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SF 5296

School employee health insurance provision, minimum starting salary for nonlicensed school personnel extension provision, paid orientation, professional development for paraprofessional; appropriation

2025-2026 Regular Session Introduced by Doron Clark and 4 co-sponsors

Creates a single Educator Group Insurance Program and raises wages and training standards for paraprofessionals, noninstructional staff, and contracted workers starting 2026-27.

Referred to Education Finance
#appropriations #educationandeducationdepartment #insurance-health
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Bill Summary · SF 5296

Overview

SF 5296 is a Minnesota bill aimed at reforming school employee health insurance and expanding paid orientation and professional development for paraprofessionals and other nonlicensed school personnel. It also establishes new funding mechanisms and governance for an educator group insurance program, with substantial wage and benefit provisions designed to raise and standardize compensation and training requirements across school-related staff. The bill includes appropriations and authorization to implement these changes beginning in the 2026-2027 school year and beyond.

Main purpose and intent

  • Create and fund a Minnesota public educator group insurance program (a school employee pool) that groups school employees, including nonlicensed staff, into a single health insurance program.
  • Raise minimum wages for certain nonlicensed school personnel and other school workers to at least $25 per hour.
  • Expand and standardize paid orientation and ongoing professional development for paraprofessionals and noninstructional staff.
  • Require third-party service providers contracted by school districts to meet minimum wage and training standards.
  • Provide targeted funding and administrative structures to support these health insurance and training reforms.

Key provisions and changes

  • Paraprofessional training (121A.642):

    • Minimum of 16 hours of paid orientation/professional development annually (up from 8).
    • At least 6 of 16 hours must occur before or within 30 days of hire; at least 50% of PD for paraprofessionals must address paraprofessional requirements.
    • Annual compliance certification by school administrators to the commissioner.
    • Reimbursement starting in FY2025 for paraprofessional training costs; specific formulas tie reimbursement to prior-year compensation and employer expenses (wages, FICA, employer retirement contributions).
    • Special handling for 2026 reimbursements (six hours baseline plus a 33.33% boost for test prep or additional training).
    • Consultation requirement with exclusive representatives before planning training.
    • Qualifications for paraprofessionals align with federal standards (two years of college or equivalent, or demonstrated competencies).

  • Noninstructional staff training (121A.645):

    • Districts must provide 16 annual hours of paid orientation/training for noninstructional staff (e.g., food service, bus drivers) focusing on behavior strategies, district policies, and resources.
    • Effective July 1, 2026.

  • Minimum wage and wage enforcement:

    • New wage floor of $25/hour for paraprofessionals, Title I aides, food service workers, bus drivers, and certain other non-licensed staff (Sec. 5 and 11).
    • Minimum wage rate aid established to support districts’ costs related to these wage increases (Sec. 5, 11).

  • School employee health insurance program (43A.316 amendments):

    • Establishment of an Educator Group Insurance Program; governance via a Labor Management Committee and expanded representation (Education Minnesota, administrators, unions).
    • Mandatory participation framework for school employers and exclusive/nonexclusive representation; transition rules for entering the new pool with timelines (e.g., January 1, 2027 for full school employee pool participation).
    • Premiums and cost-sharing rules standardized by the commissioner; provisions for self-insured plans and reserve funds.
    • Data sharing and privacy provisions for nonidentifiable aggregate claims data to support underwriting.

  • Funding and appropriations:

    • Specific appropriations for paraprofessional training and educator group insurance program costs; phased for 2026 and 2027 with ongoing revenue considerations (Sec. 6, 7, 14, 15).
    • Repeal of older Public Employees Insurance Program provision related to certain proposals (Sec. 16).

  • Contracts with contractors:

    • Require third-party service contractors to pay workers at least $25/hour and provide the required training (Sec. 3).

Who would be affected

  • Paraprofessionals, Title I aides, and other instructional support staff would receive more paid orientation and higher wage floor.
  • Noninstructional staff (food service, bus drivers, etc.) would gain a 16-hour training requirement and higher wages.
  • School districts, charter schools, and service cooperatives would bear higher wage costs and would need to implement standardized training and enrollment in the school employee pool.
  • Employers entering into contracts with third parties for school services would face wage and training requirements.
  • The Department of Education would administer the educator group insurance program and related funding, with oversight and reporting obligations.

Procedural and timeline notes

  • Phase-in: 2026-2027 school year for expanded paraprofessional training reimbursement and full participation in the school employee insurance pool begins by 2027.
  • Administration and reporting: annual compliance certifications by school administrators; ongoing coordination with exclusive representatives.
  • The bill expands funding for training and insurance programs through 2027 and includes future appropriation planning.

Note: This summary reflects the bill text as introduced; actual enactment may adjust specifics.

Compiled from official sources — confirm details with the bill’s official record.

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