HF 1326

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to retirement; economic interest statement 
  1.3             filings by public pension plan fiduciaries; providing 
  1.4             a penalty for a failure to file; amending Minnesota 
  1.5             Statutes 1996, section 356A.06, subdivision 4. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 356A.06, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [ECONOMIC INTEREST STATEMENT.] (a) Each member of 
  1.10  the governing board of a covered pension plan and the chief 
  1.11  administrative officer of the plan shall file with the plan a 
  1.12  statement of economic interest.  
  1.13     (b) For a covered pension plan other than a plan specified 
  1.14  in paragraph (c), the statement must contain the information 
  1.15  required by section 10A.09, subdivision 5, and any other 
  1.16  information that the fiduciary or the governing board of the 
  1.17  plan determines is necessary to disclose a reasonably 
  1.18  foreseeable potential or actual conflict of interest.  
  1.19     (c) For a covered pension plan governed by sections 69.771 
  1.20  to 69.776 or a covered pension plan governed by section 69.77 
  1.21  with assets under $8,000,000, the statement must contain the 
  1.22  following: 
  1.23     (1) the person's principal occupation and principal place 
  1.24  of business; 
  1.25     (2) whether or not the person has an ownership of or 
  2.1   interest of ten percent or greater in an investment security 
  2.2   brokerage business, a real estate sales business, an insurance 
  2.3   agency, a bank, a savings and loan, or another financial 
  2.4   institution; and 
  2.5      (3) any relationship or financial arrangement that can 
  2.6   reasonably be expected to give rise to a conflict of interest. 
  2.7      (d) The statement must be filed annually with the chief 
  2.8   administrative officer of the plan and be available for public 
  2.9   inspection during regular office hours at the office of the 
  2.10  pension plan.  
  2.11     (e) A disclosure form meeting the requirements of the 
  2.12  federal Investment Advisers Act of 1940, United States Code, 
  2.13  title 15, sections 80b-1 to 80b-21 as amended, and filed with 
  2.14  the state board of investment or the pension plan meets the 
  2.15  requirements of this subdivision. 
  2.16     (f) The chief administrative officer of each covered 
  2.17  pension plan, by January 15, annually, shall transmit a copy of 
  2.18  all statements of economic interest received by the plan under 
  2.19  this subdivision during the preceding 12 months to the ethical 
  2.20  practices board.  On February 15, annually, and each month 
  2.21  thereafter, the executive director of the ethical practices 
  2.22  board shall notify the pension plan, the commissioner of 
  2.23  finance, and the commissioner of revenue of any unfiled required 
  2.24  filings.  For each month after March 15 that the required 
  2.25  documents remain unfiled or the filing remains incomplete, one 
  2.26  percent of the amount of state aid otherwise directly or 
  2.27  indirectly payable to the public pension plan, not to exceed 
  2.28  $500 monthly, must be deducted by the applicable commissioner 
  2.29  from the next subsequent state pension aid payment.  If no state 
  2.30  pension aid is directly or indirectly payable to the pension 
  2.31  plan, the commissioner of finance shall bill the pension plan 
  2.32  $500 for each month after March 15 that the required documents 
  2.33  remain unfiled or incomplete and shall take all appropriate 
  2.34  steps to collect that obligation. 
  2.35     Sec. 2.  [EFFECTIVE DATE.] 
  2.36     Section 1 is effective July 1, 1997.