1.1                          A bill for an act 
  1.2             relating to public and municipal corporations; 
  1.3             creating a county subsidiary corporation to provide 
  1.4             health care and related services, education, and 
  1.5             research; providing for governance of Hennepin County 
  1.6             Medical Center; amending Minnesota Statutes 2004, 
  1.7             sections 179A.03, subdivisions 7, 14, 15; 179A.06, 
  1.8             subdivision 2; 353.01, subdivisions 2b, 2d, 6; 353.64, 
  1.9             subdivision 10; 353E.02, subdivision 2a; 383B.117, 
  1.10            subdivision 2; 383B.217, subdivision 7; 383B.46; 
  1.11            proposing coding for new law in Minnesota Statutes, 
  1.12            chapters 179A; 383B; repealing Minnesota Statutes 
  1.13            2004, section 383B.217, subdivisions 1, 2, 3, 4, 5, 6, 
  1.14            8. 
  1.15  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.16                             ARTICLE 1 
  1.17                     HENNEPIN HEALTHCARE SYSTEM 
  1.18     Section 1.  [383B.901] [CREATION OF A COUNTY SUBSIDIARY 
  1.19  CORPORATION.] 
  1.20     There is created a corporation which shall be public in 
  1.21  nature, operating as a subsidiary of the county of Hennepin.  
  1.22  The public corporation shall be known as Hennepin Healthcare 
  1.23  System, Inc.  The purpose of the corporation is to engage in the 
  1.24  organization and delivery of health care and related services to 
  1.25  the general public, including the indigent as defined by state 
  1.26  and federal law and as determined by the Hennepin County Board 
  1.27  of Commissioners, and to conduct related programs of education 
  1.28  and research.  The corporation shall have one class of members, 
  1.29  the governing member, who shall be Hennepin County, as 
  1.30  represented by the Hennepin County Board of Commissioners.  The 
  2.1   governing member has all the rights, duties, and privileges 
  2.2   specified under this act and the bylaws of the corporation. 
  2.3      Sec. 2.  [383B.902] [DEFINITIONS.] 
  2.4      Subdivision 1.  [TERMS.] For the purpose of this act, the 
  2.5   terms defined in this section have the meanings given them 
  2.6   unless the context clearly indicates otherwise. 
  2.7      (a) "Corporation" means the county subsidiary corporation 
  2.8   created by section 383B.901. 
  2.9      (b) "County" means the county of Hennepin. 
  2.10     (c) "County board" means the Hennepin County Board of 
  2.11  Commissioners and its members. 
  2.12     (d) "HCMC" means the Hennepin County Medical Center, which 
  2.13  is the medical center established and operated by the county 
  2.14  under section 383B.217. 
  2.15     (e) "Effective date" means the effective date of the 
  2.16  sections of this act, as defined in section 29. 
  2.17     Sec. 3.  [383B.903] [BOARD.] 
  2.18     Subdivision 1.  [GOVERNANCE.] The corporation shall be 
  2.19  governed by a board of directors consisting of between 11 and 15 
  2.20  directors.  Two of the directors on the board of the corporation 
  2.21  must be county commissioners currently serving as elected 
  2.22  officials on the county board who are chosen and may be removed 
  2.23  by a majority vote of the county board. 
  2.24     Subd. 2.  [TERM, QUORUM, AND MANNER OF ACTING.] The term of 
  2.25  office for directors, rules governing quorum, and manner of 
  2.26  acting for the board of directors must be specified in the 
  2.27  bylaws of the corporation which shall be approved by the county 
  2.28  board, except that: 
  2.29     (1) a vote of a majority of the board shall be required to 
  2.30  hire or discharge the corporation's administrator, to approve 
  2.31  the annual budget, and for any action which requires subsequent 
  2.32  approval by the county board as specified in section 383B.908; 
  2.33  and 
  2.34     (2) directors of the board of directors or any committee or 
  2.35  advisory assembly or council appointed by the board of directors 
  2.36  may participate in a meeting by means of telephone conference or 
  3.1   similar communications equipment which enables all persons 
  3.2   participating in the meeting to hear each other during the 
  3.3   conduct of that meeting.  Participation shall be considered 
  3.4   presence in person at the meeting for purposes of notice and 
  3.5   quorum requirements as specified in the bylaws. 
  3.6      Subd. 3.  [APPOINTMENT OF BOARD MEMBERS.] The county board 
  3.7   shall appoint the initial board of the corporation.  Thereafter, 
  3.8   the county board shall appoint directors of the corporation by 
  3.9   slate to open positions due to the completion of a director's 
  3.10  term as specified in the bylaws of the corporation.  The slate 
  3.11  shall be nominated by a committee of the board of the 
  3.12  corporation.  The board of the corporation may by majority vote 
  3.13  appoint a board member to fill a vacancy on the board occurring 
  3.14  prior to the completion of the term, provided the newly 
  3.15  appointed board member is submitted to the county board for 
  3.16  approval when the next slate of directors is submitted to the 
  3.17  county board for approval. 
  3.18     Subd. 4.  [REMOVAL.] A director who is not a county 
  3.19  commissioner may be removed without cause by a two-thirds 
  3.20  majority vote of the board of the corporation.  The county board 
  3.21  may remove any board member for violation of the director's 
  3.22  ethical and legal duties as a board member as specified in 
  3.23  section 383B.905 or for the repeated failure to act in the best 
  3.24  interests of the corporation.  In addition, the county board may 
  3.25  remove the corporate board in its entirety as specified in 
  3.26  section 383B.908, subdivision 7. 
  3.27     Sec. 4.  [383B.904] [OFFICERS.] 
  3.28     Subdivision 1.  [ELECTION.] (a) The officers of the board 
  3.29  of the corporation shall consist of the chair, vice chair, 
  3.30  secretary, treasurer, and other officers as the board shall from 
  3.31  time to time deem necessary.  The board shall elect officers by 
  3.32  a majority vote of the board at the annual meeting, or in the 
  3.33  case of the initial board, at the first meeting following 
  3.34  appointment by the county board. 
  3.35     (b) Any of the offices or functions, with the exception of 
  3.36  the chair and vice chair, may be held or exercised by the same 
  4.1   person. 
  4.2      Subd. 2.  [REMOVAL.] An officer may be removed without 
  4.3   cause by a two-thirds majority vote of the board of the 
  4.4   corporation. 
  4.5      Sec. 5.  [383B.905] [AUTHORITY AND DUTIES OF OFFICERS AND 
  4.6   DIRECTORS.] 
  4.7      Subdivision 1.  [IN BYLAWS OR BY BOARD.] Officers and 
  4.8   directors have the authority and duties in the management of the 
  4.9   business of the corporation that the bylaws prescribe or, in the 
  4.10  absence of such prescription, as the board determines. 
  4.11     Subd. 2.  [ORDINARY PRUDENT PERSON STANDARD.] Officers and 
  4.12  directors shall discharge their duties in good faith, in the 
  4.13  manner the officer or director reasonably believes to be in the 
  4.14  best interests of the corporation, and with the care an ordinary 
  4.15  prudent person in a like position would exercise under similar 
  4.16  circumstances. 
  4.17     Subd. 3.  [NOT TRUSTEES.] Officers and directors are not 
  4.18  considered to be trustees with respect to the corporation or 
  4.19  with respect to property held or administered by the 
  4.20  corporation, including, without limit, property that may be 
  4.21  subject to restrictions imposed by the donor or transferor of 
  4.22  the property. 
  4.23     Sec. 6.  [383B.906] [BYLAWS.] 
  4.24     Prior to the appointment of the initial board of the 
  4.25  corporation, the county board shall approve the bylaws of the 
  4.26  corporation.  Thereafter, the board of the corporation may 
  4.27  adopt, amend, or repeal bylaws relating to the management of the 
  4.28  business or regulation of the affairs of the corporation, except 
  4.29  that the county board shall approve any bylaws change relating 
  4.30  to: 
  4.31     (1) board composition, board and officer selection, terms, 
  4.32  removal, or qualifications; 
  4.33     (2) the county board's reserved powers as specified in the 
  4.34  bylaws; 
  4.35     (3) the ability of the corporation to engage in joint 
  4.36  ventures; 
  5.1      (4) the ability of the corporation to incur debt through 
  5.2   the county; 
  5.3      (5) the ability of the corporation to create subsidiaries; 
  5.4      (6) the ability of the corporation to merge or dissolve; 
  5.5      (7) the ability of the corporation to use subsidiaries to 
  5.6   undertake functions or activities performed by employees of the 
  5.7   corporation; or 
  5.8      (8) the mission of the corporation. 
  5.9      Sec. 7.  [383B.907] [CORPORATE POWERS.] 
  5.10     Subdivision 1.  [AUTHORITY AND POWERS OF THE 
  5.11  BOARD.] Subject to the reserved powers and limitations specified 
  5.12  in sections 383B.903, subdivision 3, and 383B.908, or as 
  5.13  specified in the bylaws of the corporation, the corporation, 
  5.14  through its board, shall, relative to the delivery of health 
  5.15  care services, have, in addition to any authority vested by law, 
  5.16  the authority and legal capacity of a nonprofit corporation 
  5.17  under chapter 317A including the authority to: 
  5.18     (1) have members of its governing authority or its officers 
  5.19  or administrators serve as directors, officers, or employees of 
  5.20  the corporation's ventures, associations, or corporations; 
  5.21     (2) hire and discharge an administrator; 
  5.22     (3) approve personnel policies and practices, any 
  5.23  applicable labor agreements, and levels of compensation and 
  5.24  benefits recommended by the administrator; 
  5.25     (4) use employees, agents, consultants, and facilities of 
  5.26  the county, as necessary in the discretion of the board, paying 
  5.27  the county its agreed proportion of the compensation or costs 
  5.28  pursuant to an agreement with the county; 
  5.29     (5) spend funds, including public funds in any form, or 
  5.30  devote the resources of the corporation to recruit and retain 
  5.31  physicians whose services are necessary or desirable for meeting 
  5.32  the health care needs of the population and for the successful 
  5.33  performance of the public purpose of the corporation.  Allowable 
  5.34  uses of funds and resources include the retirement of medical 
  5.35  education debt, payment of onetime amounts in consideration of 
  5.36  services rendered or to be rendered, payment of recruitment 
  6.1   expenses, payment of moving expenses, and the provision of other 
  6.2   financial assistance necessary for the recruitment and retention 
  6.3   of physicians, provided that the expenditures in whatever form 
  6.4   are reasonable under the facts and circumstances of the 
  6.5   situation; 
  6.6      (6) offer, directly or indirectly, products and services of 
  6.7   the corporation and/or affiliated entities to the general 
  6.8   public, and retain any profits earned through the provision of 
  6.9   these products and services for the purpose of advancing the 
  6.10  mission of the corporation; 
  6.11     (7) own shares of stock in business corporations; 
  6.12     (8) borrow money and issue bonds in support and promotion 
  6.13  of the corporation's purpose and mission and providing any 
  6.14  rights and obligations related thereto; 
  6.15     (9) accept gifts, grants, loans, or contributions of funds 
  6.16  or property or financial or other aid in any form from, and 
  6.17  enter into contracts or other transactions with, the federal 
  6.18  government, the state of Minnesota, third-party payors, or any 
  6.19  other source, and to use any gifts, grants, loans, or 
  6.20  contributions for any of its corporate purposes; 
  6.21     (10) enter shared service and other cooperative ventures; 
  6.22     (11) join or sponsor membership in organizations intended 
  6.23  to benefit the corporation; 
  6.24     (12) enter partnerships, joint ventures, or other business 
  6.25  arrangements to advance the mission of the corporation; 
  6.26     (13) sue or be sued; and 
  6.27     (14) incorporate other corporations, both for profit and 
  6.28  nonprofit. 
  6.29     Subd. 2.  [OTHER POWERS.] Subject to the reserved powers 
  6.30  and limitations specified in sections 383B.903, subdivision 3, 
  6.31  and 383B.908, or as specified in the bylaws of the corporation, 
  6.32  the corporation shall have all the powers necessary and 
  6.33  convenient for the operation, administration, management, and 
  6.34  control of the corporation's affairs.  The enumeration of 
  6.35  specific powers in this section is not intended to restrict the 
  6.36  power of the corporation to take any action which, in the 
  7.1   exercise of its discretion, is necessary or convenient to 
  7.2   further the purposes for which the corporation exists and that 
  7.3   is not otherwise prohibited by law, whether or not the power to 
  7.4   take the action is necessarily implied from the powers expressly 
  7.5   granted.  
  7.6      Sec. 8.  [383B.908] [LIMITATIONS UPON CORPORATE POWERS; 
  7.7   RESERVED POWERS.] 
  7.8      Subdivision 1.  [POWERS RESERVED TO THE 
  7.9   COUNTY.] Notwithstanding the authority granted to the board in 
  7.10  section 383B.907, the county board shall retain specific 
  7.11  controls over the corporation's mission, ability to incur 
  7.12  indebtedness through the county, indigent care, and governance.  
  7.13  These county board controls must be specified in the bylaws or 
  7.14  other transactional documents, which shall be approved by the 
  7.15  county board. 
  7.16     Subd. 2.  [RESTRICTION ON DISPOSITION OF THE ASSETS.] The 
  7.17  corporation shall not have the power to dissolve, merge, 
  7.18  consolidate, transfer, liquidate, or otherwise dispose of or 
  7.19  distribute all, or substantially all, of the corporation's 
  7.20  assets without a county board resolution approved by a majority 
  7.21  of the county board. 
  7.22     Subd. 3.  [DISTRIBUTION OF ASSETS UPON DISSOLUTION.] In the 
  7.23  event of the dissolution of the corporation, the net assets of 
  7.24  the corporation shall be distributed to the county for public 
  7.25  purposes. 
  7.26     Subd. 4.  [COMPENSATION AND PAYMENT LIMITATIONS.] No part 
  7.27  of the net earnings and assets of the corporation shall inure to 
  7.28  the benefit of any private individual, nor shall any part of the 
  7.29  income or assets of the corporation be distributed to or divided 
  7.30  among any private individuals as dividends or otherwise. 
  7.31     Subd. 5.  [FINANCIAL OVERSIGHT.] The county board shall 
  7.32  approve the annual budget of the corporation and receive an 
  7.33  annual audited financial statement.  The county board shall also 
  7.34  retain the right to conduct an independent audit of the finances 
  7.35  of the corporation. 
  7.36     Subd. 6.  [COUNTY SERVICES.] The county board shall retain 
  8.1   the authority to require the corporation to provide other health 
  8.2   care or health care related services as the county board 
  8.3   determines to be in the best interest of the county.  The 
  8.4   corporation shall provide these services as long as the county 
  8.5   board provides funds to pay for the services.  Payment to the 
  8.6   corporation for the services shall be as agreed between the 
  8.7   corporation and the county board. 
  8.8      Subd. 7.  [DISSOLUTION OR REORGANIZATION OF THE 
  8.9   CORPORATION.] The county board shall retain the right to 
  8.10  dissolve the corporation, reorganize the corporation, or remove 
  8.11  the entire corporate board in order to resume management of 
  8.12  Hennepin County Medical Center upon a two-thirds vote of the 
  8.13  entire county board. 
  8.14     Sec. 9.  [383B.909] [CORPORATE SEAL.] 
  8.15     The corporation shall not have a corporate seal.  
  8.16     Sec. 10.  [383B.910] [BOARD MEETINGS.] 
  8.17     In accordance with the bylaws of the corporation, the board 
  8.18  shall provide for annual, regular, and special meetings to be 
  8.19  held at a designated interval throughout the year.  Notice of 
  8.20  these meetings shall be provided in accordance with the bylaws 
  8.21  of the corporation. 
  8.22     Sec. 11.  [383B.911] [PUBLIC DEPOSITORY.] 
  8.23     The corporation shall have jurisdiction over its accounts 
  8.24  and payrolls and shall establish and maintain a public 
  8.25  depository.  The corporation may use the county as a public 
  8.26  depository.  If the depository is not the county, the depository 
  8.27  must be subject to chapter 118A, except that the corporation 
  8.28  shall determine the appropriate security.  The corporation shall 
  8.29  establish and maintain all necessary accounts.  The corporation 
  8.30  may establish reserve accounts, depreciation accounts, and 
  8.31  working capital funds in order to operate on an accrual basis. 
  8.32     Sec. 12.  [383B.912] [TRANSFER OF RIGHTS.] 
  8.33     Subdivision 1.  [CORPORATION AS CONTINUATION OF HCMC.] The 
  8.34  corporation created by section 383B.901 shall be considered a 
  8.35  continuation of HCMC for purposes of all the rights, 
  8.36  liabilities, and contractual obligations of the county 
  9.1   pertaining to the operations of HCMC except as otherwise 
  9.2   provided herein.  The corporation succeeds to all rights and 
  9.3   contractual obligations of the county pertaining to the 
  9.4   operations of HCMC with the same force and effect as if those 
  9.5   rights and obligations had been continued by the county itself. 
  9.6      Subd. 2.  [PENDING MATTERS.] The corporation may conduct 
  9.7   and complete any legal action, administrative proceeding, or any 
  9.8   other matter commenced by or against HCMC or the county, on 
  9.9   behalf of HCMC, which was incurred before or pending as of the 
  9.10  effective date, in the same manner, under the same conditions, 
  9.11  and with the same effect as though the action, proceeding, or 
  9.12  other matter were conducted or completed by HCMC or the county 
  9.13  acting on behalf of HCMC. 
  9.14     Subd. 3.  [TRANSFER OF DOCUMENTS REQUIRED.] On the 
  9.15  effective date, HCMC, or the county on behalf of HCMC, shall 
  9.16  have the authority to transfer and deliver to the corporation, 
  9.17  as specified in the lease and other transactional documents 
  9.18  referenced in section 383B.914, all contracts, books, bonds, 
  9.19  plans, paper, records, including all personnel and medical 
  9.20  records, and other property of every description within the 
  9.21  jurisdiction or control of HCMC, or the county acting on behalf 
  9.22  of HCMC, except as otherwise provided herein. 
  9.23     Subd. 4.  [TRANSFER OF FUNDS.] On the effective date, HCMC, 
  9.24  or the county on behalf of HCMC, shall have the authority to 
  9.25  transfer to the corporation all unspent funds appropriated to 
  9.26  HCMC, as specified in the lease and other transactional 
  9.27  documents referenced in section 383B.913. 
  9.28     Sec. 13.  [383B.913] [LEASE OR TRANSFER OF ASSETS.] 
  9.29     Subdivision 1.  [CORPORATE STATUS.] The corporation shall 
  9.30  be considered a "public corporation" for purposes of section 
  9.31  465.035. 
  9.32     Subd. 2.  [LEASE OF REAL PROPERTY.] Notwithstanding any 
  9.33  other laws to the contrary, as of the effective date, the county 
  9.34  shall have the authority to enter into a lease, mutually 
  9.35  agreeable to both parties, with the corporation for 
  9.36  substantially all of the real property acquired by or turned 
 10.1   over to the county for the establishment, operation, or 
 10.2   maintenance of HCMC prior to and as of the effective date and 
 10.3   necessary for the operation of the corporation.  Subject to 
 10.4   restrictions specified in the written lease and other 
 10.5   transaction documents by and between the county and the 
 10.6   corporation, the county shall lease the real property 
 10.7   exclusively to the corporation.  For the purposes of this 
 10.8   subdivision, real property shall mean the real property used by 
 10.9   the county for the operations of HCMC that the county shall 
 10.10  lease to Hennepin Healthcare System, Inc., as specified in the 
 10.11  lease documents and this act as of the effective date. 
 10.12     Subd. 3.  [REQUIREMENTS OF LEASE.] In order for the county 
 10.13  to enter into the lease described in subdivision 2, the lease 
 10.14  must also address the following: 
 10.15     (1) continued primary use of the property for health and 
 10.16  hospital services; 
 10.17     (2) indigent care; 
 10.18     (3) capital improvements; 
 10.19     (4) joint ventures and partnerships; 
 10.20     (5) assignments and subleases; and 
 10.21     (6) changes to hospital capacity. 
 10.22     Subd. 4.  [TRANSFER OF ASSETS.] The county shall transfer 
 10.23  to the corporation assets as designated by the county in 
 10.24  transactional documents accompanying the lease for use in the 
 10.25  operations of HCMC.  For purposes of this subdivision, assets 
 10.26  means the equipment and other personal property used by the 
 10.27  county for the operations of HCMC that the county shall transfer 
 10.28  to Hennepin Healthcare System, Inc., as specified in the 
 10.29  transaction documents and this act as of the effective date. 
 10.30     Subd. 5.  [NO ADVERTISING OR BIDS.] The county may transfer 
 10.31  and lease the assets and real property to the corporation as 
 10.32  specified in subdivisions 2 and 3 without first advertising for 
 10.33  or soliciting any bids. 
 10.34     Sec. 14.  [383B.914] [STATUS OF PRESENT EMPLOYEES; 
 10.35  BARGAINING UNITS; RETIREMENT COVERAGE.] 
 10.36     Subdivision 1.  [HEALTH SYSTEM HUMAN RESOURCES 
 11.1   SYSTEM.] Persons employed at the corporation created shall be 
 11.2   subject to a human resources system that is designed to offer 
 11.3   appropriate benefits to workers employed in a health care 
 11.4   setting.  This human resources system shall replace the general 
 11.5   county human resources system prescribed in sections 383B.26 to 
 11.6   383B.42, and any rules related to it.  The corporation shall 
 11.7   have the authority to establish all personnel policies and 
 11.8   practices, negotiate applicable labor agreements, and set all 
 11.9   levels of compensation and benefits which are considered 
 11.10  appropriate by the board except as limited in this section.  The 
 11.11  human resources system is subject to the following human 
 11.12  resources requirements: 
 11.13     (1) determine compensation according to the pay equity 
 11.14  requirements under sections 471.991 to 471.999; 
 11.15     (2) provide preferences for veterans according to the 
 11.16  Veterans Preference Act under sections 197.455, 197.46, and 
 11.17  375.63; and 
 11.18     (3) provide an appeals process for an individual who is 
 11.19  discharged, demoted, or suspended. 
 11.20     Subd. 2.  [EMPLOYEE TRANSFER.] All persons employed by the 
 11.21  county whose employment is accounted for in the county 
 11.22  enterprise fund for HCMC, on the effective date, shall be 
 11.23  transferred to the corporation as specified in the lease and 
 11.24  other transactional documents referenced in section 383B.913.  
 11.25  The transfer of employees to the corporation under this 
 11.26  subdivision does not constitute severance or termination of 
 11.27  employment or a layoff entitling transferred employees to 
 11.28  severance pay, termination benefits, a retirement plan refund, 
 11.29  or any other right that may be applicable in the case of 
 11.30  severance, termination, or layoff. 
 11.31     Subd. 3.  [CURRENT POSITIONS.] Each person employed by the 
 11.32  county who is transferred to the corporation on the effective 
 11.33  date shall retain employment and accrued benefits, including 
 11.34  participation in deferred compensation programs, and will be 
 11.35  recorded by most recent date of employment with Hennepin County 
 11.36  upon transfer to the corporation created in section 383B.901.  
 12.1      Subd. 4.  [BARGAINING UNITS.] The corporation shall 
 12.2   recognize existing bargaining units organized by employees of 
 12.3   HCMC and the exclusive representatives of those bargaining units 
 12.4   as of the effective date.  The corporation shall adopt all 
 12.5   current labor agreements as of the effective date for the term 
 12.6   of those agreements, except for countywide references, 
 12.7   countywide provisions, and countywide human resources rules. 
 12.8      Subd. 5.  [GENERAL EMPLOYEE RETIREMENT BENEFITS.] (a) 
 12.9   Except as provided in paragraph (b), employees of the 
 12.10  corporation, other than paramedics, emergency medical 
 12.11  technicians and the supervisors and managers of such employees, 
 12.12  and protection officers and supervisors of such employees, are 
 12.13  "public employees" under chapter 353 and are members of the 
 12.14  general employees retirement plan of the Public Employees 
 12.15  Retirement Association, including employees transferred to the 
 12.16  corporation under subdivision 2 and employees hired by the 
 12.17  corporation after the effective date. 
 12.18     (b) Notwithstanding sections 356.24 and 356.25, the 
 12.19  corporation has the authority to create alternative retirement 
 12.20  plans that are not defined benefit pension plans for the 
 12.21  following classes of employees:  supervisors, managers, 
 12.22  physicians, and independent health practitioners who bill 
 12.23  independently for their time, provided the value of the 
 12.24  aggregate benefits are substantially comparable to the general 
 12.25  employee retirement plan of the Public Employees Retirement 
 12.26  Association.  These classes of employees are eligible to 
 12.27  participate in the general retirement plan of the Public 
 12.28  Employees Retirement Association until and unless the 
 12.29  corporation creates alternative retirement plans.  Only those 
 12.30  employees who are within the designated class and who are hired 
 12.31  after the date of creation of the alternative plan may be 
 12.32  enrolled in the alternative retirement plan in lieu of 
 12.33  participation in the general employees retirement plan of the 
 12.34  Public Employees Retirement Association.  Any alternative 
 12.35  retirement benefit plan established by the corporation must 
 12.36  comply with the financial reporting requirements for public 
 13.1   pension plans under section 356.20 and the investment 
 13.2   performance reporting requirements for public pension plans 
 13.3   under section 356.219. 
 13.4      Subd. 6.  [EMPLOYEES ELIGIBLE TO CONTINUE PARTICIPATION IN 
 13.5   PUBLIC EMPLOYEE RETIREMENT ASSOCIATION CORRECTIONAL, POLICE AND 
 13.6   FIRE BENEFIT PLANS.] Notwithstanding subdivision 5, both 
 13.7   existing and future employees of the corporation in the 
 13.8   positions of paramedic and emergency medical technician, 
 13.9   including supervisors and managers of such employees, as 
 13.10  provided in section 353.64, subdivision 10, are members of the 
 13.11  public employees police and fire retirement plan under sections 
 13.12  353.63 to 353.68 and in the position of protection officer, 
 13.13  including supervisors of such employees, as provided in section 
 13.14  353E.02, subdivision 2a, are members of the local government 
 13.15  correctional retirement plan under chapter 353E. 
 13.16     Subd. 7.  [PARTICIPATION IN STATE DEFERRED COMPENSATION 
 13.17  PLAN.] (a) Existing employees of the corporation, at the 
 13.18  election of the corporation, if otherwise qualified, are 
 13.19  eligible to participate in the Hennepin County supplemental 
 13.20  retirement plan under sections 383B.46 and 383B.52. 
 13.21     (b) Existing and future employees of the corporation, at 
 13.22  the election of the corporation, are eligible to participate in 
 13.23  the Minnesota state deferred compensation plan under section 
 13.24  352.96, the postretirement health care savings plan under 
 13.25  section 352.98, and all other deferred compensation arrangements 
 13.26  for which all persons employed by the county whose employment is 
 13.27  accounted for in the county enterprise fund for HCMC were 
 13.28  eligible. 
 13.29     Subd. 8.  [SUBSIDIARIES.] Any subsidiary created by the 
 13.30  corporation shall be subject to the same human resources 
 13.31  requirements as those that apply to the corporation under 
 13.32  subdivision 1.  
 13.33     Sec. 15.  [383B.915] [BONDING AUTHORITY OF CORPORATION.] 
 13.34     Subdivision 1.  [MUNICIPALITY.] The corporation shall be 
 13.35  considered a "municipality" pursuant to section 475.51, 
 13.36  subdivision 2, for purposes of bond issuance and shall have all 
 14.1   the authority conferred on municipalities by chapter 475, unless 
 14.2   that authority is modified in this section. 
 14.3      Subd. 2.  [SALE OF BONDS.] Subject to the reserved powers 
 14.4   and limitations specified in section 383B.908 and 
 14.5   notwithstanding any of the corporation's enumerated powers, the 
 14.6   corporation may issue and sell revenue bonds or other revenue 
 14.7   obligations to finance capital improvements or for the 
 14.8   acquisition and betterment of facilities or other property to be 
 14.9   utilized for the delivery of health care and related research, 
 14.10  the establishment of reserves for bond payment, or for other 
 14.11  proper corporate purposes. 
 14.12     Subd. 3.  [SECURITY FOR BONDS.] Subject to the reserved 
 14.13  powers and limitations specified in section 383B.908 and 
 14.14  notwithstanding any of the corporation's enumerated powers, the 
 14.15  bonds may be secured by a mortgage of or security interest in 
 14.16  any property owned by the corporation or any interest of the 
 14.17  corporation in any property and by a pledge of revenues to be 
 14.18  derived from operation of the corporation's facilities as a 
 14.19  first and prior lien thereon or as a lien subordinate to the 
 14.20  costs of operation and maintenance of the facilities.  The bonds 
 14.21  must be in an amount, and shall mature, as provided by 
 14.22  resolution of the board and may be issued in one or more series 
 14.23  and shall bear a date or dates, bear interest at a rate or 
 14.24  rates, be in a denomination or denominations, be in the form 
 14.25  either coupon or registered, carry the conversion or 
 14.26  registration privileges, have rank or priority, be executed in 
 14.27  the manner, be payable in medium of payment at the place or 
 14.28  places, and be subject to the terms of redemption, with or 
 14.29  without premium, as the resolution may provide.  The bonds may 
 14.30  be sold at public or private sale at a price or prices 
 14.31  determined by the resolution.  Notwithstanding any law to the 
 14.32  contrary, the bonds must be fully negotiable.  The corporation 
 14.33  may enter into the covenants the board, by resolution, shall 
 14.34  deem necessary and proper to secure payment of the bonds.  The 
 14.35  revenue bonds must state on their face that they are not payable 
 14.36  from, nor may be a charge upon, any funds other than the 
 15.1   revenues and property pledged or mortgaged for their payment, 
 15.2   nor shall the corporation be subject to any liability on them or 
 15.3   have the power to obligate itself to pay or pay the revenue 
 15.4   bonds from funds other than the revenues and property pledged 
 15.5   and mortgaged.  No holder or holders of the bonds shall ever 
 15.6   have the right to compel any exercise of any taxing power of the 
 15.7   county or any other public body to pay the principal of or 
 15.8   interest on any of them, nor to enforce payment of them against 
 15.9   any property other than that expressly pledged or mortgaged for 
 15.10  their payment. 
 15.11     Sec. 16.  [383B.916] [FINANCING THROUGH COUNTY.] 
 15.12     In addition to the authority granted in section 16, the 
 15.13  county may finance any improvements, equipment, or other 
 15.14  property to be operated by the corporation and may issue bonds 
 15.15  for such purposes pursuant to and subject to the procedures and 
 15.16  limitations set forth in section 373.40, 383B.117, 447.45, or 
 15.17  other law, as appropriate, whether or not the capital 
 15.18  improvement or equipment to be financed is to be owned by the 
 15.19  county or the corporation. 
 15.20     Sec. 17.  [383B.917] [OPEN MEETING LAW; GOVERNMENT DATA 
 15.21  PRACTICES ACT.] 
 15.22     Subdivision 1.  [CORPORATION NOT SUBJECT TO OPEN MEETING 
 15.23  LAW AND DATA PRACTICES ACT.] The corporation and any 
 15.24  organization, association, partnership, or corporation created, 
 15.25  controlled, or owned by the corporation, shall not be subject to 
 15.26  the Open Meeting Law, chapter 13D, or the Minnesota Government 
 15.27  Data Practices Act, chapter 13. 
 15.28     Subd. 2.  [CORPORATION TO MAKE INFORMATION PUBLICLY 
 15.29  AVAILABLE.] The corporation shall make available for public 
 15.30  inspection the following: 
 15.31     (1) the corporation's annual audited financial statements, 
 15.32  prepared in accordance with generally accepted accounting 
 15.33  principles, and which shall include all of the information a 
 15.34  charitable organization is required to disclose under section 
 15.35  309.53, subdivision 3; 
 15.36     (2) the corporation's current federal tax or informational 
 16.1   return on file with the Internal Revenue Service, if applicable; 
 16.2      (3) the corporation's bylaws; 
 16.3      (4) the corporation's health services plan; and 
 16.4      (5) any material provided to the county board that the 
 16.5   county board would be subject to release under the Minnesota 
 16.6   Government Data Practices Act and other applicable law. 
 16.7      Subd. 3.  [PUBLIC MEETINGS.] Each year the corporation 
 16.8   shall hold a meeting which must be open to the public.  At this 
 16.9   meeting, the board of directors and the administrator of the 
 16.10  corporation shall report on the affairs of the corporation and 
 16.11  the goals for the future, including a report on the health 
 16.12  services plan specified in section 383B.918.  The corporation 
 16.13  shall hold additional public meetings during the development and 
 16.14  implementation phase of the health services plan for the purpose 
 16.15  of informing the public and receiving public comment.  That 
 16.16  portion of a meeting of the board of directors of the 
 16.17  corporation at which the annual budget of the corporation is 
 16.18  approved prior to submission to the county board for approval 
 16.19  shall be open to the public.  Notification of these meetings 
 16.20  shall be published on the corporation's Web site and in at least 
 16.21  one local paper at least two weeks prior to the meeting.  Any 
 16.22  meeting at which the county board is discussing the approval of 
 16.23  the budget, health services plan, the corporation's audited 
 16.24  financial statement, or any other matter subject to the county 
 16.25  board's reserved powers as specified in section 383B.908, or in 
 16.26  the bylaws, is subject to the requirements of the Minnesota Open 
 16.27  Meeting Law and other applicable laws. 
 16.28     Sec. 18.  [383B.918] [HEALTH SERVICES PLAN.] 
 16.29     The corporation shall prepare, and submit to the county 
 16.30  board for review and approval, a health services plan that draws 
 16.31  from a population health needs assessment and delineates the 
 16.32  corporation's role in the community, including education and 
 16.33  research.  The health services plan shall contain a description 
 16.34  of how the corporation shall continue to coordinate with the 
 16.35  county to provide health-related services to the residents of 
 16.36  Hennepin County, including the indigent as defined by state and 
 17.1   federal law and as determined by the Hennepin County Board of 
 17.2   Commissioners. 
 17.3      Sec. 19.  [383B.919] [TORT LIABILITY.] 
 17.4      The corporation shall be a "municipality" for purposes of 
 17.5   tort liability pursuant to chapter 466. 
 17.6      Sec. 20.  [383B.920] [REVENUE RECAPTURE ACT.] 
 17.7      The corporation shall be considered a "claimant agency" for 
 17.8   purposes of the Revenue Recapture Act, chapter 270A. 
 17.9      Sec. 21.  [383B.921] [PURCHASING.] 
 17.10     Subdivision 1.  [PUBLIC PROCUREMENT.] Notwithstanding any 
 17.11  law to the contrary, contracting and purchasing of goods, 
 17.12  materials, supplies, equipment, and services that are included 
 17.13  as part of a contract for the purchase of goods, materials, 
 17.14  supplies, equipment, or services are specifically exempted from 
 17.15  sections 383B.141 to 383B.151 and 471.345 to 471.371, or other 
 17.16  applicable laws related to public procurement. 
 17.17     Subd. 2.  [PURCHASING AND SERVICE CONTRACTS.] The 
 17.18  corporation may purchase directly or utilize the services of a 
 17.19  nonprofit cooperative hospital service organization, the county, 
 17.20  the state of Minnesota, the University of Minnesota, or any 
 17.21  other political subdivision or agency of the state of Minnesota 
 17.22  in the purchase of all goods, materials, and services that the 
 17.23  corporation may require. 
 17.24     Sec. 22.  [383B.922] [LEGAL COUNSEL.] 
 17.25     With respect to the provisions of section 388.051, the 
 17.26  corporation shall be deemed a part of Hennepin County for 
 17.27  purposes of the Hennepin County attorney serving as legal 
 17.28  counsel to the corporation; provided, however, that the 
 17.29  corporation and the Hennepin County attorney may enter into an 
 17.30  arrangement with respect to the hiring of outside counsel on 
 17.31  behalf of the corporation.  The corporation shall reimburse the 
 17.32  county for legal services provided by the Hennepin County 
 17.33  attorney, including any and all costs, and the reimbursement 
 17.34  shall be credited to the budget of the Hennepin County attorney. 
 17.35     Sec. 23.  [383B.923] [SELF-INSURANCE.] 
 17.36     Subdivision 1.  [SELF-INSURANCE.] The corporation may 
 18.1   participate in any self-insurance program established by the 
 18.2   county in accordance with section 383B.155. 
 18.3      Subd. 2.  [ADDITIONAL BENEFITS TO EMPLOYEES.] The 
 18.4   corporation may provide for the payment of additional benefits 
 18.5   to employees from their accumulated vacation, sick leave, or 
 18.6   overtime credits if the employees of the corporation and any of 
 18.7   its subsidiaries are entitled to the benefits of the Workers' 
 18.8   Compensation Law and have at the time of compensable injury 
 18.9   accumulated credits under a vacation, sick leave, or overtime 
 18.10  plan or system maintained by the corporation.  The additional 
 18.11  payments to an employee may not exceed the amount of the total 
 18.12  sick leave, vacation, or overtime credits accumulated by the 
 18.13  employee and shall not result in the payment of a total weekly 
 18.14  rate of compensation that exceeds the weekly wage of the 
 18.15  employee.  The additional payments to any employee shall be 
 18.16  charged against the sick leave, vacation, and overtime credits 
 18.17  accumulated by the employee.  Employees of the corporation and 
 18.18  any of its subsidiaries entitled to the benefits of the Workers' 
 18.19  Compensation Law may receive additional benefits pursuant to a 
 18.20  collective bargaining agreement or other plan, entered into or 
 18.21  in effect on or after January 1, 2003, providing payments by or 
 18.22  on behalf of the employer, and these additional benefits may be 
 18.23  unrelated to any accumulated sick leave, holiday, or overtime 
 18.24  credits and need not be charged against any accumulation; 
 18.25  provided that the additional payments must not result in the 
 18.26  payment of a total weekly rate of compensation that exceeds the 
 18.27  weekly wage of the employee.  The corporation and its 
 18.28  subsidiaries may adopt rules and regulations consistent with 
 18.29  chapter 179, to carry out the section relating to payment of 
 18.30  additional benefits to employees from accumulated sick leave, 
 18.31  vacation, overtime credits, or other sources. 
 18.32     Sec. 24.  [383B.924] [HOSPITAL AUTHORITIES.] 
 18.33     The corporation shall not be considered a hospital or 
 18.34  hospital district subject to section 144.581. 
 18.35     Sec. 25.  [383B.925] [TAX-EXEMPT STATUS.] 
 18.36     The corporation is an organization exempt from taxation 
 19.1   pursuant to chapters 290 and 297A. 
 19.2      Sec. 26.  [383B.926] [PREPAID HEALTH PLAN.] 
 19.3      The corporation is a county-affiliated public teaching 
 19.4   hospital for purposes of section 256D.03, subdivision 4. 
 19.5      Sec. 27.  [383B.927] [INTERGOVERNMENTAL TRANSFERS.] 
 19.6      For purposes of medical assistance, Medicaid, Medicare, and 
 19.7   other public programs, the corporation shall continue to be a 
 19.8   "unit of state or local government" and a "government owned or 
 19.9   operated hospital," and shall be eligible to receive 
 19.10  "intergovernmental transfers" and "certified public expenditures"
 19.11  as may be authorized from time to time by the state of Minnesota 
 19.12  or Hennepin County. 
 19.13     Sec. 28.  [383B.928] [INDIGENT CARE.] 
 19.14     Subdivision 1.  [SERVICES.] The corporation shall provide 
 19.15  health care and related services for the indigent of the county 
 19.16  as required by the terms of the lease as specified in section 
 19.17  383B.913, subdivisions 2 and 3, consistent with any agreement 
 19.18  for payment for those services made with the county. 
 19.19     Subd. 2.  [FUNDS.] Notwithstanding any law to the contrary, 
 19.20  the county may provide funds for the purchase of medical care 
 19.21  for the indigent of the county from a provider selected by the 
 19.22  county with or without public bid. 
 19.23     Sec. 29.  [EFFECTIVE DATES.] 
 19.24     (a) Sections 3 to 8, regarding governance and corporate 
 19.25  powers; section 14, subdivision 1, regarding the establishment 
 19.26  of personnel policies; and section 17, regarding the Minnesota 
 19.27  Open Meeting Law and the Government Data Practices Act are 
 19.28  effective when the initial board of the corporation is appointed 
 19.29  by the county board.  
 19.30     (b) The remaining sections of the bill are effective the 
 19.31  day after the county board files a certificate of local approval 
 19.32  in compliance with Minnesota Statutes, section 645.021, 
 19.33  subdivision 3, after which the corporation shall commence 
 19.34  operation and management of Hennepin County Medical Center. 
 19.35                             ARTICLE 2 
 19.36                  LABOR RELATIONS; RELATED ISSUES 
 20.1      Section 1.  Minnesota Statutes 2004, section 179A.03, 
 20.2   subdivision 7, is amended to read: 
 20.3      Subd. 7.  [ESSENTIAL EMPLOYEE.] "Essential employee" means 
 20.4   firefighters, peace officers subject to licensure under sections 
 20.5   626.84 to 626.863, 911 system and police and fire department 
 20.6   public safety dispatchers, guards at correctional facilities, 
 20.7   confidential employees, supervisory employees, assistant county 
 20.8   attorneys, assistant city attorneys, principals, and assistant 
 20.9   principals.  However, for state employees, "essential employee" 
 20.10  means all employees in law enforcement, health care 
 20.11  professionals, correctional guards, professional engineering, 
 20.12  and supervisory collective bargaining units, irrespective of 
 20.13  severance, and no other employees.  For University of Minnesota 
 20.14  employees, "essential employee" means all employees in law 
 20.15  enforcement, nursing professional and supervisory units, 
 20.16  irrespective of severance, and no other employees.  
 20.17  "Firefighters" means salaried employees of a fire department 
 20.18  whose duties include, directly or indirectly, controlling, 
 20.19  extinguishing, preventing, detecting, or investigating fires.  
 20.20  Employees for whom the state court administrator is the 
 20.21  negotiating employer are not essential employees.  For Hennepin 
 20.22  Healthcare System, Inc. employees, "essential employees" means 
 20.23  all employees. 
 20.24     Sec. 2.  Minnesota Statutes 2004, section 179A.03, 
 20.25  subdivision 14, is amended to read: 
 20.26     Subd. 14.  [PUBLIC EMPLOYEE OR EMPLOYEE.] "Public employee" 
 20.27  or "employee" means any person appointed or employed by a public 
 20.28  employer except:  
 20.29     (a) elected public officials; 
 20.30     (b) election officers; 
 20.31     (c) commissioned or enlisted personnel of the Minnesota 
 20.32  National Guard; 
 20.33     (d) emergency employees who are employed for emergency work 
 20.34  caused by natural disaster; 
 20.35     (e) part-time employees whose service does not exceed the 
 20.36  lesser of 14 hours per week or 35 percent of the normal work 
 21.1   week in the employee's appropriate unit; 
 21.2      (f) employees whose positions are basically temporary or 
 21.3   seasonal in character and:  (1) are not for more than 67 working 
 21.4   days in any calendar year; or (2) are not for more than 100 
 21.5   working days in any calendar year and the employees are under 
 21.6   the age of 22, are full-time students enrolled in a nonprofit or 
 21.7   public educational institution prior to being hired by the 
 21.8   employer, and have indicated, either in an application for 
 21.9   employment or by being enrolled at an educational institution 
 21.10  for the next academic year or term, an intention to continue as 
 21.11  students during or after their temporary employment; 
 21.12     (g) employees providing services for not more than two 
 21.13  consecutive quarters to the Board of Trustees of the Minnesota 
 21.14  State Colleges and Universities under the terms of a 
 21.15  professional or technical services contract as defined in 
 21.16  section 16C.08, subdivision 1; 
 21.17     (h) employees of charitable hospitals as defined by section 
 21.18  179.35, subdivision 3; 
 21.19     (i) full-time undergraduate students employed by the school 
 21.20  which they attend under a work-study program or in connection 
 21.21  with the receipt of financial aid, irrespective of number of 
 21.22  hours of service per week; 
 21.23     (j) an individual who is employed for less than 300 hours 
 21.24  in a fiscal year as an instructor in an adult vocational 
 21.25  education program; 
 21.26     (k) an individual hired by the Board of Trustees of the 
 21.27  Minnesota State Colleges and Universities to teach one course 
 21.28  for three or fewer credits for one semester in a year; 
 21.29     (l) with respect to court employees: 
 21.30     (1) personal secretaries to judges; 
 21.31     (2) law clerks; 
 21.32     (3) managerial employees; 
 21.33     (4) confidential employees; and 
 21.34     (5) supervisory employees.; 
 21.35     (m) with respect to employees of Hennepin Healthcare 
 21.36  System, Inc., managerial, supervisory, and confidential 
 22.1   employees. 
 22.2      The following individuals are public employees regardless 
 22.3   of the exclusions of clauses (e) and (f):  
 22.4      (i) An employee hired by a school district or the Board of 
 22.5   Trustees of the Minnesota State Colleges and Universities except 
 22.6   at the university established in section 136F.13 or for 
 22.7   community services or community education instruction offered on 
 22.8   a noncredit basis:  (A) to replace an absent teacher or faculty 
 22.9   member who is a public employee, where the replacement employee 
 22.10  is employed more than 30 working days as a replacement for that 
 22.11  teacher or faculty member; or (B) to take a teaching position 
 22.12  created due to increased enrollment, curriculum expansion, 
 22.13  courses which are a part of the curriculum whether offered 
 22.14  annually or not, or other appropriate reasons; and 
 22.15     (ii) An employee hired for a position under clause (f)(1) 
 22.16  if that same position has already been filled under clause 
 22.17  (f)(1) in the same calendar year and the cumulative number of 
 22.18  days worked in that same position by all employees exceeds 67 
 22.19  calendar days in that year.  For the purpose of this paragraph, 
 22.20  "same position" includes a substantially equivalent position if 
 22.21  it is not the same position solely due to a change in the 
 22.22  classification or title of the position. 
 22.23     Sec. 3.  Minnesota Statutes 2004, section 179A.03, 
 22.24  subdivision 15, is amended to read: 
 22.25     Subd. 15.  [PUBLIC EMPLOYER OR EMPLOYER.] "Public employer" 
 22.26  or "employer" means:  
 22.27     (a) the state of Minnesota for employees of the state not 
 22.28  otherwise provided for in this subdivision or section 179A.10 
 22.29  for executive branch employees; 
 22.30     (b) the Board of Regents of the University of Minnesota for 
 22.31  its employees; 
 22.32     (c) the state court administrator for court employees; 
 22.33     (d) the state Board of Public Defense for its employees; 
 22.34  and 
 22.35     (e) Hennepin Healthcare System, Inc.; and 
 22.36     (f) notwithstanding any other law to the contrary, the 
 23.1   governing body of a political subdivision or its agency or 
 23.2   instrumentality which has final budgetary approval authority for 
 23.3   its employees.  However, the views of elected appointing 
 23.4   authorities who have standing to initiate interest arbitration, 
 23.5   and who are responsible for the selection, direction, 
 23.6   discipline, and discharge of individual employees shall be 
 23.7   considered by the employer in the course of the discharge of 
 23.8   rights and duties under sections 179A.01 to 179A.25.  
 23.9      When two or more units of government subject to sections 
 23.10  179A.01 to 179A.25 undertake a project or form a new agency 
 23.11  under law authorizing common or joint action, the employer is 
 23.12  the governing person or board of the created agency.  The 
 23.13  governing official or body of the cooperating governmental units 
 23.14  shall be bound by an agreement entered into by the created 
 23.15  agency according to sections 179A.01 to 179A.25.  
 23.16     "Public employer" or "employer" does not include a 
 23.17  "charitable hospital" as defined in section 179.35, subdivision 
 23.18  2.  
 23.19     Nothing in this subdivision diminishes the authority 
 23.20  granted pursuant to law to an appointing authority with respect 
 23.21  to the selection, direction, discipline, or discharge of an 
 23.22  individual employee if this action is consistent with general 
 23.23  procedures and standards relating to selection, direction, 
 23.24  discipline, or discharge which are the subject of an agreement 
 23.25  entered into under sections 179A.01 to 179A.25.  
 23.26     Sec. 4.  Minnesota Statutes 2004, section 179A.06, 
 23.27  subdivision 2, is amended to read: 
 23.28     Subd. 2.  [RIGHT TO ORGANIZE.] Public employees have the 
 23.29  right to form and join labor or employee organizations, and have 
 23.30  the right not to form and join such organizations.  Public 
 23.31  employees in an appropriate unit have the right by secret ballot 
 23.32  to designate an exclusive representative to negotiate grievance 
 23.33  procedures and the terms and conditions of employment with their 
 23.34  employer.  Confidential employees of the state, confidential 
 23.35  court employees, and confidential University of Minnesota 
 23.36  employees are excluded from bargaining.  Supervisory and 
 24.1   managerial court employees are excluded from 
 24.2   bargaining.  Supervisory, managerial, and confidential employees 
 24.3   of Hennepin Healthcare System, Inc., are excluded from 
 24.4   bargaining.  Other confidential employees, supervisory 
 24.5   employees, principals, and assistant principals may form their 
 24.6   own organizations.  An employer shall extend exclusive 
 24.7   recognition to a representative of or an organization of 
 24.8   supervisory or confidential employees, or principals and 
 24.9   assistant principals, for the purpose of negotiating terms or 
 24.10  conditions of employment, in accordance with sections 179A.01 to 
 24.11  179A.25, applicable to essential employees.  
 24.12     Supervisory or confidential employee organizations shall 
 24.13  not participate in any capacity in any negotiations which 
 24.14  involve units of employees other than supervisory or 
 24.15  confidential employees.  Except for organizations which 
 24.16  represent supervisors who are:  (1) firefighters, emergency 
 24.17  medical service employees certified under section 144E.28, 911 
 24.18  system public safety dispatchers, peace officers subject to 
 24.19  licensure under sections 626.84 to 626.863, guards at 
 24.20  correctional facilities, or employees at hospitals other than 
 24.21  state hospitals; and (2) not state or University of Minnesota 
 24.22  employees, a supervisory or confidential employee organization 
 24.23  which is affiliated with another employee organization which is 
 24.24  the exclusive representative of nonsupervisory or 
 24.25  nonconfidential employees of the same public employer shall not 
 24.26  be certified, or act as, an exclusive representative for the 
 24.27  supervisory or confidential employees.  For the purpose of this 
 24.28  subdivision, affiliation means either direct or indirect and 
 24.29  includes affiliation through a federation or joint body of 
 24.30  employee organizations. 
 24.31     Sec. 5.  [179A.40] [HENNEPIN HEALTHCARE SYSTEM, INC.] 
 24.32     Subdivision 1.  [UNITS.] The following are the appropriate 
 24.33  employee units of the Hennepin Healthcare System, Inc.  All 
 24.34  units shall exclude supervisors, managerial employees, and 
 24.35  confidential employees.  No additional units of Hennepin 
 24.36  Healthcare System, Inc., shall be eligible to be certified for 
 25.1   the purpose of meeting and negotiating with an exclusive 
 25.2   representative.  The units include all: 
 25.3      (1) registered nurses; 
 25.4      (2) physicians; 
 25.5      (3) professionals except for registered nurses and 
 25.6   physicians; 
 25.7      (4) technical and paraprofessional employees; 
 25.8      (5) carpenters, electricians, painters, and plumbers; 
 25.9      (6) health general service employees; 
 25.10     (7) interpreters; 
 25.11     (8) emergency medical technicians/emergency medical 
 25.12  dispatchers (EMT/EMD), and paramedics; 
 25.13     (9) bioelectronics specialists, bioelectronics technicians, 
 25.14  and electronics technicians; 
 25.15     (10) skilled maintenance employees; and 
 25.16     (11) clerical employees. 
 25.17     Subd. 2.  [NONCONFORMING UNITS.] Preexisting Hennepin 
 25.18  County Medical Center bargaining units covered by existing labor 
 25.19  agreements on the day following final enactment of this act that 
 25.20  do not conform to one of the 11 units described in subdivision 1 
 25.21  shall continue to be appropriate.  If an employee representative 
 25.22  seeks to represent employees who are residual to an existing 
 25.23  nonconforming unit, then all of the employees who are residual 
 25.24  to that unit shall be eligible to vote in an election conducted 
 25.25  by the commissioner.  An election shall be held when an employee 
 25.26  organization or group of employees files a petition for an 
 25.27  election and the petition is supported by a showing of interest 
 25.28  from 30 percent or more of the employees who are residual to an 
 25.29  existing nonconforming unit.  The employees who are residual to 
 25.30  an existing nonconforming unit shall be included within the 
 25.31  existing nonconforming unit if a majority of the eligible 
 25.32  employees who vote cast their ballots in favor of representation 
 25.33  during an election conducted by the commissioner.  Nothing shall 
 25.34  preclude an exclusive representative and Hennepin Health Care 
 25.35  System, Inc., or prior to the formation of the corporation 
 25.36  Hennepin County, from agreeing to an election conducted by the 
 26.1   commissioner or other appropriate procedure by which less than 
 26.2   all of the employees who are residual to an existing 
 26.3   nonconforming unit may be added to the unit. 
 26.4      Sec. 6.  Minnesota Statutes 2004, section 383B.117, 
 26.5   subdivision 2, is amended to read: 
 26.6      Subd. 2.  [EQUIPMENT ACQUISITION; CAPITAL NOTES.] The board 
 26.7   of the corporation may, by resolution and without public 
 26.8   referendum, issue capital notes within existing debt limits for 
 26.9   the purpose of purchasing ambulance and other medical equipment, 
 26.10  road construction or maintenance equipment, public safety 
 26.11  equipment and other capital equipment having an expected useful 
 26.12  life at least equal to the term of the notes issued.  The notes 
 26.13  shall be payable in not more than five years and shall be issued 
 26.14  on terms and in a manner as the board determines.  The total 
 26.15  principal amount of the notes issued for any fiscal year shall 
 26.16  not exceed one percent of the total annual budget for that year 
 26.17  and shall be issued solely for the purchases authorized in this 
 26.18  subdivision.  A tax levy shall be made for the payment of the 
 26.19  principal and interest on such notes as in the case of 
 26.20  bonds.  For purposes of this subdivision, the term "medical 
 26.21  equipment" includes computer hardware and software and other 
 26.22  intellectual property for use in medical diagnosis, medical 
 26.23  procedures, research, record keeping, billing, and other 
 26.24  hospital applications, together with application development 
 26.25  services and training related to the use of the computer 
 26.26  hardware and software and other intellectual property, all 
 26.27  without regard to their useful life.  For purposes of 
 26.28  determining the amount of capital notes which the county may 
 26.29  issue in any year, the budget of the county and Hennepin 
 26.30  Healthcare System, Inc. shall be combined and the notes issuable 
 26.31  under this subdivision shall be in addition to obligations 
 26.32  issuable under section 373.01, subdivision 3. 
 26.33     Sec. 7.  Minnesota Statutes 2004, section 383B.217, 
 26.34  subdivision 7, is amended to read: 
 26.35     Subd. 7.  [PURCHASES AND MARKETING PURCHASING, CONTRACTING, 
 26.36  MEETINGS, DATA.] (a) Contracting and purchasing made on behalf 
 27.1   of the Hennepin County Medical Center and its health maintenance 
 27.2   organization (HMO), ambulatory health center, or other clinics 
 27.3   authorized under section 383B.219, of goods, materials, 
 27.4   supplies, equipment, and services that are incidental to or that 
 27.5   are included as part of a contract for the purchase of goods, 
 27.6   materials, supplies, or equipment are specifically exempted from 
 27.7   sections 383B.141 to 383B.151 and 471.345 or other applicable 
 27.8   laws related to public procurement.  Contracting and purchasing 
 27.9   of services shall comply with sections 383B.141 to 383B.151 or 
 27.10  other applicable laws related to public procurement. 
 27.11     (b) Notwithstanding chapter 13D, the county board on behalf 
 27.12  of the medical center and HMO may meet in closed session to 
 27.13  discuss and take action on specific products or services that 
 27.14  are in direct competition with other providers of goods or 
 27.15  services in the public or private sector, if disclosure of 
 27.16  information pertaining to those matters would clearly harm the 
 27.17  competitive position of the medical center or HMO. 
 27.18     (c) The medical center and HMO shall inform the county 
 27.19  board when there are matters that are appropriate for discussion 
 27.20  or action under paragraph (b).  The county administrator or the 
 27.21  administrator's designee shall give the board an opinion on the 
 27.22  propriety of discussion or action under paragraph (b) for each 
 27.23  of the matters.  The county board may, by a majority vote in a 
 27.24  public meeting, decide to hold a closed meeting under paragraph 
 27.25  (b).  The purpose, time, and place of the meeting must be 
 27.26  announced at a public meeting.  A written roll of members 
 27.27  present at a closed meeting must be made available to the public 
 27.28  after the closed meeting.  The proceedings of a closed meeting 
 27.29  must be tape recorded at the expense of the county board and be 
 27.30  preserved for not less than five years after the meeting.  The 
 27.31  data on the tape are nonpublic data under section 13.02, 
 27.32  subdivision 9, until two years after the meeting.  A contract 
 27.33  entered into by the county board at a meeting held on behalf of 
 27.34  the medical center or HMO is subject to section 471.345.  All 
 27.35  bids and any related materials that are considered at the 
 27.36  meeting must be retained for a period of not less than five 
 28.1   years.  After the expiration of the term of any contract entered 
 28.2   into pursuant to this subdivision or a period of two years, 
 28.3   whichever is less, the contract, the bids, and any related 
 28.4   materials are public data.  The contract, the bids, and any 
 28.5   related materials are subject to review by the state auditor at 
 28.6   any time. 
 28.7      (d) Data concerning specific products or services that are 
 28.8   in direct competition with other providers of goods or services 
 28.9   in the public or private sector are trade secret information for 
 28.10  purposes of section 13.37, to the extent disclosure of 
 28.11  information pertaining to the matters would clearly harm the 
 28.12  competitive position of the medical center or HMO.  The data are 
 28.13  trade secret information for the term of the contract or a 
 28.14  two-year period, whichever is less.  
 28.15     (e) Notwithstanding section 471.345 or other applicable 
 28.16  law, the county board on behalf of the medical center, HMO, 
 28.17  ambulatory health center, or other clinics authorized under 
 28.18  section 383B.219, may contract, except for services, by any 
 28.19  means that the county board or at its direction the medical 
 28.20  center or HMO, ambulatory health center, or other clinics 
 28.21  authorized under section 383B.219, may determine.  When 
 28.22  contracting for services, the county board must comply with 
 28.23  sections 383B.141 to 383B.151 and other applicable law, except 
 28.24  that the board may contract with a private or public cooperative 
 28.25  purchasing organization if it can be established that the 
 28.26  purchasing organization's services that are purchased have been 
 28.27  awarded through a competitive or request for proposal process.  
 28.28     (f) This subdivision applies to the medical center, HMO, 
 28.29  ambulatory health centers, or other clinics authorized under 
 28.30  section 383B.219, as well as any other organization, 
 28.31  association, partnership, or corporation authorized by Hennepin 
 28.32  County under section 144.581. 
 28.33     Sec. 8.  [TRANSITION.] 
 28.34     Subdivision 1.  [INITIAL BOARD.] For the first three years, 
 28.35  the board of Hennepin Healthcare System, Inc., shall be governed 
 28.36  by a board of directors consisting of 13 directors appointed by 
 29.1   the county board according to the procedure specified in this 
 29.2   act. 
 29.3      Subd. 2.  [INITIAL HUMAN RESOURCES SYSTEM.] Input from 
 29.4   Hennepin County Medical Center employees shall be obtained prior 
 29.5   to the development of the human resources rules and policies for 
 29.6   the new corporation and the rules and policies shall be 
 29.7   finalized and the county board shall, by a single majority vote 
 29.8   without amendment, approve the rules and policies and ratify 
 29.9   labor agreements, prior to the county board's vote to file the 
 29.10  certificate of local approval. 
 29.11     Sec. 9.  [REPEALER.] 
 29.12     Minnesota Statutes 2004, section 383B.217, subdivisions 1, 
 29.13  2, 3, 4, 5, 6, and 8, are repealed. 
 29.14     Sec. 10.  [EFFECTIVE DATE.] 
 29.15     Sections 1 to 7 and 9 are effective on the date specified 
 29.16  in article 1, section 29, paragraph (b).  Section 8 is effective 
 29.17  the day following final enactment. 
 29.18                             ARTICLE 3 
 29.19                   CONFORMING RETIREMENT CHANGES 
 29.20     Section 1.  Minnesota Statutes 2004, section 353.01, 
 29.21  subdivision 2b, is amended to read: 
 29.22     Subd. 2b.  [EXCLUDED EMPLOYEES.] The following public 
 29.23  employees are not eligible to participate as members of the 
 29.24  association with retirement coverage by the public employees 
 29.25  retirement plan, the local government correctional employees 
 29.26  retirement plan under chapter 353E, or the public employees 
 29.27  police and fire retirement plan: 
 29.28     (1) public officers, other than county sheriffs, who are 
 29.29  elected to a governing body, or persons who are appointed to 
 29.30  fill a vacancy in an elective office of a governing body, whose 
 29.31  term of office commences on or after July 1, 2002, for the 
 29.32  service to be rendered in that elective position.  Elected 
 29.33  governing body officials who were active members of the 
 29.34  association's coordinated or basic retirement plans as of June 
 29.35  30, 2002, continue participation throughout incumbency in office 
 29.36  until termination of public service occurs as defined in 
 30.1   subdivision 11a; 
 30.2      (2) election officers or election judges; 
 30.3      (3) patient and inmate personnel who perform services for a 
 30.4   governmental subdivision; 
 30.5      (4) except as otherwise specified in subdivision 12a, 
 30.6   employees who are hired for a temporary position as defined 
 30.7   under subdivision 12a, and employees who resign from a 
 30.8   nontemporary position and accept a temporary position within 30 
 30.9   days in the same governmental subdivision; 
 30.10     (5) employees who are employed by reason of work emergency 
 30.11  caused by fire, flood, storm, or similar disaster; 
 30.12     (6) employees who by virtue of their employment in one 
 30.13  governmental subdivision are required by law to be a member of 
 30.14  and to contribute to any of the plans or funds administered by 
 30.15  the Minnesota State Retirement System, the Teachers Retirement 
 30.16  Association, the Duluth Teachers Retirement Fund Association, 
 30.17  the Minneapolis Teachers Retirement Fund Association, the St. 
 30.18  Paul Teachers Retirement Fund Association, the Minneapolis 
 30.19  Employees Retirement Fund, or any police or firefighters relief 
 30.20  association governed by section 69.77 that has not consolidated 
 30.21  with the Public Employees Retirement Association, or any local 
 30.22  police or firefighters consolidation account who have not 
 30.23  elected the type of benefit coverage provided by the public 
 30.24  employees police and fire fund under sections 353A.01 to 
 30.25  353A.10, or any persons covered by section 353.665, subdivision 
 30.26  4, 5, or 6, who have not elected public employees police and 
 30.27  fire plan benefit coverage.  This clause must not be construed 
 30.28  to prevent a person from being a member of and contributing to 
 30.29  the Public Employees Retirement Association and also belonging 
 30.30  to and contributing to another public pension plan or fund for 
 30.31  other service occurring during the same period of time.  A 
 30.32  person who meets the definition of "public employee" in 
 30.33  subdivision 2 by virtue of other service occurring during the 
 30.34  same period of time becomes a member of the association unless 
 30.35  contributions are made to another public retirement fund on the 
 30.36  salary based on the other service or to the Teachers Retirement 
 31.1   Association by a teacher as defined in section 354.05, 
 31.2   subdivision 2; 
 31.3      (7) persons who are members of a religious order and are 
 31.4   excluded from coverage under the federal Old Age, Survivors, 
 31.5   Disability, and Health Insurance Program for the performance of 
 31.6   service as specified in United States Code, title 42, section 
 31.7   410(a)(8)(A), as amended through January 1, 1987, if no 
 31.8   irrevocable election of coverage has been made under section 
 31.9   3121(r) of the Internal Revenue Code of 1954, as amended; 
 31.10     (8) employees of a governmental subdivision who have not 
 31.11  reached the age of 23 and are enrolled on a full-time basis to 
 31.12  attend or are attending classes on a full-time basis at an 
 31.13  accredited school, college, or university in an undergraduate, 
 31.14  graduate, or professional-technical program, or a public or 
 31.15  charter high school; 
 31.16     (9) resident physicians, medical interns, and pharmacist 
 31.17  residents and pharmacist interns who are serving in a degree or 
 31.18  residency program in public hospitals; 
 31.19     (10) students who are serving in an internship or residency 
 31.20  program sponsored by an accredited educational institution; 
 31.21     (11) persons who hold a part-time adult supplementary 
 31.22  technical college license who render part-time teaching service 
 31.23  in a technical college; 
 31.24     (12) except for employees of Hennepin County or Hennepin 
 31.25  Healthcare System, Inc., foreign citizens working for a 
 31.26  governmental subdivision with a work permit of less than three 
 31.27  years, or an H-1b visa valid for less than three years of 
 31.28  employment.  Upon notice to the association that the work permit 
 31.29  or visa extends beyond the three-year period, the foreign 
 31.30  citizens must be reported for membership from the date of the 
 31.31  extension; 
 31.32     (13) public hospital employees who elected not to 
 31.33  participate as members of the association before 1972 and who 
 31.34  did not elect to participate from July 1, 1988, to October 1, 
 31.35  1988; 
 31.36     (14) except as provided in section 353.86, volunteer 
 32.1   ambulance service personnel, as defined in subdivision 35, but 
 32.2   persons who serve as volunteer ambulance service personnel may 
 32.3   still qualify as public employees under subdivision 2 and may be 
 32.4   members of the Public Employees Retirement Association and 
 32.5   participants in the public employees retirement fund or the 
 32.6   public employees police and fire fund, whichever applies, on the 
 32.7   basis of compensation received from public employment service 
 32.8   other than service as volunteer ambulance service personnel; 
 32.9      (15) except as provided in section 353.87, volunteer 
 32.10  firefighters, as defined in subdivision 36, engaging in 
 32.11  activities undertaken as part of volunteer firefighter duties; 
 32.12  provided that a person who is a volunteer firefighter may still 
 32.13  qualify as a public employee under subdivision 2 and may be a 
 32.14  member of the Public Employees Retirement Association and a 
 32.15  participant in the public employees retirement fund or the 
 32.16  public employees police and fire fund, whichever applies, on the 
 32.17  basis of compensation received from public employment activities 
 32.18  other than those as a volunteer firefighter; 
 32.19     (16) pipefitters and associated trades personnel employed 
 32.20  by Independent School District No. 625, St. Paul, with coverage 
 32.21  under a collective bargaining agreement by the pipefitters local 
 32.22  455 pension plan who were either first employed after May 1, 
 32.23  1997, or, if first employed before May 2, 1997, elected to be 
 32.24  excluded under Laws 1997, chapter 241, article 2, section 12; 
 32.25     (17) electrical workers, plumbers, carpenters, and 
 32.26  associated trades personnel employed by Independent School 
 32.27  District No. 625, St. Paul, or the city of St. Paul, who have 
 32.28  retirement coverage under a collective bargaining agreement by 
 32.29  the Electrical Workers Local 110 pension plan, the United 
 32.30  Association Plumbers Local 34 pension plan, or the Carpenters 
 32.31  Local 87 pension plan who were either first employed after May 
 32.32  1, 2000, or, if first employed before May 2, 2000, elected to be 
 32.33  excluded under Laws 2000, chapter 461, article 7, section 5; 
 32.34     (18) bricklayers, allied craftworkers, cement masons, 
 32.35  glaziers, glassworkers, painters, allied tradesworkers, and 
 32.36  plasterers employed by the city of St. Paul or Independent 
 33.1   School District No. 625, St. Paul, with coverage under a 
 33.2   collective bargaining agreement by the Bricklayers and Allied 
 33.3   Craftworkers Local 1 pension plan, the Cement Masons Local 633 
 33.4   pension plan, the Glaziers and Glassworkers Local L-1324 pension 
 33.5   plan, the Painters and Allied Trades Local 61 pension plan, or 
 33.6   the Twin Cities Plasterers Local 265 pension plan who were 
 33.7   either first employed after May 1, 2001, or if first employed 
 33.8   before May 2, 2001, elected to be excluded under Laws 2001, 
 33.9   First Special Session chapter 10, article 10, section 6; 
 33.10     (19) plumbers employed by the Metropolitan Airports 
 33.11  Commission, with coverage under a collective bargaining 
 33.12  agreement by the Plumbers Local 34 pension plan, who either were 
 33.13  first employed after May 1, 2001, or if first employed before 
 33.14  May 2, 2001, elected to be excluded under Laws 2001, First 
 33.15  Special Session chapter 10, article 10, section 6; 
 33.16     (20) employees who are hired after June 30, 2002, to fill 
 33.17  seasonal positions under subdivision 12b which are limited in 
 33.18  duration by the employer to 185 consecutive calendar days or 
 33.19  less in each year of employment with the governmental 
 33.20  subdivision; 
 33.21     (21) persons who are provided supported employment or 
 33.22  work-study positions by a governmental subdivision and who 
 33.23  participate in an employment or industries program maintained 
 33.24  for the benefit of these persons where the governmental 
 33.25  subdivision limits the position's duration to three years or 
 33.26  less, including persons participating in a federal or state 
 33.27  subsidized on-the-job training, work experience, senior citizen, 
 33.28  youth, or unemployment relief program where the training or work 
 33.29  experience is not provided as a part of, or for, future 
 33.30  permanent public employment; 
 33.31     (22) independent contractors and the employees of 
 33.32  independent contractors; and 
 33.33     (23) reemployed annuitants of the association during the 
 33.34  course of that reemployment. 
 33.35     Sec. 2.  Minnesota Statutes 2004, section 353.01, 
 33.36  subdivision 2d, is amended to read: 
 34.1      Subd. 2d.  [OPTIONAL MEMBERSHIP.] (a) Membership in the 
 34.2   association is optional by action of the individual employee for 
 34.3   the following public employees who meet the conditions set forth 
 34.4   in subdivision 2a: 
 34.5      (1) members of the coordinated plan who are also employees 
 34.6   of labor organizations as defined in section 353.017, 
 34.7   subdivision 1, for their employment by the labor organization 
 34.8   only if they elect to have membership under section 353.017, 
 34.9   subdivision 2; 
 34.10     (2) persons who are elected or persons who are appointed to 
 34.11  elected positions other than local governing body elected 
 34.12  positions who elect to participate by filing a written election 
 34.13  for membership; 
 34.14     (3) members of the association who are appointed by the 
 34.15  governor to be a state department head and who elect not to be 
 34.16  covered by the general state employees retirement plan of the 
 34.17  Minnesota State Retirement System under section 352.021; 
 34.18     (4) city managers as defined in section 353.028, 
 34.19  subdivision 1, who do not elect to be excluded from membership 
 34.20  in the association under section 353.028, subdivision 2; and 
 34.21     (5) employees of the Port Authority of the city of St. Paul 
 34.22  who were at least age 45 on January 1, 2003, and who elect to 
 34.23  participate by filing a written election for membership. 
 34.24     (b) Membership in the association is optional by action of 
 34.25  the governmental subdivision for the employees of the following 
 34.26  governmental subdivisions under the conditions specified: 
 34.27     (1) the Minnesota Association of Townships if the board of 
 34.28  the association, at its option, certifies to the executive 
 34.29  director that its employees are to be included for purposes of 
 34.30  retirement coverage, in which case the status of the association 
 34.31  as a participating employer is permanent; and 
 34.32     (2) a county historical society if the county in which the 
 34.33  historical society is located, at its option, certifies to the 
 34.34  executive director that the employees of the historical society 
 34.35  are to be county employees for purposes of retirement coverage 
 34.36  under this chapter.  The status as a county employee must be 
 35.1   accorded to all similarly situated county historical society 
 35.2   employees and, once established, must continue as long as a 
 35.3   person is an employee of the county historical society; and 
 35.4      (3) Hennepin Healthcare System, Inc., a public corporation, 
 35.5   with respect to employees other than paramedics, emergency 
 35.6   medical technicians, and protection officers, if the corporate 
 35.7   board establishes alternative retirement plans for certain 
 35.8   classes of employees of the corporation and certifies the 
 35.9   employees to be excluded from future retirement coverage. 
 35.10     (c) For employees who are covered by paragraph (a), clause 
 35.11  (1), (2), or (3), or covered by paragraph (b), clause (1) or 
 35.12  (2), if the necessary membership election is not made, the 
 35.13  employee is excluded from retirement coverage under this 
 35.14  chapter.  For employees who are covered by paragraph (a), clause 
 35.15  (4), if the necessary election is not made, the employee must 
 35.16  become a member and have retirement coverage under this 
 35.17  chapter.  For employees specified in paragraph (b), clause (3), 
 35.18  membership continues until the exclusion option is exercised for 
 35.19  the designated class of employee.  The option to become a 
 35.20  member, once exercised under this subdivision, may not be 
 35.21  withdrawn until termination of public service as defined under 
 35.22  subdivision 11a. 
 35.23     Sec. 3.  Minnesota Statutes 2004, section 353.01, 
 35.24  subdivision 6, is amended to read: 
 35.25     Subd. 6.  [GOVERNMENTAL SUBDIVISION.] (a) "Governmental 
 35.26  subdivision" means a county, city, town, school district within 
 35.27  this state, or a department or unit of state government, or any 
 35.28  public body whose revenues are derived from taxation, fees, 
 35.29  assessments or from other sources. 
 35.30     (b) Governmental subdivision also means the Public 
 35.31  Employees Retirement Association, the League of Minnesota 
 35.32  Cities, the Association of Metropolitan Municipalities, public 
 35.33  hospitals owned or operated by, or an integral part of, a 
 35.34  governmental subdivision or governmental subdivisions, the 
 35.35  Association of Minnesota Counties, the Metropolitan Intercounty 
 35.36  Association, the Minnesota Municipal Utilities Association, the 
 36.1   Metropolitan Airports Commission, the Minneapolis Employees 
 36.2   Retirement Fund for employment initially commenced after June 
 36.3   30, 1979, the Range Association of Municipalities and Schools, 
 36.4   soil and water conservation districts, economic development 
 36.5   authorities created or operating under sections 469.090 to 
 36.6   469.108, the Port Authority of the city of St. Paul, the Spring 
 36.7   Lake Park Fire Department, incorporated, the Lake Johanna 
 36.8   Volunteer Fire Department, incorporated, the Red Wing 
 36.9   Environmental Learning Center, and the Dakota County 
 36.10  Agricultural Society, and Hennepin Healthcare System, Inc. 
 36.11     (c) Governmental subdivision does not mean any municipal 
 36.12  housing and redevelopment authority organized under the 
 36.13  provisions of sections 469.001 to 469.047; or any port authority 
 36.14  organized under sections 469.048 to 469.089 other than the Port 
 36.15  Authority of the city of St. Paul; or any hospital district 
 36.16  organized or reorganized prior to July 1, 1975, under sections 
 36.17  447.31 to 447.37 or the successor of the district, nor the 
 36.18  Minneapolis Community Development Agency.  
 36.19     Sec. 4.  Minnesota Statutes 2004, section 353.64, 
 36.20  subdivision 10, is amended to read: 
 36.21     Subd. 10.  [PENSION COVERAGE FOR HENNEPIN COUNTY HEALTHCARE 
 36.22  SYSTEM, INC.; PARAMEDICS AND EMERGENCY MEDICAL TECHNICIANS.] An 
 36.23  employee of Hennepin County Healthcare System, Inc. who is: 
 36.24     (1) certified as a paramedic or emergency medical 
 36.25  technician by the state under section 144E.28, subdivision 4; 
 36.26     (2) employed full time as a paramedic or emergency medical 
 36.27  technician by Hennepin County on or after the effective date 
 36.28  specified in Laws 1994, chapter 499, section 2; and 
 36.29     (3) not eligible after the effective date under Laws 1994, 
 36.30  chapter 499, section 2, for coverage under the agreement signed 
 36.31  between the state and the secretary of the federal Department of 
 36.32  Health and Human Services making the provisions of the federal 
 36.33  Old Age, Survivors, and Disability Insurance Act applicable to 
 36.34  paramedics and emergency medical technicians because the 
 36.35  person's position is excluded after that date from application 
 36.36  under United States Code, title 42, sections 418(d)(5)(A) and 
 37.1   418(d)(8)(D), and section 355.07; 
 37.2   is a member of the public employees police and fire fund under 
 37.3   sections 353.63 to 353.68.  
 37.4      Hennepin County Healthcare System, Inc. shall deduct the 
 37.5   employee contribution from the salary of each full-time Hennepin 
 37.6   County paramedic and emergency medical technician it employs as 
 37.7   required by section 353.65, subdivision 2, shall make the 
 37.8   employer contribution for each full-time Hennepin County 
 37.9   paramedic and emergency medical technician it employs as 
 37.10  required by section 353.65, subdivision 3, and shall meet the 
 37.11  employer recording and reporting requirements in section 353.65, 
 37.12  subdivision 4. 
 37.13     Sec. 5.  Minnesota Statutes 2004, section 353E.02, 
 37.14  subdivision 2a, is amended to read: 
 37.15     Subd. 2a.  [MEDICAL CENTER PROTECTION OFFICER.] (a) A 
 37.16  medical center protection officer, for purposes of subdivision 
 37.17  1, is a person whom the employer certifies: 
 37.18     (1) is employed by the Hennepin County Medical Center 
 37.19  Healthcare System, Inc. as a protection officer; 
 37.20     (2) is directly responsible for the direct security of the 
 37.21  medical center; 
 37.22     (3) is expected to respond to any incidents within the 
 37.23  medical center as part of the person's regular employment duties 
 37.24  and is trained to do so; and 
 37.25     (4) is a "public employee" as defined in section 353.01, 
 37.26  but is not a member of the public employees police and fire plan.
 37.27     (b) The certification required under paragraph (a) must be 
 37.28  made in writing on a form prescribed by the executive director 
 37.29  of the Public Employees Retirement Association. 
 37.30     Sec. 6.  Minnesota Statutes 2004, section 383B.46, is 
 37.31  amended to read: 
 37.32     383B.46 [SUPPLEMENTAL RETIREMENT ACCOUNT.] 
 37.33     Subdivision 1.  [ELIGIBILITY FOR COVERAGE.] Any person who 
 37.34  was employed by the county of Hennepin or its agencies, boards, 
 37.35  commissions, authorities and committees prior to before April 
 37.36  14, 1982, as an employee or an officer in the classified service 
 38.1   as defined in sections 383B.26 to 383B.42, or as an employee in 
 38.2   the unclassified service, and who has served for five years as a 
 38.3   county employee or an officer in the classified service, or as a 
 38.4   county employee in the unclassified service, which need not 
 38.5   necessarily be continuous, and which shall must include time 
 38.6   served as a county employee prior to before June 8, 1965, if the 
 38.7   person is an employee in the classified service, shall be of the 
 38.8   county or if the person is an employee of Hennepin Healthcare 
 38.9   System, Inc., is entitled to elect to obtain coverage by the 
 38.10  Hennepin County supplemental retirement program.  The election 
 38.11  to obtain coverage may be exercised only once and shall must be 
 38.12  exercised within 30 days of the date on which the person first 
 38.13  becomes entitled to elect to obtain coverage.  No person hired, 
 38.14  rehired, or reinstated by the county as an employee in the 
 38.15  classified or unclassified service on or after April 14, 
 38.16  1982, shall be is eligible for coverage by the Hennepin County 
 38.17  supplemental retirement program.  
 38.18     Subd. 2.  [ESTABLISHMENT OF ACCOUNT; CONTRIBUTIONS.] The 
 38.19  county of Hennepin or Hennepin Healthcare System, Inc., 
 38.20  whichever applies, shall deduct from the salary of every person 
 38.21  who is eligible for coverage and who elected to retain or obtain 
 38.22  coverage by the Hennepin County supplemental retirement program 
 38.23  a sum equal to one percent of the total salary of the 
 38.24  person.  Any classified or unclassified employee who is employed 
 38.25  in subsidized on-the-job training, work experience or public 
 38.26  service employment as an enrollee under the federal 
 38.27  Comprehensive Employment and Training Act shall not be included 
 38.28  in the supplemental retirement account from and after March 30, 
 38.29  1978 unless the employee has as of the later of March 30, 1978 
 38.30  or the date of employment sufficient service credit in the 
 38.31  public employees retirement fund or the Minneapolis municipal 
 38.32  employees retirement fund, whichever is applicable, to meet the 
 38.33  minimum vesting requirements for a deferred retirement annuity, 
 38.34  or the county agrees in writing to make the required employer 
 38.35  contributions on account of the individual from revenue sources 
 38.36  other than funds provided under the federal Comprehensive 
 39.1   Employment and Training Act, or the employee agrees in writing 
 39.2   to make the required employer contribution in addition to the 
 39.3   employee contribution.  The deduction shall be made in the same 
 39.4   manner as other retirement deductions are made from the salary 
 39.5   of the person.  An amount equal to the amounts deducted during 
 39.6   each payroll period shall must be contributed by the county of 
 39.7   Hennepin or Hennepin Healthcare System, Inc., whichever 
 39.8   applies.  The total amount deducted and contributed shall must 
 39.9   be deposited to the credit of the supplemental retirement 
 39.10  account in the treasury of the county of Hennepin.  The Hennepin 
 39.11  County supplemental retirement account is hereby established as 
 39.12  an account separate and distinct from other funds, accounts, or 
 39.13  assets of the county of Hennepin. 
 39.14     Sec. 7.  [EFFECTIVE DATE.] 
 39.15     Sections 1 to 6 are effective on the date specified in 
 39.16  article 1, section 29, paragraph (b).