Minnesota Legislature
HF 1912
as introduced - 90th Legislature (2017 - 2018) Posted on 03/02/2017 12:51pm
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A bill for an act
relating to local government; local government employer-sponsored hospital,
medical, and dental insurance; limiting required pooling to members of the Public
Employees Retirement Association police and fire and local government
correctional service retirement plans; creating an open appropriation from the
general fund to the public safety officer's benefit account; requiring employer
consent for participation in public employees insurance program; amending
Minnesota Statutes 2016, sections 43A.316, subdivision 5; 299A.42; 299A.465,
subdivision 4; 471.61, subdivision 2b; 471.617, subdivision 4; repealing Minnesota
Statutes 2016, section 471.6161, subdivision 5.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2016, 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 an eligible employer determines whether the
employees it represents will participate in the programnew text begin with the consent of the eligible
employernew text end . 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 an 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.
(d) Participation in the program is for a two-year term. Participation is automatically
renewed for an additional two-year term unless the exclusive representativenew text begin with the consent
of the eligible employernew text end , 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
representativenew text begin with the consent of the eligible employernew text end , or employer for unrepresented
employees, may also withdraw if premiums increase 50 percent or more from one insurance
year to the next.
(e) The exclusive representative new text begin with the consent of the eligible employer, new text end 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.
(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.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment provided
that existing participation may not be terminated before the conclusion of its two-year term.
new text end
Sec. 2.
Minnesota Statutes 2016, section 299A.42, is amended to read:
299A.42 PUBLIC SAFETY OFFICER'S BENEFIT ACCOUNT.
The public safety officer's benefit account is created in the state treasury. Money in the
account consists of money transferred and appropriated to that account. Money in the account
that is not expended in the fiscal year in which it is transferred or appropriated does not
revert to the general fund until claims for reimbursement under section 299A.465 that are
submitted in that fiscal year are either paid or denied.new text begin A sum sufficient to discharge the
duties imposed by sections 299A.41 to 299A.47 is annually appropriated from the general
fund to the account.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2017.
new text end
Sec. 3.
Minnesota Statutes 2016, section 299A.465, subdivision 4, is amended to read:
Subd. 4.
Public employer reimbursement.
A public employer subject to this section
may annually apply by August 1 for the preceding fiscal year to the commissioner of public
safety for reimbursement to deleted text begin helpdeleted text end defray deleted text begin a portion ofdeleted text end its costs of complying with this section.
The commissioner shall provide deleted text begin an equal pro rata share to the public employerdeleted text end new text begin reimbursement
new text end out of the public safety officer's benefit account deleted text begin based on the availability of funds for each
eligible officer, firefighter, and qualifying dependentsdeleted text end . Individual shares must not exceed
the actual costs of providing coverage under this section by a public employer.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2017, for employer costs incurred
on or after that date.
new text end
Sec. 4.
Minnesota Statutes 2016, section 471.61, subdivision 2b, is amended to read:
Subd. 2b.
Insurance continuation.
A unit of local government must allow a former
employee and the employee's dependents to continue to participate indefinitely in the
employer-sponsored hospital, medical, and dental insurance group that the employee
participated in immediately before retirement, under the following conditions:
(a) The continuation requirement of this subdivision applies only to a former employee
who is receiving a disability benefit or an annuity from a Minnesota public pension plan
other than a volunteer firefighter plan, or who has met age and service requirements necessary
to receive an annuity from such a plan.
(b) Until deleted text begin thedeleted text end new text begin a new text end former employee new text begin who is a member of the public employees police and
fire retirement plan or local government correctional service retirement plan of the Public
Employees Retirement Association new text end reaches age 65, the former employee and dependents
must be pooled in the same group as active employees for purposes of establishing premiums
and coverage for hospital, medical, and dental insurance. However, a former employee
under the age of 65 who is enrolled in Medicare Parts A and B due to the former employee's
disability and for whom Medicare's obligation to pay claims is primary, and the former
employee's dependents, must be pooled in the same group for purposes of this paragraph
as former employees who have reached age 65.
(c) A former employee may receive dependent coverage only if the employee received
dependent coverage immediately before leaving employment. This subdivision does not
require dependent coverage to continue after the death of the former employee. For purposes
of this subdivision, "dependent" has the same meaning for former employees as it does for
active employees in the unit of local government.
(d) Coverage for a former employee and dependents may not discriminate on the basis
of evidence of insurability or preexisting conditions unless identical conditions are imposed
on active employees in the group that the employee left.
(e) The former employee must pay the entire premium for continuation coverage, except
as otherwise provided in a collective bargaining agreement or personnel policy. A unit of
local government may discontinue coverage if a former employee fails to pay the premium
within the deadline provided for payment of premiums under federal law governing insurance
continuation.
(f) An employer must notify an employee before termination of employment of the
options available under this subdivision, and of the deadline for electing to continue to
participate.
(g) A former employee must notify the employer of intent to participate within the
deadline provided for notice of insurance continuation under federal law. A former employee
who does not elect to continue participation does not have a right to reenter the employer's
group insurance program.
(h) A former employee who initially selects dependent coverage may later drop dependent
coverage while retaining individual coverage. A former employee may not drop individual
coverage and retain dependent coverage.
(i) This subdivision does not limit rights granted to former employees under other state
or federal law, or under collective bargaining agreements or personnel plans.
(j) Unless otherwise provided by a collective bargaining agreement, if retired employees
were not permitted to remain in the active employee group prior to August 1, 1992, a public
employer may assess active employees through payroll deduction for all or part of the
additional premium costs from the inclusion of retired employees in the active employee
group. This paragraph does not apply to employees covered by section 179A.03, subdivision
7.
(k) Notwithstanding section 179A.20, subdivision 2a, insurance continuation under this
subdivision may be provided for in a collective bargaining agreement or personnel policy.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 5.
Minnesota Statutes 2016, section 471.617, subdivision 4, is amended to read:
Subd. 4.
Exclusive representative.
(a) No statutory or home rule charter city or county
or school district or instrumentality of any of them shall adopt a self insured 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 deleted text begin and agreement by the exclusive representative that represents
the largest number of employees to be included in the plandeleted text end .
(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, 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 benefitsdeleted text begin , and also obtain approval for the proposed action by the
exclusive representative that represents the largest number of employees included in the
plandeleted text end . All assets from the trust fund must be audited before closuredeleted text begin , and remaining assets
must be dedicated for use for health insurance benefits for all individuals currently receiving
health benefitsdeleted text end . 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.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 6. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2016, section 471.6161, subdivision 5,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
APPENDIX
Repealed Minnesota Statutes: 17-3476
471.6161 GROUP INSURANCE; GOVERNMENTAL UNITS.
Subd. 5.
Collective bargaining.
The aggregate value of benefits provided by a group insurance contract for employees covered by a collective agreement shall not be reduced, unless the public employer and exclusive representative of the employees of an appropriate bargaining unit, certified under section 179A.12, agree to a reduction in benefits.