1.1                          A bill for an act 
  1.2             relating to education; establishing a committee to 
  1.3             gather information and make recommendations for the 
  1.4             design of a school employee health insurance plan; 
  1.5             authorizing raffles to support school district 
  1.6             programs; appropriating money; amending Minnesota 
  1.7             Statutes 2000, section 609.761, by adding a 
  1.8             subdivision; proposing coding for new law in Minnesota 
  1.9             Statutes, chapter 62A. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  [62A.661] [SCHOOL EMPLOYEE INSURANCE PLAN.] 
  1.12     Subdivision 1.  [DEFINITIONS.] For purposes of this section:
  1.13     (1) "eligible employee" means a person who is insurance 
  1.14  eligible and is employed by an eligible employer or is insurance 
  1.15  eligible through an eligible employer on some other basis; and 
  1.16     (2) "eligible employer" means a school district as defined 
  1.17  in section 120A.05; a service cooperative as defined in section 
  1.18  123A.21; an intermediate district as defined in section 136D.01; 
  1.19  a cooperative center for vocational education as defined in 
  1.20  section 123A.22; a regional management information center as 
  1.21  defined in section 123A.23; an education unit organized under 
  1.22  section 471.59; a charter school organized under section 
  1.23  124D.10; or an exclusive representative of employees of an 
  1.24  eligible employer or statewide affiliate. 
  1.25     Subd. 2.  [STUDY AND DESIGN COMMITTEE.] (a) The school 
  1.26  employee insurance plan study and design committee consists of: 
  1.27     (1) seven members representing exclusive representatives of 
  2.1   eligible employees, appointed by exclusive representatives, as 
  2.2   provided in paragraph (b); and 
  2.3      (2) seven members representing eligible employers, 
  2.4   appointed by the Minnesota school boards association. 
  2.5      (b) The seven members of the committee who represent 
  2.6   statewide affiliates of exclusive representatives of eligible 
  2.7   employees are appointed as follows:  four members appointed by 
  2.8   Education Minnesota and one member each appointed by the Service 
  2.9   Employees International Union, the Minnesota State Employees 
  2.10  Association, and American Federation of State, County, and 
  2.11  Municipal Employees. 
  2.12     (c) Appointing authorities must make their appointments no 
  2.13  later than 30 days after the effective date of this section. 
  2.14     (d) Committee members are eligible for compensation and 
  2.15  expense reimbursement under section 15.0575, subdivision 3. 
  2.16     Subd. 3.  [COLLECTION OF INFORMATION.] The committee 
  2.17  established under subdivision 2 must collect and analyze 
  2.18  information from health plans currently providing health 
  2.19  coverage to eligible employers, whether the health plan is 
  2.20  insured or self-insured.  Health plans providing coverage to 
  2.21  employees of eligible employers on the effective date of this 
  2.22  section must provide to the committee nonidentifiable aggregate 
  2.23  data to the extent permitted under applicable state and federal 
  2.24  law.  The information must include data relating to employee 
  2.25  group demographics and claims experience.  Nothing in this 
  2.26  section requires disclosure of proprietary information or data 
  2.27  classified as nonpublic data or confidential data on individuals.
  2.28     Subd. 4.  [DESCRIPTION OF STUDY.] The committee established 
  2.29  under subdivision 2 must study the feasibility and desirability 
  2.30  of a school employee health insurance plan for eligible 
  2.31  employees of eligible employers.  The study must address the 
  2.32  issues of costs, coverage provided, financial feasibility and 
  2.33  solvency, and management.  The study must compare: 
  2.34     (1) purchase of fully insured coverage through a pooling 
  2.35  arrangement; 
  2.36     (2) use of a multiple employer welfare arrangement under 
  3.1   chapter 62H; and 
  3.2      (3) coverage otherwise available to school districts 
  3.3   through existing sources. 
  3.4   The study must consider health insurance pools of various sizes, 
  3.5   including a pool that would include all eligible employers as 
  3.6   one option.  The study must consider the desirability and 
  3.7   effects of the pool on eligible employers of various sizes, 
  3.8   financial resources, and geographic locations within the state.  
  3.9   The study may consider the inclusion of nonpublic schools in the 
  3.10  pool, including any limitations on plan design and effects on 
  3.11  regulation and costs resulting from the inclusion of nonpublic 
  3.12  employees.  
  3.13     Subd. 5.  [PLAN DESIGN.] Using the information collected 
  3.14  and analyzed under subdivisions 3 and 4, the committee shall 
  3.15  recommend specifications for a health insurance plan to serve 
  3.16  eligible employees, including the plan's structure, benefits, 
  3.17  approximate premiums, governance, operations, solvency, and 
  3.18  oversight.  Any recommended plan must incorporate, as a key 
  3.19  component, consumer education, including wellness programs and 
  3.20  measures encouraging the wise use of health coverage, with the 
  3.21  goal of premium reduction and cost containment.  The 
  3.22  recommendation must include the projected costs to implement the 
  3.23  plan. 
  3.24     Subd. 6.  [WORK SCHEDULE.] By June 1, 2003, the committee 
  3.25  must complete the collection and analysis of information under 
  3.26  subdivisions 3 and 4 and submit an interim written report to the 
  3.27  legislature.  By January 15, 2004, the committee must complete 
  3.28  its preparation of a plan design under subdivision 5 and submit 
  3.29  its final written report to the legislature, including a 
  3.30  detailed plan design.  If the final report recommends 
  3.31  legislation, the report must include a draft of the 
  3.32  legislation.  Both reports must be submitted in compliance with 
  3.33  sections 3.195, subdivision 1, and 3.197. 
  3.34     Subd. 7.  [ASSISTANCE TO THE COMMITTEE.] (a) The committee, 
  3.35  or the commissioner of commerce on its behalf, may contract for 
  3.36  actuarial, legal, and other services necessary to carry out its 
  4.1   duties. 
  4.2      (b) The commissioner of commerce, as requested by the 
  4.3   committee and in consultation with the commissioner of employee 
  4.4   relations, shall provide staff assistance to the committee, 
  4.5   including facilitating meetings; research and writing; data 
  4.6   collection; providing or contracting for actuarial, legal, and 
  4.7   other services; and other staff assistance as appropriate. 
  4.8      (c) Laws 2002, chapter 220, article 10, sections 37 and 38, 
  4.9   do not apply to any contracts or hiring necessary to implement 
  4.10  this section. 
  4.11     Subd. 8.  [EXPIRATION.] (a) The committee expires upon 
  4.12  adjournment sine die of the 2004 regular legislative session. 
  4.13     (b) This section expires July 1, 2004. 
  4.14     Sec. 2.  Minnesota Statutes 2000, section 609.761, is 
  4.15  amended by adding a subdivision to read: 
  4.16     Subd. 5.  [HIGH SCHOOL RAFFLES.] Sections 609.755 and 
  4.17  609.76 do not prohibit a raffle, as defined in section 349.12, 
  4.18  subdivision 33, conducted by a school district or a nonprofit 
  4.19  organization organized primarily to support programs of a school 
  4.20  district, if the following conditions are complied with: 
  4.21     (1) tickets for the raffle may only be sold and the drawing 
  4.22  conducted at a high school event sponsored by a school district; 
  4.23     (2) tickets may only be sold to persons attending the 
  4.24  event; 
  4.25     (3) the drawing must be held during or immediately after 
  4.26  the conclusion of the event; and 
  4.27     (4) one-half of the gross receipts from the sale of tickets 
  4.28  must be awarded as prizes for the raffle, and the remaining 
  4.29  one-half may only be expended to defray the school district's 
  4.30  costs of sending event participants to high school activities 
  4.31  held at other locations. 
  4.32     Sec. 3.  [APPROPRIATION.] 
  4.33     $670,000 is appropriated in fiscal year 2003 from the 
  4.34  general fund to the commissioner of commerce for purposes of 
  4.35  section 1.  The base for this program is $670,000 for fiscal 
  4.36  year 2004 only. 
  5.1      Sec. 4.  [EFFECTIVE DATE.] 
  5.2      Sections 1 to 3 are effective the day following final 
  5.3   enactment.