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Committee advances permissive bill allowing watershed districts to join health‑insurance pools

Minnesota State and Local Government Committee · March 3, 2026
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Summary

Senate File 38‑87, advanced as amended, would permit watershed districts and watershed management organizations to buy into or form self‑insurance pools for employee health benefits; Prior Lake–Spring Lake Watershed administrator testified in support and the committee adopted the amendment and laid the bill over.

Senate File 38‑87 would add permissive language allowing watershed districts and watershed management organizations to participate in self‑insurance pools or join existing public employer health insurance cooperatives. Sponsor Senator Pratt said the language is permissive and creates an option for local units of government to collaborate on benefits and lower costs.

Joni Peasy, who identified herself as administrator of the Prior Lake–Spring Lake Watershed District, testified the statutory change would let watershed districts explore forming self‑insurance pools and noted that the Minnesota Watersheds organization adopted a resolution supporting the bill. Peasy said the change responds to a state statute that currently prevents watershed entities from joining such pools.

Committee members discussed whether certain townships — particularly larger townships with populations over 10,000 — are covered by the bill’s language; senators asked counsel to confirm definitions and said they would consider a technical fix if needed. The committee adopted an amendment and recommended the bill to pass as amended and for possible inclusion in the final package.

The sponsor and testifier characterized the measure as permissive: it does not require districts or townships to join a pool but allows that option. Committee members asked staff to verify statutory definitions for township eligibility before final action.