<a id="pl.1.3"></a><var>1.3</var>applies for deployed National Guard and reserve members who are teachers;<br/>
<a id="pl.1.4"></a><var>1.4</var>amending Minnesota Statutes 2008, section 471.975.<br/>
<a id="pl.1.5"></a><var>1.5</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.0.1.0"></a><a id="pl.1.6"></a><var>1.6</var>    Section 1. Minnesota Statutes 2008, section 471.975, is amended to read:<br/>
<a id="pl.1.7"></a><var>1.7</var><b>471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.</b><br/>
<a id="pl.1.8"></a><var>1.8</var>(a) Except as provided in paragraph (b), a statutory or home rule charter city, county, <br/>
<a id="pl.1.9"></a><var>1.9</var>town, or other political subdivision may pay to each eligible member of the National <br/>
<a id="pl.1.10"></a><var>1.10</var>Guard or other reserve component of the armed forces of the United States an amount <br/>
<a id="pl.1.11"></a><var>1.11</var>equal to the difference between the member's basic base  active duty military salary and the <br/>
<a id="pl.1.12"></a><var>1.12</var>salary the member would be paid as an active political subdivision employee, including <br/>
<a id="pl.1.13"></a><var>1.13</var>any adjustments the member would have received if not on leave of absence. This <br/>
<a id="pl.1.14"></a><var>1.14</var>payment may be made only to a person whose basic base  active duty military salary is less <br/>
<a id="pl.1.15"></a><var>1.15</var>than the salary the person would be paid as an active political subdivision employee. Back <br/>
<a id="pl.1.16"></a><var>1.16</var>pay authorized by this section may be paid in a lump sum. Payment under this section <br/>
<a id="pl.1.17"></a><var>1.17</var>must not extend beyond four years from the date the employee reported for active service, <br/>
<a id="pl.1.18"></a><var>1.18</var>plus any additional time the employee may be legally required to serve.<br/>
<a id="pl.1.19"></a><var>1.19</var>(b) Subject to the limits under paragraph (g), each school district shall pay to each <br/>
<a id="pl.1.20"></a><var>1.20</var>eligible member of the National Guard or other reserve component of the armed forces of <br/>
<a id="pl.1.21"></a><var>1.21</var>the United States an amount equal to the difference between the member's basic base  active <br/>
<a id="pl.1.22"></a><var>1.22</var>duty military salary and the salary the member would be paid as an active school district <br/>
<a id="pl.1.23"></a><var>1.23</var>employee, including any adjustments the member would have received if not on leave of <br/>
<a id="pl.1.24"></a><var>1.24</var>absence. The pay differential must be based on a comparison between the member's daily <br/>
<a id="pl.2.1"></a><var>2.1</var>base rate of active duty pay, calculated by dividing the member's base military monthly <br/>
<a id="pl.2.2"></a><var>2.2</var>salary by the number of paid days in the month, and the member's daily rate of pay for the <br/>
<a id="pl.2.3"></a><var>2.3</var>member's school district salary, calculated by dividing the member's total school district <br/>
<a id="pl.2.4"></a><var>2.4</var>salary by the number of contract days. The member's salary as a school district employee <br/>
<a id="pl.2.5"></a><var>2.5</var>must include the member's basic salary and any additional salary the member earns from <br/>
<a id="pl.2.6"></a><var>2.6</var>the school district for cocurricular and extracurricular activities. The differential payment <br/>
<a id="pl.2.7"></a><var>2.7</var>under this paragraph must be the difference between the daily base rates of military pay <br/>
<a id="pl.2.8"></a><var>2.8</var>times the number of school district contract days the member misses because of military <br/>
<a id="pl.2.9"></a><var>2.9</var>active duty. This payment may be made only to a person whose basic active duty military <br/>
<a id="pl.2.10"></a><var>2.10</var>salary daily base rate of active duty pay is less than the salary the person would be paid <br/>
<a id="pl.2.11"></a><var>2.11</var>person's daily rate of pay as an active school district employee. Payments may be made at <br/>
<a id="pl.2.12"></a><var>2.12</var>the intervals at which the member received pay as a school district employee. Payment <br/>
<a id="pl.2.13"></a><var>2.13</var>under this section must not extend beyond four years from the date the employee reported <br/>
<a id="pl.2.14"></a><var>2.14</var>for active service, plus any additional time the employee may be legally required to serve.<br/>
<a id="pl.2.15"></a><var>2.15</var>(c) An eligible member of the reserve components of the armed forces of the United <br/>
<a id="pl.2.16"></a><var>2.16</var>States is a reservist or National Guard member who was an employee of a political <br/>
<a id="pl.2.17"></a><var>2.17</var>subdivision at the time the member reported for active service on or after May 29, 2003, <br/>
<a id="pl.2.18"></a><var>2.18</var>or who is on active service on May 29, 2003.<br/>
<a id="pl.2.19"></a><var>2.19</var>(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a <br/>
<a id="pl.2.20"></a><var>2.20</var>statutory or home rule charter city, county, town, or other political subdivision has total <br/>
<a id="pl.2.21"></a><var>2.21</var>discretion regarding employee benefit continuation for a member who reports for active <br/>
<a id="pl.2.22"></a><var>2.22</var>service and the terms and conditions of any benefit.<br/>
<a id="pl.2.23"></a><var>2.23</var>(e) A school district must continue the employee's enrollment in health and dental <br/>
<a id="pl.2.24"></a><var>2.24</var>coverage, and the employer contribution toward that coverage, until the employee is <br/>
<a id="pl.2.25"></a><var>2.25</var>covered by health and dental coverage provided by the armed forces. If the employee had <br/>
<a id="pl.2.26"></a><var>2.26</var>elected dependent coverage for health or dental coverage as of the time that the employee <br/>
<a id="pl.2.27"></a><var>2.27</var>reported for active service, a school district must offer the employee the option to continue <br/>
<a id="pl.2.28"></a><var>2.28</var>the dependent coverage at the employee's own expense. A school district must permit <br/>
<a id="pl.2.29"></a><var>2.29</var>the employee to continue participating in any pretax account in which the employee <br/>
<a id="pl.2.30"></a><var>2.30</var>participated when the employee reported for active service, to the extent of employee pay <br/>
<a id="pl.2.31"></a><var>2.31</var>available for that purpose.<br/>
<a id="pl.2.32"></a><var>2.32</var>(f) For purposes of this section, "active service" has the meaning given in section <br/>
<statute_ref><a id="pl.2.33"></a><var>2.33</var>190.05, subdivision 5
         </statute_ref>, but excludes service performed exclusively for purposes of:<br/>
<a id="pl.2.34"></a><var>2.34</var>(1) basic combat training, advanced individual training, annual training, and periodic <br/>
<a id="pl.2.35"></a><var>2.35</var>inactive duty training;<br/>
<a id="pl.2.36"></a><var>2.36</var>(2) special training periodically made available to reserve members; and<br/>
<a id="pl.3.1"></a><var>3.1</var>(3) service performed in accordance with section 
         <statute_ref>190.08, subdivision 3</statute_ref>.<br/>
<a id="pl.3.2"></a><var>3.2</var>(g) A school district making payments under paragraph (b) shall place a sum equal <br/>
<a id="pl.3.3"></a><var>3.3</var>to any difference between the amount of salary that would have been paid to the employee <br/>
<a id="pl.3.4"></a><var>3.4</var>who is receiving the payments and the amount of salary being paid to substitutes for <br/>
<a id="pl.3.5"></a><var>3.5</var>that employee into a special fund that must be used to pay or partially pay the deployed <br/>
<a id="pl.3.6"></a><var>3.6</var>employee's payments under paragraph (b). A school district is required to pay only this <br/>
<a id="pl.3.7"></a><var>3.7</var>amount to the deployed school district employee.<br/>
<a id="pl.3.8"></a><var>3.8</var><b>EFFECTIVE DATE.</b>This section is effective the day following final enactment <br/>
<a id="pl.3.9"></a><var>3.9</var>and applies to members of the National Guard and other reserve components of the United <br/>
<a id="pl.3.10"></a><var>3.10</var>States armed forces serving in active military service on or after that date.<br/>