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SF 3547

as introduced - 91st Legislature (2019 - 2020) Posted on 02/25/2020 08:52am

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

Current Version - as introduced

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A bill for an act
relating to retirement; volunteer firefighter relief associations; revising the allocation
of fire state aid; amending Minnesota Statutes 2019 Supplement, section 477B.04,
subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 477B.

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

Section 1.

Minnesota Statutes 2019 Supplement, section 477B.04, subdivision 3, is amended
to read:


Subd. 3.

Deposit of state aid.

(a) If the municipality or the independent nonprofit
firefighting corporation is covered by the voluntary statewide volunteer firefighter retirement
plan under chapter 353G, the executive director of the Public Employees Retirement
Association must credit the fire state aid against future municipal contribution requirements
under section 353G.08 and must notify the municipality or the independent nonprofit
firefighting corporation of the fire state aid so credited at least annually.

(b) If new text begin(1) new text endthe municipality or the independent nonprofit firefighting corporation is not
covered by the voluntary statewide volunteer firefighter retirement plandeleted text begin,deleted text end new text beginand is affiliated
with a duly incorporated firefighters relief association, (2) the relief association has filed a
financial report with the municipality pursuant to section 424A.014, subdivision 1 or 2,
whichever applies, and (3) there is not an aid allocation agreement under section 477B.042
in effect, then
new text endthe treasurer of the municipality must, within 30 days after receipt, transmit
the fire state aid to the treasurer of the deleted text beginduly incorporated firefighters' relief association if
there is one organized and the association has filed a financial report with the municipality
pursuant to section 424A.014, subdivision 1 or 2, whichever applies.
deleted text endnew text begin relief association. If
clauses (1) and (2) are satisfied and there is an aid allocation agreement under section
477B.042 in effect, then fire state aid must be transmitted as described in that section.
new text end If
the relief association has not filed a financial report with the municipality, new text beginthen, regardless
of whether an aid allocation agreement is in effect,
new text endthe treasurer of the municipality must
delay transmission of the fire state aid to the relief association until the complete financial
report is filed.

(c) The treasurer of the municipality must deposit the fire state aid money in the municipal
treasury if (1) the municipality or independent nonprofit firefighting corporation is not
covered by the voluntary statewide volunteer firefighter retirement plan, (2) there is no
relief association organized, (3) the association has dissolved, or (4) the association has
been removed as trustees of state aid. The money may be disbursed from the municipal
treasury only for the purposes and in the manner set forth in section 424A.08 or for the
payment of the employer contribution requirement with respect to firefighters covered by
the public employees police and fire retirement plan under section 353.65, subdivision 3.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2021 and thereafter.
new text end

Sec. 2.

new text begin [477B.042] ALLOCATION OF FIRE STATE AID FOR RELIEF
ASSOCIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin (a) This section applies to fire state aid payable each year
under section 477B.04, subdivision 3, paragraph (b), if, during the prior year, the municipality
or independent nonprofit firefighting corporation:
new text end

new text begin (1) employs one or more volunteer firefighters covered by the relief association affiliated
with the municipality or independent nonprofit firefighting corporation under chapter 424A;
and
new text end

new text begin (2) contributes on behalf of one or more firefighters to the public employees police and
fire retirement plan under chapter 353.
new text end

new text begin (b) This section does not apply to police and firefighter supplemental state aid under
section 423A.022.
new text end

new text begin Subd. 2. new text end

new text begin Allocation of fire state aid. new text end

new text begin (a) The municipality or independent nonprofit
firefighting corporation and the affiliated relief association may agree to allocate fire state
aid between the relief association and the public employees police and fire retirement plan
by entering into an aid allocation agreement described in subdivision 3.
new text end

new text begin (b) If an aid allocation agreement has been filed with the state auditor and is in effect,
then within 30 days of receipt of the fire state aid the treasurer of the municipality must
transmit to the relief association the amount of the fire state aid as determined in the aid
allocation agreement. If a municipality receives fire state aid on behalf of an independent
nonprofit firefighting corporation, the municipality must also transmit any remaining fire
state aid to the independent nonprofit firefighting corporation.
new text end

new text begin (c) The fire state aid allocated to the municipality or independent nonprofit firefighting
corporation may only be disbursed for the payment of employer contributions for firefighters
covered by the public employees police and fire retirement plan or for contributions to the
relief association and must be disbursed within 18 months of receipt by the municipality or
independent nonprofit firefighting corporation.
new text end

new text begin Subd. 3. new text end

new text begin Aid allocation agreement. new text end

new text begin (a) An aid allocation agreement is a written
agreement that meets the following requirements:
new text end

new text begin (1) the agreement specifies:
new text end

new text begin (i) the percentage of the fire state aid, a dollar amount, or a formula for determining the
amount of fire state aid that will be transmitted to the relief association annually; and
new text end

new text begin (ii) the period of time covered by the agreement and the date on which the agreement
expires; and
new text end

new text begin (2) the agreement has been signed by:
new text end

new text begin (i) an individual authorized to sign on behalf of the municipality or independent nonprofit
firefighting corporation; and
new text end

new text begin (ii) the president of the relief association or its representative duly appointed for the
purposes of this section.
new text end

new text begin (b) An aid allocation agreement is not effective unless filed with the state auditor under
subdivision 5.
new text end

new text begin Subd. 4. new text end

new text begin Modifying or terminating the aid allocation agreement. new text end

new text begin (a) The parties to
the agreement may modify or terminate the aid allocation agreement, provided that the
modification or termination is in writing and signed by the parties.
new text end

new text begin (b) If the amount of fire state aid paid to a municipality or independent nonprofit
firefighting corporation by the commissioner changes by an amount greater than 50 percent
of the prior year's amount, then the aid allocation agreement may be terminated by either
party to the agreement by providing written notice of termination to the other party.
new text end

new text begin (c) Unless the aid allocation agreement provides otherwise, termination is effective for
the fire state aids payable in the calendar year after notice of termination has been given.
new text end

new text begin Subd. 5. new text end

new text begin Filing requirement and remedy. new text end

new text begin (a) By March 1 of each year in which fire
state aid is to be allocated, the municipality or independent nonprofit firefighting corporation
must file a copy of the aid allocation agreement or modified agreement with the state auditor.
new text end

new text begin (b) If an aid allocation agreement terminates by its own terms or for any other reason,
the municipality or independent nonprofit firefighting corporation must notify the Office
of the State Auditor in writing within 30 days after the termination date.
new text end

new text begin (c) If the municipality or independent nonprofit firefighting corporation fails to file by
the deadline in paragraph (a), fire state aid payments must not be allocated, but must be
transmitted to the relief association until the agreement has been filed. If the state auditor
determines that an aid allocation agreement does not meet the requirements of subdivision
3, any future fire state aid payments must be transmitted to the relief association by the
municipality until the municipality files with the state auditor an aid allocation agreement
that satisfies the requirements under subdivision 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in 2021 and thereafter.
new text end