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;
20.35 	and 
20.36 	(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 marketing purchasing, contracting,
23.31 	meetings, data.  (a) Contracting and purchasing made on behalf
23.32 	of the Hennepin County Medical Center and its health maintenance
23.33 	organization ( 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 the medical center and HMO 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 the medical center or HMO.
24.13 	(c) The medical center and HMO 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 	the medical center or HMO 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 the medical center or HMO.  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 the medical 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 the medical
25.15 	center or HMO, 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 the medical 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 5 and 7 are effective on the date specified
26.17 	in article 1, section 29, paragraph (b).  Section 6 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; and 
31.33 	(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, and the 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 hennepin county healthcare
33.23 	system, inc.;paramedics and emergency medical technicians.  An
33.24 	employee of Hennepin County Healthcare 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 	Hennepin County Healthcare System, Inc.shall deduct the
34.6 	employee contribution from the salary of each full-time Hennepin
34.7 	County paramedic 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-time Hennepin County 
34.10 	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 by the Hennepin County Medical Center 
34.20 	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 committees prior to before 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 which shall must include time
35.7 	served as a county employee prior to before June 8, 1965, if the
35.8 	person is an employee in the classified service, shall be of 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 and shall must 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 be is 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 employed
35.26 	in subsidized on-the-job training, work experience or public
35.27 	service employment as an enrollee under the federal
35.28 	Comprehensive Employment and Training Act shall not be included
35.29 	in the supplemental retirement account from and after March 30,
35.30 	1978 unless the employee has as of the later of March 30, 1978
35.31 	or the date of employment sufficient service credit in the
35.32 	public employees retirement fund or the Minneapolis municipal
35.33 	employees retirement fund, whichever is applicable, to meet the
35.34 	minimum vesting requirements for a deferred retirement annuity,
35.35 	or the county agrees in writing to make the required employer
35.36 	contributions on account of the individual from revenue sources
36.1 	other than funds provided under the federal Comprehensive
36.2 	Employment and Training Act, or the employee agrees in writing
36.3 	to make the required employer contribution in addition to the
36.4 	employee 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 period shall must be contributed by the county of
36.8 	Hennepin or Hennepin Healthcare System, Inc., whichever
36.9 	applies.  The total amount deducted and contributed shall must 
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).