SF 5296

03/18/26  REVISOR  CR/AD  26-08028  as introduced
  SENATE
  STATE OF MINNESOTA
  NINETY-FOURTH SESSION  S.F. No. 5296
 (SENATE AUTHORS: MANN, Kunesh, Hoffman, Maye Quade and Clark)
  DATE       D-PG  OFFICIAL STATUS
 05/15/2026    10667 Introduction and first reading
  Referred to Education Finance
1.1A bill for an act
1.2relating to education finance; providing for school employee health insurance;
1.3increasing the minimum starting salary for nonlicensed school personnel; providing
1.4for paid orientation and professional development for paraprofessionals;
1.5appropriating money; amending Minnesota Statutes 2024, sections 43A.316,
1.6subdivisions 2, 3, 5, 7, 8, by adding subdivisions; 121A.642, as amended; 125A.08,
1.7subdivision 2; Laws 2025, First Special Session chapter 10, article 2, section 24,
1.8subdivision 24; proposing coding for new law in Minnesota Statutes, chapters
1.9121A; 123B; 124D; 126C; repealing Minnesota Statutes 2024, section 43A.316,
1.10subdivision 11.
1.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.12ARTICLE 1
1.13SCHOOL EMPLOYEES
1.14     Section 1. Minnesota Statutes 2024, section 121A.642, as amended by Laws 2025, First
1.15  Special Session chapter 10, article 2, section 8, is amended to read:
1.16121A.642 PARAPROFESSIONAL TRAINING.
1.17Subdivision 1. Training required. (a) For purposes of this section, "school" means a
1.18  school district, charter school, intermediate school district, other cooperative unit, Perpich
1.19  Center for Arts Education, or the Minnesota State Academies.
1.20(b) A school must provide a minimum of eight 16 hours of paid orientation or professional
1.21  development annually to all paraprofessionals, Title I aides, and other instructional support
1.22  staff.
1.23(c) Six of the eight 16 hours must be completed before the first instructional day of the
1.24  school year or within 30 days of hire.
Article 1 Section 1.  1
03/18/26  REVISOR       CR/AD  26-08028  as introduced
2.1      (d) The orientation or professional development must be relevant to the employee's
2.2  occupation and may include collaboration time with classroom teachers and planning for
2.3  the school year.
2.4      (e) For paraprofessionals who provide direct support to students, at least 50 percent of
2.5  the professional development or orientation must be dedicated to meeting the requirements
2.6  of this section. Professional development for paraprofessionals may also address the
2.7  requirements of section 120B.363, subdivision 3.
2.8      (f) A school administrator must provide an annual certification of compliance with this
2.9  requirement to the commissioner.
2.10     (g) For the 2024-2025 school year only, a school may reduce the hours of training
2.11 required in paragraphs (b) to (e) to a minimum of six hours and must pay for paraprofessional
2.12 test materials and testing fees for any paraprofessional employed by the school district
2.13 during the 2023-2024 school year who has not yet successfully completed the
2.14 paraprofessional assessment or met the requirements of the paraprofessional competency
2.15 grid.
2.16     Subd. 2. Reimbursement for paraprofessional training. (a) Beginning in fiscal year
2.17 2025, the commissioner of education must reimburse schools in the form and manner
2.18 specified by the commissioner for paraprofessional training costs.
2.19     (b) The paraprofessional reimbursement equals the prior year compensation expenses
2.20 associated with providing up to eight 16 hours of paid orientation and professional
2.21 development for each paraprofessional trained under subdivision 1. For purposes of this
2.22 paragraph, "compensation expenses" means the sum of the following amounts attributable
2.23 to the school's paraprofessionals:
2.24     (1) regular hourly wages;
2.25     (2) Federal Insurance Contributions Act (FICA) taxes under United States Code, title
2.26 26, chapter 21; and
2.27     (3) the employer share of retirement contributions required under chapter 352, 353, 354,
2.28 or 354A.
2.29     (c) The commissioner may establish procedures to ensure that any costs reimbursed
2.30 under this section are excluded from other school revenue calculations.
2.31     (d) For reimbursements paid in fiscal year 2026 only, the commissioner must reimburse
2.32 a school for six hours of paraprofessional training required under subdivision 1, paragraph
2.33 (b).
Article 1 Section 1.  2
03/18/26  REVISOR        CR/AD  26-08028  as introduced
3.1      (e) In addition to the amounts under paragraph (d), for fiscal year 2026 only, the
3.2  commissioner must pay each school an additional amount equal to 33.33 percent of the
3.3  amount in paragraph (d). The school must use these funds either for paraprofessional test
3.4  preparation and exam fees under subdivision 1, paragraph (g), or additional training under
3.5  subdivision 1, paragraph (b).
3.6      Subd. 3. Consultation. A school district or charter school must consult the exclusive
3.7  representative for employees receiving this training before creating or planning the training
3.8  required under this section.
3.9      Subd. 4. Qualifications. (a) Starting in the 2025-2026 school year, A paraprofessional
3.10 meets the federal personnel qualifications required in Code of Federal Regulations, title 34,
3.11 section 300.156, if the paraprofessional:
3.12     (1) has at least two years of college credits through an accredited institution of higher
3.13 education, or an associate's degree or higher;
3.14     (2) has received a passing score on an assessment approved by the Department of
3.15 Education; or
3.16     (3) demonstrates the following competencies, regardless of the number of hours of
3.17 training the paraprofessional has received:
3.18     (i) understanding the distinctions between roles and responsibilities of professionals,
3.19 paraprofessionals, and support personnel;
3.20     (ii) understanding the purposes and goals of education and instruction for all students;
3.21     (iii) knowledge of relevant laws, rules, regulations, and local district policies and
3.22 procedures to ensure paraprofessionals work within these parameters;
3.23     (iv) awareness of the challenges and expectations of various learning environments;
3.24     (v) the ability to establish and maintain rapport with students;
3.25     (vi) the ability to follow oral and written direction of licensed teachers, seeking
3.26 clarification as needed;
3.27     (vii) the ability to assist and reinforce elements that support a safe, healthy, and effective
3.28 teaching and learning environment;
3.29     (viii) understanding strategies for assisting with the inclusion of students in various
3.30 settings;
3.31     (ix) the ability to use strategies that promote the student's independence;
Article 1 Section 1.  3
03/18/26  REVISOR        CR/AD  26-08028  as introduced
4.1      (x) understanding applicable laws, rules, and regulations, and procedural safeguards
4.2  regarding the management of student behaviors;
4.3      (xi) awareness of the primary factors that influence student behavior;
4.4      (xii) the ability to effectively employ a variety of strategies that reinforce positive
4.5  behavior;
4.6      (xiii) the ability to use ethical practices for confidential communication about students;
4.7      (xiv) the ability to follow teacher instructions while conferring and collaborating with
4.8  teachers about student schedules, instructional goals, and performance;
4.9      (xv) demonstrating a commitment to assisting students in reaching the students' highest
4.10 potential, including the modeling of positive behavior;
4.11     (xvi) showing respect for the diversity of students;
4.12     (xvii) showing a willingness to participate in ongoing staff development and
4.13 self-evaluation and to apply constructive feedback;
4.14     (xviii) supporting and reinforcing the instruction of students in mathematics following
4.15 written and oral lesson plans developed by licensed teachers;
4.16     (xix) supporting and reinforcing the instruction of students in reading following written
4.17 and oral lesson plans developed by licensed teachers. Professional development required
4.18 under the Read Act in section 120B.123 exceeds this requirement; and
4.19     (xx) supporting and reinforcing the instruction of students in writing following written
4.20 and oral lesson plans developed by licensed teachers.
4.21     (b) Starting in the 2025-2026 school year, A paraprofessional meets the federal personnel
4.22 qualifications required in Code of Federal Regulations, title 34, section 200.58, if the
4.23 paraprofessional:
4.24     (1) has at least two years of college credits from an accredited institution of higher
4.25 education, or an associate's degree or higher; or
4.26     (2) met a rigorous standard of quality and can demonstrate, through a formal state or
4.27 local academic assessment, knowledge of and the ability to assist in instructing, as
4.28 appropriate:
4.29     (i) reading or language arts, writing, and mathematics; or
4.30     (ii) reading readiness, writing readiness, and mathematics readiness.
Article 1 Section 1.  4
03/18/26  REVISOR  CR/AD  26-08028  as introduced
5.1(c) Upon request from a paraprofessional employed by a school district, charter school,
5.2  or cooperative unit providing direct instructional services, the school district, charter school,
5.3  or cooperative unit may provide administrative assistance to the paraprofessional when
5.4  completing requirements related to the competencies required under this subdivision.
5.5(d) For state and federal purposes for a paraprofessional, demonstrating the competencies
5.6  listed in paragraph (a), clause (3), is equivalent to achieving a passing score on a formal
5.7  state or local academic assessment in accordance with paragraph (a), clause (2). The
5.8  department must take any steps necessary to ensure the paraprofessional meets federal
5.9  qualification requirements, including but not limited to applying for a waiver under Code
5.10 of Federal Regulations, title 20, section 5891b. The department must not exclude state aid
5.11 under any program for a paraprofessional who has demonstrated the competencies listed in
5.12 paragraph (a), clause (3), instead of achieving a passing score on a formal state or local
5.13 assessment in accordance with paragraph (a), clause (2). A district or charter school must
5.14 maintain the paraprofessional's completed assessment and documentation that the
5.15 paraprofessional demonstrated the required competencies in the paraprofessional's personnel
5.16 file.
5.17      EFFECTIVE DATE. This section is effective the day following final enactment and
5.18 applies for the 2026-2027 school year and later.
5.19   Sec. 2. [121A.645] NONINSTRUCTIONAL STAFF TRAINING.
5.20      (a) A school district or charter school must provide noninstructional staff, including but
5.21 not limited to food service employees and bus drivers, with a minimum of 16 annual hours
5.22 of paid orientation or professional development. The training must include:
5.23      (1) strategies for managing student behavior;
5.24      (2) district or school policies relating to student behavior or discipline, including the
5.25 bullying policy under section 121A.031; and
5.26      (3) district or school resources for addressing student behavior.
5.27      (b) Up to eight hours of paid training provided under section 171.321, subdivision 4,
5.28 may be counted toward the 16 hours required under this section.
5.29      (c) Noninstructional aid for a school district or charter school equals $.......
5.30      (d) A school administrator must provide an annual certification of compliance with this
5.31 section to the commissioner.
5.32      EFFECTIVE DATE. This section is effective July 1, 2026.
Article 1 Sec. 2.  5
03/18/26  REVISOR  CR/AD  26-08028  as introduced
6.1    Sec. 3. [123B.026] EMPLOYEES OF CONTRACTORS.
6.2      (a) A school district or charter school that enters into a contract for services with a third
6.3  party must require the third party to pay all employee wages at a rate of at least $25 per
6.4  hour. Unless approved by the commissioner of education, a school board must renegotiate
6.5  any agreement for services with a third party in effect as of July 1, 2026, to require the third
6.6  party to pay all employee wages at a rate of at least $25 per hour, 16 hours of paid orientation
6.7  or professional development that meets the requirements of sections 121A.642 and 121A.645,
6.8  and wages for days that a school district or charter school designates as an e-learning day
6.9  under section 120A.414.
6.10     (b) A school administrator must provide an annual certification of compliance with this
6.11 section to the commissioner of education. The first certification must be submitted by July
6.12 1, 2027.
6.13     EFFECTIVE DATE. This section is effective July 1, 2026.
6.14   Sec. 4. Minnesota Statutes 2024, section 125A.08, subdivision 2, is amended to read:
6.15     Subd. 2. Paraprofessionals. For all paraprofessionals employed to work in programs
6.16 whose role in part is to provide direct support to students with disabilities, the school board
6.17 in each district shall ensure that:
6.18     (1) before or beginning at the time of employment, each paraprofessional must develop
6.19 sufficient knowledge and skills in emergency procedures, building orientation, roles and
6.20 responsibilities, confidentiality, vulnerability, and reportability, among other things, to begin
6.21 meeting the needs, especially disability-specific and behavioral needs, of the students with
6.22 whom the paraprofessional works;
6.23     (2) within five days of before beginning to work alone with an individual student with
6.24 a disability, the assigned paraprofessional must be either given paid time, or time during
6.25 the school day, to review a student's individualized education program or be briefed on the
6.26 student's specific needs by appropriate staff;
6.27     (3) annual training opportunities are required to enable the paraprofessional to continue
6.28 to further develop the knowledge and skills that are specific to the students with whom the
6.29 paraprofessional works, including understanding disabilities, the unique and individual
6.30 needs of each student according to the student's disability and how the disability affects the
6.31 student's education and behavior, following lesson plans, and implementing follow-up
6.32 instructional procedures and activities; and
Article 1 Sec. 4.  6
03/18/26  REVISOR  CR/AD  26-08028  as introduced
7.1      (4) a districtwide process obligates each paraprofessional to work under the ongoing
7.2  direction of a licensed teacher and, where appropriate and possible, the supervision of a
7.3  school nurse.
7.4      EFFECTIVE DATE. This section is effective July 1, 2026.
7.5    Sec. 5. [126C.38] MINIMUM WAGE RATE AID.
7.6      Subdivision 1. Minimum wage. Notwithstanding any law to the contrary, a school
7.7  district or charter school must pay the following employees wages at a rate of at least $25
7.8  per hour:
7.9      (1) paraprofessionals, Title I aides, and other instructional support staff;
7.10     (2) food service employees;
7.11     (3) bus drivers; and
7.12     (4) other employees who do not have a license issued by the Professional Educator
7.13 Licensing and Standards Board or the Board of School Administrators, and who work at
7.14 least 14 hours per week and 100 workdays per year in one position.
7.15     Subd. 2. Aid. Minimum wage rate aid for a school district or charter school equals $.......
7.16   Sec. 6. Laws 2025, First Special Session chapter 10, article 2, section 24, subdivision 24,
7.17 is amended to read:
7.18     Subd. 24. Paraprofessional training. (a) For compensation associated with paid
7.19 orientation and professional development for paraprofessionals under Minnesota Statutes,
7.20 section 121A.642:
7.21$  4,721,000      ..... 2026
7.225,000,000
7.23$  .......   ..... 2027
7.24     (b) The 2026 appropriation includes $221,000 for 2025 and $4,500,000 for 2026.
7.25     (c) The 2027 appropriation includes $500,000 for 2026 and $4,500,000 $....... for 2027.
7.26   Sec. 7. APPROPRIATION; DEPARTMENT OF EDUCATION.
7.27     Subdivision 1. Department of Education. The sums indicated in this section are
7.28 appropriated from the general fund to the Department of Education in the fiscal year
7.29 designated.
Article 1 Sec. 7.  7
03/18/26  REVISOR  CR/AD  26-08028  as introduced
8.1      Subd. 2. Minimum wage rate aid. For minimum wage rate aid under Minnesota Statutes,
8.2  section 126C.38:
8.3$  .......   ..... 2027
8.4      Subd. 3. Noninstructional staff; training on student behavior. For training on student
8.5  behavior under Minnesota Statutes, section 121A.645:
8.6$  .......   ..... 2027
8.7ARTICLE 2
8.8EDUCATOR GROUP INSURANCE PROGRAM
8.9    Section 1. Minnesota Statutes 2024, section 43A.316, subdivision 2, is amended to read:
8.10     Subd. 2. Definitions. For the purpose of this section, the terms defined in this subdivision
8.11 have the meaning given them.
8.12     (a) Commissioner. "Commissioner" means the commissioner of management and
8.13 budget.
8.14     (b) Employee. "Employee" means:
8.15     (1) a person who is a public employee within the definition of section 179A.03,
8.16 subdivision 14, who is insurance eligible and is employed by an eligible employer;
8.17     (2) an elected public official of an eligible employer who is insurance eligible;
8.18     (3) a person employed by a labor organization or employee association certified as an
8.19 exclusive representative of employees of an eligible employer or by another public employer
8.20 approved by the commissioner, so long as the plan meets the requirements of a governmental
8.21 plan under United States Code, title 29, section 1002(32); or
8.22     (4) a person employed by a county or municipal hospital.
8.23     (c) Eligible employer. "Eligible employer" means:
8.24     (1) a public employer within the definition of section 179A.03, subdivision 15, that is
8.25 a town, county, city, school district as defined in section 120A.05, service cooperative as
8.26 defined in section 123A.21, intermediate district as defined in section 136D.01, Cooperative
8.27 Center for Vocational Education as defined in section 123A.22, regional management
8.28 information center as defined in section 123A.23, or an education unit organized under the
8.29 joint powers action, section 471.59; or
8.30     (2) an exclusive representative of employees, as defined in paragraph (b);
Article 2 Section 1.  8
03/18/26  REVISOR  CR/AD  26-08028  as introduced
9.1      (3) a county or municipal hospital; or
9.2      (4) another public employer approved by the commissioner.
9.3      (d) Exclusive representative. "Exclusive representative" means an exclusive
9.4  representative as defined in section 179A.03, subdivision 8.
9.5      (e) Program. "Program" means the statewide public employees insurance program
9.6  created by subdivision 3.
9.7      (f) Educator group insurance program. "Educator group insurance program" means
9.8  the mandatory health insurance pool created from the school employee pool.
9.9      (g) Retired school employee. "Retired school employee" means a school employee
9.10 who has separated from service with any school employer and has met the age and service
9.11 requirements necessary to receive an annuity from a Minnesota public pension plan.
9.12     (h) School employee. "School employee" means an employee of a school employer,
9.13 regardless of the number of hours worked or their status as a public employee under section
9.14 179A.03, subdivision 14.
9.15     (i) School employee pool. "School employee pool" means a mandatory health insurance
9.16 pool for all eligible school employees and other eligible employees or employers electing
9.17 to be in the pool.
9.18     (j) School employer. "School employer" means a district as defined in section 120A.05,
9.19 a service cooperative as defined in section 123A.21, an intermediate district as defined in
9.20 section 136D.01, a cooperative center for vocational education as defined in section 123A.22,
9.21 a regional management information center as defined in section 123A.23, a charter school
9.22 under chapter 124D, or an education unit organized under a joint powers agreement under
9.23 section 471.59.
9.24   Sec. 2. Minnesota Statutes 2024, section 43A.316, subdivision 3, is amended to read:
9.25     Subd. 3. Public employee insurance program. The commissioner shall be the
9.26 administrator of the public employee insurance program and the educator group insurance
9.27 program and may determine its funding, coverage, and administrative arrangements. The
9.28 commissioner shall model the program programs after the plan established in section 43A.18,
9.29 subdivision 2, but. The commissioner shall offer individual school employers dependent
9.30 coverage tiers that match the coverage when entering the school employee pool and any
9.31 changes to dependent coverage tiers subsequently negotiated. The commissioner shall also
9.32 offer a high-deductible plan compatible with health care savings accounts. The commissioner
Article 2 Sec. 2.  9
 03/18/26  REVISOR  CR/AD  26-08028  as introduced
10.1  may modify that plan those plans and dependent coverage tiers pursuant to the requirements
10.2  of subdivision 4a.
10.3    Sec. 3. Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to
10.4  read:
10.5      Subd. 4a. Educator group insurance program. The Labor Management Committee
10.6  is established and consists of 12 members appointed to represent participating school
10.7  employees and retired school employees. The Minnesota Association of School
10.8  Administrators; the Minnesota Association of School Business Officials; the Service
10.9  Employees International Union; the American Federation of State, County, and Municipal
10.10 Employees; and the Minnesota School Employees Association must each appoint one
10.11 representative. Education Minnesota must appoint seven representatives, providing a diverse
10.12 representation of the state, including a retiree. Committee members are eligible for expense
10.13 reimbursement in the same manner and amount as authorized by the commissioner's plan
10.14 adopted under section 43A.18, subdivision 2. A change to a cost-sharing plan may only be
10.15 made with mutual agreement between the commissioner and the committee. The committee
10.16 shall study issues relating to the insurance program, including but not limited to flexible
10.17 benefits, utilization review, quality assessment, and cost efficiency. The committee continues
10.18 to exist while the program remains in operation.
10.19   Sec. 4. Minnesota Statutes 2024, section 43A.316, subdivision 5, is amended to read:
10.20     Subd. 5. Public employee participation. (a) Participation in the program is subject to
10.21 the conditions in this subdivision.
10.22     (b) Each exclusive representative for an a nonschool eligible employer determines
10.23 whether the employees it represents will participate in the program. The exclusive
10.24 representative shall give the employer notice of intent to participate at least 30 days before
10.25 the expiration date of the collective bargaining agreement preceding the collective bargaining
10.26 agreement that covers the date of entry into the program. The exclusive representative and
10.27 the eligible employer shall give notice to the commissioner of the determination to participate
10.28 in the program at least 30 days before entry into the program. Entry into the program is
10.29 governed by a schedule established by the commissioner.
10.30     (c) Employees not represented by exclusive representatives may become members of
10.31 the program upon a determination of an a nonschool eligible employer to include these
10.32 employees in the program. Either all or none of the employer's unrepresented employees
10.33 must participate. The eligible employer shall give at least 30 days' notice to the commissioner
 Article 2 Sec. 4.  10
 03/18/26  REVISOR  CR/AD  26-08028  as introduced
11.1  before entering the program. Entry into the program is governed by a schedule established
11.2  by the commissioner.
11.3      (d) Participation in the program is for a four-year term. Participation is automatically
11.4  renewed for an additional four-year term unless the exclusive representative, or the employer
11.5  for unrepresented employees, gives the commissioner notice of withdrawal at least 30 days
11.6  before expiration of the participation period. A group that withdraws must wait two years
11.7  before rejoining. An exclusive representative, or employer for unrepresented employees,
11.8  may also withdraw if premiums increase 20 percent or more from one insurance year to the
11.9  next.
11.10     (e) The exclusive representative shall give the employer notice of intent to withdraw to
11.11 the commissioner at least 30 days before the expiration date of a collective bargaining
11.12 agreement that includes the date on which the term of participation expires.
11.13     (f) Each participating eligible employer shall notify the commissioner of names of
11.14 individuals who will be participating within two weeks of the commissioner receiving notice
11.15 of the parties' intent to participate. The employer shall also submit other information as
11.16 required by the commissioner for administration of the program.
11.17     (d) Participation by a nonschool employer in the program is permanent once elected.
11.18 Nonschool exclusive representatives and eligible employers enrolled in the public employee
11.19 insurance program after July 1, 2026, shall have the option to either remain enrolled and
11.20 move to the mandatory school employee pool or permanently leave enrollment.
11.21     (e) All school employers shall submit to the administrators of the mandatory school
11.22 employee pool the names and other required information regarding its school employees
11.23 within two weeks of the employees starting work or becoming employed, whichever comes
11.24 first. New coverage is effective on the first day of employment. Three months prior to entry
11.25 into the program, school employers shall provide the program administrator with the names
11.26 and required information of current employees. Beginning January 1, 2027, or as soon
11.27 thereafter as contracts or agreements with providers that were in place upon enactment
11.28 expire, school employees shall receive insurance through the school employee pool.
11.29 Employees of school employers obligated by a health insurance contract expiring on or
11.30 before December 31, 2026, must begin participation in the program on January 1, 2027. In
11.31 the event an insurance contract expires after enactment and before December 31, 2026,
11.32 subsequent contracts expire on December 31, 2026. A school employee participating in the
11.33 public employee insurance program must join the school employee pool on January 1, 2027,
11.34 regardless of the length of the employee's remaining term.
 Article 2 Sec. 4.  11
 03/18/26  REVISOR  CR/AD  26-08028  as introduced
12.1      (f) School employers with individual self-insured plans that have unused reserve funds
12.2  after all obligations have been met may negotiate with the exclusive representative regarding
12.3  the reserve amount (1) attributable to the proportionate number of insured lives covered by
12.4  the exclusive representative, and (2) that must be dedicated for use for health insurance
12.5  benefits for all individuals currently receiving health benefits. Notwithstanding section
12.6  471.617, no notice or approval is required for school employers who dissolve a self-insured
12.7  plan under this section. If the school employer and the exclusive representative are unable
12.8  to come to an agreement, the remaining funds must be used to pay the employee's premium
12.9  portion to the school employee pool until the reserve funds are depleted. These funds shall
12.10 be used for a proportional premium payment at the time it is necessary to deplete the balance.
12.11     (g) School employers leaving a plan under section 123A.21 with a service cooperative
12.12 must receive a prorated share of the service cooperative reserves attributable to their portion
12.13 of membership in the plan and distribute them as required in paragraph (f).
12.14   Sec. 5. Minnesota Statutes 2024, section 43A.316, subdivision 7, is amended to read:
12.15     Subd. 7. Premiums. The proportion of premium paid by the employer and employee is
12.16 subject to collective bargaining or personnel policies. If, at the beginning of the coverage
12.17 period, no collective bargaining agreement has been finalized, the increased dollar costs, if
12.18 any, from the previous year is the sole responsibility of the individual participant until a
12.19 collective bargaining agreement states otherwise. Premiums, including an administration
12.20 fee, shall be established by the commissioner and shall not vary across eligible school
12.21 employers. Each employer shall pay monthly the amounts due for employee benefits
12.22 including the amounts under subdivision 8 to the commissioner no later than the dates
12.23 established by the commissioner. If an employer fails to make the payments as required,
12.24 the commissioner may cancel program benefits and pursue other civil remedies, including
12.25 accessing funds allocated to the school employer by the Department of Education. Failure
12.26 to make payments is considered using funds contrary to their purpose under section 127A.42,
12.27 subdivision 2, clause (7), and the commissioner of education shall use section 127A.42 to
12.28 reduce necessary aid to pay to the educator group insurance program.
12.29   Sec. 6. Minnesota Statutes 2024, section 43A.316, subdivision 8, is amended to read:
12.30     Subd. 8. Continuation of coverage. (a) A former employee of an employer participating
12.31 in the program who is receiving a public pension disability benefit or an annuity or has met
12.32 the age and service requirements necessary to receive an annuity under chapter 353, 353C,
12.33 354, 354A, 356, or 423, or Minnesota Statutes 2008, chapter 422A, and the former employee's
 Article 2 Sec. 6.  12
 03/18/26  REVISOR  CR/AD  26-08028  as introduced
13.1  dependents, are eligible to participate in the program. This participation is at the person's
13.2  expense unless a collective bargaining agreement or personnel policy provides otherwise.
13.3  Premiums for these participants must be established by the commissioner.
13.4      The commissioner may must not provide policy exclusions for preexisting conditions
13.5  only when there is a break in coverage between a participant's coverage under the
13.6  employment-based group insurance program and the participant's coverage under this
13.7  section. An employer shall notify an employee of the option to participate under this
13.8  paragraph no later than the effective date of retirement. The retired employee or the employer
13.9  of a participating group on behalf of a current or retired employee shall notify the
13.10 commissioner within 30 days of the effective date of retirement of intent to participate in
13.11 the program according to the rules established by the commissioner.
13.12     (b) The spouse of a deceased employee or former employee may purchase the benefits
13.13 provided at premiums established by the commissioner if the spouse was a dependent under
13.14 the employee's or former employee's coverage under this section at the time of the death.
13.15 The spouse remains eligible to participate in the program as long as the group that included
13.16 the deceased employee or former employee participates in the program under the
13.17 requirements of section 62A.146. Coverage under this clause must be coordinated with
13.18 relevant insurance benefits provided through the federally sponsored Medicare program.
13.19     (c) The program benefits must continue in the event of strike permitted by section
13.20 179A.18, if the exclusive representative chooses to have coverage continue and the employee
13.21 pays the total monthly premiums when due and the employer must continue to pay the total
13.22 monthly premiums due.
13.23     (d) A participant who discontinues coverage may not reenroll unless newly eligible
13.24 under this section.
13.25     Persons participating under these paragraphs shall make appropriate premium payments
13.26 in the time and manner established by the commissioner.
13.27   Sec. 7. Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to
13.28 read:
13.29     Subd. 12. Nonidentifiable aggregate claims data from past coverage. Upon request
13.30 by the commissioner, entities that are providing or have provided coverage to eligible school
13.31 employees shall provide to the commissioner at no charge nonidentifiable aggregate claims
13.32 data for that coverage. Notwithstanding section 13.203, the information must include data
13.33 relating to school employees' group benefit sets, demographics, claims experience, and any
 Article 2 Sec. 7.  13
 03/18/26  REVISOR  CR/AD  26-08028  as introduced
14.1  other data or information reasonably necessary to accurately and appropriately underwrite
14.2  the risk of the school employees.
14.3    Sec. 8. Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to
14.4  read:
14.5      Subd. 13. Educator group insurance program start-up funding; administration of
14.6  ongoing revenues and expenses. The commissioner may impose a reserve surcharge in
14.7  the first three years of school employee enrollment if the commissioner deems it actuarially
14.8  necessary to supplement the existing public employee insurance program reserves available
14.9  in the insurance trust fund under subdivision 9. These funds are available to support both
14.10 the phasing out of the public employee insurance program and the implementation of the
14.11 educator group insurance program.
14.12   Sec. 9. Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision to
14.13 read:
14.14     Subd. 14. Eligibility. (a) A school employee who is a public employee within the
14.15 definition of section 179A.03, subdivision 14, is eligible for coverage in the school employee
14.16 pool for the plan year, including school breaks. A school district employer must seek an
14.17 opinion from the Office of the Attorney General on any dispute over eligibility under the
14.18 authority of section 8.07. Notwithstanding any other law to the contrary, the attorney general
14.19 must provide this opinion without charge, and the parties must comply with the opinion
14.20 until a party exercises their right to a resolution through a grievance process in the collective
14.21 bargaining agreement. An attorney general opinion is admissible in any related arbitration
14.22 proceeding.
14.23     (b) If an employee meets the hour requirement for a public employee under section
14.24 179A.03, subdivision 14, when combining hours assigned by two or more separate school
14.25 employers and works less than full-time with any employer, each employer shall pay a pro
14.26 rata share of the cost of the employer contribution. A full-time employer shall pay the full
14.27 employer contribution.
14.28     (c) An employee must receive notification of continuation rights as provided in other
14.29 laws. This coverage must be considered employer sponsored for purposes of all continuation
14.30 laws, including section 471.61, subdivision 2b, and no former employee has a right to force
14.31 the continuation of a plan created prior to the school employee pool.
14.32     (d) An employee who waives coverage upon eligibility is not eligible to enroll until the
14.33 next open enrollment period.
 Article 2 Sec. 9.  14
 03/18/26  REVISOR  CR/AD  26-08028  as introduced
15.1      (e) School employees who are not also public employees as defined under section
15.2  179A.03, subdivision 14, are permitted to purchase coverage from the school employee
15.3  pool at their own expense or, if negotiated, with a full or partial employer contribution.
15.4      (f) In the event an eligible employee goes on unpaid status for the remainder of the
15.5  month, continuation premiums are not due until the next month.
15.6      (g) Employers and employees are permitted to agree to the continuation of employer-paid
15.7  premiums postemployment.
15.8    Sec. 10. Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision
15.9  to read:
15.10     Subd. 15. Contributions. On behalf of school employees covered by subdivision 14,
15.11 paragraph (a), the school district must contribute 85 percent of the costs for family premiums
15.12 and 95 percent of the costs for single premiums for the highest value plan offered for school
15.13 employer participants. If an eligible school employee chooses a high-deductible plan, the
15.14 employer must contribute the equivalent of the 85 or 95 percent cost of the highest value
15.15 plan toward the chosen plan, and any allotted contribution in excess of the high-deductible
15.16 premium shall be made to the employee's health care savings account or health reimbursement
15.17 arrangement. If such an account is not already in the parties' collective bargaining agreement,
15.18 the parties shall negotiate to establish one. Failure to agree on an account results in the
15.19 required contributions being made to an employee health care savings account with the
15.20 Minnesota State Retirement System pursuant to chapter 352. All remaining costs must be
15.21 paid by the employee unless the exclusive representative and employer agree that the
15.22 employer will cover some or all of the cost as:
15.23     (1) premium contributions;
15.24     (2) contributions to a health reimbursement arrangement or health savings account; or
15.25     (3) a combination of premium contributions and contributions to a health reimbursement
15.26 arrangement or health savings account.
15.27 Eligible employees who are married to another eligible employee may choose to have one
15.28 family plan or two single plans. If they choose a family plan, 100 percent of the premium
15.29 must be paid by the employers in equal shares.
 Article 2 Sec. 10.  15
 03/18/26  REVISOR  CR/AD  26-08028  as introduced
16.1    Sec. 11. Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision
16.2  to read:
16.3      Subd. 16. Health insurance revenue. Funding for a service cooperative as defined in
16.4  section 123A.21, an intermediate district as defined in section 136D.01, and a cooperative
16.5  center for vocational education as defined in section 123A.22 shall be direct aid and shall
16.6  be equal to the average of funding received per eligible staff member by the member districts
16.7  for each of the entity's eligible staff members employed by the entity on October 1 of the
16.8  previous school year.
16.9    Sec. 12. Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision
16.10 to read:
16.11     Subd. 17. No effect on more generous plans or policies. (a) Consistent with participation
16.12 in the school employee pool, nothing in this section shall be construed to discourage
16.13 employers from adopting or retaining health plan and related benefit policies that meet or
16.14 exceed, and do not otherwise conflict with, the minimum standards and requirements
16.15 provided in this section.
16.16     (b) Consistent with participation in the school employee pool, nothing in this section
16.17 shall be construed to limit the right of parties to a collective bargaining agreement to bargain
16.18 and agree with respect to health plan and related benefit policies or to diminish the obligation
16.19 of an employer to comply with any contract, collective bargaining agreement, or any
16.20 employment benefit program or plan that meets or exceeds, and does not otherwise conflict
16.21 with, the minimum standards and requirements provided in this section. This specifically
16.22 includes but is not limited to premium contributions and tax-favored accounts permitted by
16.23 the Internal Revenue Service, including health reimbursement arrangements, health savings
16.24 accounts, and section 125 of the Internal Revenue Code flexible spending accounts, but
16.25 does not include individual coverage health reimbursement arrangements or specific plan
16.26 benefit structures.
16.27     (c) Consistent with participation in the school employee pool, nothing in this section
16.28 shall be construed to preempt, limit, or otherwise affect the applicability of any other law,
16.29 regulation, requirement, policy, or standard that provides for additional health plan and
16.30 related benefits or that extends other protections to employees.
16.31     (d) Consistent with participation in the school employee pool, nothing in this section
16.32 shall be construed or applied to create any power or duty in conflict with federal law.
 Article 2 Sec. 12.  16
 03/18/26  REVISOR  CR/AD  26-08028  as introduced
17.1    Sec. 13. Minnesota Statutes 2024, section 43A.316, is amended by adding a subdivision
17.2  to read:
17.3      Subd. 18. Broker commissions. School employers shall not expend public resources
17.4  for broker commissions either as a direct fee or as an amount added to the insurer's rates
17.5  for assistance with implementation and ongoing use of health insurance benefits provided
17.6  under the school employee pool.
17.7    Sec. 14. [124D.997] EDUCATOR GROUP INSURANCE PROGRAM AID.
17.8      Subdivision 1. Eligibility. A school district or charter school is eligible to apply to the
17.9  commissioner for educator group insurance program aid under this section.
17.10     Subd. 2. Certification; aid calculation. (a) If a district determines that it will incur
17.11 additional employer premium costs attributable to the requirements of section 43A.316,
17.12 subdivision 15, it may certify the additional costs to the commissioner for approval, in the
17.13 form and manner determined by the commissioner. Aid for the district equals the amount
17.14 approved by the commissioner.
17.15     (b) A district that cannot demonstrate additional employer premium costs under paragraph
17.16 (a) is not eligible for aid under this section.
17.17     Subd. 3. Eligible uses. Aid under this section may be used for premium costs attributable
17.18 to the requirements of section 43A.316.
17.19     EFFECTIVE DATE. This section is effective for revenue in fiscal year ... and later.
17.20   Sec. 15. APPROPRIATION.
17.21     Subdivision 1. Department of Education. The sum indicated in this section is
17.22 appropriated from the general fund to the Department of Education for the fiscal year
17.23 designated.
17.24     Subd. 2. Educator group insurance program aid. (a) For educator group insurance
17.25 program aid under Minnesota Statutes, section 124D.997:
17.26$  .......   ..... 2027
17.27     (b) The 2027 appropriation includes $0 for fiscal year 2026 and $....... for fiscal year
17.28 2027.
17.29   Sec. 16. REPEALER.
17.30     Minnesota Statutes 2024, section 43A.316, subdivision 11, is repealed.
 Article 2 Sec. 16.  17
  APPENDIX
  Article locations for 26-08028
ARTICLE 1   SCHOOL EMPLOYEES........................................................................ Page.Ln 1.12
ARTICLE 2   EDUCATOR GROUP INSURANCE PROGRAM................................ Page.Ln 8.7
1
  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.
  1R