HF 4220

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to workers' compensation; providing for the distribution of surplus
money in the assigned risk plan; amending Minnesota Statutes 2006, section
79.251, subdivision 1.

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

Section 1.

Minnesota Statutes 2006, section 79.251, subdivision 1, is amended to read:

Subdivision 1.

General duties of commissioner.

(a)(1) The commissioner shall
have all the usual powers and authorities necessary for the discharge of the commissioner's
duties under this section and may contract with individuals in discharge of those duties.
The commissioner shall audit the reserves established (a) for individual cases arising
under policies and contracts of coverage issued under subdivision 4 and (b) for the total
book of business issued under subdivision 4. If the commissioner determines on the basis
of an audit that there is an excess surplus in the assigned risk plan, the commissioner
must deleted text begin notify the commissioner of finance who shall transfer assets of the plan equal to the
excess surplus to the budget reserve account in the general fund. deleted text end new text begin notify the Workers'
Compensation Advisory Council which must then develop and implement a plan to
distribute the surplus on an equitable basis to employers insured through the plan as
reimbursement for premiums paid to the plan for coverage.
new text end

(2) The commissioner shall monitor the operations of section 79.252 and this section
and shall periodically make recommendations to the governor and legislature when
appropriate, for improvement in the operation of those sections.

(3) All insurers and self-insurance administrators issuing policies or contracts under
subdivision 4 shall pay to the commissioner a .25 percent assessment on premiums for
policies and contracts of coverage issued under subdivision 4 for the purpose of defraying
the costs of performing the duties under clauses (1) and (2). Proceeds of the assessment
shall be deposited in the state treasury and credited to the general fund.

(4) The assigned risk plan shall not be deemed a state agency.

(5) The commissioner shall monitor and have jurisdiction over all reserves
maintained for assigned risk plan losses.

(b) As used in this subdivision, "excess surplus" means the amount of assigned
risk plan assets in excess of the amount needed to pay all current liabilities of the plan,
including, but not limited to:

(1) administrative expenses;

(2) benefit claims; and

(3) if the assigned risk plan is dissolved under subdivision 8, the amounts that would
be due insurers who have paid assessments to the plan.