1.1    .................... moves to amend H.F. No. 3783 as follows:
1.2Page 22, after line 26, insert

1.3    "Section 1. Minnesota Statutes 2006, section 79A.06, subdivision 5, is amended to read:
1.4    Subd. 5. Private employers who have ceased to be self-insured. (a) Private
1.5employers who have ceased to be private self-insurers shall discharge their continuing
1.6obligations to secure the payment of compensation which is accrued during the period of
1.7self-insurance, for purposes of Laws 1988, chapter 674, sections 1 to 21, by compliance
1.8with all of the following obligations of current certificate holders:
1.9    (1) Filing reports with the commissioner to carry out the requirements of this chapter;
1.10    (2) Depositing and maintaining a security deposit for accrued liability for the
1.11payment of any compensation which may become due, pursuant to chapter 176. However,
1.12if a private employer who has ceased to be a private self-insurer purchases an insurance
1.13policy from an insurer authorized to transact workers' compensation insurance in this state
1.14which provides coverage of all claims for compensation arising out of injuries occurring
1.15during the entire period the employer was self-insured, whether or not reported during
1.16that period, the policy will:
1.17    (i) discharge the obligation of the employer to maintain a security deposit for the
1.18payment of the claims covered under the policy;
1.19    (ii) discharge any obligation which the self-insurers' security fund has or may have
1.20for payment of all claims for compensation arising out of injuries occurring during the
1.21period the employer was self-insured, whether or not reported during that period; and
1.22    (iii) discharge the obligations of the employer to pay any future assessments to
1.23the self-insurers' security fund.
1.24    A private employer who has ceased to be a private self-insurer may instead buy an
1.25insurance policy described above, except that it covers only a portion of the period of time
1.26during which the private employer was self-insured; purchase of such a policy discharges
1.27any obligation that the self-insurers' security fund has or may have for payment of all
2.1claims for compensation arising out of injuries occurring during the period for which the
2.2policy provides coverage, whether or not reported during that period.
2.3    A policy described in this clause may not be issued by an insurer unless it has
2.4previously been approved as to form and substance by the commissioner; and
2.5    (3) Paying within 30 days all assessments of which notice is sent by the security
2.6fund, for a period of seven years from the last day its certificate of self-insurance was in
2.7effect. Thereafter, the private employer who has ceased to be a private self-insurer may
2.8either: (i) continue to pay within 30 days all assessments of which notice is sent by the
2.9security fund until it has no incurred liabilities for the payment of compensation arising
2.10out of injuries during the period of self-insurance; or (ii) pay the security fund a cash
2.11payment equal to four percent of the net present value of all remaining incurred liabilities
2.12for the payment of compensation under sections 176.101 and 176.111 as certified by a
2.13member of the casualty actuarial society. Assessments shall be based on the benefits paid
2.14by the employer during the calendar year immediately preceding the calendar year in
2.15which the employer's right to self-insure is terminated or withdrawn.
2.16    (b) With respect to a self-insurer who terminates its self-insurance authority after
2.17April 1, 1998, that member shall obtain and file with the commissioner an actuarial
2.18opinion of its outstanding liabilities as determined by an associate or fellow of the
2.19Casualty Actuarial Society within 120 days of the date of its termination. If the actuarial
2.20opinion is not timely filed, the self-insurers' security fund may, at its discretion, engage
2.21the services of an actuary for this purpose. The expense of this actuarial opinion must
2.22be assessed against and be the obligation of the self-insurer. The commissioner may
2.23issue a certificate of default against the self-insurer for failure to pay this assessment
2.24to the self-insurers' security fund as provided by section 79A.04, subdivision 9. The
2.25opinion must separate liability for indemnity benefits from liability from medical benefits,
2.26and must discount each up to four percent per annum to net present value. Within 30
2.27days after notification of approval of the actuarial opinion by the commissioner, the
2.28member shall pay to the security fund an amount equal to 120 percent of that discounted
2.29outstanding indemnity liability, multiplied by the greater of the average annualized
2.30assessment rate since inception of the security fund or the annual rate at the time of the
2.31most recent assessment before termination. If the payment is not made within 30 days of
2.32the notification, interest on it at the rate prescribed by section 549.09 must be paid by the
2.33former member to the security fund until the principal amount is paid in full.
2.34    (c) A former member who terminated its self-insurance authority before April 1,
2.351998, who has paid assessments to the self-insurers' security fund for seven years, and
2.36whose annualized assessment is $500 $15,000 or less, may buy out of its outstanding
3.1liabilities to the self-insurers' security fund by an amount calculated as follows: 1.35
3.2multiplied by the indemnity case reserves at the time of the calculation, multiplied by the
3.3then current self-insurers' security fund annualized assessment rate.
3.4    (d) A former member who terminated its self-insurance authority before April 1,
3.51998, and who is paying assessments within the first seven years after ceasing to be
3.6self-insured under paragraph (a), clause (3), may elect to buy out its outstanding liabilities
3.7to the self-insurers' security fund by obtaining and filing with the commissioner an
3.8actuarial opinion of its outstanding liabilities as determined by an associate or fellow of
3.9the Casualty Actuarial Society. The opinion must separate liability for indemnity benefits
3.10from liability for medical benefits, and must discount each up to four percent per annum to
3.11net present value. Within 30 days after notification of approval of the actuarial opinion
3.12by the commissioner, the member shall pay to the security fund an amount equal to 120
3.13percent of that discounted outstanding indemnity liability, multiplied by the greater of the
3.14average annualized assessment rate since inception of the security fund or the annual rate
3.15at the time of the most recent assessment.
3.16    (e) A former member who has paid the security fund according to paragraphs (b) to
3.17(d) and subsequently receives authority from the commissioner to again self-insure shall be
3.18assessed under section 79A.12, subdivision 2, only on indemnity benefits paid on injuries
3.19that occurred after the former member received authority to self-insure again; provided
3.20that the member furnishes verified data regarding those benefits to the security fund.
3.21    (f) In addition to proceedings to establish liabilities and penalties otherwise
3.22provided, a failure to comply may be the subject of a proceeding before the commissioner.
3.23An appeal from the commissioner's determination may be taken pursuant to the contested
3.24case procedures of chapter 14 within 30 days of the commissioner's written determination.
3.25    Any current or past member of the self-insurers' security fund is subject to service of
3.26process on any claim arising out of chapter 176 or this chapter in the manner provided by
3.27section 5.25, or as otherwise provided by law. The issuance of a certificate to self-insure
3.28to the private self-insured employer shall be deemed to be the agreement that any process
3.29which is served in accordance with this section shall be of the same legal force and effect
3.30as if served personally within this state."