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Minnesota Legislature

Office of the Revisor of Statutes

HF 857

as introduced - 88th Legislature (2013 - 2014) Posted on 02/25/2013 02:12pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to public pensions; imposing an insurance surcharge; modifying pension
aids; providing pension funding; amending Minnesota Statutes 2012, section
69.021, by adding a subdivision; proposing coding for new law in Minnesota
Statutes, chapter 297I.

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

Section 1.

Minnesota Statutes 2012, section 69.021, is amended by adding a
subdivision to read:


new text begin Subd. 12. new text end

new text begin Surcharge aid accounts. new text end

new text begin (a) A surcharge fire pension aid account is
established in the general fund to receive amounts as provided under section 297I.07,
subdivision 3, clause (1). The commissioner shall administer the account and allocate
money in the account as follows:
new text end

new text begin (1) the commissioner shall determine the increase in fire state aid for each recipient
under subdivision 7 if the money in the account was added to the entitlement amount of
fire state aid determined under subdivision 5, paragraph (a), for the fiscal year, and shall
pay the resulting increase in fire state aid for the fire departments that are members of
the voluntary statewide lump-sum volunteer firefighter retirement plan to the executive
director of the Public Employees Retirement Association for deposit in the applicable
accounts in the voluntary statewide lump-sum volunteer firefighter retirement fund; and
new text end

new text begin (2) the balance not paid under clause (1) must be paid as follows:
new text end

new text begin (i) one-third as additional fire state aid under subdivision 7 to municipalities and fire
departments other than those for which aid was paid under clause (1); and
new text end

new text begin (ii) two-thirds to the executive director of the Public Employees Retirement
Association for deposit as a supplemental state pension funding aid in the public
employees police and fire retirement fund established by section 353.65, subdivision 1.
new text end

new text begin (b) A surcharge police pension aid account is established in the general fund
to receive amounts as provided by section 297I.07, subdivision 3, clause (2). The
commissioner shall administer the account and allocate money in the account as follows:
new text end

new text begin (1) one-third to be distributed as police state aid as provided under subdivision 7a; and
new text end

new text begin (2) two-thirds to be apportioned, on the basis of the number of active police officers
certified for police state aid receipt under section 69.011, subdivisions 2 and 2b, between:
new text end

new text begin (i) the executive director of the Public Employees Retirement Association for
deposit as a supplemental state pension funding aid in the public employees police and fire
retirement fund established by section 353.65, subdivision 1; and
new text end

new text begin (ii) the executive director of the Minnesota State Retirement System for deposit as a
supplemental state pension funding aid in the state patrol retirement fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective beginning in the fiscal year beginning
July 1, 2013.
new text end

Sec. 2.

new text begin [297I.07] SURCHARGE ON HOMEOWNERS AND AUTO POLICIES.
new text end

new text begin Subdivision 1. new text end

new text begin Surcharge on policies. new text end

new text begin (a) Each licensed insurer engaged in writing
insurance shall collect a surcharge equal to $5 per calendar year for each policy issued
or renewed during that calendar year for:
new text end

new text begin (1) homeowners insurance authorized in section 60A.06, subdivision 1, clause
(1)(c); and
new text end

new text begin (2) automobile insurance as defined in section 65B.14, subdivision 2.
new text end

new text begin (b) The surcharge amount collected under this subdivision must not be considered
premium for any other purpose. The surcharge amount must be separately stated on either a
billing or policy declaration or document containing similar information sent to an insured.
new text end

new text begin Subd. 2. new text end

new text begin Collection and administration. new text end

new text begin The commissioner shall administer the
surcharge imposed by this section in the same manner as the taxes imposed by this chapter.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner shall deposit revenues from the
surcharge under this section as follows:
new text end

new text begin (1) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause
(1), in a surcharge fire pension aid account in the general fund; and
new text end

new text begin (2) amounts from the surcharge imposed under subdivision 1, paragraph (a), clause
(2), in a surcharge police pension aid account in the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for policies issued after June 30, 2013.
new text end