Minnesota Legislature
HF 1107
as introduced - 92nd Legislature (2021 - 2022) Posted on 02/18/2021 04:56pm
Current Version - as introduced
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A bill for an act
relating to retirement; Public Employees Retirement Association statewide volunteer
firefighter plan; revising the authorized allocation of fire state aid; amending
Minnesota Statutes 2020, section 477B.04, subdivision 3; proposing coding for
new law in Minnesota Statutes, chapter 477B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 477B.04, subdivision 3, is amended to read:
Subd. 3.
Deposit of state aid.
(a) new text begin This paragraph applies new text end if the municipality or the
independent nonprofit firefighting corporation is covered by the statewide volunteer
firefighter plan deleted text begin under chapter 353Gdeleted text end new text begin . If this paragraph applies and the executive director of
the Public Employees Retirement Association has not approved an aid allocation plan under
section 477B.041new text end , the executive director deleted text begin of the Public Employees Retirement Associationdeleted text end
must credit the fire state aid against future municipal contribution requirements under section
353G.08 and must notify the municipality or the independent nonprofit firefighting
corporation of the fire state aid so credited at least annually.new text begin If this paragraph applies and
the executive director has approved an aid allocation plan under section 477B.041, the
executive director must allocate fire state aid in the manner described under section 477B.041.
new text end
(b) If (1) the municipality or the independent nonprofit firefighting corporation is not
covered by the statewide volunteer firefighter plan and is affiliated with a duly incorporated
firefighters relief association, (2) the relief association has filed a financial report with the
municipality pursuant to section 424A.014, subdivision 1 or 2, whichever applies, and (3)
there is not an aid allocation agreement under section 477B.042 in effect, then the treasurer
of the municipality must, within 30 days after receipt, transmit the fire state aid to the
treasurer of the relief association. If clauses (1) and (2) are satisfied and there is an aid
allocation agreement under section 477B.042 in effect, then fire state aid must be transmitted
as described in that section. If the relief association has not filed a financial report with the
municipality, then, regardless of whether an aid allocation agreement is in effect, the treasurer
of the municipality must delay transmission of the fire state aid to the relief association until
the complete financial report is filed.
(c) The treasurer of the municipality must deposit the fire state aid money in the municipal
treasury if (1) the municipality or independent nonprofit firefighting corporation is not
covered by the statewide volunteer firefighter plan, (2) there is no relief association organized,
(3) the association has dissolved, or (4) the association has been removed as trustees of state
aid. The money may be disbursed from the municipal treasury only for the purposes and in
the manner set forth in section 424A.08 or for the payment of the employer contribution
requirement with respect to firefighters covered by the public employees police and fire
retirement plan under section 353.65, subdivision 3.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2022 and thereafter.
new text end
Sec. 2.
new text begin
[477B.041] ALLOCATION OF FIRE STATE AID FOR THE STATEWIDE
VOLUNTEER FIREFIGHTER PLAN.
new text end
new text begin Subdivision 1. new text end
new text begin Definitions. new text end
new text begin
For the purposes of this section, unless the language or
context clearly indicates that a different meaning is intended, the following terms have the
meanings given to them:
new text end
new text begin
(1) "Active volunteer firefighter" means a member of the statewide volunteer firefighter
plan as defined in section 353G.01, subdivision 8.
new text end
new text begin
(2) "Chief petitioning firefighter" means an active volunteer firefighter who, on behalf
of petitioning firefighters, submits a petition to stop an aid allocation plan under subdivision
6 to the executive director.
new text end
new text begin
(3) "Combination department" means a municipality or independent nonprofit firefighting
corporation which, during the previous calendar year and on January 1, 2021:
new text end
new text begin
(i) employed one or more firefighters covered by the statewide volunteer firefighter
plan; and
new text end
new text begin
(ii) contributed on behalf of one or more firefighters to the public employees police and
fire retirement plan under chapter 353.
new text end
new text begin
(4) "Covered period" means the period covered by the aid allocation plan beginning
with the calendar year immediately following the calendar year in which the plan is approved
and continuing for not more than three years.
new text end
new text begin
(5) "Executive director" means the executive director of the Public Employees Retirement
Association.
new text end
new text begin
(6) "Reimbursement amount" means the amount calculated under subdivision 4, which
reimburses a combination department for employer contributions made to the public
employees police and fire retirement plan on behalf of covered firefighters.
new text end
new text begin
(7) "Total state aid" means the combined total of fire state aid and police and firefighter
supplemental state aid payable to the Public Employees Retirement Association on behalf
of a combination department on October 1 under sections 477B.04, subdivision 1, and
423A.022, subdivision 4, respectively.
new text end
new text begin Subd. 2. new text end
new text begin Submission of an aid allocation plan. new text end
new text begin
Beginning on March 1 of each year, a
combination department may submit to the executive director an aid allocation plan that
conforms with the requirements in this paragraph. The aid allocation plan must:
new text end
new text begin
(1) be approved by the governing body of the combination department;
new text end
new text begin
(2) be in writing and specify:
new text end
new text begin
(i) the percentage of the fire state aid, dollar amount, or formula for determining the
amount of fire state aid that will be transmitted to the combination department as the
reimbursement amount; and
new text end
new text begin
(ii) the covered period;
new text end
new text begin
(3) be signed by the municipal clerk or secretary; and
new text end
new text begin
(4) include the date that notice was provided to firefighters under subdivision 7.
new text end
new text begin Subd. 3. new text end
new text begin Approval of aid allocation plan. new text end
new text begin
The executive director shall approve an aid
allocation plan submitted by a combination department if:
new text end
new text begin
(1) the aid allocation plan is submitted on or after March 1;
new text end
new text begin
(2) the aid allocation plan meets the requirements in subdivision 2; and
new text end
new text begin
(3) within 45 days after receipt of the aid allocation plan, the executive director has not
received a petition to stop aid allocation described in subdivision 6.
new text end
new text begin Subd. 4. new text end
new text begin Deposit; transfer of fire state aid under aid allocation plan. new text end
new text begin
(a) Fire state
aid covered by an approved aid allocation plan must be deposited in accordance with this
subdivision. Within 30 days after receipt of the fire state aid, the executive director must
transmit the reimbursement amount to the combination department. The reimbursement
amount must not exceed the smallest of the following amounts:
new text end
new text begin
(1) the percentage, dollar amount, or formula specified by the combination department
under subdivision 2;
new text end
new text begin
(2) the combination department's total employer contribution to the public employees
police and fire retirement plan on behalf of firefighters during the preceding calendar year;
new text end
new text begin
(3) the amount of fire state aid payable to the Public Employees Retirement Association
on behalf of the combination department on October 1 of the current calendar year under
section 477B.04, subdivision 1;
new text end
new text begin
(4) the amount determined by subtracting from the combination department's total state
aid the combination department's annual funding requirement under section 353G.08 as
calculated on or before August 1 for the current year; or
new text end
new text begin
(5) the amount determined by subtracting from the combination department's total state
aid the amount required to increase the funding ratio of the combination department's account
to not less than 100 percent as of the date of the valuation used to determine the funding
requirement under clause (4).
new text end
new text begin
(b) After transmitting the reimbursement amount, the executive director must immediately
credit any remaining fire state aid against the combination department's annual funding
requirement under section 353G.08. The executive director must notify the combination
department of the disposition of fire state aid within 30 days of transmission of the
reimbursement amount.
new text end
new text begin
(c) Fire state aids payable before or after the covered period must be credited as if no
aid allocation plan has been approved under section 477B.04, subdivision 3, paragraph (a).
new text end
new text begin Subd. 5. new text end
new text begin Termination; modification of aid allocation plan. new text end
new text begin
(a) The governing body
of a combination department may terminate an aid allocation plan at any time by submitting
a notice of termination to the executive director.
new text end
new text begin
(b) A combination department may modify an aid allocation plan at any time during the
covered period by submitting a modified aid allocation plan to the executive director. The
modified aid allocation plan must meet the requirements of an aid allocation plan under
subdivision 3.
new text end
new text begin
(c) The termination or modification of an aid allocation plan applies only to subsequent
fire state aid payments and does not affect any reimbursement amount already transmitted
to the combination department.
new text end
new text begin
(d) The combination department must provide notice of any modification or termination
as required under subdivision 7.
new text end
new text begin Subd. 6. new text end
new text begin Petition to stop aid allocation. new text end
new text begin
(a) Within 45 days after a combination
department submits an aid allocation plan or modified aid allocation plan to the executive
director, an active volunteer firefighter employed by the combination department may submit
to the executive director a petition to stop the aid allocation plan. The petition must be in a
form prescribed by the executive director. The executive director must reject an aid allocation
plan or modified aid allocation plan as a result of the petition if:
new text end
new text begin
(1) the executive director receives the petition to stop the aid allocation plan within 45
days after receiving an aid allocation plan or modified aid allocation plan for the same
combination department; and
new text end
new text begin
(2) the petition to stop aid allocation is in writing and includes the names and signatures
of a majority of the active volunteer firefighters employed by the combination department
and the name and contact information for the chief petitioning firefighter.
new text end
new text begin
(b) When determining whether a petition includes the names and signatures of a majority
of the active volunteer firefighters affiliated with the combination department, the executive
director must verify that the names provided match the active volunteer firefighter records
maintained by the Public Employees Retirement Association.
new text end
new text begin
(c) Upon receipt of a petition to stop aid allocation, the executive director must
immediately notify the combination department that a petition was received. Within 15 days
after receipt of the petition to stop aid allocation, the executive director must report to the
combination department and the chief petitioning firefighter whether the aid allocation plan
was rejected as a result of the petition.
new text end
new text begin
(d) If an aid allocation plan is rejected as a result of a petition, the combination department
may revise the aid allocation plan and submit the revised plan, subject to the requirements
in this section, including the notice under subdivision 7 and the firefighters' right to petition
to stop aid allocation under the revised plan under subdivision 6.
new text end
new text begin Subd. 7. new text end
new text begin Notice to volunteer firefighters. new text end
new text begin
Within 30 days before submitting to the
executive director an aid allocation plan or modification or termination of an aid allocation
plan, the combination department must notify all active volunteer firefighters employed by
the combination department in writing. The notice must include a copy of the aid allocation
plan, modified aid allocation plan, or notice of termination approved by the governing body
of the combination department.
new text end
new text begin Subd. 8. new text end
new text begin Forms authorized. new text end
new text begin
The executive director must prescribe a form of petition
that satisfies the requirements of subdivision 6 and may prescribe other forms as required
for the administration of this section.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for aids payable in 2022 and thereafter.
new text end