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Key: (1) language to be deleted (2) new language


                         Laws of Minnesota 1988 

                        CHAPTER 599-S.F.No. 2017 
           An act relating to Gillette children's hospital; 
          authorizing the hospital board to incorporate as a 
          nonprofit corporation; terminating its status as a 
          public corporation; transferring its ownership of 
          hospital property to the city of St. Paul; permitting 
          repayment of a refund; repealing Minnesota Statutes 
          1986, section 250.05, subdivisions 1, 2a, 3, 4, 5, and 
          6; and Minnesota Statutes 1987 Supplement, section 
          250.05, subdivisions 2 and 7. 
    Section 1.  [DEFINITIONS.] 
    Subdivision 1.  [SCOPE.] For purposes of sections 1 to 3, 
the following terms have the meanings given them in this section.
    Subd. 2.  [BOARD.] "Board" means the Gillette children's 
hospital board established by Minnesota Statutes, section 
250.05, subdivision 1. 
    Subd. 3.  [NONPROFIT CORPORATION.] "Nonprofit corporation" 
means the entity formed in accordance with section 2, 
subdivision 1. 
    Subdivision 1.  [INCORPORATION.] The board may incorporate 
as a nonprofit corporation under Minnesota Statutes, chapter 317.
Upon incorporating in accordance with this subdivision, the 
resulting nonprofit corporation ceases to be a public 
corporation in the executive branch of state government. 
     Subd. 2.  [EMPLOYEES.] (a) Employees of the nonprofit 
corporation are not state employees.  A person who is an 
employee of the board and a member of the Minnesota state 
retirement association at the time of an incorporation under 
subdivision 1 remains a member of the association.  An employee 
hired after an incorporation under subdivision 1 is not a member 
of the association, but is a member of a retirement system 
established and maintained by the nonprofit corporation. 
     (b) For an employee who remains a member of the Minnesota 
state retirement system, the nonprofit corporation shall pay the 
employer contributions required by Minnesota Statutes, section 
352.04, subdivision 3, and shall deduct from the employee's 
salary and transmit to the association the employee contribution 
required by section 352.04, subdivision 2. 
    Subd. 3.  [PROPERTY.] Personal property of the board other 
than fixtures becomes property of the nonprofit corporation upon 
incorporation in accordance with subdivision 1.  The board's 
interest in the buildings constituting St. Paul-Ramsey hospital 
under the agreement among the board, the city of St. Paul, and 
Ramsey county made on February 19, 1975, is transferred upon 
incorporation to the city and the county in proportion to their 
current interests. 
    Subd. 4.  [LEASEHOLD INTEREST.] Notwithstanding subdivision 
3, the city of St. Paul and Ramsey county shall grant the 
nonprofit corporation a leasehold interest in the areas of 
buildings owned by the board under article 2 of the February 19, 
1975, agreement.  Except as otherwise provided in this act or 
agreed to by the nonprofit corporation, the city, and the 
county, the terms of the lease must be no less favorable to the 
nonprofit corporation than the terms of the board's occupancy.  
The lease must be for a term of 30 years, but is terminable by 
the nonprofit corporation if the nonprofit corporation vacates 
those areas entirely or partially, by the nonprofit corporation 
or the city and county if the nonprofit corporation ceases to 
provide services and training in medical and surgical care of 
children with handicaps or disabilities in the leased areas, or 
upon mutual agreement of the parties.  Unless agreed to by the 
city and the county, the leasehold interest under this 
subdivision may be transferred by the nonprofit corporation only 
to a successor nonprofit corporation into which the nonprofit 
corporation may merge, of which it may become a subsidiary, or 
that may be formed by the nonprofit corporation and another 
nonprofit corporation.  The leasehold interest may also be 
transferred to the city of St. Paul and Ramsey county without 
limitation as to use. 
    Sec. 3.  [AFFILIATION.] 
    Along with the other powers of a nonprofit corporation, the 
nonprofit corporation may agree to affiliate with Minneapolis 
children's medical center or its parent corporation, Minneapolis 
ChildCare, to improve the coordination and efficiency of the two 
institutions in providing comprehensive health care to 
children.  The nonprofit corporation may become subsidiary of, 
and delegate management powers and functions to, Minneapolis 
     Sec. 4.  [REPAYMENT OF REFUND.] 
    Notwithstanding any contrary provision of Minnesota 
Statutes, section 353.35, a person employed by the St. Paul 
school district from January, 1983 to October, 1987 may repay a 
refund received from the public employees retirement association 
for service between October 1, 1954 and March 31, 1955.  The 
amount of the repayment must be determined under Minnesota 
Statutes, section 353.35.  The repayment must be made within 90 
days of the effective date of this section. 
    Sec. 5.  [REPEALER.] 
    Minnesota Statutes 1986, section 250.05, subdivisions 1, 
2a, 3, 4, 5, and 6, are repealed.  Minnesota Statutes 1987 
Supplement, section 250.05, subdivisions 2 and 7, are repealed. 
    Sec. 6.  [EFFECTIVE DATE.] 
    Sections 1 to 3 are effective the day following final 
enactment.  Section 5 is effective upon the filing of the 
articles of incorporation with the secretary of state effecting 
an incorporation under section 2, subdivision 1. 
    Approved April 21, 1988

Official Publication of the State of Minnesota
Revisor of Statutes