1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to public and municipal corporations; 1.3 creating a county subsidiary corporation to provide 1.4 health care and related services, education, and 1.5 research; providing for governance of Hennepin County 1.6 Medical Center; amending Minnesota Statutes 2004, 1.7 sections 179A.03, subdivisions 7, 15; 353.01, 1.8 subdivisions 2b, 2d, 6; 353.64, subdivision 10; 1.9 353E.02, subdivision 2a; 383B.117, subdivision 2; 1.10 383B.217, subdivision 7; 383B.46; proposing coding for 1.11 new law in Minnesota Statutes, chapters 179A; 383B; 1.12 repealing Minnesota Statutes 2004, section 383B.217, 1.13 subdivisions 1, 2, 3, 4, 5, 6, 8. 1.14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.15 ARTICLE 1 1.16 HENNEPIN HEALTHCARE SYSTEM 1.17 Section 1. [383B.901] [CREATION OF A COUNTY SUBSIDIARY 1.18 CORPORATION.] 1.19 There is created a corporation which shall be public in 1.20 nature, operating as a subsidiary of the county of Hennepin. 1.21 The public corporation shall be known as Hennepin Healthcare 1.22 System, Inc. The purpose of the corporation is to engage in the 1.23 organization and delivery of health care and related services to 1.24 the general public, including the indigent as defined by state 1.25 and federal law and as determined by the Hennepin County Board 1.26 of Commissioners, and to conduct related programs of education 1.27 and research. The corporation shall have one class of members, 1.28 the governing member, who shall be Hennepin County, as 1.29 represented by the Hennepin County Board of Commissioners. The 2.1 governing member has all the rights, duties, and privileges 2.2 specified under this act and the bylaws of the corporation. 2.3 Sec. 2. [383B.902] [DEFINITIONS.] 2.4 Subdivision 1. [TERMS.] For the purpose of this act, the 2.5 terms defined in this section have the meanings given them 2.6 unless the context clearly indicates otherwise. 2.7 (a) "Corporation" means the county subsidiary corporation 2.8 created by section 383B.901. 2.9 (b) "County" means the county of Hennepin. 2.10 (c) "County board" means the Hennepin County Board of 2.11 Commissioners and its members. 2.12 (d) "HCMC" means the Hennepin County Medical Center, which 2.13 is the medical center established and operated by the county 2.14 under section 383B.217. 2.15 (e) "Effective date" means the effective date of the 2.16 sections of this act, as defined in section 29. 2.17 Sec. 3. [383B.903] [BOARD.] 2.18 Subdivision 1. [GOVERNANCE.] The corporation shall be 2.19 governed by a board of directors consisting of between 11 and 15 2.20 directors. Two of the directors on the board of the corporation 2.21 must be county commissioners currently serving as elected 2.22 officials on the county board who are chosen and may be removed 2.23 by a majority vote of the county board. 2.24 Subd. 2. [TERM, QUORUM, AND MANNER OF ACTING.] The term of 2.25 office for directors, rules governing quorum, and manner of 2.26 acting for the board of directors must be specified in the 2.27 bylaws of the corporation which shall be approved by the county 2.28 board, except that: 2.29 (1) a vote of a majority of the board shall be required to 2.30 hire or discharge the corporation's administrator, to approve 2.31 the annual budget, and for any action which requires subsequent 2.32 approval by the county board as specified in section 8; and 2.33 (2) directors of the board of directors or any committee or 2.34 advisory assembly or council appointed by the board of directors 2.35 may participate in a meeting by means of telephone conference or 2.36 similar communications equipment which enables all persons 3.1 participating in the meeting to hear each other during the 3.2 conduct of that meeting. Participation shall be considered 3.3 presence in person at the meeting for purposes of notice and 3.4 quorum requirements as specified in the bylaws. 3.5 Subd. 3. [APPOINTMENT OF BOARD MEMBERS.] The county board 3.6 shall appoint the initial board of the corporation. Thereafter, 3.7 the county board shall appoint directors of the corporation by 3.8 slate to open positions due to the completion of a director's 3.9 term as specified in the bylaws of the corporation. The slate 3.10 shall be nominated by a committee of the board of the 3.11 corporation. The board of the corporation may by majority vote 3.12 appoint a board member to fill a vacancy on the board occurring 3.13 prior to the completion of the term, provided the newly 3.14 appointed board member is submitted to the county board for 3.15 approval when the next slate of directors is submitted to the 3.16 county board for approval. 3.17 Subd. 4. [REMOVAL.] A director who is not a county 3.18 commissioner may be removed without cause by a two-thirds 3.19 majority vote of the board of the corporation. The county board 3.20 may remove any board member for violation of the director's 3.21 ethical and legal duties as a board member as specified in 3.22 section 5 or for the repeated failure to act in the best 3.23 interests of the corporation. In addition, the county board may 3.24 remove the corporate board in its entirety as specified in 3.25 section 8, subdivision 7. 3.26 Sec. 4. [383B.904] [OFFICERS.] 3.27 Subdivision 1. [ELECTION.] (a) The officers of the board 3.28 of the corporation shall consist of the chair, vice chair, 3.29 secretary, treasurer, and other officers as the board shall from 3.30 time to time deem necessary. The board shall elect officers by 3.31 a majority vote of the board at the annual meeting, or in the 3.32 case of the initial board, at the first meeting following 3.33 appointment by the county board. 3.34 (b) Any of the offices or functions, with the exception of 3.35 the chair and vice chair, may be held or exercised by the same 3.36 person. 4.1 Subd. 2. [REMOVAL.] An officer may be removed without 4.2 cause by a two-thirds majority vote of the board of the 4.3 corporation. 4.4 Sec. 5. [383B.905] [AUTHORITY AND DUTIES OF OFFICERS AND 4.5 DIRECTORS.] 4.6 Subdivision 1. [IN BYLAWS OR BY BOARD.] Officers and 4.7 directors have the authority and duties in the management of the 4.8 business of the corporation that the bylaws prescribe or, in the 4.9 absence of such prescription, as the board determines. 4.10 Subd. 2. [ORDINARY PRUDENT PERSON STANDARD.] Officers and 4.11 directors shall discharge their duties in good faith, in the 4.12 manner the officer or director reasonably believes to be in the 4.13 best interests of the corporation, and with the care an ordinary 4.14 prudent person in a like position would exercise under similar 4.15 circumstances. 4.16 Subd. 3. [NOT TRUSTEES.] Officers and directors are not 4.17 considered to be trustees with respect to the corporation or 4.18 with respect to property held or administered by the 4.19 corporation, including, without limit, property that may be 4.20 subject to restrictions imposed by the donor or transferor of 4.21 the property. 4.22 Sec. 6. [383B.906] [BYLAWS.] 4.23 Prior to the appointment of the initial board of the 4.24 corporation, the county board shall approve the bylaws of the 4.25 corporation. Thereafter, the board of the corporation may 4.26 adopt, amend, or repeal bylaws relating to the management of the 4.27 business or regulation of the affairs of the corporation, except 4.28 that the county board shall approve any bylaws change relating 4.29 to: 4.30 (1) board composition, board and officer selection, terms, 4.31 removal, or qualifications; 4.32 (2) the county board's reserved powers as specified in the 4.33 bylaws; 4.34 (3) the ability of the corporation to engage in joint 4.35 ventures; 4.36 (4) the ability of the corporation to incur debt through 5.1 the county; 5.2 (5) the ability of the corporation to create subsidiaries; 5.3 (6) the ability of the corporation to merge or dissolve; 5.4 (7) the ability of the corporation to use subsidiaries to 5.5 undertake functions or activities performed by employees of the 5.6 corporation; or 5.7 (8) the mission of the corporation. 5.8 Sec. 7. [383B.907] [CORPORATE POWERS.] 5.9 Subdivision 1. [AUTHORITY AND POWERS OF THE 5.10 BOARD.] Subject to the reserved powers and limitations specified 5.11 in sections 383B.903, subdivision 3, and 383B.908, or as 5.12 specified in the bylaws of the corporation, the corporation, 5.13 through its board, shall, relative to the delivery of health 5.14 care services, have, in addition to any authority vested by law, 5.15 the authority and legal capacity of a nonprofit corporation 5.16 under chapter 317A including the authority to: 5.17 (1) have members of its governing authority or its officers 5.18 or administrators serve as directors, officers, or employees of 5.19 the corporation's ventures, associations, or corporations; 5.20 (2) hire and discharge an administrator; 5.21 (3) approve personnel policies and practices, any 5.22 applicable labor agreements, and levels of compensation and 5.23 benefits recommended by the administrator; 5.24 (4) use employees, agents, consultants, and facilities of 5.25 the county, as necessary in the discretion of the board, paying 5.26 the county its agreed proportion of the compensation or costs 5.27 pursuant to an agreement with the county; 5.28 (5) spend funds, including public funds in any form, or 5.29 devote the resources of the corporation to recruit and retain 5.30 physicians whose services are necessary or desirable for meeting 5.31 the health care needs of the population and for the successful 5.32 performance of the public purpose of the corporation. Allowable 5.33 uses of funds and resources include the retirement of medical 5.34 education debt, payment of onetime amounts in consideration of 5.35 services rendered or to be rendered, payment of recruitment 5.36 expenses, payment of moving expenses, and the provision of other 6.1 financial assistance necessary for the recruitment and retention 6.2 of physicians, provided that the expenditures in whatever form 6.3 are reasonable under the facts and circumstances of the 6.4 situation; 6.5 (6) offer, directly or indirectly, products and services of 6.6 the corporation and/or affiliated entities to the general 6.7 public, and retain any profits earned through the provision of 6.8 these products and services for the purpose of advancing the 6.9 mission of the corporation; 6.10 (7) own shares of stock in business corporations; 6.11 (8) borrow money and issue bonds in support and promotion 6.12 of the corporation's purpose and mission and providing any 6.13 rights and obligations related thereto; 6.14 (9) accept gifts, grants, loans, or contributions of funds 6.15 or property or financial or other aid in any form from, and 6.16 enter into contracts or other transactions with, the federal 6.17 government, the state of Minnesota, third-party payors, or any 6.18 other source, and to use any gifts, grants, loans, or 6.19 contributions for any of its corporate purposes; 6.20 (10) enter shared service and other cooperative ventures; 6.21 (11) join or sponsor membership in organizations intended 6.22 to benefit the corporation; 6.23 (12) enter partnerships, joint ventures, or other business 6.24 arrangements to advance the mission of the corporation; 6.25 (13) sue or be sued; and 6.26 (14) incorporate other corporations, both for profit and 6.27 nonprofit. 6.28 Subd. 2. [OTHER POWERS.] Subject to the reserved powers 6.29 and limitations specified in sections 383B.903, subdivision 3, 6.30 and 383B.908, or as specified in the bylaws of the corporation, 6.31 the corporation shall have all the powers necessary and 6.32 convenient for the operation, administration, management, and 6.33 control of the corporation's affairs. The enumeration of 6.34 specific powers in this section is not intended to restrict the 6.35 power of the corporation to take any action which, in the 6.36 exercise of its discretion, is necessary or convenient to 7.1 further the purposes for which the corporation exists and that 7.2 is not otherwise prohibited by law, whether or not the power to 7.3 take the action is necessarily implied from the powers expressly 7.4 granted. 7.5 Sec. 8. [383B.908] [LIMITATIONS UPON CORPORATE POWERS; 7.6 RESERVED POWERS.] 7.7 Subdivision 1. [POWERS RESERVED TO THE 7.8 COUNTY.] Notwithstanding the authority granted to the board in 7.9 section 383B.907, the county board shall retain specific 7.10 controls over the corporation's mission, ability to incur 7.11 indebtedness through the county, indigent care, and governance. 7.12 These county board controls must be specified in the bylaws or 7.13 other transactional documents, which shall be approved by the 7.14 county board. 7.15 Subd. 2. [RESTRICTION ON DISPOSITION OF THE ASSETS.] The 7.16 corporation shall not have the power to dissolve, merge, 7.17 consolidate, transfer, liquidate, or otherwise dispose of or 7.18 distribute all, or substantially all, of the corporation's 7.19 assets without a county board resolution approved by a majority 7.20 of the county board. 7.21 Subd. 3. [DISTRIBUTION OF ASSETS UPON DISSOLUTION.] In the 7.22 event of the dissolution of the corporation, the net assets of 7.23 the corporation shall be distributed to the county for public 7.24 purposes. 7.25 Subd. 4. [COMPENSATION AND PAYMENT LIMITATIONS.] No part 7.26 of the net earnings and assets of the corporation shall inure to 7.27 the benefit of any private individual, nor shall any part of the 7.28 income or assets of the corporation be distributed to or divided 7.29 among any private individuals as dividends or otherwise. 7.30 Subd. 5. [FINANCIAL OVERSIGHT.] The county board shall 7.31 approve the annual budget of the corporation and receive an 7.32 annual audited financial statement. The county board shall also 7.33 retain the right to conduct an independent audit of the finances 7.34 of the corporation. 7.35 Subd. 6. [COUNTY SERVICES.] The county board shall retain 7.36 the authority to require the corporation to provide other health 8.1 care or health care related services as the county board 8.2 determines to be in the best interest of the county. The 8.3 corporation shall provide these services as long as the county 8.4 board provides funds to pay for the services. Payment to the 8.5 corporation for the services shall be as agreed between the 8.6 corporation and the county board. 8.7 Subd. 7. [DISSOLUTION OR REORGANIZATION OF THE 8.8 CORPORATION.] The county board shall retain the right to 8.9 dissolve the corporation, reorganize the corporation, or remove 8.10 the entire corporate board in order to resume management of 8.11 Hennepin County Medical Center upon a two-thirds vote of the 8.12 entire county board. 8.13 Sec. 9. [383B.909] [CORPORATE SEAL.] 8.14 The corporation shall not have a corporate seal. 8.15 Sec. 10. [383B.910] [BOARD MEETINGS.] 8.16 In accordance with the bylaws of the corporation, the board 8.17 shall provide for annual, regular, and special meetings to be 8.18 held at a designated interval throughout the year. Notice of 8.19 these meetings shall be provided in accordance with the bylaws 8.20 of the corporation. 8.21 Sec. 11. [383B.911] [PUBLIC DEPOSITORY.] 8.22 The corporation shall have jurisdiction over its accounts 8.23 and payrolls and shall establish and maintain a public 8.24 depository. The corporation may use the county as a public 8.25 depository. If the depository is not the county, the depository 8.26 must be subject to chapter 118A, except that the corporation 8.27 shall determine the appropriate security. The corporation shall 8.28 establish and maintain all necessary accounts. The corporation 8.29 may establish reserve accounts, depreciation accounts, and 8.30 working capital funds in order to operate on an accrual basis. 8.31 Sec. 12. [383B.912] [TRANSFER OF RIGHTS.] 8.32 Subdivision 1. [CORPORATION AS CONTINUATION OF HCMC.] The 8.33 corporation created by section 383B.901 shall be considered a 8.34 continuation of HCMC for purposes of all the rights, 8.35 liabilities, and contractual obligations of the county 8.36 pertaining to the operations of HCMC except as otherwise 9.1 provided herein. The corporation succeeds to all rights and 9.2 contractual obligations of the county pertaining to the 9.3 operations of HCMC with the same force and effect as if those 9.4 rights and obligations had been continued by the county itself. 9.5 Subd. 2. [PENDING MATTERS.] The corporation may conduct 9.6 and complete any legal action, administrative proceeding, or any 9.7 other matter commenced by or against HCMC or the county, on 9.8 behalf of HCMC, which was incurred before or pending as of the 9.9 effective date, in the same manner, under the same conditions, 9.10 and with the same effect as though the action, proceeding, or 9.11 other matter were conducted or completed by HCMC or the county 9.12 acting on behalf of HCMC. 9.13 Subd. 3. [TRANSFER OF DOCUMENTS REQUIRED.] On the 9.14 effective date, HCMC, or the county on behalf of HCMC, shall 9.15 have the authority to transfer and deliver to the corporation, 9.16 as specified in the lease and other transactional documents 9.17 referenced in section 383B.914, all contracts, books, bonds, 9.18 plans, paper, records, including all personnel and medical 9.19 records, and other property of every description within the 9.20 jurisdiction or control of HCMC, or the county acting on behalf 9.21 of HCMC, except as otherwise provided herein. 9.22 Subd. 4. [TRANSFER OF FUNDS.] On the effective date, HCMC, 9.23 or the county on behalf of HCMC, shall have the authority to 9.24 transfer to the corporation all unspent funds appropriated to 9.25 HCMC, as specified in the lease and other transactional 9.26 documents referenced in section 383B.914. 9.27 Sec. 13. [383B.913] [LEASE OR TRANSFER OF ASSETS.] 9.28 Subdivision 1. [CORPORATE STATUS.] The corporation shall 9.29 be considered a "public corporation" for purposes of section 9.30 465.035. 9.31 Subd. 2. [LEASE OF REAL PROPERTY.] Notwithstanding any 9.32 other laws to the contrary, as of the effective date, the county 9.33 shall have the authority to enter into a lease, mutually 9.34 agreeable to both parties, with the corporation for 9.35 substantially all of the real property acquired by or turned 9.36 over to the county for the establishment, operation, or 10.1 maintenance of HCMC prior to and as of the effective date and 10.2 necessary for the operation of the corporation. Subject to 10.3 restrictions specified in the written lease and other 10.4 transaction documents by and between the county and the 10.5 corporation, the county shall lease the real property 10.6 exclusively to the corporation. For the purposes of this 10.7 subdivision, real property shall mean the real property used by 10.8 the county for the operations of HCMC that the county shall 10.9 lease to Hennepin Healthcare System, Inc., as specified in the 10.10 lease documents and this act as of the effective date. 10.11 Subd. 3. [REQUIREMENTS OF LEASE.] In order for the county 10.12 to enter into the lease described in subdivision 2, the lease 10.13 must also address the following: 10.14 (1) continued primary use of the property for health and 10.15 hospital services; 10.16 (2) indigent care; 10.17 (3) capital improvements; 10.18 (4) joint ventures and partnerships; 10.19 (5) assignments and subleases; and 10.20 (6) changes to hospital capacity. 10.21 Subd. 4. [TRANSFER OF ASSETS.] The county shall transfer 10.22 to the corporation assets as designated by the county in 10.23 transactional documents accompanying the lease for use in the 10.24 operations of HCMC. For purposes of this subdivision, assets 10.25 means the equipment and other personal property used by the 10.26 county for the operations of HCMC that the county shall transfer 10.27 to Hennepin Healthcare System, Inc., as specified in the 10.28 transaction documents and this act as of the effective date. 10.29 Subd. 5. [NO ADVERTISING OR BIDS.] The county may transfer 10.30 and lease the assets and real property to the corporation as 10.31 specified in subdivisions 2 and 3 without first advertising for 10.32 or soliciting any bids. 10.33 Sec. 14. [383B.914] [STATUS OF PRESENT EMPLOYEES; 10.34 BARGAINING UNITS; RETIREMENT COVERAGE.] 10.35 Subdivision 1. [HEALTH SYSTEM HUMAN RESOURCES 10.36 SYSTEM.] Persons employed at the corporation created shall be 11.1 subject to a human resources system that is designed to offer 11.2 appropriate benefits to workers employed in a health care 11.3 setting. This human resources system shall replace the general 11.4 county human resources system prescribed in sections 383B.26 to 11.5 383B.42, and any rules related to it. The corporation shall 11.6 have the authority to establish all personnel policies and 11.7 practices, negotiate applicable labor agreements, and set all 11.8 levels of compensation and benefits which are considered 11.9 appropriate by the board except as limited in this section. The 11.10 human resources system is subject to the following human 11.11 resources requirements: 11.12 (1) determine compensation according to the pay equity 11.13 requirements under sections 471.991 to 471.999; 11.14 (2) provide preferences for veterans according to the 11.15 Veterans Preference Act under sections 197.455, 197.46, and 11.16 375.63; and 11.17 (3) provide an appeals process for an individual who is 11.18 discharged, demoted, or suspended. 11.19 This section shall not be construed to preempt or supplant 11.20 human resources rules, policies, manuals, or labor agreements 11.21 that are established for the corporation prior to the effective 11.22 date of this section. 11.23 Subd. 2. [EMPLOYEE TRANSFER.] All persons employed by the 11.24 county whose employment is accounted for in the county 11.25 enterprise fund for HCMC, on the effective date, shall be 11.26 transferred to the corporation as specified in the lease and 11.27 other transactional documents referenced in section 14. The 11.28 transfer of employees to the corporation under this subdivision 11.29 does not constitute severance or termination of employment or a 11.30 layoff entitling transferred employees to severance pay, 11.31 termination benefits, a retirement plan refund, or any other 11.32 right that may be applicable in the case of severance, 11.33 termination, or layoff. 11.34 Subd. 3. [CURRENT POSITIONS.] Each person employed by the 11.35 county who is transferred to the corporation on the effective 11.36 date shall retain employment and accrued benefits, including 12.1 participation in deferred compensation programs, and will be 12.2 recorded by most recent date of employment with Hennepin County 12.3 upon transfer to the corporation created in section 383B.901. 12.4 Subd. 4. [BARGAINING UNITS.] The corporation shall 12.5 recognize existing bargaining units organized by employees of 12.6 HCMC and the exclusive representatives of those bargaining units 12.7 as of the effective date. The corporation shall adopt all 12.8 current labor agreements as of the effective date for the term 12.9 of those agreements, except for countywide references, 12.10 countywide provisions, and countywide human resources rules. 12.11 Subd. 5. [GENERAL EMPLOYEE RETIREMENT BENEFITS.] (a) 12.12 Except as provided in paragraph (b), employees of the 12.13 corporation, other than paramedics, emergency medical 12.14 technicians, and protection officers, are "public employees" 12.15 under chapter 353 and are members of the general employees 12.16 retirement plan of the Public Employees Retirement Association, 12.17 including employees transferred to the corporation under 12.18 subdivision 1 and employees hired by the corporation after the 12.19 effective date. 12.20 (b) Notwithstanding sections 356.24 and 356.25, the 12.21 corporation has the authority to create alternative retirement 12.22 plans that are not defined benefit pension plans for the 12.23 following classes of employees: supervisors, managers, 12.24 physicians, and independent health practitioners who bill 12.25 independently for their time, provided the value of the 12.26 aggregate benefits are substantially comparable to the general 12.27 employee retirement plan of the Public Employees Retirement 12.28 Association. These classes of employees are eligible to 12.29 participate in the general retirement plan of the Public 12.30 Employees Retirement Association until and unless the 12.31 corporation creates alternative retirement plans. Only those 12.32 employees who are within the designated class and who are hired 12.33 after the date of creation of the alternative plan may be 12.34 enrolled in the alternative retirement plan in lieu of 12.35 participation in the general employees retirement plan of the 12.36 Public Employees Retirement Association. Any alternative 13.1 retirement benefit plan established by the corporation must 13.2 comply with the financial reporting requirements for public 13.3 pension plans under section 356.20 and the investment 13.4 performance reporting requirements for public pension plans 13.5 under section 356.219. 13.6 Subd. 6. [EMPLOYEES ELIGIBLE TO CONTINUE PARTICIPATION IN 13.7 PUBLIC EMPLOYEE RETIREMENT ASSOCIATION CORRECTIONAL, POLICE AND 13.8 FIRE BENEFIT PLANS.] Notwithstanding subdivisions 5 and 6, both 13.9 existing and future employees of the corporation in the 13.10 positions of paramedic and emergency medical technician, as 13.11 provided in section 353.64, subdivision 10, are members of the 13.12 public employees police and fire retirement plan under sections 13.13 353.63 to 353.68 and in the position of protection officer, as 13.14 provided in section 353E.02, subdivision 2a, are members of the 13.15 local government correctional retirement plan under chapter 353E. 13.16 Subd. 7. [PARTICIPATION IN STATE DEFERRED COMPENSATION 13.17 PLAN.] (a) Existing employees of the corporation, at the 13.18 election of the corporation, if otherwise qualified, are 13.19 eligible to participate in the Hennepin County supplemental 13.20 retirement plan under sections 383B.46 and 383B.52. 13.21 (b) Existing and future employees of the corporation, at 13.22 the election of the corporation, are eligible to participate in 13.23 the Minnesota state deferred compensation plan under section 13.24 352.96, the postretirement health care savings plan under 13.25 section 352.98, and all other deferred compensation arrangements 13.26 for which all persons employed by the county whose employment is 13.27 accounted for in the county enterprise fund for HCMC were 13.28 eligible. 13.29 Subd. 8. [SUBSIDIARIES.] Any subsidiary created by the 13.30 corporation shall be subject to the same human resources 13.31 requirements as those that apply to the corporation under 13.32 subdivision 1. 13.33 Sec. 15. [383B.915] [BONDING AUTHORITY OF CORPORATION.] 13.34 Subdivision 1. [MUNICIPALITY.] The corporation shall be 13.35 considered a "municipality" pursuant to section 475.51, 13.36 subdivision 2, for purposes of bond issuance and shall have all 14.1 the authority conferred on municipalities by chapter 475, unless 14.2 that authority is modified in this section. 14.3 Subd. 2. [SALE OF BONDS.] Subject to the reserved powers 14.4 and limitations specified in section 383B.908 and 14.5 notwithstanding any of the corporation's enumerated powers, the 14.6 corporation may issue and sell revenue bonds or other revenue 14.7 obligations to finance capital improvements or for the 14.8 acquisition and betterment of facilities or other property to be 14.9 utilized for the delivery of health care and related research, 14.10 the establishment of reserves for bond payment, or for other 14.11 proper corporate purposes. 14.12 Subd. 3. [SECURITY FOR BONDS.] Subject to the reserved 14.13 powers and limitations specified in section 383B.908 and 14.14 notwithstanding any of the corporation's enumerated powers, the 14.15 bonds may be secured by a mortgage of or security interest in 14.16 any property owned by the corporation or any interest of the 14.17 corporation in any property and by a pledge of revenues to be 14.18 derived from operation of the corporation's facilities as a 14.19 first and prior lien thereon or as a lien subordinate to the 14.20 costs of operation and maintenance of the facilities. The bonds 14.21 must be in an amount, and shall mature, as provided by 14.22 resolution of the board and may be issued in one or more series 14.23 and shall bear a date or dates, bear interest at a rate or 14.24 rates, be in a denomination or denominations, be in the form 14.25 either coupon or registered, carry the conversion or 14.26 registration privileges, have rank or priority, be executed in 14.27 the manner, be payable in medium of payment at the place or 14.28 places, and be subject to the terms of redemption, with or 14.29 without premium, as the resolution may provide. The bonds may 14.30 be sold at public or private sale at a price or prices 14.31 determined by the resolution. Notwithstanding any law to the 14.32 contrary, the bonds must be fully negotiable. The corporation 14.33 may enter into the covenants the board, by resolution, shall 14.34 deem necessary and proper to secure payment of the bonds. The 14.35 revenue bonds must state on their face that they are not payable 14.36 from, nor may be a charge upon, any funds other than the 15.1 revenues and property pledged or mortgaged for their payment, 15.2 nor shall the corporation be subject to any liability on them or 15.3 have the power to obligate itself to pay or pay the revenue 15.4 bonds from funds other than the revenues and property pledged 15.5 and mortgaged. No holder or holders of the bonds shall ever 15.6 have the right to compel any exercise of any taxing power of the 15.7 county or any other public body to pay the principal of or 15.8 interest on any of them, nor to enforce payment of them against 15.9 any property other than that expressly pledged or mortgaged for 15.10 their payment. 15.11 Sec. 16. [383B.916] [FINANCING THROUGH COUNTY.] 15.12 In addition to the authority granted in section 16, the 15.13 county may finance any improvements, equipment, or other 15.14 property to be operated by the corporation and may issue bonds 15.15 for such purposes pursuant to and subject to the procedures and 15.16 limitations set forth in section 373.40, 383B.117, 447.45, or 15.17 other law, as appropriate, whether or not the capital 15.18 improvement or equipment to be financed is to be owned by the 15.19 county or the corporation. 15.20 Sec. 17. [383B.917] [OPEN MEETING LAW; GOVERNMENT DATA 15.21 PRACTICES ACT.] 15.22 Subdivision 1. [CORPORATION NOT SUBJECT TO OPEN MEETING 15.23 LAW AND DATA PRACTICES ACT.] The corporation and any 15.24 organization, association, partnership, or corporation created, 15.25 controlled, or owned by the corporation, shall not be subject to 15.26 the Open Meeting Law, chapter 13D, or the Minnesota Government 15.27 Data Practices Act, chapter 13. 15.28 Subd. 2. [CORPORATION TO MAKE INFORMATION PUBLICLY 15.29 AVAILABLE.] The corporation shall make available for public 15.30 inspection the following: 15.31 (1) the corporation's annual audited financial statements, 15.32 prepared in accordance with generally accepted accounting 15.33 principles, and which shall include all of the information a 15.34 charitable organization is required to disclose under section 15.35 309.53, subdivision 3; 15.36 (2) the corporation's current federal tax or informational 16.1 return on file with the Internal Revenue Service, if applicable; 16.2 (3) the corporation's bylaws; 16.3 (4) the corporation's health services plan; and 16.4 (5) any material provided to the county board that the 16.5 county board would be subject to release under the Minnesota 16.6 Data Practices Act and other applicable law. 16.7 Subd. 3. [PUBLIC MEETINGS.] Each year the corporation 16.8 shall hold a meeting which must be open to the public. At this 16.9 meeting, the board of directors and the administrator of the 16.10 corporation shall report on the affairs of the corporation and 16.11 the goals for the future, including a report on the health 16.12 services plan specified in section 383B.918. The corporation 16.13 shall hold additional public meetings during the development and 16.14 implementation phase of the health services plan for the purpose 16.15 of informing the public and receiving public comment. That 16.16 portion of a meeting of the board of directors of the 16.17 corporation at which the annual budget of the corporation is 16.18 approved prior to submission to the county board for approval 16.19 shall be open to the public. Notification of these meetings 16.20 shall be published on the corporation's Web site and in at least 16.21 one local paper at least two weeks prior to the meeting. Any 16.22 meeting at which the county board is discussing the approval of 16.23 the budget, health services plan, the corporation's audited 16.24 financial statement, or any other matter subject to the county 16.25 board's reserved powers as specified in section 383B.908, or in 16.26 the bylaws, is subject to the requirements of the Minnesota Open 16.27 Meeting Law and other applicable laws. 16.28 Sec. 18. [383B.918] [HEALTH SERVICES PLAN.] 16.29 The corporation shall prepare, and submit to the county 16.30 board for review and approval, a health services plan that draws 16.31 from a population health needs assessment and delineates the 16.32 corporation's role in the community, including education and 16.33 research. The health services plan shall contain a description 16.34 of how the corporation shall continue to coordinate with the 16.35 county to provide health-related services to the residents of 16.36 Hennepin County, including the indigent as defined by state and 17.1 federal law and as determined by the Hennepin County Board of 17.2 Commissioners. 17.3 Sec. 19. [383B.919] [TORT LIABILITY.] 17.4 The corporation shall be a "municipality" for purposes of 17.5 tort liability pursuant to chapter 466. 17.6 Sec. 20. [383B.920] [REVENUE RECAPTURE ACT.] 17.7 The corporation shall be considered a "claimant agency" for 17.8 purposes of the Revenue Recapture Act, chapter 270A. 17.9 Sec. 21. [383B.921] [PURCHASING.] 17.10 Subdivision 1. [PUBLIC PROCUREMENT.] Notwithstanding any 17.11 law to the contrary, contracting and purchasing of goods, 17.12 materials, supplies, equipment, and services that are included 17.13 as part of a contract for the purchase of goods, materials, 17.14 supplies, equipment, or services are specifically exempted from 17.15 sections 383B.141 to 383B.151 and 471.345 to 471.371, or other 17.16 applicable laws related to public procurement. 17.17 Subd. 2. [PURCHASING AND SERVICE CONTRACTS.] The 17.18 corporation may purchase directly or utilize the services of a 17.19 nonprofit cooperative hospital service organization, the county, 17.20 the state of Minnesota, the University of Minnesota, or any 17.21 other political subdivision or agency of the state of Minnesota 17.22 in the purchase of all goods, materials, and services that the 17.23 corporation may require. 17.24 Sec. 22. [383B.922] [LEGAL COUNSEL.] 17.25 With respect to the provisions of section 388.051, the 17.26 corporation shall be deemed a part of Hennepin County for 17.27 purposes of the Hennepin County attorney serving as legal 17.28 counsel to the corporation; provided, however, that the 17.29 corporation and the Hennepin County attorney may enter into an 17.30 arrangement with respect to the hiring of outside counsel on 17.31 behalf of the corporation. The corporation shall reimburse the 17.32 county for legal services provided by the Hennepin County 17.33 attorney, including any and all costs, and the reimbursement 17.34 shall be credited to the budget of the Hennepin County attorney. 17.35 Sec. 23. [383B.923] [SELF-INSURANCE.] 17.36 Subdivision 1. [SELF-INSURANCE.] The corporation may 18.1 participate in any self-insurance program established by the 18.2 county in accordance with section 383B.155. 18.3 Subd. 2. [ADDITIONAL BENEFITS TO EMPLOYEES.] The 18.4 corporation may provide for the payment of additional benefits 18.5 to employees from their accumulated vacation, sick leave, or 18.6 overtime credits if the employees of the corporation and any of 18.7 its subsidiaries are entitled to the benefits of the Workers' 18.8 Compensation Law and have at the time of compensable injury 18.9 accumulated credits under a vacation, sick leave, or overtime 18.10 plan or system maintained by the corporation. The additional 18.11 payments to an employee may not exceed the amount of the total 18.12 sick leave, vacation, or overtime credits accumulated by the 18.13 employee and shall not result in the payment of a total weekly 18.14 rate of compensation that exceeds the weekly wage of the 18.15 employee. The additional payments to any employee shall be 18.16 charged against the sick leave, vacation, and overtime credits 18.17 accumulated by the employee. Employees of the corporation and 18.18 any of its subsidiaries entitled to the benefits of the Workers' 18.19 Compensation Law may receive additional benefits pursuant to a 18.20 collective bargaining agreement or other plan, entered into or 18.21 in effect on or after January 1, 2003, providing payments by or 18.22 on behalf of the employer, and these additional benefits may be 18.23 unrelated to any accumulated sick leave, holiday, or overtime 18.24 credits and need not be charged against any accumulation; 18.25 provided that the additional payments must not result in the 18.26 payment of a total weekly rate of compensation that exceeds the 18.27 weekly wage of the employee. The corporation and its 18.28 subsidiaries may adopt rules and regulations consistent with 18.29 chapter 179, to carry out the section relating to payment of 18.30 additional benefits to employees from accumulated sick leave, 18.31 vacation, overtime credits, or other sources. 18.32 Sec. 24. [383B.924] [HOSPITAL AUTHORITIES.] 18.33 The corporation shall not be considered a hospital or 18.34 hospital district subject to section 144.581. 18.35 Sec. 25. [383B.925] [TAX-EXEMPT STATUS.] 18.36 The corporation is an organization exempt from taxation 19.1 pursuant to chapters 290 and 297A. 19.2 Sec. 26. [383B.926] [PREPAID HEALTH PLAN.] 19.3 The corporation is a county-affiliated public teaching 19.4 hospital for purposes of section 256D.03, subdivision 4. 19.5 Sec. 27. [383B.927] [INTERGOVERNMENTAL TRANSFERS.] 19.6 For purposes of medical assistance, Medicaid, Medicare, and 19.7 other public programs, the corporation shall continue to be a 19.8 "unit of state or local government" and a "government owned or 19.9 operated hospital," and shall be eligible to receive 19.10 "intergovernmental transfers" and "certified public expenditures" 19.11 as may be authorized from time to time by the state of Minnesota 19.12 or Hennepin County. 19.13 Sec. 28. [383B.928] [INDIGENT CARE.] 19.14 Subdivision 1. [SERVICES.] The corporation shall provide 19.15 health care and related services for the indigent of the county 19.16 as required by the terms of the lease as specified in section 19.17 383B.914, subdivision 2, consistent with any agreement for 19.18 payment for those services made with the county. 19.19 Subd. 2. [FUNDS.] Notwithstanding any law to the contrary, 19.20 the county may provide funds for the purchase of medical care 19.21 for the indigent of the county from a provider selected by the 19.22 county with or without public bid. 19.23 Sec. 29. [EFFECTIVE DATES.] 19.24 (a) Sections 3 to 8, regarding governance and corporate 19.25 powers; section 14, subdivision 1, regarding the establishment 19.26 of personnel policies; and section 17, regarding the Minnesota 19.27 Open Meeting Law and the Government Data Practices Act are 19.28 effective when the initial board of the corporation is appointed 19.29 by the county board. 19.30 (b) The remaining sections of the bill are effective the 19.31 day after the county board files a certificate of local approval 19.32 in compliance with Minnesota Statutes, section 645.021, 19.33 subdivision 3, after which the corporation shall commence 19.34 operation and management of Hennepin County Medical Center. 19.35 ARTICLE 2 19.36 LABOR RELATIONS; RELATED ISSUES 20.1 Section 1. Minnesota Statutes 2004, section 179A.03, 20.2 subdivision 7, is amended to read: 20.3 Subd. 7. [ESSENTIAL EMPLOYEE.] "Essential employee" means 20.4 firefighters, peace officers subject to licensure under sections 20.5 626.84 to 626.863, 911 system and police and fire department 20.6 public safety dispatchers, guards at correctional facilities, 20.7 confidential employees, supervisory employees, assistant county 20.8 attorneys, assistant city attorneys, principals, and assistant 20.9 principals. However, for state employees, "essential employee" 20.10 means all employees in law enforcement, health care 20.11 professionals, correctional guards, professional engineering, 20.12 and supervisory collective bargaining units, irrespective of 20.13 severance, and no other employees. For University of Minnesota 20.14 employees, "essential employee" means all employees in law 20.15 enforcement, nursing professional and supervisory units, 20.16 irrespective of severance, and no other employees. 20.17 "Firefighters" means salaried employees of a fire department 20.18 whose duties include, directly or indirectly, controlling, 20.19 extinguishing, preventing, detecting, or investigating fires. 20.20 Employees for whom the state court administrator is the 20.21 negotiating employer are not essential employees. For Hennepin 20.22 Healthcare System, Inc. employees, "essential employees" means 20.23 all employees. 20.24 Sec. 2. Minnesota Statutes 2004, section 179A.03, 20.25 subdivision 15, is amended to read: 20.26 Subd. 15. [PUBLIC EMPLOYER OR EMPLOYER.] "Public employer" 20.27 or "employer" means: 20.28 (a) the state of Minnesota for employees of the state not 20.29 otherwise provided for in this subdivision or section 179A.10 20.30 for executive branch employees; 20.31 (b) the Board of Regents of the University of Minnesota for 20.32 its employees; 20.33 (c) the state court administrator for court employees; 20.34 (d) the state Board of Public Defense for its employees; 20.35and20.36 (e) Hennepin Healthcare System, Inc.; and 21.1 (f) notwithstanding any other law to the contrary, the 21.2 governing body of a political subdivision or its agency or 21.3 instrumentality which has final budgetary approval authority for 21.4 its employees. However, the views of elected appointing 21.5 authorities who have standing to initiate interest arbitration, 21.6 and who are responsible for the selection, direction, 21.7 discipline, and discharge of individual employees shall be 21.8 considered by the employer in the course of the discharge of 21.9 rights and duties under sections 179A.01 to 179A.25. 21.10 When two or more units of government subject to sections 21.11 179A.01 to 179A.25 undertake a project or form a new agency 21.12 under law authorizing common or joint action, the employer is 21.13 the governing person or board of the created agency. The 21.14 governing official or body of the cooperating governmental units 21.15 shall be bound by an agreement entered into by the created 21.16 agency according to sections 179A.01 to 179A.25. 21.17 "Public employer" or "employer" does not include a 21.18 "charitable hospital" as defined in section 179.35, subdivision 21.19 2. 21.20 Nothing in this subdivision diminishes the authority 21.21 granted pursuant to law to an appointing authority with respect 21.22 to the selection, direction, discipline, or discharge of an 21.23 individual employee if this action is consistent with general 21.24 procedures and standards relating to selection, direction, 21.25 discipline, or discharge which are the subject of an agreement 21.26 entered into under sections 179A.01 to 179A.25. 21.27 Sec. 3. [179A.40] [HENNEPIN HEALTHCARE SYSTEM, INC.] 21.28 Subdivision 1. [UNITS.] The following are the appropriate 21.29 employee units of the Hennepin Healthcare System, Inc. No 21.30 additional units of Hennepin Healthcare System, Inc., shall be 21.31 eligible to be certified for the purpose of meeting and 21.32 negotiating with an exclusive representative. The units include 21.33 all: 21.34 (1) registered nurses; 21.35 (2) physicians; 21.36 (3) professionals except for registered nurses and 22.1 physicians; 22.2 (4) technical and paraprofessional employees; 22.3 (5) carpenters, electricians, painters, and plumbers; 22.4 (6) health general service employees; 22.5 (7) interpreters; 22.6 (8) emergency medical technicians/emergency medical 22.7 dispatchers (EMT/EMD), and paramedics; 22.8 (9) bioelectronics specialists, bioelectronics technicians, 22.9 and electronics technicians; 22.10 (10) skilled maintenance employees; and 22.11 (11) clerical employees. 22.12 Subd. 2. [NONCONFORMING UNITS.] Preexisting Hennepin 22.13 County Medical Center bargaining units covered by existing labor 22.14 agreements on the day following final enactment of this act that 22.15 do not conform to one of the 11 units described in subdivision 1 22.16 shall continue to be appropriate. If an employee representative 22.17 seeks to represent employees who are residual to an existing 22.18 nonconforming unit, then all of the employees who are residual 22.19 to that unit shall be eligible to vote in an election conducted 22.20 by the commissioner. An election shall be held when an employee 22.21 organization or group of employees files a petition for an 22.22 election and the petition is supported by a showing of interest 22.23 from 30 percent or more of the employees who are residual to an 22.24 existing nonconforming unit. The employees who are residual to 22.25 an existing nonconforming unit shall be included within the 22.26 existing nonconforming unit if a majority of the eligible 22.27 employees who vote cast their ballots in favor of representation 22.28 during an election conducted by the commissioner. Nothing shall 22.29 preclude an exclusive representative and Hennepin Healthcare 22.30 System, Inc., or prior to the formation of the corporation 22.31 Hennepin County, from agreeing to an election conducted by the 22.32 commissioner or other appropriate procedure by which less than 22.33 all of the employees who are residual to an existing 22.34 nonconforming unit may be added to the unit. 22.35 Sec. 4. Minnesota Statutes 2004, section 383B.117, 22.36 subdivision 2, is amended to read: 23.1 Subd. 2. [EQUIPMENT ACQUISITION; CAPITAL NOTES.] The board 23.2 of the corporation may, by resolution and without public 23.3 referendum, issue capital notes within existing debt limits for 23.4 the purpose of purchasing ambulance and other medical equipment, 23.5 road construction or maintenance equipment, public safety 23.6 equipment and other capital equipment having an expected useful 23.7 life at least equal to the term of the notes issued. The notes 23.8 shall be payable in not more than five years and shall be issued 23.9 on terms and in a manner as the board determines. The total 23.10 principal amount of the notes issued for any fiscal year shall 23.11 not exceed one percent of the total annual budget for that year 23.12 and shall be issued solely for the purchases authorized in this 23.13 subdivision. A tax levy shall be made for the payment of the 23.14 principal and interest on such notes as in the case of 23.15 bonds. For purposes of this subdivision, the term "medical 23.16 equipment" includes computer hardware and software and other 23.17 intellectual property for use in medical diagnosis, medical 23.18 procedures, research, record keeping, billing, and other 23.19 hospital applications, together with application development 23.20 services and training related to the use of the computer 23.21 hardware and software and other intellectual property, all 23.22 without regard to their useful life. For purposes of 23.23 determining the amount of capital notes which the county may 23.24 issue in any year, the budget of the county and Hennepin 23.25 Healthcare System, Inc. shall be combined and the notes issuable 23.26 under this subdivision shall be in addition to obligations 23.27 issuable under section 373.01, subdivision 3. 23.28 Sec. 5. Minnesota Statutes 2004, section 383B.217, 23.29 subdivision 7, is amended to read: 23.30 Subd. 7. [PURCHASES AND MARKETINGPURCHASING, CONTRACTING, 23.31 MEETINGS, DATA.] (a) Contracting and purchasing made on behalf 23.32 of theHennepin County Medical Center and its health maintenance23.33organization (HMO), ambulatory health center, or other clinics 23.34 authorized under section 383B.219, of goods, materials, 23.35 supplies, equipment, and services that are incidental to or that 23.36 are included as part of a contract for the purchase of goods, 24.1 materials, supplies, or equipment are specifically exempted from 24.2 sections 383B.141 to 383B.151 and 471.345 or other applicable 24.3 laws related to public procurement. Contracting and purchasing 24.4 of services shall comply with sections 383B.141 to 383B.151 or 24.5 other applicable laws related to public procurement. 24.6 (b) Notwithstanding chapter 13D, the county board on behalf 24.7 of themedical center andHMO may meet in closed session to 24.8 discuss and take action on specific products or services that 24.9 are in direct competition with other providers of goods or 24.10 services in the public or private sector, if disclosure of 24.11 information pertaining to those matters would clearly harm the 24.12 competitive position of themedical center orHMO. 24.13 (c) Themedical center andHMO shall inform the county 24.14 board when there are matters that are appropriate for discussion 24.15 or action under paragraph (b). The county administrator or the 24.16 administrator's designee shall give the board an opinion on the 24.17 propriety of discussion or action under paragraph (b) for each 24.18 of the matters. The county board may, by a majority vote in a 24.19 public meeting, decide to hold a closed meeting under paragraph 24.20 (b). The purpose, time, and place of the meeting must be 24.21 announced at a public meeting. A written roll of members 24.22 present at a closed meeting must be made available to the public 24.23 after the closed meeting. The proceedings of a closed meeting 24.24 must be tape recorded at the expense of the county board and be 24.25 preserved for not less than five years after the meeting. The 24.26 data on the tape are nonpublic data under section 13.02, 24.27 subdivision 9, until two years after the meeting. A contract 24.28 entered into by the county board at a meeting held on behalf of 24.29 themedical center orHMO is subject to section 471.345. All 24.30 bids and any related materials that are considered at the 24.31 meeting must be retained for a period of not less than five 24.32 years. After the expiration of the term of any contract entered 24.33 into pursuant to this subdivision or a period of two years, 24.34 whichever is less, the contract, the bids, and any related 24.35 materials are public data. The contract, the bids, and any 24.36 related materials are subject to review by the state auditor at 25.1 any time. 25.2 (d) Data concerning specific products or services that are 25.3 in direct competition with other providers of goods or services 25.4 in the public or private sector are trade secret information for 25.5 purposes of section 13.37, to the extent disclosure of 25.6 information pertaining to the matters would clearly harm the 25.7 competitive position of themedical center orHMO. The data are 25.8 trade secret information for the term of the contract or a 25.9 two-year period, whichever is less. 25.10 (e) Notwithstanding section 471.345 or other applicable 25.11 law, the county board on behalf of themedical center,HMO, 25.12 ambulatory health center, or other clinics authorized under 25.13 section 383B.219, may contract, except for services, by any 25.14 means that the county board or at its direction themedical25.15center orHMO, ambulatory health center, or other clinics 25.16 authorized under section 383B.219, may determine. When 25.17 contracting for services, the county board must comply with 25.18 sections 383B.141 to 383B.151 and other applicable law, except 25.19 that the board may contract with a private or public cooperative 25.20 purchasing organization if it can be established that the 25.21 purchasing organization's services that are purchased have been 25.22 awarded through a competitive or request for proposal process. 25.23 (f) This subdivision applies to themedical center,HMO, 25.24 ambulatory health centers, or other clinics authorized under 25.25 section 383B.219, as well as any other organization, 25.26 association, partnership, or corporation authorized by Hennepin 25.27 County under section 144.581. 25.28 Sec. 6. [TRANSITION.] 25.29 Subdivision 1. [INITIAL BOARD.] For the first three years, 25.30 the board of Hennepin Healthcare System, Inc., shall be governed 25.31 by a board of directors consisting of 13 directors appointed by 25.32 the county board according to the procedure specified in this 25.33 act. 25.34 Subd. 2. [INITIAL HUMAN RESOURCES SYSTEM.] Input from 25.35 Hennepin County Medical Center employees shall be obtained prior 25.36 to the development of the human resources rules and policies for 26.1 the new corporation and the rules and policies shall be 26.2 finalized and the county board shall, by a single-majority vote 26.3 without amendment, approve the rules and policies and ratify 26.4 labor agreements, prior to the county board's vote to file the 26.5 certificate of local approval. 26.6 Notwithstanding Minnesota Statutes, section 179A.16, 26.7 subdivision 2, for a period of two years after the date of 26.8 creation of the corporation, an arbitrator or panel has no 26.9 jurisdiction or authority to entertain any matter or issue 26.10 established in human resources rules, policies, or benefit 26.11 manuals, that were approved under this section. 26.12 Sec. 7. [REPEALER.] 26.13 Minnesota Statutes 2004, section 383B.217, subdivisions 1, 26.14 2, 3, 4, 5, 6, and 8, are repealed. 26.15 Sec. 8. [EFFECTIVE DATE.] 26.16 Sections 1 to 7 and 9 are effective on the date specified 26.17 in article 1, section 29, paragraph (b). Section 8 is effective 26.18 the day following final enactment. 26.19 ARTICLE 3 26.20 CONFORMING RETIREMENT CHANGES 26.21 Section 1. Minnesota Statutes 2004, section 353.01, 26.22 subdivision 2b, is amended to read: 26.23 Subd. 2b. [EXCLUDED EMPLOYEES.] The following public 26.24 employees are not eligible to participate as members of the 26.25 association with retirement coverage by the public employees 26.26 retirement plan, the local government correctional employees 26.27 retirement plan under chapter 353E, or the public employees 26.28 police and fire retirement plan: 26.29 (1) public officers, other than county sheriffs, who are 26.30 elected to a governing body, or persons who are appointed to 26.31 fill a vacancy in an elective office of a governing body, whose 26.32 term of office commences on or after July 1, 2002, for the 26.33 service to be rendered in that elective position. Elected 26.34 governing body officials who were active members of the 26.35 association's coordinated or basic retirement plans as of June 26.36 30, 2002, continue participation throughout incumbency in office 27.1 until termination of public service occurs as defined in 27.2 subdivision 11a; 27.3 (2) election officers or election judges; 27.4 (3) patient and inmate personnel who perform services for a 27.5 governmental subdivision; 27.6 (4) except as otherwise specified in subdivision 12a, 27.7 employees who are hired for a temporary position as defined 27.8 under subdivision 12a, and employees who resign from a 27.9 nontemporary position and accept a temporary position within 30 27.10 days in the same governmental subdivision; 27.11 (5) employees who are employed by reason of work emergency 27.12 caused by fire, flood, storm, or similar disaster; 27.13 (6) employees who by virtue of their employment in one 27.14 governmental subdivision are required by law to be a member of 27.15 and to contribute to any of the plans or funds administered by 27.16 the Minnesota State Retirement System, the Teachers Retirement 27.17 Association, the Duluth Teachers Retirement Fund Association, 27.18 the Minneapolis Teachers Retirement Fund Association, the St. 27.19 Paul Teachers Retirement Fund Association, the Minneapolis 27.20 Employees Retirement Fund, or any police or firefighters relief 27.21 association governed by section 69.77 that has not consolidated 27.22 with the Public Employees Retirement Association, or any local 27.23 police or firefighters consolidation account who have not 27.24 elected the type of benefit coverage provided by the public 27.25 employees police and fire fund under sections 353A.01 to 27.26 353A.10, or any persons covered by section 353.665, subdivision 27.27 4, 5, or 6, who have not elected public employees police and 27.28 fire plan benefit coverage. This clause must not be construed 27.29 to prevent a person from being a member of and contributing to 27.30 the Public Employees Retirement Association and also belonging 27.31 to and contributing to another public pension plan or fund for 27.32 other service occurring during the same period of time. A 27.33 person who meets the definition of "public employee" in 27.34 subdivision 2 by virtue of other service occurring during the 27.35 same period of time becomes a member of the association unless 27.36 contributions are made to another public retirement fund on the 28.1 salary based on the other service or to the Teachers Retirement 28.2 Association by a teacher as defined in section 354.05, 28.3 subdivision 2; 28.4 (7) persons who are members of a religious order and are 28.5 excluded from coverage under the federal Old Age, Survivors, 28.6 Disability, and Health Insurance Program for the performance of 28.7 service as specified in United States Code, title 42, section 28.8 410(a)(8)(A), as amended through January 1, 1987, if no 28.9 irrevocable election of coverage has been made under section 28.10 3121(r) of the Internal Revenue Code of 1954, as amended; 28.11 (8) employees of a governmental subdivision who have not 28.12 reached the age of 23 and are enrolled on a full-time basis to 28.13 attend or are attending classes on a full-time basis at an 28.14 accredited school, college, or university in an undergraduate, 28.15 graduate, or professional-technical program, or a public or 28.16 charter high school; 28.17 (9) resident physicians, medical interns, and pharmacist 28.18 residents and pharmacist interns who are serving in a degree or 28.19 residency program in public hospitals; 28.20 (10) students who are serving in an internship or residency 28.21 program sponsored by an accredited educational institution; 28.22 (11) persons who hold a part-time adult supplementary 28.23 technical college license who render part-time teaching service 28.24 in a technical college; 28.25 (12) except for employees of Hennepin County or Hennepin 28.26 Healthcare System, Inc., foreign citizens working for a 28.27 governmental subdivision with a work permit of less than three 28.28 years, or an H-1b visa valid for less than three years of 28.29 employment. Upon notice to the association that the work permit 28.30 or visa extends beyond the three-year period, the foreign 28.31 citizens must be reported for membership from the date of the 28.32 extension; 28.33 (13) public hospital employees who elected not to 28.34 participate as members of the association before 1972 and who 28.35 did not elect to participate from July 1, 1988, to October 1, 28.36 1988; 29.1 (14) except as provided in section 353.86, volunteer 29.2 ambulance service personnel, as defined in subdivision 35, but 29.3 persons who serve as volunteer ambulance service personnel may 29.4 still qualify as public employees under subdivision 2 and may be 29.5 members of the Public Employees Retirement Association and 29.6 participants in the public employees retirement fund or the 29.7 public employees police and fire fund, whichever applies, on the 29.8 basis of compensation received from public employment service 29.9 other than service as volunteer ambulance service personnel; 29.10 (15) except as provided in section 353.87, volunteer 29.11 firefighters, as defined in subdivision 36, engaging in 29.12 activities undertaken as part of volunteer firefighter duties; 29.13 provided that a person who is a volunteer firefighter may still 29.14 qualify as a public employee under subdivision 2 and may be a 29.15 member of the Public Employees Retirement Association and a 29.16 participant in the public employees retirement fund or the 29.17 public employees police and fire fund, whichever applies, on the 29.18 basis of compensation received from public employment activities 29.19 other than those as a volunteer firefighter; 29.20 (16) pipefitters and associated trades personnel employed 29.21 by Independent School District No. 625, St. Paul, with coverage 29.22 under a collective bargaining agreement by the pipefitters local 29.23 455 pension plan who were either first employed after May 1, 29.24 1997, or, if first employed before May 2, 1997, elected to be 29.25 excluded under Laws 1997, chapter 241, article 2, section 12; 29.26 (17) electrical workers, plumbers, carpenters, and 29.27 associated trades personnel employed by Independent School 29.28 District No. 625, St. Paul, or the city of St. Paul, who have 29.29 retirement coverage under a collective bargaining agreement by 29.30 the Electrical Workers Local 110 pension plan, the United 29.31 Association Plumbers Local 34 pension plan, or the Carpenters 29.32 Local 87 pension plan who were either first employed after May 29.33 1, 2000, or, if first employed before May 2, 2000, elected to be 29.34 excluded under Laws 2000, chapter 461, article 7, section 5; 29.35 (18) bricklayers, allied craftworkers, cement masons, 29.36 glaziers, glassworkers, painters, allied tradesworkers, and 30.1 plasterers employed by the city of St. Paul or Independent 30.2 School District No. 625, St. Paul, with coverage under a 30.3 collective bargaining agreement by the Bricklayers and Allied 30.4 Craftworkers Local 1 pension plan, the Cement Masons Local 633 30.5 pension plan, the Glaziers and Glassworkers Local L-1324 pension 30.6 plan, the Painters and Allied Trades Local 61 pension plan, or 30.7 the Twin Cities Plasterers Local 265 pension plan who were 30.8 either first employed after May 1, 2001, or if first employed 30.9 before May 2, 2001, elected to be excluded under Laws 2001, 30.10 First Special Session chapter 10, article 10, section 6; 30.11 (19) plumbers employed by the Metropolitan Airports 30.12 Commission, with coverage under a collective bargaining 30.13 agreement by the Plumbers Local 34 pension plan, who either were 30.14 first employed after May 1, 2001, or if first employed before 30.15 May 2, 2001, elected to be excluded under Laws 2001, First 30.16 Special Session chapter 10, article 10, section 6; 30.17 (20) employees who are hired after June 30, 2002, to fill 30.18 seasonal positions under subdivision 12b which are limited in 30.19 duration by the employer to 185 consecutive calendar days or 30.20 less in each year of employment with the governmental 30.21 subdivision; 30.22 (21) persons who are provided supported employment or 30.23 work-study positions by a governmental subdivision and who 30.24 participate in an employment or industries program maintained 30.25 for the benefit of these persons where the governmental 30.26 subdivision limits the position's duration to three years or 30.27 less, including persons participating in a federal or state 30.28 subsidized on-the-job training, work experience, senior citizen, 30.29 youth, or unemployment relief program where the training or work 30.30 experience is not provided as a part of, or for, future 30.31 permanent public employment; 30.32 (22) independent contractors and the employees of 30.33 independent contractors; and 30.34 (23) reemployed annuitants of the association during the 30.35 course of that reemployment. 30.36 Sec. 2. Minnesota Statutes 2004, section 353.01, 31.1 subdivision 2d, is amended to read: 31.2 Subd. 2d. [OPTIONAL MEMBERSHIP.] (a) Membership in the 31.3 association is optional by action of the individual employee for 31.4 the following public employees who meet the conditions set forth 31.5 in subdivision 2a: 31.6 (1) members of the coordinated plan who are also employees 31.7 of labor organizations as defined in section 353.017, 31.8 subdivision 1, for their employment by the labor organization 31.9 only if they elect to have membership under section 353.017, 31.10 subdivision 2; 31.11 (2) persons who are elected or persons who are appointed to 31.12 elected positions other than local governing body elected 31.13 positions who elect to participate by filing a written election 31.14 for membership; 31.15 (3) members of the association who are appointed by the 31.16 governor to be a state department head and who elect not to be 31.17 covered by the general state employees retirement plan of the 31.18 Minnesota State Retirement System under section 352.021; 31.19 (4) city managers as defined in section 353.028, 31.20 subdivision 1, who do not elect to be excluded from membership 31.21 in the association under section 353.028, subdivision 2; and 31.22 (5) employees of the Port Authority of the city of St. Paul 31.23 who were at least age 45 on January 1, 2003, and who elect to 31.24 participate by filing a written election for membership. 31.25 (b) Membership in the association is optional by action of 31.26 the governmental subdivision for the employees of the following 31.27 governmental subdivisions under the conditions specified: 31.28 (1) the Minnesota Association of Townships if the board of 31.29 the association, at its option, certifies to the executive 31.30 director that its employees are to be included for purposes of 31.31 retirement coverage, in which case the status of the association 31.32 as a participating employer is permanent;and31.33 (2) a county historical society if the county in which the 31.34 historical society is located, at its option, certifies to the 31.35 executive director that the employees of the historical society 31.36 are to be county employees for purposes of retirement coverage 32.1 under this chapter. The status as a county employee must be 32.2 accorded to all similarly situated county historical society 32.3 employees and, once established, must continue as long as a 32.4 person is an employee of the county historical society; and 32.5 (3) Hennepin Healthcare System, Inc., a public corporation, 32.6 with respect to employees other than paramedics, emergency 32.7 medical technicians, and protection officers, if the corporate 32.8 board establishes alternative retirement plans for certain 32.9 classes of employees of the corporation and certifies the 32.10 employees to be excluded from future retirement coverage. 32.11 (c) For employees who are covered by paragraph (a), clause 32.12 (1), (2), or (3), or covered by paragraph (b), clause (1) or 32.13 (2), if the necessary membership election is not made, the 32.14 employee is excluded from retirement coverage under this 32.15 chapter. For employees who are covered by paragraph (a), clause 32.16 (4), if the necessary election is not made, the employee must 32.17 become a member and have retirement coverage under this 32.18 chapter. For employees specified in paragraph (b), clause (3), 32.19 membership continues until the exclusion option is exercised for 32.20 the designated class of employee. The option to become a 32.21 member, once exercised under this subdivision, may not be 32.22 withdrawn until termination of public service as defined under 32.23 subdivision 11a. 32.24 Sec. 3. Minnesota Statutes 2004, section 353.01, 32.25 subdivision 6, is amended to read: 32.26 Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 32.27 subdivision" means a county, city, town, school district within 32.28 this state, or a department or unit of state government, or any 32.29 public body whose revenues are derived from taxation, fees, 32.30 assessments or from other sources. 32.31 (b) Governmental subdivision also means the Public 32.32 Employees Retirement Association, the League of Minnesota 32.33 Cities, the Association of Metropolitan Municipalities, public 32.34 hospitals owned or operated by, or an integral part of, a 32.35 governmental subdivision or governmental subdivisions, the 32.36 Association of Minnesota Counties, the Metropolitan Intercounty 33.1 Association, the Minnesota Municipal Utilities Association, the 33.2 Metropolitan Airports Commission, the Minneapolis Employees 33.3 Retirement Fund for employment initially commenced after June 33.4 30, 1979, the Range Association of Municipalities and Schools, 33.5 soil and water conservation districts, economic development 33.6 authorities created or operating under sections 469.090 to 33.7 469.108, the Port Authority of the city of St. Paul, the Spring 33.8 Lake Park Fire Department, incorporated, the Lake Johanna 33.9 Volunteer Fire Department, incorporated, the Red Wing 33.10 Environmental Learning Center,andthe Dakota County 33.11 Agricultural Society, and Hennepin Healthcare System, Inc. 33.12 (c) Governmental subdivision does not mean any municipal 33.13 housing and redevelopment authority organized under the 33.14 provisions of sections 469.001 to 469.047; or any port authority 33.15 organized under sections 469.048 to 469.089 other than the Port 33.16 Authority of the city of St. Paul; or any hospital district 33.17 organized or reorganized prior to July 1, 1975, under sections 33.18 447.31 to 447.37 or the successor of the district, nor the 33.19 Minneapolis Community Development Agency. 33.20 Sec. 4. Minnesota Statutes 2004, section 353.64, 33.21 subdivision 10, is amended to read: 33.22 Subd. 10. [PENSION COVERAGE FOR HENNEPINCOUNTYHEALTHCARE 33.23 SYSTEM, INC.; PARAMEDICS AND EMERGENCY MEDICAL TECHNICIANS.] An 33.24 employee of HennepinCountyHealthcare System, Inc. who is: 33.25 (1) certified as a paramedic or emergency medical 33.26 technician by the state under section 144E.28, subdivision 4; 33.27 (2) employed full time as a paramedic or emergency medical 33.28 technician by Hennepin County on or after the effective date 33.29 specified in Laws 1994, chapter 499, section 2; and 33.30 (3) not eligible after the effective date under Laws 1994, 33.31 chapter 499, section 2, for coverage under the agreement signed 33.32 between the state and the secretary of the federal Department of 33.33 Health and Human Services making the provisions of the federal 33.34 Old Age, Survivors, and Disability Insurance Act applicable to 33.35 paramedics and emergency medical technicians because the 33.36 person's position is excluded after that date from application 34.1 under United States Code, title 42, sections 418(d)(5)(A) and 34.2 418(d)(8)(D), and section 355.07; 34.3 is a member of the public employees police and fire fund under 34.4 sections 353.63 to 353.68. 34.5 HennepinCountyHealthcare System, Inc. shall deduct the 34.6 employee contribution from the salary of each full-timeHennepin34.7Countyparamedic and emergency medical technician it employs as 34.8 required by section 353.65, subdivision 2, shall make the 34.9 employer contribution for each full-timeHennepin County34.10 paramedic and emergency medical technician it employs as 34.11 required by section 353.65, subdivision 3, and shall meet the 34.12 employer recording and reporting requirements in section 353.65, 34.13 subdivision 4. 34.14 Sec. 5. Minnesota Statutes 2004, section 353E.02, 34.15 subdivision 2a, is amended to read: 34.16 Subd. 2a. [MEDICAL CENTER PROTECTION OFFICER.] (a) A 34.17 medical center protection officer, for purposes of subdivision 34.18 1, is a person whom the employer certifies: 34.19 (1) is employed bytheHennepinCounty Medical Center34.20 Healthcare System, Inc. as a protection officer; 34.21 (2) is directly responsible for the direct security of the 34.22 medical center; 34.23 (3) is expected to respond to any incidents within the 34.24 medical center as part of the person's regular employment duties 34.25 and is trained to do so; and 34.26 (4) is a "public employee" as defined in section 353.01, 34.27 but is not a member of the public employees police and fire plan. 34.28 (b) The certification required under paragraph (a) must be 34.29 made in writing on a form prescribed by the executive director 34.30 of the Public Employees Retirement Association. 34.31 Sec. 6. Minnesota Statutes 2004, section 383B.46, is 34.32 amended to read: 34.33 383B.46 [SUPPLEMENTAL RETIREMENT ACCOUNT.] 34.34 Subdivision 1. [ELIGIBILITY FOR COVERAGE.] Any person who 34.35 was employed by the county of Hennepin or its agencies, boards, 34.36 commissions, authorities and committeesprior tobefore April 35.1 14, 1982, as an employee or an officer in the classified service 35.2 as defined in sections 383B.26 to 383B.42, or as an employee in 35.3 the unclassified service, and who has served for five years as a 35.4 county employee or an officer in the classified service, or as a 35.5 county employee in the unclassified service, which need not 35.6 necessarily be continuous, and whichshallmust include time 35.7 served as a county employeeprior tobefore June 8, 1965, if the 35.8 person is an employee in the classified service, shall beof the 35.9 county or if the person is an employee of Hennepin Healthcare 35.10 System, Inc., is entitled to elect to obtain coverage by the 35.11 Hennepin County supplemental retirement program. The election 35.12 to obtain coverage may be exercised only once andshallmust be 35.13 exercised within 30 days of the date on which the person first 35.14 becomes entitled to elect to obtain coverage. No person hired, 35.15 rehired, or reinstated by the county as an employee in the 35.16 classified or unclassified service on or after April 14, 35.17 1982,shall beis eligible for coverage by the Hennepin County 35.18 supplemental retirement program. 35.19 Subd. 2. [ESTABLISHMENT OF ACCOUNT; CONTRIBUTIONS.] The 35.20 county of Hennepin or Hennepin Healthcare System, Inc., 35.21 whichever applies, shall deduct from the salary of every person 35.22 who is eligible for coverage and who elected to retain or obtain 35.23 coverage by the Hennepin County supplemental retirement program 35.24 a sum equal to one percent of the total salary of the 35.25 person.Any classified or unclassified employee who is employed35.26in subsidized on-the-job training, work experience or public35.27service employment as an enrollee under the federal35.28Comprehensive Employment and Training Act shall not be included35.29in the supplemental retirement account from and after March 30,35.301978 unless the employee has as of the later of March 30, 197835.31or the date of employment sufficient service credit in the35.32public employees retirement fund or the Minneapolis municipal35.33employees retirement fund, whichever is applicable, to meet the35.34minimum vesting requirements for a deferred retirement annuity,35.35or the county agrees in writing to make the required employer35.36contributions on account of the individual from revenue sources36.1other than funds provided under the federal Comprehensive36.2Employment and Training Act, or the employee agrees in writing36.3to make the required employer contribution in addition to the36.4employee contribution.The deduction shall be made in the same 36.5 manner as other retirement deductions are made from the salary 36.6 of the person. An amount equal to the amounts deducted during 36.7 each payroll periodshallmust be contributed by the county of 36.8 Hennepin or Hennepin Healthcare System, Inc., whichever 36.9 applies. The total amount deducted and contributedshallmust 36.10 be deposited to the credit of the supplemental retirement 36.11 account in the treasury of the county of Hennepin. The Hennepin 36.12 County supplemental retirement account is hereby established as 36.13 an account separate and distinct from other funds, accounts, or 36.14 assets of the county of Hennepin. 36.15 Sec. 7. [EFFECTIVE DATE.] 36.16 Sections 1 to 6 are effective on the date specified in 36.17 article 1, section 29, paragraph (b).