Minnesota Session Laws - 2026 Regular Session

CHAPTER 66--S.F.No. 3887

An act

relating to local government; allowing towns and watershed districts to self-insure for certain employee health benefits; making technical changes;

amending Minnesota Statutes 2024, section 471.617, subdivisions 1, 2, 4, 4a, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2024, section 471.617, subdivision 1, is amended to read:

Subdivision 1.

If more than 100 employees; conditions.

A statutory or home rule charter city, county, new text begin town, new text end school district, new text begin watershed district, watershed management organization, new text end or instrumentality thereof which has more than 100 employees, may by ordinance or resolution self-insure for any employee health benefits including long-term disability, but not for employee life benefits. Any self-insurance plan shall provide all benefits which are required by law to be provided by group health insurance policies. Self-insurance plans must be certified as provided by section 62E.05 and must be filed and certified by the Department of Commerce before they are issued or delivered to any person in this state.

Sec. 2.

Minnesota Statutes 2024, section 471.617, subdivision 2, is amended to read:

Subd. 2.

Jointly.

Any two or more statutory or home rule charter cities, counties, new text begin towns, new text end school districts, new text begin watershed districts, watershed management organizations, new text end or instrumentalities thereof which together have more than 100 employees may jointly self-insure for any employee health benefits including long-term disability, but not for employee life benefits, subject to the same requirements as an individual self-insurer under subdivision 1. Self-insurance pools under this section are subject to section 62L.045. A self-insurance pool established and operated by one or more service cooperatives governed by section 123A.21 to provide coverage described in this subdivision qualifies under this subdivision, but the individual school district members of such a pool shall not be considered to be self-insured for purposes of section 471.6161, subdivision 8, paragraph (g). The commissioner of commerce may adopt rules pursuant to chapter 14, providing standards or guidelines for the operation and administration of self-insurance pools.

Sec. 3.

Minnesota Statutes 2024, section 471.617, subdivision 4, is amended to read:

Subd. 4.

Exclusive representative.

(a) No statutory or home rule charter city deleted text begin or deleted text end new text begin , new text end county deleted text begin or deleted text end new text begin , town, new text end school district new text begin , watershed district, watershed management organization, new text end or instrumentality of any of them shall adopt a deleted text begin self insured deleted text end new text begin self-insured new text end health benefit plan for any employees represented by an exclusive representative certified pursuant to section 179A.12 without prior notification and consultation on ten days' written notice to the exclusive representative and agreement by the exclusive representative that represents the largest number of employees to be included in the plan.

(b) Prior to a decision to dissolve any self-insurance, trust fund, or dedicated insurance fund created by a single statutory or home rule charter city, county, new text begin town, new text end school district, new text begin watershed district, watershed management organization, new text end or instrumentality of any of them, either by ordinance or resolution, the employer must provide 30 days' written notice to each exclusive representative of employees and each individual currently receiving health benefits, and also obtain approval for the proposed action by the exclusive representative that represents the largest number of employees included in the plan. All assets from the trust fund must be audited before closure, and remaining assets must be dedicated for use for health insurance benefits for all individuals currently receiving health benefits. This paragraph does not apply to joint self-insurance trusts or pools.

(c) The assets or liabilities of a joint self-insurance trust or pool that is dissolved must be distributed to members of the joint trust or pool in accordance with the joint trust or pool agreement, if any.

Sec. 4.

Minnesota Statutes 2024, section 471.617, subdivision 4a, is amended to read:

Subd. 4a.

May choose, pay for insurance.

A statutory or home rule charter city, county, new text begin town, new text end school district, new text begin watershed district, watershed management organization, new text end or instrumentality of any of these entities with a self-insurance health benefit plan, may, upon request of the exclusive representative of its employees as certified pursuant to section 179A.12, allow the employees of the exclusive representative to enroll, at their own expense, in the health insurance benefit plan.

Sec. 5.

Minnesota Statutes 2024, section 471.617, is amended by adding a subdivision to read:

new text begin Subd. 7. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "watershed management organization" has the meaning under section 103B.205, subdivision 13. new text end

Presented to the governor May 4, 2026