SF 3412

Introduction - 94th Legislature (2025 - 2026)

Posted on 04/23/2025 10:20 a.m.

A bill for an act
relating to peace officer and firefighter duty disability benefits; limiting the period
of time that an employer must provide health insurance coverage; prohibiting a
peace officer or firefighter from waiving the right to continued health insurance
coverage; limiting attorney fees; amending Minnesota Statutes 2024, sections
299A.465, subdivision 1; 352B.101; 353.031, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 299A.465, subdivision 1, is amended to read:

Subdivision 1.

Officer or firefighter disabled in line of duty.

(a) This subdivision
applies to any peace officer or firefighter:

(1) who the Public Employees Retirement Association or the Minnesota State Retirement
System determines is eligible to receive a duty disability benefit pursuant to section 353.656
or 352B.10, subdivision 1, respectively; or

(2) who (i) does not qualify to receive disability benefits by operation of the eligibility
requirements set forth in section 353.656, subdivision 1, paragraph (b), (ii) retires pursuant
to section 353.651, subdivision 4, or (iii) is a member of a local police or salaried firefighters
relief association and qualifies for a duty disability benefit under the terms of plans of the
relief associations, and the peace officer or firefighter described in item (i), (ii), or (iii) has
discontinued public service as a peace officer or firefighter as a result of a disabling injury
and has been determined, by the Public Employees Retirement Association, to have otherwise
met the duty disability criteria set forth in section 353.01, subdivision 41.

(b) A determination made on behalf of a peace officer or firefighter described in paragraph
(a), clause (2), must be at the request of the peace officer or firefighter made for the purposes
of this section. Determinations made in accordance with paragraph (a) are binding on the
peace officer or firefighter, employer, and state. The determination must be made by the
executive director of the Public Employees Retirement Association or by the executive
director of the Minnesota State Retirement System, whichever applies, and is not subject
to section 356.96, subdivision 2. Upon making a determination, the executive director shall
provide written notice to the peace officer or firefighter and the employer. This notice must
include:

(1) a written statement of the reasons for the determination;

(2) a notice that the person may petition for a review of the determination by requesting
that a contested case be initiated before the Office of Administrative Hearings, the cost of
which must be borne by the peace officer or firefighter and the employer; and

(3) a statement that any person who does not petition for a review within 60 days is
precluded from contesting issues determined by the executive director in any other
administrative review or court procedure.

If, prior to the contested case hearing, additional information is provided to support the
claim for duty disability as defined in section 352B.011, subdivision 7, or 353.01, subdivision
41, whichever applies, the executive director may reverse the determination without the
requested hearing. If a hearing is held before the Office of Administrative Hearings, the
determination rendered by the judge conducting the fact-finding hearing is a final decision
and order under section 14.62, subdivision 2a, and is binding on the applicable executive
director, the peace officer or firefighter, employer, and state. Review of a final determination
made by the Office of Administrative Hearings under this section may only be obtained by
writ of certiorari to the Minnesota Court of Appeals under sections 14.63 to 14.68. Only
the peace officer or firefighter, employer, and state have standing to participate in a judicial
review of the decision of the Office of Administrative Hearings.

(c) The officer's or firefighter's employer shall continue to provide health coverage for:

(1) the officer or firefighter; and

(2) the officer's or firefighter's dependents if the officer or firefighter was receiving
dependent coverage at the time of the injury under the employer's group health plan.

(d) The employer is responsible for the continued payment of the employer's contribution
for coverage of the officer or firefighter and, if applicable, the officer's or firefighter's
dependents. deleted text begin Coverage deleted text end new text begin The employer new text end must continue new text begin coverage new text end for the officer or firefighter
and, if applicable, the officer's or firefighter's dependents new text begin for a period of three years or, if
earlier, new text end until the officer or firefighter reaches or, if deceased, would have reached the age
of 65. However, coverage for dependents does not have to be continued after the person is
no longer a dependent.

new text begin (e) A peace officer or firefighter claiming a duty disability benefit must not waive the
peace officer's or firefighter's right to continue health insurance coverage under this
subdivision as part of a settlement with the peace officer's or firefighter's employer or another
person or entity related to an application for a duty disability benefit under section 352B.101
or 353.031. A peace officer or firefighter is subject to loss of eligibility for a duty disability
benefit if the peace officer or firefighter agrees to waive the right to continued health
insurance coverage.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2024, section 352B.101, is amended to read:

352B.101 APPLICATION FOR DISABILITY BENEFIT.

new text begin Subdivision 1. new text end

new text begin Application required; commencement of disability benefit. new text end

deleted text begin (a) deleted text end Except
as otherwise specified under section 352B.102 and paragraph (b), a member claiming a
disability benefit must file a written application for benefits in the office of the system in a
form and manner prescribed by the executive director. The member shall provide medical
or psychological evidence to support the application. The benefit begins to accrue the day
following the start of disability or the day following the last day for which the member was
paid, whichever is later, but not earlier than 180 days before the date the application is filed
with the executive director.

new text begin Subd. 2. new text end

new text begin Completion of psychological condition treatment required. new text end

deleted text begin (b) deleted text end
Notwithstanding any law to the contrary, an employee, as defined in section 352B.102,
subdivision 1, clause (2), who applies for a duty disability benefit based on a psychological
condition, as defined in section 352B.102, subdivision 1, clause (6), is not eligible for duty
disability benefits under this chapter until the employee has satisfied the additional procedure,
including all completion of treatment requirements under section 352B.102.

new text begin Subd. 3. new text end

new text begin Limitation on fees. new text end

new text begin (a) A fee for legal services arising from a member's claim
for a duty disability benefit as defined in section 352B.10, subdivision 1, is permissible and
does not require approval by the court if the fee for legal services is 20 percent or less of
the first $275,000 of the present value of the duty disability benefit awarded to the member.
new text end

new text begin (b) A party that is dissatisfied with the attorney fees claimed may file a petition for
review by a court of appropriate jurisdiction. The petition must disclose the fees requested,
the basis of the need for review, and whether a hearing is requested. A copy of the petition
must be served on all interested parties.
new text end

new text begin (c) The retainer letter between the member and the law firm or attorney must disclose
the limitation on fees. If requested by the executive director, the member must submit a
copy of the retainer letter to the executive director.
new text end

new text begin (d) A law firm or attorney must not require payment of any attorney fees until the claim
for which the fee was incurred has been resolved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2024, section 353.031, is amended by adding a subdivision to
read:

new text begin Subd. 11. new text end

new text begin Limitation on fees. new text end

new text begin (a) A fee for legal services arising from a member's claim
for a duty disability benefit as defined in section 353.656, subdivision 1, is permissible and
does not require approval by the court if the fee for legal services is 20 percent or less of
the first $275,000 of the present value of the duty disability benefit awarded to the member.
new text end

new text begin (b) A party that is dissatisfied with the attorney fees claimed may file a petition for
review by a court of appropriate jurisdiction. The petition must disclose the fees requested,
the basis of the need for review, and whether or not a hearing is requested. A copy of the
petition must be served on all interested parties.
new text end

new text begin (c) The retainer letter between the member and the law firm or attorney must disclose
the limitation on fees. If requested by the executive director, the member must submit a
copy of the retainer letter to the executive director.
new text end

new text begin (d) A law firm or attorney must not require payment of any attorney fees until the claim
for which the fee was incurred has been resolved.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end