HF 1554

as introduced - 87th Legislature (2011 - 2012) Posted on 04/26/2011 09:33am

A bill for an act
relating to retirement; volunteer fire relief association working group
recommendations; clarifying countersigners on certain financial reports;
clarifying recipients of certain financial requirement determination certifications;
authorizing an expansion of relief association board salaries; authorizing filing
and application fees as authorized administrative expenses; modifying various
former firefighter return to service and relief association coverage provisions;
authorizing defined contribution relief association survivor benefit installment
payments; clarifying the disposition of member dues that are relief association
member contributions; making various technical amendments in volunteer
firefighter relief association provisions; amending Minnesota Statutes 2010,
sections 69.011, subdivision 1; 69.051, subdivisions 1, 1a, 3; 69.772, subdivision
4; 69.773, subdivision 5; 69.80; 424A.001, subdivision 4; 424A.01, subdivision
6; 424A.016, subdivision 5; 424A.02, subdivision 9; 424A.04, subdivision 3;
424A.06, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

ARTICLE 1

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
FINANCIAL REPORT COUNTERSIGNERS

Section 1.

Minnesota Statutes 2010, section 69.011, subdivision 1, is amended to read:

Subdivision 1.

Definitions.

Unless the language or context clearly indicates that
a different meaning is intended, the following words and terms, for the purposes of this
chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:

(a) "Commissioner" means the commissioner of revenue.

(b) "Municipality" means:

(1) a home rule charter or statutory city;

(2) an organized town;

(3) a park district subject to chapter 398;

(4) the University of Minnesota;

(5) for purposes of the fire state aid program only, an American Indian tribal
government entity located within a federally recognized American Indian reservation;

(6) for purposes of the police state aid program only, an American Indian tribal
government with a tribal police department which exercises state arrest powers under
section 626.90, 626.91, 626.92, or 626.93;

(7) for purposes of the police state aid program only, the Metropolitan Airports
Commission; and

(8) for purposes of the police state aid program only, the Department of Natural
Resources and the Department of Public Safety with respect to peace officers covered
under chapter 352B.

(c) "Minnesota Firetown Premium Report" means a form prescribed by the
commissioner containing space for reporting by insurers of fire, lightning, sprinkler
leakage and extended coverage premiums received upon risks located or to be performed
in this state less return premiums and dividends.

(d) "Firetown" means the area serviced by any municipality having a qualified fire
department or a qualified incorporated fire department having a subsidiary volunteer
firefighters' relief association.

(e) "Market value" means latest available market value of all property in a taxing
jurisdiction, whether the property is subject to taxation, or exempt from ad valorem
taxation obtained from information which appears on abstracts filed with the commissioner
of revenue or equalized by the State Board of Equalization.

(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
commissioner for reporting by each fire and casualty insurer of all premiums received
upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
during the preceding calendar year, with reference to insurance written for insuring against
the perils contained in auto insurance coverages as reported in the Minnesota business
schedule of the annual financial statement which each insurer is required to file with
the commissioner in accordance with the governing laws or rules less return premiums
and dividends.

(g) "Peace officer" means any person:

(1) whose primary source of income derived from wages is from direct employment
by a municipality or county as a law enforcement officer on a full-time basis of not less
than 30 hours per week;

(2) who has been employed for a minimum of six months prior to December 31
preceding the date of the current year's certification under subdivision 2, clause (b);

(3) who is sworn to enforce the general criminal laws of the state and local
ordinances;

(4) who is licensed by the Peace Officers Standards and Training Board and is
authorized to arrest with a warrant; and

(5) who is a member of the Minneapolis Police Relief Association, the State Patrol
retirement plan, or the public employees police and fire fund.

(h) "Full-time equivalent number of peace officers providing contract service" means
the integral or fractional number of peace officers which would be necessary to provide
the contract service if all peace officers providing service were employed on a full-time
basis as defined by the employing unit and the municipality receiving the contract service.

(i) "Retirement benefits other than a service pension" means any disbursement
authorized under section 424A.05, subdivision 3, clauses (3) and (4).

(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means new text begin :
new text end

new text begin (1) for the police state aid program and police relief association financial reports:
new text end

new text begin (i) new text end the person who was elected or appointed to the specified position or, in the
absence of the person, another person who is designated by the applicable governing body deleted text begin . deleted text end new text begin ;
new text end

new text begin (ii) new text end in a park district, the deleted text begin clerk is the deleted text end secretary of the board of park district
commissioners deleted text begin . deleted text end new text begin ;
new text end

new text begin (iii) new text end in the case of the University of Minnesota, the deleted text begin clerk is that deleted text end official designated
by the Board of Regents deleted text begin . deleted text end new text begin ;
new text end

new text begin (iv) new text end for the Metropolitan Airports Commission, the deleted text begin clerk is the deleted text end person designated
by the commission deleted text begin . deleted text end new text begin ;
new text end

new text begin (v) new text end for the Department of Natural Resources or the Department of Public Safety,
the deleted text begin clerk is the deleted text end respective commissioner deleted text begin . deleted text end new text begin ;
new text end

new text begin (vi) new text end for a tribal police department which exercises state arrest powers under section
626.90, 626.91, 626.92, or 626.93, the deleted text begin clerk is the deleted text end person designated by the applicable
American Indian tribal government deleted text begin . deleted text end new text begin ; and
new text end

new text begin (2) for the fire state aid program and fire relief association financial reports, the
person who was elected or appointed to the specified position, or, for governmental
entities other than counties, if the governing body of the governmental entity designates
the position to perform the function, the chief financial official of the governmental entity
or the chief administrative official of the governmental entity.
new text end

(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the
retirement plan established by chapter 353G.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2010, section 69.051, subdivision 1, is amended to read:

Subdivision 1.

Financial report and audit.

new text begin (a) new text end The board of each salaried
firefighters relief association, police relief association, and volunteer firefighters relief
association as defined in section 424A.001, subdivision 4, with assets of at least $200,000
or liabilities of at least $200,000 in the prior year or in any previous year, according to
the applicable actuarial valuation or financial report if no valuation is required, shall deleted text begin : (1) deleted text end
prepare a financial report covering the special and general funds of the relief association
for the preceding fiscal year deleted text begin on a form prescribed by the state auditor deleted text end new text begin , file the financial
report, and submit financial statements new text end .

new text begin (b) new text end The financial report must contain financial statements and disclosures which
present the true financial condition of the relief association and the results of relief
association operations in conformity with generally accepted accounting principles and in
compliance with the regulatory, financing and funding provisions of this chapter and any
other applicable laws. The financial report must be countersigned by new text begin :
new text end

new text begin (1) new text end the municipal clerk or clerk-treasurer of the municipality in which the relief
association is located if the relief association is a firefighters relief association which is
directly associated with a municipal fire department or is a police relief association deleted text begin , deleted text end new text begin ; new text end or
deleted text begin countersigned by the secretary of the independent nonprofit firefighting corporation and
deleted text end

new text begin (2) new text end by the municipal clerk or clerk-treasurer of the largest municipality in population
which contracts with the independent nonprofit firefighting corporation if the volunteer
firefighter relief association is a subsidiary of an independent nonprofit firefighting
corporation new text begin and by the secretary of the independent nonprofit firefighting corporation new text end ; new text begin or
new text end

new text begin (3) by the chief financial official of the county in which the volunteer firefighter
relief association is located or primarily located if the relief association is associated with
a fire department that is not located in or associated with an organized municipality.
new text end

deleted text begin (2) file deleted text end new text begin (c) new text end The financial report new text begin must be retained new text end in its office for public inspection
and deleted text begin present it to deleted text end new text begin must be filed with new text end the deleted text begin city council deleted text end new text begin governing body of the government
subdivision in which the associated fire department is located new text end after the close of the fiscal
year. One copy of the financial report must be furnished to the state auditor after the
close of the fiscal year deleted text begin ; and deleted text end new text begin .
new text end

deleted text begin (3) submit to the state auditor deleted text end new text begin (d) new text end Audited financial statements deleted text begin which have been deleted text end new text begin must
be new text end attested to by a certified public accountant, public accountant, or the state auditor new text begin and
must be filed with the state auditor new text end within 180 days after the close of the fiscal year. The
state auditor may accept this report in lieu of the report required in deleted text begin clause (2) deleted text end new text begin paragraph (c) new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 3.

Minnesota Statutes 2010, section 69.051, subdivision 1a, is amended to read:

Subd. 1a.

Financial statement.

(a) The board of each volunteer firefighters relief
association, as defined in section 424A.001, subdivision 4, that is not required to file
a financial report and audit under subdivision 1 must prepare a detailed statement of
the financial affairs for the preceding fiscal year of the relief association's special and
general funds in the style and form prescribed by the state auditor. The detailed statement
must show the sources and amounts of all money received; all disbursements, accounts
payable and accounts receivable; the amount of money remaining in the treasury; total
assets including a listing of all investments; the accrued liabilities; and all items necessary
to show accurately the revenues and expenditures and financial position of the relief
association.

(b) The detailed financial statement required under paragraph (a) must be certified
by an independent public accountant or auditor or by the auditor or accountant who
regularly examines or audits the financial transactions of the municipality. In addition to
certifying the financial condition of the special and general funds of the relief association,
the accountant or auditor conducting the examination shall give an opinion as to the
condition of the special and general funds of the relief association, and shall comment
upon any exceptions to the report. The independent accountant or auditor must have at
least five years of public accounting, auditing, or similar experience, and must not be an
active, inactive, or retired member of the relief association or the fire or police department.

(c) The detailed statement required under paragraph (a) must be countersigned by new text begin :
new text end

new text begin (1) new text end the municipal clerk or clerk-treasurer of the municipality deleted text begin , deleted text end new text begin ; new text end or deleted text begin ,
deleted text end

new text begin (2) new text end where applicable, by the deleted text begin secretary of the independent nonprofit firefighting
corporation and by the deleted text end municipal clerk or clerk-treasurer of the largest municipality in
population which contracts with the independent nonprofit firefighting corporation if the
relief association is a subsidiary of an independent nonprofit firefighting corporation deleted text begin . deleted text end new text begin and
by the secretary of the independent nonprofit firefighting corporation; or
new text end

new text begin (3) by the chief financial official of the county in which the volunteer firefighter
relief association is located or primarily located if the relief association is associated with
a fire department that is not located in or associated with an organized municipality.
new text end

(d) The volunteer firefighters' relief association board must file the detailed statement
required under paragraph (a) in the relief association office for public inspection and
present it to the city council within 45 days after the close of the fiscal year, and must
submit a copy of the detailed statement to the state auditor within 90 days of the close of
the fiscal year.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

ARTICLE 2

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
FUNDING REQUIREMENT DETERMINATION CERTIFICATIONS

Section 1.

Minnesota Statutes 2010, section 69.772, subdivision 4, is amended to read:

Subd. 4.

Certification of financial requirements and minimum municipal
obligation; levy.

(a) The officers of the relief association shall certify the financial
requirements of the special fund of the relief association and the minimum obligation of
the municipality with respect to the special fund of the relief association as determined
under subdivision 3 deleted text begin to the governing body of the municipality deleted text end on or before August 1 of
each year. new text begin The certification must be made to the entity that is responsible for satisfying
the minimum obligation with respect to the special fund of the relief association. If the
responsible entity is a joint powers entity, the certification must be made in the manner
specified in the joint powers agreement, or if the joint powers agreement is silent on this
point, the certification must be made to the chair of the joint powers board.
new text end

new text begin (b) new text end The financial requirements of the relief association and the minimum municipal
obligation must be included in the financial report or financial statement under section
69.051. The schedule forms related to the determination of the financial requirements
must be filed with the state auditor by March 31, annually, if the relief association is
required to file a financial statement under section 69.051, subdivision 1a, or by June 30,
annually, if the relief association is required to file a financial report and audit under
section 69.051, subdivision 1.

deleted text begin (b) deleted text end new text begin (c) new text end The municipality shall provide for at least the minimum obligation of the
municipality with respect to the special fund of the relief association by tax levy or from
any other source of public revenue.

deleted text begin (c) deleted text end new text begin (d) new text end The municipality may levy taxes for the payment of the minimum municipal
obligation without any limitation as to rate or amount and irrespective of any limitations
imposed by other provisions of law upon the rate or amount of taxation until the balance
of the special fund or any fund of the relief association has attained a specified level. In
addition, any taxes levied under this section must not cause the amount or rate of any other
taxes levied in that year or to be levied in a subsequent year by the municipality which are
subject to a limitation as to rate or amount to be reduced.

deleted text begin (d) deleted text end new text begin (e) new text end If the municipality does not include the full amount of the minimum
municipal obligations in its levy for any year, the officers of the relief association shall
certify that amount to the county auditor, who shall spread a levy in the amount of the
certified minimum municipal obligation on the taxable property of the municipality.

deleted text begin (e) deleted text end new text begin (f) new text end If the state auditor determines that a municipal contribution actually made
in a plan year was insufficient under section 69.771, subdivision 3, paragraph (c), clause
(5), the state auditor may request a copy of the certifications under this subdivision
from the relief association or from the city. The relief association or the city, whichever
applies, must provide the certifications within 14 days of the date of the request from
the state auditor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

Sec. 2.

Minnesota Statutes 2010, section 69.773, subdivision 5, is amended to read:

Subd. 5.

Minimum municipal obligation.

(a) The officers of the relief association
shall determine the minimum obligation of the municipality with respect to the special
fund of the relief association for the following calendar year on or before August 1 of each
year in accordance with the requirements of this subdivision.

(b) The minimum obligation of the municipality with respect to the special fund is
an amount equal to the financial requirements of the special fund of the relief association
determined under subdivision 4, reduced by the estimated amount of any fire state
aid payable under sections 69.011 to 69.051 reasonably anticipated to be received by
the municipality for transmittal to the special fund of the relief association during the
following year and the amount of any anticipated contributions to the special fund
required by the relief association bylaws from the active members of the relief association
reasonably anticipated to be received during the following calendar year. A reasonable
amount of anticipated fire state aid is an amount that does not exceed the fire state aid
actually received in the prior year multiplied by the factor 1.035.

(c) The officers of the relief association shall certify the financial requirements of
the special fund of the relief association and the minimum obligation of the municipality
with respect to the special fund of the relief association as determined under subdivision 4
and this subdivision deleted text begin to the governing body of the municipality deleted text end by August 1 of each year. new text begin
The certification must be made to the entity that is responsible for satisfying the minimum
obligation with respect to the special fund of the relief association. If the responsible
entity is a joint powers entity, the certification must be made in the manner specified in
the joint powers agreement, or if the joint powers agreement is silent on this point, the
certification must be made to the chair of the joint powers board.
new text end

new text begin (d) new text end The financial requirements of the relief association and the minimum municipal
obligation must be included in the financial report or financial statement under section
69.051.

deleted text begin (d) deleted text end new text begin (e) new text end The municipality shall provide for at least the minimum obligation of the
municipality with respect to the special fund of the relief association by tax levy or from
any other source of public revenue. The municipality may levy taxes for the payment of the
minimum municipal obligation without any limitation as to rate or amount and irrespective
of any limitations imposed by other provisions of law or charter upon the rate or amount
of taxation until the balance of the special fund or any fund of the relief association has
attained a specified level. In addition, any taxes levied under this section must not cause
the amount or rate of any other taxes levied in that year or to be levied in a subsequent year
by the municipality which are subject to a limitation as to rate or amount to be reduced.

deleted text begin (e) deleted text end new text begin (f) new text end If the municipality does not include the full amount of the minimum municipal
obligation in its levy for any year, the officers of the relief association shall certify that
amount to the county auditor, who shall spread a levy in the amount of the minimum
municipal obligation on the taxable property of the municipality.

deleted text begin (f) deleted text end new text begin (g) new text end If the state auditor determines that a municipal contribution actually made
in a plan year was insufficient under section 69.771, subdivision 3, paragraph (c), clause
(5), the state auditor may request from the relief association or from the city a copy of
the certifications under this subdivision. The relief association or the city, whichever
applies, must provide the certifications within 14 days of the date of the request from
the state auditor.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

ARTICLE 3

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
BOARD SALARIES

Section 1.

Minnesota Statutes 2010, section 69.80, is amended to read:

69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.

(a) Notwithstanding any provision of law to the contrary, the payment of the
following necessary, reasonable and direct expenses of maintaining, protecting and
administering the special fund, when provided for in the bylaws of the association and
approved by the board of trustees, constitutes authorized administrative expenses of a
police, salaried firefighters', or volunteer firefighters' relief association organized under
any law of this state:

(1) office expense, including, but not limited to, rent, utilities, equipment, supplies,
postage, periodical subscriptions, furniture, fixtures, and salaries of administrative
personnel;

(2) salaries of the deleted text begin president, secretary, and treasurer deleted text end new text begin officers new text end of the association, or
their designees, and deleted text begin any other official deleted text end new text begin salaries of the members of the board of trustees new text end of
the deleted text begin relief deleted text end association deleted text begin to whom a salary is payable under bylaws or articles of incorporation
in effect on January 1, 1986 deleted text end new text begin if the salary amounts are approved by the governing body of
the entity that is responsible for meeting any minimum obligation under section 69.77,
69.772, or 69.773 new text end , and deleted text begin their deleted text end new text begin the new text end itemized expenses new text begin of relief association officers and board
members that are new text end incurred as a result of fulfilling their responsibilities as administrators
of the special fund;

(3) tuition, registration fees, organizational dues, and other authorized expenses
of the officers or members of the board of trustees incurred in attending educational
conferences, seminars, or classes relating to the administration of the relief association;

(4) audit, actuarial, medical, legal, and investment and performance evaluation
expenses;

(5) reimbursement to the officers and members of the board of trustees, or their
designees, for reasonable and necessary expenses actually paid and incurred in the
performance of their duties as officers or members of the board; and

(6) premiums on fiduciary liability insurance and official bonds for the officers,
members of the board of trustees, and employees of the relief association.

(b) Any other expenses of the relief association must be paid from the general fund
of the association, if one exists. If a relief association has only one fund, that fund is the
special fund for purposes of this section. If a relief association has a special fund and
a general fund, and any expense of the relief association that is directly related to the
purposes for which both funds were established, the payment of that expense must be
apportioned between the two funds on the basis of the benefits derived by each fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

ARTICLE 4

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
FILING AND APPLICATION FEE EXPENSES

Section 1.

Minnesota Statutes 2010, section 69.80, is amended to read:

69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.

(a) Notwithstanding any provision of law to the contrary, the payment of the
following necessary, reasonable and direct expenses of maintaining, protecting and
administering the special fund, when provided for in the bylaws of the association and
approved by the board of trustees, constitutes authorized administrative expenses of a
police, salaried firefighters', or volunteer firefighters' relief association organized under
any law of this state:

(1) office expense, including, but not limited to, rent, utilities, equipment, supplies,
postage, periodical subscriptions, furniture, fixtures, and salaries of administrative
personnel;

(2) salaries of the president, secretary, and treasurer of the association, or their
designees, and any other official of the relief association to whom a salary is payable
under bylaws or articles of incorporation in effect on January 1, 1986, and their itemized
expenses incurred as a result of fulfilling their responsibilities as administrators of the
special fund;

(3) tuition, registration fees, organizational dues, and other authorized expenses
of the officers or members of the board of trustees incurred in attending educational
conferences, seminars, or classes relating to the administration of the relief association;

(4) audit, actuarial, medical, legal, and investment and performance evaluation
expenses;

new text begin (5) filing and application fees payable by the relief association to federal or other
governmental entities;
new text end

deleted text begin (5) deleted text end new text begin (6) new text end reimbursement to the officers and members of the board of trustees, or
their designees, for reasonable and necessary expenses actually paid and incurred in the
performance of their duties as officers or members of the board; and

deleted text begin (6) deleted text end new text begin (7) new text end premiums on fiduciary liability insurance and official bonds for the officers,
members of the board of trustees, and employees of the relief association.

(b) Any other expenses of the relief association must be paid from the general fund
of the association, if one exists. If a relief association has only one fund, that fund is the
special fund for purposes of this section. If a relief association has a special fund and
a general fund, and any expense of the relief association that is directly related to the
purposes for which both funds were established, the payment of that expense must be
apportioned between the two funds on the basis of the benefits derived by each fund.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively from January 1, 2010.
new text end

ARTICLE 5

VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
RETURN TO SERVICE MODIFICATIONS

Section 1.

Minnesota Statutes 2010, section 424A.01, subdivision 6, is amended to
read:

Subd. 6.

Return to active firefighting after break in service.

(a) The requirements
of this section apply to all breaks in service, except breaks in service mandated by federal
or state law.

(b)(1) If a firefighter who has ceased to perform or supervise fire suppression and
fire prevention duties for at least 60 days resumes performing active firefighting with the
fire department associated with the relief association, if the bylaws of the relief association
so permit, the firefighter may again become an active member of the relief association. A
firefighter who returns to active service and membership is subject to the service pension
calculation requirements under this section.

(2) A firefighter who has been granted an approved leave of absence not exceeding
one year by the fire department or by the relief association is exempt from the minimum
period of resumption service requirement of this section.

(3) A person who has a break in service not exceeding one year but has not been
granted an approved leave of absence and who has not received a service pension or
disability benefit may be made exempt from the minimum period of resumption service
requirement of this section by the relief association bylaws.

(4) If the bylaws so provide, a firefighter who returns to active relief association
membership under this paragraph may continue to collect a monthly service pension,
notwithstanding the service pension eligibility requirements under chapter 424A.

(c) If a former firefighter who has received a service pension or disability benefit
returns to active relief association membership under paragraph (b), the firefighter may
qualify for the receipt of a service pension from the relief association for the resumption
service period if the firefighter meets the service requirements of section 424A.016,
subdivision 3, or 424A.02, subdivision 2. new text begin No firefighter may be paid a service pension
more than once for the same period of service.
new text end

(d) If a former firefighter who has not received a service pension or disability benefit
returns to active relief association membership under paragraph (b), the firefighter may
qualify for the receipt of a service pension from the relief association for the new text begin original
and new text end resumption service deleted text begin period deleted text end new text begin periods new text end if the firefighter meets the deleted text begin minimum period of
resumption service specified in the relief association bylaws and the deleted text end service requirements
of section 424A.016, subdivision 3, or 424A.02, subdivision 2 new text begin , based on the original and
resumption years of service credit new text end .

(e) A firefighter who returns to active lump-sum relief association membership
new text begin under paragraph (b) new text end and who qualifies for a service pension under paragraph (c) deleted text begin or (d) deleted text end
must have, upon a subsequent cessation of duties, any service pension for the resumption
service period calculated as a separate benefit. If a lump-sum service pension had
been paid to the firefighter upon the firefighter's previous cessation of duties, a second
lump-sum service pension for the resumption service period must be calculated deleted text begin to apply deleted text end
new text begin by applying new text end the service pension amount in effect on the date of the firefighter's termination
of the resumption service for all years of the resumption service. deleted text begin No firefighter may be
paid a service pension twice for the same period of service. If a lump-sum service pension
had not been paid to the firefighter upon the firefighter's previous cessation of duties and
the firefighter meets the minimum service requirement of section 424A.016, subdivision
3, or 424A.02, subdivision 2, a service pension must be calculated to apply the service
pension amount in effect on the date of the firefighter's termination of the resumption
service for all years of service credit.
deleted text end

(f) A firefighter who had not been paid a lump-sum service pension returns to
active relief association membership under paragraph (b), who deleted text begin does deleted text end new text begin did new text end not deleted text begin qualify for
a service pension under paragraph (d) deleted text end new text begin meet the minimum period of resumption service
requirement specified in the relief association's bylaws new text end , but who does meet the minimum
service requirement of section deleted text begin 424A.016, subdivision 3, or deleted text end 424A.02, subdivision 2, based
on the firefighter's deleted text begin previous deleted text end new text begin original and resumption new text end years of active service, must have,
upon a subsequent cessation of duties, a service pension deleted text begin calculated deleted text end for the deleted text begin previous years
of deleted text end new text begin original and resumption new text end service deleted text begin based on deleted text end new text begin periods calculated by applying new text end the service
pension amount in effect on the date of the firefighter's termination of the resumption
service, or, if the bylaws so provide, based on the service pension amount in effect on the
date of the firefighter's previous cessation of duties. new text begin The service pension for a firefighter
who returns to active lump-sum relief association membership under this paragraph, but
who had met the minimum period of resumption service requirement specified in the relief
association's bylaws, must be calculated by applying the service pension amount in effect
on the date of the firefighter's termination of the resumption service.
new text end

(g) If a firefighter receiving a monthly benefit service pension returns to active
monthly benefit relief association membership under paragraph (b), and if the relief
association bylaws do not allow for the firefighter to continue collecting a monthly service
pension, any monthly benefit service pension payable to the firefighter is suspended as
of the first day of the month next following the date on which the firefighter returns to
active membership. If the firefighter was receiving a monthly benefit service pension, and
qualifies for a service pension under paragraph (c), the firefighter is entitled to an additional
monthly benefit service pension upon a subsequent cessation of duties calculated based
on the resumption service credit and the service pension accrual amount in effect on the
date of the termination of the resumption service. A suspended initial service pension
resumes as of the first of the month next following the termination of the resumption
service. If the firefighter was not receiving a monthly benefit service pension and meets
the minimum service requirement of section 424A.02, subdivision 2, a service pension
must be calculated deleted text begin to apply deleted text end new text begin by applying new text end the service pension amount in effect on the date
of the firefighter's termination of the resumption service for all years of service credit.

(h) A firefighter who was not receiving a monthly benefit service pension returns to
active relief association membership under paragraph (b), who deleted text begin does deleted text end new text begin did new text end not deleted text begin qualify for
a service pension under paragraph (d) deleted text end new text begin meet the minimum period of resumption service
requirement specified in the relief association's bylaws new text end , but who does meet the minimum
service requirement of section 424A.02, subdivision 2, based on the firefighter's deleted text begin previous deleted text end
new text begin original and resumption new text end years of active service, must have, upon a subsequent cessation
of duties, a service pension deleted text begin calculated deleted text end for the deleted text begin previous years of deleted text end new text begin original and resumption
new text end service deleted text begin based on deleted text end new text begin periods calculated by applying new text end the service pension amount in effect on
the date of the firefighter's termination of the resumption service, or, if the bylaws so
provide, based on the service pension amount in effect on the date of the firefighter's
previous cessation of duties. new text begin The service pension for a firefighter who returns to active
relief association membership under this paragraph, but who had met the minimum period
of resumption service requirement specified in the relief association's bylaws, must be
calculated by applying the service pension amount in effect on the date of the firefighter's
termination of the resumption service.
new text end

new text begin (i) For defined contribution plans, a firefighter who returns to active relief
association membership under paragraph (b) and who qualifies for a service pension
under paragraph (c) or (d) must have, upon a subsequent cessation of duties, any service
pension for the resumption service period calculated as a separate benefit. If a service
pension had been paid to the firefighter upon the firefighter's previous cessation of duties,
and if the firefighter meets the minimum service requirement of section 424A.016,
subdivision 3, based on the resumption years of service, a second service pension for
the resumption service period must be calculated to include allocations credited to the
firefighter's individual account during the resumption period of service and deductions
for administrative expenses, if applicable.
new text end

new text begin (j) For defined contribution plans, if a firefighter who had not been paid a service
pension returns to active relief association membership under paragraph (b), and who
meets the minimum service requirement of section 424A.016, subdivision 3, based on
the firefighter's original and resumption years of service, must have, upon a subsequent
cessation of duties, a service pension for the original and resumption service periods
calculated to include allocations credited to the firefighter's individual account during the
resumption period of service and deductions for administrative expenses, if applicable,
less any amounts previously forfeited under section 424A.016, subdivision 4.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

ARTICLE 6

DEFINED CONTRIBUTION VOLUNTEER FIREFIGHTER RELIEF
ASSOCIATION SURVIVOR BENEFIT INSTALLMENT PAYMENTS

Section 1.

Minnesota Statutes 2010, section 424A.016, subdivision 5, is amended to
read:

Subd. 5.

Service pension installment payments.

new text begin (a) new text end A defined contribution relief
association, if the governing bylaws so provide, may pay, at the option of the deleted text begin retiring
member deleted text end new text begin intended recipient new text end and in lieu of a single payment of a service pension new text begin or a
survivor benefit new text end , the service pension new text begin or survivor benefit new text end in installments.

new text begin (b) new text end The election of installment payments is irrevocable and must be made by the
deleted text begin retiring member deleted text end new text begin intended recipient new text end in writing and filed with the secretary of the relief
association no later than 30 days before the commencement of payment of the service
pension new text begin or survivor benefit new text end .

new text begin (c) new text end The amount of the installment payments must be the fractional portion of the
remaining account balance equal to one divided by the number of remaining annual
installment payments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

ARTICLE 7

MEMBER DUES AS VOLUNTEER FIREFIGHTER
RELIEF ASSOCIATION SPECIAL FUND CONTRIBUTIONS

Section 1.

Minnesota Statutes 2010, section 424A.06, subdivision 2, is amended to
read:

Subd. 2.

General fund assets and revenues.

deleted text begin To deleted text end new text begin (a) new text end The general fund, if established,
must be credited new text begin with the following:
new text end

new text begin (1) new text end all deleted text begin moneys deleted text end new text begin money new text end received from dues deleted text begin , deleted text end new text begin other than dues payable as contributions
under the bylaws of the relief association to the special fund;
new text end

new text begin (2) all money received from new text end fines deleted text begin , deleted text end new text begin ;
new text end

new text begin (3) all money received from new text end initiation fees deleted text begin , deleted text end new text begin ;
new text end

new text begin (4) all money received as new text end entertainment revenues new text begin ; new text end and

new text begin (5) new text end any deleted text begin moneys deleted text end new text begin money new text end or property donated, given, granted or devised by any
person, new text begin either for the support of the general fund of the relief association or new text end for unspecified
deleted text begin uses deleted text end new text begin purposes new text end .

new text begin (b) new text end The treasurer of the relief association is the custodian of the assets of the general
fund and must be the recipient on behalf of the general fund of all revenues payable to the
general fund. The treasurer shall maintain adequate records documenting any transaction
involving the assets or the revenues of the general fund. These records must be open for
inspection by any member of the relief association at reasonable times and places.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2011.
new text end

ARTICLE 8

TECHNICAL CHANGES RELATED TO
VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS

Section 1.

Minnesota Statutes 2010, section 69.051, subdivision 1, is amended to read:

Subdivision 1.

Financial report and audit.

The board of each salaried firefighters
relief association, police relief association, and volunteer firefighters relief association as
defined in section 424A.001, subdivision 4, with assets of at least $200,000 or liabilities
of at least $200,000 in the prior year or in any previous year, according to the applicable
actuarial valuation or financial report if no valuation is required, shall:

(1) prepare a financial report covering the special and general funds of the relief
association for the preceding fiscal year on a form prescribed by the state auditor. The
financial report must contain financial statements and disclosures which present the true
financial condition of the relief association and the results of relief association operations
in conformity with generally accepted accounting principles and in compliance with the
regulatory, financing and funding provisions of this chapter and any other applicable laws.
The financial report must be countersigned by the municipal clerk or clerk-treasurer of
the municipality in which the relief association is located if the relief association is a
firefighters relief association which is directly associated with a municipal fire department
or is a police relief association, or countersigned by the secretary of the independent
nonprofit firefighting corporation and by the municipal clerk or clerk-treasurer of the
largest municipality in population which contracts with the independent nonprofit
firefighting corporation if the volunteer firefighter relief association is a subsidiary of an
independent nonprofit firefighting corporation;

(2) file the financial report in its office for public inspection and present it to the city
council after the close of the fiscal year. One copy of the financial report must be furnished
to the state auditor after the close of the fiscal year; and

(3) submit to the state auditor audited financial statements which have been attested
to by a certified public accountant deleted text begin , public accountant, deleted text end or the state auditor within 180
days after the close of the fiscal year. The state auditor may accept this report in lieu of
the report required in clause (2).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 69.051, subdivision 3, is amended to read:

Subd. 3.

Report by certain municipalities.

(a) Each municipality which has
an organized fire department but which does not have a firefighters' relief association
governed by section 69.77 or sections 69.771 to 69.775 and which is not exempted
under paragraph (b) shall annually prepare a detailed financial report of the receipts and
disbursements by the municipality for fire protection service during the preceding calendar
year, on a form prescribed by the state auditor. The financial report must contain any
information which the state auditor deems necessary to disclose the sources of receipts
and the purpose of disbursements for fire protection service. The financial report must be
signed by the municipal clerk or clerk-treasurer of the municipality. The financial report
must be filed by the municipal clerk or clerk-treasurer with the state auditor on or before
July 1 annually. deleted text begin The state auditor shall forward one copy to the county auditor of the
county wherein the municipality is located. deleted text end The municipality shall not qualify initially to
receive, or be entitled subsequently to retain, state aid under this chapter if the financial
reporting requirement or the applicable requirements of this chapter or any other statute or
special law have not been complied with or are not fulfilled.

(b) Each municipality that has an organized fire department and provides retirement
coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter
retirement plan under chapter 353G qualifies to have fire state aid transmitted to and
retained in the statewide lump-sum volunteer firefighter retirement fund without filing
a detailed financial report if the executive director of the Public Employees Retirement
Association certifies compliance by the municipality with the requirements of sections
353G.04 and 353G.08, paragraph (e), and by the applicable fire chief with the requirements
of section 353G.07.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2010, section 424A.001, subdivision 4, is amended to read:

Subd. 4.

Relief association.

new text begin (a) new text end "Relief association" new text begin or "volunteer firefighters'
relief association" new text end means deleted text begin (1) deleted text end a volunteer firefighters' relief association or a volunteer
firefighters' division or account of a partially salaried and partially volunteer firefighters'
relief association that is new text begin :
new text end

new text begin (1) new text end organized and incorporated new text begin as a nonprofit corporation to provide retirement
benefits to volunteer firefighters new text end under chapter 317A and any laws of the state deleted text begin , deleted text end new text begin ;
new text end

new text begin (2) new text end is governed by this chapter and deleted text begin chapter 69, deleted text end new text begin sections 69.771 to 69.775; new text end and

new text begin (3) new text end is directly associated with new text begin :
new text end

new text begin (i) new text end a fire department established by municipal ordinance; deleted text begin or
deleted text end

deleted text begin (2) any separately incorporated volunteer firefighters' relief association that is
subsidiary to and that provides service pension and retirement benefit coverage for
members of deleted text end new text begin (ii) new text end an independent nonprofit firefighting corporation that is organized under
the provisions of chapter 317A deleted text begin , is governed by this chapter, deleted text end and new text begin that new text end operates deleted text begin exclusively deleted text end
new text begin primarily new text end for firefighting purposes new text begin ; or
new text end

new text begin (iii) a fire department operated as or by a joint powers entity that operates primarily
for firefighting purposes new text end .

new text begin (b) "Relief association" or "volunteer firefighters' relief association" does not mean:
new text end

new text begin (1) the Bloomington Fire Department Relief Association governed by section 69.77;
Minnesota Statutes 2000, chapter 424; and Laws 1965, chapter 446, as amended;
new text end

new text begin (2) the Minneapolis Firefighters Relief Association governed by section 69.77;
chapter 423A, and chapter 423C;
new text end

new text begin (3) the Virginia Fire Department Relief Association governed by section 69.77;
chapter 423A; and Laws 1953, chapter 399, as amended; or
new text end

new text begin (4) the voluntary statewide lump-sum volunteer firefighter retirement plan governed
by Minnesota Statutes, chapter 353G.
new text end

new text begin (c) new text end A relief association new text begin or volunteer firefighters' relief association new text end is a governmental
entity that receives and manages public money to provide retirement benefits for
individuals providing the governmental services of firefighting and emergency first
response.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4.

Minnesota Statutes 2010, section 424A.02, subdivision 9, is amended to read:

Subd. 9.

Limitation on ancillary benefits.

A defined benefit relief association,
including any volunteer firefighters relief association governed by section 69.77 or any
volunteer firefighters division of a relief association governed by chapter 424, may only
pay ancillary benefits which would constitute an authorized disbursement as specified in
section 424A.05 subject to the following requirements or limitations:

(1) with respect to a defined benefit relief association in which governing bylaws
provide for a lump-sum service pension to a retiring member, no ancillary benefit may
be paid to any former member or paid to any person on behalf of any former member
after the former member (i) terminates active service with the fire department and active
membership in the relief association; and (ii) commences receipt of a service pension as
authorized under this section; and

(2) with respect to any defined benefit relief association, no ancillary benefit paid or
payable to any member, to any former member, or to any person on behalf of any member
or former member, may exceed in amount the total earned service pension of the member
or former member. The total earned service pension must be calculated by multiplying
the service pension amount specified in the bylaws of the relief association at the time of
death or disability, whichever applies, by the years of service credited to the member or
former member. The years of service must be determined as of (i) the date the member or
former member became entitled to the ancillary benefit; or (ii) the date the member or
former member died entitling a survivor or the estate of the member or former member to
an ancillary benefit. The ancillary benefit must be calculated without regard to whether the
member had attained the minimum amount of service and membership credit specified in
the governing bylaws. For active members, the amount of a permanent disability benefit
or a survivor benefit must be equal to the member's total earned service pension except
that the bylaws of a defined benefit relief association may provide for the payment of a
survivor benefit in an amount not to exceed five times the yearly service pension amount
specified in the bylaws on behalf of any member who dies before having performed five
years of active service in the fire department with which the relief association is affiliated.

(3)(i) If a lump sum survivor or death benefit is payable under the articles of
incorporation or bylaws, the benefit must be paid:

(A) as a survivor benefit to the surviving spouse of the deceased firefighter;

(B) as a survivor benefit to the surviving children of the deceased firefighter if
no surviving spouse;

(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving children; or

(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
new text begin surviving spouse, no new text end surviving children new text begin , new text end and no beneficiary designated.

(ii) If there are no surviving children, the surviving spouse may waive, in writing,
wholly or partially, the spouse's entitlement to a survivor benefit.

(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of
incorporation or bylaws, the benefit must be paid:

(A) as a survivor benefit to the surviving spouse of the deceased firefighter;

(B) as a survivor benefit to the surviving children of the deceased firefighter if
no surviving spouse;

(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no
surviving spouse or surviving children; or

(D) as a death benefit to the estate of the deceased active or deferred firefighter if no
surviving spouse, no surviving children, and no beneficiary designated.

(ii) If there are no surviving children, the surviving spouse may waive, in writing,
wholly or partially, the spouse's entitlement to a survivor benefit.

(iii) For purposes of this clause, if the relief association bylaws authorize a monthly
survivor benefit payable to a designated beneficiary, the relief association bylaws may
limit the total survivor benefit amount payable.

(5) For purposes of this section, for a monthly benefit volunteer fire relief association
or for a combination lump-sum and monthly benefit volunteer fire relief association where
a monthly benefit service pension has been elected by or a monthly benefit is payable with
respect to a firefighter, a designated beneficiary must be a natural person. For purposes
of this section, for a lump-sum volunteer fire relief association or for a combination
lump-sum and monthly benefit volunteer fire relief association where a lump-sum service
pension has been elected by or a lump-sum benefit is payable with respect to a firefighter,
a trust created under chapter 501B may be a designated beneficiary. If a trust is payable to
the surviving children organized under chapter 501B as authorized by this section and
there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding
a requirement of this section to the contrary.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5.

Minnesota Statutes 2010, section 424A.04, subdivision 3, is amended to read:

Subd. 3.

Conditions on relief association consultants.

(a) If a volunteer firefighter
relief association employs or contracts with a consultant to provide legal or financial
advice, the secretary of the relief association shall obtain and the consultant shall provide
to the secretary of the relief association a copy of the consultant's certificate of insurance.

(b) A consultant is any person who is employed under contract to provide legal or
financial advice and who is or who represents to the volunteer firefighter relief association
that the person is:

(1) an actuary;

(2) deleted text begin a licensed public accountant or deleted text end a certified public accountant;

(3) an attorney;

(4) an investment advisor or manager, or an investment counselor;

(5) an investment advisor or manager selection consultant;

(6) a pension benefit design advisor or consultant; or

(7) any other financial consultant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end