Purpose

• Update transportation-related authority and procedures around third-party road tests for school bus drivers.
• Make technical changes to how service cooperatives (SCs) plan and provide a broad set of educational programs and services.
• Clarify oversight and contracting related to health insurance programs and third-party testing of school bus drivers.

Main Provisions

• Education programs and services by service cooperatives (Section 123A.21 subd. 7)

  • Each SC’s board must annually submit a plan to its members identifying programs and services to consider implementing in the next year, with components for long-range planning.
  • The plan may include a wide range of services, such as:
  • Administrative services, curriculum development, data processing
  • Distance learning and other telecommunication services
  • Evaluation and research, staff development
  • Media/technology centers, publication and dissemination of materials
  • Pupil personnel services, planning, and services for secondary/postsecondary/adult education
  • Teaching and learning services (including for students with special talents or needs)
  • Employee personnel services, vocational rehabilitation
  • Health, diagnostic, and child development services; leadership in early childhood and family education
  • Community services, shared time programs
  • Fiscal services and risk management (including health insurance programs with reinsurance or stop-loss coverage)
  • Technology planning, training, and support services; health and safety services
  • Student academic challenges; cooperative purchasing services
  • Third-party testing of school bus drivers
  • An SC is subject to regulatory oversight by the state’s commissioner of commerce when operating a health reinsurance program (reinsurance/stop-loss).

• Health insurance and related provisions

  • A group health, dental, or long-term disability program provided by one or more SCs may extend coverage to certain nursing homes and boarding care homes that participate in Minnesota’s medical assistance program, under specified licensing/participation rules.
  • Such programs must rebid insurance and third-party administration contracts at least every four years. Premiums may be set for individual employers or on a pooled/other basis determined by the SC.

• Third-party testing of school bus drivers (Section 171.3213)

  • Road tests (including necessary endorsement tests) for operating a school bus are defined as “road tests.”
  • Bilateral agreements:
  • A school district designated as a third-party testing program that owns/operates school buses may test drivers from other districts.
  • A school bus company designated as a third-party testing program that owns/operates buses may test drivers from other bus companies.
  • Reimbursement for tests is arranged between the tested district or company and the testing program; the agreement must be approved by the state commissioner.
  • A certified third-party tester must be employed by the district or bus company providing testing services.
  • Service cooperatives as testing programs:
  • The commissioner may designate a service cooperative (under section 123A.21) as a third-party testing program.
  • A designated SC can administer road tests to employees of member districts who own or operate school buses.

Significant Changes to Existing Law

• Expanded role and planning for service cooperatives

  • Requires SCs to annually plan and specify a broad array of programs and services, with long-range planning components.

• Oversight and coverage for health insurance programs

  • Adds regulatory oversight by the commissioner of commerce for SC-operated health reinsurance programs and related coverage arrangements.

• Expanded contracting and bidding requirements

  • Mandates rebidding of insurance and third-party administration contracts at least every four years, with flexible premium determination (per-employer or pooled).

• New framework for third-party testing of school bus drivers

  • Makes it easier for districts and bus companies to partner with other districts or companies to perform road tests.
  • Allows service cooperatives to be designated as third-party testing programs, enabling testing of members’ employees.

• Clarified definitions and processes for road tests

  • Broadens the concept of road tests to include endorsement testing and formal bilateral agreements, with formal approval and reimbursement structures.

Relevant terms section follows.

Relevant Terms - third-party testing - road test - school bus drivers - service cooperative (SC) - bilateral agreements - commissioner of commerce - health reinsurance - stop-loss coverage - insurance contracts - third-party tester - certified third-party tester - district - school bus company - reimbursement - testing program - data processing - distance learning - telecommunication services - pupil personnel services - vocational rehabilitation - protective health and safety services - cooperative purchasing services - long-range planning - administrative services - public education programs and services - proof of approval by the commissioner