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                            CHAPTER 448-H.F.No. 2493 
                  An act relating to retirement; modifying provisions of 
                  various local pension plans; making miscellaneous 
                  benefit and administrative changes; including 
                  nonprofit firefighting corporations as municipalities 
                  in certain circumstances; amending Minnesota Statutes 
                  1994, sections 353B.11, subdivisions 1 and 3; 353B.13; 
                  and 466.01, subdivisions 1 and 6; Laws 1965, chapter 
                  519, section 1, as amended; Laws 1992, chapter 563, 
                  section 5; Laws 1994, chapter 490, section 2; and Laws 
                  1995, chapter 262, article 7, section 1. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
                                   ARTICLE 1 
                    ITASCA COUNTY MEDICAL CENTER; RETIREMENT 
           Section 1.  Laws 1995, chapter 262, article 7, section 1, 
        is amended to read: 
           Section 1.  [TRANSFERRED EMPLOYEES.] 
           This section applies if the Itasca county medical center is 
        sold, leased, or transferred to a private entity or public 
        corporation.  Notwithstanding any provision of Minnesota 
        Statutes, sections 356.24 and 356.25 to the contrary, to 
        facilitate the orderly transition of employees affected by the 
        sale, lease, or transfer, the county may, in its discretion, 
        make, from assets to be transferred to the private entity or 
        public corporation, payments to a qualified pension plan 
        established for the transferred employees by the private 
        entity or public corporation, to provide benefits substantially 
        similar to those the employees would have been entitled to under 
        the provisions of the public employees retirement association, 
        Minnesota Statutes 1994, sections 353.01 to 353.46. 
           Sec. 2.  [TREATMENT OF TERMINATED, NONVESTED EMPLOYEES.] 
           Subdivision 1.  [ELIGIBILITY.] (a) An eligible individual 
        is an individual who: 
           (1) is an employee of the Itasca county medical center 
        immediately prior to the sale, lease, or transfer of that 
        facility to a private entity or public corporation; 
           (2) is terminated at the time of the sale, lease, or 
        transfer; and 
           (3) had less than three years of service credit in the 
        public employees retirement association plan at the date of 
        termination. 
           (b) For an eligible individual under paragraph (a), the 
        county may make a member contribution equivalent payment under 
        subdivision 2. 
           Subd. 2.  [MEMBER CONTRIBUTION EQUIVALENT PAYMENT.] The 
        member contribution equivalent payment is an amount equal to the 
        total refund provided by Minnesota Statutes, section 353.34, 
        subdivisions 1 and 2.  To be eligible for the member 
        contribution equivalent payment, the individual in subdivision 
        1, paragraph (a), must apply for a refund under Minnesota 
        Statutes, section 353.34, subdivisions 1 and 2, within one year 
        of termination.  A member contribution equivalent amount 
        exceeding $200 must be made directly to an individual retirement 
        account under section 408(a) of the federal Internal Revenue 
        Code, as amended, or to another qualified plan.  A member 
        contribution equivalent amount of $200 or less may, at the 
        preference of the individual, be made to the individual or to an 
        individual retirement account under section 408(a) of the 
        federal Internal Revenue Code, as amended, or to another 
        qualified plan. 
           Sec. 3.  [EFFECTIVE DATE.] 
           Sections 1 and 2 are effective on the day following 
        approval by the Itasca county board and compliance with 
        Minnesota Statutes, section 645.021. 
                                   ARTICLE 2 
                  PUBLIC SAFETY EMPLOYEE RETIREMENT PROVISIONS 
           Section 1.  Laws 1992, chapter 563, section 5, is amended 
        to read: 
           Sec. 5.  [ST. PAUL POLICE AND FIRE CONSOLIDATION ACCOUNTS; 
        LIMITATION ON POSTRETIREMENT BENEFIT REDUCTIONS.] 
           (a) A monthly service pension or retirement benefit payment 
        from the St. Paul fire department relief association 
        consolidation account or the St. Paul police relief association 
        consolidation account may not be reduced in amount to an amount 
        that is less than that received by the person for the 
        immediately previous month.  
           (b) The service pension or retirement benefit payable from 
        the St. Paul fire department consolidation account or from the 
        St. Paul police consolidation account to a person who becomes 
        newly entitled to that service pension or retirement benefit may 
        not be an amount that is less than the service pension or 
        retirement benefit then payable to a comparably situated 
        pensioner or benefit recipient of that consolidation account. 
           This (c) The limitation in paragraph (a) or (b) may not be 
        construed to limit the power of the board of trustees of the 
        relief executive director of the public employees retirement 
        association to require proof of continuing eligibility for 
        receipt of a disability benefit or a survivor benefit, or to 
        require the reduction in amount or elimination of a disability 
        benefit in the event of changed medical circumstances, or to 
        require the reduction in amount or elimination of a survivor 
        benefit in the event of changes in eligibility. 
           Sec. 2.  Laws 1994, chapter 490, section 2, is amended to 
        read: 
           Sec. 2.  [AUSTIN FIRE DEPARTMENT RELIEF ASSOCIATION; 
        SURVIVOR COVERAGE FOR CERTAIN SPOUSES OF CERTAIN RETIRED 
        FIREFIGHTERS.] 
           (a) Notwithstanding any provision to the contrary of the 
        general or special laws governing the Austin fire department 
        relief association, the articles of incorporation of the relief 
        association, or the bylaws of the relief association, a person 
        described in paragraph (b) is entitled to a surviving spouse 
        benefit as provided in paragraph (c). 
           (b) A person entitled under paragraph (a) is a person who: 
           (1) was the legally married spouse of a deceased retired or 
        disabled member of the Austin fire department relief association 
        at the time of the deceased member's death; 
           (2) married the retired or disabled member after the date 
        on which the member terminated active employment as a 
        firefighter by the Austin fire department; and 
           (3) was married for at least three years before the date of 
        the death of the retired or disabled member; and 
           (3) was married to a retired or disabled member whose prior 
        spouse, if any, predeceased the member.  
           (c) The surviving spouse benefit is an amount equal to the 
        amount of a surviving spouse benefit payable by the Austin fire 
        department relief association to the surviving spouse of a 
        deceased active member of the relief association under Laws 
        1949, chapter 87, section 26, subdivision 4, as amended by Laws 
        1965, chapter 418, section 5, reduced by any amount awarded or 
        payable from the service pension or disability benefit of the 
        deceased former firefighter to a former spouse of the deceased 
        active member by virtue of the legal dissolution of the member's 
        marriage to the former spouse. 
           Sec. 3.  [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION; 
        AUTHORIZATION OF VARIOUS ADMINISTRATIVE CHANGES.] 
           Notwithstanding any provision of any law to the contrary, 
        the Minneapolis fire department relief association is authorized 
        to implement the following administrative and other 
        modifications: 
           (1) five-year vesting under Minnesota Statutes, section 
        423A.19, retroactive to the April 1, 1987, date when the change 
        was approved by the Minneapolis city council, despite the 
        failure to meet the filing requirement of Minnesota Statutes, 
        section 423A.19, subdivision 4; 
           (2) the period for applying for a disability benefit by or 
        on behalf of a disabled member increased from 30 days after the 
        beginning of the disability to 90 days after the beginning of 
        the disability; 
           (3) a salary for services for the members of the board of 
        trustees of the relief association who are elected members and 
        who are not officers in an amount equal to 2.5 percent of the 
        maximum salary of a first grade firefighter; 
           (4) a salary for the president of the relief association 
        increased to an amount equal to ten percent of the maximum 
        salary of a first grade firefighter; 
           (5) a salary for the executive secretary of the relief 
        association increased to an amount equal to 30 percent of the 
        maximum salary of a first grade firefighter; and 
           (6) eligibility for the surviving spouse of a deceased 
        deferred member, the dependent surviving child or children of a 
        deceased deferred member, or a combination, to receive annual 
        postretirement payments under Laws 1989, chapter 319, article 
        19, section 7, as amended by Laws 1992, chapter 471, article 2, 
        section 5, with confirmation and ratification of any past 
        payments of annual postretirement payments to survivors of 
        deceased deferred members since June 1, 1989. 
           Sec. 4.  [ST. LOUIS PARK; EXCLUSIONS FROM FIREFIGHTERS 
        CIVIL SERVICE.] 
           Notwithstanding Minnesota Statutes, chapter 420, in the 
        city of St. Louis Park, volunteer and paid-on-call firefighters, 
        who are employees of the fire department, are excluded from 
        civil service. 
           Sec. 5.  [EFFECTIVE DATE.] 
           Subdivision. 1.  [ST. PAUL POLICE AND FIRE.] Section 1 is 
        effective retroactively to December 31, 1993, upon approval by 
        the city council of the city of St. Paul and compliance with 
        Minnesota Statutes, section 645.021. 
           Subd. 2.  [AUSTIN FIRE.] Section 2 is effective upon 
        approval by the Austin city council and compliance with 
        Minnesota Statutes, section 645.021. 
           Subd. 3.  [MINNEAPOLIS FIRE.] (a) Section 3 is effective on 
        the day following final approval by the Minneapolis city council 
        and compliance with Minnesota Statutes, section 645.021. 
           (b) The city council resolution must specify the provisions 
        contained in section 3 that it is approving.  The city council 
        may approve some or all of the provisions contained in section 3.
           Subd. 4.  [ST. LOUIS PARK POLICE AND FIRE.] Section 4 takes 
        effect the day after the chief clerical officer of the city of 
        St. Louis Park complies with Minnesota Statutes, section 
        645.021, subdivision 3. 
                                   ARTICLE 3 
               MINNEAPOLIS FIRE; SURVIVING SPOUSE BENEFIT CHANGE 
           Section 1.  Laws 1965, chapter 519, section 1, as amended 
        by Laws 1967, chapter 819, section 1; Laws 1969, chapter 123, 
        section 1; Laws 1975, chapter 57, section 1; Laws 1977, chapter 
        164, section 2; Laws 1990, chapter 589, section 5; and Laws 
        1992, chapter 454, section 2, is amended to read: 
           Section 1.  [MINNEAPOLIS, CITY OF; FIREFIGHTER'S RELIEF 
        ASSOCIATION; SURVIVING SPOUSE'S ENTITLEMENT.] Notwithstanding 
        the provisions of Minnesota Statutes 1965, Section 69.48, to the 
        contrary, when a service pensioner, disability pensioner, or 
        deferred pensioner, or an active member of a relief association 
        dies, leaving: 
           (1) A surviving spouse who was a legally married spouse, 
        residing with the decedent, and who was married while or prior 
        to the time the decedent was on the payroll of the fire 
        department in the case of a deceased active member; and or who, 
        in case the deceased member was a service, disability or 
        deferred pensioner, was legally married to the member at least 
        one year before the member's retirement from the fire department 
        or for at least five years before the member's death if the 
        marriage occurred after retirement; or 
           (2) A child or children who were living while the deceased 
        was on the payroll of the fire department, or born within nine 
        months after the decedent was withdrawn from the payroll of the 
        fire department, the surviving spouse and the child or children 
        shall be entitled to a pension or pensions, as follows: 
           (a) To the surviving spouse, a pension of not less than 17 
        units, and not to exceed the total of 22 units per month, as the 
        bylaws of the association provide, for life; provided, that if 
        the spouse shall remarry then the pension shall cease and 
        terminate as of the date of remarriage; provided, further, if 
        the remarriage terminates for any reason, the surviving spouse 
        shall again be entitled to a pension as the bylaws of the 
        association provide; 
           (b) To the child or children, if their other parent is 
        living, a pension of not to exceed eight units per month for 
        each child up to the time each child reaches the age of not less 
        than 16 years and not to exceed an age of 18 years; provided, 
        however, upon approval by the board of trustees, such a child 
        who is a full-time student, upon proof of compliance with the 
        provisions of this act, may be entitled to such pension so long 
        as the child is a full-time student and has not reached 22 years 
        of age, all in conformity with the bylaws of the association; 
        provided, further, the total pensions hereunder for the 
        surviving spouse and children of the deceased member shall not 
        exceed the sum of 41 units per month; 
           (c) A child or children of a deceased member after the 
        death of their other parent, or in the event their other parent 
        predeceases the member, be entitled to receive a pension or 
        pensions in such amount as the board of trustees of the 
        association shall deem necessary to properly support the child 
        or children until they reach the age of not less than 16 and not 
        more than 18 years; provided, however, upon approval by the 
        board of trustees, such a child who is a full-time student, upon 
        proof of compliance with the provisions of this act, may be 
        entitled to such pension so long as the child is a full-time 
        student and has not reached 22 years of age, as the bylaws of 
        the association may provide; but the total amount of the pension 
        or pensions hereunder for any child or children shall not exceed 
        the sum of 41 units per month; 
           (d) For the purposes of this act, a full-time student is 
        defined as an individual who is in full-time attendance as a 
        student at an educational institution.  Whether or not the 
        student was in full-time attendance would be determined by the 
        board of trustees of the association in the light of the 
        standards and practices of the school involved.  Specifically 
        excluded is a person who is paid by the person's employer while 
        attending school at the request of the person's employer.  
        Benefits may continue during any period of four calendar months 
        or less in any 12 month period in which a person does not attend 
        school if the person shows to the satisfaction of the board of 
        trustees that the person intends to continue in full-time school 
        attendance immediately after the end of the period.  An 
        educational institution is defined so as to permit the payment 
        of benefits to students taking vocational or academic courses in 
        all approved, accredited or licensed schools, colleges, and 
        universities.  The board of trustees shall make the final 
        determination of eligibility for benefits if any question arises 
        concerning the approved status of the educational institution 
        which the student attends or proposes to attend; 
           (e) In the event that a child who is receiving a pension as 
        provided above shall marry before the age of 22 years, the 
        pension shall cease as of the date of the marriage. 
           Sec. 2.  [EFFECTIVE DATE.] 
           Section 1 is effective on the day following approval by the 
        Minneapolis city council and compliance with Minnesota Statutes, 
        section 645.021. 
                                   ARTICLE 4 
                               CONFORMING CHANGES 
           Section 1.  Minnesota Statutes 1994, section 353B.11, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [ELIGIBILITY; SURVIVING SPOUSE BENEFIT.] 
        (a) Except as specified in paragraph (b), (c), (d), (e), (f), 
        (g), or (f) (h), the person who survives a deceased active, 
        deferred, or retired member, who was legally married to the 
        member at the time of the death of the deceased member, who was 
        legally married to the member for at least one year before the 
        separation from active service if the deceased member was a 
        deceased, deferred, or retired member and who was residing with 
        the member at the time of the death of the deceased member shall 
        be entitled to receive a surviving spouse benefit.  
           (b) The person who survives a deceased active, deferred, or 
        retired member, who was legally married to the member at the 
        time of the death of the deceased member, who was legally 
        married to the member at the time of separation from active 
        service if the deceased member was a deceased deferred or 
        retired member and who was residing with the member at the time 
        of the death of the member shall be entitled to receive a 
        surviving spouse benefit in the case of former members of the 
        following consolidating relief associations:  
           (1) Albert Lea police relief association; 
           (2) Anoka police relief association; 
           (3) Austin firefighters relief association; 
           (4) Austin police relief association; 
           (5) (4) Brainerd police benefit association; 
           (6) (5) Columbia Heights police relief association; 
           (7) (6) Crookston fire department relief association; 
           (8) (7) Crookston police relief association; 
           (9) (8) Fairmont police benefit association; 
           (10) (9) Faribault police benefit association; 
           (11) (10) Mankato fire department relief association; 
           (12) (11) Red Wing police relief association; 
           (13) (12) South St. Paul police relief association; 
           (14) (13) Virginia fire department relief association; 
           (15) (14) Virginia police relief association; and 
           (16) (15) West St. Paul police relief association. 
           (c) The person who survives a deceased active, deferred, or 
        retired member, who was legally married to the member at the 
        time of the death of the deceased member, and who was legally 
        married to the member at the time of separation from active 
        service if the deceased member was a deceased deferred or 
        retired member shall be entitled to receive a surviving spouse 
        benefit in the case of former members of the following 
        consolidating relief associations:  
           (1) Chisholm police relief association; 
           (2) Hibbing police relief association; 
           (3) Mankato police benefit association; and 
           (4) New Ulm police relief association.  
           (d) The person who survives a deceased active, deferred, or 
        retired member, who was legally married to the member at the 
        time of the death of the deceased member, who was either legally 
        married to the member at the time of separation from active 
        service or legally married the member after the time of 
        separation from active service and was married for at least 
        three years before the date of death of the member if the 
        deceased member was a deceased deferred or retired member, and 
        who was residing with the member at the time of the death of the 
        member is entitled to receive a surviving spouse benefit in the 
        case of former members of the Austin firefighters relief 
        association.  
           (e) The person who survives a deceased active, deferred, or 
        retired member, who was legally married to the member at the 
        time of the death of the deceased member, who was legally 
        married to the member for at least five years before the 
        separation from active service death if the deceased member was 
        the recipient of a service pension or was entitled to a deferred 
        service pension, and who was residing with the member at the 
        time of the death of the deceased member in the case of former 
        members of the Minneapolis fire department relief association.  
           (e) (f) The person who survives a deceased active, 
        deferred, or retired member, who was legally married to the 
        member at the time of the death of the deceased member, who was 
        residing with the member at the time of the death of the 
        decedent, and, if the deceased member was the recipient of a 
        service pension or was entitled to a deferred service pension at 
        the time of death, who was legally married to the member for at 
        least five years before the member's death, in the case of 
        former members of the Minneapolis police relief association.  
           (f) (g) The person who survives a deceased active, 
        deferred, or retired member, who was legally married to the 
        member at the time of the death of the deceased member, who was 
        legally married to the member for at least three years before 
        the separation from active service if the deceased member was a 
        deceased, retired, or deferred member and who was residing with 
        the member at the time of the death of the member shall be 
        entitled to receive a surviving spouse benefit in the case of 
        former members of the South St. Paul firefighters relief 
        association.  
           (g) (h) The person who survives a deceased active, 
        deferred, or retired member who was legally married to the 
        member at the time of the death of the deceased member, who was 
        legally married to the member for at least one year before the 
        separation from active service if the deceased member was a 
        deceased, deferred, or retired member and who had not deserted 
        the member at the time of the death of the deceased member shall 
        be entitled to receive a surviving spouse benefit in the case of 
        former members of the St. Paul police relief association. 
           Sec. 2.  Minnesota Statutes 1994, section 353B.11, 
        subdivision 3, is amended to read: 
           Subd. 3.  [AMOUNT; SURVIVING SPOUSE BENEFIT.] (a) The 
        surviving spouse benefit shall be 30 percent of the salary base 
        for the former members of the following consolidating relief 
        associations:  
           (1) Albert Lea firefighters relief association; 
           (2) Albert Lea police relief association; 
           (3) Anoka police relief association; 
           (4) Austin firefighters relief association; 
           (5) Austin police relief association; 
           (6) (5) Brainerd police benefit association; 
           (7) (6) Crookston police relief association; 
           (8) (7) Faribault fire department relief association; and 
           (9) (8) West St. Paul firefighters relief association.  
           (b) The surviving spouse benefit shall be 25 percent of the 
        salary base for the former members of the following 
        consolidating relief associations:  
           (1) Chisholm police relief association; 
           (2) Duluth firefighters relief association; 
           (3) Duluth police pension association; 
           (4) Fairmont police benefit association; 
           (5) Red Wing fire department relief association; 
           (6) South St. Paul police relief association; and 
           (7) West St. Paul police relief association. 
           (c) The surviving spouse benefit shall be 24 percent of the 
        salary base for the former members of the following 
        consolidating relief associations: 
           (1) Fridley police pension association; 
           (2) Richfield police relief association; 
           (3) Rochester fire department relief association; 
           (4) Rochester police relief association; 
           (5) Winona fire department relief association; and 
           (6) Winona police relief association. 
           (d) The surviving spouse benefit shall be 40 percent of the 
        salary base for the former members of the following 
        consolidating relief associations: 
           (1) Columbia Heights fire department relief association, 
        paid division; 
           (2) New Ulm police relief association; and 
           (3) Richfield fire department relief association.  
           (e) The surviving spouse benefit shall be $250 per month 
        for the former members of the following consolidating relief 
        associations: 
           (1) Hibbing firefighters relief association; and 
           (2) Hibbing police relief association. 
           (f) The surviving spouse benefit shall be 23.75 percent of 
        the salary base for the former members of the following 
        consolidating relief associations: 
           (1) Crystal police relief associations; and 
           (2) Minneapolis police relief association.  
           (g) The surviving spouse benefit shall be 32 percent of the 
        salary base for the former members of the following 
        consolidating relief associations: 
           (1) St. Cloud fire department relief association; and 
           (2) St. Cloud police relief association. 
           (h) The surviving spouse benefit shall be one-half of the 
        service pension or disability benefit which the deceased member 
        was receiving as of the date of death, or of the service pension 
        which the deferred member would have been receiving if the 
        service pension had commenced as of the date of death or of the 
        service pension which the active member would have received 
        based on the greater of the allowable service credit of the 
        person as of the date of death or 20 years of allowable service 
        credit if the person would have been eligible as of the date of 
        death, for the former members of the following consolidating 
        relief associations: 
           (1) Virginia fire department relief association; and 
           (2) Virginia police relief association. 
           (i) The surviving spouse benefit shall be the following for 
        the former members of the consolidating relief associations as 
        indicated: 
           (1) 30 percent of the salary base, reduced by any amount 
        awarded or payable from the service pension or disability 
        benefit of the deceased former firefighter to a former spouse of 
        the member by virtue of the legal dissolution of the member's 
        marriage to the former spouse if the surviving spouse married 
        the member after the time of separation from active service, 
        Austin firefighters relief association; 
           (2) 27.333 percent of the salary base, or one-half of the 
        service pension payable to or accrued by the deceased former 
        member, whichever is greater, Bloomington police relief 
        association; 
           (2) (3) 72.25 percent of the salary base, Buhl police 
        relief association; 
           (3) (4) 50 percent of the service pension which the active 
        member would have received based on allowable service credit to 
        the date of death and prospective service from the date of death 
        until the date on which the person would have attained the 
        normal retirement age, 50 percent of the service pension which 
        the deferred member would have been receiving if the service 
        pension had commenced as of the date of death or $175 per month 
        if the deceased member was receiving a service pension or 
        disability benefit as of the date of death, Chisholm 
        firefighters relief association; 
           (4) (5) two-thirds of the service pension or disability 
        benefit which the deceased member was receiving as of the date 
        of death, or of the service pension which the deferred member 
        would have been receiving if the service pension had commenced 
        as of the date of death or of the service pension which the 
        active member would have received based on the greater of the 
        allowable service credit of the person as of the date of death 
        or 20 years of allowable service credit if the person would have 
        been eligible as of the date of death, Columbia Heights police 
        relief association; 
           (5) (6) the greater of $300 per month or one-half of the 
        service pension or disability benefit which the deceased member 
        was receiving as of the date of death, or of the service pension 
        which the deferred member would have been receiving if the 
        service pension had commenced as of the date of death or of the 
        service pension which the active member would have received 
        based on the allowable service credit of the person as of the 
        date of death if the person would have been eligible as of the 
        date of death, Crookston fire department relief association; 
           (6) (7) $100 per month, Faribault police benefit 
        association; 
           (7) (8) 60 percent of the service pension or disability 
        benefit which the deceased member was receiving as of the date 
        of death, or of the service pension which the deferred member 
        would have been receiving if the service pension had commenced 
        as of the date of death or of the service pension which the 
        active member would have received based on the allowable service 
        credit of the person as of the date of death if the person would 
        have been eligible as of the date of death, Mankato fire 
        department relief association; 
           (8) (9) $175 per month, Mankato police benefit association; 
           (9) (10) 26.25 percent of the salary base, Minneapolis fire 
        department relief association; 
           (10) (11) equal to the service pension or disability 
        benefit which the deceased member was receiving as of the date 
        of death, or of the service pension which the deferred member 
        would have been receiving if the service pension had commenced 
        as of the date of death or of the service pension which the 
        active member would have received based on the allowable service 
        credit of the person as of the date of death if the person would 
        have been eligible as of the date of death, Red Wing police 
        relief association; 
           (11) (12) 40 percent of the salary base for a surviving 
        spouse of a deceased active member, disabled member, or retired 
        or deferred member with at least 20 years of allowable service, 
        or the prorated portion of 40 percent of the salary base that 
        bears the same relationship to 40 percent that the deceased 
        member's years of allowable service bear to 20 years of 
        allowable service for the surviving spouse of a deceased retired 
        or deferred member with at least ten but less than 20 years of 
        allowable service, St. Louis Park fire department relief 
        association; 
           (12) (13) 26.6667 percent of the salary base, St. Louis 
        Park police relief association; 
           (13) (14) 27.5 percent of the salary base, St. Paul fire 
        department relief association; 
           (14) (15) 20 percent of the salary base, St. Paul police 
        relief association; and 
           (15) (16) 27 percent of the salary base, South St. Paul 
        firefighters relief association. 
           Sec. 3.  Minnesota Statutes 1994, section 353B.13, is 
        amended to read: 
           353B.13 [OTHER BENEFIT COVERAGE.] 
           (a) A person who is a former member of the Austin 
        firefighters relief association who receives a service pension 
        or a disability pension from the relief association and who is 
        under age 65 or who is not yet eligible for the receipt of 
        federal Medicare benefits, whichever occurs first, and the 
        person's spouse, if the spouse would be eligible for a surviving 
        spouse benefit upon the death of the pension recipient, is 
        entitled to receive a health or medical insurance premium 
        benefit in an amount equal to the amount that the city of Austin 
        would pay under the applicable collective bargaining agreement 
        for medical or health insurance coverage for a firefighter who 
        is employed by the city, who has a spouse and who has no other 
        dependents, payable monthly, in addition to any other pension 
        amount received by the eligible pension recipient, and not 
        subject to any postretirement adjustments applicable to service 
        pensions or disability pensions. 
           (b) A person who is a former member of the New Ulm police 
        relief association, who retired from the New Ulm police 
        department after October 15, 1985, and who is receiving a 
        service pension after the effective date of consolidation as 
        provided in section 353A.06, shall be entitled to receive a 
        supplemental benefit of $80 per month for each month following 
        the date of retirement until the last day of the month in which 
        the person attains the age of 65 years. 
           (b) (c) The payment of the premiums for medical and dental 
        insurance coverage and the payment of a lump sum amount at 
        retirement for former members of the St. Cloud fire department 
        relief association and the payment of the premiums for medical 
        insurance coverage and the payment of a lump sum amount at 
        retirement for former members of the St. Cloud police relief 
        association as provided for in the governing benefit plan 
        documents shall be considered to be special benefit coverage 
        governed by section 353A.08, subdivision 6.  
           (c) (d) A person who is a former member of the St. Paul 
        fire department relief association who is unable to perform 
        normally assigned fire department service due to a medically 
        determinable physical or mental illness or injury and who is 
        removed from the fire department payroll, upon application, 
        until recovery, or for a period of 90 days or for a period of 
        150 days upon a showing of need and a medical report indicating 
        a reasonable prognosis for recovery due to the extended period, 
        whichever occurs first, shall be entitled to a sick relief 
        benefit for each day of that inability, payable monthly, in an 
        amount of 1.5625 percent of the salary base per day.  
           Sec. 4.  [EFFECTIVE DATE.] 
           Subdivision 1.  [AUSTIN FIRE.] Sections 1 and 2 with 
        respect to the Austin fire department relief association and 
        section 3 are effective on the effective date of article 2, 
        section 2. 
           Subd. 2.  [MINNEAPOLIS FIRE.] Section 1 with respect to the 
        Minneapolis fire department relief association is effective on 
        the effective date of article 3, section 1. 
                                   ARTICLE 5
                             NORWOOD-YOUNG AMERICA
             CONSOLIDATED VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
           Section 1.  [CONSOLIDATED NORWOOD-YOUNG AMERICA VOLUNTEER 
        FIREFIGHTERS RELIEF ASSOCIATION.] 
           Subdivision 1.  [COMBINATION.] The cities of Norwood and 
        Young America in Carver county have conducted the necessary 
        proceedings to combine as one municipality to be known as 
        Norwood-Young America effective January 1, 1997, pursuant to 
        Minnesota Statutes, sections 465.81 to 465.87. 
           Subd. 2.  [CREATION.] The Norwood volunteer firefighters 
        relief association and the Young America volunteer firefighters 
        relief association are consolidated into a single volunteer 
        firefighters relief association in the manner provided by this 
        chapter.  The consolidated volunteer firefighters relief 
        association is to be governed by this chapter and the applicable 
        provisions of Minnesota Statutes, chapters 69, 317A, 356, 356A, 
        and 424A. 
           Subd. 3.  [CONSOLIDATED VOLUNTEER FIREFIGHTERS RELIEF 
        ASSOCIATION.] The consolidated volunteer firefighters relief 
        association must be incorporated under Minnesota Statutes, 
        chapter 317A.  The incorporators of the consolidated relief 
        association must include at least one board member of the former 
        Norwood volunteer firefighters relief association and at least 
        one board member of the former Young America volunteer 
        firefighters relief association.  The consolidated relief 
        association must be incorporated no later than February 1, 1997. 
           Sec. 2.  [GOVERNANCE OF CONSOLIDATED VOLUNTEER FIREFIGHTERS 
        RELIEF ASSOCIATION.] 
           Subdivision 1.  [BOARD OF TRUSTEES.] The consolidated 
        volunteer firefighters relief association is governed by a board 
        of trustees as provided in Minnesota Statutes, section 424A.04, 
        subdivision 1. 
           Subd. 2.  [COMPOSITION OF BOARD.] The board must have three 
        officers, including a president, a secretary, and a treasurer.  
        The membership of the consolidated volunteer firefighters relief 
        association must elect the three officers from the board 
        members.  A board of trustees member may not hold more than one 
        officer position at the same time. 
           Subd. 3.  [BOARD ADMINISTRATION.] The board of trustees 
        must administer the affairs of the relief association consistent 
        with this chapter and the applicable provisions of Minnesota 
        Statutes, chapters 69, 356A, and 424A. 
           Sec. 3.  [SPECIAL AND GENERAL FUNDS.] 
           The consolidated volunteer firefighters relief association 
        must establish and maintain a special fund and a general fund.  
        The special fund must be established and maintained as provided 
        in Minnesota Statutes, section 424A.05.  The general fund must 
        be established and maintained as provided in Minnesota Statutes, 
        section 424A.06. 
           Sec. 4.  [EFFECTIVE DATE OF CONSOLIDATION; TRANSFERS.] 
           The first business day occurring 30 days after the 
        incorporation of the consolidated volunteer firefighters relief 
        association under section 1 is the effective date of 
        consolidation.  On the effective date of consolidation, the 
        administration, records, assets, and liabilities of the prior 
        Norwood volunteer firefighters relief association and the prior 
        Young America volunteer firefighters relief association are 
        transferred to the consolidated volunteer firefighters relief 
        association.  On the effective date of consolidation, the 
        Norwood volunteer firefighters relief association and the Young 
        America volunteer firefighters relief association cease to exist 
        as legal entities, except for the purposes of winding up 
        association affairs as provided by this chapter. 
           Sec. 5.  [TRANSFER OF ADMINISTRATION.] 
           On the effective date of consolidation, the administration 
        of the prior relief associations is transferred to the board of 
        trustees of the consolidated volunteer firefighters relief 
        association. 
           Sec. 6.  [TRANSFER OF RECORDS.] 
           On the effective date of consolidation, the secretary and 
        the treasurer of the Norwood volunteer firefighters relief 
        association and the secretary and treasurer of the Young America 
        volunteer firefighters relief association shall transfer all 
        records and documents relating to the prior relief associations 
        to the secretary and treasurer of the consolidated volunteer 
        firefighters relief association. 
           Sec. 7.  [TRANSFER OF SPECIAL FUND ASSETS AND LIABILITIES.] 
           (a) On the effective date of consolidation, the secretary 
        and the treasurer of the Norwood volunteer firefighters relief 
        association and the secretary and treasurer of the Young America 
        volunteer firefighters relief association shall transfer the 
        assets of the special fund of the applicable relief association 
        to the special fund of the consolidated relief association.  
        Unless the appropriate secretary and treasurer decide otherwise, 
        the assets may be transferred as investment securities rather 
        than cash.  The transfer must include any accounts receivable.  
        The appropriate secretary must settle any accounts payable from 
        the special fund of the relief association before the effective 
        date of consolidation. 
           (b) Upon the transfer of the assets of the special fund of 
        a prior relief association, the pension liabilities of that 
        special fund become the obligation of the special fund of the 
        consolidated volunteer firefighters relief association. 
           (c) Upon the transfer of the prior relief association 
        special fund assets, the board of trustees of the consolidated 
        volunteer firefighters relief association has legal title to and 
        management responsibility for the transferred assets as trustees 
        for persons having a beneficial interest in those assets arising 
        out of the benefit coverage provided by the prior relief 
        association. 
           (d) The consolidated volunteer firefighters relief 
        association is the successor in interest in all claims for and 
        against the special funds of the prior Norwood volunteer 
        firefighters relief association and the prior Young America 
        volunteer firefighters relief association, or the cities of 
        Norwood and Young America, with respect to the special funds of 
        the prior relief associations.  The status of successor in 
        interest does not apply to any claim against a prior relief 
        association, the city in which that relief association is 
        located, or any person connected with the prior relief 
        association or the city, based on any act or acts that were not 
        done in good faith and that constituted a breach of fiduciary 
        responsibility under common law or Minnesota Statutes, chapter 
        356A. 
           Sec. 8.  [DISSOLUTION OF PRIOR GENERAL FUND BALANCES.] 
           Prior to the effective date of consolidation, the secretary 
        of the Norwood volunteer firefighters relief association and the 
        secretary of the Young America volunteer firefighters relief 
        association shall settle any accounts payable from the 
        respective general fund or any other relief association fund in 
        addition to the relief association special fund.  Investments 
        held by a fund of the prior relief associations in addition to 
        the special fund must be liquidated before the effective date of 
        consolidation as the bylaws of the relief association provide.  
        Prior to the effective date of consolidation, the respective 
        relief associations must pay all applicable general fund 
        expenses from their respective general funds.  Any balance 
        remaining in the general fund or in a fund other than the relief 
        association special fund as of the effective date of 
        consolidation must be paid to the new general fund of the 
        consolidated volunteer relief association. 
           Sec. 9.  [TERMINATION OF PRIOR RELIEF ASSOCIATIONS.] 
           Following the transfer of administration, records, special 
        fund assets, and special fund liabilities from the prior relief 
        associations to the consolidated volunteer firefighters relief 
        association, the Norwood volunteer firefighters relief 
        association and the Young America volunteer firefighters relief 
        association cease to exist as legal entities for any purpose.  
        The city clerk of the city of Norwood-Young America shall notify 
        the following governmental officials of the termination of the 
        respective volunteer firefighters relief associations and of the 
        establishment of the consolidated volunteer firefighters relief 
        association: 
           (1) Minnesota secretary of state; 
           (2) Minnesota state auditor; 
           (3) Minnesota commissioner of revenue; and 
           (4) commissioner of the federal Internal Revenue Service. 
           Sec. 10.  [ADMINISTRATIVE EXPENSES.] 
           The payment of authorized administrative expenses of the 
        consolidated volunteer firefighters relief association must be 
        from the special fund of the consolidated volunteer firefighters 
        relief association in accordance with Minnesota Statutes, 
        section 69.80, and as provided for in the bylaws of the 
        consolidated volunteer firefighters relief association and 
        approved by the board of trustees or the consolidated volunteer 
        firefighters relief association.  The payment of any other 
        expenses of the consolidated volunteer firefighters relief 
        association must be from the general fund of the consolidated 
        volunteer firefighters relief association in accordance with 
        Minnesota Statutes, section 69.80, and as provided for in the 
        bylaws of the consolidated volunteer firefighters relief 
        association and approved by the board of trustees of the 
        consolidated volunteer firefighters relief association. 
           Sec. 11.  [VALIDATION OF CURRENT BENEFIT PLANS AND PRIOR 
        ACTIONS.] 
           Notwithstanding any other law, the benefit plans of the 
        Norwood volunteer firefighters relief association and the Young 
        America volunteer firefighters relief association, as reflected 
        in each association's articles of incorporation and bylaws as of 
        December 31, 1995, are ratified and validated.  Acts previously 
        taken by the Norwood volunteer firefighters relief association 
        and the Young America volunteer firefighters relief association 
        in association with those ratified by articles of incorporation 
        are also ratified and validated. 
           Sec. 12.  [BENEFITS; FUNDING.] 
           After the effective date of consolidation, the service 
        pension for a member of the consolidated firefighters relief 
        association is $550 for each year of past service credited by 
        either the Norwood volunteer firefighters relief association or 
        the Young America volunteer firefighters relief association.  
        Future service credited by the consolidated firefighters relief 
        association is payable in a lump sum and is to be so provided in 
        the bylaws of the consolidated volunteer firefighters relief 
        association.  The service pension may be subsequently changed by 
        appropriate amendment to the bylaws approved by the board of 
        trustees and the city council of the city of Norwood-Young 
        America under Minnesota Statutes, sections 69.772, subdivision 
        6, and 424A.02, subdivisions 1 and 2.  In its budget and tax 
        levy for the year 1997, the city of Norwood-Young America must 
        provide that funds will be transferred to the special fund of 
        the consolidated volunteer firefighters relief association to 
        fully fund the actuarial accrued liability of the special fund 
        as determined under Minnesota Statutes, section 69.772, 
        subdivisions 2 and 2a.  Subsequent budgets and tax levies must 
        comply with Minnesota Statutes, section 69.772, subdivisions 3 
        and 4. 
           Sec. 13.  [EFFECTIVE DATE.] 
           Sections 1 to 12 are effective the day following approval 
        by the city council of the city of Norwood and approval by the 
        city council of the city of Young America and compliance with 
        Minnesota Statutes, section 645.021. 
                                   ARTICLE 6 
                      NONPROFIT FIREFIGHTING CORPORATIONS 
           Section 1.  Minnesota Statutes 1994, section 466.01, 
        subdivision 1, is amended to read: 
           Subdivision 1.  [MUNICIPALITY.] For the purposes of 
        sections 466.01 to 466.15, "municipality" means any city, 
        whether organized under home rule charter or otherwise, any 
        county, town, public authority, public corporation, nonprofit 
        firefighting corporation that has associated with it a relief 
        association as defined in section 424A.001, subdivision 4, 
        special district, school district, however organized, county 
        agricultural society organized pursuant to chapter 38, joint 
        powers board or organization created under section 471.59 or 
        other statute, public library, regional public library system, 
        multicounty multitype library system, family services 
        collaborative established under section 121.8355, other 
        political subdivision, or community action agency. 
           Sec. 2.  Minnesota Statutes 1994, section 466.01, 
        subdivision 6, is amended to read: 
           Subd. 6.  [EMPLOYEE, OFFICER, OR AGENT.] For the purposes 
        of sections 466.01 to 466.15, "employee," "officer," or "agent" 
        means a present or former employee, officer, or agent of a 
        municipality, or other person acting on behalf of the 
        municipality in an official capacity, temporarily or 
        permanently, with or without compensation, but does not include 
        an independent contractor other than a nonprofit firefighting 
        corporation that has associated with it a relief association as 
        defined in section 424A.001, subdivision 4.  "Employee" includes 
        court administrators and their staff under chapter 485, district 
        administration staff in the second and fourth judicial 
        districts, guardians ad litem, and other employees within the 
        court system whose salaries are paid by the county, other than 
        employees who remain on the county payroll under section 
        480.181, subdivision 2. 
           Presented to the governor April 4, 1996 
           Signed by the governor April 11, 1996, 11:35 a.m.