HF 4729

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/26/2026 02:38 p.m.

A bill for an act
relating to education finance; providing for school employee health insurance;
increasing the minimum starting salary for nonlicensed school personnel; providing
for paid orientation and professional development for paraprofessionals;
appropriating money; amending Minnesota Statutes 2024, sections 43A.316,
subdivisions 2, 3, 5, 7, 8, by adding subdivisions; 121A.642, as amended; 125A.08,
subdivision 2; Laws 2025, First Special Session chapter 10, article 2, section 24,
subdivision 24; proposing coding for new law in Minnesota Statutes, chapters
121A; 123B; 124D; 126C; repealing Minnesota Statutes 2024, section 43A.316,
subdivision 11.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

SCHOOL EMPLOYEES

Section 1.

Minnesota Statutes 2024, section 121A.642, as amended by Laws 2025, First
Special Session chapter 10, article 2, section 8, is amended to read:

121A.642 PARAPROFESSIONAL TRAINING.

Subdivision 1.

Training required.

(a) For purposes of this section, "school" means a
school district, charter school, intermediate school district, other cooperative unit, Perpich
Center for Arts Education, or the Minnesota State Academies.

(b) A school must provide a minimum of deleted text begin eight deleted text end new text begin 16 new text end hours of paid orientation or professional
development annually to all paraprofessionals, Title I aides, and other instructional support
staff.

(c) Six of the deleted text begin eight deleted text end new text begin 16 new text end hours must be completed before the first instructional day of the
school year or within 30 days of hire.

(d) The orientation or professional development must be relevant to the employee's
occupation and may include collaboration time with classroom teachers and planning for
the school year.

(e) For paraprofessionals who provide direct support to students, at least 50 percent of
the professional development or orientation must be dedicated to meeting the requirements
of this section. Professional development for paraprofessionals may also address the
requirements of section 120B.363, subdivision 3.

(f) A school administrator must provide an annual certification of compliance with this
requirement to the commissioner.

deleted text begin (g) For the 2024-2025 school year only, a school may reduce the hours of training
required in paragraphs (b) to (e) to a minimum of six hours and must pay for paraprofessional
test materials and testing fees for any paraprofessional employed by the school district
during the 2023-2024 school year who has not yet successfully completed the
paraprofessional assessment or met the requirements of the paraprofessional competency
grid.
deleted text end

Subd. 2.

Reimbursement for paraprofessional training.

(a) Beginning in fiscal year
2025, the commissioner of education must reimburse schools in the form and manner
specified by the commissioner for paraprofessional training costs.

(b) The paraprofessional reimbursement equals the prior year compensation expenses
associated with providing up to deleted text begin eight deleted text end new text begin 16 new text end hours of paid orientation and professional
development for each paraprofessional trained under subdivision 1. For purposes of this
paragraph, "compensation expenses" means the sum of the following amounts attributable
to the school's paraprofessionals:

(1) regular hourly wages;

(2) Federal Insurance Contributions Act (FICA) taxes under United States Code, title
26, chapter 21; and

(3) the employer share of retirement contributions required under chapter 352, 353, 354,
or 354A.

(c) The commissioner may establish procedures to ensure that any costs reimbursed
under this section are excluded from other school revenue calculations.

(d) For reimbursements paid in fiscal year 2026 only, the commissioner must reimburse
a school for six hours of paraprofessional training required under subdivision 1, paragraph
(b).

(e) In addition to the amounts under paragraph (d), for fiscal year 2026 only, the
commissioner must pay each school an additional amount equal to 33.33 percent of the
amount in paragraph (d). The school must use these funds either for paraprofessional test
preparation and exam fees under subdivision 1, paragraph (g), or additional training under
subdivision 1, paragraph (b).

Subd. 3.

Consultation.

A school district or charter school must consult the exclusive
representative for employees receiving this training before creating or planning the training
required under this section.

Subd. 4.

Qualifications.

(a) deleted text begin Starting in the 2025-2026 school year, deleted text end A paraprofessional
meets the federal personnel qualifications required in Code of Federal Regulations, title 34,
section 300.156, if the paraprofessional:

(1) has at least two years of college credits through an accredited institution of higher
education, or an associate's degree or higher;

(2) has received a passing score on an assessment approved by the Department of
Education; or

(3) demonstrates the following competencies, regardless of the number of hours of
training the paraprofessional has received:

(i) understanding the distinctions between roles and responsibilities of professionals,
paraprofessionals, and support personnel;

(ii) understanding the purposes and goals of education and instruction for all students;

(iii) knowledge of relevant laws, rules, regulations, and local district policies and
procedures to ensure paraprofessionals work within these parameters;

(iv) awareness of the challenges and expectations of various learning environments;

(v) the ability to establish and maintain rapport with students;

(vi) the ability to follow oral and written direction of licensed teachers, seeking
clarification as needed;

(vii) the ability to assist and reinforce elements that support a safe, healthy, and effective
teaching and learning environment;

(viii) understanding strategies for assisting with the inclusion of students in various
settings;

(ix) the ability to use strategies that promote the student's independence;

(x) understanding applicable laws, rules, and regulations, and procedural safeguards
regarding the management of student behaviors;

(xi) awareness of the primary factors that influence student behavior;

(xii) the ability to effectively employ a variety of strategies that reinforce positive
behavior;

(xiii) the ability to use ethical practices for confidential communication about students;

(xiv) the ability to follow teacher instructions while conferring and collaborating with
teachers about student schedules, instructional goals, and performance;

(xv) demonstrating a commitment to assisting students in reaching the students' highest
potential, including the modeling of positive behavior;

(xvi) showing respect for the diversity of students;

(xvii) showing a willingness to participate in ongoing staff development and
self-evaluation and to apply constructive feedback;

(xviii) supporting and reinforcing the instruction of students in mathematics following
written and oral lesson plans developed by licensed teachers;

(xix) supporting and reinforcing the instruction of students in reading following written
and oral lesson plans developed by licensed teachers. Professional development required
under the Read Act in section 120B.123 exceeds this requirement; and

(xx) supporting and reinforcing the instruction of students in writing following written
and oral lesson plans developed by licensed teachers.

(b) deleted text begin Starting in the 2025-2026 school year, deleted text end A paraprofessional meets the federal personnel
qualifications required in Code of Federal Regulations, title 34, section 200.58, if the
paraprofessional:

(1) has at least two years of college credits from an accredited institution of higher
education, or an associate's degree or higher; or

(2) met a rigorous standard of quality and can demonstrate, through a formal state or
local academic assessment, knowledge of and the ability to assist in instructing, as
appropriate:

(i) reading or language arts, writing, and mathematics; or

(ii) reading readiness, writing readiness, and mathematics readiness.

(c) Upon request from a paraprofessional employed by a school district, charter school,
or cooperative unit providing direct instructional services, the school district, charter school,
or cooperative unit may provide administrative assistance to the paraprofessional when
completing requirements related to the competencies required under this subdivision.

new text begin (d) For state and federal purposes for a paraprofessional, demonstrating the competencies
listed in paragraph (a), clause (3), is equivalent to achieving a passing score on a formal
state or local academic assessment in accordance with paragraph (a), clause (2). The
department must take any steps necessary to ensure the paraprofessional meets federal
qualification requirements, including but not limited to applying for a waiver under Code
of Federal Regulations, title 20, section 5891b. The department must not exclude state aid
under any program for a paraprofessional who has demonstrated the competencies listed in
paragraph (a), clause (3), instead of achieving a passing score on a formal state or local
assessment in accordance with paragraph (a), clause (2). A district or charter school must
maintain the paraprofessional's completed assessment and documentation that the
paraprofessional demonstrated the required competencies in the paraprofessional's personnel
file.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies for the 2026-2027 school year and later.
new text end

Sec. 2.

new text begin [121A.645] NONINSTRUCTIONAL STAFF TRAINING.
new text end

new text begin (a) A school district or charter school must provide noninstructional staff, including but
not limited to food service employees and bus drivers, with a minimum of 16 annual hours
of paid orientation or professional development. The training must include:
new text end

new text begin (1) strategies for managing student behavior;
new text end

new text begin (2) district or school policies relating to student behavior or discipline, including the
bullying policy under section 121A.031; and
new text end

new text begin (3) district or school resources for addressing student behavior.
new text end

new text begin (b) Up to eight hours of paid training provided under section 171.321, subdivision 4,
may be counted toward the 16 hours required under this section.
new text end

new text begin (c) Noninstructional aid for a school district or charter school equals $.......
new text end

new text begin (d) A school administrator must provide an annual certification of compliance with this
section to the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 3.

new text begin [123B.026] EMPLOYEES OF CONTRACTORS.
new text end

new text begin (a) A school district or charter school that enters into a contract for services with a third
party must require the third party to pay all employee wages at a rate of at least $25 per
hour. Unless approved by the commissioner of education, a school board must renegotiate
any agreement for services with a third party in effect as of July 1, 2026, to require the third
party to pay all employee wages at a rate of at least $25 per hour, 16 hours of paid orientation
or professional development that meets the requirements of sections 121A.642 and 121A.645,
and wages for days that a school district or charter school designates as an e-learning day
under section 120A.414.
new text end

new text begin (b) A school administrator must provide an annual certification of compliance with this
section to the commissioner of education. The first certification must be submitted by July
1, 2027.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 4.

Minnesota Statutes 2024, section 125A.08, subdivision 2, is amended to read:

Subd. 2.

Paraprofessionals.

For all paraprofessionals employed to work in programs
whose role in part is to provide direct support to students with disabilities, the school board
in each district shall ensure that:

(1) before or beginning at the time of employment, each paraprofessional must develop
sufficient knowledge and skills in emergency procedures, building orientation, roles and
responsibilities, confidentiality, vulnerability, and reportability, among other things, to begin
meeting the needs, especially disability-specific and behavioral needs, of the students with
whom the paraprofessional works;

(2) deleted text begin within five days of deleted text end new text begin before new text end beginning to work alone with an individual student with
a disability, the assigned paraprofessional must be either given paid time, or time during
the school day, to review a student's individualized education program or be briefed on the
student's specific needs by appropriate staff;

(3) annual training opportunities are required to enable the paraprofessional to continue
to further develop the knowledge and skills that are specific to the students with whom the
paraprofessional works, including understanding disabilities, the unique and individual
needs of each student according to the student's disability and how the disability affects the
student's education and behavior, following lesson plans, and implementing follow-up
instructional procedures and activities; and

(4) a districtwide process obligates each paraprofessional to work under the ongoing
direction of a licensed teacher and, where appropriate and possible, the supervision of a
school nurse.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026.
new text end

Sec. 5.

new text begin [126C.38] MINIMUM WAGE RATE AID.
new text end

new text begin Subdivision 1. new text end

new text begin Minimum wage. new text end

new text begin Notwithstanding any law to the contrary, a school
district or charter school must pay the following employees wages at a rate of at least $25
per hour:
new text end

new text begin (1) paraprofessionals, Title I aides, and other instructional support staff;
new text end

new text begin (2) food service employees;
new text end

new text begin (3) bus drivers; and
new text end

new text begin (4) other employees who do not have a license issued by the Professional Educator
Licensing and Standards Board or the Board of School Administrators, and who work at
least 14 hours per week and 100 workdays per year in one position.
new text end

new text begin Subd. 2. new text end

new text begin Aid. new text end

new text begin Minimum wage rate aid for a school district or charter school equals $.......
new text end

Sec. 6.

Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 24,
is amended to read:

Subd. 24.

Paraprofessional training.

(a) For compensation associated with paid
orientation and professional development for paraprofessionals under Minnesota Statutes,
section 121A.642:

	$	4,721,000	.....	2026
	$	deleted text begin 5,000,000 deleted text end new text begin ....... new text end	.....	2027

(b) The 2026 appropriation includes $221,000 for 2025 and $4,500,000 for 2026.

(c) The 2027 appropriation includes $500,000 for 2026 and deleted text begin $4,500,000 deleted text end new text begin $....... new text end for 2027.

Sec. 7. new text begin APPROPRIATION; DEPARTMENT OF EDUCATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sums indicated in this section are
appropriated from the general fund to the Department of Education in the fiscal year
designated.
new text end

new text begin Subd. 2. new text end

new text begin Minimum wage rate aid. new text end

new text begin For minimum wage rate aid under Minnesota Statutes,
section 126C.38:
new text end

new text begin $ new text end

new text begin ....... new text end

new text begin ..... new text end

new text begin 2027 new text end

new text begin Subd. 3. new text end

new text begin Noninstructional staff; training on student behavior. new text end

new text begin For training on student
behavior under Minnesota Statutes, section 121A.645:
new text end

new text begin $ new text end

new text begin ....... new text end

new text begin ..... new text end

new text begin 2027 new text end

ARTICLE 2

EDUCATOR GROUP INSURANCE PROGRAM

Section 1.

Minnesota Statutes 2024, section 43A.316, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purpose of this section, the terms defined in this subdivision
have the meaning given deleted text begin them deleted text end .

(a) Commissioner. "Commissioner" means the commissioner of management and
budget.

(b) Employee. "Employee" means:

(1) a person who is a public employee within the definition of section 179A.03,
subdivision 14, who is insurance eligible and is employed by an eligible employer;

(2) an elected public official of an eligible employer who is insurance eligible;

(3) a person employed by a labor organization or employee association certified as an
exclusive representative of employees of an eligible employer or by another public employer
approved by the commissioner, so long as the plan meets the requirements of a governmental
plan under United States Code, title 29, section 1002(32); or

(4) a person employed by a county or municipal hospital.

(c) Eligible employer. "Eligible employer" means:

(1) a public employer within the definition of section 179A.03, subdivision 15, that is
a town, county, city, school district as defined in section 120A.05, service cooperative as
defined in section 123A.21, intermediate district as defined in section 136D.01, Cooperative
Center for Vocational Education as defined in section 123A.22, regional management
information center as defined in section 123A.23, or an education unit organized under the
joint powers action, section 471.59; deleted text begin or
deleted text end

(2) an exclusive representative of employees, as defined in paragraph (b);

(3) a county or municipal hospital; or

(4) another public employer approved by the commissioner.

(d) Exclusive representative. "Exclusive representative" means an exclusive
representative as defined in section 179A.03, subdivision 8.

(e) Program. "Program" means the statewide public employees insurance program
created by subdivision 3.

new text begin (f) Educator group insurance program. "Educator group insurance program" means
the mandatory health insurance pool created from the school employee pool.
new text end

new text begin (g) Retired school employee. "Retired school employee" means a school employee
who has separated from service with any school employer and has met the age and service
requirements necessary to receive an annuity from a Minnesota public pension plan.
new text end

new text begin (h) School employee. "School employee" means an employee of a school employer,
regardless of the number of hours worked or their status as a public employee under section
179A.03, subdivision 14.
new text end

new text begin (i) School employee pool. "School employee pool" means a mandatory health insurance
pool for all eligible school employees and other eligible employees or employers electing
to be in the pool.
new text end

new text begin (j) School employer. "School employer" means a district as defined in section 120A.05,
a service cooperative as defined in section 123A.21, an intermediate district as defined in
section 136D.01, a cooperative center for vocational education as defined in section 123A.22,
a regional management information center as defined in section 123A.23, a charter school
under chapter 124D, or an education unit organized under a joint powers agreement under
section 471.59.
new text end

Sec. 2.

Minnesota Statutes 2024, section 43A.316, subdivision 3, is amended to read:

Subd. 3.

Public employee insurance program.

The commissioner shall be the
administrator of the public employee insurance program new text begin and the educator group insurance
program new text end and may determine its funding new text begin , coverage, and administrative new text end arrangements. The
commissioner shall model the deleted text begin program deleted text end new text begin programs new text end after the plan established in section 43A.18,
subdivision 2 deleted text begin , but deleted text end new text begin . The commissioner shall offer individual school employers dependent
coverage tiers that match the coverage when entering the school employee pool and any
changes to dependent coverage tiers subsequently negotiated. The commissioner shall also
offer a high-deductible plan compatible with health care savings accounts. The commissioner new text end
may modify deleted text begin that plan deleted text end new text begin those plans and dependent coverage tiers pursuant to the requirements
of subdivision 4a new text end .

Sec. 3.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to
read:

new text begin Subd. 4a. new text end

new text begin Educator group insurance program. new text end

new text begin The Labor Management Committee
is established and consists of 12 members appointed to represent participating school
employees and retired school employees. The Minnesota Association of School
Administrators; the Minnesota Association of School Business Officials; the Service
Employees International Union; the American Federation of State, County, and Municipal
Employees; and the Minnesota School Employees Association must each appoint one
representative. Education Minnesota must appoint seven representatives, providing a diverse
representation of the state, including a retiree. Committee members are eligible for expense
reimbursement in the same manner and amount as authorized by the commissioner's plan
adopted under section 43A.18, subdivision 2. A change to a cost-sharing plan may only be
made with mutual agreement between the commissioner and the committee. The committee
shall study issues relating to the insurance program, including but not limited to flexible
benefits, utilization review, quality assessment, and cost efficiency. The committee continues
to exist while the program remains in operation.
new text end

Sec. 4.

Minnesota Statutes 2024, section 43A.316, subdivision 5, is amended to read:

Subd. 5.

Public employee participation.

(a) Participation in the program is subject to
the conditions in this subdivision.

(b) Each exclusive representative for deleted text begin an deleted text end new text begin a nonschool new text end eligible employer determines
whether the employees it represents will participate in the program. The exclusive
representative shall give the employer notice of intent to participate at least 30 days before
the expiration date of the collective bargaining agreement preceding the collective bargaining
agreement that covers the date of entry into the program. The exclusive representative and
the eligible employer shall give notice to the commissioner of the determination to participate
in the program at least 30 days before entry into the program. Entry into the program is
governed by a schedule established by the commissioner.

(c) Employees not represented by exclusive representatives may become members of
the program upon a determination of deleted text begin an deleted text end new text begin a nonschool new text end eligible employer to include these
employees in the program. Either all or none of the employer's unrepresented employees
must participate. The eligible employer shall give at least 30 days' notice to the commissioner
before entering the program. Entry into the program is governed by a schedule established
by the commissioner.

deleted text begin (d) Participation in the program is for a four-year term. Participation is automatically
renewed for an additional four-year term unless the exclusive representative, or the employer
for unrepresented employees, gives the commissioner notice of withdrawal at least 30 days
before expiration of the participation period. A group that withdraws must wait two years
before rejoining. An exclusive representative, or employer for unrepresented employees,
may also withdraw if premiums increase 20 percent or more from one insurance year to the
next.
deleted text end

deleted text begin (e) The exclusive representative shall give the employer notice of intent to withdraw to
the commissioner at least 30 days before the expiration date of a collective bargaining
agreement that includes the date on which the term of participation expires.
deleted text end

deleted text begin (f) Each participating eligible employer shall notify the commissioner of names of
individuals who will be participating within two weeks of the commissioner receiving notice
of the parties' intent to participate. The employer shall also submit other information as
required by the commissioner for administration of the program.
deleted text end

new text begin (d) Participation by a nonschool employer in the program is permanent once elected.
Nonschool exclusive representatives and eligible employers enrolled in the public employee
insurance program after July 1, 2026, shall have the option to either remain enrolled and
move to the mandatory school employee pool or permanently leave enrollment.
new text end

new text begin (e) All school employers shall submit to the administrators of the mandatory school
employee pool the names and other required information regarding its school employees
within two weeks of the employees starting work or becoming employed, whichever comes
first. New coverage is effective on the first day of employment. Three months prior to entry
into the program, school employers shall provide the program administrator with the names
and required information of current employees. Beginning January 1, 2027, or as soon
thereafter as contracts or agreements with providers that were in place upon enactment
expire, school employees shall receive insurance through the school employee pool.
Employees of school employers obligated by a health insurance contract expiring on or
before December 31, 2026, must begin participation in the program on January 1, 2027. In
the event an insurance contract expires after enactment and before December 31, 2026,
subsequent contracts expire on December 31, 2026. A school employee participating in the
public employee insurance program must join the school employee pool on January 1, 2027,
regardless of the length of the employee's remaining term.
new text end

new text begin (f) School employers with individual self-insured plans that have unused reserve funds
after all obligations have been met may negotiate with the exclusive representative regarding
the reserve amount (1) attributable to the proportionate number of insured lives covered by
the exclusive representative, and (2) that must be dedicated for use for health insurance
benefits for all individuals currently receiving health benefits. Notwithstanding section
471.617, no notice or approval is required for school employers who dissolve a self-insured
plan under this section. If the school employer and the exclusive representative are unable
to come to an agreement, the remaining funds must be used to pay the employee's premium
portion to the school employee pool until the reserve funds are depleted. These funds shall
be used for a proportional premium payment at the time it is necessary to deplete the balance.
new text end

new text begin (g) School employers leaving a plan under section 123A.21 with a service cooperative
must receive a prorated share of the service cooperative reserves attributable to their portion
of membership in the plan and distribute them as required in paragraph (f).
new text end

Sec. 5.

Minnesota Statutes 2024, section 43A.316, subdivision 7, is amended to read:

Subd. 7.

Premiums.

deleted text begin The proportion of premium paid by the employer and employee is
subject to collective bargaining or personnel policies. If, at the beginning of the coverage
period, no collective bargaining agreement has been finalized, the increased dollar costs, if
any, from the previous year is the sole responsibility of the individual participant until a
collective bargaining agreement states otherwise. deleted text end Premiums, including an administration
fee, shall be established by the commissioner new text begin and shall not vary across eligible school
employers new text end . Each employer shall pay monthly the amounts due for employee benefits
including the amounts under subdivision 8 to the commissioner no later than the dates
established by the commissioner. If an employer fails to make the payments as required,
the commissioner may deleted text begin cancel program benefits and deleted text end pursue other civil remedies new text begin , including
accessing funds allocated to the school employer by the Department of Education new text end . new text begin Failure
to make payments is considered using funds contrary to their purpose under section 127A.42,
subdivision 2, clause (7), and the commissioner of education shall use section 127A.42 to
reduce necessary aid to pay to the educator group insurance program.
new text end

Sec. 6.

Minnesota Statutes 2024, section 43A.316, subdivision 8, is amended to read:

Subd. 8.

Continuation of coverage.

(a) A former employee of an employer participating
in the program who is receiving a public pension disability benefit or an annuity or has met
the age and service requirements necessary to receive an annuity under chapter 353, 353C,
354, 354A, 356, or 423, or Minnesota Statutes 2008, chapter 422A, and the former employee's
dependents, are eligible to participate in the program. This participation is at the person's
expense unless a collective bargaining agreement or personnel policy provides otherwise.
Premiums for these participants must be established by the commissioner.

The commissioner deleted text begin may deleted text end new text begin must not new text end provide policy exclusions for preexisting conditions
deleted text begin only when there is a break in coverage between a participant's coverage under the
employment-based group insurance program and the participant's coverage under this
section deleted text end . An employer shall notify an employee of the option to participate under this
paragraph no later than the effective date of retirement. The retired employee or the employer
of a participating group on behalf of a current or retired employee shall notify the
commissioner within 30 days of the effective date of retirement of intent to participate in
the program according to the rules established by the commissioner.

(b) The spouse of a deceased employee or former employee may purchase the benefits
provided at premiums established by the commissioner if the spouse was a dependent under
the employee's or former employee's coverage under this section at the time of the death.
The spouse remains eligible to participate in the program deleted text begin as long as the group that included
the deceased employee or former employee participates in the program deleted text end new text begin under the
requirements of section 62A.146 new text end . Coverage under this clause must be coordinated with
relevant insurance benefits provided through the federally sponsored Medicare program.

(c) The program benefits must continue in the event of strike permitted by section
179A.18, deleted text begin if the exclusive representative chooses to have coverage continue and the employee
pays the total monthly premiums when due deleted text end new text begin and the employer must continue to pay the total
monthly premiums due new text end .

(d) A participant who discontinues coverage may not reenroll new text begin unless newly eligible
under this section new text end .

Persons participating under these paragraphs shall make appropriate premium payments
in the time and manner established by the commissioner.

Sec. 7.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to
read:

new text begin Subd. 12. new text end

new text begin Nonidentifiable aggregate claims data from past coverage. new text end

new text begin Upon request
by the commissioner, entities that are providing or have provided coverage to eligible school
employees shall provide to the commissioner at no charge nonidentifiable aggregate claims
data for that coverage. Notwithstanding section 13.203, the information must include data
relating to school employees' group benefit sets, demographics, claims experience, and any
other data or information reasonably necessary to accurately and appropriately underwrite
the risk of the school employees.
new text end

Sec. 8.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to
read:

new text begin Subd. 13. new text end

new text begin Educator group insurance program start-up funding; administration of
ongoing revenues and expenses. new text end

new text begin The commissioner may impose a reserve surcharge in
the first three years of school employee enrollment if the commissioner deems it actuarially
necessary to supplement the existing public employee insurance program reserves available
in the insurance trust fund under subdivision 9. These funds are available to support both
the phasing out of the public employee insurance program and the implementation of the
educator group insurance program.
new text end

Sec. 9.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to
read:

new text begin Subd. 14. new text end

new text begin Eligibility. new text end

new text begin (a) A school employee who is a public employee within the
definition of section 179A.03, subdivision 14, is eligible for coverage in the school employee
pool for the plan year, including school breaks. A school district employer must seek an
opinion from the Office of the Attorney General on any dispute over eligibility under the
authority of section 8.07. Notwithstanding any other law to the contrary, the attorney general
must provide this opinion without charge, and the parties must comply with the opinion
until a party exercises their right to a resolution through a grievance process in the collective
bargaining agreement. An attorney general opinion is admissible in any related arbitration
proceeding.
new text end

new text begin (b) If an employee meets the hour requirement for a public employee under section
179A.03, subdivision 14, when combining hours assigned by two or more separate school
employers and works less than full-time with any employer, each employer shall pay a pro
rata share of the cost of the employer contribution. A full-time employer shall pay the full
employer contribution.
new text end

new text begin (c) An employee must receive notification of continuation rights as provided in other
laws. This coverage must be considered employer sponsored for purposes of all continuation
laws, including section 471.61, subdivision 2b, and no former employee has a right to force
the continuation of a plan created prior to the school employee pool.
new text end

new text begin (d) An employee who waives coverage upon eligibility is not eligible to enroll until the
next open enrollment period.
new text end

new text begin (e) School employees who are not also public employees as defined under section
179A.03, subdivision 14, are permitted to purchase coverage from the school employee
pool at their own expense or, if negotiated, with a full or partial employer contribution.
new text end

new text begin (f) In the event an eligible employee goes on unpaid status for the remainder of the
month, continuation premiums are not due until the next month.
new text end

new text begin (g) Employers and employees are permitted to agree to the continuation of employer-paid
premiums postemployment.
new text end

Sec. 10.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision
to read:

new text begin Subd. 15. new text end

new text begin Contributions. new text end

new text begin On behalf of school employees covered by subdivision 14,
paragraph (a), the school district must contribute 85 percent of the costs for family premiums
and 95 percent of the costs for single premiums for the highest value plan offered for school
employer participants. If an eligible school employee chooses a high-deductible plan, the
employer must contribute the equivalent of the 85 or 95 percent cost of the highest value
plan toward the chosen plan, and any allotted contribution in excess of the high-deductible
premium shall be made to the employee's health care savings account or health reimbursement
arrangement. If such an account is not already in the parties' collective bargaining agreement,
the parties shall negotiate to establish one. Failure to agree on an account results in the
required contributions being made to an employee health care savings account with the
Minnesota State Retirement System pursuant to chapter 352. All remaining costs must be
paid by the employee unless the exclusive representative and employer agree that the
employer will cover some or all of the cost as:
new text end

new text begin (1) premium contributions;
new text end

new text begin (2) contributions to a health reimbursement arrangement or health savings account; or
new text end

new text begin (3) a combination of premium contributions and contributions to a health reimbursement
arrangement or health savings account.
new text end

new text begin Eligible employees who are married to another eligible employee may choose to have one
family plan or two single plans. If they choose a family plan, 100 percent of the premium
must be paid by the employers in equal shares.
new text end

Sec. 11.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision
to read:

new text begin Subd. 16. new text end

new text begin Health insurance revenue. new text end

new text begin Funding for a service cooperative as defined in
section 123A.21, an intermediate district as defined in section 136D.01, and a cooperative
center for vocational education as defined in section 123A.22 shall be direct aid and shall
be equal to the average of funding received per eligible staff member by the member districts
for each of the entity's eligible staff members employed by the entity on October 1 of the
previous school year.
new text end

Sec. 12.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin No effect on more generous plans or policies. new text end

new text begin (a) Consistent with participation
in the school employee pool, nothing in this section shall be construed to discourage
employers from adopting or retaining health plan and related benefit policies that meet or
exceed, and do not otherwise conflict with, the minimum standards and requirements
provided in this section.
new text end

new text begin (b) Consistent with participation in the school employee pool, nothing in this section
shall be construed to limit the right of parties to a collective bargaining agreement to bargain
and agree with respect to health plan and related benefit policies or to diminish the obligation
of an employer to comply with any contract, collective bargaining agreement, or any
employment benefit program or plan that meets or exceeds, and does not otherwise conflict
with, the minimum standards and requirements provided in this section. This specifically
includes but is not limited to premium contributions and tax-favored accounts permitted by
the Internal Revenue Service, including health reimbursement arrangements, health savings
accounts, and section 125 of the Internal Revenue Code flexible spending accounts, but
does not include individual coverage health reimbursement arrangements or specific plan
benefit structures.
new text end

new text begin (c) Consistent with participation in the school employee pool, nothing in this section
shall be construed to preempt, limit, or otherwise affect the applicability of any other law,
regulation, requirement, policy, or standard that provides for additional health plan and
related benefits or that extends other protections to employees.
new text end

new text begin (d) Consistent with participation in the school employee pool, nothing in this section
shall be construed or applied to create any power or duty in conflict with federal law.
new text end

Sec. 13.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision
to read:

new text begin Subd. 18. new text end

new text begin Broker commissions. new text end

new text begin School employers shall not expend public resources
for broker commissions either as a direct fee or as an amount added to the insurer's rates
for assistance with implementation and ongoing use of health insurance benefits provided
under the school employee pool.
new text end

Sec. 14.

new text begin [124D.997] EDUCATOR GROUP INSURANCE PROGRAM AID.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin A school district or charter school is eligible to apply to the
commissioner for educator group insurance program aid under this section.
new text end

new text begin Subd. 2. new text end

new text begin Certification; aid calculation. new text end

new text begin (a) If a district determines that it will incur
additional employer premium costs attributable to the requirements of section 43A.316,
subdivision 15, it may certify the additional costs to the commissioner for approval, in the
form and manner determined by the commissioner. Aid for the district equals the amount
approved by the commissioner.
new text end

new text begin (b) A district that cannot demonstrate additional employer premium costs under paragraph
(a) is not eligible for aid under this section.
new text end

new text begin Subd. 3. new text end

new text begin Eligible uses. new text end

new text begin Aid under this section may be used for premium costs attributable
to the requirements of section 43A.316.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for revenue in fiscal year ... and later.
new text end

Sec. 15. new text begin APPROPRIATION.
new text end

new text begin Subdivision 1. new text end

new text begin Department of Education. new text end

new text begin The sum indicated in this section is
appropriated from the general fund to the Department of Education for the fiscal year
designated.
new text end

new text begin Subd. 2. new text end

new text begin Educator group insurance program aid. new text end

new text begin (a) For educator group insurance
program aid under Minnesota Statutes, section 124D.997:
new text end

new text begin $ new text end

new text begin ....... new text end

new text begin ..... new text end

new text begin 2027 new text end

new text begin (b) The 2027 appropriation includes $0 for fiscal year 2026 and $....... for fiscal year
2027.
new text end

Sec. 16. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2024, section 43A.316, subdivision 11, new text end new text begin is repealed.
new text end

APPENDIX

Repealed Minnesota Statutes: 26-08028

43A.316 PUBLIC EMPLOYEES INSURANCE PROGRAM.

Subd. 11.

Proposal from school district; response required.

Upon receipt of a request for a proposal from a school district pursuant to section 471.6161, subdivision 8, the public employees insurance program shall respond to the request within 60 days.