1.1 	A bill for an act
1.2 	relating to local government; permitting a group
1.3 	health insurance arrangement of local governments to
1.4 	provide the same coverage to each participating
1.5 	governmental unit; amending Laws 1985, chapter 85,
1.6 	section 1.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. Laws 1985, chapter 85, section 1, is amended to
1.9 	read:

1.10 	Section 1. Certain counties; joint agreements for
1.11 	insurance coverage.
1.12 	(a) The counties of Aitkin, Itasca, Koochiching and St.
1.13 	Louis, and political subdivisions located in those counties,
1.14 	except the city of Duluth, when two or more of them are acting
1.15 	jointly under Minnesota Statutes, section 471.61, subdivision 1,
1.16 	or section 471.59 for purposes of section 471.61, may act
1.17 	jointly for the same purposes with any nonprofit organization
1.18 	organized under the laws of Minnesota and which is exempt from
1.19 	taxation pursuant to section 501(c)(3) of the Internal Revenue
1.20 	Code 1954, as amended through December 31, 1984.
1.21 	(b) Notwithstanding Minnesota Statutes, sections 62L.03;
1.22 	62L.04; 62L.045; or any other provision of Minnesota Statutes,
1.23 	chapter 62L, an arrangement described in paragraph (a) may
1.24 	provide the same health coverage under the same plan and premium
1.25 	rates to its member employers that have 50 or fewer employees
1.26 	that the arrangement provides to its member employers that have
2.1 	more than 50 employees.  The insurer offering the plan need not
2.2 	offer this same plan to small employers that are not member
2.3 	employers in the arrangement described in paragraph (a).
2.4 	(c) Paragraph (b) is a pilot project that expires at the
2.5 	end of its third full plan year after its date of enactment.
2.6 	After the second full plan year, the entity operating an
2.7 	arrangement described in paragraph (a) shall provide a written
2.8 	report to the commissioner of commerce summarizing the
2.9 	advantages and disadvantages of the pilot project and
2.10 	recommending whether to make it permanent.

2.11 	Sec. 2 EFFECTIVE DATE.
 2.12 	Pursuant to Minnesota Statutes, section 645.023,
2.13 	subdivision 1, clause (a), local approval of this act is not
2.14 	required.  This act is effective the day following final
2.15 	enactment.