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Minnesota Legislature

Office of the Revisor of Statutes

SF 1689

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 05/01/2014 10:42am

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to insurance; authorizing certain benefits for Minnesota FAIR plan
employees; providing certain conforming and technical changes; amending
Minnesota Statutes 2012, sections 43A.27, subdivision 2; 65A.35, subdivision 5.


Section 1.

Minnesota Statutes 2012, section 43A.27, subdivision 2, is amended to read:

Subd. 2.

Elective eligibility.

The following persons, if not otherwise covered
by section 43A.24, may elect coverage for themselves or their dependents at their own

(1) a state employee, including persons on layoff from a civil service position as
provided in collective bargaining agreements or a plan established pursuant to section

(2) an employee of the Board of Regents of the University of Minnesota, including
persons on layoff, as provided in collective bargaining agreements or by the Board of

(3) an officer or employee of the State Agricultural Society, State Horticultural
Society, Sibley House Association, Minnesota Humanities Center, Minnesota Area
Industry Labor Management Councils, Minnesota International Center, Minnesota
Academy of Science, Science Museum of Minnesota, Minnesota Safety Council, state
Office of Disabled American Veterans, state Office of the American Legion and its
auxiliary, state Office of Veterans of Foreign Wars and its auxiliary, or state Office of the
Military Order of the Purple Heart;

(4) a civilian employee of the adjutant general who is paid from federal funds and
who is not eligible for benefits from any federal civilian employee group life insurance
or health benefits program; deleted text beginand
deleted text end

(5) an officer or employee of the State Capitol Credit Union or the Highway Credit
Uniondeleted text begin.deleted text endnew text begin; and
new text end

new text begin (6) an employee of the joint underwriting association pursuant to section 62I.121 or
Minnesota FAIR plan pursuant to section 65A.35, subdivision 5, unless the commissioner
determines that making these employees eligible to purchase this coverage would cause
the state employee group insurance program to lose its status as a governmental plan or
would cause the program to be treated as a multiemployer welfare arrangement.
new text end

Sec. 2.

Minnesota Statutes 2012, section 65A.35, subdivision 5, is amended to read:

Subd. 5.


(1) The Minnesota FAIR plan is administered by a board
of nine directors, five of whom are elected by the members of the plan and four who
represent the public. Public directors may include licensed insurance agents. Public
directors are appointed by the commissioner. No less than two elected directors must be
representatives of domestic insurers. In the election of directors, each member of the
Minnesota FAIR plan is allotted votes bearing the same ratio to the total number of votes
to be cast as its degree of participation in the plan bears to the total participation.

(2) Any vacancy among the elected directors must be filled by a vote of the other
elected directors.

(3) If at any time the members fail to elect the required number of directors to the
board, or a vacancy remains unfilled for more than 15 days, the commissioner may appoint
the directors necessary to constitute a full board of directors.

(4) Vacancies among directors appointed by the commissioner must be filled by
appointment by the commissioner. A person so appointed serves until the end of the
term of the director the person is replacing.

(5) All public directors serve for a period of two years. The terms of all public
directors begin on July 1 of the year their appointments begin.

(6) The plan of operation must provide for adequate compensation of public
directors. A per diem amount and a procedure for reimbursement of expenses incurred
in the discharge of their duties must be included in the plan. Private directors are not
eligible for compensation.

new text begin (7) At the option of the board, employees may participate in an insurance plan
administered by the commissioner of management and budget under chapter 43A, except
as otherwise provided in section 43A.27, subdivision 2, clause (6).
new text end