<div class="xtend">
         <div class="xtend_ce"><a id="pl.1.1"></a><var>1.1</var>A bill for an act<br />
            		
         </div><a id="pl.1.2"></a><var>1.2</var>relating to insurance; requiring school districts to obtain employee health <br />
         		<a id="pl.1.3"></a><var>1.3</var>coverage through the public employees insurance program; imposing a gross <br />
         		<a id="pl.1.4"></a><var>1.4</var>premiums tax on the program; imposing an enrollment fee;amending Minnesota <br />
         		<a id="pl.1.5"></a><var>1.5</var>Statutes 2008, sections 43A.316, subdivisions 9, 10, by adding subdivisions; <br />
         		<a id="pl.1.6"></a><var>1.6</var>62E.02, subdivision 23; 62E.10, subdivision 1; 62E.11, subdivision 5; 297I.05, <br />
         		<a id="pl.1.7"></a><var>1.7</var>by adding a subdivision; 297I.15, subdivision 3.<br />
         		<a id="pl.1.8"></a><var>1.8</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br />
         		<br />
         		<a id="bill.0.1.0"></a><a id="pl.1.9"></a><var>1.9</var>&nbsp;&nbsp;&nbsp;&nbsp;Section 1. Minnesota Statutes 2008, section 43A.316, is amended by adding a <br />
         		<a id="pl.1.10"></a><var>1.10</var>subdivision to read:<br />
         		<a id="pl.1.11"></a><var>1.11</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3a. <b>Health improvement programs.</b> The commissioner, with the approval <br />
         		<a id="pl.1.12"></a><var>1.12</var>of the school employee insurance committee, is authorized to plan, develop, purchase, <br />
         		<a id="pl.1.13"></a><var>1.13</var>administer, and evaluate disease management and other programs, strategies, and <br />
         		<a id="pl.1.14"></a><var>1.14</var>incentives to improve the health and health outcomes of members.<br />
         		<br />
         		<a id="bill.0.2.0"></a><a id="pl.1.15"></a><var>1.15</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 2. Minnesota Statutes 2008, section 43A.316, subdivision 9, is amended to read:<br />
         		<a id="pl.1.16"></a><var>1.16</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 9. <b>Insurance trust fund.</b> (a) The insurance trust fund in the state treasury <br />
         		<a id="pl.1.17"></a><var>1.17</var>consists of deposits of the premiums received from employers participating in the <br />
         		<a id="pl.1.18"></a><var>1.18</var>program and transfers before July 1, 1994, from the excess contributions holding account <br />
         		<a id="pl.1.19"></a><var>1.19</var>established by section 
         <statute_ref>353.65, subdivision 7</statute_ref>. All money in the fund is appropriated to <br />
         		<a id="pl.1.20"></a><var>1.20</var>the commissioner to pay insurance premiums, approved claims, refunds, administrative <br />
         		<a id="pl.1.21"></a><var>1.21</var>costs, and other related service costs, including costs incurred under chapters 62E and <br />
         		<a id="pl.1.22"></a><var>1.22</var>297I in connection with the school employee insurance program. Premiums paid by <br />
         		<a id="pl.1.23"></a><var>1.23</var>employers to the fund are exempt from the taxes imposed by chapter 297I, except as <br />
         		<a id="pl.1.24"></a><var>1.24</var>described in paragraph (b). The commissioner shall reserve an amount of money to cover <br />
         		<a id="pl.2.1"></a><var>2.1</var>the estimated costs of claims incurred but unpaid. The State Board of Investment shall <br />
         		<a id="pl.2.2"></a><var>2.2</var>invest the money according to section 
         <statute_ref>11A.24</statute_ref>. Investment income and losses attributable <br />
         		<a id="pl.2.3"></a><var>2.3</var>to the fund must be credited to the fund. <br />
         		<a id="pl.2.4"></a><var>2.4</var>(b) Notwithstanding paragraph (a), premium revenues collected from the school <br />
         		<a id="pl.2.5"></a><var>2.5</var>employee insurance program, described in subdivisions 12 and 13, are not exempt from <br />
         		<a id="pl.2.6"></a><var>2.6</var>the taxes imposed under section 297I.05, subdivision 15.<br />
         		<br />
         		<a id="bill.0.3.0"></a><a id="pl.2.7"></a><var>2.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 3. Minnesota Statutes 2008, section 43A.316, subdivision 10, is amended to read:<br />
         		<a id="pl.2.8"></a><var>2.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 10. <b>Exemption.</b> (a) The public employee insurance program and, where <br />
         		<a id="pl.2.9"></a><var>2.9</var>applicable, the employers participating in it are exempt from chapters 60A, 62A, 62C, <br />
         		<a id="pl.2.10"></a><var>2.10</var>62D, 62E, and 62H, section 
         <statute_ref>471.617, subdivisions 2 and 3</statute_ref>, and the bidding requirements <br />
         		<a id="pl.2.11"></a><var>2.11</var>of section 
         <statute_ref>471.6161</statute_ref>. <br />
         		<a id="pl.2.12"></a><var>2.12</var>(b) Notwithstanding paragraph (a), the school employee insurance program, <br />
         		<a id="pl.2.13"></a><var>2.13</var>described in subdivisions 12 and 13, is a contributing member of the Minnesota <br />
         		<a id="pl.2.14"></a><var>2.14</var>Comprehensive Health Association and must pay assessments made by the association on <br />
         		<a id="pl.2.15"></a><var>2.15</var>the premium revenue attributed to the school employee insurance program, prorated as <br />
         		<a id="pl.2.16"></a><var>2.16</var>provided in section 62E.11, subdivision 5, paragraph (b).<br />
         		<br />
         		<a id="bill.0.4.0"></a><a id="pl.2.17"></a><var>2.17</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 4. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision <br />
         		<a id="pl.2.18"></a><var>2.18</var>to read:<br />
         		<a id="pl.2.19"></a><var>2.19</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 11. <b>Definitions.</b> (a) For purposes of subdivisions 11 to 16, the terms defined <br />
         		<a id="pl.2.20"></a><var>2.20</var>in this subdivision have the meanings given.<br />
         		<a id="pl.2.21"></a><var>2.21</var>(b) "Eligible employee" means an employee of a school employer, a dependent of <br />
         		<a id="pl.2.22"></a><var>2.22</var>such an employee, a retiree, or other person, who is eligible for health insurance coverage <br />
         		<a id="pl.2.23"></a><var>2.23</var>under the school employer's plan.<br />
         		<a id="pl.2.24"></a><var>2.24</var>(c) "School Employee Insurance Committee" means the committee created in <br />
         		<a id="pl.2.25"></a><var>2.25</var>subdivision 14.<br />
         		<a id="pl.2.26"></a><var>2.26</var>(d) "School employer" means a school district as defined in section  120A.05, service <br />
         		<a id="pl.2.27"></a><var>2.27</var>cooperative as defined in section  123A.21, intermediate district as defined in section <br />
         		<a id="pl.2.28"></a><var>2.28</var>136D.01, Cooperative Center for Vocational Education as defined in section 123A.22, <br />
         		<a id="pl.2.29"></a><var>2.29</var>regional management information center as defined in section  123A.23, or an education <br />
         		<a id="pl.2.30"></a><var>2.30</var>unit organized under a joint powers agreement under section 471.59. <br />
         		<br />
         		<a id="bill.0.5.0"></a><a id="pl.2.31"></a><var>2.31</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 5. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision <br />
         		<a id="pl.2.32"></a><var>2.32</var>to read:<br />
         		<a id="pl.3.1"></a><var>3.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 12. <b>School employee insurance program.</b> The commissioner shall develop <br />
         		<a id="pl.3.2"></a><var>3.2</var>and administer within the public employees insurance program a separately rated and <br />
         		<a id="pl.3.3"></a><var>3.3</var>administered program for eligible employees of school employers, to be called the <br />
         		<a id="pl.3.4"></a><var>3.4</var>school employee insurance program. The initial offerings shall be the PEIP Advantage, <br />
         		<a id="pl.3.5"></a><var>3.5</var>Advantage Value, and Advantage HSA plans offered by the public employee insurance <br />
         		<a id="pl.3.6"></a><var>3.6</var>program. Health coverage offered through the school employee insurance program shall <br />
         		<a id="pl.3.7"></a><var>3.7</var>be made available beginning January 1, 2011.<br />
         		<br />
         		<a id="bill.0.6.0"></a><a id="pl.3.8"></a><var>3.8</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 6. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision <br />
         		<a id="pl.3.9"></a><var>3.9</var>to read:<br />
         		<a id="pl.3.10"></a><var>3.10</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 13. <b>Enrollment; school employee insurance program.</b> (a) A school <br />
         		<a id="pl.3.11"></a><var>3.11</var>employer that provides health coverage to eligible employees or contributes money to pay <br />
         		<a id="pl.3.12"></a><var>3.12</var>for all or part of the cost of health coverage for eligible employees, must purchase such <br />
         		<a id="pl.3.13"></a><var>3.13</var>coverage through the school employee insurance program under subdivision 12. School <br />
         		<a id="pl.3.14"></a><var>3.14</var>employers described in paragraph (b) may opt out as described in paragraphs (b) to (e).<br />
         		<a id="pl.3.15"></a><var>3.15</var>(b) Each exclusive representative of employees of a school employer which, on <br />
         		<a id="pl.3.16"></a><var>3.16</var>January 1, 2010, was individually self-insured or self-insured as a group shall determine <br />
         		<a id="pl.3.17"></a><var>3.17</var>whether the employees it represents will participate in the school employee insurance <br />
         		<a id="pl.3.18"></a><var>3.18</var>program, in the same manner described in subdivision 5, paragraph (b). Paragraphs (c), <br />
         		<a id="pl.3.19"></a><var>3.19</var>(d), and (e) below apply only to school employees of the school employers described in <br />
         		<a id="pl.3.20"></a><var>3.20</var>this paragraph.<br />
         		<a id="pl.3.21"></a><var>3.21</var>(c) School employees not represented by an exclusive representative may enter <br />
         		<a id="pl.3.22"></a><var>3.22</var>the school employee insurance program in the same manner described in subdivision 5, <br />
         		<a id="pl.3.23"></a><var>3.23</var>paragraph (c).<br />
         		<a id="pl.3.24"></a><var>3.24</var>(d) School employees who do not enter the program upon first becoming eligible <br />
         		<a id="pl.3.25"></a><var>3.25</var>for participation are ineligible to participate for four years and must be pooled and rated <br />
         		<a id="pl.3.26"></a><var>3.26</var>separately from the other enrollees in the school employee insurance program for the <br />
         		<a id="pl.3.27"></a><var>3.27</var>first four years after entering the program. This paragraph does not apply to a school <br />
         		<a id="pl.3.28"></a><var>3.28</var>employee upon later becoming a member of a school employee group that has not <br />
         		<a id="pl.3.29"></a><var>3.29</var>declined participation.<br />
         		<a id="pl.3.30"></a><var>3.30</var>(e) The decision of an exclusive representative of school employees or, in the case of <br />
         		<a id="pl.3.31"></a><var>3.31</var>unorganized employees, the decision of a school district, to enter into the school employee <br />
         		<a id="pl.3.32"></a><var>3.32</var>insurance program is irrevocable and applies to all future years.<br />
         		<a id="pl.3.33"></a><var>3.33</var>(f) Health coverage provided under the school employee insurance program to a <br />
         		<a id="pl.3.34"></a><var>3.34</var>retired employee of a school district, or to a dependent of the retired employee, must not <br />
         		<a id="pl.4.1"></a><var>4.1</var>be reduced as compared to the coverage to which the retired employee or dependent was <br />
         		<a id="pl.4.2"></a><var>4.2</var>entitled prior to enrollment in the school employee insurance program.<br />
         		<br />
         		<a id="bill.0.7.0"></a><a id="pl.4.3"></a><var>4.3</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 7. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision <br />
         		<a id="pl.4.4"></a><var>4.4</var>to read:<br />
         		<a id="pl.4.5"></a><var>4.5</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 14. <b>School Employee Insurance Committee.</b> (a) Notwithstanding any other <br />
         		<a id="pl.4.6"></a><var>4.6</var>provision of law, all plan design decisions, including all pilot or demonstration programs <br />
         		<a id="pl.4.7"></a><var>4.7</var>in which school employees participate, must first be developed by the School Employee <br />
         		<a id="pl.4.8"></a><var>4.8</var>Insurance Committee in consultation with the commissioner or the commissioner's <br />
         		<a id="pl.4.9"></a><var>4.9</var>designee and other consultants as the committee sees fit. This paragraph does not apply to <br />
         		<a id="pl.4.10"></a><var>4.10</var>the initial offerings specified in subdivision 12.<br />
         		<a id="pl.4.11"></a><var>4.11</var>(b) The committee must be composed of 14 members who represent school <br />
         		<a id="pl.4.12"></a><var>4.12</var>district employees and employers in equal number. The employee representatives shall <br />
         		<a id="pl.4.13"></a><var>4.13</var>be appointed as follows: four shall be appointed by Education Minnesota, one shall be <br />
         		<a id="pl.4.14"></a><var>4.14</var>appointed by the Service Employees International Union, one shall be appointed by the <br />
         		<a id="pl.4.15"></a><var>4.15</var>American Federation of State, County, and Municipal Employees, and one shall be <br />
         		<a id="pl.4.16"></a><var>4.16</var>appointed by the Minnesota School Employees Association. The seven school employer <br />
         		<a id="pl.4.17"></a><var>4.17</var>representatives who serve on the School Employee Insurance Committee must be <br />
         		<a id="pl.4.18"></a><var>4.18</var>appointed by the Minnesota School Boards Association. Members of the committee shall <br />
         		<a id="pl.4.19"></a><var>4.19</var>be appointed no later than August 1, 2009, and shall serve at the will of the appointing <br />
         		<a id="pl.4.20"></a><var>4.20</var>organization.<br />
         		<a id="pl.4.21"></a><var>4.21</var>(c) The School Employee Insurance Committee members are eligible for <br />
         		<a id="pl.4.22"></a><var>4.22</var>compensation and expense reimbursement under section 15.0575, subdivision 3. In <br />
         		<a id="pl.4.23"></a><var>4.23</var>addition, the actual salary lost by a committee member or cost charged by an employer of <br />
         		<a id="pl.4.24"></a><var>4.24</var>a committee member for time missed while performing the duties of a committee member <br />
         		<a id="pl.4.25"></a><var>4.25</var>must be reimbursed to the committee member.<br />
         		<br />
         		<a id="bill.0.8.0"></a><a id="pl.4.26"></a><var>4.26</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 8. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision <br />
         		<a id="pl.4.27"></a><var>4.27</var>to read:<br />
         		<a id="pl.4.28"></a><var>4.28</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>Reinsurance.</b> The commissioner may, on behalf of the program, <br />
         		<a id="pl.4.29"></a><var>4.29</var>participate in an insured or self-insured reinsurance pool.<br />
         		<br />
         		<a id="bill.0.9.0"></a><a id="pl.4.30"></a><var>4.30</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 9. Minnesota Statutes 2008, section 43A.316, is amended by adding a subdivision <br />
         		<a id="pl.4.31"></a><var>4.31</var>to read:<br />
         		<a id="pl.4.32"></a><var>4.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 16. <b>Nonidentifiable aggregate claims data from past coverage.</b> Upon <br />
         		<a id="pl.4.33"></a><var>4.33</var>request by the commissioner, entities that are providing or have provided coverage to <br />
         		<a id="pl.5.1"></a><var>5.1</var>eligible employees of school employers within two years before the effective date of <br />
         		<a id="pl.5.2"></a><var>5.2</var>this section, shall provide to the commissioner at no charge nonidentifiable aggregate <br />
         		<a id="pl.5.3"></a><var>5.3</var>claims data for that coverage. The information must include data relating to employee <br />
         		<a id="pl.5.4"></a><var>5.4</var>group benefit sets, demographics, and claims experience. Notwithstanding section 13.203, <br />
         		<a id="pl.5.5"></a><var>5.5</var>Minnesota service cooperatives must comply with this subdivision.<br />
         		<br />
         		<a id="bill.0.10.0"></a><a id="pl.5.6"></a><var>5.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 10. Minnesota Statutes 2008, section 62E.02, subdivision 23, is amended to read:<br />
         		<a id="pl.5.7"></a><var>5.7</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 23. <b>Contributing member.</b> "Contributing member" means those companies <br />
         		<a id="pl.5.8"></a><var>5.8</var>regulated under chapter 62A and offering, selling, issuing, or renewing policies or <br />
         		<a id="pl.5.9"></a><var>5.9</var>contracts of accident and health insurance; health maintenance organizations regulated <br />
         		<a id="pl.5.10"></a><var>5.10</var>under chapter 62D; nonprofit health service plan corporations regulated under chapter <br />
         		<a id="pl.5.11"></a><var>5.11</var>62C; community integrated service networks regulated under chapter 62N; fraternal <br />
         		<a id="pl.5.12"></a><var>5.12</var>benefit societies regulated under chapter 64B; the Minnesota employees insurance <br />
         		<a id="pl.5.13"></a><var>5.13</var>program established in section 
         <statute_ref>43A.317</statute_ref>, effective July 1, 1993; and joint self-insurance <br />
         		<a id="pl.5.14"></a><var>5.14</var>plans regulated under chapter 62H; and the school employee insurance program created <br />
         		<a id="pl.5.15"></a><var>5.15</var>under section 43A.316. For the purposes of determining liability of contributing members <br />
         		<a id="pl.5.16"></a><var>5.16</var>pursuant to section 
         <statute_ref>62E.11</statute_ref> payments received from or on behalf of Minnesota residents <br />
         		<a id="pl.5.17"></a><var>5.17</var>for coverage by a health maintenance organization or, a community integrated service <br />
         		<a id="pl.5.18"></a><var>5.18</var>network, or the school employee insurance program shall be considered to be accident <br />
         		<a id="pl.5.19"></a><var>5.19</var>and health insurance premiums.  <br />
         		<br />
         		<a id="bill.0.11.0"></a><a id="pl.5.20"></a><var>5.20</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 11. Minnesota Statutes 2008, section 62E.10, subdivision 1, is amended to read:<br />
         		<a id="pl.5.21"></a><var>5.21</var>&nbsp;&nbsp;&nbsp;&nbsp;Subdivision 1. <b>Creation </b><b>and membership</b><b>; tax exemption.</b> (a) There is established <br />
         		<a id="pl.5.22"></a><var>5.22</var>a Comprehensive Health Association to promote the public health and welfare of the state <br />
         		<a id="pl.5.23"></a><var>5.23</var>of Minnesota with membership consisting of all insurers; self-insurers; fraternals; joint <br />
         		<a id="pl.5.24"></a><var>5.24</var>self-insurance plans regulated under chapter 62H; the Minnesota employees insurance <br />
         		<a id="pl.5.25"></a><var>5.25</var>program established in section 
         <statute_ref>43A.317</statute_ref>, effective July 1, 1993; the school employee <br />
         		<a id="pl.5.26"></a><var>5.26</var>insurance program created under section 
         <statute_ref>43A.316</statute_ref>, subdivision 12; health maintenance <br />
         		<a id="pl.5.27"></a><var>5.27</var>organizations; and community integrated service networks licensed or authorized to do <br />
         		<a id="pl.5.28"></a><var>5.28</var>business in this state. <br />
         		<a id="pl.5.29"></a><var>5.29</var>(b) The Comprehensive Health Association is exempt from the taxes imposed under <br />
         		<a id="pl.5.30"></a><var>5.30</var>chapter 297I and any other laws of this state and all property owned by the association <br />
         		<a id="pl.5.31"></a><var>5.31</var>is exempt from taxation.  <br />
         		<br />
         		<a id="bill.0.12.0"></a><a id="pl.5.32"></a><var>5.32</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 12. Minnesota Statutes 2008, section 62E.11, subdivision 5, is amended to read:<br />
         		<a id="pl.6.1"></a><var>6.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 5. <b>Allocation of losses.</b> (a) Each contributing member of the association shall <br />
         		<a id="pl.6.2"></a><var>6.2</var>share the losses due to claims expenses of the comprehensive health insurance plan for <br />
         		<a id="pl.6.3"></a><var>6.3</var>plans issued or approved for issuance by the association, and shall share in the operating <br />
         		<a id="pl.6.4"></a><var>6.4</var>and administrative expenses incurred or estimated to be incurred by the association <br />
         		<a id="pl.6.5"></a><var>6.5</var>incident to the conduct of its affairs. Claims expenses of the state plan which exceed <br />
         		<a id="pl.6.6"></a><var>6.6</var>the premium payments allocated to the payment of benefits shall be the liability of the <br />
         		<a id="pl.6.7"></a><var>6.7</var>contributing members. Contributing members shall share in the claims expense of the <br />
         		<a id="pl.6.8"></a><var>6.8</var>state plan and operating and administrative expenses of the association in an amount equal <br />
         		<a id="pl.6.9"></a><var>6.9</var>to the ratio of the contributing member's total accident and health insurance premium, <br />
         		<a id="pl.6.10"></a><var>6.10</var>received from or on behalf of Minnesota residents as divided by the total accident and <br />
         		<a id="pl.6.11"></a><var>6.11</var>health insurance premium, received by all contributing members from or on behalf of <br />
         		<a id="pl.6.12"></a><var>6.12</var>Minnesota residents, as determined by the commissioner. Payments made by the state <br />
         		<a id="pl.6.13"></a><var>6.13</var>to a contributing member for medical assistance, MinnesotaCare, or general assistance <br />
         		<a id="pl.6.14"></a><var>6.14</var>medical care services according to chapters 256, 256B, and 256D shall be excluded when <br />
         		<a id="pl.6.15"></a><var>6.15</var>determining a contributing member's total premium.<br />
         		<a id="pl.6.16"></a><var>6.16</var>&nbsp;&nbsp;&nbsp;&nbsp;(b) In making the allocation of losses provided in paragraph (a) in each future year, <br />
         		<a id="pl.6.17"></a><var>6.17</var>the association's assessment against the school employee insurance program must be <br />
         		<a id="pl.6.18"></a><var>6.18</var>based on premiums received by the school employee insurance program in that future year <br />
         		<a id="pl.6.19"></a><var>6.19</var>from the school employers that, on May 1, 2009, were receiving health care coverage <br />
         		<a id="pl.6.20"></a><var>6.20</var>from a contributing member of the association. The association shall assess the premiums <br />
         		<a id="pl.6.21"></a><var>6.21</var>paid in each future year by those employers at the same rate as premiums paid to other <br />
         		<a id="pl.6.22"></a><var>6.22</var>members of the association. For purposes of this calculation, premiums of the program <br />
         		<a id="pl.6.23"></a><var>6.23</var>used must be net of rate credits and retroactive rate refunds on the same basis as the <br />
         		<a id="pl.6.24"></a><var>6.24</var>premiums of other association members.<br />
         		<br />
         		<a id="bill.0.13.0"></a><a id="pl.6.25"></a><var>6.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 13. Minnesota Statutes 2008, section 297I.05, is amended by adding a subdivision <br />
         		<a id="pl.6.26"></a><var>6.26</var>to read:<br />
         		<a id="pl.6.27"></a><var>6.27</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 15. <b>School employee insurance program.</b> A tax is imposed on the school <br />
         		<a id="pl.6.28"></a><var>6.28</var>employee insurance program created under section 43A.316, subdivision 12. The tax must <br />
         		<a id="pl.6.29"></a><var>6.29</var>be assessed upon gross premiums less return premiums received by the school employee <br />
         		<a id="pl.6.30"></a><var>6.30</var>insurance program in that calendar year from employees of a school district that, on May 1, <br />
         		<a id="pl.6.31"></a><var>6.31</var>2009, was purchasing health care coverage from an entity that is required to pay tax under <br />
         		<a id="pl.6.32"></a><var>6.32</var>subdivision 1, 3, 4, or 5. The commissioner shall assess the premiums paid in each year to <br />
         		<a id="pl.6.33"></a><var>6.33</var>the school employee insurance program by those employers at the same rate as premiums <br />
         		<a id="pl.6.34"></a><var>6.34</var>paid by the entities under subdivision 1, 3, 4, or 5 as applicable to the school district.<br />
         		<br />
         		<a id="bill.0.14.0"></a><a id="pl.7.1"></a><var>7.1</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 14. Minnesota Statutes 2008, section 297I.15, subdivision 3, is amended to read:<br />
         		<a id="pl.7.2"></a><var>7.2</var>&nbsp;&nbsp;&nbsp;&nbsp;Subd. 3. <b>Public employees insurance program.</b> Premiums paid to the public <br />
         		<a id="pl.7.3"></a><var>7.3</var>employees insurance program under section 
         <statute_ref>43A.316</statute_ref> are exempt from the taxes imposed <br />
         		<a id="pl.7.4"></a><var>7.4</var>under this chapter, except for premiums paid to the school employee insurance program as <br />
         		<a id="pl.7.5"></a><var>7.5</var>provided in section 297I.05, subdivision 15.<br />
         		<br />
         		<a id="bill.0.15.0"></a><a id="pl.7.6"></a><var>7.6</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 15. <b>START-UP FUNDING; ADMINISTRATION OF ONGOING </b><br />
         		<a id="pl.7.7"></a><var>7.7</var><b>REVENUES AND EXPENSES.</b><br />
         		<a id="pl.7.8"></a><var>7.8</var>(a) The commissioner of Minnesota Management and Budget shall use funds <br />
         		<a id="pl.7.9"></a><var>7.9</var>available in the insurance trust fund under Minnesota Statutes, section 43A.316, <br />
         		<a id="pl.7.10"></a><var>7.10</var>subdivision 9, in the form of temporary funding to pay for the administrative start-up <br />
         		<a id="pl.7.11"></a><var>7.11</var>costs necessary under this act. In addition to the amounts of temporary funding, the <br />
         		<a id="pl.7.12"></a><var>7.12</var>commissioner shall determine the amount of interest lost to the insurance trust fund as a <br />
         		<a id="pl.7.13"></a><var>7.13</var>result of the temporary funding.<br />
         		<a id="pl.7.14"></a><var>7.14</var>(b) The commissioner of Minnesota Management and Budget shall impose an <br />
         		<a id="pl.7.15"></a><var>7.15</var>enrollment fee upon the premium charged for the first three months of coverage under the <br />
         		<a id="pl.7.16"></a><var>7.16</var>school employee insurance program created in this act sufficient to repay to the insurance <br />
         		<a id="pl.7.17"></a><var>7.17</var>trust fund the loans provided to cover the start-up costs incurred by the commissioner <br />
         		<a id="pl.7.18"></a><var>7.18</var>under paragraph (a), plus foregone interest to the insurance trust fund, as determined <br />
         		<a id="pl.7.19"></a><var>7.19</var>under paragraph (a). The commissioner shall deposit the enrollment fees in the insurance <br />
         		<a id="pl.7.20"></a><var>7.20</var>trust fund.<br />
         		<a id="pl.7.21"></a><var>7.21</var>(c) All costs incurred and revenue received by the commissioner of Minnesota <br />
         		<a id="pl.7.22"></a><var>7.22</var>Management and Budget under this act in addition to those dealt with in paragraphs (a) <br />
         		<a id="pl.7.23"></a><var>7.23</var>and (b), shall on an ongoing basis be deposited into and paid out of the insurance trust fund <br />
         		<a id="pl.7.24"></a><var>7.24</var>as provided in Minnesota Statutes, section 43A.316, subdivision 9, as amended in this act.<br />
         		<br />
         		<a id="bill.0.16.0"></a><a id="pl.7.25"></a><var>7.25</var>&nbsp;&nbsp;&nbsp;&nbsp;Sec. 16. <b>EFFECTIVE DATE.</b><br />
         		<a id="pl.7.26"></a><var>7.26</var>Sections 1 to 15 are effective for coverage to begin January 1, 2011.<br />
         		
      </div>