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Minnesota Legislature

Office of the Revisor of Statutes

SF 3771

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - as introduced

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A bill for an act
relating to fire aid; changing the definition of market value for purposes of the fire
aid distribution formula; amending Minnesota Statutes 2004, sections 69.011,
subdivision 1; 69.021, subdivision 7.

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

Section 1.

Minnesota Statutes 2004, section 69.011, subdivision 1, is amended to read:


Subdivision 1.

Definitions.

Unless the language or context clearly indicates that a
different meaning is intended, the following words and terms shall for the purposes of this
chapter and chapters 423, 423A, 424 and 424A have the meanings ascribed to them:

(a) "Commissioner" means the commissioner of revenue.

(b) "Municipality" means:

(1) a home rule charter or statutory city;

(2) an organized town;

(3) a park district subject to chapter 398;

(4) the University of Minnesota;

(5) for purposes of the fire state aid program only, an American Indian tribal
government entity located within a federally recognized American Indian reservation;

(6) for purposes of the police state aid program only, an American Indian tribal
government with a tribal police department which exercises state arrest powers under
section 626.90, 626.91, 626.92, or 626.93;

(7) for purposes of the police state aid program only, the Metropolitan Airports
Commission with respect to peace officers covered under chapter 422A; and

(8) for purposes of the police state aid program only, the Department of Natural
Resources and the Department of Public Safety with respect to peace officers covered
under chapter 352B.

(c) "Minnesota Firetown Premium Report" means a form prescribed by the
commissioner containing space for reporting by insurers of fire, lightning, sprinkler
leakage and extended coverage premiums received upon risks located or to be performed
in this state less return premiums and dividends.

(d) "Firetown" means the area serviced by any municipality having a qualified fire
department or a qualified incorporated fire department having a subsidiary volunteer
firefighters' relief association.

(e) "Market value" means new text beginthe sum of:
new text end

new text begin (1) the new text endlatest available market value of all property in a taxing jurisdiction, whether
the property is subject to taxation, or exempt from ad valorem taxation obtained from
information which appears on abstracts filed with the commissioner of revenue or
equalized by the State Board of Equalizationnew text begin; and
new text end

new text begin (2) the quotient resulting from (i) the taxes paid in the preceding calendar year in
lieu of property taxes but not included in clause (1), including but not limited to the wind
energy production tax under chapter 272 and the taconite production tax under chapter
298, divided by (ii) three percent
new text end.

(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the
commissioner for reporting by each fire and casualty insurer of all premiums received
upon direct business received by it in this state, or by its agents for it, in cash or otherwise,
during the preceding calendar year, with reference to insurance written for insuring against
the perils contained in auto insurance coverages as reported in the Minnesota business
schedule of the annual financial statement which each insurer is required to file with
the commissioner in accordance with the governing laws or rules less return premiums
and dividends.

(g) "Peace officer" means any person:

(1) whose primary source of income derived from wages is from direct employment
by a municipality or county as a law enforcement officer on a full-time basis of not less
than 30 hours per week;

(2) who has been employed for a minimum of six months prior to December 31
preceding the date of the current year's certification under subdivision 2, clause (b);

(3) who is sworn to enforce the general criminal laws of the state and local
ordinances;

(4) who is licensed by the Peace Officers Standards and Training Board and is
authorized to arrest with a warrant; and

(5) who is a member of a local police relief association to which section 69.77
applies, the State Patrol retirement plan, the public employees police and fire fund, or the
Minneapolis Employees Retirement Fund.

(h) "Full-time equivalent number of peace officers providing contract service" means
the integral or fractional number of peace officers which would be necessary to provide
the contract service if all peace officers providing service were employed on a full-time
basis as defined by the employing unit and the municipality receiving the contract service.

(i) "Retirement benefits other than a service pension" means any disbursement
authorized under section 424A.05, subdivision 3, clauses (2), (3), and (4).

(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person
who was elected or appointed to the specified position or, in the absence of the person,
another person who is designated by the applicable governing body. In a park district,
the clerk is the secretary of the board of park district commissioners. In the case of the
University of Minnesota, the clerk is that official designated by the Board of Regents.
For the Metropolitan Airports Commission, the clerk is the person designated by the
commission. For the Department of Natural Resources or the Department of Public Safety,
the clerk is the respective commissioner. For a tribal police department which exercises
state arrest powers under section 626.90, 626.91, 626.92, or 626.93, the clerk is the person
designated by the applicable American Indian tribal government.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions made in 2007 and
thereafter.
new text end

Sec. 2.

Minnesota Statutes 2004, section 69.021, subdivision 7, is amended to read:


Subd. 7.

Apportionment of fire state aid to municipalities and relief associations.

(a) The commissioner shall apportion the fire state aid relative to the premiums reported
on the Minnesota Firetown Premium Reports filed under this chapter to each municipality
and/or firefighters relief association.

(b) The commissioner shall calculate an initial fire state aid allocation amount for
each municipality or fire department under paragraph (c) and a minimum fire state aid
allocation amount for each municipality or fire department under paragraph (d). The
municipality or fire department must receive the larger fire state aid amount.

(c) The initial fire state aid allocation amount is the amount available for
apportionment as fire state aid under subdivision 5, without inclusion of any additional
funding amount to support a minimum fire state aid amount under section 423A.02,
subdivision 3
, allocated one-half in proportion to the population as shown in the last
official statewide federal census for each fire town and one-half in proportion to the market
value of each fire town, including (1) the market value of tax exempt property deleted text beginanddeleted text endnew text begin,new text end (2)
the market value of natural resources lands receiving in lieu payments under sections
477A.11 to 477A.14, but excluding the market value of mineralsnew text begin, and (3) the amount
under section 69.011, subdivision 1, paragraph (e), clause (2)
new text end. In the case of incorporated
or municipal fire departments furnishing fire protection to other cities, towns, or townships
as evidenced by valid fire service contracts filed with the commissioner, the distribution
must be adjusted proportionately to take into consideration the crossover fire protection
service. Necessary adjustments shall be made to subsequent apportionments. In the case
of municipalities or independent fire departments qualifying for the aid, the commissioner
shall calculate the state aid for the municipality or relief association on the basis of the
population and the market value of the area furnished fire protection service by the fire
department as evidenced by duly executed and valid fire service agreements filed with the
commissioner. If one or more fire departments are furnishing contracted fire service to a
city, town, or township, only the population and market value of the area served by each
fire department may be considered in calculating the state aid and the fire departments
furnishing service shall enter into an agreement apportioning among themselves the
percent of the population and the market value of each service area. The agreement must
be in writing and must be filed with the commissioner.

(d) The minimum fire state aid allocation amount is the amount in addition to the
initial fire state allocation amount that is derived from any additional funding amount
to support a minimum fire state aid amount under section 423A.02, subdivision 3, and
allocated to municipalities with volunteer firefighters relief associations based on the
number of active volunteer firefighters who are members of the relief association as
reported in the annual financial reporting for the calendar year 1993 to the Office of the
State Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities
or fire departments with volunteer firefighters relief associations receive in total at least
a minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of
30 firefighters. If a relief association is established after calendar year 1993 and before
calendar year 2000, the number of active volunteer firefighters who are members of the
relief association as reported in the annual financial reporting for calendar year 1998 to
the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be
used in this determination. If a relief association is established after calendar year 1999,
the number of active volunteer firefighters who are members of the relief association as
reported in the first annual financial reporting submitted to the Office of the State Auditor,
but not to exceed 20 active volunteer firefighters, must be used in this determination.

(e) The fire state aid must be paid to the treasurer of the municipality where the fire
department is located and the treasurer of the municipality shall, within 30 days of receipt
of the fire state aid, transmit the aid to the relief association if the relief association has
filed a financial report with the treasurer of the municipality and has met all other statutory
provisions pertaining to the aid apportionment.

(f) The commissioner may make rules to permit the administration of the provisions
of this section.

(g) Any adjustments needed to correct prior misallocations must be made to
subsequent apportionments.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for distributions made in 2007 and
thereafter.
new text end