MinnesotaSF 388794th Legislature, 2025-2026SenateWALLET

Watershed districts, watershed management organizations, and towns permission to self-insure for certain employee health benefits

Sponsored By: Eric R. Pratt (Republican)

Became Law

State and Local GovernmentElections Finance and Government OperationsChief Clerk for comparison with HF3571

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Health plan safeguards now cover watershed workers

Watershed districts now follow employee-representative safeguards when adopting self-insured health plans for represented workers. Employers must give the certified representative 10 days' written notice and consult with them. The representative covering the largest number of affected workers must agree. Before closing a single-employer self-insurance trust or dedicated fund, employers must give 30 days' written notice. Notice goes to each certified employee representative and everyone currently receiving benefits; the largest representative must approve closure. Trust assets must be audited before closure, and remaining assets must support current recipients' health insurance benefits. These closure safeguards do not apply to joint trusts or pools. A dissolved joint trust or pool distributes assets or liabilities to members under its agreement, if one exists.

Watershed employers gain self-funded health plan options

Minnesota watershed districts with more than 100 employees can self-insure, meaning they pay employee health benefits directly. Two or more cities, counties, school districts, watershed districts, or their related public bodies can also pool coverage. Together, they must have more than 100 employees. Coverage can include long-term disability, but not life benefits. Plans must cover legally required group health benefits, meet state certification rules, and receive Commerce Department certification before being issued. Joint pools follow section 62L.045, and service cooperatives can run them. School districts in these pools are not treated as self-insured for purposes of section 471.6161, subdivision 8(g). Commerce can set pool operating rules. This option does not guarantee lower costs or better benefits.

Watershed workers can enroll at personal cost

A watershed district with a self-insured health plan can let represented employees enroll at their own expense. Their certified employee representative must request enrollment. Employees pay the full enrollment cost. The law does not require the district to offer this enrollment or provide a subsidy.

Sponsors & Cosponsors

Sponsor

Eric R. Pratt
Republican • Senate

Cosponsors

Bakeberg
Affiliation unavailable
Cha
Affiliation unavailable
Matt D. Klein
Democratic • Senate
McDonald
Affiliation unavailable
Tabke
Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 265 • No: 2

Senate vote • 4/28/2026

Third Reading

Yes: 65 • No: 1

House vote • 4/27/2026

Passage, as amended

Yes: 134 • No: 0

Senate vote • 3/18/2026