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

1.3    "Sec. 36. Minnesota Statutes 2006, section 79A.22, subdivision 3, is amended to read:
1.4    Subd. 3. New membership. The commercial self-insurance group shall file with
1.5the commissioner the name of any new employer that has been accepted in the group
1.6prior to the initiation date of membership within five business days of the initiation date
1.7of membership along with the member's signed indemnity agreement and evidence the
1.8member has deposited sufficient premiums with the group as required by the commercial
1.9self-insurance group's bylaws or plan of operation. The security deposit of the group shall
1.10be increased quarterly to an amount equal to 50 percent of the new members' premiums
1.11for that quarter. If the total increase of new members' premiums for the first quarter is
1.12less than five percent of the total annual premium of the group, no quarterly increase
1.13is necessary until the cumulative quarterly increases for that calendar year exceed five
1.14percent of the total premium of the group. The commissioner may, at the commissioner's
1.15option, review the financial statement of any applicant whose premium equals 25 percent
1.16or more of the group's total premium.

1.17    Sec. 37. Minnesota Statutes 2006, section 79A.22, subdivision 4, is amended to read:
1.18    Subd. 4. Commercial self-insurance group common claims fund. (a) Each
1.19commercial self-insurance group shall establish a common claims fund.
1.20    (b) Each commercial self-insurance group shall, not less than ten days prior to the
1.21proposed effective date of the group, collect cash premiums from each member equal to
1.22not less than 20 percent of the member's annual workers' compensation premium to be
1.23paid into a common claims fund, maintained by the group in a designated depository. The
1.24remaining balance of the member's premium shall be paid to the group in a reasonable
1.25manner over the remainder of the year. Payments in subsequent years shall be made
1.26according to the business plan.
2.1    (c) Each commercial self-insurance group shall initiate proceedings against a
2.2member when that member becomes more than 15 30 days delinquent in any payment
2.3of premium to the fund.
2.4    (d) There shall be no commingling of any assets of the common claims fund with the
2.5assets of any individual member or with any other account of the service company or fiscal
2.6agent unrelated to the payment of workers' compensation liabilities incurred by the group.

2.7    Sec. 38. Minnesota Statutes 2006, section 79A.23, subdivision 2, is amended to read:
2.8    Subd. 2. Required reports from members to group. (a) Each member of the
2.9commercial self-insurance group shall, by September 15, submit to the group its most
2.10recent annual financial statement, together with other financial information the group may
2.11require. These financial statements submitted must not have a fiscal year end date older
2.12than January 15 of the group's calendar year end. Individual group members constituting
2.13at least 25 percent of the group's annual premium shall submit to the group reviewed or
2.14audited financial statements. The remaining members must submit compilation level
2.15statements.
2.16    (b) For groups that have been in existence for at least three years, individual group
2.17members may satisfy the requirements of paragraph (a) by submitting compiled, reviewed,
2.18or 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."