Purpose of the Bill

This bill aims to ensure better financial protection for high school students involved in extracurricular athletic activities by requiring the Minnesota State High School League to provide catastrophic accident insurance and to manage related payments.

Main Provisions

• Catastrophic Accident Insurance: The Minnesota State High School League is mandated to contract an insurance policy that covers catastrophic injuries sustained by students during league-sponsored extracurricular sports activities.

  • The insurance must provide a minimum of $10 million in lifetime coverage for each injury.
  • A deductible of $50,000 is required per injury.
  • Coverage must include medical care, personal care, medications, as well as equipment such as vehicles and wheelchairs related to the catastrophic injury.
  • Insurance must not deny any recommended treatments as long as they are advised by a healthcare provider.

• Eligibility: The coverage extends to student athletes, managers, trainers, and cheerleaders, including ninth graders, participating in interscholastic competitions and related activities.

• Income Tax Implication: The bill mandates a subtraction from income for catastrophic injury payments made to two former student athletes affected by injuries in past high school events, reducing their taxable income.

  • Payments are to be made between December 31, 2025, and January 1, 2027, for injuries from a hockey game in 2011 and a football game in 2022.

Significant Changes to Existing Law

• This legislation introduces a new statutory requirement for specific insurance policies under Minnesota Statutes chapter 128C. It also specifies financial provisions connected to catastrophic injury payments that may impact how these payments are processed and reported for tax purposes.

Relevant Terms

• Catastrophic accident insurance
• Minnesota State High School League
• Extracurricular athletic activities
• Subtraction from income
• Interscholastic competition