1.1                          A bill for an act 
  1.2             relating to public employees; requiring public 
  1.3             employees to fund a portion of the cost of state-paid 
  1.4             annual premiums due to rising health insurance costs; 
  1.5             amending Minnesota Statutes 2000, sections 43A.18, by 
  1.6             adding a subdivision; 43A.22; 43A.24; 43A.28; 43A.30, 
  1.7             subdivision 1, by adding a subdivision. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 2000, section 43A.18, is 
  1.10  amended by adding a subdivision to read: 
  1.11     Subd. 1a.  [QUALIFIED ECONOMIC OFFER.] (a) Notwithstanding 
  1.12  any law to the contrary, if the state negotiator offers an 
  1.13  exclusive representative certified under chapter 179A a biennial 
  1.14  contract that includes a mandatory reasonable employee copay or 
  1.15  similar contribution to defray rising employer health insurance 
  1.16  costs, the union or association members may not strike for any 
  1.17  issue relating to the mandatory copay or contribution for the 
  1.18  years covered by that contract or submit any issue relating to 
  1.19  the copay or contribution to interest arbitration under section 
  1.20  179A.16. 
  1.21     (b) This section is effective for contracts entered into 
  1.22  after June 30, 2003. 
  1.23     Sec. 2.  Minnesota Statutes 2000, section 43A.22, is 
  1.24  amended to read: 
  1.25     43A.22 [BENEFITS; INTENT.] 
  1.26     (a) It is the intent of the state to ~~provide~~ subsidize 
  2.1   eligible employees and other eligible persons ~~with~~ for the cost 
  2.2   of life insurance and hospital, medical, and dental benefits 
  2.3   coverage through provider organizations, hereafter referred to 
  2.4   as "carriers," authorized to do business in the state.  
  2.5      (b) The commissioner may self-insure any hospital and 
  2.6   medical plan offered under sections 43A.22 to 43A.31 to promote 
  2.7   reasonably stable and predictable premiums for hospital and 
  2.8   medical benefits paid by the state and its employees and to 
  2.9   promote affordable, ongoing relationships between employees and 
  2.10  dependents and their medical providers.  The commissioner shall 
  2.11  consult with the commissioners of commerce and health and human 
  2.12  services regarding the development and reporting of quality of 
  2.13  care measures. 
  2.14     Sec. 3.  Minnesota Statutes 2000, section 43A.24, is 
  2.15  amended to read: 
  2.16     43A.24 [ELIGIBILITY FOR ~~STATE PAID~~ STATE-SUBSIDIZED 
  2.17  INSURANCE AND BENEFITS.] 
  2.18     Subdivision 1.  [GENERAL.] Employees, including persons on 
  2.19  layoff from a civil service position, and employees who are 
  2.20  employed less than full time, shall be eligible for ~~state paid~~ 
  2.21  state-subsidized life insurance and hospital, medical and dental 
  2.22  benefits as provided in collective bargaining agreements or 
  2.23  plans established pursuant to section 43A.18.  
  2.24     Subd. 2.  [OTHER ELIGIBLE PERSONS.] The following persons 
  2.25  are eligible for ~~state paid~~ state-subsidized life insurance and 
  2.26  hospital, medical, and dental benefits as determined in 
  2.27  applicable collective bargaining agreements or by the 
  2.28  commissioner or by plans pursuant to section 43A.18, subdivision 
  2.29  6, or by the board of regents for employees of the University of 
  2.30  Minnesota not covered by collective bargaining agreements.  
  2.31  Coverages made available, including optional coverages, are as 
  2.32  contained in the plan established pursuant to section 43A.18, 
  2.33  subdivision 2: 
  2.34     (a) a member of the state legislature, provided that 
  2.35  changes in benefits resulting in increased costs to the state 
  2.36  shall not be effective until expiration of the term of the 
  3.1   members of the existing house of representatives.  An eligible 
  3.2   member of the state legislature may decline to be enrolled for 
  3.3   ~~state paid~~ state-subsidized coverages by filing a written waiver 
  3.4   with the commissioner.  The waiver shall not prohibit the member 
  3.5   from enrolling the member or dependents for optional coverages, 
  3.6   without cost to the state, as provided for in section 43A.26.  A 
  3.7   member of the state legislature who returns from a leave of 
  3.8   absence to a position previously occupied in the civil service 
  3.9   shall be eligible to receive the life insurance and hospital, 
  3.10  medical, and dental benefits to which the position is entitled; 
  3.11     (b) an employee of the legislature or an employee of a 
  3.12  permanent study or interim committee or commission or a state 
  3.13  employee on leave of absence to work for the legislature, during 
  3.14  a regular or special legislative session, as determined by the 
  3.15  legislative coordinating commission; 
  3.16     (c) a judge of the appellate courts or an officer or 
  3.17  employee of these courts; a judge of the district court, a judge 
  3.18  of county court, or a judge of county municipal court; a 
  3.19  district court referee, judicial officer, court reporter, or law 
  3.20  clerk; a district administrator; an employee of the office of 
  3.21  the district administrator that is not in the second or fourth 
  3.22  judicial district; a court administrator or employee of the 
  3.23  court administrator in a judicial district under section 
  3.24  480.181, subdivision 1, paragraph (b), and a guardian ad litem 
  3.25  program employee; 
  3.26     (d) a salaried employee of the public employees retirement 
  3.27  association; 
  3.28     (e) a full-time military or civilian officer or employee in 
  3.29  the unclassified service of the department of military affairs 
  3.30  whose salary is paid from state funds; 
  3.31     (f) a salaried employee of the Minnesota historical 
  3.32  society, whether paid from state funds or otherwise, who is not 
  3.33  a member of the governing board; 
  3.34     (g) an employee of the regents of the University of 
  3.35  Minnesota; 
  3.36     (h) notwithstanding section 43A.27, subdivision 3, an 
  4.1   employee of the state of Minnesota or the regents of the 
  4.2   University of Minnesota who is at least 60 and not yet 65 years 
  4.3   of age on July 1, 1982, who is otherwise eligible for employee 
  4.4   and dependent insurance and benefits pursuant to section 43A.18 
  4.5   or other law, who has at least 20 years of service and retires, 
  4.6   earlier than required, within 60 days of March 23, 1982; or an 
  4.7   employee who is at least 60 and not yet 65 years of age on July 
  4.8   1, 1982, who has at least 20 years of state service and retires, 
  4.9   earlier than required, from employment at Rochester state 
  4.10  hospital after July 1, 1981; or an employee who is at least 55 
  4.11  and not yet 65 years of age on July 1, 1982, and is covered by 
  4.12  the Minnesota state retirement system correctional employee 
  4.13  retirement plan or the state patrol retirement fund, who has at 
  4.14  least 20 years of state service and retires, earlier than 
  4.15  required, within 60 days of March 23, 1982.  For purposes of 
  4.16  this clause, a person retires when the person terminates active 
  4.17  employment in state or University of Minnesota service and 
  4.18  applies for a retirement annuity.  Eligibility shall cease when 
  4.19  the retired employee attains the age of 65, or when the employee 
  4.20  chooses not to receive the annuity that the employee has applied 
  4.21  for.  The retired employee shall be eligible for coverages to 
  4.22  which the employee was entitled at the time of retirement, 
  4.23  subject to any changes in coverage through collective bargaining 
  4.24  or plans established pursuant to section 43A.18, for employees 
  4.25  in positions equivalent to that from which retired, provided 
  4.26  that the retired employee shall not be eligible for ~~state-paid~~ 
  4.27  state-subsidized life insurance.  Coverages shall be coordinated 
  4.28  with relevant health insurance benefits provided through the 
  4.29  federally sponsored Medicare program; 
  4.30     (i) an employee of an agency of the state of Minnesota 
  4.31  identified through the process provided in this paragraph who is 
  4.32  eligible to retire prior to age 65.  The commissioner and the 
  4.33  exclusive representative of state employees shall enter into 
  4.34  agreements under section 179A.22 to identify employees whose 
  4.35  positions are in programs that are being permanently eliminated 
  4.36  or reduced due to federal or state policies or practices.  
  5.1   Failure to reach agreement identifying these employees is not 
  5.2   subject to impasse procedures provided in chapter 179A.  The 
  5.3   commissioner must prepare a plan identifying eligible employees 
  5.4   not covered by a collective bargaining agreement in accordance 
  5.5   with the process outlined in section 43A.18, subdivisions 2 and 
  5.6   3.  For purposes of this paragraph, a person retires when the 
  5.7   person terminates active employment in state service and applies 
  5.8   for a retirement annuity.  Eligibility ends as provided in the 
  5.9   agreement or plan, but must cease at the end of the month in 
  5.10  which the retired employee chooses not to receive an annuity, or 
  5.11  the employee is eligible for employer-paid health insurance from 
  5.12  a new employer.  The retired employees shall be eligible for 
  5.13  coverages to which they were entitled at the time of retirement, 
  5.14  subject to any changes in coverage through collective bargaining 
  5.15  or plans established under section 43A.18 for employees in 
  5.16  positions equivalent to that from which they retired, provided 
  5.17  that the retired employees shall not be eligible for ~~state-paid~~ 
  5.18  state-subsidized life insurance; 
  5.19     (j) employees of the state board of public defense, with 
  5.20  eligibility determined by the state board of public defense in 
  5.21  consultation with the commissioner of employee relations; and 
  5.22     (k) employees of the health data institute under section 
  5.23  62J.451, subdivision 12, as paid for by the health data 
  5.24  institute. 
  5.25     Sec. 4.  Minnesota Statutes 2000, section 43A.28, is 
  5.26  amended to read: 
  5.27     43A.28 [ENROLLMENT.] 
  5.28     The time, manner, and conditions and terms of eligibility 
  5.29  for enrollment of persons eligible for ~~state paid~~ 
  5.30  state-subsidized or individual paid life insurance, hospital, 
  5.31  medical and dental benefits, and optional coverages authorized 
  5.32  shall be determined and prescribed by the commissioner according 
  5.33  to collective bargaining agreements and plans established 
  5.34  pursuant to section 43A.18.  
  5.35     Sec. 5.  Minnesota Statutes 2000, section 43A.30, 
  5.36  subdivision 1, is amended to read: 
  6.1      Subdivision 1.  [PAYMENTS FROM AGENCY REVENUES.] Each 
  6.2   agency shall pay the amounts due for ~~state paid~~ state-subsidized 
  6.3   life insurance and hospital, medical and dental benefits 
  6.4   coverage authorized for eligible employees pursuant to this 
  6.5   chapter.  
  6.6      Each agency shall pay the amounts from accounts and funds 
  6.7   from which the agency receives its revenues, including 
  6.8   appropriations from the general fund and from any other fund, 
  6.9   now or hereafter existing for the payment of salaries and in the 
  6.10  same proportion as it pays therefrom the amounts of salaries.  
  6.11  In order to enable the commissioner of finance to maintain 
  6.12  proper records covering the appropriations pursuant to this 
  6.13  section, the commissioner of finance may require certifications 
  6.14  in connection with payments as the commissioner of finance deems 
  6.15  necessary from the Minnesota historical society, the University 
  6.16  of Minnesota, or any agency whose employees receive benefits 
  6.17  pursuant to this chapter.  The accounts and funds from which 
  6.18  agencies receive appropriations under the terms of this section 
  6.19  are a source of revenue for the purposes of any other law or 
  6.20  statutory enactment.  
  6.21     Sec. 6.  Minnesota Statutes 2000, section 43A.30, is 
  6.22  amended by adding a subdivision to read: 
  6.23     Subd. 7.  [EMPLOYEE CONTRIBUTION.] In accordance with the 
  6.24  commissioner's authority as granted in sections 43A.04, 
  6.25  subdivision 1a, clause (2); 43A.30, subdivision 5; 43A.316; and 
  6.26  43A.317, the commissioner shall require that eligible public 
  6.27  employees as defined in section 43A.24, subdivisions 1 and 2, 
  6.28  make a contribution toward employee and dependent health 
  6.29  insurance premiums as outlined in applicable contracts or plans.