HF 1528

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2013 03:01pm

A bill for an act
relating to local government; authorizing local government units to define
"dependent" for purposes of group benefits; amending Minnesota Statutes 2012,
section 471.61, subdivisions 1, 1a, 2a.

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

Section 1.

Minnesota Statutes 2012, section 471.61, subdivision 1, is amended to read:

Subdivision 1.

Officers, employees.

A county, municipal corporation, town, school
district, county extension committee, other political subdivision or other body corporate
and politic of this state, other than the state or any department of the state, through its
governing body, and any two or more subdivisions acting jointly through their governing
bodies, may insure or protect its or their officers and employees, and their dependents, or
any class or classes of officers, employees, or dependents, under a policy or policies or
contract or contracts of group insurance or benefits covering life, health, and accident, in
the case of employees, and medical and surgical benefits and hospitalization insurance or
benefits for both employees and dependents or dependents of an employee whose death
was due to causes arising out of and in the course of employment, or any one or more of
those forms of insurance or protection. A governmental unit, including county extension
committees and those paying their employees, may pay all or any part of the premiums or
charges on the insurance or protection. A payment is deemed to be additional compensation
paid to the officers or employees, but for purposes of determining contributions or benefits
under a public pension or retirement system it is not deemed to be additional compensation.
One or more governmental units may determine that a person is an officer or employee
if the person receives income from the governmental subdivisions without regard to the
manner of election or appointment, including but not limited to employees of county
historical societies that receive funding from the county and employees of the Minnesota
Inter-county Association. The appropriate officer of the governmental unit, or those
disbursing county extension funds, shall deduct from the salary or wages of each officer
and employee who elects to become insured or so protected, on the officer's or employee's
written order, all or part of the officer's or employee's share of premiums or charges and
remit the share or portion to the insurer or company issuing the policy or contract.

A governmental unit, other than a school district, that pays all or part of the premiums
or charges is authorized to levy and collect a tax, if necessary, in the next annual tax levy
for the purpose of providing the necessary money for the payment of the premiums or
charges, and the sums levied and appropriated are not, in the event the sum exceeds the
maximum sum allowed by the charter of a municipal corporation, considered part of
the cost of government of the governmental unit as defined in any levy or expenditure
limitation; provided at least 50 percent of the cost of benefits on dependents must be
contributed by the employee or be paid by levies within existing charter tax limitations.

deleted text begin The word "dependents" as used in this subdivision means spouse and minor
unmarried children under the age of 18 years actually dependent upon the employee.
deleted text end

Notwithstanding any other law to the contrary, a political subdivision described
in this subdivision may provide health benefits to its employees, dependents, any class
or classes of officers, employers, or dependents, and other eligible persons through
negotiated contributions to self-funded multiemployer health and welfare funds.

Sec. 2.

Minnesota Statutes 2012, section 471.61, subdivision 1a, is amended to read:

Subd. 1a.

Dependents.

deleted text begin Notwithstanding the provisions of Minnesota Statutes 1969,
section 471.61, as amended by Laws 1971, chapter 451, section 1, the word deleted text end "Dependents"
as used deleted text begin therein shall mean deleted text end deleted text begin spouse and minor unmarried children under the age of 18
years and dependent students under the age of 25 years actually dependent upon the
employee deleted text end new text begin in this section means persons required to be treated as dependents for purposes
of the applicable benefit coverage or plan under state or federal law, and others as defined
by the governmental unit at its discretion new text end .

Sec. 3.

Minnesota Statutes 2012, section 471.61, subdivision 2a, is amended to read:

Subd. 2a.

Retired officers, employees.

Any county, municipal corporation, town,
school district, county extension committee, other political subdivision or other body
corporate and politic of this state, including the state or any department thereof, through its
governing body, and any two or more subdivisions acting jointly through their governing
bodies, may insure or protect its or their retired officers and retired employees entitled to
benefits under any public employees retirement act and their dependents, or any class or
classes thereof, under a policy or policies, or contract or contracts of group insurance or
benefits covering life, health, and accident, medical and surgical benefits, or hospitalization
insurance or benefits, for retired officers and retired employees and their dependents, or
any one or more of such forms of insurance or protection. Any such governmental unit,
including county extension committees, may pay all or any part of the premiums or charges
on such insurance or protection or may require the retired officer or employee to pay all
or part of the premiums or charges. Any one or more of such governmental units may
determine that a person is a retired officer or a retired employee if such officer or employee,
when employed, received income from such governmental subdivisions without regard to
the manner of election or appointment. The appropriate officer of such governmental unit,
or those disbursing county extension funds, shall collect from each such retired officer
and retired employee who elects to become insured or so protected, on such officer's or
employee's written order, all or part of the retired officer's or retired employee's share of
such premiums or charges and remit the same to the insurer or company issuing such policy
or contract. An insurer, health maintenance organization, or company issuing the policy or
contract may not require a public employer to contribute any portion of the retired officer's
or employee's share as a condition of eligibility for the insurance or protection. An insurer,
health maintenance organization, or company issuing the policy or contract may require a
retired officer or a retired employee to pay all or any part of the premiums or charges.

Any governmental unit, other than a school district, which pays all or any part of
such premiums or charges is authorized to levy and collect a tax, if necessary, in the next
annual tax levy for the purpose of providing the necessary funds for the payment of such
premiums or charges, and such sums so levied and appropriated shall not, in the event
such sum exceeds the maximum sum allowed by the charter of a municipal corporation,
be considered part of the cost of government of such governmental unit as defined in
any tax or expenditure limitation; provided at least 50 percent of the cost of benefits on
dependents shall be contributed by the retired officer or retired employee or be paid by
levies within existing charter tax limitations.

deleted text begin The word "dependents" as used herein shall mean spouse and minor unmarried
children under the age of 18 years actually dependent upon the retired officer or retired
employee.
deleted text end