1.1 	A bill for an act
1.2 	relating to retirement; Public Employees Retirement
1.3 	Association; terminating retirement coverage for
1.4 	privatized water and wastewater facility employees;
1.5 	amending Minnesota Statutes 2004, section 471A.10.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. Minnesota Statutes 2004, section 471A.10, is
1.8 	amended to read:
1.9 	471A.10 PUBLIC EMPLOYEE LAWS; SALE OR LEASE OF EXISTING
1.10 	FACILITY.
1.11 	(a) Unless expressly provided therein, and except as
1.12 	provided in this section, no state law, charter provision, or
1.13 	ordinance of a municipality relating to public employees shall
1.14 	apply to a person solely by reason of that person's employment
1.15 	by a private vendor in connection with services rendered under a
1.16 	service contract.
1.17 	(b) A private vendor purchasing or leasing existing related
1.18 	facilities from a municipality or operating or maintaining the
1.19 	facility shall recognize all exclusive bargaining
1.20 	representatives and existing labor agreements and those
1.21 	agreements shall remain in force until they expire by their
1.22 	terms.  Persons who are not employed by a municipality in a
1.23 	related facility at the time of following a lease or purchase of
1.24 	the facility by the a private vendor are not "public employees"
1.25 	within the meaning of the Public Employees Retirement Act,under 
2.1 	chapter 353, except that the persons may be deemed "terminated
2.2 	medical facility or other public employing unit employees" under
2.3 	chapter 353F. Persons employed by a municipality in a related
2.4 	facility at the time of a lease or purchase of the facility by a
2.5 	private vendor shall continue to be considered to be "public
2.6 	employees" within the meaning of the Public Employees Retirement
2.7 	Act, chapter 353, but may elect to terminate their participation
2.8 	in the Public Employees Retirement Association as provided in
2.9 	this section.  Each such employee may exercise the election
2.10 	annually on the anniversary of the person's initial employment
2.11 	by the municipality.  An employee electing to terminate
2.12 	participation in the association is entitled to benefits that
2.13 	the employee would be entitled to if terminating public
2.14 	employment and may participate in a retirement program
2.15 	established by the private vendor.