HF 1295

as introduced - 82nd Legislature (2001 - 2002) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; volunteer firefighter relief 
  1.3             associations; setting certain conditions on relief 
  1.4             association consultants; amending Minnesota Statutes 
  1.5             2000, section 424A.04, by adding a subdivision. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2000, section 424A.04, is 
  1.8   amended by adding a subdivision to read:  
  1.9      Subd. 3.  [CONDITIONS ON RELIEF ASSOCIATION 
  1.10  CONSULTANTS.] (a) As a condition of performing consultant 
  1.11  services for a volunteer firefighter relief association, any 
  1.12  consultant must: 
  1.13     (1) post a bond in an amount equal to the potential adverse 
  1.14  financial impact applicable to the activities of the consultant 
  1.15  in the event of error, malfeasance, misfeasance, or nonfeasance; 
  1.16  or 
  1.17     (2) provide evidence of errors and omissions or 
  1.18  professional liability insurance in force in an amount equal to 
  1.19  the potential adverse financial impact applicable to the 
  1.20  activities of the consultant in the event of error, malfeasance, 
  1.21  misfeasance, or nonfeasance, from an insurance company licensed 
  1.22  to do business in this state. 
  1.23     (b) A consultant is any person who is or who represents to 
  1.24  the volunteer fire relief association that the person is: 
  1.25     (1) an actuary; 
  2.1      (2) a licensed public accountant or a certified public 
  2.2   accountant; 
  2.3      (3) an attorney; 
  2.4      (4) an investment advisor or manager, or an investment 
  2.5   counselor; 
  2.6      (5) an investment advisor or manager selection consultant; 
  2.7      (6) a pension benefit design advisor or consultant; or 
  2.8      (7) any other financial consultant. 
  2.9      (c) The bond must be posted with or the evidence of 
  2.10  insurance must be filed with the clerk of the municipality in 
  2.11  which the volunteer firefighter relief association is located. 
  2.12  If the volunteer firefighter relief association is associated 
  2.13  with or subsidiary to an independent nonprofit firefighter 
  2.14  corporation, the bond must be posted with or the evidence of 
  2.15  insurance must be filed with the clerk of the largest 
  2.16  municipality, by population, contracting with the independent 
  2.17  firefighting corporation. 
  2.18     Sec. 2.  [EFFECTIVE DATE.] 
  2.19     Section 1 is effective July 1, 2001.