Office of the Revisor of Statutes
Minnesota Session Laws - 1993, Regular Session
Key: (1) language to be deleted (2) new language
Laws of Minnesota 1993
CHAPTER 244-S.F.No. 853
An act relating to retirement; volunteer firefighters'
relief associations; increasing service pension
maximums; establishing a fire state aid maximum
apportionment; providing penalties for noncompliance
with service pension maximums; specifying duties for
the state auditor; ratifying certain prior
nonconforming lump sum service pension payments;
continuing certain nonconforming lump sum service
pension amounts in force; modifying certain investment
performance calculations; modifying certain local
volunteer firefighters relief association provisions;
prohibiting the use of lawful gambling contributions
for pensions; amending Minnesota Statutes 1992,
sections 11A.04; 349.12, subdivision 25; 356.218,
subdivisions 2 and 3; and 424A.02, subdivisions 1, 3,
and by adding subdivisions; Laws 1971, chapter 140,
section 5, as amended; proposing coding for new law in
Minnesota Statutes, chapter 471.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
VOLUNTEER FIRE BENEFIT CHANGES
Section 1. Minnesota Statutes 1992, section 424A.02,
subdivision 1, is amended to read:
Subdivision 1. [AUTHORIZATION.] A relief association, when
its articles of incorporation or bylaws so provide, may pay out
of the assets of its special fund a service pension to each of
its members who: (1) separates from active service with the
fire department; (2) reaches age 50; (3) completes at least five
years of active service as an active member of the municipal
fire department to which the relief association is associated;
(4) completes at least five years of active membership with the
relief association before separation from active service; and
(5) complies with any additional conditions as to age, service,
and membership that are prescribed by the bylaws of the relief
association. A service pension computed under this section may
be prorated monthly for fractional years of service, if the
bylaws or articles of incorporation of the relief association so
provide. The service pension may be paid whether or not the
municipality or nonprofit firefighting corporation to which the
relief association is associated qualifies for fire state aid
under chapter 69. In the case of a member who has completed at
least five years of active service as an active member of the
fire department to which the relief association is associated on
the date that the relief association is established and
incorporated, the requirement that the member complete at least
five years of active membership with the relief association
before separation from active service may be waived by the board
of trustees of the relief association if the member completes at
least five years of inactive membership with the relief
association before the payment of the service pension. During
the period of inactive membership, the member is not entitled to
receive disability benefit coverage, is not entitled to receive
additional service credit towards computation of a service
pension, and is considered to have the status of a person
entitled to a deferred service pension under subdivision 7.
No municipality or nonprofit firefighting corporation may
delegate the power to take final action in setting a service
pension or ancillary benefit amount or level to the board of
trustees of the relief association or to approve in advance a
service pension or ancillary benefit amount or level equal to
the maximum amount or level that this chapter would allow rather
than a specific dollar amount or level.
No relief association as defined in section 424A.001,
subdivision 4, may pay a service pension or disability benefit
to a former member of the relief association if that person has
not separated from active service with the fire department to
which the relief association is directly associated.
For the purposes of this chapter, "to separate from active
service" means to cease to perform fire suppression duties and
to cease to supervise fire suppression duties.
Sec. 2. Minnesota Statutes 1992, section 424A.02,
subdivision 3, is amended to read:
Subd. 3. [FLEXIBLE SERVICE PENSION MAXIMUMS.] (a) On or
before August 1 of each year as part of the certification of the
financial requirements and minimum municipal obligation made
pursuant to section 69.772, subdivision 4, or 69.773,
subdivision 5, the secretary or some other official of the
relief association designated in the bylaws of each relief
association shall calculate and certify to the governing body of
the applicable qualified municipality the average amount of
available financing per active covered firefighter for the most
recent three-year period. The amount of available financing
shall include any amounts of fire state aid received or
receivable by the relief association, any amounts of municipal
contributions to the relief association raised from levies on
real estate or from other available revenue sources exclusive of
fire state aid, and one-tenth of the amount of assets in excess
of the accrued liabilities of the relief association calculated
pursuant to sections 69.772, subdivision 2; 69.773, subdivisions
2 and 4; or 69.774, subdivision 2, if any.
(b) The maximum service pension which the relief
association may has authority to provide for in its bylaws for
payment to a member retiring after the calculation date when the
minimum age and service requirements specified in subdivision 1
are met shall must be determined using the applicable following
table in paragraph (c) or (d), whichever applies.
(c) For a relief association where the governing bylaws
provide for a monthly service pension to a retiring member, if
the average amount of available financing per active covered
firefighter does not exceed the minimum average amount specified
below, then the maximum monthly service pension amount per month
for each year of service credited which that may be provided for
in the bylaws shall be the greater of: (1) the service pension
amount provided for in the bylaws on the date of calculation; or
(2) is the maximum service pension figure corresponding to the
average amount of available financing per active covered
firefighter:
Minimum Average Amount of Maximum Service Pension
Available Financing per Amount Payable per Month
Firefighter for Each Year of Service
$... $ .25
37 42 .50
75 84 1.00
112 126 1.50
149 168 2.00
186 209 2.50
224 252 3.00
261 294 3.50
298 335 4.00
336 378 4.50
373 420 5.00
447 503 6.00
522 587 7.00
597 672 8.00
671 755 9.00
746 839 10.00
820 923 11.00
895 1007 12.00
969 1090 13.00
1044 1175 14.00
1119 1259 15.00
1193 1342 16.00
1268 1427 17.00
1342 1510 18.00
1417 1594 19.00
1491 1677 20.00
1566 1762 21.00
1640 1845 22.00
1678 1888 22.50
1715 1929 23.00
1790 2014 24.00
1865 2098 25.00
1940 2183 26.00
2015 2267 27.00
2090 2351 28.00
2165 2436 29.00
2240 or more 2520 30.00
any amount more than 2520 30.00
(d) For a relief association in which the governing bylaws
provide for a lump sum service pension to a retiring member, if
the average amount of available financing per active covered
firefighter does not exceed the minimum average amount specified
below, then the maximum lump sum service pension amount for each
year of service credited which that may be provided for in the
bylaws shall be the greater of: (1) the service pension amount
provided for in the bylaws on the date of the calculation; or
(2) is the maximum service pension figure corresponding to the
average amount of available financing per active covered
firefighter for the applicable specified period:
Minimum Average Amount Maximum Lump Sum Service
of Available Financing Pension Amount Payable
per Firefighter for Each Year of Service
(1) for service pensions payable before January 1, 1994
$.. $10
10 11 20
14 16 30
20 23 40
24 27 50
28 32 60
38 43 80
48 54 100
58 65 120
68 77 140
76 86 160
86 97 180
96 108 200
116 131 240
134 151 280
154 173 320
172 194 360
192 216 400
212 239 440
230 259 480
250 281 520
268 302 560
288 324 600
308 347 640
326 367 680
346 389 720
364 410 760
384 432 800
432 486 900
480 540 1000
528 594 1100
576 648 1200
624 702 1300
672 756 1400
720 810 1500
768 864 1600
816 918 1700
864 972 1800
912 1026 1900
960 1080 2000
1008 1134 2100
1056 1188 2200
1104 1242 2300
1152 1296 2400
1200 1350 2500
1248 1404 2600
1296 1458 2700
1344 1512 2800
1392 1566 2900
1440 or more 1620 3000
1672 3100
1726 3200
1753 3250
1780 3300
1820 3375
any amount more than 1820 3375
(2) in addition to the service pension maximum under clause
(1), for service pensions payable after December 31, 1993, and
before January 1, 1995
1834 3400
1888 3500
any amount more than 1888 3500
(3) in addition to the service pension maximum under
clauses (1) and (2), for service pensions payable after December
31, 1994, and before January 1, 1996
1942 3600
1996 3700
2023 3750
any amount more than 2023 3750
(4) in addition to the service pension maximum under
clauses (1) to (3), for service pensions payable after December
31, 1995
2050 3800
2104 3900
2158 4000
any amount more than 2158 4000
(e) For a relief association in which the governing bylaws
provide for a monthly benefit service pension as an alternative
form of service pension payment to a lump sum service pension at
the option of the retiring member, the maximum service pension
amount shall for each pension payment type must be determined
using the applicable table contained in this subdivision.
(f) If a relief association establishes a service pension
in compliance with the applicable maximum contained in paragraph
(c) or (d) and the minimum average amount of available financing
per active covered firefighter is subsequently reduced because
of a reduction in fire state aid or because of an increase in
the number of active firefighters, the relief association may
continue to provide the prior service pension amount specified
in its bylaws, but may not increase the service pension amount
until the minimum average amount of available financing per
firefighter under the table in paragraph (c) or (d), whichever
applies, permits.
(g) No relief association is authorized to provide a
service pension in an amount greater than $30 per month per year
of service credit or in an amount greater than $3,375 lump sum
per year of service credit before January 1, 1994, $3,500 lump
sum per year of service credit before January 1, 1995, $3,750
lump sum per year of service credit before January 1, 1996, and
$4,000 lump sum per year of service credit after December 31,
1995, even if the minimum average amount of available financing
per firefighter for a relief association providing a monthly
benefit service pension is greater than $2,240, or, for a relief
association providing a lump sum service pension, is greater
than $1,753 before January 1, 1994, $1,888 before January 1,
1995, $2,023 before January 1, 1996, or $2,158 after December
31, 1995.
Sec. 3. Minnesota Statutes 1992, section 424A.02, is
amended by adding a subdivision to read:
Subd. 3a. [PENALTY FOR PAYING PENSION GREATER THAN
APPLICABLE MAXIMUM.] (a) If a relief association pays a service
pension greater than the maximum service pension associated with
the applicable average amount of available financing per active
covered firefighter under the table in subdivision 3, paragraph
(c) or (d), whichever applies, the maximum service pension under
subdivision 3, paragraph (f), or the applicable maximum service
pension amount specified in subdivision 3, paragraph (g),
whichever is less, the state auditor shall:
(1) disqualify the municipality or the nonprofit
firefighting corporation associated with the relief association
from receiving fire state aid by making the appropriate
notification to the municipality and the commissioner of
revenue, with the disqualification applicable for the next
apportionment and payment of fire state aid; and
(2) recover the amount of the overpaid service pension or
pensions from any retired firefighter who received an
overpayment.
(b) Fire state aid amounts from disqualified municipalities
for the period of disqualifications under paragraph (a), clause
(1), must be credited to the amount of fire insurance premium
tax proceeds available for the next subsequent fire state aid
apportionment.
(c) The amount of any overpaid service pension recovered
under paragraph (a), clause (2), must be credited to the amount
of fire insurance premium tax proceeds available for the next
subsequent fire state aid apportionment.
(d) The determination of the state auditor that a relief
association has paid a service pension greater than the
applicable maximum must be made on the basis of the information
filed by the relief association and the municipality with the
state auditor under sections 69.011, subdivision 2, and 69.051,
subdivision 1 or 1a, whichever applies, and any other relevant
information that comes to the attention of the state auditor.
The determination of the state auditor is final. An aggrieved
municipality, relief association, or person may appeal the
determination under section 480A.06.
Sec. 4. [VALIDATION OF PRIOR PAYMENTS; AUTHORITY TO RETAIN
CERTAIN SERVICE PENSION AMOUNTS.]
(a) Payments of lump sum service pensions by volunteer
firefighter relief associations before March 15, 1992, that were
in excess of the uppermost flexible service pension maximum
amount specified in Minnesota Statutes, section 424A.02,
subdivision 3, but were in conformance with the articles of
incorporation or bylaws of the relief association in effect on
the day before the payment of the lump sum service pension, are
ratified.
(b) A lump sum service pension amount in excess of the
uppermost flexible service pension maximum amount specified in
Minnesota Statutes 1990, section 424A.02, subdivision 3, and in
excess of the applicable lump sum service pension maximum amount
specified in section 424A.02, subdivision 3, as specified in the
articles of incorporation or bylaws of a relief association in
effect on December 31, 1991, may continue in force after
December 31, 1991, but may not be subsequently increased except
in conformance with section 424A.02, subdivision 3.
Sec. 5. [EFFECTIVE DATE.]
Sections 1 to 4 are effective the day following final
enactment.
ARTICLE 2
VOLUNTEER FIRE INVESTMENT PERFORMANCE REPORTING
Section 1. Minnesota Statutes 1992, section 11A.04, is
amended to read:
11A.04 [DUTIES AND POWERS.]
The state board shall:
(1) Act as trustees for each fund for which it invests or
manages money in accordance with the standard of care set forth
in section 11A.09 if state assets are involved and in accordance
with chapter 356A if pension assets are involved.
(2) Formulate policies and procedures deemed necessary and
appropriate to carry out its functions. Procedures adopted by
the board must allow fund beneficiaries and members of the
public to become informed of proposed board actions. Procedures
and policies of the board are not subject to the administrative
procedure act.
(3) Employ an executive director as provided in section
11A.07.
(4) Employ investment advisors and consultants as it deems
necessary.
(5) Prescribe policies concerning personal investments of
all employees of the board to prevent conflicts of interest.
(6) Maintain a record of its proceedings.
(7) As it deems necessary, establish advisory committees
subject to section 15.059 to assist the board in carrying out
its duties.
(8) Not permit state funds to be used for the underwriting
or direct purchase of municipal securities from the issuer or
the issuer's agent.
(9) Direct the state treasurer to sell property other than
money that has escheated to the state when the board determines
that sale of the property is in the best interest of the state.
Escheated property must be sold to the highest bidder in the
manner and upon terms and conditions prescribed by the board.
(10) Undertake any other activities necessary to implement
the duties and powers set forth in this section.
(11) Establish a formula or formulas to measure management
performance and return on investment. Except as provided by
section 356.218, public pension funds in the state shall utilize
the formula or formulas developed by the state board.
(12) Except as otherwise provided in article XI, section 8,
of the constitution of the state of Minnesota, employ, at its
discretion, qualified private firms to invest and manage the
assets of funds over which the state board has investment
management responsibility. There is annually appropriated to
the state board, from the assets of the funds for which the
state board utilizes a private investment manager, sums
sufficient to pay the costs of employing private firms. Each
year, by January 15, the board shall report to the governor and
legislature on the cost and the investment performance of each
investment manager employed by the board.
(13) Adopt an investment policy statement that includes
investment objectives, asset allocation, and the investment
management structure for the retirement fund assets under its
control. The statement may be revised at the discretion of the
state board. The state board shall seek the advice of the
council regarding its investment policy statement. Adoption of
the statement is not subject to chapter 14.
Sec. 2. Minnesota Statutes 1992, section 356.218,
subdivision 2, is amended to read:
Subd. 2. [COVERED PUBLIC PENSION PLANS.] The provisions of
this section apply to any Minnesota public pension plan,
including a local police or firefighters relief association
governed by sections 69.77 or 69.771 to 69.775, that has assets
with a book value of at least $500,000 as of the end of the
preceding plan year. A volunteer firefighters' relief
association governed by sections 69.771 to 69.775, that has
assets with a book value of at least $500,000 but less than or
equal to $2,000,000 as of the end of the preceding plan year,
shall use the formula identified in subdivision 3, paragraph
(b), clause (1), or the formula described in subdivision 3,
paragraph (b), clause (2), as the relief association elects.
Other covered public pension plans shall utilize the formula
identified in subdivision 3, paragraph (b), clause (1).
Sec. 3. Minnesota Statutes 1992, section 356.218,
subdivision 3, is amended to read:
Subd. 3. [CONTENTS OF THE INVESTMENT PERFORMANCE REPORT.]
(a) The investment performance report required by this section
must contain the time-weighted total rate of return results for
each quarter and annually for each significant asset class or
type of investment and for the portfolio as a whole.
(b) The time-weighted rate of return results must be
computed using market values and the applicable procedure, as
follows:
(1) by the formula or formulas prescribed by the state
board of investment under section 11A.04, clause (11).; or
(2) by dividing the total investment gain or loss for the
quarter by average assets for the quarter, if:
(i) the total investment gain or loss for the quarter is
computed by subtracting the beginning market value for the
quarter and the net contributions for the quarter from the
ending market value for the quarter;
(ii) the measure of average assets to be used is the
beginning market value for the quarter plus one-half the net
contributions for the quarter; and
(iii) the resulting quarterly returns for each significant
asset class and for the portfolio as a whole must be used to
create annual time-weighted returns according to the same
procedures for developing annual time-weighted returns from
quarterly returns, as used in the formula specified by the state
board of investment under section 11A.04, clause (11).
(c) The person performing the calculations shall certify
conformance to that formula or those formulas the applicable
procedure.
(d) The investment performance report may also include any
additional investment performance or investment related
information that the chief administrative officer considers
necessary to provide an adequate summary of the performance of
the portfolio. The additional information must be clearly
indicated as a supplement to the information required by this
subdivision.
(e) The executive director of the legislative commission on
pensions and retirement shall prescribe the forms on which the
report must be submitted and may prescribe other directions for
submitting the report.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 to 3 are effective July 1, 1993.
ARTICLE 3
TRANSFERS TO OTHER TAX QUALIFIED PENSION PLANS
Section 1. Minnesota Statutes 1992, section 424A.02, is
amended by adding a subdivision to read:
Subd. 8b. [TRANSFER TO INDIVIDUAL RETIREMENT ACCOUNT.] A
relief association that is a qualified pension plan under
section 401(a) of the federal internal revenue code, as amended,
and that provides a lump sum service pension, at the written
request of a retiring member, may directly transfer the eligible
member's lump sum pension to the member's individual retirement
account under section 408(a) of the federal internal revenue
code, as amended.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
ARTICLE 4
LOCAL VOLUNTEER FIRE RELIEF ASSOCIATION PROVISIONS
Section 1. Laws 1971, chapter 140, section 5, as amended
by Laws 1973, chapter 30, section 5, is amended to read:
Sec. 5. [GOLDEN VALLEY VOLUNTEER FIREFIGHTERS' RELIEF
ASSOCIATION; FUNERAL BENEFIT COVERAGE.]
Subdivision 1. [BENEFIT AUTHORIZATION.] Notwithstanding
any provision of law to the contrary, the bylaws of
the firemen's volunteer firefighters' relief association in the
village city of Golden Valley may provide for a funeral
benefit not to exceed $1,500 in case of death of a retired,
disabled, or active fireman firefighter. The amount of the
funeral benefit payable on account of any deceased active,
disabled, or retired firefighter may not exceed $1,500.
Provided further, in the case of a member receiving an
early retirement service pension or an early retirement service
transfer pension under section 1, subdivision 2 or 3, and who
has been had credit for a period as a member of the association
for a period of not less than five years, the funeral
benefit shall be in the is an amount of $100 for each year of
service exceeding five and with a maximum benefit of $1,500.
Subd. 2. [ADDITIONAL FUNDING REQUIREMENT FOR FUNERAL
BENEFIT COVERAGE.] In addition to the determination of the
accrued liability of the relief association under Minnesota
Statutes, section 69.772, subdivision 2, the officers of the
relief association shall determine an additional accrued
liability for the funeral benefit coverage under subdivision 1.
The additional accrued liability is an amount equal to ten
percent of the accrued liability determined under Minnesota
Statutes, section 69.772, subdivision 2. In calculating the
financial requirements of the relief association and the minimum
obligation of the municipality under Minnesota Statutes, section
69.772, subdivision 3, the additional accrued liability for this
benefit coverage must be added to the results determined under
Minnesota Statutes, section 69.772, subdivisions 2 and 2a.
Sec. 2. [RATIFICATION OF PRIOR FUNERAL BENEFIT PAYMENTS.]
Any funeral benefit payment made between March 27, 1973,
and the effective date of this section, that was in conformance
with the bylaws of the Golden Valley volunteer firefighters'
relief association at the time of the payment, but that was in
excess of the amount authorized under Laws 1973, chapter 30,
section 5, before this amendment is ratified by this section.
Sec. 3. [ELLENDALE FIRE DEPARTMENT RELIEF ASSOCIATION
BENEFIT AND AID USE RATIFICATION.]
Subdivision 1. [BENEFIT RATIFICATION.] Notwithstanding
Minnesota Statutes, section 424A.02, subdivision 1, or any
opinion of the office of the state auditor to the contrary,
benefit payments made to retiring members of the Ellendale fire
department relief association prior to the effective date of
this section are ratified.
Subd. 2. [AID USAGE RATIFICATION.] Notwithstanding
Minnesota Statutes, sections 69.021, 424A.05, 424A.08, or prior
laws governing the allocation or use of fire state aid, any
allocation or use of fire state aid received by the firetown of
Ellendale prior to the effective date of this section is hereby
ratified providing the aid was used for a fire related purpose
or as funding for the special fund of the Ellendale fire
department relief association.
Sec. 4. [EFFECTIVE DATE; LOCAL APPROVAL.]
Sections 1 and 2 are effective the day following approval
by the governing body of the city of Golden Valley and
compliance with Minnesota Statutes, section 645.021, subdivision
3. Section 3 is effective the day following approval by the
governing body of the city of Ellendale and compliance with
Minnesota Statutes, section 645.021, subdivision 3.
ARTICLE 5
PROHIBITION OF USE OF
LAWFUL GAMBLING CONTRIBUTIONS FOR PENSIONS
Section 1. Minnesota Statutes 1992, section 349.12,
subdivision 25, is amended to read:
Subd. 25. (a) "Lawful purpose" means one or more of the
following:
(1) any expenditure by or contribution to a 501(c)(3)
organization, provided that the organization and expenditure or
contribution are in conformity with standards prescribed by the
board under section 349.154;
(2) a contribution to an individual or family suffering
from poverty, homelessness, or physical or mental disability,
which is used to relieve the effects of that poverty,
homelessness, or disability;
(3) a contribution to an individual for treatment for
delayed posttraumatic stress syndrome or a contribution to a
recognized program for the treatment of compulsive gambling on
behalf of an individual who is a compulsive gambler;
(4) a contribution to or expenditure on a public or private
nonprofit educational institution registered with or accredited
by this state or any other state;
(5) a contribution to a scholarship fund for defraying the
cost of education to individuals where the funds are awarded
through an open and fair selection process;
(6) activities by an organization or a government entity
which recognize humanitarian or military service to the United
States, the state of Minnesota, or a community, subject to rules
of the board;
(7) recreational, community, and athletic facilities and
activities intended primarily for persons under age 21, provided
that such facilities and activities do not discriminate on the
basis of gender, as evidenced by (i) provision of equipment and
supplies, (ii) scheduling of activities, including games and
practice times, (iii) supply and assignment of coaches or other
adult supervisors, (iv) provision and availability of support
facilities, and (v) whether the opportunity to participate
reflects each gender's demonstrated interest in the activity,
provided that nothing in this clause prohibits a contribution to
or expenditure on an educational institution or other entity
that is excepted from the prohibition against discrimination
based on sex contained in the Higher Education Act Amendments of
1976, United States Code, title 20, section 1681;
(8) payment of local taxes authorized under this chapter,
taxes imposed by the United States on receipts from lawful
gambling, and the tax imposed by section 349.212, subdivisions 1
and 4, and the tax imposed on unrelated business income by
section 290.05, subdivision 3;
(9) payment of real estate taxes and assessments on
licensed gambling premises wholly owned by the licensed
organization paying the taxes, not to exceed:
(i) the amount which an organization may expend under board
rule on rent for premises used for bingo; or
(ii) $15,000 per year for premises used for other forms of
lawful gambling;
(10) a contribution to the United States, this state or any
of its political subdivisions, or any agency or instrumentality
thereof other than a direct contribution to a law enforcement or
prosecutorial agency;
(11) a contribution to or expenditure by a nonprofit
organization, church, or body of communicants gathered in common
membership for mutual support and edification in piety, worship,
or religious observances; or
(12) payment of one-half of the reasonable costs of an
audit required in section 349.19, subdivision 9.
(b) Notwithstanding paragraph (a), "lawful purpose" does
not include:
(1) any expenditure made or incurred for the purpose of
influencing the nomination or election of a candidate for public
office or for the purpose of promoting or defeating a ballot
question;
(2) any activity intended to influence an election or a
governmental decision-making process;
(3) the erection, acquisition, improvement, expansion,
repair, or maintenance of real property or capital assets owned
or leased by an organization, except as provided in clause (6),
unless the board has first specifically authorized the
expenditures after finding that (i) the real property or capital
assets will be used exclusively for one or more of the purposes
in paragraph (a); (ii) with respect to expenditures for repair
or maintenance only, that the property is or will be used
extensively as a meeting place or event location by other
nonprofit organizations or community or service groups and that
no rental fee is charged for the use; (iii) with respect to
expenditures, including a mortgage payment or other debt service
payment, for erection or acquisition only, that the erection or
acquisition is necessary to replace with a comparable building,
a building owned by the organization and destroyed or made
uninhabitable by fire or natural disaster, provided that the
expenditure may be only for that part of the replacement cost
not reimbursed by insurance; or (iv) with respect to
expenditures, including a mortgage payment or other debt service
payment, for erection or acquisition only, that the erection or
acquisition is necessary to replace with a comparable building a
building owned by the organization that was acquired from the
organization by eminent domain or sold by the organization to a
purchaser that the organization reasonably believed would
otherwise have acquired the building by eminent domain, provided
that the expenditure may be only for that part of the
replacement cost that exceeds the compensation received by the
organization for the building being replaced;
(4) an expenditure by an organization which is a
contribution to a parent organization, foundation, or affiliate
of the contributing organization, if the parent organization,
foundation, or affiliate has provided to the contributing
organization within one year of the contribution any money,
grants, property, or other thing of value;
(5) a contribution by a licensed organization to another
licensed organization unless the board has specifically
authorized the contribution. The board must authorize such a
contribution when requested to do so by the contributing
organization unless it makes an affirmative finding that the
contribution will not be used by the recipient organization for
one or more of the purposes in paragraph (a); or
(6) the erection, acquisition, improvement, or expansion of
real property or capital assets which will be used for one or
more of the purposes in paragraph (a), clause (7), unless the
organization making the expenditures notifies the board at least
15 days before making the expenditure; or
(7) a contribution to a statutory or home rule charter
city, county, or town by a licensed organization with the
knowledge that the governmental unit intends to use the
contribution for a pension or retirement fund.
Sec. 2. [471.6151] [CONTRIBUTIONS FROM LAWFUL GAMBLING
ORGANIZATIONS.]
Contributions of receipts derived from lawful gambling to a
statutory or home rule charter city, county, or town made by an
organization licensed to conduct lawful gambling under chapter
349 may not be used for the benefit of a pension or retirement
fund.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective the day following final
enactment.
Presented to the governor May 14, 1993
Signed by the governor May 17, 1993, 4:52 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes