1.1                          A bill for an act 
  1.2             relating to education; permitting school districts to 
  1.3             pay insurance premiums for teachers on an extended 
  1.4             leave of absence; amending Minnesota Statutes 2002, 
  1.5             sections 122A.46, subdivision 9; 354.094, subdivision 
  1.6             1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 2002, section 122A.46, 
  1.9   subdivision 9, is amended to read: 
  1.10     Subd. 9.  [BENEFITS.] A teacher on an extended leave of 
  1.11  absence shall receive all of the health, accident, medical, 
  1.12  surgical and hospitalization insurance or benefits, for both the 
  1.13  teacher and the teacher's dependents, for which the teacher 
  1.14  would otherwise be eligible if not on an extended leave.  A 
  1.15  teacher shall receive the coverage if such coverage is available 
  1.16  from the school district's insurer, if the teacher requests the 
  1.17  coverage, and if the teacher either (a) reimburses the district 
  1.18  for the full amount of the premium necessary to maintain the 
  1.19  coverage within one month following the district's payment of 
  1.20  the premium, or (b) if the district is wholly or partially 
  1.21  self-insured, pays the district, according to a schedule agreed 
  1.22  upon by the teacher and the school board, an amount determined 
  1.23  by the school board to be the amount that would be charged for 
  1.24  the coverage chosen by the teacher if the school board purchased 
  1.25  all health, accident, medical, surgical and hospitalization 
  1.26  coverage for its teachers from an insurer.  A school district 
  2.1   may enter into an agreement with the exclusive bargaining 
  2.2   representative of teachers in the district where the district 
  2.3   agrees to pay all or a portion of the premium for such coverage. 
  2.4      Sec. 2.  Minnesota Statutes 2002, section 354.094, 
  2.5   subdivision 1, is amended to read: 
  2.6      Subdivision 1.  [SERVICE CREDIT CONTRIBUTIONS.] Upon 
  2.7   granting any extended leave of absence under section 122A.46 or 
  2.8   136F.43, the employing unit granting the leave must certify the 
  2.9   leave to the association on a form specified by the executive 
  2.10  director.  A member granted an extended leave of absence under 
  2.11  section 122A.46 or 136F.43 may pay employee contributions and 
  2.12  receive allowable service credit toward annuities and other 
  2.13  benefits under this chapter, for each year of the leave, 
  2.14  provided that the member and the employing board make the 
  2.15  required employer contribution in any proportion they may agree 
  2.16  upon, during the period of the leave.  The employer may enter 
  2.17  into an agreement with the exclusive bargaining representative 
  2.18  of the member under which all or a portion of the employee's 
  2.19  contribution is paid by the employer.  The leave period must not 
  2.20  exceed five years.  A member may not receive more than five 
  2.21  years of allowable service credit under this section.  The 
  2.22  employee and employer contributions must be based upon the rates 
  2.23  of contribution prescribed by section 354.42 for the salary 
  2.24  received during the year immediately preceding the extended 
  2.25  leave.  Payments for the years for which a member is receiving 
  2.26  service credit while on extended leave must be made on or before 
  2.27  the later of June 30 of each fiscal year for which service 
  2.28  credit is received or within 30 days after first notification of 
  2.29  the amount due, if requested by the member, is given by the 
  2.30  association.  No payment is permitted after the following 
  2.31  September 30.  Payments received after June 30 must include 
  2.32  interest at an annual rate of 8.5 percent from June 30 through 
  2.33  the end of the month in which payment is received.  
  2.34  Notwithstanding the provisions of any agreements to the 
  2.35  contrary, employee and employer contributions may not be made to 
  2.36  receive allowable service credit if the member does not have 
  3.1   full reinstatement rights as provided in section 122A.46 or 
  3.2   136F.43, both during and at the end of the extended leave.