HF 3571
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/23/2026 06:23 p.m.
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A bill for an act
relating to local government; allowing watershed districts to self-insure for certain
employee health benefits; making technical changes; amending Minnesota Statutes
2024, section 471.617, subdivisions 1, 2, 4, 4a.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 471.617, subdivision 1, is amended to read:
Subdivision 1.
If more than 100 employees; conditions.
A statutory or home rule
charter city, county, school district, new text begin watershed district, new text end or instrumentality thereof which has
more than 100 employees, may by ordinance or resolution self-insure for any employee
health benefits including long-term disability, but not for employee life benefits. Any
self-insurance plan shall provide all benefits which are required by law to be provided by
group health insurance policies. Self-insurance plans must be certified as provided by section
62E.05 and must be filed and certified by the Department of Commerce before they are
issued or delivered to any person in this state.
Sec. 2.
Minnesota Statutes 2024, section 471.617, subdivision 2, is amended to read:
Subd. 2.
Jointly.
Any two or more statutory or home rule charter cities, counties, school
districts, new text begin watershed districts, new text end or instrumentalities thereof which together have more than
100 employees may jointly self-insure for any employee health benefits including long-term
disability, but not for employee life benefits, subject to the same requirements as an individual
self-insurer under subdivision 1. Self-insurance pools under this section are subject to section
62L.045. A self-insurance pool established and operated by one or more service cooperatives
governed by section 123A.21 to provide coverage described in this subdivision qualifies
under this subdivision, but the individual school district members of such a pool shall not
be considered to be self-insured for purposes of section 471.6161, subdivision 8, paragraph
(g). The commissioner of commerce may adopt rules pursuant to chapter 14, providing
standards or guidelines for the operation and administration of self-insurance pools.
Sec. 3.
Minnesota Statutes 2024, section 471.617, subdivision 4, is amended to read:
Subd. 4.
Exclusive representative.
(a) No statutory or home rule charter city deleted text begin ordeleted text end new text begin ,new text end county
deleted text begin ordeleted text end new text begin ,new text end school districtnew text begin , watershed district,new text end or instrumentality of any of them shall adopt a deleted text begin self
insureddeleted text end new text begin self-insurednew text end health benefit plan for any employees represented by an exclusive
representative certified pursuant to section 179A.12 without prior notification and
consultation on ten days' written notice to the exclusive representative and agreement by
the exclusive representative that represents the largest number of employees to be included
in the plan.
(b) Prior to a decision to dissolve any self-insurance, trust fund, or dedicated insurance
fund created by a single statutory or home rule charter city, county, school district, new text begin watershed
district, new text end or instrumentality of any of them, either by ordinance or resolution, the employer
must provide 30 days' written notice to each exclusive representative of employees and each
individual currently receiving health benefits, and also obtain approval for the proposed
action by the exclusive representative that represents the largest number of employees
included in the plan. All assets from the trust fund must be audited before closure, and
remaining assets must be dedicated for use for health insurance benefits for all individuals
currently receiving health benefits. This paragraph does not apply to joint self-insurance
trusts or pools.
(c) The assets or liabilities of a joint self-insurance trust or pool that is dissolved must
be distributed to members of the joint trust or pool in accordance with the joint trust or pool
agreement, if any.
Sec. 4.
Minnesota Statutes 2024, section 471.617, subdivision 4a, is amended to read:
Subd. 4a.
May choose, pay for insurance.
A statutory or home rule charter city, county,
school district, new text begin watershed district, new text end or instrumentality of any of these entities with a
self-insurance health benefit plan, may, upon request of the exclusive representative of its
employees as certified pursuant to section 179A.12, allow the employees of the exclusive
representative to enroll, at their own expense, in the health insurance benefit plan.