Source: https://ros.leg.mn/statutes/?id=16A.124
Timestamp: 2018-03-20 21:30:18
Document Index: 37042791

Matched Legal Cases: ['art 2', 'art 2', 'art 9', 'art 3', 'art 3', 'art 3', 'art 3', 'art 14', 'art 5', 'art 3', 'art 9', 'art 2', 'art 2']

16A.124 - 2017 Minnesota Statutes
Section 16A.124
16A.12316A.1245
2016 Subd. 4a Amended 2016 c 158 art 2 s 5
2016 Subd. 4b Amended 2016 c 158 art 2 s 6
2014 Subd. 5 Amended 2014 c 287 s 1
1997 Subd. 4b Amended 1997 c 203 art 9 s 1
1996 Subd. 1a New 1996 c 457 s 3
1996 Subd. 7 Amended 1996 c 457 s 4
1995 Subd. 4b New 1995 c 241 s 1
1995 Subd. 8 Amended 1995 c 241 s 2
1994 Subd. 2 Amended 1994 c 632 art 3 s 24
1994 Subd. 6 Repealed 1994 c 632 art 3 s 65
1994 Subd. 7 Amended 1994 c 632 art 3 s 25
16A.124 PROMPT PAYMENT OF STATE AGENCY BILLS REQUIRED.
For the purposes of this section, the following terms have the meanings here given them.
(a) "Commissioner" means the commissioner of management and budget.
(b) "State agency" has the meaning assigned to it in section 16B.01.
Subd. 1a.State agencies are vendors.
For purposes of this section, a state agency that bills another state agency for a service or commodity is considered a vendor like any nonstate vendor.
Subd. 2.Commissioner supervision.
The commissioner shall monitor state agencies to insure the prompt payment of vendor obligations.
Subd. 3.Payment required.
State agencies must pay each valid vendor obligation so that the vendor receives payment within the vendor's early payment discount period. If there is no early payment discount period, the state agency must pay the vendor within 30 days following the receipt of the invoice for the completed delivery of the product or service.
Subd. 4.Invoice errors.
If an invoice is incorrect, defective, or otherwise improper, the agency must notify the vendor within ten days of discovering the error. Upon receiving a corrected invoice, the agency must pay the bill within the time limitation contained in subdivision 3.
Subd. 4a.Invoice errors; Department of Human Services.
For purposes of Department of Human Services payments to hospitals receiving reimbursement under the medical assistance program, if an invoice is incorrect, defective, or otherwise improper, the Department of Human Services must notify the hospital of all errors, within 30 days of discovery of the errors.
Subd. 4b.Health care payments.
(a) The commissioner of human services must pay or deny a valid vendor obligation for health services under the medical assistance or MinnesotaCare program within 30 days after receipt. A "valid vendor obligation" means a clean claim submitted directly to the commissioner by an eligible health care provider for health services provided to an eligible recipient. A "clean claim" means an original paper or electronic claim with correct data elements, prepared in accordance with the commissioner's published specifications for claim preparation, that does not require an attachment or text information to pay or deny the claim. Adjustment claims, claims with attachments and text information, and claims submitted to the commissioner as the secondary or tertiary payer, that have been prepared in accordance with the commissioner's published specifications, must be adjudicated within 90 days after receipt.
For purposes of this subdivision, paragraphs (b) and (c) apply.
(b) The agency is not required to make an interest penalty payment on claims for which payment has been delayed for purposes of reviewing potentially fraudulent or abusive billing practices, if there is an eventual finding by the agency of fraud or abuse.
(c) The agency is not required to make an interest penalty payment of less than $2.
Subd. 5.Payment of interest on late payments required.
Subd. 5a.University of Minnesota; payment of interest on late payments authorized.
The University of Minnesota may comply with the requirements of subdivision 5.
[Repealed, 1994 c 632 art 3 s 65]
Subd. 7.Report to legislature.
The commissioner shall report to the legislature by December 31 of each year summarizing the state's payment record for the preceding fiscal year. The report shall include the amount of interest penalties and the specific steps being taken to reduce the incidence of late payments in the future.
Subd. 8.Applicability.
Subdivisions 1 to 7 apply to all agency purchases, leases, rentals, and contracts for services, including construction and remodeling contracts, except for:
(1) purchases from or contracts for service with a public utility as defined in section 216B.02 or a telephone company as defined in section 237.01 that has on file with the Public Utilities Commission an approved practice regarding late fees; and
(2) provider billings to and contracts with the commissioner of human services for health care services, which are subject only to subdivisions 4a and 4b.
1984 c 502 art 14 s 1; 1985 c 136 s 1-4; 1985 c 248 s 68; 1992 c 549 art 5 s 1; 1994 c 632 art 3 s 24,25; 1995 c 241 s 1,2; 1996 c 457 s 3,4; 1997 c 203 art 9 s 1; 2009 c 101 art 2 s 109; 2014 c 287 s 1; 2016 c 158 art 2 s 5,6