School employee health insurance provided, minimum starting salary for nonlicensed school personnel increased, paraprofessional paid orientation and professional development provided, and money appropriated.

A bill for an act

relating to education finance; providing for school employee health insurance;

increasing the minimum starting salary for nonlicensed school personnel; providing

for paid orientation and professional development for paraprofessionals;

appropriating money; amending Minnesota Statutes 2024, sections 43A.316,

subdivisions 2, 3, 5, 7, 8, by adding subdivisions; 121A.642, as amended; 125A.08,

subdivision 2; Laws 2025, First Special Session chapter 10, article 2, section 24,

subdivision 24; proposing coding for new law in Minnesota Statutes, chapters

121A; 123B; 124D; 126C; repealing Minnesota Statutes 2024, section 43A.316,

subdivision 11.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

SCHOOL EMPLOYEES

Section 1.

Minnesota Statutes 2024, section 121A.642, as amended by Laws 2025, First

Special Session chapter 10, article 2, section 8, is amended to read:

121A.642 PARAPROFESSIONAL TRAINING.

Subdivision 1.

Training required.

(a) For purposes of this section, "school" means a

school district, charter school, intermediate school district, other cooperative unit, Perpich

Center for Arts Education, or the Minnesota State Academies.

(b) A school must provide a minimum of
deleted text begin
eight
deleted text end
new text begin
16
new text end
hours of paid orientation or professional

development annually to all paraprofessionals, Title I aides, and other instructional support

staff.

(c) Six of the
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eight
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new text begin
16
new text end
hours must be completed before the first instructional day of the

school year or within 30 days of hire.

(d) The orientation or professional development must be relevant to the employee's

occupation and may include collaboration time with classroom teachers and planning for

the school year.

(e) For paraprofessionals who provide direct support to students, at least 50 percent of

the professional development or orientation must be dedicated to meeting the requirements

of this section. Professional development for paraprofessionals may also address the

requirements of section
120B.363, subdivision 3
.

(f) A school administrator must provide an annual certification of compliance with this

requirement to the commissioner.

deleted text begin

(g) For the 2024-2025 school year only, a school may reduce the hours of training

required in paragraphs (b) to (e) to a minimum of six hours and must pay for paraprofessional

test materials and testing fees for any paraprofessional employed by the school district

during the 2023-2024 school year who has not yet successfully completed the

paraprofessional assessment or met the requirements of the paraprofessional competency

grid.

deleted text end

Subd. 2.

Reimbursement for paraprofessional training.

(a) Beginning in fiscal year

2025, the commissioner of education must reimburse schools in the form and manner

specified by the commissioner for paraprofessional training costs.

(b) The paraprofessional reimbursement equals the prior year compensation expenses

associated with providing up to
deleted text begin
eight
deleted text end
new text begin
16
new text end
hours of paid orientation and professional

development for each paraprofessional trained under subdivision 1. For purposes of this

paragraph, "compensation expenses" means the sum of the following amounts attributable

to the school's paraprofessionals:

(1) regular hourly wages;

(2) Federal Insurance Contributions Act (FICA) taxes under United States Code, title

26, chapter 21; and

(3) the employer share of retirement contributions required under chapter 352, 353, 354,

or 354A.

(c) The commissioner may establish procedures to ensure that any costs reimbursed

under this section are excluded from other school revenue calculations.

(d) For reimbursements paid in fiscal year 2026 only, the commissioner must reimburse

a school for six hours of paraprofessional training required under subdivision 1, paragraph

(b).

(e) In addition to the amounts under paragraph (d), for fiscal year 2026 only, the

commissioner must pay each school an additional amount equal to 33.33 percent of the

amount in paragraph (d). The school must use these funds either for paraprofessional test

preparation and exam fees under subdivision 1, paragraph (g), or additional training under

subdivision 1, paragraph (b).

Subd. 3.

Consultation.

A school district or charter school must consult the exclusive

representative for employees receiving this training before creating or planning the training

required under this section.

Subd. 4.

Qualifications.

(a)
deleted text begin
Starting in the 2025-2026 school year,
deleted text end
A paraprofessional

meets the federal personnel qualifications required in Code of Federal Regulations, title 34,

section 300.156, if the paraprofessional:

(1) has at least two years of college credits through an accredited institution of higher

education, or an associate's degree or higher;

(2) has received a passing score on an assessment approved by the Department of

Education; or

(3) demonstrates the following competencies, regardless of the number of hours of

training the paraprofessional has received:

(i) understanding the distinctions between roles and responsibilities of professionals,

paraprofessionals, and support personnel;

(ii) understanding the purposes and goals of education and instruction for all students;

(iii) knowledge of relevant laws, rules, regulations, and local district policies and

procedures to ensure paraprofessionals work within these parameters;

(iv) awareness of the challenges and expectations of various learning environments;

(v) the ability to establish and maintain rapport with students;

(vi) the ability to follow oral and written direction of licensed teachers, seeking

clarification as needed;

(vii) the ability to assist and reinforce elements that support a safe, healthy, and effective

teaching and learning environment;

(viii) understanding strategies for assisting with the inclusion of students in various

settings;

(ix) the ability to use strategies that promote the student's independence;

(x) understanding applicable laws, rules, and regulations, and procedural safeguards

regarding the management of student behaviors;

(xi) awareness of the primary factors that influence student behavior;

(xii) the ability to effectively employ a variety of strategies that reinforce positive

behavior;

(xiii) the ability to use ethical practices for confidential communication about students;

(xiv) the ability to follow teacher instructions while conferring and collaborating with

teachers about student schedules, instructional goals, and performance;

(xv) demonstrating a commitment to assisting students in reaching the students' highest

potential, including the modeling of positive behavior;

(xvi) showing respect for the diversity of students;

(xvii) showing a willingness to participate in ongoing staff development and

self-evaluation and to apply constructive feedback;

(xviii) supporting and reinforcing the instruction of students in mathematics following

written and oral lesson plans developed by licensed teachers;

(xix) supporting and reinforcing the instruction of students in reading following written

and oral lesson plans developed by licensed teachers. Professional development required

under the Read Act in section
120B.123
exceeds this requirement; and

(xx) supporting and reinforcing the instruction of students in writing following written

and oral lesson plans developed by licensed teachers.

(b)
deleted text begin
Starting in the 2025-2026 school year,
deleted text end
A paraprofessional meets the federal personnel

qualifications required in Code of Federal Regulations, title 34, section
200.58
, if the

paraprofessional:

(1) has at least two years of college credits from an accredited institution of higher

education, or an associate's degree or higher; or

(2) met a rigorous standard of quality and can demonstrate, through a formal state or

local academic assessment, knowledge of and the ability to assist in instructing, as

appropriate:

(i) reading or language arts, writing, and mathematics; or

(ii) reading readiness, writing readiness, and mathematics readiness.

(c) Upon request from a paraprofessional employed by a school district, charter school,

or cooperative unit providing direct instructional services, the school district, charter school,

or cooperative unit may provide administrative assistance to the paraprofessional when

completing requirements related to the competencies required under this subdivision.

new text begin

(d) For state and federal purposes for a paraprofessional, demonstrating the competencies

listed in paragraph (a), clause (3), is equivalent to achieving a passing score on a formal

state or local academic assessment in accordance with paragraph (a), clause (2). The

department must take any steps necessary to ensure the paraprofessional meets federal

qualification requirements, including but not limited to applying for a waiver under Code

of Federal Regulations, title 20, section 5891b. The department must not exclude state aid

under any program for a paraprofessional who has demonstrated the competencies listed in

paragraph (a), clause (3), instead of achieving a passing score on a formal state or local

assessment in accordance with paragraph (a), clause (2). A district or charter school must

maintain the paraprofessional's completed assessment and documentation that the

paraprofessional demonstrated the required competencies in the paraprofessional's personnel

file.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective the day following final enactment and

applies for the 2026-2027 school year and later.

new text end

Sec. 2.

new text begin

[121A.645] NONINSTRUCTIONAL STAFF TRAINING.

new text end

new text begin

(a) A school district or charter school must provide noninstructional staff, including but

not limited to food service employees and bus drivers, with a minimum of 16 annual hours

of paid orientation or professional development. The training must include:

new text end

new text begin

(1) strategies for managing student behavior;

new text end

new text begin

(2) district or school policies relating to student behavior or discipline, including the

bullying policy under section 121A.031; and

new text end

new text begin

(3) district or school resources for addressing student behavior.

new text end

new text begin

(b) Up to eight hours of paid training provided under section 171.321, subdivision 4,

may be counted toward the 16 hours required under this section.

new text end

new text begin

(c) Noninstructional aid for a school district or charter school equals $.......

new text end

new text begin

(d) A school administrator must provide an annual certification of compliance with this

section to the commissioner.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 3.

new text begin

[123B.026] EMPLOYEES OF CONTRACTORS.

new text end

new text begin

(a) A school district or charter school that enters into a contract for services with a third

party must require the third party to pay all employee wages at a rate of at least $25 per

hour. Unless approved by the commissioner of education, a school board must renegotiate

any agreement for services with a third party in effect as of July 1, 2026, to require the third

party to pay all employee wages at a rate of at least $25 per hour, 16 hours of paid orientation

or professional development that meets the requirements of sections 121A.642 and 121A.645,

and wages for days that a school district or charter school designates as an e-learning day

under section 120A.414.

new text end

new text begin

(b) A school administrator must provide an annual certification of compliance with this

section to the commissioner of education. The first certification must be submitted by July

1, 2027.

new text end

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 4.

Minnesota Statutes 2024, section 125A.08, subdivision 2, is amended to read:

Subd. 2.

Paraprofessionals.

For all paraprofessionals employed to work in programs

whose role in part is to provide direct support to students with disabilities, the school board

in each district shall ensure that:

(1) before or beginning at the time of employment, each paraprofessional must develop

sufficient knowledge and skills in emergency procedures, building orientation, roles and

responsibilities, confidentiality, vulnerability, and reportability, among other things, to begin

meeting the needs, especially disability-specific and behavioral needs, of the students with

whom the paraprofessional works;

(2)
deleted text begin
within five days of
deleted text end
new text begin
before
new text end
beginning to work alone with an individual student with

a disability, the assigned paraprofessional must be either given paid time, or time during

the school day, to review a student's individualized education program or be briefed on the

student's specific needs by appropriate staff;

(3) annual training opportunities are required to enable the paraprofessional to continue

to further develop the knowledge and skills that are specific to the students with whom the

paraprofessional works, including understanding disabilities, the unique and individual

needs of each student according to the student's disability and how the disability affects the

student's education and behavior, following lesson plans, and implementing follow-up

instructional procedures and activities; and

(4) a districtwide process obligates each paraprofessional to work under the ongoing

direction of a licensed teacher and, where appropriate and possible, the supervision of a

school nurse.

new text begin

EFFECTIVE DATE.

new text end

new text begin

This section is effective July 1, 2026.

new text end

Sec. 5.

new text begin

[126C.38] MINIMUM WAGE RATE AID.

new text end

new text begin

Subdivision 1.

new text end

new text begin

Minimum wage.

new text end

new text begin

Notwithstanding any law to the contrary, a school

district or charter school must pay the following employees wages at a rate of at least $25

per hour:

new text end

new text begin

(1) paraprofessionals, Title I aides, and other instructional support staff;

new text end

new text begin

(2) food service employees;

new text end

new text begin

(3) bus drivers; and

new text end

new text begin

(4) other employees who do not have a license issued by the Professional Educator

Licensing and Standards Board or the Board of School Administrators, and who work at

least 14 hours per week and 100 workdays per year in one position.

new text end

new text begin

Subd. 2.

new text end

new text begin

Aid.

new text end

new text begin

Minimum wage rate aid for a school district or charter school equals $.......

new text end

Sec. 6.

Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 24,

is amended to read:

Subd. 24.

Paraprofessional training.

(a) For compensation associated with paid

orientation and professional development for paraprofessionals under Minnesota Statutes,

section
121A.642
:

$

4,721,000

.....

2026

$

deleted text begin

5,000,000

deleted text end

new text begin

.......

new text end

.....

2027

(b) The 2026 appropriation includes $221,000 for 2025 and $4,500,000 for 2026.

(c) The 2027 appropriation includes $500,000 for 2026 and
deleted text begin
$4,500,000
deleted text end
new text begin
$.......
new text end
for 2027.

Sec. 7.
new text begin
APPROPRIATION; DEPARTMENT OF EDUCATION.
new text end

new text begin

Subdivision 1.

new text end

new text begin

Department of Education.

new text end

new text begin

The sums indicated in this section are

appropriated from the general fund to the Department of Education in the fiscal year

designated.

new text end

new text begin

Subd. 2.

new text end

new text begin

Minimum wage rate aid.

new text end

new text begin

For minimum wage rate aid under Minnesota Statutes,

section 126C.38:

new text end

new text begin

$

new text end

new text begin

.......

new text end

new text begin

.....

new text end

new text begin

2027

new text end

new text begin

Subd. 3.

new text end

new text begin

Noninstructional staff; training on student behavior.

new text end

new text begin

For training on student

behavior under Minnesota Statutes, section 121A.645:

new text end

new text begin

$

new text end

new text begin

.......

new text end

new text begin

.....

new text end

new text begin

2027

new text end

ARTICLE 2

EDUCATOR GROUP INSURANCE PROGRAM

Section 1.

Minnesota Statutes 2024, section 43A.316, subdivision 2, is amended to read:

Subd. 2.

Definitions.

For the purpose of this section, the terms defined in this subdivision

have the meaning given
deleted text begin
them
deleted text end
.

(a)
Commissioner.
"Commissioner" means the commissioner of management and

budget.

(b)
Employee.
"Employee" means:

(1) a person who is a public employee within the definition of section
179A.03,

subdivision 14
, who is insurance eligible and is employed by an eligible employer;

(2) an elected public official of an eligible employer who is insurance eligible;

(3) a person employed by a labor organization or employee association certified as an

exclusive representative of employees of an eligible employer or by another public employer

approved by the commissioner, so long as the plan meets the requirements of a governmental

plan under United States Code, title 29, section 1002(32); or

(4) a person employed by a county or municipal hospital.

(c)
Eligible employer.
"Eligible employer" means:

(1) a public employer within the definition of section
179A.03, subdivision 15
, that is

a town, county, city, school district as defined in section
120A.05
, service cooperative as

defined in section
123A.21
, intermediate district as defined in section
136D.01
, Cooperative

Center for Vocational Education as defined in section
123A.22
, regional management

information center as defined in section
123A.23
, or an education unit organized under the

joint powers action, section
471.59
;
deleted text begin
or
deleted text end

(2) an exclusive representative of employees, as defined in paragraph (b);

(3) a county or municipal hospital; or

(4) another public employer approved by the commissioner.

(d)
Exclusive representative.
"Exclusive representative" means an exclusive

representative as defined in section
179A.03, subdivision 8
.

(e)
Program.
"Program" means the statewide public employees insurance program

created by subdivision 3.

new text begin

(f)
Educator group insurance program.
"Educator group insurance program" means

the mandatory health insurance pool created from the school employee pool.

new text end

new text begin

(g)
Retired school employee.
"Retired school employee" means a school employee

who has separated from service with any school employer and has met the age and service

requirements necessary to receive an annuity from a Minnesota public pension plan.

new text end

new text begin

(h)
School employee.
"School employee" means an employee of a school employer,

regardless of the number of hours worked or their status as a public employee under section

179A.03, subdivision 14.

new text end

new text begin

(i)
School employee pool.
"School employee pool" means a mandatory health insurance

pool for all eligible school employees and other eligible employees or employers electing

to be in the pool.

new text end

new text begin

(j)
School employer.
"School employer" means a district as defined in section 120A.05,

a service cooperative as defined in section 123A.21, an intermediate district as defined in

section 136D.01, a cooperative center for vocational education as defined in section 123A.22,

a regional management information center as defined in section 123A.23, a charter school

under chapter 124D, or an education unit organized under a joint powers agreement under

section 471.59.

new text end

Sec. 2.

Minnesota Statutes 2024, section 43A.316, subdivision 3, is amended to read:

Subd. 3.

Public employee insurance program.

The commissioner shall be the

administrator of the public employee insurance program
new text begin
and the educator group insurance

program
new text end
and may determine its funding
new text begin
, coverage, and administrative
new text end
arrangements. The

commissioner shall model the
deleted text begin
program
deleted text end
new text begin
programs
new text end
after the plan established in section
43A.18,

subdivision 2
deleted text begin
, but
deleted text end
new text begin
. The commissioner shall offer individual school employers dependent

coverage tiers that match the coverage when entering the school employee pool and any

changes to dependent coverage tiers subsequently negotiated. The commissioner shall also

offer a high-deductible plan compatible with health care savings accounts. The commissioner
new text end

may modify
deleted text begin
that plan
deleted text end
new text begin
those plans and dependent coverage tiers pursuant to the requirements

of subdivision 4a
new text end
.

Sec. 3.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to

read:

new text begin

Subd. 4a.

new text end

new text begin

Educator group insurance program.

new text end

new text begin

The Labor Management Committee

is established and consists of 12 members appointed to represent participating school

employees and retired school employees. The Minnesota Association of School

Administrators; the Minnesota Association of School Business Officials; the Service

Employees International Union; the American Federation of State, County, and Municipal

Employees; and the Minnesota School Employees Association must each appoint one

representative. Education Minnesota must appoint seven representatives, providing a diverse

representation of the state, including a retiree. Committee members are eligible for expense

reimbursement in the same manner and amount as authorized by the commissioner's plan

adopted under section 43A.18, subdivision 2. A change to a cost-sharing plan may only be

made with mutual agreement between the commissioner and the committee. The committee

shall study issues relating to the insurance program, including but not limited to flexible

benefits, utilization review, quality assessment, and cost efficiency. The committee continues

to exist while the program remains in operation.

new text end

Sec. 4.

Minnesota Statutes 2024, section 43A.316, subdivision 5, is amended to read:

Subd. 5.

Public employee participation.

(a) Participation in the program is subject to

the conditions in this subdivision.

(b) Each exclusive representative for
deleted text begin
an
deleted text end
new text begin
a nonschool
new text end
eligible employer determines

whether the employees it represents will participate in the program. The exclusive

representative shall give the employer notice of intent to participate at least 30 days before

the expiration date of the collective bargaining agreement preceding the collective bargaining

agreement that covers the date of entry into the program. The exclusive representative and

the eligible employer shall give notice to the commissioner of the determination to participate

in the program at least 30 days before entry into the program. Entry into the program is

governed by a schedule established by the commissioner.

(c) Employees not represented by exclusive representatives may become members of

the program upon a determination of
deleted text begin
an
deleted text end
new text begin
a nonschool
new text end
eligible employer to include these

employees in the program. Either all or none of the employer's unrepresented employees

must participate. The eligible employer shall give at least 30 days' notice to the commissioner

before entering the program. Entry into the program is governed by a schedule established

by the commissioner.

deleted text begin

(d) Participation in the program is for a four-year term. Participation is automatically

renewed for an additional four-year term unless the exclusive representative, or the employer

for unrepresented employees, gives the commissioner notice of withdrawal at least 30 days

before expiration of the participation period. A group that withdraws must wait two years

before rejoining. An exclusive representative, or employer for unrepresented employees,

may also withdraw if premiums increase 20 percent or more from one insurance year to the

next.

deleted text end

deleted text begin

(e) The exclusive representative shall give the employer notice of intent to withdraw to

the commissioner at least 30 days before the expiration date of a collective bargaining

agreement that includes the date on which the term of participation expires.

deleted text end

deleted text begin

(f) Each participating eligible employer shall notify the commissioner of names of

individuals who will be participating within two weeks of the commissioner receiving notice

of the parties' intent to participate. The employer shall also submit other information as

required by the commissioner for administration of the program.

deleted text end

new text begin

(d) Participation by a nonschool employer in the program is permanent once elected.

Nonschool exclusive representatives and eligible employers enrolled in the public employee

insurance program after July 1, 2026, shall have the option to either remain enrolled and

move to the mandatory school employee pool or permanently leave enrollment.

new text end

new text begin

(e) All school employers shall submit to the administrators of the mandatory school

employee pool the names and other required information regarding its school employees

within two weeks of the employees starting work or becoming employed, whichever comes

first. New coverage is effective on the first day of employment. Three months prior to entry

into the program, school employers shall provide the program administrator with the names

and required information of current employees. Beginning January 1, 2027, or as soon

thereafter as contracts or agreements with providers that were in place upon enactment

expire, school employees shall receive insurance through the school employee pool.

Employees of school employers obligated by a health insurance contract expiring on or

before December 31, 2026, must begin participation in the program on January 1, 2027. In

the event an insurance contract expires after enactment and before December 31, 2026,

subsequent contracts expire on December 31, 2026. A school employee participating in the

public employee insurance program must join the school employee pool on January 1, 2027,

regardless of the length of the employee's remaining term.

new text end

new text begin

(f) School employers with individual self-insured plans that have unused reserve funds

after all obligations have been met may negotiate with the exclusive representative regarding

the reserve amount (1) attributable to the proportionate number of insured lives covered by

the exclusive representative, and (2) that must be dedicated for use for health insurance

benefits for all individuals currently receiving health benefits. Notwithstanding section

471.617, no notice or approval is required for school employers who dissolve a self-insured

plan under this section. If the school employer and the exclusive representative are unable

to come to an agreement, the remaining funds must be used to pay the employee's premium

portion to the school employee pool until the reserve funds are depleted. These funds shall

be used for a proportional premium payment at the time it is necessary to deplete the balance.

new text end

new text begin

(g) School employers leaving a plan under section 123A.21 with a service cooperative

must receive a prorated share of the service cooperative reserves attributable to their portion

of membership in the plan and distribute them as required in paragraph (f).

new text end

Sec. 5.

Minnesota Statutes 2024, section 43A.316, subdivision 7, is amended to read:

Subd. 7.

Premiums.

deleted text begin
The proportion of premium paid by the employer and employee is

subject to collective bargaining or personnel policies. If, at the beginning of the coverage

period, no collective bargaining agreement has been finalized, the increased dollar costs, if

any, from the previous year is the sole responsibility of the individual participant until a

collective bargaining agreement states otherwise.
deleted text end
Premiums, including an administration

fee, shall be established by the commissioner
new text begin
and shall not vary across eligible school

employers
new text end
. Each employer shall pay monthly the amounts due for employee benefits

including the amounts under subdivision 8 to the commissioner no later than the dates

established by the commissioner. If an employer fails to make the payments as required,

the commissioner may
deleted text begin
cancel program benefits and
deleted text end
pursue other civil remedies
new text begin
, including

accessing funds allocated to the school employer by the Department of Education
new text end
.
new text begin
Failure

to make payments is considered using funds contrary to their purpose under section 127A.42,

subdivision 2, clause (7), and the commissioner of education shall use section 127A.42 to

reduce necessary aid to pay to the educator group insurance program.
new text end

Sec. 6.

Minnesota Statutes 2024, section 43A.316, subdivision 8, is amended to read:

Subd. 8.

Continuation of coverage.

(a) A former employee of an employer participating

in the program who is receiving a public pension disability benefit or an annuity or has met

the age and service requirements necessary to receive an annuity under chapter 353, 353C,

354, 354A, 356, or 423, or Minnesota Statutes 2008, chapter 422A, and the former employee's

dependents, are eligible to participate in the program. This participation is at the person's

expense unless a collective bargaining agreement or personnel policy provides otherwise.

Premiums for these participants must be established by the commissioner.

The commissioner
deleted text begin
may
deleted text end

new text begin
must not
new text end
provide policy exclusions for preexisting conditions
deleted text begin

only when there is a break in coverage between a participant's coverage under the

employment-based group insurance program and the participant's coverage under this

section
deleted text end
. An employer shall notify an employee of the option to participate under this

paragraph no later than the effective date of retirement. The retired employee or the employer

of a participating group on behalf of a current or retired employee shall notify the

commissioner within 30 days of the effective date of retirement of intent to participate in

the program according to the rules established by the commissioner.

(b) The spouse of a deceased employee or former employee may purchase the benefits

provided at premiums established by the commissioner if the spouse was a dependent under

the employee's or former employee's coverage under this section at the time of the death.

The spouse remains eligible to participate in the program
deleted text begin
as long as the group that included

the deceased employee or former employee participates in the program
deleted text end
new text begin
under the

requirements of section 62A.146
new text end
. Coverage under this clause must be coordinated with

relevant insurance benefits provided through the federally sponsored Medicare program.

(c) The program benefits must continue in the event of strike permitted by section

179A.18
,
deleted text begin
if the exclusive representative chooses to have coverage continue and the employee

pays the total monthly premiums when due
deleted text end
new text begin
and the employer must continue to pay the total

monthly premiums due
new text end
.

(d) A participant who discontinues coverage may not reenroll
new text begin
unless newly eligible

under this section
new text end
.

Persons participating under these paragraphs shall make appropriate premium payments

in the time and manner established by the commissioner.

Sec. 7.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to

read:

new text begin

Subd. 12.

new text end

new text begin

Nonidentifiable aggregate claims data from past coverage.

new text end

new text begin

Upon request

by the commissioner, entities that are providing or have provided coverage to eligible school

employees shall provide to the commissioner at no charge nonidentifiable aggregate claims

data for that coverage. Notwithstanding section 13.203, the information must include data

relating to school employees' group benefit sets, demographics, claims experience, and any

other data or information reasonably necessary to accurately and appropriately underwrite

the risk of the school employees.

new text end

Sec. 8.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to

read:

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Subd. 13.

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Educator group insurance program start-up funding; administration of

ongoing revenues and expenses.

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The commissioner may impose a reserve surcharge in

the first three years of school employee enrollment if the commissioner deems it actuarially

necessary to supplement the existing public employee insurance program reserves available

in the insurance trust fund under subdivision 9. These funds are available to support both

the phasing out of the public employee insurance program and the implementation of the

educator group insurance program.

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Sec. 9.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to

read:

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Subd. 14.

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Eligibility.

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(a) A school employee who is a public employee within the

definition of section 179A.03, subdivision 14, is eligible for coverage in the school employee

pool for the plan year, including school breaks. A school district employer must seek an

opinion from the Office of the Attorney General on any dispute over eligibility under the

authority of section 8.07. Notwithstanding any other law to the contrary, the attorney general

must provide this opinion without charge, and the parties must comply with the opinion

until a party exercises their right to a resolution through a grievance process in the collective

bargaining agreement. An attorney general opinion is admissible in any related arbitration

proceeding.

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(b) If an employee meets the hour requirement for a public employee under section

179A.03, subdivision 14, when combining hours assigned by two or more separate school

employers and works less than full-time with any employer, each employer shall pay a pro

rata share of the cost of the employer contribution. A full-time employer shall pay the full

employer contribution.

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(c) An employee must receive notification of continuation rights as provided in other

laws. This coverage must be considered employer sponsored for purposes of all continuation

laws, including section 471.61, subdivision 2b, and no former employee has a right to force

the continuation of a plan created prior to the school employee pool.

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(d) An employee who waives coverage upon eligibility is not eligible to enroll until the

next open enrollment period.

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(e) School employees who are not also public employees as defined under section

179A.03, subdivision 14, are permitted to purchase coverage from the school employee

pool at their own expense or, if negotiated, with a full or partial employer contribution.

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(f) In the event an eligible employee goes on unpaid status for the remainder of the

month, continuation premiums are not due until the next month.

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(g) Employers and employees are permitted to agree to the continuation of employer-paid

premiums postemployment.

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Sec. 10.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision

to read:

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Subd. 15.

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Contributions.

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On behalf of school employees covered by subdivision 14,

paragraph (a), the school district must contribute 85 percent of the costs for family premiums

and 95 percent of the costs for single premiums for the highest value plan offered for school

employer participants. If an eligible school employee chooses a high-deductible plan, the

employer must contribute the equivalent of the 85 or 95 percent cost of the highest value

plan toward the chosen plan, and any allotted contribution in excess of the high-deductible

premium shall be made to the employee's health care savings account or health reimbursement

arrangement. If such an account is not already in the parties' collective bargaining agreement,

the parties shall negotiate to establish one. Failure to agree on an account results in the

required contributions being made to an employee health care savings account with the

Minnesota State Retirement System pursuant to chapter 352. All remaining costs must be

paid by the employee unless the exclusive representative and employer agree that the

employer will cover some or all of the cost as:

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(1) premium contributions;

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(2) contributions to a health reimbursement arrangement or health savings account; or

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(3) a combination of premium contributions and contributions to a health reimbursement

arrangement or health savings account.

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Eligible employees who are married to another eligible employee may choose to have one

family plan or two single plans. If they choose a family plan, 100 percent of the premium

must be paid by the employers in equal shares.

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Sec. 11.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision

to read:

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Subd. 16.

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Health insurance revenue.

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Funding for a service cooperative as defined in

section 123A.21, an intermediate district as defined in section 136D.01, and a cooperative

center for vocational education as defined in section 123A.22 shall be direct aid and shall

be equal to the average of funding received per eligible staff member by the member districts

for each of the entity's eligible staff members employed by the entity on October 1 of the

previous school year.

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Sec. 12.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision

to read:

new text begin

Subd. 17.

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No effect on more generous plans or policies.

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(a) Consistent with participation

in the school employee pool, nothing in this section shall be construed to discourage

employers from adopting or retaining health plan and related benefit policies that meet or

exceed, and do not otherwise conflict with, the minimum standards and requirements

provided in this section.

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(b) Consistent with participation in the school employee pool, nothing in this section

shall be construed to limit the right of parties to a collective bargaining agreement to bargain

and agree with respect to health plan and related benefit policies or to diminish the obligation

of an employer to comply with any contract, collective bargaining agreement, or any

employment benefit program or plan that meets or exceeds, and does not otherwise conflict

with, the minimum standards and requirements provided in this section. This specifically

includes but is not limited to premium contributions and tax-favored accounts permitted by

the Internal Revenue Service, including health reimbursement arrangements, health savings

accounts, and section 125 of the Internal Revenue Code flexible spending accounts, but

does not include individual coverage health reimbursement arrangements or specific plan

benefit structures.

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(c) Consistent with participation in the school employee pool, nothing in this section

shall be construed to preempt, limit, or otherwise affect the applicability of any other law,

regulation, requirement, policy, or standard that provides for additional health plan and

related benefits or that extends other protections to employees.

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(d) Consistent with participation in the school employee pool, nothing in this section

shall be construed or applied to create any power or duty in conflict with federal law.

new text end

Sec. 13.

Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision

to read:

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Subd. 18.

new text end

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Broker commissions.

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School employers shall not expend public resources

for broker commissions either as a direct fee or as an amount added to the insurer's rates

for assistance with implementation and ongoing use of health insurance benefits provided

under the school employee pool.

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Sec. 14.

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[124D.997] EDUCATOR GROUP INSURANCE PROGRAM AID.

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Subdivision 1.

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Eligibility.

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A school district or charter school is eligible to apply to the

commissioner for educator group insurance program aid under this section.

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Subd. 2.

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Certification; aid calculation.

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(a) If a district determines that it will incur

additional employer premium costs attributable to the requirements of section 43A.316,

subdivision 15, it may certify the additional costs to the commissioner for approval, in the

form and manner determined by the commissioner. Aid for the district equals the amount

approved by the commissioner.

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(b) A district that cannot demonstrate additional employer premium costs under paragraph

(a) is not eligible for aid under this section.

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Subd. 3.

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Eligible uses.

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Aid under this section may be used for premium costs attributable

to the requirements of section 43A.316.

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EFFECTIVE DATE.

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This section is effective for revenue in fiscal year ... and later.

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Sec. 15.
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APPROPRIATION.
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Subdivision 1.

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Department of Education.

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The sum indicated in this section is

appropriated from the general fund to the Department of Education for the fiscal year

designated.

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Subd. 2.

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Educator group insurance program aid.

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(a) For educator group insurance

program aid under Minnesota Statutes, section 124D.997:

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$

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.......

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.....

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2027

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(b) The 2027 appropriation includes $0 for fiscal year 2026 and $....... for fiscal year

2027.

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Sec. 16.
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REPEALER.
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Minnesota Statutes 2024, section 43A.316, subdivision 11,

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is repealed.

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APPENDIX

Repealed Minnesota Statutes: 26-08028

43A.316 PUBLIC EMPLOYEES INSURANCE PROGRAM.

Subd. 11.

Proposal from school district; response required.

Upon receipt of a request for a proposal from a school district pursuant to section
471.6161, subdivision 8
, the public employees insurance program shall respond to the request within 60 days.