1.1                          A bill for an act 
  1.2             relating to public employment; providing group 
  1.3             long-term care coverage for members and annuitants of 
  1.4             public employees pension funds and other eligible 
  1.5             persons; proposing coding for new law in Minnesota 
  1.6             Statutes, chapter 43A. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [43A.318] [PUBLIC EMPLOYEES GROUP LONG-TERM 
  1.9   CARE INSURANCE PROGRAM.] 
  1.10     Subdivision 1.  [DEFINITIONS.] (a) [SCOPE.] For the 
  1.11  purposes of this section, the terms defined have the meaning 
  1.12  given them. 
  1.13     (b) [ADVISORY COMMITTEE; COMMITTEE.] "Advisory committee" 
  1.14  or "committee" means the committee created under subdivision 3. 
  1.15     (c) [COMMITTEE MEMBER; MEMBER.] "Committee member" or 
  1.16  "member" means a person serving on the advisory committee 
  1.17  created under subdivision 3. 
  1.18     (d) [ELIGIBLE PERSON.] "Eligible person" means: 
  1.19     (1) an active, deferred, or retired member, or an annuitant 
  1.20  of a public pension plan of the state or a political subdivision 
  1.21  of the state; 
  1.22     (2) a public employee or elected official of the state or a 
  1.23  political subdivision of the state who is not eligible for 
  1.24  participation in a public employee pension plan of the state or 
  1.25  a political subdivision of the state; or 
  1.26     (3) a spouse, parent, stepparent, or parent-in-law of a 
  2.1   person described in clause (1) or (2), regardless of the 
  2.2   enrollment status in the program of the person described in 
  2.3   clause (1) or (2). 
  2.4      (e) [PROGRAM.] "Program" means the statewide public 
  2.5   employees long-term care insurance program created under 
  2.6   subdivision 2. 
  2.7      (f) [PUBLIC EMPLOYEE PENSION PLAN.] "Public employee 
  2.8   pension plan" means any Minnesota public pension plan or fund 
  2.9   which provides pension or retirement coverage for public 
  2.10  employees other than volunteer firefighters, including any plan 
  2.11  or fund enumerated in section 356.20, subdivision 2, or 356.30, 
  2.12  subdivision 3, any local police or firefighter's relief 
  2.13  association to which section 69.77 applies, or any retirement or 
  2.14  pension plan or fund, including a supplemental retirement plan 
  2.15  or fund, established, maintained or supported by any 
  2.16  governmental subdivision or public body whose revenues are 
  2.17  derived from taxation, fees, assessments or from other public 
  2.18  sources. 
  2.19     (g) [QUALIFIED VENDOR.] "Qualified vendor" means an entity 
  2.20  licensed or authorized to underwrite, provide, or administer 
  2.21  group long-term care insurance benefits in Minnesota. 
  2.22     Subd. 2.  [PROGRAM CREATION; GENERAL PROVISIONS.] (a) The 
  2.23  commissioner may administer a program to make long-term care 
  2.24  coverage available to eligible persons.  The commissioner may 
  2.25  determine the program's funding arrangements, request bids from 
  2.26  qualified vendors, and negotiate and enter into contracts with 
  2.27  qualified vendors.  Contracts are not subject to the 
  2.28  requirements of section 16B.19 or 16B.22.  Contracts must be for 
  2.29  a uniform term of at least one year, but may be made 
  2.30  automatically renewable from term to term in the absence of 
  2.31  notice of termination by either party. 
  2.32     (b) The program may provide coverage for home, community, 
  2.33  and institutional long-term care and any other benefits as 
  2.34  determined by the commissioner.  Coverage is optional.  The 
  2.35  enrolled eligible person must pay the full cost of the coverage. 
  2.36     (c) The commissioner shall promote activities that attempt 
  3.1   to raise awareness of the need for long-term care insurance 
  3.2   among residents of the state and encourage the increased 
  3.3   prevalence of long-term care coverage.  These activities shall 
  3.4   include the sharing of knowledge gained in the development of 
  3.5   the program. 
  3.6      (d) The commissioner may employ and contract with persons 
  3.7   and other entities to perform the duties under this section and 
  3.8   may determine their duties and compensation consistent with the 
  3.9   provisions of this chapter. 
  3.10     (e) The benefits provided under this section shall not be 
  3.11  considered terms and conditions of employment as defined under 
  3.12  section 179A.03, subdivision 19, and are not subject to 
  3.13  collective bargaining. 
  3.14     (f) The commissioner shall establish underwriting criteria 
  3.15  for entry of all eligible persons into the program.  Eligible 
  3.16  persons who would be immediately eligible for benefits shall not 
  3.17  be permitted to enroll. 
  3.18     (g) Eligible persons who meet underwriting criteria may 
  3.19  enroll in the program upon hiring and at other times established 
  3.20  by the commissioner. 
  3.21     (h) An eligible person enrolled in the program may continue 
  3.22  to participate in the program even if an event, such as 
  3.23  termination of employment, changes the person's employment 
  3.24  status. 
  3.25     (i) Participating public employee pension plans and public 
  3.26  employers may provide automatic pension or payroll deduction for 
  3.27  payment of long-term care insurance premiums to qualified 
  3.28  vendors contracted with under this section. 
  3.29     (j) The premium charged to program enrollees shall include 
  3.30  an administrative fee to cover all program expenses incurred in 
  3.31  addition to the cost of coverage.  All fees collected shall be 
  3.32  appropriated to the commissioner for the purpose of 
  3.33  administrating the program. 
  3.34     Subd. 3.  [ADVISORY COMMITTEE.] (a) The committee consists 
  3.35  of:  
  3.36     (1) the executive directors or designees of the Minnesota 
  4.1   state retirement system, the public employees retirement 
  4.2   association, and the teachers retirement association; 
  4.3      (2) one member of the investment advisory committee of the 
  4.4   state board of investment provided under section 11A.08; 
  4.5      (3) one staff member of the department of human services; 
  4.6      (4) one staff member of the department of commerce; 
  4.7      (5) one member of the medical community with clinical 
  4.8   knowledge of long-term care; and 
  4.9      (6) six members representing the interests of eligible 
  4.10  persons. 
  4.11     (b) Appointment to and removal from the committee shall be 
  4.12  in the manner provided in section 15.059. 
  4.13     (c) The members of the committee described in paragraph 
  4.14  (a), clauses (1) to (4), serve without term limits.  The terms 
  4.15  of members described in paragraph (a), clause (5), are governed 
  4.16  by section 15.059, subdivision 2. 
  4.17     (d) Members shall serve without compensation, but are 
  4.18  eligible for reimbursement of expenses in the same manner and 
  4.19  amount as authorized under section 43A.18, subdivision 2. 
  4.20     (e) The committee shall advise the commissioner on program 
  4.21  issues, including, but not limited to, benefits, coverage, 
  4.22  funding, eligibility, enrollment, underwriting, and marketing. 
  4.23     (f) The committee is not subject to the expiration date 
  4.24  provisions of section 15.059. 
  4.25     Subd. 4.  [LONG-TERM CARE INSURANCE TRUST FUND.] (a) The 
  4.26  insurance trust fund in the state treasury consists of deposits 
  4.27  of the premiums received from persons enrolled in the program.  
  4.28  All money in the fund is appropriated to the commissioner to pay 
  4.29  premiums, claims, refunds, administrative costs, and other 
  4.30  related service costs.  The commissioner shall reserve an amount 
  4.31  of money sufficient to cover the actuarially estimated costs of 
  4.32  claims incurred but unpaid.  The trust fund shall be used for 
  4.33  the sole purpose of the program. 
  4.34     (b) The state board of investment shall invest the money in 
  4.35  the fund according to section 11A.24.  Investment income and 
  4.36  losses attributable to the fund must be credited to or deducted 
  5.1   from the fund. 
  5.2      Sec. 2.  [EFFECTIVE DATE.] 
  5.3      Section 1 is effective July 1, 1999.