1.1 	A bill for an act
1.2 	relating to public and municipal corporations;
1.3 	creating a county subsidiary corporation to provide
1.4 	health care and related services, education, and
1.5 	research; providing for governance of Hennepin County
1.6 	Medical Center; amending Minnesota Statutes 2004,
1.7 	sections 179A.03, subdivisions 7, 14, 15; 179A.06,
1.8 	subdivision 2; 353.01, subdivisions 2b, 2d, 6; 353.64,
1.9 	subdivision 10; 353E.02, subdivision 2a; 383B.117,
1.10 	subdivision 2; 383B.217, subdivision 7; 383B.46;
1.11 	proposing coding for new law in Minnesota Statutes,
1.12 	chapters 179A; 383B; repealing Minnesota Statutes
1.13 	2004, section 383B.217, subdivisions 1, 2, 3, 4, 5, 6,
1.14 	8.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	ARTICLE 1
1.17 	HENNEPIN HEALTHCARE SYSTEM

1.18 	Section 1. [383B.901] CREATION OF A COUNTY SUBSIDIARY
1.19 	CORPORATION.
1.20 	There is created a corporation which shall be public in
1.21 	nature, operating as a subsidiary of the county of Hennepin.
1.22 	The public corporation shall be known as Hennepin Healthcare
1.23 	System, Inc.  The purpose of the corporation is to engage in the
1.24 	organization and delivery of health care and related services to
1.25 	the general public, including the indigent as defined by state
1.26 	and federal law and as determined by the Hennepin County Board
1.27 	of Commissioners, and to conduct related programs of education
1.28 	and research.  The corporation shall have one class of members,
1.29 	the governing member, who shall be Hennepin County, as
1.30 	represented by the Hennepin County Board of Commissioners.  The
2.1 	governing member has all the rights, duties, and privileges
2.2 	specified under this act and the bylaws of the corporation.

2.3 	Sec. 2. [383B.902] DEFINITIONS.
2.4 		Subdivision 1.Terms. For the purpose of this act, the
2.5 	terms defined in this section have the meanings given them
2.6 	unless the context clearly indicates otherwise.
2.7 	(a) "Corporation" means the county subsidiary corporation
2.8 	created by section 383B.901.
2.9 	(b) "County" means the county of Hennepin.
2.10 	(c) "County board" means the Hennepin County Board of
2.11 	Commissioners and its members.
2.12 	(d) "HCMC" means the Hennepin County Medical Center, which
2.13 	is the medical center established and operated by the county
2.14 	under section 383B.217.
2.15 	(e) "Effective date" means the effective date of the
2.16 	sections of this act, as defined in section 29.

2.17 	Sec. 3. [383B.903] BOARD.
2.18 		Subdivision 1.Governance. The corporation shall be
2.19 	governed by a board of directors consisting of between 11 and 15
2.20 	directors.  Two of the directors on the board of the corporation
2.21 	must be county commissioners currently serving as elected
2.22 	officials on the county board who are chosen and may be removed
2.23 	by a majority vote of the county board.
2.24 		Subd. 2.Term, quorum, and manner of acting. The term of
2.25 	office for directors, rules governing quorum, and manner of
2.26 	acting for the board of directors must be specified in the
2.27 	bylaws of the corporation which shall be approved by the county
2.28 	board, except that:
2.29 	(1) a vote of a majority of the board shall be required to
2.30 	hire or discharge the corporation's administrator, to approve
2.31 	the annual budget, and for any action which requires subsequent
2.32 	approval by the county board as specified in section 383B.908;
2.33 	and 
2.34 	(2) directors of the board of directors or any committee or
2.35 	advisory assembly or council appointed by the board of directors
2.36 	may participate in a meeting by means of telephone conference or
3.1 	similar communications equipment which enables all persons
3.2 	participating in the meeting to hear each other during the
3.3 	conduct of that meeting.  Participation shall be considered
3.4 	presence in person at the meeting for purposes of notice and
3.5 	quorum requirements as specified in the bylaws.
3.6 		Subd. 3.Appointment of board members. The county board
3.7 	shall appoint the initial board of the corporation.  Thereafter,
3.8 	the county board shall appoint directors of the corporation by
3.9 	slate to open positions due to the completion of a director's
3.10 	term as specified in the bylaws of the corporation.  The slate
3.11 	shall be nominated by a committee of the board of the
3.12 	corporation.  The board of the corporation may by majority vote
3.13 	appoint a board member to fill a vacancy on the board occurring
3.14 	prior to the completion of the term, provided the newly
3.15 	appointed board member is submitted to the county board for
3.16 	approval when the next slate of directors is submitted to the
3.17 	county board for approval.
3.18 		Subd. 4.Qualifications. Members of the board shall
3.19 	possess a high degree of experience and knowledge in relevant
3.20 	fields and possess a high degree of interest in the corporation
3.21 	and support for its mission.  Members shall be appointed based
3.22 	in part on the objective of ensuring that the corporation
3.23 	includes diverse and beneficial perspectives and experience
3.24 	including, but not limited to, those of medical or other health
3.25 	professionals, urban, cultural and ethnic perspectives of the
3.26 	population served by the corporation, business management, law,
3.27 	finance, health sector employees, public health, serving the
3.28 	uninsured, health professional training, and the patient or
3.29 	consumer perspective.  The corporation shall provide a public
3.30 	announcement of vacancies on the board of the corporation in the
3.31 	manner normally used by Hennepin County to provide public notice
3.32 	of open appointments.
3.33 		Subd. 5.Removal. A director who is not a county
3.34 	commissioner may be removed without cause by a two-thirds
3.35 	majority vote of the board of the corporation.  The county board
3.36 	may remove any board member for violation of the director's
4.1 	ethical and legal duties as a board member as specified in
4.2 	section 383B.905 or for the repeated failure to act in the best
4.3 	interests of the corporation.  In addition, the county board may
4.4 	remove the corporate board in its entirety as specified in
4.5 	section 383B.908, subdivision 7.

4.6 	Sec. 4. [383B.904] OFFICERS.
4.7 		Subdivision 1.Election. (a) The officers of the board
4.8 	of the corporation shall consist of the chair, vice chair,
4.9 	secretary, treasurer, and other officers as the board shall from
4.10 	time to time deem necessary.  The board shall elect officers by
4.11 	a majority vote of the board at the annual meeting, or in the
4.12 	case of the initial board, at the first meeting following
4.13 	appointment by the county board.
4.14 	(b) Any of the offices or functions, with the exception of
4.15 	the chair and vice chair, may be held or exercised by the same
4.16 	person.
4.17 		Subd. 2.Removal. An officer may be removed without
4.18 	cause by a two-thirds majority vote of the board of the
4.19 	corporation.

4.20 	Sec. 5. [383B.905] AUTHORITY AND DUTIES OF OFFICERS AND
4.21 	DIRECTORS.
4.22 		Subdivision 1.In bylaws or by board. Officers and
4.23 	directors have the authority and duties in the management of the
4.24 	business of the corporation that the bylaws prescribe or, in the
4.25 	absence of such prescription, as the board determines.
4.26 		Subd. 2.Ordinary prudent person standard. Officers and
4.27 	directors shall discharge their duties in good faith, in the
4.28 	manner the officer or director reasonably believes to be in the
4.29 	best interests of the corporation, and with the care an ordinary
4.30 	prudent person in a like position would exercise under similar
4.31 	circumstances.
4.32 		Subd. 3.Not trustees. Officers and directors are not
4.33 	considered to be trustees with respect to the corporation or
4.34 	with respect to property held or administered by the
4.35 	corporation, including, without limit, property that may be
4.36 	subject to restrictions imposed by the donor or transferor of
5.1 	the property.

5.2 	Sec. 6. [383B.906] BYLAWS.
5.3 	Prior to the appointment of the initial board of the
5.4 	corporation, the county board shall approve the bylaws of the
5.5 	corporation.  Thereafter, the board of the corporation may
5.6 	adopt, amend, or repeal bylaws relating to the management of the
5.7 	business or regulation of the affairs of the corporation, except
5.8 	that the county board shall approve any bylaws change relating
5.9 	to:
5.10 	(1) board composition, board and officer selection, terms,
5.11 	removal, or qualifications;
5.12 	(2) the county board's reserved powers as specified in the
5.13 	bylaws;
5.14 	(3) the ability of the corporation to engage in joint
5.15 	ventures;
5.16 	(4) the ability of the corporation to incur debt through
5.17 	the county;
5.18 	(5) the ability of the corporation to create subsidiaries;
5.19 	(6) the ability of the corporation to merge or dissolve;
5.20 	(7) the ability of the corporation to use subsidiaries to
5.21 	undertake functions or activities performed by employees of the
5.22 	corporation; or 
5.23 	(8) the mission of the corporation.

5.24 	Sec. 7. [383B.907] CORPORATE POWERS.
5.25 		Subdivision 1.Authority and powers of the
5.26 	board. Subject to the reserved powers and limitations specified
5.27 	in sections 383B.903 and 383B.908, or as specified in the bylaws
5.28 	of the corporation, the corporation, through its board, shall,
5.29 	relative to the delivery of health care services, have, in
5.30 	addition to any authority vested by law, the authority and legal
5.31 	capacity of a nonprofit corporation under chapter 317A including
5.32 	the authority to:
5.33 	(1) have members of its board or its officers or
5.34 	administrators serve as directors, officers, or employees of the
5.35 	corporation's ventures, associations, or corporations;
5.36 	(2) hire and discharge an administrator;
6.1 	(3) approve personnel policies and practices, any
6.2 	applicable labor agreements, and levels of compensation and
6.3 	benefits recommended by the administrator;
6.4 	(4) use employees, agents, consultants, and facilities of
6.5 	the county, as necessary in the discretion of the board, paying
6.6 	the county its agreed proportion of the compensation or costs
6.7 	pursuant to an agreement with the county;
6.8 	(5) spend funds, including public funds in any form, or
6.9 	devote the resources of the corporation to recruit and retain
6.10 	physicians whose services are necessary or desirable for meeting
6.11 	the health care needs of the population and for the successful
6.12 	performance of the public purpose of the corporation.  Allowable
6.13 	uses of funds and resources include the retirement of medical
6.14 	education debt, payment of onetime amounts in consideration of
6.15 	services rendered or to be rendered, payment of recruitment
6.16 	expenses, payment of moving expenses, and the provision of other
6.17 	financial assistance necessary for the recruitment and retention
6.18 	of physicians, provided that the expenditures in whatever form
6.19 	are reasonable under the facts and circumstances of the
6.20 	situation;
6.21 	(6) offer, directly or indirectly, products and services of
6.22 	the corporation and/or affiliated entities to the general
6.23 	public, and retain any profits earned through the provision of
6.24 	these products and services for the purpose of advancing the
6.25 	mission of the corporation;
6.26 	(7) own shares of stock in business corporations;
6.27 	(8) borrow money and issue bonds in support and promotion
6.28 	of the corporation's purpose and mission and providing any
6.29 	rights and obligations related thereto;
6.30 	(9) accept gifts, grants, loans, or contributions of funds
6.31 	or property or financial or other aid in any form from, and
6.32 	enter into contracts or other transactions with, the federal
6.33 	government, the state of Minnesota, third-party payors, or any
6.34 	other source, and to use any gifts, grants, loans, or
6.35 	contributions for any of its corporate purposes;
6.36 	(10) enter shared service and other cooperative ventures;
7.1 	(11) join or sponsor membership in organizations intended
7.2 	to benefit the corporation;
7.3 	(12) enter partnerships, joint ventures, or other business
7.4 	arrangements to advance the mission of the corporation;
7.5 	(13) sue or be sued; and 
7.6 	(14) incorporate other corporations, both for profit and
7.7 	nonprofit.
7.8 		Subd. 2.Other powers. Subject to the reserved powers
7.9 	and limitations specified in sections 383B.903 and 383B.908, or
7.10 	as specified in the bylaws of the corporation, the corporation
7.11 	shall have all the powers necessary and convenient for the
7.12 	operation, administration, management, and control of the
7.13 	corporation's affairs.  The enumeration of specific powers in
7.14 	this section is not intended to restrict the power of the
7.15 	corporation to take any action which, in the exercise of its
7.16 	discretion, is necessary or convenient to further the purposes
7.17 	for which the corporation exists and that is not otherwise
7.18 	prohibited by law, whether or not the power to take the action
7.19 	is necessarily implied from the powers expressly granted.

7.20 	Sec. 8. [383B.908] LIMITATIONS UPON CORPORATE POWERS;
7.21 	RESERVED POWERS.
7.22 		Subdivision 1.Powers reserved to the
7.23 	county. Notwithstanding the authority granted to the board in
7.24 	section 383B.907, the county board shall retain specific
7.25 	controls over the corporation's mission, ability to incur
7.26 	indebtedness through the county, indigent care, and governance.
7.27 	These county board controls must be specified in the bylaws or
7.28 	other transactional documents, which shall be approved by the
7.29 	county board.
7.30 		Subd. 2.Restriction on disposition of the assets. The
7.31 	corporation shall not have the power to dissolve, merge,
7.32 	consolidate, transfer, liquidate, or otherwise dispose of or
7.33 	distribute all, or substantially all, of the corporation's
7.34 	assets without a county board resolution approved by a majority
7.35 	of the county board.
7.36 		Subd. 3.Distribution of assets upon dissolution. In the
8.1 	event of the dissolution of the corporation, the net assets of
8.2 	the corporation shall be distributed to the county for public
8.3 	purposes.
8.4 		Subd. 4.Compensation and payment limitations. No part
8.5 	of the net earnings and assets of the corporation shall inure to
8.6 	the benefit of any private individual, nor shall any part of the
8.7 	income or assets of the corporation be distributed to or divided
8.8 	among any private individuals as dividends or otherwise.
8.9 		Subd. 5.Financial oversight. The county board shall
8.10 	approve the annual budget of the corporation and receive an
8.11 	annual audited financial statement.  The annual budget shall
8.12 	address how efficiencies and revenues contribute to stabilize or
8.13 	reduce county liabilities for indigent care.  The county board
8.14 	shall also retain the right to conduct an independent audit of
8.15 	the finances of the corporation.
8.16 		Subd. 6.County services. The county board shall retain
8.17 	the authority to require the corporation to provide other health
8.18 	care or health care related services as the county board
8.19 	determines to be in the best interest of the county.  The
8.20 	corporation shall provide these services as long as the county
8.21 	board provides funds to pay for the services.  Payment to the
8.22 	corporation for the services shall be as agreed between the
8.23 	corporation and the county board.
8.24 		Subd. 7.Dissolution or reorganization of the
8.25 	corporation. The county board shall retain the right to
8.26 	dissolve the corporation, reorganize the corporation, or remove
8.27 	the entire corporate board in order to resume management of
8.28 	Hennepin County Medical Center upon a two-thirds vote of the
8.29 	entire county board.

8.30 	Sec. 9. [383B.909] CORPORATE SEAL.
8.31 	The corporation shall not have a corporate seal.

8.32 	Sec. 10. [383B.910] BOARD MEETINGS.
8.33 	In accordance with the bylaws of the corporation, the board
8.34 	shall provide for annual, regular, and special meetings to be
8.35 	held at a designated interval throughout the year.  Notice of
8.36 	these meetings shall be provided in accordance with the bylaws
9.1 	of the corporation.

9.2 	Sec. 11. [383B.911] PUBLIC DEPOSITORY.
9.3 	The corporation shall have jurisdiction over its accounts
9.4 	and payrolls and shall establish and maintain a public
9.5 	depository.  The corporation may use the county as a public
9.6 	depository.  If the depository is not the county, the depository
9.7 	must be subject to chapter 118A, except that the corporation
9.8 	shall determine the appropriate security.  The corporation shall
9.9 	establish and maintain all necessary accounts.  The corporation
9.10 	may establish reserve accounts, depreciation accounts, and
9.11 	working capital funds in order to operate on an accrual basis.

9.12 	Sec. 12. [383B.912] TRANSFER OF RIGHTS.
9.13 		Subdivision 1.Corporation as continuation of hcmc. The
9.14 	corporation created by section 383B.901 shall be considered a
9.15 	continuation of HCMC for purposes of all the rights,
9.16 	liabilities, and contractual obligations of the county
9.17 	pertaining to the operations of HCMC except as otherwise
9.18 	provided herein.  The corporation succeeds to all rights and
9.19 	contractual obligations of the county pertaining to the
9.20 	operations of HCMC with the same force and effect as if those
9.21 	rights and obligations had been continued by the county itself.
9.22 		Subd. 2.Pending matters. The corporation may conduct
9.23 	and complete any legal action, administrative proceeding, or any
9.24 	other matter commenced by or against HCMC or the county, on
9.25 	behalf of HCMC, which was incurred before or pending as of the
9.26 	effective date, in the same manner, under the same conditions,
9.27 	and with the same effect as though the action, proceeding, or
9.28 	other matter were conducted or completed by HCMC or the county
9.29 	acting on behalf of HCMC.
9.30 		Subd. 3.Transfer of documents required. On the
9.31 	effective date, HCMC, or the county on behalf of HCMC, shall
9.32 	have the authority to transfer and deliver to the corporation,
9.33 	as specified in the lease and other transactional documents
9.34 	referenced in section 383B.913, all contracts, books, bonds,
9.35 	plans, paper, records, including all personnel and medical
9.36 	records, and other property of every description within the
10.1 	jurisdiction or control of HCMC, or the county acting on behalf
10.2 	of HCMC, except as otherwise provided herein.
10.3 		Subd. 4.Transfer of funds. On the effective date, HCMC,
10.4 	or the county on behalf of HCMC, shall have the authority to
10.5 	transfer to the corporation all unspent funds appropriated to
10.6 	HCMC, as specified in the lease and other transactional
10.7 	documents referenced in section 383B.913.

10.8 	Sec. 13. [383B.913] LEASE OR TRANSFER OF ASSETS.
10.9 		Subdivision 1.Corporate status. The corporation shall
10.10 	be considered a "public corporation" for purposes of section
10.11 	465.035.
10.12 		Subd. 2.Lease of real property. Notwithstanding any
10.13 	other laws to the contrary, as of the effective date, the county
10.14 	shall have the authority to enter into a lease, mutually
10.15 	agreeable to both parties, with the corporation for
10.16 	substantially all of the real property acquired by or turned
10.17 	over to the county for the establishment, operation, or
10.18 	maintenance of HCMC prior to and as of the effective date and
10.19 	necessary for the operation of the corporation.  Subject to
10.20 	restrictions specified in the written lease and other
10.21 	transaction documents by and between the county and the
10.22 	corporation, the county shall lease the real property
10.23 	exclusively to the corporation.  For the purposes of this
10.24 	subdivision, real property shall mean the real property used by
10.25 	the county for the operations of HCMC that the county shall
10.26 	lease to Hennepin Healthcare System, Inc., as specified in the
10.27 	lease documents and this act as of the effective date.
10.28 		Subd. 3.Requirements of lease. In order for the county
10.29 	to enter into the lease described in subdivision 2, the lease
10.30 	must also address the following:
10.31 	(1) continued primary use of the property for health and
10.32 	hospital services;
10.33 	(2) indigent care;
10.34 	(3) capital improvements;
10.35 	(4) joint ventures and partnerships;
10.36 	(5) assignments and subleases; and 
11.1 	(6) changes to hospital capacity.
11.2 		Subd. 4.Transfer of assets. The county shall transfer
11.3 	to the corporation assets as designated by the county in
11.4 	transactional documents accompanying the lease for use in the
11.5 	operations of HCMC.  For purposes of this subdivision, assets
11.6 	means the equipment and other personal property used by the
11.7 	county for the operations of HCMC that the county shall transfer
11.8 	to Hennepin Healthcare System, Inc., as specified in the
11.9 	transaction documents and this act as of the effective date.
11.10 		Subd. 5.No advertising or bids. The county may transfer
11.11 	and lease the assets and real property to the corporation as
11.12 	specified in subdivisions 2 and 3 without first advertising for
11.13 	or soliciting any bids.

11.14 	Sec. 14. [383B.914] STATUS OF PRESENT EMPLOYEES;
11.15 	BARGAINING UNITS; RETIREMENT COVERAGE.
11.16 		Subdivision 1.Health system human resources
11.17 	system. Persons employed at the corporation created shall be
11.18 	subject to a human resources system that is designed to offer
11.19 	appropriate benefits to workers employed in a health care
11.20 	setting.  This human resources system shall replace the general
11.21 	county human resources system prescribed in sections 383B.26 to
11.22 	383B.42, and any rules related to it.  The corporation shall
11.23 	have the authority to establish all personnel policies and
11.24 	practices, negotiate applicable labor agreements, and set all
11.25 	levels of compensation and benefits which are considered
11.26 	appropriate by the board except as limited in this section.  The
11.27 	human resources system is subject to the following human
11.28 	resources requirements:
11.29 	(1) determine compensation according to the pay equity
11.30 	requirements under sections 471.991 to 471.999;
11.31 	(2) provide preferences for veterans according to the
11.32 	Veterans Preference Act under sections 197.455, 197.46, and
11.33 	375.63; and 
11.34 	(3) provide an appeals process for an individual who is
11.35 	discharged, demoted, or suspended.
11.36 		Subd. 2.Employee transfer. All persons employed by the
12.1 	county whose employment is accounted for in the county
12.2 	enterprise fund for HCMC, on the effective date, shall be
12.3 	transferred to the corporation as specified in the lease and
12.4 	other transactional documents referenced in section 383B.913.
12.5 	The transfer of employees to the corporation under this
12.6 	subdivision does not constitute severance or termination of
12.7 	employment or a layoff entitling transferred employees to
12.8 	severance pay, termination benefits, a retirement plan refund,
12.9 	or any other right that may be applicable in the case of
12.10 	severance, termination, or layoff.
12.11 		Subd. 3.Current positions. Each person employed by the
12.12 	county who is transferred to the corporation on the effective
12.13 	date shall retain employment and accrued benefits, including
12.14 	participation in deferred compensation programs, and will be
12.15 	recorded by most recent date of employment with Hennepin County
12.16 	upon transfer to the corporation created in section 383B.901.
12.17 		Subd. 4.Bargaining units. The corporation shall
12.18 	recognize existing bargaining units organized by employees of
12.19 	HCMC and the exclusive representatives of those bargaining units
12.20 	as of the effective date.  The corporation shall adopt all
12.21 	current labor agreements as of the effective date for the term
12.22 	of those agreements, except for countywide references,
12.23 	countywide provisions, and countywide human resources rules.
12.24 		Subd. 5.General employee retirement benefits. (a)
12.25 	Except as provided in paragraph (b), employees of the
12.26 	corporation, other than paramedics, emergency medical
12.27 	technicians and the supervisors and managers of such employees,
12.28 	and protection officers and supervisors of such employees, are
12.29 	"public employees" under chapter 353 and are members of the
12.30 	general employees retirement plan of the Public Employees
12.31 	Retirement Association, including employees transferred to the
12.32 	corporation under subdivision 2 and employees hired by the
12.33 	corporation after the effective date.
12.34 	(b) Notwithstanding sections 356.24 and 356.25, the
12.35 	corporation has the authority to create alternative retirement
12.36 	plans that are not defined benefit pension plans for the
13.1 	following classes of employees:  supervisors, managers,
13.2 	physicians, and independent health practitioners who bill
13.3 	independently for their time, provided the value of the
13.4 	aggregate benefits are substantially comparable to the general
13.5 	employee retirement plan of the Public Employees Retirement
13.6 	Association.  These classes of employees are eligible to
13.7 	participate in the general retirement plan of the Public
13.8 	Employees Retirement Association until and unless the
13.9 	corporation creates alternative retirement plans.  Only those
13.10 	employees who are within the designated class and who are hired
13.11 	after the date of creation of the alternative plan may be
13.12 	enrolled in the alternative retirement plan in lieu of
13.13 	participation in the general employees retirement plan of the
13.14 	Public Employees Retirement Association.  Any alternative
13.15 	retirement benefit plan established by the corporation must
13.16 	comply with the financial reporting requirements for public
13.17 	pension plans under section 356.20 and the investment
13.18 	performance reporting requirements for public pension plans
13.19 	under section 356.219.
13.20 		Subd. 6.Employees eligible to continue participation in
13.21 	public employee retirement association correctional, police and
13.22 	fire benefit plans. Notwithstanding subdivision 5, both
13.23 	existing and future employees of the corporation in the
13.24 	positions of paramedic and emergency medical technician,
13.25 	including supervisors and managers of such employees, as
13.26 	provided in section 353.64, subdivision 10, are members of the
13.27 	public employees police and fire retirement plan under sections
13.28 	353.63 to 353.68 and in the position of protection officer,
13.29 	including supervisors of such employees, as provided in section
13.30 	353E.02, subdivision 2a, are members of the local government
13.31 	correctional retirement plan under chapter 353E.
13.32 		Subd. 7.Participation in state deferred compensation
13.33 	plan. (a) Existing employees of the corporation, at the
13.34 	election of the corporation, if otherwise qualified, are
13.35 	eligible to participate in the Hennepin County supplemental
13.36 	retirement plan under sections 383B.46 and 383B.52.
14.1 	(b) Existing and future employees of the corporation, at
14.2 	the election of the corporation, are eligible to participate in
14.3 	the Minnesota state deferred compensation plan under section
14.4 	352.96, the postretirement health care savings plan under
14.5 	section 352.98, and all other deferred compensation arrangements
14.6 	for which all persons employed by the county whose employment is
14.7 	accounted for in the county enterprise fund for HCMC were
14.8 	eligible.
14.9 		Subd. 8.Subsidiaries. Any subsidiary created by the
14.10 	corporation shall be subject to the same human resources
14.11 	requirements as those that apply to the corporation under
14.12 	subdivision 1.

14.13 	Sec. 15. [383B.915] BONDING AUTHORITY OF CORPORATION.
14.14 		Subdivision 1.Municipality. The corporation shall be
14.15 	considered a "municipality" pursuant to section 475.51,
14.16 	subdivision 2, for purposes of bond issuance and shall have all
14.17 	the authority conferred on municipalities by chapter 475, unless
14.18 	that authority is modified in this section.
14.19 		Subd. 2.Sale of bonds. Subject to the reserved powers
14.20 	and limitations specified in section 383B.908 and
14.21 	notwithstanding any of the corporation's enumerated powers, the
14.22 	corporation may issue and sell revenue bonds or other revenue
14.23 	obligations to finance capital improvements or for the
14.24 	acquisition and betterment of facilities or other property to be
14.25 	utilized for the delivery of health care and related research,
14.26 	the establishment of reserves for bond payment, or for other
14.27 	proper corporate purposes.
14.28 		Subd. 3.Security for bonds. Subject to the reserved
14.29 	powers and limitations specified in section 383B.908 and
14.30 	notwithstanding any of the corporation's enumerated powers, the
14.31 	bonds may be secured by a mortgage of or security interest in
14.32 	any property owned by the corporation or any interest of the
14.33 	corporation in any property and by a pledge of revenues to be
14.34 	derived from operation of the corporation's facilities as a
14.35 	first and prior lien thereon or as a lien subordinate to the
14.36 	costs of operation and maintenance of the facilities.  The bonds
15.1 	must be in an amount, and shall mature, as provided by
15.2 	resolution of the board and may be issued in one or more series
15.3 	and shall bear a date or dates, bear interest at a rate or
15.4 	rates, be in a denomination or denominations, be in the form
15.5 	either coupon or registered, carry the conversion or
15.6 	registration privileges, have rank or priority, be executed in
15.7 	the manner, be payable in medium of payment at the place or
15.8 	places, and be subject to the terms of redemption, with or
15.9 	without premium, as the resolution may provide.  The bonds may
15.10 	be sold at public or private sale at a price or prices
15.11 	determined by the resolution.  Notwithstanding any law to the
15.12 	contrary, the bonds must be fully negotiable.  The corporation
15.13 	may enter into the covenants the board, by resolution, shall
15.14 	deem necessary and proper to secure payment of the bonds.  The
15.15 	revenue bonds must state on their face that they are not payable
15.16 	from, nor may be a charge upon, any funds other than the
15.17 	revenues and property pledged or mortgaged for their payment,
15.18 	nor shall the corporation be subject to any liability on them or
15.19 	have the power to obligate itself to pay or pay the revenue
15.20 	bonds from funds other than the revenues and property pledged
15.21 	and mortgaged.  No holder or holders of the bonds shall ever
15.22 	have the right to compel any exercise of any taxing power of the
15.23 	county or any other public body to pay the principal of or
15.24 	interest on any of them, nor to enforce payment of them against
15.25 	any property other than that expressly pledged or mortgaged for
15.26 	their payment.

15.27 	Sec. 16. [383B.916] FINANCING THROUGH COUNTY.
15.28 	In addition to the authority granted in section 16, the
15.29 	county may finance any improvements, equipment, or other
15.30 	property to be operated by the corporation and may issue bonds
15.31 	for such purposes pursuant to and subject to the procedures and
15.32 	limitations set forth in section 373.40, 383B.117, 447.45, or
15.33 	other law, as appropriate, whether or not the capital
15.34 	improvement or equipment to be financed is to be owned by the
15.35 	county or the corporation.

15.36 	Sec. 17. [383B.917] OPEN MEETING LAW; GOVERNMENT DATA
16.1 	PRACTICES ACT.
16.2 		Subdivision 1.Data practices act. (a) The corporation
16.3 	is subject to chapter 13, the Minnesota Government Data
16.4 	Practices Act.
16.5 	(b) "Competitive data," as defined in this subdivision, are
16.6 	nonpublic data pursuant to section 13.02, subdivision 9, or
16.7 	private data on individuals pursuant to section 13.02,
16.8 	subdivision 12.  Competitive data are any type of data that the
16.9 	corporation, in its discretion, determines that if disclosed
16.10 	could cause competitive disadvantage to the corporation,
16.11 	including causing adverse effects on the current or future
16.12 	competitive position of the corporation or the entities,
16.13 	facilities, and operations for which it is responsible.  Data
16.14 	discussed at an open meeting of the corporation retains the
16.15 	data's original classification, including classification as
16.16 	competitive data, as provided in section 13D.05, subdivision 1,
16.17 	paragraph (c).  Any data disseminated by the corporation to the
16.18 	county shall retain the same classification in the hands of the
16.19 	county, including the classification as competitive data, as
16.20 	provided in section 13.03, subdivision 4.
16.21 	(c) A subsidiary, joint venture, association, partnership,
16.22 	or other entity that is formed by the corporation is not subject
16.23 	to chapter 13, except that if the corporation enters into a
16.24 	contract with such an entity to perform any functions of the
16.25 	corporation, the corporation shall include in the contract terms
16.26 	that make it clear that data created, collected, received,
16.27 	stored, used, maintained, or disseminated by the contracting
16.28 	entity in performing those functions is subject to the same
16.29 	requirements under chapter 13 as the corporation under this
16.30 	subdivision.  However, this section does not create a duty on
16.31 	the part of the contracting entity to provide access to public
16.32 	data to the public if the public data are available from the
16.33 	corporation, except as required by the terms of the contract.
16.34 	Any entity contracting to perform functions of the corporation
16.35 	may classify data as competitive data as defined in paragraph
16.36 	(b).
17.1 		Subd. 2.Open meeting law. (a) The board of directors of
17.2 	the corporation is subject to chapter 13D, the Minnesota Open
17.3 	Meeting Law.
17.4 	(b) The board may close all or part of a board meeting when
17.5 	discussing competitive data or considering strategic, business,
17.6 	planning, or operational issues the disclosure of which, in its
17.7 	discretion, it determines could cause competitive disadvantage
17.8 	to the corporation, including causing adverse effects on the
17.9 	current or future competitive position of the corporation or the
17.10 	entities, facilities, and operations for which it is
17.11 	responsible.  Meetings of committees of the board of directors
17.12 	may, at the discretion of the board, be closed to the public.
17.13 	(c) In addition, the following meetings of the corporation
17.14 	shall be held and shall be open meetings:  (1) an annual public
17.15 	meeting to report on the affairs of the corporation and the
17.16 	goals for the future, including a report on the health services
17.17 	plan specified in section 383B.918; (2) meetings of the
17.18 	corporation held during the development and implementation phase
17.19 	of the health services plan for the purpose of informing the
17.20 	public and receiving public comment; and (3) that portion of a
17.21 	meeting at which the board of the corporation approves the
17.22 	annual budget prior to submission to the county board for
17.23 	approval.  Meetings held under clause (1) or (2) may be chaired
17.24 	by a member of the board of directors or a member of the
17.25 	administration as designated by the board of directors.  Except
17.26 	as provided in paragraphs (a), (b), and (c), other meetings of
17.27 	the corporation are not subject to chapter 13D.
17.28 	(d) Chapter 13D does not apply to a subsidiary, joint
17.29 	venture, association, or partnership of the corporation unless
17.30 	such entity has been organized to assume management of the
17.31 	corporation.

17.32 	Sec. 18. [383B.918] HEALTH SERVICES PLAN.
17.33 	The corporation shall prepare, and submit to the county
17.34 	board for review and approval, a health services plan that draws
17.35 	from a population health needs assessment and delineates the
17.36 	corporation's role in the community, including education,
18.1 	research, and services to improve the health status of the
18.2 	community including indigent populations.  The health services
18.3 	plan shall contain a description of how the corporation shall
18.4 	continue to coordinate with the county to provide health-related
18.5 	services to the residents of Hennepin County, including the
18.6 	indigent as defined by state and federal law and as determined
18.7 	by the Hennepin County Board of Commissioners.

18.8 	Sec. 19. [383B.919] TORT LIABILITY.
18.9 	The corporation shall be a "municipality" for purposes of
18.10 	tort liability pursuant to chapter 466; except that chapter 466
18.11 	does not apply to an action against any subsidiary, joint
18.12 	venture, association, or partnership of the corporation alleging
18.13 	malpractice, error, mistake, or failure to cure because of the
18.14 	actions of physicians or other health care providers employed by
18.15 	the entity, unless that entity has been organized to assume
18.16 	management of the entire corporation.

18.17 	Sec. 20. [383B.920] REVENUE RECAPTURE ACT.
18.18 	The corporation shall be considered a "claimant agency" for
18.19 	purposes of the Revenue Recapture Act, chapter 270A.

18.20 	Sec. 21. [383B.921] PURCHASING.
18.21 		Subdivision 1.Public procurement. Notwithstanding any
18.22 	law to the contrary, contracting and purchasing of goods,
18.23 	materials, supplies, equipment, and services that are included
18.24 	as part of a contract for the purchase of goods, materials,
18.25 	supplies, equipment, or services are specifically exempted from
18.26 	sections 383B.141 to 383B.151 and 471.345 to 471.371, or other
18.27 	applicable laws related to public procurement.
18.28 		Subd. 2.Purchasing and service contracts. The
18.29 	corporation may purchase directly or utilize the services of a
18.30 	nonprofit cooperative hospital service organization, the county,
18.31 	the state of Minnesota, the University of Minnesota, or any
18.32 	other political subdivision or agency of the state of Minnesota
18.33 	in the purchase of all goods, materials, and services that the
18.34 	corporation may require.

18.35 	Sec. 22. [383B.922] LEGAL COUNSEL.
18.36 	With respect to the provisions of section 388.051, the
19.1 	corporation shall be deemed a part of Hennepin County for
19.2 	purposes of the Hennepin County attorney serving as legal
19.3 	counsel to the corporation; provided, however, that the
19.4 	corporation and the Hennepin County attorney may enter into an
19.5 	arrangement with respect to the hiring of outside counsel on
19.6 	behalf of the corporation.  The corporation shall reimburse the
19.7 	county for legal services provided by the Hennepin County
19.8 	attorney, including any and all costs, and the reimbursement
19.9 	shall be credited to the budget of the Hennepin County attorney.

19.10 	Sec. 23. [383B.923] SELF-INSURANCE.
19.11 		Subdivision 1.Self-insurance. The corporation may
19.12 	participate in any self-insurance program established by the
19.13 	county in accordance with section 383B.155.
19.14 		Subd. 2.Additional benefits to employees. The
19.15 	corporation may provide for the payment of additional benefits
19.16 	to employees from their accumulated vacation, sick leave, or
19.17 	overtime credits if the employees of the corporation and any of
19.18 	its subsidiaries are entitled to the benefits of the Workers'
19.19 	Compensation Law and have at the time of compensable injury
19.20 	accumulated credits under a vacation, sick leave, or overtime
19.21 	plan or system maintained by the corporation.  The additional
19.22 	payments to an employee may not exceed the amount of the total
19.23 	sick leave, vacation, or overtime credits accumulated by the
19.24 	employee and shall not result in the payment of a total weekly
19.25 	rate of compensation that exceeds the weekly wage of the
19.26 	employee.  The additional payments to any employee shall be
19.27 	charged against the sick leave, vacation, and overtime credits
19.28 	accumulated by the employee.  Employees of the corporation and
19.29 	any of its subsidiaries entitled to the benefits of the Workers'
19.30 	Compensation Law may receive additional benefits pursuant to a
19.31 	collective bargaining agreement or other plan, entered into or
19.32 	in effect on or after January 1, 2003, providing payments by or
19.33 	on behalf of the employer, and these additional benefits may be
19.34 	unrelated to any accumulated sick leave, holiday, or overtime
19.35 	credits and need not be charged against any accumulation;
19.36 	provided that the additional payments must not result in the
20.1 	payment of a total weekly rate of compensation that exceeds the
20.2 	weekly wage of the employee.  The corporation and its
20.3 	subsidiaries may adopt rules and regulations consistent with
20.4 	chapter 179, to carry out the section relating to payment of
20.5 	additional benefits to employees from accumulated sick leave,
20.6 	vacation, overtime credits, or other sources.

20.7 	Sec. 24. [383B.924] HOSPITAL AUTHORITIES.
20.8 	The corporation shall not be considered a hospital or
20.9 	hospital district subject to section 144.581.

20.10 	Sec. 25. [383B.925] TAX-EXEMPT STATUS.
20.11 	The corporation is an organization exempt from taxation
20.12 	pursuant to chapters 290 and 297A.

20.13 	Sec. 26. [383B.926] PREPAID HEALTH PLAN.
20.14 	The corporation is a county-affiliated public teaching
20.15 	hospital for purposes of section 256D.03, subdivision 4.

20.16 	Sec. 27. [383B.927] INTERGOVERNMENTAL TRANSFERS.
20.17 	For purposes of medical assistance, Medicaid, Medicare, and
20.18 	other public programs, the corporation shall continue to be a
20.19 	"unit of state or local government" and a "government owned or
20.20 	operated hospital," and shall be eligible to receive
20.21 	"intergovernmental transfers" and "certified public expenditures"
20.22 	as may be authorized from time to time by the state of Minnesota
20.23 	or Hennepin County.

20.24 	Sec. 28. [383B.928] INDIGENT CARE.
20.25 		Subdivision 1.Services. The corporation shall provide
20.26 	health care and related services for the indigent of the county
20.27 	as required by the terms of the lease as specified in section
20.28 	383B.913, subdivisions 2 and 3, consistent with any agreement
20.29 	for payment for those services made with the county.
20.30 		Subd. 2.Funds. Notwithstanding any law to the contrary,
20.31 	the county may provide funds for the purchase of medical care
20.32 	for the indigent of the county from a provider selected by the
20.33 	county with or without public bid.

20.34 	Sec. 29. EFFECTIVE DATES.
 20.35 	(a) Sections 3 to 8, regarding governance and corporate
20.36 	powers; section 14, subdivision 1, regarding the establishment
21.1 	of personnel policies; and section 17, regarding the Minnesota
21.2 	Open Meeting Law and the Government Data Practices Act are
21.3 	effective when the initial board of the corporation is appointed
21.4 	by the county board.
21.5 	(b) The remaining sections of the bill are effective the
21.6 	day after the county board files a certificate of local approval
21.7 	in compliance with Minnesota Statutes, section 645.021,
21.8 	subdivision 3, after which the corporation shall commence
21.9 	operation and management of Hennepin County Medical Center.

21.10 	ARTICLE 2
21.11 	LABOR RELATIONS; RELATED ISSUES

21.12 	Section 1. Minnesota Statutes 2004, section 179A.03,
21.13 	subdivision 7, is amended to read:
21.14 		Subd. 7.Essential employee.  "Essential employee" means
21.15 	firefighters, peace officers subject to licensure under sections
21.16 	626.84 to 626.863, 911 system and police and fire department
21.17 	public safety dispatchers, guards at correctional facilities,
21.18 	confidential employees, supervisory employees, assistant county
21.19 	attorneys, assistant city attorneys, principals, and assistant
21.20 	principals.  However, for state employees, "essential employee"
21.21 	means all employees in law enforcement, health care
21.22 	professionals, correctional guards, professional engineering,
21.23 	and supervisory collective bargaining units, irrespective of
21.24 	severance, and no other employees.  For University of Minnesota
21.25 	employees, "essential employee" means all employees in law
21.26 	enforcement, nursing professional and supervisory units,
21.27 	irrespective of severance, and no other employees.
21.28 	"Firefighters" means salaried employees of a fire department
21.29 	whose duties include, directly or indirectly, controlling,
21.30 	extinguishing, preventing, detecting, or investigating fires.
21.31 	Employees for whom the state court administrator is the
21.32 	negotiating employer are not essential employees. For Hennepin
21.33 	Healthcare System, Inc. employees, "essential employees" means
21.34 	all employees.

21.35 	Sec. 2. Minnesota Statutes 2004, section 179A.03,
21.36 	subdivision 14, is amended to read:
22.1 		Subd. 14.Public employee or employee.  "Public employee"
22.2 	or "employee" means any person appointed or employed by a public
22.3 	employer except:
22.4 	(a) elected public officials;
22.5 	(b) election officers;
22.6 	(c) commissioned or enlisted personnel of the Minnesota
22.7 	National Guard;
22.8 	(d) emergency employees who are employed for emergency work
22.9 	caused by natural disaster;
22.10 	(e) part-time employees whose service does not exceed the
22.11 	lesser of 14 hours per week or 35 percent of the normal work
22.12 	week in the employee's appropriate unit;
22.13 	(f) employees whose positions are basically temporary or
22.14 	seasonal in character and:  (1) are not for more than 67 working
22.15 	days in any calendar year; or (2) are not for more than 100
22.16 	working days in any calendar year and the employees are under
22.17 	the age of 22, are full-time students enrolled in a nonprofit or
22.18 	public educational institution prior to being hired by the
22.19 	employer, and have indicated, either in an application for
22.20 	employment or by being enrolled at an educational institution
22.21 	for the next academic year or term, an intention to continue as
22.22 	students during or after their temporary employment;
22.23 	(g) employees providing services for not more than two
22.24 	consecutive quarters to the Board of Trustees of the Minnesota
22.25 	State Colleges and Universities under the terms of a
22.26 	professional or technical services contract as defined in
22.27 	section 16C.08, subdivision 1;
22.28 	(h) employees of charitable hospitals as defined by section
22.29 	179.35, subdivision 3;
22.30 	(i) full-time undergraduate students employed by the school
22.31 	which they attend under a work-study program or in connection
22.32 	with the receipt of financial aid, irrespective of number of
22.33 	hours of service per week;
22.34 	(j) an individual who is employed for less than 300 hours
22.35 	in a fiscal year as an instructor in an adult vocational
22.36 	education program;
23.1 	(k) an individual hired by the Board of Trustees of the
23.2 	Minnesota State Colleges and Universities to teach one course
23.3 	for three or fewer credits for one semester in a year;
23.4 	(l) with respect to court employees:
23.5 	(1) personal secretaries to judges;
23.6 	(2) law clerks;
23.7 	(3) managerial employees;
23.8 	(4) confidential employees; and
23.9 	(5) supervisory employees.;
23.10 	(m) with respect to employees of Hennepin Healthcare
23.11 	System, Inc., managerial, supervisory, and confidential
23.12 	employees.
23.13 	The following individuals are public employees regardless
23.14 	of the exclusions of clauses (e) and (f):
23.15 	(i) An employee hired by a school district or the Board of
23.16 	Trustees of the Minnesota State Colleges and Universities except
23.17 	at the university established in section 136F.13 or for
23.18 	community services or community education instruction offered on
23.19 	a noncredit basis:  (A) to replace an absent teacher or faculty
23.20 	member who is a public employee, where the replacement employee
23.21 	is employed more than 30 working days as a replacement for that
23.22 	teacher or faculty member; or (B) to take a teaching position
23.23 	created due to increased enrollment, curriculum expansion,
23.24 	courses which are a part of the curriculum whether offered
23.25 	annually or not, or other appropriate reasons; and
23.26 	(ii) An employee hired for a position under clause (f)(1)
23.27 	if that same position has already been filled under clause
23.28 	(f)(1) in the same calendar year and the cumulative number of
23.29 	days worked in that same position by all employees exceeds 67
23.30 	calendar days in that year.  For the purpose of this paragraph,
23.31 	"same position" includes a substantially equivalent position if
23.32 	it is not the same position solely due to a change in the
23.33 	classification or title of the position.

23.34 	Sec. 3. Minnesota Statutes 2004, section 179A.03,
23.35 	subdivision 15, is amended to read:
23.36 		Subd. 15.Public employer or employer.  "Public employer"
24.1 	or "employer" means:
24.2 	(a) the state of Minnesota for employees of the state not
24.3 	otherwise provided for in this subdivision or section 179A.10
24.4 	for executive branch employees;
24.5 	(b) the Board of Regents of the University of Minnesota for
24.6 	its employees;
24.7 	(c) the state court administrator for court employees;
24.8 	(d) the state Board of Public Defense for its employees;
24.9 	and 
24.10 	(e) Hennepin Healthcare System, Inc.; and 
24.11 	(f) notwithstanding any other law to the contrary, the
24.12 	governing body of a political subdivision or its agency or
24.13 	instrumentality which has final budgetary approval authority for
24.14 	its employees.  However, the views of elected appointing
24.15 	authorities who have standing to initiate interest arbitration,
24.16 	and who are responsible for the selection, direction,
24.17 	discipline, and discharge of individual employees shall be
24.18 	considered by the employer in the course of the discharge of
24.19 	rights and duties under sections 179A.01 to 179A.25.
24.20 	When two or more units of government subject to sections
24.21 	179A.01 to 179A.25 undertake a project or form a new agency
24.22 	under law authorizing common or joint action, the employer is
24.23 	the governing person or board of the created agency.  The
24.24 	governing official or body of the cooperating governmental units
24.25 	shall be bound by an agreement entered into by the created
24.26 	agency according to sections 179A.01 to 179A.25.
24.27 	"Public employer" or "employer" does not include a
24.28 	"charitable hospital" as defined in section 179.35, subdivision
24.29 	2.
24.30 	Nothing in this subdivision diminishes the authority
24.31 	granted pursuant to law to an appointing authority with respect
24.32 	to the selection, direction, discipline, or discharge of an
24.33 	individual employee if this action is consistent with general
24.34 	procedures and standards relating to selection, direction,
24.35 	discipline, or discharge which are the subject of an agreement
24.36 	entered into under sections 179A.01 to 179A.25.

25.1 	Sec. 4. Minnesota Statutes 2004, section 179A.06,
25.2 	subdivision 2, is amended to read:
25.3 		Subd. 2.Right to organize.  Public employees have the
25.4 	right to form and join labor or employee organizations, and have
25.5 	the right not to form and join such organizations.  Public
25.6 	employees in an appropriate unit have the right by secret ballot
25.7 	to designate an exclusive representative to negotiate grievance
25.8 	procedures and the terms and conditions of employment with their
25.9 	employer.  Confidential employees of the state, confidential
25.10 	court employees, and confidential University of Minnesota
25.11 	employees are excluded from bargaining.  Supervisory and
25.12 	managerial court employees are excluded from
25.13 	bargaining. Supervisory, managerial, and confidential employees
25.14 	of Hennepin Healthcare System, Inc., are excluded from
25.15 	bargaining.Other confidential employees, supervisory
25.16 	employees, principals, and assistant principals may form their
25.17 	own organizations.  An employer shall extend exclusive
25.18 	recognition to a representative of or an organization of
25.19 	supervisory or confidential employees, or principals and
25.20 	assistant principals, for the purpose of negotiating terms or
25.21 	conditions of employment, in accordance with sections 179A.01 to
25.22 	179A.25, applicable to essential employees.
25.23 	Supervisory or confidential employee organizations shall
25.24 	not participate in any capacity in any negotiations which
25.25 	involve units of employees other than supervisory or
25.26 	confidential employees.  Except for organizations which
25.27 	represent supervisors who are:  (1) firefighters, emergency
25.28 	medical service employees certified under section 144E.28, 911
25.29 	system public safety dispatchers, peace officers subject to
25.30 	licensure under sections 626.84 to 626.863, guards at
25.31 	correctional facilities, or employees at hospitals other than
25.32 	state hospitals; and (2) not state or University of Minnesota
25.33 	employees, a supervisory or confidential employee organization
25.34 	which is affiliated with another employee organization which is
25.35 	the exclusive representative of nonsupervisory or
25.36 	nonconfidential employees of the same public employer shall not
26.1 	be certified, or act as, an exclusive representative for the
26.2 	supervisory or confidential employees.  For the purpose of this
26.3 	subdivision, affiliation means either direct or indirect and
26.4 	includes affiliation through a federation or joint body of
26.5 	employee organizations.

26.6 	Sec. 5. [179A.40] HENNEPIN HEALTHCARE SYSTEM, INC.
26.7 		Subdivision 1.Units. The following are the appropriate
26.8 	employee units of the Hennepin Healthcare System, Inc.  All
26.9 	units shall exclude supervisors, managerial employees, and
26.10 	confidential employees.  No additional units of Hennepin
26.11 	Healthcare System, Inc., shall be eligible to be certified for
26.12 	the purpose of meeting and negotiating with an exclusive
26.13 	representative.  The units include all:
26.14 	(1) registered nurses;
26.15 	(2) physicians;
26.16 	(3) professionals except for registered nurses and
26.17 	physicians;
26.18 	(4) technical and paraprofessional employees;
26.19 	(5) carpenters, electricians, painters, and plumbers;
26.20 	(6) health general service employees;
26.21 	(7) interpreters;
26.22 	(8) emergency medical technicians/emergency medical
26.23 	dispatchers (EMT/EMD), and paramedics;
26.24 	(9) bioelectronics specialists, bioelectronics technicians,
26.25 	and electronics technicians;
26.26 	(10) skilled maintenance employees; and 
26.27 	(11) clerical employees.
26.28 		Subd. 2.Nonconforming units. Preexisting Hennepin
26.29 	County Medical Center bargaining units covered by existing labor
26.30 	agreements on the day following final enactment of this act that
26.31 	do not conform to one of the 11 units described in subdivision 1
26.32 	shall continue to be appropriate.  If an employee representative
26.33 	seeks to represent employees who are residual to an existing
26.34 	nonconforming unit, then all of the employees who are residual
26.35 	to that unit shall be eligible to vote in an election conducted
26.36 	by the commissioner.  An election shall be held when an employee
27.1 	organization or group of employees files a petition for an
27.2 	election and the petition is supported by a showing of interest
27.3 	from 30 percent or more of the employees who are residual to an
27.4 	existing nonconforming unit.  The employees who are residual to
27.5 	an existing nonconforming unit shall be included within the
27.6 	existing nonconforming unit if a majority of the eligible
27.7 	employees who vote cast their ballots in favor of representation
27.8 	during an election conducted by the commissioner.  Nothing shall
27.9 	preclude an exclusive representative and Hennepin Health Care
27.10 	System, Inc., or prior to the formation of the corporation
27.11 	Hennepin County, from agreeing to an election conducted by the
27.12 	commissioner or other appropriate procedure by which less than
27.13 	all of the employees who are residual to an existing
27.14 	nonconforming unit may be added to the unit.

27.15 	Sec. 6. Minnesota Statutes 2004, section 383B.117,
27.16 	subdivision 2, is amended to read:
27.17 		Subd. 2.Equipment acquisition; capital notes.  The board
27.18 	may, by resolution and without public referendum, issue capital
27.19 	notes within existing debt limits for the purpose of purchasing
27.20 	ambulance and other medical equipment, road construction or
27.21 	maintenance equipment, public safety equipment and other capital
27.22 	equipment having an expected useful life at least equal to the
27.23 	term of the notes issued.  The notes shall be payable in not
27.24 	more than five years and shall be issued on terms and in a
27.25 	manner as the board determines.  The total principal amount of
27.26 	the notes issued for any fiscal year shall not exceed one
27.27 	percent of the total annual budget for that year and shall be
27.28 	issued solely for the purchases authorized in this subdivision.
27.29 	A tax levy shall be made for the payment of the principal and
27.30 	interest on such notes as in the case of bonds. For purposes of
27.31 	this subdivision, the term "medical equipment" includes computer
27.32 	hardware and software and other intellectual property for use in
27.33 	medical diagnosis, medical procedures, research, record keeping,
27.34 	billing, and other hospital applications, together with
27.35 	application development services and training related to the use
27.36 	of the computer hardware and software and other intellectual
28.1 	property, all without regard to their useful life.  For purposes
28.2 	of determining the amount of capital notes which the county may
28.3 	issue in any year, the budget of the county and Hennepin
28.4 	Healthcare System, Inc. shall be combined and the notes issuable
28.5 	under this subdivision shall be in addition to obligations
28.6 	issuable under section 373.01, subdivision 3.

28.7 	Sec. 7. Minnesota Statutes 2004, section 383B.217,
28.8 	subdivision 7, is amended to read:
28.9 		Subd. 7.purchases and marketing purchasing, contracting,
28.10 	meetings, data.  (a) Contracting and purchasing made on behalf
28.11 	of the Hennepin County Medical Center and its health maintenance
28.12 	organization ( HMO ) , ambulatory health center, or other clinics
28.13 	authorized under section 383B.219,of goods, materials,
28.14 	supplies, equipment, and services that are incidental to or that
28.15 	are included as part of a contract for the purchase of goods,
28.16 	materials, supplies, or equipment are specifically exempted from
28.17 	sections 383B.141 to 383B.151 and 471.345 or other applicable
28.18 	laws related to public procurement.  Contracting and purchasing
28.19 	of services shall comply with sections 383B.141 to 383B.151 or
28.20 	other applicable laws related to public procurement.
28.21 	(b) Notwithstanding chapter 13D, the county board on behalf
28.22 	of the medical center and HMO may meet in closed session to
28.23 	discuss and take action on specific products or services that
28.24 	are in direct competition with other providers of goods or
28.25 	services in the public or private sector, if disclosure of
28.26 	information pertaining to those matters would clearly harm the
28.27 	competitive position of the medical center or HMO.
28.28 	(c) The medical center and HMO shall inform the county
28.29 	board when there are matters that are appropriate for discussion
28.30 	or action under paragraph (b).  The county administrator or the
28.31 	administrator's designee shall give the board an opinion on the
28.32 	propriety of discussion or action under paragraph (b) for each
28.33 	of the matters.  The county board may, by a majority vote in a
28.34 	public meeting, decide to hold a closed meeting under paragraph
28.35 	(b).  The purpose, time, and place of the meeting must be
28.36 	announced at a public meeting.  A written roll of members
29.1 	present at a closed meeting must be made available to the public
29.2 	after the closed meeting.  The proceedings of a closed meeting
29.3 	must be tape recorded at the expense of the county board and be
29.4 	preserved for not less than five years after the meeting.  The
29.5 	data on the tape are nonpublic data under section 13.02,
29.6 	subdivision 9, until two years after the meeting.  A contract
29.7 	entered into by the county board at a meeting held on behalf of
29.8 	the medical center or HMO is subject to section 471.345.  All
29.9 	bids and any related materials that are considered at the
29.10 	meeting must be retained for a period of not less than five
29.11 	years.  After the expiration of the term of any contract entered
29.12 	into pursuant to this subdivision or a period of two years,
29.13 	whichever is less, the contract, the bids, and any related
29.14 	materials are public data.  The contract, the bids, and any
29.15 	related materials are subject to review by the state auditor at
29.16 	any time.
29.17 	(d) Data concerning specific products or services that are
29.18 	in direct competition with other providers of goods or services
29.19 	in the public or private sector are trade secret information for
29.20 	purposes of section 13.37, to the extent disclosure of
29.21 	information pertaining to the matters would clearly harm the
29.22 	competitive position of the medical center or HMO.  The data are
29.23 	trade secret information for the term of the contract or a
29.24 	two-year period, whichever is less.
29.25 	(e) Notwithstanding section 471.345 or other applicable
29.26 	law, the county board on behalf of the medical center,HMO,
29.27 	ambulatory health center, or other clinics authorized under
29.28 	section 383B.219, may contract, except for services, by any
29.29 	means that the county board or at its direction the medical
29.30 	center or HMO, ambulatory health center, or other clinics
29.31 	authorized under section 383B.219,may determine.  When
29.32 	contracting for services, the county board must comply with
29.33 	sections 383B.141 to 383B.151 and other applicable law, except
29.34 	that the board may contract with a private or public cooperative
29.35 	purchasing organization if it can be established that the
29.36 	purchasing organization's services that are purchased have been
30.1 	awarded through a competitive or request for proposal process.
30.2 	(f) This subdivision applies to the medical center,HMO,
30.3 	ambulatory health centers, or other clinics authorized under
30.4 	section 383B.219, as well as any other organization,
30.5 	association, partnership, or corporation authorized by Hennepin
30.6 	County under section 144.581.

30.7 	Sec. 8. TRANSITION.
 30.8 		Subdivision 1.Initial board. For the first three years,
30.9 	the board of Hennepin Healthcare System, Inc., shall be governed
30.10 	by a board of directors consisting of 13 directors appointed by
30.11 	the county board according to the procedure specified in this
30.12 	act.
30.13 		Subd. 2.Initial human resources system. Input from
30.14 	Hennepin County Medical Center employees shall be obtained prior
30.15 	to the development of the human resources rules and policies for
30.16 	the new corporation and the rules and policies shall be
30.17 	finalized and the county board shall, by a single majority vote
30.18 	without amendment, approve the rules and policies and ratify
30.19 	labor agreements, prior to the county board's vote to file the
30.20 	certificate of local approval.

30.21 	Sec. 9. REPEALER.
 30.22 	Minnesota Statutes 2004, section 383B.217, subdivisions 1,
30.23 	2, 3, 4, 5, 6, and 8, are repealed.

30.24 	Sec. 10. EFFECTIVE DATE.
 30.25 	Sections 1 to 7 and 9 are effective on the date specified
30.26 	in article 1, section 29, paragraph (b).  Section 8 is effective
30.27 	the day following final enactment.

30.28 	ARTICLE 3
30.29 	CONFORMING RETIREMENT CHANGES

30.30 	Section 1. Minnesota Statutes 2004, section 353.01,
30.31 	subdivision 2b, is amended to read:
30.32 		Subd. 2b.Excluded employees.  The following public
30.33 	employees are not eligible to participate as members of the
30.34 	association with retirement coverage by the public employees
30.35 	retirement plan, the local government correctional employees
30.36 	retirement plan under chapter 353E, or the public employees
31.1 	police and fire retirement plan:
31.2 	(1) public officers, other than county sheriffs, who are
31.3 	elected to a governing body, or persons who are appointed to
31.4 	fill a vacancy in an elective office of a governing body, whose
31.5 	term of office commences on or after July 1, 2002, for the
31.6 	service to be rendered in that elective position.  Elected
31.7 	governing body officials who were active members of the
31.8 	association's coordinated or basic retirement plans as of June
31.9 	30, 2002, continue participation throughout incumbency in office
31.10 	until termination of public service occurs as defined in
31.11 	subdivision 11a;
31.12 	(2) election officers or election judges;
31.13 	(3) patient and inmate personnel who perform services for a
31.14 	governmental subdivision;
31.15 	(4) except as otherwise specified in subdivision 12a,
31.16 	employees who are hired for a temporary position as defined
31.17 	under subdivision 12a, and employees who resign from a
31.18 	nontemporary position and accept a temporary position within 30
31.19 	days in the same governmental subdivision;
31.20 	(5) employees who are employed by reason of work emergency
31.21 	caused by fire, flood, storm, or similar disaster;
31.22 	(6) employees who by virtue of their employment in one
31.23 	governmental subdivision are required by law to be a member of
31.24 	and to contribute to any of the plans or funds administered by
31.25 	the Minnesota State Retirement System, the Teachers Retirement
31.26 	Association, the Duluth Teachers Retirement Fund Association,
31.27 	the Minneapolis Teachers Retirement Fund Association, the St.
31.28 	Paul Teachers Retirement Fund Association, the Minneapolis
31.29 	Employees Retirement Fund, or any police or firefighters relief
31.30 	association governed by section 69.77 that has not consolidated
31.31 	with the Public Employees Retirement Association, or any local
31.32 	police or firefighters consolidation account who have not
31.33 	elected the type of benefit coverage provided by the public
31.34 	employees police and fire fund under sections 353A.01 to
31.35 	353A.10, or any persons covered by section 353.665, subdivision
31.36 	4, 5, or 6, who have not elected public employees police and
32.1 	fire plan benefit coverage.  This clause must not be construed
32.2 	to prevent a person from being a member of and contributing to
32.3 	the Public Employees Retirement Association and also belonging
32.4 	to and contributing to another public pension plan or fund for
32.5 	other service occurring during the same period of time.  A
32.6 	person who meets the definition of "public employee" in
32.7 	subdivision 2 by virtue of other service occurring during the
32.8 	same period of time becomes a member of the association unless
32.9 	contributions are made to another public retirement fund on the
32.10 	salary based on the other service or to the Teachers Retirement
32.11 	Association by a teacher as defined in section 354.05,
32.12 	subdivision 2;
32.13 	(7) persons who are members of a religious order and are
32.14 	excluded from coverage under the federal Old Age, Survivors,
32.15 	Disability, and Health Insurance Program for the performance of
32.16 	service as specified in United States Code, title 42, section
32.17 	410(a)(8)(A), as amended through January 1, 1987, if no
32.18 	irrevocable election of coverage has been made under section
32.19 	3121(r) of the Internal Revenue Code of 1954, as amended;
32.20 	(8) employees of a governmental subdivision who have not
32.21 	reached the age of 23 and are enrolled on a full-time basis to
32.22 	attend or are attending classes on a full-time basis at an
32.23 	accredited school, college, or university in an undergraduate,
32.24 	graduate, or professional-technical program, or a public or
32.25 	charter high school;
32.26 	(9) resident physicians, medical interns, and pharmacist
32.27 	residents and pharmacist interns who are serving in a degree or
32.28 	residency program in public hospitals;
32.29 	(10) students who are serving in an internship or residency
32.30 	program sponsored by an accredited educational institution;
32.31 	(11) persons who hold a part-time adult supplementary
32.32 	technical college license who render part-time teaching service
32.33 	in a technical college;
32.34 	(12) except for employees of Hennepin County or Hennepin
32.35 	Healthcare System, Inc., foreign citizens working for a
32.36 	governmental subdivision with a work permit of less than three
33.1 	years, or an H-1b visa valid for less than three years of
33.2 	employment.  Upon notice to the association that the work permit
33.3 	or visa extends beyond the three-year period, the foreign
33.4 	citizens must be reported for membership from the date of the
33.5 	extension;
33.6 	(13) public hospital employees who elected not to
33.7 	participate as members of the association before 1972 and who
33.8 	did not elect to participate from July 1, 1988, to October 1,
33.9 	1988;
33.10 	(14) except as provided in section 353.86, volunteer
33.11 	ambulance service personnel, as defined in subdivision 35, but
33.12 	persons who serve as volunteer ambulance service personnel may
33.13 	still qualify as public employees under subdivision 2 and may be
33.14 	members of the Public Employees Retirement Association and
33.15 	participants in the public employees retirement fund or the
33.16 	public employees police and fire fund, whichever applies, on the
33.17 	basis of compensation received from public employment service
33.18 	other than service as volunteer ambulance service personnel;
33.19 	(15) except as provided in section 353.87, volunteer
33.20 	firefighters, as defined in subdivision 36, engaging in
33.21 	activities undertaken as part of volunteer firefighter duties;
33.22 	provided that a person who is a volunteer firefighter may still
33.23 	qualify as a public employee under subdivision 2 and may be a
33.24 	member of the Public Employees Retirement Association and a
33.25 	participant in the public employees retirement fund or the
33.26 	public employees police and fire fund, whichever applies, on the
33.27 	basis of compensation received from public employment activities
33.28 	other than those as a volunteer firefighter;
33.29 	(16) pipefitters and associated trades personnel employed
33.30 	by Independent School District No. 625, St. Paul, with coverage
33.31 	under a collective bargaining agreement by the pipefitters local
33.32 	455 pension plan who were either first employed after May 1,
33.33 	1997, or, if first employed before May 2, 1997, elected to be
33.34 	excluded under Laws 1997, chapter 241, article 2, section 12;
33.35 	(17) electrical workers, plumbers, carpenters, and
33.36 	associated trades personnel employed by Independent School
34.1 	District No. 625, St. Paul, or the city of St. Paul, who have
34.2 	retirement coverage under a collective bargaining agreement by
34.3 	the Electrical Workers Local 110 pension plan, the United
34.4 	Association Plumbers Local 34 pension plan, or the Carpenters
34.5 	Local 87 pension plan who were either first employed after May
34.6 	1, 2000, or, if first employed before May 2, 2000, elected to be
34.7 	excluded under Laws 2000, chapter 461, article 7, section 5;
34.8 	(18) bricklayers, allied craftworkers, cement masons,
34.9 	glaziers, glassworkers, painters, allied tradesworkers, and
34.10 	plasterers employed by the city of St. Paul or Independent
34.11 	School District No. 625, St. Paul, with coverage under a
34.12 	collective bargaining agreement by the Bricklayers and Allied
34.13 	Craftworkers Local 1 pension plan, the Cement Masons Local 633
34.14 	pension plan, the Glaziers and Glassworkers Local L-1324 pension
34.15 	plan, the Painters and Allied Trades Local 61 pension plan, or
34.16 	the Twin Cities Plasterers Local 265 pension plan who were
34.17 	either first employed after May 1, 2001, or if first employed
34.18 	before May 2, 2001, elected to be excluded under Laws 2001,
34.19 	First Special Session chapter 10, article 10, section 6;
34.20 	(19) plumbers employed by the Metropolitan Airports
34.21 	Commission, with coverage under a collective bargaining
34.22 	agreement by the Plumbers Local 34 pension plan, who either were
34.23 	first employed after May 1, 2001, or if first employed before
34.24 	May 2, 2001, elected to be excluded under Laws 2001, First
34.25 	Special Session chapter 10, article 10, section 6;
34.26 	(20) employees who are hired after June 30, 2002, to fill
34.27 	seasonal positions under subdivision 12b which are limited in
34.28 	duration by the employer to 185 consecutive calendar days or
34.29 	less in each year of employment with the governmental
34.30 	subdivision;
34.31 	(21) persons who are provided supported employment or
34.32 	work-study positions by a governmental subdivision and who
34.33 	participate in an employment or industries program maintained
34.34 	for the benefit of these persons where the governmental
34.35 	subdivision limits the position's duration to three years or
34.36 	less, including persons participating in a federal or state
35.1 	subsidized on-the-job training, work experience, senior citizen,
35.2 	youth, or unemployment relief program where the training or work
35.3 	experience is not provided as a part of, or for, future
35.4 	permanent public employment;
35.5 	(22) independent contractors and the employees of
35.6 	independent contractors; and
35.7 	(23) reemployed annuitants of the association during the
35.8 	course of that reemployment.

35.9 	Sec. 2. Minnesota Statutes 2004, section 353.01,
35.10 	subdivision 2d, is amended to read:
35.11 		Subd. 2d.Optional membership.  (a) Membership in the
35.12 	association is optional by action of the individual employee for
35.13 	the following public employees who meet the conditions set forth
35.14 	in subdivision 2a:
35.15 	(1) members of the coordinated plan who are also employees
35.16 	of labor organizations as defined in section 353.017,
35.17 	subdivision 1, for their employment by the labor organization
35.18 	only if they elect to have membership under section 353.017,
35.19 	subdivision 2;
35.20 	(2) persons who are elected or persons who are appointed to
35.21 	elected positions other than local governing body elected
35.22 	positions who elect to participate by filing a written election
35.23 	for membership;
35.24 	(3) members of the association who are appointed by the
35.25 	governor to be a state department head and who elect not to be
35.26 	covered by the general state employees retirement plan of the
35.27 	Minnesota State Retirement System under section 352.021;
35.28 	(4) city managers as defined in section 353.028,
35.29 	subdivision 1, who do not elect to be excluded from membership
35.30 	in the association under section 353.028, subdivision 2; and
35.31 	(5) employees of the Port Authority of the city of St. Paul
35.32 	who were at least age 45 on January 1, 2003, and who elect to
35.33 	participate by filing a written election for membership.
35.34 	(b) Membership in the association is optional by action of
35.35 	the governmental subdivision for the employees of the following
35.36 	governmental subdivisions under the conditions specified:
36.1 	(1) the Minnesota Association of Townships if the board of
36.2 	the association, at its option, certifies to the executive
36.3 	director that its employees are to be included for purposes of
36.4 	retirement coverage, in which case the status of the association
36.5 	as a participating employer is permanent; and 
36.6 	(2) a county historical society if the county in which the
36.7 	historical society is located, at its option, certifies to the
36.8 	executive director that the employees of the historical society
36.9 	are to be county employees for purposes of retirement coverage
36.10 	under this chapter.  The status as a county employee must be
36.11 	accorded to all similarly situated county historical society
36.12 	employees and, once established, must continue as long as a
36.13 	person is an employee of the county historical society; and 
36.14 	(3) Hennepin Healthcare System, Inc., a public corporation,
36.15 	with respect to employees other than paramedics, emergency
36.16 	medical technicians, and protection officers, if the corporate
36.17 	board establishes alternative retirement plans for certain
36.18 	classes of employees of the corporation and certifies the
36.19 	employees to be excluded from future retirement coverage.
36.20 	(c) For employees who are covered by paragraph (a), clause
36.21 	(1), (2), or (3), or covered by paragraph (b), clause (1) or
36.22 	(2),if the necessary membership election is not made, the
36.23 	employee is excluded from retirement coverage under this
36.24 	chapter.  For employees who are covered by paragraph (a), clause
36.25 	(4), if the necessary election is not made, the employee must
36.26 	become a member and have retirement coverage under this
36.27 	chapter. For employees specified in paragraph (b), clause (3),
36.28 	membership continues until the exclusion option is exercised for
36.29 	the designated class of employee.The option to become a
36.30 	member, once exercised under this subdivision, may not be
36.31 	withdrawn until termination of public service as defined under
36.32 	subdivision 11a.

36.33 	Sec. 3. Minnesota Statutes 2004, section 353.01,
36.34 	subdivision 6, is amended to read:
36.35 		Subd. 6.Governmental subdivision.  (a) "Governmental
36.36 	subdivision" means a county, city, town, school district within
37.1 	this state, or a department or unit of state government, or any
37.2 	public body whose revenues are derived from taxation, fees,
37.3 	assessments or from other sources.
37.4 	(b) Governmental subdivision also means the Public
37.5 	Employees Retirement Association, the League of Minnesota
37.6 	Cities, the Association of Metropolitan Municipalities, public
37.7 	hospitals owned or operated by, or an integral part of, a
37.8 	governmental subdivision or governmental subdivisions, the
37.9 	Association of Minnesota Counties, the Metropolitan Intercounty
37.10 	Association, the Minnesota Municipal Utilities Association, the
37.11 	Metropolitan Airports Commission, the Minneapolis Employees
37.12 	Retirement Fund for employment initially commenced after June
37.13 	30, 1979, the Range Association of Municipalities and Schools,
37.14 	soil and water conservation districts, economic development
37.15 	authorities created or operating under sections 469.090 to
37.16 	469.108, the Port Authority of the city of St. Paul, the Spring
37.17 	Lake Park Fire Department, incorporated, the Lake Johanna
37.18 	Volunteer Fire Department, incorporated, the Red Wing
37.19 	Environmental Learning Center, and the Dakota County
37.20 	Agricultural Society, and Hennepin Healthcare System, Inc.
37.21 	(c) Governmental subdivision does not mean any municipal
37.22 	housing and redevelopment authority organized under the
37.23 	provisions of sections 469.001 to 469.047; or any port authority
37.24 	organized under sections 469.048 to 469.089 other than the Port
37.25 	Authority of the city of St. Paul; or any hospital district
37.26 	organized or reorganized prior to July 1, 1975, under sections
37.27 	447.31 to 447.37 or the successor of the district, nor the
37.28 	Minneapolis Community Development Agency.

37.29 	Sec. 4. Minnesota Statutes 2004, section 353.64,
37.30 	subdivision 10, is amended to read:
37.31 		Subd. 10.Pension coverage for hennepin county healthcare
37.32 	system, inc.;paramedics and emergency medical technicians.  An
37.33 	employee of Hennepin County Healthcare System, Inc.who is:
37.34 	(1) certified as a paramedic or emergency medical
37.35 	technician by the state under section 144E.28, subdivision 4;
37.36 	(2) employed full time as a paramedic or emergency medical
38.1 	technician by Hennepin County on or after the effective date
38.2 	specified in Laws 1994, chapter 499, section 2; and
38.3 	(3) not eligible after the effective date under Laws 1994,
38.4 	chapter 499, section 2, for coverage under the agreement signed
38.5 	between the state and the secretary of the federal Department of
38.6 	Health and Human Services making the provisions of the federal
38.7 	Old Age, Survivors, and Disability Insurance Act applicable to
38.8 	paramedics and emergency medical technicians because the
38.9 	person's position is excluded after that date from application
38.10 	under United States Code, title 42, sections 418(d)(5)(A) and
38.11 	418(d)(8)(D), and section 355.07;
38.12 	is a member of the public employees police and fire fund under
38.13 	sections 353.63 to 353.68.
38.14 	Hennepin County Healthcare System, Inc.shall deduct the
38.15 	employee contribution from the salary of each full-time Hennepin
38.16 	County paramedic and emergency medical technician it employs as
38.17 	required by section 353.65, subdivision 2, shall make the
38.18 	employer contribution for each full-time Hennepin County 
38.19 	paramedic and emergency medical technician it employs as
38.20 	required by section 353.65, subdivision 3, and shall meet the
38.21 	employer recording and reporting requirements in section 353.65,
38.22 	subdivision 4.

38.23 	Sec. 5. Minnesota Statutes 2004, section 353E.02,
38.24 	subdivision 2a, is amended to read:
38.25 		Subd. 2a.Medical center protection officer.  (a) A
38.26 	medical center protection officer, for purposes of subdivision
38.27 	1, is a person whom the employer certifies:
38.28 	(1) is employed by the Hennepin County Medical Center 
38.29 	Healthcare System, Inc.as a protection officer;
38.30 	(2) is directly responsible for the direct security of the
38.31 	medical center;
38.32 	(3) is expected to respond to any incidents within the
38.33 	medical center as part of the person's regular employment duties
38.34 	and is trained to do so; and
38.35 	(4) is a "public employee" as defined in section 353.01,
38.36 	but is not a member of the public employees police and fire plan.
39.1 	(b) The certification required under paragraph (a) must be
39.2 	made in writing on a form prescribed by the executive director
39.3 	of the Public Employees Retirement Association.

39.4 	Sec. 6. Minnesota Statutes 2004, section 383B.46, is
39.5 	amended to read:
39.6 	383B.46 SUPPLEMENTAL RETIREMENT ACCOUNT.
39.7 		Subdivision 1.Eligibility for coverage. Any person who
39.8 	was employed by the county of Hennepin or its agencies, boards,
39.9 	commissions, authorities and committees prior to before April
39.10 	14, 1982,as an employee or an officer in the classified service
39.11 	as defined in sections 383B.26 to 383B.42, or as an employee in
39.12 	the unclassified service, and who has served for five years as a
39.13 	county employee or an officer in the classified service, or as a
39.14 	county employee in the unclassified service, which need not
39.15 	necessarily be continuous, and which shall must include time
39.16 	served as a county employee prior to before June 8, 1965, if the
39.17 	person is an employee in the classified service, shall be of the
39.18 	county or if the person is an employee of Hennepin Healthcare
39.19 	System, Inc., is entitled to elect to obtain coverage by the
39.20 	Hennepin County supplemental retirement program.  The election
39.21 	to obtain coverage may be exercised only once and shall must be
39.22 	exercised within 30 days of the date on which the person first
39.23 	becomes entitled to elect to obtain coverage.  No person hired,
39.24 	rehired, or reinstated by the county as an employee in the
39.25 	classified or unclassified service on or after April 14,
39.26 	1982, shall be is eligible for coverage by the Hennepin County
39.27 	supplemental retirement program.
39.28 		Subd. 2.Establishment of account; contributions. The
39.29 	county of Hennepin or Hennepin Healthcare System, Inc.,
39.30 	whichever applies,shall deduct from the salary of every person
39.31 	who is eligible for coverage and who elected to retain or obtain
39.32 	coverage by the Hennepin County supplemental retirement program
39.33 	a sum equal to one percent of the total salary of the
39.34 	person. Any classified or unclassified employee who is employed
39.35 	in subsidized on-the-job training, work experience or public
39.36 	service employment as an enrollee under the federal
40.1 	Comprehensive Employment and Training Act shall not be included
40.2 	in the supplemental retirement account from and after March 30,
40.3 	1978 unless the employee has as of the later of March 30, 1978
40.4 	or the date of employment sufficient service credit in the
40.5 	public employees retirement fund or the Minneapolis municipal
40.6 	employees retirement fund, whichever is applicable, to meet the
40.7 	minimum vesting requirements for a deferred retirement annuity,
40.8 	or the county agrees in writing to make the required employer
40.9 	contributions on account of the individual from revenue sources
40.10 	other than funds provided under the federal Comprehensive
40.11 	Employment and Training Act, or the employee agrees in writing
40.12 	to make the required employer contribution in addition to the
40.13 	employee contribution.The deduction shall be made in the same
40.14 	manner as other retirement deductions are made from the salary
40.15 	of the person.  An amount equal to the amounts deducted during
40.16 	each payroll period shall must be contributed by the county of
40.17 	Hennepin or Hennepin Healthcare System, Inc., whichever
40.18 	applies.  The total amount deducted and contributed shall must 
40.19 	be deposited to the credit of the supplemental retirement
40.20 	account in the treasury of the county of Hennepin.  The Hennepin
40.21 	County supplemental retirement account is hereby established as
40.22 	an account separate and distinct from other funds, accounts, or
40.23 	assets of the county of Hennepin.

40.24 	Sec. 7. EFFECTIVE DATE.
 40.25 	Sections 1 to 6 are effective on the date specified in
40.26 	article 1, section 29, paragraph (b).