<a id="pl.1.3"></a><var>1.3</var>district employees;amending Minnesota Statutes 2012, sections 43A.316, <br/>
<a id="pl.1.4"></a><var>1.4</var>subdivision 10, by adding a subdivision; 123A.21, subdivisions 5, 6; 123B.09, <br/>
<a id="pl.1.5"></a><var>1.5</var>subdivision 12; 123B.75, by adding a subdivision; 471.6161, subdivisions 1, 2, <br/>
<a id="pl.1.6"></a><var>1.6</var>3, by adding a subdivision; 471.895, subdivision 1; Minnesota Statutes 2013 <br/>
<a id="pl.1.7"></a><var>1.7</var>Supplement, section 124D.10, subdivisions 4a, 11, 21.<br/>
<a id="pl.1.8"></a><var>1.8</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.9"></a><var>1.9</var>    Section 1. Minnesota Statutes 2012, section 43A.316, subdivision 10, is amended to <br/>
<a id="pl.1.10"></a><var>1.10</var>read:<br/>
<a id="pl.1.11"></a><var>1.11</var>    Subd. 10. <b>Exemption.</b> The public employee insurance program and, where <br/>
<a id="pl.1.12"></a><var>1.12</var>applicable, the employers participating in it are exempt from chapters 60A, 62A, 62C, <br/>
<a id="pl.1.13"></a><var>1.13</var>62D, 62E, and 62H, section 
         <statute_ref>471.617</statute_ref>, subdivisions 2 and 3, and the bidding requirements <br/>
<a id="pl.1.14"></a><var>1.14</var>of section 
<statute_ref>471.6161</statute_ref>.<br/>
<br/>
<a id="bill.0.2.0"></a><a id="pl.1.15"></a><var>1.15</var>    Sec. 2. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision <br/>
<a id="pl.1.16"></a><var>1.16</var>to read:<br/>
<a id="pl.1.17"></a><var>1.17</var>    Subd. 11. <b>Proposal from school district; response required.</b> Upon receipt of a <br/>
<a id="pl.1.18"></a><var>1.18</var>request for a proposal from a school district pursuant to section 471.6161, subdivision 8, <br/>
<a id="pl.1.19"></a><var>1.19</var>the public employees insurance program shall respond to such request within 60 days.<br/>
<br/>
<a id="bill.0.3.0"></a><a id="pl.1.20"></a><var>1.20</var>    Sec. 3. Minnesota Statutes 2012, section 123A.21, subdivision 5, is amended to read:<br/>
<a id="pl.1.21"></a><var>1.21</var>    Subd. 5. <b>Duties and powers of SC board of directors.</b> The board of directors shall <br/>
<a id="pl.1.22"></a><var>1.22</var>have authority to maintain and operate a SC. Subject to the availability of necessary <br/>
<a id="pl.1.23"></a><var>1.23</var>resources, the powers and duties of this board shall include the following:<br/>
<a id="pl.2.1"></a><var>2.1</var>(a) The board of directors shall submit, by June 1 of each year to each participating <br/>
<a id="pl.2.2"></a><var>2.2</var>member, an annual plan which describes the objectives and procedures to be implemented <br/>
<a id="pl.2.3"></a><var>2.3</var>in assisting in resolution of the needs of the SC.<br/>
<a id="pl.2.4"></a><var>2.4</var>(b) The SC board of directors shall provide adequate office, service center, and <br/>
<a id="pl.2.5"></a><var>2.5</var>administrative facilities by lease, purchase, gift, or otherwise.<br/>
<a id="pl.2.6"></a><var>2.6</var>(c) The SC board of directors shall employ a central administrative staff and other <br/>
<a id="pl.2.7"></a><var>2.7</var>personnel as necessary to provide and support the agreed-upon programs and services. <br/>
<a id="pl.2.8"></a><var>2.8</var>The board may discharge staff and personnel pursuant to applicable provisions of law. <br/>
<a id="pl.2.9"></a><var>2.9</var>SC staff and personnel may participate in retirement programs and any other programs <br/>
<a id="pl.2.10"></a><var>2.10</var>available to public school staff and personnel.<br/>
<a id="pl.2.11"></a><var>2.11</var>(d) The SC board of directors may appoint special advisory committees composed <br/>
<a id="pl.2.12"></a><var>2.12</var>of superintendents, central office personnel, building principals, teachers, parents, lay <br/>
<a id="pl.2.13"></a><var>2.13</var>persons, and representatives from cities, counties, and other governmental units. The <br/>
<a id="pl.2.14"></a><var>2.14</var>committees are considered a committee of a public body for purposes of section 13D.01, <br/>
<a id="pl.2.15"></a><var>2.15</var>subdivision 1, paragraph (c), when addressing issues related to health insurance.<br/>
<a id="pl.2.16"></a><var>2.16</var>(e) The SC board of directors may employ service area personnel pursuant to <br/>
<a id="pl.2.17"></a><var>2.17</var>licensure and certification standards developed by the appropriate state agency such as the <br/>
<a id="pl.2.18"></a><var>2.18</var>commissioner and the State Board of Teaching.<br/>
<a id="pl.2.19"></a><var>2.19</var>(f) The SC board of directors may enter into contracts with school boards of local <br/>
<a id="pl.2.20"></a><var>2.20</var>districts including school districts outside the SC area.<br/>
<a id="pl.2.21"></a><var>2.21</var>(g) The SC board of directors may enter into contracts with other public and private <br/>
<a id="pl.2.22"></a><var>2.22</var>agencies and institutions to provide administrative staff and other personnel as necessary <br/>
<a id="pl.2.23"></a><var>2.23</var>to furnish and support the agreed-upon programs and services.<br/>
<a id="pl.2.24"></a><var>2.24</var>(h) The SC board of directors shall exercise all powers and carry out all duties <br/>
<a id="pl.2.25"></a><var>2.25</var>delegated to it by members under provisions of the SC bylaws. The SC board of directors <br/>
<a id="pl.2.26"></a><var>2.26</var>shall be governed, when not otherwise provided, by applicable laws of the state.<br/>
<a id="pl.2.27"></a><var>2.27</var>(i) The SC board of directors shall submit an annual evaluation report of the <br/>
<a id="pl.2.28"></a><var>2.28</var>effectiveness of programs and services to the members by September 1 of each year <br/>
<a id="pl.2.29"></a><var>2.29</var>following the previous June 30 in which the programs and services were provided.<br/>
<a id="pl.2.30"></a><var>2.30</var>(j) The SC board is encouraged to establish cooperative, working relationships and <br/>
<a id="pl.2.31"></a><var>2.31</var>partnerships with postsecondary educational institutions, other public agencies, business, <br/>
<a id="pl.2.32"></a><var>2.32</var>and industry.<br/>
<br/>
<a id="bill.0.4.0"></a><a id="pl.2.33"></a><var>2.33</var>    Sec. 4. Minnesota Statutes 2012, section 123A.21, subdivision 6, is amended to read:<br/>
<a id="pl.2.34"></a><var>2.34</var>    Subd. 6. <b>Appointment of advisory council.</b> There may be advisory councils <br/>
<a id="pl.2.35"></a><var>2.35</var>selected to give advice and counsel to the SC board of directors. The councils may be <br/>
<a id="pl.3.1"></a><var>3.1</var>composed of representatives from public and nonpublic schools, cities, counties, and other <br/>
<a id="pl.3.2"></a><var>3.2</var>governmental units. The advisory councils are considered to be a committee of a public <br/>
<a id="pl.3.3"></a><var>3.3</var>body for purposes of section 13D.01, subdivision 1, paragraph (c), when addressing <br/>
<a id="pl.3.4"></a><var>3.4</var>issues related to health insurance.<br/>
<br/>
<a id="bill.0.5.0"></a><a id="pl.3.5"></a><var>3.5</var>    Sec. 5. Minnesota Statutes 2012, section 123B.09, subdivision 12, is amended to read:<br/>
<a id="pl.3.6"></a><var>3.6</var>    Subd. 12. <b>Board to fix compensation.</b> The clerk, treasurer, and superintendent <br/>
<a id="pl.3.7"></a><var>3.7</var>of any district shall receive such compensation as may be fixed by the board. Unless <br/>
<a id="pl.3.8"></a><var>3.8</var>otherwise provided by law, the other members of the board shall also receive such <br/>
<a id="pl.3.9"></a><var>3.9</var>compensation as may be fixed by the board. All members of the board may receive <br/>
<a id="pl.3.10"></a><var>3.10</var>reimbursement for transportation at the rate provided for in section 
         <statute_ref>471.665</statute_ref>. No board <br/>
<a id="pl.3.11"></a><var>3.11</var>member or school district employee shall receive any compensation or benefits based on <br/>
<a id="pl.3.12"></a><var>3.12</var>incentives or other money provided to the school district by or from a source of group <br/>
<a id="pl.3.13"></a><var>3.13</var>insurance coverage referenced in section 471.6161, subdivision 1, except for a refund <br/>
<a id="pl.3.14"></a><var>3.14</var>provided under section 123B.75 or a wellness plan that is mutually agreed upon by the <br/>
<a id="pl.3.15"></a><var>3.15</var>district and the exclusive representatives of employees.<br/>
<br/>
<a id="bill.0.6.0"></a><a id="pl.3.16"></a><var>3.16</var>    Sec. 6. Minnesota Statutes 2012, section 123B.75, is amended by adding a subdivision <br/>
<a id="pl.3.17"></a><var>3.17</var>to read:<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 10. <b>Insurance premium refund.</b> (a) If money collected by an entity <br/>
<a id="pl.3.19"></a><var>3.19</var>providing group insurance under section 471.6161, subdivision 1, for the payment of <br/>
<a id="pl.3.20"></a><var>3.20</var>insurance premiums are above the cost of that coverage and returned to the school district <br/>
<a id="pl.3.21"></a><var>3.21</var>purchasing that coverage as a refund, that school district must negotiate with the exclusive <br/>
<a id="pl.3.22"></a><var>3.22</var>representative regarding the refund amount attributable to the proportionate number of <br/>
<a id="pl.3.23"></a><var>3.23</var>insured lives covered by that exclusive representative.<br/>
<a id="pl.3.24"></a><var>3.24</var>(b) If there is no exclusive representative or if the employer and the exclusive <br/>
<a id="pl.3.25"></a><var>3.25</var>representative are unable to come to an agreement within 150 days, the remaining refunds <br/>
<a id="pl.3.26"></a><var>3.26</var>shall be used to pay the full premium to the program for any employees not covered by <br/>
<a id="pl.3.27"></a><var>3.27</var>an agreement negotiated under this section until the proportionate refunds are depleted. <br/>
<a id="pl.3.28"></a><var>3.28</var>These refunds shall be used for a proportional premium payment at the time it is necessary <br/>
<a id="pl.3.29"></a><var>3.29</var>to deplete the balance.<br/>
<br/>
<a id="bill.0.7.0"></a><a id="pl.3.30"></a><var>3.30</var>    Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 4a, is <br/>
<a id="pl.3.31"></a><var>3.31</var>amended to read:<br/>
<a id="pl.3.32"></a><var>3.32</var>    Subd. 4a. <b>Conflict of interest.</b> (a) An individual is prohibited from serving as a <br/>
<a id="pl.3.33"></a><var>3.33</var>member of the charter school board of directors if the individual, an immediate family <br/>
<a id="pl.4.1"></a><var>4.1</var>member, or the individual's partner is a full or part owner or principal with a for-profit or <br/>
<a id="pl.4.2"></a><var>4.2</var>nonprofit entity or independent contractor with whom the charter school contracts, directly <br/>
<a id="pl.4.3"></a><var>4.3</var>or indirectly, for professional services, goods, or facilities. An individual is prohibited <br/>
<a id="pl.4.4"></a><var>4.4</var>from serving as a board member if an immediate family member is an employee of the <br/>
<a id="pl.4.5"></a><var>4.5</var>school. A violation of this prohibition renders a contract voidable at the option of the <br/>
<a id="pl.4.6"></a><var>4.6</var>commissioner or the charter school board of directors. A member of a charter school <br/>
<a id="pl.4.7"></a><var>4.7</var>board of directors who violates this prohibition is individually liable to the charter school <br/>
<a id="pl.4.8"></a><var>4.8</var>for any damage caused by the violation.<br/>
<a id="pl.4.9"></a><var>4.9</var>    (b) No member of the board of directors, employee, officer, or agent of a charter <br/>
<a id="pl.4.10"></a><var>4.10</var>school shall participate in selecting, awarding, or administering a contract if a conflict <br/>
<a id="pl.4.11"></a><var>4.11</var>of interest exists. A conflict exists when:<br/>
<a id="pl.4.12"></a><var>4.12</var>    (1) the board member, employee, officer, or agent;<br/>
<a id="pl.4.13"></a><var>4.13</var>    (2) the immediate family of the board member, employee, officer, or agent;<br/>
<a id="pl.4.14"></a><var>4.14</var>    (3) the partner of the board member, employee, officer, or agent; or<br/>
<a id="pl.4.15"></a><var>4.15</var>    (4) an organization that employs, or is about to employ any individual in clauses <br/>
<a id="pl.4.16"></a><var>4.16</var>(1) to (3),<br/>
<a id="pl.4.17"></a><var>4.17</var>has a financial or other interest in the entity with which the charter school is contracting. <br/>
<a id="pl.4.18"></a><var>4.18</var>A violation of this prohibition renders the contract void.<br/>
<a id="pl.4.19"></a><var>4.19</var>    (c) Any employee, agent, or board member of the authorizer who participates <br/>
<a id="pl.4.20"></a><var>4.20</var>in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or <br/>
<a id="pl.4.21"></a><var>4.21</var>nonrenewal process or decision is ineligible to serve on the board of directors of a school <br/>
<a id="pl.4.22"></a><var>4.22</var>chartered by that authorizer.<br/>
<a id="pl.4.23"></a><var>4.23</var>    (d) An individual may serve as a member of the board of directors if no conflict of <br/>
<a id="pl.4.24"></a><var>4.24</var>interest under paragraph (a) exists.<br/>
<a id="pl.4.25"></a><var>4.25</var>    (e) The conflict of interest provisions under this subdivision do not apply to <br/>
<a id="pl.4.26"></a><var>4.26</var>compensation paid to a teacher employed as a teacher by the charter school or a teacher <br/>
<a id="pl.4.27"></a><var>4.27</var>who provides instructional services to the charter school through a cooperative formed <br/>
<a id="pl.4.28"></a><var>4.28</var>under chapter 308A when the teacher also serves on the charter school board of directors.<br/>
<a id="pl.4.29"></a><var>4.29</var>(f) A charter school board member, employee, or officer must not accept gifts as <br/>
<a id="pl.4.30"></a><var>4.30</var>defined under section 10A.071, subdivision 1, paragraph (b), and must not request another <br/>
<a id="pl.4.31"></a><var>4.31</var>person to give a gift to a board member, employee, or officer. A board member, employee, <br/>
<a id="pl.4.32"></a><var>4.32</var>or officer must not receive compensation from a group health insurance provider.<br/>
<br/>
<a id="bill.0.8.0"></a><a id="pl.4.33"></a><var>4.33</var>    Sec. 8. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 11, is <br/>
<a id="pl.4.34"></a><var>4.34</var>amended to read:<br/>
<a id="pl.5.1"></a><var>5.1</var>    Subd. 11. <b>Employment and other operating matters.</b> (a) A charter school must <br/>
<a id="pl.5.2"></a><var>5.2</var>employ or contract with necessary teachers, as defined by section 
         <statute_ref>122A.15, subdivision 1</statute_ref>, <br/>
<a id="pl.5.3"></a><var>5.3</var>who hold valid licenses to perform the particular service for which they are employed in <br/>
<a id="pl.5.4"></a><var>5.4</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.5.5"></a><var>5.5</var>school employs a teacher who is not appropriately licensed or approved by the board of <br/>
<a id="pl.5.6"></a><var>5.6</var>teaching. The school may employ necessary employees who are not required to hold <br/>
<a id="pl.5.7"></a><var>5.7</var>teaching licenses to perform duties other than teaching and may contract for other services. <br/>
<a id="pl.5.8"></a><var>5.8</var>The school may discharge teachers and nonlicensed employees. The charter school board <br/>
<a id="pl.5.9"></a><var>5.9</var>is subject to section 
         <statute_ref>181.932</statute_ref>. When offering employment to a prospective employee, a <br/>
<a id="pl.5.10"></a><var>5.10</var>charter school must give that employee a written description of the terms and conditions <br/>
<a id="pl.5.11"></a><var>5.11</var>of employment and the school's personnel policies.<br/>
<a id="pl.5.12"></a><var>5.12</var>    (b) A person, without holding a valid administrator's license, may perform <br/>
<a id="pl.5.13"></a><var>5.13</var>administrative, supervisory, or instructional leadership duties. The board of directors shall <br/>
<a id="pl.5.14"></a><var>5.14</var>establish qualifications for persons that hold administrative, supervisory, or instructional <br/>
<a id="pl.5.15"></a><var>5.15</var>leadership roles. The qualifications shall include at least the following areas: instruction <br/>
<a id="pl.5.16"></a><var>5.16</var>and assessment; human resource and personnel management; financial management; <br/>
<a id="pl.5.17"></a><var>5.17</var>legal and compliance management; effective communication; and board, authorizer, and <br/>
<a id="pl.5.18"></a><var>5.18</var>community relationships. The board of directors shall use those qualifications as the basis <br/>
<a id="pl.5.19"></a><var>5.19</var>for job descriptions, hiring, and performance evaluations of those who hold administrative, <br/>
<a id="pl.5.20"></a><var>5.20</var>supervisory, or instructional leadership roles. The board of directors and an individual <br/>
<a id="pl.5.21"></a><var>5.21</var>who does not hold a valid administrative license and who serves in an administrative, <br/>
<a id="pl.5.22"></a><var>5.22</var>supervisory, or instructional leadership position shall develop a professional development <br/>
<a id="pl.5.23"></a><var>5.23</var>plan. Documentation of the implementation of the professional development plan of these <br/>
<a id="pl.5.24"></a><var>5.24</var>persons shall be included in the school's annual report.<br/>
<a id="pl.5.25"></a><var>5.25</var>    (c) The board of directors also shall decide and be responsible for policy matters <br/>
<a id="pl.5.26"></a><var>5.26</var>related to the operation of the school, including budgeting, curriculum programming, <br/>
<a id="pl.5.27"></a><var>5.27</var>personnel, and operating procedures. The board shall adopt a policy on nepotism in <br/>
<a id="pl.5.28"></a><var>5.28</var>employment. The board shall adopt personnel evaluation policies and practices that, <br/>
<a id="pl.5.29"></a><var>5.29</var>at a minimum:<br/>
<a id="pl.5.30"></a><var>5.30</var>(1) carry out the school's mission and goals;<br/>
<a id="pl.5.31"></a><var>5.31</var>(2) evaluate the execution of charter contract goals and commitments;<br/>
<a id="pl.5.32"></a><var>5.32</var>(3) evaluate student achievement, postsecondary and workforce readiness, and <br/>
<a id="pl.5.33"></a><var>5.33</var>student engagement and connection goals;<br/>
<a id="pl.5.34"></a><var>5.34</var>(4) establish a teacher evaluation process under subdivision 8, paragraph (t); and<br/>
<a id="pl.5.35"></a><var>5.35</var>(5) provide professional development related to the individual's job responsibilities.<br/>
<a id="pl.6.1"></a><var>6.1</var>(d) A charter school board with at least 25 employees or a teacher cooperative <br/>
<a id="pl.6.2"></a><var>6.2</var>of licensed teachers providing instruction under a contract between a school and a <br/>
<a id="pl.6.3"></a><var>6.3</var>cooperative that provides group health insurance coverage shall:<br/>
<a id="pl.6.4"></a><var>6.4</var>(1) request proposals for group insurance coverage from a minimum of three sources <br/>
<a id="pl.6.5"></a><var>6.5</var>at least every three years; and<br/>
<a id="pl.6.6"></a><var>6.6</var>(2) notify employees covered by the group insurance coverage before the effective <br/>
<a id="pl.6.7"></a><var>6.7</var>date of the changes in the group coverage policy contract.<br/>
<a id="pl.6.8"></a><var>6.8</var>A charter school board or a cooperative of teachers that provides group insurance <br/>
<a id="pl.6.9"></a><var>6.9</var>coverage must establish and publish on its Web site the policy for the purchase of group <br/>
<a id="pl.6.10"></a><var>6.10</var>insurance coverage. A charter school board policy must include a sealed proposal process, <br/>
<a id="pl.6.11"></a><var>6.11</var>which requires all proposals to be opened at the same time. Upon the openings of the <br/>
<a id="pl.6.12"></a><var>6.12</var>proposals in accordance with the school or cooperative policy, the proposals become <br/>
<a id="pl.6.13"></a><var>6.13</var>public data under chapter 13.<br/>
<a id="pl.6.14"></a><var>6.14</var>Nothing in this section supersedes the right of an exclusive representative to <br/>
<a id="pl.6.15"></a><var>6.15</var>negotiate over terms and conditions of employment.<br/>
<br/>
<a id="bill.0.9.0"></a><a id="pl.6.16"></a><var>6.16</var>    Sec. 9. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 21, is <br/>
<a id="pl.6.17"></a><var>6.17</var>amended to read:<br/>
<a id="pl.6.18"></a><var>6.18</var>    Subd. 21. <b>Collective bargaining.</b> Employees of the board of directors of a charter <br/>
<a id="pl.6.19"></a><var>6.19</var>school may, if otherwise eligible, organize under chapter 179A and comply with its <br/>
<a id="pl.6.20"></a><var>6.20</var>provisions. The board of directors of a charter school is a public employer, for the <br/>
<a id="pl.6.21"></a><var>6.21</var>purposes of chapter 179A, upon formation of one or more bargaining units at the school. <br/>
<a id="pl.6.22"></a><var>6.22</var>Bargaining units at the school must be separate from any other units within an authorizing <br/>
<a id="pl.6.23"></a><var>6.23</var>district, except that bargaining units may remain part of the appropriate unit within an <br/>
<a id="pl.6.24"></a><var>6.24</var>authorizing district, if the employees of the school, the board of directors of the school, the <br/>
<a id="pl.6.25"></a><var>6.25</var>exclusive representative of the appropriate unit in the authorizing district, and the board <br/>
<a id="pl.6.26"></a><var>6.26</var>of the authorizing district agree to include the employees in the appropriate unit of the <br/>
<a id="pl.6.27"></a><var>6.27</var>authorizing district. The board of directors of a charter school with employees organized <br/>
<a id="pl.6.28"></a><var>6.28</var>under this subdivision must comply with sections 471.6161 and 471.895.<br/>
<br/>
<a id="bill.0.10.0"></a><a id="pl.6.29"></a><var>6.29</var>    Sec. 10. Minnesota Statutes 2012, section 471.6161, subdivision 1, is amended to read:<br/>
<a id="pl.6.30"></a><var>6.30</var>    Subdivision 1. <b>Group insurance coverage.</b> For purposes of this section, "group <br/>
<a id="pl.6.31"></a><var>6.31</var>insurance coverage" means benefit coverage provided to a group through a carrier an <br/>
<a id="pl.6.32"></a><var>6.32</var>entity authorized under chapters section 43A.316 or 123A.21, subdivision 7; or chapter<br/>
<a id="pl.6.33"></a><var>6.33</var> 61A, 62A, 62C, and or 62D to do business in the state.<br/>
<br/>
<a id="bill.0.11.0"></a><a id="pl.7.1"></a><var>7.1</var>    Sec. 11. Minnesota Statutes 2012, section 471.6161, subdivision 2, is amended to read:<br/>
<a id="pl.7.2"></a><var>7.2</var>    Subd. 2. <b>Request for proposal.</b> Every political subdivision authorized by law to <br/>
<a id="pl.7.3"></a><var>7.3</var>purchase group insurance for its employees and providing or intending to provide group <br/>
<a id="pl.7.4"></a><var>7.4</var>insurance coverage and benefits for 25 or more of its employees shall request proposals <br/>
<a id="pl.7.5"></a><var>7.5</var>from and enter into contracts with carriers entities referenced in subdivision 1 that in the <br/>
<a id="pl.7.6"></a><var>7.6</var>judgment of the political subdivision are best qualified to provide coverage. The request <br/>
<a id="pl.7.7"></a><var>7.7</var>for proposals shall be in writing and at a minimum shall include: coverage to be provided, <br/>
<a id="pl.7.8"></a><var>7.8</var>criteria for evaluation of carrier proposals from entities referenced in subdivision 1, and <br/>
<a id="pl.7.9"></a><var>7.9</var>the aggregate claims records for the appropriate period. A political subdivision may <br/>
<a id="pl.7.10"></a><var>7.10</var>exclude from consideration proposals requiring self-insurance. Public notice of the request <br/>
<a id="pl.7.11"></a><var>7.11</var>for proposals must be provided in a newspaper or trade journal at least 21 days before the <br/>
<a id="pl.7.12"></a><var>7.12</var>final date for submitting proposals.<br/>
<br/>
<a id="bill.0.12.0"></a><a id="pl.7.13"></a><var>7.13</var>    Sec. 12. Minnesota Statutes 2012, section 471.6161, subdivision 3, is amended to read:<br/>
<a id="pl.7.14"></a><var>7.14</var>    Subd. 3. <b>Selection of carrier.</b> The political subdivision shall make benefit and <br/>
<a id="pl.7.15"></a><var>7.15</var>cost comparisons and evaluate the proposals using the written criteria. The political <br/>
<a id="pl.7.16"></a><var>7.16</var>subdivision may negotiate with the carrier an entity referenced in subdivision 1 on benefits, <br/>
<a id="pl.7.17"></a><var>7.17</var>premiums, and other contract terms. Carriers applying Any entity providing group <br/>
<a id="pl.7.18"></a><var>7.18</var>insurance coverage to the political subdivision must provide the political subdivision <br/>
<a id="pl.7.19"></a><var>7.19</var>with aggregate claims records for the appropriate period. The political subdivision must <br/>
<a id="pl.7.20"></a><var>7.20</var>prepare a written rationale for its decision before entering into a contract with a carrier an <br/>
<a id="pl.7.21"></a><var>7.21</var>entity referenced in subdivision 1.<br/>
<br/>
<a id="bill.0.13.0"></a><a id="pl.7.22"></a><var>7.22</var>    Sec. 13. Minnesota Statutes 2012, section 471.6161, is amended by adding a <br/>
<a id="pl.7.23"></a><var>7.23</var>subdivision to read:<br/>
<a id="pl.7.24"></a><var>7.24</var>    Subd. 8. <b>School districts; group insurance coverage.</b> (a) Any entity providing <br/>
<a id="pl.7.25"></a><var>7.25</var>group insurance coverage to a school district must provide the school district with school <br/>
<a id="pl.7.26"></a><var>7.26</var>district-specific nonidentifiable aggregate claims records for the most recent 24 months <br/>
<a id="pl.7.27"></a><var>7.27</var>within 30 days of the request.<br/>
<a id="pl.7.28"></a><var>7.28</var>(b) School districts shall request proposals for group insurance coverage as provided <br/>
<a id="pl.7.29"></a><var>7.29</var>in subdivision 2 from a minimum of three potential sources of coverage. One of these <br/>
<a id="pl.7.30"></a><var>7.30</var>requests must go to an administrator governed by chapter 43A. School districts must make <br/>
<a id="pl.7.31"></a><var>7.31</var>requests for proposals at least 150 days prior to the expiration of the existing contract but <br/>
<a id="pl.7.32"></a><var>7.32</var>not more frequently than every 24 months. The request for proposals must include the <br/>
<a id="pl.7.33"></a><var>7.33</var>most recently available 24 months of nonidentifiable aggregate claims data. The request <br/>
<a id="pl.7.34"></a><var>7.34</var>for proposals must be publicly released at or prior to its release to potential bidders.<br/>
<a id="pl.8.1"></a><var>8.1</var>(c) Entities referenced in subdivision 1:<br/>
<a id="pl.8.2"></a><var>8.2</var>(1) must submit renewal premium rates to school districts and exclusive <br/>
<a id="pl.8.3"></a><var>8.3</var>representatives of employees at least 90 days before the effective date of the premium <br/>
<a id="pl.8.4"></a><var>8.4</var>rate change; and <br/>
<a id="pl.8.5"></a><var>8.5</var>(2) must submit any proposed plan design changes to school districts and employees <br/>
<a id="pl.8.6"></a><var>8.6</var>at least 90 days before the effective date to ensure proper negotiations with bargaining units.<br/>
<a id="pl.8.7"></a><var>8.7</var>(d) School district contracts for group insurance must not be longer than two years <br/>
<a id="pl.8.8"></a><var>8.8</var>unless the exclusive representative of the largest employment group and the school <br/>
<a id="pl.8.9"></a><var>8.9</var>district agree otherwise.<br/>
<a id="pl.8.10"></a><var>8.10</var>(e) All proposals and renewals shall be sealed upon receipt until they are all opened <br/>
<a id="pl.8.11"></a><var>8.11</var>no less than 90 days prior to the plan's renewal date. The proposals shall be opened on <br/>
<a id="pl.8.12"></a><var>8.12</var>the first business day after the deadline in the presence of the exclusive representative, <br/>
<a id="pl.8.13"></a><var>8.13</var>where applicable.<br/>
<a id="pl.8.14"></a><var>8.14</var>(f) Notwithstanding any other law to the contrary, a school board may continue to <br/>
<a id="pl.8.15"></a><var>8.15</var>negotiate with up to two of the bidders in order to reduce costs or improve services. The <br/>
<a id="pl.8.16"></a><var>8.16</var>choice of bidders must be agreed to by the exclusive representative of the largest group <br/>
<a id="pl.8.17"></a><var>8.17</var>of employees.<br/>
<a id="pl.8.18"></a><var>8.18</var>(g) This subdivision does not apply to an independent school district that is <br/>
<a id="pl.8.19"></a><var>8.19</var>self-insured.<br/>
<a id="pl.8.20"></a><var>8.20</var>(h) Nothing in this section shall restrict the authority granted to school district boards <br/>
<a id="pl.8.21"></a><var>8.21</var>of education by section 471.59.<br/>
<br/>
<a id="bill.0.14.0"></a><a id="pl.8.22"></a><var>8.22</var>    Sec. 14. Minnesota Statutes 2012, section 471.895, subdivision 1, is amended to read:<br/>
<a id="pl.8.23"></a><var>8.23</var>    Subdivision 1. <b>Definitions.</b> (a) The definitions in this subdivision apply to this <br/>
<a id="pl.8.24"></a><var>8.24</var>section.<br/>
<a id="pl.8.25"></a><var>8.25</var>(b) "Gift" has the meaning given it in section 
         <statute_ref>10A.071, subdivision 1</statute_ref>.<br/>
<a id="pl.8.26"></a><var>8.26</var>(c) "Interested person" means a person or a representative of a person or association <br/>
<a id="pl.8.27"></a><var>8.27</var>that has a direct financial interest in a decision that a local official is authorized to make.<br/>
<a id="pl.8.28"></a><var>8.28</var>(d) "Local official" means:<br/>
<a id="pl.8.29"></a><var>8.29</var>(1) an elected or appointed official of a county or city or of an agency, authority, <br/>
<a id="pl.8.30"></a><var>8.30</var>or instrumentality of a county or city; and<br/>
<a id="pl.8.31"></a><var>8.31</var>(2) an elected or appointed member of a school board, a school superintendent, a <br/>
<a id="pl.8.32"></a><var>8.32</var>school principal, or a district school officer of any independent school district.<br/>
<br/>
<a id="bill.0.15.0"></a><a id="pl.8.33"></a><var>8.33</var>    Sec. 15. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.9.1"></a><var>9.1</var>Sections 3 to 9 and 14 are effective July 1, 2014. Sections 1, 2, 10, 11, and 12 are <br/>
<a id="pl.9.2"></a><var>9.2</var>effective the day following final enactment. Section 13 is effective the day following final <br/>
<a id="pl.9.3"></a><var>9.3</var>enactment, and applies to requests for proposals for group insurance coverage issued <br/>
<a id="pl.9.4"></a><var>9.4</var>on or after that date.<br/>