.................... moves to amend H.F. No. 3783 as follows:
Page 22, after line 26, insert
"Sec. 36. Minnesota Statutes 2006, section 79A.22, subdivision 3, is amended to read:
Subd. 3. New membership.
The commercial self-insurance group shall file with
the commissioner the name of any new employer that has been accepted in the group
prior to the initiation date of membership within five business days of the initiation date
along with the member's signed indemnity agreement and evidence the
member has deposited sufficient premiums with the group as required by the commercial
self-insurance group's bylaws or plan of operation. The security deposit of the group shall
be increased quarterly to an amount equal to 50 percent of the new members' premiums
for that quarter. If the total increase of new members' premiums for the first quarter is
less than five percent of the total annual premium of the group, no quarterly increase
is necessary until the cumulative quarterly increases for that calendar year exceed five
percent of the total premium of the group. The commissioner may, at the commissioner's
option, review the financial statement of any applicant whose premium equals 25 percent
or more of the group's total premium.
Sec. 37. Minnesota Statutes 2006, section 79A.22, subdivision 4, is amended to read:
Subd. 4. Commercial self-insurance group common claims fund.
commercial self-insurance group shall establish a common claims fund.
(b) Each commercial self-insurance group shall, not less than ten days prior to the
proposed effective date of the group, collect cash premiums from each member equal to
not less than 20 percent of the member's annual workers' compensation premium to be
paid into a common claims fund, maintained by the group in a designated depository. The
remaining balance of the member's premium shall be paid to the group in a reasonable
manner over the remainder of the year. Payments in subsequent years shall be made
according to the business plan.
(c) Each commercial self-insurance group shall initiate proceedings against a
member when that member becomes more than
days delinquent in any payment
of premium to the fund.
(d) There shall be no commingling of any assets of the common claims fund with the
assets of any individual member or with any other account of the service company or fiscal
agent unrelated to the payment of workers' compensation liabilities incurred by the group.
Sec. 38. Minnesota Statutes 2006, section 79A.23, subdivision 2, is amended to read:
Subd. 2. Required reports from members to group.
(a) Each member of the
commercial self-insurance group shall, by September 15, submit to the group its most
recent annual financial statement, together with other financial information the group may
require. These financial statements submitted must not have a fiscal year end date older
than January 15 of the group's calendar year end. Individual group members constituting
at least 25 percent of the group's annual premium shall submit to the group reviewed or
audited financial statements. The remaining members must submit compilation level
(b) For groups that have been in existence for at least three years, individual group
members may satisfy the requirements of paragraph (a) by submitting compiled, reviewed,
or audited statements or the most recent federal income tax return filed by the member.
2.19 (c) Groups that have been in existence for at least five years may satisfy the
2.20requirement of paragraph (a) through submissions from members representing at least
2.2150 percent of the groups's total earned premium. Of those submissions, those from
2.22members representing at least 25 percent of the entire group's total earned premium must
2.23be audited or reviewed financial statements. The remainder of the submissions may be
2.24compiled, reviewed, or audited financial statements or the most recent tax return filed
2.25by the members.