Bill Text: MN SF446 | 2013-2014 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Public employee insurance program (PEIP) regulation, school employer participation option, start-up costs and enrollment fee; labor-management committee for school employees and employers establishment
Sponsorship: Partisan Bill (Democrat 4)
Status: (Introduced - Dead) 2013-03-13 - Comm report: To pass as amended and re-refer to Finance [SF446 Detail]
Download: Minnesota-2013-SF446-Engrossed.html
Bill Title: Public employee insurance program (PEIP) regulation, school employer participation option, start-up costs and enrollment fee; labor-management committee for school employees and employers establishment
Sponsorship: Partisan Bill (Democrat 4)
Status: (Introduced - Dead) 2013-03-13 - Comm report: To pass as amended and re-refer to Finance [SF446 Detail]
Download: Minnesota-2013-SF446-Engrossed.html
1.2relating to insurance; regulating the public employees insurance program;
1.3allowing participation by certain school employers;amending Minnesota Statutes
1.42012, section 43A.316, subdivisions 2, 4, 5, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 43A.316, subdivision 2, is amended to read:
1.7 Subd. 2. Definitions. For the purpose of this section, the terms defined in this
1.8subdivision have the meaning given them.
1.9(a) Commissioner. "Commissioner" means the commissioner of management and
1.10budget.
1.11(b) Employee. "Employee" means:
1.12(1) a person who is a public employee within the definition of section179A.03,
1.13subdivision 14 , who is insurance eligible and is employed by an eligible employer;
1.14(2) an elected public official of an eligible employer who is insurance eligible;
1.15(3) a person employed by a labor organization or employee association certified as
1.16an exclusive representative of employees of an eligible employer or by another public
1.17employer approved by the commissioner, so long as the plan meets the requirements of a
1.18governmental plan under United States Code, title 29, section 1002(32); or
1.19(4) a person employed by a county or municipal hospital.
1.20(c) Eligible employer. "Eligible employer" means:
1.21(1) a public employer within the definition of section179A.03, subdivision 15 , that
1.22is a town, county, city, school district as defined in section120A.05 , service cooperative
1.23as defined in section123A.21 , intermediate district as defined in section
136D.01 ,
1.24Cooperative Center for Vocational Education as defined in section123A.22 , regional
2.1management information center as defined in section123A.23 , or an education unit
2.2organized under the joint powers action, section471.59 ; or
2.3(2) an exclusive representative of employees, as defined in paragraph (b), and its
2.4state affiliate;
2.5(3) a county or municipal hospital; or
2.6(4) another public employer approved by the commissioner.
2.7(d) Exclusive representative. "Exclusive representative" means an exclusive
2.8representative as defined in section179A.03, subdivision 8 .
2.9(e) Labor-Management Committee. "Labor-Management Committee" means the
2.10committee established by subdivision 4.
2.11(f) Program. "Program" means the statewide public employees insurance program
2.12created by subdivision 3.
2.13(g) School employee. "School employee" means an employee of a school employer.
2.14(h) School employer. "School employer" means a district as defined in section
2.15120A.05, a service cooperative as defined in section 123A.21, an intermediate district as
2.16defined in section 136D.01, a cooperative center for vocational education as defined in
2.17section 123A.22, a regional management information center as defined in section 123A.23,
2.18or an education unit organized under a joint powers agreement under section 471.59.
2.19 Sec. 2. Minnesota Statutes 2012, section 43A.316, subdivision 4, is amended to read:
2.20 Subd. 4. Labor-Management Committee.The Labor-Management Committee
2.21consists of ten members appointed by the commissioner. The Labor-Management
2.22Committee must comprise five members who represent employees, including at least
2.23one retired employee, and five members who represent eligible employers. Committee
2.24members are eligible for expense reimbursement in the same manner and amount as
2.25authorized by the commissioner's plan adopted under section
43A.18, subdivision 2. The
2.26commissioner shall consult with the labor-management committee in major decisions that
2.27affect the program. The committee shall study issues relating to the insurance program
2.28including, but not limited to, flexible benefits, utilization review, quality assessment, and
2.29cost efficiency. The committee continues to exist while the program remains in operation.
2.30The Labor-Management Committee consists of 14 members appointed to represent
2.31eligible school employers and eligible school employees in equal numbers. The seven
2.32members who represent eligible school employers shall consist of four appointed by
2.33the Minnesota School Boards Association and one each appointed by the Minnesota
2.34Association of School Administrators, the Minnesota Elementary School Principals
2.35Association, and the Minnesota Secondary School Principals Association. The seven
3.1members who represent eligible school employees shall consist of four appointed by
3.2Education Minnesota and one each appointed by the Service Employees International
3.3Union; the American Federation of State, County, and Municipal Employees; and the
3.4Minnesota School Employees Association. Committee members are eligible for expense
3.5reimbursement in the same manner and amount as authorized by the commissioner's
3.6plan adopted under section43A.18, subdivision 2 . The commissioner shall consult
3.7with the labor-management committee in major decisions that affect the program. The
3.8commissioner and the committee must mutually agree to all plan design changes. The
3.9committee shall study issues relating to the insurance program including, but not limited
3.10to, flexible benefits, utilization review, quality assessment, and cost efficiency. The
3.11committee continues to exist while the program remains in operation.
3.12 Sec. 3. Minnesota Statutes 2012, section 43A.316, subdivision 5, is amended to read:
3.13 Subd. 5. Public employee participation. (a) Participation in the program is subject
3.14to the conditions in this subdivision.
3.15(b) Each exclusive representative for an eligible employer determines whether the
3.16employees it represents will participate in the program. The exclusive representative shall
3.17give the employer notice of intent to participate at least 30 days before the expiration date
3.18of the collective bargaining agreement preceding the collective bargaining agreement that
3.19covers the date of entry into the program. The exclusive representative and the eligible
3.20employer shall give notice to the commissioner of the determination to participate in the
3.21program at least 30 days before entry into the program. Entry into the program is governed
3.22by a schedule established by the commissioner.
3.23(c) Employees not represented by exclusive representatives may become members
3.24of the program upon a determination of an eligible employer to include these employees
3.25in the program. Either all or none of the employer's unrepresented employees must
3.26participate. The eligible employer shall give at least 30 days' notice to the commissioner
3.27before entering the program. Entry into the program is governed by a schedule established
3.28by the commissioner.
3.29(d) Participation in the program is for a two-year term. Participation is automatically
3.30renewed for an additional two-year term unless the exclusive representative, or the
3.31employer for unrepresented employees, gives the commissioner notice of withdrawal
3.32at least 30 days before expiration of the participation period. A group that withdraws
3.33must wait two years before rejoining. An exclusive representative, or employer for
3.34unrepresented employees, may also withdraw if premiums increase 50 percent or more
3.35from one insurance year to the next.
4.1(e) The exclusive representative shall give the employer notice of intent to withdraw
4.2to the commissioner at least 30 days before the expiration date of a collective bargaining
4.3agreement that includes the date on which the term of participation expires.
4.4(f) Each participating eligible employer shall notify the commissioner of names of
4.5individuals who will be participating within two weeks of the commissioner receiving
4.6notice of the parties' intent to participate. The employer shall also submit other information
4.7as required by the commissioner for administration of the program.
4.8(g) A school employer that makes available health insurance coverage for
4.9employees, either in a self-insured or fully insured arrangement, including those
4.10purchasing coverage through a service cooperative as defined by section 123A.21, may
4.11purchase health insurance coverage through the program, beginning January 1, 2014, as
4.12contracts or agreements with providers that were in place upon enactment expire.
4.13(1) Employees not represented by an exclusive representative may enter the public
4.14employee insurance program in the manner described in paragraph (c).
4.15(2) Exclusive representatives of school employers and nonrepresented employees
4.16of school employers who do not enter the program on the date of initial eligibility for
4.17participation shall be ineligible to participate until a period of four years has elapsed since
4.18initial eligibility and may, at the discretion of the commissioner, be pooled and rated
4.19separately from the other employees in the program for the first four years after entering
4.20the program. This clause does not prohibit an employee from a district or exclusive
4.21representative that has not declined participation from later becoming a member of the
4.22program.
4.23(3) The decision of the school board of a school employer and an exclusive
4.24representative of employees or, in the case of employees not represented by an exclusive
4.25representative, the decision of the school board of a school employer, to not opt out of
4.26entry into the program is irrevocable.
4.27 Sec. 4. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
4.28to read:
4.29 Subd. 11. Nonidentifiable aggregate claims data from past coverage. Upon
4.30request by the commissioner, entities that are providing or have provided coverage to
4.31eligible school employees, shall provide to the commissioner at no charge nonidentifiable
4.32aggregate claims data for that coverage. The information must include data relating to
4.33school employees' group benefit sets, demographics, claims experience, and any other data
4.34or information deemed by the commissioner as necessary to accurately and appropriately
4.35underwrite the risk of the school employees, notwithstanding section 13.203.
5.1 Sec. 5. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
5.2to read:
5.3 Subd. 13. Start-up funding; administration of ongoing revenues and expenses.
5.4(a) The commissioner of management and budget shall use the funds available in the
5.5insurance trust fund under section 43A.316, subdivision 9, in the form of temporary
5.6funding to pay for the administrative start-up costs and reserves necessary under this act.
5.7In addition to the amounts of temporary funding, the commissioner shall determine the
5.8amount of interest lost to the insurance trust fund as a result of the temporary funding.
5.9(b) The commissioner of management and budget shall impose an enrollment fee
5.10upon the premium charged for the first three months of coverage under the school employee
5.11insurance program created in this act sufficient to repay to the insurance trust fund the
5.12loans provided to cover the start-up costs incurred by the commissioner under paragraph
5.13(a), plus foregone interest to the insurance trust fund, as determined under paragraph (a).
5.14The commissioner shall deposit the enrollment fees in the insurance trust fund.
5.15(c) All costs incurred and revenue received by the commissioner of management and
5.16budget under this act in addition to those dealt with in paragraphs (a) and (b) shall, on an
5.17ongoing basis, be deposited into and paid out of the insurance trust fund.
1.3allowing participation by certain school employers;amending Minnesota Statutes
1.42012, section 43A.316, subdivisions 2, 4, 5, by adding subdivisions.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 43A.316, subdivision 2, is amended to read:
1.7 Subd. 2. Definitions. For the purpose of this section, the terms defined in this
1.8subdivision have the meaning given them.
1.9(a) Commissioner. "Commissioner" means the commissioner of management and
1.10budget.
1.11(b) Employee. "Employee" means:
1.12(1) a person who is a public employee within the definition of section
1.13subdivision 14
1.14(2) an elected public official of an eligible employer who is insurance eligible;
1.15(3) a person employed by a labor organization or employee association certified as
1.16an exclusive representative of employees of an eligible employer or by another public
1.17employer approved by the commissioner, so long as the plan meets the requirements of a
1.18governmental plan under United States Code, title 29, section 1002(32); or
1.19(4) a person employed by a county or municipal hospital.
1.20(c) Eligible employer. "Eligible employer" means:
1.21(1) a public employer within the definition of section
1.22is a town, county, city, school district as defined in section
1.23as defined in section
1.24Cooperative Center for Vocational Education as defined in section
2.1management information center as defined in section
2.2organized under the joint powers action, section
2.3(2) an exclusive representative of employees, as defined in paragraph (b), and its
2.4state affiliate;
2.5(3) a county or municipal hospital; or
2.6(4) another public employer approved by the commissioner.
2.7(d) Exclusive representative. "Exclusive representative" means an exclusive
2.8representative as defined in section
2.9(e) Labor-Management Committee. "Labor-Management Committee" means the
2.10committee established by subdivision 4.
2.11(f) Program. "Program" means the statewide public employees insurance program
2.12created by subdivision 3.
2.13(g) School employee. "School employee" means an employee of a school employer.
2.14(h) School employer. "School employer" means a district as defined in section
2.15120A.05, a service cooperative as defined in section 123A.21, an intermediate district as
2.16defined in section 136D.01, a cooperative center for vocational education as defined in
2.17section 123A.22, a regional management information center as defined in section 123A.23,
2.18or an education unit organized under a joint powers agreement under section 471.59.
2.19 Sec. 2. Minnesota Statutes 2012, section 43A.316, subdivision 4, is amended to read:
2.20 Subd. 4. Labor-Management Committee.
2.21
2.22
2.23
2.24
2.25
2.26
2.27
2.28
2.29
2.30The Labor-Management Committee consists of 14 members appointed to represent
2.31eligible school employers and eligible school employees in equal numbers. The seven
2.32members who represent eligible school employers shall consist of four appointed by
2.33the Minnesota School Boards Association and one each appointed by the Minnesota
2.34Association of School Administrators, the Minnesota Elementary School Principals
2.35Association, and the Minnesota Secondary School Principals Association. The seven
3.1members who represent eligible school employees shall consist of four appointed by
3.2Education Minnesota and one each appointed by the Service Employees International
3.3Union; the American Federation of State, County, and Municipal Employees; and the
3.4Minnesota School Employees Association. Committee members are eligible for expense
3.5reimbursement in the same manner and amount as authorized by the commissioner's
3.6plan adopted under section
3.7with the labor-management committee in major decisions that affect the program. The
3.8commissioner and the committee must mutually agree to all plan design changes. The
3.9committee shall study issues relating to the insurance program including, but not limited
3.10to, flexible benefits, utilization review, quality assessment, and cost efficiency. The
3.11committee continues to exist while the program remains in operation.
3.12 Sec. 3. Minnesota Statutes 2012, section 43A.316, subdivision 5, is amended to read:
3.13 Subd. 5. Public employee participation. (a) Participation in the program is subject
3.14to the conditions in this subdivision.
3.15(b) Each exclusive representative for an eligible employer determines whether the
3.16employees it represents will participate in the program. The exclusive representative shall
3.17give the employer notice of intent to participate at least 30 days before the expiration date
3.18of the collective bargaining agreement preceding the collective bargaining agreement that
3.19covers the date of entry into the program. The exclusive representative and the eligible
3.20employer shall give notice to the commissioner of the determination to participate in the
3.21program at least 30 days before entry into the program. Entry into the program is governed
3.22by a schedule established by the commissioner.
3.23(c) Employees not represented by exclusive representatives may become members
3.24of the program upon a determination of an eligible employer to include these employees
3.25in the program. Either all or none of the employer's unrepresented employees must
3.26participate. The eligible employer shall give at least 30 days' notice to the commissioner
3.27before entering the program. Entry into the program is governed by a schedule established
3.28by the commissioner.
3.29(d) Participation in the program is for a two-year term. Participation is automatically
3.30renewed for an additional two-year term unless the exclusive representative, or the
3.31employer for unrepresented employees, gives the commissioner notice of withdrawal
3.32at least 30 days before expiration of the participation period. A group that withdraws
3.33must wait two years before rejoining. An exclusive representative, or employer for
3.34unrepresented employees, may also withdraw if premiums increase 50 percent or more
3.35from one insurance year to the next.
4.1(e) The exclusive representative shall give the employer notice of intent to withdraw
4.2to the commissioner at least 30 days before the expiration date of a collective bargaining
4.3agreement that includes the date on which the term of participation expires.
4.4(f) Each participating eligible employer shall notify the commissioner of names of
4.5individuals who will be participating within two weeks of the commissioner receiving
4.6notice of the parties' intent to participate. The employer shall also submit other information
4.7as required by the commissioner for administration of the program.
4.8(g) A school employer that makes available health insurance coverage for
4.9employees, either in a self-insured or fully insured arrangement, including those
4.10purchasing coverage through a service cooperative as defined by section 123A.21, may
4.11purchase health insurance coverage through the program, beginning January 1, 2014, as
4.12contracts or agreements with providers that were in place upon enactment expire.
4.13(1) Employees not represented by an exclusive representative may enter the public
4.14employee insurance program in the manner described in paragraph (c).
4.15(2) Exclusive representatives of school employers and nonrepresented employees
4.16of school employers who do not enter the program on the date of initial eligibility for
4.17participation shall be ineligible to participate until a period of four years has elapsed since
4.18initial eligibility and may, at the discretion of the commissioner, be pooled and rated
4.19separately from the other employees in the program for the first four years after entering
4.20the program. This clause does not prohibit an employee from a district or exclusive
4.21representative that has not declined participation from later becoming a member of the
4.22program.
4.23(3) The decision of the school board of a school employer and an exclusive
4.24representative of employees or, in the case of employees not represented by an exclusive
4.25representative, the decision of the school board of a school employer, to not opt out of
4.26entry into the program is irrevocable.
4.27 Sec. 4. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
4.28to read:
4.29 Subd. 11. Nonidentifiable aggregate claims data from past coverage. Upon
4.30request by the commissioner, entities that are providing or have provided coverage to
4.31eligible school employees, shall provide to the commissioner at no charge nonidentifiable
4.32aggregate claims data for that coverage. The information must include data relating to
4.33school employees' group benefit sets, demographics, claims experience, and any other data
4.34or information deemed by the commissioner as necessary to accurately and appropriately
4.35underwrite the risk of the school employees, notwithstanding section 13.203.
5.1 Sec. 5. Minnesota Statutes 2012, section 43A.316, is amended by adding a subdivision
5.2to read:
5.3 Subd. 13. Start-up funding; administration of ongoing revenues and expenses.
5.4(a) The commissioner of management and budget shall use the funds available in the
5.5insurance trust fund under section 43A.316, subdivision 9, in the form of temporary
5.6funding to pay for the administrative start-up costs and reserves necessary under this act.
5.7In addition to the amounts of temporary funding, the commissioner shall determine the
5.8amount of interest lost to the insurance trust fund as a result of the temporary funding.
5.9(b) The commissioner of management and budget shall impose an enrollment fee
5.10upon the premium charged for the first three months of coverage under the school employee
5.11insurance program created in this act sufficient to repay to the insurance trust fund the
5.12loans provided to cover the start-up costs incurred by the commissioner under paragraph
5.13(a), plus foregone interest to the insurance trust fund, as determined under paragraph (a).
5.14The commissioner shall deposit the enrollment fees in the insurance trust fund.
5.15(c) All costs incurred and revenue received by the commissioner of management and
5.16budget under this act in addition to those dealt with in paragraphs (a) and (b) shall, on an
5.17ongoing basis, be deposited into and paid out of the insurance trust fund.
