1.1                          A bill for an act 
  1.2             relating to public employees; limiting the state 
  1.3             contribution for hospital, medical, and dental 
  1.4             premiums; reducing local government aid to cities and 
  1.5             counties; reducing state aid payments to school 
  1.6             districts; amending Minnesota Statutes 2002, section 
  1.7             43A.29; proposing coding for new law in Minnesota 
  1.8             Statutes, chapter 477A. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2002, section 43A.29, is 
  1.11  amended to read: 
  1.12     43A.29 [CONTRIBUTIONS BY STATE.] 
  1.13     The total contribution by the state for eligible state 
  1.14  employees and for dependents of eligible state employees shall 
  1.15  be prescribed by collective bargaining agreements or plans 
  1.16  established pursuant to section 43A.18, subject to the limits in 
  1.17  this section.  The total contribution by the state for hospital 
  1.18  and medical coverage for eligible state employees and for 
  1.19  dependents of eligible state employees is limited to 80 percent 
  1.20  of the premium cost.  The total contribution by the state for 
  1.21  dental coverage for eligible state employees and for dependents 
  1.22  of eligible state employees is limited to 50 percent of the 
  1.23  premium cost. 
  1.24     Sec. 2.  [477A.0133] [AID REDUCTION FOR HEALTH CARE 
  1.25  COVERAGE CONTRIBUTIONS.] 
  1.26     Subdivision 1.  [CITY AID REDUCTION.] In calendar year 2004 
  1.27  and calendar year 2005, the commissioner of revenue shall reduce 
  2.1   the aid amount for each city in an amount equivalent to 20 
  2.2   percent of the premium costs for city employee hospital and 
  2.3   medical coverage plus 50 percent of the premium costs for city 
  2.4   employee dental coverage.  Each city shall certify to the 
  2.5   commissioner estimated premium costs for city employees by July 
  2.6   15, 2003, and July 15, 2004.  The reduction is applied first to 
  2.7   the city's distribution pursuant to section 477A.013, and then, 
  2.8   if necessary, to the city's reimbursements pursuant to section 
  2.9   273.1384. 
  2.10     Subd. 2.  [COUNTY AID REDUCTION.] In calendar year 2004 and 
  2.11  calendar year 2005, the commissioner of revenue shall reduce the 
  2.12  aid amount for each county in an amount equivalent to 20 percent 
  2.13  of the premium costs for county employee hospital and medical 
  2.14  coverage plus 50 percent of the premium costs for county 
  2.15  employee dental coverage.  Each county shall certify to the 
  2.16  commissioner estimated premium costs for county employees by 
  2.17  July 15, 2003, and July 15, 2004.  The reduction is applied 
  2.18  first to reduce the county's distribution pursuant to section 
  2.19  273.138, then to reduce, in this sequence, the aid payable under 
  2.20  sections 273.1398, subdivision 2; 273.166; 477A.0121; and 
  2.21  477A.0122.  Then, if necessary, the county's reimbursements 
  2.22  pursuant to section 273.1384, are to be reduced. 
  2.23     Sec. 3.  [SCHOOL DISTRICT STATE AID PAYMENTS REDUCED.] 
  2.24     For the 2003-2004 and 2004-2005 school years, state aid 
  2.25  payments to each school district are reduced by an amount 
  2.26  equivalent to 20 percent of the premium costs for district 
  2.27  employee hospital and medical coverage in the 2002-2003 school 
  2.28  year plus 50 percent of the premium costs for district employee 
  2.29  dental coverage in the 2002-2003 school year. 
  2.30     Sec. 4.  [EFFECTIVE DATE; APPLICABILITY.] 
  2.31     Section 1 is effective July 1, 2003, and applies to any 
  2.32  collective bargaining agreements or other plans negotiated or 
  2.33  entered into on or after that date.  Sections 2 and 3 are 
  2.34  effective on July 1, 2003.