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S.F. No. 1835 - School District Health Insurance Transparency Act (Third Engrossment)
 
Author: Senator Katie Sieben
 
Prepared By: Stephanie James, Senate Counsel (651/296-0103)
Bjorn E. Arneson, Senate Analyst (651/296-3812)
 
Date: April 9, 2014



 
School District Health Insurance Transparency Act
 
Section 1 [Exemption[ subjects the public employee insurance program to group insurance bidding requirements for governmental units.
 
Section 2 [Proposal from School District; Response Required] requires the public employees insurance program (PEIP) to respond to requests for proposals for school district health insurance coverage within 60 days.
 
Section 3 [Duties and Powers of SC Board of Directors] provides that service co-op special advisory committees are committees of a public body for purposes of the Open Meeting Law when addressing issues related to health insurance.
 
Section 4 [Appointment of Advisory Council] provides that service co-op advisory councils are committees of a public body for purposes of the Open Meeting Law when addressing issues related to health insurance.

Section 5 [Board to Fix Compensation] prohibits a school board member or school district employee from receiving compensation or benefits based on incentives from a source of group insurance coverage, except for a premium refund.

Section 6 [Insurance Premium Refund] requires that a school district must negotiate with the exclusive representative with respect to insurance premiums returned to the district by an entity providing health insurance coverage. If there is no exclusive representative or agreement is not reached within 150 days, the remaining funds must be used to pay the full premium for any employee not covered by an agreement negotiated under this section.
 
Section 7 [Conflict of Interest] makes board members, employees, and officers of charter schools subject to the gift ban )section 10A.071, subdivision 1, paragraph (b).   Board members, employees, and officers must not ask another person to give a gift to a board member, employee, or officer and must not receive compensation from a group health insurance provider.
 
Section 8 [Employment and Other Operating Matters] establishes certain requirements for a charter school of a certain size that provides group heath insurance coverage.  The charter school must get proposals for coverage from three sources every three years and must notify employees of changes in the group coverage policy.  Requires any charter school or teachers cooperative that provides group insurance coverage to publish policies for purchasing coverage on its Web site.  Requires charter school board policy to include a sealed proposal process that requires unsealing all proposals at the same time. Once unsealed, the proposals are public data.  Specifies that nothing in this provision supercedes the right of an exclusive representative to negotiate over terms and conditions of employment.
 
Section 9 [Collective Bargaining] makes the board of a charter school with employees who are represented by an exclusive representative subject to a gift ban (section 471.895) and group insurance provisions (section 471.6161).
 
Sections 10, 11, and 12 are conforming changes.
 
Section 13 [School Districts; Group Insurance Coverage] requires an entity providing group insurance coverage to provide the school district with nonidentifiable aggregate claims records for the most recent 24 months within 30 days of request. Requires school districts to request proposals for group insurance coverage from at least three sources, one of which is a group administrator governed by chapter 43A, (e.g. PEIP). Requests for proposals must be made 150 days prior to expiration of the existing contract but not more frequently than every 24 months.  Timing for submission of renewal premium rates and proposed plan design changes is specified.  School district contracts for group insurance cannot exceed two years unless the exclusive representative and school district agree otherwise. School districts opting for self-insurance required to follow the requirements of this section except as specified.
 
Section 14 [Definition] applies the gift ban to school board members, superintendents, principals, and district school officers.
 
Section 15 provides an effective date of July 1, 2014.
 
 
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