<div class="xtend"><a id="pl.1.1"></a><var>1.1</var>CONFERENCE COMMITTEE REPORT ON H. F. No. 2180<br />
         		
         <div class="xtend_ce"><a id="pl.1.2"></a><var>1.2</var>A bill for an act<br />
            		
         </div><a id="pl.1.3"></a><var>1.3</var>relating to insurance; amending provisions relating to health coverage for school <br />
         		<a id="pl.1.4"></a><var>1.4</var>district employees; amending Minnesota Statutes 2012, sections 43A.316, <br />
         		<a id="pl.1.5"></a><var>1.5</var>subdivision 10, by adding a subdivision; 123B.09, subdivision 12; 123B.75, by <br />
         		<a id="pl.1.6"></a><var>1.6</var>adding a subdivision; 471.6161, subdivisions 1, 3, by adding a subdivision; <br />
         		<a id="pl.1.7"></a><var>1.7</var>471.895, subdivision 1; Minnesota Statutes 2013 Supplement, section 124D.10, <br />
         		<a id="pl.1.8"></a><var>1.8</var>subdivisions 4a, 11, 21.<br />
         		<a id="pl.1.9"></a><var>1.9</var>May 13, 2014<br />
         		<a id="pl.1.10"></a><var>1.10</var>The Honorable Paul Thissen<br />
         		<a id="pl.1.11"></a><var>1.11</var>Speaker of the House of Representatives<br />
         		<a id="pl.1.12"></a><var>1.12</var>The Honorable Sandra L. Pappas<br />
         		<a id="pl.1.13"></a><var>1.13</var>President of the Senate<br />
         		<a id="pl.1.14"></a><var>1.14</var>We, the undersigned conferees for H. F. No. 2180 report that we have agreed upon <br />
         		<a id="pl.1.15"></a><var>1.15</var>the items in dispute and recommend as follows:<br />
         		<a id="pl.1.16"></a><var>1.16</var>That the Senate recede from its amendments and that H. F. No. 2180 be further <br />
         		<a id="pl.1.17"></a><var>1.17</var>amended as follows:<br />
         		<a id="pl.1.18"></a><var>1.18</var>Delete everything after the enacting clause and insert:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.19"></a><var>1.19</var>&nbsp;&nbsp;&nbsp;&nbsp;"Section 1. Minnesota Statutes 2012, section 43A.316, subdivision 10, is amended to <br />
         		<a id="pl.1.20"></a><var>1.20</var>read:<br />
         		<a id="pl.1.21"></a><var>1.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Exemption.</b> The public employee insurance program and, where <br />
         		<a id="pl.1.22"></a><var>1.22</var>applicable, the employers participating in it are exempt from chapters 60A, 62A, 62C, <br />
         		<a id="pl.1.23"></a><var>1.23</var>62D, 62E, and 62H, section 
         <statute_ref>471.617</statute_ref>, subdivisions 2 and 3, and the bidding requirements of <br />
         		<a id="pl.1.24"></a><var>1.24</var>section 
         <statute_ref>471.6161</statute_ref>. The public employee insurance program must follow the requirements <br />
         		<a id="pl.1.25"></a><var>1.25</var>of section 471.6161, subdivision 8.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.1.26"></a><var>1.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision <br />
         		<a id="pl.1.27"></a><var>1.27</var>to read:<br />
         		<a id="pl.2.1"></a><var>2.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Proposal from school district; response required.</b> Upon receipt of a <br />
         		<a id="pl.2.2"></a><var>2.2</var>request for a proposal from a school district pursuant to section 471.6161, subdivision 8, <br />
         		<a id="pl.2.3"></a><var>2.3</var>the public employees insurance program shall respond to the request within 60 days.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.2.4"></a><var>2.4</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2012, section 123B.09, subdivision 12, is amended to read:<br />
         		<a id="pl.2.5"></a><var>2.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12. <b>Board to fix compensation.</b> The clerk, treasurer, and superintendent <br />
         		<a id="pl.2.6"></a><var>2.6</var>of any district shall receive such compensation as may be fixed by the board. Unless <br />
         		<a id="pl.2.7"></a><var>2.7</var>otherwise provided by law, the other members of the board shall also receive such <br />
         		<a id="pl.2.8"></a><var>2.8</var>compensation as may be fixed by the board. All members of the board may receive <br />
         		<a id="pl.2.9"></a><var>2.9</var>reimbursement for transportation at the rate provided for in section 
         <statute_ref>471.665</statute_ref>. No board <br />
         		<a id="pl.2.10"></a><var>2.10</var>member or school district employee shall receive any compensation or benefits based on <br />
         		<a id="pl.2.11"></a><var>2.11</var>incentives or other money provided to the school district by or from a source of group <br />
         		<a id="pl.2.12"></a><var>2.12</var>insurance coverage referenced in section 471.6161, subdivision 1, except for a refund <br />
         		<a id="pl.2.13"></a><var>2.13</var>provided under section 123B.75, subdivision 10, or a wellness plan that is mutually agreed <br />
         		<a id="pl.2.14"></a><var>2.14</var>upon by the district and the exclusive representatives of employees.<br />
         		<br />
         		<a id="bill.0.4.0"></a><a id="pl.2.15"></a><var>2.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2012, section 123B.75, is amended by adding a subdivision <br />
         		<a id="pl.2.16"></a><var>2.16</var>to read:<br />
         		<a id="pl.2.17"></a><var>2.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Insurance premium refund.</b> (a) If money collected by an entity <br />
         		<a id="pl.2.18"></a><var>2.18</var>providing group insurance under section 471.6161, subdivision 1, for the payment of <br />
         		<a id="pl.2.19"></a><var>2.19</var>insurance premiums is above the cost of that coverage and returned to the school district <br />
         		<a id="pl.2.20"></a><var>2.20</var>purchasing that coverage as a refund, that school district must negotiate with the exclusive <br />
         		<a id="pl.2.21"></a><var>2.21</var>representative regarding the refund amount attributable to the proportionate number of <br />
         		<a id="pl.2.22"></a><var>2.22</var>insured lives covered by that exclusive representative.<br />
         		<a id="pl.2.23"></a><var>2.23</var>(b) If there is no exclusive representative or if the employer and the exclusive <br />
         		<a id="pl.2.24"></a><var>2.24</var>representative are unable to come to an agreement within 150 days, the remaining refunds <br />
         		<a id="pl.2.25"></a><var>2.25</var>shall be used to pay the full premium to the program for any employees not covered by <br />
         		<a id="pl.2.26"></a><var>2.26</var>an agreement negotiated under this section until the proportionate refunds are depleted. <br />
         		<a id="pl.2.27"></a><var>2.27</var>These refunds shall be used for a proportional premium payment at the time it is necessary <br />
         		<a id="pl.2.28"></a><var>2.28</var>to deplete the balance.<br />
         		<br />
         		<a id="bill.0.5.0"></a><a id="pl.2.29"></a><var>2.29</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 4a, is <br />
         		<a id="pl.2.30"></a><var>2.30</var>amended to read:<br />
         		<a id="pl.2.31"></a><var>2.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 4a. <b>Conflict of interest.</b> (a) An individual is prohibited from serving as a <br />
         		<a id="pl.2.32"></a><var>2.32</var>member of the charter school board of directors if the individual, an immediate family <br />
         		<a id="pl.2.33"></a><var>2.33</var>member, or the individual's partner is a full or part owner or principal with a for-profit or <br />
         		<a id="pl.3.1"></a><var>3.1</var>nonprofit entity or independent contractor with whom the charter school contracts, directly <br />
         		<a id="pl.3.2"></a><var>3.2</var>or indirectly, for professional services, goods, or facilities. An individual is prohibited <br />
         		<a id="pl.3.3"></a><var>3.3</var>from serving as a board member if an immediate family member is an employee of the <br />
         		<a id="pl.3.4"></a><var>3.4</var>school. A violation of this prohibition renders a contract voidable at the option of the <br />
         		<a id="pl.3.5"></a><var>3.5</var>commissioner or the charter school board of directors. A member of a charter school <br />
         		<a id="pl.3.6"></a><var>3.6</var>board of directors who violates this prohibition is individually liable to the charter school <br />
         		<a id="pl.3.7"></a><var>3.7</var>for any damage caused by the violation.<br />
         		<a id="pl.3.8"></a><var>3.8</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) No member of the board of directors, employee, officer, or agent of a charter <br />
         		<a id="pl.3.9"></a><var>3.9</var>school shall participate in selecting, awarding, or administering a contract if a conflict <br />
         		<a id="pl.3.10"></a><var>3.10</var>of interest exists. A conflict exists when:<br />
         		<a id="pl.3.11"></a><var>3.11</var>&nbsp;&nbsp;&nbsp;&nbsp;(1) the board member, employee, officer, or agent;<br />
         		<a id="pl.3.12"></a><var>3.12</var>&nbsp;&nbsp;&nbsp;&nbsp;(2) the immediate family of the board member, employee, officer, or agent;<br />
         		<a id="pl.3.13"></a><var>3.13</var>&nbsp;&nbsp;&nbsp;&nbsp;(3) the partner of the board member, employee, officer, or agent; or<br />
         		<a id="pl.3.14"></a><var>3.14</var>&nbsp;&nbsp;&nbsp;&nbsp;(4) an organization that employs, or is about to employ any individual in clauses <br />
         		<a id="pl.3.15"></a><var>3.15</var>(1) to (3),<br />
         		<a id="pl.3.16"></a><var>3.16</var>has a financial or other interest in the entity with which the charter school is contracting. <br />
         		<a id="pl.3.17"></a><var>3.17</var>A violation of this prohibition renders the contract void.<br />
         		<a id="pl.3.18"></a><var>3.18</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) Any employee, agent, or board member of the authorizer who participates <br />
         		<a id="pl.3.19"></a><var>3.19</var>in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or <br />
         		<a id="pl.3.20"></a><var>3.20</var>nonrenewal process or decision is ineligible to serve on the board of directors of a school <br />
         		<a id="pl.3.21"></a><var>3.21</var>chartered by that authorizer.<br />
         		<a id="pl.3.22"></a><var>3.22</var>&nbsp;&nbsp;&nbsp;&nbsp;(d) An individual may serve as a member of the board of directors if no conflict of <br />
         		<a id="pl.3.23"></a><var>3.23</var>interest under paragraph (a) exists.<br />
         		<a id="pl.3.24"></a><var>3.24</var>&nbsp;&nbsp;&nbsp;&nbsp;(e) The conflict of interest provisions under this subdivision do not apply to <br />
         		<a id="pl.3.25"></a><var>3.25</var>compensation paid to a teacher employed as a teacher by the charter school or a teacher <br />
         		<a id="pl.3.26"></a><var>3.26</var>who provides instructional services to the charter school through a cooperative formed <br />
         		<a id="pl.3.27"></a><var>3.27</var>under chapter 308A when the teacher also serves on the charter school board of directors.<br />
         		<a id="pl.3.28"></a><var>3.28</var>(f) A charter school board member, employee, or officer is a local official for <br />
         		<a id="pl.3.29"></a><var>3.29</var>purposes of section 471.895 with regard to receipt of gifts as defined under section <br />
         		<a id="pl.3.30"></a><var>3.30</var>10A.071, subdivision 1, paragraph (b). A board member, employee, or officer must not <br />
         		<a id="pl.3.31"></a><var>3.31</var>receive compensation from a group health insurance provider.<br />
         		<br />
         		<a id="bill.0.6.0"></a><a id="pl.3.32"></a><var>3.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 11, is <br />
         		<a id="pl.3.33"></a><var>3.33</var>amended to read:<br />
         		<a id="pl.3.34"></a><var>3.34</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Employment and other operating matters.</b> (a) A charter school must <br />
         		<a id="pl.3.35"></a><var>3.35</var>employ or contract with necessary teachers, as defined by section 
         <statute_ref>122A.15, subdivision 1</statute_ref>, <br />
         		<a id="pl.4.1"></a><var>4.1</var>who hold valid licenses to perform the particular service for which they are employed in <br />
         		<a id="pl.4.2"></a><var>4.2</var>the school. The charter school's state aid may be reduced under section 
         <statute_ref>127A.43 </statute_ref>if the <br />
         		<a id="pl.4.3"></a><var>4.3</var>school employs a teacher who is not appropriately licensed or approved by the board of <br />
         		<a id="pl.4.4"></a><var>4.4</var>teaching. The school may employ necessary employees who are not required to hold <br />
         		<a id="pl.4.5"></a><var>4.5</var>teaching licenses to perform duties other than teaching and may contract for other services. <br />
         		<a id="pl.4.6"></a><var>4.6</var>The school may discharge teachers and nonlicensed employees. The charter school board <br />
         		<a id="pl.4.7"></a><var>4.7</var>is subject to section 
         <statute_ref>181.932</statute_ref>. When offering employment to a prospective employee, a <br />
         		<a id="pl.4.8"></a><var>4.8</var>charter school must give that employee a written description of the terms and conditions <br />
         		<a id="pl.4.9"></a><var>4.9</var>of employment and the school's personnel policies.<br />
         		<a id="pl.4.10"></a><var>4.10</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) A person, without holding a valid administrator's license, may perform <br />
         		<a id="pl.4.11"></a><var>4.11</var>administrative, supervisory, or instructional leadership duties. The board of directors shall <br />
         		<a id="pl.4.12"></a><var>4.12</var>establish qualifications for persons that hold administrative, supervisory, or instructional <br />
         		<a id="pl.4.13"></a><var>4.13</var>leadership roles. The qualifications shall include at least the following areas: instruction <br />
         		<a id="pl.4.14"></a><var>4.14</var>and assessment; human resource and personnel management; financial management; <br />
         		<a id="pl.4.15"></a><var>4.15</var>legal and compliance management; effective communication; and board, authorizer, and <br />
         		<a id="pl.4.16"></a><var>4.16</var>community relationships. The board of directors shall use those qualifications as the basis <br />
         		<a id="pl.4.17"></a><var>4.17</var>for job descriptions, hiring, and performance evaluations of those who hold administrative, <br />
         		<a id="pl.4.18"></a><var>4.18</var>supervisory, or instructional leadership roles. The board of directors and an individual <br />
         		<a id="pl.4.19"></a><var>4.19</var>who does not hold a valid administrative license and who serves in an administrative, <br />
         		<a id="pl.4.20"></a><var>4.20</var>supervisory, or instructional leadership position shall develop a professional development <br />
         		<a id="pl.4.21"></a><var>4.21</var>plan. Documentation of the implementation of the professional development plan of these <br />
         		<a id="pl.4.22"></a><var>4.22</var>persons shall be included in the school's annual report.<br />
         		<a id="pl.4.23"></a><var>4.23</var>&nbsp;&nbsp;&nbsp;&nbsp;(c) The board of directors also shall decide and be responsible for policy matters <br />
         		<a id="pl.4.24"></a><var>4.24</var>related to the operation of the school, including budgeting, curriculum programming, <br />
         		<a id="pl.4.25"></a><var>4.25</var>personnel, and operating procedures. The board shall adopt a policy on nepotism in <br />
         		<a id="pl.4.26"></a><var>4.26</var>employment. The board shall adopt personnel evaluation policies and practices that, <br />
         		<a id="pl.4.27"></a><var>4.27</var>at a minimum:<br />
         		<a id="pl.4.28"></a><var>4.28</var>(1) carry out the school's mission and goals;<br />
         		<a id="pl.4.29"></a><var>4.29</var>(2) evaluate the execution of charter contract goals and commitments;<br />
         		<a id="pl.4.30"></a><var>4.30</var>(3) evaluate student achievement, postsecondary and workforce readiness, and <br />
         		<a id="pl.4.31"></a><var>4.31</var>student engagement and connection goals;<br />
         		<a id="pl.4.32"></a><var>4.32</var>(4) establish a teacher evaluation process under subdivision 8, paragraph (t); and<br />
         		<a id="pl.4.33"></a><var>4.33</var>(5) provide professional development related to the individual's job responsibilities.<br />
         		<a id="pl.4.34"></a><var>4.34</var>(d) A charter school board with at least 25 employees or a teacher cooperative <br />
         		<a id="pl.4.35"></a><var>4.35</var>of licensed teachers providing instruction under a contract between a school and a <br />
         		<a id="pl.4.36"></a><var>4.36</var>cooperative that provides group health insurance coverage shall:<br />
         		<a id="pl.5.1"></a><var>5.1</var>(1) request proposals for group health insurance coverage from a minimum of three <br />
         		<a id="pl.5.2"></a><var>5.2</var>sources at least every two years; and<br />
         		<a id="pl.5.3"></a><var>5.3</var>(2) notify employees covered by the group health insurance coverage before the <br />
         		<a id="pl.5.4"></a><var>5.4</var>effective date of the changes in the group coverage policy contract.<br />
         		<a id="pl.5.5"></a><var>5.5</var>A charter school board or a cooperative of teachers that provides group health insurance <br />
         		<a id="pl.5.6"></a><var>5.6</var>coverage must establish and publish on its Web site the policy for the purchase of group <br />
         		<a id="pl.5.7"></a><var>5.7</var>health insurance coverage. A charter school board policy must include a sealed proposal <br />
         		<a id="pl.5.8"></a><var>5.8</var>process, which requires all proposals to be opened at the same time. Upon the openings of <br />
         		<a id="pl.5.9"></a><var>5.9</var>the proposals in accordance with the school or cooperative policy, the proposals become <br />
         		<a id="pl.5.10"></a><var>5.10</var>public data under chapter 13.<br />
         		<a id="pl.5.11"></a><var>5.11</var>Nothing in this section supersedes the right of an exclusive representative to negotiate <br />
         		<a id="pl.5.12"></a><var>5.12</var>over terms and conditions of employment.<br />
         		<br />
         		<a id="bill.0.7.0"></a><a id="pl.5.13"></a><var>5.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 21, is <br />
         		<a id="pl.5.14"></a><var>5.14</var>amended to read:<br />
         		<a id="pl.5.15"></a><var>5.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 21. <b>Collective bargaining.</b> Employees of the board of directors of a charter <br />
         		<a id="pl.5.16"></a><var>5.16</var>school may, if otherwise eligible, organize under chapter 179A and comply with its <br />
         		<a id="pl.5.17"></a><var>5.17</var>provisions. The board of directors of a charter school is a public employer, for the <br />
         		<a id="pl.5.18"></a><var>5.18</var>purposes of chapter 179A, upon formation of one or more bargaining units at the school. <br />
         		<a id="pl.5.19"></a><var>5.19</var>Bargaining units at the school must be separate from any other units within an authorizing <br />
         		<a id="pl.5.20"></a><var>5.20</var>district, except that bargaining units may remain part of the appropriate unit within an <br />
         		<a id="pl.5.21"></a><var>5.21</var>authorizing district, if the employees of the school, the board of directors of the school, the <br />
         		<a id="pl.5.22"></a><var>5.22</var>exclusive representative of the appropriate unit in the authorizing district, and the board <br />
         		<a id="pl.5.23"></a><var>5.23</var>of the authorizing district agree to include the employees in the appropriate unit of the <br />
         		<a id="pl.5.24"></a><var>5.24</var>authorizing district. The board of directors of a charter school with employees organized <br />
         		<a id="pl.5.25"></a><var>5.25</var>under this subdivision must comply with sections 471.6161 and 471.895.<br />
         		<br />
         		<a id="bill.0.8.0"></a><a id="pl.5.26"></a><var>5.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2012, section 471.6161, subdivision 1, is amended to read:<br />
         		<a id="pl.5.27"></a><var>5.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Group insurance coverage.</b> For purposes of this section, "group <br />
         		<a id="pl.5.28"></a><var>5.28</var>insurance coverage" means benefit coverage provided to a group through ~~a carrier~~ an <br />
         		<a id="pl.5.29"></a><var>5.29</var>entity authorized under ~~chapters~~ section 43A.316 or 123A.21, subdivision 7; or chapter<br />
         		<a id="pl.5.30"></a><var>5.30</var> 61A, 62A, 62C, ~~and~~ or 62D to do business in the state.<br />
         		<br />
         		<a id="bill.0.9.0"></a><a id="pl.5.31"></a><var>5.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2012, section 471.6161, subdivision 2, is amended to read:<br />
         		<a id="pl.5.32"></a><var>5.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Request for proposal.</b> Every political subdivision authorized by law to <br />
         		<a id="pl.5.33"></a><var>5.33</var>purchase group insurance for its employees and providing or intending to provide group <br />
         		<a id="pl.6.1"></a><var>6.1</var>insurance coverage and benefits for 25 or more of its employees shall request proposals <br />
         		<a id="pl.6.2"></a><var>6.2</var>from and enter into contracts with ~~carriers~~ entities referenced in subdivision 1 that in the <br />
         		<a id="pl.6.3"></a><var>6.3</var>judgment of the political subdivision are best qualified to provide coverage. The request <br />
         		<a id="pl.6.4"></a><var>6.4</var>for proposals shall be in writing and at a minimum shall include: coverage to be provided, <br />
         		<a id="pl.6.5"></a><var>6.5</var>criteria for evaluation of ~~carrier~~ proposals from entities referenced in subdivision 1, and <br />
         		<a id="pl.6.6"></a><var>6.6</var>the aggregate claims records for the appropriate period. A political subdivision may <br />
         		<a id="pl.6.7"></a><var>6.7</var>exclude from consideration proposals requiring self-insurance. Public notice of the request <br />
         		<a id="pl.6.8"></a><var>6.8</var>for proposals must be provided in a newspaper or trade journal at least 21 days before the <br />
         		<a id="pl.6.9"></a><var>6.9</var>final date for submitting proposals.<br />
         		<br />
         		<a id="bill.0.10.0"></a><a id="pl.6.10"></a><var>6.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2012, section 471.6161, subdivision 3, is amended to read:<br />
         		<a id="pl.6.11"></a><var>6.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Selection of carrier.</b> The political subdivision shall make benefit and <br />
         		<a id="pl.6.12"></a><var>6.12</var>cost comparisons and evaluate the proposals using the written criteria. The political <br />
         		<a id="pl.6.13"></a><var>6.13</var>subdivision may negotiate with ~~the carrier~~ an entity referenced in subdivision 1 on benefits, <br />
         		<a id="pl.6.14"></a><var>6.14</var>premiums, and other contract terms. ~~Carriers applying~~ Any entity providing group <br />
         		<a id="pl.6.15"></a><var>6.15</var>insurance coverage to the political subdivision must provide the political subdivision <br />
         		<a id="pl.6.16"></a><var>6.16</var>with aggregate claims records for the appropriate period. The political subdivision must <br />
         		<a id="pl.6.17"></a><var>6.17</var>prepare a written rationale for its decision before entering into a contract with ~~a carrier~~ an <br />
         		<a id="pl.6.18"></a><var>6.18</var>entity referenced in subdivision 1.<br />
         		<br />
         		<a id="bill.0.11.0"></a><a id="pl.6.19"></a><var>6.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2012, section 471.6161, is amended by adding a <br />
         		<a id="pl.6.20"></a><var>6.20</var>subdivision to read:<br />
         		<a id="pl.6.21"></a><var>6.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 8. <b>School districts; group health insurance coverage.</b> (a) Any entity <br />
         		<a id="pl.6.22"></a><var>6.22</var>providing group health insurance coverage to a school district must provide the school <br />
         		<a id="pl.6.23"></a><var>6.23</var>district with school district-specific nonidentifiable aggregate claims records for the most <br />
         		<a id="pl.6.24"></a><var>6.24</var>recent 24 months within 30 days of the request.<br />
         		<a id="pl.6.25"></a><var>6.25</var>(b) School districts shall request proposals for group health insurance coverage as <br />
         		<a id="pl.6.26"></a><var>6.26</var>provided in subdivision 2 from a minimum of three potential sources of coverage. One of <br />
         		<a id="pl.6.27"></a><var>6.27</var>these requests must go to an administrator governed by chapter 43A. Entities referenced <br />
         		<a id="pl.6.28"></a><var>6.28</var>in subdivision 1 must respond to requests for proposals received directly from a school <br />
         		<a id="pl.6.29"></a><var>6.29</var>district. School districts that are self-insured must also follow these provisions, except <br />
         		<a id="pl.6.30"></a><var>6.30</var>as provided in paragraph (f). School districts must make requests for proposals at least <br />
         		<a id="pl.6.31"></a><var>6.31</var>150 days prior to the expiration of the existing contract but not more frequently than once <br />
         		<a id="pl.6.32"></a><var>6.32</var>every 24 months. The request for proposals must include the most recently available <br />
         		<a id="pl.6.33"></a><var>6.33</var>24 months of nonidentifiable aggregate claims data. The request for proposals must be <br />
         		<a id="pl.6.34"></a><var>6.34</var>publicly released at or prior to its release to potential sources of coverage.<br />
         		<a id="pl.7.1"></a><var>7.1</var>(c) School district contracts for group health insurance must not be longer than <br />
         		<a id="pl.7.2"></a><var>7.2</var>two years unless the exclusive representative of the largest employment group and the <br />
         		<a id="pl.7.3"></a><var>7.3</var>school district agree otherwise.<br />
         		<a id="pl.7.4"></a><var>7.4</var>(d) All initial proposals shall be sealed upon receipt until they are all opened no less <br />
         		<a id="pl.7.5"></a><var>7.5</var>than 90 days prior to the plan's renewal date in the presence of up to three representatives <br />
         		<a id="pl.7.6"></a><var>7.6</var>selected by the exclusive representative of the largest group of employees. Section 13.591, <br />
         		<a id="pl.7.7"></a><var>7.7</var>subdivision 3, paragraph (b), applies to data in the proposals. The representatives of <br />
         		<a id="pl.7.8"></a><var>7.8</var>the exclusive representative must maintain the data according to this classification and <br />
         		<a id="pl.7.9"></a><var>7.9</var>are subject to the remedies and penalties under sections 13.08 and 13.09 for a violation <br />
         		<a id="pl.7.10"></a><var>7.10</var>of this requirement.<br />
         		<a id="pl.7.11"></a><var>7.11</var>(e) A school district, in consultation with the same representatives referenced in <br />
         		<a id="pl.7.12"></a><var>7.12</var>paragraph (d), may continue to negotiate with any entity that submitted a proposal under <br />
         		<a id="pl.7.13"></a><var>7.13</var>paragraph (d) in order to reduce costs or improve services under the proposal. Following <br />
         		<a id="pl.7.14"></a><var>7.14</var>the negotiations any entity that submitted an initial proposal may submit a final proposal <br />
         		<a id="pl.7.15"></a><var>7.15</var>incorporating the negotiations, which is due no less than 75 days prior to the plan's <br />
         		<a id="pl.7.16"></a><var>7.16</var>renewal date. All the final proposals submitted must be opened at the same time in the <br />
         		<a id="pl.7.17"></a><var>7.17</var>presence of up to three representatives selected by the exclusive representative of the <br />
         		<a id="pl.7.18"></a><var>7.18</var>largest group of employees. Notwithstanding section 13.591, subdivision 3, paragraph (b), <br />
         		<a id="pl.7.19"></a><var>7.19</var>following the opening of the final proposals, all the proposals, including any made under <br />
         		<a id="pl.7.20"></a><var>7.20</var>paragraph (d), and other data submitted in connection with the proposals are public data. <br />
         		<a id="pl.7.21"></a><var>7.21</var>The school district may choose from any of the initial or final proposals without further <br />
         		<a id="pl.7.22"></a><var>7.22</var>negotiations and in accordance with subdivision 5, but not sooner than 15 days after <br />
         		<a id="pl.7.23"></a><var>7.23</var>the proposals become public data.<br />
         		<a id="pl.7.24"></a><var>7.24</var>(f) School districts that are self-insured shall follow all of the requirements of this <br />
         		<a id="pl.7.25"></a><var>7.25</var>section, except that:<br />
         		<a id="pl.7.26"></a><var>7.26</var>(1) their requests for proposals may be for third-party administrator services, where <br />
         		<a id="pl.7.27"></a><var>7.27</var>applicable;<br />
         		<a id="pl.7.28"></a><var>7.28</var>(2) these requests for proposals must be from a minimum of three different sources, <br />
         		<a id="pl.7.29"></a><var>7.29</var>which may include both entities referenced in subdivision 1 and providers of third-party <br />
         		<a id="pl.7.30"></a><var>7.30</var>administrator services;<br />
         		<a id="pl.7.31"></a><var>7.31</var>(3) for purposes of fulfilling the requirement to request a proposal for group <br />
         		<a id="pl.7.32"></a><var>7.32</var>insurance coverage from an administrator governed by chapter 43A, self-insured districts <br />
         		<a id="pl.7.33"></a><var>7.33</var>are not required to include in the request for proposal the coverage to be provided;<br />
         		<a id="pl.7.34"></a><var>7.34</var>(4) a district that is self-insured on or before the date of enactment, or that is <br />
         		<a id="pl.7.35"></a><var>7.35</var>self-insured with more than 1,000 insured lives, may, but need not, request a proposal <br />
         		<a id="pl.7.36"></a><var>7.36</var>from an administrator governed by chapter 43A;<br />
         		<a id="pl.8.1"></a><var>8.1</var>(5) requests for proposals must be sent to providers no less than 90 days prior to <br />
         		<a id="pl.8.2"></a><var>8.2</var>the expiration of the existing contract; and<br />
         		<a id="pl.8.3"></a><var>8.3</var>(6) proposals must be submitted at least 60 days prior to the plan's renewal date <br />
         		<a id="pl.8.4"></a><var>8.4</var>and all proposals shall be opened at the same time and in the presence of the exclusive <br />
         		<a id="pl.8.5"></a><var>8.5</var>representative, where applicable.<br />
         		<a id="pl.8.6"></a><var>8.6</var>(g) Nothing in this section shall restrict the authority granted to school district boards <br />
         		<a id="pl.8.7"></a><var>8.7</var>of education by section 471.59, except that districts will not be considered self-insured for <br />
         		<a id="pl.8.8"></a><var>8.8</var>purposes of this subdivision solely through participation in a joint powers arrangement.<br />
         		<a id="pl.8.9"></a><var>8.9</var>(h) An entity providing group health insurance to a school district under a multiyear <br />
         		<a id="pl.8.10"></a><var>8.10</var>contract must give notice of any rate or plan design changes applicable under the contract <br />
         		<a id="pl.8.11"></a><var>8.11</var>at least 90 days before the effective date of any change. The notice must be given to the <br />
         		<a id="pl.8.12"></a><var>8.12</var>school district and to the exclusive representatives of employees.<br />
         		<br />
         		<a id="bill.0.12.0"></a><a id="pl.8.13"></a><var>8.13</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2012, section 471.617, subdivision 2, is amended to read:<br />
         		<a id="pl.8.14"></a><var>8.14</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 2. <b>Jointly.</b> Any two or more statutory or home rule charter cities, counties, <br />
         		<a id="pl.8.15"></a><var>8.15</var>school districts, or instrumentalities thereof which together have more than 100 employees <br />
         		<a id="pl.8.16"></a><var>8.16</var>may jointly self-insure for any employee health benefits including long-term disability, but <br />
         		<a id="pl.8.17"></a><var>8.17</var>not for employee life benefits, subject to the same requirements as an individual self-insurer <br />
         		<a id="pl.8.18"></a><var>8.18</var>under subdivision 1. Self-insurance pools under this section are subject to section 
         <statute_ref>62L.045</statute_ref>. <br />
         		<a id="pl.8.19"></a><var>8.19</var>A self-insurance pool established and operated by one or more service cooperatives <br />
         		<a id="pl.8.20"></a><var>8.20</var>governed by section 
         <statute_ref>123A.21</statute_ref> to provide coverage described in this subdivision qualifies <br />
         		<a id="pl.8.21"></a><var>8.21</var>under this subdivision, but the individual school district members of such a pool shall not <br />
         		<a id="pl.8.22"></a><var>8.22</var>be considered to be self-insured for purposes of section 471.6161, subdivision 8, paragraph <br />
         		<a id="pl.8.23"></a><var>8.23</var>(f). The commissioner of commerce may adopt rules pursuant to chapter 14, providing <br />
         		<a id="pl.8.24"></a><var>8.24</var>standards or guidelines for the operation and administration of self-insurance pools.<br />
         		<br />
         		<a id="bill.0.13.0"></a><a id="pl.8.25"></a><var>8.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2012, section 471.895, subdivision 1, is amended to read:<br />
         		<a id="pl.8.26"></a><var>8.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Definitions.</b> (a) The definitions in this subdivision apply to this <br />
         		<a id="pl.8.27"></a><var>8.27</var>section.<br />
         		<a id="pl.8.28"></a><var>8.28</var>(b) "Gift" has the meaning given it in section 
         <statute_ref>10A.071, subdivision 1</statute_ref>.<br />
         		<a id="pl.8.29"></a><var>8.29</var>(c) "Interested person" means a person or a representative of a person or association <br />
         		<a id="pl.8.30"></a><var>8.30</var>that has a direct financial interest in a decision that a local official is authorized to make.<br />
         		<a id="pl.8.31"></a><var>8.31</var>(d) "Local official" means:<br />
         		<a id="pl.8.32"></a><var>8.32</var>(1) an elected or appointed official of a county or city or of an agency, authority, <br />
         		<a id="pl.8.33"></a><var>8.33</var>or instrumentality of a county or city; and<br />
         		<a id="pl.9.1"></a><var>9.1</var>(2) an elected or appointed member of a school board, a school superintendent, a <br />
         		<a id="pl.9.2"></a><var>9.2</var>school principal, or a district school officer of any independent school district.<br />
         		<br />
         		<a id="bill.0.14.0"></a><a id="pl.9.3"></a><var>9.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. <b>EFFECTIVE DATE.</b><br />
         		<a id="pl.9.4"></a><var>9.4</var>Sections 3 to 7 and 13 are effective July 1, 2014. Sections 1, 2, 8 to 10, and 12 are <br />
         		<a id="pl.9.5"></a><var>9.5</var>effective the day following final enactment. Section 11 is effective the day following final <br />
         		<a id="pl.9.6"></a><var>9.6</var>enactment and applies to requests for proposals for group insurance coverage issued on <br />
         		<a id="pl.9.7"></a><var>9.7</var>or after that date."<br />
         		<a id="pl.9.8"></a><var>9.8</var>Delete the title and insert:<br />
         		
         <div class="xtend_ce"><a id="pl.9.9"></a><var>9.9</var>"A bill for an act<br />
            		
         </div><a id="pl.9.10"></a><var>9.10</var>relating to insurance; amending provisions relating to health coverage for school <br />
         		<a id="pl.9.11"></a><var>9.11</var>district employees;amending Minnesota Statutes 2012, sections 43A.316, <br />
         		<a id="pl.9.12"></a><var>9.12</var>subdivision 10, by adding a subdivision; 123B.09, subdivision 12; 123B.75, by <br />
         		<a id="pl.9.13"></a><var>9.13</var>adding a subdivision; 471.6161, subdivisions 1, 2, 3, by adding a subdivision; <br />
         		<a id="pl.9.14"></a><var>9.14</var>471.617, subdivision 2; 471.895, subdivision 1; Minnesota Statutes 2013 <br />
         		<a id="pl.9.15"></a><var>9.15</var>Supplement, section 124D.10, subdivisions 4a, 11, 21."<br />
         		
         <table>
            <col width="50px"></col>
            <col width="252px"></col>
            <col width="42px"></col>
            <col width="252px"></col>
            <tr>
               <td><a id="pl.10.1"></a><var>10.1</var><br />
                  		
               </td>
               <td colspan="3">We request the adoption of this report and repassage of the bill.<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.10.2"></a><var>10.2</var><br />
                  		
               </td>
               <td>House Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.10.3"></a><var>10.3</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.10.4"></a><var>10.4</var><br />
                  		
               </td>
               <td>Erin Murphy<br />
                  		
               </td>
               <td></td>
               <td>John Ward<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.10.5"></a><var>10.5</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.10.6"></a><var>10.6</var><br />
                  		
               </td>
               <td>Greg Davids<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.10.7"></a><var>10.7</var><br />
                  		
               </td>
               <td>Senate Conferees:<br />
                  		<span width="2em"></span></td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.10.8"></a><var>10.8</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.10.9"></a><var>10.9</var><br />
                  		
               </td>
               <td>Katie Sieben<br />
                  		
               </td>
               <td></td>
               <td>Vicki Jensen<br />
                  		
               </td>
            </tr>
            <tr>
               <td><a id="pl.10.10"></a><var>10.10</var><br />
                  		
               </td>
               <td><span>
                     							.....
                     						</span><br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
            <tr>
               <td><a id="pl.10.11"></a><var>10.11</var><br />
                  		
               </td>
               <td>Jeremy R. Miller<br />
                  		
               </td>
               <td></td>
               <td></td>
            </tr>
         </table>
      </div>