new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin For purposes of this section:
new text end

new text begin (1) "eligible employee" means a person who is insurance
eligible under a collective bargaining agreement or under the
personnel policy of an eligible employer; and
new text end

new text begin (2) "eligible employer" means a school 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; an education unit organized under
section 471.59; or a charter school organized under section
124D.10.
new text end

new text begin Subd. 2. new text end

new text begin Creation of board. new text end

new text begin (a) The Minnesota School
Employee Insurance Board is created as a public corporation
subject to the provisions of chapter 317A, except as otherwise
provided in this section. As provided in section 15.082, the
state is not liable for obligations of this public corporation.
new text end

new text begin (b) The board shall create and administer the Minnesota
School Employee Insurance Pool as described in this section.
new text end

new text begin (c) If the board does not offer coverage by December 15,
2008, the board expires and this section expires on that date.
new text end

new text begin Subd. 3. new text end

new text begin Board of directors. new text end

new text begin (a) The School Employee
Insurance Board consists of:
new text end

new text begin (1) seven members representing exclusive representatives of
eligible employees, appointed by exclusive representatives, as
provided in paragraph (b); and
new text end

new text begin (2) seven members representing eligible employers,
appointed by the Minnesota School Boards Association.
new text end

new text begin (b) The seven members of the board who represent statewide
affiliates of exclusive representatives of eligible employees
are appointed as follows: four members appointed by Education
Minnesota and one member each appointed by the Service Employees
International Union, the Minnesota School Employees Association,
and American Federation of State, County, and Municipal
Employees.
new text end

new text begin (c) Appointing authorities must make their initial
appointments no later than August 1, 2005, by filing a notice of
the appointment with the commissioner of commerce. Notices of
subsequent appointments must be filed with the board. An entity
entitled to appoint a board member may replace the board member
at any time.
new text end

new text begin (d) Board members are eligible for compensation and expense
reimbursement under section 15.0575, subdivision 3.
new text end

new text begin (e) The board must arrange for one or more methods of
dispute resolution so as to minimize the possibility of
deadlocks.
new text end

new text begin (f) The board shall establish governance requirements,
including staggered terms, term limits, quorum, a plan of
operation, and audit provisions.
new text end

new text begin Subd. 4. new text end

new text begin Design and nature of plan. new text end

new text begin (a) Health coverage
offered through the Minnesota School Employee Insurance Pool
shall be made available by the board to all eligible employees
of eligible employers, as defined in subdivision 1.
new text end

new text begin (b) If an eligible employer provides health coverage or
money to purchase health coverage to eligible employees, the
coverage must be provided or purchased only through the health
plans offered by the board.
new text end

new text begin (c) The board must offer more than one health plan and may
establish more than one tier of premium rates for any specific
plan. Plans and premium rates may vary across geographic
regions established by the board. The health plans must comply
with chapters 62A, 62J, 62M, and 62Q, and must provide the
optimal combination of coverage, cost, choice, and stability in
the judgment of the board. All health plans offered must be
approved by the commissioner of commerce.
new text end

new text begin (d) The board must include claims reserves, stabilization
reserves, reinsurance, and other features that, in the judgment
of the board, will result in long-term stability and solvency of
the health plans offered.
new text end

new text begin (e) The board may determine whether the health plans should
be fully insured through a health carrier licensed in this
state, self-insured, or a combination of those two alternatives.
new text end

new text begin (f) The health plans must include disease management and
consumer education, including wellness programs and measures
encouraging the wise use of health coverage, to the extent
determined to be appropriate by the board.
new text end

new text begin (h) Upon request of the board, health plans that are
providing or have provided coverage to employees of eligible
employers within two years prior to the effective date of this
section, shall provide to the board at no charge nonidentifiable
aggregate claims data for that coverage. The information must
include data relating to employee group benefit sets,
demographics, and claims experience. Notwithstanding section
13.203, Minnesota service cooperatives must also comply with
this paragraph.
new text end

new text begin Subd. 5. new text end

new text begin Report. new text end

new text begin The board shall report to the
legislature by January 15, 2007, on a final design for the pool
that complies with subdivision 4 and on governance requirements
for the board, including staggered terms, term limits, quorum,
and a plan of operation and audit provisions. The report must
include any legislative changes necessary to ensure conformance
with chapters 62A, 62J, 62M, and 62Q.
new text end

new text begin Subd. 6. new text end

new text begin Periodic evaluation. new text end

new text begin (a) Beginning January 15,
2008, and for the next two years, the board must submit an
annual report to the commissioner of commerce and the
legislature, in compliance with sections 3.195 and 3.197,
summarizing and evaluating the performance of the pool during
the previous year of operation.
new text end

new text begin (b) Beginning in 2011 and in each odd-numbered year
thereafter, the board must submit to the legislature a biennial
report summarizing and evaluating the performance of the pool
during the preceding two fiscal years.
new text end