HF 2187

3rd Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to public and municipal corporations;
creating a county subsidiary corporation to provide
health care and related services, education, and
research; providing for governance of Hennepin County
Medical Center; amending Minnesota Statutes 2004,
sections 179A.03, subdivisions 7, 14, 15; 179A.06,
subdivision 2; 353.01, subdivisions 2b, 2d, 6; 353.64,
subdivision 10; 353E.02, subdivision 2a; 383B.117,
subdivision 2; 383B.217, subdivision 7; 383B.46;
proposing coding for new law in Minnesota Statutes,
chapters 179A; 383B; repealing Minnesota Statutes
2004, section 383B.217, subdivisions 1, 2, 3, 4, 5, 6,
8.

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

ARTICLE 1

HENNEPIN HEALTHCARE SYSTEM

Section 1.

new text begin [383B.901] CREATION OF A COUNTY SUBSIDIARY
CORPORATION.
new text end

new text begin There is created a corporation which shall be public in
nature, operating as a subsidiary of the county of Hennepin.
The public corporation shall be known as Hennepin Healthcare
System, Inc. The purpose of the corporation is to engage in the
organization and delivery of health care and related services to
the general public, including the indigent as defined by state
and federal law and as determined by the Hennepin County Board
of Commissioners, and to conduct related programs of education
and research. The corporation shall have one class of members,
the governing member, who shall be Hennepin County, as
represented by the Hennepin County Board of Commissioners. The
governing member has all the rights, duties, and privileges
specified under this act and the bylaws of the corporation.
new text end

Sec. 2.

new text begin [383B.902] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Terms. new text end

new text begin For the purpose of this act, the
terms defined in this section have the meanings given them
unless the context clearly indicates otherwise.
new text end

new text begin (a) "Corporation" means the county subsidiary corporation
created by section 383B.901.
new text end

new text begin (b) "County" means the county of Hennepin.
new text end

new text begin (c) "County board" means the Hennepin County Board of
Commissioners and its members.
new text end

new text begin (d) "HCMC" means the Hennepin County Medical Center, which
is the medical center established and operated by the county
under section 383B.217.
new text end

new text begin (e) "Effective date" means the effective date of the
sections of this act, as defined in section 29.
new text end

Sec. 3.

new text begin [383B.903] BOARD.
new text end

new text begin Subdivision 1. new text end

new text begin Governance. new text end

new text begin The corporation shall be
governed by a board of directors consisting of between 11 and 15
directors. Two of the directors on the board of the corporation
must be county commissioners currently serving as elected
officials on the county board who are chosen and may be removed
by a majority vote of the county board.
new text end

new text begin Subd. 2. new text end

new text begin Term, quorum, and manner of acting. new text end

new text begin The term of
office for directors, rules governing quorum, and manner of
acting for the board of directors must be specified in the
bylaws of the corporation which shall be approved by the county
board, except that:
new text end

new text begin (1) a vote of a majority of the board shall be required to
hire or discharge the corporation's administrator, to approve
the annual budget, and for any action which requires subsequent
approval by the county board as specified in section 383B.908;
and
new text end

new text begin (2) directors of the board of directors or any committee or
advisory assembly or council appointed by the board of directors
may participate in a meeting by means of telephone conference or
similar communications equipment which enables all persons
participating in the meeting to hear each other during the
conduct of that meeting. Participation shall be considered
presence in person at the meeting for purposes of notice and
quorum requirements as specified in the bylaws.
new text end

new text begin Subd. 3. new text end

new text begin Appointment of board members. new text end

new text begin The county board
shall appoint the initial board of the corporation. Thereafter,
the county board shall appoint directors of the corporation by
slate to open positions due to the completion of a director's
term as specified in the bylaws of the corporation. The slate
shall be nominated by a committee of the board of the
corporation. The board of the corporation may by majority vote
appoint a board member to fill a vacancy on the board occurring
prior to the completion of the term, provided the newly
appointed board member is submitted to the county board for
approval when the next slate of directors is submitted to the
county board for approval.
new text end

new text begin Subd. 4. new text end

new text begin Qualifications. new text end

new text begin Members of the board shall
possess a high degree of experience and knowledge in relevant
fields and possess a high degree of interest in the corporation
and support for its mission. Members shall be appointed based
in part on the objective of ensuring that the corporation
includes diverse and beneficial perspectives and experience
including, but not limited to, those of medical or other health
professionals, urban, cultural and ethnic perspectives of the
population served by the corporation, business management, law,
finance, health sector employees, public health, serving the
uninsured, health professional training, and the patient or
consumer perspective. The corporation shall provide a public
announcement of vacancies on the board of the corporation in the
manner normally used by Hennepin County to provide public notice
of open appointments.
new text end

new text begin Subd. 5. new text end

new text begin Removal. new text end

new text begin A director who is not a county
commissioner may be removed without cause by a two-thirds
majority vote of the board of the corporation. The county board
may remove any board member for violation of the director's
ethical and legal duties as a board member as specified in
section 383B.905 or for the repeated failure to act in the best
interests of the corporation. In addition, the county board may
remove the corporate board in its entirety as specified in
section 383B.908, subdivision 7.
new text end

Sec. 4.

new text begin [383B.904] OFFICERS.
new text end

new text begin Subdivision 1. new text end

new text begin Election. new text end

new text begin (a) The officers of the board
of the corporation shall consist of the chair, vice chair,
secretary, treasurer, and other officers as the board shall from
time to time deem necessary. The board shall elect officers by
a majority vote of the board at the annual meeting, or in the
case of the initial board, at the first meeting following
appointment by the county board.
new text end

new text begin (b) Any of the offices or functions, with the exception of
the chair and vice chair, may be held or exercised by the same
person.
new text end

new text begin Subd. 2. new text end

new text begin Removal. new text end

new text begin An officer may be removed without
cause by a two-thirds majority vote of the board of the
corporation.
new text end

Sec. 5.

new text begin [383B.905] AUTHORITY AND DUTIES OF OFFICERS AND
DIRECTORS.
new text end

new text begin Subdivision 1. new text end

new text begin In bylaws or by board. new text end

new text begin Officers and
directors have the authority and duties in the management of the
business of the corporation that the bylaws prescribe or, in the
absence of such prescription, as the board determines.
new text end

new text begin Subd. 2. new text end

new text begin Ordinary prudent person standard. new text end

new text begin Officers and
directors shall discharge their duties in good faith, in the
manner the officer or director reasonably believes to be in the
best interests of the corporation, and with the care an ordinary
prudent person in a like position would exercise under similar
circumstances.
new text end

new text begin Subd. 3. new text end

new text begin Not trustees. new text end

new text begin Officers and directors are not
considered to be trustees with respect to the corporation or
with respect to property held or administered by the
corporation, including, without limit, property that may be
subject to restrictions imposed by the donor or transferor of
the property.
new text end

Sec. 6.

new text begin [383B.906] BYLAWS.
new text end

new text begin Prior to the appointment of the initial board of the
corporation, the county board shall approve the bylaws of the
corporation. Thereafter, the board of the corporation may
adopt, amend, or repeal bylaws relating to the management of the
business or regulation of the affairs of the corporation, except
that the county board shall approve any bylaws change relating
to:
new text end

new text begin (1) board composition, board and officer selection, terms,
removal, or qualifications;
new text end

new text begin (2) the county board's reserved powers as specified in the
bylaws;
new text end

new text begin (3) the ability of the corporation to engage in joint
ventures;
new text end

new text begin (4) the ability of the corporation to incur debt through
the county;
new text end

new text begin (5) the ability of the corporation to create subsidiaries;
new text end

new text begin (6) the ability of the corporation to merge or dissolve;
new text end

new text begin (7) the ability of the corporation to use subsidiaries to
undertake functions or activities performed by employees of the
corporation; or
new text end

new text begin (8) the mission of the corporation.
new text end

Sec. 7.

new text begin [383B.907] CORPORATE POWERS.
new text end

new text begin Subdivision 1. new text end

new text begin Authority and powers of the
board. new text end

new text begin Subject to the reserved powers and limitations specified
in sections 383B.903 and 383B.908, or as specified in the bylaws
of the corporation, the corporation, through its board, shall,
relative to the delivery of health care services, have, in
addition to any authority vested by law, the authority and legal
capacity of a nonprofit corporation under chapter 317A including
the authority to:
new text end

new text begin (1) have members of its board or its officers or
administrators serve as directors, officers, or employees of the
corporation's ventures, associations, or corporations;
new text end

new text begin (2) hire and discharge an administrator;
new text end

new text begin (3) approve personnel policies and practices, any
applicable labor agreements, and levels of compensation and
benefits recommended by the administrator;
new text end

new text begin (4) use employees, agents, consultants, and facilities of
the county, as necessary in the discretion of the board, paying
the county its agreed proportion of the compensation or costs
pursuant to an agreement with the county;
new text end

new text begin (5) spend funds, including public funds in any form, or
devote the resources of the corporation to recruit and retain
physicians whose services are necessary or desirable for meeting
the health care needs of the population and for the successful
performance of the public purpose of the corporation. Allowable
uses of funds and resources include the retirement of medical
education debt, payment of onetime amounts in consideration of
services rendered or to be rendered, payment of recruitment
expenses, payment of moving expenses, and the provision of other
financial assistance necessary for the recruitment and retention
of physicians, provided that the expenditures in whatever form
are reasonable under the facts and circumstances of the
situation;
new text end

new text begin (6) offer, directly or indirectly, products and services of
the corporation and/or affiliated entities to the general
public, and retain any profits earned through the provision of
these products and services for the purpose of advancing the
mission of the corporation;
new text end

new text begin (7) own shares of stock in business corporations;
new text end

new text begin (8) borrow money and issue bonds in support and promotion
of the corporation's purpose and mission and providing any
rights and obligations related thereto;
new text end

new text begin (9) accept gifts, grants, loans, or contributions of funds
or property or financial or other aid in any form from, and
enter into contracts or other transactions with, the federal
government, the state of Minnesota, third-party payors, or any
other source, and to use any gifts, grants, loans, or
contributions for any of its corporate purposes;
new text end

new text begin (10) enter shared service and other cooperative ventures;
new text end

new text begin (11) join or sponsor membership in organizations intended
to benefit the corporation;
new text end

new text begin (12) enter partnerships, joint ventures, or other business
arrangements to advance the mission of the corporation;
new text end

new text begin (13) sue or be sued; and
new text end

new text begin (14) incorporate other corporations, both for profit and
nonprofit.
new text end

new text begin Subd. 2. new text end

new text begin Other powers. new text end

new text begin Subject to the reserved powers
and limitations specified in sections 383B.903 and 383B.908, or
as specified in the bylaws of the corporation, the corporation
shall have all the powers necessary and convenient for the
operation, administration, management, and control of the
corporation's affairs. The enumeration of specific powers in
this section is not intended to restrict the power of the
corporation to take any action which, in the exercise of its
discretion, is necessary or convenient to further the purposes
for which the corporation exists and that is not otherwise
prohibited by law, whether or not the power to take the action
is necessarily implied from the powers expressly granted.
new text end

Sec. 8.

new text begin [383B.908] LIMITATIONS UPON CORPORATE POWERS;
RESERVED POWERS.
new text end

new text begin Subdivision 1. new text end

new text begin Powers reserved to the
county. new text end

new text begin Notwithstanding the authority granted to the board in
section 383B.907, the county board shall retain specific
controls over the corporation's mission, ability to incur
indebtedness through the county, indigent care, and governance.
These county board controls must be specified in the bylaws or
other transactional documents, which shall be approved by the
county board.
new text end

new text begin Subd. 2. new text end

new text begin Restriction on disposition of the assets. new text end

new text begin The
corporation shall not have the power to dissolve, merge,
consolidate, transfer, liquidate, or otherwise dispose of or
distribute all, or substantially all, of the corporation's
assets without a county board resolution approved by a majority
of the county board.
new text end

new text begin Subd. 3. new text end

new text begin Distribution of assets upon dissolution. new text end

new text begin In the
event of the dissolution of the corporation, the net assets of
the corporation shall be distributed to the county for public
purposes.
new text end

new text begin Subd. 4. new text end

new text begin Compensation and payment limitations. new text end

new text begin No part
of the net earnings and assets of the corporation shall inure to
the benefit of any private individual, nor shall any part of the
income or assets of the corporation be distributed to or divided
among any private individuals as dividends or otherwise.
new text end

new text begin Subd. 5. new text end

new text begin Financial oversight. new text end

new text begin The county board shall
approve the annual budget of the corporation and receive an
annual audited financial statement. The annual budget shall
address how efficiencies and revenues contribute to stabilize or
reduce county liabilities for indigent care. The county board
shall also retain the right to conduct an independent audit of
the finances of the corporation.
new text end

new text begin Subd. 6. new text end

new text begin County services. new text end

new text begin The county board shall retain
the authority to require the corporation to provide other health
care or health care related services as the county board
determines to be in the best interest of the county. The
corporation shall provide these services as long as the county
board provides funds to pay for the services. Payment to the
corporation for the services shall be as agreed between the
corporation and the county board.
new text end

new text begin Subd. 7. new text end

new text begin Dissolution or reorganization of the
corporation. new text end

new text begin The county board shall retain the right to
dissolve the corporation, reorganize the corporation, or remove
the entire corporate board in order to resume management of
Hennepin County Medical Center upon a two-thirds vote of the
entire county board.
new text end

Sec. 9.

new text begin [383B.909] CORPORATE SEAL.
new text end

new text begin The corporation shall not have a corporate seal.
new text end

Sec. 10.

new text begin [383B.910] BOARD MEETINGS.
new text end

new text begin In accordance with the bylaws of the corporation, the board
shall provide for annual, regular, and special meetings to be
held at a designated interval throughout the year. Notice of
these meetings shall be provided in accordance with the bylaws
of the corporation.
new text end

Sec. 11.

new text begin [383B.911] PUBLIC DEPOSITORY.
new text end

new text begin The corporation shall have jurisdiction over its accounts
and payrolls and shall establish and maintain a public
depository. The corporation may use the county as a public
depository. If the depository is not the county, the depository
must be subject to chapter 118A, except that the corporation
shall determine the appropriate security. The corporation shall
establish and maintain all necessary accounts. The corporation
may establish reserve accounts, depreciation accounts, and
working capital funds in order to operate on an accrual basis.
new text end

Sec. 12.

new text begin [383B.912] TRANSFER OF RIGHTS.
new text end

new text begin Subdivision 1. new text end

new text begin Corporation as continuation of hcmc. new text end

new text begin The
corporation created by section 383B.901 shall be considered a
continuation of HCMC for purposes of all the rights,
liabilities, and contractual obligations of the county
pertaining to the operations of HCMC except as otherwise
provided herein. The corporation succeeds to all rights and
contractual obligations of the county pertaining to the
operations of HCMC with the same force and effect as if those
rights and obligations had been continued by the county itself.
new text end

new text begin Subd. 2. new text end

new text begin Pending matters. new text end

new text begin The corporation may conduct
and complete any legal action, administrative proceeding, or any
other matter commenced by or against HCMC or the county, on
behalf of HCMC, which was incurred before or pending as of the
effective date, in the same manner, under the same conditions,
and with the same effect as though the action, proceeding, or
other matter were conducted or completed by HCMC or the county
acting on behalf of HCMC.
new text end

new text begin Subd. 3. new text end

new text begin Transfer of documents required. new text end

new text begin On the
effective date, HCMC, or the county on behalf of HCMC, shall
have the authority to transfer and deliver to the corporation,
as specified in the lease and other transactional documents
referenced in section 383B.913, all contracts, books, bonds,
plans, paper, records, including all personnel and medical
records, and other property of every description within the
jurisdiction or control of HCMC, or the county acting on behalf
of HCMC, except as otherwise provided herein.
new text end

new text begin Subd. 4. new text end

new text begin Transfer of funds. new text end

new text begin On the effective date, HCMC,
or the county on behalf of HCMC, shall have the authority to
transfer to the corporation all unspent funds appropriated to
HCMC, as specified in the lease and other transactional
documents referenced in section 383B.913.
new text end

Sec. 13.

new text begin [383B.913] LEASE OR TRANSFER OF ASSETS.
new text end

new text begin Subdivision 1. new text end

new text begin Corporate status. new text end

new text begin The corporation shall
be considered a "public corporation" for purposes of section
465.035.
new text end

new text begin Subd. 2. new text end

new text begin Lease of real property. new text end

new text begin Notwithstanding any
other laws to the contrary, as of the effective date, the county
shall have the authority to enter into a lease, mutually
agreeable to both parties, with the corporation for
substantially all of the real property acquired by or turned
over to the county for the establishment, operation, or
maintenance of HCMC prior to and as of the effective date and
necessary for the operation of the corporation. Subject to
restrictions specified in the written lease and other
transaction documents by and between the county and the
corporation, the county shall lease the real property
exclusively to the corporation. For the purposes of this
subdivision, real property shall mean the real property used by
the county for the operations of HCMC that the county shall
lease to Hennepin Healthcare System, Inc., as specified in the
lease documents and this act as of the effective date.
new text end

new text begin Subd. 3. new text end

new text begin Requirements of lease. new text end

new text begin In order for the county
to enter into the lease described in subdivision 2, the lease
must also address the following:
new text end

new text begin (1) continued primary use of the property for health and
hospital services;
new text end

new text begin (2) indigent care;
new text end

new text begin (3) capital improvements;
new text end

new text begin (4) joint ventures and partnerships;
new text end

new text begin (5) assignments and subleases; and
new text end

new text begin (6) changes to hospital capacity.
new text end

new text begin Subd. 4. new text end

new text begin Transfer of assets. new text end

new text begin The county shall transfer
to the corporation assets as designated by the county in
transactional documents accompanying the lease for use in the
operations of HCMC. For purposes of this subdivision, assets
means the equipment and other personal property used by the
county for the operations of HCMC that the county shall transfer
to Hennepin Healthcare System, Inc., as specified in the
transaction documents and this act as of the effective date.
new text end

new text begin Subd. 5. new text end

new text begin No advertising or bids. new text end

new text begin The county may transfer
and lease the assets and real property to the corporation as
specified in subdivisions 2 and 3 without first advertising for
or soliciting any bids.
new text end

Sec. 14.

new text begin [383B.914] STATUS OF PRESENT EMPLOYEES;
BARGAINING UNITS; RETIREMENT COVERAGE.
new text end

new text begin Subdivision 1. new text end

new text begin Health system human resources
system. new text end

new text begin Persons employed at the corporation created shall be
subject to a human resources system that is designed to offer
appropriate benefits to workers employed in a health care
setting. This human resources system shall replace the general
county human resources system prescribed in sections 383B.26 to
383B.42, and any rules related to it. The corporation shall
have the authority to establish all personnel policies and
practices, negotiate applicable labor agreements, and set all
levels of compensation and benefits which are considered
appropriate by the board except as limited in this section. The
human resources system is subject to the following human
resources requirements:
new text end

new text begin (1) determine compensation according to the pay equity
requirements under sections 471.991 to 471.999;
new text end

new text begin (2) provide preferences for veterans according to the
Veterans Preference Act under sections 197.455, 197.46, and
375.63; and
new text end

new text begin (3) provide an appeals process for an individual who is
discharged, demoted, or suspended.
new text end

new text begin Subd. 2. new text end

new text begin Employee transfer. new text end

new text begin All persons employed by the
county whose employment is accounted for in the county
enterprise fund for HCMC, on the effective date, shall be
transferred to the corporation as specified in the lease and
other transactional documents referenced in section 383B.913.
The transfer of employees to the corporation under this
subdivision does not constitute severance or termination of
employment or a layoff entitling transferred employees to
severance pay, termination benefits, a retirement plan refund,
or any other right that may be applicable in the case of
severance, termination, or layoff.
new text end

new text begin Subd. 3. new text end

new text begin Current positions. new text end

new text begin Each person employed by the
county who is transferred to the corporation on the effective
date shall retain employment and accrued benefits, including
participation in deferred compensation programs, and will be
recorded by most recent date of employment with Hennepin County
upon transfer to the corporation created in section 383B.901.
new text end

new text begin Subd. 4. new text end

new text begin Bargaining units. new text end

new text begin The corporation shall
recognize existing bargaining units organized by employees of
HCMC and the exclusive representatives of those bargaining units
as of the effective date. The corporation shall adopt all
current labor agreements as of the effective date for the term
of those agreements, except for countywide references,
countywide provisions, and countywide human resources rules.
new text end

new text begin Subd. 5. new text end

new text begin General employee retirement benefits. new text end

new text begin (a)
Except as provided in paragraph (b), employees of the
corporation, other than paramedics, emergency medical
technicians and the supervisors and managers of such employees,
and protection officers and supervisors of such employees, are
"public employees" under chapter 353 and are members of the
general employees retirement plan of the Public Employees
Retirement Association, including employees transferred to the
corporation under subdivision 2 and employees hired by the
corporation after the effective date.
new text end

new text begin (b) Notwithstanding sections 356.24 and 356.25, the
corporation has the authority to create alternative retirement
plans that are not defined benefit pension plans for the
following classes of employees: supervisors, managers,
physicians, and independent health practitioners who bill
independently for their time, provided the value of the
aggregate benefits are substantially comparable to the general
employee retirement plan of the Public Employees Retirement
Association. These classes of employees are eligible to
participate in the general retirement plan of the Public
Employees Retirement Association until and unless the
corporation creates alternative retirement plans. Only those
employees who are within the designated class and who are hired
after the date of creation of the alternative plan may be
enrolled in the alternative retirement plan in lieu of
participation in the general employees retirement plan of the
Public Employees Retirement Association. Any alternative
retirement benefit plan established by the corporation must
comply with the financial reporting requirements for public
pension plans under section 356.20 and the investment
performance reporting requirements for public pension plans
under section 356.219.
new text end

new text begin Subd. 6. new text end

new text begin Employees eligible to continue participation in
public employee retirement association correctional, police and
fire benefit plans. new text end

new text begin Notwithstanding subdivision 5, both
existing and future employees of the corporation in the
positions of paramedic and emergency medical technician,
including supervisors and managers of such employees, as
provided in section 353.64, subdivision 10, are members of the
public employees police and fire retirement plan under sections
353.63 to 353.68 and in the position of protection officer,
including supervisors of such employees, as provided in section
353E.02, subdivision 2a, are members of the local government
correctional retirement plan under chapter 353E.
new text end

new text begin Subd. 7. new text end

new text begin Participation in state deferred compensation
plan. new text end

new text begin (a) Existing employees of the corporation, at the
election of the corporation, if otherwise qualified, are
eligible to participate in the Hennepin County supplemental
retirement plan under sections 383B.46 and 383B.52.
new text end

new text begin (b) Existing and future employees of the corporation, at
the election of the corporation, are eligible to participate in
the Minnesota state deferred compensation plan under section
352.96, the postretirement health care savings plan under
section 352.98, and all other deferred compensation arrangements
for which all persons employed by the county whose employment is
accounted for in the county enterprise fund for HCMC were
eligible.
new text end

new text begin Subd. 8. new text end

new text begin Subsidiaries. new text end

new text begin Any subsidiary created by the
corporation shall be subject to the same human resources
requirements as those that apply to the corporation under
subdivision 1.
new text end

Sec. 15.

new text begin [383B.915] BONDING AUTHORITY OF CORPORATION.
new text end

new text begin Subdivision 1. new text end

new text begin Municipality. new text end

new text begin The corporation shall be
considered a "municipality" pursuant to section 475.51,
subdivision 2, for purposes of bond issuance and shall have all
the authority conferred on municipalities by chapter 475, unless
that authority is modified in this section.
new text end

new text begin Subd. 2. new text end

new text begin Sale of bonds. new text end

new text begin Subject to the reserved powers
and limitations specified in section 383B.908 and
notwithstanding any of the corporation's enumerated powers, the
corporation may issue and sell revenue bonds or other revenue
obligations to finance capital improvements or for the
acquisition and betterment of facilities or other property to be
utilized for the delivery of health care and related research,
the establishment of reserves for bond payment, or for other
proper corporate purposes.
new text end

new text begin Subd. 3. new text end

new text begin Security for bonds. new text end

new text begin Subject to the reserved
powers and limitations specified in section 383B.908 and
notwithstanding any of the corporation's enumerated powers, the
bonds may be secured by a mortgage of or security interest in
any property owned by the corporation or any interest of the
corporation in any property and by a pledge of revenues to be
derived from operation of the corporation's facilities as a
first and prior lien thereon or as a lien subordinate to the
costs of operation and maintenance of the facilities. The bonds
must be in an amount, and shall mature, as provided by
resolution of the board and may be issued in one or more series
and shall bear a date or dates, bear interest at a rate or
rates, be in a denomination or denominations, be in the form
either coupon or registered, carry the conversion or
registration privileges, have rank or priority, be executed in
the manner, be payable in medium of payment at the place or
places, and be subject to the terms of redemption, with or
without premium, as the resolution may provide. The bonds may
be sold at public or private sale at a price or prices
determined by the resolution. Notwithstanding any law to the
contrary, the bonds must be fully negotiable. The corporation
may enter into the covenants the board, by resolution, shall
deem necessary and proper to secure payment of the bonds. The
revenue bonds must state on their face that they are not payable
from, nor may be a charge upon, any funds other than the
revenues and property pledged or mortgaged for their payment,
nor shall the corporation be subject to any liability on them or
have the power to obligate itself to pay or pay the revenue
bonds from funds other than the revenues and property pledged
and mortgaged. No holder or holders of the bonds shall ever
have the right to compel any exercise of any taxing power of the
county or any other public body to pay the principal of or
interest on any of them, nor to enforce payment of them against
any property other than that expressly pledged or mortgaged for
their payment.
new text end

Sec. 16.

new text begin [383B.916] FINANCING THROUGH COUNTY.
new text end

new text begin In addition to the authority granted in section 16, the
county may finance any improvements, equipment, or other
property to be operated by the corporation and may issue bonds
for such purposes pursuant to and subject to the procedures and
limitations set forth in section 373.40, 383B.117, 447.45, or
other law, as appropriate, whether or not the capital
improvement or equipment to be financed is to be owned by the
county or the corporation.
new text end

Sec. 17.

new text begin [383B.917] OPEN MEETING LAW; GOVERNMENT DATA
PRACTICES ACT.
new text end

new text begin Subdivision 1. new text end

new text begin Data practices act. new text end

new text begin (a) The corporation
is subject to chapter 13, the Minnesota Government Data
Practices Act.
new text end

new text begin (b) "Competitive data," as defined in this subdivision, are
nonpublic data pursuant to section 13.02, subdivision 9, or
private data on individuals pursuant to section 13.02,
subdivision 12. Competitive data are any type of data that the
corporation, in its discretion, determines that if disclosed
could cause competitive disadvantage to the corporation,
including causing adverse effects on the current or future
competitive position of the corporation or the entities,
facilities, and operations for which it is responsible. Data
discussed at an open meeting of the corporation retains the
data's original classification, including classification as
competitive data, as provided in section 13D.05, subdivision 1,
paragraph (c). Any data disseminated by the corporation to the
county shall retain the same classification in the hands of the
county, including the classification as competitive data, as
provided in section 13.03, subdivision 4.
new text end

new text begin (c) A subsidiary, joint venture, association, partnership,
or other entity that is formed by the corporation is not subject
to chapter 13, except that if the corporation enters into a
contract with such an entity to perform any functions of the
corporation, the corporation shall include in the contract terms
that make it clear that data created, collected, received,
stored, used, maintained, or disseminated by the contracting
entity in performing those functions is subject to the same
requirements under chapter 13 as the corporation under this
subdivision. However, this section does not create a duty on
the part of the contracting entity to provide access to public
data to the public if the public data are available from the
corporation, except as required by the terms of the contract.
Any entity contracting to perform functions of the corporation
may classify data as competitive data as defined in paragraph
(b).
new text end

new text begin Subd. 2. new text end

new text begin Open meeting law. new text end

new text begin (a) The board of directors of
the corporation is subject to chapter 13D, the Minnesota Open
Meeting Law.
new text end

new text begin (b) The board may close all or part of a board meeting when
discussing competitive data or considering strategic, business,
planning, or operational issues the disclosure of which, in its
discretion, it determines could cause competitive disadvantage
to the corporation, including causing adverse effects on the
current or future competitive position of the corporation or the
entities, facilities, and operations for which it is
responsible. Meetings of committees of the board of directors
may, at the discretion of the board, be closed to the public.
new text end

new text begin (c) In addition, the following meetings of the corporation
shall be held and shall be open meetings: (1) an annual public
meeting to report on the affairs of the corporation and the
goals for the future, including a report on the health services
plan specified in section 383B.918; (2) meetings of the
corporation held during the development and implementation phase
of the health services plan for the purpose of informing the
public and receiving public comment; and (3) that portion of a
meeting at which the board of the corporation approves the
annual budget prior to submission to the county board for
approval. Meetings held under clause (1) or (2) may be chaired
by a member of the board of directors or a member of the
administration as designated by the board of directors. Except
as provided in paragraphs (a), (b), and (c), other meetings of
the corporation are not subject to chapter 13D.
new text end

new text begin (d) Chapter 13D does not apply to a subsidiary, joint
venture, association, or partnership of the corporation unless
such entity has been organized to assume management of the
corporation.
new text end

Sec. 18.

new text begin [383B.918] HEALTH SERVICES PLAN.
new text end

new text begin The corporation shall prepare, and submit to the county
board for review and approval, a health services plan that draws
from a population health needs assessment and delineates the
corporation's role in the community, including education,
research, and services to improve the health status of the
community including indigent populations. The health services
plan shall contain a description of how the corporation shall
continue to coordinate with the county to provide health-related
services to the residents of Hennepin County, including the
indigent as defined by state and federal law and as determined
by the Hennepin County Board of Commissioners.
new text end

Sec. 19.

new text begin [383B.919] TORT LIABILITY.
new text end

new text begin The corporation shall be a "municipality" for purposes of
tort liability pursuant to chapter 466; except that chapter 466
does not apply to an action against any subsidiary, joint
venture, association, or partnership of the corporation alleging
malpractice, error, mistake, or failure to cure because of the
actions of physicians or other health care providers employed by
the entity, unless that entity has been organized to assume
management of the entire corporation.
new text end

Sec. 20.

new text begin [383B.920] REVENUE RECAPTURE ACT.
new text end

new text begin The corporation shall be considered a "claimant agency" for
purposes of the Revenue Recapture Act, chapter 270A.
new text end

Sec. 21.

new text begin [383B.921] PURCHASING.
new text end

new text begin Subdivision 1. new text end

new text begin Public procurement. new text end

new text begin Notwithstanding any
law to the contrary, contracting and purchasing of goods,
materials, supplies, equipment, and services that are included
as part of a contract for the purchase of goods, materials,
supplies, equipment, or services are specifically exempted from
sections 383B.141 to 383B.151 and 471.345 to 471.371, or other
applicable laws related to public procurement.
new text end

new text begin Subd. 2. new text end

new text begin Purchasing and service contracts. new text end

new text begin The
corporation may purchase directly or utilize the services of a
nonprofit cooperative hospital service organization, the county,
the state of Minnesota, the University of Minnesota, or any
other political subdivision or agency of the state of Minnesota
in the purchase of all goods, materials, and services that the
corporation may require.
new text end

Sec. 22.

new text begin [383B.922] LEGAL COUNSEL.
new text end

new text begin With respect to the provisions of section 388.051, the
corporation shall be deemed a part of Hennepin County for
purposes of the Hennepin County attorney serving as legal
counsel to the corporation; provided, however, that the
corporation and the Hennepin County attorney may enter into an
arrangement with respect to the hiring of outside counsel on
behalf of the corporation. The corporation shall reimburse the
county for legal services provided by the Hennepin County
attorney, including any and all costs, and the reimbursement
shall be credited to the budget of the Hennepin County attorney.
new text end

Sec. 23.

new text begin [383B.923] SELF-INSURANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Self-insurance. new text end

new text begin The corporation may
participate in any self-insurance program established by the
county in accordance with section 383B.155.
new text end

new text begin Subd. 2. new text end

new text begin Additional benefits to employees. new text end

new text begin The
corporation may provide for the payment of additional benefits
to employees from their accumulated vacation, sick leave, or
overtime credits if the employees of the corporation and any of
its subsidiaries are entitled to the benefits of the Workers'
Compensation Law and have at the time of compensable injury
accumulated credits under a vacation, sick leave, or overtime
plan or system maintained by the corporation. The additional
payments to an employee may not exceed the amount of the total
sick leave, vacation, or overtime credits accumulated by the
employee and shall not result in the payment of a total weekly
rate of compensation that exceeds the weekly wage of the
employee. The additional payments to any employee shall be
charged against the sick leave, vacation, and overtime credits
accumulated by the employee. Employees of the corporation and
any of its subsidiaries entitled to the benefits of the Workers'
Compensation Law may receive additional benefits pursuant to a
collective bargaining agreement or other plan, entered into or
in effect on or after January 1, 2003, providing payments by or
on behalf of the employer, and these additional benefits may be
unrelated to any accumulated sick leave, holiday, or overtime
credits and need not be charged against any accumulation;
provided that the additional payments must not result in the
payment of a total weekly rate of compensation that exceeds the
weekly wage of the employee. The corporation and its
subsidiaries may adopt rules and regulations consistent with
chapter 179, to carry out the section relating to payment of
additional benefits to employees from accumulated sick leave,
vacation, overtime credits, or other sources.
new text end

Sec. 24.

new text begin [383B.924] HOSPITAL AUTHORITIES.
new text end

new text begin The corporation shall not be considered a hospital or
hospital district subject to section 144.581.
new text end

Sec. 25.

new text begin [383B.925] TAX-EXEMPT STATUS.
new text end

new text begin The corporation is an organization exempt from taxation
pursuant to chapters 290 and 297A.
new text end

Sec. 26.

new text begin [383B.926] PREPAID HEALTH PLAN.
new text end

new text begin The corporation is a county-affiliated public teaching
hospital for purposes of section 256D.03, subdivision 4.
new text end

Sec. 27.

new text begin [383B.927] INTERGOVERNMENTAL TRANSFERS.
new text end

new text begin For purposes of medical assistance, Medicaid, Medicare, and
other public programs, the corporation shall continue to be a
"unit of state or local government" and a "government owned or
operated hospital," and shall be eligible to receive
"intergovernmental transfers" and "certified public expenditures"
as may be authorized from time to time by the state of Minnesota
or Hennepin County.
new text end

Sec. 28.

new text begin [383B.928] INDIGENT CARE.
new text end

new text begin Subdivision 1. new text end

new text begin Services. new text end

new text begin The corporation shall provide
health care and related services for the indigent of the county
as required by the terms of the lease as specified in section
383B.913, subdivisions 2 and 3, consistent with any agreement
for payment for those services made with the county.
new text end

new text begin Subd. 2. new text end

new text begin Funds. new text end

new text begin Notwithstanding any law to the contrary,
the county may provide funds for the purchase of medical care
for the indigent of the county from a provider selected by the
county with or without public bid.
new text end

Sec. 29. new text begin EFFECTIVE DATES.
new text end

new text begin (a) Sections 3 to 8, regarding governance and corporate
powers; section 14, subdivision 1, regarding the establishment
of personnel policies; and section 17, regarding the Minnesota
Open Meeting Law and the Government Data Practices Act are
effective when the initial board of the corporation is appointed
by the county board.
new text end

new text begin (b) The remaining sections of the bill are effective the
day after the county board files a certificate of local approval
in compliance with Minnesota Statutes, section 645.021,
subdivision 3, after which the corporation shall commence
operation and management of Hennepin County Medical Center.
new text end

ARTICLE 2

LABOR RELATIONS; RELATED ISSUES

Section 1.

Minnesota Statutes 2004, section 179A.03,
subdivision 7, is amended to read:

Subd. 7.

Essential employee.

"Essential employee" means
firefighters, peace officers subject to licensure under sections
626.84 to 626.863, 911 system and police and fire department
public safety dispatchers, guards at correctional facilities,
confidential employees, supervisory employees, assistant county
attorneys, assistant city attorneys, principals, and assistant
principals. However, for state employees, "essential employee"
means all employees in law enforcement, health care
professionals, correctional guards, professional engineering,
and supervisory collective bargaining units, irrespective of
severance, and no other employees. For University of Minnesota
employees, "essential employee" means all employees in law
enforcement, nursing professional and supervisory units,
irrespective of severance, and no other employees.
"Firefighters" means salaried employees of a fire department
whose duties include, directly or indirectly, controlling,
extinguishing, preventing, detecting, or investigating fires.
Employees for whom the state court administrator is the
negotiating employer are not essential employees. new text begin For Hennepin
Healthcare System, Inc. employees, "essential employees" means
all employees.
new text end

Sec. 2.

Minnesota Statutes 2004, section 179A.03,
subdivision 14, is amended to read:

Subd. 14.

Public employee or employee.

"Public employee"
or "employee" means any person appointed or employed by a public
employer except:

(a) elected public officials;

(b) election officers;

(c) commissioned or enlisted personnel of the Minnesota
National Guard;

(d) emergency employees who are employed for emergency work
caused by natural disaster;

(e) part-time employees whose service does not exceed the
lesser of 14 hours per week or 35 percent of the normal work
week in the employee's appropriate unit;

(f) employees whose positions are basically temporary or
seasonal in character and: (1) are not for more than 67 working
days in any calendar year; or (2) are not for more than 100
working days in any calendar year and the employees are under
the age of 22, are full-time students enrolled in a nonprofit or
public educational institution prior to being hired by the
employer, and have indicated, either in an application for
employment or by being enrolled at an educational institution
for the next academic year or term, an intention to continue as
students during or after their temporary employment;

(g) employees providing services for not more than two
consecutive quarters to the Board of Trustees of the Minnesota
State Colleges and Universities under the terms of a
professional or technical services contract as defined in
section 16C.08, subdivision 1;

(h) employees of charitable hospitals as defined by section
179.35, subdivision 3;

(i) full-time undergraduate students employed by the school
which they attend under a work-study program or in connection
with the receipt of financial aid, irrespective of number of
hours of service per week;

(j) an individual who is employed for less than 300 hours
in a fiscal year as an instructor in an adult vocational
education program;

(k) an individual hired by the Board of Trustees of the
Minnesota State Colleges and Universities to teach one course
for three or fewer credits for one semester in a year;

(l) with respect to court employees:

(1) personal secretaries to judges;

(2) law clerks;

(3) managerial employees;

(4) confidential employees; and

(5) supervisory employees deleted text begin . deleted text end new text begin ;
new text end

new text begin (m) with respect to employees of Hennepin Healthcare
System, Inc., managerial, supervisory, and confidential
employees.
new text end

The following individuals are public employees regardless
of the exclusions of clauses (e) and (f):

(i) An employee hired by a school district or the Board of
Trustees of the Minnesota State Colleges and Universities except
at the university established in section 136F.13 or for
community services or community education instruction offered on
a noncredit basis: (A) to replace an absent teacher or faculty
member who is a public employee, where the replacement employee
is employed more than 30 working days as a replacement for that
teacher or faculty member; or (B) to take a teaching position
created due to increased enrollment, curriculum expansion,
courses which are a part of the curriculum whether offered
annually or not, or other appropriate reasons; and

(ii) An employee hired for a position under clause (f)(1)
if that same position has already been filled under clause
(f)(1) in the same calendar year and the cumulative number of
days worked in that same position by all employees exceeds 67
calendar days in that year. For the purpose of this paragraph,
"same position" includes a substantially equivalent position if
it is not the same position solely due to a change in the
classification or title of the position.

Sec. 3.

Minnesota Statutes 2004, section 179A.03,
subdivision 15, is amended to read:

Subd. 15.

Public employer or employer.

"Public employer"
or "employer" means:

(a) the state of Minnesota for employees of the state not
otherwise provided for in this subdivision or section 179A.10
for executive branch employees;

(b) the Board of Regents of the University of Minnesota for
its employees;

(c) the state court administrator for court employees;

(d) the state Board of Public Defense for its employees;
deleted text begin and
deleted text end

(e) new text begin Hennepin Healthcare System, Inc.; and
new text end

new text begin (f) new text end notwithstanding any other law to the contrary, the
governing body of a political subdivision or its agency or
instrumentality which has final budgetary approval authority for
its employees. However, the views of elected appointing
authorities who have standing to initiate interest arbitration,
and who are responsible for the selection, direction,
discipline, and discharge of individual employees shall be
considered by the employer in the course of the discharge of
rights and duties under sections 179A.01 to 179A.25.

When two or more units of government subject to sections
179A.01 to 179A.25 undertake a project or form a new agency
under law authorizing common or joint action, the employer is
the governing person or board of the created agency. The
governing official or body of the cooperating governmental units
shall be bound by an agreement entered into by the created
agency according to sections 179A.01 to 179A.25.

"Public employer" or "employer" does not include a
"charitable hospital" as defined in section 179.35, subdivision
2.

Nothing in this subdivision diminishes the authority
granted pursuant to law to an appointing authority with respect
to the selection, direction, discipline, or discharge of an
individual employee if this action is consistent with general
procedures and standards relating to selection, direction,
discipline, or discharge which are the subject of an agreement
entered into under sections 179A.01 to 179A.25.

Sec. 4.

Minnesota Statutes 2004, section 179A.06,
subdivision 2, is amended to read:

Subd. 2.

Right to organize.

Public employees have the
right to form and join labor or employee organizations, and have
the right not to form and join such organizations. Public
employees in an appropriate unit have the right by secret ballot
to designate an exclusive representative to negotiate grievance
procedures and the terms and conditions of employment with their
employer. Confidential employees of the state, confidential
court employees, and confidential University of Minnesota
employees are excluded from bargaining. Supervisory and
managerial court employees are excluded from
bargaining. new text begin Supervisory, managerial, and confidential employees
of Hennepin Healthcare System, Inc., are excluded from
bargaining. new text end Other confidential employees, supervisory
employees, principals, and assistant principals may form their
own organizations. An employer shall extend exclusive
recognition to a representative of or an organization of
supervisory or confidential employees, or principals and
assistant principals, for the purpose of negotiating terms or
conditions of employment, in accordance with sections 179A.01 to
179A.25, applicable to essential employees.

Supervisory or confidential employee organizations shall
not participate in any capacity in any negotiations which
involve units of employees other than supervisory or
confidential employees. Except for organizations which
represent supervisors who are: (1) firefighters, emergency
medical service employees certified under section 144E.28, 911
system public safety dispatchers, peace officers subject to
licensure under sections 626.84 to 626.863, guards at
correctional facilities, or employees at hospitals other than
state hospitals; and (2) not state or University of Minnesota
employees, a supervisory or confidential employee organization
which is affiliated with another employee organization which is
the exclusive representative of nonsupervisory or
nonconfidential employees of the same public employer shall not
be certified, or act as, an exclusive representative for the
supervisory or confidential employees. For the purpose of this
subdivision, affiliation means either direct or indirect and
includes affiliation through a federation or joint body of
employee organizations.

Sec. 5.

new text begin [179A.40] HENNEPIN HEALTHCARE SYSTEM, INC.
new text end

new text begin Subdivision 1. new text end

new text begin Units. new text end

new text begin The following are the appropriate
employee units of the Hennepin Healthcare System, Inc. All
units shall exclude supervisors, managerial employees, and
confidential employees. No additional units of Hennepin
Healthcare System, Inc., shall be eligible to be certified for
the purpose of meeting and negotiating with an exclusive
representative. The units include all:
new text end

new text begin (1) registered nurses;
new text end

new text begin (2) physicians;
new text end

new text begin (3) professionals except for registered nurses and
physicians;
new text end

new text begin (4) technical and paraprofessional employees;
new text end

new text begin (5) carpenters, electricians, painters, and plumbers;
new text end

new text begin (6) health general service employees;
new text end

new text begin (7) interpreters;
new text end

new text begin (8) emergency medical technicians/emergency medical
dispatchers (EMT/EMD), and paramedics;
new text end

new text begin (9) bioelectronics specialists, bioelectronics technicians,
and electronics technicians;
new text end

new text begin (10) skilled maintenance employees; and
new text end

new text begin (11) clerical employees.
new text end

new text begin Subd. 2. new text end

new text begin Nonconforming units. new text end

new text begin Preexisting Hennepin
County Medical Center bargaining units covered by existing labor
agreements on the day following final enactment of this act that
do not conform to one of the 11 units described in subdivision 1
shall continue to be appropriate. If an employee representative
seeks to represent employees who are residual to an existing
nonconforming unit, then all of the employees who are residual
to that unit shall be eligible to vote in an election conducted
by the commissioner. An election shall be held when an employee
organization or group of employees files a petition for an
election and the petition is supported by a showing of interest
from 30 percent or more of the employees who are residual to an
existing nonconforming unit. The employees who are residual to
an existing nonconforming unit shall be included within the
existing nonconforming unit if a majority of the eligible
employees who vote cast their ballots in favor of representation
during an election conducted by the commissioner. Nothing shall
preclude an exclusive representative and Hennepin Health Care
System, Inc., or prior to the formation of the corporation
Hennepin County, from agreeing to an election conducted by the
commissioner or other appropriate procedure by which less than
all of the employees who are residual to an existing
nonconforming unit may be added to the unit.
new text end

Sec. 6.

Minnesota Statutes 2004, section 383B.117,
subdivision 2, is amended to read:

Subd. 2.

Equipment acquisition; capital notes.

The board
may, by resolution and without public referendum, issue capital
notes within existing debt limits for the purpose of purchasing
ambulance and other medical equipment, road construction or
maintenance equipment, public safety equipment and other capital
equipment having an expected useful life at least equal to the
term of the notes issued. The notes shall be payable in not
more than five years and shall be issued on terms and in a
manner as the board determines. The total principal amount of
the notes issued for any fiscal year shall not exceed one
percent of the total annual budget for that year and shall be
issued solely for the purchases authorized in this subdivision.
A tax levy shall be made for the payment of the principal and
interest on such notes as in the case of bonds. new text begin For purposes of
this subdivision, the term "medical equipment" includes computer
hardware and software and other intellectual property for use in
medical diagnosis, medical procedures, research, record keeping,
billing, and other hospital applications, together with
application development services and training related to the use
of the computer hardware and software and other intellectual
property, all without regard to their useful life. For purposes
of determining the amount of capital notes which the county may
issue in any year, the budget of the county and Hennepin
Healthcare System, Inc. shall be combined and the notes issuable
under this subdivision shall be in addition to obligations
issuable under section 373.01, subdivision 3.
new text end

Sec. 7.

Minnesota Statutes 2004, section 383B.217,
subdivision 7, is amended to read:

Subd. 7.

deleted text begin purchases and marketing deleted text end new text begin purchasing, contracting,
meetings, data new text end .

(a) Contracting and purchasing made on behalf
of the deleted text begin Hennepin County Medical Center and its health maintenance
organization ( deleted text end HMO deleted text begin ) deleted text end new text begin , ambulatory health center, or other clinics
authorized under section 383B.219, new text end of goods, materials,
supplies, equipment, and services that are incidental to or that
are included as part of a contract for the purchase of goods,
materials, supplies, or equipment are specifically exempted from
sections 383B.141 to 383B.151 and 471.345 or other applicable
laws related to public procurement. Contracting and purchasing
of services shall comply with sections 383B.141 to 383B.151 or
other applicable laws related to public procurement.

(b) Notwithstanding chapter 13D, the county board on behalf
of the deleted text begin medical center and deleted text end HMO may meet in closed session to
discuss and take action on specific products or services that
are in direct competition with other providers of goods or
services in the public or private sector, if disclosure of
information pertaining to those matters would clearly harm the
competitive position of the deleted text begin medical center or deleted text end HMO.

(c) The deleted text begin medical center and deleted text end HMO shall inform the county
board when there are matters that are appropriate for discussion
or action under paragraph (b). The county administrator or the
administrator's designee shall give the board an opinion on the
propriety of discussion or action under paragraph (b) for each
of the matters. The county board may, by a majority vote in a
public meeting, decide to hold a closed meeting under paragraph
(b). The purpose, time, and place of the meeting must be
announced at a public meeting. A written roll of members
present at a closed meeting must be made available to the public
after the closed meeting. The proceedings of a closed meeting
must be tape recorded at the expense of the county board and be
preserved for not less than five years after the meeting. The
data on the tape are nonpublic data under section 13.02,
subdivision 9, until two years after the meeting. A contract
entered into by the county board at a meeting held on behalf of
the deleted text begin medical center or deleted text end HMO is subject to section 471.345. All
bids and any related materials that are considered at the
meeting must be retained for a period of not less than five
years. After the expiration of the term of any contract entered
into pursuant to this subdivision or a period of two years,
whichever is less, the contract, the bids, and any related
materials are public data. The contract, the bids, and any
related materials are subject to review by the state auditor at
any time.

(d) Data concerning specific products or services that are
in direct competition with other providers of goods or services
in the public or private sector are trade secret information for
purposes of section 13.37, to the extent disclosure of
information pertaining to the matters would clearly harm the
competitive position of the deleted text begin medical center or deleted text end HMO. The data are
trade secret information for the term of the contract or a
two-year period, whichever is less.

(e) Notwithstanding section 471.345 or other applicable
law, the county board on behalf of the deleted text begin medical center, deleted text end HMO,
ambulatory health center, or other clinics authorized under
section 383B.219, may contract, except for services, by any
means that the county board or at its direction the deleted text begin medical
center or deleted text end HMO new text begin , ambulatory health center, or other clinics
authorized under section 383B.219, new text end may determine. When
contracting for services, the county board must comply with
sections 383B.141 to 383B.151 and other applicable law, except
that the board may contract with a private or public cooperative
purchasing organization if it can be established that the
purchasing organization's services that are purchased have been
awarded through a competitive or request for proposal process.

(f) This subdivision applies to the deleted text begin medical center, deleted text end HMO,
ambulatory health centers, or other clinics authorized under
section 383B.219, as well as any other organization,
association, partnership, or corporation authorized by Hennepin
County under section 144.581.

Sec. 8. new text begin TRANSITION.
new text end

new text begin Subdivision 1. new text end

new text begin Initial board. new text end

new text begin For the first three years,
the board of Hennepin Healthcare System, Inc., shall be governed
by a board of directors consisting of 13 directors appointed by
the county board according to the procedure specified in this
act.
new text end

new text begin Subd. 2. new text end

new text begin Initial human resources system. new text end

new text begin Input from
Hennepin County Medical Center employees shall be obtained prior
to the development of the human resources rules and policies for
the new corporation and the rules and policies shall be
finalized and the county board shall, by a single majority vote
without amendment, approve the rules and policies and ratify
labor agreements, prior to the county board's vote to file the
certificate of local approval.
new text end

Sec. 9. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2004, section 383B.217, subdivisions 1,
2, 3, 4, 5, 6, and 8, are repealed.
new text end

Sec. 10. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 7 and 9 are effective on the date specified
in article 1, section 29, paragraph (b). Section 8 is effective
the day following final enactment.
new text end

ARTICLE 3

CONFORMING RETIREMENT CHANGES

Section 1.

Minnesota Statutes 2004, section 353.01,
subdivision 2b, is amended to read:

Subd. 2b.

Excluded employees.

The following public
employees are not eligible to participate as members of the
association with retirement coverage by the public employees
retirement plan, the local government correctional employees
retirement plan under chapter 353E, or the public employees
police and fire retirement plan:

(1) public officers, other than county sheriffs, who are
elected to a governing body, or persons who are appointed to
fill a vacancy in an elective office of a governing body, whose
term of office commences on or after July 1, 2002, for the
service to be rendered in that elective position. Elected
governing body officials who were active members of the
association's coordinated or basic retirement plans as of June
30, 2002, continue participation throughout incumbency in office
until termination of public service occurs as defined in
subdivision 11a;

(2) election officers or election judges;

(3) patient and inmate personnel who perform services for a
governmental subdivision;

(4) except as otherwise specified in subdivision 12a,
employees who are hired for a temporary position as defined
under subdivision 12a, and employees who resign from a
nontemporary position and accept a temporary position within 30
days in the same governmental subdivision;

(5) employees who are employed by reason of work emergency
caused by fire, flood, storm, or similar disaster;

(6) employees who by virtue of their employment in one
governmental subdivision are required by law to be a member of
and to contribute to any of the plans or funds administered by
the Minnesota State Retirement System, the Teachers Retirement
Association, the Duluth Teachers Retirement Fund Association,
the Minneapolis Teachers Retirement Fund Association, the St.
Paul Teachers Retirement Fund Association, the Minneapolis
Employees Retirement Fund, or any police or firefighters relief
association governed by section 69.77 that has not consolidated
with the Public Employees Retirement Association, or any local
police or firefighters consolidation account who have not
elected the type of benefit coverage provided by the public
employees police and fire fund under sections 353A.01 to
353A.10, or any persons covered by section 353.665, subdivision
4, 5, or 6, who have not elected public employees police and
fire plan benefit coverage. This clause must not be construed
to prevent a person from being a member of and contributing to
the Public Employees Retirement Association and also belonging
to and contributing to another public pension plan or fund for
other service occurring during the same period of time. A
person who meets the definition of "public employee" in
subdivision 2 by virtue of other service occurring during the
same period of time becomes a member of the association unless
contributions are made to another public retirement fund on the
salary based on the other service or to the Teachers Retirement
Association by a teacher as defined in section 354.05,
subdivision 2;

(7) persons who are members of a religious order and are
excluded from coverage under the federal Old Age, Survivors,
Disability, and Health Insurance Program for the performance of
service as specified in United States Code, title 42, section
410(a)(8)(A), as amended through January 1, 1987, if no
irrevocable election of coverage has been made under section
3121(r) of the Internal Revenue Code of 1954, as amended;

(8) employees of a governmental subdivision who have not
reached the age of 23 and are enrolled on a full-time basis to
attend or are attending classes on a full-time basis at an
accredited school, college, or university in an undergraduate,
graduate, or professional-technical program, or a public or
charter high school;

(9) resident physicians, medical interns, and pharmacist
residents and pharmacist interns who are serving in a degree or
residency program in public hospitals;

(10) students who are serving in an internship or residency
program sponsored by an accredited educational institution;

(11) persons who hold a part-time adult supplementary
technical college license who render part-time teaching service
in a technical college;

(12) except for employees of Hennepin County new text begin or Hennepin
Healthcare System, Inc. new text end , foreign citizens working for a
governmental subdivision with a work permit of less than three
years, or an H-1b visa valid for less than three years of
employment. Upon notice to the association that the work permit
or visa extends beyond the three-year period, the foreign
citizens must be reported for membership from the date of the
extension;

(13) public hospital employees who elected not to
participate as members of the association before 1972 and who
did not elect to participate from July 1, 1988, to October 1,
1988;

(14) except as provided in section 353.86, volunteer
ambulance service personnel, as defined in subdivision 35, but
persons who serve as volunteer ambulance service personnel may
still qualify as public employees under subdivision 2 and may be
members of the Public Employees Retirement Association and
participants in the public employees retirement fund or the
public employees police and fire fund, whichever applies, on the
basis of compensation received from public employment service
other than service as volunteer ambulance service personnel;

(15) except as provided in section 353.87, volunteer
firefighters, as defined in subdivision 36, engaging in
activities undertaken as part of volunteer firefighter duties;
provided that a person who is a volunteer firefighter may still
qualify as a public employee under subdivision 2 and may be a
member of the Public Employees Retirement Association and a
participant in the public employees retirement fund or the
public employees police and fire fund, whichever applies, on the
basis of compensation received from public employment activities
other than those as a volunteer firefighter;

(16) pipefitters and associated trades personnel employed
by Independent School District No. 625, St. Paul, with coverage
under a collective bargaining agreement by the pipefitters local
455 pension plan who were either first employed after May 1,
1997, or, if first employed before May 2, 1997, elected to be
excluded under Laws 1997, chapter 241, article 2, section 12;

(17) electrical workers, plumbers, carpenters, and
associated trades personnel employed by Independent School
District No. 625, St. Paul, or the city of St. Paul, who have
retirement coverage under a collective bargaining agreement by
the Electrical Workers Local 110 pension plan, the United
Association Plumbers Local 34 pension plan, or the Carpenters
Local 87 pension plan who were either first employed after May
1, 2000, or, if first employed before May 2, 2000, elected to be
excluded under Laws 2000, chapter 461, article 7, section 5;

(18) bricklayers, allied craftworkers, cement masons,
glaziers, glassworkers, painters, allied tradesworkers, and
plasterers employed by the city of St. Paul or Independent
School District No. 625, St. Paul, with coverage under a
collective bargaining agreement by the Bricklayers and Allied
Craftworkers Local 1 pension plan, the Cement Masons Local 633
pension plan, the Glaziers and Glassworkers Local L-1324 pension
plan, the Painters and Allied Trades Local 61 pension plan, or
the Twin Cities Plasterers Local 265 pension plan who were
either first employed after May 1, 2001, or if first employed
before May 2, 2001, elected to be excluded under Laws 2001,
First Special Session chapter 10, article 10, section 6;

(19) plumbers employed by the Metropolitan Airports
Commission, with coverage under a collective bargaining
agreement by the Plumbers Local 34 pension plan, who either were
first employed after May 1, 2001, or if first employed before
May 2, 2001, elected to be excluded under Laws 2001, First
Special Session chapter 10, article 10, section 6;

(20) employees who are hired after June 30, 2002, to fill
seasonal positions under subdivision 12b which are limited in
duration by the employer to 185 consecutive calendar days or
less in each year of employment with the governmental
subdivision;

(21) persons who are provided supported employment or
work-study positions by a governmental subdivision and who
participate in an employment or industries program maintained
for the benefit of these persons where the governmental
subdivision limits the position's duration to three years or
less, including persons participating in a federal or state
subsidized on-the-job training, work experience, senior citizen,
youth, or unemployment relief program where the training or work
experience is not provided as a part of, or for, future
permanent public employment;

(22) independent contractors and the employees of
independent contractors; and

(23) reemployed annuitants of the association during the
course of that reemployment.

Sec. 2.

Minnesota Statutes 2004, section 353.01,
subdivision 2d, is amended to read:

Subd. 2d.

Optional membership.

(a) Membership in the
association is optional by action of the individual employee for
the following public employees who meet the conditions set forth
in subdivision 2a:

(1) members of the coordinated plan who are also employees
of labor organizations as defined in section 353.017,
subdivision 1, for their employment by the labor organization
only if they elect to have membership under section 353.017,
subdivision 2;

(2) persons who are elected or persons who are appointed to
elected positions other than local governing body elected
positions who elect to participate by filing a written election
for membership;

(3) members of the association who are appointed by the
governor to be a state department head and who elect not to be
covered by the general state employees retirement plan of the
Minnesota State Retirement System under section 352.021;

(4) city managers as defined in section 353.028,
subdivision 1, who do not elect to be excluded from membership
in the association under section 353.028, subdivision 2; and

(5) employees of the Port Authority of the city of St. Paul
who were at least age 45 on January 1, 2003, and who elect to
participate by filing a written election for membership.

(b) Membership in the association is optional by action of
the governmental subdivision for the employees of the following
governmental subdivisions under the conditions specified:

(1) the Minnesota Association of Townships if the board of
the association, at its option, certifies to the executive
director that its employees are to be included for purposes of
retirement coverage, in which case the status of the association
as a participating employer is permanent; deleted text begin and
deleted text end

(2) a county historical society if the county in which the
historical society is located, at its option, certifies to the
executive director that the employees of the historical society
are to be county employees for purposes of retirement coverage
under this chapter. The status as a county employee must be
accorded to all similarly situated county historical society
employees and, once established, must continue as long as a
person is an employee of the county historical society new text begin ; and
new text end

new text begin (3) Hennepin Healthcare System, Inc., a public corporation,
with respect to employees other than paramedics, emergency
medical technicians, and protection officers, if the corporate
board establishes alternative retirement plans for certain
classes of employees of the corporation and certifies the
employees to be excluded from future retirement coverage new text end .

(c) For employees who are covered by paragraph (a), clause
(1), (2), or (3), or covered by paragraph (b), new text begin clause (1) or
(2), new text end if the necessary membership election is not made, the
employee is excluded from retirement coverage under this
chapter. For employees who are covered by paragraph (a), clause
(4), if the necessary election is not made, the employee must
become a member and have retirement coverage under this
chapter. new text begin For employees specified in paragraph (b), clause (3),
membership continues until the exclusion option is exercised for
the designated class of employee. new text end The option to become a
member, once exercised under this subdivision, may not be
withdrawn until termination of public service as defined under
subdivision 11a.

Sec. 3.

Minnesota Statutes 2004, section 353.01,
subdivision 6, is amended to read:

Subd. 6.

Governmental subdivision.

(a) "Governmental
subdivision" means a county, city, town, school district within
this state, or a department or unit of state government, or any
public body whose revenues are derived from taxation, fees,
assessments or from other sources.

(b) Governmental subdivision also means the Public
Employees Retirement Association, the League of Minnesota
Cities, the Association of Metropolitan Municipalities, public
hospitals owned or operated by, or an integral part of, a
governmental subdivision or governmental subdivisions, the
Association of Minnesota Counties, the Metropolitan Intercounty
Association, the Minnesota Municipal Utilities Association, the
Metropolitan Airports Commission, the Minneapolis Employees
Retirement Fund for employment initially commenced after June
30, 1979, the Range Association of Municipalities and Schools,
soil and water conservation districts, economic development
authorities created or operating under sections 469.090 to
469.108, the Port Authority of the city of St. Paul, the Spring
Lake Park Fire Department, incorporated, the Lake Johanna
Volunteer Fire Department, incorporated, the Red Wing
Environmental Learning Center, deleted text begin and deleted text end the Dakota County
Agricultural Society new text begin , and Hennepin Healthcare System, Inc new text end .

(c) Governmental subdivision does not mean any municipal
housing and redevelopment authority organized under the
provisions of sections 469.001 to 469.047; or any port authority
organized under sections 469.048 to 469.089 other than the Port
Authority of the city of St. Paul; or any hospital district
organized or reorganized prior to July 1, 1975, under sections
447.31 to 447.37 or the successor of the district, nor the
Minneapolis Community Development Agency.

Sec. 4.

Minnesota Statutes 2004, section 353.64,
subdivision 10, is amended to read:

Subd. 10.

Pension coverage for hennepin deleted text begin county deleted text end new text begin healthcare
system, inc.; new text end paramedics and emergency medical technicians.

An
employee of Hennepin deleted text begin County deleted text end new text begin Healthcare System, Inc. new text end who is:

(1) certified as a paramedic or emergency medical
technician by the state under section 144E.28, subdivision 4;

(2) employed full time as a paramedic or emergency medical
technician by Hennepin County on or after the effective date
specified in Laws 1994, chapter 499, section 2; and

(3) not eligible after the effective date under Laws 1994,
chapter 499, section 2, for coverage under the agreement signed
between the state and the secretary of the federal Department of
Health and Human Services making the provisions of the federal
Old Age, Survivors, and Disability Insurance Act applicable to
paramedics and emergency medical technicians because the
person's position is excluded after that date from application
under United States Code, title 42, sections 418(d)(5)(A) and
418(d)(8)(D), and section 355.07;

is a member of the public employees police and fire fund under
sections 353.63 to 353.68.

Hennepin deleted text begin County deleted text end new text begin Healthcare System, Inc. new text end shall deduct the
employee contribution from the salary of each full-time deleted text begin Hennepin
County deleted text end paramedic and emergency medical technician new text begin it employs new text end as
required by section 353.65, subdivision 2, shall make the
employer contribution for each full-time deleted text begin Hennepin County
deleted text end paramedic and emergency medical technician new text begin it employs new text end as
required by section 353.65, subdivision 3, and shall meet the
employer recording and reporting requirements in section 353.65,
subdivision 4.

Sec. 5.

Minnesota Statutes 2004, section 353E.02,
subdivision 2a, is amended to read:

Subd. 2a.

Medical center protection officer.

(a) A
medical center protection officer, for purposes of subdivision
1, is a person whom the employer certifies:

(1) is employed by deleted text begin the deleted text end Hennepin deleted text begin County Medical Center
deleted text end new text begin Healthcare System, Inc. new text end as a protection officer;

(2) is directly responsible for the direct security of the
medical center;

(3) is expected to respond to any incidents within the
medical center as part of the person's regular employment duties
and is trained to do so; and

(4) is a "public employee" as defined in section 353.01,
but is not a member of the public employees police and fire plan.

(b) The certification required under paragraph (a) must be
made in writing on a form prescribed by the executive director
of the Public Employees Retirement Association.

Sec. 6.

Minnesota Statutes 2004, section 383B.46, is
amended to read:

383B.46 SUPPLEMENTAL RETIREMENT ACCOUNT.

Subdivision 1.

Eligibility for coverage.

Any person who
was employed by the county of Hennepin or its agencies, boards,
commissions, authorities and committees deleted text begin prior to deleted text end new text begin before new text end April
14, 1982 new text begin , new text end as an employee or an officer in the classified service
as defined in sections 383B.26 to 383B.42, or as an employee in
the unclassified service, and who has served for five years as a
county employee or an officer in the classified service, or as a
county employee in the unclassified service, which need not
necessarily be continuous, and which deleted text begin shall deleted text end new text begin must new text end include time
served as a county employee deleted text begin prior to deleted text end new text begin before new text end June 8, 1965, if the
person is an employee in the classified service deleted text begin , shall be deleted text end new text begin of the
county or if the person is an employee of Hennepin Healthcare
System, Inc., is new text end entitled to elect to obtain coverage by the
Hennepin County supplemental retirement program. The election
to obtain coverage may be exercised only once and deleted text begin shall deleted text end new text begin must new text end be
exercised within 30 days of the date on which the person first
becomes entitled to elect to obtain coverage. No person hired,
rehired, or reinstated by the county as an employee in the
classified or unclassified service on or after April 14,
1982, deleted text begin shall be deleted text end new text begin is new text end eligible for coverage by the Hennepin County
supplemental retirement program.

Subd. 2.

Establishment of account; contributions.

The
county of Hennepin new text begin or Hennepin Healthcare System, Inc.,
whichever applies, new text end shall deduct from the salary of every person
who is eligible for coverage and who elected to retain or obtain
coverage by the Hennepin County supplemental retirement program
a sum equal to one percent of the total salary of the
person. deleted text begin Any classified or unclassified employee who is employed
in subsidized on-the-job training, work experience or public
service employment as an enrollee under the federal
Comprehensive Employment and Training Act shall not be included
in the supplemental retirement account from and after March 30,
1978 unless the employee has as of the later of March 30, 1978
or the date of employment sufficient service credit in the
public employees retirement fund or the Minneapolis municipal
employees retirement fund, whichever is applicable, to meet the
minimum vesting requirements for a deferred retirement annuity,
or the county agrees in writing to make the required employer
contributions on account of the individual from revenue sources
other than funds provided under the federal Comprehensive
Employment and Training Act, or the employee agrees in writing
to make the required employer contribution in addition to the
employee contribution. deleted text end The deduction shall be made in the same
manner as other retirement deductions are made from the salary
of the person. An amount equal to the amounts deducted during
each payroll period deleted text begin shall deleted text end new text begin must new text end be contributed by the county of
Hennepin new text begin or Hennepin Healthcare System, Inc., whichever
applies new text end . The total amount deducted and contributed deleted text begin shall deleted text end new text begin must
new text end be deposited to the credit of the supplemental retirement
account in the treasury of the county of Hennepin. The Hennepin
County supplemental retirement account is hereby established as
an account separate and distinct from other funds, accounts, or
assets of the county of Hennepin.

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 6 are effective on the date specified in
article 1, section 29, paragraph (b).
new text end