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SF 2379

as introduced - 90th Legislature (2017 - 2018) Posted on 11/09/2017 11:30am

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

Current Version - as introduced

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A bill for an act
relating to state government; modifying membership for PERA and MSRS Boards;
amending Minnesota Statutes 2016, sections 352.03, subdivision 1; 353.03,
subdivision 1.

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

Section 1.

Minnesota Statutes 2016, section 352.03, subdivision 1, is amended to read:


Subdivision 1.

Membership of board; election; term.

(a) The policy-making function
of the system is vested in a board of 11 members known as the board of directors. This
board shall consist of:

(1) deleted text begin threedeleted text end new text begin twonew text end members appointed by the governordeleted text begin , one of whom must be a constitutional
officer or appointed state official and two of whom
deleted text end new text begin whonew text end must be public members
knowledgeable in pension matters;

(2) four state employees elected by active members and former members eligible for a
deferred annuity from the general state employees retirement plan, excluding employees
and deferred annuitants for whom a board member is designated;

(3) one employee of the Metropolitan Council's transit operations or its successor agency
designated by the executive committee of the labor organization that is the exclusive
bargaining agent representing employees of the transit division;

(4) one employee who is a member of the State Patrol retirement plan elected by active
members and former members eligible for a deferred annuity from that plan;

(5) one employee who is a member of the correctional state employees retirement plan
established under this chapter elected by active members and former members eligible for
a deferred annuity from that plan; deleted text begin and
deleted text end

(6) one retired employee of a plan included in the system, elected by disabled and retired
employees of the plans administered by the system at a time and in a manner determined
by the boardnew text begin ; and
new text end

new text begin (7) the commissioner of management and budgetnew text end .

(b) The terms of the four elected state employees under paragraph (a), clause (2), must
be staggered, with two of the state employee board positions elected each biennium, whose
terms of office begin on the first Monday in May after their election. Elected members and
the appointed member of the Metropolitan Council's transit operations hold office for a term
of four years and until their successors are elected or appointed, and have qualified.

(c) An employee or former employee of the system is not eligible for membership on
the board of directors. A state employee on leave of absence is not eligible for election or
reelection to membership on the board of directors.

(d) The term of any board member who is on leave for more than six months
automatically ends on expiration of the term of office.

Sec. 2.

Minnesota Statutes 2016, section 353.03, subdivision 1, is amended to read:


Subdivision 1.

Management; composition; election.

(a) The management of the Public
Employees Retirement Association is vested in an 11-member board of trustees consisting
of ten members and the deleted text begin state auditordeleted text end new text begin commissioner of management and budgetnew text end . The deleted text begin state
auditor
deleted text end new text begin commissioner of management and budgetnew text end may designate deleted text begin a deputy auditordeleted text end new text begin an assistant
commissioner
new text end with expertise in pension matters as the deleted text begin auditor'sdeleted text end new text begin commissioner's new text end representative
on the board. The governor shall appoint five trustees to four-year terms, one of whom shall
be designated to represent school boards, one to represent cities, one to represent counties,
one who is a retired annuitant, and one who is a public member knowledgeable in pension
matters. The membership of the association, including recipients of retirement annuities
and disability and survivor benefits, shall elect five trustees for terms of four years, one of
whom must be a member of the police and fire fund and one of whom must be a former
member who met the definition of public employee under section 353.01, subdivisions 2
and 2a, for at least five years prior to terminating membership and who is receiving a
retirement annuity or a member who receives a disability benefit. Terms expire on January
31 of the fourth year, and positions are vacant until newly elected members are seated.
Except as provided in this subdivision, trustees elected by the membership of the association
must be public employees and members of the association.

(b) For seven days beginning October 1 of each year preceding a year in which an election
is held, the association shall accept filings of candidates for the board of trustees. A candidate
shall submit at the time of filing a nominating petition signed by 25 or more members of
the association. No name may be withdrawn from nomination by the nominee after October
15. At the request of a candidate for an elected position on the board of trustees, the board
shall provide a statement of up to 300 words prepared by the candidate to all persons eligible
to vote in the election of the candidate. The board may adopt policies and procedures to
govern the form and length of these statements and the timing and deadlines for submitting
materials to be distributed to the eligible voters.

(c) By January 10 of each year in which elections are to be held, the board shall distribute
to the eligible voters the instructions and materials necessary to vote for the candidates
seeking terms on the board of trustees. Eligible voters are the members, retirees, and other
benefit recipients. No voter may vote for more than one candidate for each board position
to be filled. A vote for more than one person for any position is void. No special marking
may be used to indicate incumbents. Votes cast by using paper ballots mailed to the
association must be postmarked no later than January 31. Votes cast by using telephone or
other electronic means authorized under the board's procedures must be entered by the end
of the day on January 31. The design of the voting response media must ensure that each
voter's vote is secret.

(d) A candidate who receives contributions, who makes expenditures in excess of $100,
or who has given implicit or explicit consent for any other person to receive contributions
or make expenditures in excess of $100 for the purpose of bringing about the candidate's
election shall file a report with the campaign finance and public disclosure board disclosing
the source and amount of all contributions to the candidate's campaign. The campaign
finance and public disclosure board shall prescribe forms governing these disclosures.
Expenditures and contributions have the meaning defined in section 10A.01. These terms
do not include any distribution made by the association board on behalf of the candidate.
A candidate shall file a report within 30 days from the day that the results of the election
are announced. The Campaign Finance and Public Disclosure Board shall maintain these
reports and make them available for public inspection in the same manner as the board
maintains and makes available other reports filed with it.

(e) The secretary of state shall review and comment on the procedures defined by the
board of trustees for conducting the elections specified in this subdivision, including board
policies adopted under paragraph (b).

(f) The board of trustees and the executive director shall undertake their activities
consistent with chapter 356A.