Bill Text: MN HF2180 | 2013-2014 | 88th Legislature | Engrossed
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-Engrossed.html
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-Engrossed.html
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, subdivision 10, by adding a subdivision; 123B.09, subdivision
1.512; 123B.75, by adding a subdivision; 471.6161, subdivisions 1, 3, by adding
1.6a subdivision; 471.895, subdivision 1; Minnesota Statutes 2013 Supplement,
1.7section 124D.10, subdivisions 4a, 11, 21.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2012, section 43A.316, subdivision 10, is amended to
1.10read:
1.11 Subd. 10. Exemption. The public employee insurance program and, where
1.12applicable, the employers participating in it are exempt from chapters 60A, 62A, 62C,
1.1362D, 62E, and 62H, section471.617 , subdivisions 2 and 3, and the bidding requirements of
1.14section471.6161 . The public employee insurance program must follow the requirements
1.15of section 471.6161, subdivision 8, paragraphs (a) and (c).
1.16 Sec. 2. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
1.17to read:
1.18 Subd. 11. Proposal from school district; response required. Upon receipt of a
1.19request for a proposal from a school district pursuant to section 471.6161, subdivision 8,
1.20the public employees insurance program shall respond to the request within 60 days.
1.21 Sec. 3. Minnesota Statutes 2012, section 123B.09, subdivision 12, is amended to read:
1.22 Subd. 12. Board to fix compensation. The clerk, treasurer, and superintendent
1.23of any district shall receive such compensation as may be fixed by the board. Unless
2.1otherwise provided by law, the other members of the board shall also receive such
2.2compensation as may be fixed by the board. All members of the board may receive
2.3reimbursement for transportation at the rate provided for in section471.665 . No board
2.4member or school district employee shall receive any compensation or benefits based on
2.5incentives or other money provided to the school district by or from a source of group
2.6insurance coverage referenced in section 471.6161, subdivision 1, except for a refund
2.7provided under section 123B.75, subdivision 10.
2.8 Sec. 4. Minnesota Statutes 2012, section 123B.75, is amended by adding a subdivision
2.9to read:
2.10 Subd. 10. Insurance premium rebates. (a) If money collected by an entity
2.11providing group insurance under chapter 471.6161, subdivision 1, for the payment of
2.12insurance premiums is above the cost of that coverage and returned to the school district
2.13purchasing that coverage as a refund, that school district must negotiate with the exclusive
2.14representative regarding the refund amount attributable to the proportionate number of
2.15insured lives covered by that exclusive representative.
2.16(b) If there is no exclusive representative or if the employer and the exclusive
2.17representative are unable to come to an agreement within 150 days, the remaining refunds
2.18shall be used to pay the full premium to the program for any employees not covered by
2.19an agreement negotiated under this section until the proportionate refunds are depleted.
2.20These refunds shall be used for a proportional premium payment at the time it is necessary
2.21to deplete the balance.
2.22 Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 4a, is
2.23amended to read:
2.24 Subd. 4a. Conflict of interest. (a) An individual is prohibited from serving as a
2.25member of the charter school board of directors if the individual, an immediate family
2.26member, or the individual's partner is a full or part owner or principal with a for-profit or
2.27nonprofit entity or independent contractor with whom the charter school contracts, directly
2.28or indirectly, for professional services, goods, or facilities. An individual is prohibited
2.29from serving as a board member if an immediate family member is an employee of the
2.30school. A violation of this prohibition renders a contract voidable at the option of the
2.31commissioner or the charter school board of directors. A member of a charter school
2.32board of directors who violates this prohibition is individually liable to the charter school
2.33for any damage caused by the violation.
3.1 (b) No member of the board of directors, employee, officer, or agent of a charter
3.2school shall participate in selecting, awarding, or administering a contract if a conflict
3.3of interest exists. A conflict exists when:
3.4 (1) the board member, employee, officer, or agent;
3.5 (2) the immediate family of the board member, employee, officer, or agent;
3.6 (3) the partner of the board member, employee, officer, or agent; or
3.7 (4) an organization that employs, or is about to employ any individual in clauses
3.8(1) to (3),
3.9has a financial or other interest in the entity with which the charter school is contracting.
3.10A violation of this prohibition renders the contract void.
3.11 (c) Any employee, agent, or board member of the authorizer who participates
3.12in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
3.13nonrenewal process or decision is ineligible to serve on the board of directors of a school
3.14chartered by that authorizer.
3.15 (d) An individual may serve as a member of the board of directors if no conflict of
3.16interest under paragraph (a) exists.
3.17 (e) The conflict of interest provisions under this subdivision do not apply to
3.18compensation paid to a teacher employed as a teacher by the charter school or a teacher
3.19who provides instructional services to the charter school through a cooperative formed
3.20under chapter 308A when the teacher also serves on the charter school board of directors.
3.21 (f) A charter school board member, employee, or officer must not accept gifts as
3.22defined under section 10A.071, subdivision 1, paragraph (b), and must not request another
3.23person to give a gift to a board member, employee, or officer. A board member, employee,
3.24or officer must not receive compensation from a group health insurance provider.
3.25 Sec. 6. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 11, is
3.26amended to read:
3.27 Subd. 11. Employment and other operating matters. (a) A charter school must
3.28employ or contract with necessary teachers, as defined by section122A.15, subdivision 1 ,
3.29who hold valid licenses to perform the particular service for which they are employed in
3.30the school. The charter school's state aid may be reduced under section127A.43 if the
3.31school employs a teacher who is not appropriately licensed or approved by the board of
3.32teaching. The school may employ necessary employees who are not required to hold
3.33teaching licenses to perform duties other than teaching and may contract for other services.
3.34The school may discharge teachers and nonlicensed employees. The charter school board
3.35is subject to section181.932 . When offering employment to a prospective employee, a
4.1charter school must give that employee a written description of the terms and conditions
4.2of employment and the school's personnel policies.
4.3 (b) A person, without holding a valid administrator's license, may perform
4.4administrative, supervisory, or instructional leadership duties. The board of directors shall
4.5establish qualifications for persons that hold administrative, supervisory, or instructional
4.6leadership roles. The qualifications shall include at least the following areas: instruction
4.7and assessment; human resource and personnel management; financial management;
4.8legal and compliance management; effective communication; and board, authorizer, and
4.9community relationships. The board of directors shall use those qualifications as the basis
4.10for job descriptions, hiring, and performance evaluations of those who hold administrative,
4.11supervisory, or instructional leadership roles. The board of directors and an individual
4.12who does not hold a valid administrative license and who serves in an administrative,
4.13supervisory, or instructional leadership position shall develop a professional development
4.14plan. Documentation of the implementation of the professional development plan of these
4.15persons shall be included in the school's annual report.
4.16 (c) The board of directors also shall decide and be responsible for policy matters
4.17related to the operation of the school, including budgeting, curriculum programming,
4.18personnel, and operating procedures. The board shall adopt a policy on nepotism in
4.19employment. The board shall adopt personnel evaluation policies and practices that,
4.20at a minimum:
4.21(1) carry out the school's mission and goals;
4.22(2) evaluate the execution of charter contract goals and commitments;
4.23(3) evaluate student achievement, postsecondary and workforce readiness, and
4.24student engagement and connection goals;
4.25(4) establish a teacher evaluation process under subdivision 8, paragraph (t); and
4.26(5) provide professional development related to the individual's job responsibilities.
4.27(d) A charter school board with at least 25 employees or a teacher cooperative
4.28of licensed teachers providing instruction under a contract between a school and a
4.29cooperative that provides group health insurance coverage shall:
4.30(1) request proposals for group health insurance coverage from a minimum of three
4.31sources at least every two years; and
4.32(2) notify employees covered by the group health insurance coverage before the
4.33effective date of the changes in the group coverage policy contract.
4.34A charter school board or a cooperative of teachers that provides group health insurance
4.35coverage must establish and publish on its Web site the policy for the purchase of group
4.36health insurance coverage. A charter school board policy must include a sealed proposal
5.1process, which requires all proposals to be opened at the same time. Upon the openings of
5.2the proposals in accordance with the school or cooperative policy, the proposals become
5.3public data under chapter 13.
5.4Nothing in this provision supersedes the right of an exclusive representative to negotiate
5.5over terms and conditions of employment.
5.6 Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 21, is
5.7amended to read:
5.8 Subd. 21. Collective bargaining. Employees of the board of directors of a charter
5.9school may, if otherwise eligible, organize under chapter 179A and comply with its
5.10provisions. The board of directors of a charter school is a public employer, for the
5.11purposes of chapter 179A, upon formation of one or more bargaining units at the school.
5.12Bargaining units at the school must be separate from any other units within an authorizing
5.13district, except that bargaining units may remain part of the appropriate unit within an
5.14authorizing district, if the employees of the school, the board of directors of the school, the
5.15exclusive representative of the appropriate unit in the authorizing district, and the board
5.16of the authorizing district agree to include the employees in the appropriate unit of the
5.17authorizing district. The board of directors of a charter school with employees organized
5.18under this subdivision must comply with sections 471.6161 and 471.895.
5.19 Sec. 8. Minnesota Statutes 2012, section 471.6161, subdivision 1, is amended to read:
5.20 Subdivision 1. Group insurance coverage. For purposes of this section, "group
5.21insurance coverage" means benefit coverage provided to a group througha carrier an
5.22entity authorized underchapters section 43A.316 or 123A.21, subdivision 7, or chapter
5.2361A, 62A, 62C,and or 62D, to do business in the state.
5.24 Sec. 9. Minnesota Statutes 2012, section 471.6161, subdivision 3, is amended to read:
5.25 Subd. 3. Selection of carrier. The political subdivision shall make benefit and
5.26cost comparisons and evaluate the proposals using the written criteria. The political
5.27subdivision may negotiate withthe carrier an entity referenced in subdivision 1 on benefits,
5.28premiums, and other contract terms.Carriers applying Any entity providing group
5.29insurance coverage to the political subdivision must provide the political subdivision
5.30with aggregate claims records for the appropriate period. The political subdivision must
5.31prepare a written rationale for its decision before entering into a contract witha carrier an
5.32entity referenced in subdivision 1.
6.1 Sec. 10. Minnesota Statutes 2012, section 471.6161, is amended by adding a
6.2subdivision to read:
6.3 Subd. 8. School districts; group health insurance coverage. (a) Any entity
6.4providing group health insurance coverage to a school district must provide the school
6.5district with school district specific nonidentifiable aggregate claims records for the most
6.6recent 24 months within 30 days of the request.
6.7(b) School districts shall request proposals for group health insurance coverage
6.8as provided in subdivision 2 from a minimum of three potential sources of coverage.
6.9One of these requests must go to an administrator governed by chapter 43A. School
6.10districts opting for self-insurance must also follow these provisions, except as provided
6.11in paragraph (f). School districts must make requests for proposals 150 days prior to the
6.12expiration of the existing contract but not more frequently than once every 24 months.
6.13The request for proposals must include the most recent 24 months of nonidentifiable
6.14aggregate claims data. The request for proposals must be publicly released at or prior to
6.15its release to potential bidders.
6.16(c) Entities referenced in subdivision 1:
6.17(1) must respond to requests for proposals received directly from a school district;
6.18(2) must submit renewal premium rates to school districts and exclusive
6.19representatives of employees at least 90 days before the effective date of the premium
6.20rate change; and
6.21(3) must submit any proposed plan design changes to school districts and employees
6.22at least 90 days before the effective date to ensure proper negotiations with bargaining units.
6.23(d) School district contracts for group health insurance must not be longer than
6.24two years unless the exclusive representative of the largest employment group and the
6.25school district agree otherwise.
6.26(e) All proposals and renewals shall be sealed upon receipt until they are all opened 90
6.27days prior to the plan's renewal date. The proposals shall be opened on the first business day
6.28after the 90-day deadline in the presence of the exclusive representative, where applicable.
6.29(f) School districts opting for self-insurance shall follow all of the requirements
6.30of section 471.6161, except that:
6.31(1) their requests for proposals may be for third-party administrator services, where
6.32applicable;
6.33(2) these requests for proposals must be from a minimum of two different sources,
6.34which may include both entities referenced in subdivision 1 and providers of third-party
6.35administrator services;
7.1(3) for purposes of fulfilling the requirement to request a proposal for group
7.2insurance coverage from an administrator governed by chapter 43A, self-insured districts
7.3are not required to include in the request for proposal the coverage to be provided;
7.4(4) requests for proposals must be sent to providers no less than 90 days prior to
7.5the expiration of the existing contract; and
7.6(5) proposals must be submitted at least 60 days prior to the plan's renewal date
7.7and all proposals shall be opened at the same time and in the presence of the exclusive
7.8representative, where applicable.
7.9(g) Notwithstanding any law to the contrary, a school district may continue to
7.10negotiate with up to two of the bidders in order to reduce costs or improve services. The
7.11choice of bidders must be agreed to by the exclusive representative of the largest group
7.12of employees.
7.13 Sec. 11. Minnesota Statutes 2012, section 471.895, subdivision 1, is amended to read:
7.14 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
7.15section.
7.16(b) "Gift" has the meaning given it in section10A.071, subdivision 1 .
7.17(c) "Interested person" means a person or a representative of a person or association
7.18that has a direct financial interest in a decision that a local official is authorized to make.
7.19(d) "Local official" means:
7.20(1) an elected or appointed official of a county or city or of an agency, authority, or
7.21instrumentality of a county or city;
7.22(2) an elected or appointed member of a school board, a school superintendent, a
7.23school principal, a district school officer of any independent school district; and
7.24 (3) a representative of an exclusive bargaining unit authorized to make decisions
7.25about a school district's group insurance coverage, as defined by section 471.6161.
7.26 Sec. 12. APPROPRIATION; RESPONSES TO BID REQUESTS.
7.27 (a) $1,000,000 is appropriated for fiscal year 2015 from the general fund to the
7.28commissioner of management and budget to comply with the requirements of Minnesota
7.29Statutes, section 43A.316.
7.30 (b) The commissioner of management and budget shall report by January 15,
7.312015, to the legislative chairs and ranking minority members with jurisdiction over state
7.32government finance on the ongoing costs incurred by the public employees insurance
7.33program in compliance with the requirements of this act and may request additional
7.34appropriations, if necessary.
8.1 Sec. 13. EFFECTIVE DATE.
8.2Sections 1 to 12 are effective July 1, 2014.
1.3district employees; appropriating money;amending Minnesota Statutes 2012,
1.4sections 43A.316, subdivision 10, by adding a subdivision; 123B.09, subdivision
1.512; 123B.75, by adding a subdivision; 471.6161, subdivisions 1, 3, by adding
1.6a subdivision; 471.895, subdivision 1; Minnesota Statutes 2013 Supplement,
1.7section 124D.10, subdivisions 4a, 11, 21.
1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.9 Section 1. Minnesota Statutes 2012, section 43A.316, subdivision 10, is amended to
1.10read:
1.11 Subd. 10. Exemption. The public employee insurance program and, where
1.12applicable, the employers participating in it are exempt from chapters 60A, 62A, 62C,
1.1362D, 62E, and 62H, section
1.14section
1.15of section 471.6161, subdivision 8, paragraphs (a) and (c).
1.16 Sec. 2. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
1.17to read:
1.18 Subd. 11. Proposal from school district; response required. Upon receipt of a
1.19request for a proposal from a school district pursuant to section 471.6161, subdivision 8,
1.20the public employees insurance program shall respond to the request within 60 days.
1.21 Sec. 3. Minnesota Statutes 2012, section 123B.09, subdivision 12, is amended to read:
1.22 Subd. 12. Board to fix compensation. The clerk, treasurer, and superintendent
1.23of any district shall receive such compensation as may be fixed by the board. Unless
2.1otherwise provided by law, the other members of the board shall also receive such
2.2compensation as may be fixed by the board. All members of the board may receive
2.3reimbursement for transportation at the rate provided for in section
2.4member or school district employee shall receive any compensation or benefits based on
2.5incentives or other money provided to the school district by or from a source of group
2.6insurance coverage referenced in section 471.6161, subdivision 1, except for a refund
2.7provided under section 123B.75, subdivision 10.
2.8 Sec. 4. Minnesota Statutes 2012, section 123B.75, is amended by adding a subdivision
2.9to read:
2.10 Subd. 10. Insurance premium rebates. (a) If money collected by an entity
2.11providing group insurance under chapter 471.6161, subdivision 1, for the payment of
2.12insurance premiums is above the cost of that coverage and returned to the school district
2.13purchasing that coverage as a refund, that school district must negotiate with the exclusive
2.14representative regarding the refund amount attributable to the proportionate number of
2.15insured lives covered by that exclusive representative.
2.16(b) If there is no exclusive representative or if the employer and the exclusive
2.17representative are unable to come to an agreement within 150 days, the remaining refunds
2.18shall be used to pay the full premium to the program for any employees not covered by
2.19an agreement negotiated under this section until the proportionate refunds are depleted.
2.20These refunds shall be used for a proportional premium payment at the time it is necessary
2.21to deplete the balance.
2.22 Sec. 5. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 4a, is
2.23amended to read:
2.24 Subd. 4a. Conflict of interest. (a) An individual is prohibited from serving as a
2.25member of the charter school board of directors if the individual, an immediate family
2.26member, or the individual's partner is a full or part owner or principal with a for-profit or
2.27nonprofit entity or independent contractor with whom the charter school contracts, directly
2.28or indirectly, for professional services, goods, or facilities. An individual is prohibited
2.29from serving as a board member if an immediate family member is an employee of the
2.30school. A violation of this prohibition renders a contract voidable at the option of the
2.31commissioner or the charter school board of directors. A member of a charter school
2.32board of directors who violates this prohibition is individually liable to the charter school
2.33for any damage caused by the violation.
3.1 (b) No member of the board of directors, employee, officer, or agent of a charter
3.2school shall participate in selecting, awarding, or administering a contract if a conflict
3.3of interest exists. A conflict exists when:
3.4 (1) the board member, employee, officer, or agent;
3.5 (2) the immediate family of the board member, employee, officer, or agent;
3.6 (3) the partner of the board member, employee, officer, or agent; or
3.7 (4) an organization that employs, or is about to employ any individual in clauses
3.8(1) to (3),
3.9has a financial or other interest in the entity with which the charter school is contracting.
3.10A violation of this prohibition renders the contract void.
3.11 (c) Any employee, agent, or board member of the authorizer who participates
3.12in the initial review, approval, ongoing oversight, evaluation, or the charter renewal or
3.13nonrenewal process or decision is ineligible to serve on the board of directors of a school
3.14chartered by that authorizer.
3.15 (d) An individual may serve as a member of the board of directors if no conflict of
3.16interest under paragraph (a) exists.
3.17 (e) The conflict of interest provisions under this subdivision do not apply to
3.18compensation paid to a teacher employed as a teacher by the charter school or a teacher
3.19who provides instructional services to the charter school through a cooperative formed
3.20under chapter 308A when the teacher also serves on the charter school board of directors.
3.21 (f) A charter school board member, employee, or officer must not accept gifts as
3.22defined under section 10A.071, subdivision 1, paragraph (b), and must not request another
3.23person to give a gift to a board member, employee, or officer. A board member, employee,
3.24or officer must not receive compensation from a group health insurance provider.
3.25 Sec. 6. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 11, is
3.26amended to read:
3.27 Subd. 11. Employment and other operating matters. (a) A charter school must
3.28employ or contract with necessary teachers, as defined by section
3.29who hold valid licenses to perform the particular service for which they are employed in
3.30the school. The charter school's state aid may be reduced under section
3.31school employs a teacher who is not appropriately licensed or approved by the board of
3.32teaching. The school may employ necessary employees who are not required to hold
3.33teaching licenses to perform duties other than teaching and may contract for other services.
3.34The school may discharge teachers and nonlicensed employees. The charter school board
3.35is subject to section
4.1charter school must give that employee a written description of the terms and conditions
4.2of employment and the school's personnel policies.
4.3 (b) A person, without holding a valid administrator's license, may perform
4.4administrative, supervisory, or instructional leadership duties. The board of directors shall
4.5establish qualifications for persons that hold administrative, supervisory, or instructional
4.6leadership roles. The qualifications shall include at least the following areas: instruction
4.7and assessment; human resource and personnel management; financial management;
4.8legal and compliance management; effective communication; and board, authorizer, and
4.9community relationships. The board of directors shall use those qualifications as the basis
4.10for job descriptions, hiring, and performance evaluations of those who hold administrative,
4.11supervisory, or instructional leadership roles. The board of directors and an individual
4.12who does not hold a valid administrative license and who serves in an administrative,
4.13supervisory, or instructional leadership position shall develop a professional development
4.14plan. Documentation of the implementation of the professional development plan of these
4.15persons shall be included in the school's annual report.
4.16 (c) The board of directors also shall decide and be responsible for policy matters
4.17related to the operation of the school, including budgeting, curriculum programming,
4.18personnel, and operating procedures. The board shall adopt a policy on nepotism in
4.19employment. The board shall adopt personnel evaluation policies and practices that,
4.20at a minimum:
4.21(1) carry out the school's mission and goals;
4.22(2) evaluate the execution of charter contract goals and commitments;
4.23(3) evaluate student achievement, postsecondary and workforce readiness, and
4.24student engagement and connection goals;
4.25(4) establish a teacher evaluation process under subdivision 8, paragraph (t); and
4.26(5) provide professional development related to the individual's job responsibilities.
4.27(d) A charter school board with at least 25 employees or a teacher cooperative
4.28of licensed teachers providing instruction under a contract between a school and a
4.29cooperative that provides group health insurance coverage shall:
4.30(1) request proposals for group health insurance coverage from a minimum of three
4.31sources at least every two years; and
4.32(2) notify employees covered by the group health insurance coverage before the
4.33effective date of the changes in the group coverage policy contract.
4.34A charter school board or a cooperative of teachers that provides group health insurance
4.35coverage must establish and publish on its Web site the policy for the purchase of group
4.36health insurance coverage. A charter school board policy must include a sealed proposal
5.1process, which requires all proposals to be opened at the same time. Upon the openings of
5.2the proposals in accordance with the school or cooperative policy, the proposals become
5.3public data under chapter 13.
5.4Nothing in this provision supersedes the right of an exclusive representative to negotiate
5.5over terms and conditions of employment.
5.6 Sec. 7. Minnesota Statutes 2013 Supplement, section 124D.10, subdivision 21, is
5.7amended to read:
5.8 Subd. 21. Collective bargaining. Employees of the board of directors of a charter
5.9school may, if otherwise eligible, organize under chapter 179A and comply with its
5.10provisions. The board of directors of a charter school is a public employer, for the
5.11purposes of chapter 179A, upon formation of one or more bargaining units at the school.
5.12Bargaining units at the school must be separate from any other units within an authorizing
5.13district, except that bargaining units may remain part of the appropriate unit within an
5.14authorizing district, if the employees of the school, the board of directors of the school, the
5.15exclusive representative of the appropriate unit in the authorizing district, and the board
5.16of the authorizing district agree to include the employees in the appropriate unit of the
5.17authorizing district. The board of directors of a charter school with employees organized
5.18under this subdivision must comply with sections 471.6161 and 471.895.
5.19 Sec. 8. Minnesota Statutes 2012, section 471.6161, subdivision 1, is amended to read:
5.20 Subdivision 1. Group insurance coverage. For purposes of this section, "group
5.21insurance coverage" means benefit coverage provided to a group through
5.22entity authorized under
5.2361A, 62A, 62C,
5.24 Sec. 9. Minnesota Statutes 2012, section 471.6161, subdivision 3, is amended to read:
5.25 Subd. 3. Selection of carrier. The political subdivision shall make benefit and
5.26cost comparisons and evaluate the proposals using the written criteria. The political
5.27subdivision may negotiate with
5.28premiums, and other contract terms.
5.29insurance coverage to the political subdivision must provide the political subdivision
5.30with aggregate claims records for the appropriate period. The political subdivision must
5.31prepare a written rationale for its decision before entering into a contract with
5.32entity referenced in subdivision 1.
6.1 Sec. 10. Minnesota Statutes 2012, section 471.6161, is amended by adding a
6.2subdivision to read:
6.3 Subd. 8. School districts; group health insurance coverage. (a) Any entity
6.4providing group health insurance coverage to a school district must provide the school
6.5district with school district specific nonidentifiable aggregate claims records for the most
6.6recent 24 months within 30 days of the request.
6.7(b) School districts shall request proposals for group health insurance coverage
6.8as provided in subdivision 2 from a minimum of three potential sources of coverage.
6.9One of these requests must go to an administrator governed by chapter 43A. School
6.10districts opting for self-insurance must also follow these provisions, except as provided
6.11in paragraph (f). School districts must make requests for proposals 150 days prior to the
6.12expiration of the existing contract but not more frequently than once every 24 months.
6.13The request for proposals must include the most recent 24 months of nonidentifiable
6.14aggregate claims data. The request for proposals must be publicly released at or prior to
6.15its release to potential bidders.
6.16(c) Entities referenced in subdivision 1:
6.17(1) must respond to requests for proposals received directly from a school district;
6.18(2) must submit renewal premium rates to school districts and exclusive
6.19representatives of employees at least 90 days before the effective date of the premium
6.20rate change; and
6.21(3) must submit any proposed plan design changes to school districts and employees
6.22at least 90 days before the effective date to ensure proper negotiations with bargaining units.
6.23(d) School district contracts for group health insurance must not be longer than
6.24two years unless the exclusive representative of the largest employment group and the
6.25school district agree otherwise.
6.26(e) All proposals and renewals shall be sealed upon receipt until they are all opened 90
6.27days prior to the plan's renewal date. The proposals shall be opened on the first business day
6.28after the 90-day deadline in the presence of the exclusive representative, where applicable.
6.29(f) School districts opting for self-insurance shall follow all of the requirements
6.30of section 471.6161, except that:
6.31(1) their requests for proposals may be for third-party administrator services, where
6.32applicable;
6.33(2) these requests for proposals must be from a minimum of two different sources,
6.34which may include both entities referenced in subdivision 1 and providers of third-party
6.35administrator services;
7.1(3) for purposes of fulfilling the requirement to request a proposal for group
7.2insurance coverage from an administrator governed by chapter 43A, self-insured districts
7.3are not required to include in the request for proposal the coverage to be provided;
7.4(4) requests for proposals must be sent to providers no less than 90 days prior to
7.5the expiration of the existing contract; and
7.6(5) proposals must be submitted at least 60 days prior to the plan's renewal date
7.7and all proposals shall be opened at the same time and in the presence of the exclusive
7.8representative, where applicable.
7.9(g) Notwithstanding any law to the contrary, a school district may continue to
7.10negotiate with up to two of the bidders in order to reduce costs or improve services. The
7.11choice of bidders must be agreed to by the exclusive representative of the largest group
7.12of employees.
7.13 Sec. 11. Minnesota Statutes 2012, section 471.895, subdivision 1, is amended to read:
7.14 Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this
7.15section.
7.16(b) "Gift" has the meaning given it in section
7.17(c) "Interested person" means a person or a representative of a person or association
7.18that has a direct financial interest in a decision that a local official is authorized to make.
7.19(d) "Local official" means:
7.20(1) an elected or appointed official of a county or city or of an agency, authority, or
7.21instrumentality of a county or city;
7.22(2) an elected or appointed member of a school board, a school superintendent, a
7.23school principal, a district school officer of any independent school district; and
7.24 (3) a representative of an exclusive bargaining unit authorized to make decisions
7.25about a school district's group insurance coverage, as defined by section 471.6161.
7.26 Sec. 12. APPROPRIATION; RESPONSES TO BID REQUESTS.
7.27 (a) $1,000,000 is appropriated for fiscal year 2015 from the general fund to the
7.28commissioner of management and budget to comply with the requirements of Minnesota
7.29Statutes, section 43A.316.
7.30 (b) The commissioner of management and budget shall report by January 15,
7.312015, to the legislative chairs and ranking minority members with jurisdiction over state
7.32government finance on the ongoing costs incurred by the public employees insurance
7.33program in compliance with the requirements of this act and may request additional
7.34appropriations, if necessary.
8.1 Sec. 13. EFFECTIVE DATE.
8.2Sections 1 to 12 are effective July 1, 2014.
