1.1 	A bill for an act
1.2 	relating to retirement; former local police and paid fire relief associations; 
1.3 	revising and repealing various statutes to reflect the recent mergers of local 
1.4 	police and salaried firefighter relief associations and consolidation accounts 
1.5 	with the public employees police and fire retirement plan;amending Minnesota 
1.6 	Statutes 2012, sections 6.495, subdivisions 1, 3; 6.67; 13D.01, subdivision 1; 
1.7 	69.011, subdivisions 1, 2, 3, 4; 69.021, subdivisions 1, 2, 3, 4, 5, 7, 7a, 8, 9, 
1.8 	10, 11; 69.031, subdivisions 1, 3, 5; 69.041; 69.051, subdivisions 1, 1a, 1b, 2, 
1.9 	3, 4; 69.33; 69.77, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13; 69.771, 
1.10 	subdivision 1; 69.80; 275.70, subdivision 5; 297I.10, subdivision 1; 345.381; 
1.11 	353.01, subdivisions 2a, 2b, 6, 10, 16; 353.64, subdivision 1a; 353.659; 353.665, 
1.12 	subdivisions 1, 5, 8; 353.71, subdivision 1; 356.20, subdivision 2; 356.215, 
1.13 	subdivision 18; 356.216; 356.219, subdivisions 1, 2, 8; 356.406, subdivision 
1.14 	1; 356A.01, subdivision 19; 356A.06, subdivision 4; 356A.07, subdivision 2; 
1.15 	423A.02, subdivisions 1, 1b, 2, 3, 3a, 4, 5; 424A.001, subdivision 4; 424A.02, 
1.16 	subdivision 9; 475.52, subdivision 6; repealing Minnesota Statutes 2012, sections 
1.17 	69.021, subdivision 6; 353.64, subdivision 3; 353.665, subdivisions 2, 3, 4, 6, 
1.18 	7, 9, 10; 353.667; 353.668; 353.669; 353.6691; 353A.01; 353A.02; 353A.03; 
1.19 	353A.04; 353A.05; 353A.06; 353A.07; 353A.08; 353A.081; 353A.083; 
1.20 	353A.09; 353A.10; 353B.01; 353B.02; 353B.03; 353B.04; 353B.05; 353B.06; 
1.21 	353B.07; 353B.08; 353B.09; 353B.10; 353B.11; 353B.12; 353B.13; 353B.14; 
1.22 	423A.01; 423A.02, subdivision 1a; 423A.04; 423A.05; 423A.07; 423A.10; 
1.23 	423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171; 
1.24 	423A.18; 423A.19; 423A.20; 423A.21; 423A.22.
1.25 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.26 	Section 1. Minnesota Statutes 2012, section 6.495, subdivision 1, is amended to read:
1.27 		Subdivision 1.Audit and examinations. All powers and duties conferred and 
1.28 	imposed upon the state auditor with respect to state, county, and first-class city officers, 
1.29 	institutions, and property are hereby extended to the various fire and police relief 
1.30 	associations in the state. The state auditor shall annually audit the special and general 
1.31 	funds of the relief association or, at the request of the board of trustees or the municipality, 
1.32 	the state auditor may contract for an annual audit by a certified public accountant. The 
2.1 	state auditor may determine that an annual audit is not necessary, in which case the state 
2.2 	auditor shall develop a plan for examination of unaudited relief associations, and shall 
2.3 	prescribe suitable systems of accounts and budgeting, and forms, books, and instructions 
2.4 	concerning the same.
2.5 	Copies of the written report of the state auditor on the financial condition and 
2.6 	accounts of the relief association shallmust be filed with the board of trustees of the 
2.7 	relief association and the governing body of the municipality associated with the relief 
2.8 	association. If the report discloses malfeasance, misfeasance, or nonfeasance with regard 
2.9 	to relief association funds, copies thereof shallmust be filed with the city attorney or county 
2.10 	attorney in the city or county in which the relief association is located, and these officials of 
2.11 	the law shall institute proceedings, civil or criminal, as the law and public interest require.

2.12 	Sec. 2. Minnesota Statutes 2012, section 6.495, subdivision 3, is amended to read:
2.13 		Subd. 3.Report to commissioner of revenue. The state auditor shall file with 
2.14 	the commissioner of revenue a financial compliance report certifying for each relief 
2.15 	association:
2.16 	(1) the completion of the annual financial report required pursuant tounder section 
2.17 	69.051 and the auditing or certification of those financial reports pursuant tounder 
2.18 	subdivision 1; and
2.19 	(2) the receipt of any actuarial valuations required pursuant tounder section 69.77 
2.20 	or69.773 or sections 31 to 43.

2.21 	Sec. 3. Minnesota Statutes 2012, section 6.67, is amended to read:
2.22 	6.67 PUBLIC ACCOUNTANTS; REPORT OF POSSIBLE MISCONDUCT.
2.23 	Whenever a public accountant in the course of auditing the books and affairs of a 
2.24 	political subdivision or a local public pension plan governed by section 69.77, sections 
2.25 	69.771 to 69.775, or chapter 354A or 424A, or sections 31 to 43, discovers evidence 
2.26 	pointing to nonfeasance, misfeasance, or malfeasance, on the part of an officer or 
2.27 	employee in the conduct of duties and affairs, the public accountant shall promptly make 
2.28 	a report of such discovery to the state auditor and the county attorney of the county in 
2.29 	which the governmental unit is situated and the public accountant shall also furnish a 
2.30 	copy of the report of audit upon completion to said officers. The county attorney shall 
2.31 	act on such report in the same manner as required by law for reports made to the county 
2.32 	attorney by the state auditor.

2.33 	Sec. 4. Minnesota Statutes 2012, section 13D.01, subdivision 1, is amended to read:
3.1 		Subdivision 1.In executive branch, local government. All meetings, including 
3.2 	executive sessions, must be open to the public
3.3 	(a) of a state
3.4 	(1) agency,
3.5 	(2) board,
3.6 	(3) commission, or
3.7 	(4) department,
3.8 	when required or permitted by law to transact public business in a meeting;
3.9 	(b) of the governing body of a
3.10 	(1) school district however organized,
3.11 	(2) unorganized territory,
3.12 	(3) county,
3.13 	(4) statutory or home rule charter city,
3.14 	(5) town, or
3.15 	(6) other public body;
3.16 	(c) of any
3.17 	(1) committee,
3.18 	(2) subcommittee,
3.19 	(3) board,
3.20 	(4) department, or
3.21 	(5) commission,
3.22 	of a public body; and
3.23 	(d) of the governing body or a committee of:
3.24 	(1) a statewide public pension plan defined in section 356A.01, subdivision 24; or
3.25 	(2) a local public pension plan governed by section 69.77, sections 69.771 to 69.775, 
3.26 	or chapter 354A, or sections 31 to 43.

3.27 	Sec. 5. Minnesota Statutes 2012, section 69.011, subdivision 1, is amended to read:
3.28 		Subdivision 1.Definitions. Unless the language or context clearly indicates that 
3.29 	a different meaning is intended, the following words and terms, for the purposes of this 
3.30 	chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
3.31 	(a) "Commissioner" means the commissioner of revenue.
3.32 	(b) "Municipality" means:
3.33 	(1) a home rule charter or statutory city;
3.34 	(2) an organized town;
3.35 	(3) a park district subject to chapter 398;
4.1 	(4) the University of Minnesota;
4.2 	(5) for purposes of the fire state aid program only, an American Indian tribal 
4.3 	government entity located within a federally recognized American Indian reservation;
4.4 	(6) for purposes of the police state aid program only, an American Indian tribal 
4.5 	government with a tribal police department which exercises state arrest powers under 
4.6 	section 626.90, 626.91, 626.92, or 626.93;
4.7 	(7) for purposes of the police state aid program only, the Metropolitan Airports 
4.8 	Commission; and
4.9 	(8) for purposes of the police state aid program only, the Department of Natural 
4.10 	Resources and the Department of Public Safety with respect to peace officers covered 
4.11 	under chapter 352B.
4.12 	(c) "Minnesota Firetown Premium Report" means a form prescribed by the 
4.13 	commissioner containing space for reporting by insurers of fire, lightning, sprinkler 
4.14 	leakage and extended coverage premiums received upon risks located or to be performed 
4.15 	in this state less return premiums and dividends.
4.16 	(d) "Firetown" means the area serviced by any municipality having a qualified fire 
4.17 	department or a qualified incorporated fire department having a subsidiary volunteer 
4.18 	firefighters' relief association.
4.19 	(e) "Market value" means latest available market value of all property in a taxing 
4.20 	jurisdiction, whether the property is subject to taxation, or exempt from ad valorem 
4.21 	taxation obtained from information which appears on abstracts filed with the commissioner 
4.22 	of revenue or equalized by the State Board of Equalization.
4.23 	(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 
4.24 	commissioner for reporting by each fire and casualty insurer of all premiums received 
4.25 	upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 
4.26 	during the preceding calendar year, with reference to insurance written for insuring against 
4.27 	the perils contained in auto insurance coverages as reported in the Minnesota business 
4.28 	schedule of the annual financial statement which each insurer is required to file with 
4.29 	the commissioner in accordance with the governing laws or rules less return premiums 
4.30 	and dividends.
4.31 	(g) "Peace officer" means any person:
4.32 	(1) whose primary source of income derived from wages is from direct employment 
4.33 	by a municipality or county as a law enforcement officer on a full-time basis of not less 
4.34 	than 30 hours per week;
4.35 	(2) who has been employed for a minimum of six months prior to December 31 
4.36 	preceding the date of the current year's certification under subdivision 2, clause (b);
5.1 	(3) who is sworn to enforce the general criminal laws of the state and local ordinances;
5.2 	(4) who is licensed by the Peace Officers Standards and Training Board and is 
5.3 	authorized to arrest with a warrant; and
5.4 	(5) who is a member of the State Patrol retirement plan or the public employees 
5.5 	police and fire fund.
5.6 	(h) "Full-time equivalent number of peace officers providing contract service" means 
5.7 	the integral or fractional number of peace officers which would be necessary to provide 
5.8 	the contract service if all peace officers providing service were employed on a full-time 
5.9 	basis as defined by the employing unit and the municipality receiving the contract service.
5.10 	(i) "Retirement benefits other than a service pension" means any disbursement 
5.11 	authorized under section 424A.05, subdivision 3, clauses (3) and (4).
5.12 	(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
5.13 	(1) for the police state aid program and police relief association financial reports:
5.14 	(i) the person who was elected or appointed to the specified position or, in the 
5.15 	absence of the person, another person who is designated by the applicable governing body;
5.16 	(ii) in a park district, the secretary of the board of park district commissioners;
5.17 	(iii) in the case of the University of Minnesota, the official designated by the Board 
5.18 	of Regents;
5.19 	(iv) for the Metropolitan Airports Commission, the person designated by the 
5.20 	commission;
5.21 	(v) for the Department of Natural Resources or the Department of Public Safety, the 
5.22 	respective commissioner;
5.23 	(vi) for a tribal police department which exercises state arrest powers under section 
5.24 	626.90, 626.91, 626.92, or 626.93, the person designated by the applicable American 
5.25 	Indian tribal government; and
5.26 	(2) for the fire state aid program and fire relief association financial reports, the 
5.27 	person who was elected or appointed to the specified position, or, for governmental 
5.28 	entities other than counties, if the governing body of the governmental entity designates 
5.29 	the position to perform the function, the chief financial official of the governmental entity 
5.30 	or the chief administrative official of the governmental entity.
5.31 	(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the 
5.32 	retirement plan established by chapter 353G.

5.33 	Sec. 6. Minnesota Statutes 2012, section 69.011, subdivision 2, is amended to read:
5.34 		Subd. 2.Qualification for fire or police state aid. (a) Unless retirement coverage 
5.35 	is provided by the voluntary statewide lump-sum volunteer firefighter retirement plan, in 
6.1 	order to qualify to receive fire state aid, on or before March 15 annually, in conjunction 
6.2 	with the financial report required pursuant to section 69.051, the clerk of each municipality 
6.3 	having a duly organized fire department as provided in subdivision 4, or the secretary of 
6.4 	each independent nonprofit firefighting corporation having a subsidiary incorporated 
6.5 	firefighters' relief association, whichever is applicable, and the fire chief, shall jointly 
6.6 	certify the existence of the municipal fire department or of the independent nonprofit 
6.7 	firefighting corporation, whichever is applicable, which meets the minimum qualification 
6.8 	requirements set forth in this subdivision, and the fire personnel and equipment of the 
6.9 	municipal fire department or the independent nonprofit firefighting corporation as of the 
6.10 	preceding December 31.
6.11 	(b) Where retirement coverage is provided by the voluntary statewide lump-sum 
6.12 	volunteer firefighter retirement plan, in order to qualify to receive fire state aid, on or 
6.13 	before March 15, annually, the executive director of the Public Employees Retirement 
6.14 	Association shall certify the existence of that coverage for each municipality and the 
6.15 	municipal clerk or independent nonprofit firefighting corporation secretary, whichever 
6.16 	applies, and the applicable fire chief shall certify the fire personnel and fire department 
6.17 	equipment as of the preceding December 31.
6.18 	(c) Certification must be made to the commissioner on a form prescribed by the 
6.19 	commissioner and shall include any other facts the commissioner may require. The 
6.20 	certification must be made to the commissioner in duplicate. Each copy of the certificate 
6.21 	must be duly executed and is deemed to be an original. The commissioner shall forward 
6.22 	one copy to the auditor of the county wherein the fire department is located and shall 
6.23 	retain one copy.
6.24 	(d) On or before March 15 annually the clerk of each municipality having a duly 
6.25 	organized police department and having a duly incorporated relief association shall certify 
6.26 	that fact to the county auditor of the county where the police department is located and to 
6.27 	the commissioner on a form prescribed by the commissioner together with the other facts 
6.28 	the commissioner or auditor may require.
6.29 	(e)(c) Except as provided in subdivision 2b, on or before March 15 annually, in 
6.30 	order to qualify to receive police state aid, the clerk of each municipality and the auditor of 
6.31 	each county employing one or more peace officers as defined in subdivision 1, clause (g), 
6.32 	shall certify the number of such peace officers to the commissioner on forms prescribed by 
6.33 	the commissioner. Credit for officers employed less than a full year must be apportioned. 
6.34 	Each full month of employment of a qualifying officer during the calendar year entitles the 
6.35 	employing municipality or county to credit for 1/12 of the payment for employment of a 
6.36 	peace officer for the entire year. For purposes of sections 69.011 to 69.051, employment 
7.1 	of a peace officer commences when the peace officer is entered on the payroll of the 
7.2 	respective municipal police department or county sheriff's department. No peace officer 
7.3 	may be included in the certification of the number of peace officers by more than one 
7.4 	municipality or countyemploying unit for the same month.
7.5 	(d) A certification made under this subdivision must be filed with the commissioner, 
7.6 	must be made on a form prescribed by the commissioner, and must include any other facts 
7.7 	that the commissioner requires.

7.8 	Sec. 7. Minnesota Statutes 2012, section 69.011, subdivision 3, is amended to read:
7.9 		Subd. 3.Failure to file certificate deemed waiver. (a) If a certification required by 
7.10 	this section is not filed with the commissioner by the due date prescribed by this section, 
7.11 	the commissioner shall notify the county, the municipality, or the nonprofit firefighting 
7.12 	corporation that a portion or all of its current year aid will be forfeited if the certification 
7.13 	is not received within ten days.
7.14 	(b) The amount of aid forfeited is equal to the amount of state police aid or state fire 
7.15 	aid determined for the county, the municipality, or the nonprofit firefighting corporation 
7.16 	for the current year, multiplied by five percent for each week or fraction of a week that 
7.17 	this certification is late. The penalty willmust be computed beginning ten days after the 
7.18 	postmark date of the commissioner's notification as required under this subdivision. All 
7.19 	forfeited aid amounts revert to the general fund in the state treasury. Failure to receive the 
7.20 	certificate form cannotmay not be used as a defense for not filing a failure to file.

7.21 	Sec. 8. Minnesota Statutes 2012, section 69.011, subdivision 4, is amended to read:
7.22 		Subd. 4.Qualification for fire state aid. Any(a) A municipality in this state 
7.23 	qualifies to receive fire state aid if it meets the general requirements of paragraph (b) and 
7.24 	if it meets the specific requirements of paragraph (c).
7.25 	(b) Minimum qualifications for fire state aid include the following:
7.26 	(1) having for more than one year an organized fire department and officially 
7.27 	established by the governing body of the municipality or an independent nonprofit 
7.28 	firefighting corporation created under the nonprofit corporation act of this state and 
7.29 	operating exclusively for firefighting purposes and providing retirement and relief benefits 
7.30 	to its members,; and
7.31 	(2) having a separate subsidiary incorporated firefighter's relief and pension
7.32 	 association providing retirement and relief benefits, or participating in the voluntary 
7.33 	statewide lump-sum volunteer firefighter retirement plan, may qualify to receive state aid 
8.1 	if it meets the followingor, if a paid fire department, having retirement coverage by the 
8.2 	public employees police and fire retirement plan.
8.3 	(c) Minimum requirements for fire state aid also include the following or their 
8.4 	equivalent as determined by the state fire marshal by July 1, 1972:
8.5 	(a)(1) having ten paid or volunteer firefighters including a fire chief and assistant 
8.6 	fire chief, and;
8.7 	(b)(2) having regular scheduled meetings and frequent drills including instructions 
8.8 	in firefighting tactics and in the use, care, and operation of all fire apparatus and 
8.9 	equipment, and;
8.10 	(c)(3) having a motorized fire truck equipped with a motorized pump, 250 gallon or 
8.11 	larger water tank, 300 feet of one inch or larger fire hose in two lines with combination 
8.12 	spray and straight stream nozzles, five-gallon hand pumps--tank extinguisher or equivalent, 
8.13 	dry chemical extinguisher or equivalent, ladders, extension ladders, pike poles, crow bars, 
8.14 	axes, lanterns, fire coats, helmets, and boots, and;
8.15 	(d)(4) having apparatus suitably housed in a building of good construction with 
8.16 	facilities for care of hose and equipment, and;
8.17 	(e)(5) having a reliable and adequate method of receiving fire alarms by telephone 
8.18 	or with electric siren and suitable means of sounding an alarm, and;
8.19 	(f)(6) if response is to be provided outside the corporate limits of the municipality 
8.20 	wherein the fire department is located, the municipality hashaving another piece of 
8.21 	motorized apparatus to make the response,; and
8.22 	(g)(7) meeting other requirements that the commissioner establishes by rule.

8.23 	Sec. 9. Minnesota Statutes 2012, section 69.021, subdivision 1, is amended to read:
8.24 		Subdivision 1.Minnesota Firetown Premium Report and Minnesota Aid to 
8.25 	Police Premium Report. The commissioner shall, at the time of mailing tax forms, 
8.26 	send blank copies of the Minnesota Firetown Premium Report and when applicable the 
8.27 	Minnesota Aid to Police Premium Report to each insurer, including township and farmers 
8.28 	mutual insurance companies licensed to write insurance as described in section 69.011, 
8.29 	subdivision 1, clauses (c) and (f) in this state. These reports shallmust contain space 
8.30 	for the insurers name, address, gross premiums less return premiums, dividends, net 
8.31 	premiums, certification and other facts that the commissioner may require.

8.32 	Sec. 10. Minnesota Statutes 2012, section 69.021, subdivision 2, is amended to read:
9.1 		Subd. 2.Report of premiums. (a) Each insurer, including township and farmers 
9.2 	mutual insurers where applicable, shall return to the commissioner the reports described in 
9.3 	subdivision 1 certified by its secretary and president or chief financial officer.
9.4 	(b) The Minnesota Firetown Premium Report shallmust contain a true and accurate 
9.5 	statement of the total premium for all gross direct fire, lightning, sprinkler leakage, and 
9.6 	extended coverage insurance of all domestic mutual insurers and the total premiums for 
9.7 	all gross direct fire, lightning, sprinkler leakage and extended coverage insurance of all 
9.8 	other insurers, less return premiums and dividends received by them on that business 
9.9 	written or done during the preceding calendar year upon property located within the state 
9.10 	or brought into the state for temporary use. The fire and extended coverage portion of 
9.11 	multiperil and multiple peril package premiums and all other combination premiums shall
9.12 	must be determined by applying percentages determined by the commissioner or by rating 
9.13 	bureaus recognized by the commissioner.
9.14 	(c) The Minnesota Aid to Police Premium Report shallmust contain a true and 
9.15 	accurate statement of the total premiums, less return premiums and dividends, on all direct 
9.16 	business received by such insurer in this state, or by its agents for it, in cash or otherwise, 
9.17 	during the preceding calendar year, with reference to insurance written for perils described 
9.18 	in section 69.011, subdivision 1, clause (f).

9.19 	Sec. 11. Minnesota Statutes 2012, section 69.021, subdivision 3, is amended to read:
9.20 		Subd. 3.Penalty for fraudulent, incorrect, incomplete returns and late filing of 
9.21 	report. (a) When it appears to the commissioner that any insurer has made an incomplete or 
9.22 	inaccurate report, the commissioner shall return the report and demand that a complete and 
9.23 	accurate report be filed. If the insurer fails to file a report on or before March 1, annually, 
9.24 	the insurer shall beis liable and shall pay $25 for each seven days delinquent, or fraction 
9.25 	thereof, that the report is delinquent, but not to exceed $200. If the insurer fails to file a 
9.26 	corrected report within 30 days after demand, the insurer is liable for the penalties provided 
9.27 	in this subdivisionparagraph (b) or (c) for knowingly filing an inaccurate or false report.
9.28 	(b) Any insurer whowhich knowingly makes and files an inaccurate or false report 
9.29 	shall beis liable to a fine in an amount of not less than $25 nor more than $1,000, as 
9.30 	determined by the commissioner, and additionally the commissioner of commerce may 
9.31 	revoke the insurer's certificate of authority.
9.32 	(c) Any person whose duty it is to make the report who fails or refuses to make it 
9.33 	within 30 days after notification by the commissioner shall be fined an amount of not 
9.34 	more than $1,000.
10.1 	(d) Failure of the insurer to receive a reporting form shalldoes not excuse the insurer 
10.2 	from filing the report.

10.3 	Sec. 12. Minnesota Statutes 2012, section 69.021, subdivision 4, is amended to read:
10.4 		Subd. 4.Determination of qualified state aid recipients; certification to 
10.5 	commissioner of management and budget. (a) The commissioner shall determine 
10.6 	which municipalities and independent nonprofit firefighting corporations are qualified to 
10.7 	receive fire state aid directly or are qualified to receive the benefit of fire state aid paid 
10.8 	to the voluntary statewide lump-sum volunteer firefighter retirement plan and which 
10.9 	municipalities and counties are qualified to receive police state aid.
10.10 	(b) The commissioner shall determine qualification for state aid upon receipt of:
10.11 	(1) the fire department personnel and equipment certification or the police department 
10.12 	and qualified peace officers certificate, whichever applies, required under section 69.011;
10.13 	(2) the financial compliance report required under section 6.495, subdivision 3, if 
10.14 	applicable; and
10.15 	(3) any other relevant information which comes to the attention of the commissioner.
10.16 	(c) Upon completion of the determination, on or before October 1, the commissioner 
10.17 	shall calculate the amount of:
10.18 	(1) the police state aid which each county or municipality is to receive under 
10.19 	subdivisions 5, 6, 7a, and 10; and
10.20 	(2) the fire state aid which each municipality or nonprofit firefighting corporation 
10.21 	is to receive under subdivisions 5 and 7.
10.22 	(d) The commissioner shall certify to the commissioner of management and budget 
10.23 	the name of each county or municipality, and the amount of state aid which each county or 
10.24 	municipality is to receive, in the case of police state aid. The commissioner shall certify to 
10.25 	the commissioner of management and budget the name of each municipality or independent 
10.26 	nonprofit firefighting corporation and the amount of state aid which each municipality 
10.27 	or independent nonprofit firefighting corporation is to receive directly or the amount of 
10.28 	state aid which the voluntary statewide lump-sum volunteer firefighter retirement plan is 
10.29 	qualified to receive on behalf of the municipality or corporation, in the case of fire state aid.

10.30 	Sec. 13. Minnesota Statutes 2012, section 69.021, subdivision 5, is amended to read:
10.31 		Subd. 5.Calculation of state aid. (a) The amount of fire state aid available for 
10.32 	apportionment, before the addition of the minimum fire state aid allocation amount under 
10.33 	subdivision 7, is equal to 107 percent of the amount of premium taxes paid to the state 
10.34 	upon the fire, lightning, sprinkler leakage, and extended coverage premiums reported to 
11.1 	the commissioner by insurers on the Minnesota Firetown Premium Report. This amount 
11.2 	must be reduced by the amount required to pay the state auditor's costs and expenses of 
11.3 	the audits or exams of the firefighters relief associations.
11.4 	The total amount for apportionment in respect to fire state aid must not be less than 
11.5 	two percent of the premiums reported to the commissioner by insurers on the Minnesota 
11.6 	Firetown Premium Report after subtracting the following amounts:
11.7 	(1) the amount required to pay the state auditor's costs and expenses of the audits or 
11.8 	exams of the firefighters relief associations; and
11.9 	(2) one percent of the premiums reported by town and farmers' mutual insurance 
11.10 	companies and mutual property and casualty companies with total assets of $5,000,000 or 
11.11 	less.
11.12 	(b) The total amount for apportionment as police state aid is equal to 104 percent 
11.13 	of the amount of premium taxes paid to the state on the premiums reported to the 
11.14 	commissioner by insurers on the Minnesota Aid to Police Premium Report, reduced by 
11.15 	the amount required to pay the costs and expenses of the state auditor for audits or exams 
11.16 	of police relief associations. The total amount for apportionment in respect to the police 
11.17 	state aid program must not be less than two percent of the amount of premiums reported 
11.18 	to the commissioner by insurers on the Minnesota Aid to Police Premium Report after 
11.19 	subtracting the amount required to pay the state auditor's cost and expenses of the audits 
11.20 	or exams of the police relief associations.
11.21 	(c) The commissioner shall calculate the percentage of increase or decrease reflected 
11.22 	in the apportionment over or under the previous year's available state aid using the same 
11.23 	premiums as a basis for comparison.
11.24 	(d) In addition to the amount for apportionment of police state aid under paragraph 
11.25 	(b), each year $100,000 must be apportioned for police state aid. An amount sufficient to 
11.26 	pay this increase is annually appropriated from the general fund.

11.27 	Sec. 14. Minnesota Statutes 2012, section 69.021, subdivision 7, is amended to read:
11.28 		Subd. 7.Apportionment of fire state aid to municipalities and relief associations.
 11.29 	(a) The commissioner shall apportion the fire state aid relative to the premiums reported 
11.30 	on the Minnesota Firetown Premium Reports filed under this chapter to each municipality 
11.31 	and/or firefighters relief association qualified under section 69.011, subdivision 4.
11.32 	(b) The commissioner shall calculate an initial fire state aid allocation amount for each 
11.33 	municipality or fire department under paragraph (c) and, if applicable, a minimum fire state 
11.34 	aid allocation amount for each municipality or fire department under paragraph (d). The 
11.35 	municipality or fire department must receivebe apportioned the larger fire state aid amount.
12.1 	(c) The initial fire state aid allocation amount is the amount available for 
12.2 	apportionment as fire state aid under subdivision 5, without the inclusion of any additional 
12.3 	funding amount to support a minimum fire state aid amount under section 423A.02, 
12.4 	subdivision 3, allocated one-half in proportion to the population as shown in the last 
12.5 	official statewide federal census for each fire town and one-half in proportion to the market 
12.6 	value of each fire town, including (1) the market value of tax-exempt property and (2) the 
12.7 	market value of natural resources lands receiving in lieu payments under sections 477A.11 
12.8 	to 477A.14, but excluding the market value of minerals. In the case of incorporated or 
12.9 	municipal fire departments furnishing fire protection to other cities, towns, or townships 
12.10 	as evidenced by valid fire service contracts filed with the commissioner, the distribution 
12.11 	must be adjusted proportionately to take into consideration the crossover fire protection 
12.12 	service. Necessary adjustments must be made to subsequent apportionments. In the case 
12.13 	of municipalities or independent fire departments qualifying for the aid, the commissioner 
12.14 	shall calculate the state aid for the municipality or relief association on the basis of the 
12.15 	population and the market value of the area furnished fire protection service by the fire 
12.16 	department as evidenced by duly executed and valid fire service agreements filed with the 
12.17 	commissioner. If one or more fire departments are furnishing contracted fire service to a 
12.18 	city, town, or township, only the population and market value of the area served by each 
12.19 	fire department may be considered in calculating the state aid and the fire departments 
12.20 	furnishing service shall enter into an agreement apportioning among themselves the 
12.21 	percent of the population and the percent of the market value of each shared service area. 
12.22 	The agreement must be in writing and must be filed with the commissioner.
12.23 	(d) The minimum fire state aid allocation amount is the amount in addition to the 
12.24 	initial fire state allocation amount that is derived from any additional funding amount 
12.25 	to support a minimum fire state aid amount under section 423A.02, subdivision 3, and 
12.26 	allocated to municipalities with volunteer firefighters relief associations or covered by the 
12.27 	voluntary statewide lump-sum volunteer firefighter retirement plan based on the number 
12.28 	of active volunteer firefighters who are members of the relief association as reported 
12.29 	in the annual financial reporting for the calendar year 1993 to the Office of the State 
12.30 	Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities or 
12.31 	fire departments with volunteer firefighters relief associations receive in total at least a 
12.32 	minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 
12.33 	30 firefighters. If a relief association is established after calendar year 1993 and before 
12.34 	calendar year 2000, the number of active volunteer firefighters who are members of the 
12.35 	relief association as reported in the annual financial reporting for calendar year 1998 
12.36 	to the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, 
13.1 	shall be used in this determination. If a relief association is established after calendar 
13.2 	year 1999, the number of active volunteer firefighters who are members of the relief 
13.3 	association as reported in the first annual financial reporting submitted to the Office of 
13.4 	the State Auditor, but not to exceed 20 active volunteer firefighters, must be used in this 
13.5 	determination. If a relief association is terminated as a result of providing retirement 
13.6 	coverage for volunteer firefighters by the voluntary statewide lump-sum volunteer 
13.7 	firefighter retirement plan under chapter 353G, the number of active volunteer firefighters 
13.8 	of the municipality covered by the statewide plan as certified by the executive director of 
13.9 	the Public Employees Retirement Association to the commissioner and the state auditor, 
13.10 	but not to exceed 30 active firefighters, must be used in this determination.
13.11 	(e) Unless the firefighters of the applicable fire department are members of the 
13.12 	voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid must 
13.13 	be paid to the treasurer of the municipality where the fire department is located and the 
13.14 	treasurer of the municipality shall, within 30 days of receipt of the fire state aid, transmit 
13.15 	the aid to the relief association if the relief association has filed a financial report with the 
13.16 	treasurer of the municipality and has met all other statutory provisions pertaining to the 
13.17 	aid apportionment. If the firefighters of the applicable fire department are members of 
13.18 	the voluntary statewide lump-sum volunteer firefighter retirement plan, the fire state aid 
13.19 	must be paid to the executive director of the Public Employees Retirement Association 
13.20 	and deposited in the voluntary statewide lump-sum volunteer firefighter retirement fund.
13.21 	(f) The commissioner may make rules to permit the administration of the provisions 
13.22 	of this section.
13.23 	(g) Any adjustments needed to correct prior misallocations must be made to 
13.24 	subsequent fire state aid apportionments.

13.25 	Sec. 15. Minnesota Statutes 2012, section 69.021, subdivision 7a, is amended to read:
13.26 		Subd. 7a.Apportionment of police state aid. (a) Subject to the reduction provided 
13.27 	for under subdivision 10, the commissioner shall apportion the police state aid to each 
13.28 	municipality and, to theeach county, to the Department of Natural Resources, and to the 
13.29 	Department of Public Safety in the following manner:
13.30 	(1) for all municipalities maintaining police departments, counties, the Department 
13.31 	of Natural Resources, and the Department of Public Safety, the police state aid must be 
13.32 	distributed in proportion to the relationship that the total number of peace officers, as 
13.33 	determined under section 69.011, subdivision 1, clauseparagraph (g), and subdivision 
13.34 	2, clauseparagraph (b), employed by that employing unit for 12 calendar months and 
13.35 	the proportional or fractional number who were employed less than 12 months bears 
14.1 	to the total number of peace officers employed by all municipalities and, counties, the 
14.2 	Department of Natural Resources, and the Department of Public Safety, subject to any 
14.3 	reduction under subdivision 10;
14.4 	(2) for each municipality which contracts with the county for police service, a 
14.5 	proportionate amount of the state aid distributed to the county based on the full-time 
14.6 	equivalent number of peace officers providing contract service to that municipality must 
14.7 	be credited against the municipality's contract obligation; and
14.8 	(3) for each municipality which contracts with another municipality for police 
14.9 	service, a proportionate amount of the state aid distributed to the municipality providing 
14.10 	contract service based on the full-time equivalent number of peace officers providing 
14.11 	contract service to that municipality on a full-time equivalent basis must be credited 
14.12 	against the contract obligation of the municipality receiving contract service.
14.13 	(b) Any necessary additional adjustments must be made to subsequent police state 
14.14 	aid apportionments.

14.15 	Sec. 16. Minnesota Statutes 2012, section 69.021, subdivision 8, is amended to read:
14.16 		Subd. 8.Population and market value. (a) In computations relating to fire state aid 
14.17 	requiring the use of population figures, only official statewide federal census figures are 
14.18 	tomay be used. Increases or decreases in population disclosed by reason of any special 
14.19 	census must not be taken into consideration.
14.20 	(b) In calculations relating to fire state aid requiring the use of market value property 
14.21 	figures, only the latest available market value property figures may be used.

14.22 	Sec. 17. Minnesota Statutes 2012, section 69.021, subdivision 9, is amended to read:
14.23 		Subd. 9.Appeal. (a) In the event that a municipality, a county, a fire relief 
14.24 	association, a police relief association, the Department of Natural Resources, the 
14.25 	Department of Public Safety, or the voluntary statewide lump-sum volunteer firefighter 
14.26 	retirement plan, feels itself to be aggrieved, it may request the commissioner to review 
14.27 	and adjust the apportionment of funds within the county in the case of police state aid, or 
14.28 	within the state in the case of fire state aid.
14.29 	(b) The decision of the commissioner is subject to appeal, review, and adjustment 
14.30 	by the district court in the county in which the applicable municipality, fire department, 
14.31 	or police department is located or by the Ramsey County District Court with respect to 
14.32 	the Department of Natural Resources, the Department of Public Safety, or the voluntary 
14.33 	statewide lump-sum volunteer firefighter retirement plan.

15.1 	Sec. 18. Minnesota Statutes 2012, section 69.021, subdivision 10, is amended to read:
15.2 		Subd. 10.Reduction in police state aid apportionment. (a) The commissioner of 
15.3 	revenue shall reduce the apportionment of police state aid under subdivisions 5, paragraph 
15.4 	(b), 6, and 7a, for eligible employer units by the amount of any excess police state aid.
15.5 	(b) "Excess police state aid" is:
15.6 	(1) for counties and for municipalities in which police retirement coverage is 
15.7 	provided wholly by the public employees police and fire fund and all police officers are 
15.8 	members of the plan governed by sections 353.63 to 353.657, the amount in excess of the 
15.9 	employer's total prior calendar year obligation as defined in paragraph (c), as certified by 
15.10 	the executive director of the Public Employees Retirement Association;
15.11 	(2) for municipalities in which police retirement coverage is provided in part by the 
15.12 	public employees police and fire fund governed by sections 353.63 to 353.657 and in 
15.13 	part by a local police consolidation account governed by chapter 353A, and established 
15.14 	before March 2, 1999, for which the municipality declined merger under section 353.665, 
15.15 	subdivision 1, or established after March 1, 1999, the amount in excess of the employer's 
15.16 	total prior calendar year obligation as defined in paragraph (c), plus the amount of the 
15.17 	employer's total prior calendar year obligation under section 353A.09, subdivision 5, 
15.18 	paragraphs (a) and (b), as certified by the executive director of the Public Employees 
15.19 	Retirement Association;
15.20 	(3) for municipalities in which police retirement coverage is provided by the public 
15.21 	employees police and fire plan governed by sections 353.63 to 353.657, in which police 
15.22 	retirement coverage was provided by a police consolidation account under chapter 
15.23 	353A before July 1, 1999, and for which the municipality has an additional municipal 
15.24 	contribution under section 353.665, subdivision 8, paragraph (b), the amount in excess of 
15.25 	the employer's total prior calendar year obligation as defined in paragraph (c), plus the 
15.26 	amount of any additional municipal contribution under section 353.665, subdivision 8, 
15.27 	paragraph (b), until the year 2010, as certified by the executive director of the Public 
15.28 	Employees Retirement Association;
15.29 	(4)(2) for municipalities in which police retirement coverage is provided in part by 
15.30 	the public employees police and fire fund governed by sections 353.63 to 353.657 and in 
15.31 	part by a local police relief association governed by sections 69.77 and 423A.01 the cities 
15.32 	of Fairmont and Minneapolis, the amount in excess of the employer's total prior calendar 
15.33 	year obligation as defined in paragraph (c), as certified by the executive director of the 
15.34 	public employees retirement association, plus the amount of the financial requirements of 
15.35 	the relief association certified to the applicable municipality during the prior calendar year 
15.36 	under section 69.77, subdivisions 4 and 5, reduced by the amount of member contributions 
16.1 	deducted from the covered salary of the relief association during the prior calendar year 
16.2 	under section 69.77, subdivision 3, as certified by the chief administrative officer of the 
16.3 	applicable municipality any additional municipal contribution under section 353.668, 
16.4 	subdivision 6, or 353.669, subdivision 6;
16.5 	(5)(3) for the Metropolitan Airports Commission, the amount in excess of the 
16.6 	commission's total prior calendar year obligation as defined in paragraph (c), as certified 
16.7 	by the executive director of the Public Employees Retirement Association; and
16.8 	(6)(4) for the Department of Natural Resources and for the Department of Public 
16.9 	Safety, the amount in excess of the employer's total prior calendar year obligation under 
16.10 	section 352B.02, subdivision 1c, for plan members who are peace officers under section 
16.11 	69.011, subdivision 1, clause (g), as certified by the executive director of the Minnesota 
16.12 	State Retirement System.
16.13 	(c) The employer's total prior calendar year obligation with respect to the public 
16.14 	employees police and fire plan under paragraph (b), clause (1), is the total prior calendar 
16.15 	year obligation under section 353.65, subdivision 3, for police officers as defined in 
16.16 	section 353.64, subdivision 2, and the actual total prior calendar year obligation under 
16.17 	section 353.65, subdivision 3, for firefighters, as defined in section 353.64, subdivision 
16.18 	3, but not to exceed for those firefighters the applicable following amounts employer 
16.19 	calendar year amount:

16.20		Municipality
	Maximum Amount
		
16.21		Albert Lea
	$54,157.01
		
16.22		Anoka
	10,399.31
		
16.23		Apple Valley
	5,442.44
		
16.24		Austin
	49,864.73
		
16.25		Bemidji
	27,671.38
		
16.26		Brooklyn Center
	6,605.92
		
16.27		Brooklyn Park
	24,002.26
		
16.28		Burnsville
	15,956.00
		
16.29		Cloquet
	4,260.49
		
16.30		Coon Rapids
	39,920.00
		
16.31		Cottage Grove
	8,588.48
		
16.32		Crystal
	5,855.00
		
16.33		East Grand Forks
	51,009.88
		
16.34		Edina
	32,251.00
		
16.35		Elk River
	5,216.55
		
16.36		Ely
	13,584.16
		
16.37		Eveleth
	16,288.27
		
16.38		Fergus Falls
	6,742.00
		
16.39		Fridley
	33,420.64
		
17.1		Golden Valley
	11,744.61
		
17.2		Hastings
	16,561.00
		
17.3		Hopkins
	4,324.23
		
17.4		International Falls
	14,400.69
		
17.5		Lakeville
	782.35
		
17.6		Lino Lakes
	5,324.00
		
17.7		Little Falls
	7,889.41
		
17.8		Maple Grove
	6,707.54
		
17.9		Maplewood
	8,476.69
		
17.10		Minnetonka
	10,403.00
		
17.11		Montevideo
	1,307.66
		
17.12		Moorhead
	68,069.26
		
17.13		New Hope
	6,739.72
		
17.14		North St. Paul
	4,241.14
		
17.15		Northfield
	770.63
		
17.16		Owatonna
	37,292.67
		
17.17		Plymouth
	6,754.71
		
17.18		Red Wing
	3,504.01
		
17.19		Richfield
	53,757.96
		
17.20		Rosemount
	1,712.55
		
17.21		Roseville
	9,854.51
		
17.22		St. Anthony
	33,055.00
		
17.23		St. Louis Park
	53,643.11
		
17.24		Thief River Falls
	28,365.04
		
17.25		Virginia
	31,164.46
		
17.26		Waseca
	11,135.17
		
17.27		West St. Paul
	15,707.20
		
17.28		White Bear Lake
	6,521.04
		
17.29		Woodbury
	3,613.00
		
17.30		any other municipality
	0.00
		
17.31 	(d) The total amount of excess police state aid must be deposited in the excess 
17.32 	police state-aid account in the general fund, administered and distributed as provided 
17.33 	in subdivision 11.

17.34 	Sec. 19. Minnesota Statutes 2012, section 69.021, subdivision 11, is amended to read:
17.35 		Subd. 11.Excess police state-aid holding account. (a) The excess police state-aid 
17.36 	holding account is established in the general fund. The excess police state-aid holding 
17.37 	account must be administered by the commissioner.
17.38 	(b) Excess police state aid determined according to subdivision 10, must be 
17.39 	deposited annually in the excess police state-aid holding account.
18.1 	(c) From the balance in the excess police state-aid holding account, $900,000 must 
18.2 	be canceled annually to the general fund.
18.3 	(d) If a police officer stress reduction program is created by law and money is 
18.4 	appropriated for that program, an amount equal to that appropriation must be transferred 
18.5 	to the administrator of that program from the balance in the excess police state-aid holding 
18.6 	account.
18.7 	(e)(d) On October 1 of each year, one-half of the balance of the excess police 
18.8 	state-aid holding account remaining after the deductionsdeduction under paragraphs
18.9 	paragraph (c) and (d) is appropriated for additional amortization aid under section 
18.10 	423A.02, subdivision 1b.
18.11 	(f)(e) Annually, the remaining balance in the excess police state-aid holding account, 
18.12 	after the deductions under paragraphs (c),and (d), and (e), cancels to the general fund.

18.13 	Sec. 20. Minnesota Statutes 2012, section 69.031, subdivision 1, is amended to read:
18.14 		Subdivision 1.Commissioner's warrant. (a) The commissioner of management 
18.15 	and budget shall issue to the Public Employees Retirement Association on behalf of 
18.16 	a municipality or independent nonprofit firefighting corporation that is a member of the 
18.17 	voluntary statewide lump-sum volunteer firefighter retirement plan under chapter 353G, 
18.18 	to the Department of Natural Resources, to the Department of Public Safety, or to the 
18.19 	county, municipality, or independent nonprofit firefighting corporation certified to the 
18.20 	commissioner of management and budget by the commissioner a warrant for an amount 
18.21 	equal to the amount of fire state aid or police state aid, whichever applies, certified for the 
18.22 	applicable state aid recipient by the commissioner under section 69.021.
18.23 	(b) Fire state aid and police state aid is payable on October 1 annually. The amount 
18.24 	of state aid due and not paid by October 1 accrues interest payable to the state aid recipient 
18.25 	at the rate of one percent for each month or part of a month that the amount remains 
18.26 	unpaid after October 1.

18.27 	Sec. 21. Minnesota Statutes 2012, section 69.031, subdivision 3, is amended to read:
18.28 		Subd. 3.Appropriations. There is hereby appropriated annually from the state 
18.29 	general fund to the commissioner of revenue an amountamounts sufficient to make the 
18.30 	police state aid payments and the fire state aid payments specified in this section and 
18.31 	section 69.021.

18.32 	Sec. 22. Minnesota Statutes 2012, section 69.031, subdivision 5, is amended to read:
19.1 		Subd. 5.Deposit of state aid. (a) If the municipality or the independent nonprofit 
19.2 	firefighting corporation is covered by the voluntary statewide lump-sum volunteer 
19.3 	firefighter retirement plan under chapter 353G, the executive director shall credit the fire 
19.4 	state aid against future municipal contribution requirements under section 353G.08 and 
19.5 	shall notify the municipality or independent nonprofit firefighting corporation of the fire 
19.6 	state aid so credited at least annually. If the municipality or the independent nonprofit 
19.7 	firefighting corporation is not covered by the voluntary statewide lump-sum volunteer 
19.8 	firefighter retirement plan, the municipal treasurer shall, within 30 days after receipt, 
19.9 	transmit the fire state aid to the treasurer of the duly incorporated firefighters' relief 
19.10 	association if there is one organized and the association has filed a financial report with the 
19.11 	municipality. If the relief association has not filed a financial report with the municipality, 
19.12 	the municipal treasurer shall delay transmission of the fire state aid to the relief association 
19.13 	until the complete financial report is filed. If the municipality or independent nonprofit 
19.14 	firefighting corporation is not covered by the voluntary statewide lump-sum volunteer 
19.15 	firefighter retirement plan, if there is no relief association organized, or if the association 
19.16 	has dissolved or has been removed as trustees of state aid, then the treasurer of the 
19.17 	municipality shall deposit the money in the municipal treasury and the money may be 
19.18 	disbursed only for the purposes and in the manner set forth in section 424A.08 or for the 
19.19 	payment of the employer contribution requirement with respect to firefighters covered by 
19.20 	the public employees police and fire retirement plan under section 353.65, subdivision 3.
19.21 	(b) The municipal treasurer, upon receipt of the police state aid, shall disburse the 
19.22 	police state aid in the following manner:
19.23 	(1) For a municipality in which a local police relief association exists and all peace 
19.24 	officers are members of the association, the total state aid must be transmitted to the 
19.25 	treasurer of the relief association within 30 days of the date of receipt, and the treasurer 
19.26 	of the relief association shall immediately deposit the total state aid in the special fund 
19.27 	of the relief association;
19.28 	(2)(b) For a municipality in which police retirement coverage is provided by the 
19.29 	public employees police and fire fund and all peace officers are members of the fund, 
19.30 	including municipalities covered by section 353.665, the total state aid must be applied 
19.31 	toward the municipality's employer contribution to the public employees police and 
19.32 	fire fund under sections 353.65, subdivision 3, and 353.665 353.668, subdivision 8 6, 
19.33 	paragraph (b) or 353.669, subdivision 6, if applicable; or.
19.34 	(3) For a municipality other than a city of the first class with a population of more 
19.35 	than 300,000 in which both a police relief association exists and police retirement 
19.36 	coverage is provided in part by the public employees police and fire fund, the municipality 
20.1 	may elect at its option to transmit the total state aid to the treasurer of the relief association 
20.2 	as provided in clause (1), to use the total state aid to apply toward the municipality's 
20.3 	employer contribution to the public employees police and fire fund subject to all the 
20.4 	provisions set forth in clause (2), or to allot the total state aid proportionately to be 
20.5 	transmitted to the police relief association as provided in this subdivision and to apply 
20.6 	toward the municipality's employer contribution to the public employees police and fire 
20.7 	fund subject to the provisions of clause (2) on the basis of the respective number of active 
20.8 	full-time peace officers, as defined in section 69.011, subdivision 1, clause (g).
20.9 	For a city of the first class with a population of more than 300,000, in addition, the 
20.10 	city may elect to allot the appropriate portion of the total police state aid to apply toward 
20.11 	the employer contribution of the city to the public employees police and fire fund based 
20.12 	on the covered salary of police officers covered by the fund each payroll period and to 
20.13 	transmit the balance to the police relief association; or
20.14 	(4) For a municipality in which police retirement coverage is provided in part by 
20.15 	the public employees police and fire fund and in part by a local police consolidation 
20.16 	account governed by chapter 353A and established before March 2, 1999, for which the 
20.17 	municipality declined merger under section 353.665, subdivision 1, or established after 
20.18 	March 1, 1999, the total police state aid must be applied towards the municipality's total 
20.19 	employer contribution to the public employees police and fire fund and to the local police 
20.20 	consolidation account under sections 353.65, subdivision 3, and 353A.09, subdivision 5.
20.21 	(c) The county treasurer, upon receipt of the police state aid for the county, shall 
20.22 	apply the total state aid toward the county's employer contribution to the public employees 
20.23 	police and fire fund under section 353.65, subdivision 3.
20.24 	(d) The designated Metropolitan Airports Commission official, upon receipt of the 
20.25 	police state aid for the Metropolitan Airports Commission, shall apply the total police 
20.26 	state aid toward the commission's employer contribution for police officers to the public 
20.27 	employees police and fire plan under section 353.65, subdivision 3.
20.28 	(e) The police state aid apportioned to the Departments of Public Safety and Natural 
20.29 	Resources under section 69.021, subdivision 7a, is appropriated to the commissioner of 
20.30 	management and budget for transfer to the funds and accounts from which the salaries of 
20.31 	peace officers certified under section 69.011, subdivision 2b, are paid. The commissioner 
20.32 	of revenue shall certify to the commissioners of public safety, natural resources, and 
20.33 	management and budget the amounts to be transferred from the appropriation for police 
20.34 	state aid. The commissioners of public safety and natural resources shall certify to the 
20.35 	commissioner of management and budget the amounts to be credited to each of the funds 
20.36 	and accounts from which the peace officers employed by their respective departments are 
21.1 	paid. Each commissioner shall allocate the police state aid first for employer contributions 
21.2 	for employees funded from the general fund and then for employer contributions for 
21.3 	employees funded from other funds. For peace officers whose salaries are paid from the 
21.4 	general fund, the amounts transferred from the appropriation for police state aid must 
21.5 	be canceled to the general fund.

21.6 	Sec. 23. Minnesota Statutes 2012, section 69.041, is amended to read:
21.7 	69.041 SHORTFALL FROM GENERAL FUND.
21.8 	(a) If the annual funding requirements of fire or police relief associations or 
21.9 	consolidation accounts under sections 69.77,69.771 to 69.775, or 353A.09, or sections 
21.10 	31 to 43, exceed all applicable revenue sources of a given year, including the insurance 
21.11 	premium taxes funding the applicable fire or police state aid as set under section 297I.05, 
21.12 	subdivisions 2, 3, and 4, the shortfall in the annual funding requirements must be paid 
21.13 	from the general fund to the extent appropriated by the legislature.
21.14 	(b) Nothing in this section may be deemed to relieve any municipality from its 
21.15 	obligation to a relief association or consolidation account under law.

21.16 	Sec. 24. Minnesota Statutes 2012, section 69.051, subdivision 1, is amended to read:
21.17 		Subdivision 1.Financial report and audit. (a) The board of each salaried 
21.18 	firefightersthe Bloomington Fire Department Relief Association, police relief association,
21.19 	 and each volunteer firefighters relief association as defined in section 424A.001, 
21.20 	subdivision 4, with assets of at least $200,000 or liabilities of at least $200,000 in the prior 
21.21 	year or in any previous year, according to the applicable actuarial valuation or according 
21.22 	to the financial report if no valuation is required, shall prepare a financial report covering 
21.23 	the special and general funds of the relief association for the preceding fiscal year, file the 
21.24 	financial report, and submit financial statements.
21.25 	(b) The financial report must contain financial statements and disclosures which 
21.26 	present the true financial condition of the relief association and the results of relief 
21.27 	association operations in conformity with generally accepted accounting principles and in 
21.28 	compliance with the regulatory, financing and funding provisions of this chapter and any 
21.29 	other applicable laws. The financial report must be countersigned by:
21.30 	(1) the municipal clerk or clerk-treasurer of the municipality in which the relief 
21.31 	association is located if the relief association is a firefighters relief association which is 
21.32 	directly associated with a municipal fire department or is a police relief association; or
21.33 	(2) by the municipal clerk or clerk-treasurer of the largest municipality in population 
21.34 	which contracts with the independent nonprofit firefighting corporation if the volunteer 
22.1 	firefighter relief association is a subsidiary of an independent nonprofit firefighting 
22.2 	corporation and by the secretary of the independent nonprofit firefighting corporation; or
22.3 	(3) by the chief financial official of the county in which the volunteer firefighter 
22.4 	relief association is located or primarily located if the relief association is associated with 
22.5 	a fire department that is not located in or associated with an organized municipality.
22.6 	(c) The financial report must be retained in its office for public inspection and must 
22.7 	be filed with the governing body of the government subdivision in which the associated 
22.8 	fire department is located after the close of the fiscal year. One copy of the financial report 
22.9 	must be furnished to the state auditor after the close of the fiscal year.
22.10 	(d) Audited financial statements must be attested to by a certified public accountant 
22.11 	or by the state auditor and must be filed with the state auditor within 180 days after the 
22.12 	close of the fiscal year. The state auditor may accept this report in lieu of the report 
22.13 	required in paragraph (c).

22.14 	Sec. 25. Minnesota Statutes 2012, section 69.051, subdivision 1a, is amended to read:
22.15 		Subd. 1a.Financial statement. (a) The board of each volunteer firefighters relief 
22.16 	association, as defined in section 424A.001, subdivision 4, that is not required to file a 
22.17 	financial report and audit under subdivision 1 must prepare a detailed statement of the 
22.18 	financial affairs for the preceding fiscal year of the relief association's special and general 
22.19 	funds in the style and form prescribed by the state auditor. The detailed statement must 
22.20 	show:
22.21 	(1) the sources and amounts of all money received;
22.22 	(2) all disbursements, accounts payable and accounts receivable;
22.23 	(3) the amount of money remaining in the treasury;
22.24 	(4)  total assets, including a listing of all investments;
22.25 	(5) the accrued liabilities; and
22.26 	(6) all other items necessary to show accurately the revenues and expenditures and 
22.27 	financial position of the relief association.
22.28 	(b) The detailed financial statement required under paragraph (a) must be certified 
22.29 	by an independent public accountant or auditor or by the auditor or accountant who 
22.30 	regularly examines or audits the financial transactions of the municipality. In addition to 
22.31 	certifying the financial condition of the special and general funds of the relief association, 
22.32 	the accountant or auditor conducting the examination shall give an opinion as to the 
22.33 	condition of the special and general funds of the relief association, and shall comment 
22.34 	upon any exceptions to the report. The independent accountant or auditor must have at 
23.1 	least five years of public accounting, auditing, or similar experience, and must not be an 
23.2 	active, inactive, or retired member of the relief association or the fire or police department.
23.3 	(c) The detailed statement required under paragraph (a) must be countersigned by:
23.4 	(1) the municipal clerk or clerk-treasurer of the municipality; or
23.5 	(2) where applicable, by the municipal clerk or clerk-treasurer of the largest 
23.6 	municipality in population which contracts with the independent nonprofit firefighting 
23.7 	corporation if the relief association is a subsidiary of an independent nonprofit firefighting 
23.8 	corporation and by the secretary of the independent nonprofit firefighting corporation; or
23.9 	(3) by the chief financial official of the county in which the volunteer firefighter 
23.10 	relief association is located or primarily located if the relief association is associated with 
23.11 	a fire department that is not located in or associated with an organized municipality.
23.12 	(d) The volunteer firefighters' relief association board must file the detailed statement 
23.13 	required under paragraph (a) in the relief association office for public inspection and 
23.14 	present it to the city councilgoverning body of the municipality within 45 days after the 
23.15 	close of the fiscal year, and must submit a copy of the detailed statement to the state 
23.16 	auditor within 90 days of the close of the fiscal year.

23.17 	Sec. 26. Minnesota Statutes 2012, section 69.051, subdivision 1b, is amended to read:
23.18 		Subd. 1b.Qualification. The state auditor may, upon a demonstration by a relief 
23.19 	association of hardship or an inability to conform, extend the deadline for reports under 
23.20 	subdivisions 1 or 1a, but not beyond November 30th following the due date. If the 
23.21 	reports are not received by November 30th, the municipality or relief association will 
23.22 	forfeitforfeits its current year state aid, and, until the state auditor receives the required 
23.23 	information, the relief association or municipality will beis ineligible to receive any 
23.24 	future state aid. A municipality or police or firefighters' relief association shalldoes not 
23.25 	qualify initially to receive, or be entitled subsequently to retain, state aid pursuant tounder 
23.26 	this chapter if the financial reporting requirement or the applicable requirements of this 
23.27 	chapter or any other statute or special law have not been complied with or are not fulfilled.

23.28 	Sec. 27. Minnesota Statutes 2012, section 69.051, subdivision 2, is amended to read:
23.29 		Subd. 2.Treasurers bond. No(a) The treasurer of athe Bloomington Fire 
23.30 	Department Relief Association governed by section 69.77 shallmay not enter upon duties 
23.31 	without having given the association a bond in a reasonable amount acceptable to the 
23.32 	municipality for the faithful discharge of duties according to law.
23.33 	(b) No treasurer of a relief association governed by sections 69.771 to 69.776shall
23.34 	may enter upon the duties of the office until the treasurer has given the association a good 
24.1 	and sufficient bond in an amount equal to at least ten percent of the assets of the relief 
24.2 	association; however, the amount of the bond need not exceed $500,000.

24.3 	Sec. 28. Minnesota Statutes 2012, section 69.051, subdivision 3, is amended to read:
24.4 		Subd. 3.Report by certain municipalities. (a) The chief administrative officer 
24.5 	of each municipality which has an organized fire department but which does not have a 
24.6 	firefighters' relief association governed by section 69.77 or sections 69.771 to 69.775 and 
24.7 	which is not exempted under paragraph (b) shall annually prepare a detailed financial 
24.8 	report of the receipts and disbursements by the municipality for fire protection service 
24.9 	during the preceding calendar year, on a form prescribed by the state auditor. The financial 
24.10 	report must contain any information which the state auditor deems necessary to disclose 
24.11 	the sources of receipts and the purpose of disbursements for fire protection service. 
24.12 	The financial report must be signed by the municipal clerk or clerk-treasurer of the 
24.13 	municipality. The financial report must be filed by the municipal clerk or clerk-treasurer 
24.14 	with the state auditor on or before July 1 annually. The municipality shalldoes not qualify 
24.15 	initially to receive, or beand is not entitled subsequently to retain, state aid under this 
24.16 	chapter if the financial reporting requirement or the applicable requirements of this chapter 
24.17 	or any other statute or special law have not been complied with or are not fulfilled.
24.18 	(b) Each municipality that has an organized fire department and provides retirement 
24.19 	coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter 
24.20 	retirement plan under chapter 353G qualifies to have fire state aid transmitted to and 
24.21 	retained in the statewide lump-sum volunteer firefighter retirement fund without filing 
24.22 	a detailed financial report if the executive director of the Public Employees Retirement 
24.23 	Association certifies compliance by the municipality with the requirements of sections 
24.24 	353G.04 and 353G.08, paragraph (e), and certifies conformity by the applicable fire chief 
24.25 	with the requirements of section 353G.07.

24.26 	Sec. 29. Minnesota Statutes 2012, section 69.051, subdivision 4, is amended to read:
24.27 		Subd. 4.Notification by commissioner and state auditor. (a) The state auditor,
24.28 	 in performing an audit or examination, shall notify the Legislative Commission on 
24.29 	Pensions and Retirement if the audit or examination reveals malfeasance, misfeasance, or 
24.30 	nonfeasance in office by relief association officials or municipal officials.
24.31 	(b) The commissioner shall notify the Legislative Commission on Pensions and 
24.32 	Retirement if the state auditor has not filed the required financial compliance reports 
24.33 	by July 1.

25.1 	Sec. 30. Minnesota Statutes 2012, section 69.33, is amended to read:
25.2 	69.33 REPORT; AMOUNT OF PREMIUMS RECEIVED BY INSURANCE 
25.3 	COMPANIES.
25.4 	For purposes of the first class city fire insurance premium tax surcharge aid program 
25.5 	under section 297I.10, the commissioner shall enclose in the annual statement blank that is 
25.6 	sent to all fire insurance companies doing business in this state a blank form containing 
25.7 	the names of all cities of the first class and require these companies, at the time of making 
25.8 	their annual statements to the commissioner, to state on these blanks the amount of 
25.9 	premiums received by them upon properties insured within the corporate limits of the 
25.10 	cities named thereon during the year ending December 31st last past. Thereafter, before 
25.11 	July first each year, the commissioner shall certify to the commissioner of management 
25.12 	and budget the information thus obtained, together with the amount of the tax for the 
25.13 	benefit of the pension plans covering firefighters in cities of the first class paid in such 
25.14 	year by these companies upon these insurance premiums.

25.15 	Sec. 31. Minnesota Statutes 2012, section 69.77, subdivision 1, is amended to read:
25.16 		Subdivision 1.Conditioned employer support for athe Bloomington Fire 
25.17 	Department Relief Association. (a) Notwithstanding any law to the contrary, only 
25.18 	if the municipalitycity of Bloomington and the Bloomington Fire Department Relief 
25.19 	Association comply with the provisions of this section, a municipalitythe city of 
25.20 	Bloomington may contribute public funds, including any applicable police or fire state 
25.21 	aid, or levy property taxes for the support of a police or firefighters'the Bloomington 
25.22 	Fire Department Relief Association, enumerated in subdivision 1a, however organized, 
25.23 	which provides retirement coverage or pays a service pension to a retired police officer or 
25.24 	firefighter or a retirement benefit to a surviving dependent of either an active or retired 
25.25 	police officer or firefighter,and for the operation and maintenance of the relief association.
25.26 	(b) The commissioner shall not include in the apportionment of police or fire state 
25.27 	aid to the county auditor under section 69.021, subdivision 6, any municipality in which 
25.28 	there exists a local police or salaried firefighters' relief association as enumerated in 
25.29 	subdivision 1a whichthe city of Bloomington if the Bloomington Fire Department Relief 
25.30 	Association does not comply with the provisions of this section or the provisions of any 
25.31 	applicable special law relating to the funding or financing of the association and that 
25.32 	municipalitythe city of Bloomington may not qualify initially to receive, or be entitled 
25.33 	subsequently to retain, fire state aid under sections 69.011 to 69.051 until the reason 
25.34 	for the disqualification is remedied, whereupon the municipality city of Bloomington, 
26.1 	if otherwise qualified, is entitled to again receive fire state aid for the year occurring 
26.2 	immediately subsequent to the year in which the disqualification is remedied.
26.3 	(c) The state auditor and the commissioner shall determine if a municipality with a 
26.4 	local police or salaried firefighters' relief association failsthe city of Bloomington and the 
26.5 	Bloomington Fire Department Relief Association fail to comply with the provisions of 
26.6 	this section or the funding or financing provisions of any applicable special law.

26.7 	Sec. 32. Minnesota Statutes 2012, section 69.77, subdivision 2, is amended to read:
26.8 		Subd. 2.Inapplicable penalty. The penalty provided for in subdivision 1 does not 
26.9 	apply to athe Bloomington Fire Department Relief Association enumerated in subdivision 
26.10 	1a if the requirements of subdivisions 3 to 10 are met.

26.11 	Sec. 33. Minnesota Statutes 2012, section 69.77, subdivision 3, is amended to read:
26.12 		Subd. 3.Minimum member contribution. (a) Each active full-time member of 
26.13 	the Bloomington Fire Department Relief Association must pay into the special fund of 
26.14 	the association during a year of covered service, a contribution for retirement coverage, 
26.15 	including survivorship benefits, of not less than eight percent of the maximum rate of 
26.16 	salary upon which retirement coverage is credited and service pension and retirement 
26.17 	benefit amounts are determined. The member contributions must be made by payroll 
26.18 	deduction from the salary of the member by the municipality city of Bloomington, and 
26.19 	must be transmitted by the municipalitycity of Bloomington to the relief association as 
26.20 	soon as practical. The relief association shall deposit the member contribution to the credit 
26.21 	of the special fund of the relief association.
26.22 	(b) The member contribution requirement specified in this subdivision does not 
26.23 	apply to any members who are volunteer firefighters or who are not employed full time 
26.24 	as firefighters.

26.25 	Sec. 34. Minnesota Statutes 2012, section 69.77, subdivision 4, is amended to read:
26.26 		Subd. 4.Relief association financial requirements; minimum municipal 
26.27 	obligation. (a) The officers of the Bloomington Fire Department Relief Association 
26.28 	shall determine the financial requirements of the relief association and the minimum 
26.29 	obligation of the municipalitycity of Bloomington for the following calendar year in 
26.30 	accordance with the requirements of this subdivision. The financial requirements of the 
26.31 	relief association and the minimum obligation of the municipalitycity of Bloomington 
26.32 	must be determined on or before the submission date established by the municipality
26.33 	city of Bloomington under subdivision 5.
27.1 	(b) The financial requirements of the relief association for the following calendar 
27.2 	year must be based on the most recent actuarial valuation or survey of the special fund of 
27.3 	the association if more than one fund is maintained by the association, or of the association, 
27.4 	if only one fund is maintained, prepared in accordance with sections 356.215, subdivisions 
27.5 	4 to 15, and 356.216, as required under subdivision 10. If an actuarial estimate is prepared 
27.6 	by the actuary of the relief association as part of obtaining a modification of the benefit 
27.7 	plan of the relief association and the modification is implemented, the actuarial estimate 
27.8 	must be used in calculating the subsequent financial requirements of the relief association.
27.9 	(c) If the relief association has an unfunded actuarial accrued liability as reported in 
27.10 	the most recent actuarial valuation or survey, the total of the amounts calculated under 
27.11 	clauses (1), (2), and (3), constitute the financial requirements of the relief association for 
27.12 	the following year. If the relief association does not have an unfunded actuarial accrued 
27.13 	liability as reported in the most recent actuarial valuation or survey, the amount calculated 
27.14 	under clauses (1) and (2) constitute the financial requirements of the relief association for 
27.15 	the following year. The financial requirement elements are:
27.16 	(1) the normal level cost requirement for the following year, expressed as a dollar 
27.17 	amount, which must be determined by applying the normal level cost of the relief 
27.18 	association as reported in the actuarial valuation or survey and expressed as a percentage 
27.19 	of covered payroll to the estimated covered payroll of the active membership of the relief 
27.20 	association, including any projected change in the active membership, for the following 
27.21 	year;
27.22 	(2) for the Bloomington Fire Department Relief Association, to the dollar amount 
27.23 	of normal cost determined under clause (1) must be added an amount equal to the dollar 
27.24 	amount of the administrative expenses of the special fund of the association if more 
27.25 	than one fund is maintained by the association, or of the association if only one fund is 
27.26 	maintained, for the most recent year, multiplied by the factor of 1.035. The administrative 
27.27 	expenses are those authorized under section 69.80; and
27.28 	(3) to the dollar amount of normal cost and expenses determined under clauses 
27.29 	(1) and (2) must be added an amount equal to the level annual dollar amount which 
27.30 	is sufficient to amortize the unfunded actuarial accrued liability as determined from 
27.31 	the actuarial valuation or survey of the fund, using an interest assumption set at the 
27.32 	applicable rate specified in section 356.215, subdivision 8, by that fund's amortization 
27.33 	date as specified in paragraph (d).
27.34 	(d) The Bloomington Fire Department Relief Association special fund amortization 
27.35 	date is determined under section 356.216, clause (2). The amortization date specified in 
27.36 	this paragraph supersedes any amortization date specified in any applicable special law.
28.1 	(d) If the actuarial value of the assets of the special fund of the relief association 
28.2 	exceed the actuarial accrued liability as reported in the most recent actuarial valuation of the 
28.3 	special fund of the relief association, the financial requirements of the relief association are 
28.4 	the amounts calculated under paragraph (c), clauses (1) and (2), reduced by one-tenth of the 
28.5 	amount by which the actuarial value of the assets of the special fund of the relief association 
28.6 	exceeds the actuarial accrued liability of the special fund of the relief association.
28.7 	(e) The minimum obligation of the municipality is an amount equal to the financial 
28.8 	requirements of the relief association reduced by the estimated amount of member 
28.9 	contributions from covered salary anticipated for the following calendar year and the 
28.10 	estimated amountsamount anticipated for the following calendar year from the applicable
28.11 	fire state aid program established under sections 69.011 to 69.051 receivable by the relief 
28.12 	association after any allocation made under section 69.031, subdivision 5, paragraph (b), 
28.13 	clause (2), or 423A.01, subdivision 2, paragraph (a), clause (6), from the local police 
28.14 	and salaried firefighters' relief association amortization aid program established under 
28.15 	section 423A.02, subdivision 1, from the supplementary amortization state-aid program 
28.16 	established under section 423A.02, subdivision 1a, and from the additional amortization 
28.17 	state aid under section 423A.02, subdivision 1b.

28.18 	Sec. 35. Minnesota Statutes 2012, section 69.77, subdivision 5, is amended to read:
28.19 		Subd. 5.Determination submission. The officers of the relief association shall 
28.20 	submit the determination of the financial requirements of the relief association and of the 
28.21 	minimum obligation of the municipality to the governing bodyBloomington City Council 
28.22 	on or before the date established by the municipality city of Bloomington, which may 
28.23 	not be earlier than August 1 and may not be later than September 1 of each year. The 
28.24 	governing body of the municipalityBloomington City Council must ascertain whether or 
28.25 	not the determinations were prepared in accordance with law.

28.26 	Sec. 36. Minnesota Statutes 2012, section 69.77, subdivision 6, is amended to read:
28.27 		Subd. 6.Municipal payment. (a) The municipalitycity of Bloomington shall 
28.28 	provide for and shall pay, each year, at least the amount of the minimum obligation of the 
28.29 	municipalitycity of Bloomington to the Bloomington Fire Department Relief Association.
28.30 	(b) If there is any deficiency in the municipal payment to meet the minimum 
28.31 	obligation of the municipalitycity of Bloomington as of the end of any calendar year, the 
28.32 	amount of the deficiency must be added to the minimum obligation of the municipalitycity 
28.33 	of Bloomington for the following year calculated under subdivision 4 and must include 
28.34 	interest at the compound rate of six percent per annum from the date that the municipality
29.1 	city of Bloomington was required to make payment under this subdivision until the date 
29.2 	that the municipalitycity of Bloomington actually makes the required payment.

29.3 	Sec. 37. Minnesota Statutes 2012, section 69.77, subdivision 7, is amended to read:
29.4 		Subd. 7.Budget inclusion. (a) The municipalitycity of Bloomington shall provide 
29.5 	in the annual municipal budget for at least the minimum obligation of the municipality 
29.6 	calculated under subdivision 4.
29.7 	(b) The municipalitycity of Bloomington may levy taxes for the payment of the 
29.8 	minimum obligation of the municipalitycity of Bloomington without any limitation as to 
29.9 	rate or amount and irrespective of limitations imposed by other provisions of law upon the 
29.10 	rate or amount of taxation when the balance of the special fund or any fund of the relief 
29.11 	association has attained a specified minimum asset level. In addition, any taxes levied 
29.12 	under this section may not cause the amount or rate of other taxes levied in that year or to 
29.13 	be levied in a subsequent year by the municipalitycity of Bloomington which are subject 
29.14 	to a limitation as to rate or amount to be reduced.
29.15 	(c) If the municipalitycity of Bloomington does not include the full amount of 
29.16 	the minimum obligation of the municipalitycity of Bloomington in the levy that the 
29.17 	municipalitycity of Bloomington certified to the Hennepin County auditor in any year, the 
29.18 	officers of the relief association shall certify the amount of any deficiency to the Hennepin 
29.19 	County auditor. Upon verifying the existence of any deficiency in the levy certified by 
29.20 	the municipality city of Bloomington, the Hennepin County auditor shall spread a levy 
29.21 	over the taxable property of the municipalitycity of Bloomington in the amount of the 
29.22 	deficiency certified to by the officers of the relief association.

29.23 	Sec. 38. Minnesota Statutes 2012, section 69.77, subdivision 8, is amended to read:
29.24 		Subd. 8.Accelerated amortization. Any sums of money paid by the municipality
29.25 	city of Bloomington to the relief association in excess of the minimum obligation of the 
29.26 	municipalitycity of Bloomington in any year must be used to amortize any unfunded 
29.27 	actuarial accrued liabilities of the Bloomington Fire Department Relief Association.

29.28 	Sec. 39. Minnesota Statutes 2012, section 69.77, subdivision 9, is amended to read:
29.29 		Subd. 9.Local paid fire relief association investment authority. (a) The special 
29.30 	fundfunds of the association must be invested in securities that are authorized investments 
29.31 	under section 356A.06, subdivision 6 or 7, whichever applies.
29.32 	(b) The governing board of the Bloomington Fire Department Relief Association 
29.33 	may select and appoint a qualified private firm to measure management performance and 
30.1 	return on investment, and the firm must use the formula or formulas developed by the 
30.2 	State Board of Investment under section 11A.04, clause (11). The governing board of the 
30.3 	Bloomington Fire Department Relief Association may certify general fund assets of the 
30.4 	relief association for investment by the State Board of Investment in fixed income pools 
30.5 	or in a separately managed account at the discretion of the State Board of Investment 
30.6 	as provided in section 11A.14.
30.7 	(c) The governing board of the association may certify general fund assets of the 
30.8 	relief association for investment by the State Board of Investment in fixed income pools 
30.9 	or in a separately managed account at the discretion of the State Board of Investment 
30.10 	as provided in section 11A.14.

30.11 	Sec. 40. Minnesota Statutes 2012, section 69.77, subdivision 10, is amended to read:
30.12 		Subd. 10.Actuarial valuation required. The governing board of the Bloomington 
30.13 	Fire Department Relief Association shall obtain an actuarial valuation showing the 
30.14 	condition of the special fund of the relief association under sections 356.215 and 356.216
30.15 	and anythe applicable standards for actuarial work established by the Legislative 
30.16 	Commission on Pensions and Retirement. The actuarial valuation must be made as of 
30.17 	December 31 of every year. A copy of the actuarial valuation must be filed with the 
30.18 	Director of the Legislative Reference Library, the governing body of the municipality in 
30.19 	which the association is organized Bloomington City Council, the executive director of 
30.20 	the Legislative Commission on Pensions and Retirement, and the state auditor, not later 
30.21 	than July 1 of the following year.

30.22 	Sec. 41. Minnesota Statutes 2012, section 69.77, subdivision 11, is amended to read:
30.23 		Subd. 11.Municipal approval of benefit changes required. Any amendment to 
30.24 	the bylaws or articles of incorporation of athe Bloomington Fire Department Relief 
30.25 	Association which increases or otherwise affects the retirement coverage provided by or 
30.26 	the service pensions or retirement benefits payable from any police or firefighters'the 
30.27 	relief association enumerated in subdivision 1a is not effective until it is ratified by the 
30.28 	municipality in which the relief association is located city of Bloomington. The officers 
30.29 	of the relief association shall not seek municipal ratification before obtaining either an 
30.30 	updated actuarial valuation including the proposed amendment or an estimate of the 
30.31 	expected actuarial impact of the proposed amendment prepared by the actuary of the relief 
30.32 	association and submitting that actuarial valuation or estimate to the Bloomington city 
30.33 	clerk of the municipality.

31.1 	Sec. 42. Minnesota Statutes 2012, section 69.77, subdivision 12, is amended to read:
31.2 		Subd. 12.Application of other laws to contribution rate. In the absence of any 
31.3 	specific provision to the contrary, no general or special law previously enacted may be 
31.4 	construed as reducing the levy amount or rate of contribution to a police or firefightersthe 
31.5 	Bloomington Fire Department Relief Association to which subdivision 1a applies, by a 
31.6 	municipality or member of the association the city of Bloomington, which is required as a 
31.7 	condition for the use of public funds or the levy of taxes for the support of the association. 
31.8 	EachThe Bloomington Fire Department Relief Association, the municipality in which 
31.9 	it is organized city of Bloomington, and the officers of each, are authorized to do all 
31.10 	things required by this section as a condition for the use of public funds or the levy of 
31.11 	taxes for the support of the association.

31.12 	Sec. 43. Minnesota Statutes 2012, section 69.77, subdivision 13, is amended to read:
31.13 		Subd. 13.Citation. This section may be cited as the "Police and Firefighters'
31.14 	Bloomington Fire Department Relief AssociationsAssociation Guidelines Act of 1969."

31.15 	Sec. 44. Minnesota Statutes 2012, section 69.771, subdivision 1, is amended to read:
31.16 		Subdivision 1.Covered relief associations. The applicable provisions of sections 
31.17 	69.771 to 69.776 apply to any firefighters' relief association other than athe Bloomington 
31.18 	Fire Department Relief Association enumerated in section 69.77, subdivision 1a, which 
31.19 	is organized under any laws of this state, which is composed of volunteer firefighters or 
31.20 	is composed partially of volunteer firefighters and partially of salaried firefighters with 
31.21 	retirement coverage provided by the public employees police and fire fund and which, in 
31.22 	either case, operates subject to the service pension minimum requirements for entitlement 
31.23 	and maximums contained in section 424A.02, or subject to a special law modifying those 
31.24 	requirements or maximums.

31.25 	Sec. 45. Minnesota Statutes 2012, section 69.80, is amended to read:
31.26 	69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
31.27 	(a) Notwithstanding any provision of law to the contrary, the payment of the 
31.28 	following necessary, reasonable and direct expenses of maintaining, protecting and 
31.29 	administering the special fund, when provided for in the bylaws of the association and 
31.30 	approved by the board of trustees, constitutes authorized administrative expenses of a 
31.31 	police, salaried firefighters', or volunteer firefighters' relief association organized under 
31.32 	any law of this state or the Bloomington Fire Department Relief Association:
32.1 	(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, 
32.2 	postage, periodical subscriptions, furniture, fixtures, and salaries of administrative 
32.3 	personnel;
32.4 	(2) salaries of the officers of the association, or their designees, and salaries of the 
32.5 	members of the board of trustees of the association if the salary amounts are approved by 
32.6 	the governing body of the entity that is responsible for meeting any minimum obligation 
32.7 	under section 69.77,69.772, or 69.773, or sections 31 to 43, and the itemized expenses 
32.8 	of relief association officers and board members that are incurred as a result of fulfilling 
32.9 	their responsibilities as administrators of the special fund;
32.10 	(3) tuition, registration fees, organizational dues, and other authorized expenses 
32.11 	of the officers or members of the board of trustees incurred in attending educational 
32.12 	conferences, seminars, or classes relating to the administration of the relief association;
32.13 	(4) audit, actuarial, medical, legal, and investment and performance evaluation 
32.14 	expenses;
32.15 	(5) filing and application fees payable by the relief association to federal or other 
32.16 	governmental entities;
32.17 	(6) reimbursement to the officers and members of the board of trustees, or their 
32.18 	designees, for reasonable and necessary expenses actually paid and incurred in the 
32.19 	performance of their duties as officers or members of the board; and
32.20 	(7) premiums on fiduciary liability insurance and official bonds for the officers, 
32.21 	members of the board of trustees, and employees of the relief association.
32.22 	(b) Any other expenses of the relief association must be paid from the general fund 
32.23 	of the association, if one exists. If a relief association has only one fund, that fund is the 
32.24 	special fund for purposes of this section. If a relief association has a special fund and 
32.25 	a general fund, and any expense of the relief association that is directly related to the 
32.26 	purposes for which both funds were established, the payment of that expense must be 
32.27 	apportioned between the two funds on the basis of the benefits derived by each fund.

32.28 	Sec. 46. Minnesota Statutes 2012, section 275.70, subdivision 5, is amended to read:
32.29 		Subd. 5.Special levies. "Special levies" means those portions of ad valorem taxes 
32.30 	levied by a local governmental unit for the following purposes or in the following manner:
32.31 	(1) to pay the costs of the principal and interest on bonded indebtedness or to 
32.32 	reimburse for the amount of liquor store revenues used to pay the principal and interest 
32.33 	due on municipal liquor store bonds in the year preceding the year for which the levy 
32.34 	limit is calculated;
33.1 	(2) to pay the costs of principal and interest on certificates of indebtedness issued for 
33.2 	any corporate purpose except for the following:
33.3 	(i) tax anticipation or aid anticipation certificates of indebtedness;
33.4 	(ii) certificates of indebtedness issued under sections 298.28 and 298.282;
33.5 	(iii) certificates of indebtedness used to fund current expenses or to pay the costs of 
33.6 	extraordinary expenditures that result from a public emergency; or
33.7 	(iv) certificates of indebtedness used to fund an insufficiency in tax receipts or an 
33.8 	insufficiency in other revenue sources, provided that nothing in this subdivision limits the 
33.9 	special levy authorized under section 475.755;
33.10 	(3) to provide for the bonded indebtedness portion of payments made to another 
33.11 	political subdivision of the state of Minnesota;
33.12 	(4) to fund payments made to the Minnesota State Armory Building Commission 
33.13 	under section 193.145, subdivision 2, to retire the principal and interest on armory 
33.14 	construction bonds;
33.15 	(5) property taxes approved by voters which are levied against the referendum 
33.16 	market value as provided under section 275.61;
33.17 	(6) to fund matching requirements needed to qualify for federal or state grants or 
33.18 	programs to the extent that either (i) the matching requirement exceeds the matching 
33.19 	requirement in calendar year 2001, or (ii) it is a new matching requirement that did not 
33.20 	exist prior to 2002;
33.21 	(7) to pay the expenses reasonably and necessarily incurred in preparing for or 
33.22 	repairing the effects of natural disaster including the occurrence or threat of widespread 
33.23 	or severe damage, injury, or loss of life or property resulting from natural causes, in 
33.24 	accordance with standards formulated by the Emergency Services Division of the state 
33.25 	Department of Public Safety, as allowed by the commissioner of revenue under section 
33.26 	275.74, subdivision 2;
33.27 	(8) pay amounts required to correct an error in the levy certified to the county 
33.28 	auditor by a city or county in a levy year, but only to the extent that when added to the 
33.29 	preceding year's levy it is not in excess of an applicable statutory, special law or charter 
33.30 	limitation, or the limitation imposed on the governmental subdivision by sections 275.70 
33.31 	to 275.74 in the preceding levy year;
33.32 	(9) to pay an abatement under section 469.1815;
33.33 	(10) to pay any costs attributable to increases in the employer contribution rates under 
33.34 	chapter 353, or locally administered pension plans, that are effective after June 30, 2001;
33.35 	(11) to pay the operating or maintenance costs of a county jail as authorized in section 
33.36 	641.01 or 641.262, or of a correctional facility as defined in section 241.021, subdivision 1, 
34.1 	paragraph (f), to the extent that the county can demonstrate to the commissioner of revenue 
34.2 	that the amount has been included in the county budget as a direct result of a rule, minimum 
34.3 	requirement, minimum standard, or directive of the Department of Corrections, or to pay 
34.4 	the operating or maintenance costs of a regional jail as authorized in section 641.262. For 
34.5 	purposes of this clause, a district court order is not a rule, minimum requirement, minimum 
34.6 	standard, or directive of the Department of Corrections. If the county utilizes this special 
34.7 	levy, except to pay operating or maintenance costs of a new regional jail facility under 
34.8 	sections 641.262 to 641.264 which will not replace an existing jail facility, any amount 
34.9 	levied by the county in the previous levy year for the purposes specified under this clause 
34.10 	and included in the county's previous year's levy limitation computed under section 
34.11 	275.71, shall be deducted from the levy limit base under section 275.71, subdivision 2, 
34.12 	when determining the county's current year levy limitation. The county shall provide the 
34.13 	necessary information to the commissioner of revenue for making this determination;
34.14 	(12) to pay for operation of a lake improvement district, as authorized under section 
34.15 	103B.555. If the county utilizes this special levy, any amount levied by the county in the 
34.16 	previous levy year for the purposes specified under this clause and included in the county's 
34.17 	previous year's levy limitation computed under section 275.71 shall be deducted from 
34.18 	the levy limit base under section 275.71, subdivision 2, when determining the county's 
34.19 	current year levy limitation. The county shall provide the necessary information to the 
34.20 	commissioner of revenue for making this determination;
34.21 	(13) to repay a state or federal loan used to fund the direct or indirect required 
34.22 	spending by the local government due to a state or federal transportation project or other 
34.23 	state or federal capital project. This authority may only be used if the project is not a 
34.24 	local government initiative;
34.25 	(14) to pay for court administration costs as required under section 273.1398, 
34.26 	subdivision 4b, less the (i) county's share of transferred fines and fees collected by the 
34.27 	district courts in the county for calendar year 2001 and (ii) the aid amount certified to be 
34.28 	paid to the county in 2004 under section 273.1398, subdivision 4c; however, for taxes 
34.29 	levied to pay for these costs in the year in which the court financing is transferred to the 
34.30 	state, the amount under this clause is limited to the amount of aid the county is certified to 
34.31 	receive under section 273.1398, subdivision 4a;
34.32 	(15) to fund a police or firefighters relief association as required under section 
34.33 	69.77sections 31 to 43 to the extent that the required amount exceeds the amount levied 
34.34 	for this purpose in 2001;
34.35 	(16) for purposes of a storm sewer improvement district under section 444.20;
35.1 	(17) to pay for the maintenance and support of a city or county society for the 
35.2 	prevention of cruelty to animals under section 343.11, but not to exceed in any year 
35.3 	$4,800 or the sum of $1 per capita based on the county's or city's population as of the most 
35.4 	recent federal census, whichever is greater. If the city or county uses this special levy, any 
35.5 	amount levied by the city or county in the previous levy year for the purposes specified 
35.6 	in this clause and included in the city's or county's previous year's levy limit computed 
35.7 	under section 275.71, must be deducted from the levy limit base under section 275.71, 
35.8 	subdivision 2, in determining the city's or county's current year levy limit;
35.9 	(18) for counties, to pay for the increase in their share of health and human service 
35.10 	costs caused by reductions in federal health and human services grants effective after 
35.11 	September 30, 2007;
35.12 	(19) for a city, for the costs reasonably and necessarily incurred for securing, 
35.13 	maintaining, or demolishing foreclosed or abandoned residential properties, as allowed by 
35.14 	the commissioner of revenue under section 275.74, subdivision 2. A city must have either 
35.15 	(i) a foreclosure rate of at least 1.4 percent in 2007, or (ii) a foreclosure rate in 2007 in 
35.16 	the city or in a zip code area of the city that is at least 50 percent higher than the average 
35.17 	foreclosure rate in the metropolitan area, as defined in section 473.121, subdivision 2, 
35.18 	to use this special levy. For purposes of this paragraph, "foreclosure rate" means the 
35.19 	number of foreclosures, as indicated by sheriff sales records, divided by the number of 
35.20 	households in the city in 2007;
35.21 	(20) for a city, for the unreimbursed costs of redeployed traffic-control agents and 
35.22 	lost traffic citation revenue due to the collapse of the Interstate 35W bridge, as certified 
35.23 	to the Federal Highway Administration;
35.24 	(21) to pay costs attributable to wages and benefits for sheriff, police, and fire 
35.25 	personnel. If a local governmental unit did not use this special levy in the previous year its 
35.26 	levy limit base under section 275.71 shall be reduced by the amount equal to the amount it 
35.27 	levied for the purposes specified in this clause in the previous year;
35.28 	(22) an amount equal to any reductions in the certified aids or credit reimbursements 
35.29 	payable under sections 477A.011 to 477A.014, and section 273.1384, due to unallotment 
35.30 	under section 16A.152 or reductions under another provision of law. The amount of the 
35.31 	levy allowed under this clause for each year is limited to the amount unallotted or reduced 
35.32 	from the aids and credit reimbursements certified for payment in the year following the 
35.33 	calendar year in which the tax levy is certified unless the unallotment or reduction amount 
35.34 	is not known by September 1 of the levy certification year, and the local government has 
35.35 	not adjusted its levy under section 275.065, subdivision 6, or 275.07, subdivision 6, in 
35.36 	which case that unallotment or reduction amount may be levied in the following year;
36.1 	(23) to pay for the difference between one-half of the costs of confining sex offenders 
36.2 	undergoing the civil commitment process and any state payments for this purpose pursuant 
36.3 	to section 253B.185, subdivision 5;
36.4 	(24) for a county to pay the costs of the first year of maintaining and operating a new 
36.5 	facility or new expansion, either of which contains courts, corrections, dispatch, criminal 
36.6 	investigation labs, or other public safety facilities and for which all or a portion of the 
36.7 	funding for the site acquisition, building design, site preparation, construction, and related 
36.8 	equipment was issued or authorized prior to the imposition of levy limits in 2008. The 
36.9 	levy limit base shall then be increased by an amount equal to the new facility's first full 
36.10 	year's operating costs as described in this clause; and
36.11 	(25) for the estimated amount of reduction to market value credit reimbursements 
36.12 	under section 273.1384 for credits payable in the year in which the levy is payable.

36.13 	Sec. 47. Minnesota Statutes 2012, section 297I.10, subdivision 1, is amended to read:
36.14 		Subdivision 1.Cities of the first class. (a) The commissioner shall order and direct 
36.15 	a surcharge to be collected of two percent of the fire, lightning, and sprinkler leakage gross 
36.16 	premiums, less return premiums, on all direct business received by any licensed foreign or 
36.17 	domestic fire insurance company on property in a city of the first class, or by its agents for 
36.18 	it, in cash or otherwise.
36.19 	(b) By July 31 and December 31 of each year, the commissioner of management 
36.20 	and budget shall pay to the relief association in each city of the first class a warrant for 
36.21 	an amount equal to the total amount of the surcharge on the premiums collected within 
36.22 	thethat city since the previous payment.
36.23 	(c) The treasurer of the relief associationcity shall place the money received under 
36.24 	this subdivision in thea special account or fund of the relief association to defray all or a 
36.25 	a portion of the employer contribution requirement of public employees police and fire 
36.26 	plan coverage for city firefighters.

36.27 	Sec. 48. Minnesota Statutes 2012, section 345.381, is amended to read:
36.28 	345.381 PROPERTY HELD BY MINNESOTA PUBLIC PENSION FUND.
36.29 	No amounts of money held or owing by a public pension fund enumerated in section 
36.30 	356.20, subdivision 2, or 356.30, subdivision 3, or governed by sections 69.77 or69.771 to 
36.31 	69.776shallor sections 31 to 43 may be presumed to have been abandoned for purposes of 
36.32 	sections 345.41, 345.42, 345.43, 345.47 and 345.48 if the plan governing the public pension 
36.33 	fund includes a provision governing the disposition of unclaimed amounts of money.

37.1 	Sec. 49. Minnesota Statutes 2012, section 353.01, subdivision 2a, is amended to read:
37.2 		Subd. 2a.Included employees; mandatory membership. (a) Public employees 
37.3 	whose salary exceeds $425 in any month and who are not specifically excluded under 
37.4 	subdivision 2b or who have not been provided an option to participate under subdivision 
37.5 	2d, whether individually or by action of the governmental subdivision, must participate as 
37.6 	members of the association with retirement coverage by the general employees retirement 
37.7 	plan under this chapter, the public employees police and fire retirement plan under this 
37.8 	chapter, or the local government correctional employees retirement plan under chapter 
37.9 	353E, whichever applies. Membership commences as a condition of their employment on 
37.10 	the first day of their employment or on the first day that the eligibility criteria are met, 
37.11 	whichever is later. Public employees include but are not limited to:
37.12 	(1) persons whose salary meets the threshold in this paragraph from employment in 
37.13 	one or more positions within one governmental subdivision;
37.14 	(2) elected county sheriffs;
37.15 	(3) persons who are appointed, employed, or contracted to perform governmental 
37.16 	functions that by law or local ordinance are required of a public officer, including, but 
37.17 	not limited to:
37.18 	(i) town and city clerk or treasurer;
37.19 	(ii) county auditor, treasurer, or recorder;
37.20 	(iii) city manager as defined in section 353.028 who does not exercise the option 
37.21 	provided under subdivision 2d; or
37.22 	(iv) emergency management director, as provided under section 12.25;
37.23 	(4) physicians under section 353D.01, subdivision 2, who do not elect public 
37.24 	employees defined contribution plan coverage under section 353D.02, subdivision 2;
37.25 	(5) full-time employees of the Dakota County Agricultural Society;
37.26 	(6) employees of the Minneapolis Firefighters Relief Association or Minneapolis 
37.27 	Police Relief Association who are not excluded employees under subdivision 2b due 
37.28 	to coverage by the relief association pension plan and who elected general employee 
37.29 	retirement plan coverage before August 20, 2009;
37.30 	(7)(6) employees of the Red Wing Port Authority who were first employed by the 
37.31 	Red Wing Port Authority before May 1, 2011, and who are not excluded employees 
37.32 	under subdivision 2b; and
37.33 	(8)(7) employees of the Seaway Port Authority of Duluth who are not excluded 
37.34 	employees under subdivision 2b.
37.35 	(b) A public employee or elected official who was a member of the association on 
37.36 	June 30, 2002, based on employment that qualified for membership coverage by the public 
38.1 	employees retirement plan or the public employees police and fire plan under this chapter, 
38.2 	or the local government correctional employees retirement plan under chapter 353E as of 
38.3 	June 30, 2002, retains that membership for the duration of the person's employment in that 
38.4 	position or incumbency in elected office. Except as provided in subdivision 28, the person 
38.5 	shall participate as a member until the employee or elected official terminates public 
38.6 	employment under subdivision 11a or terminates membership under subdivision 11b.
38.7 	(c) If the salary of an included public employee is less than $425 in any subsequent 
38.8 	month, the member retains membership eligibility.
38.9 	(d) For the purpose of participation in the MERF division of the general employees 
38.10 	retirement plan, public employees include employees who were members of the former 
38.11 	Minneapolis Employees Retirement Fund on June 29, 2010, and who participate as 
38.12 	members of the MERF division of the association.

38.13 	Sec. 50. Minnesota Statutes 2012, section 353.01, subdivision 2b, is amended to read:
38.14 		Subd. 2b.Excluded employees. (a) The following public employees are not eligible 
38.15 	to participate as members of the association with retirement coverage by the general 
38.16 	employees retirement plan, the local government correctional employees retirement plan 
38.17 	under chapter 353E, or the public employees police and fire retirement plan:
38.18 	(1) persons whose salary from one governmental subdivision never exceeds $425 in 
38.19 	a month;
38.20 	(2) public officers who are elected to a governing body, city mayors, or persons who 
38.21 	are appointed to fill a vacancy in an elective office of a governing body, whose term of office 
38.22 	commences on or after July 1, 2002, for the service to be rendered in that elective position;
38.23 	(3) election officers or election judges;
38.24 	(4) patient and inmate personnel who perform services for a governmental 
38.25 	subdivision;
38.26 	(5) except as otherwise specified in subdivision 12a, employees who are hired for 
38.27 	a temporary position as defined under subdivision 12a, and employees who resign from 
38.28 	a nontemporary position and accept a temporary position within 30 days in the same 
38.29 	governmental subdivision;
38.30 	(6) employees who are employed by reason of work emergency caused by fire, 
38.31 	flood, storm, or similar disaster;
38.32 	(7) employees who by virtue of their employment in one governmental subdivision 
38.33 	are required by law to be a member of and to contribute to any of the plans or funds 
38.34 	administered by the Minnesota State Retirement System, the Teachers Retirement 
38.35 	Association, the Duluth Teachers Retirement Fund Association, and the St. Paul Teachers 
39.1 	Retirement Fund Association, or any police or firefighters relief association governed by 
39.2 	section 69.77 that has not consolidated with the Public Employees Retirement Association, 
39.3 	or any local police or firefighters consolidation account who have not elected the type of 
39.4 	benefit coverage provided by the public employees police and fire fund under sections 
39.5 	353A.01 to 353A.10, or any persons covered by section 353.665, subdivision 4, 5, or 6, 
39.6 	who have not elected public employees police and fire plan benefit coverage. This clause 
39.7 	must not be construed to prevent a person from being a member of and contributing to 
39.8 	the Public Employees Retirement Association and also belonging to and contributing to 
39.9 	another public pension plan or fund for other service occurring during the same period 
39.10 	of time. A person who meets the definition of "public employee" in subdivision 2 by 
39.11 	virtue of other service occurring during the same period of time becomes a member of the 
39.12 	association unless contributions are made to another public retirement fund on the salary 
39.13 	based on the other service or to the Teachers Retirement Association by a teacher as 
39.14 	defined in section 354.05, subdivision 2;
39.15 	(8) persons who are members of a religious order and are excluded from coverage 
39.16 	under the federal Old Age, Survivors, Disability, and Health Insurance Program for the 
39.17 	performance of service as specified in United States Code, title 42, section 410(a)(8)(A), 
39.18 	as amended through January 1, 1987, if no irrevocable election of coverage has been made 
39.19 	under section 3121(r) of the Internal Revenue Code of 1954, as amended;
39.20 	(9) employees of a governmental subdivision who have not reached the age of 
39.21 	23 and are enrolled on a full-time basis to attend or are attending classes on a full-time 
39.22 	basis at an accredited school, college, or university in an undergraduate, graduate, or 
39.23 	professional-technical program, or a public or charter high school;
39.24 	(10) resident physicians, medical interns, and pharmacist residents and pharmacist 
39.25 	interns who are serving in a degree or residency program in public hospitals or clinics;
39.26 	(11) students who are serving in an internship or residency program sponsored 
39.27 	by an accredited educational institution;
39.28 	(12) persons who hold a part-time adult supplementary technical college license who 
39.29 	render part-time teaching service in a technical college;
39.30 	(13) except for employees of Hennepin County or Hennepin Healthcare System, Inc., 
39.31 	foreign citizens who are employed by a governmental subdivision under a work permit, or 
39.32 	an H-1b visa initially issued or extended for a combined period less than three years of 
39.33 	employment. Upon extension of the employment beyond the three-year period, the foreign 
39.34 	citizens must be reported for membership beginning the first of the month thereafter 
39.35 	provided the monthly earnings threshold as provided under subdivision 2a is met;
40.1 	(14) public hospital employees who elected not to participate as members of the 
40.2 	association before 1972 and who did not elect to participate from July 1, 1988, to October 
40.3 	1, 1988;
40.4 	(15) except as provided in section 353.86, volunteer ambulance service personnel, as 
40.5 	defined in subdivision 35, but persons who serve as volunteer ambulance service personnel 
40.6 	may still qualify as public employees under subdivision 2 and may be members of the 
40.7 	Public Employees Retirement Association and participants in the general employees 
40.8 	retirement plan or the public employees police and fire plan, whichever applies, on the 
40.9 	basis of compensation received from public employment service other than service as 
40.10 	volunteer ambulance service personnel;
40.11 	(16) except as provided in section 353.87, volunteer firefighters, as defined in 
40.12 	subdivision 36, engaging in activities undertaken as part of volunteer firefighter duties, 
40.13 	but a person who is a volunteer firefighter may still qualify as a public employee under 
40.14 	subdivision 2 and may be a member of the Public Employees Retirement Association and 
40.15 	a participant in the general employees retirement plan or the public employees police 
40.16 	and fire plan, whichever applies, on the basis of compensation received from public 
40.17 	employment activities other than those as a volunteer firefighter;
40.18 	(17) pipefitters and associated trades personnel employed by Independent School 
40.19 	District No. 625, St. Paul, with coverage under a collective bargaining agreement by the 
40.20 	pipefitters local 455 pension plan who were either first employed after May 1, 1997, or, 
40.21 	if first employed before May 2, 1997, elected to be excluded under Laws 1997, chapter 
40.22 	241, article 2, section 12;
40.23 	(18) electrical workers, plumbers, carpenters, and associated trades personnel who 
40.24 	are employed by Independent School District No. 625, St. Paul, or the city of St. Paul, 
40.25 	who have retirement coverage under a collective bargaining agreement by the Electrical 
40.26 	Workers Local 110 pension plan, the United Association Plumbers Local 34 pension plan, 
40.27 	or the pension plan applicable to Carpenters Local 87 who were either first employed after 
40.28 	May 1, 2000, or, if first employed before May 2, 2000, elected to be excluded under 
40.29 	Laws 2000, chapter 461, article 7, section 5;
40.30 	(19) bricklayers, allied craftworkers, cement masons, glaziers, glassworkers, 
40.31 	painters, allied tradesworkers, and plasterers who are employed by the city of St. Paul 
40.32 	or Independent School District No. 625, St. Paul, with coverage under a collective 
40.33 	bargaining agreement by the Bricklayers and Allied Craftworkers Local 1 pension plan, 
40.34 	the Cement Masons Local 633 pension plan, the Glaziers and Glassworkers Local L-1324 
40.35 	pension plan, the Painters and Allied Trades Local 61 pension plan, or the Twin Cities 
40.36 	Plasterers Local 265 pension plan who were either first employed after May 1, 2001, or if 
41.1 	first employed before May 2, 2001, elected to be excluded under Laws 2001, First Special 
41.2 	Session chapter 10, article 10, section 6;
41.3 	(20) plumbers who are employed by the Metropolitan Airports Commission, with 
41.4 	coverage under a collective bargaining agreement by the Plumbers Local 34 pension plan, 
41.5 	who either were first employed after May 1, 2001, or if first employed before May 2, 
41.6 	2001, elected to be excluded under Laws 2001, First Special Session chapter 10, article 
41.7 	10, section 6;
41.8 	(21) employees who are hired after June 30, 2002, to fill seasonal positions under 
41.9 	subdivision 12b which are limited in duration by the employer to 185 consecutive calendar 
41.10 	days or less in each year of employment with the governmental subdivision;
41.11 	(22) persons who are provided supported employment or work-study positions 
41.12 	by a governmental subdivision and who participate in an employment or industries 
41.13 	program maintained for the benefit of these persons where the governmental subdivision 
41.14 	limits the position's duration to three years or less, including persons participating in a 
41.15 	federal or state subsidized on-the-job training, work experience, senior citizen, youth, or 
41.16 	unemployment relief program where the training or work experience is not provided as a 
41.17 	part of, or for, future permanent public employment;
41.18 	(23) independent contractors and the employees of independent contractors;
41.19 	(24) reemployed annuitants of the association during the course of that 
41.20 	reemployment; and
41.21 	(25) persons appointed to serve on a board or commission of a governmental 
41.22 	subdivision or an instrumentality thereof.
41.23 	(b) Any person performing the duties of a public officer in a position defined in 
41.24 	subdivision 2a, paragraph (a), clause (3), is not an independent contractor and is not an 
41.25 	employee of an independent contractor.

41.26 	Sec. 51. Minnesota Statutes 2012, section 353.01, subdivision 6, is amended to read:
41.27 		Subd. 6.Governmental subdivision. (a) "Governmental subdivision" means a 
41.28 	county, city, town, school district within this state, or a department, unit or instrumentality 
41.29 	of state or local government, or any public body established under state or local 
41.30 	authority that has a governmental purpose, is under public control, is responsible for the 
41.31 	employment and payment of the salaries of employees of the entity, and receives a major 
41.32 	portion of its revenues from taxation, fees, assessments or from other public sources.
41.33 	(b) Governmental subdivision also means the Public Employees Retirement 
41.34 	Association, the League of Minnesota Cities, the Association of Metropolitan 
41.35 	Municipalities, charter schools formed under section 124D.10, service cooperatives 
42.1 	exercising retirement plan participation under section 123A.21, subdivision 5, joint powers 
42.2 	boards organized under section 471.59, subdivision 11, paragraph (a), family service 
42.3 	collaboratives and children's mental health collaboratives organized under section 471.59, 
42.4 	subdivision 11, paragraph (b) or (c), provided that the entities creating the collaboratives 
42.5 	are governmental units that otherwise qualify for retirement plan membership, public 
42.6 	hospitals owned or operated by, or an integral part of, a governmental subdivision or 
42.7 	governmental subdivisions, the Association of Minnesota Counties, the Minnesota 
42.8 	Inter-county Association, the Minnesota Municipal Utilities Association, the Metropolitan 
42.9 	Airports Commission, the University of Minnesota with respect to police officers covered 
42.10 	by the public employees police and fire retirement plan, the Minneapolis Employees 
42.11 	Retirement Fund for employment initially commenced after June 30, 1979, the Range 
42.12 	Association of Municipalities and Schools, soil and water conservation districts, economic 
42.13 	development authorities created or operating under sections 469.090 to 469.108, the Port 
42.14 	Authority of the city of St. Paul, the Seaway Port Authority of Duluth, the Red Wing 
42.15 	Port Authority, the Spring Lake Park Fire Department, incorporated, the Lake Johanna 
42.16 	Volunteer Fire Department, incorporated, the Red Wing Environmental Learning Center, 
42.17 	the Dakota County Agricultural Society, and Hennepin Healthcare System, Inc., and the 
42.18 	Minneapolis Firefighters Relief Association and Minneapolis Police Relief Association 
42.19 	with respect to staff covered by the Public Employees Retirement Association general plan.
42.20 	(c) Governmental subdivision does not mean any municipal housing and 
42.21 	redevelopment authority organized under the provisions of sections 469.001 to 469.047; 
42.22 	or any port authority organized under sections 469.048 to 469.089 other than the Port 
42.23 	Authority of the city of St. Paul or the Seaway Port Authority of Duluth and other than 
42.24 	the Red Wing Port Authority; or any hospital district organized or reorganized prior to 
42.25 	July 1, 1975, under sections 447.31 to 447.37 or the successor of the district; or the board 
42.26 	of a family service collaborative or children's mental health collaborative organized 
42.27 	under sections 124D.23, 245.491 to 245.495, or 471.59, if that board is not controlled 
42.28 	by representatives of governmental units.
42.29 	(d) A nonprofit corporation governed by chapter 317A or organized under Internal 
42.30 	Revenue Code, section 501(c)(3), which is not covered by paragraph (a) or (b), is not a 
42.31 	governmental subdivision unless the entity has obtained a written advisory opinion from 
42.32 	the United States Department of Labor or a ruling from the Internal Revenue Service 
42.33 	declaring the entity to be an instrumentality of the state so as to provide that any future 
42.34 	contributions by the entity on behalf of its employees are contributions to a governmental 
42.35 	plan within the meaning of Internal Revenue Code, section 414(d).
43.1 	(e) A public body created by state or local authority may request membership on 
43.2 	behalf of its employees by providing sufficient evidence that it meets the requirements in 
43.3 	paragraph (a).
43.4 	(f) An entity determined to be a governmental subdivision is subject to the reporting 
43.5 	requirements of this chapter upon receipt of a written notice of eligibility from the 
43.6 	association.

43.7 	Sec. 52. Minnesota Statutes 2012, section 353.01, subdivision 10, is amended to read:
43.8 		Subd. 10.Salary. (a) Subject to the limitations of section 356.611, "salary" means:
43.9 	(1) the periodic compensation of a public employee, before deductions for deferred 
43.10 	compensation, supplemental retirement plans, or other voluntary salary reduction 
43.11 	programs, and also means "wages" and includes net income from fees; and
43.12 	(2) for a public employee who is covered by a supplemental retirement plan under 
43.13 	section 356.24, subdivision 1, clause (8), (9), or (10), which require all plan contributions 
43.14 	be made by the employer, the contribution to the applicable supplemental retirement plan 
43.15 	when an agreement between the parties establishes that the contribution will either result 
43.16 	in a mandatory reduction of employees' wages through payroll withholdings, or be made 
43.17 	in lieu of an amount that would otherwise be paid as wages; and.
43.18 	(3) for a public employee who has prior service covered by a local police or 
43.19 	firefighters relief association that has consolidated with the Public Employees Retirement 
43.20 	Association or to which section 353.665 applies and who has elected coverage either 
43.21 	under the public employees police and fire fund benefit plan under section 353A.08 
43.22 	following the consolidation or under section 353.665, subdivision 4, the rate of salary 
43.23 	upon which member contributions to the special fund of the relief association were made 
43.24 	prior to the effective date of the consolidation as specified by law and by bylaw provisions 
43.25 	governing the relief association on the date of the initiation of the consolidation procedure 
43.26 	and the actual periodic compensation of the public employee after the effective date of 
43.27 	consolidation.
43.28 	(b) Salary does not mean:
43.29 	(1) the fees paid to district court reporters, unused annual vacation or sick leave 
43.30 	payments, in lump-sum or periodic payments, severance payments, reimbursement of 
43.31 	expenses, lump-sum settlements not attached to a specific earnings period, or workers' 
43.32 	compensation payments;
43.33 	(2) employer-paid amounts used by an employee toward the cost of insurance 
43.34 	coverage, employer-paid fringe benefits, flexible spending accounts, cafeteria plans, health 
43.35 	care expense accounts, day care expenses, or any payments in lieu of any employer-paid 
44.1 	group insurance coverage, including the difference between single and family rates that 
44.2 	may be paid to a member with single coverage and certain amounts determined by the 
44.3 	executive director to be ineligible;
44.4 	(3) the amount equal to that which the employing governmental subdivision would 
44.5 	otherwise pay toward single or family insurance coverage for a covered employee when, 
44.6 	through a contract or agreement with some but not all employees, the employer:
44.7 	(i) discontinues, or for new hires does not provide, payment toward the cost of the 
44.8 	employee's selected insurance coverages under a group plan offered by the employer;
44.9 	(ii) makes the employee solely responsible for all contributions toward the cost of 
44.10 	the employee's selected insurance coverages under a group plan offered by the employer, 
44.11 	including any amount the employer makes toward other employees' selected insurance 
44.12 	coverages under a group plan offered by the employer; and
44.13 	(iii) provides increased salary rates for employees who do not have any 
44.14 	employer-paid group insurance coverages;
44.15 	(4) except as provided in section 353.86 or 353.87, compensation of any kind paid to 
44.16 	volunteer ambulance service personnel or volunteer firefighters, as defined in subdivision 
44.17 	35 or 36;
44.18 	(5) the amount of compensation that exceeds the limitation provided in section 
44.19 	356.611; and
44.20 	(6) amounts paid by a federal or state grant for which the grant specifically 
44.21 	prohibits grant proceeds from being used to make pension plan contributions, unless the 
44.22 	contributions to the plan are made from sources other than the federal or state grant.
44.23 	(c) Amounts provided to an employee by the employer through a grievance 
44.24 	proceeding or a legal settlement are salary only if the settlement is reviewed by the 
44.25 	executive director and the amounts are determined by the executive director to be 
44.26 	consistent with paragraph (a) and prior determinations.

44.27 	Sec. 53. Minnesota Statutes 2012, section 353.01, subdivision 16, is amended to read:
44.28 		Subd. 16.Allowable service; limits and computation. (a) "Allowable service" 
44.29 	means:
44.30 	(1) service during years of actual membership in the course of which employee 
44.31 	deductions were withheld from salary and contributions were made at the applicable rates 
44.32 	under section 353.27, 353.65, or 353E.03;
44.33 	(2) periods of service covered by payments in lieu of salary deductions under 
44.34 	sections 353.27, subdivision 12, and 353.35;
45.1 	(3) service in years during which the public employee was not a member but for 
45.2 	which the member later elected, while a member, to obtain credit by making payments to 
45.3 	the fund as permitted by any law then in effect;
45.4 	(4) a period of authorized leave of absence with pay from which deductions for 
45.5 	employee contributions are made, deposited, and credited to the fund;
45.6 	(5) a period of authorized personal, parental, or medical leave of absence without 
45.7 	pay, including a leave of absence covered under the federal Family Medical Leave Act, 
45.8 	that does not exceed one year, and for which a member obtained service credit for each 
45.9 	month in the leave period by payment under section 353.0161 to the fund made in place of 
45.10 	salary deductions. An employee must return to public service and render a minimum of 
45.11 	three months of allowable service in order to be eligible to make payment under section 
45.12 	353.0161 for a subsequent authorized leave of absence without pay. Upon payment, the 
45.13 	employee must be granted allowable service credit for the purchased period;
45.14 	(6) a periodic, repetitive leave that is offered to all employees of a governmental 
45.15 	subdivision. The leave program may not exceed 208 hours per annual normal work cycle 
45.16 	as certified to the association by the employer. A participating member obtains service 
45.17 	credit by making employee contributions in an amount or amounts based on the member's 
45.18 	average salary, excluding overtime pay, that would have been paid if the leave had not been 
45.19 	taken. The employer shall pay the employer and additional employer contributions on 
45.20 	behalf of the participating member. The employee and the employer are responsible to pay 
45.21 	interest on their respective shares at the rate of 8.5 percent a year, compounded annually, 
45.22 	from the end of the normal cycle until full payment is made. An employer shall also make 
45.23 	the employer and additional employer contributions, plus 8.5 percent interest, compounded 
45.24 	annually, on behalf of an employee who makes employee contributions but terminates 
45.25 	public service. The employee contributions must be made within one year after the end of 
45.26 	the annual normal working cycle or within 30 days after termination of public service, 
45.27 	whichever is sooner. The executive director shall prescribe the manner and forms to be 
45.28 	used by a governmental subdivision in administering a periodic, repetitive leave. Upon 
45.29 	payment, the member must be granted allowable service credit for the purchased period;
45.30 	(7) an authorized temporary or seasonal layoff under subdivision 12, limited to three 
45.31 	months allowable service per authorized temporary or seasonal layoff in one calendar year. 
45.32 	An employee who has received the maximum service credit allowed for an authorized 
45.33 	temporary or seasonal layoff must return to public service and must obtain a minimum of 
45.34 	three months of allowable service subsequent to the layoff in order to receive allowable 
45.35 	service for a subsequent authorized temporary or seasonal layoff;
46.1 	(8) a period during which a member is absent from employment by a governmental 
46.2 	subdivision by reason of service in the uniformed services, as defined in United States 
46.3 	Code, title 38, section 4303(13), if the member returns to public service with the same 
46.4 	governmental subdivision upon discharge from service in the uniformed service within the 
46.5 	time frames required under United States Code, title 38, section 4312(e), provided that 
46.6 	the member did not separate from uniformed service with a dishonorable or bad conduct 
46.7 	discharge or under other than honorable conditions. The service must be credited if the 
46.8 	member pays into the fund equivalent employee contributions based upon the contribution 
46.9 	rate or rates in effect at the time that the uniformed service was performed multiplied by 
46.10 	the full and fractional years being purchased and applied to the annual salary rate. The 
46.11 	annual salary rate is the average annual salary, excluding overtime pay, during the purchase 
46.12 	period that the member would have received if the member had continued to be employed 
46.13 	in covered employment rather than to provide uniformed service, or, if the determination 
46.14 	of that rate is not reasonably certain, the annual salary rate is the member's average salary 
46.15 	rate, excluding overtime pay, during the 12-month period of covered employment rendered 
46.16 	immediately preceding the period of the uniformed service. Payment of the member 
46.17 	equivalent contributions must be made during a period that begins with the date on which 
46.18 	the individual returns to public employment and that is three times the length of the 
46.19 	military leave period, or within five years of the date of discharge from the military service, 
46.20 	whichever is less. If the determined payment period is less than one year, the contributions 
46.21 	required under this clause to receive service credit may be made within one year of the 
46.22 	discharge date. Payment may not be accepted following 30 days after termination of 
46.23 	public service under subdivision 11a. If the member equivalent contributions provided for 
46.24 	in this clause are not paid in full, the member's allowable service credit must be prorated 
46.25 	by multiplying the full and fractional number of years of uniformed service eligible for 
46.26 	purchase by the ratio obtained by dividing the total member contributions received by the 
46.27 	total member contributions otherwise required under this clause. The equivalent employer 
46.28 	contribution, and, if applicable, the equivalent additional employer contribution must be 
46.29 	paid by the governmental subdivision employing the member if the member makes the 
46.30 	equivalent employee contributions. The employer payments must be made from funds 
46.31 	available to the employing unit, using the employer and additional employer contribution 
46.32 	rate or rates in effect at the time that the uniformed service was performed, applied to the 
46.33 	same annual salary rate or rates used to compute the equivalent member contribution. The 
46.34 	governmental subdivision involved may appropriate money for those payments. The 
46.35 	amount of service credit obtainable under this section may not exceed five years unless a 
46.36 	longer purchase period is required under United States Code, title 38, section 4312. The 
47.1 	employing unit shall pay interest on all equivalent member and employer contribution 
47.2 	amounts payable under this clause. Interest must be computed at a rate of 8.5 percent 
47.3 	compounded annually from the end of each fiscal year of the leave or the break in service 
47.4 	to the end of the month in which the payment is received. Upon payment, the employee 
47.5 	must be granted allowable service credit for the purchased period; or
47.6 	(9) a period specified under section 353.0162.
47.7 	(b) For calculating benefits under sections 353.30, 353.31, 353.32, and 353.33 for 
47.8 	state officers and employees displaced by the Community Corrections Act, chapter 401, 
47.9 	and transferred into county service under section 401.04, "allowable service" means the 
47.10 	combined years of allowable service as defined in paragraph (a), clauses (1) to (6), and 
47.11 	section 352.01, subdivision 11.
47.12 	(c) For a public employee who has prior service covered by a local police or 
47.13 	firefighters relief association that has consolidated with the Public Employees Retirement 
47.14 	Association under chapter 353A or to which section 353.665 applies, and who has 
47.15 	elected the type of benefit coverage provided by the public employees police and fire 
47.16 	fund either under section 353A.08 following the consolidation or under section 353.665, 
47.17 	subdivision 4, "allowable service" is a period of service credited by the local police or 
47.18 	firefighters relief association as of the effective date of the consolidation based on law 
47.19 	and on bylaw provisions governing the relief association on the date of the initiation 
47.20 	of the consolidation procedure.
47.21 	(d)(c) No member may receive more than 12 months of allowable service credit in a 
47.22 	year either for vesting purposes or for benefit calculation purposes. For an active member 
47.23 	who was an active member of the former Minneapolis Firefighters Relief Association 
47.24 	on December 29, 2011, "allowable service" is the period of service credited by the 
47.25 	Minneapolis Firefighters Relief Association as reflected in the transferred records of the 
47.26 	association up to December 30, 2011, and the period of service credited under paragraph 
47.27 	(a), clause (1), after December 30, 2011. For an active member who was an active member 
47.28 	of the former Minneapolis Police Relief Association on December 29, 2011, "allowable 
47.29 	service" is the period of service credited by the Minneapolis Police Relief Association as 
47.30 	reflected in the transferred records of the association up to December 30, 2011, and the 
47.31 	period of service credited under paragraph (a), clause (1), after December 30, 2011.
47.32 	(e)(d) MS 2002 [Expired]

47.33 	Sec. 54. Minnesota Statutes 2012, section 353.64, subdivision 1a, is amended to read:
47.34 		Subd. 1a.Police and fire plan; other members. (a) A person who prior to July 
47.35 	1, 1961, was a member of the police and fire plan, by virtue of being a police officer or 
48.1 	firefighter, shall, as long as the person remains in either position, continue membership in 
48.2 	the plan.
48.3 	(b) A person who was employed by a governmental subdivision as a police officer 
48.4 	and was a member of the police and fire plan on July 1, 1978, by virtue of being a police 
48.5 	officer as defined by this section on that date, and if employed by the same governmental 
48.6 	subdivision in a position in the same department in which the person was employed on 
48.7 	that date, continues to be a member of the plan, whether or not that person has the power 
48.8 	of arrest by warrant and is licensed by the Peace Officers Standards and Training Board 
48.9 	after that date.
48.10 	(c)(b) A person who was employed as a correctional officer by Rice county before 
48.11 	July 1, 1998, for the duration of employment in the correctional position held on July 1, 
48.12 	1998, continues to be a member of the public employees police and fire plan, whether or 
48.13 	not the person has the power of arrest by warrant and is licensed by the Peace Officers 
48.14 	Standards and Training Board after that date.
48.15 	(d) A person who was employed by a governmental subdivision as a police officer 
48.16 	or a firefighter, whichever applies, was an active member of the local police or salaried 
48.17 	firefighters relief association located in that governmental subdivision by virtue of that 
48.18 	employment as of the effective date of the consolidation as authorized by sections 
48.19 	353A.01 to 353A.10, and has elected coverage by the public employees police and fire 
48.20 	plan, shall become a member of the police and fire plan after that date if employed by 
48.21 	the same governmental subdivision in a position in the same department in which the 
48.22 	person was employed on that date.
48.23 	(e) Any police officer or firefighter of a relief association that has consolidated 
48.24 	with the association for which the employee has not elected coverage by the public 
48.25 	employees police and fire plan as provided in sections 353A.01 to 353A.10, or any police 
48.26 	officer or firefighter to whom section 353.665 applies who has not elected coverage by 
48.27 	the public employees police and fire plan as provided in section 353.665, subdivision 4, 
48.28 	must become a member of the public employees police and fire plan, but is not subject 
48.29 	to the provisions of sections 353.651 to 353.659 unless an election for such coverage is 
48.30 	made under section 353.665, subdivision 4.

48.31 	Sec. 55. Minnesota Statutes 2012, section 353.659, is amended to read:
48.32 	353.659 LOCAL RELIEF ASSOCIATION CONSOLIDATION ACCOUNT 
48.33 	BENEFITS.
48.34 	(a) For any person who hashad prior service covered by a local police or firefighters 
48.35 	relief association which has consolidatedmerged with the public employees police and 
49.1 	fire retirement associationplan and who has elected the type of benefit coverage provided 
49.2 	by the public employees police and fire fund benefit plan under section 353A.08 following 
49.3 	the consolidation as permitted by the applicable law, anythe retirement benefits payable 
49.4 	are governed by the applicable provisions of this chapter.
49.5 	(b) For any person who hashad prior service covered by a local police or firefighters 
49.6 	relief association which has consolidatedmerged with the public employees police and fire 
49.7 	retirement associationplan and who hasdid not electedelect the type of benefit coverage 
49.8 	provided by the public employees police and fire fund benefit plan under section 353A.08
49.9 	 following the consolidation as permitted by the applicable law, anythe retirement benefits 
49.10 	payable are governed by the provisions of Minnesota Statutes 2012, sections 353B.01 to 
49.11 	353B.13 which applyapplied to the applicable former relief association or by section 
49.12 	353.6511 or 353.6512, if applicable.

49.13 	Sec. 56. Minnesota Statutes 2012, section 353.665, subdivision 1, is amended to read:
49.14 		Subdivision 1.Merger authorized Application. (a) Notwithstanding any 
49.15 	provision of law to the contrary, unless the applicable municipality elects otherwise under 
49.16 	paragraph (b), everyThis section applies to the local police and fire relief associations or 
49.17 	consolidation account under chapter 353A in existence on March 1, 1999, becomes a part 
49.18 	ofaccounts that merged with the public employees police and fire plan and fund governed 
49.19 	by sections 353.63 to 353.659 on July 1, 1999 and are specified in paragraph (b).
49.20 	(b) If a municipality desires to retain its consolidation accountThe former local 
49.21 	police or fire relief associations or consolidation accounts, whichever applies, the 
49.22 	governing body of the municipality must adopt a resolution to that effect and must file a 
49.23 	copy of the resolution with the secretary of state, the state auditor, the legislative auditor, 
49.24 	the management and budget commissioner, the revenue commissioner, the executive 
49.25 	director of the public employees retirement association, and the executive director of 
49.26 	the Legislative Commission on Pensions and Retirement. The retention election must 
49.27 	apply to both consolidation accounts if the municipality is associated with more than 
49.28 	one consolidation account. The retention resolution must be adopted and filed with all 
49.29 	recipients before June 15, 1999. are:
49.30 	(1) the former local police and fire consolidation accounts that merged with the public 
49.31 	employees police and fire retirement plan and fund under Laws 1999, chapter 222, article 4;
49.32 	(2) the former Minneapolis Firefighters Relief Association;
49.33 	(3) the former Minneapolis Police Relief Association;
49.34 	(4) the former Fairmont Police Relief Association; and
49.35 	(5) the former Virginia Fire Consolidation Account.

50.1 	Sec. 57. Minnesota Statutes 2012, section 353.665, subdivision 5, is amended to read:
50.2 		Subd. 5.Benefit coverage for retirees and benefit recipients certain former local 
50.3 	relief association or consolidation account members. (a) A person who received a
50.4 	Except as provided in paragraph (b), (c), or (d), the annuity, service pension, a disability 
50.5 	pension or benefit, or a survivor benefit from a mergingattributable to or of a former 
50.6 	member of a former merged local police or fire consolidation account for the month of June 
50.7 	1999, and who hasdid not previously elected participation in the Minnesota postretirement 
50.8 	investment fund for any future postretirement adjustments rather than the postretirement 
50.9 	adjustment mechanism or mechanisms of the relief association benefit plan under 
50.10 	section 353A.08, subdivision 1, may elect participation in the Minnesota postretirement 
50.11 	investment fund for any future postretirement adjustments or retention of the 
50.12 	postretirement adjustment mechanism or mechanisms of the relief association benefit plan 
50.13 	as reflected in the applicable provisions of chapter 353B. This election must be in writing 
50.14 	on a form prescribed by the executive director and must be made before September 1, 
50.15 	1999. elect coverage by all or a portion of the public employees police and fire retirement 
50.16 	plan as permitted by applicable law must be calculated or computed under the benefit plan 
50.17 	provisions of the applicable former local police or paid firefighters relief association.
50.18 	(b) If an eligible person is a minor, the election must be made by the person's 
50.19 	parent or legal guardian. If the eligible person makes no affirmative election under this 
50.20 	subdivision, the person retains the postretirement adjustment mechanism or mechanisms of 
50.21 	the relief association benefit plan as reflected in the applicable provisions of chapter 353B.
50.22 	 The annuity, service pension, disability pension or benefit, or survivor benefit attributable 
50.23 	to or of a former member of the former Minneapolis Firefighters Relief Association or of 
50.24 	the former Minneapolis Police Relief Association must be calculated or computed under 
50.25 	sections 353.01, subdivision 10a or 10b, and 353.6511, or 353.6512, whichever applies.
50.26 	(c) The survivor benefit payable on behalf of any service pension or disability benefit 
50.27 	recipient who elects participation in the Minnesota postretirement investment fund must 
50.28 	be calculated under the relief association benefit plan in effect on the effective date of 
50.29 	consolidation under chapter 353A as reflected in the applicable provisions of chapter 353B.
50.30 	 The annuity, service pension, disability pension or benefit, or survivor benefit attributable 
50.31 	to or of a former member of the former Fairmont Police Relief Association must be 
50.32 	calculated or computed under Minnesota Statutes 2000, sections 423.41 to 423.46, 423.48 
50.33 	to 423.59, 423.61, and 423.62; Laws 1963, chapter 423; Laws 1977, chapter 100; and Laws 
50.34 	1999, chapter 222, article 3, section 4, except that the annual base salary figure for pension 
50.35 	and benefit determinations upon consolidation and for the balance of calendar year 2012 is 
51.1 	$106,666.67 and after December 31, 2012, annual postretirement adjustments of pensions 
51.2 	and benefits in force must be calculated solely under section 356.415, subdivision 1c.
51.3 	(d) The annuity, service pension, disability pension or benefit, or survivor benefit 
51.4 	attributable to or of a former member of the former Virginia firefighters consolidation 
51.5 	account must be calculated or computed under the election made under Minnesota 
51.6 	Statutes 2012, section 353A.08, unless the person made a subsequent election under Laws 
51.7 	2012, chapter 286, article 11, section 5, subdivision 4, subject to any additional ad hoc 
51.8 	postretirement adjustment under Laws 2012, chapter 286, article 11, section 5, subdivision 
51.9 	5, paragraph (d).

51.10 	Sec. 58. Minnesota Statutes 2012, section 353.665, subdivision 8, is amended to read:
51.11 		Subd. 8.Member and employer contributions. (a) Effective on the first day of the 
51.12 	first full pay period following June 30, 1999,Except as provided in paragraph (b), (c), 
51.13 	or (d), the employee contribution rate for mergingmerged former consolidation account 
51.14 	active members is the rate specified in section 353.65, subdivision 2, and the regular 
51.15 	municipal contribution rate on behalf of merged former consolidation account active 
51.16 	members is the rate specified in section 353.65, subdivision 3.
51.17 	(b) The municipality associated with a merging former local consolidation account 
51.18 	that had a positive value amortizable base calculation under subdivision 7, paragraph (d), 
51.19 	after the preliminary calculation or the second calculation, whichever applies, must make 
51.20 	an additional municipal contribution to the public employees police and fire plan for 
51.21 	the period from January 1, 2000, to December 31, 2009. The amount of the additional 
51.22 	municipal contribution is the amount calculated by the actuary retained under section 
51.23 	356.214 and certified by the executive director of the Public Employees Retirement 
51.24 	Association by which the amortizable base amount would be amortized on a level dollar 
51.25 	annual end-of-the-year contribution basis, using an 8.5 percent interest rate assumption. 
51.26 	The additional municipal contribution is payable during the month of January, is without 
51.27 	any interest, or if made after January 31, but before the next following December 31, 
51.28 	is payable with interest for the period since January 1 at a rate which is equal to the 
51.29 	preretirement interest rate assumption specified in section 356.215, subdivision 8, 
51.30 	applicable to the public employees police and fire fund expressed as a monthly rate and 
51.31 	compounded on a monthly basis or if made after December 31 of the year in which the 
51.32 	additional municipal contribution is due is payable with interest at a rate which is four 
51.33 	percent greater than the highest interest rate assumption specified in section 356.215, 
51.34 	subdivision 8, expressed as a monthly rate and compounded monthly from January 1 of the 
51.35 	year in which the additional municipal contribution is due until the date on which payment 
52.1 	is made. With respect to active members of the merged former Minneapolis Firefighters 
52.2 	Relief Association and the merged former Minneapolis Police Relief Association, there are 
52.3 	no employee contributions payable and the employer contribution on behalf of those active 
52.4 	members is at the rate specified in section 353.65, subdivision 3, applied to the active 
52.5 	member's salary. In addition, an additional municipal contribution is payable by the city of 
52.6 	Minneapolis annually on July 15, set at the amount calculated as of December 30, 2011, as 
52.7 	sufficient to amortize, on a level annual dollar basis by December 31, 2031, the unfunded 
52.8 	present value figure calculated as required by Laws 2011, First Special Session chapter 8, 
52.9 	article 6, section 14, subdivision 6, paragraph (a), and article 7, section 14, subdivision 
52.10 	6, paragraph (a). If the postretirement or preretirement interest rate actuarial assumption 
52.11 	applicable  to the public employees police and fire retirement plan under section 356.215, 
52.12 	subdivision  8, is modified from the rates specified in Minnesota Statutes 2010, section 
52.13 	356.215, subdivision 8, the remainder present value of future benefits amount calculation 
52.14 	under Laws 2011, First Special Session chapter 8, article 6, section 14, subdivision 6, 
52.15 	paragraph (a), and article 7, section 14, subdivision 6, paragraph (a), updated for  the passage 
52.16 	of time, must be revised and the amortization contribution by the city of  Minneapolis for 
52.17 	the balance of the amortization period must be redetermined by the actuary retained under 
52.18 	section 356.214 and certified by the executive director to the city of Minneapolis.
52.19 	(c) If there are assets of the former Fairmont Police Relief Association in excess of 
52.20 	the present value of future benefits as of June 29, 2012, these assets must be credited to an 
52.21 	interest bearing suspense account within the public employees police and fire retirement 
52.22 	fund, must be used to offset any amount payable under paragraph (a) until June 30, 2015, 
52.23 	and, after June 30, 2015, must be paid to the city of Fairmont. The suspense account must 
52.24 	be credited with the same rate of investment return as the public employees police and fire 
52.25 	retirement fund. If, after June 29, 2012, the postretirement or preretirement interest rate 
52.26 	actuarial assumption applicable to the public employees police and fire retirement plan 
52.27 	under section 356.215, subdivision 8, is modified from the rates specified in Minnesota 
52.28 	Statutes 2010, section 356.215, subdivision 8, the remainder present value of future 
52.29 	benefits amount calculation under paragraph (a), updated for the passage of time, must be 
52.30 	revised and the amortization contribution by the city of Fairmont for the balance of the 
52.31 	amortization period must be redetermined by the actuary retained under section 356.214 
52.32 	and certified by the executive director to the city of Fairmont.
52.33 	(d) If there was a remainder present value of future benefits amounts under 
52.34 	Laws 2012, chapter 286, article 11, section 5, subdivision 5, paragraph (a), the city of 
52.35 	Virginia shall pay an additional municipal contribution annually on or before December 
52.36 	31 sufficient to amortize on a level annual dollar basis by December 31, 2020, that 
53.1 	remainder present value of future benefits amounts of the former Virginia fire department 
53.2 	consolidation account. If, after June 29, 2012, the postretirement or preretirement interest 
53.3 	rate actuarial assumption applicable to the public employees police and fire retirement plan 
53.4 	under section 356.215, subdivision 8, is modified from the rates specified in Minnesota 
53.5 	Statutes 2010, section 356.215, subdivision 8, the remainder present value of future 
53.6 	benefits amount calculation under paragraph (a), updated for the passage of time, must be 
53.7 	revised and any amortization contribution by the city of Virginia for the balance of the 
53.8 	amortization period must be redetermined by the actuary retained under section 356.214 
53.9 	and certified by the executive director to the city of Virginia.

53.10 	Sec. 59. Minnesota Statutes 2012, section 353.71, subdivision 1, is amended to read:
53.11 		Subdivision 1.Eligibility. Any person who has been a member of a defined 
53.12 	benefit retirement plan administered by the Public Employees Retirement Association, 
53.13 	or a retirement plan administered by the Minnesota State Retirement System, or the 
53.14 	Teachers Retirement Association, or any other public retirement system in the state of 
53.15 	Minnesota having a like provision, except a retirement plan providing benefits for police 
53.16 	officers or firefighters governed by sections 69.77 or69.771 to 69.776, or by sections 31 
53.17 	to 43, is entitled, when qualified, to an annuity from each retirement plan if the total 
53.18 	allowable service in all retirement plans or in any two of these retirement plans totals the 
53.19 	number of years of allowable service required to receive a normal retirement annuity for 
53.20 	that retirement plan, provided that no portion of the allowable service upon which the 
53.21 	retirement annuity from one retirement plan is based is again used in the computation for 
53.22 	benefits from another retirement plan and provided further that the person has not taken a 
53.23 	refund from any one of these retirement plans since the person's membership in that 
53.24 	association or system last terminated. The annuity from each fund must be determined by 
53.25 	the appropriate provisions of the law except that the requirement that a person must have 
53.26 	at least a specific minimum period of allowable service in the respective association or 
53.27 	system does not apply for the purposes of this section if the combined service in two or 
53.28 	more of these retirement plans equals the number of years of allowable service required to 
53.29 	receive a normal retirement annuity for that retirement plan.

53.30 	Sec. 60. Minnesota Statutes 2012, section 356.20, subdivision 2, is amended to read:
53.31 		Subd. 2.Covered public pension plans and funds. This section applies to the 
53.32 	following public pension plans:
53.33 	(1) the general state employees retirement plan of the Minnesota State Retirement 
53.34 	System;
54.1 	(2) the general employees retirement plan of the Public Employees Retirement 
54.2 	Association;
54.3 	(3) the Teachers Retirement Association;
54.4 	(4) the State Patrol retirement plan;
54.5 	(5) the St. Paul Teachers Retirement Fund Association;
54.6 	(6) the Duluth Teachers Retirement Fund Association;
54.7 	(7) the University of Minnesota faculty retirement plan;
54.8 	(8) the University of Minnesota faculty supplemental retirement plan;
54.9 	(9) the judges retirement fund;
54.10 	(10) a police or firefighter's relief association specified or described in section 69.77, 
54.11 	subdivision 1a the Bloomington Fire Department Relief Association;
54.12 	(11) a volunteer firefighter relief association governed by section 69.771, subdivision 
54.13 	1;
54.14 	(12) the public employees police and fire plan of the Public Employees Retirement 
54.15 	Association;
54.16 	(13) the correctional state employees retirement plan of the Minnesota State 
54.17 	Retirement System;
54.18 	(14) the local government correctional service retirement plan of the Public 
54.19 	Employees Retirement Association; and
54.20 	(15) the voluntary statewide lump-sum volunteer firefighter retirement plan.

54.21 	Sec. 61. Minnesota Statutes 2012, section 356.215, subdivision 18, is amended to read:
54.22 		Subd. 18.Establishment of actuarial assumptions. (a) Before July 2, 2010, the 
54.23 	actuarial assumptions used for the preparation of actuarial valuations under this section 
54.24 	that are other than preretirement interest, postretirement interest, salary increase, and 
54.25 	payroll increase may be changed only with the approval of the Legislative Commission on 
54.26 	Pensions and Retirement or after a period of one year has elapsed since the date on which 
54.27 	the proposed assumption change or changes were received by the Legislative Commission 
54.28 	on Pensions and Retirement without commission action.
54.29 	(b) After July 1, 2010, the actuarial assumptions used for the preparation of actuarial 
54.30 	valuations under this section that are other than postretirement interest and preretirement 
54.31 	interest may be changed only with the approval of the Legislative Commission on 
54.32 	Pensions and Retirement or after a period of one year has elapsed since the date on which 
54.33 	the proposed assumption change or changes were received by the Legislative Commission 
54.34 	on Pensions and Retirement without commission action.
55.1 	(c) A change in the applicable actuarial assumptions may be proposed by the 
55.2 	governing board of the applicable pension fund or relief association, by the actuary 
55.3 	retained by the joint retirement systems under section 356.214 or by the actuary retained 
55.4 	by a local police or firefighters relief association governed by sections 69.77 or69.771 to 
55.5 	69.776 or by sections 31 to 43, if one is retained.

55.6 	Sec. 62. Minnesota Statutes 2012, section 356.216, is amended to read:
55.7 	356.216 CONTENTS OF ACTUARIAL VALUATIONS FOR LOCAL 
55.8 	POLICE AND FIRE FUNDS MONTHLY VOLUNTEER FIREFIGHTER RELIEF 
55.9 	ASSOCIATIONS.
55.10 	The provisions of section 356.215 that govern the contents of actuarial valuations 
55.11 	must apply to the Bloomington Fire Department Relief Association and to any local police 
55.12 	or fire pension fund ormonthly volunteer firefighter relief association required to make 
55.13 	an actuarial report under this section, except as follows:
55.14 	(1) in calculating normal cost and other requirements, if required to be expressed as 
55.15 	a level percentage of covered payroll, the salaries used in computing covered payroll must 
55.16 	be the maximum rate of salary on which retirement and survivorship credits and amounts 
55.17 	of benefits are determined and from which any member contributions are calculated and 
55.18 	deducted;
55.19 	(2)(1) in lieu of the amortization date specified in section 356.215, subdivision 
55.20 	11, the appropriate amortization target date specified in clause (2) or section 69.77, 
55.21 	subdivision 4, or69.773, subdivision 4, clause paragraph (c), must be used in calculating 
55.22 	any required amortization contribution, except that if the actuarial report;
55.23 	(2) for the Bloomington Fire Department Relief Association indicates an, any
55.24 	 unfunded actuarial accrued liability, the unfunded obligation is tomust be amortized on 
55.25 	a level dollar basis by December 31 of the year occurring 20 years later after the year 
55.26 	in which the unfunded actuarial accrued liability initially occurred, and, if subsequent 
55.27 	actuarial valuations for the Bloomington Fire Department Relief Association determine
55.28 	indicate a net actuarial experience loss incurred during the year which ended as of the day 
55.29 	before the most recent actuarial valuation date, any unfunded actuarial accrued liability 
55.30 	due to that loss is to be amortized on a level dollar basis by December 31 of the year 
55.31 	occurring 20 years later after the year in which the net actuarial experience loss occurred;
55.32 	(3) in addition to the tabulation of active members and annuitants provided for in 
55.33 	section 356.215, subdivision 13, the member contributions for active members for the 
55.34 	calendar year and the prospective annual retirement annuitiesservice pensions under the 
55.35 	benefit plan for active members must be reported;
56.1 	(4) actuarial valuations required under section 40 must be made annually and 
56.2 	actuarial valuations required under section 69.773, subdivision 2, must be made at least
56.3 	 every four years and actuarial valuations required under section 69.77 shall be made 
56.4 	annually or as frequently as required by generally accepted accounting principles in the 
56.5 	government sector, whichever frequency requirement is shorter;
56.6 	(5) the actuarial balance sheet showing accrued assets valued at market value if the 
56.7 	actuarial valuation is required to be prepared at least every four years or valued as current 
56.8 	assets under section 356.215, subdivision 1, paragraph (b) or (f), whichever applies, if the 
56.9 	actuarial valuation is required to be prepared annually, actuarial accrued liabilities, and the 
56.10 	unfunded actuarial accrued liability must include the following required reserves:
56.11 	(i) for active members:
56.12 	1. (A) retirement benefits or service pensions;
56.13 	2. (B) disability benefits; and
56.14 	3. refund liability due to death or withdrawal;
56.15 	4.(C) survivors' benefits;
56.16 	(ii) for deferred annuitants' benefits;
56.17 	(iii) for former members without vested rights;
56.18 	(iv) for annuitants;:
56.19 	1. (A) retirement annuities or service pensions;
56.20 	2. (B) disability annuities; and
56.21 	3. surviving spouses' annuities;
56.22 	4. surviving children's annuities; (C) survivor benefits.
56.23 	In addition to those required reserves, separate items must be shown for additional 
56.24 	benefits, if any, which may not be appropriately included in the reserves listed above; and
56.25 	(6) actuarial valuations are due to be filed with the state auditor by the first day of 
56.26 	the seventh month after the end of the fiscal year which the actuarial valuation covers.

56.27 	Sec. 63. Minnesota Statutes 2012, section 356.219, subdivision 1, is amended to read:
56.28 		Subdivision 1.Report required. (a) The State Board of Investment, on behalf 
56.29 	of the public pension funds and programs for which it is the investment authority, and 
56.30 	any Minnesota public pension plan that is not fully invested through the State Board of 
56.31 	Investment, including the Bloomington Fire Department Relief Association and a local 
56.32 	police orvolunteer firefighters relief association governed by sections 69.77 or69.771 to 
56.33 	69.775, shall report the information specified in subdivision 3 to the state auditor. The 
56.34 	state auditor may prescribe a form or forms for the purposes of the reporting requirements 
56.35 	contained in this section.
57.1 	(b) The Bloomington Fire Department Relief Association and a local police or
57.2 	volunteer firefighters relief association governed by section 69.77 or sections 69.771 to 
57.3 	69.775 is fully invested during a given calendar year for purposes of this section if all 
57.4 	assets of the applicable pension plan beyond sufficient cash equivalent investments to 
57.5 	cover six months expected expenses are invested under section 11A.17. The board of any 
57.6 	fully invested public pension plan remains responsible for submitting investment policy 
57.7 	statements and subsequent revisions as required by subdivision 3, paragraph (a).
57.8 	(c) For purposes of this section, the State Board of Investment is considered to be 
57.9 	the investment authority for any Minnesota public pension fund required to be invested by 
57.10 	the State Board of Investment under section 11A.23, or for any Minnesota public pension 
57.11 	fund authorized to invest in the supplemental investment fund under section 11A.17 and 
57.12 	which is fully invested by the State Board of Investment.
57.13 	(d) This section does not apply to the following plans:
57.14 	(1) the Minnesota unclassified employees retirement program under chapter 352D;
57.15 	(2) the public employees defined contribution plan under chapter 353D;
57.16 	(3) the individual retirement account plans under chapters 354B and 354D;
57.17 	(4) the higher education supplemental retirement plan under chapter 354C;
57.18 	(5) any alternative retirement benefit plan established under section 383B.914; and
57.19 	(6) the University of Minnesota faculty retirement plan.

57.20 	Sec. 64. Minnesota Statutes 2012, section 356.219, subdivision 2, is amended to read:
57.21 		Subd. 2.Asset class definition. (a) For purposes of this section, "asset class" 
57.22 	means any of the following asset groupings as authorized in applicable law, bylaws, or 
57.23 	articles of incorporation:
57.24 	(1) cash and any cash equivalent investments with maturities of one year or less 
57.25 	when issued;
57.26 	(2) debt securities with maturities greater than one year when issued, including 
57.27 	but not limited to mortgage participation certificates and pools, asset backed securities, 
57.28 	guaranteed investment contracts, and authorized government and corporate obligations of 
57.29 	corporations organized under laws of the United States or any state, or the Dominion of 
57.30 	Canada or its provinces;
57.31 	(3) stocks or convertible issues of any corporation organized under laws of the 
57.32 	United States or any state, or the Dominion of Canada or its provinces, or any corporation 
57.33 	listed on the New York Stock Exchange or the American Stock Exchange;
57.34 	(4) international stocks or convertible issues;
57.35 	(5) international debt securities; and
58.1 	(6) real estate and venture capital.
58.2 	(b) If the pension plan is investing under section 69.77, subdivision 9, section 69.775, 
58.3 	or any other applicable law, in open-end investment companies registered under the 
58.4 	federal Investment Company Act of 1940, or in the Minnesota supplemental investment 
58.5 	fund under section 11A.17, this investment must be included under an asset class indicated 
58.6 	in paragraph (a), clauses (1) through (6), as appropriate. If the investment vehicle includes 
58.7 	underlying securities from more than one asset class as indicated by paragraph (a), clauses 
58.8 	(1) through (6), the investment may be treated as a separate asset class.

58.9 	Sec. 65. Minnesota Statutes 2012, section 356.219, subdivision 8, is amended to read:
58.10 		Subd. 8.Timing of reports. (a) For salaried firefighter relief associations, police
58.11 	 the Bloomington Fire Department  Relief associations,Association and the volunteer 
58.12 	firefighter relief associations, the information required under this section must be 
58.13 	submitted by the due date for reports required under section 69.051, subdivision 1 or 1a, 
58.14 	as applicable. If a relief association satisfies the definition of a fully invested plan under 
58.15 	subdivision 1, paragraph (b), for the calendar year covered by the report required under 
58.16 	section 69.051, subdivision 1 or 1a, as applicable, the chief administrative officer of 
58.17 	the covered pension plan shall certify that compliance on a form prescribed by the state 
58.18 	auditor. The state auditor shall transmit annually to the State Board of Investment a list or 
58.19 	lists of covered pension plans which submitted certifications in order to facilitate reporting 
58.20 	by the State Board of Investment under paragraph (c).
58.21 	(b) For the St. Paul Teachers Retirement Fund Association, the Duluth Teachers 
58.22 	Retirement Fund Association, and the University of Minnesota faculty supplemental 
58.23 	retirement plan, the information required under this section must be submitted to the state 
58.24 	auditor by June 1 of each year.
58.25 	(c) The State Board of Investment, on behalf of pension funds specified in 
58.26 	subdivision 1, paragraph (c), must report information required under this section by 
58.27 	September 1 of each year.

58.28 	Sec. 66. Minnesota Statutes 2012, section 356.406, subdivision 1, is amended to read:
58.29 		Subdivision 1.Definitions. (a) Each of the words or terms defined in this 
58.30 	subdivision has the meaning indicated.
58.31 	(b) "Public pension plan" means any retirement plan or fund enumerated in section 
58.32 	356.20, subdivision 2, or 356.30, subdivision 3, the Bloomington Fire Department Relief 
58.33 	Association, any relief association governed by section 69.77 or sections 69.771 to 
58.34 	69.775, any retirement plan governed by chapter 354B or 354C, the Hennepin County 
59.1 	supplemental retirement plan governed by sections 383B.46 to 383B.52, or any housing 
59.2 	and redevelopment authority retirement plan.
59.3 	(c) "Public pension plan member" means a person who is a participant covered by 
59.4 	a public pension plan; a former participant of a public pension plan who has sufficient 
59.5 	service to be entitled to receive a future retirement annuity or service pension; a recipient 
59.6 	of a retirement annuity, service pension, or disability benefit from a public pension plan; or 
59.7 	a former participant of a public pension plan who has member or employee contributions 
59.8 	to the person's credit in the public pension plan.
59.9 	(d) "Survivor" means the surviving spouse, a former spouse, a surviving child, a 
59.10 	joint annuitant, a designated recipient of a second or remainder portion of an optional 
59.11 	annuity form, a beneficiary, or the estate of a deceased public pension plan member, as 
59.12 	those terms are commonly understood or defined in the benefit plan document of the 
59.13 	public pension plan.
59.14 	(e) "Survivor benefit" means a surviving spouse benefit, surviving child benefit, 
59.15 	second or remainder portion of an optional annuity form, a death benefit, a funeral benefit, 
59.16 	or a refund of member or employee contributions payable on account of the death of a 
59.17 	public pension plan member as provided for in the benefit plan document of the public 
59.18 	pension plan.

59.19 	Sec. 67. Minnesota Statutes 2012, section 356A.01, subdivision 19, is amended to read:
59.20 		Subd. 19.Pension fund. "Pension fund" means the assets amassed and held in a 
59.21 	pension plan, other than the general fund, as reserves for present and future payment 
59.22 	of benefits and administrative expenses. For the Bloomington Fire Department Relief 
59.23 	Association or a retirement plan governed by section 69.77 or by chapter 424A, the term 
59.24 	means the relief association special fund.

59.25 	Sec. 68. Minnesota Statutes 2012, section 356A.06, subdivision 4, is amended to read:
59.26 		Subd. 4.Economic interest statement. (a) Each member of the governing board 
59.27 	of a covered pension plan and the chief administrative officer of the plan shall file with 
59.28 	the plan a statement of economic interest.
59.29 	(b) For a covered pension plan other than a plan specified in paragraph (c), the 
59.30 	statement must contain the information required by section 10A.09, subdivision 5, and 
59.31 	any other information that the fiduciary or the governing board of the plan determines is 
59.32 	necessary to disclose a reasonably foreseeable potential or actual conflict of interest.
59.33 	(c) For a covered pension plan governed by sections 69.771 to 69.776 or a covered 
59.34 	pension plan governed by section 69.77 withthe Bloomington Fire Department Relief 
60.1 	Association if its special fund assets are under $8,000,000, the statement must contain 
60.2 	the following:
60.3 	(1) the person's principal occupation and principal place of business;
60.4 	(2) whether or not the person has an ownership of or interest of ten percent or greater 
60.5 	in an investment security brokerage business, a real estate sales business, an insurance 
60.6 	agency, a bank, a savings and loan, or another financial institution; and
60.7 	(3) any relationship or financial arrangement that can reasonably be expected to 
60.8 	give rise to a conflict of interest.
60.9 	(d) The statement must be filed annually with the chief administrative officer of 
60.10 	the plan and be available for public inspection during regular office hours at the office 
60.11 	of the pension plan.
60.12 	(e) A disclosure form meeting the requirements of the federal Investment Advisers 
60.13 	Act of 1940, United States Code, title 15, sections 80b-1 to 80b-21 as amended, and 
60.14 	filed with the State Board of Investment or the pension plan meets the requirements of 
60.15 	this subdivision.
60.16 	(f) The chief administrative officer of each covered pension plan, by January 15, 
60.17 	annually, shall transmit a certified listing of all individuals who have filed statements of 
60.18 	economic interest with the plan under this subdivision during the preceding 12 months 
60.19 	and the address of the office referenced in paragraph (d) to the Campaign Finance and 
60.20 	Public Disclosure Board.

60.21 	Sec. 69. Minnesota Statutes 2012, section 356A.07, subdivision 2, is amended to read:
60.22 		Subd. 2.Annual financial report. A covered pension plan shall provide each 
60.23 	active plan participant and benefit recipient with a copy of the most recent annual financial 
60.24 	report required by section 356.20 and a copy of the most recent actuarial evaluation, 
60.25 	if any, required by section 69.77,69.773, 356.215, or 356.216, or by section 40, or a 
60.26 	summary of those reports.

60.27 	Sec. 70. Minnesota Statutes 2012, section 423A.02, subdivision 1, is amended to read:
60.28 		Subdivision 1.Amortization state aid. (a) A municipality in which is located a local 
60.29 	police or salaried firefighters relief association to which the provisions of section 69.77, 
60.30 	apply, that had an unfunded actuarial accrued liability in the most recent relief association 
60.31 	actuarial valuation, is entitled, upon application as required by the commissioner of 
60.32 	revenue, to receive local police and salaried firefighters' relief association amortization 
60.33 	state aid if the municipality and the appropriate relief association both comply with the 
60.34 	applicable provisions of sections 69.031, subdivision 5, 69.051, subdivisions 1 and 3, and 
61.1 	69.77. The cities of Fairmont and Minneapolis are entitled, subject to subdivisions 2, 4, 
61.2 	and 5, to receive amortization state aid under this section.
61.3 	(b) The total amount of amortization state aid to all entitled municipalities must not 
61.4 	exceed $5,055,000 the appropriation under subdivision 3a.
61.5 	(c) Subject to the adjustment for the city of Minneapolis provided in this paragraph, 
61.6 	the amount of amortization state aid to which a municipality is entitled annually is an 
61.7 	amount equal to the level annual dollar amount required to amortize, by December 31, 
61.8 	2010, the unfunded actuarial accrued liability of the special fund of the appropriate 
61.9 	relief association as reported in the December 31, 1978, actuarial valuation of the relief 
61.10 	association prepared under sections 356.215 and 356.216, reduced by the dollar amount 
61.11 	required to pay the interest on the unfunded actuarial accrued liability of the special fund of 
61.12 	the relief association for calendar year 1981 set at the rate specified in Minnesota Statutes 
61.13 	1978, section 356.215, subdivision 8. For the city of Minneapolis, the amortization state 
61.14 	aid amount thus determined must be reduced by $747,232 on account of the former 
61.15 	Minneapolis Police Relief Association and by $772,768 on account of the former 
61.16 	Minneapolis Fire Department Relief Association.The amortization state aid amounts are:

61.17		City
	Aid Amount
		
61.18		Fairmont
	$24,172
		
61.19		Minneapolis
	$2,728,547
		
61.20 	If the amortization state aid amounts determined under this paragraph exceed the 
61.21 	amount appropriated for this purpose under subdivision 3a, the amortization state aid for 
61.22 	actual allocation must be reduced pro rata.
61.23 	(d) Each municipality is eligible for an amortization state aid payment in a fiscal 
61.24 	year if:
61.25 	(1) for Fairmont, the executive director of the Public Employees Retirement 
61.26 	Association certifies on or before June 30 that a municipal contribution with respect to the 
61.27 	former Fairmont Police Relief Association is payable in the upcoming fiscal year under 
61.28 	section 353.665, subdivision 8, paragraph (c); and
61.29 	(2) for Minneapolis, the executive director of the Public Employees Retirement 
61.30 	Association certifies on or before June 30 that an additional employer contribution with 
61.31 	respect to either the former Minneapolis Firefighters Relief Association or the former 
61.32 	Minneapolis Police Relief Association is payable in the upcoming fiscal year under section 
61.33 	353.665, subdivision 8, paragraph (b).
61.34 	Payment of amortization state aid to municipalities must be made directly to 
61.35 	the municipalities involved in three equal installments on July 15, September 15, and 
61.36 	November 15 annually. Upon receipt of amortization state aid, the municipal treasurer 
62.1 	shall transmit the aid amount to the treasurercustodian of the local relief associationtrust 
62.2 	fund or to the executive director of the public employees police and fire retirement fund, 
62.3 	whichever applies, for immediate deposit in the special fund of the relief association.
62.4 	(e) The commissioner of revenue shall administer the amortization state aid program. 
62.5 	The commissioner shall prescribe and periodically revise, as necessary, the form for and
62.6 	required content of the applicationcertifications for the amortization state aid.
62.7 	(f) The amount required under this section, as provided in subdivision 3a, is 
62.8 	appropriated annually from the general fund to the commissioner of revenue.

62.9 	Sec. 71. Minnesota Statutes 2012, section 423A.02, subdivision 1b, is amended to read:
62.10 		Subd. 1b.Additional amortization state aid. (a) Annually, on October 1, the 
62.11 	commissioner of revenue shall allocate the additional amortization state aid transferred 
62.12 	under section 69.021, subdivision 11, to:
62.13 	(1) all police or salaried firefighters relief associations governed by and in full 
62.14 	compliance with the requirements of section 69.77, that had an unfunded actuarial accrued 
62.15 	liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the 
62.16 	preceding December 31;
62.17 	(2) all local police or salaried firefighter consolidation accounts governed by chapter 
62.18 	353A that are certified by the executive director of the public employees retirement 
62.19 	association as having for the current fiscal year an additional municipal contribution 
62.20 	amount under section 353A.09, subdivision 5, paragraph (b), and that have implemented 
62.21 	section 353A.083, subdivision 1, if the effective date of the consolidation preceded May 
62.22 	24, 1993, and that have implemented section 353A.083, subdivision 2, if the effective date 
62.23 	of the consolidation preceded June 1, 1995; and
62.24 	(3) the municipalities that are required to make an additional municipal contribution 
62.25 	under section 353.665, subdivision 8; 353.667, subdivision 6; or 353.668, subdivision 
62.26 	6, for the duration of the required additional contribution.
62.27 	(b) The commissioner shall allocate the state aid on the basis of the proportional share 
62.28 	of the relief association or consolidation account of the total unfunded actuarial accrued 
62.29 	liability of all recipient relief associations and consolidation accounts as of December 31, 
62.30 	1993, for relief associations, and as of June 30, 1994, for consolidation accounts.
62.31 	(c)(a) Beginning October 1, 2000 2013, and annually thereafter, the commissioner 
62.32 	shall allocate the additional amortization state aid, including any state aid in excess of the 
62.33 	limitation in subdivision 4, on the following basis:
63.1 	(1) 64.5 percent to the municipalities to which section 353.665, subdivision 
63.2 	8, paragraph (b), or 353A.09, subdivision 5, paragraph (b), apply for distribution in 
63.3 	accordance with paragraph (b) and subject to the limitation in subdivision 4;
63.4 	(2) 34.2(1) 47.1 percent to the city of Minneapolis to fund any unfunded actuarial 
63.5 	accrued liability in the actuarial valuation prepared under sections 356.215 and 356.216
63.6 	 as of the preceding December 31 for the Minneapolis Police Relief Association or the 
63.7 	Minneapolis Fire Department Relief Association; and defray the employer costs associated 
63.8 	with police and firefighter retirement coverage;
63.9 	(2) 25.8 percent as additional funding to support the minimum fire state aid for 
63.10 	volunteer firefighter relief associations under section 69.021, subdivision 7, paragraph (d);
63.11 	(3) 12.9 percent to the city of Duluth to defray employer costs associated with 
63.12 	police and firefighter retirement coverage;
63.13 	(4) 12.9 percent to the St. Paul Teachers Retirement Fund Association if the 
63.14 	investment performance requirement of paragraph (c) is met; and 
63.15 	(3)(5) 1.3 percent to the city of Virginia to fund any unfunded actuarial accrued 
63.16 	liability in the actuarial valuation prepared under sections 356.215 and 356.216 as of the 
63.17 	preceding December 31 for the Virginia Fire Department Relief Association defray the 
63.18 	employer contribution under section 353.665, subdivision 8, paragraph (d).
63.19 	If there is no unfunded actuarial accrued liability in bothadditional employer 
63.20 	contribution under section 353.665, subdivision 8, paragraph (b), certified under 
63.21 	subdivision 1, paragraph (d), clause (2), with respect to the former Minneapolis Police 
63.22 	Relief Association and the former Minneapolis Fire Department Relief Association as 
63.23 	disclosed in the most recent actuarial valuations for the relief associations prepared under 
63.24 	sections 356.215 and 356.216, the commissioner shall allocate that 34.247.1 percent 
63.25 	of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent 
63.26 	to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional 
63.27 	funding to support minimum fire state aid for volunteer firefighters relief associations. If 
63.28 	there is no unfunded actuarial accrued liability inemployer contribution by the city of 
63.29 	Virginia Fire Department Relief Association as disclosed in the most recent actuarial 
63.30 	valuation for the relief association prepared under sections 356.215 and 356.216 under 
63.31 	section 353.665, subdivision 8, paragraph (d), for the former Virginia Fire Department 
63.32 	Relief Association certified on or before June 30 by the executive director of the Public 
63.33 	Employees Retirement Association, the commissioner shall allocate that 1.3 percent 
63.34 	of the aid as follows: 49 percent to the Teachers Retirement Association, 21 percent 
63.35 	to the St. Paul Teachers Retirement Fund Association, and 30 percent as additional 
63.36 	funding to support minimum fire state aid for volunteer firefighters relief associations. 
64.1 	Upon the final payment to municipalities required by section 353.665, subdivision 8, 
64.2 	paragraph (b), or 353A.09, subdivision 5, paragraph (b), the commissioner shall allocate 
64.3 	that 64.5 percent of the aid as follows: 20 percent to the St. Paul Teachers Retirement 
64.4 	Fund Association, 20 percent to the city of Minneapolis to fund any unfunded actuarial 
64.5 	accrued liability in the actuarial valuation proposed under sections 356.215 and 356.216
64.6 	 as of the preceding December 31 for the Minneapolis Police Relief Association or the 
64.7 	Minneapolis Firefighters Relief Association, 20 percent for the city of Duluth to pay for 
64.8 	any costs associated with the police and firefighters pensions, and 40 percent as additional 
64.9 	funding to support minimum fire state aid for volunteer firefighters relief associations.
64.10 	(b) The allocation must be made by the commissioner at the same time and under the 
64.11 	same procedures as specified in subdivision 3 of revenue on October 1 annually.
64.12 	(c) With respect to the St. Paul Teachers Retirement Fund Association, annually, 
64.13 	beginning on July 1, 2005, if the applicable teacher's association five-year average 
64.14 	time-weighted rate of investment return does not equal or exceed the performance of a 
64.15 	composite portfolio assumed passively managed (indexed) invested ten percent in cash 
64.16 	equivalents, 60 percent in bonds and similar debt securities, and 30 percent in domestic 
64.17 	stock calculated using the formula under section 11A.04, clause (11), the aid allocation 
64.18 	to thatthe retirement fund under this section ceases until the five-year annual rate of 
64.19 	investment return equals or exceeds the performance of that composite portfolio.
64.20 	(d) The amounts required under this subdivision are the amounts annually 
64.21 	appropriated to the commissioner of revenue under section 69.021, subdivision 11, 
64.22 	paragraph (e), and the aid amounts in excess of the limitation in subdivision 4.

64.23 	Sec. 72. Minnesota Statutes 2012, section 423A.02, subdivision 2, is amended to read:
64.24 		Subd. 2.Continued eligibility. A municipality that has qualified for amortization 
64.25 	state aid under subdivision 1 on December 31, 1984, and has an additional municipal 
64.26 	contribution payable under section 353A.09, subdivision 5, paragraph (b), as of the most 
64.27 	recent December 31, continues upon application to be entitled to receive amortization 
64.28 	state aid under subdivision 1 and supplementary amortization state aid under subdivision 
64.29 	1a, after the local police or salaried firefighters' relief association has been consolidated 
64.30 	into the public employees police and fire fund. If a municipality loses entitlement for 
64.31 	amortization state aid and supplementary amortization state aid in any year because of 
64.32 	not having an additional municipal contribution under section 353A.09, subdivision 5, 
64.33 	paragraph (b), the municipality is not entitled to the aid amounts in any subsequent year. A 
64.34 	municipality that received amortization aid in 1999 and is required to make an additional 
64.35 	municipal contribution under section 353.665, subdivision 8, continues to qualify for the 
65.1 	amortization state aid and the supplemental amortization aid until December 31, 2009
65.2 	 received amortization aid in 2011 and is required to make a municipal contribution under 
65.3 	section 353.665, subdivision 8, paragraph (b), (c), or (d), whichever applies, continues to 
65.4 	qualify for amortization state aid for the duration of the applicable municipal contribution.

65.5 	Sec. 73. Minnesota Statutes 2012, section 423A.02, subdivision 3, is amended to read:
65.6 		Subd. 3.Reallocation of amortization or supplementary amortization state 
65.7 	aid. (a) Seventy percent of the difference between $5,720,000 and the current year 
65.8 	amortization aid and supplemental amortization aid distributed under subdivisions 1 
65.9 	and 1a that is not distributed for any reason to a municipality for use by a local police 
65.10 	or salaried fire relief association must be distributed by the commissioner of revenue 
65.11 	according to this paragraph. The commissioner shall distribute 50 percent of the amounts 
65.12 	derived under this paragraph to the Teachers Retirement Association, ten percent to the 
65.13 	Duluth Teachers Retirement Fund Association, and 40 percent to the St. Paul Teachers 
65.14 	Retirement Fund Association to fund the unfunded actuarial accrued liabilities of the 
65.15 	respective funds. These payments shallmust be made on or before June 30July 15 each 
65.16 	fiscal year. If the St. Paul Teachers Retirement Fund Association or if the Duluth Teachers 
65.17 	Retirement Fund Association becomes fully funded, itsthe association's eligibility for its 
65.18 	portion of this aid ceases. Amounts remaining in the undistributed balance account at the 
65.19 	end of the biennium if aid eligibility ceases cancel to the general fund.
65.20 	(b) In order to receive amortization and supplementary amortization aid under 
65.21 	paragraph (a), prior tobefore June 30 annually Independent School District No. 625, St. 
65.22 	Paul, must make an additional contribution of $800,000 each year to the St. Paul Teachers 
65.23 	Retirement Fund Association.
65.24 	(c) Thirty percent of the difference between $5,720,000 and the current year 
65.25 	amortization aid and supplemental amortization aid under subdivisions 1 and 1a that is not 
65.26 	distributed for any reason to a municipality for use by a local police or salaried firefighter 
65.27 	relief association must be distributed under section 69.021, subdivision 7, paragraph (d), 
65.28 	as additional funding to support a minimum fire state aid amount for volunteer firefighter 
65.29 	relief associations.

65.30 	Sec. 74. Minnesota Statutes 2012, section 423A.02, subdivision 3a, is amended to read:
65.31 		Subd. 3a.Appropriations for amortization state aid; supplementary 
65.32 	amortization state aid; and amortization state aid and supplementary state aid
65.33 	 reallocations. $4,720,000$5,720,000 is annually appropriated from the general fund to 
65.34 	the commissioner of revenue for amortization state aid under subdivision 1, and for the 
66.1 	reallocation of amortization aid under subdivision 3. $1,000,000 is annually appropriated 
66.2 	from the general fund to the commissioner of revenue for supplementary amortization 
66.3 	state aid under subdivision 1a, and for the reallocation of supplementary amortization state 
66.4 	aid under subdivision 3.

66.5 	Sec. 75. Minnesota Statutes 2012, section 423A.02, subdivision 4, is amended to read:
66.6 		Subd. 4.Limit on certain total aid amounts. (a) The total of amortization aid, 
66.7 	supplemental amortization aid, and additional amortization aid under this section payable 
66.8 	to a municipality to which section 353.665, subdivision 8, paragraph (b), (c), or (d), 
66.9 	applies, may not exceed the amount of the additional municipal contribution payable by 
66.10 	an individual municipality under section 353.665, subdivision 8, paragraph (b), (c), or (d).
66.11 	(b) Any aid amount in excess of the limit under this subdivision for an individual 
66.12 	municipality must be redistributed to the other municipalities to which section 353.665, 
66.13 	subdivision 8, paragraph (b), (c), or (d), applies. The excess aid must be distributed in 
66.14 	proportion to each municipality's additional municipal contribution under section 353.665, 
66.15 	subdivision 8, paragraph (b), (c), or (d).
66.16 	(c) When the total aid for each municipality under this section equals the limit under 
66.17 	paragraph (a), any aid in excess of the limit must be redistributed under subdivision 1b.

66.18 	Sec. 76. Minnesota Statutes 2012, section 423A.02, subdivision 5, is amended to read:
66.19 		Subd. 5.Termination of state aid programs. The amortization state aid, 
66.20 	supplemental amortization state aid, and additional amortization state aid programs 
66.21 	terminate as of the December 31, next following the date of the actuarial valuation when 
66.22 	the assets of the St. Paul Teachers Retirement Fund Association equal the actuarial 
66.23 	accrued liability of that plan or December 31, 2009 when the assets of the Duluth Teachers 
66.24 	Retirement Fund Association equal the actuarial accrued liability of that plan, whichever 
66.25 	is later.

66.26 	Sec. 77. Minnesota Statutes 2012, section 424A.001, subdivision 4, is amended to read:
66.27 		Subd. 4.Relief association. (a) "Relief association" or "volunteer firefighters' relief 
66.28 	association" means a volunteer firefighters' relief association or a volunteer firefighters' 
66.29 	division or account of a partially salaried and partially volunteer firefighters' relief 
66.30 	association that is:
66.31 	(1) organized and incorporated as a nonprofit corporation to provide retirement 
66.32 	benefits to volunteer firefighters under chapter 317A and any laws of the state;
66.33 	(2) governed by this chapter and sections 69.771 to 69.775; and
67.1 	(3) directly associated with:
67.2 	(i) a fire department established by municipal ordinance;
67.3 	(ii) an independent nonprofit firefighting corporation that is organized under the 
67.4 	provisions of chapter 317A and that operates primarily for firefighting purposes; or
67.5 	(iii) a fire department operated as or by a joint powers entity that operates primarily 
67.6 	for firefighting purposes.
67.7 	(b) "Relief association" or "volunteer firefighters' relief association" does not mean:
67.8 	(1) the Bloomington Fire Department Relief Association governed by section 69.77
67.9 	 sections 31 to 43; Minnesota Statutes 2000, chapter 424; and Laws 1965, chapter 446, 
67.10 	as amended; or
67.11 	(2) the voluntary statewide lump-sum volunteer firefighter retirement plan governed 
67.12 	by chapter 353G.
67.13 	(c) A relief association or volunteer firefighters' relief association is a governmental 
67.14 	entity that receives and manages public money to provide retirement benefits for individuals 
67.15 	providing the governmental services of firefighting and emergency first response.

67.16 	Sec. 78. Minnesota Statutes 2012, section 424A.02, subdivision 9, is amended to read:
67.17 		Subd. 9.Limitation on ancillary benefits. A defined benefit relief association, 
67.18 	including any volunteer firefighters relief association governed by section 69.77sections 
67.19 	31 to 43 or any volunteer firefighters division of a relief association governed by chapter 
67.20 	424, may only pay ancillary benefits which would constitute an authorized disbursement 
67.21 	as specified in section 424A.05 subject to the following requirements or limitations:
67.22 	(1) with respect to a defined benefit relief association in which governing bylaws 
67.23 	provide solely for a lump-sum service pension to a retiring member, or provide a retiring 
67.24 	member the choice of either a lump-sum service pension or a monthly service pension 
67.25 	and the lump-sum service pension was chosen, no ancillary benefit may be paid to any 
67.26 	former member or paid to any person on behalf of any former member after the former 
67.27 	member (i) terminates active service with the fire department and active membership 
67.28 	in the relief association; and (ii) commences receipt of a service pension as authorized 
67.29 	under this section; and
67.30 	(2) with respect to any defined benefit relief association, no ancillary benefit paid or 
67.31 	payable to any member, to any former member, or to any person on behalf of any member 
67.32 	or former member, may exceed in amount the total earned service pension of the member 
67.33 	or former member. The total earned service pension must be calculated by multiplying 
67.34 	the service pension amount specified in the bylaws of the relief association at the time of 
67.35 	death or disability, whichever applies, by the years of service credited to the member or 
68.1 	former member. The years of service must be determined as of (i) the date the member or 
68.2 	former member became entitled to the ancillary benefit; or (ii) the date the member or 
68.3 	former member died entitling a survivor or the estate of the member or former member to 
68.4 	an ancillary benefit. The ancillary benefit must be calculated without regard to whether the 
68.5 	member had attained the minimum amount of service and membership credit specified in 
68.6 	the governing bylaws. For active members, the amount of a permanent disability benefit 
68.7 	or a survivor benefit must be equal to the member's total earned service pension except 
68.8 	that the bylaws of a defined benefit relief association may provide for the payment of a 
68.9 	survivor benefit in an amount not to exceed five times the yearly service pension amount 
68.10 	specified in the bylaws on behalf of any member who dies before having performed five 
68.11 	years of active service in the fire department with which the relief association is affiliated.
68.12 	(3)(i) If a lump sum survivor or death benefit is payable under the articles of 
68.13 	incorporation or bylaws, the benefit must be paid:
68.14 	(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
68.15 	(B) as a survivor benefit to the surviving children of the deceased firefighter if 
68.16 	no surviving spouse;
68.17 	(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
68.18 	surviving spouse or surviving children; or
68.19 	(D) as a death benefit to the estate of the deceased active or deferred firefighter if no 
68.20 	surviving children and no beneficiary designated.
68.21 	(ii) If there are no surviving children, the surviving spouse may waive, in writing, 
68.22 	wholly or partially, the spouse's entitlement to a survivor benefit.
68.23 	(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of 
68.24 	incorporation or bylaws, the benefit must be paid:
68.25 	(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
68.26 	(B) as a survivor benefit to the surviving children of the deceased firefighter if 
68.27 	no surviving spouse;
68.28 	(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
68.29 	surviving spouse or surviving children; or
68.30 	(D) as a death benefit to the estate of the deceased active or deferred firefighter if no 
68.31 	surviving spouse, no surviving children, and no beneficiary designated.
68.32 	(ii) If there are no surviving children, the surviving spouse may waive, in writing, 
68.33 	wholly or partially, the spouse's entitlement to a survivor benefit.
68.34 	(iii) For purposes of this clause, if the relief association bylaws authorize a monthly 
68.35 	survivor benefit payable to a designated beneficiary, the relief association bylaws may 
68.36 	limit the total survivor benefit amount payable.
69.1 	(5) For purposes of this section, for a monthly benefit volunteer fire relief association 
69.2 	or for a combination lump-sum and monthly benefit volunteer fire relief association where 
69.3 	a monthly benefit service pension has been elected by or a monthly benefit is payable with 
69.4 	respect to a firefighter, a designated beneficiary must be a natural person. For purposes 
69.5 	of this section, for a lump-sum volunteer fire relief association or for a combination 
69.6 	lump-sum and monthly benefit volunteer fire relief association where a lump-sum service 
69.7 	pension has been elected by or a lump-sum benefit is payable with respect to a firefighter, 
69.8 	a trust created under chapter 501B may be a designated beneficiary. If a trust is payable to 
69.9 	the surviving children organized under chapter 501B as authorized by this section and 
69.10 	there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding 
69.11 	a requirement of this section to the contrary.

69.12 	Sec. 79. Minnesota Statutes 2012, section 475.52, subdivision 6, is amended to read:
69.13 		Subd. 6.Certain purposes. Any municipality may issue bonds for paying 
69.14 	judgments against it; for refunding outstanding bonds; for funding floating indebtedness; 
69.15 	for funding actuarial liabilities to pay postemployment benefits to employees or officers 
69.16 	after their termination of service; or for funding all or part of the municipality's current 
69.17 	and future unfunded liability for a pension or retirement fund or plan referred to in 
69.18 	section 356.20, subdivision 2, as those liabilities are most recently computed under 
69.19 	sections 356.215 and 356.216. The board of trustees or directors of athe Bloomington 
69.20 	Fire Department Relief Association referred to in section 69.77 must consent and must 
69.21 	be a party to any contract made under this section with respect to the fund held by it 
69.22 	for the benefit of and in trust for its members. For purposes of this section, the term 
69.23 	"postemployment benefits" means benefits giving rise to a liability under Statement No. 
69.24 	45 of the Governmental Accounting Standards Board.

69.25 	Sec. 80. REVISOR'S INSTRUCTION.
 69.26 	The revisor of statutes shall not show the text of Minnesota Statutes, section 69.77, 
69.27 	and add the note in Minnesota Statutes, section 69.77, "CITY OF BLOOMINGTON; 
69.28 	LOCAL."

69.29 	Sec. 81.  REPEALER.
 69.30 	(a) Minnesota Statutes 2012, section 353.665, subdivisions 2, 3, 4, 6, 7, 9, and 
69.31 	10, are repealed.
69.32 	(b) Minnesota Statutes 2012, sections 353.667; 353.668; 353.669; and 353.6691, are 
69.33 	repealed.
70.1 	(c) Minnesota Statutes 2012, sections 353A.01; 353A.02; 353A.03; 353A.04; 
70.2 	353A.05; 353A.06; 353A.07; 353A.08; 353A.081; 353A.083; 353A.09; 353A.10; 
70.3 	353B.01; 353B.02; 353B.03; 353B.04; 353B.05; 353B.06; 353B.07; 353B.08; 353B.09; 
70.4 	353B.10; 353B.11; 353B.12; 353B.13; and 353B.14, are repealed.
70.5 	(d) Minnesota Statutes 2012, sections 423A.01; 423A.04; 423A.05; 423A.07; 
70.6 	423A.10; 423A.11; 423A.12; 423A.13; 423A.14; 423A.15; 423A.16; 423A.17; 423A.171; 
70.7 	423A.18; 423A.19; 423A.20; 423A.21; and 423A.22, are repealed.
70.8 	(e) Minnesota Statutes 2012, sections 69.021, subdivision 6; 353.64, subdivision 3; 
70.9 	and 423A.02, subdivision 1a, are repealed.

70.10 	Sec. 82. EFFECTIVE DATE; PRIOR AID ALLOCATIONS VALIDATED.
 70.11 	(a) Sections 70 to 76 are effective June 1, 2013.
70.12 	(b) Except as provided in paragraph (c), sections 1 to 69 and 77 to 82 are effective 
70.13 	July 1, 2013.
70.14 	(c) With respect to the city of Minneapolis, section 18 is effective retroactively from 
70.15 	July 20, 2011, and with respect to the city of Fairmont, section 18 is effective retroactively 
70.16 	from May 10, 2012.
70.17 	(d) Allocations of amortization state aid, supplementary amortization state aid, or 
70.18 	additional amortization state aid made by the commissioner of revenue before January 1, 
70.19 	2013, are hereby validated.