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HF 2033

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 04/01/1997

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to the state fund mutual insurance company; 
  1.3             providing for the board of directors at a certain 
  1.4             time; amending Minnesota Statutes 1996, section 
  1.5             176A.02, subdivision 2. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 176A.02, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [BOARD OF DIRECTORS.] The board of directors 
  1.10  consists of seven members and the commissioner of labor and 
  1.11  industry and the manager of the fund who shall be ex officio 
  1.12  members.  Each director shall hold office until a successor is 
  1.13  appointed and qualifies.  Each director shall represent a 
  1.14  policyholder and may be an employee of a policyholder.  A 
  1.15  policyholder may designate a person to represent them on the 
  1.16  board.  The initial board of directors shall be appointed by the 
  1.17  governor and shall consist of seven members and the commissioner 
  1.18  of labor and industry.  Each member of the initial board shall 
  1.19  be either an employer or employee.  If the fund is operational 
  1.20  and issuing policies upon the expiration of the terms of the 
  1.21  initial board and thereafter, the governor shall appoint every 
  1.22  other director until the governor has made four appointments.  
  1.23  The remaining three directors shall be chosen by the fund's 
  1.24  policyholders.  In addition to the commissioner, no more than 
  1.25  one member of the board shall be a representative of a 
  2.1   governmental entity.  At least two members of the board shall 
  2.2   represent private, for profit, enterprises.  No member of the 
  2.3   board may represent or be an employee of an insurance company.  
  2.4      The membership terms shall be as provided in section 
  2.5   15.0575.  The membership compensation shall be set by the board. 
  2.6      The board shall annually elect a chair from among its 
  2.7   members and other officers it deems necessary for the 
  2.8   performance of its duties.  
  2.9      Upon the repayment of all principal and payment of the 
  2.10  associated accrued interest on the guaranty fund certificates 
  2.11  issued by the fund to the state of Minnesota, this subdivision 
  2.12  no longer applies.  On the date of repayment, the commissioner 
  2.13  of labor and industry shall no longer be a member of the fund's 
  2.14  board of directors.  The board seat shall be filled in the 
  2.15  manner prescribed by the fund's articles of incorporation to 
  2.16  fill unexpired terms of policyholder-elected board members.  At 
  2.17  their next annual meeting, policyholders shall elect an 
  2.18  individual to fill the board seat for a full term. 
  2.19     When governor-appointed board members' terms expire after 
  2.20  the date of repayment, they will be replaced by board members 
  2.21  elected by the fund's policyholders. 
  2.22     Terms of the board members shall continue to be in 
  2.23  accordance with section 15.0575 until such time as the 
  2.24  policyholders amend the fund's articles of incorporation 
  2.25  specifying a different term. 
  2.26     Any guaranty fund certificates held by a person other than 
  2.27  the state of Minnesota shall have voting rights as provided in 
  2.28  the certificates and chapter 66A.