___________________ moved that HB 1287 be amended as follows:

    On the printed bill, delete everything after the enacting clause and insert:

"    Section 1. That § 58-18-88 be amended to read:

    58-18-88. A self-funded multiple employer trust, as defined in section 3 of the federal Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1002, paragraph 40, that is sponsored by an association under subdivision (2), may be authorized by the director if the multiple employer trust meets all of the following conditions:

            (1)    The multiple employer trust is administered by an authorized insurer or a licensed or registered third-party administrator;

            (2)    The multiple employer trust meets all of the requirements of § 58-18B-59 is sponsored and maintained by at least one bona fide association of employers that is organized under the laws of this or any other state and has a governing charter, bylaws, and a board of directors;

            (3)    The multiple employer trust is established by a homogenous trade, industry, or professional association of employers that has a constitution or bylaws, is organized under the laws of South Dakota and has been maintained in good faith for purposes other than providing insurance for at least ten continuous years Each sponsoring association under subdivision (2) shall be comprised of twenty-five or more members, all of whom are in the same trade or industry;

            (4)    The association sponsoring the multiple employer trust under subdivision (2) is engaged in substantial activity for its members other than sponsorship of an employer welfare benefit plan;

            (5)    The association sponsoring the multiple employer trust is a nonprofit entity organized under applicable South Dakota law;

            (6)    The multiple employer trust, upon authorization by the director, participates in the South Dakota Life and Health Insurance Guaranty Association pursuant to chapter 58-29C and is a member pursuant to subdivision 58-29C-48(12) regarding employers and employees in this state participating in the multiple employer trust plan;

            (7)    The multiple employer trust:

            (a)    Meets the capital and surplus requirements of § 58-6-23. The director may approve a request by a multiple employer trust for a reduced capital and surplus level if the trust demonstrates any reduction would not compromise the trust's ability to pay claims on an ongoing basis;

            (b)    Meets the risk based capital requirements of § 58-4-48;

            (c)    Is subject to the hazardous financial condition requirements of §§ 58-4-39 to 58-4-42, inclusive;

            (d)    Invests its assets pursuant to the requirements of chapters 58-26 and 58-27;

            (e)    Is subject to chapter 58-3 on the same basis as insurers;

            (f)    Is subject to the insurers supervision, rehabilitation, and liquidation provisions of chapter 58-29B;

            (8)    Before application for an authorization is made, the multiple employer trust shall have received an application for participation from two or more members of the association who are employers with an aggregate of two hundred or more covered employees; and

            (9)    The director, after consideration of the impact on the insurance-buying public, has determined that the arrangement is in the best interest of the public.

The director may authorize a multiple employer trust that is not an association meeting the requirements of subdivisions (2) to (5), inclusive, of this section, if the multiple employer trust is comprised exclusively of employers engaged in a common industry for which there is some degree of common ownership, the ownership of two or more participating employers has existed since July 1, 2007, the employers forming the trust were previously providing health benefits collectively to their employees in this state, and the director finds that authorizing the multiple employer trust pursuant to this section is in the public interest.

    Section 2. That § 58-18-90 be amended to read:

    58-18-90. Except as otherwise provided in §§ 58-18-88 to 58-18-94, inclusive, and § 58-18B-59, a this chapter, an authorized multiple employer trust organized pursuant to §§ 58-18-88 to 58-18-94, inclusive, and § 58-18B-59 may not be deemed to be or considered to be an insurance company or association of any kind or character under Title 58 this title, or subject to the provisions of §§ 58-8-6 to 58-8-19, inclusive.

    Section 3. That § 58-18-91 be amended to read:

    58-18-91. A multiple employer trust authorized by §§ 58-18-88 to 58-18-94, inclusive, and § 58-18B-59 pursuant to this chapter may have its authorization suspended or revoked by the director for violating any provision of §§ 58-18-88 to 58-18-94, inclusive, and § 58-18B-59 applicable provision of this title or because its capital is impaired, and in either instance the. The director may take action in lieu of suspension or revocation as though the trust were an insurer as provided by § 58-4-28.1.

    Section 4. That § 58-18-93 be amended to read:

    58-18-93. No agent may sell, solicit, or negotiate a self-funded multiple employer trust authorized by §§ 58-18-88 to 58-18-94, inclusive, and § 58-18B-59 pursuant to this chapter unless the agent is licensed to sell life and health insurance pursuant to chapter 58-30.

    Section 5. That § 58-18-94 be amended to read:

    58-18-94. The provisions of §§ 58-18-88 to 58-18-94, inclusive, and § 58-18B-59 this chapter

regarding the authorization of multiple employer trusts do not apply to any single employer self-funded plan as preempted by Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1144 or any arrangement exempted pursuant to § 1-24-17. A An authorized self-funded multiple employer trust authorized by §§ 58-18-88 to 58-18-94, inclusive, and § 58-18B-59 may include as participating employers both small employers and large employers. "