1.1.................... moves to amend H.F. No. 2347 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 62L.02, subdivision 26, is amended to
1.4read:
1.5    Subd. 26. Small employer. (a) "Small employer" means, with respect to a calendar
1.6year and a plan year, a person, firm, corporation, partnership, association, or other entity
1.7actively engaged in business in Minnesota, including a political subdivision of the state,
1.8that employed an average of no fewer than two nor more than 50 current employees on
1.9business days during the preceding calendar year and that employs at least two current
1.10employees on the first day of the plan year. If an employer has only one eligible employee
1.11who has not waived coverage, the sale of a health plan to or for that eligible employee
1.12is not a sale to a small employer and is not subject to this chapter and may be treated as
1.13the sale of an individual health plan. A small employer plan may be offered through a
1.14domiciled association to self-employed individuals and small employers who are members
1.15of the association, even if the self-employed individual or small employer has fewer than
1.16two current employees. Entities that are treated as a single employer under subsection (b),
1.17(c), (m), or (o) of section 414 of the federal Internal Revenue Code are considered a single
1.18employer for purposes of determining the number of current employees. Small employer
1.19status must be determined on an annual basis as of the renewal date of the health benefit
1.20plan. The provisions of this chapter continue to apply to an employer who no longer meets
1.21the requirements of this definition until the annual renewal date of the employer's health
1.22benefit plan. If an employer was not in existence throughout the preceding calendar year,
1.23the determination of whether the employer is a small employer is based upon the average
1.24number of current employees that it is reasonably expected that the employer will employ
1.25on business days in the current calendar year. For purposes of this definition, the term
1.26employer includes any predecessor of the employer. An employer that has more than 50
2.1current employees but has 50 or fewer employees, as "employee" is defined under United
2.2States Code, title 29, section 1002(6), is a small employer under this subdivision.
2.3(b) Where an association, as defined in section 62L.045, comprised of employers
2.4contracts with a health carrier to provide coverage to its members who are small employers,
2.5the association and health benefit plans it provides to small employers, are subject to
2.6section 62L.045, with respect to small employers in the association, even though the
2.7association also provides coverage to its members that do not qualify as small employers.
2.8(c) If an employer has employees covered under a trust specified in a collective
2.9bargaining agreement under the federal Labor-Management Relations Act of 1947,
2.10United States Code, title 29, section 141, et seq., as amended, or employees whose health
2.11coverage is determined by a collective bargaining agreement and, as a result of the
2.12collective bargaining agreement, is purchased separately from the health plan provided
2.13to other employees, those employees are excluded in determining whether the employer
2.14qualifies as a small employer. Those employees are considered to be a separate small
2.15employer if they constitute a group that would qualify as a small employer in the absence
2.16of the employees who are not subject to the collective bargaining agreement.
2.17(d) The definition provided in this section shall not change or be changed to include
2.18employers that have more than 50 current employees, except by legislation enacted under
2.19the laws of this state.
2.20EFFECTIVE DATE.This section is effective the day following final enactment.

2.21    Sec. 2. [62L.085] LARGER SMALL EMPLOYERS.
2.22    Subdivision 1. Definitions. "Larger small employer" means an employer that would
2.23meet the definition of "small employer" as defined in section 62L.02, subdivision 26,
2.24except that it has more than 50 but fewer than 101 eligible employees, as that term is
2.25defined in section 62L.02, subdivision 13.
2.26    Subd. 2. Premium rate increase. A health carrier, as defined in section 62L.02,
2.27subdivision 16, must comply with section 62L.08, subdivision 2a, in regard to renewal
2.28premium increases for coverage of larger small employers, except that the adjustment
2.29limit of 15 percent specified in paragraph (a), item (2), of that subdivision is 20 percent
2.30for purposes of this subdivision.
2.31EFFECTIVE DATE.This section is effective for coverage offered, issued, or
2.32renewed on or after January 1, 2013."