SF 2790

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

  1.1                          A bill for an act 
  1.2             relating to retirement; social security coverage for 
  1.3             public employees; recodifying social security coverage 
  1.4             provisions; amending Minnesota Statutes 2000, sections 
  1.5             355.01, subdivisions 1, 3, 6, 8, by adding 
  1.6             subdivisions; 355.02; 355.03; 355.05; 355.07; 355.08; 
  1.7             proposing coding for new law in Minnesota Statutes, 
  1.8             chapter 355; repealing Minnesota Statutes 2000, 
  1.9             sections 355.01, subdivisions 2, 4, 5, 9, 10; 355.11; 
  1.10            355.12; 355.13; 355.14; 355.15; 355.16; 355.17; 
  1.11            355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 
  1.12            355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 
  1.13            355.24; 355.25; 355.26; 355.27; 355.28; 355.281; 
  1.14            355.282; 355.283; 355.284; 355.285; 355.286; 355.287; 
  1.15            355.288; 355.29; 355.291; 355.292; 355.293; 355.294; 
  1.16            355.295; 355.296; 355.297; 355.298; 355.299; 355.30; 
  1.17            355.311; 355.391; 355.392; 355.393; 355.41; 355.42; 
  1.18            355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 
  1.19            355.50; 355.51; 355.52; 355.54; 355.55; 355.56; 
  1.20            355.57; 355.58; 355.59; 355.60; 355.61; 355.621; 
  1.21            355.622; 355.623; 355.624; 355.625; 355.626; 355.627; 
  1.22            355.628; 355.71; 355.72; 355.73; 355.74; 355.75; 
  1.23            355.76; 355.77; 355.78; 355.79; 355.80; 355.81; 355.90.
  1.24  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.25     Section 1.  Minnesota Statutes 2000, section 355.01, 
  1.26  subdivision 1, is amended to read: 
  1.27     Subdivision 1.  [IN GENERAL.] For the purposes of this 
  1.28  chapter, as amended, each of the terms defined in this section 
  1.29  have has the meanings meaning ascribed to them herein.  
  1.30     Sec. 2.  Minnesota Statutes 2000, section 355.01, is 
  1.31  amended by adding a subdivision to read: 
  1.32     Subd. 2a.  [CONSTITUTIONAL OFFICER.] "Constitutional 
  1.33  officer" means the governor, lieutenant governor, attorney 
  1.34  general, secretary of state, state auditor, and state treasurer 
  2.1   who is duly elected and who was sworn into office. 
  2.2      Sec. 3.  Minnesota Statutes 2000, section 355.01, is 
  2.3   amended by adding a subdivision to read: 
  2.4      Subd. 2b.  [DULUTH TEACHER.] "Duluth teacher" means a 
  2.5   person employed by independent school district No. 709, Duluth, 
  2.6   who holds a position covered by the Duluth teachers retirement 
  2.7   fund association established under chapter 354A. 
  2.8      Sec. 4.  Minnesota Statutes 2000, section 355.01, is 
  2.9   amended by adding a subdivision to read: 
  2.10     Subd. 2c.  [EDUCATIONAL EMPLOYEE.] "Educational employee" 
  2.11  means an employee of the state of Minnesota or of a public 
  2.12  subdivision of the state who performs services in a position 
  2.13  covered by the teachers retirement association under chapter 354.
  2.14     Sec. 5.  Minnesota Statutes 2000, section 355.01, is 
  2.15  amended by adding a subdivision to read: 
  2.16     Subd. 2d.  [EMPLOYEE.] "Employee" means a person employed 
  2.17  by the state of Minnesota or by a political subdivision of the 
  2.18  state and includes an officer of the state of Minnesota or of a 
  2.19  political subdivision of the state. 
  2.20     Sec. 6.  Minnesota Statutes 2000, section 355.01, is 
  2.21  amended by adding a subdivision to read: 
  2.22     Subd. 2e.  [EMPLOYEE TAX.] "Employee tax" means the tax 
  2.23  imposed by section 3101 of the Internal Revenue Code of 1986. 
  2.24     Sec. 7.  Minnesota Statutes 2000, section 355.01, 
  2.25  subdivision 3, is amended to read: 
  2.26     Subd. 3.  [EMPLOYMENT.] The term (a) "Employment" means any 
  2.27  service performed by an employee in the employ of the state, or 
  2.28  any political subdivision thereof, for such that employer, 
  2.29  except: 
  2.30     (1) service which in the absence of an agreement entered 
  2.31  into under this chapter, as amended, would constitute 
  2.32  "employment" as defined in the Social Security act; or 
  2.33     (2) service which under the Social Security Act may is not 
  2.34  permitted to be included in an agreement between the state and 
  2.35  the federal Secretary of Health, Education, and Welfare Human 
  2.36  Services entered into under this chapter, as amended.  
  3.1      (b) Service which under the Social Security Act may is 
  3.2   permitted to be included in an agreement only upon certification 
  3.3   by the governor in accordance with section 218(d) (3) of that 
  3.4   act shall must be included in the term "employment" if and when 
  3.5   the governor issues, with respect to such that service, a the 
  3.6   appropriate federal certificate to the federal Secretary of 
  3.7   Health, Education, and Welfare Human Services.  
  3.8      Sec. 8.  Minnesota Statutes 2000, section 355.01, is 
  3.9   amended by adding a subdivision to read: 
  3.10     Subd. 3a.  [FEDERAL INSURANCE CONTRIBUTIONS ACT.] "Federal 
  3.11  Insurance Contributions Act" means subchapters A and B of 
  3.12  chapter 21 of the Internal Revenue Code of 1986, as amended 
  3.13  through December 31, 2000. 
  3.14     Sec. 9.  Minnesota Statutes 2000, section 355.01, is 
  3.15  amended by adding a subdivision to read: 
  3.16     Subd. 3b.  [GOVERNMENTAL EMPLOYER.] "Governmental employer" 
  3.17  means any political subdivision as defined in section 218 of the 
  3.18  Social Security Act.  The term includes a city, county, town, 
  3.19  hospital district, or other body, politic and corporate, located 
  3.20  in Minnesota. 
  3.21     Sec. 10.  Minnesota Statutes 2000, section 355.01, is 
  3.22  amended by adding a subdivision to read: 
  3.23     Subd. 3c.  [HIGHER EDUCATION EMPLOYEE.] "Higher education 
  3.24  employee" means an employee of the state of Minnesota who 
  3.25  performs services in a Minnesota state colleges and universities 
  3.26  system in a position covered by the individual retirement 
  3.27  account plan under section 354B.21 and who remains a member of 
  3.28  the teachers retirement association for purposes of social 
  3.29  security coverage only. 
  3.30     Sec. 11.  Minnesota Statutes 2000, section 355.01, is 
  3.31  amended by adding a subdivision to read: 
  3.32     Subd. 3d.  [HOSPITAL EMPLOYEE.] "Hospital employee" means 
  3.33  an officer or employee of a public hospital who performs 
  3.34  services in a position covered by the public employees 
  3.35  retirement association under chapter 353. 
  3.36     Sec. 12.  Minnesota Statutes 2000, section 355.01, is 
  4.1   amended by adding a subdivision to read: 
  4.2      Subd. 3e.  [JUDGE.] "Judge" means a judge as defined in 
  4.3   section 490.121, subdivision 3. 
  4.4      Sec. 13.  Minnesota Statutes 2000, section 355.01, is 
  4.5   amended by adding a subdivision to read: 
  4.6      Subd. 3f.  [LEGISLATOR.] "Legislator" means a member of the 
  4.7   legislature who is duly elected and who was sworn into office. 
  4.8      Sec. 14.  Minnesota Statutes 2000, section 355.01, is 
  4.9   amended by adding a subdivision to read: 
  4.10     Subd. 3g.  [LOCAL GOVERNMENTAL SUBDIVISION.] "Local 
  4.11  governmental subdivision" means: 
  4.12     (1) a political subdivision as defined in section 218(b) of 
  4.13  the Social Security Act; 
  4.14     (2) an instrumentality of the state; 
  4.15     (3) an instrumentality of one or more of the political 
  4.16  subdivisions of the state, including the league of Minnesota 
  4.17  cities; 
  4.18     (4) an instrumentality of the state and one or more of its 
  4.19  political subdivisions; 
  4.20     (5) a governmental subdivision as defined in section 
  4.21  353.01, subdivision 6; and 
  4.22     (6) any instrumentality established under a joint powers 
  4.23  agreement under section 471.59 wherein the instrumentality is 
  4.24  responsible for the employment and the payment of the salaries 
  4.25  of the employees of the instrumentality. 
  4.26     Sec. 15.  Minnesota Statutes 2000, section 355.01, is 
  4.27  amended by adding a subdivision to read: 
  4.28     Subd. 3h.  [MINNEAPOLIS TEACHER.] "Minneapolis teacher" 
  4.29  means a person employed by special school district No. 1, 
  4.30  Minneapolis, who holds a position covered by the Minneapolis 
  4.31  teachers retirement fund association established under chapter 
  4.32  354A. 
  4.33     Sec. 16.  Minnesota Statutes 2000, section 355.01, is 
  4.34  amended by adding a subdivision to read: 
  4.35     Subd. 3i.  [POLITICAL SUBDIVISION.] "Political subdivision" 
  4.36  means any political subdivision as defined in section 218(b) of 
  5.1   the Social Security Act, and includes any instrumentality of the 
  5.2   state, any instrumentality of one or more of its political 
  5.3   subdivisions, including the league of Minnesota municipalities, 
  5.4   any instrumentality of the state and one or more of its 
  5.5   political subdivisions, and an instrumentality established under 
  5.6   a joint powers agreement under section 471.59, wherein the 
  5.7   instrumentality is responsible for the employment and payment of 
  5.8   the salaries of employees of the instrumentality. 
  5.9      Sec. 17.  Minnesota Statutes 2000, section 355.01, is 
  5.10  amended by adding a subdivision to read: 
  5.11     Subd. 3j.  [PUBLIC EMPLOYEE.] "Public employee" means an 
  5.12  officer or an employee of a local governmental subdivision of 
  5.13  the state who performs services in a position covered by the 
  5.14  public employees retirement association established under 
  5.15  chapter 353. 
  5.16     Sec. 18.  Minnesota Statutes 2000, section 355.01, is 
  5.17  amended by adding a subdivision to read: 
  5.18     Subd. 3k.  [PUBLIC HOSPITAL.] "Public hospital" means a 
  5.19  hospital that is owned or operated by a governmental employer or 
  5.20  a combination of governmental employers, or a hospital that is 
  5.21  an integral part of a governmental employer or of a combination 
  5.22  of governmental employers. 
  5.23     Sec. 19.  Minnesota Statutes 2000, section 355.01, is 
  5.24  amended by adding a subdivision to read: 
  5.25     Subd. 3l.  [ST. PAUL TEACHER.] "St. Paul teacher" means a 
  5.26  person employed by independent school district No. 625, St. 
  5.27  Paul, who holds a position covered by the St. Paul teachers 
  5.28  retirement fund association established under chapter 354A. 
  5.29     Sec. 20.  Minnesota Statutes 2000, section 355.01, 
  5.30  subdivision 6, is amended to read: 
  5.31     Subd. 6.  [SECRETARY OF HEALTH AND HUMAN SERVICES.] The 
  5.32  term "Secretary of Health, Education, and Welfare Human Services"
  5.33  means the secretary of the federal Department of Health and 
  5.34  Human Services and includes any individual to whom the Secretary 
  5.35  of Health, Education, and Welfare Human Services has delegated 
  5.36  any functions under the Social Security Act with respect to 
  6.1   coverage under such act of employees of states and their 
  6.2   political subdivisions.  
  6.3      Sec. 21.  Minnesota Statutes 2000, section 355.01, 
  6.4   subdivision 8, is amended to read: 
  6.5      Subd. 8.  [SOCIAL SECURITY ACT.] The term "Social Security 
  6.6   Act" means the Act of Congress approved August 14, 1935, chapter 
  6.7   531, Statutes at Large, volume 49, page 620, officially cited as 
  6.8   the "Social Security Act," as such act has been and may from 
  6.9   time to time be amended (including the relevant regulations and 
  6.10  requirements issued pursuant thereto).  
  6.11     Sec. 22.  Minnesota Statutes 2000, section 355.01, is 
  6.12  amended by adding a subdivision to read: 
  6.13     Subd. 11.  [SPECIAL AUTHORITY OR DISTRICT.] "Special 
  6.14  authority or district" means a municipal housing and 
  6.15  redevelopment authority organized under sections 469.001 to 
  6.16  469.047, a soil and water conservation district organized under 
  6.17  chapter 103C, a port authority organized under sections 469.048 
  6.18  to 469.068, an economic development authority organized under 
  6.19  sections 469.090 to 469.108, or a hospital district organized or 
  6.20  reorganized under sections 447.31 to 447.37. 
  6.21     Sec. 23.  Minnesota Statutes 2000, section 355.01, is 
  6.22  amended by adding a subdivision to read: 
  6.23     Subd. 12.  [SPECIAL AUTHORITY OR DISTRICT 
  6.24  EMPLOYEE.] "Special authority or district employee" means an 
  6.25  employee, other than an elected official, of a municipal housing 
  6.26  and redevelopment authority organized under sections 469.001 to 
  6.27  469.047, of a soil and water conservation district organized 
  6.28  under chapter 103C, of a port authority organized under sections 
  6.29  469.048 to 469.068, of an economic development authority 
  6.30  organized under sections 469.090 to 469.108, or of a hospital 
  6.31  district organized or reorganized under sections 447.31 to 
  6.32  447.37. 
  6.33     Sec. 24.  Minnesota Statutes 2000, section 355.01, is 
  6.34  amended by adding a subdivision to read: 
  6.35     Subd 13.  [STATE AGENCY.] "State agency" means the 
  6.36  commissioner of employee relations. 
  7.1      Sec. 25.  Minnesota Statutes 2000, section 355.01, is 
  7.2   amended by adding a subdivision to read: 
  7.3      Subd. 14.  [STATE EMPLOYEE.] "State employee" means an 
  7.4   employee of the state of Minnesota or of a political subdivision 
  7.5   who performs services in a position covered by the general state 
  7.6   employees retirement system of the Minnesota state retirement 
  7.7   system governed by chapter 352, except any position for which 
  7.8   the compensation is on a fee basis. 
  7.9      Sec. 26.  Minnesota Statutes 2000, section 355.01, is 
  7.10  amended by adding a subdivision to read: 
  7.11     Subd. 15.  [WAGES.] "Wages" means all remuneration for 
  7.12  employment, including the cash value of all remuneration paid in 
  7.13  any medium other than cash.  The term does not include that part 
  7.14  of the remuneration which, even if it were for employment within 
  7.15  the meaning of the Federal Insurance Contributions Act, would 
  7.16  not constitute wages within the meaning of that act. 
  7.17     Sec. 27.  Minnesota Statutes 2000, section 355.02, is 
  7.18  amended to read: 
  7.19     355.02 [AGREEMENTS.] 
  7.20     Subdivision 1.  [GENERAL AUTHORITY.] (a) The state agency, 
  7.21  with the approval of the governor, is hereby authorized to enter 
  7.22  into an agreement on behalf of the state with the federal 
  7.23  Secretary of Health, Education, and Welfare Human Services, 
  7.24  consistent with the terms and provisions of this chapter, as 
  7.25  amended, for the purpose of extending the benefits of the 
  7.26  federal old age and, survivors, and disability insurance system 
  7.27  to employees of the state or any political subdivision thereof 
  7.28  with respect to services specified in such the agreement which 
  7.29  constitute "employment," whenever so specifically authorized by 
  7.30  the statutory provisions of this state pertaining to any 
  7.31  coverage group of such employees to which the agreement may 
  7.32  become applicable under the Social Security Act.  
  7.33     Pursuant to such (b) Under this specific authorization the 
  7.34  agreement may contain such those provisions relating to 
  7.35  coverage, benefits, contributions, effective date, modification 
  7.36  and termination of the agreement, administration, and other 
  8.1   appropriate provisions as the state agency and the federal 
  8.2   Secretary of Health, Education, and Welfare Human Services shall 
  8.3   agree upon, but, except as may be otherwise required by or under 
  8.4   the Social Security Act as to the services to be covered, such 
  8.5   agreement shall must provide in effect that: 
  8.6      (1) benefits will be provided for employees whose services 
  8.7   are covered by the agreement (and their dependents and 
  8.8   survivors) on the same basis as though such those services 
  8.9   constituted employment within the meaning of title II of the 
  8.10  Social Security Act; 
  8.11     (2) the state or other employer will pay to the federal 
  8.12  Secretary of the Treasury, at such time or times as may be 
  8.13  prescribed under the Social Security Act, contributions with 
  8.14  respect to wages, equal to the sum of the taxes which would be 
  8.15  imposed by the Federal Insurance Contributions Act if the 
  8.16  services covered by the agreement constituted employment within 
  8.17  the meaning of that act; 
  8.18     (3) Such the agreement shall be is effective with respect 
  8.19  to services in employment covered by the agreement performed 
  8.20  after a date specified therein but in no event may it be 
  8.21  effective with respect to any such services performed prior to 
  8.22  the first day of the calendar year in which such agreement is 
  8.23  entered into or in which the modification of the agreement 
  8.24  making it applicable to such services, is entered into except 
  8.25  that an agreement or modification entered into prior to January 
  8.26  1, 1960, may be effective with respect to services performed 
  8.27  after December 31, 1955, or after a later date specified in such 
  8.28  agreement or modification; and 
  8.29     (4) all services which constitute employment and are 
  8.30  performed in the employ of the state or any of its political 
  8.31  subdivisions by employees thereof, may be covered by such the 
  8.32  agreement whenever so specifically authorized by the statutory 
  8.33  provisions of this state pertaining to any coverage group of 
  8.34  such employees to which the agreement may become applicable 
  8.35  under the Social Security Act.  
  8.36     Subd. 2.  [INTERSTATE INSTRUMENTALITY.] (a) Any 
  9.1   instrumentality jointly created by this state and any other 
  9.2   state or states is hereby authorized, upon the granting of like 
  9.3   authority by such the other state or states, to: 
  9.4      (1) to enter into an agreement with the federal Secretary 
  9.5   of Health, Education, and Welfare Human Services whereby the 
  9.6   benefits of the federal old age and, survivors, and disability 
  9.7   insurance system shall be are extended to employees of such the 
  9.8   instrumentality,; 
  9.9      (2) to require its employees to pay (and for that purpose 
  9.10  to deduct from their wages) contributions equal to the amounts 
  9.11  which they would be required to pay under section 355.03, 
  9.12  subdivision 1, if they were covered by an agreement made 
  9.13  pursuant to under subdivision 1,; and 
  9.14     (3) to make payments to the federal Secretary of the 
  9.15  Treasury in accordance with such that agreement, including 
  9.16  payments from its own funds, and otherwise to comply with such 
  9.17  those agreements.  Such 
  9.18     (b) The agreements shall must, to the extent practicable, 
  9.19  be consistent with the terms and provisions of subdivision 1 and 
  9.20  other provisions of this chapter, as amended. 
  9.21     Subd. 3.  [GROUPS COVERED BY SOCIAL SECURITY.] The 
  9.22  following groups must be covered by an agreement or a 
  9.23  modification to an agreement between the state agency and the 
  9.24  federal Secretary of Health and Human Services: 
  9.25     (1) constitutional officers; 
  9.26     (2) Duluth teachers; 
  9.27     (3) educational employees; 
  9.28     (4) higher education employees; 
  9.29     (5) hospital employees; 
  9.30     (6) judges; 
  9.31     (7) legislators; 
  9.32     (8) Minneapolis teachers; 
  9.33     (9) public employees; 
  9.34     (10) St. Paul teachers; 
  9.35     (11) special authority or district employees; and 
  9.36     (12) state employees. 
 10.1      Sec. 28.  Minnesota Statutes 2000, section 355.03, is 
 10.2   amended to read: 
 10.3      355.03 [EMPLOYEES AND EMPLOYERS, CONTRIBUTIONS.] 
 10.4      Subdivision 1.  [EMPLOYEE CONTRIBUTION AMOUNT.] Every 
 10.5   employee of the state, or of any of its political subdivisions, 
 10.6   whose services are covered by the agreement entered into under 
 10.7   section 355.02 shall be required to must pay for the period 
 10.8   of such the coverage, into the contribution fund established by 
 10.9   section 355.04, contributions, with respect to wages, equal to 
 10.10  the amount of the employee's tax which would be imposed by the 
 10.11  Federal Insurance Contributions Act if such those services 
 10.12  constituted employment within the meaning of that act.  
 10.13  Such This liability shall arise arises in consideration of the 
 10.14  employee's retention in the service of the state, or any of its 
 10.15  political subdivisions, or the employee's entry upon such that 
 10.16  service, after the enactment of this chapter, as amended. 
 10.17     Subd. 2.  [EMPLOYEE DEDUCTION.] The contribution imposed by 
 10.18  this section shall must be collected by the covered employee's 
 10.19  employer by deducting the amount of the contribution from wages 
 10.20  as and when paid, but.  The failure to make such deduction shall 
 10.21  not relieve the employee from liability for such contribution.  
 10.22     Subd. 2a.  [EMPLOYER CONTRIBUTION.] (a) Employer 
 10.23  contributions that are required under the agreement must be paid 
 10.24  by the applicable employing unit. 
 10.25     (b) Employer contributions on behalf of St. Paul teachers, 
 10.26  Duluth teachers, Minneapolis teachers, or education employees 
 10.27  may be paid from normal school operating funds.  Employer 
 10.28  contributions on behalf of state employees must be paid by the 
 10.29  applicable department or agency from its appropriation or other 
 10.30  revenue, in the same proportion as salaries are paid, and must 
 10.31  be charged as an administrative cost of the state governmental 
 10.32  unit. 
 10.33     (c) Employing units may pay the employer contribution from 
 10.34  taxes collected or from other governmental revenue.  An 
 10.35  employing unit may include in its tax levy the amount necessary 
 10.36  to pay its social security obligations.  If the taxes authorized 
 11.1   to be levied cause the total levy amount to exceed any 
 11.2   limitation on the power of the employing unit to levy taxes, the 
 11.3   unit may still levy the necessary amount.  The employing unit, 
 11.4   in the event of a deficit, may issue debt obligations, payable 
 11.5   in not more than two years, in an amount which may cause its 
 11.6   indebtedness to exceed any limitation without holding an 
 11.7   election and may levy taxes to amortize the indebtedness.  The 
 11.8   authorized social security expenditures must not be included in 
 11.9   computing the cost of government for purposes of any home rule 
 11.10  charter or other charter. 
 11.11     (d) If the required employer contribution for social 
 11.12  security is increased and, as a result of that increase, there 
 11.13  is insufficient money available to a state governmental unit, 
 11.14  there is appropriated to the state department or agency from the 
 11.15  general fund the amount required to meet the deficiency, based 
 11.16  on certifications from the commissioner of employee relations to 
 11.17  the commissioner of finance.  The transfer of the appropriated 
 11.18  amount may only occur after the commissioner of finance notifies 
 11.19  the chair and ranking minority member of the house committee on 
 11.20  ways and means and the chair and ranking minority member of the 
 11.21  senate state government finance committee of the amount to be 
 11.22  transferred. 
 11.23     (e) For members of the general state employees retirement 
 11.24  plan of the Minnesota state retirement system who are employed 
 11.25  by the state horticultural society, the department of Minnesota 
 11.26  for the disabled American veterans organization, the department 
 11.27  of Minnesota of the veterans of foreign wars organization, the 
 11.28  Minnesota crop improvement association, the Minnesota historical 
 11.29  society, the armory building commission, and the 
 11.30  Minnesota-Wisconsin-Minneapolis-St. Paul survival plan project, 
 11.31  the applicable employing unit must pay the employer contribution 
 11.32  from any revenue source that it has. 
 11.33     Subd. 3.  [ADJUSTMENTS; REFUNDS.] If more or less than the 
 11.34  correct amount of the contribution imposed by this section is 
 11.35  paid or deducted with respect to any remuneration, proper 
 11.36  adjustments, or refund if adjustment is impracticable, shall 
 12.1   must be made, without interest, in such manner and at such times 
 12.2   as the state agency shall prescribe prescribes.  
 12.3      Subd. 4.  [DELINQUENT PAYMENTS.] Delinquent payments that 
 12.4   are due under this chapter, with compound interest at the rate 
 12.5   of six percent per annum, may be recovered by legal action in a 
 12.6   court of competent jurisdiction against an employing unit that 
 12.7   is liable for the amount.  The state agency may request that the 
 12.8   delinquent payment and interest amount be deducted from any 
 12.9   other money that is payable to the applicable employing unit by 
 12.10  any department or agency of the state.  An action for the 
 12.11  recovery of delinquent payments is not subject to any statutory 
 12.12  provision that would otherwise limit the time within which an 
 12.13  action may be commenced. 
 12.14     Sec. 29.  [355.035) [REIMBURSEMENT BY EMPLOYING UNITS.] 
 12.15     An employing unit which employs a member of a covered group 
 12.16  must reimburse the state agency for its pro rata share of the 
 12.17  cost of the administration of the agency with respect to social 
 12.18  security coverage in accordance with the rules of the state 
 12.19  agency pertaining to this reimbursement.  
 12.20     Sec. 30.  [355.036] [REPORTS.] 
 12.21     An employing unit which employs a member of a covered group 
 12.22  must make any reports in the form required and must include the 
 12.23  information that the state agency requires.  An employing unit 
 12.24  also must comply with the reporting requirements that the state 
 12.25  agency or the federal Secretary of Health and Human Services may 
 12.26  from time to time determine are necessary to ensure the 
 12.27  correctness and verification of relevant information. 
 12.28     Sec. 31.  [355.037] [PROCEEDS OF SPECIAL BENEFIT TAXES.] 
 12.29     The proceeds of the special benefit taxes that are 
 12.30  authorized to be levied for redevelopment purposes under section 
 12.31  469.033, subdivision 6, may be used to defray all or part of the 
 12.32  costs incurred by any housing and redevelopment authority under 
 12.33  this chapter. 
 12.34     Sec. 32.  Minnesota Statutes 2000, section 355.05, is 
 12.35  amended to read: 
 12.36     355.05 [RULES.] 
 13.1      The state agency shall make and publish such may promulgate 
 13.2   those rules, not inconsistent with the provisions of this 
 13.3   chapter, as amended, as it finds necessary or appropriate to the 
 13.4   efficient administration of the functions with which it is 
 13.5   charged under this chapter, as amended. 
 13.6      Sec. 33.  Minnesota Statutes 2000, section 355.07, is 
 13.7   amended to read: 
 13.8      355.07 [DECLARATION OF POLICY.] 
 13.9      (a) In order to extend to employees of the state and, its 
 13.10  political subdivisions, and its other governmental employers, 
 13.11  and to the dependents and survivors of such the employees of 
 13.12  those employing units, the basic protection accorded to others 
 13.13  by the old age and, survivors, and disability insurance system 
 13.14  embodied in the Social Security Act, it is hereby declared to be 
 13.15  the policy of the legislature, subject to the limitations of 
 13.16  this chapter, that these steps are taken to provide protection 
 13.17  to employees of the state and its political subdivisions on as 
 13.18  broad a basis as may be authorized by the legislature and is 
 13.19  permitted under the Social Security Act.  
 13.20     (b) It is also the policy of the legislature that the 
 13.21  protection afforded employees in positions covered by a 
 13.22  retirement system on the date an agreement under this chapter is 
 13.23  made applicable to service performed in those positions, or 
 13.24  receiving periodic benefits under the retirement system at that 
 13.25  time, will not be impaired as a result of making the agreement 
 13.26  so applicable or as a result of legislative enactment in 
 13.27  anticipation thereof when combined with the benefits accorded 
 13.28  the employee by the Social Security Act.  
 13.29     (c) To this end, the agreement referred to in section 
 13.30  355.02 shall must not be made applicable to any service 
 13.31  performed in any position covered by a retirement system unless 
 13.32  a referendum is first held by secret ballot in which a majority 
 13.33  of "eligible employees," as defined in section 218(d) (3) of the 
 13.34  Social Security Act, vote in favor thereof, or unless a 
 13.35  retirement system is divided in two divisions or parts, one of 
 13.36  which is composed of positions of members of the system who 
 14.1   desire coverage and one of which is composed of positions of 
 14.2   members of the system who do not desire coverage under section 
 14.3   218(d) (3) of the Social Security Act, in accordance with 
 14.4   subsections (6) and (7) thereof.  
 14.5      (d) Nothing in any provision of this chapter shall 
 14.6   authorize authorizes the extension of the insurance system 
 14.7   established by this chapter, as amended, to service in any 
 14.8   police officer's or firefighter's position or in any position 
 14.9   covered by a retirement system applicable exclusively to 
 14.10  positions in one or more law enforcement or fire fighting units, 
 14.11  agencies or departments.  
 14.12     Sec. 34.  Minnesota Statutes 2000, section 355.08, is 
 14.13  amended to read: 
 14.14     355.08 [APPLICATION OF SOCIAL SECURITY ACT.] 
 14.15     The provisions of the Social Security Act, and all acts 
 14.16  amendatory thereof, shall govern relative to employees of the 
 14.17  state and, its political subdivisions, and its other 
 14.18  governmental employers subject to Minnesota Statutes, this 
 14.19  chapter 355, as amended, anything in said this chapter to the 
 14.20  contrary notwithstanding.  
 14.21     Sec. 35.  [355.091] [DIVISION OF RETIREMENT PLANS.] 
 14.22     (a) The public retirement plans enumerated in paragraph (b) 
 14.23  must be divided into two parts in accordance with section 
 14.24  218(d)(6)(c) of the Social Security Act, with one part composed 
 14.25  of plan members who did not elect social security coverage in 
 14.26  the applicable referendum and the other part composed of plan 
 14.27  members who did elect social security coverage in the applicable 
 14.28  referendum. 
 14.29     (b) The applicable public retirement plans are: 
 14.30     (1) the elective state officers retirement plan; 
 14.31     (2) the judges retirement plan; 
 14.32     (3) the legislators retirement plan; 
 14.33     (4) the Minneapolis teachers retirement fund association; 
 14.34     (5) the general employees retirement plan of the public 
 14.35  employees retirement association; 
 14.36     (6) the St. Paul teachers retirement fund association; and 
 15.1      (7) the teachers retirement association. 
 15.2      (c) Plan participants and persons electing participation 
 15.3   under section 354B.21 remain members of the teachers retirement 
 15.4   association for purposes of social security coverage only, and 
 15.5   remain covered by the applicable agreement entered into under 
 15.6   section 355.01, but are not members of the teachers retirement 
 15.7   association for any other purpose while employed in covered 
 15.8   employment. 
 15.9      Sec. 36.  [REPEALER.] 
 15.10     Minnesota Statutes 2000, sections 355.01, subdivisions 2, 
 15.11  4, 5, 9, and 10; 355.11; 355.12; 355.13; 355.14; 355.15; 355.16; 
 15.12  355.17; 355.201; 355.202; 355.203; 355.204; 355.205; 355.206; 
 15.13  355.207; 355.208; 355.209; 355.21; 355.22; 355.23; 355.24; 
 15.14  355.25; 355.26; 355.27; 355.28; 355.281; 355.282; 355.283; 
 15.15  355.284; 355.285; 355.286; 355.287; 355.288; 355.29; 355.291; 
 15.16  355.292; 355.293; 355.294; 355.295; 355.296; 355.297; 355.298; 
 15.17  355.299; 355.30; 355.311; 355.391; 355.392; 355.393; 355.41; 
 15.18  355.42; 355.43; 355.44; 355.45; 355.46; 355.48; 355.49; 355.50; 
 15.19  355.51; 355.52; 355.54; 355.55; 355.56; 355.57; 355.58; 355.59; 
 15.20  355.60; 355.61; 355.621; 355.622; 355.623; 355.624; 355.625; 
 15.21  355.626; 355.627; 355.628; 355.71; 355.72; 355.73; 355.74; 
 15.22  355.75; 355.76; 355.77; 355.78; 355.79; 355.80; 355.81; and 
 15.23  355.90, are repealed. 
 15.24     Sec. 37.  [EFFECTIVE DATE.] 
 15.25     Sections 1 to 36 are effective on July 1, 2002.