HF 3571
1st Engrossment - 94th Legislature (2025 - 2026)
Posted on 03/26/2026 03:51 p.m.
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A bill for an act
relating to local government; allowing towns and 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, by adding a
subdivision.
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,new text begin town,new text end school district, new text begin watershed district, watershed management
organization, 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, new text begin towns,
new text end school districts, new text begin watershed districts, watershed management organizations, 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 , town,new text end school districtnew text begin , watershed district, watershed management organization,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, new text begin town, new text end school district,
new text begin watershed district, watershed management organization, 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,
new text begin town, new text end school district, new text begin watershed district, watershed management organization, 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.
Sec. 5.
Minnesota Statutes 2024, section 471.617, is amended by adding a subdivision to
read:
new text begin Subd. 7. new text end
new text begin Definition. new text end
new text begin
For the purposes of this section, "watershed management
organization" has the meaning under section 103B.205, subdivision 13.
new text end