1.1                          A bill for an act
  1.2             relating to public employees; providing for school 
  1.3             district employee coverage under the public employee 
  1.4             insurance program; allowing for competitive bidding 
  1.5             under the public employee insurance program; 
  1.6             establishing a statewide health insurance plan for 
  1.7             school district employees; providing for 
  1.8             postretirement health insurance coverage; establishing 
  1.9             a labor-management team to design the insurance plan; 
  1.10            appropriating money; amending Minnesota Statutes 2000, 
  1.11            section 43A.316, subdivisions 3, 10, by adding a 
  1.12            subdivision; proposing coding for new law in Minnesota 
  1.13            Statutes, chapter 43A. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 2000, section 43A.316, 
  1.16  subdivision 3, is amended to read: 
  1.17     Subd. 3.  [PUBLIC EMPLOYEE INSURANCE PROGRAM.] (a) The 
  1.18  commissioner shall be the administrator of the public employee 
  1.19  insurance program and may determine its funding arrangements.  
  1.20  The commissioner shall model the program after the plan 
  1.21  established in section 43A.18, subdivision 2, but may modify 
  1.22  that plan, in consultation with the labor-management committee.  
  1.23     (b) Notwithstanding paragraph (a), all employees covered by 
  1.24  the program shall be in a single pool for purposes of coverage 
  1.25  and premiums. 
  1.26     Sec. 2.  Minnesota Statutes 2000, section 43A.316, 
  1.27  subdivision 10, is amended to read: 
  1.28     Subd. 10.  [EXEMPTION.] The public employee insurance 
  1.29  program and, where applicable, the employers participating in it 
  2.1   are exempt from chapters 60A, 62A, 62C, 62D, 62E, and 62H, 
  2.2   section 471.617, subdivisions 2 and 3, and the bidding 
  2.3   requirements of section 471.6161. 
  2.4      Sec. 3.  Minnesota Statutes 2000, section 43A.316, is 
  2.5   amended by adding a subdivision to read: 
  2.6      Subd. 11.  [COMPETITIVE BIDDING.] The public employee 
  2.7   insurance program and, where applicable, the employers 
  2.8   participating in it are subject to the bidding requirements of 
  2.9   section 471.6161. 
  2.10     Sec. 4.  [43A.3175] [SCHOOL EMPLOYEE INSURANCE PLAN.] 
  2.11     Subdivision 1.  [DEFINITIONS.] For purposes of this section:
  2.12     (1) "eligible employee" means a person who is a public 
  2.13  employee within the definition of section 179A.03 who is 
  2.14  insurance eligible and is employed by an eligible employer, or 
  2.15  by an exclusive representative of employees of an eligible 
  2.16  employer, so long as the plan meets the requirements of a 
  2.17  governmental plan under United States Code, title 29, section 
  2.18  1002(32); and 
  2.19     (2) "eligible employer" means a school district as defined 
  2.20  in section 120A.05, a service cooperative as defined in section 
  2.21  123A.21, an intermediate district as defined in section 136D.01, 
  2.22  a cooperative center for vocational education as defined in 
  2.23  section 123A.22, a regional management information center as 
  2.24  defined in section 123A.23, an education unit organized under 
  2.25  section 471.59, or an exclusive representative of employees of 
  2.26  an eligible employer or statewide affiliate. 
  2.27     Subd. 2.  [INSURANCE PLAN.] All eligible employers may 
  2.28  participate in the school employee insurance plan.  The plan 
  2.29  provides health insurance coverage for all eligible employees of 
  2.30  eligible employers, except that an eligible employer may elect 
  2.31  not to have its employees participate in the plan so long as 
  2.32  they are eligible for health coverage through another plan, the 
  2.33  cost of which is fully or partially covered by the eligible 
  2.34  employer.  In addition, the plan provides an individual trust 
  2.35  fund for each retired eligible employee, to be used for health 
  2.36  care cost, funded through contributions made while the retiree 
  3.1   was an active eligible employee. 
  3.2      Subd. 3.  [PLAN PROVIDER.] The school employee insurance 
  3.3   plan is provided through the public employees insurance program 
  3.4   under section 43A.316. 
  3.5      Subd. 4.  [LABOR-MANAGEMENT BOARD.] The plan is governed by 
  3.6   a labor-management board that makes determinations regarding 
  3.7   plan specifications, structure, benefits, and premiums.  Each 
  3.8   statewide affiliate of an exclusive representative of eligible 
  3.9   employees with at least 1,500 employees participating in the 
  3.10  plan is entitled to appoint one member to the board.  Statewide 
  3.11  affiliates of exclusive representatives of eligible employees 
  3.12  with at least 1,500 employees participating in the plan are 
  3.13  entitled to appoint members to the board, provided that the 
  3.14  total number of such members must be seven.  These seven board 
  3.15  positions must be allocated among statewide affiliates 
  3.16  proportionally based upon their relative numbers of employees 
  3.17  enrolled in the plan.  The Minnesota school boards association 
  3.18  is entitled to appoint seven members representing eligible 
  3.19  employers to the board.  Board members are eligible for expense 
  3.20  reimbursement in the same manner and amount as authorized by the 
  3.21  commissioner's plan adopted under section 43A.18, subdivision 
  3.22  2.  The reimbursement must be paid from funds raised through the 
  3.23  insurance premium structure established by the board. 
  3.24     Sec. 5.  [PLAN CREATION.] 
  3.25     The plan specifications, structure, benefits, and premiums 
  3.26  must be determined by an interim labor-management committee 
  3.27  consisting of members appointed by the statewide affiliates of 
  3.28  exclusive representatives of eligible employees and an equal 
  3.29  number of members appointed by eligible employers.  The plan 
  3.30  specifications must include the following: 
  3.31     (1) requirement that all eligible employees covered by the 
  3.32  plan be in a single pool for purposes of coverage and premiums; 
  3.33     (2) provisions allowing eligible employers and the 
  3.34  exclusive representatives of eligible employees to collectively 
  3.35  bargain provision of health coverage and benefits in addition to 
  3.36  the base benefits provided under the plan; 
  4.1      (3) a mechanism for all retired employees to be eligible 
  4.2   for coverage provided by the school employees insurance plan.  
  4.3   The final determination regarding plan specifications, 
  4.4   structure, benefits, and premiums must be completed by March 1, 
  4.5   2003, allowing implementation no later than July 1, 2003; and 
  4.6      (4) all health insurance providers offering insurance to 
  4.7   employees of eligible employers as of the effective date of this 
  4.8   section shall provide to the school employee insurance plan 
  4.9   labor-management board all data on the groups claim experience 
  4.10  that the board requires to establish the rate structures for the 
  4.11  school employee insurance plan. 
  4.12     Sec. 6.  [CREATION OF INTERIM LABOR-MANAGEMENT COMMITTEE.] 
  4.13     (a) Each eligible statewide affiliate of an exclusive 
  4.14  representative of eligible employees, as defined in Minnesota 
  4.15  Statutes, section 43A.3175, subdivision 1, with at least 1,500 
  4.16  members statewide is entitled to appoint one member to serve on 
  4.17  the interim labor-management committee provided that the total 
  4.18  number of such members must be seven.  These seven board 
  4.19  positions must be allocated among statewide affiliates 
  4.20  proportionally based upon the relative numbers of eligible 
  4.21  employees whom they represent. 
  4.22     (b) The Minnesota school boards association is entitled to 
  4.23  appoint seven members representing eligible employers as defined 
  4.24  in Minnesota Statutes, section 43A.3175, subdivision 1.  
  4.25     (c) All appointments must be made no later than 30 days 
  4.26  after final enactment of this section. 
  4.27     (d) The commissioner of employee relations or the 
  4.28  commissioner's designee shall also be a member of the interim 
  4.29  labor-management committee, and the commissioner shall provide 
  4.30  administrative support to the committee.  
  4.31     (e) Committee members are eligible for expense 
  4.32  reimbursement in the same manner and amount as authorized by the 
  4.33  commissioner's plan adopted under Minnesota Statutes, section 
  4.34  43A.18, subdivision 2. 
  4.35     (f) The committee expires upon appointment of a 
  4.36  labor-management board, under Minnesota Statutes, section 
  5.1   43A.3175, subdivision 4. 
  5.2      Sec. 7.  [ESTABLISHMENT.] 
  5.3      The 2003 legislature is encouraged to establish an 
  5.4   incentive mechanism to encourage participation in the state 
  5.5   school employee insurance plan. 
  5.6      Sec. 8.  [APPROPRIATION.] 
  5.7      $....... is appropriated from the general fund to the 
  5.8   commissioner of employee relations for purposes of section 6. 
  5.9      Sec. 9.  [EFFECTIVE DATES.] 
  5.10     Sections 5, 6, and 8 are effective the day following final 
  5.11  enactment.  Sections 1 to 4 are effective July 1, 2003.