1.1A bill for an act1.2relating to veterans; clarifying the circumstances under which pay differential 1.3applies for deployed National Guard and reserve members who are teachers;1.4amending Minnesota Statutes 2008, section 471.975.1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:1.6    Section 1. Minnesota Statutes 2008, section 471.975, is amended to read:1.7471.975 MAY PAY DIFFERENTIAL OF RESERVE ON ACTIVE DUTY.1.8(a) Except as provided in paragraph (b), a statutory or home rule charter city, county, 1.9town, or other political subdivision may pay to each eligible member of the National 1.10Guard or other reserve component of the armed forces of the United States an amount 1.11equal to the difference between the member's basicbase  active duty military salary and the 1.12salary the member would be paid as an active political subdivision employee, including 1.13any adjustments the member would have received if not on leave of absence. This 1.14payment may be made only to a person whose basicbase  active duty military salary is less 1.15than the salary the person would be paid as an active political subdivision employee. Back 1.16pay authorized by this section may be paid in a lump sum. Payment under this section 1.17must not extend beyond four years from the date the employee reported for active service, 1.18plus any additional time the employee may be legally required to serve.1.19(b) Subject to the limits under paragraph (g), each school district shall pay to each 1.20eligible member of the National Guard or other reserve component of the armed forces of 1.21the United States an amount equal to the difference between the member's basicbase  active 1.22duty military salary and the salary the member would be paid as an active school district 1.23employee, including any adjustments the member would have received if not on leave of 1.24absence. The pay differential must be based on a comparison between the member's daily 2.1base rate of active duty pay, calculated by dividing the member's base military monthly 2.2salary by the number of paid days in the month, and the member's daily rate of pay for the 2.3member's school district salary, calculated by dividing the member's total school district 2.4salary by the number of contract days. The member's salary as a school district employee 2.5must include the member's basic salary and any additional salary the member earns from 2.6the school district for cocurricular and extracurricular activities. The differential payment 2.7under this paragraph must be the difference between the daily base rates of military pay 2.8times the number of school district contract days the member misses because of military 2.9active duty. This payment may be made only to a person whose basic active duty military 2.10salary daily base rate of active duty pay is less than the salary the person would be paid2.11person's daily rate of pay as an active school district employee. Payments may be made at 2.12the intervals at which the member received pay as a school district employee. Payment 2.13under this section must not extend beyond four years from the date the employee reported 2.14for active service, plus any additional time the employee may be legally required to serve.2.15(c) An eligible member of the reserve components of the armed forces of the United 2.16States is a reservist or National Guard member who was an employee of a political 2.17subdivision at the time the member reported for active service on or after May 29, 2003, 2.18or who is on active service on May 29, 2003.2.19(d) Except as provided in paragraph (e) and elsewhere in Minnesota Statutes, a 2.20statutory or home rule charter city, county, town, or other political subdivision has total 2.21discretion regarding employee benefit continuation for a member who reports for active 2.22service and the terms and conditions of any benefit.2.23(e) A school district must continue the employee's enrollment in health and dental 2.24coverage, and the employer contribution toward that coverage, until the employee is 2.25covered by health and dental coverage provided by the armed forces. If the employee had 2.26elected dependent coverage for health or dental coverage as of the time that the employee 2.27reported for active service, a school district must offer the employee the option to continue 2.28the dependent coverage at the employee's own expense. A school district must permit 2.29the employee to continue participating in any pretax account in which the employee 2.30participated when the employee reported for active service, to the extent of employee pay 2.31available for that purpose.2.32(f) For purposes of this section, "active service" has the meaning given in section 2.33190.05, subdivision 5
         , but excludes service performed exclusively for purposes of:2.34(1) basic combat training, advanced individual training, annual training, and periodic 2.35inactive duty training;2.36(2) special training periodically made available to reserve members; and3.1(3) service performed in accordance with section 
         190.08, subdivision 3.3.2(g) A school district making payments under paragraph (b) shall place a sum equal 3.3to any difference between the amount of salary that would have been paid to the employee 3.4who is receiving the payments and the amount of salary being paid to substitutes for 3.5that employee into a special fund that must be used to pay or partially pay the deployed 3.6employee's payments under paragraph (b). A school district is required to pay only this 3.7amount to the deployed school district employee.3.8EFFECTIVE DATE.This section is effective the day following final enactment 3.9and applies to members of the National Guard and other reserve components of the United 3.10States armed forces serving in active military service on or after that date.