<a id="pl.1.3"></a><var>1.3</var>school district employees; appropriating money; amending Minnesota Statutes <br/>
<a id="pl.1.4"></a><var>1.4</var>2006, section 13.203; proposing coding for new law in Minnesota Statutes, <br/>
<a id="pl.1.5"></a><var>1.5</var>chapter 179A.<br/>
<a id="pl.1.6"></a><var>1.6</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.7"></a><var>1.7</var>    Section 1. Minnesota Statutes 2006, section 13.203, is amended to read:<br/>
<a id="pl.1.8"></a><var>1.8</var><b>13.203 SERVICE COOPERATIVE </b><b>AND SCHOOL EMPLOYEE </b><br/>
<a id="pl.1.9"></a><var>1.9</var><b>INSURANCE BOARD </b><b>CLAIMS DATA.</b><br/>
<a id="pl.1.10"></a><var>1.10</var>    (a) Claims experience and all related information received from carriers and claims <br/>
<a id="pl.1.11"></a><var>1.11</var>administrators participating in a group health or dental plan, including any long-term <br/>
<a id="pl.1.12"></a><var>1.12</var>disability plan, offered through the Minnesota service cooperatives to Minnesota school <br/>
<a id="pl.1.13"></a><var>1.13</var>districts and other political subdivisions or through the Minnesota School Employee <br/>
<a id="pl.1.14"></a><var>1.14</var>Insurance Pool created under section 179A.50, and survey information collected from <br/>
<a id="pl.1.15"></a><var>1.15</var>employees and employers participating in these plans and programs, except when the <br/>
<a id="pl.1.16"></a><var>1.16</var>executive director of a Minnesota service cooperative determines that release of the <br/>
<a id="pl.1.17"></a><var>1.17</var>data will not be detrimental to the plan or program, are classified as nonpublic data not <br/>
<a id="pl.1.18"></a><var>1.18</var>on individuals.<br/>
<a id="pl.1.19"></a><var>1.19</var>    (b) Data that are classified as nonpublic data under paragraph (a) may be disclosed <br/>
<a id="pl.1.20"></a><var>1.20</var>if the executive director of a Minnesota service cooperative or the Minnesota School <br/>
<a id="pl.1.21"></a><var>1.21</var>Employee Insurance Pool determines that release of the data will not be detrimental to <br/>
<a id="pl.1.22"></a><var>1.22</var>the plan or program.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.1.23"></a><var>1.23</var>    Sec. 2. <b>[179A.50] SCHOOL EMPLOYEE INSURANCE PLAN.</b><br/>
<a id="pl.2.1"></a><var>2.1</var>    Subdivision 1. <b>Definitions.</b> For purposes of this section:<br/>
<a id="pl.2.2"></a><var>2.2</var>    (1) "board" or "board of directors" means the board of directors of the Minnesota <br/>
<a id="pl.2.3"></a><var>2.3</var>School Employee Insurance Pool;<br/>
<a id="pl.2.4"></a><var>2.4</var>    (2) "eligible employee" means an individual who is insurance eligible under a <br/>
<a id="pl.2.5"></a><var>2.5</var>collective bargaining agreement or under the personnel policy of an eligible employer;<br/>
<a id="pl.2.6"></a><var>2.6</var>    (3) "eligible employer" means a school district as defined in section 
<statute_ref>120A.05</statute_ref>, a <br/>
<a id="pl.2.7"></a><var>2.7</var>service cooperative as defined in section 123A.21, an intermediate district as defined <br/>
<a id="pl.2.8"></a><var>2.8</var>in section 
<statute_ref>136D.01</statute_ref>, a cooperative center for vocational education as defined in section <br/>
<a id="pl.2.9"></a><var>2.9</var><statute_ref>123A.22</statute_ref>, a regional management information center as defined in section 
<statute_ref>123A.23</statute_ref>, an <br/>
<a id="pl.2.10"></a><var>2.10</var>education unit organized under section 
<statute_ref>471.59</statute_ref>, or a charter school organized under section <br/>
<a id="pl.2.11"></a><var>2.11</var>124D.10;<br/>
<a id="pl.2.12"></a><var>2.12</var>    (4) "health plan" means a health plan as defined in section 62A.011; and<br/>
<a id="pl.2.13"></a><var>2.13</var>    (5) "pool" or "Minnesota School Employee Insurance Pool" means the Minnesota <br/>
<a id="pl.2.14"></a><var>2.14</var>School Employee Insurance Pool, a public corporation.<br/>
<a id="pl.2.15"></a><var>2.15</var>    Subd. 2. <b>Creation of pool.</b> (a) The Minnesota School Employee Insurance Pool is <br/>
<a id="pl.2.16"></a><var>2.16</var>created as a public corporation that is governed by and subject to the provisions of chapter <br/>
<a id="pl.2.17"></a><var>2.17</var>317A, except as otherwise provided in this section. As provided in section 
<statute_ref>15.082</statute_ref>, the <br/>
<a id="pl.2.18"></a><var>2.18</var>state is not liable for obligations of this public corporation. <br/>
<a id="pl.2.19"></a><var>2.19</var>    (b) The pool shall create and administer the Minnesota School Employee Insurance <br/>
<a id="pl.2.20"></a><var>2.20</var>Plan as described in this section.<br/>
<a id="pl.2.21"></a><var>2.21</var>    (c) Insurance plans and offerings must be effective no later than July 1, 2010.<br/>
<a id="pl.2.22"></a><var>2.22</var>    Subd. 3. <b>Board of directors.</b> (a) The Minnesota School Employee Insurance Pool <br/>
<a id="pl.2.23"></a><var>2.23</var>shall be governed by a board of directors that consists of:<br/>
<a id="pl.2.24"></a><var>2.24</var>    (1) seven members representing statewide affiliates of exclusive representatives of <br/>
<a id="pl.2.25"></a><var>2.25</var>eligible employees, appointed by exclusive representatives, as provided in paragraph <br/>
<a id="pl.2.26"></a><var>2.26</var>(b); and <br/>
<a id="pl.2.27"></a><var>2.27</var>    (2) seven members representing eligible employers, appointed by the Minnesota <br/>
<a id="pl.2.28"></a><var>2.28</var>School Boards Association.<br/>
<a id="pl.2.29"></a><var>2.29</var>    (b) The seven members of the board who represent statewide affiliates of exclusive <br/>
<a id="pl.2.30"></a><var>2.30</var>representatives of eligible employees are appointed as follows: four members appointed <br/>
<a id="pl.2.31"></a><var>2.31</var>by Education Minnesota and one member each appointed by the Service Employees <br/>
<a id="pl.2.32"></a><var>2.32</var>International Union, the Minnesota School Employees Association, and the American <br/>
<a id="pl.2.33"></a><var>2.33</var>Federation of State, County, and Municipal Employees.<br/>
<a id="pl.2.34"></a><var>2.34</var>    (c) Appointing authorities must make their initial appointments no later than August <br/>
<a id="pl.2.35"></a><var>2.35</var>1, 2008, by filing a notice of the appointment with the executive director of the Legislative <br/>
<a id="pl.2.36"></a><var>2.36</var>Coordinating Commission. Notices of subsequent appointments must be filed with the <br/>
<a id="pl.3.1"></a><var>3.1</var>board. An entity entitled to appoint a board member may replace the board member at <br/>
<a id="pl.3.2"></a><var>3.2</var>any time.<br/>
<a id="pl.3.3"></a><var>3.3</var>    (d) Board members are eligible for compensation and expense reimbursement from <br/>
<a id="pl.3.4"></a><var>3.4</var>the pool under section 
<statute_ref>15.0575, subdivision 3</statute_ref>.<br/>
<a id="pl.3.5"></a><var>3.5</var>    (e) The board must arrange for one or more methods of dispute resolution so as <br/>
<a id="pl.3.6"></a><var>3.6</var>to minimize the likelihood of deadlocks.<br/>
<a id="pl.3.7"></a><var>3.7</var>    (f) The board shall establish governance requirements, which may include staggered <br/>
<a id="pl.3.8"></a><var>3.8</var>terms, term limits, quorum, a plan of operation, and audit provisions.<br/>
<a id="pl.3.9"></a><var>3.9</var>    Subd. 4. <b>Design and nature of plan.</b> (a) Health coverage offered through the <br/>
<a id="pl.3.10"></a><var>3.10</var>Minnesota School Employee Insurance Pool shall be made available by the pool to all <br/>
<a id="pl.3.11"></a><var>3.11</var>eligible employees of eligible employers, as defined in subdivision 1.<br/>
<a id="pl.3.12"></a><var>3.12</var>    (b) If an eligible employer provides health coverage or money to purchase health <br/>
<a id="pl.3.13"></a><var>3.13</var>coverage to eligible employees, the coverage must be provided or purchased only through <br/>
<a id="pl.3.14"></a><var>3.14</var>the health plans offered by the pool.<br/>
<a id="pl.3.15"></a><var>3.15</var>    (c) Nothing in this section affects the right of each eligible employer to determine, <br/>
<a id="pl.3.16"></a><var>3.16</var>through collective bargaining under the Public Employment Labor Relations Act:<br/>
<a id="pl.3.17"></a><var>3.17</var>    (1) the employer's eligibility requirements regarding the terms and conditions under <br/>
<a id="pl.3.18"></a><var>3.18</var>which employees, dependents, retirees, and other persons are eligible for health coverage <br/>
<a id="pl.3.19"></a><var>3.19</var>through the employer;<br/>
<a id="pl.3.20"></a><var>3.20</var>    (2) how much of the premium charged for the health coverage will be paid by the <br/>
<a id="pl.3.21"></a><var>3.21</var>employer and how much will be paid by the eligible person; and <br/>
<a id="pl.3.22"></a><var>3.22</var>    (3) which health plans offered by the pool will be made available by the eligible <br/>
<a id="pl.3.23"></a><var>3.23</var>employer.<br/>
<a id="pl.3.24"></a><var>3.24</var>    (d) The pool must initially offer at least six health plans. One plan must provide <br/>
<a id="pl.3.25"></a><var>3.25</var>coverage without a deductible and without other enrollee cost-sharing other than <br/>
<a id="pl.3.26"></a><var>3.26</var>reasonable co-payments for nonpreventive care. One plan must be a high-deductible <br/>
<a id="pl.3.27"></a><var>3.27</var>health plan that qualifies under federal law for use with a health savings account. The <br/>
<a id="pl.3.28"></a><var>3.28</var>other four plans must have levels of enrollee cost-sharing that are between the two plans <br/>
<a id="pl.3.29"></a><var>3.29</var>just described. The pool may establish more than one tier of premium rates for any <br/>
<a id="pl.3.30"></a><var>3.30</var>specific plan. Plans and premium rates may vary across geographic regions established by <br/>
<a id="pl.3.31"></a><var>3.31</var>the pool. Any health plan purchased through the pool must comply with all applicable <br/>
<a id="pl.3.32"></a><var>3.32</var>insurance laws, and must provide the optimal combination of coverage, cost, choice, and <br/>
<a id="pl.3.33"></a><var>3.33</var>stability in the judgment of the pool. The pool shall investigate the feasibility of offering <br/>
<a id="pl.3.34"></a><var>3.34</var>coverage through more than one health plan company.<br/>
<a id="pl.3.35"></a><var>3.35</var>    (e) The pool must offer only health plans that are fully insured through a health <br/>
<a id="pl.3.36"></a><var>3.36</var>carrier, as defined in section 62A.011, subdivision 2, licensed in this state.<br/>
<a id="pl.4.1"></a><var>4.1</var>    (f) Any health plan offered through the pool must include disease management and <br/>
<a id="pl.4.2"></a><var>4.2</var>consumer education, including wellness programs and measures encouraging the wise use <br/>
<a id="pl.4.3"></a><var>4.3</var>of health coverage, to the extent determined to be appropriate by the pool.<br/>
<a id="pl.4.4"></a><var>4.4</var>    (g) Upon request by the pool, entities that are providing or have provided coverage <br/>
<a id="pl.4.5"></a><var>4.5</var>to employees of eligible employers within two years before the effective date of this <br/>
<a id="pl.4.6"></a><var>4.6</var>section, shall provide to the pool at no charge nonidentifiable aggregate claims data for <br/>
<a id="pl.4.7"></a><var>4.7</var>that coverage. The information must include data relating to employee group benefit sets, <br/>
<a id="pl.4.8"></a><var>4.8</var>demographics, and claims experience. Notwithstanding section 13.203, Minnesota service <br/>
<a id="pl.4.9"></a><var>4.9</var>cooperatives must also comply with this paragraph.<br/>
<a id="pl.4.10"></a><var>4.10</var>    (h) Effective July 1, 2010, a contract entered into between an eligible employer and <br/>
<a id="pl.4.11"></a><var>4.11</var>an eligible employee or the exclusive representative of an eligible employee may not <br/>
<a id="pl.4.12"></a><var>4.12</var>contain provisions that establish cash payment in lieu of health coverage to an eligible <br/>
<a id="pl.4.13"></a><var>4.13</var>employee, unless the employee has been receiving a cash-in-lieu payment on or before <br/>
<a id="pl.4.14"></a><var>4.14</var>June 30, 2010. Nothing in this section prevents an eligible employee who otherwise <br/>
<a id="pl.4.15"></a><var>4.15</var>qualifies for payment of cash in lieu of insurance on June 30, 2009, from continuing <br/>
<a id="pl.4.16"></a><var>4.16</var>to receive the payment.<br/>
<a id="pl.4.17"></a><var>4.17</var>    (i) All premiums paid for health coverage provided through the pool must be used <br/>
<a id="pl.4.18"></a><var>4.18</var>by the pool solely for premiums for health plan coverage provided through the pool, the <br/>
<a id="pl.4.19"></a><var>4.19</var>cost of operation of the pool, and the benefit of eligible employees and eligible employers <br/>
<a id="pl.4.20"></a><var>4.20</var>in connection with the health coverage offered through the pool.<br/>
<a id="pl.4.21"></a><var>4.21</var>    (j) The pool and the commissioner of finance may enter into an agreement whereby <br/>
<a id="pl.4.22"></a><var>4.22</var>the pool's health plans would be based upon the plan offered by the commissioner under <br/>
<a id="pl.4.23"></a><var>4.23</var>section 43A.316 or section 
<statute_ref>43A.23</statute_ref>, included within its contracts, or administered by the <br/>
<a id="pl.4.24"></a><var>4.24</var>commissioner. If an agreement is entered into, persons covered through the pool must be <br/>
<a id="pl.4.25"></a><var>4.25</var>rated separately for premium purposes from other persons covered under section 43A.316 <br/>
<a id="pl.4.26"></a><var>4.26</var>or section 
<statute_ref>43A.23</statute_ref>. The agreement may contain provisions that vary from those of <br/>
<a id="pl.4.27"></a><var>4.27</var>paragraph (d) to conform to the terms of the plan under section 43A.316 or section 
<statute_ref>43A.23</statute_ref>. <br/>
<a id="pl.4.28"></a><var>4.28</var>An agreement under this paragraph must not result in the pool becoming self-insured.<br/>
<a id="pl.4.29"></a><var>4.29</var>    Subd. 5. <b>Report.</b> The pool shall submit a written report to the legislature by January <br/>
<a id="pl.4.30"></a><var>4.30</var>15, 2010, in compliance with sections 3.195 and 3.197, on a final design for the pool that <br/>
<a id="pl.4.31"></a><var>4.31</var>complies with subdivision 4 and on governance requirements for the board, which may <br/>
<a id="pl.4.32"></a><var>4.32</var>include staggered terms, term limits, quorum, a plan of operation, and audit provisions. <br/>
<a id="pl.4.33"></a><var>4.33</var>The report must include any legislative changes necessary to ensure conformance with <br/>
<a id="pl.4.34"></a><var>4.34</var>all applicable insurance and other laws.<br/>
<a id="pl.4.35"></a><var>4.35</var>    Subd. 6. <b>Periodic evaluation.</b> (a) Beginning December 15, 2010, and for the next <br/>
<a id="pl.4.36"></a><var>4.36</var>two years, the pool must submit an annual written report to the legislature, in compliance <br/>
<a id="pl.5.1"></a><var>5.1</var>with sections 
<statute_ref>3.195</statute_ref> and 
<statute_ref>3.197</statute_ref>, summarizing and evaluating the performance of the pool <br/>
<a id="pl.5.2"></a><var>5.2</var>during the previous fiscal year of operation.<br/>
<a id="pl.5.3"></a><var>5.3</var>    (b) Beginning in 2013 and in each odd-numbered year thereafter, the pool must <br/>
<a id="pl.5.4"></a><var>5.4</var>submit to the legislature a biennial written report summarizing and evaluating the <br/>
<a id="pl.5.5"></a><var>5.5</var>performance of the pool during the preceding two fiscal years.<br/>
<a id="pl.5.6"></a><var>5.6</var>    Subd. 7. <b>Applicability of data practices laws.</b> The pool and its board are <br/>
<a id="pl.5.7"></a><var>5.7</var>government entities that are subject to chapter 13.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.5.8"></a><var>5.8</var>    Sec. 3. <b>INITIAL MEETING; MINNESOTA SCHOOL EMPLOYEE </b><br/>
<a id="pl.5.9"></a><var>5.9</var><b>INSURANCE POOL.</b><br/>
<a id="pl.5.10"></a><var>5.10</var>    The executive director of the Legislative Coordinating Commission, or the executive <br/>
<a id="pl.5.11"></a><var>5.11</var>director's designee, shall convene the first meeting of the board of directors of the <br/>
<a id="pl.5.12"></a><var>5.12</var>Minnesota School Employee Insurance Pool no later than 30 days after all board members <br/>
<a id="pl.5.13"></a><var>5.13</var>have been appointed. The board shall elect a chair or cochairs from among its members <br/>
<a id="pl.5.14"></a><var>5.14</var>at its first meeting.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.5.15"></a><var>5.15</var>    Sec. 4. <b>APPROPRIATION.</b><br/>
<a id="pl.5.16"></a><var>5.16</var>    $4,000,000 is appropriated for fiscal year 2009 from the general fund to the <br/>
<a id="pl.5.17"></a><var>5.17</var>commissioner of finance to be disbursed as a loan for start-up costs to the Minnesota <br/>
<a id="pl.5.18"></a><var>5.18</var>School Employee Insurance Pool. The pool must repay the loan to the general fund in ten <br/>
<a id="pl.5.19"></a><var>5.19</var>equal installments paid at the end of each fiscal year, beginning with the 2011 fiscal year. <br/>
<a id="pl.5.20"></a><var>5.20</var>On July 1, 2008, the commissioner of finance shall cancel $4,000,000 of the balance in the <br/>
<a id="pl.5.21"></a><var>5.21</var>budget reserve account in Minnesota Statutes, section 16A.152, to the general fund.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.5.22"></a><var>5.22</var>    Sec. 5. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.5.23"></a><var>5.23</var>    This act is effective July 1, 2008.<br/>