1.1                          A bill for an act 
  1.2             relating to education; authorizing school districts to 
  1.3             levy for insurance costs; amending Minnesota Statutes 
  1.4             1994, sections 124.912, subdivision 1; and 466.06. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1994, section 124.912, 
  1.7   subdivision 1, is amended to read: 
  1.8      Subdivision 1.  [STATUTORY OBLIGATIONS.] (a) A school 
  1.9   district may levy the amounts necessary to pay the district's 
  1.10  obligations under section 6.62; the amount authorized for 
  1.11  liabilities of dissolved districts pursuant to section 122.45; 
  1.12  the amounts necessary to pay the district's obligations under 
  1.13  section 268.06, subdivision 25; the amounts necessary to pay for 
  1.14  job placement services offered to employees who may become 
  1.15  eligible for benefits pursuant to section 268.08; the amounts 
  1.16  necessary to pay the district's obligations under section 
  1.17  127.05; the amounts authorized by section 122.531; the amounts 
  1.18  necessary to pay the district's obligations under section 
  1.19  122.533; and for severance pay required by sections 120.08, 
  1.20  subdivision 3, and 122.535, subdivision 6; and for the amounts 
  1.21  necessary to pay the district's insurance premium costs under 
  1.22  section 466.06. 
  1.23     (b) An education district that negotiates a collective 
  1.24  bargaining agreement for teachers under section 122.937 may 
  1.25  certify to the department of education the amount necessary to 
  2.1   pay all of the member districts' obligations and the education 
  2.2   district's obligations under section 268.06, subdivision 25. 
  2.3      The department of education must allocate the levy amount 
  2.4   proportionately among the member districts based on adjusted net 
  2.5   tax capacity.  The member districts must levy the amount 
  2.6   allocated. 
  2.7      (c) Each year, a member district of an education district 
  2.8   that levies under this subdivision must transfer the amount of 
  2.9   revenue certified under paragraph (b) to the education district 
  2.10  board according to this subdivision.  By June 20 and November 30 
  2.11  of each year, an amount must be transferred equal to: 
  2.12     (1) 50 percent times 
  2.13     (2) the amount certified in paragraph (b) minus homestead 
  2.14  and agricultural credit aid allocated for that levy according to 
  2.15  section 273.1398, subdivision 6. 
  2.16     Sec. 2.  Minnesota Statutes 1994, section 466.06, is 
  2.17  amended to read: 
  2.18     466.06 [LIABILITY INSURANCE.] 
  2.19     The governing body of any municipality may procure 
  2.20  insurance against liability of the municipality and its 
  2.21  officers, employees, and agents for damages, including punitive 
  2.22  damages, resulting from its torts and those of its officers, 
  2.23  employees, and agents, including torts specified in section 
  2.24  466.03 for which the municipality is immune from liability.  The 
  2.25  insurance may provide protection in excess of the limit of 
  2.26  liability imposed by section 466.04.  If a municipality other 
  2.27  than a school district has the authority to levy taxes, the 
  2.28  premium costs for such insurance may be levied in excess of any 
  2.29  per capita or local tax rate tax limitation imposed by statute 
  2.30  or charter.  Any independent board or commission in the 
  2.31  municipality having authority to disburse funds for a particular 
  2.32  municipal function without approval of the governing body may 
  2.33  similarly procure liability insurance with respect to the field 
  2.34  of its operation.  The procurement of such insurance constitutes 
  2.35  a waiver of the limits of governmental liability under section 
  2.36  466.04 only to the extent that valid and collectible insurance, 
  3.1   including where applicable, proceeds from the Minnesota 
  3.2   Guarantee Fund, exceeds those limits and covers the claim.  The 
  3.3   purchase of insurance has no other effect on the liability of 
  3.4   the municipality or its employees.  Procurement of commercial 
  3.5   insurance, participation in a self-insurance pool pursuant to 
  3.6   section 471.981, or provision for an individual self-insurance 
  3.7   plan with or without a reserve fund or reinsurance shall not 
  3.8   constitute a waiver of any governmental immunities or exclusions.