Minnesota Legislature
SF 446
2nd Engrossment - 88th Legislature (2013 - 2014) Posted on 03/14/2013 08:22am
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A bill for an act
relating to insurance; regulating the public employees insurance program;
allowing participation by certain school employers; amending Minnesota Statutes
2012, section 43A.316, subdivisions 2, 5, by adding subdivisions; proposing
coding for new law in Minnesota Statutes, chapter 43A; repealing Minnesota
Statutes 2012, section 43A.316, subdivision 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 43A.316, subdivision 2, is amended to read:
Subd. 2.
Definitions.
For the purpose of this section, the terms defined in this
subdivision have the meaning given them.
(a) Commissioner. "Commissioner" means the commissioner of management and
budget.
(b) Employee. "Employee" means:
(1) a person who is a public employee within the definition of section 179A.03,
subdivision 14, who is insurance eligible and is employed by an eligible employer;
(2) an elected public official of an eligible employer who is insurance eligible;
(3) a person employed by a labor organization or employee association certified as
an exclusive representative of employees of an eligible employer or by another public
employer approved by the commissioner, so long as the plan meets the requirements of a
governmental plan under United States Code, title 29, section 1002(32); or
(4) a person employed by a county or municipal hospital.
(c) Eligible employer. "Eligible employer" means:
(1) a public employer within the definition of section 179A.03, subdivision 15, that
is a town, county, city, school district as defined in section 120A.05, service cooperative
as defined in section 123A.21, intermediate district as defined in section 136D.01,
Cooperative Center for Vocational Education as defined in section 123A.22, regional
management information center as defined in section 123A.23, or an education unit
organized under the joint powers action, section 471.59; or
(2) an exclusive representative of employees, as defined in paragraph (b)new text begin , and its
state affiliatenew text end ;
(3) a county or municipal hospital; or
(4) another public employer approved by the commissioner.
(d) Exclusive representative. "Exclusive representative" means an exclusive
representative as defined in section 179A.03, subdivision 8.
(e) Labor-Management Committee. "Labor-Management Committee" means the
committee established by deleted text begin subdivision 4deleted text end new text begin section 43A.3161new text end .
(f) Program. "Program" means the statewide public employees insurance program
created by subdivision 3.
new text begin
(g) School employee. "School employee" means an employee of a school employer.
new text end
new text begin
(h) School employer. "School employer" means a district as defined in section
120A.05, a service cooperative as defined in section 123A.21, an intermediate district as
defined in section 136D.01, a cooperative center for vocational education as defined in
section 123A.22, a regional management information center as defined in section 123A.23,
or an education unit organized under a joint powers agreement under section 471.59.
new text end
Sec. 2.
Minnesota Statutes 2012, 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 program. 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 representative, 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 representative, 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 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
(g) A school employer that makes available health insurance coverage for
employees, either in a self-insured or fully insured arrangement, including those
purchasing coverage through a service cooperative as defined by section 123A.21, may
purchase health insurance coverage through the program, beginning January 1, 2014, as
contracts or agreements with providers that were in place upon enactment expire.
new text end
new text begin
(1) Employees not represented by an exclusive representative may enter the public
employee insurance program in the manner described in paragraph (c).
new text end
new text begin
(2) Exclusive representatives of school employers and nonrepresented employees
of school employers who do not enter the program on the date of initial eligibility for
participation shall be ineligible to participate until a period of four years has elapsed since
initial eligibility and may, at the discretion of the commissioner, be pooled and rated
separately from the other employees in the program for the first four years after entering
the program. This clause does not prohibit an employee from a district or exclusive
representative that has not declined participation from later becoming a member of the
program.
new text end
new text begin
(3) The decision of the school board of a school employer and an exclusive
representative of employees or, in the case of employees not represented by an exclusive
representative, the decision of the school board of a school employer, to not opt out of
entry into the program is irrevocable.
new text end
Sec. 3.
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 Nonidentifiable aggregate claims data from past coverage. new text end
new text begin
Upon
request by the commissioner, entities that are providing or have provided coverage to
eligible school employees, shall provide to the commissioner at no charge nonidentifiable
aggregate claims data for that coverage. The information must include data relating to
school employees' group benefit sets, demographics, claims experience, and any other data
or information deemed by the commissioner as necessary to accurately and appropriately
underwrite the risk of the school employees, notwithstanding section 13.203.
new text end
Sec. 4.
Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
to read:
new text begin Subd. 13. new text end
new text begin
Start-up funding; administration of ongoing revenues and expenses.
new text end
new text begin
(a) The commissioner of management and budget shall use the funds available in the
insurance trust fund under section 43A.316, subdivision 9, in the form of temporary
funding to pay for the administrative start-up costs and reserves necessary under this act.
In addition to the amounts of temporary funding, the commissioner shall determine the
amount of interest lost to the insurance trust fund as a result of the temporary funding.
new text end
new text begin
(b) The commissioner of management and budget shall impose an enrollment fee
upon the premium charged for the first three months of coverage under the school employee
insurance program created in this act sufficient to repay to the insurance trust fund the
loans provided to cover the start-up costs incurred by the commissioner under paragraph
(a), plus foregone interest to the insurance trust fund, as determined under paragraph (a).
The commissioner shall deposit the enrollment fees in the insurance trust fund.
new text end
new text begin
(c) All costs incurred and revenue received by the commissioner of management and
budget under this act in addition to those dealt with in paragraphs (a) and (b) shall, on an
ongoing basis, be deposited into and paid out of the insurance trust fund.
new text end
Sec. 5.
new text begin
[43A.3161] LABOR-MANAGEMENT COMMITTEE FOR SCHOOL
EMPLOYEES AND SCHOOL EMPLOYERS.
new text end
new text begin Subdivision 1. new text end
new text begin Membership. new text end
new text begin
The Labor-Management Committee consists of 14
members appointed to represent eligible school employers and eligible school employees
in equal numbers. The seven members who represent eligible school employers shall
consist of four appointed by the Minnesota School Boards Association and one each
appointed by the Minnesota Association of School Administrators, the Minnesota
Elementary School Principals Association, and the Minnesota Secondary School
Principals Association. The seven members who represent eligible school employees shall
consist of four appointed by Education Minnesota and one each appointed by the Service
Employees International Union; the American Federation of State, County, and Municipal
Employees; and the Minnesota School Employees Association.
new text end
new text begin Subd. 2. new text end
new text begin Appointments. new text end
new text begin
Appointing authorities shall appoint the first members by
September 1, 2013, for terms ending January 2, 2017. Thereafter, appointments shall be
made by the second Monday in January 2017 and every four years thereafter.
new text end
new text begin Subd. 3. new text end
new text begin Terms. new text end
new text begin
Except for the first appointees, terms shall be for four years,
terminating on the first Monday in January.
new text end
new text begin Subd. 4. new text end
new text begin Vacancies. new text end
new text begin
Vacancies shall be filled by appointment in the same manner
as appointment of the vacating member.
new text end
new text begin Subd. 5. new text end
new text begin First meeting. new text end
new text begin
The appointee of the Minnesota School Board Association
shall convene the first meeting by January 15, 2014, and act as chair until the committee
elects a chair. The committee shall elect a chair from among its members at its first meeting.
new text end
new text begin Subd. 6. new text end
new text begin Chair. new text end
new text begin
The committee shall annually elect a chair from its membership.
new text end
new text begin Subd. 7. new text end
new text begin Duties. new text end
new text begin
The committee shall study issues relating to the insurance program
including, but not limited to, flexible benefits, utilization review, quality assessment,
and cost efficiency.
new text end
new text begin Subd. 8. new text end
new text begin Program and plan design. new text end
new text begin
The commissioner shall consult with
the labor-management committee in major decisions that affect the program. The
commissioner and the committee must mutually agree to all plan design changes.
new text end
new text begin Subd. 9. new text end
new text begin Expenses. new text end
new text begin
Committee members are eligible for expense reimbursement in
the same manner and amount as authorized by the commissioner's plan adopted under
section 43A.18, subdivision 2.
new text end
new text begin Subd. 10. new text end
new text begin Report. new text end
new text begin
The committee shall report to the commissioner of management
and budget by June 30 of each year with its findings and recommendations relating to
the insurance program, flexible benefits, utilization review, quality assessment, and
cost-efficiency of the program.
new text end
new text begin Subd. 11. new text end
new text begin Sunset. new text end
new text begin
The committee expires when the program is no longer in operation.
new text end
Sec. 6. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2012, section 43A.316, subdivision 4,
new text end
new text begin
is repealed.
new text end