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Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1989 

                        CHAPTER 90-H.F.No. 1440 
           An act relating to local government; requiring 
          political subdivisions to request proposals for group 
          insurance coverage; amending Minnesota Statutes 1988, 
          section 43A.316, subdivision 10; proposing coding for 
          new law in Minnesota Statutes, chapter 471; repealing 
          Minnesota Statutes 1988, section 471.616. 
    Section 1.  Minnesota Statutes 1988, section 43A.316, 
subdivision 10, is amended to read: 
    Subd. 10.  [BIDDING REQUIREMENT EXEMPTION.] The public 
employee insurance plan is exempt from the requirements imposed 
by section 471.616, subdivision 1 2 of this act. 
    Subdivision 1.  [GROUP INSURANCE COVERAGE.] "Group 
insurance coverage" means benefit coverage provided to a group 
through a carrier authorized under chapters 61A, 62A, 62C, and 
62D to do business in the state. 
    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 
carriers 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 carrier proposals, 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. 
    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 the carrier on benefits, premiums, and other 
contract terms.  Carriers applying 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 
a carrier. 
    Subd. 4.  [CONTRACT LENGTH; NEGOTIATION.] Group insurance 
contracts may not exceed five years in length, including all 
extensions.  The political subdivision shall request proposals 
for coverage at least once every 60 months.  Employees may be 
added to an existing group pursuant to a joint powers agreement 
under section 471.59. 
    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. 
    Subd. 6.  [FILING OF CONTRACT.] Every political subdivision 
contracting for and providing group insurance coverage as 
provided in this section shall file with the clerk or other 
comparable officer of the subdivision a copy of the group 
insurance contract, and make the copy available for public 
     Subd. 7.  [TEMPORARY EXEMPTION.] Political subdivisions 
currently providing group insurance coverage and benefits 
through a contract awarded by a competitive bid process under 
section 471.616 are exempt from the requirements of this section 
for the period during which the existing contract remains in 
force.  Upon expiration of the existing contract, a political 
subdivision must adhere to the request for proposal process 
outlined in this section. 
    Sec. 3.  [REPEALER.] 
    Minnesota Statutes 1988, section 471.616, is repealed. 
     Sec. 4.  [EFFECTIVE DATE.] 
    This act is effective the day following enactment. 
    Presented to the governor May 5, 1989 
    Signed by the governor May 9, 1989, 6:00 p.m.

Official Publication of the State of Minnesota
Revisor of Statutes