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Office of the Revisor of Statutes

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

                            CHAPTER 378-S.F.No. 1755 
                  An act relating to education; establishing a committee 
                  to gather information and make recommendations for the 
                  design of a school employee health insurance plan; 
                  authorizing raffles to support school district 
                  programs; appropriating money; amending Minnesota 
                  Statutes 2000, section 609.761, by adding a 
                  subdivision; proposing coding for new law in Minnesota 
                  Statutes, chapter 62A. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  [62A.661] [SCHOOL EMPLOYEE INSURANCE PLAN.] 
           Subdivision 1.  [DEFINITIONS.] For purposes of this section:
           (1) "eligible employee" means a person who is insurance 
        eligible and is employed by an eligible employer or is insurance 
        eligible through an eligible employer on some other basis; and 
           (2) "eligible employer" means a school 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; an education unit organized under 
        section 471.59; a charter school organized under section 
        124D.10; or an exclusive representative of employees of an 
        eligible employer or statewide affiliate. 
           Subd. 2.  [STUDY AND DESIGN COMMITTEE.] (a) The school 
        employee insurance plan study and design committee consists of: 
           (1) seven members representing exclusive representatives of 
        eligible employees, appointed by exclusive representatives, as 
        provided in paragraph (b); and 
           (2) seven members representing eligible employers, 
        appointed by the Minnesota school boards association. 
           (b) The seven members of the committee who represent 
        statewide affiliates of exclusive representatives of eligible 
        employees are appointed as follows:  four members appointed by 
        Education Minnesota and one member each appointed by the Service 
        Employees International Union, the Minnesota State Employees 
        Association, and American Federation of State, County, and 
        Municipal Employees. 
           (c) Appointing authorities must make their appointments no 
        later than 30 days after the effective date of this section. 
           (d) Committee members are eligible for compensation and 
        expense reimbursement under section 15.0575, subdivision 3. 
           Subd. 3.  [COLLECTION OF INFORMATION.] The committee 
        established under subdivision 2 must collect and analyze 
        information from health plans currently providing health 
        coverage to eligible employers, whether the health plan is 
        insured or self-insured.  Health plans providing coverage to 
        employees of eligible employers on the effective date of this 
        section must provide to the committee nonidentifiable aggregate 
        data to the extent permitted under applicable state and federal 
        law.  The information must include data relating to employee 
        group demographics and claims experience.  Nothing in this 
        section requires disclosure of proprietary information or data 
        classified as nonpublic data or confidential data on individuals.
           Subd. 4.  [DESCRIPTION OF STUDY.] The committee established 
        under subdivision 2 must study the feasibility and desirability 
        of a school employee health insurance plan for eligible 
        employees of eligible employers.  The study must address the 
        issues of costs, coverage provided, financial feasibility and 
        solvency, and management.  The study must compare: 
           (1) purchase of fully insured coverage through a pooling 
        arrangement; 
           (2) use of a multiple employer welfare arrangement under 
        chapter 62H; and 
           (3) coverage otherwise available to school districts 
        through existing sources. 
        The study must consider health insurance pools of various sizes, 
        including a pool that would include all eligible employers as 
        one option.  The study must consider the desirability and 
        effects of the pool on eligible employers of various sizes, 
        financial resources, and geographic locations within the state.  
        The study may consider the inclusion of nonpublic schools in the 
        pool, including any limitations on plan design and effects on 
        regulation and costs resulting from the inclusion of nonpublic 
        employees.  
           Subd. 5.  [PLAN DESIGN.] Using the information collected 
        and analyzed under subdivisions 3 and 4, the committee shall 
        recommend specifications for a health insurance plan to serve 
        eligible employees, including the plan's structure, benefits, 
        approximate premiums, governance, operations, solvency, and 
        oversight.  Any recommended plan must incorporate, as a key 
        component, consumer education, including wellness programs and 
        measures encouraging the wise use of health coverage, with the 
        goal of premium reduction and cost containment.  The 
        recommendation must include the projected costs to implement the 
        plan. 
           Subd. 6.  [WORK SCHEDULE.] By June 1, 2003, the committee 
        must complete the collection and analysis of information under 
        subdivisions 3 and 4 and submit an interim written report to the 
        legislature.  By January 15, 2004, the committee must complete 
        its preparation of a plan design under subdivision 5 and submit 
        its final written report to the legislature, including a 
        detailed plan design.  If the final report recommends 
        legislation, the report must include a draft of the 
        legislation.  Both reports must be submitted in compliance with 
        sections 3.195, subdivision 1, and 3.197. 
           Subd. 7.  [ASSISTANCE TO THE COMMITTEE.] (a) The committee, 
        or the commissioner of commerce on its behalf, may contract for 
        actuarial, legal, and other services necessary to carry out its 
        duties. 
           (b) The commissioner of commerce, as requested by the 
        committee and in consultation with the commissioner of employee 
        relations, shall provide staff assistance to the committee, 
        including facilitating meetings; research and writing; data 
        collection; providing or contracting for actuarial, legal, and 
        other services; and other staff assistance as appropriate. 
           (c) Laws 2002, chapter 220, article 10, sections 37 and 38, 
        do not apply to any contracts or hiring necessary to implement 
        this section. 
           Subd. 8.  [EXPIRATION.] (a) The committee expires upon 
        adjournment sine die of the 2004 regular legislative session. 
           (b) This section expires July 1, 2004. 
           Sec. 2.  Minnesota Statutes 2000, section 609.761, is 
        amended by adding a subdivision to read: 
           Subd. 5.  [HIGH SCHOOL RAFFLES.] Sections 609.755 and 
        609.76 do not prohibit a raffle, as defined in section 349.12, 
        subdivision 33, conducted by a school district or a nonprofit 
        organization organized primarily to support programs of a school 
        district, if the following conditions are complied with: 
           (1) tickets for the raffle may only be sold and the drawing 
        conducted at a high school event sponsored by a school district; 
           (2) tickets may only be sold to persons attending the 
        event; 
           (3) the drawing must be held during or immediately after 
        the conclusion of the event; and 
           (4) one-half of the gross receipts from the sale of tickets 
        must be awarded as prizes for the raffle, and the remaining 
        one-half may only be expended to defray the school district's 
        costs of sending event participants to high school activities 
        held at other locations. 
           Sec. 3.  [APPROPRIATION.] 
           $670,000 is appropriated in fiscal year 2003 from the 
        general fund to the commissioner of commerce for purposes of 
        section 1.  The base for this program is $670,000 for fiscal 
        year 2004 only. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day following final 
        enactment. 
           Presented to the governor May 15, 2002 
           Vetoed by the governor May 18, 7:12 p.m. 
           Reconsidered and approved by the legislature after the 
        governor's veto May 18, 2002