Bill Text: MN HF2180 | 2013-2014 | 88th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: School district employee health coverage provisions amended.

Spectrum: Moderate Partisan Bill (Democrat 9-2)

Status: (Passed) 2014-05-16 - Secretary of State Chapter 279 [HF2180 Detail]

Download: Minnesota-2013-HF2180-Introduced.html

1.1A bill for an act
1.2relating to insurance; amending provisions relating to health coverage for school
1.3district employees; appropriating money;amending Minnesota Statutes 2012,
1.4sections 43A.316, by adding a subdivision; 123A.21, subdivisions 5, 6, 9;
1.5123B.09, subdivision 12; 471.6161, subdivisions 1, 2, 3, by adding a subdivision;
1.6471.895, subdivision 1; Minnesota Statutes 2013 Supplement, section 124D.10,
1.7subdivision 8.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.9    Section 1. Minnesota Statutes 2012, section 43A.316, is amended by adding a
1.10subdivision to read:
1.11    Subd. 11. Proposal from school district; response required. Upon receipt of a
1.12request for a proposal from a school district pursuant to section 471.6161, subdivision 8,
1.13the public employees insurance program shall respond to such request within 60 days.

1.14    Sec. 2. Minnesota Statutes 2012, section 123A.21, subdivision 5, is amended to read:
1.15    Subd. 5. Duties and powers of SC board of directors. The board of directors shall
1.16have authority to maintain and operate a SC. Subject to the availability of necessary
1.17resources, the powers and duties of this board shall include the following:
1.18(a) The board of directors shall submit, by June 1 of each year to each participating
1.19member, an annual plan which describes the objectives and procedures to be implemented
1.20in assisting in resolution of the needs of the SC.
1.21(b) The SC board of directors shall provide adequate office, service center, and
1.22administrative facilities by lease, purchase, gift, or otherwise.
1.23(c) The SC board of directors shall employ a central administrative staff and other
1.24personnel as necessary to provide and support the agreed-upon programs and services.
2.1The board may discharge staff and personnel pursuant to applicable provisions of law.
2.2SC staff and personnel may participate in retirement programs and any other programs
2.3available to public school staff and personnel.
2.4(d) The SC board of directors may appoint special advisory committees composed
2.5of superintendents, central office personnel, building principals, teachers, parents, lay
2.6persons, and representatives from cities, counties, and other governmental units. The
2.7committees are considered a committee of a public body for purposes of section 13D.01,
2.8subdivision 1, paragraph (c).
2.9(e) The SC board of directors may employ service area personnel pursuant to
2.10licensure and certification standards developed by the appropriate state agency such as the
2.11commissioner and the State Board of Teaching.
2.12(f) The SC board of directors may enter into contracts with school boards of local
2.13districts including school districts outside the SC area.
2.14(g) The SC board of directors may enter into contracts with other public and private
2.15agencies and institutions to provide administrative staff and other personnel as necessary
2.16to furnish and support the agreed-upon programs and services.
2.17(h) The SC board of directors shall exercise all powers and carry out all duties
2.18delegated to it by members under provisions of the SC bylaws. The SC board of directors
2.19shall be governed, when not otherwise provided, by applicable laws of the state.
2.20(i) The SC board of directors shall submit an annual evaluation report of the
2.21effectiveness of programs and services to the members by September 1 of each year
2.22following the previous June 30 in which the programs and services were provided.
2.23(j) The SC board is encouraged to establish cooperative, working relationships and
2.24partnerships with postsecondary educational institutions, other public agencies, business,
2.25and industry.

2.26    Sec. 3. Minnesota Statutes 2012, section 123A.21, subdivision 6, is amended to read:
2.27    Subd. 6. Appointment of advisory council. There may be advisory councils
2.28selected to give advice and counsel to the SC board of directors. The councils may be
2.29composed of representatives from public and nonpublic schools, cities, counties, and other
2.30governmental units. The advisory councils are considered to be a committee of a public
2.31body for purposes of section 13D.01, subdivision 1, paragraph (c).

2.32    Sec. 4. Minnesota Statutes 2012, section 123A.21, subdivision 9, is amended to read:
2.33    Subd. 9. Financial support for the service cooperatives. (a) Financial support
2.34for SC programs and services shall be provided by participating members with private,
3.1state, and federal financial support supplementing as available. The SC board of directors
3.2may, in each year, for the purpose of paying any administrative, planning, operating,
3.3or capital expenses incurred or to be incurred, assess and certify to each participating
3.4school district, nonpublic school administrative unit, city, county, and other governmental
3.5unit its proportionate share of all expenses. This share shall be based upon the extent of
3.6participation by each school district, nonpublic school administrative unit, city, county, or
3.7other governmental unit and shall be in the form of a service fee. Each participating school
3.8district, nonpublic school administrative unit, city, county, or other governmental unit
3.9shall remit its assessment to the SC board as provided in the SC bylaws. The assessments
3.10shall be paid within the maximum levy limitations of each participating member. No
3.11participating member shall have any additional liability for the debts or obligations of the
3.12SC except that assessment which has been certified as its proportionate share and any
3.13other liability the member assumes under section 123A.24, subdivisions 1 and 2.
3.14(b) Any property acquired by the SC board is public property to be used for essential
3.15public and governmental purposes which shall be exempt from all taxes and special
3.16assessments levied by a city, county, state, or political subdivision thereof. If the SC is
3.17dissolved, its property must be distributed to the members at the time of the dissolution.
3.18(c) A member may elect to withdraw participation in the SC by a majority vote of its
3.19full board membership and upon compliance with the applicable withdrawal provisions
3.20of the SC organizational agreement. The withdrawal shall be effective on the June 30
3.21following receipt by the board of directors of written notification of the withdrawal by
3.22February 1 of the same year. Notwithstanding the withdrawal, the proportionate share
3.23of any expenses already certified to the withdrawing member for the SC shall be paid to
3.24the SC board.
3.25(d) The SC is a public corporation and agency and its board of directors may make
3.26application for, accept, and expend private, state, and federal funds that are available for
3.27programs of the members.
3.28(e) The SC is a public corporation and agency and as such, no earnings or interests
3.29of the SC may inure to the benefit of an individual or private entity.
3.30(f)(1) If money collected by an SC for the payment of insurance premiums that are
3.31above the cost of that coverage is returned to the entity purchasing that coverage, that entity
3.32must negotiate with the exclusive representative regarding the rebate amount attributable
3.33to the proportionate number of insured lives covered by that exclusive representative.
3.34(2) If there is no exclusive representative or if the employer and the exclusive
3.35representative are unable to come to an agreement within 150 days, the remaining funds
3.36shall be used to pay the full premium to the program for any employees not covered
4.1by an agreement negotiated under this section until the proportionate rebate funds are
4.2depleted. These funds shall be used for a proportional premium payment at the time it is
4.3necessary to deplete the balance.

4.4    Sec. 5. Minnesota Statutes 2012, section 123B.09, subdivision 12, is amended to read:
4.5    Subd. 12. Board to fix compensation. The clerk, treasurer, and superintendent
4.6of any district shall receive such compensation as may be fixed by the board. Unless
4.7otherwise provided by law, the other members of the board shall also receive such
4.8compensation as may be fixed by the board. All members of the board may receive
4.9reimbursement for transportation at the rate provided for in section 471.665. No board
4.10member or school district employee shall receive any compensation or benefits based on
4.11incentives or other money provided to the school district by or from a source of group
4.12insurance coverage referenced in section 471.6161, subdivision 1, except for a rebate
4.13provided under section 123A.21, subdivision 9, paragraph (f).

4.14    Sec. 6. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 8, is
4.15amended to read:
4.16    Subd. 8. Federal, state, and local requirements. (a) A charter school shall meet all
4.17federal, state, and local health and safety requirements applicable to school districts.
4.18    (b) A school must comply with statewide accountability requirements governing
4.19standards and assessments in chapter 120B.
4.20    (c) A school authorized by a school board may be located in any district, unless the
4.21school board of the district of the proposed location disapproves by written resolution.
4.22    (d) A charter school must be nonsectarian in its programs, admission policies,
4.23employment practices, and all other operations. An authorizer may not authorize a charter
4.24school or program that is affiliated with a nonpublic sectarian school or a religious
4.25institution. A charter school student must be released for religious instruction, consistent
4.26with section 120A.22, subdivision 12, clause (3).
4.27    (e) Charter schools must not be used as a method of providing education or
4.28generating revenue for students who are being home-schooled. This paragraph does not
4.29apply to shared time aid under section 126C.19.
4.30    (f) The primary focus of a charter school must be to provide a comprehensive
4.31program of instruction for at least one grade or age group from five through 18 years
4.32of age. Instruction may be provided to people younger than five years and older than
4.3318 years of age.
4.34    (g) A charter school may not charge tuition.
5.1    (h) A charter school is subject to and must comply with chapter 363A and section
5.2121A.04 .
5.3    (i) A charter school is subject to and must comply with the Pupil Fair Dismissal
5.4Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections
5.5123B.34 to 123B.39.
5.6    (j) A charter school is subject to the same financial audits, audit procedures, and
5.7audit requirements as a district, except as required under subdivision 6a. Audits must be
5.8conducted in compliance with generally accepted governmental auditing standards, the
5.9federal Single Audit Act, if applicable, and section 6.65. A charter school is subject
5.10to and must comply with sections 15.054; 118A.01; 118A.02; 118A.03; 118A.04;
5.11118A.05 ; 118A.06; 471.38; 471.391; 471.392; and 471.425. The audit must comply with
5.12the requirements of sections 123B.75 to 123B.83, except to the extent deviations are
5.13necessary because of the program at the school. Deviations must be approved by the
5.14commissioner and authorizer. The Department of Education, state auditor, legislative
5.15auditor, or authorizer may conduct financial, program, or compliance audits. A charter
5.16school determined to be in statutory operating debt under sections 123B.81 to 123B.83
5.17must submit a plan under section 123B.81, subdivision 4.
5.18    (k) A charter school is a district for the purposes of tort liability under chapter 466.
5.19    (l) A charter school must comply with chapters 13 and 13D; and sections 120A.22,
5.20subdivision 7
; 121A.75; and 260B.171, subdivisions 3 and 5.
5.21    (m) A charter school is subject to the Pledge of Allegiance requirement under
5.22section 121A.11, subdivision 3.
5.23    (n) A charter school offering online courses or programs must comply with section
5.24124D.095 .
5.25    (o) A charter school and charter school board of directors are subject to chapter 181.
5.26    (p) A charter school must comply with section 120A.22, subdivision 7, governing
5.27the transfer of students' educational records and sections 138.163 and 138.17 governing
5.28the management of local records.
5.29    (q) A charter school that provides early childhood health and developmental
5.30screening must comply with sections 121A.16 to 121A.19.
5.31    (r) A charter school that provides school-sponsored youth athletic activities must
5.32comply with section 121A.38.
5.33    (s) A charter school is subject to and must comply with continuing truant notification
5.34under section 260A.03.
5.35(t) A charter school must develop and implement a teacher evaluation and peer
5.36review process under section 122A.40, subdivision 8, paragraph (b), clauses (2) to (12).
6.1(u) A charter school must adopt a policy, plan, budget, and process, consistent with
6.2section 120B.11, to review curriculum, instruction, and student achievement and strive
6.3for the world's best workforce.
6.4(v) A charter school is subject to section 471.6161.
6.5(w) A charter school is subject to section 471.895.

6.6    Sec. 7. Minnesota Statutes 2012, section 471.6161, subdivision 1, is amended to read:
6.7    Subdivision 1. Group insurance coverage. For purposes of this section, "group
6.8insurance coverage" means benefit coverage provided to a group through a carrier an
6.9entity authorized under chapters chapter 61A, 62A, 62C, and or 62D to do business in the
6.10state. Group insurance coverage also includes coverage provided under section 43A.316
6.11or 123A.21, subdivision 7.

6.12    Sec. 8. Minnesota Statutes 2012, section 471.6161, subdivision 2, is amended to read:
6.13    Subd. 2. Request for proposal. Every political subdivision authorized by law to
6.14purchase group insurance for its employees and providing or intending to provide group
6.15insurance coverage and benefits for 25 or more of its employees shall request proposals
6.16from and enter into contracts with carriers entities referenced in subdivision 1 that in the
6.17judgment of the political subdivision are best qualified to provide coverage. The request
6.18for proposals shall be in writing and at a minimum shall include: coverage to be provided,
6.19criteria for evaluation of carrier proposals from entities referenced in subdivision 1, and
6.20the aggregate claims records for the appropriate period. A political subdivision may
6.21exclude from consideration proposals requiring self-insurance. Public notice of the request
6.22for proposals must be provided in a newspaper or trade journal at least 21 days before the
6.23final date for submitting proposals.

6.24    Sec. 9. Minnesota Statutes 2012, section 471.6161, subdivision 3, is amended to read:
6.25    Subd. 3. Selection of carrier. The political subdivision shall make benefit and
6.26cost comparisons and evaluate the proposals using the written criteria. The political
6.27subdivision may negotiate with the carrier an entity referenced in subdivision 1 on benefits,
6.28premiums, and other contract terms. Carriers applying Any entity providing group
6.29insurance coverage to the political subdivision must provide the political subdivision
6.30with aggregate claims records for the appropriate period. The political subdivision must
6.31prepare a written rationale for its decision before entering into a contract with a carrier an
6.32entity referenced in subdivision 1.

7.1    Sec. 10. Minnesota Statutes 2012, section 471.6161, is amended by adding a
7.2subdivision to read:
7.3    Subd. 8. School districts; group insurance coverage. (a) Any entity providing
7.4group insurance coverage to a school district must provide the school district with
7.5nonidentifiable aggregate claims records for the most recently available 24 months within
7.630 days of the request.
7.7(b) School districts shall request proposals for group insurance coverage as provided
7.8in subdivision 2 from a minimum of three potential sources of coverage. One of these
7.9requests must go to an administrator governed by chapter 43A. School districts opting
7.10for self-insurance must also follow these provisions. School districts must make requests
7.11for proposals 150 days prior to the expiration of either the existing contract or in the
7.12odd-numbered year, whichever is earlier. The request for proposals must include the most
7.13recently available 24 months of nonidentifiable aggregate claims data. The request for
7.14proposals must be publicly released at or prior to its release to potential bidders.
7.15(c) Entities referenced in subdivision 1:
7.16(1) must submit renewal premium rates to school districts and exclusive
7.17representatives of employees at least 90 days before the effective date of the premium
7.18rate change; and
7.19(2) must submit any proposed plan design changes to school districts and employees
7.20at least 90 days before the effective date to ensure proper negotiations with bargaining
7.21units. In the case of an administrator under chapter 43A, the administrator will be
7.22considered to be in compliance if it is provided as soon as reasonably possible upon
7.23completion of the negotiations process in which plan design changes are agreed to.
7.24(d) School district contracts for group insurance must not be longer than two years
7.25and any two-year contract must expire in the odd-numbered year.
7.26(e) All bids and renewals shall be sealed upon receipt until they are all opened 90
7.27days prior to the plan's renewal date. The bids shall be opened on the first business day
7.28after the 90-day deadline in the presence of the exclusive representative, where applicable.

7.29    Sec. 11. Minnesota Statutes 2012, section 471.895, subdivision 1, is amended to read:
7.30    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
7.31section.
7.32(b) "Gift" has the meaning given it in section 10A.071, subdivision 1.
7.33(c) "Interested person" means a person or a representative of a person or association
7.34that has a direct financial interest in a decision that a local official is authorized to make.
7.35(d) "Local official" means:
8.1(1) an elected or appointed official of a county or city or of an agency, authority,
8.2or instrumentality of a county or city; and
8.3(2) an elected or appointed member of a school board, a school superintendent, a
8.4school principal, or a district school officer of any independent school district.

8.5    Sec. 12. APPROPRIATION; RESPONSES TO BID REQUESTS.
8.6$1,000,000 is appropriated for fiscal year 2015 from the general fund to the
8.7commissioner of management and budget to comply with the requirements of Minnesota
8.8Statutes, section 43A.316, and the cost of compliance shall be included in the base
8.9thereafter. Notwithstanding any law to the contrary, this section does not expire.

8.10    Sec. 13. EFFECTIVE DATE.
8.11Sections 1 to 12 are effective July 1, 2014.
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