Watershed districts, watershed management organizations, and towns permission to self-insure for certain employee health benefits

A bill for an act

relating to local government; allowing watershed districts, watershed management

organizations, and towns to self-insure for certain employee health benefits; making

technical changes; amending Minnesota Statutes 2024, section 471.617,

subdivisions 1, 2, 4, 4a.

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

Section 1.

Minnesota Statutes 2024, section 471.617, subdivision 1, is amended to read:

Subdivision 1.

If more than 100 employees; conditions.

A statutory or home rule

charter city, county,
new text begin
town,
new text end
school district,
new text begin
watershed district, watershed management

organization,
new text end
or instrumentality thereof which has more than 100 employees, may by

ordinance or resolution self-insure for any employee health benefits including long-term

disability, but not for employee life benefits. Any self-insurance plan shall provide all

benefits which are required by law to be provided by group health insurance policies.

Self-insurance plans must be certified as provided by section
62E.05
and must be filed and

certified by the Department of Commerce before they are issued or delivered to any person

in this state.

Sec. 2.

Minnesota Statutes 2024, section 471.617, subdivision 2, is amended to read:

Subd. 2.

Jointly.

Any two or more statutory or home rule charter cities, counties,
new text begin
towns,
new text end

school districts,
new text begin
watershed districts, watershed management organizations,
new text end
or instrumentalities

thereof which together have more than 100 employees may jointly self-insure for any

employee health benefits including long-term disability, but not for employee life benefits,

subject to the same requirements as an individual self-insurer under subdivision 1.

Self-insurance pools under this section are subject to section
62L.045
. A self-insurance pool

established and operated by one or more service cooperatives governed by section
123A.21

to provide coverage described in this subdivision qualifies under this subdivision, but the

individual school district members of such a pool shall not be considered to be self-insured

for purposes of section
471.6161, subdivision 8
, paragraph (g). The commissioner of

commerce may adopt rules pursuant to chapter 14, providing standards or guidelines for

the operation and administration of self-insurance pools.

Sec. 3.

Minnesota Statutes 2024, section 471.617, subdivision 4, is amended to read:

Subd. 4.

Exclusive representative.

(a) No statutory or home rule charter city
deleted text begin
or
deleted text end
new text begin
,
new text end
county
deleted text begin

or
deleted text end
new text begin
, town,
new text end
school district
new text begin
, watershed district, watershed management organization,
new text end
or

instrumentality of any of them shall adopt a
deleted text begin
self insured
deleted text end
new text begin
self-insured
new text end
health benefit plan for

any employees represented by an exclusive representative certified pursuant to section

179A.12
without prior notification and consultation on ten days' written notice to the

exclusive representative and agreement by the exclusive representative that represents the

largest number of employees to be included in the plan.

(b) Prior to a decision to dissolve any self-insurance, trust fund, or dedicated insurance

fund created by a single statutory or home rule charter city, county,
new text begin
town,
new text end
school district,
new text begin

watershed district, watershed management organization,
new text end
or instrumentality of any of them,

either by ordinance or resolution, the employer must provide 30 days' written notice to each

exclusive representative of employees and each individual currently receiving health benefits,

and also obtain approval for the proposed action by the exclusive representative that

represents the largest number of employees included in the plan. All assets from the trust

fund must be audited before closure, and remaining assets must be dedicated for use for

health insurance benefits for all individuals currently receiving health benefits. This paragraph

does not apply to joint self-insurance trusts or pools.

(c) The assets or liabilities of a joint self-insurance trust or pool that is dissolved must

be distributed to members of the joint trust or pool in accordance with the joint trust or pool

agreement, if any.

Sec. 4.

Minnesota Statutes 2024, section 471.617, subdivision 4a, is amended to read:

Subd. 4a.

May choose, pay for insurance.

A statutory or home rule charter city, county,
new text begin

town,
new text end
school district,
new text begin
watershed district, watershed management organization,
new text end
or

instrumentality of any of these entities with a self-insurance health benefit plan, may, upon

request of the exclusive representative of its employees as certified pursuant to section

179A.12
, allow the employees of the exclusive representative to enroll, at their own expense,

in the health insurance benefit plan.