SF 1835

as introduced - 88th Legislature (2013 - 2014) Posted on 02/28/2014 03:41pm

A bill for an act
relating to insurance; amending provisions relating to health coverage for school
district employees; appropriating money; amending Minnesota Statutes 2012,
sections 43A.316, by adding a subdivision; 123A.21, subdivisions 5, 6, 9;
123B.09, subdivision 12; 471.6161, subdivisions 1, 2, 3, by adding a subdivision;
471.895, subdivision 1; Minnesota Statutes 2013 Supplement, section 124D.10,
subdivision 8.

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

Section 1.

Minnesota Statutes 2012, section 43A.316, is amended by adding a
subdivision to read:

new text begin Subd. 11. new text end

new text begin Proposal from school district; response required. new text end

new text begin 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 such request within 60 days.
new text end

Sec. 2.

Minnesota Statutes 2012, section 123A.21, subdivision 5, is amended to read:

Subd. 5.

Duties and powers of SC board of directors.

The board of directors shall
have authority to maintain and operate a SC. Subject to the availability of necessary
resources, the powers and duties of this board shall include the following:

(a) The board of directors shall submit, by June 1 of each year to each participating
member, an annual plan which describes the objectives and procedures to be implemented
in assisting in resolution of the needs of the SC.

(b) The SC board of directors shall provide adequate office, service center, and
administrative facilities by lease, purchase, gift, or otherwise.

(c) The SC board of directors shall employ a central administrative staff and other
personnel as necessary to provide and support the agreed-upon programs and services.
The board may discharge staff and personnel pursuant to applicable provisions of law.
SC staff and personnel may participate in retirement programs and any other programs
available to public school staff and personnel.

(d) The SC board of directors may appoint special advisory committees composed
of superintendents, central office personnel, building principals, teachers, parents, lay
persons, and representatives from cities, counties, and other governmental units. new text begin The
committees are considered a committee of a public body for purposes of section 13D.01,
subdivision 1, paragraph (c).
new text end

(e) The SC board of directors may employ service area personnel pursuant to
licensure and certification standards developed by the appropriate state agency such as the
commissioner and the State Board of Teaching.

(f) The SC board of directors may enter into contracts with school boards of local
districts including school districts outside the SC area.

(g) The SC board of directors may enter into contracts with other public and private
agencies and institutions to provide administrative staff and other personnel as necessary
to furnish and support the agreed-upon programs and services.

(h) The SC board of directors shall exercise all powers and carry out all duties
delegated to it by members under provisions of the SC bylaws. The SC board of directors
shall be governed, when not otherwise provided, by applicable laws of the state.

(i) The SC board of directors shall submit an annual evaluation report of the
effectiveness of programs and services to the members by September 1 of each year
following the previous June 30 in which the programs and services were provided.

(j) The SC board is encouraged to establish cooperative, working relationships and
partnerships with postsecondary educational institutions, other public agencies, business,
and industry.

Sec. 3.

Minnesota Statutes 2012, section 123A.21, subdivision 6, is amended to read:

Subd. 6.

Appointment of advisory council.

There may be advisory councils
selected to give advice and counsel to the SC board of directors. The councils may be
composed of representatives from public and nonpublic schools, cities, counties, and other
governmental units. new text begin The advisory councils are considered to be a committee of a public
body for purposes of section 13D.01, subdivision 1, paragraph (c).
new text end

Sec. 4.

Minnesota Statutes 2012, section 123A.21, subdivision 9, is amended to read:

Subd. 9.

Financial support for the service cooperatives.

(a) Financial support
for SC programs and services shall be provided by participating members with private,
state, and federal financial support supplementing as available. The SC board of directors
may, in each year, for the purpose of paying any administrative, planning, operating,
or capital expenses incurred or to be incurred, assess and certify to each participating
school district, nonpublic school administrative unit, city, county, and other governmental
unit its proportionate share of all expenses. This share shall be based upon the extent of
participation by each school district, nonpublic school administrative unit, city, county, or
other governmental unit and shall be in the form of a service fee. Each participating school
district, nonpublic school administrative unit, city, county, or other governmental unit
shall remit its assessment to the SC board as provided in the SC bylaws. The assessments
shall be paid within the maximum levy limitations of each participating member. No
participating member shall have any additional liability for the debts or obligations of the
SC except that assessment which has been certified as its proportionate share and any
other liability the member assumes under section 123A.24, subdivisions 1 and 2.

(b) Any property acquired by the SC board is public property to be used for essential
public and governmental purposes which shall be exempt from all taxes and special
assessments levied by a city, county, state, or political subdivision thereof. If the SC is
dissolved, its property must be distributed to the members at the time of the dissolution.

(c) A member may elect to withdraw participation in the SC by a majority vote of its
full board membership and upon compliance with the applicable withdrawal provisions
of the SC organizational agreement. The withdrawal shall be effective on the June 30
following receipt by the board of directors of written notification of the withdrawal by
February 1 of the same year. Notwithstanding the withdrawal, the proportionate share
of any expenses already certified to the withdrawing member for the SC shall be paid to
the SC board.

(d) The SC is a public corporation and agency and its board of directors may make
application for, accept, and expend private, state, and federal funds that are available for
programs of the members.

(e) The SC is a public corporation and agency and as such, no earnings or interests
of the SC may inure to the benefit of an individual or private entity.

new text begin (f)(1) If money collected by an SC for the payment of insurance premiums that are
above the cost of that coverage is returned to the entity purchasing that coverage, that entity
must negotiate with the exclusive representative regarding the rebate amount attributable
to the proportionate number of insured lives covered by that exclusive representative.
new text end

new text begin (2) If there is no exclusive representative or if the employer and the exclusive
representative are unable to come to an agreement within 150 days, the remaining funds
shall be used to pay the full premium to the program for any employees not covered
by an agreement negotiated under this section until the proportionate rebate 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

Sec. 5.

Minnesota Statutes 2012, section 123B.09, subdivision 12, is amended to read:

Subd. 12.

Board to fix compensation.

The clerk, treasurer, and superintendent
of any district shall receive such compensation as may be fixed by the board. Unless
otherwise provided by law, the other members of the board shall also receive such
compensation as may be fixed by the board. All members of the board may receive
reimbursement for transportation at the rate provided for in section 471.665. new text begin No board
member or school district employee shall receive any compensation or benefits based on
incentives or other money provided to the school district by or from a source of group
insurance coverage referenced in section 471.6161, subdivision 1, except for a rebate
provided under section 123A.21, subdivision 9, paragraph (f).
new text end

Sec. 6.

Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 8, is
amended to read:

Subd. 8.

Federal, state, and local requirements.

(a) A charter school shall meet all
federal, state, and local health and safety requirements applicable to school districts.

(b) A school must comply with statewide accountability requirements governing
standards and assessments in chapter 120B.

(c) A school authorized by a school board may be located in any district, unless the
school board of the district of the proposed location disapproves by written resolution.

(d) A charter school must be nonsectarian in its programs, admission policies,
employment practices, and all other operations. An authorizer may not authorize a charter
school or program that is affiliated with a nonpublic sectarian school or a religious
institution. A charter school student must be released for religious instruction, consistent
with section 120A.22, subdivision 12, clause (3).

(e) Charter schools must not be used as a method of providing education or
generating revenue for students who are being home-schooled. This paragraph does not
apply to shared time aid under section 126C.19.

(f) The primary focus of a charter school must be to provide a comprehensive
program of instruction for at least one grade or age group from five through 18 years
of age. Instruction may be provided to people younger than five years and older than
18 years of age.

(g) A charter school may not charge tuition.

(h) A charter school is subject to and must comply with chapter 363A and section
121A.04.

(i) A charter school is subject to and must comply with the Pupil Fair Dismissal
Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
123B.34 to 123B.39.

(j) A charter school is subject to the same financial audits, audit procedures, and
audit requirements as a district, except as required under subdivision 6a. Audits must be
conducted in compliance with generally accepted governmental auditing standards, the
federal Single Audit Act, if applicable, and section 6.65. A charter school is subject
to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04;
118A.05; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with
the requirements of sections 123B.75 to 123B.83, except to the extent deviations are
necessary because of the program at the school. Deviations must be approved by the
commissioner and authorizer. The Department of Education, state auditor, legislative
auditor, or authorizer may conduct financial, program, or compliance audits. A charter
school determined to be in statutory operating debt under sections 123B.81 to 123B.83
must submit a plan under section 123B.81, subdivision 4.

(k) A charter school is a district for the purposes of tort liability under chapter 466.

(l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
subdivision 7; 121A.75; and 260B.171, subdivisions 3 and 5.

(m) A charter school is subject to the Pledge of Allegiance requirement under
section 121A.11, subdivision 3.

(n) A charter school offering online courses or programs must comply with section
124D.095.

(o) A charter school and charter school board of directors are subject to chapter 181.

(p) A charter school must comply with section 120A.22, subdivision 7, governing
the transfer of students' educational records and sections 138.163 and 138.17 governing
the management of local records.

(q) A charter school that provides early childhood health and developmental
screening must comply with sections 121A.16 to 121A.19.

(r) A charter school that provides school-sponsored youth athletic activities must
comply with section 121A.38.

(s) A charter school is subject to and must comply with continuing truant notification
under section 260A.03.

(t) A charter school must develop and implement a teacher evaluation and peer
review process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to (12).

(u) A charter school must adopt a policy, plan, budget, and process, consistent with
section 120B.11, to review curriculum, instruction, and student achievement and strive
for the world's best workforce.

new text begin (v) A charter school is subject to section 471.6161.
new text end

new text begin (w) A charter school is subject to section 471.895.
new text end

Sec. 7.

Minnesota Statutes 2012, section 471.6161, subdivision 1, is amended to read:

Subdivision 1.

Group insurance coverage.

new text begin For purposes of this section, new text end "group
insurance coverage" means benefit coverage provided to a group through deleted text begin a carrier deleted text end new text begin an
entity new text end authorized under deleted text begin chapters deleted text end new text begin chapter new text end 61A, 62A, 62C, deleted text begin and deleted text end new text begin or new text end 62D to do business in the
state. new text begin Group insurance coverage also includes coverage provided under section 43A.316
or 123A.21, subdivision 7.
new text end

Sec. 8.

Minnesota Statutes 2012, section 471.6161, subdivision 2, is amended to read:

Subd. 2.

Request for proposal.

Every political subdivision authorized by law to
purchase group insurance for its employees and providing or intending to provide group
insurance coverage and benefits for 25 or more of its employees shall request proposals
from and enter into contracts with deleted text begin carriers deleted text end new text begin entities referenced in subdivision 1 new text end that in the
judgment of the political subdivision are best qualified to provide coverage. The request
for proposals shall be in writing and at a minimum shall include: coverage to be provided,
criteria for evaluation of deleted text begin carrier deleted text end proposals new text begin from entities referenced in subdivision 1 new text end , and
the aggregate claims records for the appropriate period. A political subdivision may
exclude from consideration proposals requiring self-insurance. Public notice of the request
for proposals must be provided in a newspaper or trade journal at least 21 days before the
final date for submitting proposals.

Sec. 9.

Minnesota Statutes 2012, section 471.6161, subdivision 3, is amended to read:

Subd. 3.

Selection of carrier.

The political subdivision shall make benefit and
cost comparisons and evaluate the proposals using the written criteria. The political
subdivision may negotiate with deleted text begin the carrier deleted text end new text begin an entity referenced in subdivision 1 new text end on benefits,
premiums, and other contract terms. deleted text begin Carriers applying deleted text end new text begin Any entity providing group
insurance coverage to the political subdivision new text end must provide the political subdivision
with aggregate claims records for the appropriate period. The political subdivision must
prepare a written rationale for its decision before entering into a contract with deleted text begin a carrier deleted text end new text begin an
entity referenced in subdivision 1 new text end .

Sec. 10.

Minnesota Statutes 2012, section 471.6161, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin School districts; group insurance coverage. new text end

new text begin (a) Any entity providing
group insurance coverage to a school district must provide the school district with
nonidentifiable aggregate claims records for the most recently available 24 months within
30 days of the request.
new text end

new text begin (b) School districts shall request proposals for group insurance coverage as provided
in subdivision 2 from a minimum of three potential sources of coverage. One of these
requests must go to an administrator governed by chapter 43A. School districts opting
for self-insurance must also follow these provisions. School districts must make requests
for proposals 150 days prior to the expiration of either the existing contract or in the
odd-numbered year, whichever is earlier. The request for proposals must include the most
recently available 24 months of nonidentifiable aggregate claims data. The request for
proposals must be publicly released at or prior to its release to potential bidders.
new text end

new text begin (c) Entities referenced in subdivision 1:
new text end

new text begin (1) must submit renewal premium rates to school districts and exclusive
representatives of employees at least 90 days before the effective date of the premium
rate change; and
new text end

new text begin (2) must submit any proposed plan design changes to school districts and employees
at least 90 days before the effective date to ensure proper negotiations with bargaining
units. In the case of an administrator under chapter 43A, the administrator will be
considered to be in compliance if it is provided as soon as reasonably possible upon
completion of the negotiations process in which plan design changes are agreed to.
new text end

new text begin (d) School district contracts for group insurance must not be longer than two years
and any two-year contract must expire in the odd-numbered year.
new text end

new text begin (e) All bids and renewals shall be sealed upon receipt until they are all opened 90
days prior to the plan's renewal date. The bids shall be opened on the first business day
after the 90-day deadline in the presence of the exclusive representative, where applicable.
new text end

Sec. 11.

Minnesota Statutes 2012, section 471.895, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

(a) The definitions in this subdivision apply to this
section.

(b) "Gift" has the meaning given it in section 10A.071, subdivision 1.

(c) "Interested person" means a person or a representative of a person or association
that has a direct financial interest in a decision that a local official is authorized to make.

(d) "Local official" means new text begin :
new text end

new text begin (1) new text end an elected or appointed official of a county or city or of an agency, authority,
or instrumentality of a county or city new text begin ; and
new text end

new text begin (2) an elected or appointed member of a school board, a school superintendent, a
school principal, or a district school officer of any independent school district new text end .

Sec. 12. new text begin APPROPRIATION; RESPONSES TO BID REQUESTS.
new text end

new text begin $1,000,000 is appropriated for fiscal year 2015 from the general fund to the
commissioner of management and budget to comply with the requirements of Minnesota
Statutes, section 43A.316, and the cost of compliance shall be included in the base
thereafter. Notwithstanding any law to the contrary, this section does not expire.
new text end

Sec. 13. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 12 are effective July 1, 2014.
new text end