HF 1022

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:43am

A bill for an act
relating to local government; providing that local governments may provide
health coverage for employees through negotiated contributions to self-funded,
multiemployer health and welfare plans; amending Minnesota Statutes 2008,
section 471.61, subdivision 1.

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

Section 1.

Minnesota Statutes 2008, section 471.61, subdivision 1, is amended to read:

Subdivision 1.

Officers, employees.

A county, municipal corporation, town, school
district, county extension committee, other political subdivision or other body corporate
and politic of this state, other than the state or any department of the state, through its
governing body, and any two or more subdivisions acting jointly through their governing
bodies, may insure or protect its or their officers and employees, and their dependents, or
any class or classes of officers, employees, or dependents, under a policy or policies or
contract or contracts of group insurance or benefits covering life, health, and accident, in
the case of employees, and medical and surgical benefits and hospitalization insurance
or benefits for both employees and dependents or dependents of an employee whose
death was due to causes arising out of and in the course of employment, or any one or
more of those forms of insurance or protection. A governmental unit, including county
extension committees and those paying their employees, may pay all or any part of
the premiums or charges on the insurance or protection. A payment is deemed to be
additional compensation paid to the officers or employees, but for purposes of determining
contributions or benefits under a public pension or retirement system it is not deemed
to be additional compensation. One or more governmental units may determine that
a person is an officer or employee if the person receives income from the governmental
subdivisions without regard to the manner of election or appointment, including but not
limited to employees of county historical societies that receive funding from the county
and employees of the Minnesota Inter-county Association. The appropriate officer of
the governmental unit, or those disbursing county extension funds, shall deduct from
the salary or wages of each officer and employee who elects to become insured or so
protected, on the officer's or employee's written order, all or part of the officer's or
employee's share of premiums or charges and remit the share or portion to the insurer or
company issuing the policy or contract.

A governmental unit, other than a school district, that pays all or part of the premiums
or charges is authorized to levy and collect a tax, if necessary, in the next annual tax levy
for the purpose of providing the necessary money for the payment of the premiums or
charges, and the sums levied and appropriated are not, in the event the sum exceeds the
maximum sum allowed by the charter of a municipal corporation, considered part of
the cost of government of the governmental unit as defined in any levy or expenditure
limitation; provided at least 50 percent of the cost of benefits on dependents must be
contributed by the employee or be paid by levies within existing charter tax limitations.

The word "dependents" as used in this subdivision means spouse and minor
unmarried children under the age of 18 years actually dependent upon the employee.

new text begin Notwithstanding any other law to the contrary, a political subdivision described in
this subdivision may provide health benefits to its employees, dependents, and other
eligible persons through negotiated contributions to self-funded, multiemployer health
and welfare funds.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment;
applies to contributions made before, on, or after that date; and is intended as a clarification
of existing law.
new text end