hold in
8.23 reserve an amount estimated in the aggregate to provide for the payment of all losses and
8.24 claims for which the Minnesota Health Plan may be liable and to provide for the expense
8.25 of adjustment or settlement of losses and claims.
8.26 (b) Money currently held in reserve by state, city, and county health programs must be
8.27 transferred to the Minnesota Health Fund when the Minnesota Health Plan replaces those
8.28 programs.
8.29 (c) The board shall have provisions in place to insure the Minnesota Health Plan against
8.30 unforeseen expenditures or revenue shortfalls not covered by the reserve account. The board
8.31 may borrow money to cover temporary shortfalls.
8Article 4 Section 1.
19-0341 as introduced01/17/19 REVISOR SGS/TM
9.1 Subd. 6.Assets of the Minnesota Health Plan; functions of the commissioner of
9.2 Minnesota Management and Budget.All money received by the Minnesota Health Fund
9.3 shall be paid to the commissioner of Minnesota Management and Budget as agent of the
9.4 board who shall not commingle these funds with any other money. The money in these
9.5 accounts shall be paid out on warrants drawn by the commissioner on requisition by the
9.6 board.
9.7 Subd. 7.Management.The Minnesota Health Fund shall be separate from the state
9.8 treasury. Management of the fund shall be conducted by the Minnesota Health Board, which
9.9 has exclusive authority over the fund.
9.10 Sec. 2. [62W.20] REVENUE SOURCES.
9.11 Subdivision 1.Minnesota Health Plan premium.(a) The Minnesota Health Board
9.12 shall:
9.13 (1) determine the aggregate cost of providing health care according to this chapter;
9.14 (2) develop an equitable and affordable premium structure based on income, including
9.15 unearned income, and a business health tax;
9.16 (3) in consultation with the Department of Revenue, develop an efficient means of
9.17 collecting premiums and the business health tax; and
9.18 (4) coordinate with existing, ongoing funding sources from federal and state programs.
9.19 (b) The premium structure must be based on ability to pay.
9.20 (c) On or before January 15, 2017, the board shall submit to the governor and the
9.21 legislature a report on the premium and business health tax structure established to finance
9.22 the Minnesota Health Plan.
9.23 Subd. 2.Federal receipts.All federal funding received by Minnesota including the
9.24 premium subsidies under the Affordable Care Act, Public Law 111-148, as amended by
9.25 Public Law 111-152, is appropriated to the Minnesota Health Plan Board to be used to
9.26 administer the Minnesota Health Plan under chapter 62W. Federal funding that is received
9.27 for implementing and administering the Minnesota Health Plan must be used to provide
9.28 health care for Minnesota residents.
9.29 Subd. 3.Funds from outside sources.Institutional providers operating under Minnesota
9.30 Health Plan operating budgets may raise and expend funds from sources other than the
9.31 Minnesota Health Plan including private or foundation donors. Contributions to providers
9.32 in excess of $500,000 must be reported to the board.
9Article 4 Sec. 2.
19-0341 as introduced01/17/19 REVISOR SGS/TM
10.1 Subd. 4.Governmental payments.The chief executive officer and, if required under
10.2 federal law, the commissioners of health, human services, and commerce shall seek all
10.3 necessary waivers, exemptions, agreements, or legislation so that all current federal payments
10.4 to the state, including the premium tax credits under the Affordable Care Act, are paid
10.5 directly to the Minnesota Health Plan. When any required waivers, exemptions, agreements,
10.6 or legislation are obtained, the Minnesota Health Plan shall assume responsibility for all
10.7 health care benefits and health care services previously paid for with federal funds. In
10.8 obtaining the waivers, exemptions, agreements, or legislation, the chief executive officer
10.9 and, if required, commissioners shall seek from the federal government a contribution for
10.10 health care services in Minnesota that reflects: medical inflation, the state gross domestic
10.11 product, the size and age of the population, the number of residents living below the poverty
10.12 level, and the number of Medicare and VA eligible individuals, and that does not decrease
10.13 in relation to the federal contribution to other states as a result of the waivers, exemptions,
10.14 agreements, or savings from implementation of the Minnesota Health Plan.
10.15 Subd. 5.Federal preemption.(a) The board shall secure a repeal or a waiver of any
10.16 provision of federal law that preempts any provision of this chapter. The commissioners of
10.17 health, human services, and commerce shall provide all necessary assistance.
10.18 (b) In the section 1332 waiver application, the board shall request to waive any of the
10.19 following provisions of the Patient Protection and Affordable Care Act, to the extent
10.20 necessary to implement this act:
10.21 (1) United States Code, title 42, sections 18021 to 18024;
10.22 (2) United States Code, title 42, sections 18031 to 18033;
10.23 (3) United States Code, title 42, section 18071; and
10.24 (4) sections 36B and 5000A of the Internal Revenue Code of 1986, as amended.
10.25 (c) In the event that a repeal or a waiver of law or regulations cannot be secured, the
10.26 board shall adopt rules, or seek conforming state legislation, consistent with federal law, in
10.27 an effort to best fulfill the purposes of this chapter.
10.28 (d) The Minnesota Health Plan's responsibility for providing care shall be secondary to
10.29 existing federal government programs for health care services to the extent that funding for
10.30 these programs is not transferred to the Minnesota Health Fund or that the transfer is delayed
10.31 beyond the date on which initial benefits are provided under the Minnesota Health Plan.
10.32 Subd. 6.No cost-sharing.No deductible, co-payment, coinsurance, or other cost-sharing
10.33 shall be imposed with respect to covered benefits.
10Article 4 Sec. 2.
19-0341 as introduced01/17/19 REVISOR SGS/TM
11.1 Sec. 3. [62W.21] SUBROGATION.
11.2 Subdivision 1.Collateral source.(a) When other payers for health care have been
11.3 terminated, health care costs shall be collected from collateral sources whenever medical
11.4 services provided to an individual are, or may be, covered services under a policy of
11.5 insurance, or other collateral source available to that individual, or when the individual has
11.6 a right of action for compensation permitted under law.
11.7 (b) As used in this section, collateral source includes:
11.8 (1) health insurance policies and the medical components of automobile, homeowners,
11.9 and other forms of insurance;
11.10 (2) medical components of worker's compensation;
11.11 (3) pension plans;
11.12 (4) employer plans;
11.13 (5) employee benefit contracts;
11.14 (6) government benefit programs;
11.15 (7) a judgment for damages for personal injury;
11.16 (8) the state of last domicile for individuals moving to Minnesota for medical care who
11.17 have extraordinary medical needs; and
11.18 (9) any third party who is or may be liable to an individual for health care services or
11.19 costs.
11.20 (c) Collateral source does not include:
11.21 (1) a contract or plan that is subject to federal preemption; or
11.22 (2) any governmental unit, agency, or service, to the extent that subrogation is prohibited
11.23 by law. An entity described in paragraph (b) is not excluded from the obligations imposed
11.24 by this section by virtue of a contract or relationship with a government unit, agency, or
11.25 service.
11.26 (d) The board shall negotiate waivers, seek federal legislation, or make other arrangements
11.27 to incorporate collateral sources into the Minnesota Health Plan.
11.28 Subd. 2.Notification.When an individual who receives health care services under the
11.29 Minnesota Health Plan is entitled to coverage, reimbursement, indemnity, or other
11.30 compensation from a collateral source, the individual shall notify the health care provider
11.31 and provide information identifying the collateral source, the nature and extent of coverage
11Article 4 Sec. 3.
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12.1 or entitlement, and other relevant information. The health care provider shall forward this
12.2 information to the board. The individual entitled to coverage, reimbursement, indemnity,
12.3 or other compensation from a collateral source shall provide additional information as
12.4 requested by the board.
12.5 Subd. 3.Reimbursement.(a) The Minnesota Health Plan shall seek reimbursement
12.6 from the collateral source for services provided to the individual and may institute appropriate
12.7 action, including legal proceedings, to recover the reimbursement. Upon demand, the
12.8 collateral source shall pay to the Minnesota Health Fund the sums it would have paid or
12.9 expended on behalf of the individual for the health care services provided by the Minnesota
12.10 Health Plan.
12.11 (b) In addition to any other right to recovery provided in this section, the board shall
12.12 have the same right to recover the reasonable value of health care benefits from a collateral
12.13 source as provided to the commissioner of human services under section 256B.37.
12.14 (c) If a collateral source is exempt from subrogation or the obligation to reimburse the
12.15 Minnesota Health Plan, the board may require that an individual who is entitled to medical
12.16 services from the source first seek those services from that source before seeking those
12.17 services from the Minnesota Health Plan.
12.18 (d) To the extent permitted by federal law, the board shall have the same right of
12.19 subrogation over contractual retiree health care benefits provided by employers as other
12.20 contracts, allowing the Minnesota Health Plan to recover the cost of health care services
12.21 provided to individuals covered by the retiree benefits, unless arrangements are made to
12.22 transfer the revenues of the health care benefits directly to the Minnesota Health Plan.
12.23 Subd. 4.Defaults, underpayments, and late payments.(a) Default, underpayment, or
12.24 late payment of any tax or other obligation imposed by this chapter shall result in the remedies
12.25 and penalties provided by law, except as provided in this section.
12.26 (b) Eligibility for health care benefits under section 62W.04 shall not be impaired by
12.27 any default, underpayment, or late payment of any premium or other obligation imposed
12.28 by this chapter.
12Article 4 Sec. 3.
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13.1 ARTICLE 5
13.2 PAYMENTS
13.3 Section 1. [62W.05] PROVIDER PAYMENTS.
13.4 Subdivision 1.General provisions.(a) All health care providers licensed to practice in
13.5 Minnesota may participate in the Minnesota Health Plan and other providers as determined
13.6 by the board.
13.7 (b) A participating health care provider shall comply with all federal laws and regulations
13.8 governing referral fees and fee splitting including, but not limited to, United States Code,
13.9 title 42, sections 1320a-7b and 1395nn, whether reimbursed by federal funds or not.
13.10 (c) A fee schedule or financial incentive may not adversely affect the care a patient
13.11 receives or the care a health provider recommends.
13.12 Subd. 2.Payments to noninstitutional providers.(a) The Minnesota Health Board
13.13 shall establish and oversee a fair and efficient payment system for noninstitutional providers.
13.14 (b) The board shall pay noninstitutional providers based on rates negotiated with
13.15 providers. Rates shall take into account the need to address provider shortages.
13.16 (c) The board shall establish payment criteria and methods of payment for care
13.17 coordination for patients especially those with chronic illness and complex medical needs.
13.18 (d) Providers who accept any payment from the Minnesota Health Plan for a covered
13.19 health care service shall not bill the patient for the covered health care service.
13.20 (e) Providers shall be paid within 30 business days for claims filed following procedures
13.21 established by the board.
13.22 Subd. 3.Payments to institutional providers.(a) The board shall set annual budgets
13.23 for institutional providers. These budgets shall consist of an operating and a capital budget.
13.24 An institution's annual budget shall be set to cover its anticipated health care services for
13.25 the next year based on past performance and projected changes in prices and health care
13.26 service levels. The annual budget for each individual institutional provider must be set
13.27 separately. The board shall not set a joint budget for a group of more than one institutional
13.28 provider nor for a parent corporation that owns or operates one or more institutional provider.
13.29 (b) Providers who accept any payment from the Minnesota Health Plan for a covered
13.30 health care service shall not bill the patient for the covered health care service.
13.31 Subd. 4.Capital management plan.(a) The board shall periodically develop a capital
13.32 investment plan that will serve as a guide in determining the annual budgets of institutional
13Article 5 Section 1.
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14.1 providers and in deciding whether to approve applications for approval of capital expenditures
14.2 by noninstitutional providers.
14.3 (b) Providers who propose to make capital purchases in excess of $500,000 must obtain
14.4 board approval. The board may alter the threshold expenditure level that triggers the
14.5 requirement to submit information on capital expenditures. Institutional providers shall
14.6 propose these expenditures and submit the required information as part of the annual budget
14.7 they submit to the board. Noninstitutional providers shall submit applications for approval
14.8 of these expenditures to the board. The board must respond to capital expenditure applications
14.9 in a timely manner.
14.10 ARTICLE 6
14.11 GOVERNANCE
14.12 Section 1. Minnesota Statutes 2018, section 14.03, subdivision 2, is amended to read:
14.13 Subd. 2.Contested case procedures.The contested case procedures of the
14.14 Administrative Procedure Act provided in sections 14.57 to 14.69 do not apply to (a)
14.15 proceedings under chapter 414, except as specified in that chapter, (b) the commissioner of
14.16 corrections, (c) the unemployment insurance program and the Social Security disability
14.17 determination program in the Department of Employment and Economic Development, (d)
14.18 the commissioner of mediation services, (e) the Workers' Compensation Division in the
14.19 Department of Labor and Industry, (f) the Workers' Compensation Court of Appeals, or (g)
14.20 the Board of Pardons, or (h) the Minnesota Health Plan.
14.21 Sec. 2. Minnesota Statutes 2018, section 15A.0815, subdivision 2, is amended to read:
14.22 Subd. 2.Group I salary limits.The salary for a position listed in this subdivision shall
14.23 not exceed 133 percent of the salary of the governor. This limit must be adjusted annually
14.24 on January 1. The new limit must equal the limit for the prior year increased by the percentage
14.25 increase, if any, in the Consumer Price Index for all urban consumers from October of the
14.26 second prior year to October of the immediately prior year. The commissioner of management
14.27 and budget must publish the limit on the department's website. This subdivision applies to
14.28 the following positions:
14.29 Commissioner of administration;
14.30 Commissioner of agriculture;
14.31 Commissioner of education;
14.32 Commissioner of commerce;
14Article 6 Sec. 2.
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15.1 Commissioner of corrections;
15.2 Commissioner of health;
15.3 Chief executive officer of the Minnesota Health Plan;
15.4 Commissioner, Minnesota Office of Higher Education;
15.5 Commissioner, Housing Finance Agency;
15.6 Commissioner of human rights;
15.7 Commissioner of human services;
15.8 Commissioner of labor and industry;
15.9 Commissioner of management and budget;
15.10 Commissioner of natural resources;
15.11 Commissioner, Pollution Control Agency;
15.12 Commissioner of public safety;
15.13 Commissioner of revenue;
15.14 Commissioner of employment and economic development;
15.15 Commissioner of transportation; and
15.16 Commissioner of veterans affairs.
15.17 Sec. 3. [62W.06] MINNESOTA HEALTH BOARD.
15.18 Subdivision 1.Establishment.The Minnesota Health Board is established to promote
15.19 the delivery of high quality, coordinated health care services that enhance health; prevent
15.20 illness, disease, and disability; slow the progression of chronic diseases; and improve personal
15.21 health management. The board shall administer the Minnesota Health Plan. The board shall
15.22 oversee:
15.23 (1) the Office of Health Quality and Planning under section 62W.09; and
15.24 (2) the Minnesota Health Fund under section 62W.19.
15.25 Subd. 2.Board composition.(a) The board shall consist of 15 members, including a
15.26 representative selected by each of the five rural regional health planning boards under section
15.27 62W.08 and three representatives selected by the metropolitan regional health planning
15.28 board under section 62W.08. These members shall appoint the following additional members
15.29 to serve on the board:
15Article 6 Sec. 3.
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16.1 (1) one patient member and one employer member; and
16.2 (2) five providers that include one physician, one registered nurse, one mental health
16.3 provider, one dentist, and one facility director.
16.4 (b) Each member shall qualify by taking the oath of office to uphold the Minnesota and
16.5 United States Constitution and to operate the Minnesota Health Plan in the public interest
16.6 by upholding the underlying principles of this chapter.
16.7 Subd. 3.Term and compensation; selection of chair.Board members shall serve four
16.8 years. Board members shall set the board's compensation not to exceed the compensation
16.9 of Public Utilities Commission members. The board shall select the chair from its
16.10 membership.
16.11 Subd. 4.Removal of board member.A board member may be removed by a two-thirds
16.12 vote of the members voting on removal. After receiving notice and hearing, a member may
16.13 be removed for malfeasance or nonfeasance in performance of the member's duties.
16.14 Conviction of any criminal behavior regardless of how much time has lapsed is grounds for
16.15 immediate removal.
16.16 Subd. 5.General duties.The board shall:
16.17 (1) ensure that all of the requirements of section 62W.01 are met;
16.18 (2) hire a chief executive officer for the Minnesota Health Plan who shall be qualified
16.19 after taking the oath of office specified in subdivision 2 and who shall administer all aspects
16.20 of the plan as directed by the board;
16.21 (3) hire a director for the Office of Health Quality and Planning who shall be qualified
16.22 after taking the oath of office specified in subdivision 2;
16.23 (4) hire a director of the Minnesota Health Fund who shall be qualified after taking the
16.24 oath of office specified in subdivision 2;
16.25 (5) provide technical assistance to the regional boards established under section 62W.08;
16.26 (6) conduct necessary investigations and inquiries and require the submission of
16.27 information, documents, and records the board considers necessary to carry out the purposes
16.28 of this chapter;
16.29 (7) establish a process for the board to receive the concerns, opinions, ideas, and
16.30 recommendations of the public regarding all aspects of the Minnesota Health Plan and the
16.31 means of addressing those concerns;
16Article 6 Sec. 3.
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17.1 (8) conduct other activities the board considers necessary to carry out the purposes of
17.2 this chapter;
17.3 (9) collaborate with the agencies that license health facilities to ensure that facility
17.4 performance is monitored and that deficient practices are recognized and corrected in a
17.5 timely manner;
17.6 (10) adopt rules, policies, and procedures as necessary to carry out the duties assigned
17.7 under this chapter;
17.8 (11) establish conflict of interest standards that prohibit providers from receiving any
17.9 financial benefit from their medical decisions outside of board reimbursement, including
17.10 any financial benefit for referring a patient for any service, product, or provider, or for
17.11 prescribing, ordering, or recommending any drug, product, or service;
17.12 (12) establish conflict of interest standards related to pharmaceuticals, medical supplies
17.13 and devices and their marketing to providers so that no provider receives any incentive to
17.14 prescribe, administer, or use any product or service;
17.15 (13) require all electronic health records used by providers be fully interoperable with
17.16 the open source electronic health records system used by the United States Veterans
17.17 Administration;
17.18 (14) provide financial help and assistance in retraining and job placement to Minnesota
17.19 workers who may be displaced because of the administrative efficiencies of the Minnesota
17.20 Health Plan;
17.21 (15) ensure that assistance is provided to all workers and communities who may be
17.22 affected by provisions in this chapter; and
17.23 (16) work with the Department of Employment and Economic Development (DEED)
17.24 to ensure that funding and program services are promptly and efficiently distributed to all
17.25 affected workers. DEED shall monitor and report on a regular basis on the status of displaced
17.26 workers.
17.27 There is currently a serious shortage of providers in many health care professions, from
17.28 medical technologists to registered nurses, and many potentially displaced health
17.29 administrative workers already have training in some medical field. To alleviate these
17.30 shortages, the dislocated worker support program should emphasize retraining and placement
17.31 into health care related positions if appropriate. As Minnesota residents, all displaced workers
17.32 shall be covered under the Minnesota Health Plan.
17Article 6 Sec. 3.
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18.1 Subd. 6.Waiver request duties.Before submitting a waiver application under section
18.2 1332 of the Patient Protection and Affordable Care Act, Public Law Number 111-148, as
18.3 amended, the board shall do the following, as required by federal law:
18.4 (1) conduct or contract for any necessary actuarial analyses and actuarial certifications
18.5 needed to support the board's estimates that the waiver will comply with the comprehensive
18.6 coverage, affordability, and scope of coverage requirements in federal law;
18.7 (2) conduct or contract for any necessary economic analyses needed to support the
18.8 board's estimates that the waiver will comply with the comprehensive coverage, affordability,
18.9 scope of coverage, and federal deficit requirements in federal law. These analyses must
18.10 include:
18.11 (i) a detailed ten-year budget plan; and
18.12 (ii) a detailed analysis regarding the estimated impact of the waiver on health insurance
18.13 coverage in the state;
18.14 (3) establish a detailed draft implementation timeline for the waiver plan; and
18.15 (4) establish quarterly, annual, and cumulative targets for the comprehensive coverage,
18.16 affordability, scope of coverage, and federal deficit requirements in federal law.
18.17 Subd. 7.Financial duties.The board shall:
18.18 (1) establish and collect premiums and the business health tax according to section
18.19 62W.20, subdivision 1;
18.20 (2) approve statewide and regional budgets that include budgets for the accounts in
18.21 section 62W.19;
18.22 (3) negotiate and establish payment rates for providers;
18.23 (4) monitor compliance with all budgets and payment rates and take action to achieve
18.24 compliance to the extent authorized by law;
18.25 (5) pay claims for medical products or services as negotiated, and may issue requests
18.26 for proposals from Minnesota nonprofit business corporations for a contract to process
18.27 claims;
18.28 (6) seek federal approval to bill other states for health care coverage provided to residents
18.29 from out-of-state who come to Minnesota for long-term care or other costly treatment when
18.30 the resident's home state fails to provide such coverage, unless a reciprocal agreement with
18.31 those states to provide similar coverage to Minnesota residents relocating to those states
18.32 can be negotiated;
18Article 6 Sec. 3.
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19.1 (7) administer the Minnesota Health Fund created under section 62W.19;
19.2 (8) annually determine the appropriate level for the Minnesota Health Plan reserve
19.3 account and implement policies needed to establish the appropriate reserve;
19.4 (9) implement fraud prevention measures necessary to protect the operation of the
19.5 Minnesota Health Plan; and
19.6 (10) work to ensure appropriate cost control by:
19.7 (i) instituting aggressive public health measures, early intervention and preventive care,
19.8 health and wellness education, and promotion of personal health improvement;
19.9 (ii) making changes in the delivery of health care services and administration that improve
19.10 efficiency and care quality;
19.11 (iii) minimizing administrative costs;
19.12 (iv) ensuring that the delivery system does not contain excess capacity; and
19.13 (v) negotiating the lowest possible prices for prescription drugs, medical equipment,
19.14 and medical services.
19.15 If the board determines that there will be a revenue shortfall despite the cost control
19.16 measures mentioned in clause (10), the board shall implement measures to correct the
19.17 shortfall, including an increase in premiums and other revenues. The board shall report to
19.18 the legislature on the causes of the shortfall, reasons for the inadequacy of cost controls,
19.19 and measures taken to correct the shortfall.
19.20 Subd. 8.Minnesota Health Board management duties.The board shall:
19.21 (1) develop and implement enrollment procedures for the Minnesota Health Plan;
19.22 (2) implement eligibility standards for the Minnesota Health Plan;
19.23 (3) arrange for health care to be provided at convenient locations, including ensuring
19.24 the availability of school nurses so that all students have access to health care, immunizations,
19.25 and preventive care at public schools and encouraging providers to open small health clinics
19.26 at larger workplaces and retail centers;
19.27 (4) make recommendations, when needed, to the legislature about changes in the
19.28 geographic boundaries of the health planning regions;
19.29 (5) establish an electronic claims and payments system for the Minnesota Health Plan;
19.30 (6) monitor the operation of the Minnesota Health Plan through consumer surveys and
19.31 regular data collection and evaluation activities, including evaluations of the adequacy and
19Article 6 Sec. 3.
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20.1 quality of services furnished under the program, the need for changes in the benefit package,
20.2 the cost of each type of service, and the effectiveness of cost control measures under the
20.3 program;
20.4 (7) disseminate information and establish a health care website to provide information
20.5 to the public about the Minnesota Health Plan including providers and facilities, and state
20.6 and regional health planning board meetings and activities;
20.7 (8) collaborate with public health agencies, schools, and community clinics;
20.8 (9) ensure that Minnesota Health Plan policies and providers, including public health
20.9 providers, support all Minnesota residents in achieving and maintaining maximum physical
20.10 and mental health; and
20.11 (10) annually report to the chairs and ranking minority members of the senate and house
20.12 of representatives committees with jurisdiction over health care issues on the performance
20.13 of the Minnesota Health Plan, fiscal condition and need for payment adjustments, any needed
20.14 changes in geographic boundaries of the health planning regions, recommendations for
20.15 statutory changes, receipt of revenue from all sources, whether current year goals and
20.16 priorities are met, future goals and priorities, major new technology or prescription drugs,
20.17 and other circumstances that may affect the cost or quality of health care.
20.18 Subd. 9.Policy duties.The board shall:
20.19 (1) develop and implement cost control and quality assurance procedures;
20.20 (2) ensure strong public health services including education and community prevention
20.21 and clinical services;
20.22 (3) ensure a continuum of coordinated high-quality primary to tertiary care to all
20.23 Minnesota residents; and
20.24 (4) implement policies to ensure that all Minnesota residents receive culturally and
20.25 linguistically competent care.
20.26 Subd. 10.Self-insurance.The board shall determine the feasibility of self-insuring
20.27 providers for malpractice and shall establish a self-insurance system and create a special
20.28 fund for payment of losses incurred if the board determines self-insuring providers would
20.29 reduce costs.
20.30 Sec. 4. [62W.07] HEALTH PLANNING REGIONS.
20.31 A metropolitan health planning region consisting of the seven-county metropolitan area
20.32 is established. By October 1, 2018, the commissioner of health shall designate five rural
20Article 6 Sec. 4.
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21.1 health planning regions from the greater Minnesota area composed of geographically
21.2 contiguous counties grouped on the basis of the following considerations:
21.3 (1) patterns of utilization of health care services;
21.4 (2) health care resources, including workforce resources;
21.5 (3) health needs of the population, including public health needs;
21.6 (4) geography;
21.7 (5) population and demographic characteristics; and
21.8 (6) other considerations as appropriate.
21.9 The commissioner of health shall designate the health planning regions.
21.10 Sec. 5. [62W.08] REGIONAL HEALTH PLANNING BOARD.
21.11 Subdivision 1.Regional planning board composition.(a) Each regional board shall
21.12 consist of one county commissioner per county selected by the county board and two county
21.13 commissioners per county selected by the county board in the seven-county metropolitan
21.14 area. A county commissioner may designate a representative to act as a member of the board
21.15 in the member's absence. Each board shall select the chair from among its membership.
21.16 (b) Board members shall serve for four-year terms and may receive per diems for meetings
21.17 as provided in section 15.059, subdivision 3.
21.18 Subd. 2.Regional health board duties.Regional health planning boards shall:
21.19 (1) recommend health standards, goals, priorities, and guidelines for the region;
21.20 (2) prepare an operating and capital budget for the region to recommend to the Minnesota
21.21 Health Board;
21.22 (3) collaborate with local public health care agencies to educate consumers and providers
21.23 on public health programs, goals, and the means of reaching those goals;
21.24 (4) hire a regional health planning director;
21.25 (5) collaborate with public health care agencies to implement public health and wellness
21.26 initiatives; and
21.27 (6) ensure that all parts of the region have access to a 24-hour nurse hotline and 24-hour
21.28 urgent care clinics.
21Article 6 Sec. 5.
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22.1 Sec. 6. [62W.09] OFFICE OF HEALTH QUALITY AND PLANNING.
22.2 Subdivision 1.Establishment.The Minnesota Health Board shall establish an Office
22.3 of Health Quality and Planning to assess the quality, access, and funding adequacy of the
22.4 Minnesota Health Plan.
22.5 Subd. 2.General duties.(a) The Office of Health Quality and Planning shall make
22.6 annual recommendations to the board on the overall direction on subjects including:
22.7 (1) the overall effectiveness of the Minnesota Health Plan in addressing public health
22.8 and wellness;
22.9 (2) access to health care;
22.10 (3) quality improvement;
22.11 (4) efficiency of administration;
22.12 (5) adequacy of budget and funding;
22.13 (6) appropriateness of payments for providers;
22.14 (7) capital expenditure needs;
22.15 (8) long-term health care;
22.16 (9) mental health and substance abuse services;
22.17 (10) staffing levels and working conditions in health care facilities;
22.18 (11) identification of number and mix of health care facilities and providers required to
22.19 best meet the needs of the Minnesota Health Plan;
22.20 (12) care for chronically ill patients;
22.21 (13) educating providers on promoting the use of advance directives with patients to
22.22 enable patients to obtain the health care of their choice;
22.23 (14) research needs; and
22.24 (15) integration of disease management programs into health care delivery.
22.25 (b) Analyze shortages in health care workforce required to meet the needs of the
22.26 population and develop plans to meet those needs in collaboration with regional planners
22.27 and educational institutions.
22.28 (c) Analyze methods of paying providers and make recommendations to improve quality
22.29 and control costs.
22Article 6 Sec. 6.
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23.1 (d) Assist in coordination of the Minnesota Health Plan and public health programs.
23.2 Subd. 3.Assessment and evaluation of benefits.(a) The Office of Health Quality and
23.3 Planning shall:
23.4 (1) consider health care benefit additions to the Minnesota Health Plan and evaluate
23.5 them based on evidence of clinical efficacy;
23.6 (2) establish a process and criteria by which providers may request authorization to
23.7 provide health care services and treatments that are not included in the Minnesota Health
23.8 Plan benefit set, including experimental health care treatments;
23.9 (3) evaluate proposals to increase the efficiency and effectiveness of the health care
23.10 delivery system, and make recommendations to the board based on the cost-effectiveness
23.11 of the proposals; and
23.12 (4) identify complementary and alternative health care modalities that have been shown
23.13 to be safe and effective.
23.14 (b) The board may convene advisory panels as needed.
23.15 Sec. 7. [62W.10] ETHICS AND CONFLICT OF INTEREST.
23.16 (a) All provisions of section 43A.38 apply to employees and the chief executive officer
23.17 of the Minnesota Health Plan, the members and directors of the Minnesota Health Board,
23.18 the regional health boards, the director of the Office of Health Quality and Planning, the
23.19 director of the Minnesota Health Fund, and the ombudsman for patient advocacy. Failure
23.20 to comply with section 43A.38 shall be grounds for disciplinary action which may include
23.21 termination of employment or removal from the board.
23.22 (b) In order to avoid the appearance of political bias or impropriety, the Minnesota Health
23.23 Plan chief executive officer shall not:
23.24 (1) engage in leadership of, or employment by, a political party or a political organization;
23.25 (2) publicly endorse a political candidate;
23.26 (3) contribute to any political candidates or political parties and political organizations;
23.27 or
23.28 (4) attempt to avoid compliance with this subdivision by making contributions through
23.29 a spouse or other family member.
23.30 (c) In order to avoid a conflict of interest, individuals specified in paragraph (a) shall
23.31 not be currently employed by a medical provider or a pharmaceutical, medical insurance,
23Article 6 Sec. 7.
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24.1 or medical supply company. This paragraph does not apply to the five provider members
24.2 of the board.
24.3 Sec. 8. [62W.11] CONFLICT OF INTEREST COMMITTEE.
24.4 (a) The board shall establish a conflict of interest committee to develop standards of
24.5 practice for individuals or entities doing business with the Minnesota Health Plan, including
24.6 but not limited to, board members, providers, and medical suppliers. The committee shall
24.7 establish guidelines on the duty to disclose the existence of a financial interest and all
24.8 material facts related to that financial interest to the committee.
24.9 (b) In considering the transaction or arrangement, if the committee determines a conflict
24.10 of interest exists, the committee shall investigate alternatives to the proposed transaction
24.11 or arrangement. After exercising due diligence, the committee shall determine whether the
24.12 Minnesota Health Plan can obtain with reasonable efforts a more advantageous transaction
24.13 or arrangement with a person or entity that would not give rise to a conflict of interest. If
24.14 this is not reasonably possible under the circumstances, the committee shall make a
24.15 recommendation to the board on whether the transaction or arrangement is in the best interest
24.16 of the Minnesota Health Plan, and whether the transaction is fair and reasonable. The
24.17 committee shall provide the board with all material information used to make the
24.18 recommendation. After reviewing all relevant information, the board shall decide whether
24.19 to approve the transaction or arrangement.
24.20 Sec. 9. [62W.12] OMBUDSMAN OFFICE FOR PATIENT ADVOCACY.
24.21 Subdivision 1.Creation of office.(a) The Ombudsman Office for Patient Advocacy is
24.22 created to represent the interests of the consumers of health care. The ombudsman shall
24.23 help residents of the state secure the health care services and health care benefits they are
24.24 entitled to under the laws administered by the Minnesota Health Board and advocate on
24.25 behalf of and represent the interests of enrollees in entities created by this chapter and in
24.26 other forums.
24.27 (b) The ombudsman shall be a patient advocate appointed by the governor, who serves
24.28 in the unclassified service and may be removed only for just cause. The ombudsman must
24.29 be selected without regard to political affiliation and must be knowledgeable about and have
24.30 experience in health care services and administration.
24.31 (c) The ombudsman may gather information about decisions, acts, and other matters of
24.32 the Minnesota Health Board, health care organization, or a health care program. A person
24.33 may not serve as ombudsman while holding another public office.
24Article 6 Sec. 9.
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25.1 (d) The budget for the ombudsman's office shall be determined by the legislature and is
25.2 independent from the Minnesota Health Board. The ombudsman shall establish offices to
25.3 provide convenient access to residents.
25.4 (e) The Minnesota Health Board has no oversight or authority over the ombudsman for
25.5 patient advocacy.
25.6 Subd. 2.Ombudsman's duties.The ombudsman shall:
25.7 (1) ensure that patient advocacy services are available to all Minnesota residents;
25.8 (2) establish and maintain the grievance process according to section 62W.13;
25.9 (3) receive, evaluate, and respond to consumer complaints about the Minnesota Health
25.10 Plan;
25.11 (4) establish a process to receive recommendations from the public about ways to improve
25.12 the Minnesota Health Plan;
25.13 (5) develop educational and informational guides according to communication services
25.14 under section 15.441, describing consumer rights and responsibilities;
25.15 (6) ensure the guides in clause (5) are widely available to consumers and specifically
25.16 available in provider offices and health care facilities; and
25.17 (7) prepare an annual report about the consumer perspective on the performance of the
25.18 Minnesota Health Plan, including recommendations for needed improvements.
25.19 Sec. 10. [62W.13] GRIEVANCE SYSTEM.
25.20 Subdivision 1.Grievance system established.The ombudsman shall establish a
25.21 grievance system for complaints. The system shall provide a process that ensures adequate
25.22 consideration of Minnesota Health Plan enrollee grievances and appropriate remedies.
25.23 Subd. 2.Referral of grievances.The ombudsman may refer any grievance that does
25.24 not pertain to compliance with this chapter to the federal Centers for Medicare and Medicaid
25.25 Services or any other appropriate local, state, and federal government entity for investigation
25.26 and resolution.
25.27 Subd. 3.Submittal by designated agents and providers.A provider may join with,
25.28 or otherwise assist, a complainant to submit the grievance to the ombudsman. A provider
25.29 or an employee of a provider who, in good faith, joins with or assists a complainant in
25.30 submitting a grievance is subject to the protections and remedies under sections 181.931 to
25.31 181.935.
25Article 6 Sec. 10.
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26.1 Subd. 4.Review of documents.The ombudsman may require additional information
26.2 from health care providers or the board.
26.3 Subd. 5.Written notice of disposition.The ombudsman shall send a written notice of
26.4 the final disposition of the grievance, and the reasons for the decision, to the complainant,
26.5 to any provider who is assisting the complainant, and to the board, within 30 calendar days
26.6 of receipt of the request for review unless the ombudsman determines that additional time
26.7 is reasonably necessary to fully and fairly evaluate the relevant grievance. The ombudsman's
26.8 order of corrective action shall be binding on the Minnesota Health Plan. A decision of the
26.9 ombudsman is subject to de novo review by the district court.
26.10 Subd. 6.Data.Data on enrollees collected because an enrollee submits a complaint to
26.11 the ombudsman are private data on individuals as defined in section 13.02, subdivision 12,
26.12 but may be released to a provider who is the subject of the complaint or to the board for
26.13 purposes of this section.
26.14 Sec. 11. [62W.14] AUDITOR GENERAL FOR THE MINNESOTA HEALTH PLAN.
26.15 Subdivision 1.Establishment.There is within the Office of the Legislative Auditor an
26.16 auditor general for health care fraud and abuse for the Minnesota Health Plan who is
26.17 appointed by the legislative auditor.
26.18 Subd. 2.Duties.The auditor general shall:
26.19 (1) investigate, audit, and review the financial and business records of the Minnesota
26.20 Health Plan and the Minnesota Health Fund;
26.21 (2) investigate, audit, and review the financial and business records of individuals, public
26.22 and private agencies and institutions, and private corporations that provide services or
26.23 products to the Minnesota Health Plan, the costs of which are reimbursed by the Minnesota
26.24 Health Plan;
26.25 (3) investigate allegations of misconduct on the part of an employee or appointee of the
26.26 Minnesota Health Board and on the part of any provider of health care services that is
26.27 reimbursed by the Minnesota Health Plan, and report any findings of misconduct to the
26.28 attorney general;
26.29 (4) investigate fraud and abuse;
26.30 (5) arrange for the collection and analysis of data needed to investigate the inappropriate
26.31 utilization of these products and services; and
26Article 6 Sec. 11.
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27.1 (6) annually report recommendations for improvements to the Minnesota Health Plan
27.2 to the board.
27.3 Sec. 12. [62W.15] MINNESOTA HEALTH PLAN POLICIES AND PROCEDURES;
27.4 RULEMAKING.
27.5 Subdivision 1.Exempt rules.The Minnesota Health Plan policies and procedures are
27.6 exempt from the Administrative Procedure Act but, to the extent authorized by law to adopt
27.7 rules, the board may use the provisions of section 14.386, paragraph (a), clauses (1) and
27.8 (3). Section 14.386, paragraph (b), does not apply to these rules.
27.9 Subd. 2.Rulemaking procedures.(a) Whenever the board determines that a rule should
27.10 be adopted under this section establishing, modifying, or revoking a policy or procedure,
27.11 the board shall publish in the State Register the proposed policy or procedure and shall
27.12 afford interested persons a period of 30 days after publication to submit written data or
27.13 comments.
27.14 (b) On or before the last day of the period provided for the submission of written data
27.15 or comments, any interested person may file with the board written objections to the proposed
27.16 rule, stating the grounds for objection and requesting a public hearing on those objections.
27.17 Within 30 days after the last day for filing objections, the board shall publish in the State
27.18 Register a notice specifying the policy or procedure to which objections have been filed
27.19 and a hearing requested and specifying a time and place for the hearing.
27.20 Subd. 3.Rule adoption.Within 60 days after the expiration of the period provided for
27.21 the submission of written data or comments, or within 60 days after the completion of any
27.22 hearing, the board shall issue a rule adopting, modifying, or revoking a policy or procedure,
27.23 or make a determination that a rule should not be adopted. The rule may contain a provision
27.24 delaying its effective date for such period as the board determines is necessary.
27.25 Sec. 13. [62W.151] EXEMPTION FROM RULEMAKING.
27.26 The board and its operation of the Minnesota Health Plan and the Minnesota Health
27.27 Fund is exempt from rulemaking under chapter 14.
27.28 Sec. 14. Minnesota Statutes 2018, section 14.03, subdivision 3, is amended to read:
27.29 Subd. 3.Rulemaking procedures.(a) The definition of a rule in section 14.02,
27.30 subdivision 4, does not include:
27Article 6 Sec. 14.
19-0341 as introduced01/17/19 REVISOR SGS/TM
28.1 (1) rules concerning only the internal management of the agency or other agencies that
28.2 do not directly affect the rights of or procedures available to the public;
28.3 (2) an application deadline on a form; and the remainder of a form and instructions for
28.4 use of the form to the extent that they do not impose substantive requirements other than
28.5 requirements contained in statute or rule;
28.6 (3) the curriculum adopted by an agency to implement a statute or rule permitting or
28.7 mandating minimum educational requirements for persons regulated by an agency, provided
28.8 the topic areas to be covered by the minimum educational requirements are specified in
28.9 statute or rule;
28.10 (4) procedures for sharing data among government agencies, provided these procedures
28.11 are consistent with chapter 13 and other law governing data practices.
28.12 (b) The definition of a rule in section 14.02, subdivision 4, does not include:
28.13 (1) rules of the commissioner of corrections relating to the release, placement, term, and
28.14 supervision of inmates serving a supervised release or conditional release term, the internal
28.15 management of institutions under the commissioner's control, and rules adopted under
28.16 section 609.105 governing the inmates of those institutions;
28.17 (2) rules relating to weight limitations on the use of highways when the substance of the
28.18 rules is indicated to the public by means of signs;
28.19 (3) opinions of the attorney general;
28.20 (4) the data element dictionary and the annual data acquisition calendar of the Department
28.21 of Education to the extent provided by section 125B.07;
28.22 (5) the occupational safety and health standards provided in section 182.655;
28.23 (6) revenue notices and tax information bulletins of the commissioner of revenue;
28.24 (7) uniform conveyancing forms adopted by the commissioner of commerce under
28.25 section 507.09;
28.26 (8) standards adopted by the Electronic Real Estate Recording Commission established
28.27 under section 507.0945; or
28.28 (9) the interpretive guidelines developed by the commissioner of human services to the
28.29 extent provided in chapter 245A.; or
28.30 (10) rules, policies, and procedures adopted by the Minnesota Health Board under chapter
28.31 62W.
28Article 6 Sec. 14.
19-0341 as introduced01/17/19 REVISOR SGS/TM
29.1 ARTICLE 7
29.2 IMPLEMENTATION
29.3 Section 1. APPROPRIATION.
29.4 $....... in fiscal year 2020 is appropriated from the general fund to the Minnesota Health
29.5 Fund under the Minnesota Health Plan to provide start-up funding for the provisions of
29.6 chapter 62W.
29.7 Sec. 2. EFFECTIVE DATE AND TRANSITION.
29.8 Subdivision 1.Effective date.This act is effective the day following final enactment.
29.9 The commissioner of management and budget and the chief executive officer of the
29.10 Minnesota Health Plan shall regularly update the legislature on the status of planning,
29.11 implementation, and financing of this act.
29.12 Subd. 2.Timing to implement.The Minnesota Health Plan must be operational within
29.13 two years from the date of final enactment of this act.
29.14 Subd. 3.Prohibition.On and after the day the Minnesota Health Plan becomes
29.15 operational, a health plan, as defined in Minnesota Statutes, section 62Q.01, subdivision 3,
29.16 may not be sold in Minnesota for services provided by the Minnesota Health Plan.
29.17 Subd. 4.Transition.(a) The commissioners of health, human services, and commerce
29.18 shall prepare an analysis of the state's capital expenditure needs for the purpose of assisting
29.19 the board in adopting the statewide capital budget for the year following implementation.
29.20 The commissioners shall submit this analysis to the board.
29.21 (b) The following timelines shall be implemented:
29.22 (1) the commissioner of health shall designate the health planning regions utilizing the
29.23 criteria specified in Minnesota Statutes, section 62W.07, 30 days after the date of enactment
29.24 of this act;
29.25 (2) the regional boards shall be established three months after the date of enactment of
29.26 this act; and
29.27 (3) the Minnesota Health Board shall be established five months after the date of
29.28 enactment of this act; and
29.29 (4) the commissioner of health, or the commissioner's designee, shall convene the first
29.30 meeting of each of the regional boards and the Minnesota Health Board within 30 days after
29.31 each of the boards has been established.
29Article 7 Sec. 2.
19-0341 as introduced01/17/19 REVISOR SGS/TM
30.1 Subd. 5.Report.Within one year of the effective date of chapter 62W, DEED shall
30.2 provide to the Minnesota Health Board, the governor, and the chairs and ranking members
30.3 of the legislative committees with jurisdiction over health, human services, and commerce
30.4 a report spelling out the appropriations and legislation necessary to assist all affected
30.5 individuals and communities through the transition.
30Article 7 Sec. 2.
19-0341 as introduced01/17/19 REVISOR SGS/TM
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :N/A
BY:M eg B eekman, Community D ev elopment D irector
S U B J E C T:Res olu+on A uthorizing L e/er of S upport for L egis la+on to P rov ide F unding for S mall
Bus ines s es
B ackground:
I n M arch the s tate funded the S mall Busines s Emer gency L oan P rogram w ith a $30 million appropria+on
for busines s es impacted by E xecu+ve O rder s 2 0 -0 4 and 20-08. D E E D immediately began adminis tering the
program, and to date $1 7 million has been loaned out, w ith funds evenly s plit betw een metro and greater
Minnes ota.
T he program, as it is cur rently operated, allow s cer tain eligible s mall bus ines s es in M innesota to borrow up
to $35,000 w ith no inter est and no payments for s ix months. A >er the six month deferment period, loans
must be paid back monthly over fiv e years. U p to 5 0 per cent of the loan may be forgiven if the busines s
remains opera+ng for two y ears following loan dis burs ement. A pplicants are required to prov ide collateral
or a pers onal guarantee for at leas t 20 percent of the loan amount.
Cri+cisms of the program have been that it treats all s mall bus inesses , regardles s of s iz e, the same and does
not take into account the unique challenges the very s mallest busines s es may face in mee+ng the
applica+on criteria. F ur ther, many immigrant and P O C I -ow ned busines s es face addi+onal barriers to
acces s ing financial res ources , which were not addres s ed with how the pr ogr am w as des igned and
adminis tered w hich has led to dis parate outcomes in the dis tribu+on of funds .
A nother cri+cis m of the pr ogram is related to the +ming of the Execu+ve O r der s and has led to certain
bus inesses being excluded. T he program w as created under Execu+ve O r der 2 0 -1 5 , which refers to
bus inesses clos ed under previous orders 20-04 and 2 0 -0 8 s pecifically. Thos e Execu+v e O rders clos ed
res taurants, bars , coffee shops, indoor health clubs , ta/oo parlors, beauty s alons , nail shops,
entertainment v enues , and other places of public accommoda+on. L ater, Execu+v e O r der 20-20 is s ued a
S tay-at-H ome order, clos ing non-es s en+al bus ines s es s uch as flower shops , tobacco s hops , clothing s tor es ,
and other office, s erv ice-oriented and retail es tablis hments not considered es s en+al or already closed.
Because thes e bus ines s es are not included in E xecu+ve O rder 20-15, they are not been eligible for the
s tate's S mall B us ines s Emergency L oan P rogr am. This leav es out a large number of Minnes ota busines s es .
T he H ous e has pr opos ed a bill (H F 1507) to res upply the S mall Busines s Emer gency L oan P rogram with $5 0
million of addi+onal funds from the s tate's appropr ia+on of federal C A R E S act funding. T he bill propos es a
number of amendments to the program des igned to addres s the concerns w hich hav e been raised. The
altera+ons to the pr ogr am w ould include:
Earmarked funds s pecific to v arying s iz es of s mall bus inesses w ith loan ter ms and forgiveness ter ms
tailored to fit the needs and capacity of bus ines s es of that size
Earmarked funds av ailable only to minority -ow ned busines s es
Earmarked funds av ailable for operators of r etail s pace w ith a strong ethnic cultural orienta+on that is
leas ed primar ily to small busines s es prov ided the funds are used to maintain exis+ng v endors as
tenants
T he S enate has als o pr opos ed a bill (S F 4481) to r es upply the S mall Bus ines s E mergency L oan P rogram w ith
an addi+onal $30 million. $20 million from the s tate's G eneral F und and $10 million from the states
alloca+on of C A R E S A ct funds . The bill w ould r equir e that $8 million of the addi+onal funds go towards
grants up to $1 0 ,000 to busines s es with six to ten employ ees , and $2 million go towards grants for
bus inesses w ith fiv e or fewer employees . T he bill does not propose any other changes to the program.
Both bills are cur rently moving through commi/ee. Neither bill proposes to br oaden the list of busines s es
eligible for funds to include thos e busines s es affected by Execu+v e O rder 20-20.
B udget I ssues:
T here are no budget is s ues related to this item.
S trate gic Priories and Values:
Resident Economic S tability
AT TA C H M E N TS :
D escrip+on Upload D ate Ty pe
Res olu+on 5/7/2020 Resolu+on L e/er
H ous e Bill 5/7/2020 Backup M aterial
S enate Bill 5/7/2020 Backup M aterial
Councilmember _______________________ introduced the following resolution
and moved its adoption:
CITY COUNCIL RESOLUTION NO. ______
RESOLUTION AUTHORIZING A LETTER OF SUPPORT FOR
LEGISLATION REGARDING FUNDING FOR SMALL BUSINESSES
WHEREAS, the spread of COVID-19 and the resulting emergency declarations and
emergency orders issued by the Governor have created a great deal of uncertainty and has
dramatically impacted local businesses, particularly small businesses; and
WHEREAS, the City has many micro businesses, many owned by immigrants and people
of color, that are a critical part of the economic vitality of the City are the businesses that have
been hit particularly hard by this emergency; and
WHEREAS, On March 23, 2020, Governor Walz issued Executive Order 20-15, creating
the Small Business Emergency Loan Program with a $30 million appropriation for businesses
impacted by Executive Orders 20-04 and 20-08; and
WHEREAS, The Minnesota Department of Employment and Economic Development
has been administering the program, and issued $17 million of loans to date; and
WHEREAS, The state legislature is now considering separate House and Senate bills to
appropriate additional funds to the program and make amendments to the program
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brooklyn
Center, Minnesota, that the City Council hereby authorizes the Mayor to provide a letter of support
on behalf of the City for legislation that supports and provides funding for small businesses, and
further encourages the legislature to ensure the following program elements are included:
1. Established funds for minority-owned businesses
2. Established funds for businesses of varying sizes with separate loan and
forgiveness criteria appropriate to the needs and capacity of those businesses
3. Small businesses affected by closures due to all Executive Orders be eligible for
funding
May 11, 2020
Date Mayor
ATTEST:
City Clerk
RESOLUTION NO. ______________________
The motion for the adoption of the foregoing resolution was duly seconded by member
___________________
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
1.1 .................... moves to amend H.F. No. 1507, the first engrossment, as follows:
1.2 Delete everything after the enacting clause and insert:
1.3 "Section 1. SMALL BUSINESS EMERGENCY LOAN PROGRAM; TRANSFER.
1.4 $5,000,000 in fiscal year 2020 is transferred from the loan guarantee trust fund account
1.5 in the special revenue fund under Minnesota Statutes, section 116J.881, subdivision 4, to
1.6 the commissioner of employment and economic development for deposit in the small
1.7 business emergency loan account in the special revenue fund under Minnesota Statutes,
1.8 section 116M.18, subdivision 9, to make loans as set forth in governor's Executive Order
1.9 No. 20-15, Providing Immediate Relief to Small Businesses During the COVID-19 Peacetime
1.10 Emergency.
1.11 EFFECTIVE DATE.This section is effective the day following final enactment.
1.12 Sec. 2. SMALL BUSINESS EMERGENCY LOAN PROGRAM; APPROPRIATIONS.
1.13 (a) $50,000,000 in fiscal year 2020 is appropriated from the federal funds received by
1.14 the state of Minnesota under the Coronavirus Aid, Relief, and Economic Security Act,
1.15 Public Law 116-136, Title V, to the commissioner of employment and economic development
1.16 for loans under paragraph (c). The appropriation in this paragraph is reduced by any amount
1.17 appropriated in paragraph (b). Funds are available until December 31, 2020.
1.18 (b) If the appropriation in paragraph (a) is unable to be made before May 15, 2020, then
1.19 $50,000,000 in fiscal year 2020 is appropriated from the general fund to the commissioner
1.20 of employment and economic development for loans under paragraph (c). Funds are available
1.21 until December 31, 2020.
1Sec. 2.
HOUSE RESEARCH AS/JG H1507DE204/23/20 04:49 pm
2.1 (c) Money appropriated under paragraph (a) or (b) shall be used to make loans as set
2.2 forth in governor's Executive Order No. 20-15, Providing Immediate Relief to Small
2.3 Businesses During the COVID-19 Peacetime Emergency. Of the $50,000,000 appropriated:
2.4 (1) $11,000,000 is for making loans as specified in paragraph (d);
2.5 (2) $8,000,000 is for making loans as specified in paragraph (e); and
2.6 (3) $10,000,000 is for making loans as specified in paragraph (f).
2.7 (d) Loans under this paragraph are available only to businesses employing no more than
2.8 the equivalent of six full-time persons in Minnesota. The terms of these loans will be the
2.9 same as those under Executive Order No. 20-15, except that:
2.10 (1) the maximum loan amount is $15,000;
2.11 (2) payments on loans are deferred for 12 months instead of six; and
2.12 (3) up to 100 percent of the loan may be forgiven if the commissioner approves and the
2.13 business continues operating in the community at substantially the same levels for two years
2.14 following loan disbursement.
2.15 (e) Loans under this paragraph are available only to businesses employing the equivalent
2.16 of at least seven but not more than 20 full-time persons in Minnesota. The terms of these
2.17 loans will be the same as those under Executive Order No. 20-15, except that:
2.18 (1) the maximum loan amount is $20,000;
2.19 (2) payments on loans are deferred for 12 months instead of six; and
2.20 (3) up to an additional 25 percent of the loan may be forgiven if the commissioner
2.21 approves and the business continues operating in the community at substantially the same
2.22 levels for a third year following loan disbursement.
2.23 (f) Loans under this paragraph are available only to:
2.24 (1) minority business enterprises, as defined in Minnesota Statutes, section 116M.14,
2.25 subdivision 5; or
2.26 (2) operators of permanent indoor retail space that has a strong ethnic cultural orientation
2.27 and is leased primarily to very small businesses.
2.28 The terms of these loans will be the same as those under Executive Order No. 20-15, except
2.29 that for loans under clause (2):
2.30 (i) there is no maximum loan amount;
2Sec. 2.
HOUSE RESEARCH AS/JG H1507DE204/23/20 04:49 pm
3.1 (ii) payments on loans are deferred for 12 months instead of six;
3.2 (iii) up to an additional 25 percent of the loan may be forgiven if the commissioner
3.3 approves and the business continues operating in the community at substantially the same
3.4 levels for a third year following loan disbursement, however, no part of the loan may be
3.5 forgiven unless the loan recipient has offered forgiveness of at least 50 percent of rent due
3.6 from existing vendors during the COVID-19 peacetime emergency; and
3.7 (iv) loan funds must be used primarily for maintaining existing vendors as tenants, such
3.8 as through full or partial forgiveness of rent during the COVID-19 peacetime emergency.
3.9 EFFECTIVE DATE.This section is effective the day following final enactment."
3.10 Amend the title accordingly
3Sec. 2.
HOUSE RESEARCH AS/JG H1507DE204/23/20 04:49 pm
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :N/A
BY:T im G annon, Police C hief
S U B J E C T:Recogni*on of Police Week and Peace O fficer's Memorial D ay
B ackground:
C o ngres s and the P res ident o f the United S tates has designated May 15 as P eac e O fficers Memorial Day, and
the week in whic h it falls as P o lice Week. O bs ervanc e of P o lice Week and P eac e O ffic ers Memo rial Day will
help recognize our Bro o klyn C enter P olic e Dep artment and o ther law enforc ement agenc ies , as well as offic ers
who died o r were d is ab led in the line o f duty
B udget I ssues:
No budget iss ues
S trate gic Priories and Values:
S afe, S ecure, S table C ommunity
AT TA C H M E N TS :
D escrip*on Upload D ate Ty pe
Res olu*on Police Week 5/4/2020 Cov er Memo
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO.
RESOLUTION RECOGNIZING MAY 10 THROUGH MAY 16, 2020 AS
POLICE WEEK AND MAY 15, 2020, AS POLICE OFFICERS MEMORIAL
DAY
WHEREAS, the Congress and President of the United States has designated May
15 as Peace Officers Memorial Day, and the week in which it falls as Police Week; and
WHEREAS, the members of the law enforcement agency of Brooklyn Center
play an essential role in safeguarding the rights and freedoms of the citizens of Brooklyn Center;
and
WHEREAS, it is important that all citizens know and understand the problems,
duties and responsibilities of their police department, and that members of our police department
recognize their duty to serve the people by safeguarding life and property, by protecting them
against violence or disorder, and by protecting the innocent against deception and the weak against
oppression or intimidation; and
WHEREAS, the police department of Brooklyn Center has grown to be a modern
and scientific law enforcement agency which unceasingly provides a vital public service.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center, Minnesota, that the citizens of Brooklyn Center and all patriotic, civil and
educational organizations be called upon to observe the week of May 10 through 16, 2020, as
Police Week with appropriate ceremonies in which all of our people may join in commemorating
police officers, past and present, who by their faithful and loyal devotion to their responsibilities
have rendered a dedicated service to their communities and, in doing so, have established for
themselves an enviable and enduring reputation for preserving the rights and security of all
citizens.
FURTHER, be it resolved that all citizens of Brooklyn Center be called upon to
observe Friday, May 15, 2020 as Peace Officers Memorial Day in honor of those peace officers
who, through their courageous deeds, have lost their lives or have become disabled in the
performance of duty.
Date Mayor
ATTEST:
City Clerk
RESOLUTION NO. _______________
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :N/A
BY:T im G annon, Chief of Police
S U B J E C T:T he 2020 Biennial Body Worn C amer a A udit
B ackground:
T he S tate of M innes ota r equires all police agencies that use body worn cameras (B W C ) to conduct an
independent audit of policy and prac3 ce ev er y two y ears. T he department had an independent auditor
review and then complete and audit report.
T he C ity C ouncil and the L egis la3 ve Commis s ion on D ata P rac3ces and Per s onal D ata P rivacy are to be
giv en the res ults within 60 days. The C ommis s ion has receiv ed the findings and a Pow er Point pres enta3 on
has been prepar ed to give to the C ity C ouncil.
B udget I ssues:
No C ouncil policy is s ue to consider
S trate gic Priories and Values:
S afe, S ecure, S table C ommunity
AT TA C H M E N TS :
D escrip3on Upload D ate Ty pe
A udit Res ults 5/6/2020 Backup M aterial
Powerpoint 5/6/2020 P resenta3 on
INDEPENDENT AUDIT REPORT
Chief Tim Gannon
Brooklyn Center Police Department
6645 Humboldt Ave. No.
Brooklyn Center, MN 55430
Dear Chief Gannon:
An independent audit of the Brooklyn Center Police Department’s Portable Recording System
(body-worn cameras (BWCs)) was conducted of August 2, 2019. The objective of the audit was
to verify Brooklyn Center Police Department’s compliance with Minnesota Statutes §§13.825
and 626.8473.
Data elements the audit includes:
Minnesota Statute §13.825
• Data Classification
• Retention of Data
• Access by Data Subjects
• Inventory of Portable Recording System Technology
• Use of Agency-Issued Portable Recording Systems
• Authorization to Access Data
• Sharing Among Agencies
Minnesota Statute §626.8473
• Public Comment
• Body-worn Camera Policy
The Brooklyn Center Police Department is located in Hennepin County, Minnesota and employs
forty-nine (49) peace officers. The Brooklyn Center Police Department utilizes Panasonic
Arbitrator body-worn cameras and software and stores the BWC data on a local file server.
Audit Requirement: Data Classification
Determine that the data collected by BWCs are appropriately classified.
Brooklyn Center BWC data is presumptively private. All data collected during the time period
August 1, 2017, through July 31, 2019, is classified as private or non-public data. The Brooklyn
Center Police Department had no instances of the discharge of a firearm by a peace officer, use
of force that resulted in substantial bodily harm, requests from data subjects for the data to be
made accessible to the public, or court orders directing the agency to release the BWC data to the
public. Public data classifications would be documented in the Notes field of the Arbitrator 360°
Back-End Client.
No discrepancies noted.
Audit Requirement: Retention of Data
Determine that the data collected by BWC’s are appropriately retained and destroyed in
accordance with statutes.
The Brooklyn Center Police Department utilizes the General Records Retention Schedule for
Minnesota Cities and agency specified retention periods in the Arbitrator 360° Back-End Client
software system. Either during, or at the conclusion of a BWC recording, an Arbitrator
classification is assigned. Each Arbitrator classification has an associated retention period.
Upon reaching the retention date, data is systematically deleted. All BWC data is maintained for
at least 90 days. Retention periods listed in the Brooklyn Center Police Department’s BWC
policy are inconsistent with classification retention in the Arbitrator 360° software.
Random active videos were selected in the Arbitrator 360° Back-End Client and from a report
produced out of the Arbitrator 360° Back-End Client and verified against the system retention
rules. Each record selected was appropriately scheduled for deletion based on the classification
assigned. Records selected were from the time period August 1, 2017, through July 31, 2019.
BWC video, meta data, and audit trails are purged from the Arbitrator 360° Back-End Client
upon reaching the specified retention period. A server log report details that BWC data existed
and was deleted from the server, but the report does not include a classification in order to
determine if deleted data was appropriately destroyed.
The Brooklyn Center Police Department has not received a request from a data subject to retain
BWC data beyond the applicable retention period.
Discrepancies noted.
Audit Requirement: Access by Data Subjects
Determine that individuals who are the subject of collected data have access to the data, and if
the data subject requests a copy of the data, other individuals who do not consent to its release
must be redacted.
BWC data is available and access may be requested by on-line request form, by email, or in
person. During the time period August 1, 2017 through July 31, 2019, the Brooklyn Center
Police Department had no requests to view BWC data but did fulfill requests for copies of BWC
data from data subjects. Data subjects other than the requestor were redacted using third party
redaction software. Requests for, or access to, BWC data are documented in the case file meta
data in the Laserfiche document imaging system. The assigned Records Manager is responsible
for reviewing data prior to its release.
No discrepancies noted.
Audit Requirement: Inventory of Portable Recording System Technology
Determine the total number of recording devices owned and maintained by the agency; a daily
record of the total number of recording devices actually deployed and used by officers, the
policies and procedures for use of portable recording systems by required by section 626.8473;
and the total amount of recorded audio and video collected by the portable recording system and
maintained by the agency, the agency’s retention schedule for the data, the agency’s procedures
for destruction of the data, and that the data are available to the public.
Brooklyn Center Police Department’s BWC inventory consists of 40 devices. Devices are
assigned to individual officers. The Brooklyn Center Police Department BWC policy requires
patrol officers to wear BWC’s while on duty. Sergeants monitor deployment and use by officers.
A review of randomly selected dates from the patrol schedule were verified against active videos
in Arbitrator 360° Back-End Client and a server log report and confirmed that BWCs are being
worn and activated. The report of active BWC data produced from Arbitrator shows a consistent
number of active videos in each quarter of 2018 and 2019.
A copy of the Brooklyn Center Police Department’s Policy on BWCs is posted on the City’s
website.
The Arbitrator 360° Back-End Client, the Arbitrator report of active BWC data, and the server
log report of deleted BWC data summarize the total amount of BWC data created, deleted, and
stored/maintained.
The Brooklyn Center Police Department utilizes the General Records Retention Schedule for
Minnesota Cities and agency specified retention in Arbitrator 360°.
BWC video is fully deleted from the Arbitrator 360° Back-End Client and local file server upon
reaching the scheduled deletion date. Meta data and audit trail information associated to the
deleted video is not maintained in the Arbitrator 360° Back-End Client.
BWC data is available upon request, and access may be requested by on-line request form, email
or in person.
No discrepancies noted.
Audit Requirement: Use of Agency-Issued Portable Recording Systems
Determine if peace officers are only allowed to use portable recording systems issued and
maintained by the officer’s agency.
The Brooklyn Center Police Department’s BWC policy states that officers who are issued mobile
video recorders (MVR) as part of their uniform, wear and activate the MVR consistent with
policy. The policy does not state that officers are only allowed to use agency issued portable
recording systems issued and maintained by the agency.
Discrepancy noted.
Audit Requirement: Authorization to Access Data
Determine if the agency complies with sections 13.05, Subd. 5, and 13.055 in the operation of
portable recording systems and in maintaining portable recording system data.
Command staff conducted monthly audits throughout 2018 to assess use of and proper
categorization of BWC data. Sergeants and Command staff review all videos relating to
resistance. The operation of BWC use by new employees is assessed and reviewed no less than
monthly.
User access to BWC data is managed by the assignment of group roles and permissions in
Arbitrator. Permissions are based on staff work assignments. The patrol commander is
responsible for managing the assignment of user rights.
Agency personnel are prohibited from accessing BWC data for non-business reasons and from
sharing the data for non-law-enforcement-related purposes. The agency’s BWC policy governs
access to, and sharing of, data. Access is to BWC data is captured in the audit trail.
When BWC data is deleted from Arbitrator, its contents cannot be determined.
The Brooklyn Center Police Department has had no security breaches.
No discrepancies noted.
Audit Requirement: Sharing Among Agencies
Determine if non public BWC data is shared with other law enforcement agencies, government
entities, or federal agencies.
The Brooklyn Center Police Department’s BWC policy allows for the sharing of data with other
law enforcement agencies for legitimate law enforcement purposes only and for the sharing of
data with prosecutors. Sharing of data is documented in writing at the time of disclosure in
Laserfiche case file meta data.
No discrepancies noted.
Audit Requirement: Biennial Audit
Determine if the agency maintains records showing the date and time the portable recording
system data were collected, the applicable classification of the data, how the data are used, and
whether data are destroyed as required.
The Arbitrator 360° Back-End Client, Arbitrator report, and a database server log report
document the date and time portable recording system data was collected. All BWC data for the
audit period is classified as private or non-public data. Laserfiche meta data documents how the
data are used and shared. Active BWC data within the Arbitrator 360° Back-End Client includes
a classification with an associated retention period and a scheduled deletion data.
No discrepancies noted.
Audit Requirement: Portable Recording System Vendor
Determine if portable recording system data stored in the cloud, is stored in accordance with
security requirements of the United States Federal Bureau of Investigation Criminal Justice
Information Services Division Security Policy 5.4 or its successor version.
Brooklyn Center Police Department BWC data is stored on a local file server in the Police
Department and is backed up on a daily basis. A security audit was in process at the time of this
audit.
No discrepancies noted.
Audit Requirement: Public Comment
Determine if the law enforcement agency provided an opportunity for public comment before it
purchased or implemented a portable recording system and if the governing body with
jurisdiction over the budget of the law enforcement agency provided an opportunity for public
comment at a regularly scheduled meeting.
The Brooklyn Center Police Department solicited public comment prior to purchase and
implementation of the body worn camera program. Public comment was solicited on the
department’s Facebook page and at multiple community meetings commencing in 2016. The
Brooklyn Center City Council held a public hearing at their regularly scheduled meeting on
March 13, 2017. The body worn camera program was implemented August 1, 2017.
No discrepancies noted.
Audit Requirement: Body-worn Camera Policy
Determine if a written policy governing the use of portable recording systems has been
established and is enforced.
The Brooklyn Center Police Department’s BWC policy is posted on the agency’s website. The
policy was compared to the requirements of Minn. Stat. § 626.8473. The agency’s policy
includes all minimum requirements of Minn. Stat. § 626.8473, Subd. 3.
No discrepancies noted.
This report was prepared exclusively for the City of Brooklyn Center and Brooklyn Center
Police Department by Lynn Lembcke Consulting. The findings in this report are impartial and
based on information and documentation provided and examined.
Dated: March 22, 2020 Lynn Lembcke Consulting
_____________________________________________
Lynn Lembcke
5/5/2020
1
Portable Recording System
Independent Audit
City Council Meeting, Date
Tim Gannon, Police Chief
BCPD Body Worn Cameras (BWCs)
•BCPD officially began using BWCs on 08/1/2017. This was following a
brief test and evaluation period by a small group of officers.
•MN State Statute 13.825 Subd. 9 requires a biennial audit of portable
recording systems, covering a wide variety of aspects of collection,
handling, and retention of video.
•On 08/02/2019 an independent audit was conducted.
•On 03/22/2020 the results of the audit were received by BCPD.
2
5/5/2020
2
3
Biennial Audit MN State Statute 13.825, Subdivision 9
Audit Requirements Results
Data Classification No discrepancies noted.
Retention of Data Discrepancies noted.
Access by Data Subjects No discrepancies noted.
Inventory of Portable Recording System Technology No discrepancies noted.
Use of Agency‐Issued Portable Recording Systems Discrepancies noted.
Authorization to Access Data No discrepancies noted.
4
Biennial Audit MN State Statute 13.825, Subdivision 9
Audit Requirements Results
Sharing Among Agencies No discrepancies noted.
Biennial Audit No discrepancies noted.
Portable Recording System Vendor No discrepancies noted.
Public Comment No discrepancies noted.
Body‐Worn Camera Policy No discrepancies noted.
5/5/2020
3
3 Listed Discrepancies
1. Retention periods listed in the Brooklyn Center Police Department's
BWC policy are inconsistent with classification retention in the
Arbitrator 360 software.
2. A server log report details that BWC data existed and was deleted
from the server, but the report does not include a classification in
order to determine if deleted data was appropriately destroyed.
3. The policy does not state that officers are only allowed to use
agency issued portable recording systems issued and maintained by
the agency.
5
Discrepancy #1
Retention periods listed in the Brooklyn Center Police Department's
BWC policy are inconsistent with classification retention in the
Arbitrator 360 software.
•In 2017, BCPD updated it’s BWC video classification retention categories to
better align with squad and interview room video categories.
•Once the changes were made, the videos classified under the original
categories (some of which no longer existed) for future videos, remained
saved under their original category labels, for the remainder of their
specific retention periods.
6
5/5/2020
4
Significant changes to classification labels once BWCs were fully implemented.
7
Previous Classification Label New Classification Label
AOA AOA/Emergency Vehicle Response
Booking Arrest
Traffic Citation Citation
DWI Arrest
Emergency Vehicle Response AOA/Emergency Vehicle Response
Informational Field Contact/Routine Call/Warning
Traffic No Citation Field Contact/Routine Call/Warning
Interview Statement‐All others, or Stmt.‐CSC/Arson, or Homicide/Homicide Stmt.
Narcotics Arrest
8
“Current” Classifications Outlined in BCPD Policy 423 (during time of Audit)
Classifications Retention Period Classification Retention Period
AOA/Emergency Vehicle
Response 90 Days (3 months) Statement –All Others 730 Days (2 years)
Arrest 730 Days (2 years) Statement – CSC/Arson Permanent
Citation 730 Days (2 years) Transport 90 Days (3 months)
Critical Incident/Flag for Review 180 Days (6 months)Test/Accidental 90 Days (3 months)
Field Contact/Routine
Call/Warning 90 Days (3 months) Use of Force 2,190 Days (6 years)
Death/Death Statement Permanent Internal investigation 2,190 Days (6 years)
Statement –
Homicide/Homicide Permanent Videos Not Classified 90 Days (3 months)
5/5/2020
5
Discrepancy #2
A server log report details that BWC data existed and was deleted from
the server, but the report does not include a classification in order to
determine if deleted data was appropriately destroyed.
•City staff did not have the ability to run server log report with all the
information requested by independent auditor.
•City IT has been working with the software manufacturer on the
development of a new data query for pulling the desired information from
server logs. This coordination and development is ongoing.
9
Discrepancy #3
The policy does not state that officers are only allowed to use agency
issued portable recording systems issued and maintained by the agency.
•MN State Statute 13.825 Subd. 6 states that “while on duty, a peace officer
may only use a portable recording system issued and maintained by the
officer’s agency in documenting the officer’s activities.”
•BCPD Policy 423 has been updated to include this statutory language.
10
5/5/2020
6
AuditResults
Audit Results Provided to Legislative Commission on Data Practices
and Personal Data Privacy
•Report summarizing results of audit must be provided within 60 days
following completion of the audit.
•A copy of the final report, dated 03/22/2020, was forwarded to the
Commission Administrator and Commission members on 04/07/2020.
11
C ouncil R egular M eeng
DAT E:5 /11/2 0 2 0
TO :C ity Council
F R O M:C ur t Boganey, C ity M anager
T H R O U G H :N/A
BY:M eg B eekman, Community D ev elopment D irector
S U B J E C T:Res olu+on to A pprove a G rant P r ogr am to S upport L ocal Nonpr ofit O rganiza+ons
B ackground:
O n March 13 , 2020 G overnor Walz declared a peace+me s tate of emergency in the S tate of M innesota as
res ult of the outbreak of the C O V I D -19 virus , commonly referred to as cor onav irus . I n the w eek follow ing
the G overnor ’s announcement s ev eral addi+onal execu+ve orders were made by the G ov ernor including
dis couraging gatherings of more than 10 people, par +ally closing dine-in res taur ants , bars , and other
venues, and s hu>ng down M innesota’s K-12 s chools . S ince that +me the S tay-at-H ome order has been
extended through M ay 4.
O n March 17, 2020, the B ro o klyn C enter C ity C o uncil ado pted Resolu+on 2020-035, E xtending the period of a
Mayor-declared lo cal emergency. W ithin that Resolu+o n, the C o uncil allocated $30,000 from the General Fund
to support emergency food assistance to three organiza+ons within the community in response to the immedia te
need caused by the pandemic. T ho se o rganiza+ons were C ommunity E mergency Assistance Pro grams (C E AP ),
C enter for Asia n Pacific I slanders (C A P I ), and West Af rican Family and C ommunity Services (WA F C S).
Given the on-go ing and ever changing nature of the situa+o n it is hard to predict when people will be able to
return to work leaving many Minneso tans, including B rooklyn C enter community members, unsure o f how they
will be able to pro vide basic necessi+es for their fa milies. Addi+o nally, as the pa ndemic con+nues, the needs o f
the co mmunity will also change, based on other resources available and how immediate needs are being met.
T his is increasing the strain o n local nonprofit o rganiza+o ns that have limited reso urces and will likely see a
downturn in funds being provided by businesses a nd dono rs who have also been nega+vely affected by the
C OV I D -19 outbreak.
T he city recently received a request fro m the O rganiza+o n for L iberians in Minnesota (O L M) f o r $5,000 to
suppo rt the wo rk they are doing to serve local B ro o klyn C enter residents during this +me o f crisis. T heir work
includes direct f o o d and rent assistance to elderly a nd undocumented individua ls a nd o utreach and
co mmunica+o n.
O n May 5 the C ity C ouncil considered a proposal from staff to direct funds to a grant program to support loca l
nonprofits directly serving the residents of B ro o klyn C enter with emergency suppo rt services. Grants would be
issued up to a ma ximum of $3,000 per organiza+on. T he C ity C ouncil reviewed the pro posed program and
directly staff to mo ve forward with alloca+ng $12,000 o f f unds to support it.
Applica+ons from local nonprofits and charitable organiza+ons wo uld begin to be accepted on May 15 through
May 27. Applic a+ons will be reviewed and sc o red administra+vely by an inter-department commiGee. Grant
recipients will be a sked to enter into a grant agreement. I n order to track the effec+veness of these dollars, the
C ity will ask all o rganiza+o ns that receive funds to provide a repo rt o n how the f unds were u+lized and outco mes
including; number o f peo ple served, types of services u+lized and any significant results o f services received. A
repo rt of how the funds were allocated and spent would be pro vided back to the C ity C o uncil.
T his program w ill allow any local nonprofit, s erv ing B rooklyn C enter residents , to apply for funding to
s upport their w ork through an open and trans par ent pr ocess. I t will further allow the city to con+nue to
build rela+ons hips with s maller nonprofit and char itable organiza+ons in the community.
City s taff w ill w or k with community partners to dis s eminate informa+on about the program to local
organiza+ons and r eligious groups s o they may apply. S taff is proposing that organiza+ons which have
already receiv ed emergency funding from the C ity would not be eligible to apply. T his w ould allow mor e
organiza+ons to be s erv ed, par+cularly s maller ones w hich may otherwis e be overlooked.
A full program des cr ip+on, along w ith applica+on and applica+on review pr oces s is aGached.
B udget I ssues:
$12,000 from the G eneral F und w ould be allocated for this program.
S trate gic Priories and Values:
Resident Economic S tability
AT TA C H M E N TS :
D escrip+on Upload D ate Ty pe
Powerpoint 5/5/2020 Backup M aterial
G rant P rogram to S uppor t L ocal Nonprofit O r ganiz a+ons
P rogram D es crip+on and A pplica+on 5/5/2020 Backup M aterial
Res olu+on 5/7/2020 Resolu+on L eGer
5/5/2020
1
Emergency Funding Support
for Local Nonprofit
Organizations
City Council Work Session, 5/4/2020
Meg Beekman, Community Development Director
Background
•March 13, 2020 –Executive Order 20‐01 Declaring Peacetime Emergency
•Weeks that followed, several additional Executive Orders; limiting gatherings of 10
or more people, closing places of public accommodations, and closing K‐12 schools.
•Stay‐at‐Home order has been extended through May 18
•March 17, 2020 –City Council adopted Resolution 2020‐035, extended
Mayor‐declared local emergency
•2020‐035 Allocated $30,000 to support three local organizations with emergency
food assistance: CAPI, CEAP, and WAFCS
2
5/5/2020
2
Background
•Continued uncertainty and changing needs of community members
•Increasing strain on local nonprofit and charitable organizations
•City received a request from OLM for $5,000 to support their work serving
local residents
•City recognizes these and other efforts of organizations in the community
serving residents
3
Support for Local Nonprofits
•Purpose: Support for existing local charitable organizations directly serving the residents of Brooklyn
Center with emergency support services
•Maximum Grant Amount: $3,000
•Eligibility:
•Recipients must be a nonprofit organization or a charitable agencies providing existing services to Brooklyn Center residents.
•Funds must be used to provide emergency resources to Brooklyn Center residents.
•Eligible uses include direct costs of emergency services such as food, shelter, and other critical life or safety needs identified
by local nonprofit and charitable organizations.
•Organization must be able to spend all grant funds by September 1, 2020.
•Organization has not already received emergency funding from the City of Brooklyn Center
4
5/5/2020
3
Support for Local Nonprofits
•Scoring Criteria:
•Reporting
•Grant agreement required
•Email update monthly summarizing how the funds are being used (amount spent and services provided);
•Submit a final report that includes:
•Number of Brooklyn Center residents served
•Types of services utilized
•An itemized summary of how the dollars are used
•Any significant results of services received
5
SCORING CRITERIA POINTS
Proposed use of direct emergency support funds fills a visible
life/safety need in Brooklyn Center
10
Organization’s reputation and experience in providing quality
emergency service in Brooklyn Center
10
Organization’s ability to implement in timely manner as
demonstrated by existing organizational and programmatic
infrastructure
10
TOTAL 30
Support for Local Nonprofits
•Application Questions:
•Describe a brief history of the direct services you provide in Brooklyn Center. Approximately what percent of your
services go to Brooklyn Center residents?
•Please describe the services the funds will provide. Include a breakdown of how the requested funds from this grant
will specifically be used and distributed (do not include other services that are provided but not funded with these
funds).
•What steps will you take to ensure these resources will be used by Brooklyn Center residents? How will you provide
evidence of this at the reporting stage?
•Is there anything else you would like to add that pertains to the scoring criteria?
6
5/5/2020
4
Support for Local Nonprofits
•Application process/Timeline:
•Applications reviewed and scored by an intern‐department committee of city staff
•Application period opens
•Applications due: 1 week later
•Applicants who advance: Video conference interviews
•Applicants selected and enter into grant agreements
•Funds available within 1 week of entering into grant agreement
•Funds must be spent by September 1
7
Next Steps
•Based on discussion, program could be brought back at May 11 EDA
meeting for approval
•Could begin advertising week of May 11
8
5/5/2020
5
Policy Questions
•Does the City Council have any questions or concerns about the proposed Program?
•Does the City Council have any changes they would like made to the program?
•Is the City Council supportive of moving forward with the program?
9
Brooklyn Center Emergency Assistance for Direct Support Services
Overview
This grant program from the City of Brooklyn Center is a direct response to the increased need for basic
services as a result of sudden job losses and business closures during the coronavirus pandemic. These
funds will address immediate needs by supporting nonprofit organizations and other charitable agencies
serving residents of Brooklyn Center and who that are seeing a much greater demand for services during
this crisis. The goal of this grant is to quickly provide needed emergency services to Brooklyn Center
residents. Up to $3,000 may be awarded per applicant and the total available pool is $12,000.
Eligibility and criteria
Grant criteria include:
- Recipients must be a nonprofit organization or a charitable agencies providing existing services
to Brooklyn Center residents.
- Funds must be used to provide emergency resources to Brooklyn Center residents.
- Eligible uses include direct costs of emergency services such as food, shelter, and other critical
life or safety needs identified by local nonprofit and charitable organizations.
- Organization must be able to spend all grant funds by September 1, 2020.
- Organization has not already received emergency funding from the City of Brooklyn Center
Scoring criteria will remain consistent through each step of the selection process (see chart below).
However, scores could change as staff gains more information about the organization and proposed
plans through the process.
SCORING CRITERIA POINTS
Proposed use of direct emergency support funds fills a visible
life/safety need in Brooklyn Center
10
Organization’s reputation and experience in providing quality
emergency service in Brooklyn Center
10
Organization’s ability to implement in timely manner as
demonstrated by existing organizational and programmatic
infrastructure
10
TOTAL 30
Reporting
Because this grant is intended to deliver emergency services to residents quickly, there are streamlined
reporting requirements. Grantees will be asked to:
• Enter into a grant agreement with the City of Brooklyn Center;
• Provide an email update after 1 month summarizing how the funds are being used (amount
spent and services provided);
• Submit a report 3 months after the agreement has been signed that includes:
o Number of Brooklyn Center residents served
o Types of services utilized
o An itemized summary of how the dollars are used
o Any significant results of services received.
Process/Timeline
The City is putting in place a streamlined and flexible application process following the below steps.
Times and dates may change, as needed, to advance the selection in a timely manner. Applications will
be reviewed and scored by an inter-department committee of City staff.
1. Grant guidance issued – May 15
2. Application due – May 25
3. Applicants who advance: Video conference interviews – May 29
4. Applicants who advance: Recipients/City enter into Grant Agreements – Week of June 1
5. Funds available – Week of June 8
o Funds will typically be dispersed within a week of entering into a fully executed grant
agreement.
o Applicants who advance will also be asked to fill out a W-9 form, which will be provided
by the City.
Please contact Meg Beekman at mbeekman@ci.brooklyn-center.mn.us with any questions you may
have. Applications are due on May 25, at Noon by email to mbeekman@ci.brooklyn-center.mn.us
Thank you for your service to our community!
Application
Organization information
Organization name:
Organization address:
City, State, Zip:
Is the organization a
501c3? Yes ☐ No ☐ EIN: _________________________
Contact name:
Contact title:
Contact phone:
Contact email:
Budget
Amount requested
(maximum $3,000):
1. Describe a brief history of the direct services you provide in Brooklyn Center. Approximately
what percent of your services go to Brooklyn Center residents?
2. Please describe the services the funds will provide. Include a breakdown of how the requested
funds from this grant will specifically be used and distributed (do not include other services that
are provided but not funded with these funds).
3. What steps will you take to ensure these resources will be used by Brooklyn Center
residents? How will you provide evidence of this at the reporting stage?
4. Is there anything else you would like to add that pertains to the scoring criteria?
Member introduced the following
resolution and moved its adoption:
RESOLUTION NO. 2020-___
RESOLUTION APPROVING ESTABLISHMENT OF THE LOCAL NONPROFIT
EMERGENCY GRANT PROGRAM
WHEREAS, the COVID -19 pandemic resulted in the Governor acting on March 13, 2020
to declare a state of peacetime emergency and the Mayor acting on March 17, 2020 to declare a
local emergency within the City of Brooklyn Center (“City”); and
WHEREAS, on March 17, 2020 the City Council adopted a resolution (“Emergency
Resolution”) agreeing with and extending the Mayor’s local emergency declaration; and
WHEREAS, the City Council is authorized, particularly in times of a local emergency, to
act to protect public health, safety, and welfare; and
WHEREAS, the spread of COVID-19 and the resulting emergency orders issued by the
Governor to protect the public have placed a significant strain on residents and the nonprofit and
charitable organizations working to serve the most vulnerable populations within the City; and
WHEREAS, the City acted as part of the Emergency Resolution to provide emergency
financial assistance to CEAP, CAPI, and WAFCS (collectively, the “Past Recipients”)to assist
them in their efforts to provide food and other necessities to City residents in response to the
emergency;
WHEREAS, the City Council recognized as part of its discussions at its May 4, 2020
work session there are other nonprofits and charitable organizations within the City that provide
critical services to those living within the City and they are struggling to provide those services
in this time of increased need; and
WHEREAS, City staff prepared and presented a memo, which is incorporated herein by
reference, (“Staff Memo”) at the City Council’s May 11, 2020 meeting that set out the details of
a proposed Local Nonprofit Emergency Grant Program (“Grant Program”); and
WHEREAS, the City Council determines it is in the best interest of the public, and is
within its emergency powers, to establish the Grant Program to work with nonprofits and
charitable organizations within the City to provide assistance to those living within the City.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Brooklyn
Center as follows:
1. The City Council hereby establishes the “Local Nonprofit Emergency Grant
Program” as provided in this Resolution. The City Council authorizes a total of
$10,000 to be used for the Grant Program, with individual grants of up to $3,000.
2. The Grant Program shall be structured in accordance with the provisions proposed in
the Staff Memo. The Past Recipients are not be eligible to participate in this Grant
Program.
3. The City Manager and City staff are hereby authorized and directed to do each of the
following regarding the Grant Program:
a. Prepare an application, grant agreement, policy and guidelines, and such other
documents as may be needed;
b. Receive applications and determine eligibility;
c. Enter into such agreements on behalf of the City as may be needed;
d. Distribute grants to eligible nonprofits and charitable organizations;
e. Communicate with the grant recipients as needed to confirm the grants funds
were used in accordance with the terms and conditions of the Grant Program;
and
f. Take all other actions, and execute such other documents, as may be needed to
implement and carry out the Grant Program and the intent of this Resolution.
May 11, 2020
Date Mayor
ATTEST:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
E conomic Development
Authority
V I RT UA L meeting being
conducted by electronic
means in accordance with
Minnesota S tatutes, section
13D.021 P ublic portion
available for connection via
telephone Dial: 1-312-535-
8110 Access Code:
281244297
May 11, 2020
AGE NDA
1.Call to Order
The City Council requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full C ity Counc il packet, including E D A (E conomic Development Authority ), is
available to the public. The packet ring binder is located at the entrance of the council
chambers.
2.Roll Call
3.Approval of Consent Agenda
The following items are considered to be routine by the Economic Development Authority (E D A)
and will been acted by one motion. There will be no separate disc ussion of these items unless a
Commissioner so requests, in whic h event the item will be removed from the c onsent agenda
and considered at the end of Commission Consideration I tems.
a.Approval of Minutes
-Motion to approve the minutes for:
March 9, 2020
4.Commission Consideration Items
a.Resolution A pproving the A cquisition of Certain P roperty L ocated at: 7015
Kyle Avenue N
- Motion to approve the resolution approving the acquisition of certain
property located at 7015 Kyle Avenue N, Brooklyn Center, MN.
b.Resolution A dopting a Small B usiness E mergency F orgivable L oan P rogram
- Motion to Approve a resolution adopting a Small Business Emergency
Forgivable Loan Program
5.Adjournment
Economic Development Authority
DAT E:5/11/2020
TO :C ity C ouncil
F R O M:C urt Boganey, City Manager
T H R O U G H :D r. Reggie Edwards, D eputy C ity M anager
BY:Barb S uciu, C ity C lerk
S U B J E C T:A pproval of Minutes
B ackground:
I n accordance with M innesota S tate S tatute 15.17, the official records of all mee3ngs must be documented
and approved by the governing body.
S trategic Priories and Values:
O pera3onal Excellence
AT TA C H M E N TS :
D escrip3on U pload D ate Type
M arch 9 E DA 5/5/2020 Backup M aterial
03/09/20 -1-
MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
MARCH 9, 2020
CITY HALL – COUNCIL CHAMBERS
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President Mike Elliott at 8:55 p.m.
2. ROLL CALL
President Mike Elliott and Commissioners Marquita Butler, April Graves, Kris Lawrence-
Anderson. Commissioner Dan Ryan was absent and excused. Also present were Executive
Director Curt Boganey, Deputy City Manager Reggie Edwards, Community Development
Director Meg Beekman, City Attorney Troy Gilchrist, and City Clerk Barb Suciu.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Executive Director Boganey stated Agenda Item 4b, included on the final agenda, has been
removed. He added the individual who was selling the property has withdrawn their interest in
selling the property at this time. He noted no action is required, and Item 4b has been removed
from the amended Agenda.
Commissioner Graves moved and Commissioner Lawrence-Anderson seconded to approve the
Agenda and Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
• February 24, 2020
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION NO. 2020-07 APPROVING THE BUSINESS SUBSIDY PROGRAM
Mr. Boganey stated approval of amended language for the EDA Business Subsidy Policy is
recommended. He added this is the same language amendment that was adopted by the City
Council. He noted it is necessary to add the amendment to the EDA’s policy as well.
03/09/20 -2-
City Attorney Gilchrist confirmed the language amendment falls under EDA Business Subsidy
Policy Section 4.2C5D.
Commissioner Graves stated the substance of the change was that the terms “market rate” and
“luxury” were replaced with “high quality”. She added that she and Commissioners Lawrence-
Anderson and Ryan voted to support the amendment. President Elliott and Commissioner Butler
voted against the amendment as President Elliott wanted to add “affordable” and “accessible” to
the amended language.
Commissioner Graves stated the language that was approved was “high-quality amenities”, and
President Elliott and Commissioner Butler voted against the amendment.
Mr. Boganey stated the amended language that was approved, included in the meeting packet, in
a motion made by Commissioner Ryan and seconded by Commissioner Lawrence-Anderson,
states, “… to amend Section 4.2, Item D, Business Subsidy Policy to read “multi-family housing
with high-quality amenities.”
Commissioner Graves moved and Commissioner Lawrence-Anderson seconded to adopt
RESOLUTION NO. 2020-07 Approving an Amendment to the Business Subsidy Program.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Graves moved and Commissioner Lawrence-Anderson seconded adjournment of
the Economic Development Authority meeting at 9:00 p.m.
Motion passed unanimously.
03/09/20 -3-
STATE OF MINNESOTA)
COUNTY OF HENNEPIN) ss. Certification of Minutes
CITY OF BROOKLYN CENTER)
The undersigned, being the duly qualified and appointed Secretary of the Economic Development
Authority (EDA) of the City of Brooklyn Center, Minnesota, certifies:
1. That attached hereto is a full, true, and complete transcript of the minutes of a Regular
Session of the Economic Development Authority (EDA) of the City of Brooklyn Center
held on March 9, 2020.
2. That said meeting was held pursuant to due call and notice thereof and was duly held at
Brooklyn Center City Hall.
3. That the Economic Development Authority (EDA) adopted said minutes at its May 11,
2020 Regular Session.
Secretary President
Economic Development Authority
DAT E:5/11/2020
TO :C ity C ouncil
F R O M:C urt Boganey, City Manager
T H R O U G H :N/A
BY:M eg Beekman, C ommunity D evelopment D irector
S U B J E C T:Res olu+on A pproving the A cquisi+on of Certain P roperty L ocated at: 7015 Kyle Avenue N
B ackground:
The property, 7015 Kyle Avenue N, is a res iden+al property with a total size of 0.65 acres . I t is acces s ed off
of 70th Avenue by a public roadw ay w hich func+ons as the drivew ay to the property. The property is
currently z oned R-5: M ul+ple Family Residence, and is guided under the 2040 Comprehensive P lan with a
F uture Land Use of Neighborhood Mixed-Use. A lthough z oned as an R-5 property, the property has been
u+lized as a s ingle-family residence with the primary home being constructed in 1965. The property had a
2019 asses s ed market value of $240,000 and a 2020 as s ess market value of $258,000.
The property is currently owned by M arcella H agen. C onversa+ons with the property ow ner and the City
regarding a poten+al s ale have been happening for the past 5-10 years, though no terms w ere discussed as
Mrs . H agen had indicated s he was not ready to s ell her property. Early in 2020, Mrs H agen and her family
had a repres enta+ve reach out to the C ity to inquire about a poten+al purchas e. The C ity provided a draA
purchas e agreement to indicate the terms of a sale. Mrs . H agen and her family met to discuss the terms and
decided to proceed with the s ale. A purchase price based on the then current as s essed market value of
$240,000 plus $5,000 for reloca+on was agreed to. The purchase agreement was s igned by M rs H agen,
how ever before it could be pres ented to the E DA , Mrs . H agen changed her mind and asked that it be
w ithdraw n.
Recently, M rs. H agen and her family decided that selling the property w ould be the best op+on and once
again reached out the E DA . The s ame terms w ere agreed to w ith the excep+on of a delayed closing date to
S eptember 1 to allow +me for Mrs . H agen to move out of the home.
The total cos t to the E DA as s ociated w ith the acquis i+on of the property is $245,000. This amount includes
the purchase price of the property of $240,000 and moving expens es to the homeow ner of $5,000. The
purchas e agreement allows for the property owner to remove any fixtures w ithin the home under the
condi+on it does not affect the s afety or s ecurity of the s tructure. The purchase agreement allow s the C ity
to ins pect the property, w hich w ould occur to determine the cost of demoli+on. U pon clos ing on the
property, the C ity would demolish the s tructure on the property, w hich is es+mated to cost around
$20,000.
The E DA currently owns the tw o proper+es directly to the wes t and south this property. The E DA -ow ned
property has a total size of 0.8 acres . Staff has also been in communica+on with the staff and board of St.
Alphonsus church, which has indicated a possible interest in leveraging excess land they own that is adjacent to
Mrs. Hagen's property. Staff will con+nue these conversa+ons with the church.
The E DA has had a policy of acquiring and as s embling single family proper+es along Brooklyn Boulevard for
many years. W ith the reconstruc+on of Brooklyn Boulevard and the upcoming land use s tudy and crea+on
of an overlay dis trict it is an+cipated that the corridor w ill trans i+on to higher intensity land uses over +me.
A cquiring proper+es as they become available is a strategy for targeted redevelopment.
B udget I ssues:
T I F #3 F unds w ill be used for the acquisi+on of the property.
S trategic Priori es and Values:
Targeted Redevelopment
AT TA C H M E N TS :
D escrip+on U pload D ate Type
L oca+on Map 3/2/2020 Backup M aterial
A erial Map 3/2/2020 Backup M aterial
P urchas e A greement 5/4/2020 Backup M aterial
Res olu+on 5/4/2020 Resolu+on LeHer
Location Map: 7015 Kyle Avenue N.
Aerial Map: 7015 Kyle Avenue N
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564933v1 BR305-157
PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement (“Purchase Agreement”) is entered into this ___ day
of _______________, 2020, by and between Marcella Hagen (“Seller”) and the Economic
Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic
under the laws of the State of Minnesota (“Buyer”).
2. SALE OF PROPERTY. Seller is the owner of that certain real estate (“Property”)
located at 7015 Kyle Avenue N, Brooklyn Center, MN 55429, Hennepin County, Minnesota and
legally described as follows:
3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained,
Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the
exclusive right to purchase the Property and all buildings, improvements, and fixtures thereon,
together with all appurtenances, including, but not limited to, plant, shrubs, trees, and grass.
4. NO PERSONAL PROPERTY INCLUDED IN SALE: There are no items of personal
property or fixtures owned by Seller and currently located on the Property included in the
Purchase Price for purposes of this sale.
5. PURCHASE PRICE AND TERMS:
A. PURCHASE PRICE: The total Purchase Price (“Purchase Price”) for the
Property is Two Hundred Forty Thousand and No/100ths Dollars ($240,000.00).
B. MOVING EXPENSES: The sum of Five Thousand Dollars ($5,000.00) to
reimburse Seller for Seller’s moving expenses (“Moving Expenses”) shall be paid
by Buyer to Seller at Closing.
C. TERMS:
(1) BALANCE DUE SELLER: Buyer agrees to pay the Purchase Price to
Seller by check or wire transfer on the Closing Date (“Closing”).
(2) DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller
agrees to execute and deliver a Warranty Deed conveying marketable title
to the Property to Buyer, subject only to the following exceptions:
a. Building and zoning laws, ordinances, and state and federal
regulations.
b. Reservation of minerals or mineral rights to the State of
Minnesota, if any.
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564933v1 BR305-157
c. Public utility and drainage easements of record which will not
interfere with Buyer’s intended use of the Property.
d. Title defects waived by Buyer pursuant to paragraph 6 below.
6. CONTINGENCIES.
A. Notwithstanding any other provision in this Agreement to the contrary, the parties
agree that the purchase of the Property is subject to the following contingencies,
which must be accepted or waived before the expiration of the Due Diligence
Period hereafter defined, unless a shorter period is expressly provided herein:
(1) Title to the Property shall be acceptable to Buyer, in its sole discretion.
(2) The Property’s environmental condition must be acceptable to Buyer, in
its sole discretion.
(3) Buyer shall have the right during the Due Diligence Period to conduct
such soil tests/geotechnical analyses, inspections, reviews, examinations,
storm water/drainage requirement analyses, pre-demolition assessments,
and surveys, if any, as Buyer deems necessary at Buyer’s expense. The
results of the same shall be satisfactory to Buyer in its sole discretion.
B. Buyer shall satisfy or waive the above contingencies on or before the expiration
of the Due Diligence Period. On or before the expiration of the Due Diligence
Period, Buyer shall, by giving written notice to Seller, either:
(1) Terminate this Agreement if any one or more of the contingencies above
have not been satisfied to the satisfaction of Buyer; or
(2) Waive the contingencies listed above and proceed to closing.
If Buyer elects to terminate this Agreement under paragraph (B)(1) above, then
upon, Seller’s receipt of Buyer’s written notice of termination, this Purchase
Agreement shall be null and void and neither party shall have any further
obligation to the other.
If Buyer elects to waive the contingencies and proceed under paragraph (B)(2)
above, the parties shall proceed to closing as provided in this Purchase
Agreement.
7. DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER.
A. Warranty Deed free and clear of encumbrances subject only to the exceptions
stated in paragraphs 5 (C) (2) (a), (b), (c), and (d) of this Purchase Agreement.
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564933v1 BR305-157
B. Standard form Affidavit of Seller.
C. Well disclosure certificate, if required.
D. Waiver of Relocation Benefits in the form attached hereto as Exhibit A.
E. Escrow and Occupancy Agreement in the form attached hereto as Exhibit B.
F. Such other documents as may be reasonably required by Buyer’s title examiner or
title insurance company.
8. CLOSING DATE/DUE DILIGENCE PERIOD. For a maximum of 90 days after the
mutual execution of the Purchase Agreement (the “Due Diligence Period”), Buyer shall have the
right, but not the obligation, to conduct an investigation of the Property as described in paragraph
6 (A) of this Purchase Agreement. The closing of the sale of the Property shall take place
September 1, 2020. The closing shall take place at the offices of Economic Development
Authority of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430 (or at
such other location as the parties shall agree, including a remote closing, with documents to be
delivered in escrow to the title company).
9. DELIVERY OF DOCUMENTS. Within seven business days of signing the Purchase
Agreement, Seller shall have provided Buyer with copies of all relevant material in Seller’s
possession relating to the Property, including but not limited to, title reports, soil reports,
environmental studies, surveys, environmental reports, agreements with governmental
authorities, or other records of the Property that Seller has in Seller’s possession (collectively,
the “Documents”).
10. INSPECTION OF PROPERTY. During the Due Diligence Period, Seller shall allow
Buyer and Buyer’s agents access to the Property without charge and at all reasonable times for
Buyer’s inspection of the Property. This includes the right of Buyer and its agents to take soil
borings of the Property. Buyer shall pay all costs and expenses of such inspections and any
testing carried out in connection therewith, and shall hold Seller and the Property harmless from
all costs and liabilities relating to Buyer’s activities. Buyer shall not damage, encumber, or
permit a lien or claim to result from its activities, or alter the Property in any way. Buyer shall
not have the right to do any intrusive testing without the prior written authorization of Seller.
Buyer shall repair and restore any damage to the Property caused by or occurring during Buyer’s
inspection and testing and return the Property to substantially the same condition as existed prior
to such entry. Buyer’s obligations under this paragraph shall survive termination of this
Agreement.
11. ENVIRONMENTAL INSPECTION. Seller, prior to vacation of the Property, shall
remove all substances that, under state or federal law, must be disposed of at an approved
disposal facility. This requirement does not apply to hazardous substances integrated into the
building improvements (e.g., asbestos) or soil but applies only to movable equipment, supplies
and materials that are located or stored on the Property. Buyer and Seller will conduct a joint
inspection of the Property at a time to be mutually agreed upon prior to closing for the purpose of
identifying materials that must be removed by Seller.
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12. LEAD. If the dwelling structure on the Property was constructed prior to 1978, a lead
paint disclosure accompanies this Agreement.
13. REAL ESTATE TAXES.
A. Seller will pay at or prior to closing all real estate taxes due and payable in 2019
and prior years on the Property, including any delinquent real estate taxes.
B. Real estate taxes due and payable in 2020 shall be prorated as of the date of
closing between Buyer and Seller. If the amount of real estate taxes due and
payable in 2020 is not available on the date of closing, the pro-rated taxes will be
based on the amount of real estate taxes due and payable in 2019.
14. SPECIAL ASSESSMENTS.
A. Seller shall pay on or prior to closing the balance of all special assessments levied
for payment in 2019 and prior years. Buyer shall pay all special assessments
pending or levied for payment with real estate taxes payable in 2020.
B. Seller shall pay any deferred real estate taxes or special assessments, payment of
which is required as a result of the Closing of this sale.
C. As of the date of this Purchase Agreement, Seller has not received a notice of
hearing for a new public improvement project from any governmental assessing
authority, the costs of which project may be assessed against the Property.
D. Notwithstanding any other provision of this Agreement, Seller shall at all times be
responsible to pay special assessments, if any, for delinquent sewer or water bills,
removal of diseased trees prior to the date of this Purchase Agreement, snow
removal, or other current services provided to the Property by the assessing authority
while Seller is in possession of the Property.
15. MARKETABILITY OF TITLE. Buyer shall, within a reasonable time after execution
of this Purchase Agreement by both parties, obtain a commitment for title insurance or other
evidence satisfactory to Buyer (“Title Evidence”) for the Property. Buyer shall have ten (10)
business days after receipt of a fully executed purchase agreement and the Title Evidence to
examine the same and to deliver written objections to title, if any, to Seller. Seller shall have
until the expiration of the Due Diligence Period (or such later date as the parties may agree upon)
to make title marketable, at Seller’s expense. In the event that title to the Property cannot be
made marketable or is not made marketable by Seller by the expiration of the Due Diligence
Period, then, at the option of Buyer, Buyer may terminate this Purchase Agreement in
accordance with paragraph 6 (B)(1) of this Purchase Agreement.
16. CLOSING COSTS AND RELATED ITEMS. Seller will pay: (a) any deed transfer
taxes and conservation fees and recording fees for all instruments required to establish
marketable title in Seller; (b) any deed transfer taxes and conservation fees required to enable
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564933v1 BR305-157
Buyer to record its deed from Seller under this Purchase Agreement; (c) the cost of the title
commitment, title search, name searches, and exam fees; and (d) one-half of the closing fee
charged by the title insurance or other closing agent, if any, utilized to close the transaction
contemplated by this Purchase Agreement. Buyer shall be responsible for the payment of the
following costs: (a) recording fees for deed from Seller under this Purchase Agreement; (b) the
title insurance premium, and endorsements, if any; and (c) one-half of the closing fee charged by
the title insurance or other closing agent, if any, utilized to close the transaction contemplated by
this Purchase Agreement. Each party shall be responsible for its own attorneys’ fees and costs.
17. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses
that there is not an individual sewage treatment system on or serving the Property. If there is an
individual sewage treatment system on or serving the Property, Seller discloses that the system is
not in use. In the event there is a sewage treatment system, a map of said location of the system
is attached.
18. WELL DISCLOSURE. Seller discloses that the status and number of wells on the
Property has not changed since the last previously filed Well Disclosure Certificate No.
1017287.
19. SELLER’S WARRANTIES. Seller warrants that buildings, if any, are entirely within
the boundary lines of the Property. Seller warrants that there is a right of access to the Property
from a public right-of-way. Seller warrants that there has been no labor or materials furnished to
the Property for which payment has not been made. Seller warrants that there are no present
violations of any restrictions relating to the use or improvement of the Property. Seller
represents that Seller has good and marketable simple title interest to the Property and no
consents or approvals from any third parties are required. Seller represents that there are no third
parties in possession of the Property, or any part thereof; and that there are no leases, oral, or
written, affecting the Property or any part thereof. Seller agrees that Seller will not enter into a
lease for the Property after the date of this Purchase Agreement. Seller agrees to pay all charges
for sewer, water, electric, gas, rubbish removal, Internet, cable/satellite television, and any other
utility charges incurred prior to closing and during Seller’s occupancy of the Property pursuant to
the Escrow and Occupancy Agreement. These warranties shall survive the Closing of this
transaction.
20. RELOCATION BENEFITS. Seller acknowledges that Seller initiated negotiations
with Buyer for the transaction contemplated by this Purchase Agreement, and that this
transaction is not made under threat of condemnation by Buyer. Seller agrees to waive any and
all relocation benefits, assistance and services to which Seller might otherwise be eligible. Seller
agrees to provide to Buyer at closing an executed waiver of relocation benefits in substantially
the form of the attached Exhibit A.
21. NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and
warranties contained in this Purchas Agreement shall not be merged into any instruments or
conveyance delivered at closing, and the parties shall be bound accordingly.
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22. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the
entire agreement between the parties, and no other agreement prior to this Purchase Agreement
or contemporaneous herewith shall be effective except as expressly set forth or incorporated
herein. Any purported amendment to this Purchase Agreement shall not be effective unless it
shall be set forth in writing and executed by both parties or their respective successors or assigns.
23. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure
to the benefit of the parties and their respective heirs, executors, administrators, successors, and
assigns. Buyer shall not assign its rights and interest hereunder without notice to Seller.
24. NOTICE. Any notice, demand, request or other communication which may or shall be
given or served by the parties shall be deemed to have been given or served on the date the same is
deposited in the United States Mail, registered or certified, postage prepaid and addressed as
follows:
SELLER: Marcella Hagen
7015 Kyle Avenue N
Brooklyn Center, MN 55430
BUYER: Economic Development Authority of Brooklyn Center
Attn: Meg Beekman
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430-2113
AGENT: Kennedy & Graven, Chartered
Attn: Troy Gilchrist
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
25. BROKER COMMISSIONS. Buyer and Seller each represent and warrant to the other that
there is no broker involved in this transaction with whom either has negotiated or to whom the
representing party has agreed to pay a broker commission or finder’s fee in connection with
negotiations for purchase or sale of the Property. Buyer and Seller agree to indemnify, defend, and
hold the other party harmless against any and all claims of brokers, finders, or the like, and against
the claims of all third parties, claiming any right to commission or compensation by or through acts
of the indemnifying party or its partners, agents, or affiliates in connection with this Purchase
Agreement. The indemnifying party’s indemnity obligations shall include all damages, losses,
costs, liabilities, and expenses, including reasonable attorneys’ fees and litigation costs, which may
be incurred by the other party.
26. METHAMPHETAMINE DISCLOSURE. To the best of Seller’s knowledge,
methamphetamine production has not occurred on the Property.
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564933v1 BR305-157
27. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced by
the parties, provided that any action for specific enforcement is brought within six months after the
date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach
of this agreement; the parties reserve all other remedies available at law or in equity.
28. REMOVAL OF FIXTURES AND MATERIALS. The Seller shall have the opportunity
to salvage any fixtures or materials from the buildings on the Property provided that the buildings
are left secure and provided that removal does not create any hazardous conditions. Removal must
be complete as of closing. Any fixtures or materials which remain on the Property after Seller’s
occupancy has been terminated shall be deemed to have been abandoned and shall become the
exclusive property of Buyer. Seller assumes all risk in undertaking any salvage operations. Seller
shall not permit the attachment of any lien or encumbrance on the Property as a result of this or
other work thereof.
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IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above.
SELLER
By:
Marcella Hagen
BUYER
Economic Development Authority of
Brooklyn Center, Minnesota
By:
Its: President
By:
Its: Executive Director
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564933v1 BR305-157
EXHIBIT A
FORM OF
WAIVER OF RELOCATION BENEFITS
The undersigned, acknowledges that I met with a representative of the Economic Development
Authority of Brooklyn Center, Minnesota (EDA) on _______________, 2020. The representative,
_____________________________, explained that in the event that the EDA acquires my
property located at 7015 Kyle Avenue North, Brooklyn Center, Minnesota, I may be entitled to
certain relocation benefits, in addition to the amount of money being paid to me to acquire my
property. These benefits may include:
1. Moving Expenses:
a. A payment for actual reasonable moving expenses; or
b. A fixed payment determined in accordance with the applicable schedule approved
by the Federal Highway Administration.
2. Replacement Housing Payment:
A 180-day homeowner is eligible to receive a replacement housing payment to cover the
following costs:
a. If the homeowner must pay more to buy a comparable replacement home than
homeowner receives for the property, then homeowner may be compensated for the
difference.
b. Homeowners may be entitled to compensation for incidental and closing expenses
related to the purchase of a decent, safe, and sanitary replacement home, such as
recording fees, title insurance, appraisal, and inspection fees.
c. If a homeowner must pay a higher interest rate on a mortgage to finance the
purchase of a replacement home than the rate on the mortgage of the property, then
homeowner may be entitled to compensation for increased mortgage interest costs.
3. Other Relocation Assistance:
This includes referrals and other assistance to help the owner(s) relocate to a comparable
decent, safe, and sanitary dwelling. These payments and services are required under the
regulations of the Department of Housing and Urban Development (HUD). The owner(s)
cannot be required to move from his/her home unless he/she is given reasonable
opportunities to relocate to a comparable decent, safe and sanitary dwelling unit that he/she
can afford.
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564933v1 BR305-157
Finally, it was explained to me that the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 as amended, entitles me to these relocation benefits; and if I sign
this waiver, I will be waiving those relocation benefits.
After having these benefits explained to me, I agree to waive them. In signing this waiver, I
acknowledge that no threats have been made to me, either expressly or by implication that my
property will be taken from me through condemnation. If after signing this waiver, I attempt to
collect relocation benefits, I will have to prove that, contrary to what I am agreeing to in this
waiver, my waiver of relocation benefits was not entered into voluntarily. This wavier is
conditioned upon the Economic Development Authority of Brooklyn Center, Minnesota
purchasing my property for the gross purchase price of $240,000.00 and payment of $5,000.00 in
moving expenses. If this commitment to me is not fulfilled, this waiver is null and void.
_________________
Date
By
WITNESS:
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PURCHASE AGREEMENT
1. PARTIES. This Purchase Agreement (“Purchase Agreement”) is entered into this ___ day
of _______________, 2020, by and between Marcella Hagen (“Seller”) and the Economic
Development Authority of Brooklyn Center, Minnesota, a public body corporate and politic
under the laws of the State of Minnesota (“Buyer”).
2. SALE OF PROPERTY. Seller is the owner of that certain real estate (“Property”)
located at 7015 Kyle Avenue N, Brooklyn Center, MN 55429, Hennepin County, Minnesota and
legally described as follows:
3. OFFER/ACCEPTANCE. In consideration of the mutual agreements herein contained,
Buyer offers and agrees to purchase and Seller agrees to sell and hereby grants to Buyer the
exclusive right to purchase the Property and all buildings, improvements, and fixtures thereon,
together with all appurtenances, including, but not limited to, plant, shrubs, trees, and grass.
4. NO PERSONAL PROPERTY INCLUDED IN SALE: There are no items of personal
property or fixtures owned by Seller and currently located on the Property included in the
Purchase Price for purposes of this sale.
5. PURCHASE PRICE AND TERMS:
A. PURCHASE PRICE: The total Purchase Price (“Purchase Price”) for the
Property is Two Hundred Forty Thousand and No/100ths Dollars ($240,000.00).
B. MOVING EXPENSES: The sum of Five Thousand Dollars ($5,000.00) to
reimburse Seller for Seller’s moving expenses (“Moving Expenses”) shall be paid
by Buyer to Seller at Closing.
C. TERMS:
(1) BALANCE DUE SELLER: Buyer agrees to pay the Purchase Price to
Seller by check or wire transfer on the Closing Date (“Closing”).
(2) DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller
agrees to execute and deliver a Warranty Deed conveying marketable title
to the Property to Buyer, subject only to the following exceptions:
a. Building and zoning laws, ordinances, and state and federal
regulations.
b. Reservation of minerals or mineral rights to the State of
Minnesota, if any.
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564933v1 BR305-157
c. Public utility and drainage easements of record which will not
interfere with Buyer’s intended use of the Property.
d. Title defects waived by Buyer pursuant to paragraph 6 below.
6. CONTINGENCIES.
A. Notwithstanding any other provision in this Agreement to the contrary, the parties
agree that the purchase of the Property is subject to the following contingencies,
which must be accepted or waived before the expiration of the Due Diligence
Period hereafter defined, unless a shorter period is expressly provided herein:
(1) Title to the Property shall be acceptable to Buyer, in its sole discretion.
(2) The Property’s environmental condition must be acceptable to Buyer, in
its sole discretion.
(3) Buyer shall have the right during the Due Diligence Period to conduct
such soil tests/geotechnical analyses, inspections, reviews, examinations,
storm water/drainage requirement analyses, pre-demolition assessments,
and surveys, if any, as Buyer deems necessary at Buyer’s expense. The
results of the same shall be satisfactory to Buyer in its sole discretion.
B. Buyer shall satisfy or waive the above contingencies on or before the expiration
of the Due Diligence Period. On or before the expiration of the Due Diligence
Period, Buyer shall, by giving written notice to Seller, either:
(1) Terminate this Agreement if any one or more of the contingencies above
have not been satisfied to the satisfaction of Buyer; or
(2) Waive the contingencies listed above and proceed to closing.
If Buyer elects to terminate this Agreement under paragraph (B)(1) above, then
upon, Seller’s receipt of Buyer’s written notice of termination, this Purchase
Agreement shall be null and void and neither party shall have any further
obligation to the other.
If Buyer elects to waive the contingencies and proceed under paragraph (B)(2)
above, the parties shall proceed to closing as provided in this Purchase
Agreement.
7. DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER.
A. Warranty Deed free and clear of encumbrances subject only to the exceptions
stated in paragraphs 5 (C) (2) (a), (b), (c), and (d) of this Purchase Agreement.
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564933v1 BR305-157
B. Standard form Affidavit of Seller.
C. Well disclosure certificate, if required.
D. Waiver of Relocation Benefits in the form attached hereto as Exhibit A.
E. Escrow and Occupancy Agreement in the form attached hereto as Exhibit B.
F. Such other documents as may be reasonably required by Buyer’s title examiner or
title insurance company.
8. CLOSING DATE/DUE DILIGENCE PERIOD. For a maximum of 90 days after the
mutual execution of the Purchase Agreement (the “Due Diligence Period”), Buyer shall have the
right, but not the obligation, to conduct an investigation of the Property as described in paragraph
6 (A) of this Purchase Agreement. The closing of the sale of the Property shall take place
September 1, 2020. The closing shall take place at the offices of Economic Development
Authority of Brooklyn Center, 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430 (or at
such other location as the parties shall agree).
9. DELIVERY OF DOCUMENTS. Within seven business days of signing the Purchase
Agreement, Seller shall have provided Buyer with copies of all relevant material in Seller’s
possession relating to the Property, including but not limited to, title reports, soil reports,
environmental studies, surveys, environmental reports, agreements with governmental
authorities, or other records of the Property that Seller has in Seller’s possession (collectively,
the “Documents”).
10. INSPECTION OF PROPERTY. During the Due Diligence Period, Seller shall allow
Buyer and Buyer’s agents access to the Property without charge and at all reasonable times for
Buyer’s inspection of the Property. This includes the right of Buyer and its agents to take soil
borings of the Property. Buyer shall pay all costs and expenses of such inspections and any
testing carried out in connection therewith, and shall hold Seller and the Property harmless from
all costs and liabilities relating to Buyer’s activities. Buyer shall not damage, encumber, or
permit a lien or claim to result from its activities, or alter the Property in any way. Buyer shall
not have the right to do any intrusive testing without the prior written authorization of Seller.
Buyer shall repair and restore any damage to the Property caused by or occurring during Buyer’s
inspection and testing and return the Property to substantially the same condition as existed prior
to such entry. Buyer’s obligations under this paragraph shall survive termination of this
Agreement.
11. ENVIRONMENTAL INSPECTION. Seller, prior to vacation of the Property, shall
remove all substances that, under state or federal law, must be disposed of at an approved
disposal facility. This requirement does not apply to hazardous substances integrated into the
building improvements (e.g., asbestos) or soil but applies only to movable equipment, supplies
and materials that are located or stored on the Property. Buyer and Seller will conduct a joint
inspection of the Property at a time to be mutually agreed upon prior to closing for the purpose of
identifying materials that must be removed by Seller.
4
564933v1 BR305-157
12. LEAD. If the dwelling structure on the Property was constructed prior to 1978, a lead
paint disclosure accompanies this Agreement.
13. REAL ESTATE TAXES.
A. Seller will pay at or prior to closing all real estate taxes due and payable in 2019
and prior years on the Property, including any delinquent real estate taxes.
B. Real estate taxes due and payable in 2020 shall be prorated as of the date of
closing between Buyer and Seller. If the amount of real estate taxes due and
payable in 2020 is not available on the date of closing, the pro-rated taxes will be
based on the amount of real estate taxes due and payable in 2019.
14. SPECIAL ASSESSMENTS.
A. Seller shall pay on or prior to closing the balance of all special assessments levied
for payment in 2019 and prior years. Buyer shall pay all special assessments
pending or levied for payment with real estate taxes payable in 2020.
B. Seller shall pay any deferred real estate taxes or special assessments, payment of
which is required as a result of the Closing of this sale.
C. As of the date of this Purchase Agreement, Seller has not received a notice of
hearing for a new public improvement project from any governmental assessing
authority, the costs of which project may be assessed against the Property.
D. Notwithstanding any other provision of this Agreement, Seller shall at all times be
responsible to pay special assessments, if any, for delinquent sewer or water bills,
removal of diseased trees prior to the date of this Purchase Agreement, snow
removal, or other current services provided to the Property by the assessing authority
while Seller is in possession of the Property.
15. MARKETABILITY OF TITLE. Buyer shall, within a reasonable time after execution
of this Purchase Agreement by both parties, obtain a commitment for title insurance or other
evidence satisfactory to Buyer (“Title Evidence”) for the Property. Buyer shall have ten (10)
business days after receipt of a fully executed purchase agreement and the Title Evidence to
examine the same and to deliver written objections to title, if any, to Seller. Seller shall have
until the expiration of the Due Diligence Period (or such later date as the parties may agree upon)
to make title marketable, at Seller’s expense. In the event that title to the Property cannot be
made marketable or is not made marketable by Seller by the expiration of the Due Diligence
Period, then, at the option of Buyer, Buyer may terminate this Purchase Agreement in
accordance with paragraph 6 (B)(1) of this Purchase Agreement.
16. CLOSING COSTS AND RELATED ITEMS. Seller will pay: (a) any deed transfer
taxes and conservation fees and recording fees for all instruments required to establish
marketable title in Seller; (b) any deed transfer taxes and conservation fees required to enable
5
564933v1 BR305-157
Buyer to record its deed from Seller under this Purchase Agreement; (c) the cost of the title
commitment, title search, name searches, and exam fees; and (d) one-half of the closing fee
charged by the title insurance or other closing agent, if any, utilized to close the transaction
contemplated by this Purchase Agreement. Buyer shall be responsible for the payment of the
following costs: (a) recording fees for deed from Seller under this Purchase Agreement; (b) the
title insurance premium, and endorsements, if any; and (c) one-half of the closing fee charged by
the title insurance or other closing agent, if any, utilized to close the transaction contemplated by
this Purchase Agreement. Each party shall be responsible for its own attorneys’ fees and costs.
17. DISCLOSURE; INDIVIDUAL SEWAGE TREATMENT SYSTEM. Seller discloses
that there is not an individual sewage treatment system on or serving the Property. If there is an
individual sewage treatment system on or serving the Property, Seller discloses that the system is
not in use. In the event there is a sewage treatment system, a map of said location of the system
is attached.
18. WELL DISCLOSURE. Seller discloses that the status and number of wells on the
Property has not changed since the last previously filed Well Disclosure Certificate No.
1017287.
19. SELLER’S WARRANTIES. Seller warrants that buildings, if any, are entirely within
the boundary lines of the Property. Seller warrants that there is a right of access to the Property
from a public right-of-way. Seller warrants that there has been no labor or materials furnished to
the Property for which payment has not been made. Seller warrants that there are no present
violations of any restrictions relating to the use or improvement of the Property. Seller
represents that Seller has good and marketable simple title interest to the Property and no
consents or approvals from any third parties are required. Seller represents that there are no third
parties in possession of the Property, or any part thereof; and that there are no leases, oral, or
written, affecting the Property or any part thereof. Seller agrees that Seller will not enter into a
lease for the Property after the date of this Purchase Agreement. Seller agrees to pay all charges
for sewer, water, electric, gas, rubbish removal, Internet, cable/satellite television, and any other
utility charges incurred prior to closing and during Seller’s occupancy of the Property pursuant to
the Escrow and Occupancy Agreement. These warranties shall survive the Closing of this
transaction.
20. RELOCATION BENEFITS. Seller acknowledges that Seller initiated negotiations
with Buyer for the transaction contemplated by this Purchase Agreement, and that this
transaction is not made under threat of condemnation by Buyer. Seller agrees to waive any and
all relocation benefits, assistance and services to which Seller might otherwise be eligible. Seller
agrees to provide to Buyer at closing an executed waiver of relocation benefits in substantially
the form of the attached Exhibit A.
21. NO MERGER OF REPRESENTATIONS, WARRANTIES. All representations and
warranties contained in this Purchas Agreement shall not be merged into any instruments or
conveyance delivered at closing, and the parties shall be bound accordingly.
6
564933v1 BR305-157
22. ENTIRE AGREEMENT; AMENDMENTS. This Purchase Agreement constitutes the
entire agreement between the parties, and no other agreement prior to this Purchase Agreement
or contemporaneous herewith shall be effective except as expressly set forth or incorporated
herein. Any purported amendment to this Purchase Agreement shall not be effective unless it
shall be set forth in writing and executed by both parties or their respective successors or assigns.
23. BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and inure
to the benefit of the parties and their respective heirs, executors, administrators, successors, and
assigns. Buyer shall not assign its rights and interest hereunder without notice to Seller.
24. NOTICE. Any notice, demand, request or other communication which may or shall be
given or served by the parties shall be deemed to have been given or served on the date the same is
deposited in the United States Mail, registered or certified, postage prepaid and addressed as
follows:
SELLER:
BUYER: Economic Development Authority of Brooklyn Center
Attn: Brett Angell
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430-2113
AGENT: Kennedy & Graven, Chartered
Attn: Troy Gilchrist
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
25. BROKER COMMISSIONS. Buyer and Seller each represent and warrant to the other that
there is no broker involved in this transaction with whom either has negotiated or to whom the
representing party has agreed to pay a broker commission or finder’s fee in connection with
negotiations for purchase or sale of the Property. Buyer and Seller agree to indemnify, defend, and
hold the other party harmless against any and all claims of brokers, finders, or the like, and against
the claims of all third parties, claiming any right to commission or compensation by or through acts
of the indemnifying party or its partners, agents, or affiliates in connection with this Purchase
Agreement. The indemnifying party’s indemnity obligations shall include all damages, losses,
costs, liabilities, and expenses, including reasonable attorneys’ fees and litigation costs, which may
be incurred by the other party.
26. METHAMPHETAMINE DISCLOSURE. To the best of Seller’s knowledge,
methamphetamine production has not occurred on the Property.
7
564933v1 BR305-157
27. SPECIFIC PERFORMANCE. This Purchase Agreement may be specifically enforced by
the parties, provided that any action for specific enforcement is brought within six months after the
date of the alleged breach. This paragraph is not intended to create an exclusive remedy for breach
of this agreement; the parties reserve all other remedies available at law or in equity.
28. REMOVAL OF FIXTURES AND MATERIALS. The Seller shall have the opportunity
to salvage any fixtures or materials from the buildings on the Property provided that the buildings
are left secure and provided that removal does not create any hazardous conditions. Any fixtures or
materials which remain on the Property after Seller’s occupancy has been terminated shall be
deemed to have been abandoned and shall become the exclusive property of Buyer. Seller assumes
all risk in undertaking any salvage operations. Seller shall not permit the attachment of any lien or
encumbrance on the Property as a result of this or other work thereof.
8
564933v1 BR305-157
IN WITNESS WHEREOF, the parties have executed this agreement as of the date written above.
SELLER
By:
Its:
BUYER
Economic Development Authority of
Brooklyn Center, Minnesota
By:
Its: President
By:
Its: Executive Director
9
564933v1 BR305-157
EXHIBIT A
FORM OF
WAIVER OF RELOCATION BENEFITS
The undersigned, acknowledges that I met with a representative of the Economic Development
Authority of Brooklyn Center, Minnesota (EDA) on _______________, 2020. The representative,
_____________________________, explained that in the event that the EDA acquires my
property located at 7015 Kyle Avenue North, Brooklyn Center, Minnesota, I may be entitled to
certain relocation benefits, in addition to the amount of money being paid to me to acquire my
property. These benefits may include:
1. Moving Expenses:
a. A payment for actual reasonable moving expenses; or
b. A fixed payment determined in accordance with the applicable schedule approved
by the Federal Highway Administration.
2. Replacement Housing Payment:
A 180-day homeowner is eligible to receive a replacement housing payment to cover the
following costs:
a. If the homeowner must pay more to buy a comparable replacement home than
homeowner receives for the property, then homeowner may be compensated for the
difference.
b. Homeowners may be entitled to compensation for incidental and closing expenses
related to the purchase of a decent, safe, and sanitary replacement home, such as
recording fees, title insurance, appraisal, and inspection fees.
c. If a homeowner must pay a higher interest rate on a mortgage to finance the
purchase of a replacement home than the rate on the mortgage of the property, then
homeowner may be entitled to compensation for increased mortgage interest costs.
3. Other Relocation Assistance:
This includes referrals and other assistance to help the owner(s) relocate to a comparable
decent, safe, and sanitary dwelling. These payments and services are required under the
regulations of the Department of Housing and Urban Development (HUD). The owner(s)
cannot be required to move from his/her home unless he/she is given reasonable
opportunities to relocate to a comparable decent, safe and sanitary dwelling unit that he/she
can afford.
10
564933v1 BR305-157
Finally, it was explained to me that the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 as amended, entitles me to these relocation benefits; and if I sign
this waiver, I will be waiving those relocation benefits.
After having these benefits explained to me, I agree to waive them. In signing this waiver, I
acknowledge that no threats have been made to me, either expressly or by implication that my
property will be taken from me through condemnation. If after signing this waiver, I attempt to
collect relocation benefits, I will have to prove that, contrary to what I am agreeing to in this
waiver, my waiver of relocation benefits was not entered into voluntarily. This wavier is
conditioned upon the Economic Development Authority of Brooklyn Center, Minnesota
purchasing my property for the gross purchase price of $240,000.00 and payment of $5,000.00 in
moving expenses. If this commitment to me is not fulfilled, this waiver is null and void.
_________________
Date
By
WITNESS:
Economic Development Authority
DAT E:5/11/2020
TO :C ity C ouncil
F R O M:C urt Boganey, City Manager
T H R O U G H :N/A
BY:M eg Beekman, C ommunity D evelopment D irector
S U B J E C T:Res olu+on A dop+ng a S mall Busines s Emergency Forgivable Loan P rogram
B ackground:
O n March 13, 2020, G overnor Walz is s ued Execu+ve O rder 20-01 declaring a state of peace+me
emergency to addres s the C O V I D -19 pandemic in M innesota. O n M arch 16, G overnor Walz is s ued
Execu+ve O rder 20-04 ordering the clos ure of bars , restaurants , and other places of public accommoda+on
offering food and/or beverage for on-premis e consump+on. The O rder also included the closure of spas ,
beauty shops, nail salons , ta>oo s hops , health clubs, indoor fitnes s centers, art and mus ic s tudios , and
recrea+onal or entertainment facili+es. Restaurants w ere allow ed to con+nue to provide delivery, drive-
thru, and take-out accommoda+ons .
O n March 25, G overnor Walz issued Execu+ve O rders 20-18, extending and clarifying Execu+ve O rder 20-
04, and also issued Execu+ve O rder 20-20 issuing a S tay-at-H ome order to all Minnes otan's except to
engage in exempt ac+vi+es and cri+cal sector work as described in the O rder and further clarified by D E E D
through their Cri+cal S ector Clarifica+on and D efini+ons document: h>ps ://mn.gov/deed/as s ets/cri+cal-
w orker-defini+ons -A C C _tcm1045-425195.pdf.
The G overnor has since extended the S tay-at-H ome order tw ice and is s ued several amendments and
clarifica+ons to the defini+on of C ri+cal S ector Workers.
W hile it is es +mated by D E E D that 82% of w orking M innesotan's fall within a cri+cal sector and can
therefore con+nue to work, the Execu+ve O rder's have had a drama+c affect on the s tate's unemployment
rate. The affect of the S tay-at-H ome order has been most es pecially felt by small busines s es, w hich have
had to adapt to changing opera+ng requirements with limited resources while facing barriers to accessing
s tate and federal s+mulus programs to provide much needed as s is tance.
Recently the Na+onal Federa+on of I ndependent Busines s es (N F I B) releas ed the res ults of a survey of its
bus inesses . The N F I B which represents thous ands of small busines s acros s the na+on reports that busines s
op+mis m, uns urpris ingly, decreas ed drama+cally in March. O f the 627 busines s es surveyed, 35%
expressed they w eren’t s ure they ’d be able to operate their bus iness for more than one to two months in
the current economic climate.
S tate and Federal Programs
Both the Federal S mall Bus iness A dminis tra+on (S B A ) and the Minnes ota D epartment of Employment and
Economic D evelopment (D E E D ) have rolled out financial aid programs des igned to assist busines s es
affected by the C O V I D -19 cris is . A side from the regular s mall bus iness support programs offered by these
agencies , there are three new programs that are the primary focus of the state and federal s +mulus funds :
T he Paycheck Protec+on Program (P P P): an S B A program available to small businesses including sole
proprietors, self-employed individuals and independent contractors meant to cover payroll, rent/mortgage,
u+li+es, and other immediate payments. L oans are applied for and disbursed through private lenders and
backed by the S B A. T he loan is forgivable, less the 1% interest rate, if a business can demonstrate that 75%
of the loan proceeds were used to cover eligible expenses over an 8-week period.
T he Economic I njury D isaster L oan (E I D L ): an S B A program available to small business that including sole
proprietors, self-employed individuals, and independent contractors that can demonstrate economic loss
as a result of the C OV I D -19 outbreak. L oans are available directly through the S B A for up to $2 million and
payments are deferred up to one year and can be paid back over a term up to 30 years. B usinesses that
apply for E I D L can also request an advance of funds up to $10,000 which will not have to be paid back.
T he Small B usiness E mergency L oan Fund: a D E E D program available to businesses specifically impacted
by the Governor E xecu+ve O rder 20-04 and 20-18, which closed restaurants, bars, beauty salons, health
clubs, entertainment venues, and other places of public accommoda+on. E ligible businesses can apply for
an up to $35,000 loan at 0% interest that may be par+ally forgiven. B usinesses considered non-essen+al
under E xecu+ve O rder 20-20, but not iden+fied under E xecu+ve O rder 20-04 or 20-18 are not eligible.
The P P P and E I D L programs were depleted of funds aLer just 13 days. O n A pril 24 the P resident s igned a
bill authoriz ing an addi+onal $320 billion of funding for thes e programs , which reopened on A pril 27.
Brooklyn C enter S mall Business E mergency Forgivable L oan P rogram
D espite the available State and Federal programs aimed at assis+ng businesses there will likely s+ll be businesses
that are not able to access assistance. T here are several reasons for the barriers that exist to accessing state and
federal programs for small and micro businesses, par+cularly female and minority-owned businesses, which make
up a large percentage of B rooklyn C enter small businesses. T he first round of federal funds were depleted within
13 days of being released. B anks and the S B A were overwhelmed with applica+ons. As a result, businesses that
already had strong rela+onships with their banks and had their documents in order were first in line to receive
funding.
F urther S B A funds are jus t now beginning to be releas ed, and some applica+ons con+nue to remain
pending. I n the mean+me, bus iness owners are faced w ith immediate expenses and a high degree of
uncertainty as to whether their applica+ons will be approved or when.
At their M ay 5 w ork s ession, the C ity C ouncil cons idered a proposed program to support s mall bus inesses
in Brooklyn Center designed to help thos e busines s es facing the greatest barriers to acces s ing state and
federal funds . The program would provide emergency deferred forgivable loans up to $3,000 at 0% interest
w ith payments deferred for one year. This program is intended to provide immediate emergency relief to
assist with short term expenses . A llowable uses for funds would include rent/mortgage payments, payroll
and employee benefits , accounts payable, and vendor payments.
E ligibility for forgiveness would be based upon demonstra+on that the funds were used on eligible expenses and
that the business owner received technical assistance from a local or regional business resource center. Part of
the purpose of the program is to get needed technical assistance to business owners in order to ensure they have
the resources they need to be successful through this period of +me and into the future. Staff will work with loan
recipients to iden+fy their needs and direct them to resources that will ensure they get the capacity building and
technical assistance they may need.
Staff is proposing $150,000 to fund the program. T his would allow approximately 50 businesses to be served. I f
demand far outpaces funding, the E DA could consider addi+onal funding to the program at a later date. T he funds
for this program would come from the B rooklyn C enter Economic D evelopment Authority fund. As these are not
budgeted funds, they would come directly out of cash reserves. T he current unreserved fund balance of the E DA
fund is $1.597 million.
A full descrip+on of the program including eligibility is a>ached to this memo.
T he C ouncil directed staff to move forward with the program. Staff met internally to discuss in detail the logis+cs
of rolling out and administering the program, as well as the C ouncil's comments, and is proposing a few minor
changes.
A $30 annual fee w as added to loans that do not receive forgiveness and enter repayment. This
equates to a 1% interest rate. The fee w ould be in lieu of interest but would provide both an incen+ve
for repayment and also a cons idera+on for staff +me to adminis ter the repayment schedule.
O pera+ng cas h w as removed from the list of allow ed uses for funds to make tracking eas ier and
s implify repor+ng.
The process for receiving loan forgiveness was s implified to eliminate the need for loan recipients to
fill out an addi+onal form to apply for loan forgiveness.
The end date for the program was amended to "un+l funds are expended, or the E DA terminates the
program, w hichever comes first".
Applicaon Process
A pplica+ons w ill be submi>ed electronically. A n inter-departmental commi>ee will review the applica+ons
on a rolling bas is for eligibility and to ens ure they are complete. I f informa+on is missing or unclear,
applica+ons will be contacted to have an opportunity to provide addi+onal informa+on.
Loan recipients will be asked to enter into a loan agreement, which will be provided for electronic signature.
Checks will be s ent out within a w eek upon receipt of an executed loan agreement. Staff will then work with
loan recipients to iden+fy what other needs they may have to seek out addi+onal support resources and technical
assistance.
Outreach and Engagement
Given the demographics of B rooklyn C enter, and in par+cular the small business community, it is cri+cally
important that women and minority-owned businesses be engaged and made aware of resources available to
them. Demographic informa+on will be tracked as part of the applica+on process, and inten+onal efforts will be
made to ensure broad outreach and engagement.
T he C ity has entered into contracts with L iB A and J ude N nadi to provide technical assistance and small business
support. T hese contracts include dissemina+ng informa+on to small business owners and assis+ng with filling out
applica+ons for funding. Staff has already been in communica+on about this program and will work with these
groups to deepen outreach about the program to the community.
I n addi+on, staff is in discussions with A C E R to enter into a similar contract to seek their assistance with outreach
and engagement of small business owners as well as providing technical support to businesses with loan
applica+ons.
I nforma+on about the program w ill also be s hared with other community partners and organiz a+ons .
N ext S teps
I f the Council chooses to approve the program, the applica+on period will open May 15 and remain open
un+l funds are expended or the E DA terminates the program. S taff will provide regular updates to the E DA
as well as a final report on the recipients of the funding.
B udget I ssues:
$150,000 from the E DA . This is not a budgeted expenditure.
S trategic Priori#es and Values:
Resident Economic S tability
AT TA C H M E N TS :
D escrip+on U pload D ate Type
S mall Bus iness Forgivable L oan P rogram 5/5/2020 Backup M aterial
P roposed Emergency S mall Busines s Loan A pplica+on 4/27/2020 Backup M aterial
Res olu+on 5/7/2020 Resolu+on Le>er
Brooklyn Center Economic Development Authority
Small Business Emergency Forgivable Loan Program
Brooklyn Center is home to a high number of micro businesses, many owned by immigrants and people
of color. Small businesses are integral and vital to the economic, social, and religious fabric of the Brooklyn
Center community. Accordingly, the Brooklyn Center Economic Development Authority (EDA) has
determined to offer locally owned and operated businesses within the community a forgivable loan
opportunity to address working capital needs upon the declaration of a state of emergency by the State
of Minnesota (State) and the City of Brooklyn Center (City).
The purpose of this program is to ensure the viability of the community’s small businesses faced with the
current COVID-19 health emergency, which is adversely affecting the City’s economy. The goal of this
program is to provide businesses small loans with deferred payment and forgiveness options to allow for
access to working capital and to encourage businesses to seek out technical assistance and other
resources which may help them weather this difficult time.
Loan funds are available on a first-come, first-served basis for eligible applicants. The program is subject
to funding availability from the EDA. The EDA retains the authority and discretion to approve or deny an
application, and reserves the right to subsequently add further priorities, change eligibility criteria, or
discontinue the program in response to changing circumstances.
Maximum Loan Amount: $3,000
Interest Rate:
Loan interest rate is fixed at 0%
Loan Terms:
• Loan recipients shall enter into a Loan Agreement with the Brooklyn Center EDA. Funds will not
be distributed for any loan award until a Loan Agreement has been executed by all required
parties.
• Loan payments will be deferred with no interest for one (1) year from the date of award
• Loans may be eligible for forgiveness within the first 12 months from the date of award
• If a business does not meet the terms for forgiveness the loan will be paid back monthly for 3
years with an annual fee of $30 and no pre-payment penalty
Eligible Business Criteria:
• Business must have a physical address within the City of Brooklyn Center
• Business must have been in operation prior to February 20th 2020
• Employ 10 or fewer full time or part time employees prior to the issuance of the State of
Emergency Executive Order 20-04 (March 16, 2020). Sole proprietors and individual contractors
are eligible.
• Business must have annual gross revenue of less than $200,000
• Be able to demonstrate that its revenues have been directly and adversely affected by the
COVID-19 Health Pandemic and/or that it operates in a category adversely affected by Executive
Orders 20-04 and 20-08, or other locally owned and operated business deemed non-essential
under Executive Order 20-20
• Business must serve the general public and be a conforming or legally non-conforming use
under the current zoning regulations of the City, and have no adverse actions or open violations
with the City
• A business owners’ immigration status does not affect eligibility
• Applicants are strongly encouraged to claim all applicable private insurance and utilize all other
sources of applicable assistance available from other private and public sources. Applicants are
also strongly encouraged to apply for an Economic Injury Disaster Loan through the Small
Business Administration (SBA) and Small Business Emergency Loan through the Minnesota
Department of Employment and Economic Development (DEED) prior to applying for this grant.
For more information, visit:
Guide to financial resources for Minnesota small businesses
Assistance cannot be provided to businesses that:
• Do not have a physical address within the City of Brooklyn Center
• Derive income from passive investments without operational ties to operating businesses or
whose primary source of revenue is from business-to-business transactions
• Primarily generate income from gambling activities, adult entertainment, tobacco/vaping-
related activities, registered lobbying, multi-level marketing, billboards, or renting commercial
or residential property
• Have no current or historical financial statements
Allowable Uses:
• Rent/mortgage payments
• Payroll, employee benefits and leave
• Accounts payable
• Vendor payments
Forgiveness:
Loans are forgiven if the recipients demonstrate that they have met the terms of forgiveness within the
12-month deferral period. A portion or the remaining loan balance may be forgiven after the 12-month
deferral period. The conditions for loan forgiveness are as follows:
• Submission of receipts, paid invoices, statements, or similar documents demonstrating loan
funds were used on eligible expenses.
• Business owner has met with an area business resource center and received technical
assistance. City staff will be available to work with the business owner to assist with connecting
them with a business resource center that can provide resources specific to their needs.
Application Process:
• Application Period Opens: May 15
• Applications are available on the City’s website:
• Applications will be accepted on a first come first served basis until funds are expended or the
EDA determines to terminate the program, whichever comes first.
• Applications will be reviewed and approved by City staff on a rolling basis, based on eligibility,
and submission of a complete application.
• Upon submission of application, applicants will receive an email confirming receipt of
application.
• A staff committee will review application for eligibility and completeness. If additional
information or documentation is necessary, EDA staff will contact the applicant. Due to an
expected high volume of applications, please consider your application complete if staff does
not request additional information within 10 business days after application acceptance.
Funding Process:
• Businesses will be notified within 10 business days if their application has been approved.
• Loan agreements will be provided via email for signatures.
• Loan funds shall be distributed by check within two weeks after a loan agreement has been
executed by all required parties.
• Brooklyn Center City staff will provide a report to the Brooklyn Center EDA of all businesses
funded through the program.
Questions:
Any questions related to the application process should be directed to:
Jimmy Loyd, Economic Development Coordinator
mjloyd@ci.brooklyn-center.mn.us
Brookly n Center Sm all Busines s As sista nc e Applic ation
1 . App lic an t C on ta ct
Fi rst N ame Last N ame
Ti tle
Company N ame
Street A ddress
Apt/Sui te/Offi ce
City State Zip
Email Address
Primary Phone
2 . Busin ess T yp e
R etai l
Servi ce
Manufacturi ng
C onstructi on
Other - Write In
3 . Number of F TE
1-5
6-10
More than 10
4 . S upp orting do c ume nta tio n fo r proo f of b us ines s res iden c y in
B roo k lyn C e nte r. E x amples in clu de: s tate men t of le a se, mortga ge
s tate me n t, p rop e rty tax s tate men t, or oth er doc ume nt to sh ow p ro o f o f
occ upa ncy within B roo k lyn C e nte r.
Brows e...
5 . 201 9 Gro s s Rev e nu e
6 . E s tima ted 2 0 20 Gros s R e ven ue
7 . Gra nt a mou nt req u este d (u p to $####)
8 . Briefly de s c rib e h o w yo ur b us ines s has bee n imp a cte d b y the C O VID-
1 9 p a nd e mic a nd /or relate d Exec utiv e Ord e rs.
9 . Curren t sta tus o f yo ur bu s ines s :
Ful l y open for busi ness and/or operating onl i ne
Open but with reduced hours
R educed operati ons and/or operati ng onl i ne
C losed to publ i c but sti ll operati ng onsite, onli ne, or remotel y
C losed compl etely
Other - Write In
1 0. If a wa rd e d g ra n t fu nd ing , h ow wo uld y ou us e the fun ds? Elig ible
e xp e ns e s inc lud e c urren t p a y ro ll ob ligatio ns (i.e. ma y no t in c lud e
e mp loy e e s wh o h a v e b e e n la id o ff), le a s e o r mo rtg ag e pa y men ts,
utilitie s , ac c ou nts p aya ble, p ro p erty ta x e s an d o the r critic al b usin e ss
e xp e ns e s . P le a se b e d e taile d with use s a nd a ss o ciate d c o sts .
1 1. Is there an y th in g e ls e th a t we s ho u ld b e awa re o f in re latio n to y o u r
a pp lic atio n o r b usin e ss?
Commissioner _______________________ introduced the following resolution
and moved its adoption:
EDA RESOLUTION NO. ______
RESOLUTION APPROVING ESTABLISHMENT OF THE SMALL BUSINESS
EMERGENCY FORGIVABLE LOAN PROGRAM
WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota (the
“EDA”) was created pursuant to Minnesota Statutes, sections 469.090 through 469.1082 to
exercise its powers to promote and protect economic development within the City of Brooklyn
Center (“City”); and
WHEREAS, the spread of COVID-19 and the resulting emergency declarations and
emergency orders issued by the Governor have created a great deal of uncertainty and has
dramatically impacted local businesses, particularly small businesses; and
WHEREAS, the City has a large number of micro businesses, many owned by
immigrants and people of color, that are a critical part of the economic vitality of the City and, as
the EDA discussed at its May 4, 2020 work session, are the businesses that have been hit
particularly hard by this emergency; and
WHEREAS, EDA staff prepared and presented a memo, which is incorporated herein by
reference, (“Staff Memo”) at the EDA’s May 11, 2020 meeting that set out the details of a
proposed Small Business Emergency Forgivable Loan Program (“Loan Program”); and
WHEREAS, it is consistent with the goals of the EDA, and is within its powers, to
establish the proposed Loan Program in this extraordinary time to assist small businesses to
remain in operation and maintain its employees to help protect the City’s economy and reduce
unemployment.
NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority of
Brooklyn Center, Minnesota Board of Commissioners as follows:
1. The EDA hereby establishes the “Small Business Emergency Forgivable Loan
Program” as provided in this Resolution. The EDA authorizes a total of $150,000 to
be used for the Loan Program, with individual loans of up to $3,000.
2. The Loan Program shall be structured in accordance with the provisions proposed in
the Staff Memo.
3. The Executive Director and EDA staff are hereby authorized and directed to do each
of the following regarding the Loan Program:
a. Prepare an application, forgivable loan agreement, policy and guidelines, and
such other documents as may be needed;
b. Receive applications and determine eligibility;
c. Enter into such agreements on behalf of the EDA as may be needed;
d. Distribute loans to eligible small businesses;
e. Communicate with the loan recipients as needed to determine if they are
eligible to have the loan forgiven and, if not, to collect the unforgiven portion
of the loan with interest; and
f. Take all other actions, and execute such other documents, as may be needed to
implement and carry out the Loan Program and the intent of this Resolution.
Date President
ATTEST:
Secretary
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
___________________
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Council/E D A Work
S ession
V I RT UA L meeting being
conducted by electronic
means in accordance with
Minnesota S tatutes, section
13D.021 P ublic portion
available for connection via
telephone Dial: 1-312-535-
8110 Access Code:
281244297
May 11, 2020
AGE NDA
AC T I V E D I S C US S IO N I T E M S
1.Concept Review from C A llan Homes for S ites along B rooklyn Boulevard
P E ND I NG L I S T F O R F UT URE WO RK S E S S IO NS
1.Pending I tems
Commemoration of 400 years of Slavery Activities
L ivable Wages
Use of E D A Owned P roperty
F ood Trucks
Strategic P lans for years 2018-2020 and 2021-2023
Discussion of Mayor/City Council roles & responsibilities
(CommonSense I nc.)
MEMOR ANDUM - C OUNCIL WOR K SESSION
DAT E:5/11/2020
TO :C ity C ouncil
F R O M:C urt Boganey, C ity Manager
T HR O UG H:N/A
BY:Meg Beekman, C ommunity Development Director
S UBJ EC T:C oncept R eview from C Allan Homes for S ites along Brooklyn Boulevard
Background:
Concept Review Process
T he c onc ept review proc es s is an opportunity for the C ity C ounc il to review a development c onc ept prior to a
formal proposal from an applic ant, and provide comments, ask ques tions , and indic ate whether or not the C ity
would be open to the projec t. C onc ept reviews are helpful for projects that would involve EDA-owned land or
public subs idy, as it provides ins ight to s taff and the developer as to the C ity C ouncil’s level of interest, and
any spec ific concerns related to a project.
A concept review is c onsidered advisory and is non-binding to the C ity and the applic ant. No formal action
can be taken at a work s es s ion, and the C ouncil is not being asked to vote on the proposal. If the developer
choos es to submit a formal application to the C ity, it would be subject to the full review process, as with any
other development application.
Background
T he EDA has been ac quiring s ingle family and undersized parcels along Brooklyn Boulevard for many years as
part of a larger s trategy to improve safety by reduc ing and c onsolidating ac cess points , and to as s emble land
for redevelopment into high density land uses. T he 2040 C omprehensive P lan c reated an overlay district along
the c orridor and re-guided mos t of the future land uses to neighborhood mixed us e; allowing medium density
res idential and/or neighborhood-s erving commerc ial us es . T he 2040 P lan als o c alled for a c omprehens ive land
use s tudy for the corridor to coincide with the road recons truction plans as well as to create development
s tandards that would create a more walkable, neighborhood-oriented development pattern.
T he Brooklyn Boulevard land use s tudy is underway, and a market analys is of the area in terms of feasible land
uses has been completed. O ne of the goals of the study is to look at the EDA-owned s ites, particularly thos e
that are only as deep as a s ingle family lot to determine how they c ould be redeveloped in a way that puts them
back into produc tive us e for the C ity.
T he EDA c urrently owns four properties located at the s outhwes t corner of 61s t Avenue North and Brooklyn
Boulevard, whic h total 1.55 acres. T he EDA als o owns four properties on the wes t s ide of the 6900 block of
Brooklyn Boulevard that total .88 acres in s ize. T he parcels were acquired between 1995 and 2018.
6100 Block 6900 Bloc k
T he market analys is for thes e sites found that a mid-dens ity residential produc t s uc h as row-homes or
townhomes would be suitable for the s ites, and that given their acc es s c onstraints they were likely not suitable
for retail. T he market analys is did find that an office condo product c ould als o be s uitable for the sites , but that
that market would not bear a spec ulative office development.
D evelo pment P lan
T he C ity has been approached by Terry R obertson and C urt Brekke with C Allan Homes , a loc al builder and
remodeling c ompany spec ializing in high-end s ingle family homes . Mr. R obertson and Mr. Brekke are
interes ted in diversifying the focus of C Allan Homes and are s eeking to develop both sites with a s eries of tri-
plexes which would be available for rent. Each tri-plex would c onsist of three units with two and three
bedrooms . Antic ipated rents would range between $1,300/month up to $1,750 per month. T hey have indic ated
that each building would have the look and feel of a large, high quality s ingle family home, with a c ombination
of individual and shared on-s ite amenities .
Initial renderings of the propos ed tri-plexes are attac hed, as well as a narrative from the developer des cribing
their projec t in more detail and site plans for each site.
As this is a concept review, the submitted doc uments are early representations of the project and have not been
reviewed in detail by staff.
T he applic ant is not seeking financ ial subs idy for the development. If the project were to proc eed a purc hase
agreement would need to be negotiated and purchas e pric e for the land determined.
C o nfo rmance with C ity Po licies
T he EDA has been ac quiring property along Brooklyn Boulevard for decades with the intent of assembling it
for higher and better use as the trans portation and land use patterns of the corridor change. Brooklyn
Boulevard is undergoing a complete rec onstruc tion whic h will have an effec t on the land us e patterns as acc es s
points are cons olidated and the roadway is altered.
With the adoption of the 2040 C omprehens ive P lan, the C ity adopted new future land use des ignations for
muc h of the Brooklyn Boulevard c orridor, whic h inc luded a new future land use des ignation of “Neighborhood
Mixed Use (N-MU).” T he NMU future land use des ignation c ontemplates an allowance of a mix of medium
density res idential and/or commerc ial us es on a given s ite depending on its location along the corridor. F or
example, c ommercial uses, with a pos s ible mix of hous ing, will likely c onverge around primary, signalized
inters ections, whic h offer better acc es s and vis ibility; while medium dens ity residential uses will make up the
balanc e between these primary nodes.
T he proposed development project is in keeping with the goals of the c orridor, is cons is tent with the adjac ent
s ingle family development, and provides a highes t and bes t use for the affected EDA properties , s ome of
which have been held by the C ity for many years.
Next S teps
T he developer (C Allan Homes) will pres ent their vision and c onc ept in detail and take input from the C ity
C ouncil and inc orporate comments received into any applic ations intended for formal submittal. If the projec ts
were to proceed both sites would require preliminary and final plat. In addition, bec ause the new zoning code
work is not yet complete, the sites have not yet been rezoned. T herefore, a rezoning or P UD will als o be
required to acc ommodate the higher dens ity land us e.
T he developer is als o seeking a preliminary development agreement (P DA) from the EDA to gain development
rights while they negotiate a purchas e agreement and work through the land us e approval proc es s . Based on the
dis cus s ion from the C ouncil this evening, staff c an begin drafting a P DA to be brought back to the EDA for
cons ideration at a future meeting.
Policy Issues:
Does the C ity C ounc il/EDA have any ques tions /c onc erns for the developer?
Is the C ity C ouncil/EDA comfortable with the propos ed land us e for the two s ites?
Does the C ity C ounic l/EDA have any feedbac k on the site plan or renderings?
Is the C ity C ouncil/EDA comfortable with moving forward with a P reliminary Development Agreement
on the two s ites?
S trategic Priorities and Values:
Targeted R edevelopment
AT TAC HME N T S:
Desc ription Upload Date Type
R esume 5/6/2020 Bac kup Material
Narrative 5/6/2020 Bac kup Material
6100 Bloc k Aerial 5/5/2020 Bac kup Material
6900 Bloc k Aerial 5/5/2020 Bac kup Material
R endering 1 5/5/2020 Bac kup Material
R endering 2 5/5/2020 Bac kup Material
Arc hitectural P lans 5/5/2020 Bac kup Material
6100 Bloc k S ite P lan 5/6/2020 Bac kup Material
6900 Bloc k S ite P lan 5/6/2020 Bac kup Material
Terry Robertson
5215 Terraceview Lane N • Plymouth, MN 55446 • 763-228-1785 • Nationalchamp55442@yahoo.com
Terry Robertson has over 28 years of experience in both residential and commercial construction. He
also has spent several years in residential and commercial development. Terry has the skill set to
oversee projects as a project manager, general manager, construction manager and job superintendent.
He is currently overseeing close to $12.9 million in projects in various phases of construction. Terry is a
successful team manager from project start through completion, maximizing human capital and
motivating and mentoring employees. His understanding of construction and development will benefit
him from the development side as well as understanding cost structure on the construction side. Terry
is excellent in communicating with diverse groups in different environments.
Millions of dollars in government contracts have been awarded to his company, C Alan Homes, LLC,
through the Ramsey county 4R program including many projects with St Paul, Ramsey County, SPPH,
MPHA and non-profits in Minneapolis and St. Paul.
Curt Brekke
10806 Gulden Avenue NW • Maple Lake, MN 55358 • 612-282-7546 • curtbrekke1962@gmail.com
Curt Brekke has over 19 years of residential and commercial construction experience and is a certified in
residential energy auditing and lead-safe practices. He has successfully completed public housing
projects with HUD. Curt is experienced in working and communicating with project developers,
architects, designers and field managers to overcome obstacles in all phases of construction, as well as
communicating with city staff through permitting and inspection. Curt manages multiple concurrent
projects and schedules and overall cost management on construction projects.
C Alan Homes, LLC
Terry Robertson and Curt Brekke
A sample of addresses of custom homes built by C Alan Homes, LLC since 2017 include:
4648 Chowen Avenue S, Minneapolis $900,000
5829 Fairfax Ave, Edina $1.6 million
5608 Grove St, Edina $1.4 million
4311 Morningside, Edina $1.35 million
4001 Morningside, Edina $1.53 million
5708 Fairfax, Edina $1.3 million
5825 Saint John’s, Edina $1.3 million
2 Sunfish Lane, Mendota Heights $5.5 million
5320 W. 60th St, Edina $1 million
C Alan Homes, LLC
These homes will be built in the City of Minneapolis for low income affordable housing.
The triplexes will be built with high quality product that will last for years to come. For example, solid-
core doors, custom cabinets, quality plumbing fixtures, granite countertops, Anderson or Pella windows,
LVT flooring, and other products to ensure longevity for these homes. High efficiency furnaces, Hardie
Board Color Plus siding with a 50-year warranty. Timberline shingles with a 30-year warranty.
C Alan Homes, LLC was started in 2010. We are a true Custom Home Builder and Developer. CAH
Primarily builds homes starting in the low $1,000,000 range-$2,000,000, but we have homes as high as
$6,000,000 currently under construction. CAH donates every year to low income families in Minneapolis,
(NFL Alumni) Under privileged children, (Boulder Options) At risk kids and (Just 4 Kidz) Trying to better
the quality of life for Minnesota Children.
Our vision is to build higher quality homes in Cities like Brooklyn Center that we have identified that our
homes could benefit and work well in. Our homes will bring a quality product to tenants that normally
would not be available in affordable homes. The tri-plex's are being decorated by award winning
Designer Kimberly Niosi. The facades will vary. a non-row house look is what we will be bringing.
Large floor plans 1175 to 1300 sq ft. Each Unit will have their own entrance.
Exterior will be James Hardi Color Plus Siding (Same siding we use on Million dollar plus homes.),
Anderson or Pella windows. Lots of windows and large egress window pits to allow in tons of light on all
3 floors. Sound suppression between all floors to help with noise transfer. Granite or Quartz
Countertops similar to our Custom builds. Custom Cabinets same as what we have in our $1.4 million
dollar model home. Nicer higher end plumbing fixtures. Solid Core doors to help with the wear and tear
of renting a home. Oversized trim similar to our custom home builds
Minimum 6 parking stalls per building. 3-Bedroom, 2-bath units.
Multiple raised vegetable gardens for tenants. In ground Charcoal Grills (1) per building. Large concrete
patio's for each building
We anticipate charging $1650-$2200 monthly rent rates. This depends on the market and our final costs
to build. These rates are still affordable for 3-bedroom, 2-bath units, and yet could easily be $2400-
$2800. CAH is trying to bring an upper level product to the City but keep an affordable rate. (This is due
to our personal backgrounds and upbringing.)
Bringing quality to the sites at 60th and 69th and Brooklyn Blvd will help revitalize and benefit the city
with new tax revenue. While lending an upscale feel to the newly built up area. The City will also gain by
having affordable housing that has a timeless feel, sustainable housing inside and outside, upscale look
and a quality of life tenants are not accustomed to. Attracting new homebuyers, builders and developers
will be a result of building nicer housing in the area. All this without requesting any City, State or Federal
dollars, tax credits or repayment arrangements.
Our proposed entrance to the 60th parcel would be coming off 61st and exiting off Brooklyn Blvd
turning right only. The proposed entrance to the 69th parcel would be coming off of Lee and exiting off
of Brooklyn Blvd, turning right only.
We would highly encourage you and your team to come and visit one of our Custom home builds that
will be similar in quality and spec. This will give you an idea of the type of sustainable living we
are trying to bring to your City and your tenants!
Terry Robertson
MEMOR ANDUM - C OUNCIL WOR K SESSION
DAT E:5/11/2020
TO :C ity C ouncil
F R O M:C urt Boganey, C ity Manager
T HR O UG H:Dr. R eggie Edwards , Deputy C ity Manager
BY:Barb S uciu, C ity C lerk
S UBJ EC T:P ending Items
Recommendation:
Commemoration of 400 years of Slavery Activities
Livable Wages
Us e of EDA O wned P roperty
F ood Trucks
S trategic P lans for years 2018-2020 and 2021-2023
Dis cus s ion of Mayor/C ity C ounc il roles & res ponsibilities
(C ommonS ense Inc.)
Background:
S trategic Priorities and Values:
O perational Exc ellenc e