1.1                          A bill for an act 
  1.2             relating to retirement; expanding certain supplemental 
  1.3             benefits to ambulance service personnel; increasing 
  1.4             amount and limits on supplemental benefits; amending 
  1.5             Minnesota Statutes 2000, section 424A.10. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 424A.10, is 
  1.8   amended to read: 
  1.9      424A.10 [STATE SUPPLEMENTAL BENEFIT; VOLUNTEER 
  1.10  FIREFIGHTERS; AMBULANCE SERVICE PERSONNEL.] 
  1.11     Subdivision 1.  [DEFINITION.] For purposes of this section, 
  1.12  "qualified recipient" means an individual who receives a lump 
  1.13  sum distribution of pension or retirement benefits from a 
  1.14  firefighters' relief association for service performed as a 
  1.15  volunteer firefighter or a qualified ambulance service person 
  1.16  under section 144E.46. 
  1.17     Subd. 2.  [PAYMENT OF SUPPLEMENTAL BENEFIT.] (a) Upon the 
  1.18  payment by a firefighters' relief association of a lump sum 
  1.19  distribution to a qualified recipient, the association must pay 
  1.20  a supplemental benefit to the qualified recipient.  
  1.21  Notwithstanding any law to the contrary, the relief association 
  1.22  may pay the supplemental benefit out of its special fund.  The 
  1.23  amount of this benefit equals ten 20 percent of the regular lump 
  1.24  sum distribution that is paid on the basis of service as a 
  1.25  volunteer firefighter.  In no case may the amount of the 
  2.1   supplemental benefit exceed $1,000 $2,000. 
  2.2      (b) Upon the payment by the emergency medical services 
  2.3   regulatory board of a longevity award to a qualified recipient, 
  2.4   the board must pay a supplemental benefit to the qualified 
  2.5   recipient.  The amount of this benefit equals 20 percent of the 
  2.6   amount of the lump sum longevity award that is paid to a 
  2.7   recipient under section 144E.46, but not to exceed $2,000. 
  2.8      Subd. 3.  [STATE REIMBURSEMENT.] (a) By February 15 of each 
  2.9   year, the relief association shall apply to the commissioner of 
  2.10  revenue for state reimbursement of the amount of supplemental 
  2.11  benefits paid under subdivision 2 during the preceding calendar 
  2.12  year.  By March 15 the commissioner shall reimburse the relief 
  2.13  association for the amount of the supplemental benefits paid to 
  2.14  qualified recipients.  The commissioner of revenue shall 
  2.15  prescribe the form of and supporting information that must be 
  2.16  supplied as part of the application for state reimbursement.  
  2.17  The reimbursement payment must be deposited in the special fund 
  2.18  of the relief association. 
  2.19     (b) To pay the supplemental benefit to qualified ambulance 
  2.20  service personnel, the commissioner shall transfer the necessary 
  2.21  amounts to the emergency medical services regulatory board upon 
  2.22  the request of the board. 
  2.23     (c) A sum sufficient to make the payments is appropriated 
  2.24  from the general fund to the commissioner of revenue. 
  2.25     Subd. 4.  [IN LIEU OF INCOME TAX EXCLUSION.] The 
  2.26  supplemental benefit provided by this section is in lieu of the 
  2.27  state income tax exclusion for lump sum distributions of 
  2.28  retirement benefits paid to volunteer firefighters.  If the law 
  2.29  is modified to exclude or exempt volunteer firefighters' lump 
  2.30  sum distributions or longevity awards of ambulance service 
  2.31  personnel from state income taxation, the supplemental benefits 
  2.32  under this section may no longer be paid beginning with the 
  2.33  first calendar year in which the exclusion or exemption is 
  2.34  effective.  This subdivision does not apply to exemption of all 
  2.35  or part of a lump sum distribution under section 290.032 or 
  2.36  290.0802.