Bill Text: MN HF2356 | 2011-2012 | 87th Legislature | Engrossed
Bill Title: Workers' Compensation Reinsurance Association compliance with the open meeting law and the Data Practices Act required, and board membership modified.
Spectrum: Partisan Bill (Republican 5-0)
Status: (Introduced - Dead) 2012-03-08 - Committee report, to pass as amended and re-refer to Civil Law [HF2356 Detail]
Download: Minnesota-2011-HF2356-Engrossed.html
1.2relating to insurance; requiring the Workers' Compensation Reinsurance
1.3Association to comply with the open meeting law and the Data Practices Act;
1.4modifying board membership;amending Minnesota Statutes 2010, sections
1.579.34, subdivision 1; 79.37.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 79.34, subdivision 1, is amended to read:
1.8 Subdivision 1. Conditions requiring membership. The nonprofit association
1.9known as the Workers' Compensation Reinsurance Association may be incorporated under
1.10chapter 317A with all the powers of a corporation formed under that chapter, except that
1.11if the provisions of that chapter are inconsistent with sections79.34 to
79.40 , sections
1.1279.34
to
79.40 govern. Each insurer as defined by section
79.01, subdivision 2 , shall, as
1.13a condition of its authority to transact workers' compensation insurance in this state, be
1.14a member of the reinsurance association and is bound by the plan of operation of the
1.15reinsurance association; provided, that all affiliated insurers within a holding company
1.16system as defined in chapter 60D are considered a single entity for purposes of the exercise
1.17of all rights and duties of membership in the reinsurance association. Each self-insurer
1.18approved under section176.181 and each political subdivision that self-insures shall, as a
1.19condition of its authority to self-insure workers' compensation liability in this state, be a
1.20member of the reinsurance association and is bound by its plan of operation; provided that:
1.21(1) all affiliated companies within a holding company system, as determined by
1.22the commissioner of labor and industry in a manner consistent with the standards and
1.23definitions in chapter 60D, are considered a single entity for purposes of the exercise of all
1.24rights and duties of membership in the reinsurance association; and
2.1(2) all group self-insurers granted authority to self-insure pursuant to section176.181
2.2are considered single entities for purposes of the exercise of all the rights and duties of
2.3membership in the reinsurance association. As a condition of its authority to self-insure
2.4workers' compensation liability, and for losses incurred after December 31, 1983, the
2.5state is a member of the reinsurance association and is bound by its plan of operation.
2.6The commissioner of administration represents the state in the exercise of all the rights
2.7and duties of membership in the reinsurance association. The amounts necessary to pay
2.8the state's premiums required for coverage by the Workers' Compensation Reinsurance
2.9Association are appropriated from the general fund to the commissioner of administration.
2.10The University of Minnesota shall pay its portion of workers' compensation reinsurance
2.11premiums directly to the Workers' Compensation Reinsurance Association. For the
2.12purposes of this section, "state" means the administrative branch of state government,
2.13the legislative branch, the judicial branch, the University of Minnesota, and any other
2.14entity whose workers' compensation liability is paid from the state revolving fund. The
2.15commissioner of management and budget may calculate, prorate, and charge a department
2.16or agency the portion of premiums paid to the reinsurance association for employees who
2.17are paid wholly or in part by federal funds, dedicated funds, or special revenue funds.
2.18The reinsurance association is not a state agency. Actions of the reinsurance association
2.19and its board of directors and actions of the commissioner of labor and industry with
2.20respect to the reinsurance association arenot subject to chapters 13 and 13D, and are not
2.21subject to chapter 15. All property owned by the association is exempt from taxation. The
2.22reinsurance association is not obligated to make any payments or pay any assessments to
2.23any funds or pools established pursuant to this chapter or chapter 176 or any other law.
2.24EFFECTIVE DATE.This section is effective August 1, 2012, and applies to
2.25actions that take place on or after that date.
2.26 Sec. 2. Minnesota Statutes 2010, section 79.37, is amended to read:
2.2779.37 BOARD OF DIRECTORS.
2.28A board of directors of the reinsurance association is created and is responsible
2.29for the operation of the reinsurance association consistent with the plan of operation
2.30and sections79.34 to
79.40 . The board consists of 13 14 directors. Four directors shall
2.31represent insurers,; two directors shall represent employers,; two directors shall represent
2.32individual self-insurers; one director shall represent group self-insurers; two directors shall
2.33represent employees; the commissioner of management and budget and the executive
2.34director of the state Board of Investment or their designees shall serve as directors; and
3.1one director shall represent the public. Insurer members of the reinsurance association
3.2shall elect the directors who represent insurers; self-insurer members of the reinsurance
3.3association shall elect the directors who represent self-insurers; and the commissioner of
3.4labor and industry shall appoint the remaining directors for the terms authorized in the
3.5plan of operation. Each director is entitled to one vote. Terms of the directors shall be
3.6staggered so that the terms of all the directors do not expire at the same time and so that a
3.7director does not serve a term of more than four years. The board shall select a chair and
3.8other officers it deems appropriate.
3.9A majority of the directors currently holding office constitutes a quorum. Action
3.10may be taken by a majority vote of the directors present.
3.11The board shall take reasonable and prudent action regarding the management of
3.12the reinsurance association including but not limited to determining the entity who shall
3.13manage the daily affairs of the reinsurance association. The board shall report to the
3.14governor of its actions regarding the entity selected to manage the reinsurance association
3.15and the reasons for the selection.
1.3Association to comply with the open meeting law and the Data Practices Act;
1.4modifying board membership;amending Minnesota Statutes 2010, sections
1.579.34, subdivision 1; 79.37.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 79.34, subdivision 1, is amended to read:
1.8 Subdivision 1. Conditions requiring membership. The nonprofit association
1.9known as the Workers' Compensation Reinsurance Association may be incorporated under
1.10chapter 317A with all the powers of a corporation formed under that chapter, except that
1.11if the provisions of that chapter are inconsistent with sections
1.13a condition of its authority to transact workers' compensation insurance in this state, be
1.14a member of the reinsurance association and is bound by the plan of operation of the
1.15reinsurance association; provided, that all affiliated insurers within a holding company
1.16system as defined in chapter 60D are considered a single entity for purposes of the exercise
1.17of all rights and duties of membership in the reinsurance association. Each self-insurer
1.18approved under section
1.19condition of its authority to self-insure workers' compensation liability in this state, be a
1.20member of the reinsurance association and is bound by its plan of operation; provided that:
1.21(1) all affiliated companies within a holding company system, as determined by
1.22the commissioner of labor and industry in a manner consistent with the standards and
1.23definitions in chapter 60D, are considered a single entity for purposes of the exercise of all
1.24rights and duties of membership in the reinsurance association; and
2.1(2) all group self-insurers granted authority to self-insure pursuant to section
2.2are considered single entities for purposes of the exercise of all the rights and duties of
2.3membership in the reinsurance association. As a condition of its authority to self-insure
2.4workers' compensation liability, and for losses incurred after December 31, 1983, the
2.5state is a member of the reinsurance association and is bound by its plan of operation.
2.6The commissioner of administration represents the state in the exercise of all the rights
2.7and duties of membership in the reinsurance association. The amounts necessary to pay
2.8the state's premiums required for coverage by the Workers' Compensation Reinsurance
2.9Association are appropriated from the general fund to the commissioner of administration.
2.10The University of Minnesota shall pay its portion of workers' compensation reinsurance
2.11premiums directly to the Workers' Compensation Reinsurance Association. For the
2.12purposes of this section, "state" means the administrative branch of state government,
2.13the legislative branch, the judicial branch, the University of Minnesota, and any other
2.14entity whose workers' compensation liability is paid from the state revolving fund. The
2.15commissioner of management and budget may calculate, prorate, and charge a department
2.16or agency the portion of premiums paid to the reinsurance association for employees who
2.17are paid wholly or in part by federal funds, dedicated funds, or special revenue funds.
2.18The reinsurance association is not a state agency. Actions of the reinsurance association
2.19and its board of directors and actions of the commissioner of labor and industry with
2.20respect to the reinsurance association are
2.21subject to chapter 15. All property owned by the association is exempt from taxation. The
2.22reinsurance association is not obligated to make any payments or pay any assessments to
2.23any funds or pools established pursuant to this chapter or chapter 176 or any other law.
2.24EFFECTIVE DATE.This section is effective August 1, 2012, and applies to
2.25actions that take place on or after that date.
2.26 Sec. 2. Minnesota Statutes 2010, section 79.37, is amended to read:
2.2779.37 BOARD OF DIRECTORS.
2.28A board of directors of the reinsurance association is created and is responsible
2.29for the operation of the reinsurance association consistent with the plan of operation
2.30and sections
2.31represent insurers
2.32individual self-insurers; one director shall represent group self-insurers; two directors shall
2.33represent employees; the commissioner of management and budget and the executive
2.34director of the state Board of Investment or their designees shall serve as directors; and
3.1one director shall represent the public. Insurer members of the reinsurance association
3.2shall elect the directors who represent insurers; self-insurer members of the reinsurance
3.3association shall elect the directors who represent self-insurers; and the commissioner of
3.4labor and industry shall appoint the remaining directors for the terms authorized in the
3.5plan of operation. Each director is entitled to one vote. Terms of the directors shall be
3.6staggered so that the terms of all the directors do not expire at the same time and so that a
3.7director does not serve a term of more than four years. The board shall select a chair and
3.8other officers it deems appropriate.
3.9A majority of the directors currently holding office constitutes a quorum. Action
3.10may be taken by a majority vote of the directors present.
3.11The board shall take reasonable and prudent action regarding the management of
3.12the reinsurance association including but not limited to determining the entity who shall
3.13manage the daily affairs of the reinsurance association. The board shall report to the
3.14governor of its actions regarding the entity selected to manage the reinsurance association
3.15and the reasons for the selection.
