1.1.................... moves to amend S.F. No. 1, the second engrossment, as amended, as follows:
1.2Page 11, after line 9, insert:

1.3    "Sec. 10. [62H.18] AGRICULTURAL COOPERATIVE HEALTH PLAN.
1.4    Subdivision 1. Definitions. (a) The definitions in this subdivision apply to this section.
1.5(b) "Agricultural cooperative" means a cooperative organized under chapters 308A or
1.6308B that meets the requirements of subdivision 2.
1.7(c) "Broker" means an insurance agent engaged in brokerage business according to
1.8section 60K.49.
1.9(d) "Employee Retirement Income Security Act" means the Employee Retirement Income
1.10Security Act of 1974, United States Code, title 29, sections 1001, et seq.
1.11(e) "Enrollee" means a natural person covered by a joint self-insurance plan operating
1.12under this section.
1.13(f) "Insurance agent" has the meaning given to insurance agent in section 60A.02,
1.14subdivision 7.
1.15(g) "Joint self-insurance plan" or "plan" means a plan or any other arrangement established
1.16for the benefit of two or more entities authorized to transact business in the state, in order
1.17to jointly self-insure through a single employee welfare benefit plan funded through a trust,
1.18to provide health, dental, or other benefits as permitted under the Employee Retirement
1.19Income Security Act.
1.20(h) "Service plan administrator" means a vendor of risk management services licensed
1.21under section 60A.23.
1.22(i) "Trust" means a trust established to accept and hold assets of the joint self-insurance
1.23plan in trust and use and disperse funds in accordance with the terms of the written trust
2.1document and joint self-insurance plan for the sole purposes of providing benefits and
2.2defraying reasonable administrative costs of providing the benefits.
2.3    Subd. 2. Exemption. A joint self-insurance plan is exempt from sections 62H.01 to
2.462H.17 and is instead governed by this section, if it is administered through a trust established
2.5by an agricultural cooperative that:
2.6(1) has members who (i) actively work in production agriculture in Minnesota and file
2.7either Form 1065 or Schedule F with the member's income tax return; or (ii) provide direct
2.8services to production agriculture in Minnesota;
2.9(2) specifies criteria for membership in the agricultural cooperative in their articles of
2.10organization or bylaws; and
2.11(3) grants at least 51 percent of the aggregate voting power on matters for which all
2.12members may vote to members who satisfy clause (1) and any additional criteria in the
2.13agricultural cooperative's articles of organization and bylaws.
2.14    Subd. 3. Plan requirements. A joint self-insurance plan operating under this section
2.15must:
2.16(1) offer health coverage to members of the agricultural cooperative that establishes the
2.17plan and their dependents, to employees of members of the agricultural cooperative that
2.18establishes the plan and their dependents, or to employees of the agricultural cooperative
2.19that establishes the plan and their dependents;
2.20(2) include aggregate stop-loss coverage and individual stop-loss coverage provided by
2.21an insurance company licensed in Minnesota;
2.22(3) establish a reserve fund, certified by an actuary to be sufficient to cover unpaid claim
2.23liability for incurred but not reported liabilities in the event of plan termination. Certification
2.24from the actuary must include all maximum funding requirements for plan fixed cost
2.25requirements and current claims liability requirements, and must include a calculation of
2.26the reserve levels needed to fund all incurred but not reported liabilities in the event of
2.27member or plan termination. These reserve funds must be held in a trust;
2.28(4) be governed by a board elected by agricultural cooperative members that participate
2.29in the plan;
2.30(5) contract for services with a service plan administrator; and
2.31(6) satisfy the requirements of the Employee Retirement Income Security Act that apply
2.32to employee welfare benefit plans.
3.1    Subd. 4. Submission of documents to commissioner of commerce. A joint
3.2self-insurance plan operating under this section must submit to the commissioner of
3.3commerce copies of all filings and reports that are submitted to the United States Department
3.4of Labor according to the Employee Retirement Income Security Act. Members participating
3.5in the joint self-insurance plan may designate an agricultural cooperative that establishes
3.6the plan as the entity responsible for satisfying the reporting requirements of the Employee
3.7Retirement Income Security Act and for providing copies of these filings and reports to the
3.8commissioner of commerce.
3.9    Subd. 5. Participation; termination of participation. If a member chooses to participate
3.10in a joint self-insurance plan under this section, the member must participate in the plan for
3.11at least three consecutive years. If a member terminates participation in the plan before the
3.12end of the three-year period, a financial penalty may be assessed under the plan, not to
3.13exceed the amount contributed by the member to the plan reserves.
3.14    Subd. 6. Single risk pool. The enrollees of a joint self-insurance plan operating under
3.15this section shall be members of a single risk pool. The plan shall provide benefits as a
3.16single, self-insured plan with the size of the plan based on the total enrollees in the risk
3.17pool.
3.18    Subd. 7. Promotion, marketing, sale of coverage. (a) Coverage in a joint self-insurance
3.19plan operating under this section may be promoted, marketed, and sold by insurance agents
3.20and brokers to members of the agricultural cooperative sponsoring the plan and their
3.21dependents, employees of members of the agricultural cooperative sponsoring the plan and
3.22their dependents, and employees of the agricultural cooperative sponsoring the plan and
3.23their dependents.
3.24(b) Coverage in a joint self-insurance plan operating under this section may be promoted
3.25and marketed by a cooperative organized under chapters 308A or 308B to persons who may
3.26be eligible to participate in the joint self-insurance plan.
3.27    Subd. 8. Taxation. Joint self-insurance plans are exempt from the taxation imposed
3.28under section 297I.05, subdivision 12.
3.29    Subd. 9. Compliance with other laws. A joint self-insurance plan operating under this
3.30section:
3.31(1) is exempt from providing the mandated health benefits in chapters 62A and 62Q, if
3.32the plan otherwise provides the benefits required under the Employee Retirement Income
3.33Security Act;
4.1(2) is exempt from the continuation requirements in sections 62A.146, 62A.16, 62A.17,
4.262A.20, and 62A.21, if the plan complies with the continuation requirements under the
4.3Employee Retirement Income Security Act; and
4.4(3) must comply with all requirements of the Affordable Care Act, as defined in section
4.562A.011, subdivision 1a, to the extent that they apply to such plans.
4.6EFFECTIVE DATE.This section is effective the day following final enactment."
4.7Renumber the sections in sequence and correct the internal references
4.8Amend the title accordingly