Minnesota2026Passed Legislature
HF3571
Allowing Watershed Districts and Towns to Self-Insure Employee Health Benefits
Last scannedAug 22, 2026, 3:39 AM
In one sentence
This law allows watershed districts, towns, cities, counties, school districts, and their related organizations with more than 100 employees to create self-insured health plans for workers.
What it does
- Allows eligible local government entities with over 100 employees to self-insure employee health benefits, including long-term disability but excluding life insurance.
- Permits two or more eligible entities to jointly self-insure if their combined workforce exceeds 100 employees.
- Requires all self-insurance plans to be certified and filed by the Department of Commerce before they can operate.
- Mandates that employers must notify and consult with employee representatives at least ten days in writing before adopting a new self-insured plan for represented workers.
- Requires 30 days' written notice to employees and their representatives, plus approval from the largest representative group, before closing a single-entity self-insurance fund.
Who it affects
- Statutory or home rule charter cities
- Counties
- Towns
- School districts
- Watershed districts and watershed management organizations
- Instrumentalities of these entities with more than 100 employees (or combined total for joint plans)
- Employees covered by health benefit plans in these entities
Limits and unknowns
- This law only applies if the entity has more than 100 employees, or if multiple entities combine for a total of over 100.
- Self-insurance plans cannot cover employee life insurance benefits.
- The specific effective date is not listed in the provided text.
Plain language
Terms to know
- Self-insure
- When an employer pays directly for employee health costs instead of buying a policy from an insurance company.
- Watershed district
- A local government unit created to manage water resources and land use in a specific area.
- Exclusive representative
- The union or group officially certified by employees to negotiate their benefits and working conditions.
Official record
Sources
Official summary
Watershed districts allowed to self-insure for certain employee health benefits, and technical changes made.
Official activity
Bill history
- See Senate file in House SF3887House
- Bills not identical, SF substituted on General RegisterHouse
- Referred to Chief Clerk for comparison with SF3887House
- Committee report, to adopt as amendedHouse
- Author added McDonaldHouse
- Authors added Tabke and ChaHouse
- Introduction and first reading, referred to Elections Finance and Government OperationsHouse