Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 487-H.F.No. 419 
           An act relating to retirement; police state aid 
          program; requiring payments equivalent to automobile 
          insurance premium taxes by self-insurers; public 
          employee retirement savings programs; authorizing an 
          employer matching contribution to certain tax 
          sheltered annuity contracts; amending Minnesota 
          Statutes 1990, section 356.24; Minnesota Statutes 1991 
          Supplement, section 69.021, subdivisions 5 and 6; 
          proposing coding for new law in Minnesota Statutes, 
          chapter 60A. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  [60A.152] [INSURANCE PREMIUM TAX EQUIVALENT 
PAYMENT BY AUTOMOBILE RISK SELF-INSURERS.] 
    Subdivision 1.  [DEFINITIONS.] (a) [APPLICATION.] For 
purposes of this section, the definitions in paragraphs (b) to 
(f) apply. 
    (b) [AUTOMOBILE RISKS.] "Automobile risks" means the risk 
of providing no-fault insurance under sections 65B.41 to 65B.71. 
    (c) [MOTOR VEHICLE.] "Motor vehicle" has the meaning given 
in section 65B.43, subdivision 2. 
    (d) [PERSON.] "Person" means an owner, as defined in 
section 65B.43, subdivision 4, but does not mean a political 
subdivision as defined in section 65B.43, subdivision 20. 
    (e) [SELF-INSURANCE.] "Self-insurance" means the condition 
of qualifying as a self-insurer by complying with section 
65B.48, subdivisions 3 and 3a. 
    (f) [SELF-INSURER.] "Self-insurer" means a person who has 
arranged self-insurance for the automobile risks associated with 
the person's motor vehicle. 
     Subd. 2.  [PREMIUM TAX AMOUNT.] Every self-insurer who 
owns, leases, or operates a motor vehicle required to be 
registered or licensed in this state or principally garaged in 
this state for at least two months in the applicable calendar 
year shall pay an annual amount for each vehicle of: 
    (1) $15 for a private passenger vehicle as defined in 
section 65B.001, subdivision 3, or a utility vehicle as defined 
in section 65B.001, subdivision 4, not including a taxi; or 
    (2) $25 for a taxi or any other self-insured vehicle not 
covered by clause (1). 
    The amount required under this subdivision is payable no 
later than July 1, annually, to the commissioner of revenue.  A 
late payment penalty of $10 a vehicle is assessed if the amount 
is not paid on or before July 1, and an additional amount equal 
to the original payment amount if the total amount is not paid 
until after December 1 of the same year.  A self-insurer who is 
more than six months delinquent in paying the amount due must be 
referred to the commissioner of commerce for action, which may 
include revocation of the self-insured's self-insurer status. 
    Subd. 3.  [DEPOSIT OF PAYMENT AMOUNT.] The amounts paid 
under subdivision 2 must be deposited in the general fund to the 
credit of the account from which the police state aid provided 
for in sections 69.011 to 69.051 is payable. 
    Subd. 4.  [RULES AUTHORIZED.] The commissioner of revenue 
and the commissioner of commerce are authorized to make rules to 
permit the administration of this section. 
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
69.021, subdivision 5, is amended to read: 
    Subd. 5.  [CALCULATION OF STATE AID.] (a) The amount of 
fire state aid available for apportionment shall be two percent 
of the fire, lightning, sprinkler leakage, and extended coverage 
premiums reported to the commissioner by insurers on the 
Minnesota Firetown Premium Report and two percent of the 
premiums reported to the commissioner by insurers on the 
Minnesota Aid to Police Premium Report.  This amount shall be 
reduced by the amount required to pay the state auditor's costs 
and expenses of the audits or exams of the firefighters relief 
associations. 
   (b) The total amount for apportionment in respect to police 
state aid shall not be greater or lesser than is the amount of 
premium taxes paid to the state upon the premiums reported to 
the commissioner by insurers on the Minnesota Aid to Police 
Premium Report after subtracting, plus the payment amounts 
received under section 1 since the last aid apportionment, and 
reduced by the amount required to pay the state auditor's costs 
and expenses of the audits or exams of the police relief 
associations.  The total amount for apportionment in respect to 
firefighters state aid shall not be greater or lesser than the 
amount of premium taxes paid to the state upon the premiums 
reported to the commissioner by insurers on the Minnesota 
Firetown Premium Report after subtracting the amount required to 
pay the state auditor's costs and expenses of the audits or 
exams of the firefighters relief associations.  The amount for 
apportionment in respect to police state aid shall be 
distributed to the municipalities maintaining police departments 
and to the county on the basis of the number of active peace 
officers, as certified pursuant to section 69.011, subdivision 
2, clause (b).  The commissioner shall calculate the percentage 
of increase or decrease reflected in the apportionment over or 
under the previous year's available state aid using the same 
premiums as a basis for comparison. 
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
69.021, subdivision 6, is amended to read: 
    Subd. 6.  [CALCULATION OF APPORTIONMENT OF STATE PEACE 
OFFICERS AID TO COUNTIES.] The police state aid available in 
respect to peace officers shall not exceed the amount of tax 
collected and shall be distributed to the counties in proportion 
to the total number of active peace officers, as defined in 
section 69.011, subdivision 1, clause (g), in each county who 
are employed either by municipalities maintaining police 
departments or by the county.  Any necessary adjustments shall 
be made to subsequent apportionments. 
    Sec. 4.  Minnesota Statutes 1990, section 356.24, is 
amended to read: 
    356.24 [SUPPLEMENTAL PENSION OR DEFERRED COMPENSATION 
PLANS, RESTRICTIONS UPON GOVERNMENT UNITS.] 
    Subdivision 1.  [RESTRICTION; EXCEPTIONS.] (a) It is 
unlawful for a school district or other governmental subdivision 
or state agency to levy taxes for, or contribute public funds to 
a supplemental pension or deferred compensation plan that is 
established, maintained, and operated in addition to a primary 
pension program for the benefit of the governmental subdivision 
employees other than: 
    (1) to a supplemental pension plan that was established, 
maintained, and operated before May 6, 1971; 
    (2) to a plan that provides solely for group health, 
hospital, disability, or death benefits, to the individual 
retirement account plan established by sections 354B.01 to 
354B.04; 
    (3) to a plan that provides solely for severance pay under 
section 465.72 to a retiring or terminating employee; 
    (4) for employees other than personnel employed by the 
state university board or the community college board and 
covered by section 136.80, subdivision 1, to: 
    (i) the state of Minnesota deferred compensation plan under 
section 352.96,; or 
    (ii) payment of the applicable portion of the premium on a 
tax sheltered annuity contract qualified under section 403(b) of 
the federal Internal Revenue Code, purchased from a qualified 
insurance company; if provided for in a personnel policy or in 
the collective bargaining agreement of the public employer with 
the exclusive representative of public employees in an 
appropriate unit, in an amount matching employee contributions 
on a dollar for dollar basis, but not to exceed an employer 
contribution of $2,000 a year per employee; or 
    (5) for personnel employed by the state university board or 
the community college board and covered by section 136.80, 
subdivision 1, to the supplemental retirement plan under 
sections 136.80 to 136.85, if provided for in a personnel policy 
or in the collective bargaining agreement of the public employer 
with the exclusive representative of the covered employees in an 
appropriate unit, in an amount matching employee contributions 
on a dollar for dollar basis, but not to exceed an employer 
contribution of $2,000 a year for each employee.  
    (b) A qualified insurance company is a company that: 
    (1) meets the definition in section 60A.02, subdivision 4; 
    (2) is licensed to engage in life insurance or annuity 
business in the state; 
    (3) is determined by the commissioner of commerce to have a 
rating within the top two rating categories by a recognized 
national rating agency or organization that regularly rates 
insurance companies; and 
    (4) is determined by the state board of investment to be 
among the ten applicant insurance companies with competitive 
options and investment returns on annuity products.  The state 
board of investment determination must be made on or before 
January 1, 1993, and must be reviewed periodically.  The state 
board of investment shall retain actuarial services to assist it 
in this determination.  The state board of investment shall 
establish a budget for its costs in the determination process 
and shall charge a proportional share of that budget to each 
insurance company selected by the state board of investment.  
All contracts must be approved before execution by the state 
board of investment.  The state board of investment shall 
establish policies and procedures under section 11A.04, clause 
(2), to carry out this paragraph. 
    (c) A personnel policy for unrepresented employees or a 
collective bargaining agreement may establish limits on the 
number of vendors under paragraph (b), clause (4), that it will 
utilize and conditions under which the vendors may contact 
employees both during working hours and after working hours. 
    (b) Subd. 2.  [LIMIT ON CERTAIN CONTRIBUTIONS OR BENEFIT 
CHANGES.] No change in benefits or employer contributions in a 
supplemental pension plan to which this section applies after 
May 6, 1971, is effective without prior legislative 
authorization. 
     Sec. 5.  [EFFECTIVE DATE.] 
    Section 1 is effective January 1, 1992.  Sections 2 and 3 
are effective July 1, 1992. 
    Presented to the governor April 16, 1992 
    Signed by the governor April 20, 1992, 4:50 p.m.