Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 491-H.F.No. 2435 
           An act relating to the department of employee 
          relations; public employment; removing a committee's 
          expiration date; modifying retirement program options; 
          expanding a bidding requirement exemption; amending 
          Minnesota Statutes 1990, section 43A.316, subdivisions 
          4, 6, and 10; Minnesota Statutes 1991 Supplement, 
          section 43A.316, subdivision 8; repealing Laws 1990, 
          chapter 589, article 2, section 3. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 43A.316, 
subdivision 4, is amended to read: 
    Subd. 4.  [LABOR-MANAGEMENT COMMITTEE.] The 
labor-management committee consists of ten members appointed by 
the commissioner.  The labor-management committee must comprise 
five members who represent employees, including at least one 
retired employee, and five members who represent eligible 
employers.  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.  The commissioner shall consult with the labor-management 
committee in major decisions that affect the plan.  The 
committee shall study issues relating to the insurance plan 
including, but not limited to, flexible benefits, utilization 
review, quality assessment, and cost efficiency.  The committee 
expires as provided in section 15.059, subdivision 5. 
    Sec. 2.  Minnesota Statutes 1990, section 43A.316, 
subdivision 6, is amended to read: 
    Subd. 6.  [COVERAGE.] (a) By January 1, 1989, the 
commissioner shall announce the benefits of the plan.  The plan 
shall include employee hospital, medical, dental, and life 
insurance for employees and hospital and medical benefits for 
dependents.  Health maintenance organization options and other 
delivery system options shall may be provided if they are 
available, cost effective, and capable of servicing the number 
of people covered in the plan.  Participation in optional 
coverages may be provided by collective bargaining agreements.  
For employees not represented by an exclusive representative, 
the employer may offer the optional coverages to eligible 
employees and their dependents provided in the plan. 
     (b) The commissioner, with the assistance of the 
labor-management committee, shall periodically assess whether it 
is financially feasible for the plan to offer or to continue an 
individual retiree program that has competitive premium rates 
and benefits.  If the commissioner determines it to be feasible 
to offer an individual retiree program, the commissioner shall 
announce the applicable benefits, premium rates, and terms of 
participation.  Eligibility to participate in the individual 
retiree program is governed by subdivision 8, but applies to 
retirees of eligible employers that do not participate in the 
plan and to those retirees' dependents and surviving spouses. 
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
43A.316, subdivision 8, is amended to read: 
    Subd. 8.  [CONTINUATION OF COVERAGE.] (a) A former employee 
of an employer participating in the plan who is 55 years old or 
older and is receiving a public pension disability benefit or an 
annuity or is 55 years old or older and has met the age and 
service requirements necessary to receive an annuity under 
chapter 353, 353C, 354, 354A, 356, 422A, 423, 423A, or 424 is, 
and the former employee's dependents, are eligible to 
participate in the plan.  A former employee who is 65 years old 
or older and is not enrolled in Medicare is not eligible to 
participate in the plan.  This participation is at the person's 
expense unless a collective bargaining agreement or personnel 
policy provides otherwise.  Premiums for these participants must 
be established by the commissioner.  The commissioner shall 
establish sets of health insurance premiums for various classes 
including but not limited to:  
    (1) all former employees eligible under this paragraph who 
are under age 65; 
    (2) all former employees eligible under this paragraph who 
are 65 years old or older and are enrolled in Medicare; and 
    (3) all former employees eligible under this paragraph 
whose group participates in the plan. 
    The commissioner may provide policy exclusions for 
preexisting conditions only when there is a break in coverage 
between a participant's coverage under a the employment-based 
group insurance plan as an employee and the participant's 
coverage under this section.  An employer shall notify an 
employee of the option to participate under this paragraph no 
later than the effective date of retirement.  The retired 
employee or the employer of a participating group on behalf of a 
current or retired employee shall notify the commissioner within 
30 days of the effective date of retirement of intent to 
participate in the plan according to the rules established by 
the commissioner. 
    (b) The spouse of a deceased, active, employee or former 
employee may purchase the benefits provided at premiums 
established by the commissioner if the spouse was a dependent 
under the active employee's or former employee's coverage under 
this section at the time of the death.  The spouse remains 
eligible to participate in the plan as long as the group that 
included the deceased employee or former employee participates 
in the plan.  Coverage under this clause must be coordinated 
with relevant insurance benefits provided through the federally 
sponsored Medicare program.  
    (c) The plan benefits must continue in the event of strike 
permitted by section 179A.18, if the exclusive representative 
chooses to have coverage continue and the employee pays the 
total monthly premiums when due.  
    (d) A participant who discontinues coverage may not 
reenroll. 
    Persons participating under these paragraphs shall make 
appropriate premium payments in the time and manner established 
by the commissioner. 
    Sec. 4.  Minnesota Statutes 1990, section 43A.316, 
subdivision 10, is amended to read: 
    Subd. 10.  [BIDDING REQUIREMENT EXEMPTION.] The public 
employee insurance plan and, where applicable, the employers 
participating in it are exempt from chapter chapters 60A, 62A, 
62C, 62D, 62E, and 62H, section 471.617, subdivisions 2 and 3, 
and the bidding requirements of section 471.6161. 
    Sec. 5.  [REPEALER.] 
     Laws 1990, chapter 589, article 2, section 3, is repealed. 
    Sec. 6.  [EFFECTIVE DATE.] 
    Sections 1 to 5 are effective the day after final enactment.
    Presented to the governor April 16, 1992 
    Signed by the governor April 20, 1992, 4:55 p.m.