Office of the Revisor of Statutes
Minnesota Session Laws - 2001, 1st Special Session
Key: (1) language to be deleted (2) new language
CHAPTER 10-S.F.No. 9
An act relating to state government; appropriating
money for the general legislative and administrative
expenses of state government; modifying provisions
relating to state and local government operations;
modifying election, retirement, and pension
provisions; amending Minnesota Statutes 2000, sections
3.3005, subdivisions 2, 3, 3a, 4, 5, by adding
subdivisions; 3.85, subdivision 3; 3.855, subdivision
3; 3.97, subdivision 3a; 3.979, by adding a
subdivision; 3.98, subdivision 2; 3A.03, subdivision
2; 7.09, subdivision 1; 10A.31, subdivision 3a, 7;
11A.18, subdivision 7; 13D.01, subdivision 1; 15.0575,
subdivision 3, as amended; 15.059, subdivision 3, as
amended; 15A.0815, subdivision 1, by adding a
subdivision; 16A.06, by adding a subdivision; 16A.10,
by adding a subdivision; 16A.152, subdivision 7;
16B.25, subdivision 2; 16B.60, subdivision 3, by
adding subdivisions; 16B.61, subdivision 1, as
amended; 16B.65; 16B.70, by adding a subdivision;
16B.88, subdivision 1; 16C.02, by adding a
subdivision; 16C.03, subdivision 2, by adding a
subdivision; 16C.04, by adding a subdivision; 16C.05,
subdivision 2; 16C.06, subdivisions 2, 3; 16C.081;
16C.22; 16E.04, subdivision 2, as amended; 43A.04, by
adding subdivisions; 43A.047; 69.011, subdivision 1;
79.34, subdivision 1; 103C.311, subdivision 1;
136F.07; 136F.40, subdivision 2; 179A.15; 190.06,
subdivision 1; 190.07; 192.501, subdivision 2;
193.144, subdivision 6; 193.145, subdivision 4;
193.148; 197.75, subdivisions 1, 2; 200.02,
subdivisions 7, 23; 201.016, subdivision 1a; 201.022;
202A.19, subdivision 1; 203B.04, subdivisions 1, 5;
203B.06, by adding a subdivision; 203B.07, subdivision
1; 203B.16, subdivision 1; 203B.17, subdivision 1;
204B.06, subdivision 1; 204B.07, subdivision 2;
204B.09, subdivisions 1, 3; 204B.20; 204B.22,
subdivisions 1, 3; 204B.23; 204B.27, by adding a
subdivision; 204B.28, subdivision 1; 204C.03,
subdivision 1; 204C.35; 204C.36, subdivisions 1, 3;
204D.04, subdivision 2; 204D.09; 204D.11, subdivision
4; 204D.24, subdivision 2; 205.13, subdivision 1a;
205.17, by adding a subdivision; 205.185, subdivision
3; 206.81; 211A.02, subdivision 4; 214.09, subdivision
3, as amended; 270A.07, subdivision 1; 317A.123,
subdivision 1; 317A.827, subdivision 2; 349.165,
subdivisions 1, 3; 352.01, subdivisions 2a, 2b, 11;
352.113, subdivisions 4, 6; 352.22, subdivision 8;
352.87, subdivisions 4, 5; 352.95, subdivisions 4, 5,
7; 352B.01, subdivisions 2, 3, 11; 352B.10,
subdivision 3; 352B.101; 353.01, subdivisions 1, 2,
2a, 2b, 6, 7, 11b, 12a, 16, by adding subdivisions;
353.27, subdivisions 2, 3, 4, 11; 353.86, subdivision
1; 354.05, subdivisions 2, 13; 354.41, subdivision 4;
354.52, subdivision 4; 354.534, subdivision 1;
354.536, subdivision 1; 354.539; 354A.011,
subdivisions 4, 24; 354A.098, subdivision 1; 354A.101,
subdivision 1; 354A.106; 354A.12, subdivision 5;
354A.31, subdivision 3; 354A.35, subdivision 4;
356.215, subdivision 4g; 356.24, subdivision 1;
356.55, subdivision 7; 356A.06, subdivision 5;
356A.08, subdivision 1; 357.18, subdivision 3; 358.10;
367.03, subdivision 6; 403.11, subdivision 1;
422A.155; 423B.01, by adding a subdivision; 423B.05,
by adding subdivisions; 424A.04, by adding a
subdivision; 473.13, by adding a subdivision; 490.121,
subdivision 4; 517.08, subdivisions 1b, 1c, as
amended; 574.26, subdivision 2; 645.44, by adding a
subdivision; Laws 1997, chapter 202, article 2,
section 61, as amended; Laws 1998, chapter 366,
section 80; Laws 1999, chapter 250, article 1, section
12, subdivision 3, as amended; Laws 2000, chapter 461,
article 10, section 3; proposing coding for new law in
Minnesota Statutes, chapters 3; 4A; 13; 16A; 16C; 16E;
200; 204B; 211B; 240A; 352; 352F; 353F; 354; 354A;
354B; 356; 383D; 473; proposing coding for new law as
Minnesota Statutes, chapters 116T; 423C; repealing
Minnesota Statutes 2000, sections 16A.67; 16A.6701;
16E.08; 43A.18, subdivision 5; 129D.06; 179A.07,
subdivision 7; 204B.06, subdivision 1a; 204C.15,
subdivision 2a; 246.18, subdivision 7; 354.41,
subdivision 9; 354A.026; Laws 1907, chapter 24; Laws
1913, chapters 318, 419; Laws 1917, chapter 196; Laws
1919, chapters 515, 523; Laws 1921, chapter 404; Laws
1923, chapter 61; Laws 1945, chapter 322; Laws 1959,
chapter 491; Laws 1959, chapter 568, as amended; Laws
1961, chapter 109; Extra Session Laws 1961, chapter 3;
Laws 1963, chapter 318, as amended; Laws 1965, chapter
519, as amended; Laws 1965, chapter 578, as amended;
Laws 1967, chapter 819, as amended; Laws 1967, chapter
824, as amended; Laws 1969, chapter 123, as amended;
Laws 1969, chapter 287; Laws 1971, chapter 542, as
amended; Laws 1975, chapter 57, as amended; Laws 1977,
chapter 164, section 2, as amended; Laws 1980, chapter
607, article XV, sections 8, as amended, 9, as
amended, 10, as amended; Laws 1988, chapter 572,
section 4; Laws 1988, chapter 574, section 3; Laws
1989, chapter 319, article 19, sections 6, as amended,
7, as amended; Laws 1990, chapter 589, article 1,
sections 5, as amended, 6, as amended; Laws 1992,
chapter 429; Laws 1992, chapter 454, section 2, as
amended; Laws 1992, chapter 471, article 2, as
amended; Laws 1993, chapter 125, as amended; Laws
1993, chapter 192, section 32; Laws 1994, chapter 591,
as amended; Laws 1994, chapter 632, article 3, section
14; Laws 1996, chapter 448, article 2, section 3; Laws
1996, chapter 448, article 3, section 1; Laws 1997,
chapter 233, article 4, sections 12, 13, 14, 15, 16,
17, 18, 19, 20, 21, 22; Laws 1998, chapter 390,
article 7, section 2; Laws 2000, chapter 461, article
17, sections 6, 7, 8, 9, 10, 11, 12, 13; Minnesota
Rules, part 8250.1400.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
ARTICLE 1
APPROPRIATIONS
Section 1. [STATE GOVERNMENT APPROPRIATIONS.]
The sums shown in the columns marked "APPROPRIATIONS" are
appropriated from the general fund, or another fund named, to
the agencies and for the purposes specified in this act, to be
available for the fiscal years indicated for each purpose. The
figures "2001," "2002," and "2003," where used in this act, mean
that the appropriation or appropriations listed under them are
available for the year ending June 30, 2001, June 30, 2002, or
June 30, 2003, respectively.
APPROPRIATIONS
Available for the Year
Ending June 30
2002 2003
Sec. 2. LEGISLATURE
Subdivision 1. Total
Appropriation 67,776,000 68,773,000
Summary by Fund
General 67,626,000 68,623,000
Health Care Access 150,000 150,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Senate 24,021,000 22,918,000
Subd. 3. House of Representatives 28,035,000 30,318,000
Subd. 4. Legislative
Coordinating Commission 10,215,000 10,068,000
Summary by Fund
General 10,065,000 9,918,000
Health Care Access 150,000 150,000
Effective January 6, 2003, the salaries
of other constitutional officers are
set at the following percentages of the
salary of the governor:
attorney general - 95 percent;
state auditor - 85 percent;
secretary of state - 75 percent;
lieutenant governor - 65 percent.
The compensation council recommendation
of 2001 for legislators and
constitutional officers may not take
effect.
$6,420,000 the first year and
$6,535,000 the second year are for the
office of the revisor of statutes.
$1,242,000 the first year and
$1,273,000 the second year are for the
legislative reference library.
$5,505,000 the first year and
$5,469,000 the second year are for the
office of the legislative auditor and
legislative audit commission.
The legislative work group on
television coverage consists of two
members of the senate appointed by the
subcommittee on committees of the
committee on rules and administration,
two members of the house of
representatives appointed by the
speaker, and two members representing
the Minnesota public television
association appointed by the
association. In an effort to take full
advantage of the new digital technology
and interconnection system to be
constructed by public television, the
work group must examine the best
management structure and distribution
format to provide gavel-to-gavel
coverage of house and senate sessions
and other legislative hearings of
public importance. The group must make
specific recommendations regarding the
consolidation of television services
now being provided by the house and
senate, including the advisability and
practicality of having that coverage
provided by public television. The
group must provide an interim report to
the legislature by February 1, 2002,
and submit a final report, including
budget recommendations, by January 10,
2003.
The legislative coordinating
commission, or a joint subcommittee
appointed by the commission for that
purpose, must investigate ways in which
the public information offices of the
senate and the house of representatives
might reduce costs and increase public
awareness by consolidating some or all
of their services, including, at a
minimum, the publication of a single
schedule for house and senate committee
meetings. The commission must report
its findings and recommendations to the
legislature by February 1, 2002.
During the interim between the 2001 and
2002 legislative sessions, legislative
appointing authorities may work with
the department of employee relations to
place legislative staff on temporary
assignments in state agencies. The
legislature is responsible for salary
and benefits of employees who choose
these temporary assignments. Work
assignments and hours must be
negotiated by legislative appointing
authorities and the state agencies
getting interim use of legislative
staff. Refusal of a commissioner to
find a suitable work assignment for
interested and qualified legislative
staff must be reported to the budget
committee chairs of the house and
senate that have jurisdiction over that
agency's budget.
Sec. 3. GOVERNOR AND
LIEUTENANT GOVERNOR 4,601,000 4,714,000
This appropriation is to fund the
offices of the governor and lieutenant
governor.
$19,000 the first year and $19,000 the
second year are for necessary expenses
in the normal performance of the
governor's and lieutenant governor's
duties for which no other reimbursement
is provided.
By September 1 of each year, the
commissioner of finance shall report to
the chairs of the senate governmental
operations budget division and the
house state government finance division
any personnel costs incurred by the
office of the governor and lieutenant
governor that were supported by
appropriations to other agencies during
the previous fiscal year. The office
of the governor shall inform the chairs
of the divisions before initiating any
interagency agreements.
The funds appropriated to the
governor's office for maintenance of
the governor's residence are
transferred to the department of
administration for the same purpose.
Sec. 4. STATE AUDITOR 10,051,000 10,297,000
Sec. 5. STATE TREASURER 2,351,000 2,331,000
$1,093,000 the first year and
$1,125,000 the second year are for the
treasurer to pay for banking services
by fees rather than by compensating
balances.
Sec. 6. ATTORNEY GENERAL 29,278,000 29,911,000
Summary by Fund
General 26,825,000 27,406,000
State Government
Special Revenue 1,834,000 1,876,000
Environmental 142,000 145,000
Solid Waste 477,000 484,000
Sec. 7. SECRETARY OF STATE 7,410,000 7,465,000
$1,306,000 the first year and
$1,054,000 the second year are for
uniform commercial code operating costs.
The base funding for this activity is
$914,000 for fiscal year 2004 and
$861,000 for fiscal year 2005.
Sec. 8. CAMPAIGN FINANCE AND
PUBLIC DISCLOSURE BOARD 674,000 702,000
For 2001 - $35,000
$35,000 in fiscal year 2001 is for the
campaign finance and public disclosure
board for operating budget deficiencies.
Sec. 9. INVESTMENT BOARD 2,477,000 2,535,000
Sec. 10. ADMINISTRATIVE HEARINGS 7,444,000 7,941,000
This appropriation is from the workers'
compensation fund.
Fee increases proposed for the Office
of Administrative Hearings by the
governor in the 2002-2003 state
government biennial budget document are
approved, as well as fee increases
necessary as a result of judicial
salary increases.
Sec. 11. OFFICE OF STRATEGIC
AND LONG-RANGE PLANNING 5,621,000 4,988,000
$170,000 the first year is to continue
the generic environmental impact
statement on animal agriculture. Funds
not spent in the first year are
available in the second year.
$500,000 the first year is for one-time
grants of $50,000 each to regional
development commissions or, in regions
not served by regional development
commissions, to regional organizations
selected by the director, to support
planning work on behalf of local units
of government. The planning work must
take into consideration any impacts on
private property rights and must
include at least one of the following:
(1) development of local zoning
ordinances; (2) land use plans; (3)
community or economic development
plans; (4) transportation and transit
plans; (5) solid waste management
plans; (6) wastewater management plans;
(7) workforce development plans; (8)
housing development plans and market
analyses; (9) rural health service and
senior nutrition plans; (10) natural
resources management plans; or (11)
development of a geographical
information systems database to serve a
region's needs, including hardware and
software purchases and related labor
costs. State grant funds must be
matched on a dollar-for-dollar basis by
nonstate funds.
The office of strategic and long-range
planning, in consultation with the
department of natural resources and
appropriate and affected parties, must
prepare urban rivers sustainable
development draft guidelines along the
central business districts of rivers in
urban areas of the state. The office
must:
(1) evaluate existing state and
municipal laws;
(2) evaluate the need for the
department of natural resources to have
authority to adopt rules to implement
the Mississippi river critical area
order (executive order 79-19);
(3) review federal legislation
affecting urban rivers; and
(4) identify the technical and
administrative procedures to guide
urban river development. The draft
guidelines must be made available to
the environmental and economic
development policy committees of the
legislature, and to interested parties,
by January 15, 2002.
$100,000 the first year is for a grant
to support subregional comprehensive
planning by the N.M. I-35W Corridor
Coalition. The appropriation is
available until June 30, 2003. The
subregional work must include the
following components leading to a
coordinated subregional comprehensive
plan submission to the metropolitan
council in 2003: (1) coordinated land
use plans; (2) coordinated economic
development and redevelopment
strategies focused on redefining
metropolitan competitiveness with
linkage to creating local job
opportunities and integrated housing,
transportation, and transit systems;
(3) coordinated transportation and
transit plans; (4) coordinated
workforce development plans; (5)
coordinated subregional housing
development plans and market analyses
ensuring healthy neighborhoods and
increased choice in lifecycle housing;
(6) coordinated natural resources
management plans; (7) expanded GIS
database management system focused on
improving subregional decision making
through access to better data and tools
for analysis as well as being
exportable to other regional and
subregional collaborative efforts; and
(8) establishment of a coalition
institute structured to utilize livable
community principles to address issues
of growth and infill, to support
standards for quality development, and
to create direct benefit for learning
experience and sharing with other
regional and subregional organizations
and agencies. State grant funds must
be matched on a dollar-for-dollar basis
from nonstate funds. Local planning
work supported by this appropriation
must adhere to the goals of sustainable
land use planning under Minnesota
Statutes, section 4A.08.
The director must create a competition
council. The competition council must
make recommendations to the executive
and legislative branches on
opportunities, strategies, and best
practices for competitive delivery of
services or goods currently delivered
by government.
Sec. 12. ADMINISTRATION
Subdivision 1. Total
Appropriation 67,557,000 46,971,000
For 2001 - $75,000
Summary by Fund
General 45,230,000 26,602,000
For 2001 - $75,000
State Government
Special Revenue 22,027,000 20,369,000
Special Revenue 300,000 -0-
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Operations Management
3,632,000 3,745,000
Subd. 3. Office of Technology
13,173,000 3,435,000
Summary by Fund
General 12,299,000 2,830,000
State Government
Special Revenue 574,000 605,000
Special Revenue 300,000 -0-
$300,000 in fiscal year 2002 is from
the unemployment insurance technology
initiative account in the special
revenue fund for a study of the
unemployment insurance technology
initiative project. The study should
include an analysis of current business
processes, identification of
re-engineering opportunities, and
development of a project plan, and
should ensure integration with the
state's enterprise architecture. The
study is the joint responsibility of
the office of technology and the
department of economic security
unemployment branch. The study must be
completed no later than June 30, 2002.
Upon completion of the study, the
department of economic security may
begin immediate and independent
implementation of the full project plan.
$9,400,000 is for deposit in the
technology enterprise fund. From this
amount, the commissioner may spend up
to $864,000 for technology analysts in
the office of technology, up to
$1,489,000 for small agency
infrastructure, up to $5,400,000 for
completion of the income tax
re-engineering project in the
department of revenue, up to $1,200,000
for new income tax re-engineering
costs, and up to $40,000 for the local
area network at the capitol area
architectural and planning board.
For the fiscal year 2004-2005 biennium,
up to $540,000 each year may be added
to the base level funding for
technology analyst positions.
For the fiscal year 2004-2005 biennium,
up to a total of $500,000 may be added
to the base level funding for the
Capitol Area Architectural and Planning
Board, the Architecture and Engineering
Board, the Campaign Finance and Public
Disclosure Board, the Mediation
Services Bureau, the Minnesota Racing
Commission, the Sentencing Guidelines
Commission, the Department of Veterans
Affairs, and the Lawful Gambling
Control Board.
For the fiscal year 2004-2005 biennium,
up to $300,000 each year may be added
to the base level funding of the
Department of Revenue for the
operational costs related to the income
tax re-engineering project.
$1,179,000 from the state government
special revenue fund is for a transfer
to the board of chiropractic examiners,
the board of medical practice, the
board of nursing, and the board of
social work for the small agency
infrastructure project. This
appropriation is available until June
30, 2003. The commissioner shall
report on the progress of the small
agency infrastructure project to the
chairs of the legislative committees
responsible for this budget item by
January 15, 2002.
(a) The commissioner of administration
must contract with an entity outside of
state government to prepare a
supplemental evaluation, risk
assessment, and risk mitigation plan
for the CriMNet system. The entity
performing this work must not have any
other direct or indirect financial
interest in the project.
(b) Before January 1, 2002, each
recipient of an appropriation for the
CriMNet system must, in consultation
with the commissioner of
administration, submit to the entity
selected under paragraph (a):
(1) a list of objectives the entity
expects to achieve with the money
appropriated to it; and
(2) a list of performance measures that
can be used to determine the extent to
which these objectives are being met.
(c) The evaluation, risk assessment,
and risk mitigation plan must
separately consider each component of
the project, including: suspense
files, the integration backbone, the
Minnesota court information system,
photo imaging, livescan cardhandler,
predatory offender registration, CJDN
upgrade, statewide supervision, and
county planning and implementation
grants. For each component, the
evaluation may also consider:
(1) the likelihood that each entity
will achieve its objectives within the
limits of the money appropriated; and
(2) the appropriateness of the
performance measures suggested by each
entity receiving an appropriation.
(d) Work on the evaluation, risk
assessment, and risk mitigation plan
must begin as soon as practicable but
no later than November 15, 2001. The
results of the evaluation, risk
assessment, and risk mitigation plan
must be reported to the legislature,
the commissioner of administration, and
the chief justice of the supreme court
by March 15, 2002. The final report
must include recommendations on changes
or improvements needed for each
component of the program and whether or
not a component should proceed. A
recommendation not to proceed with a
component of the project is only
advisory. Decisions regarding
proceeding with project components will
be made by the commissioner of public
safety in consultation with the policy
group.
(e) During the biennium ending June 30,
2003, Minnesota Statutes, section
16E.0465 does not apply to the CriMNet
system.
$468,000 the first year and $468,000
the second year are for ongoing costs
of the North Star II project under
Minnesota Statutes, section 16E.07.
$120,000 from the general fund is for
the Minnesota high technology
foundation for the Minnesota computers
for schools program. The foundation
must provide a match of $1 of private
funds for every $1 of state funds
appropriated for the Minnesota
computers for schools program.
The office must establish the state
information architecture under
Minnesota Statutes, section 16E.04,
subdivision 2, by March 1, 2002.
Subd. 4. Intertechnologies Group
22,312,000 20,623,000
Summary by Fund
General 859,000 859,000
State Government
Special Revenue 21,453,000 19,764,000
$3,988,000 in fiscal year 2002 is from
the 911 fund under Minnesota Statutes,
section 403.11, for increased costs
associated with wireless-enhanced 911
and for reimbursements to providers for
prior period services not yet certified
by the public utilities commission.
The appropriation from the special
revenue fund is for recurring costs of
911 emergency telephone service.
Subd. 5. Facilities Management
11,689,000 11,929,000
For 2001 - $75,000
$7,584,000 the first year and
$7,844,000 the second year are for
office space costs of the legislature
and veterans organizations, for
ceremonial space, and for statutorily
free space.
$2,000,000 of the balance in the state
building code account in the state
government special revenue fund as of
July 1, 2001, is canceled to the
general fund.
The unexpended balance in the parking
surcharge account in the state
government special revenue fund as of
July 1, 2001, is canceled to the
general fund.
A joint house-senate task force must be
appointed to study the allocation of
spaces in the State Office Building
parking ramp. Members of the task
force must include a representative of
the house majority, the house minority,
the senate majority, the senate
minority, the legislative coordinating
commission, the legislative reference
library, the revisor's office, and the
secretary of state. A report must be
presented to the chairs and lead
minority members of the house and
senate state government operations
committees, by October 15, 2001. In
developing the report, the task force
must examine the issues of proportional
representation based on full-time staff
housed in the State Office Building,
safety, fringe benefits, recruitment
needs, and staff seniority, and may
consider other appropriate issues. The
report must include a transition plan
for any recommended changes, and may
include recommendations regarding the
creation of additional secure parking
spaces.
The commissioner of administration and
the capitol area architectural and
planning board must investigate the
possibility and advisability of
locating a bookshop or giftshop in the
capitol and must report their findings
and recommendations to the legislature
by February 1, 2002.
$75,000 in fiscal year 2001 and
$125,000 in fiscal year 2002 are for
pursuing litigation to recover costs
associated with indoor air quality
issues at the Luverne veterans home.
Subd. 6. Management Services
3,684,000 3,907,000
$196,000 the first year and $196,000
the second year are for the office of
the state archaeologist.
$74,000 the first year and $74,000 the
second year are for the developmental
disabilities council.
The management analysis division, in
consultation with the Minnesota Amateur
Sports Commission, must report to the
legislature by January 15, 2002, a plan
for the commission to operate without a
state subsidy, beginning July 1, 2003.
The plan must describe: (1) new
revenues the commission would obtain to
replace state subsidies; or (2) plans
for cost reductions so that anticipated
revenues would equal expenditures,
without state subsidies.
The management analysis division shall
conduct a study to assess the
feasibility of collecting fees for
services provided by the office of the
state archaeologist. The management
analysis division shall submit a report
to the chair of the senate state
government, economic development and
the judiciary budget division and the
chair of the house of representatives
state government finance committees by
July 15, 2002.
$200,000 the first year and $100,000
the second year are for the STAR
program. This is a one-time
appropriation.
Subd. 7. Fiscal Agent
1,937,000 2,000
$35,000 the first year is for a grant
to the Longville city hall district to
complete construction of the Longville
city hall ambulance building. * (The
preceding text beginning "$35,000 the
first year" was indicated as vetoed by
the governor.)
$2,000 the first year and $2,000 the
second year are for the state
employees' band.
$1,900,000 the first year is for
deposit in the voting equipment grant
account.
Subd. 8. Public Broadcasting
11,130,000 3,330,000
$1,450,000 the first year and
$1,450,000 the second year are for
matching grants for public television.
$600,000 the first year and $600,000
the second year are for public
television equipment grants.
$7,800,000 the first year is for grants
to noncommercial television stations to
assist with conversion to a digital
broadcast signal as mandated by the
federal government. In order to
qualify for a grant, a station must
meet the criteria established for
grants in Minnesota Statutes, section
129D.12, subdivision 2.
Grants for the conversion to digital
television must not be distributed
except as agreed to in writing by the
commissioner of administration and the
Minnesota Public Television
Association. The agreement must
include provisions specifying uses of
digital broadcast capability to serve
needs of state and local units of
government in a manner consistent with
project management analyses of the
Minnesota office of technology and, to
the greatest extent feasible,
integrating digital broadcast
infrastructure and use of spectrum with
existing and prospective statewide
information and communications
networks. The agreement must be made
by January 15, 2002, or this
appropriation cancels.
To avoid duplication, a station using
money from this appropriation to
construct a tower must consult with
public radio stations in its area to
determine if they have a similar need.
If a public radio station has a similar
need, a cost benefit analysis must be
completed to determine if it is more
economically feasible to jointly
construct the new tower. All parties
must share in the cost of construction
and maintenance of the tower.
Equipment or digital conversion grant
allocations shall be made after
considering the recommendations of the
Minnesota public television association.
$441,000 the first year and $441,000
the second year are for grants and for
contracts with the senate and house of
representatives for public information
television, Internet, Intranet, and
other transmission of legislative
activities. At least one-half must go
for programming to be broadcast and
transmitted to rural Minnesota.
$25,000 the first year and $25,000 the
second year are for grants to the Twin
Cities regional cable channel.
$320,000 the first year and $320,000
the second year are for community
service grants to public educational
radio stations.
$87,000 the first year and $87,000 the
second year are for equipment grants to
public educational radio stations. The
grants must be allocated after
considering the recommendations of the
association of Minnesota public
educational radio stations under
Minnesota Statutes, section 129D.14.
$407,000 the first year and $407,000
the second year are for equipment
grants to Minnesota Public Radio, Inc.
If an appropriation for either year for
grants to public television or radio
stations is not sufficient, the
appropriation for the other year is
available for it.
Subd. 9. Minneapolis-Guthrie
Theater
The appropriation in Laws 2000, chapter
492, article 1, section 14, subdivision
3, may be used to predesign and begin
design of a new Guthrie Theater and
need not be used to acquire and prepare
a site for the theater nor to
construct, furnish, and equip it. *
(The preceding subdivision was
indicated as vetoed by the governor.)
Sec. 13. CAPITOL AREA ARCHITECTURAL
AND PLANNING BOARD 315,000 323,000
During the biennium ending June 30,
2003, money received by the board from
public agencies, as provided by
Minnesota Statutes, section 15.50,
subdivision 3, is appropriated to the
board.
Sec. 14. FINANCE
Subdivision 1. Total
Appropriation 18,250,000 18,639,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. State Financial Management
8,443,000 8,548,000
Subd. 3. Information and
Management Services
9,807,000 10,091,000
The commissioners of finance and
administration shall study building
projects authorized for state
agencies. The study shall include an
estimate of any change in operating
costs to agencies related to the
construction or major renovation of
facilities that have been authorized
since 1996. The analysis may consider
a representative sample of projects and
must measure actual cost increases due
solely to building operations. The
study shall also contain a comparison
of the cash flows of the projects
estimated by agencies at the time
projects were proposed to the
legislature and the actual cash flows
of the projects. The commissioners
shall consult with the finance chair in
the senate and the ways and means chair
in the house on the methodology used in
the analysis and submit a final report
to the chairs by January 15, 2002. The
commissioner of finance shall use the
results of the analysis of increased
operating costs in any planning budget
included under Minnesota Statutes,
section 16A.103.
Sec. 15. EMPLOYEE RELATIONS
Subdivision 1. Total
Appropriation 8,245,000 8,470,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Employee Insurance
70,000 70,000
Subd. 3. Human Resources Management
8,175,000 8,400,000
$25,000 the first year and $25,000 the
second year are for a grant to the
government training service.
$50,000 each year is for the training
and development resource center.
Sec. 16. REVENUE
Subdivision 1. Total
Appropriation 95,259,000 96,549,000
Summary by Fund
General 91,030,000 92,238,000
Health Care Access 1,731,000 1,764,000
Highway User
Tax Distribution 2,191,000 2,237,000
Environmental 107,000 110,000
Solid Waste 200,000 200,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
Subd. 2. Tax System Management
84,420,000 85,728,000
Summary by Fund
General 80,244,000 81,470,000
Health Care Access 1,678,000 1,711,000
Highway User
Tax Distribution 2,191,000 2,237,000
Environmental 107,000 110,000
Solid Waste 200,000 200,000
(a) $1,037,000 the first year and
$624,000 the second year is for an
initiative to identify and collect tax
liabilities from individuals and
businesses that currently do not pay
all taxes owed. This initiative is
expected to result in new general fund
revenues of $20,000,000 for the
biennium ending June 30, 2003.
(b) $1,783,000 the first year and
$1,570,000 the second year is for an
initiative to increase audit and
collection activity in the income tax,
sales tax, and corporate tax areas.
This initiative is expected to result
in new general fund revenues of
$32,000,000 for the biennium ending
June 30, 2003.
(c) The department must report to the
chairs of the House Ways and Means and
Senate Finance Committees by January
15, 2002, and January 15, 2003, on the
following performance indicators:
(1) The number of debt cases referred
each year to the Internal Revenue
Service for recapture of Minnesota
state taxes from federal tax refunds
and the associated dollar amounts.
(2) The number of nonfiling
corporations brought into the corporate
tax system each year and the percentage
and dollar amounts of valid tax
liabilities collected.
(3) The number of nonfiling businesses
brought into the sales and use tax
system and the percentage and dollar
amounts of the valid tax liabilities
collected.
(4) The number of individual nonfiler
cases resolved and the percentage and
dollar amounts of valid tax liabilities
collected.
The reports must also identify base
level expenditures and staff positions
related to compliance and audit
activities, including baseline
information as of January 1, 2001. The
information must be provided at the
budget activity level.
(d) Of the amounts appropriated in
paragraphs (a) and (b), the necessary
amount is transferred from the
commissioner of revenue to the
legislative auditor, not to exceed
$50,000, for an audit of the tax
collection activities. The purpose of
this audit is to compare actual revenue
collections with the estimates of new
revenue collections submitted by the
department to the 2001 legislature.
The legislative auditor shall report
the findings of the audit to the
legislature by February 1, 2003.
Subd. 3. Accounts Receivable Management
10,839,000 10,821,000
Summary by Fund
General 10,786,000 10,768,000
Health Care Access 53,000 53,000
(a) $275,000 the first year and
$257,000 the second year are for an
initiative to identify and collect tax
liabilities from individuals and
businesses that currently do not pay
all taxes owed.
(b) $1,100,000 the first year and
$1,026,000 the second year are for an
initiative to increase audit and
collection activity in the income tax,
sales tax, and corporate tax areas.
Sec. 17. MILITARY AFFAIRS
Subdivision 1. Total
Appropriation 14,121,000 14,021,000
The amounts that may be spent from this
appropriation for each program are
specified in the following subdivisions.
In fiscal year 2001, $186,000 in
general funds is transferred from Laws
1999, chapter 250, article 1, section
28, to the department of military
affairs to pay for higher than
anticipated fuel costs of the
department's training and community
center facilities. These funds are
available until December 21, 2001.
Subd. 2. Maintenance of Training
Facilities
7,141,000 7,244,000
Subd. 3. General Support
2,049,000 1,845,000
$75,000 the first year is to assist in
the operation and staffing of the
Minnesota national guard youth camp at
Camp Ripley. This appropriation is
available until June 30, 2003, and is
contingent on its being matched by
money from other sources.
The department may not sell or lease
land in Ramsey county to the department
of transportation, nor may the
department locate a joint or shared
facility with the department of
transportation within the county.
Subd. 4. Enlistment Incentives
4,856,000 4,857,000
$4,856,000 the first year and
$4,857,000 the second is for enlistment
incentives.
If appropriations for either year of
the biennium are insufficient, the
appropriation from the other year is
available. The appropriations for
enlistment incentives are available
until expended.
Subd. 5. Emergency Services
75,000 75,000
These appropriations are for expenses
of military forces ordered to active
duty under Minnesota Statutes, chapter
192. If the appropriation for either
year is insufficient, the appropriation
for the other year is available for it.
Sec. 18. VETERANS AFFAIRS 4,419,000 4,484,000
Sec. 19. VETERANS OF FOREIGN
WARS 55,000 55,000
For carrying out the provisions of Laws
1945, chapter 455.
Sec. 20. MILITARY ORDER OF
THE PURPLE HEART 20,000 20,000
Sec. 21. DISABLED AMERICAN VETERANS 13,000 13,000
For carrying out the provisions of Laws
1941, chapter 425.
Sec. 22. GAMBLING CONTROL 2,419,000 2,522,000
Sec. 23. RACING COMMISSION 414,000 426,000
Sec. 24. BOARD OF THE ARTS
Subdivision 1. Total
Appropriation 13,118,000 13,142,000
Any unencumbered balance remaining in
this section the first year does not
cancel but is available for the second
year of the biennium.
Subd. 2. Operations and Services
1,043,000 1,067,000
By January 15, 2002, the board must
report to the legislature the following
information for each group funded by
the board in fiscal year 2001 which had
annual operating expenses of $500,000
or more:
(1) the number of audience members
attending events produced or sponsored
by each arts organization and the type
of services provided;
(2) services that the group would not
have provided but for the state
funding;
(3) the effect of the state funding on
the quality of the service or artistic
experience provided to the public; and
(4) the amount of funding the group has
received from the board each year since
creation of the board.
Subd. 3. Grants Program
8,540,000 8,540,000
Subd. 4. Regional Arts Councils
3,535,000 3,535,000
Sec. 25. MINNESOTA HUMANITIES
COMMISSION 1,022,000 1,036,000
Any unencumbered balance remaining in
the first year does not cancel but is
available for the second year of the
biennium.
The humanities commission must develop
a plan for the selection of a Minnesota
poet laureate. The commission must
report the plan to the legislature by
February 1, 2002.
Sec. 26. TORT CLAIMS 275,000 275,000
To be spent by the commissioner of
finance.
If the appropriation for either year is
insufficient, the appropriation for the
other year is available for it.
Sec. 27. MINNESOTA STATE
RETIREMENT SYSTEM 9,299,000 9,856,000
The amounts estimated to be needed for
each program are as follows:
(a) Legislators
6,821,000 7,230,000
Under Minnesota Statutes, sections
3A.03, subdivision 2; 3A.04,
subdivisions 3 and 4; and 3A.11.
(b) Constitutional Officers
355,000 376,000
Under Minnesota Statutes, sections
352C.031, subdivision 5; 352C.04,
subdivision 3; and 352C.09, subdivision
2.
(c) Judges
2,123,000 2,250,000
If an appropriation in this section for
either year is insufficient, the
appropriation for the other year is
available for it.
Sec. 28. MINNEAPOLIS EMPLOYEES
RETIREMENT FUND 3,232,000 3,232,000
Sec. 29. POLICE AND FIRE
AMORTIZATION AID 6,345,000 6,345,000
$4,925,000 the first year and
$4,925,000 the second year are to the
commissioner of revenue for state aid
to amortize the unfunded liability of
local police and salaried firefighters
relief associations under Minnesota
Statutes, section 423A.02.
$1,000,000 the first year and
$1,000,000 the second year are to the
commissioner of revenue for
supplemental state aid to amortize the
unfunded liability of local police and
salaried firefighters relief
associations under Minnesota Statutes,
section 423A.02, subdivision 1a.
$420,000 the first year and $420,000
the second year are to the commissioner
of revenue to pay reimbursements to
relief associations for firefighter
supplemental benefits paid under
Minnesota Statutes, section 424A.10.
Sec. 30. BOARD OF GOVERNMENT
INNOVATION AND COOPERATION 512,000 518,000
Sec. 31. STATE LOTTERY 750,000 -0-
$750,000 is from the lottery prize fund
to the commissioner of human services
for a grant to reconstruct Project
Turnabout in Granite Falls destroyed by
the Granite Falls tornado. This
appropriation is available until June
30, 2003, and does not become part of
the base.
Sec. 32. AMATEUR SPORTS
COMMISSION 1,257,000 677,000
$475,000 the first year is for making
matching grants for after school
enrichment grants as provided under
Minnesota Statutes, section 240A.12. *
(The preceding text beginning "$475,000
the first year" was indicated as vetoed
by the governor.)
$25,000 is for a grant to the Range
Recreation Civic Center for bleacher
purchase. * (The preceding text
beginning "$25,000 is for a grant" was
indicated as vetoed by the governor.)
$100,000 in fiscal year 2002 is for a
one-time grant to a nonprofit
corporation for operation of a shooting
sports program at a state-owned
facility. The program funded through
this grant must be designed to train
participants and coaches in shooting
sports that are Olympic events. This
appropriation is available until June
30, 2003. * (The preceding text
beginning "$100,000 in fiscal year
2002" was indicated as vetoed by the
governor.)
Sec. 33. GENERAL CONTINGENT
ACCOUNTS 3,500,000 3,500,000
Summary by Fund
General 3,000,000 3,000,000
State Government
Special Revenue 400,000 400,000
Workers'
Compensation 100,000 100,000
The appropriations in this section may
only be spent with the approval of the
governor after consultation with the
legislative advisory commission
pursuant to Minnesota Statutes, section
3.30.
If an appropriation in this section for
either year is insufficient, the
appropriation for the other year is
available for it.
The special revenue appropriation is
available to be transferred to the
attorney general when the costs to
provide legal services to the health
boards exceed the biennial
appropriation to the attorney general
from the special revenue fund and for
transfer to the health boards if
required for unforeseen expenditures of
an emergency nature. The boards
receiving the additional services or
supplemental appropriations shall set
their fees to cover the costs.
Sec. 34. [EFFECTIVE DATE.]
The appropriations for fiscal year 2001 are effective the
day following final enactment and are available until December
31, 2001. All other appropriations are effective July 1, 2001.
ARTICLE 2
STATE GOVERNMENT OPERATIONS
Section 1. Minnesota Statutes 2000, section 3.3005,
subdivision 2, is amended to read:
Subd. 2. [GOVERNOR'S REQUEST TO LEGISLATURE.] A state
agency shall not expend money received by it under federal law
for any purpose unless a request to spend federal money from
that source for that purpose in that fiscal year has been
submitted by the governor to the legislature as a part of a
budget request submitted during or within ten days before the
start of a regular legislative session, or unless specifically
authorized by law or as provided by this section. A budget
request submitted to the legislature according to this
subdivision must be submitted at least 20 days before the
deadline set by the legislature for legislative budget
committees to act on finance bills.
Sec. 2. Minnesota Statutes 2000, section 3.3005,
subdivision 3, is amended to read:
Subd. 3. [STATE MATCH.] If a request to spend federal
money is included in the governor's budget or spending the money
is authorized by law but the amount of federal money received
requires a state match greater than that included in the budget
request or authorized by law, the amount that requires an
additional state match may be allotted for expenditure after the
requirements of subdivision 5 or 6 are met.
Sec. 3. Minnesota Statutes 2000, section 3.3005,
subdivision 3a, is amended to read:
Subd. 3a. [CHANGE IN PURPOSE.] If a request to spend
federal money is included in a governor's budget request and
approved according to subdivision 2a, but the purpose for which
the money is to be used changes from the time of the request and
approval, the amount may be allotted for expenditure after a
revised request is submitted according to subdivision 2 or the
requirements of subdivision 5 or 6 are met.
Sec. 4. Minnesota Statutes 2000, section 3.3005, is
amended by adding a subdivision to read:
Subd. 3b. [INCREASE IN AMOUNT.] If a request to spend
federal money is included in a governor's budget request and
approved according to subdivision 2 or 5 and the amount of money
available increases after the request is made and authorized,
the additional amount may be allotted for expenditure after a
revised request is submitted according to subdivision 2, or the
requirements of subdivision 5 or 6 are met.
Sec. 5. Minnesota Statutes 2000, section 3.3005,
subdivision 4, is amended to read:
Subd. 4. [INTERIM PROCEDURES; URGENCIES.] If federal money
becomes available to the state for expenditure after the
deadline in subdivision 2 or while the legislature is not in
session, and the availability of money from that source or for
that purpose or in that fiscal year could not reasonably have
been anticipated and included in the governor's budget request,
and an urgency requires that all or part of the money be
allotted before the legislature reconvenes or prior to the end
of the 20-day period specified in subdivision 2, it may be
allotted to a state agency after the requirements of subdivision
5 are met.
Sec. 6. Minnesota Statutes 2000, section 3.3005,
subdivision 5, is amended to read:
Subd. 5. [LEGISLATIVE ADVISORY COMMISSION REVIEW.] Federal
money that becomes available under subdivisions subdivision 3
and, 3a, 3b, or 4 may be allotted after the commissioner of
finance has submitted the request to the members of the
legislative advisory commission for their review and
recommendation for further review. If a recommendation is not
made within ten days, no further review by the legislative
advisory commission is required, and the commissioner shall
approve or disapprove the request. If a recommendation by any
member is for further review the governor shall submit the
request to the legislative advisory commission for its review
and recommendation. Failure or refusal of the commission to
make a recommendation promptly is a negative recommendation.
Sec. 7. Minnesota Statutes 2000, section 3.3005, is
amended by adding a subdivision to read:
Subd. 6. [INTERIM PROCEDURES; NONURGENCIES.] If federal
money becomes available to the state for expenditure after the
deadline in subdivision 2 or while the legislature is not in
session, and subdivision 4 does not apply, a request to expend
the federal money may be submitted by the commissioner of
finance to members of the legislative advisory commission for
their review and recommendation. This request must be submitted
by October 1 of any year. If any member of the commission makes
a negative recommendation or a recommendation for further review
on a request by October 20 of the same year, the commissioner
shall not approve expenditure of that federal money. If a
request to expend federal money submitted under this subdivision
receives a negative recommendation or a recommendation for
further review, the request may be submitted again under
subdivision 2. If the members of the commission make a positive
recommendation or no recommendation, the commissioner shall
approve or disapprove the request and the federal money may be
allotted for expenditure.
Sec. 8. Minnesota Statutes 2000, section 3.85, subdivision
3, is amended to read:
Subd. 3. [MEMBERSHIP.] The commission consists of five
members of the senate appointed by the subcommittee on
committees of the committee on rules and administration and five
members of the house of representatives appointed by the
speaker. Members shall be appointed at the commencement of each
regular session of the legislature for a two-year term beginning
January 16 of the first year of the regular session. Members
continue to serve until their successors are appointed.
Vacancies that occur while the legislature is in session shall
be filled like regular appointments. If the legislature is not
in session, senate vacancies shall be filled by the last
subcommittee on committees of the senate committee on rules and
administration or other appointing authority designated by the
senate rules, and house vacancies shall be filled by the last
speaker of the house, or if the speaker is not available, by the
last chair of the house rules committee.
Sec. 9. Minnesota Statutes 2000, section 3.855,
subdivision 3, is amended to read:
Subd. 3. [OTHER SALARIES AND COMPENSATION PLANS.] The
commission shall also:
(1) review and approve, reject, or modify a plan for
compensation and terms and conditions of employment prepared and
submitted by the commissioner of employee relations under
section 43A.18, subdivision 2, covering all state employees who
are not represented by an exclusive bargaining representative
and whose compensation is not provided for by chapter 43A or
other law;
(2) review and approve, reject, or modify a plan for total
compensation and terms and conditions of employment for
employees in positions identified as being managerial under
section 43A.18, subdivision 3, whose salaries and benefits are
not otherwise provided for in law or other plans established
under chapter 43A;
(3) review and approve, reject, or modify recommendations
for salaries submitted by the governor or other appointing
authority under section 43A.18 15A.0815, subdivision 5, covering
agency head positions listed in section 15A.0815;
(4) review and approve, reject, or modify recommendations
for salaries of officials of higher education systems under
section 15A.081, subdivision subdivisions 7b and 7c; and
(5) review and approve, reject, or modify plans for
compensation, terms, and conditions of employment proposed under
section 43A.18, subdivisions 3a and 4.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 10. Minnesota Statutes 2000, section 3.97,
subdivision 3a, is amended to read:
Subd. 3a. [EVALUATION TOPICS.] (a) The commission shall
periodically select topics for the legislative auditor to
evaluate. Topics may include any agency, program, or activity
established by law to achieve a state purpose, or any topic that
affects the operation of state government, but the commission
shall give primary consideration to topics that are likely, upon
examination, to produce recommendations for cost savings,
increased productivity, or the elimination of duplication among
public agencies. Legislators and legislative committees may
suggest topics for evaluation, but the legislative auditor shall
only conduct evaluations approved by the commission.
(b) The commission is requested to direct the auditor, in
response to a suggestion from an individual legislator of an
evaluation topic, to estimate the scope of the proposed
evaluation and the time required to complete it. The estimate
must be reported to the legislator who submitted the suggestion
and to the commission. The commission must determine within 60
days of receiving the estimate whether to proceed with the
suggested evaluation and must convey its decision to the
legislator along with the reasons for its decision.
Sec. 11. Minnesota Statutes 2000, section 3.979, is
amended by adding a subdivision to read:
Subd. 5. [COMMISSIONER'S OPINION; LEGISLATIVE AUDITOR
ACCESS TO DATA.] If, after the commissioner of administration
issues an opinion under section 13.072 that a person requesting
access to data held by a state agency is entitled to that
access, the state agency continues to refuse to provide the data
or the person making the request is told that the data sought
does not exist, the legislative audit commission may instruct
the legislative auditor to review all state agency data related
to the request. Following the review, the legislative auditor
shall provide all public data obtained, if any, to the
legislative audit commission.
[EFFECTIVE DATE.] This section is effective July 1, 2001,
and applies to commissioner's opinions issued after that date.
Sec. 12. Minnesota Statutes 2000, section 3.98,
subdivision 2, is amended to read:
Subd. 2. [CONTENTS.] (a) The fiscal note, where possible,
shall:
(1) cite the effect in dollar amounts;
(2) cite the statutory provisions affected;
(3) estimate the increase or decrease in revenues or
expenditures;
(4) include the costs which may be absorbed without
additional funds; and
(5) include the assumptions used in determining the cost
estimates; and
(6) specify any long-range implication.
(b) The fiscal note may comment on technical or mechanical
defects in the bill but shall express no opinions concerning the
merits of the proposal.
Sec. 13. [3.8841] [LEGISLATIVE COMMISSION ON METROPOLITAN
GOVERNMENT.]
Subdivision 1. [ESTABLISHED.] The legislative commission
on metropolitan government is established to oversee the
metropolitan council's operating and capital budgets, work
program, and capital improvement program.
Subd. 2. [MEMBERSHIP.] The commission consists of four
senators appointed by the senate subcommittee on committees of
the committee on rules and administration, three senators
appointed by the senate minority leader, four state
representatives appointed by the speaker of the house, and three
state representatives appointed by the house minority leader.
All members must reside in or represent a portion of the
seven-county metropolitan area. The appointing authorities must
ensure balanced geographic representation. Each appointing
authority must make appointments as soon as possible after the
opening of the next regular session of the legislature in each
odd-numbered year.
Subd. 3. [TERMS; VACANCIES.] Members of the commission
serve for a two-year term beginning upon appointment and
expiring upon appointment of a successor after the opening of
the next regular session of the legislature in the odd-numbered
year. A vacancy in the membership of the commission must be
filled for the unexpired term in a manner that will preserve the
representation established by this section.
Subd. 4. [CHAIR.] The commission must meet as soon as
practicable after members are appointed in each odd-numbered
year to elect its chair and other officers as it may determine
necessary. A chair serves a two-year term, expiring in the
odd-numbered year after a successor is elected. The chair must
alternate biennially between the senate and the house.
Subd. 5. [COMPENSATION.] Members serve without
compensation but may be reimbursed for their reasonable expenses
as members of the legislature.
Subd. 6. [STAFF.] Legislative staff must provide
administrative and research assistance to the commission.
Subd. 7. [MEETINGS; PROCEDURES.] The commission meets at
the call of the chair. If there is a quorum, the commission may
take action by a simple majority vote of commission members
present.
Subd. 8. [POWERS; DUTIES; METROPOLITAN COUNCIL LEVY,
BUDGET OVERSIGHT.] The commission must monitor, review, and make
recommendations to the metropolitan council and to the
legislature for the following calendar year on:
(1) the tax rate and dollar amount of the metropolitan
council's property tax levies and any proposed increases in the
rate or dollar amount of tax;
(2) any request for an increase in the debt of the
metropolitan council;
(3) the overall work and role of the metropolitan council;
(4) the metropolitan council's proposed operating and
capital budgets, work program, and capital improvement program;
and
(5) the metropolitan council's implementation of the
operating and capital budgets, work program, and capital
improvement program.
Subd. 9. [POWERS; DUTIES; METROPOLITAN COUNCIL
APPOINTMENTS OVERSIGHT.] The commission must monitor
appointments to the metropolitan council and may make
recommendations on appointments to the nominating committee
under section 473.123, subdivision 3, or to the governor before
the governor makes the appointments. The commission may also
make recommendations to the senate before appointments are
presented to the senate for its advice and consent.
Sec. 14. [4A.055] [COMMISSION ON THE ECONOMIC STATUS OF
WOMEN.]
The director must provide staff, office space, and
administrative support for the commission on the economic status
of women.
Sec. 15. Minnesota Statutes 2000, section 7.09,
subdivision 1, is amended to read:
Subdivision 1. [PROCEDURE.] The state treasurer is
authorized to receive and accept, on behalf of the state, any
gift, bequest, devise, or endowment which may be made by any
person, by will, deed, gift, or otherwise, to or for the benefit
of the state, or any of its departments or agencies, or to or in
aid, or for the benefit, support, or maintenance of any
educational, charitable, or other institution maintained in
whole or in part by the state, or for the benefit of students,
employees, or inmates thereof, or for any proper state purpose
or function, and the money, property, or funds constituting such
gift, bequest, devise, or endowment. No such gift, bequest,
devise, or endowment whose value is equal to or exceeds $10,000
shall be so accepted unless the commissioner of finance and the
state treasurer determine determines that it is for the interest
of the state to accept it, and approve of and direct the
acceptance. If the value is less than $10,000, only the state
treasurer need determine that it is for the interest of the
state to accept it, and approve of and direct the
acceptance. If a gift, bequest, devise, or endowment is money
or other negotiable instruments, then the deposit of it does not
constitute acceptance. In the event that the money or other
negotiable instruments are deposited but not approved, the
amount deposited must be refunded. When, in order to effect the
purpose for which any gift, bequest, devise, or endowment has
been accepted, it is necessary to sell property so received, the
state treasurer, upon request of the authority in charge of the
agency, department, or institution concerned, may sell it at a
price which shall be fixed by the state board of investment.
Sec. 16. Minnesota Statutes 2000, section 15.0575,
subdivision 3, as amended by Laws 2001, chapter 61, section 1,
is amended to read:
Subd. 3. [COMPENSATION.] (a) Members of the boards may be
compensated at the rate of $55 a day spent on board activities,
when authorized by the board, plus expenses in the same manner
and amount as authorized by the commissioner's plan adopted
under section 43A.18, subdivision 2. Members who, as a result
of time spent attending board meetings, incur child care
expenses that would not otherwise have been incurred, may be
reimbursed for those expenses upon board authorization.
(b) Members who are state employees or employees of the
political subdivisions of the state must not receive the daily
payment for activities that occur during working hours for which
they are compensated by the state or political subdivision.
However, a state or political subdivision employee may receive
the daily payment if the employee uses vacation time or
compensatory time accumulated in accordance with a collective
bargaining agreement or compensation plan for board activities.
Members who are state employees or employees of the political
subdivisions of the state may receive the expenses provided for
in this subdivision unless the expenses are reimbursed by
another source. Members who are state employees or employees of
political subdivisions of the state may be reimbursed for child
care expenses only for time spent on board activities that are
outside their working hours.
(c) Each board must adopt internal standards prescribing
what constitutes a day spent on board activities for purposes of
making daily payments under this subdivision.
[EFFECTIVE DATE.] This section is effective July 1, 2001,
and applies to service on or after that date.
Sec. 17. Minnesota Statutes 2000, section 15.059,
subdivision 3, as amended by Laws 2001, chapter 61, section 2,
is amended to read:
Subd. 3. [COMPENSATION.] (a) Members of the advisory
councils and committees may be compensated at the rate of $55 a
day spent on council or committee activities, when authorized by
the council or committee, plus expenses in the same manner and
amount as authorized by the commissioner's plan adopted under
section 43A.18, subdivision 2. Members who, as a result of time
spent attending council or committee meetings, incur child care
expenses that would not otherwise have been incurred, may be
reimbursed for those expenses upon council or committee
authorization.
(b) Members who are state employees or employees of
political subdivisions must not receive the daily compensation
for activities that occur during working hours for which they
are compensated by the state or political subdivision. However,
a state or political subdivision employee may receive the daily
payment if the employee uses vacation time or compensatory time
accumulated in accordance with a collective bargaining agreement
or compensation plan for council or committee activity. Members
who are state employees or employees of the political
subdivisions of the state may receive the expenses provided for
in this section unless the expenses are reimbursed by another
source. Members who are state employees or employees of
political subdivisions of the state may be reimbursed for child
care expenses only for time spent on board activities that are
outside their working hours.
(c) Each council and committee must adopt internal
standards prescribing what constitutes a day spent on council or
committee activities for purposes of making daily payments under
this subdivision.
[EFFECTIVE DATE.] This section is effective July 1, 2001,
and applies to service on or after that date.
Sec. 18. Minnesota Statutes 2000, section 15A.0815,
subdivision 1, is amended to read:
Subdivision 1. [SALARY LIMITS.] The governor or other
appropriate appointing authority shall set the salary rates for
positions listed in this section within the salary limits listed
in subdivisions 2 to 4, subject to approval of the legislative
coordinating commission and the legislature as provided
by subdivision 5 and sections 3.855, and 15A.081, subdivision 7b
, and 43A.18, subdivision 5.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 19. Minnesota Statutes 2000, section 15A.0815, is
amended by adding a subdivision to read:
Subd. 5. [APPOINTING AUTHORITIES TO RECOMMEND CERTAIN
SALARIES.] (a) The governor, or other appropriate appointing
authority, may submit to the legislative coordinating commission
recommendations for salaries within the salary limits for the
positions listed in subdivisions 2 to 4. An appointing
authority may also propose additions or deletions of positions
from those listed.
(b) Before submitting the recommendations, the appointing
authority shall consult with the commissioner of employee
relations concerning the recommendations.
(c) In making recommendations, the appointing authority
shall consider the criteria established in section 43A.18,
subdivision 8, and the performance of individual incumbents.
The performance evaluation must include a review of an
incumbent's progress toward attainment of affirmative action
goals. The appointing authority shall establish an objective
system for quantifying knowledge, abilities, duties,
responsibilities, and accountabilities, and in determining
recommendations, rate each position by this system.
(d) Before the appointing authority's recommended salaries
take effect, the recommendations must be reviewed and approved,
rejected, or modified by the legislative coordinating commission
and the legislature under section 3.855, subdivisions 2 and 3.
If, when the legislature is not in session, the commission fails
to reject or modify salary recommendations of the governor
within 30 calendar days of their receipt, the recommendations
are deemed to be approved.
(e) The appointing authority shall set the initial salary
of a head of a new agency or a chair of a new metropolitan board
or commission whose salary is not specifically prescribed by law
after consultation with the commissioner, whose recommendation
is advisory only. The amount of the new salary must be
comparable to the salary of an agency head or commission chair
having similar duties and responsibilities.
(f) The salary of a newly appointed head of an agency or
chair of a metropolitan agency listed in subdivisions 2 to 4,
may be increased or decreased by the appointing authority from
the salary previously set for that position within 30 days of
the new appointment after consultation with the commissioner.
If the appointing authority increases a salary under this
paragraph, the appointing authority shall submit the new salary
to the legislative coordinating commission and the full
legislature for approval, modification, or rejection under
section 3.855, subdivisions 2 and 3. If, when the legislature
is not in session, the commission fails to reject or modify
salary recommendations of the governor within 30 calendar days
of their receipt, the recommendations are deemed to be approved.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 20. Minnesota Statutes 2000, section 16A.06, is
amended by adding a subdivision to read:
Subd. 10. [TECHNOLOGY BUDGET BOOK.] The department must
prepare a separate budget book containing all of the
administration's technology initiatives. The book must be in
the same format as other biennial budget books.
Sec. 21. Minnesota Statutes 2000, section 16A.10, is
amended by adding a subdivision to read:
Subd. 1c. [PERFORMANCE MEASURES FOR CHANGE ITEMS.] For
each change item in the budget proposal requesting new or
increased funding, the budget document must present proposed
performance measures that can be used to determine if the new or
increased funding is accomplishing its goals.
Sec. 22. [16A.1286] [STATEWIDE SYSTEMS ACCOUNT.]
Subdivision 1. [CONTINUATION.] The statewide systems
account is a separate account in the special revenue fund. All
money resulting from billings for statewide systems services
must be deposited in the account. For the purposes of this
section, statewide systems includes the state accounting system,
payroll system, human resources systems, procurement system, and
related information access systems.
Subd. 2. [BILLING PROCEDURES.] The commissioner may bill
up to $7,520,000 in each fiscal year for statewide systems
services provided to state agencies, judicial branch agencies,
the University of Minnesota, the Minnesota state colleges and
universities, and other entities. Billing must be based only on
usage of services relating to statewide systems provided by the
intertechnologies division. Each agency shall transfer from
agency operating appropriations to the statewide systems account
the amount billed by the commissioner. Billing policies and
procedures related to statewide systems services must be
developed by the commissioner in consultation with the
commissioners of employee relations and administration, the
University of Minnesota, and the Minnesota state colleges and
universities.
Subd. 3. [APPROPRIATION.] Money transferred into the
account is appropriated to the commissioner to pay for statewide
systems services during the biennium in which it is appropriated.
Subd. 4. [SUPERSEDE.] This section supersedes section
8.31, subdivision 2c.
Subd. 5. [EXPIRATION.] This section expires June 30, 2003.
Sec. 23. [16A.151] [PROCEEDS OF LITIGATION OR SETTLEMENT.]
Subdivision 1. [STATE FUNDS; GENERAL FUND.] (a) This
subdivision applies, notwithstanding any law to the contrary,
except as provided in subdivision 2.
(b) A state official may not commence, pursue, or settle
litigation, or settle a matter that could have resulted in
litigation, in a manner that would result in money being
distributed to a person or entity other than the state.
(c) Money recovered by a state official in litigation or in
settlement of a matter that could have resulted in litigation is
state money and must be deposited in the general fund.
Subd. 2. [EXCEPTIONS.] (a) If a state official litigates
or settles a matter on behalf of specific injured persons or
entities, this section does not prohibit distribution of money
to the specific injured persons or entities on whose behalf the
litigation or settlement efforts were initiated. If money
recovered on behalf of injured persons or entities cannot
reasonably be distributed to those persons or entities because
they cannot readily be located or identified or because the cost
of distributing the money would outweigh the benefit to the
persons or entities, the money must be paid into the general
fund.
(b) Money recovered on behalf of a fund in the state
treasury other than the general fund may be deposited in that
fund.
(c) This section does not prohibit a state official from
distributing money to a person or entity other than the state in
litigation or potential litigation in which the state is a
defendant or potential defendant.
Subd. 3. [DEFINITIONS.] For purposes of this section:
(1) "litigation" includes civil, criminal, and
administrative actions;
(2) "money recovered" includes actual damages, punitive or
exemplary damages, statutory damages, and civil and criminal
penalties; and
(3) "state official" means the attorney general, another
constitutional officer, an agency, or an agency employee, acting
in official capacity.
Sec. 24. Minnesota Statutes 2000, section 16A.152,
subdivision 7, is amended to read:
Subd. 7. [DELAY; REDUCTION.] The commissioner may delay
paying up to 15 percent of an appropriation to a special taxing
district or a system of higher education in that entity's fiscal
year for up to 60 days after the start of its next fiscal year.
The delayed amount is subject to allotment reduction under
subdivision 1 4.
Sec. 25. Minnesota Statutes 2000, section 16B.25,
subdivision 2, is amended to read:
Subd. 2. [NOTICE.] Lost or abandoned property found on
state lands is placed in the custody of the commissioner. If
the rightful owner is known, the owner must be notified by
certified mail and may reclaim the property on paying the
expenses of the search. If the owner is unknown, the
commissioner must give two weeks' published notice in the county
where the property was found. Within six months following
publication, the rightful owner may receive the property on
paying the search expenses.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 26. Minnesota Statutes 2000, section 16B.60,
subdivision 3, is amended to read:
Subd. 3. [MUNICIPALITY.] "Municipality" means a city,
county, or town meeting the requirements of section 368.01,
subdivision 1, the University of Minnesota, or the state for
public buildings and state licensed facilities.
Sec. 27. Minnesota Statutes 2000, section 16B.60, is
amended by adding a subdivision to read:
Subd. 12. [DESIGNATE.] "Designate" means the formal
designation by a municipality's administrative authority of a
certified building official accepting responsibility for code
administration.
Sec. 28. Minnesota Statutes 2000, section 16B.60, is
amended by adding a subdivision to read:
Subd. 13. [ADMINISTRATIVE AUTHORITY.] "Administrative
authority" means a municipality's governing body or their
assigned administrative authority.
Sec. 29. Minnesota Statutes 2000, section 16B.61,
subdivision 1, as amended by Laws 2001, chapter 207, section 1,
is amended to read:
Subdivision 1. [ADOPTION OF CODE.] Subject to sections
16B.59 to 16B.75, the commissioner shall by rule establish a
code of standards for the construction, reconstruction,
alteration, and repair of buildings, governing matters of
structural materials, design and construction, fire protection,
health, sanitation, and safety, including design and
construction standards regarding heat loss control,
illumination, and climate control. The code must also include
duties and responsibilities for code administration, including
procedures for administrative action, penalties, and suspension
and revocation of certification. The code must conform insofar
as practicable to model building codes generally accepted and in
use throughout the United States, including a code for building
conservation. In the preparation of the code, consideration
must be given to the existing statewide specialty codes
presently in use in the state. Model codes with necessary
modifications and statewide specialty codes may be adopted by
reference. The code must be based on the application of
scientific principles, approved tests, and professional
judgment. To the extent possible, the code must be adopted in
terms of desired results instead of the means of achieving those
results, avoiding wherever possible the incorporation of
specifications of particular methods or materials. To that end
the code must encourage the use of new methods and new
materials. Except as otherwise provided in sections 16B.59 to
16B.75, the commissioner shall administer and enforce the
provisions of those sections.
The commissioner shall develop rules addressing the plan
review fee assessed to similar buildings without significant
modifications including provisions for use of building systems
as specified in the industrial/modular program specified in
section 16B.75. Additional plan review fees associated with
similar plans must be based on costs commensurate with the
direct and indirect costs of the service.
Sec. 30. Minnesota Statutes 2000, section 16B.65, is
amended to read:
16B.65 [BUILDING OFFICIALS.]
Subdivision 1. [APPOINTMENTS DESIGNATION.] The governing
body of By January 1, 2002, each municipality shall, unless
other means are already provided, appoint designate a building
official to administer the code. A municipality may designate
no more than one building official responsible for code
administration defined by each certification category
established in rule. Two or more municipalities may combine in
the appointment designation of a single building official for
the purpose of administering the provisions of the code within
their communities. In those municipalities for which no
building officials have been appointed designated, the state
building official, with the approval of the commissioner, may
appoint building officials to serve until the municipalities
have made an appointment. If unable to make an appointment, the
state building official may use whichever state employees or
state agencies are necessary to perform the duties of the
building official until the municipality makes a temporary or
permanent designation. All costs incurred by virtue of an
appointment by the state building official or these services
rendered by state employees must be borne by the involved
municipality. and receipts arising from the appointment these
services must be paid into the state treasury and credited to
the special revenue general fund.
Subd. 2. [QUALIFICATIONS.] A building official, to be
eligible for appointment designation, must be certified and have
the experience in design, construction, and supervision which
the commissioner deems necessary and must be generally informed
on the quality and strength of building materials, accepted
building construction requirements, and the nature of equipment
and needs conducive to the safety, comfort, and convenience of
building occupants. Each building official must be certified
under this section, except that the qualifications outlined in
this section are not mandatory regarding any building official
in any municipality engaged in the administration of a building
code on May 27, 1971, and continuing that function through July
1, 1972 No person may be designated as a building official for a
municipality unless the commissioner determines that the
official is qualified as provided in subdivision 3.
Subd. 3. [CERTIFICATION.] The commissioner shall:
(1) prepare and conduct written and practical examinations
to determine if a person is qualified pursuant to subdivision 2
to be a building official;
(2) accept documentation of successful completion of
testing programs developed by nationally recognized testing
agencies, as proof of qualification pursuant to subdivision 2;
or
(3) determine qualifications by both clauses (1) and (2).
Upon a determination of qualification under clause (1),
(2), or both of them, the commissioner shall issue a certificate
to the building official stating that the official is
certified. Each person applying for examination and
certification pursuant to this section shall pay a nonrefundable
fee of $70. The commissioner or a designee may establish
classes categories of certification that will recognize the
varying complexities of code enforcement in the municipalities
within the state. Except as provided by subdivision 2, no
person may act as a building official for a municipality unless
the commissioner determines that the official is qualified. The
commissioner shall provide educational programs designed to
train and assist building officials in carrying out their
responsibilities.
The department of employee relations may, at the request of
the commissioner, provide statewide testing services.
Subd. 4. [DUTIES.] Building officials shall, in the
municipality for which they are appointed designated, attend to
be responsible for all aspects of code administration for which
they are certified, including the issuance of all building
permits and the inspection of all manufactured home
installations. The commissioner may direct a municipality with
a building official to perform services for another
municipality, and in that event the municipality being served
shall pay the municipality rendering the services the reasonable
costs of the services. The costs may be subject to approval by
the commissioner.
Subd. 5. [REMOVAL FROM OFFICE OVERSIGHT COMMITTEE.] Except
as otherwise provided for by law the commissioner may, upon
notice and hearing, direct the dismissal of a building official
when it appears to the commissioner by competent evidence that
the building official has consistently failed to act in the
public interest in the performance of duties. Notice must be
provided and the hearing conducted in accordance with the
provisions of chapter 14 governing contested case proceedings.
Nothing in this subdivision limits or otherwise affects the
authority of a municipality to dismiss or suspend a building
official at its discretion, except as otherwise provided for by
law. (a) The commissioner shall establish a code administration
oversight committee to evaluate, mediate, and recommend to the
commissioner any administrative action, penalty, suspension, or
revocation with respect to complaints filed with or information
received by the commissioner alleging or indicating the
unauthorized performance of official duties or unauthorized use
of the title certified building official, or a violation of
statute, rule, or order that the commissioner has issued or is
empowered to enforce. The committee consists of five certified
building officials, at least two of whom must be from
nonmetropolitan counties. Committee members must be compensated
according to section 15.059, subdivision 3. The commissioner's
designee shall act as an ex-officio member of the oversight
committee.
(b) If the commissioner has a reasonable basis to believe
that a person has engaged in an act or practice constituting the
unauthorized performance of official duties, the unauthorized
use of the title certified building official, or a violation of
a statute, rule, or order that the commissioner has issued or is
empowered to enforce, the commissioner may proceed with
administrative actions or penalties as described in subdivision
5a or suspension or revocation as described in subdivision 5b.
Subd. 5a. [ADMINISTRATIVE ACTION AND PENALTIES.] The
commissioner shall, by rule, establish a graduated schedule of
administrative actions for violations of sections 16B.59 to
16B.75 and rules adopted under those sections. The schedule
must be based on and reflect the culpability, frequency, and
severity of the violator's actions. The commissioner may impose
a penalty from the schedule on a certification holder for a
violation of sections 16B.59 to 16B.75 and rules adopted under
those sections. The penalty is in addition to any criminal
penalty imposed for the same violation. Administrative monetary
penalties imposed by the commissioner must be paid to the
general fund.
Subd. 5b. [SUSPENSION; REVOCATION.] Except as otherwise
provided for by law, the commissioner may, upon notice and
hearing, revoke or suspend or refuse to issue or reissue a
building official certification if the applicant, building
official, or certification holder:
(1) violates a provision of sections 16B.59 to 16B.75 or a
rule adopted under those sections;
(2) engages in fraud, deceit, or misrepresentation while
performing the duties of a certified building official;
(3) makes a false statement in an application submitted to
the commissioner or in a document required to be submitted to
the commissioner; or
(4) violates an order of the commissioner.
Notice must be provided and the hearing conducted in
accordance with the provisions of chapter 14 governing contested
case proceedings. Nothing in this subdivision limits or
otherwise affects the authority of a municipality to dismiss or
suspend a building official at its discretion, except as
otherwise provided for by law.
Subd. 6. [VACANCIES.] In the event that a certified
designated building official vacates that position is vacant
within a municipality, that municipality shall appoint designate
a certified building official to fill the vacancy as soon as
possible. The commissioner must be notified of any vacancy or
designation in writing within 15 days. If the municipality
fails to appoint designate a certified building official within
90 15 days of the occurrence of the vacancy, the state building
official may make the appointment or provide state employees to
serve that function as provided in subdivision 1 until the
municipality makes a temporary or permanent designation.
Municipalities must not issue permits without a designated
certified building official.
Subd. 7. [CONTINUING EDUCATION.] Subject to sections
16B.59 to 16B.75, the commissioner may by rule establish or
approve continuing education programs for municipal building
officials dealing with matters of building code administration,
inspection, and enforcement.
Effective January 1, 1985, Each person certified as a
building official for the state must satisfactorily complete
applicable educational programs established or approved by the
commissioner every three calendar years to retain certification.
Each person certified as a building official must submit in
writing to the commissioner an application for renewal of
certification within 60 days of the last day of the third
calendar year following the last certificate issued. Each
application for renewal must be accompanied by proof of
satisfactory completion of minimum continuing education
requirements and the certification renewal fee established by
the commissioner.
For persons certified prior to January 1, 1985, the first
three-year period commences January 1, 1985.
Sec. 31. Minnesota Statutes 2000, section 16B.70, is
amended by adding a subdivision to read:
Subd. 3. [REVENUE TO EQUAL COSTS.] Revenue received from
the surcharge imposed in subdivision 1 should approximately
equal the cost, including the overhead cost, of administering
sections 16B.59 to 16B.75. By November 30 each year, the
commissioner must report to the commissioner of finance and to
the legislature on changes in the surcharge imposed in
subdivision 1 needed to comply with this policy. In making this
report, the commissioner must assume that the services
associated with administering sections 16B.59 to 16B.75 will
continue to be provided at the same level provided during the
fiscal year in which the report is made.
Sec. 32. Minnesota Statutes 2000, section 16B.88,
subdivision 1, is amended to read:
Subdivision 1. [INFORMATION CENTER FOR VOLUNTEER
PROGRAMS.] (a) The office of citizenship and volunteer services
is under the supervision and administration of a director
appointed by the commissioner governor. The office shall: (1)
operate as a state information, technical assistance, and
promotion center for volunteer programs; and (2) promote and
facilitate citizen participation in local governance and public
problem solving.
(b) In furtherance of the mission in paragraph (a), clause
(2), the office shall:
(1) engage in education and other activities designed to
enhance the capacity of citizens to solve problems affecting
their communities;
(2) promote and support efforts by citizens,
community-based organizations, nonprofits, churches, and local
governments to collaborate in solving community problems;
(3) encourage local governments to provide increased
opportunities for citizen involvement in public decision making
and public problem solving;
(4) refer innovative approaches to encourage greater public
access to and involvement in state and local government
decisions to appropriate state and local government officials;
(5) encourage units of state and local government to
respond to citizen initiatives and ideas;
(6) promote processes for involving citizens in government
decisions; and
(7) recognize and publicize models of effective public
problem solving by citizens.
Sec. 33. Minnesota Statutes 2000, section 16C.02, is
amended by adding a subdivision to read:
Subd. 10a. [ORGANIZATIONAL CONFLICT OF
INTEREST.] "Organizational conflict of interest" means that
because of existing or planned activities or because of
relationships with other persons:
(1) the vendor is unable or potentially unable to render
impartial assistance or advice to the state;
(2) the vendor's objectivity in performing the contract
work is or might be otherwise impaired; or
(3) the vendor has an unfair advantage.
Sec. 34. Minnesota Statutes 2000, section 16C.03,
subdivision 2, is amended to read:
Subd. 2. [RULEMAKING AUTHORITY.] Subject to chapter 14,
the commissioner may adopt rules, consistent with this chapter
and chapter 16B, relating to the following topics:
(1) solicitations and responses to solicitations, bid
security, vendor errors, opening of responses, award of
contracts, tied bids, and award protest process;
(2) contract performance and failure to perform;
(3) authority to debar or suspend vendors, and
reinstatement of vendors;
(4) contract cancellation; and
(5) procurement from rehabilitation facilities; and
(6) organizational conflicts of interest.
Sec. 35. Minnesota Statutes 2000, section 16C.03, is
amended by adding a subdivision to read:
Subd. 4a. [COMMISSIONER APPROVAL.] Notwithstanding any law
to the contrary, after January 1, 2002, any contract entered
into by the department of transportation must be approved by the
commissioner, unless the commissioner has delegated approval
authority to the department of transportation under subdivision
16.
Sec. 36. Minnesota Statutes 2000, section 16C.04, is
amended by adding a subdivision to read:
Subd. 3. [ORGANIZATIONAL CONFLICTS OF INTEREST.] (a) The
commissioner shall make reasonable efforts to avoid, mitigate,
or neutralize organizational conflicts of interest. To avoid an
organizational conflict of interest, the commissioner may
utilize methods including disqualifying a vendor from
eligibility for a contract award or canceling the contract if
the conflict is discovered after a contract has been issued. To
mitigate or neutralize a conflict, the commissioner may use
methods such as revising the scope of work to be conducted,
allowing vendors to propose the exclusion of task areas that
create a conflict, or providing information to all vendors to
assure that all facts are known to all vendors.
(b) In instances where a conflict or potential conflict has
been identified and the commissioner determines that vital
operations of the state will be jeopardized if a contract with
the vendor is not established, the commissioner may waive the
requirements in paragraph (a).
Sec. 37. Minnesota Statutes 2000, section 16C.05,
subdivision 2, is amended to read:
Subd. 2. [CREATION AND VALIDITY OF CONTRACTS.] (a) A
contract is not valid and the state is not bound by it unless:
(1) it has first been executed by the head of the agency or
a delegate who is a party to the contract;
(2) it has been approved by the commissioner;
(3) it has been approved by the attorney general or a
delegate as to form and execution;
(4) the accounting system shows an obligation in an expense
budget or encumbrance for the amount of the contract liability;
and
(5) the combined contract and amendments shall not exceed
five years without specific, written approval by the
commissioner according to established policy, procedures, and
standards, or unless otherwise provided for by law. The term of
the original contract must not exceed two years unless the
commissioner determines that a longer duration is in the best
interest of the state.
(b) Grants, interagency agreements, purchase orders, work
orders, and annual plans need not, in the discretion of the
commissioner and attorney general, require the signature of the
commissioner and/or the attorney general. Bond purchase
agreements by the Minnesota public facilities authority do not
require the approval of the commissioner.
(c) A fully executed copy of every contract must be kept on
file at the contracting agency.
Sec. 38. [16C.055] [BARTER ARRANGEMENTS LIMITED.]
Subdivision 1. [REPORT.] By January 15, 2002, the
legislative auditor shall report to the legislature and governor
on agency use of barter agreements in furtherance of an agency's
mission. The report shall list the type and approximate value
of each agency's agreement or agreements.
Subd. 2. [RESTRICTION.] After July 1, 2002, an agency may
not contract or otherwise agree with a nongovernmental entity to
receive total nonmonetary consideration valued at more than
$100,000 in exchange for the agency providing nonmonetary
consideration, unless such an agreement is specifically
authorized by law. This subdivision does not apply to the state
lottery.
Sec. 39. Minnesota Statutes 2000, section 16C.06,
subdivision 2, is amended to read:
Subd. 2. [SOLICITATION PROCESS.] (a) A formal solicitation
must be used to acquire all goods, service contracts, and
utilities estimated at or more than $25,000 $50,000 unless
otherwise provided for. All formal responses must be sealed
when they are received and must be opened in public at the hour
stated in the solicitation. Formal responses must be
authenticated by the responder in a manner specified by the
commissioner.
(b) An informal solicitation may be used to acquire all
goods, service contracts, and utilities that are estimated at
less than $25,000 $50,000. The number of vendors required to
receive solicitations may be determined by the commissioner.
Informal responses must be authenticated by the responder in a
manner specified by the commissioner.
Sec. 40. Minnesota Statutes 2000, section 16C.06,
subdivision 3, is amended to read:
Subd. 3. [INFORMATION IN BIDS AND PROPOSALS.] (a) Only the
name of the vendor and dollar amounts specified in a response to
a request for bids shall be read at the time of opening. Only
the name of the responding vendors to all requests for proposals
shall be read at the time of opening. All other information
contained in a vendor's response to a bid is classified as
nonpublic data, as defined in section 13.02, and remains
nonpublic data until completion of the selection process. All
other information contained in a vendor's response to a request
for proposal, other than the name of the vendor, is classified
as nonpublic data, as defined in section 13.02, and remains
nonpublic data until the completion of the evaluation process.
(b) All responses are public information at the time of the
award unless otherwise provided for. All responses and
documents pertaining to the final award of an acquisition must
be retained and made a part of a permanent file or record and
remain open to public inspection, after award, unless otherwise
provided for by law.
(c) If the commissioner rejects all responses to a
solicitation, information in the responses, other than the
information made public pursuant to paragraph (a), remains
nonpublic data, as defined in section 13.02, until a selection
is made based on responses to a resolicitation of bids, the
evaluation process is completed based on responses to a
resolicitation of a request for proposals, or a determination is
made to abandon the purchase.
Sec. 41. [16C.066] [COST-BENEFIT ANALYSIS.]
(a) The commissioner or an agency official to whom the
commissioner has delegated duties under section 16C.03,
subdivision 16, may not approve a contract or purchase of goods
or services for transit or other transportation purposes in an
amount greater than $10,000,000 unless a cost-benefit analysis
has been completed and shows a positive benefit to the public.
The management analysis division must perform or direct the
performance of the analysis. A cost-benefit analysis must be
performed for a project if an aggregation of contracts or
purchases for a project exceeds $10,000,000.
(b) All cost-benefit analysis documents under this section,
including preliminary drafts and notes, are public data.
(c) This section applies to contracts for goods or services
that are expected to have a useful life of more than three
years. This section does not apply for purchase of goods or
services for response to a natural disaster if an emergency has
been declared by the governor.
(d) This section expires June 30, 2003.
Sec. 42. Minnesota Statutes 2000, section 16C.081, is
amended to read:
16C.081 [EXCEPTION FOR FEDERAL CONTRACTS.]
Notwithstanding any law to the contrary, the commissioner
of transportation, commissioner of the pollution control agency,
or commissioner of natural resources an agency may, when
required by a federal agency entering into an intergovernmental
contract, negotiate contract terms providing for full or partial
prepayment to the federal agency before work is performed or
services are provided.
Sec. 43. Minnesota Statutes 2000, section 16C.22, is
amended to read:
16C.22 [DISTRICT HEATING.]
Notwithstanding any other law, general or special, the
commissioner is authorized to enter into or approve a written
agreement not to exceed 31 years with a district heating or
cooling utility that will specify, but not be limited to, the
appropriate terms and conditions for the interchange of district
heating or cooling services.
Sec. 44. [16E.035] [TECHNOLOGY INVENTORY.]
The commissioner of administration must prepare an
inventory of technology owned or leased by state agencies. The
inventory must include: (1) information on how the technology
fits into the state's information technology architecture; and
(2) a projected replacement schedule. The commissioner must
report the inventory to the legislative committees with primary
jurisdiction over state technology issues by July 1 of each
even-numbered year.
Sec. 45. Minnesota Statutes 2000, section 16E.04,
subdivision 2, as amended by Laws 2001, chapter 7, section 11,
is amended to read:
Subd. 2. [RESPONSIBILITIES.] (a) In addition to other
activities prescribed by law, the office shall carry out the
duties set out in this subdivision.
(b) The office shall develop and establish a state
information architecture to ensure that further state agency
development and purchase of information and communications
systems, equipment, and services is designed to ensure that
individual agency information systems complement and do not
needlessly duplicate or conflict with the systems of other
agencies. When state agencies have need for the same or similar
public data, the commissioner, in coordination with the affected
agencies, shall promote the most efficient and cost-effective
method of producing and storing data for or sharing data between
those agencies. The development of this information
architecture must include the establishment of standards and
guidelines to be followed by state agencies.
(c) The office shall assist state agencies in the planning
and management of information systems so that an individual
information system reflects and supports the state agency's
mission and the state's requirements and functions.
(d) The office shall review agency requests for legislative
appropriations for the development or purchase of information
systems equipment or software.
(e) The office shall review major purchases of information
systems equipment to:
(1) ensure that the equipment follows the standards and
guidelines of the state information architecture;
(2) ensure that the equipment is consistent with the
information management principles adopted by the information
policy council;
(3) evaluate whether the agency's proposed purchase
reflects a cost-effective policy regarding volume purchasing;
and
(4) ensure that the equipment is consistent with other
systems in other state agencies so that data can be shared among
agencies, unless the office determines that the agency
purchasing the equipment has special needs justifying the
inconsistency.
(f) The office shall review the operation of information
systems by state agencies and provide advice and assistance to
ensure that these systems are operated efficiently and
continually meet the standards and guidelines established by the
office. The standards and guidelines must emphasize uniformity
that encourages information interchange, open systems
environments, and portability of information whenever
practicable and consistent with an agency's authority and
chapter 13. The office, in consultation with the legislative
reference library, shall recommend specific standards and
guidelines for each state agency within a time period fixed by
the office in regard to the following:
(1) establishing methods and systems directed at reducing
and ultimately eliminating redundant storage of data; and
(2) establishing information sales systems that utilize
licensing and royalty agreements to the greatest extent
possible, together with procedures for agency denial of requests
for licenses or royalty agreements by commercial users or
resellers of the information. Section 3.751 does not apply to
those licensing and royalty agreements, and the agreements must
include provisions that section 3.751 does not apply and that
the state is immune from liability under the agreement.
(g) The office shall conduct a comprehensive review at
least every three years of the information systems investments
that have been made by state agencies and higher education
institutions. The review must include recommendations on any
information systems applications that could be provided in a
more cost-beneficial manner by an outside source. The office
must report the results of its review to the legislature and the
governor.
(h) The office shall report to the legislature by January
15 of each year on progress in implementing paragraph (f),
clauses (1) and (2).
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 46. [16E.0465] [TECHNOLOGY APPROVAL.]
Subdivision 1. [APPLICATION.] This section applies to an
appropriation of more than $1,000,000 of state or federal funds
to a state agency for any information and communications
technology project or data processing device or system or for
any phase of such a project, device, or system. For purposes of
this section, an appropriation of state or federal funds to a
state agency includes an appropriation:
(1) to the Minnesota state colleges and universities;
(2) to a constitutional officer;
(3) for a project that includes both a state agency and
units of local government; and
(4) to a state agency for grants to be made to other
entities.
Subd. 2. [REQUIRED REVIEW AND APPROVAL.] (a) A state
agency receiving an appropriation for an information and
communications technology project or data processing device or
system subject to this section must divide the project into
phases.
(b) The commissioner of finance may not authorize the
encumbrance or expenditure of an appropriation of state funds to
a state agency for any phase of a project, device, or system
subject to this section unless the office of technology has
reviewed each phase of the project, device, or system, and based
on this review, the commissioner of administration has
determined for each phase that:
(1) the project is compatible with the state information
architecture and other policies and standards established by the
commissioner of administration; and
(2) the agency is able to accomplish the goals of the phase
of the project with the funds appropriated.
Subd. 3. [ROLE OF COMMISSIONER.] Unless money is
appropriated directly to the commissioner of administration, the
role of the commissioner and the office of technology is to
review and approve projects under this section, and not to
design or implement the projects.
Sec. 47. [16E.055] [COMMON WEB FORMAT.]
A state agency that implements electronic government
services for fees, licenses, sales, or other purposes must use a
common Web page format approved by the commissioner of
administration for those electronic government services. The
commissioner may create a single entry site for all agencies to
use for electronic government services.
Sec. 48. [16E.09] [TECHNOLOGY ENTERPRISE FUND.]
Subdivision 1. [FUND ESTABLISHED.] A technology enterprise
fund is established. Money deposited in the fund is
appropriated to the commissioner of administration for the
purpose of funding technology projects among government entities
that promote cooperation, innovation, and shared use of
technology and technology standards, and electronic government
services. Savings generated by information technology and
communications projects may be deposited in the fund upon
agreement by the commissioner of administration and the
executive of the government entity generating the funds. The
transfer of funds between state agencies is subject to the
approval of the commissioner of finance. The commissioner of
finance shall notify the chairs of the committees funding the
affected state agencies of the transfers. Funds are available
until June 30, 2005.
Subd. 2. [TECHNOLOGY ENTERPRISE BOARD.] A technology
enterprise board is established to advise the state chief
information officer, the office of technology, the governor, the
executive branch, and the legislature regarding information
technology funding and expenditures from the technology
enterprise fund. The board shall consist of up to 18 members
representing public and private entities with general expertise
in information technology and telecommunications initiatives and
planning. The state chief information officer shall act as
chair and the office of technology shall provide necessary staff
support. Nonlegislator members shall be appointed by the
governor, including one nominee representing the state executive
council, one nominee representing the supreme court, and one
nominee representing the higher education advisory council; and
seven at-large members representing the private sector with
experience in business. The speaker of the house of
representatives and the senate subcommittee on committees shall
each appoint two legislators to the board. Legislator members
serve at the pleasure of the appointing authority. Membership
terms, compensation, and removal of nonlegislator board members
are governed by section 15.059, except that terms are three
years and the board expires on June 30, 2005.
Subd. 3. [REPORT TO LEGISLATURE.] By February 1 each year,
the commissioner of administration shall report to the chairs of
the finance committees in the senate and house of
representatives with jurisdiction over governmental operations
on expenditures and activities under this section.
Subd. 4. [EXPIRATION.] This section expires June 30, 2005.
Sec. 49. Minnesota Statutes 2000, section 43A.04, is
amended by adding a subdivision to read:
Subd. 12. [TOTAL COMPENSATION REPORTING.] (a) The
commissioner, in consultation with the commissioner of finance,
shall report to the governor and the legislature by January 15
each year on executive branch employee salary and benefits. The
purpose of the report is to assist in effective long-range
planning and to provide data necessary to compute annual and
biennial costs related to the state workforce. The report must
use data available in the biennial budget system and other
necessary sources. The report also must be made available to
the public in an electronic format.
(b) The report must be organized by agency. The report
must list the salary or hourly rate of pay for each agency
employee. The report may list the employee by name or by an
identification number.
(c) The report must also include an estimate of the average
cost to the state of providing insurance and other benefits to a
state employee.
Sec. 50. Minnesota Statutes 2000, section 43A.04, is
amended by adding a subdivision to read:
Subd. 13. [COMBINED CHARITIES CAMPAIGN.] (a) The
commissioner shall administer the state employee combined
charities campaign. This duty includes registration of combined
charitable organizations under section 309.501, and coordination
and administration of the process under which state employees
contribute to combined charitable organizations.
(b) The commissioner, in consultation with other
commissioners, shall appoint a voluntary board of state
employees to oversee the conduct of an annual combined charities
campaign. The board must, to the extent possible, represent a
cross-section of state employee groups and geographic areas
where state employees are located. The board shall provide
direction to the commissioner's employee assigned to administer
the annual campaign and shall approve any expenditure of state
funds appropriated for purposes of this subdivision.
Sec. 51. Minnesota Statutes 2000, section 43A.047, is
amended to read:
43A.047 [CONTRACTED SERVICES.]
(a) Executive agencies, including the Minnesota state
colleges and universities system, must demonstrate that they
cannot use available staff before hiring outside consultants or
services. If use of consultants is necessary, agencies are
encouraged to negotiate contracts that will involve permanent
staff, so as to upgrade and maximize training of state employees.
(b) If agencies reduce operating budgets, agencies must
give priority to reducing spending on professional and technical
service contracts before laying off permanent employees.
(c) Agencies must report to the commissioner of
administration by November 1 each year on implementation of this
section during the previous fiscal year. The reports must
include amounts spent on professional and technical service
contracts during the previous fiscal year. The commissioner
shall compile the reports into a uniform format and forward them
to the chairs of the senate finance and house ways and means
committees by November 15.
Sec. 52. Minnesota Statutes 2000, section 79.34,
subdivision 1, is amended to read:
Subdivision 1. [CONDITIONS REQUIRING MEMBERSHIP.] The
nonprofit association known as the workers' compensation
reinsurance association may be incorporated under chapter 317A
with all the powers of a corporation formed under that chapter,
except that if the provisions of that chapter are inconsistent
with sections 79.34 to 79.40, sections 79.34 to 79.40 govern.
Each insurer as defined by section 79.01, subdivision 2, shall,
as a condition of its authority to transact workers'
compensation insurance in this state, be a member of the
reinsurance association and is bound by the plan of operation of
the reinsurance association; provided, that all affiliated
insurers within a holding company system as defined in chapter
60D are considered a single entity for purposes of the exercise
of all rights and duties of membership in the reinsurance
association. Each self-insurer approved under section 176.181
and each political subdivision that self-insures shall, as a
condition of its authority to self-insure workers' compensation
liability in this state, be a member of the reinsurance
association and is bound by its plan of operation; provided that:
(1) all affiliated companies within a holding company
system, as determined by the commissioner of labor and industry
in a manner consistent with the standards and definitions in
chapter 60D, are considered a single entity for purposes of the
exercise of all rights and duties of membership in the
reinsurance association; and
(2) all group self-insurers granted authority to
self-insure pursuant to section 176.181 are considered single
entities for purposes of the exercise of all the rights and
duties of membership in the reinsurance association. As a
condition of its authority to self-insure workers' compensation
liability, and for losses incurred after December 31, 1983, the
state is a member of the reinsurance association and is bound by
its plan of operation. The commissioner of employee relations
represents the state in the exercise of all the rights and
duties of membership in the reinsurance association. The state
treasurer shall pay the premium to the reinsurance association
from the state compensation revolving fund upon warrants of the
commissioner of employee relations, except that The amounts
necessary to pay the state's premiums required for coverage by
the workers' compensation reinsurance association are
appropriated from the general fund to the commissioner of
employee relations. The University of Minnesota shall pay its
portion of workers' compensation reinsurance premiums directly
to the workers' compensation reinsurance association. For the
purposes of this section, "state" means the administrative
branch of state government, the legislative branch, the judicial
branch, the University of Minnesota, and any other entity whose
workers' compensation liability is paid from the state revolving
fund. The commissioner of finance may calculate, prorate, and
charge a department or agency the portion of premiums paid to
the reinsurance association for employees who are paid wholly or
in part by federal funds, dedicated funds, or special revenue
funds. The reinsurance association is not a state agency.
Actions of the reinsurance association and its board of
directors and actions of the commissioner of labor and industry
with respect to the reinsurance association are not subject to
chapters 13 and 15. All property owned by the association is
exempt from taxation. The reinsurance association is not
obligated to make any payments or pay any assessments to any
funds or pools established pursuant to this chapter or chapter
176 or any other law.
Sec. 53. [116T.01] [DEFINITIONS.]
For purposes of this chapter:
(1) "board" means the board of directors of Northern
Technology Initiative, Inc.; and
(2) "corporation" means Northern Technology Initiative, Inc.
Sec. 54. [116T.02] [CORPORATION; MEMBERS; BOARD OF
DIRECTORS; POWERS.]
Subdivision 1. [PUBLIC CORPORATION.] Northern Technology
Initiative, Inc. is a public corporation of the state and is not
subject to the laws governing a state agency except as provided
in this chapter. The business of the corporation must be
conducted under the name "Northern Technology Initiative, Inc."
Subd. 2. [PURPOSE.] Northern Technology Initiative, Inc.
is a regional economic initiative of Minnesota counties,
townships, home rule charter or statutory cities within
participating counties, economic development groups, state and
federal agencies, public and private post-secondary
institutions, and businesses. The project area includes, at a
minimum, the counties of Carlton, Chisago, Isanti, Kanabec, and
Pine, but may be expanded as other contiguous counties elect to
participate. The purpose of the corporation is to engage in an
integrated, jointly planned economic development effort with a
focus on encouraging growth among existing businesses and
attracting technology companies to the region served by the
corporation. A home rule charter city, statutory city, county,
township, or other public entity participating in the initiative
may budget public funds for the initiative.
Subd. 3. [BOARD OF DIRECTORS.] The corporation is governed
by a board of directors consisting of:
(1) a member of the governing body of each participating
county, appointed by the governing body;
(2) a member of the governing body of each participating
home rule charter or statutory city, appointed by the governing
body;
(3) the president of each participating post-secondary
institution;
(4) the commissioner of the department of trade and
economic development or an employee of the department designated
by the commissioner; and
(5) other members as may be provided by the bylaws adopted
and amended in accordance with subdivision 4.
The membership terms, compensation, removal, and filling of
vacancies of members of the board are governed by the bylaws of
the corporation.
Subd. 4. [BYLAWS.] The board of directors shall adopt
bylaws and publish the bylaws and amendments to the bylaws in
the State Register. The bylaws must provide for financial and
other contributions by participating entities to cover the
operation of the corporation.
Subd. 5. [PLACES OF BUSINESS.] The board shall locate and
maintain the corporation's places of business within Carlton,
Chisago, Isanti, Kanabec, or Pine county.
Subd. 6. [MEETINGS AND ACTIONS OF BOARD.] (a) The board
must meet at least twice a year and may hold additional meetings
upon giving notice in accordance with the bylaws of the
corporation. Except as provided in subdivision 7, board
meetings are subject to chapter 13D.
(b) A conference among directors by any means of
communication through which the directors may simultaneously
hear each other during the conference constitutes a board
meeting if the number of directors participating in the
conference is sufficient to constitute a quorum for the
meeting. Participation in a meeting by that means constitutes
presence in person at the meeting.
Subd. 7. [CLOSED MEETINGS; RECORDING.] The board of
directors may, by a majority vote in a public meeting, decide to
hold a closed meeting for purposes of discussing data described
in subdivision 8 or security information, trade secret
information, or labor relations information, as defined in
section 13.37, subdivision 1. The time and place of the closed
meeting must be announced at the public meeting. A written roll
of members present at the closed meeting must be made available
to the public after the closed meeting. The proceedings of a
closed meeting must be tape recorded. The data on the tape are
nonpublic data or private data on individuals as defined in
section 13.02, subdivision 9 or 12, whichever is applicable.
Subd. 8. [APPLICATION AND INVESTIGATIVE DATA.] Financial
data, statistics, and information furnished to the corporation
in connection with assistance or proposed assistance, including
credit reports; financial statements; statements of net worth;
income tax returns, either personal or corporate; and any other
business and personal financial records, are private data with
regard to data on individuals under section 13.02, subdivision
12, or nonpublic data with regard to data not on individuals
under section 13.02, subdivision 9.
Subd. 9. [CONFLICT OF INTEREST.] A director, employee, or
officer of the corporation may not participate in or vote on a
decision of the board relating to an organization in which the
director has either a direct or indirect financial interest or a
conflict of interest as described in section 10A.07.
Subd. 10. [TORT CLAIMS.] The corporation is a state agency
for purposes of section 3.736, except the corporation, not the
state, is responsible for paying for any tort liability.
Subd. 11. [DATA PRACTICES AND RECORDS MANAGEMENT.] The
corporation is subject to chapter 13 and sections 15.17 and
138.163 to 138.226.
Sec. 55. [116T.03] [CORPORATE PERSONNEL.]
Subdivision 1. [GENERALLY.] The board shall appoint and
set the compensation for the executive director who serves as
chief executive officer of the corporation. The compensation of
the executive director may not exceed 85 percent of the
governor's salary. The board may designate the executive
director as its general agent. Subject to the approval of the
board, the executive director shall employ staff consultants and
other agents necessary to carry out the mission of the
corporation.
Subd. 2. [STATUS OF EMPLOYEES.] Employees, officers, and
directors of the corporation are not state employees, but are
covered by section 3.736 and, at the option of the board,
employees may participate in the state retirement plan for
employees in the unclassified service, the state deferred
compensation plan, and an insurance plan administered by the
commissioner of employee relations.
Sec. 56. [116T.04] [POWERS AND DUTIES OF CORPORATION.]
Subdivision 1. [GENERAL POWERS AND DUTIES.] (a) The
corporation has the powers granted to a nonprofit corporation by
section 317A.161, except as otherwise provided in this chapter.
(b) Except as specified in section 116T.02, subdivision 10,
the state is not liable for the obligations of the corporation.
(c) Section 317A.161 applies to this chapter and the
corporation in the same manner that it applies to business
corporations established under chapter 317A.
Subd. 2. [RULES.] The corporation must publish in the
State Register any guidelines, policies, or eligibility criteria
prepared or adopted by the corporation for its programs.
Sec. 57. [116T.05] [AUDITS.]
The corporation is subject to the auditing requirements of
sections 3.971 and 3.972.
Sec. 58. [116T.06] [DISSOLUTION.]
In the event of dissolution of the corporation for any
reason, the bylaws must provide for return of the proceeds of
that liquidation and any wholly owned assets of the corporation
to the entities participating in Northern Technology Initiative,
Inc. in exchange for the assumption of all outstanding
obligations of the corporation.
Sec. 59. Minnesota Statutes 2000, section 136F.07, is
amended to read:
136F.07 [CHANCELLOR.]
The board shall appoint a chancellor who shall serve in the
unclassified service. The chancellor shall possess powers and
perform duties as delegated by the board. The board shall set
the salary of the chancellor according to section 15A.0815
15A.081, subdivision 7c.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 60. Minnesota Statutes 2000, section 136F.40,
subdivision 2, is amended to read:
Subd. 2. [COMPENSATION CONTRACTS.] Notwithstanding any
other provision to the contrary, when establishing compensation
the board may provide, through a contract, a liquidated salary
amount or other compensation if a contract with a chancellor or
president is terminated by the board prior to its expiration.
Any benefits shall be excluded in computation of
retirement, insurance, and other benefits available through or
from the state. Any benefits or additional compensation must be
as provided under the plan approved under section 43A.18,
subdivision 3a. (a) The board may enter into a contract with the
chancellor, a vice-chancellor, or a president, containing terms
and conditions of employment. The terms of the contract must be
authorized under a plan approved under section 43A.18,
subdivision 3a.
(b) Notwithstanding section 43A.17, subdivision 11, or
other law to the contrary, a contract under this section may
provide a liquidated salary amount or other compensation if a
contract is terminated by the board prior to its expiration.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 61. Minnesota Statutes 2000, section 179A.15, is
amended to read:
179A.15 [MEDIATION.]
Once notice has been given under section 179A.14, the
employer or the exclusive representative may petition the
commissioner for mediation services.
A petition by an employer shall be signed by the employer
or an authorized officer or agent. A petition by an exclusive
representative shall be signed by its authorized officer. All
petitions shall be delivered to served on the commissioner in
person or sent by certified mail writing. The petition shall
state briefly the nature of the disagreement of the parties.
Upon receipt of a petition and upon concluding that mediation
would be useful, the commissioner shall fix a time and place for
a conference with the parties to negotiate the issues not agreed
upon, and shall then take the most expedient steps to bring
about a settlement, including assisting in negotiating and
drafting an agreement.
If the commissioner determines that mediation would be
useful in resolving a dispute, the commissioner may mediate the
dispute even if neither party has filed a petition for
mediation. In these cases, the commissioner shall proceed as if
a petition had been filed.
The commissioner shall not furnish mediation services to
any employee or employee representative who is not certified as
an exclusive representative.
All parties shall respond to the summons of the
commissioner for conferences and shall continue in conference
until excused by the commissioner.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 62. Minnesota Statutes 2000, section 190.06,
subdivision 1, is amended to read:
Subdivision 1. [COMPOSITION.] The militia shall consist of:
(1) all able-bodied citizens of the state and other
able-bodied persons, residing in the state who have or shall
have declared their intention to become citizens of the United
States, when so authorized by federal law, who comply with the
minimum age requirements for federal regular military service
under United States Code, title 10, section 505, and who are not
more than 45 years of age; provided, that the governor may, when
the governor deems it necessary for the defense of the state,
extend the maximum age for militia service to not more than 64
years; and
(2) persons who enlist in, are commissioned in, or are
otherwise appointed to the Minnesota national guard in
accordance with applicable federal law and regulation, including
enlisted members, warrant officers, and commissioned officers.
Sec. 63. Minnesota Statutes 2000, section 190.07, is
amended to read:
190.07 [APPOINTMENT; QUALIFICATIONS; RANK.]
There shall be an adjutant general of the state who shall
be appointed by the governor. The adjutant general shall be a
staff officer, who at the time of appointment shall be a
commissioned officer of the national guard of this state, with
not less than ten years military service in the armed forces
national guard of this state or the armed forces of the United
States, at least three of which shall have been commissioned and
who shall have reached the grade of a field officer.
The adjutant general shall hold at least the rank of major
general and may be promoted to and including the highest rank
authorized under federal law. However, the adjutant
general shall may not be appointed promoted to the rank of major
general without having at least 20 years service in the
Minnesota national guard, at least one of which one year has
been in the rank of brigadier general.
The term of the adjutant general is seven years from the
date of appointment. Section 15.06, subdivisions 3, 4, and 5,
governs filling of vacancies in the office of adjutant general.
The adjutant general shall not be removed from office during a
term except upon withdrawal of federal recognition or as
otherwise provided by the military laws of this state.
Sec. 64. Minnesota Statutes 2000, section 192.501,
subdivision 2, is amended to read:
Subd. 2. [TUITION AND TEXTBOOK REIMBURSEMENT GRANT
PROGRAM.] (a) The adjutant general shall establish a program to
provide tuition and textbook reimbursement grants to eligible
members of the Minnesota national guard within the limitations
of this subdivision.
(b) Eligibility is limited to a member of the national
guard who:
(1) is serving satisfactorily as defined by the adjutant
general;
(2) is attending a post-secondary educational institution,
as defined by section 136A.15, subdivision 6, including a
vocational or technical school operated or regulated by this
state or another state or province; and
(3) provides proof of satisfactory completion of
coursework, as defined by the adjutant general.
In addition, if a member of the Minnesota national guard is
killed in the line of state active service or federally funded
state active service, as defined in section 190.05, subdivisions
5a and 5b, the member's surviving spouse, and any surviving
dependent who has not yet reached 24 years of age, is eligible
for a tuition and textbook reimbursement grant.
The adjutant general may, within the limitations of this
paragraph and other applicable laws, determine additional
eligibility criteria for the grant, and must specify the
criteria in department regulations and publish changes as
necessary.
(c) The amount of a tuition and textbook reimbursement
grant must be specified on a schedule as determined and
published in department regulations by the adjutant general, but
is limited to a maximum of an amount equal to the greater of:
(1) 75 80 percent of the cost of tuition for lower division
programs in the college of liberal arts at the twin cities
campus of the University of Minnesota in the most recent
academic year; or
(2) 50 80 percent of the cost of tuition for the program in
which the person is enrolled at that Minnesota public
institution, or if that public institution is outside the state
of Minnesota, for the cost of a comparable program at the
University of Minnesota, except that in the case of a survivor
as defined in paragraph (b), the amount of the tuition and
textbook reimbursement grant for coursework satisfactorily
completed by the person is limited to 100 percent of the cost of
tuition for post-secondary courses at a Minnesota public
educational institution.
Paragraph (b) notwithstanding, a person is no longer
eligible for a grant under this subdivision once the person has
received grants under this subdivision for the equivalent of 208
quarter credits or 144 semester credits of coursework.
(d) Tuition and textbook reimbursement grants received
under this subdivision may not be considered by the Minnesota
higher education services office or by any other state board,
commission, or entity in determining a person's eligibility for
a scholarship or grant-in-aid under sections 136A.095 to
136A.1311.
(e) If a member fails to complete a term of enlistment
during which a tuition and textbook reimbursement grant was
paid, the adjutant general may seek to recoup a prorated amount
as determined by the adjutant general.
(f) The adjutant general shall maintain records and report
any findings to the legislature by March 1, 2003, on the impact
of increasing the reimbursement amounts under paragraph (c)
during the period July 1, 2001, through December 31, 2002.
(g) This paragraph, paragraph (f), and the amendments made
by this act to paragraph (c) expire June 30, 2003.
Sec. 65. Minnesota Statutes 2000, section 193.144,
subdivision 6, is amended to read:
Subd. 6. [DISPOSAL OF UNUSED SITE.] In case any land
acquired for armory site purposes hereunder has been donated to
such corporation or to the state of Minnesota by such county or
municipality or by other governmental agency except the state,
and in case such land or any part thereof shall thereafter not
be used for armory purposes for a continuous period of more than
ten years, not including the period of any war or other
emergency in which the armed forces of the state may be engaged,
the county or municipality may provide written notice to the
adjutant general and, if the property is not used for armory
purposes within one year from the notice, the adjutant general
shall reconvey the property to the donor county or
municipality. The adjutant general may reconvey the property in
less than ten years, if the adjutant general determines that the
corporation or the state has no further interest in the property.
Sec. 66. Minnesota Statutes 2000, section 193.145,
subdivision 4, is amended to read:
Subd. 4. [PAYMENTS BY ADJUTANT GENERAL.] Whether or not
bonds are issued, the adjutant general is hereby authorized to
pay to such corporation, out of any moneys which may from time
to time be appropriated to and for the military department and
not appropriated or set apart for any other specific purpose,
the sum of not less than $3,000 per year for each unit of the
national guard quartered in such armory when only one such unit
is so quartered, and the sum of not less than $2,000 per year
for each additional unit when more than one such unit is so
quartered, and may bind the office of the adjutant general, both
currently and in the future, by agreement to such corporation to
make such payments in a specific amount or amounts out of such
appropriations for a period of not more than 40 years.
Sec. 67. Minnesota Statutes 2000, section 193.148, is
amended to read:
193.148 [CONVEYANCE TO STATE.]
When payment has been made of all indebtedness incurred by
such corporation or of all funds spent by the corporation
incident to the procurement, erection, equipment, and operation
of any armory built under the provisions of sections 193.141 to
193.149, including the payment in full of the principal and
interest of all bonds issued by such corporation to cover the
cost of such armory or the full repayment of any commission
funds expended for the construction of such armory, such
corporation shall transfer and convey such armory building and
the site thereof to the state of Minnesota, for military
purposes, to be administered as are other state-owned armories.
Any unencumbered balance then held by the commission
accruing to such armory shall be retained to be applied to the
future maintenance, repair, and equipment of armories.
Sec. 68. Minnesota Statutes 2000, section 197.75,
subdivision 1, is amended to read:
Subdivision 1. [BENEFITS; ELIGIBILITY.] The commissioner
of veterans affairs shall spend a biennial appropriation for
tuition of veterans, and for tuition, fees, board, room, books
and supplies of the children of veterans who have died as a
result of their service in the armed forces of the United States
as determined by the United States Veterans Administration or
other instrumentality of the United States, in the University of
Minnesota, a state university, a community college, a technical
college, or any other university of higher learning within the
state accredited by the North Central Association of Colleges
and Secondary Schools, a law college approved by the supreme
court, a nursing school approved by the state board of nursing,
or in a trade, business, or vocational school in the state
approved by the state department of children, families, and
learning, or in a theological seminary, for any course which
such veteran or child may elect. Not more than $350 $750 shall
be expended for the benefit of any individual veteran, and not
more than $350 $750 in any fiscal year shall be expended for the
benefit of any child under this section, and the need for the
benefit shall be established and determined by the commissioner
of veterans affairs. No child of any veteran shall make
application for the benefits provided in this section unless the
child resided in Minnesota for at least two years immediately
prior to the date of the application. Children of veterans
eligible for benefits according to this section shall be
admitted to state institutions of university grade free of
tuition until they receive a bachelors or equivalent degree.
Payments of benefits shall be made directly to the institution
in which the course of instruction is given or to the individual
on forms prescribed by the commissioner.
Sec. 69. Minnesota Statutes 2000, section 197.75,
subdivision 2, is amended to read:
Subd. 2. [LIMITATIONS.] The benefits in subdivision 1 are
not available to a veteran who is entitled to the same or
similar benefits under a law or regulation of the United States,
with the exceptions in paragraphs (a) and (b).
(a) except that a veteran who has been eligible for and has
used up the benefits the veteran is entitled to under the laws
of the United States is entitled to the benefits provided for by
subdivision 1.
(b) A veteran who has had less than ten years of
eligibility for educational assistance under federal law because
of the December 31, 1989, delimiting date and who has lost more
than four months of that eligibility is entitled to the benefits
provided for by subdivision 1.
Sec. 70. Minnesota Statutes 2000, section 214.09,
subdivision 3, as amended by Laws 2001, chapter 61, section 3,
is amended to read:
Subd. 3. [COMPENSATION.] (a) Members of the boards may be
compensated at the rate of $55 a day spent on board activities,
when authorized by the board, plus expenses in the same manner
and amount as authorized by the commissioner's plan adopted
under section 43A.18, subdivision 2. Members who, as a result
of time spent attending board meetings, incur child care
expenses that would not otherwise have been incurred, may be
reimbursed for those expenses upon board authorization.
(b) Members who are state employees or employees of the
political subdivisions of the state must not receive the daily
payment for activities that occur during working hours for which
they are also compensated by the state or political subdivision.
However, a state or political subdivision employee may receive
the daily payment if the employee uses vacation time or
compensatory time accumulated in accordance with a collective
bargaining agreement or compensation plan for board activity.
Members who are state employees or employees of the political
subdivisions of the state may receive the expenses provided for
in this subdivision unless the expenses are reimbursed by
another source. Members who are state employees or employees of
political subdivisions of the state may be reimbursed for child
care expenses only for time spent on board activities that are
outside their working hours.
(c) Each board must adopt internal standards prescribing
what constitutes a day spent on board activities for purposes of
making daily payments under this subdivision.
[EFFECTIVE DATE.] This section is effective July 1, 2001,
and applies to service on or after that date.
Sec. 71. [240A.13] [SOCCER FIELD DEVELOPMENT.]
Subdivision 1. [GRANTS.] The commission may make matching
grants to political subdivisions of the state to develop new
soccer fields for amateur athletics. In awarding grants, the
commission shall give priority to proposals from multiple
applicants. To the extent possible, over time, the commission
shall disperse grants equally among the state's congressional
districts.
Subd. 2. [MATCHING CRITERIA.] Each grant for soccer field
development under this section must be matched by recipient
communities or institutions in accordance with this
subdivision. A matching contribution may include an in-kind
contribution of land; access roadways and access roadway
improvements; and necessary utility services, landscaping, and
parking. The first $20,000 of a grant must be matched equally
by the recipient. The portion of a grant that is more than
$20,000 but not more than $75,000 must be matched by the
recipient at a rate double the amount of that portion of the
grant. The portion of a grant that is more than $75,000 must be
matched by the recipient at a rate of three times the amount of
that portion of the grant.
Sec. 72. Minnesota Statutes 2000, section 270A.07,
subdivision 1, is amended to read:
Subdivision 1. [NOTIFICATION REQUIREMENT.] Any claimant
agency, seeking collection of a debt through setoff against a
refund due, shall submit to the commissioner information
indicating the amount of each debt and information identifying
the debtor, as required by section 270A.04, subdivision 3.
For each setoff of a debt against a refund due, the
commissioner shall charge a fee of $10. The proceeds of fees
shall be allocated by depositing $2.55 of each $10 fee collected
into a department of revenue recapture revolving fund, and
depositing the remaining balance into the general fund. The
sums deposited into the revolving fund are appropriated to the
commissioner for the purpose of administering the Revenue
Recapture Act.
The claimant agency shall notify the commissioner when a
debt has been satisfied or reduced by at least $200 within 30
days after satisfaction or reduction.
[EFFECTIVE DATE.] This section is effective for revenue
recapture fees collected on or after July 1, 2001.
Sec. 73. Minnesota Statutes 2000, section 317A.123,
subdivision 1, is amended to read:
Subdivision 1. [STATEMENT.] A corporation may change its
registered office, designate or change its registered agent, or
state a change in the name of its registered agent, by filing
with the secretary of state a statement containing:
(1) the name of the corporation;
(2) if the address of its registered office is to be
changed, the new address of its registered office;
(3) if its registered agent is to be designated or changed,
the name of its new registered agent;
(4) if the name of its registered agent is to be changed,
the name of its registered agent as changed;
(5) a statement that the address of its registered office
and the address of the office of its registered agent, as
changed, will be identical; and
(6) a statement that the change of registered office or
registered agent was authorized by resolution approved by the
board.
The statement need not be accompanied by a filing fee if
the statement is being filed only to change the address of the
registered office.
[EFFECTIVE DATE.] This section is effective July 1, 2002.
Sec. 74. Minnesota Statutes 2000, section 317A.827,
subdivision 2, is amended to read:
Subd. 2. [REINSTATEMENT.] A corporation dissolved under
section 317A.823 may retroactively reinstate its corporate
existence by filing a single annual registration and paying a
$25 fee. Filing the annual registration with the secretary of
state:
(1) returns the corporation to active status as of the date
of the dissolution;
(2) validates contracts or other acts within the authority
of the articles, and the corporation is liable for those
contracts or acts; and
(3) restores to the corporation all assets and rights of
the corporation and its members to the extent they were held by
the corporation and its members before the dissolution occurred,
except to the extent that assets or rights were affected by acts
occurring after the dissolution or sold or otherwise distributed
after that time.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 75. Minnesota Statutes 2000, section 349.165,
subdivision 1, is amended to read:
Subdivision 1. [PREMISES PERMIT REQUIRED; APPLICATION.] A
licensed organization may not conduct lawful gambling at any
site unless it has first obtained from the board a premises
permit for the site. The board shall prescribe a form for
permit applications, and each application for a permit must be
submitted on a separate form. A The premises permit issued by
the board is valid for two years runs concurrently with the
license of the organization unless the premises permit is
suspended, revoked, or voluntarily terminated by the
organization. The board may by rule limit the number of
premises permits that may be issued to an organization.
Sec. 76. Minnesota Statutes 2000, section 349.165,
subdivision 3, is amended to read:
Subd. 3. [FEES.] (a) The board may issue four classes of
premises permits corresponding to the classes of licenses
authorized under section 349.16, subdivision 6. The fee for
each class of permit is:
(1) $400 for a class A permit;
(2) $250 for a class B permit;
(3) $200 for a class C permit; and
(4) $150 for a class D permit.
(b) If a premises permit is issued during the second year
of an organization's license, the fee for each class of permit
is:
(1) $200 for a class A permit;
(2) $125 for a class B permit;
(3) $100 for a class C permit; and
(4) $75 for a class D permit.
Sec. 77. Minnesota Statutes 2000, section 357.18,
subdivision 3, is amended to read:
Subd. 3. [SURCHARGE.] In addition to the fees imposed in
subdivision 1, a $4.50 $5 surcharge shall be collected: on each
fee charged under subdivision 1, clauses (1) and (6), and for
each abstract certificate under subdivision 1, clause (4).
Fifty cents of each surcharge shall be retained by the county to
cover its administrative costs, 50 cents shall be appropriated
to the legislative coordinating commission for the task force on
electronic real estate recording created by Laws 2000, chapter
391, and $4 shall be paid to the state treasury and credited to
the general fund.
[EFFECTIVE DATE.] This section is effective only between
August 1, 2001, and June 30, 2003.
Sec. 78. Minnesota Statutes 2000, section 403.11,
subdivision 1, is amended to read:
Subdivision 1. [EMERGENCY TELEPHONE SERVICE FEE.] (a) Each
customer of a telephone company or communications carrier that
provides service capable of originating a 911 emergency
telephone call is assessed a fee to cover the costs of ongoing
maintenance and related improvements for trunking and central
office switching equipment for minimum 911 emergency telephone
service, plus administrative and staffing costs of the
department of administration related to managing the 911
emergency telephone service program. Recurring charges by a
public utility providing telephone service for updating the
information required by section 403.07, subdivision 3, must be
paid by the commissioner of administration if the utility is
included in an approved 911 plan and the charges have been
certified and approved under subdivision 3. The commissioner of
administration shall transfer an amount equal to two cents a
month from the fee assessed under this section on cellular and
other nonwire access services to the commissioner of public
safety for the purpose of offsetting the costs, including
administrative and staffing costs, incurred by the state patrol
division of the department of public safety in handling 911
emergency calls made from cellular phones. Money remaining in
the 911 emergency telephone service account after all other
obligations are paid must not cancel and is carried forward to
subsequent years and may be appropriated from time to time to
the commissioner of administration to provide financial
assistance to counties for the improvement of local emergency
telephone services. The improvements may include providing
access to minimum 911 service for telephone service subscribers
currently without access and upgrading existing 911 service to
include automatic number identification, local location
identification, automatic location identification, and other
improvements specified in revised county 911 plans approved by
the department.
(b) The fee may not be less than eight cents nor more than
30 is 27 cents a month for each customer access line or other
basic access service, including trunk equivalents as designated
by the public utilities commission for access charge purposes
and including cellular and other nonwire access services. The
fee must be the same for all customers.
(c) The fee must be collected by each company or carrier
providing service subject to the fee. Fees are payable to and
must be submitted to the commissioner of administration monthly
before the 25th of each month following the month of collection,
except that fees may be submitted quarterly if less than $250 a
month is due, or annually if less than $25 a month is due.
Receipts must be deposited in the state treasury and credited to
a 911 emergency telephone service account in the special revenue
fund. The money in the account may only be used for 911
telephone services as provided in paragraph (a).
(d) The commissioner of administration, with the approval
of the commissioner of finance, shall establish the amount of
the fee within the limits specified and inform the companies and
carriers of the amount to be collected. Companies and carriers
must be given a minimum of 45 days' notice of fee changes.
(e) This subdivision does not apply to customers of a
telecommunications carrier as defined in section 237.01,
subdivision 6.
Sec. 79. Minnesota Statutes 2000, section 473.13, is
amended by adding a subdivision to read:
Subd. 1c. [REPORT ON CONSULTANTS.] The annual budget must
list by contract or project, expenditures for consultants and
professional, technical, and other similar services for the
preceding fiscal year and those proposed or anticipated in the
next year. The council shall consult with the state auditor and
the legislative auditor on how to coherently and effectively
communicate in the budget information on professional services
contracts, including a detailed description of the:
(1) methods the council used to obtain consultant services;
(2) criteria used by the council to award the contract;
(3) number of consultants who sought the contract;
(4) total cost of the contract;
(5) duration of the contract; and
(6) source of the funds used to pay for the contract.
Sec. 80. [473.246] [LEGISLATIVE COMMISSION ON METROPOLITAN
GOVERNMENT; REVIEW.]
The metropolitan council shall submit to the legislative
commission on metropolitan government information on the
council's tax rates and dollar amounts levied for the current
year, proposed property tax rates and levies, operating and
capital budgets, work program, capital improvement program, and
any other information requested by the commission, for review by
the legislative commission, as provided in section 3.8841.
Sec. 81. Minnesota Statutes 2000, section 517.08,
subdivision 1b, is amended to read:
Subd. 1b. [TERM OF LICENSE; FEE; PREMARITAL EDUCATION.]
(a) The court administrator shall examine upon oath the party
applying for a license relative to the legality of the
contemplated marriage. If at the expiration of a five-day
period, on being satisfied that there is no legal impediment to
it, including the restriction contained in section 259.13, the
court administrator shall issue the license, containing the full
names of the parties before and after marriage, and county and
state of residence, with the district court seal attached, and
make a record of the date of issuance. The license shall be
valid for a period of six months. In case of emergency or
extraordinary circumstances, a judge of the district court of
the county in which the application is made, may authorize the
license to be issued at any time before the expiration of the
five days. Except as provided in paragraph (b), the court
administrator shall collect from the applicant a fee of $70 for
administering the oath, issuing, recording, and filing all
papers required, and preparing and transmitting to the state
registrar of vital statistics the reports of marriage required
by this section. If the license should not be used within the
period of six months due to illness or other extenuating
circumstances, it may be surrendered to the court administrator
for cancellation, and in that case a new license shall issue
upon request of the parties of the original license without
fee. A court administrator who knowingly issues or signs a
marriage license in any manner other than as provided in this
section shall pay to the parties aggrieved an amount not to
exceed $1,000.
(b) The marriage license fee for parties who have completed
at least 12 hours of premarital education is $20. In order to
qualify for the reduced fee, the parties must submit a signed
and dated statement from the person who provided the premarital
education confirming that it was received. The premarital
education must be provided by a licensed or ordained minister or
the minister's designee, a person authorized to solemnize
marriages under section 517.18, or a person authorized to
practice marriage and family therapy under section 148B.33. The
education must include the use of a premarital inventory and the
teaching of communication and conflict management skills.
(c) The statement from the person who provided the
premarital education under paragraph (b) must be in the
following form:
"I, (name of educator), confirm that (names of both
parties) received at least 12 hours of premarital education that
included the use of a premarital inventory and the teaching of
communication and conflict management skills. I am a licensed
or ordained minister, a person authorized to solemnize marriages
under Minnesota Statutes, section 517.18, or a person licensed
to practice marriage and family therapy under Minnesota
Statutes, section 148B.33."
The names of the parties in the educator's statement must
be identical to the legal names of the parties as they appear in
the marriage license application. Notwithstanding section
138.17, the educator's statement must be retained for seven
years, after which time it may be destroyed.
(b) (d) If section 259.13 applies to the request for a
marriage license, the court administrator shall grant the
marriage license without the requested name change.
Alternatively, the court administrator may delay the granting of
the marriage license until the party with the conviction:
(1) certifies under oath that 30 days have passed since
service of the notice for a name change upon the prosecuting
authority and, if applicable, the attorney general and no
objection has been filed under section 259.13; or
(2) provides a certified copy of the court order granting
it. The parties seeking the marriage license shall have the
right to choose to have the license granted without the name
change or to delay its granting pending further action on the
name change request.
Sec. 82. Minnesota Statutes 2000, section 517.08,
subdivision 1c, as amended by Laws 2001, chapter 7, section 84,
is amended to read:
Subd. 1c. [DISPOSITION OF LICENSE FEE.] (a) Of the
marriage license fee collected pursuant to subdivision
1b, paragraph (a), $15 must be retained by the county. The
court administrator shall must pay $55 to the state treasurer to
be deposited as follows:
(1) $50 in the general fund;
(2) $3 in the special revenue fund to be appropriated to
the commissioner of children, families, and learning for
parenting time centers under section 119A.37; and
(3) $2 in the special revenue fund to be appropriated to
the commissioner of health for developing and implementing the
MN ENABL program under section 145.9255.
(b) Of the $20 fee under subdivision 1b, paragraph (b), $15
must be retained by the county. The state court administrator
must pay $5 to the state treasurer to be distributed as provided
in paragraph (a), clauses (2) and (3).
Sec. 83. Minnesota Statutes 2000, section 574.26,
subdivision 2, is amended to read:
Subd. 2. [TERMS.] Except as provided in sections 574.263
and 574.264 or if the amount of the contract is $10,000 $75,000
or less, a contract with a public body for the doing of any
public work is not valid unless the contractor gives (1) a
performance bond to the public body with whom the contractor
entered into the contract, for the use and benefit of the public
body to complete the contract according to its terms, and
conditioned on saving the public body harmless from all costs
and charges that may accrue on account of completing the
specified work, and (2) a payment bond for the use and benefit
of all persons furnishing labor and materials engaged under, or
to perform the contract, conditioned for the payment, as they
become due, of all just claims for the labor and materials.
Reasonable attorneys' fees, costs, and disbursements may be
awarded in an action to enforce claims under the act if the
action is successfully maintained or successfully appealed.
Sec. 84. Minnesota Statutes 2000, section 645.44, is
amended by adding a subdivision to read:
Subd. 15a. [MUST.] "Must" is mandatory.
Sec. 85. Laws 1997, chapter 202, article 2, section 61, as
amended by Laws 1999, chapter 250, article 1, section 106, is
amended to read:
Sec. 61. [VOLUNTARY UNPAID LEAVE OF ABSENCE.]
Appointing authorities in state government may allow each
employee to take an unpaid leave of absence for up to 160 hours
during the period ending June 30, 2001 2005. Each appointing
authority approving such a leave shall allow the employee to
continue accruing vacation and sick leave, be eligible for paid
holidays and insurance benefits, accrue seniority, and accrue
service credit in state retirement plans permitting service
credits for authorized leaves of absence as if the employee had
actually been employed during the time of the leave. If the
leave of absence is for one full pay period or longer, any
holiday pay shall be included in the first payroll warrant after
return from the leave of absence. The appointing authority
shall attempt to grant requests for unpaid leaves of absence
consistent with the need to continue efficient operation of the
agency. However, each appointing authority shall retain
discretion to grant or refuse to grant requests for leaves of
absence and to schedule and cancel leaves, subject to applicable
provisions of collective bargaining agreements and compensation
plans.
Sec. 86. Laws 1998, chapter 366, section 80, is amended to
read:
Sec. 80. [SETTLEMENT DIVISION; TRANSFER OF JUDGES.]
The office of administrative hearings shall establish a
settlement division. The workers' compensation judges at the
department of labor and industry, together with their support
staff, offices, furnishings, equipment, and supplies, are
transferred to the settlement division of the office of
administrative hearings. Minnesota Statutes, section 15.039,
applies to the transfer of employees. The settlement division
of the office of administrative hearings shall maintain offices
in either Hennepin or Ramsey county and the cities of St. Paul,
Duluth, and Detroit Lakes. The office of a judge in the
settlement division of the office of administrative hearings and
the support staff of the judge may be located in a building that
contains offices of the department of labor and industry. The
seniority of a workers' compensation judge at the office of
administrative hearings, after the transfer, shall be based on
the total length of service as a judge at either agency. For
purposes of the commissioner's plan under Minnesota Statutes,
section 43A.18, subdivision 2, all compensation judges at the
office of administrative hearings shall be considered to be in
the same employment condition, the same organizational unit and
qualified for work in either division.
Sec. 87. Laws 1999, chapter 250, article 1, section 12,
subdivision 3, as amended by Laws 2000, chapter 488, article 12,
section 1, subdivision 1, is amended to read:
Subd. 3. Office of Technology
5,499,000 2,707,000
The commissioner of administration
shall develop and submit to the chairs
of the senate governmental operations
budget division and the house state
government finance committee by January
15, 2000, a long-range plan identifying
the mission and goals of the office of
technology. The appropriation for the
second year is not available until the
plan has been approved by a law enacted
at the 2000 regular session.
Summary by Fund
General 5,071,000 2,707,000
State Government
Special Revenue 168,000 -0-
Workers'
Compensation 260,000 -0-
The amounts that may be spent from this
appropriation for each purpose are as
follows:
(a) Administrative Services
2,871,000 2,707,000
$468,000 the first year and $468,000
the second year are for ongoing costs
of the North Star II project under
Minnesota Statutes, section 16E.07.
(b) One-Stop Business Licensing
$500,000 the first year is a one-time
appropriation for the one-stop business
licensing system project under
Minnesota Statutes, section 16E.08.
The commissioner shall report on the
progress of this project to the chairs
of the legislative committees
responsible for this budget item by
January 15, 2000, and 2001. Before the
system is put into operation, the
security information technology project
of the commissioner of administration
shall perform a security audit of the
system and submit a report on the audit
to the chairs of the governmental
operations budget division of the
senate and the state government finance
committee of the house of
representatives.
(c) Small Agency Infrastructure
Summary by Fund
General 1,700,000 -0-
State Government
Special Revenue 168,000 -0-
Workers'
Compensation 260,000 -0-
This appropriation is for a one-time
transfer to eligible small agencies for
the small agency infrastructure
project. The commissioner of
administration shall determine
priorities for which projects should be
funded, except that $323,000 is for the
public utilities commission. An agency
whose strategic plan for information
technology was not approved before
April 1, 1999, may not receive money
from this appropriation. This
appropriation is available until June
30, 2003. The commissioner shall
report on the progress of this project
to the chairs of the legislative
committees responsible for this budget
item by January 15, 2000, 2001, and
2002.
[EFFECTIVE DATE.] This section is effective the day
following final enactment.
Sec. 88. [APPLICATION.]
Sections 79 and 80 apply in the counties of Anoka, Carver,
Dakota, Hennepin, Ramsey, Scott, and Washington.
Sec. 89. [INITIAL BOARD.]
The initial board of Northern Technology, Inc. consists of
the president of Pine Technical College and one member of each
of the governing bodies of Carlton, Chisago, Isanti, Kanabec,
and Pine counties, appointed by the governing bodies. Members
of the initial board must be appointed within 30 days of the
effective date of this act and must adopt bylaws within 30 days
of the appointment of the last board member appointed under this
section. Any additional board members required under the bylaws
or Minnesota Statutes, section 116T.02, subdivision 3, must take
office or be appointed within 30 days after the adoption of
bylaws under this section.
Sec. 90. [HIAWATHA AVENUE LIGHT RAIL TRANSIT COST
CALCULATION.]
(a) The office of the legislative auditor shall prepare a
complete accounting of all federal, state, and local costs
relating to the Hiawatha avenue light rail transit line. The
cost accounting must include:
(1) planning, environmental studies, and preliminary and
final design and engineering for the project;
(2) construction and other capital costs of the light rail
transit line when completed;
(3) improvements and repairs to and reconstruction of state
and local streets and highways incurred and anticipated as a
result of the project;
(4) all costs of utility relocation resulting from the
project;
(5) all costs incurred by the department of transportation
with respect to public information and communications about the
project;
(6) construction, acquisition, or lease of park-and-ride
facilities that would serve project riders, including costs of
relocating other public facilities to make room for those
park-and-ride facilities;
(7) projected costs of connecting the Hiawatha avenue light
rail transit line with commuter rail facilities;
(8) any costs necessitated by the project and included in
the project budget for the reconstruction of marked trunk
highway No. 55, to the extent not included under clause (3); and
(9) all public costs relating to the acquisition of real
property for the line and for the purchase and development of
real property adjacent to the project right-of-way.
(b) The legislative auditor shall submit an interim report
of the cost accounting to the legislature by March 1, 2002, and
shall submit a final report to the legislature by March 1, 2003.
Sec. 91. [JESSE JAMES DAYS BLEACHERS.]
Notwithstanding Minnesota Statutes, section 16B.616,
subdivisions 3 and 4, the defeat of Jesse James committee, a
nonprofit corporation located in Northfield, Minnesota, need not
provide a signed certificate of compliance with bleacher safety
standards before January 1, 2003, with respect to bleachers
erected by the committee before August 1, 1999, for use during
the defeat of Jesse James days celebration week.
Sec. 92. [PAY EQUITY STUDY.]
The commissioner of employee relations shall convene a work
group to examine the practices and progress of the local
government pay equity act. The commissioner must report the
findings of the group to the legislature by January 15, 2002.
Sec. 93. [SHALL/MUST.]
The revisor of statutes, in consultation with the directors
of house research and senate counsel and research, must report
to the house of representatives and senate rules committees and
the legislative coordinating commission by November 1, 2001, on
a proposal to change "shall" to "must" in Minnesota Statutes.
Sec. 94. [LOCATING STATE AGENCIES.]
It is the policy of the Minnesota legislature to ensure
that state government services are available to all people of
our state.
Therefore, the office of strategic and long-range planning,
in cooperation with the departments of administration and
finance, shall develop criteria for the proper location of state
agencies or parts of state agencies. The purpose of these
criteria will be to evaluate the advantages and disadvantages of
proposals to relocate and decentralize state services and
facilities.
The office shall report its recommendations to the senate
finance committee, senate capital investment committee, house
ways and means committee, and house capital investment committee
by January 15, 2002.
Sec. 95. [RATIFICATIONS.]
Subdivision 1. [UNREPRESENTED MANAGERS; MINNESOTA STATE
COLLEGES AND UNIVERSITIES.] The amendments to the plan for
administrators of the Minnesota state colleges and universities,
approved by the legislative coordinating commission subcommittee
on employee relations on July 21, 2000, are ratified.
Subd. 2. [SALARIES FOR HEADS OF STATE AGENCIES.] The
proposal to increase the salaries of certain heads of state
agencies, approved by the legislative coordinating commission
subcommittee on employee relations on July 21, 2000, is ratified.
Subd. 3. [ENGINEERS.] The arbitration award and labor
agreement between the state of Minnesota and the Minnesota
government engineers council, approved by the legislative
coordinating commission subcommittee on employee relations on
September 8, 2000, are ratified.
Subd. 4. [SALARIES FOR CERTAIN HEADS OF STATE
AGENCIES.] The proposals to increase the salaries of the
directors of the state board of investment and the teachers
retirement association, as approved by the legislative
coordinating commission subcommittee on employee relations on
September 8, 2000, are ratified.
[EFFECTIVE DATE.] This section is effective retroactively
to May 21, 2001.
Sec. 96. [REVISOR'S INSTRUCTION.]
The revisor of statutes shall renumber Minnesota Statutes,
section 16B.88, as Minnesota Statutes, section 4.50.
Sec. 97. [TRANSFERS.]
The office of citizenship and volunteer services is
transferred from the department of administration to the office
of the governor according to Minnesota Statutes, section 15.039.
Sec. 98. [WORK PLAN APPROPRIATIONS.]
(a) $650,000 is appropriated from the surcharge collected
under Minnesota Statutes, section 357.18, subdivision 3, to the
legislative coordinating commission, to be made available to the
real estate task force established in accordance with Laws 2000,
chapter 391, for the expenses of the task force in carrying out
the work plan as described in the January 15, 2001, task force
report to the legislature. This appropriation is available
until June 30, 2003, and is to be administered at the direction
of the chair of the task force, subject to the prior approval of
the task force.
(b) $500,000 is appropriated from the surcharge collected
under Minnesota Statutes, section 357.18, subdivision 3, to the
legislative coordinating commission, to be made available to the
task force for the development and implementation of pilot
electronic real estate projects in diverse counties as described
in the January 15, 2001, task force report to the legislature.
This appropriation is available until June 30, 2003.
Sec. 99. [LEGISLATIVE COORDINATING COMMISSION; DUTIES;
APPROPRIATION.]
(a) The real estate task force established under Laws 2000,
chapter 391, may contract with the legislative coordinating
commission for the provision of administrative services to, the
preparation of requests for proposal, or the disbursement of
funds for the payment of vendors, salaries, and other expenses
of the task force.
(b) $50,000 is appropriated from the surcharge collected
under Minnesota Statutes, section 357.18, subdivision 3, to the
legislative coordinating commission for the purpose of paragraph
(a).
Sec. 100. [DONATIONS.]
The real estate task force established under Laws 2000,
chapter 391, may accept donations of money or resources,
including loaned employees or other services. The donations
must be under the sole control of the task force.
Sec. 101. [LEGISLATIVE AND EXECUTIVE BRANCH ASSISTANCE.]
Whenever possible, legislative employees and agencies in
the executive branch shall assist the real estate task force
established under Laws 2000, chapter 391, in carrying out its
duties.
Sec. 102. [REPEALER.]
(a) Minnesota Statutes 2000, sections 16E.08; 129D.06; and
179A.07, subdivision 7, are repealed.
(b) Minnesota Statutes 2000, sections 16A.67; 16A.6701; and
246.18, subdivision 7, are repealed.
(c) Minnesota Statutes 2000, section 43A.18, subdivision 5,
is repealed.
[EFFECTIVE DATE.] Paragraph (b) of this section is
effective December 31, 2001. Paragraph (c) of this section is
effective the day following final enactment.
Sec. 103. [EFFECTIVE DATE.]
Unless otherwise specified, this article is effective July
1, 2001.
ARTICLE 3
VARIOUS ADMINISTRATIVE PROVISIONS
Section 1. Minnesota Statutes 2000, section 3A.03,
subdivision 2, is amended to read:
Subd. 2. [REFUND.] (1) (a) Any person former member who
has made contributions pursuant to under subdivision 1 and who
is no longer a member of the legislature is entitled to receive,
upon application to the director, a refund of all contributions
credited to the member's account with interest at an annual rate
of six percent compounded annually.
(2) (b) The refund of contributions as provided in clause
(1) terminates all rights of a former member of the legislature
or the survivors of the former member under this
chapter. Should If the former member of the legislature
again be becomes a member of the legislature after having taken
a refund as provided above in paragraph (a), the member shall
must be considered a new member. However, a new member may
reinstate the rights and credit for service forfeited,
provided if the new member repays all refunds taken plus
interest at an annual rate of 8.5 percent compounded annually.
(3) (c) No person shall may be required to apply for or
to accept a refund.
Sec. 2. Minnesota Statutes 2000, section 11A.18,
subdivision 7, is amended to read:
Subd. 7. [PARTICIPATION AND FINANCIAL REPORTING IN FUND.]
(a) Each participating public retirement fund or plan which has
transferred money to the state board for investment in the
postretirement investment fund shall have an undivided
participation in the fund. The participation on any valuation
date shall must be determined by adding to the participation on
the prior valuation date: (a) (1) funds transferred in
accordance with subdivision 6, (b); (2) the amount of required
investment income on its participation as defined in subdivision
9, clause (1)(c) paragraph (c), clause (1); and (c) (3) the
reserves for any benefit adjustment made as of the current
valuation date with the result adjusted for any mortality gains
or losses determined pursuant to under subdivision 11.
(b) The total fair market value of the postretirement fund
as of June 30 must be calculated in accordance with generally
accepted accounting principles. The fair market value share of
each fund participating in the postretirement investment fund
must be allocated by adding to the fair market value at the
beginning of the fiscal year: (1) 100 percent of the funds
transferred in accordance with subdivision 6; and (2) a pro rata
distribution of unrealized gains or losses, based on a weighted
percentage of participation at the end of each month of the
fiscal year.
Sec. 3. [13.632] [TEACHERS RETIREMENT FUND ASSOCIATION
DATA; CERTAIN CITIES.]
Subdivision 1. [BENEFICIARY AND SURVIVOR DATA.] The
following data on beneficiaries and survivors of the Minneapolis
teachers retirement fund association, the St. Paul teachers
retirement fund association, and the Duluth teachers retirement
fund association members are private data on individuals: home
address, date of birth, direct deposit number, and tax
withholding data.
Subd. 2. [LIMITS ON DISCLOSURE.] Required disclosure of
data about members, survivors, and beneficiaries is limited to
name, gross annuity or benefit amount, and type of annuity or
benefit awarded.
Sec. 4. Minnesota Statutes 2000, section 352.01,
subdivision 2a, is amended to read:
Subd. 2a. [INCLUDED EMPLOYEES.] (a) "State employee"
includes:
(1) employees of the Minnesota historical society;
(2) employees of the state horticultural society;
(3) employees of the Disabled American Veterans, Department
of Minnesota, Veterans of Foreign Wars, Department of Minnesota,
if employed before July 1, 1963;
(4) employees of the Minnesota crop improvement
association;
(5) employees of the adjutant general who are paid from
federal funds and who are not covered by any federal civilian
employees retirement system;
(6) employees of the Minnesota state colleges and
universities employed under the university or college activities
program;
(7) currently contributing employees covered by the system
who are temporarily employed by the legislature during a
legislative session or any currently contributing employee
employed for any special service as defined in subdivision 2b,
clause (8);
(8) employees of the armory building commission;
(9) employees of the legislature appointed without a limit
on the duration of their employment and persons employed or
designated by the legislature or by a legislative committee or
commission or other competent authority to conduct a special
inquiry, investigation, examination, or installation;
(10) trainees who are employed on a full-time established
training program performing the duties of the classified
position for which they will be eligible to receive immediate
appointment at the completion of the training period;
(11) employees of the Minnesota safety council;
(12) any employees on authorized leave of absence from the
transit operating division of the former metropolitan transit
commission who are employed by the labor organization which is
the exclusive bargaining agent representing employees of the
transit operating division;
(13) employees of the metropolitan council, metropolitan
parks and open space commission, metropolitan sports facilities
commission, metropolitan mosquito control commission, or
metropolitan radio board unless excluded or covered by another
public pension fund or plan under section 473.415, subdivision
3;
(14) judges of the tax court;
(15) personnel employed on June 30, 1992, by the University
of Minnesota in the management, operation, or maintenance of its
heating plant facilities, whose employment transfers to an
employer assuming operation of the heating plant facilities, so
long as the person is employed at the University of Minnesota
heating plant by that employer or by its successor organization;
and
(16) seasonal help in the classified service employed by
the department of revenue; and
(17) a person who renders teaching or other service for the
Minnesota state colleges and universities system and who also
renders service on a part-time basis for an employer with
employees covered by the general state employees retirement plan
of the Minnesota state retirement system, for all service with
the Minnesota state colleges and universities system, if the
person's nonteaching service comprises at least 50 percent of
the combined total salary received by the person as determined
by the chancellor of the Minnesota state colleges and
universities system or if the person is certified for general
state employees retirement plan coverage by the chancellor of
the Minnesota state colleges and universities system.
(b) Employees specified in paragraph (a), clause (15), are
included employees under paragraph (a) if employer and employee
contributions are made in a timely manner in the amounts
required by section 352.04. Employee contributions must be
deducted from salary. Employer contributions are the sole
obligation of the employer assuming operation of the University
of Minnesota heating plant facilities or any successor
organizations to that employer.
Sec. 5. Minnesota Statutes 2000, section 352.01,
subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] "State employee" does not
include:
(1) elective state officers;
(2) students employed by the University of Minnesota, or
the state colleges and universities, and community colleges
unless approved for coverage by the board of regents or the
board of trustees of the Minnesota state colleges and
universities, as the case may be;
(3) (2) employees who are eligible for membership in the
state teachers retirement association, except employees of the
department of children, families, and learning who have chosen
or may choose to be covered by the general state employees
retirement plan of the Minnesota state retirement system instead
of the teachers retirement association;
(4) (3) employees of the University of Minnesota who are
excluded from coverage by action of the board of regents;
(5) (4) officers and enlisted personnel in the national
guard and the naval militia who are assigned to permanent
peacetime duty and who under federal law are or are required to
be members of a federal retirement system;
(6) (5) election officers;
(7) (6) persons who are engaged in public work for the
state but who are employed by contractors when the performance
of the contract is authorized by the legislature or other
competent authority;
(8) (7) officers and employees of the senate and, or of the
house of representatives, or of a legislative committee or
commission who are temporarily employed;
(9) (8) receivers, jurors, notaries public, and court
employees who are not in the judicial branch as defined in
section 43A.02, subdivision 25, except referees and adjusters
employed by the department of labor and industry;
(10) (9) patient and inmate help in state charitable,
penal, and correctional institutions including the Minnesota
veterans home;
(11) (10) persons who are employed for professional
services where the service is incidental to their regular
professional duties and whose compensation is paid on a per diem
basis;
(12) (11) employees of the Sibley House Association;
(13) (12) the members of any state board or commission who
serve the state intermittently and are paid on a per diem basis;
the secretary, secretary-treasurer, and treasurer of those
boards if their compensation is $5,000 or less per year, or, if
they are legally prohibited from serving more than three years;
and the board of managers of the state agricultural society and
its treasurer unless the treasurer is also its full-time
secretary;
(14) (13) state troopers;
(15) (14) temporary employees of the Minnesota state fair
who are employed on or after July 1 for a period not to extend
beyond October 15 of that year; and persons who are employed at
any time by the state fair administration for special events
held on the fairgrounds;
(16) (15) emergency employees who are in the classified
service; except that if an emergency employee, within the same
pay period, becomes a provisional or probationary employee on
other than a temporary basis, the employee shall be considered a
"state employee" retroactively to the beginning of the pay
period;
(17) (16) persons who are described in section 352B.01,
subdivision 2, clauses (2) to (5);
(18) (17) temporary employees in the classified service,
and temporary employees in the unclassified service who are
appointed for a definite period of not more than six months
and who are employed less than six months in any one-year
period;
(19) (18) trainee employees, except those listed in
subdivision 2a, clause (10);
(20) (19) persons whose compensation is paid on a fee
basis;
(21) (20) state employees who are employed by the board of
trustees of the Minnesota state colleges and universities in
unclassified positions enumerated in section 43A.08, subdivision
1, clause (9);
(21) state employees who in any year have credit for 12
months service as teachers in the public schools of the state
and as teachers are members of the teachers retirement
association or a retirement system in St. Paul, Minneapolis, or
Duluth;
(22) employees of the adjutant general who are employed on
an unlimited intermittent or temporary basis in the
classified and or unclassified service for the support of army
and air national guard training facilities;
(23) chaplains and nuns who are excluded from coverage
under the federal Old Age, Survivors, Disability, and Health
Insurance Program for the performance of service as specified in
United States Code, title 42, section 410(a)(8)(A), as amended,
if no irrevocable election of coverage has been made under
section 3121(r) of the Internal Revenue Code of 1986, as amended
through December 31, 1992;
(24) examination monitors who are employed by departments,
agencies, commissions, and boards to conduct examinations
required by law;
(25) persons who are appointed to serve as members of
fact-finding commissions or adjustment panels, arbitrators, or
labor referees under chapter 179;
(26) temporary employees who are employed for limited
periods under any state or federal program for training or
rehabilitation, including persons who are employed for limited
periods from areas of economic distress except, but not
including skilled and supervisory personnel and persons having
civil service status covered by the system;
(27) full-time students who are employed by the Minnesota
historical society intermittently during part of the year and
full-time during the summer months;
(28) temporary employees, who are appointed for not more
than six months, of the metropolitan council and of any of its
statutory boards, if the board members are appointed by the
metropolitan council;
(29) persons who are employed in positions designated by
the department of employee relations as student workers;
(30) members of trades who are employed by the successor to
the metropolitan waste control commission with, who have trade
union pension plan coverage under a collective bargaining
agreement, and who are first employed after June 1, 1977;
(31) persons who are employed in subsidized on-the-job
training, work experience, or public service employment as
enrollees under the federal Comprehensive Employment and
Training Act after March 30, 1978, unless the person has as of
the later of March 30, 1978, or the date of employment
sufficient service credit in the retirement system to meet the
minimum vesting requirements for a deferred annuity, or the
employer agrees in writing on forms prescribed by the director
to make the required employer contributions, including any
employer additional contributions, on account of that person
from revenue sources other than funds provided under the federal
Comprehensive Employment and Training Act, or the person agrees
in writing on forms prescribed by the director to make the
required employer contribution in addition to the required
employee contribution;
(32) off-duty peace officers while employed by the
metropolitan council;
(33) persons who are employed as full-time police officers
by the metropolitan council and as police officers are members
of the public employees police and fire fund;
(34) persons who are employed as full-time firefighters by
the department of military affairs and as firefighters are
members of the public employees police and fire fund;
(35) foreign citizens with a work permit of less than three
years, or an H-1b/JV visa valid for less than three years of
employment, unless notice of extension is supplied which allows
them to work for three or more years as of the date the
extension is granted, in which case they are eligible for
coverage from the date extended; and
(36) persons who are employed by the board of trustees of
the Minnesota state colleges and universities and who elect to
remain members of the public employees retirement association or
the Minneapolis employees retirement fund, whichever applies,
under section 136C.75.
Sec. 6. Minnesota Statutes 2000, section 352.113,
subdivision 4, is amended to read:
Subd. 4. [MEDICAL OR PSYCHOLOGICAL EXAMINATIONS;
AUTHORIZATION FOR PAYMENT OF BENEFIT.] An applicant shall
provide medical or psychological evidence to support an
application for total and permanent disability. The director
shall have the employee examined by at least one additional
licensed chiropractor, physician, or psychologist designated by
the medical adviser. The chiropractors, physicians, or
psychologists shall make written reports to the director
concerning the employee's disability including medical opinions
as to whether the employee is permanently and totally disabled
within the meaning of section 352.01, subdivision 17. The
director shall also obtain written certification from the
employer stating whether the employment has ceased or whether
the employee is on sick leave of absence because of a disability
that will prevent further service to the employer and as a
consequence the employee is not entitled to compensation from
the employer. The medical adviser shall consider the reports of
the physicians, psychologists, and chiropractors and any other
evidence supplied by the employee or other interested parties.
If the medical adviser finds the employee totally and
permanently disabled, the adviser shall make appropriate
recommendation to the director in writing together with the date
from which the employee has been totally disabled. The director
shall then determine if the disability occurred within 180 days
of filing the application, while still in the employment of the
state, and the propriety of authorizing payment of a disability
benefit as provided in this section. A terminated employee may
apply for a disability benefit within 180 days of termination as
long as the disability occurred while in the employment of the
state. The fact that an employee is placed on leave of absence
without compensation because of disability does not bar that
employee from receiving a disability benefit. Unless payment of
a disability benefit has terminated because the employee is no
longer totally disabled, or because the employee has reached
normal retirement age as provided in this section, the
disability benefit shall cease with the last payment received by
the disabled employee or which had accrued during the lifetime
of the employee unless there is a spouse surviving; in that
event the surviving spouse is entitled to the disability benefit
for the calendar month in which the disabled employee died.
Sec. 7. Minnesota Statutes 2000, section 352.113,
subdivision 6, is amended to read:
Subd. 6. [REGULAR MEDICAL OR PSYCHOLOGICAL EXAMINATIONS.]
At least once each year during the first five years following
the allowance of a disability benefit to any employee, and at
least once in every three-year period thereafter, the director
may require any disabled employee to undergo a medical or
psychological examination. The examination must be made at the
place of residence of the employee, or at any place mutually
agreed upon, by a physician or physicians designated by the
medical adviser and engaged by the director. If any examination
indicates to the medical adviser that the employee is no longer
permanently and totally disabled, or is engaged in or can engage
in a gainful occupation, payments of the disability benefit by
the fund must be discontinued. The payments shall discontinue
as soon as the employee is reinstated to the payroll following
sick leave, but in no case shall payment be made for more than
60 days after the medical adviser finds that the employee is no
longer permanently and totally disabled.
Sec. 8. Minnesota Statutes 2000, section 352.22,
subdivision 8, is amended to read:
Subd. 8. [REFUND SPECIFICALLY LIMITED.] If a former
employee covered by the system does not apply for refund within
five years after the last deduction was taken from salary for
the retirement fund, and does not have enough service to qualify
for a deferred annuity, accumulated contributions must be
credited to and become a part of the retirement fund. If the
former employee returns to state service and becomes a state
employee covered by the system, the amount credited to the
retirement fund, if more than $2 $25, shall must be restored to
the individual account. If the amount credited to the fund is
over $2 $25 and the former employee applies for refund or an
annuity under section 352.72, the amount must be restored to the
former employee's individual account and a refund made or an
annuity paid, whichever applies.
Sec. 9. Minnesota Statutes 2000, section 352.87,
subdivision 4, is amended to read:
Subd. 4. [NON-JOB-RELATED DISABILITY BENEFITS.] An
eligible member described in subdivision 1, who is less than 55
years of age and who becomes disabled and physically or mentally
unfit to perform the duties of the position because of sickness
or injury while not engaged in covered employment, is entitled
to a disability benefit amount equivalent to an annuity computed
under subdivision 3 assuming the member has 15 years of service
qualifying under this section and waiving the minimum age
requirement. If the eligible member becomes disabled under this
subdivision with more than 15 years of service covered under
this section, the eligible member is entitled to a disability
benefit amount equivalent to an annuity computed under
subdivision 3 based on all years of service credited under this
section and waiving the minimum age requirement.
Sec. 10. Minnesota Statutes 2000, section 352.87,
subdivision 5, is amended to read:
Subd. 5. [JOB-RELATED DISABILITY BENEFITS.] An eligible
member defined in subdivision 1, who is less than 55 years of
age and who becomes disabled and physically or mentally unfit to
perform the duties of the position because of sickness or injury
while engaged in covered employment, is entitled to a disability
benefit amount equivalent to an annuity computed under
subdivision 3 assuming the member has 20 years of service
qualifying under this section and waiving the minimum age
requirement. An eligible member who becomes disabled under this
subdivision with more than 20 years of service credited under
this section is entitled to a disability benefit amount
equivalent to an annuity computed under subdivision 3 based on
all years of service credited under this section and waiving the
age requirement.
Sec. 11. Minnesota Statutes 2000, section 352.95,
subdivision 4, is amended to read:
Subd. 4. [MEDICAL OR PSYCHOLOGICAL EVIDENCE.] (a) An
applicant shall provide medical or psychological evidence to
support an application for disability benefits. The director
shall have the employee examined by at least one additional
licensed physician or psychologist designated by the medical
adviser. The physicians shall make written reports to the
director concerning the employee's disability, including medical
opinions as to whether the employee is disabled within the
meaning of this section. The director shall also obtain written
certification from the employer stating whether the employee is
on sick leave of absence because of a disability that will
prevent further service to the employer, and as a consequence
the employee is not entitled to compensation from the employer.
(b) If on considering the physicians' reports and any other
evidence supplied by the employee or others, the medical adviser
finds the employee disabled within the meaning of this section,
the advisor shall make appropriate recommendation to the
director in writing, together with the date from which the
employee has been disabled. The director shall then determine
the propriety of authorizing payment of a disability benefit as
provided in this section.
(c) Unless payment of a disability benefit has terminated
because the employee is no longer disabled, or because the
employee has reached age 62 65 or the five-year anniversary of
the effective date of the disability benefit, whichever is
later, the disability benefit shall cease with the last payment
received by the disabled employee or which had accrued during
the employee's lifetime. While disability benefits are paid,
the director has the right at reasonable times to require the
disabled employee to submit proof of the continuance of the
disability claimed. If any examination indicates to the medical
adviser that the employee is no longer disabled, the disability
payment must be discontinued upon reinstatement to state service
or within 60 days of the finding, whichever is sooner.
Sec. 12. Minnesota Statutes 2000, section 352.95,
subdivision 5, is amended to read:
Subd. 5. [RETIREMENT STATUS AT NORMAL RETIREMENT AGE.] The
disability benefit paid to a disabled correctional employee
under this section shall terminate at the end of the month in
which the employee reaches age 62 65, or the five-year
anniversary of the effective date of the disability benefit,
whichever is later. If the disabled correctional employee is
still disabled when the employee reaches age 62 65, or the
five-year anniversary of the effective date of the disability
benefit, whichever is later, the employee shall be deemed to be
a retired employee. If the employee had elected an optional
annuity under subdivision 1a, the employee shall receive an
annuity in accordance with the terms of the optional annuity
previously elected. If the employee had not elected an optional
annuity under subdivision 1a, the employee may within 90 days of
attaining age 65 or reaching the five-year anniversary of the
effective date of the disability benefit, whichever is later,
either elect to receive a normal retirement annuity computed in
the manner provided in section 352.93 or elect to receive an
optional annuity as provided in section 352.116, subdivision 3,
based on the same length of service as used in the calculation
of the disability benefit. Election of an optional annuity must
be made within 90 days before attaining age 65 or reaching the
five-year anniversary of the effective date of the disability
benefit, whichever is later. If an optional annuity is elected,
the optional annuity shall begin to accrue on the first of the
month following the month in which the employee reaches age 65
or the five-year anniversary of the effective date of the
disability benefit, whichever is later.
Sec. 13. Minnesota Statutes 2000, section 352.95,
subdivision 7, is amended to read:
Subd. 7. [RESUMPTION OF EMPLOYMENT.] If the disabled
employee resumes a gainful occupation from which earnings are
less than the salary received at the date of disability or the
salary currently paid for similar positions, or if the employee
is entitled to receive workers' compensation benefits work, the
disability benefit must be continued in an amount which when
added to current earnings and workers' compensation benefits
does not exceed the salary received at the date of disability or
the salary currently paid for similar positions, whichever is
higher, if the disability benefit in that case does not exceed
the disability benefit originally authorized and in effect rate
of the disabled employee at the date of disability as adjusted
by the same percentage increase in United States average wages
used by social security in calculating average indexed monthly
earnings for the same period.
Sec. 14. Minnesota Statutes 2000, section 352B.01,
subdivision 11, is amended to read:
Subd. 11. [AVERAGE MONTHLY SALARY.] "Average monthly
salary" means the average of the highest monthly salaries for
five years of service as a member. Average monthly salary must
be based upon all allowable service if this service is less than
five years. It does not include any lump-sum annual leave
payments and overtime payments made at the time of separation
from state service, any amounts of severance pay, or any reduced
salary paid during the period the person is entitled to workers'
compensation benefit payments for temporary disability. A
member on leave of absence receiving temporary workers'
compensation payments and a reduced salary or no salary from the
employer who is entitled to allowable service credit for the
period of absence may make payment to the fund for the
difference between salary received, if any, and the salary the
member would normally receive if not on leave of absence during
the period. The member shall pay an amount equal to the member
and employer contribution rate under section 352B.02,
subdivisions 1b and 1c, on the differential salary amount for
the period of the leave of absence. The employing department,
at its option, may pay the employer amount on behalf of the
member. Payment made under this subdivision must include
interest at the rate of 8.5 percent per year, and must be
completed within one year of the return from the leave of
absence.
Sec. 15. Minnesota Statutes 2000, section 352B.10,
subdivision 3, is amended to read:
Subd. 3. [ANNUAL AND SICK LEAVE; WORK AT LOWER PAY.] No
member shall receive any disability benefit payment when the
member has unused annual leave or sick leave or under any other
circumstances, when during the period of disability there has
been no impairment of salary. Should the member or former
member resume gainful work and earn less than the salary
received at the date of disability or the salary currently paid
for similar positions, the disability benefit must be continued
in an amount which when added to current earnings does not
exceed the salary rate received of the person at the date of
disability or the salary currently paid for similar positions,
whichever is higher. The disability benefit must not exceed the
disability benefit originally allowed as adjusted by the same
percentage increase in United States average wages used by
social security in calculating average indexed monthly earnings
for the same period.
Sec. 16. Minnesota Statutes 2000, section 352B.101, is
amended to read:
352B.101 [APPLICATION FOR DISABILITY BENEFIT.]
A member claiming a disability benefit must file a written
application for benefits in the office of the system in a form
and manner prescribed by the executive director. The member
shall provide medical or psychological evidence to support the
application. The benefit begins to accrue the day following the
start of disability or the day following the last day for which
the member was paid, whichever is later, but not earlier than
180 days before the date the application is filed with the
executive director.
Sec. 17. Minnesota Statutes 2000, section 354.05,
subdivision 2, is amended to read:
Subd. 2. [TEACHER.] (a) "Teacher" means:
(1) a person who renders service as a teacher, supervisor,
principal, superintendent, librarian, nurse, counselor, social
worker, therapist, or psychologist in the public schools of the
state located outside of the corporate limits of the cities of
the first class or in the Minnesota state colleges and
universities system, or in any charitable, penal, or
correctional institutions of a governmental subdivision, or who
is engaged in educational administration in connection with the
state public school system, including the Minnesota state
colleges and universities system, but excluding the University
of Minnesota, whether the position be a public office or an
employment, not including members or officers of any general
governing or managing board or body;
(2) an employee of the teachers retirement association
unless the employee is covered by the Minnesota state retirement
system due to prior employment by that system;
(3) a person who renders teaching service on a part-time
basis and who also renders other services for a single employing
unit. A person whose teaching service comprises at least 50
percent of the combined employment salary is a member of the
association for all services with the single employing unit. If
the person's teaching service comprises less than 50 percent of
the combined employment salary, the executive director must
determine whether all or none of the combined service is covered
by the association.; or
(4) a person who is not covered by the plans established
under chapter 352D, 354A, or 354B and who is employed by the
board of trustees of the Minnesota state colleges and
universities system in an unclassified position as:
(i) a president, vice-president, or dean;
(ii) a manager or a professional in an academic or an
academic support program other than specified in item (i);
(iii) an administrative or a service support faculty
position; or
(iv) a teacher or a research assistant.
(b) Teacher does not mean:
(1) a person who works for a school or institution as an
independent contractor as defined by the Internal Revenue
Service;
(2) a person employed in subsidized on-the-job training,
work experience or public service employment as an enrollee
under the federal Comprehensive Employment and Training Act from
and after March 30, 1978, unless the person has, as of the later
of March 30, 1978, or the date of employment, sufficient service
credit in the retirement association to meet the minimum vesting
requirements for a deferred retirement annuity, or the employer
agrees in writing on forms prescribed by the executive director
to make the required employer contributions, including any
employer additional contributions, on account of that person
from revenue sources other than funds provided under the federal
Comprehensive Training and Employment Act, or the person agrees
in writing on forms prescribed by the executive director to make
the required employer contribution in addition to the required
employee contribution;
(3) a person holding a part-time adult supplementary
technical college license who renders part-time teaching service
or a customized trainer as defined by the Minnesota state
colleges and universities system in a technical college if (i)
the service is incidental to the regular nonteaching occupation
of the person; and (ii) the applicable technical college
stipulates annually in advance that the part-time teaching
service or customized training service will not exceed 300 hours
in a fiscal year and retains the stipulation in its records; and
(iii) the part-time teaching service or customized training
service actually does not exceed 300 hours in a fiscal year; or
(4) a person exempt from licensure under section 122A.30.
Sec. 18. Minnesota Statutes 2000, section 354.52,
subdivision 4, is amended to read:
Subd. 4. [REPORTING AND REMITTANCE REQUIREMENTS.] An
employer shall remit all amounts due to the association and
furnish a statement indicating the amount due and transmitted
with any other information required by the executive director.
If an amount due is not received by the association within seven
14 calendar days of the payroll warrant, the amount accrues
interest at an annual rate of 8.5 percent compounded annually
from the due date until the amount is received by the
association. All amounts due and other employer obligations not
remitted within 60 days of notification by the association must
be certified to the commissioner of finance who shall deduct the
amount from any state aid or appropriation amount applicable to
the employing unit.
Sec. 19. Minnesota Statutes 2000, section 354A.011,
subdivision 24, is amended to read:
Subd. 24. [SALARY; COVERED SALARY.] (a) "Salary" or
"covered salary" means the entire compensation, upon which
member contributions are required and made, that is paid to a
teacher before any allowable reductions permitted under the
federal Internal Revenue Code of 1986, as amended, for employee
selected fringe benefits, tax sheltered annuities, deferred
compensation, or any combination of these items deductions for
deferred compensation, supplemental retirement plans, or other
voluntary salary reduction programs.
(b) "Salary" does not mean:
(1) lump sum annual leave payments;
(2) lump sum wellness and sick leave payments;
(3) payments in lieu of any employer-paid group insurance
coverage employer-paid amounts used by an employee toward the
cost of insurance coverage, employer-paid fringe benefits,
flexible spending accounts, cafeteria plans, health care expense
accounts, day care expenses, or any payments in lieu of any
employer-paid group insurance coverage, including the difference
between single and family rates that may be paid to a member
with single coverage, and certain amounts determined by the
executive secretary or director to be ineligible;
(4) payments for the difference between single and family
premium rates that may be paid to a member with single
coverage any form of payment made in lieu of any other
employer-paid fringe benefit or expense;
(5) employer-paid fringe benefits including, but not
limited to, flexible spending accounts, cafeteria plans, health
care expense accounts, day care expenses, or automobile
allowances and expenses any form of severance payments;
(6) workers' compensation payments;
(7) disability insurance payments, including self-insured
disability payments;
(6) (8) payments to school principals and all other
administrators for services in addition to the normal work year
contract if these additional services are performed on an
extended duty day, Saturday, Sunday, holiday, annual leave day,
sick leave day, or any other nonduty day;
(7) (9) payments under section 356.24, subdivision 1,
clause (4)(ii); and
(8) (10) payments made under section 122A.40, subdivision
12, except for payments for sick leave accumulated under the
provisions of a uniform school district policy that applies
equally to all similarly situated persons in the district.
Sec. 20. [354A.107] [PAYMENT ACCEPTANCE ALLOWED.]
The payment for the purchase of allowable service credit,
or the repayment of a prior refund, or the payment of equivalent
contributions for an eligible leave of absence, as permitted by
law, by a member of the Minneapolis teachers retirement fund
association, the St. Paul teachers retirement fund association,
or the Duluth teachers retirement fund association, may be made
with amounts transferred from a plan qualified under section
401(a), 401(k), 403(a), 403(b), or 457(b) of the federal
Internal Revenue Code of 1986, as amended from time to time, or
amounts transferred from an individual retirement account if
done solely in a manner that is eligible for treatment as a
nontaxable rollover under the applicable federal law. The
rollover must be separately accounted for as member
contributions that were not previously taxed. Before accepting
any transfers to which this section applies, the executive
secretary or director must require the member to provide written
documentation that the amounts to be transferred are eligible
for tax-free rollover and qualify for that treatment under the
federal Internal Revenue Code of 1986, as amended.
Sec. 21. [354A.108] [PAYMENT BY TEACHERS COLLECTING
WORKERS' COMPENSATION.]
(a) A member of the Duluth teachers retirement fund
association who is receiving temporary workers' compensation
payments related to the member's teaching service and who either
is receiving a reduced salary from the employer or is receiving
no salary from the employer is entitled to receive allowable
service credit for the period of time that the member is
receiving the workers' compensation payments upon making the
required payment amount.
(b) The required amount payable by the member must be
calculated first by determining the differential salary amount,
which is the difference between the salary received, if any,
during the period of time that the member is collecting workers'
compensation payments, and the salary that the member received
for an identical length period immediately before collecting the
workers' compensation payments. The member shall pay an amount
equal to the employee contribution rate under section 354A.12,
subdivision 1, multiplied by the differential salary amount.
(c) If the member makes the employee payment under this
section, the employing unit shall make an employer payment to
the Duluth teachers retirement fund association equal to the
employer contribution rate under section 354A.12, subdivision
2a, multiplied by the differential salary amount.
(d) Payments made under this subdivision are payable
without interest if paid by June 30 of the year during which the
workers' compensation payments are received by the member. If
paid after June 30, payments made under this subdivision must
include interest at the rate of 8.5 percent per year. Payment
under this section must be completed within one year of the
termination of the workers' compensation payments to the member.
Sec. 22. Minnesota Statutes 2000, section 354A.12,
subdivision 5, is amended to read:
Subd. 5. [EMPLOYEE REPORTING AND REMITTANCE REQUIREMENTS.]
(a) Each school district employing unit shall provide to the
appropriate teachers retirement fund association information the
following member data regarding all new or returning
employees on a form provided by the executive secretary or
director before the employee's first payroll date. in a format
approved by the executive secretary or director. Data changes
and the dates of those changes must be reported to the
association on an ongoing basis for the payroll cycle in which
they occur. Data on the member includes:
(1) legal name, address, date of birth, association member
number, employer-assigned employee number, and social security
number;
(2) association status, including, but not limited to,
basic, coordinated, exempt annuitant, exempt technical college
teacher, or exempt independent contractor or consultant;
(3) employment status, including, but not limited to, full
time, part time, intermittent, substitute, or part-time
mobility;
(4) employment position, including, but not limited to,
teacher, superintendent, principal, administrator, or other;
(5) employment activity, including, but not limited to,
hire, termination, resumption of employment, disability, or
death;
(6) leaves of absence; and
(7) other information as may be required by the association.
(b) Each employing unit shall provide the following data to
the appropriate association for each payroll cycle in a format
approved by the executive secretary or director:
(1) an association member number;
(2) employer-assigned employee number;
(3) social security number;
(4) amount of each salary deduction;
(5) amount of salary as defined in section 354A.011,
subdivision 24, from which each deduction was made;
(6) reason for payment;
(7) service credit;
(8) the beginning and ending dates of the payroll period
covered and the date of actual payment;
(9) fiscal year of salary earnings;
(10) total remittance amount including employee, employer,
and employer additional contributions; and
(11) other information as may be required by the
association.
(c) On or before August 1 each year, each employing unit
must report to the appropriate association giving an itemized
summary for the preceding 12 months of the total amount that was
withheld from the salaries of teachers for deductions and all
other information required by the association.
(d) An employing unit that does not comply with the
reporting requirements under this section shall pay a fine of $5
per calendar day until the association receives the required
member data.
(e) An employing unit shall remit all amounts that are due
to the association and shall furnish for each pay period an
itemized statement indicating the total amount that is due and
is transmitted with any other information required by the
association. All amounts due and other employer obligations
that are not remitted within 30 days of notification by the
association must be certified by the director or secretary to
the commissioner of finance, who shall deduct the amount from
any state aid or appropriation amount applicable to the
employing unit and shall transmit the deducted amount to the
applicable association.
Sec. 23. Minnesota Statutes 2000, section 354A.31,
subdivision 3, is amended to read:
Subd. 3. [RESUMPTION OF TEACHING AFTER COMMENCEMENT OF A
RETIREMENT ANNUITY.] (a) Any person who retired and is receiving
a coordinated program retirement annuity under the provisions of
sections 354A.31 to 354A.41 or any person receiving a basic
program retirement annuity under the governing sections in the
articles of incorporation or bylaws and who has resumed teaching
service for the school district in which the teachers retirement
fund association exists is entitled to continue to receive
retirement annuity payments, except that annuity payments must
be reduced during the calendar year immediately following the
calendar year in which the person's income from the teaching
service is in an amount greater than the annual maximum earnings
allowable for that age for the continued receipt of full benefit
amounts monthly under the federal old age, survivors, and
disability insurance program as set by the secretary of health
and human services under United States Code, title 42, section
403. The amount of the reduction must be one-third the amount
in excess of the applicable reemployment income maximum
specified in this subdivision and must be deducted from the
annuity payable for the calendar year immediately following the
calendar year in which the excess amount was earned. If the
person has not yet reached the minimum age for the receipt of
social security benefits, the maximum earnings for the person
must be equal to the annual maximum earnings allowable for the
minimum age for the receipt of social security benefits.
(b) If the person is retired for only a fractional part of
the calendar year during the initial year of retirement, the
maximum reemployment income specified in this subdivision must
be prorated for that calendar year.
(c) After a person has reached the age of 70, no
reemployment income maximum is applicable regardless of the
amount of any compensation received for teaching service for the
school district in which the teachers retirement fund
association exists.
(d) The amount of the retirement annuity reduction must be
handled or disposed of as provided in section 356.58.
(e) For the purpose of this subdivision, income from
teaching service includes: (i) all income for services
performed as a consultant or independent contractor; or income
resulting from working with the school district in any capacity;
and (ii) the greater of either the income received or an amount
based on the rate paid with respect to an administrative
position, consultant, or independent contractor in the school
district in which the teachers retirement fund association
exists and at the same level as the position occupied by the
person who resumes teaching service.
(f) On or before February 15 of each year, each applicable
employing unit shall report to the teachers retirement fund
association the amount of postretirement income as defined in
this subdivision, earned as a teacher, consultant, or
independent contractor during the previous calendar year by each
retiree of the teachers retirement fund association for teaching
service performed after retirement. The report must be in a
format approved by the executive secretary or director.
Sec. 24. Minnesota Statutes 2000, section 354A.35,
subdivision 4, is amended to read:
Subd. 4. [PAYMENT OF MINIMAL REFUND AND BENEFIT AMOUNTS.]
If a coordinated member or former coordinated member dies
without having designated a beneficiary or if the designated
beneficiary dies without there existing any other designated
beneficiary and prior to making application for the refund
credited to the deceased coordinated member or coordinated
former member, and if the amount of the refund does not
exceed $500 $1,500, the board in its discretion may, in absence
of probate proceedings, make payment 90 days after the date of
death of the coordinated member or former coordinated member to
the surviving spouse of the deceased coordinated member or
former coordinated member, or if none, to the next of kin as
determined under the laws of descent of the state. A payment
under this subdivision shall be a bar to recovery by any other
person or persons. Any retirement annuity in any amount which
has accrued at the time of the death of a coordinated retiree
may be paid by the board in its discretion using the procedure
set forth in this subdivision.
Sec. 25. [356.866] [CONVERSION OF LUMP-SUM POSTRETIREMENT
AND SUPPLEMENTAL PAYMENT TO AN INCREASED MONTHLY ANNUITY.]
Subdivision 1. [LUMP-SUM POSTRETIREMENT PAYMENT
CONVERSION.] For benefits paid after December 31, 2001, to
eligible persons under sections 356.86 and 356.865, the amount
of the most recent lump-sum benefit payable to an eligible
recipient under sections 356.86 and 356.865, must be divided by
12. The result must be added to the monthly annuity or benefit
otherwise payable to an eligible recipient, must become a
permanent part of the benefit recipient's pension, and must be
included in any pension benefit subject to future increases.
Subd. 2. [TRANSFER OF REQUIRED RESERVES TO MINNESOTA
POSTRETIREMENT INVESTMENT FUND.] Public employee retirement
funds participating in the state board of investment
postretirement investment fund shall transfer the required
reserves for the postretirement conversion under subdivision 1
to the postretirement investment fund by January 31, 2002.
Sec. 26. Minnesota Statutes 2000, section 356A.06,
subdivision 5, is amended to read:
Subd. 5. [INVESTMENT BUSINESS RECIPIENT DISCLOSURE.] The
chief administrative officer of a covered pension plan, with
respect to investments made by the plan, and the executive
director of the state board of investment, with respect to
investments of plan assets made by the board, shall annually
disclose in writing the recipients of investment business placed
with or investment commissions allocated among commercial banks,
investment bankers, brokerage organizations, or other investment
managers. The disclosure document must be prepared within 60
days after the close of the fiscal year of the plan and must be
available for public inspection during regular office hours at
the office of the plan. The disclosure document must also be
filed with the executive director of the legislative commission
on pensions and retirement within 90 days after the close of the
fiscal year of the plan. For the state board of investment and
a first class city teacher retirement fund association, a
disclosure document included as part of a regular annual report
of the board or of the first class city teacher retirement fund
association when filed with the executive director of the
legislative commission on pensions and retirement is considered
to have been filed on a timely basis.
Sec. 27. Minnesota Statutes 2000, section 490.121,
subdivision 4, is amended to read:
Subd. 4. [ALLOWABLE SERVICE.] "Allowable service" means a
whole year, or any fraction thereof any calendar month, subject
to the service credit limit in subdivision 22, served as a judge
at any time, or served as a referee in probate for all referees
in probate who were in office prior to January 1, 1974.
Sec. 28. Laws 2000, chapter 461, article 10, section 3, is
amended to read:
Sec. 3. [EFFECTIVE DATE.]
Section 1 is effective on the day following final enactment.
Section 2 is effective on the first day of the first full pay
period beginning after January 1, 2002 2003.
Sec. 29. [REPEALER.]
Minnesota Statutes 2000, section 354A.026, is repealed.
Sec. 30. [EFFECTIVE DATE.]
(a) Sections 1 to 20, and 22 to 29 are effective on July 1,
2001.
(b) Section 21 is effective on May 1, 2001.
ARTICLE 4
OPEN MEETING REQUIREMENT FOR LOCAL PUBLIC PENSION PLANS
Section 1. Minnesota Statutes 2000, section 13D.01,
subdivision 1, is amended to read:
Subdivision 1. [IN EXECUTIVE BRANCH, LOCAL GOVERNMENT.]
All meetings, including executive sessions, must be open to the
public
(a) of a state
(1) agency,
(2) board,
(3) commission, or
(4) department,
when required or permitted by law to transact public business in
a meeting; and
(b) of the governing body of a
(1) school district however organized,
(2) unorganized territory,
(3) county,
(4) statutory or home rule charter city,
(5) town, or
(6) other public body; and
(c) of any
(1) committee,
(2) subcommittee,
(3) board,
(4) department, or
(5) commission,
of a public body; and
(d) of the governing body or a committee of:
(1) a statewide public pension plan defined in section
356A.01, subdivision 24; or
(2) a local public pension plan governed by section 69.77,
sections 69.771 to 69.775, or chapter 354A, 422A, or 423B.
Sec. 2. Minnesota Statutes 2000, section 356A.08,
subdivision 1, is amended to read:
Subdivision 1. [PUBLIC MEETINGS.] A meeting of the
governing board of a covered statewide pension plan or of a
committee of the governing board of the statewide covered
pension plan is governed by chapter 13D.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective the day following final
enactment.
ARTICLE 5
POLICE STATE AID AMENDMENTS
Section 1. Minnesota Statutes 2000, section 69.011,
subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] Unless the language or
context clearly indicates that a different meaning is intended,
the following words and terms shall for the purposes of this
chapter and chapters 423, 423A, 424 and 424A have the meanings
ascribed to them:
(a) "Commissioner" means the commissioner of revenue.
(b) "Municipality" means any:
(1) a home rule charter or statutory city,;
(2) an organized town or;
(3) a park district subject to chapter 398,;
(4) the University of Minnesota, and,;
(5) for purposes of the fire state aid program only, an
American Indian tribal government entity located within a
federally recognized American Indian reservation, and,;
(6) for purposes of the police state aid program only, an
American Indian tribal government with a tribal police
department which exercises state arrest powers under section
626.90, 626.91, 626.92, or 626.93;
(7) for purposes of the police state aid program only, the
metropolitan airports commission, with respect to peace officers
covered under chapter 422A, or; and
(8) for purposes of the police state aid program only, the
department of natural resources and the department of public
safety with respect to peace officers covered under chapter 352B.
(c) "Minnesota Firetown Premium Report" means a form
prescribed by the commissioner containing space for reporting by
insurers of fire, lightning, sprinkler leakage and extended
coverage premiums received upon risks located or to be performed
in this state less return premiums and dividends.
(d) "Firetown" means the area serviced by any municipality
having a qualified fire department or a qualified incorporated
fire department having a subsidiary volunteer firefighters'
relief association.
(e) "Market value" means latest available market value of
all property in a taxing jurisdiction, whether the property is
subject to taxation, or exempt from ad valorem taxation obtained
from information which appears on abstracts filed with the
commissioner of revenue or equalized by the state board of
equalization.
(f) "Minnesota Aid to Police Premium Report" means a form
prescribed by the commissioner for reporting by each fire and
casualty insurer of all premiums received upon direct business
received by it in this state, or by its agents for it, in cash
or otherwise, during the preceding calendar year, with reference
to insurance written for insuring against the perils contained
in auto insurance coverages as reported in the Minnesota
business schedule of the annual financial statement which each
insurer is required to file with the commissioner in accordance
with the governing laws or rules less return premiums and
dividends.
(g) "Peace officer" means any person:
(1) whose primary source of income derived from wages is
from direct employment by a municipality or county as a law
enforcement officer on a full-time basis of not less than 30
hours per week;
(2) who has been employed for a minimum of six months prior
to December 31 preceding the date of the current year's
certification under subdivision 2, clause (b);
(3) who is sworn to enforce the general criminal laws of
the state and local ordinances;
(4) who is licensed by the peace officers standards and
training board and is authorized to arrest with a warrant; and
(5) who is a member of a local police relief association to
which section 69.77 applies, the state patrol retirement plan,
the public employees police and fire fund, or the Minneapolis
employees retirement fund.
(h) "Full-time equivalent number of peace officers
providing contract service" means the integral or fractional
number of peace officers which would be necessary to provide the
contract service if all peace officers providing service were
employed on a full-time basis as defined by the employing unit
and the municipality receiving the contract service.
(i) "Retirement benefits other than a service pension"
means any disbursement authorized under section 424A.05,
subdivision 3, clauses (2), (3), and (4).
(j) "Municipal clerk, municipal clerk-treasurer, or county
auditor" means the person who was elected or appointed to the
specified position or, in the absence of the person, another
person who is designated by the applicable governing body. In a
park district, the clerk is the secretary of the board of park
district commissioners. In the case of the University of
Minnesota, the clerk is that official designated by the board of
regents. For the metropolitan airports commission, the clerk is
the person designated by the commission. For the department of
natural resources or the department of public safety, the clerk
is the respective commissioner. For a tribal police department
which exercises state arrest powers under section 626.90,
626.91, 626.92, or 626.93, the clerk is the person designated by
the applicable American Indian tribal government.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
ARTICLE 6
GENERALIZED SERVICE CREDIT PURCHASES
Section 1. Minnesota Statutes 2000, section 352.01,
subdivision 11, is amended to read:
Subd. 11. [ALLOWABLE SERVICE.] "Allowable service" means:
(1) Service by an employee for which on or before July 1,
1957, the employee was entitled to allowable service credit on
the records of the system by reason of employee contributions in
the form of salary deductions, payments in lieu of salary
deductions, or in any other manner authorized by Minnesota
Statutes 1953, chapter 352, as amended by Laws 1955, chapter 239.
(2) Service by an employee for which on or before July 1,
1961, the employee chose to obtain credit for service by making
payments to the fund under Minnesota Statutes 1961, section
352.24.
(3) Except as provided in clauses (8) and (9), service by
an employee after July 1, 1957, for any calendar month in which
the employee is paid salary from which deductions are made,
deposited, and credited in the fund, including deductions made,
deposited, and credited as provided in section 352.041.
(4) Except as provided in clauses (8) and (9), service by
an employee after July 1, 1957, for any calendar month for which
payments in lieu of salary deductions are made, deposited, and
credited in the fund, as provided in section 352.27 and
Minnesota Statutes 1957, section 352.021, subdivision 4.
For purposes of clauses (3) and (4), except as provided in
clauses (8) and (9), any salary paid for a fractional part of
any calendar month, including the month of separation from state
service, is deemed the compensation for the entire calendar
month.
(5) The period of absence from their duties by employees
who are temporarily disabled because of injuries incurred in the
performance of duties and for which disability the state is
liable under the workers' compensation law until the date
authorized by the director for the commencement of payments of a
total and permanent disability benefit from the retirement fund.
(6) Service covered by a refund repaid as provided in
section 352.23 or 352D.05, subdivision 4, except service
rendered as an employee of the adjutant general for which the
person has credit with the federal civil service retirement
system.
(7) Service before July 1, 1978, by an employee of the
transit operating division of the metropolitan transit
commission or by an employee on an authorized leave of absence
from the transit operating division of the metropolitan transit
commission who is employed by the labor organization which is
the exclusive bargaining agent representing employees of the
transit operating division, which was credited by the
metropolitan transit commission-transit operating division
employees retirement fund or any of its predecessor plans or
funds as past, intermediate, future, continuous, or allowable
service as defined in the metropolitan transit
commission-transit operating division employees retirement fund
plan document in effect on December 31, 1977.
(8) Service after July 1, 1983, by an employee who is
employed on a part-time basis for less than 50 percent of full
time, for which the employee is paid salary from which
deductions are made, deposited, and credited in the fund,
including deductions made, deposited, and credited as provided
in section 352.041 or for which payments in lieu of salary
deductions are made, deposited, and credited in the fund as
provided in section 352.27 shall be credited on a fractional
basis either by pay period, monthly, or annually based on the
relationship that the percentage of salary earned bears to a
full-time salary, with any salary paid for the fractional
service credited on the basis of the rate of salary applicable
for a full-time pay period, month, or a full-time year. For
periods of part-time service that is duplicated service credit,
section 356.30, subdivision 1, clauses (i) and (j), govern.
Allowable service determined and credited on a fractional
basis shall be used in calculating the amount of benefits
payable, but service as determined on a fractional basis must
not be used in determining the length of service required for
eligibility for benefits.
(9) Any period of authorized leave of absence without pay
that does not exceed one year and for which the employee
obtained credit by payment to the fund in lieu of salary
deductions. To obtain credit, the employee shall pay an amount
equal to the employee and employer contribution rate in section
352.04, subdivisions 2 and 3, multiplied by the employee's
hourly rate of salary on the date of return from leave of
absence and by the days and months of the leave of absence
without pay for which the employee wants allowable service
credit. The employing department, at its option, may pay the
employer amount on behalf of its employees. Payments made under
this clause must include interest at an annual rate of 8.5
percent compounded annually from the date of termination of the
leave of absence to the date payment is made unless payment is
completed within one year of the return from leave of absence.
(10) A period purchased under section 356.555.
Sec. 2. Minnesota Statutes 2000, section 352B.01,
subdivision 3, is amended to read:
Subd. 3. [ALLOWABLE SERVICE.] (a) "Allowable service"
means:
(1) for members defined in subdivision 2, clause (a),
monthly service is granted for any month for which payments have
been made to the state patrol retirement fund, and
(2) for members defined in subdivision 2, clauses (b) and
(c), service for which payments have been made to the state
patrol retirement fund, service for which payments were made to
the state police officers retirement fund after June 30, 1961,
and all prior service which was credited to a member for service
on or before June 30, 1961.
(b) Allowable service also includes any period of absence
from duty by a member who, by reason of injury incurred in the
performance of duty, is temporarily disabled and for which
disability the state is liable under the workers' compensation
law, until the date authorized by the executive director for
commencement of payment of a disability benefit or return to
employment.
(c) Allowable service also includes a period purchased
under section 356.555.
Sec. 3. Minnesota Statutes 2000, section 353.01,
subdivision 16, is amended to read:
Subd. 16. [ALLOWABLE SERVICE.] (a) "Allowable service"
means service during years of actual membership in the course of
which employee contributions were made, periods covered by
payments in lieu of salary deductions under section 353.35, and
service in years during which the public employee was not a
member but for which the member later elected, while a member,
to obtain credit by making payments to the fund as permitted by
any law then in effect.
(b) "Allowable service" also means a period of authorized
leave of absence with pay from which deductions for employee
contributions are made, deposited, and credited to the fund.
(c) "Allowable service" also means a period of authorized
leave of absence without pay that does not exceed one year, and
during or for which a member obtained credit by payments to the
fund made in place of salary deductions, provided that the
payments are made in an amount or amounts based on the member's
average salary on which deductions were paid for the last six
months of public service, or for that portion of the last six
months while the member was in public service, to apply to the
period in either case immediately preceding commencement of the
leave of absence. If the employee elects to pay employee
contributions for the period of any leave of absence without
pay, or for any portion of the leave, the employee shall also,
as a condition to the exercise of the election, pay to the fund
an amount equivalent to both the required employer and
additional employer contributions for the employee. The payment
must be made within one year from the expiration of the leave of
absence or within 20 days after termination of public service
under subdivision 11a. The employer by appropriate action of
its governing body, made a part of its official records, before
the date of the first payment of the employee contribution, may
certify to the association in writing its commitment to pay the
employer and additional employer contributions from the proceeds
of a tax levy made under section 353.28. Payments under this
paragraph must include interest at an annual rate of 8.5 percent
compounded annually from the date of the termination of the
leave of absence to the date payment is made. An employee shall
return to public service and receive a minimum of three months
of allowable service to be eligible to pay employee and employer
contributions for a subsequent authorized leave of absence
without pay.
(d) "Allowable service" also means a periodic, repetitive
leave that is offered to all employees of a governmental
subdivision. The leave program may not exceed 208 hours per
annual normal work cycle as certified to the association by the
employer. A participating member obtains service credit by
making employee contributions in an amount or amounts based on
the member's average salary that would have been paid if the
leave had not been taken. The employer shall pay the employer
and additional employer contributions on behalf of the
participating member. The employee and the employer are
responsible to pay interest on their respective shares at the
rate of 8.5 percent a year, compounded annually, from the end of
the normal cycle until full payment is made. An employer shall
also make the employer and additional employer contributions,
plus 8.5 percent interest, compounded annually, on behalf of an
employee who makes employee contributions but terminates public
service. The employee contributions must be made within one
year after the end of the annual normal working cycle or within
20 days after termination of public service, whichever is
sooner. The association shall prescribe the manner and forms to
be used by a governmental subdivision in administering a
periodic, repetitive leave.
(e) "Allowable service" also means a period during which a
member is on an authorized sick leave of absence, without pay,
limited to one year. An employee who has received one year of
allowable service shall return to public service and receive a
minimum of three months of allowable service to receive
allowable service for a subsequent authorized sick leave of
absence.
(f) "Allowable service" also means an authorized temporary
layoff under subdivision 12, limited to three months allowable
service per authorized temporary layoff in one calendar year.
An employee who has received the maximum service allowed for an
authorized temporary layoff shall return to public service and
receive a minimum of three months of allowable service to
receive allowable service for a subsequent authorized temporary
layoff.
(g) Notwithstanding any law to the contrary, "allowable
service" also means a parental leave. The association shall
grant a maximum of two months service credit for a parental
leave, within six months after the birth or adoption, upon
documentation from the member's governmental subdivision or
presentation of a birth certificate or other evidence of birth
or adoption to the association.
(h) "Allowable service" also means a period during which a
member is on an authorized leave of absence to enter military
service, provided that the member returns to public service upon
discharge from military service under section 192.262 and pays
into the fund employee contributions based upon the employee's
salary at the date of return from military service. Payment
must be made within five years of the date of discharge from the
military service. The amount of these contributions must be in
accord with the contribution rates and salary limitations, if
any, in effect during the leave, plus interest at an annual rate
of 8.5 percent compounded annually from the date of return to
public service to the date payment is made. The matching
employer contribution and additional employer contribution under
section 353.27, subdivisions 3 and 3a, must be paid by the
governmental subdivision employing the member upon return to
public service if the member makes the employee contributions.
The governmental subdivision involved may appropriate money for
those payments. A member may not receive credit for a voluntary
extension of military service at the instance of the member
beyond the initial period of enlistment, induction, or call to
active duty.
(i) For calculating benefits under sections 353.30, 353.31,
353.32, and 353.33 for state officers and employees displaced by
the Community Corrections Act, chapter 401, and transferred into
county service under section 401.04, "allowable service" means
combined years of allowable service as defined in paragraphs (a)
to (i) and section 352.01, subdivision 11.
(j) For a public employee who has prior service covered by
a local police or firefighters relief association that has
consolidated with the public employees retirement association or
to which section 353.665 applies, and who has elected the type
of benefit coverage provided by the public employees police and
fire fund either under section 353A.08 following the
consolidation or under section 353.665, subdivision 4,
"applicable service" is a period of service credited by the
local police or firefighters relief association as of the
effective date of the consolidation based on law and on bylaw
provisions governing the relief association on the date of the
initiation of the consolidation procedure.
(k) "Allowable service" also means a period purchased under
section 356.555.
Sec. 4. Minnesota Statutes 2000, section 354.05,
subdivision 13, is amended to read:
Subd. 13. [ALLOWABLE SERVICE.] "Allowable service" means:
(1) Any service rendered by a teacher for which on or
before July 1, 1957, the teacher's account in the retirement
fund was credited by reason of employee contributions in the
form of salary deductions, payments in lieu of salary
deductions, or in any other manner authorized by Minnesota
Statutes 1953, sections 135.01 to 135.13, as amended by Laws
1955, chapters 361, 549, 550, 611 or
(2) Any service rendered by a teacher for which on or
before July 1, 1961, the teacher elected to obtain credit for
service by making payments to the fund pursuant to Minnesota
Statutes 1980, section 354.09 and section 354.51 or
(3) Any service rendered by a teacher after July 1, 1957,
for any calendar month when the member receives salary from
which deductions are made, deposited and credited in the fund,
or
(4) Any service rendered by a person after July 1, 1957,
for any calendar month where payments in lieu of salary
deductions are made, deposited and credited into the fund as
provided in Minnesota Statutes 1980, section 354.09, subdivision
4, and section 354.53, or
(5) Any service rendered by a teacher for which the teacher
elected to obtain credit for service by making payments to the
fund pursuant to Minnesota Statutes 1980, section 354.09,
subdivisions 1 and 4, sections 354.50, 354.51, Minnesota
Statutes 1957, section 135.41, subdivision 4, Minnesota Statutes
1971, section 354.09, subdivision 2, or Minnesota Statutes, 1973
Supplement, section 354.09, subdivision 3, or
(6) Both service during years of actual membership in the
course of which contributions were currently made and service in
years during which the teacher was not a member but for which
the teacher later elected to obtain credit by making payments to
the fund as permitted by any law then in effect, or
(7) Any service rendered where contributions were made and
no allowable service credit was established because of the
limitations contained in Minnesota Statutes 1957, section
135.09, subdivision 2, as determined by the ratio between the
amounts of money credited to the teacher's account in a fiscal
year and the maximum retirement contribution allowable for that
year, or
(8) a period purchased under section 356.555.
Sec. 5. Minnesota Statutes 2000, section 354.534,
subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A
teacher who has at least three years of allowable service credit
with the teachers retirement association is entitled to purchase
up to ten years of allowable and formula service credit for
out-of-state teaching service by making payment under section
356.55, provided the out-of-state teaching service was performed
for an educational institution established and operated by
another state, governmental subdivision of another state, or the
federal government governmental jurisdiction and the teacher is
not entitled to receive a current or deferred age and service
retirement annuity or disability benefit and has not purchased
service credit from another defined benefit public employee
pension plan for that out-of-state teaching service.
(b) For purposes of paragraph (a), "another governmental
jurisdiction" means:
(1) another state of the United States;
(2) a governmental subdivision of another state of the
United States;
(3) the federal government;
(4) a federally recognized American Indian tribe; or
(5) a country other than the United States.
Sec. 6. Minnesota Statutes 2000, section 354.536,
subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A
teacher who has at least three years of allowable service credit
with the teachers retirement association is entitled to purchase
up to ten years of allowable and formula service credit for
developmental achievement center, nonprofit community-based
corporation, private, or parochial school teaching service by
making payment under section 356.55, provided that the teacher
is not entitled to receive a current or deferred age and service
retirement annuity or disability benefit from the applicable
employer-sponsored pension plan and has not purchased service
credit from the applicable defined benefit employer-sponsored
pension plan for that service.
Sec. 7. Minnesota Statutes 2000, section 354.539, is
amended to read:
354.539 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO
PURCHASE SERVICE CREDIT.]
(a) Unless prohibited by or subject to a penalty under
federal law, a teacher who is a participant in the college
supplemental retirement plan established under chapter 354C may
utilize the teacher's supplemental plan account to purchase
service credit under sections 354.53, 354.533, 354.534, 354.535,
354.536, 354.537, and 354.538, 354.541, and 354.542 or to repay
a refund under section 354.50.
(b) At the request of a member, if determined by the
executive director to be eligible to purchase service credit,
the executive director shall notify the board of the Minnesota
state colleges and universities system of the cost of the
purchase and shall request the transfer of funds from the
member's college supplemental retirement account to the teachers
retirement association. Upon receipt of the full prior service
credit purchase payment amount, the teachers retirement
association shall grant the requested allowable and formula
service credit.
Sec. 8. [354.541] [PRIOR UNIVERSITY OF MINNESOTA TEACHING
SERVICE CREDIT PURCHASE.]
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A
teacher who has at least three years of allowable service credit
with the teachers retirement association is entitled to purchase
up to ten years of allowable and formula service credit for
University of Minnesota teaching service by making payment under
section 356.55, provided the teacher is not entitled to receive
a current or deferred age and service retirement annuity or
disability benefit and has not purchased service credit from
another defined benefit public employee pension plan for that
University of Minnesota teaching service.
Subd. 2. [APPLICATION AND DOCUMENTATION.] A teacher who
desires to purchase service credit under subdivision 1 must
apply with the executive director to make the purchase. The
application must include all necessary documentation of the
teacher's qualifications to make the purchase, signed written
permission to allow the executive director to request and
receive necessary verification of applicable facts and
eligibility requirements, and any other relevant information
that the executive director may require. Payment must be made
before the teacher's effective date of retirement.
Subd. 3. [SERVICE CREDIT GRANT.] Allowable and formula
service credit for the purchase period must be granted by the
teachers retirement association to the purchasing teacher on
receipt of the purchase payment amount.
Sec. 9. [354.542] [PRIOR TEACHING SERVICE CREDIT PURCHASE
BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT ASSOCIATION
CREDIT.]
A person in covered employment under section 354B.20,
subdivision 4, who is a participant in the individual retirement
account plan authorized by chapter 354B and who has at least
three years of allowable service credit with the teachers
retirement association may purchase service credit as provided
in sections 354.533 to 354.538 and 354.541.
Sec. 10. Minnesota Statutes 2000, section 354A.011,
subdivision 4, is amended to read:
Subd. 4. [ALLOWABLE SERVICE.] "Allowable service" means
any service rendered by a teacher during a period in which the
teacher receives salary from which employee contribution salary
deductions are made to and credited by the teachers retirement
fund association or, any service rendered by a person during any
period where assessments or payments in lieu of salary
deductions were made if authorized by any law or provision of
the association's articles of incorporation or bylaws then in
effect or pursuant to section 354A.091, 354A.092, 354A.093, or
354A.094, or service credit purchased under section 356.555.
Sec. 11. Minnesota Statutes 2000, section 354A.098,
subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] (a) A
teacher who has at least three years of allowable service credit
with one of the retirement fund associations under this chapter
and who rendered out-of-state teaching service for an
educational institution established and operated by another
state, governmental subdivision of another state, or the federal
government governmental entity specified in paragraph (b) is
entitled to purchase up to ten years of allowable service credit
for that out-of-state service by making payment under section
356.55, provided the teacher is not entitled to receive a
current or deferred age and service retirement annuity or
disability benefit and has not purchased service credit from
another defined benefit public employee pension plan for that
out-of-state teaching service. Payment must be made before the
teacher's effective date of retirement.
(b) An eligible governmental entity for purposes of
paragraph (a) is:
(1) another state of the United States;
(2) a governmental subdivision of another state of the
United States;
(3) the federal government;
(4) a federally recognized American Indian tribe; or
(5) a public education institution in a foreign country.
Sec. 12. Minnesota Statutes 2000, section 354A.101,
subdivision 1, is amended to read:
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A
teacher who has at least three years of allowable service credit
with the teachers retirement fund association is entitled to
purchase up to ten years of allowable service credit
for developmental achievement center or nonprofit
community-based corporation, private, or parochial school
teaching service by making payment under section 356.55,
provided that the teacher is not entitled to receive a current
or deferred age and service retirement annuity or disability
benefit from the applicable employer-sponsored pension plan and
has not purchased service credit from the applicable defined
benefit employer-sponsored pension plan for that service.
Sec. 13. Minnesota Statutes 2000, section 354A.106, is
amended to read:
354A.106 [USE OF COLLEGE SUPPLEMENTAL RETIREMENT FUNDS TO
PURCHASE SERVICE CREDIT.]
(a) Unless prohibited by or subject to a penalty under
federal law, a teacher who is a participant in the college
supplemental retirement plan established under chapter 354C may
utilize the teacher's supplemental plan account to purchase
service credit under sections 354A.097, 354A.098, 354A.099,
354A.101, 354A.102, 354A.103, and 354A.104, 354A.109, and
354A.1095, or to repay a refund under section 354A.38.
(b) At the request of a member, if determined by the
executive director of the applicable teachers retirement fund
association to be eligible to purchase service credit, the
executive director shall notify the board of the Minnesota state
colleges and universities system of the cost of the purchase and
shall request the transfer of funds from the member's college
supplemental retirement account to the applicable teachers
retirement fund association. Upon receipt of the full prior
service credit purchase payment amount, the applicable teachers
retirement fund association shall grant the requested allowable
and formula service credit.
Sec. 14. [354A.109] [PRIOR UNIVERSITY OF MINNESOTA
TEACHING SERVICE CREDIT PURCHASE.]
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZED.] A
teacher who has at least three years of allowable service credit
with the teachers retirement fund association is entitled to
purchase up to ten years of allowable service credit for
University of Minnesota teaching service by making payment under
section 356.55, provided the teacher is not entitled to receive
a current or deferred age and service retirement annuity or
disability benefit and has not purchased service credit from
another defined benefit public employee pension plan for that
University of Minnesota teaching service.
Subd. 2. [APPLICATION AND DOCUMENTATION.] A teacher who
desires to purchase service credit under subdivision 1 must
apply with the executive director to make the purchase. The
application must include all necessary documentation of the
teacher's qualifications to make the purchase, signed written
permission to allow the executive director to request and
receive necessary verification of applicable facts and
eligibility requirements, and any other relevant information
that the executive director may require. Payment must be made
before the teacher's effective date of retirement.
Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit
for the purchase period must be granted by the teachers
retirement association to the purchasing teacher on receipt of
the purchase payment amount.
Sec. 15. [354A.1095] [PRIOR TEACHING SERVICE CREDIT
PURCHASE BY IRAP MEMBERS WITH DEFERRED TEACHERS RETIREMENT
ASSOCIATION CREDIT.]
A teacher who is a participant in the individual retirement
account plan authorized by chapter 354B and who has at least
three years of allowable service credit with a teachers
retirement fund association may purchase service credit as
provided in sections 354A.091 to 354A.099, 354A.101 to
354A.106, and 354A.109.
Sec. 16. Minnesota Statutes 2000, section 356.55,
subdivision 7, is amended to read:
Subd. 7. [EXPIRATION OF PURCHASE PAYMENT DETERMINATION
PROCEDURE.] (a) This section expires and is repealed on July
1, 2001 2003.
(b) Authority for any public pension plan to accept a prior
service credit payment calculated in a timely fashion under this
section expires on October 1, 2001 2003.
Sec. 17. [356.555] [PARENTAL OR FAMILY LEAVE SERVICE
CREDIT PURCHASE.]
Subdivision 1. [SERVICE CREDIT PURCHASE AUTHORIZATION.] (a)
Notwithstanding any provision to the contrary of the laws
governing a plan enumerated in subdivision 4, a member of the
pension plan who has at least three years of allowable service
covered by the applicable pension plan and who was granted by
the employer a parental leave of absence as defined in paragraph
(b), or who was granted by the employer a family leave of
absence as defined in paragraph (c), or who had a parental or
family-related break in employment, as defined in paragraph (d),
for which the person did not previously receive service credit
or for which the person did not receive or purchase service
credit from another defined benefit public employee pension
plan, is entitled to purchase the actual period of the leave or
of the break in service, up to five years, of allowable service
credit in the applicable retirement plan. The purchase payment
amount is governed by section 356.55.
(b) For purposes of this section, a parental leave of
absence is a temporary period of interruption of or separation
from active employment for the purposes of handling maternity or
paternity duties that has been approved by the employing unit
and that includes the right of reinstatement to employment.
(c) For purposes of this section, a family leave of absence
is a family leave under United States Code, title 42, section
12631, as amended.
(d) For purposes of this section, a parental or
family-related break in employment is a period following a
termination of active employment primarily for the purpose of
the birth of a child, the adoption of a child, or the provision
of care to a near relative or in-law, after which the person
returned to the prior employing unit or to an employing unit
covered by the same pension plan that provided retirement
coverage immediately prior to the termination of employment.
Subd. 2. [APPLICATION AND DOCUMENTATION.] A person who
desires to purchase service credit under subdivision 1 must
apply for the service credit purchase with the chief
administrative officer of the enumerated pension plan. The
application must include all necessary documentation of the
qualifications of the person to make the purchase, signed
written permission to allow the chief administrative officer to
request and receive necessary verification of all applicable
facts and eligibility requirements, and any other relevant
information that the chief administrative officer may require.
Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit
in the applicable enumerated pension plan for the purchase
period must be granted to the purchaser upon receipt of the
purchase payment amount calculated under section 356.55.
Payment of the purchase amount must be made before the person
retires.
Subd. 4. [COVERED PENSION PLANS.] This section applies to
the following pension plans:
(1) general state employees retirement plan governed by
chapter 352;
(2) correctional state employees retirement plan governed
by chapter 352;
(3) general public employees retirement plan governed by
chapter 353;
(4) public employees police and fire plan governed by
chapter 353;
(5) teachers retirement plan governed by chapter 354;
(6) Minneapolis teachers retirement fund association
governed by chapter 354A;
(7) Saint Paul teachers retirement fund association
governed by chapter 354A;
(8) Duluth teachers retirement fund association governed by
chapter 354A;
(9) Minneapolis employees retirement plan governed by
chapter 422A;
(10) Minneapolis police relief association governed by
chapter 423B; and
(11) Minneapolis fire department relief association
governed by sections 69.25 to 69.53 and augmented by Laws 1959,
chapters 213, 491, and 568, and other special local legislation.
Sec. 18. Minnesota Statutes 2000, section 422A.155, is
amended to read:
422A.155 [DETERMINATION OF SERVICE CREDIT.]
(a) Notwithstanding the provisions of section 422A.15,
subdivision 1, no employee of the contributing class of the
Minneapolis employees retirement fund shall be entitled to
receive a year of service credit during the employee's final
year of service unless the employee is employed and has received
compensation from the city of Minneapolis or other applicable
employing unit during each of the calendar months making up the
year for which the employee would usually be employed. Any
employee of the contributing class who is employed and receives
compensation in fewer than the usual number of calendar months
during the final year of service shall receive credit for that
portion of a year that the employee's completed months of
employment and receipt of compensation bears to the usual number
of months which the employee would usually be employed.
(b) Notwithstanding any provision of this chapter to the
contrary, service credit also means a period purchased under
section 356.555.
Sec. 19. Minnesota Statutes 2000, section 423B.01, is
amended by adding a subdivision to read:
Subd. 4a. [ALLOWABLE SERVICE CREDIT.] "Allowable service
credit" means:
(1) service rendered as an active member;
(2) service as an elected public official under section
423B.03;
(3) military service credited under section 423B.09,
subdivision 3; and
(4) a period of service purchased under section 356.555.
Sec. 20. [MINNEAPOLIS FIRE DEPARTMENT RELIEF ASSOCIATION;
PARENTAL LEAVE PURCHASE.]
Notwithstanding any provision of Minnesota Statutes,
sections 69.25 to 69.53; Laws 1959, chapters 213, 491, and 568;
or any other special local law governing the Minneapolis fire
department relief association to the contrary, service credit
for the purposes of calculating service pensions, disability
benefits, or survivor benefits includes a period purchased under
Minnesota Statutes, section 356.555.
Sec. 21. [EXPIRATION DATE.]
(a) The amendments in sections 1, 2, 3, 4, 10, 12, 16, 17,
18, 19, and 20 expire May 16, 2003.
(b) Sections 9 and 15 expire May 16, 2002.
Sec. 22. [EFFECTIVE DATE.]
(a) Sections 6 and 9 are effective the day following final
enactment.
(b) Sections 1 to 5, 7, 8, and 10 to 21 are effective July
1, 2001.
ARTICLE 7
POSTRETIREMENT HEALTH CARE INSURANCE COVERAGE
Section 1. [352.98] [POSTRETIREMENT HEALTH CARE SAVINGS
PLAN.]
Subdivision 1. [PLAN CREATED.] The Minnesota state
retirement system shall establish a plan or plans, known as
postretirement health care savings plans, through which public
employers and employees may save to cover postretirement health
care costs. The Minnesota state retirement system shall make
available one or more trusts, including a governmental trust or
governmental trusts, authorized under the Internal Revenue Code
to be eligible for tax-preferred or tax-free treatment through
which employers and employees can save to cover postretirement
health care costs.
Subd. 2. [CONTRACTING AUTHORIZED.] The Minnesota state
retirement system is authorized to administer the plan and to
contract with public and private entities to provide investment
services, recordkeeping, benefit payments, and other functions
necessary for the administration of the plan. If allowed by the
Minnesota state board of investment, the Minnesota state board
of investment supplemental investment funds may be offered as
investment options under the postretirement savings plan or
plans.
Subd. 3. [CONTRIBUTIONS.] (a) Contributions to the plan
shall be determined through a personnel policy or in a
collective bargaining agreement of a public employer with the
exclusive representative of the covered employees in an
appropriate unit. The Minnesota state retirement system may
offer different types of trusts permitted under the Internal
Revenue Code to best meet the needs of different employee units.
(b) Contributions to the plan by or on behalf of the
employee shall be held in trust for reimbursement of employee
and dependent health-related expenses following retirement from
public employment. The Minnesota state retirement system shall
maintain a separate account of the contributions made by or on
behalf of each participant and the earnings thereon. The
Minnesota state retirement system shall make available a limited
range of investment options, and each employee may direct the
investment of the accumulations in the employee's account among
the investment options made available by the Minnesota state
retirement system. At the request of a participating employer
and employee group, the Minnesota state retirement system may
determine how the assets of the affected employer and employee
group should be invested.
(c) This section does not obligate a public employer to
meet and negotiate in good faith with the exclusive bargaining
representative of any public employee group regarding an
employer contribution to a postretirement health care savings
plan authorized by this section and section 356.24, subdivision
1, clause (7). It is not the intent of the legislature to
authorize the state to incur new funding obligations for the
costs of retiree health care or the costs of administering
retiree health care plans or accounts.
Subd. 4. [REIMBURSEMENT FOR HEALTH-RELATED
EXPENSES.] Following termination of public service, the
Minnesota state retirement system shall reimburse employees at
least quarterly for submitted health-related expenses, until the
employee exhausts the accumulation in the employee's account.
If an employee dies prior to exhausting the employee's account
balance, the employee's spouse or dependents shall be eligible
to be reimbursed for health care expenses from the account until
the account balance is exhausted. If an account balance remains
after the death of a participant and all of the participant's
legal dependents, the remainder of the account shall be paid to
the employee's beneficiaries or, if none, to the employee's
estate.
Subd. 5. [FEES.] The Minnesota state retirement plan is
authorized to charge uniform fees to participants to cover the
ongoing cost of operating the plan. Any fees not needed shall
revert to participant accounts or be used to reduce plan fees
the following year. The Minnesota state retirement system is
authorized to charge participating employers a fee, not to
exceed one-sixth of the federal insurance contribution act
savings realized by the employer as a result of participating in
the plan, until the initial costs of establishing the plan or
plans authorized by this section are recovered, or $75,000,
whichever is less.
Subd. 6. [ADVISORY COMMITTEE.] (a) The Minnesota state
retirement system shall establish a participant advisory
committee for the plan, made up of one representative appointed
by each employee unit participating in the plan. Each
participating unit shall be responsible for the expenses of its
own representative.
(b) The advisory committee shall meet at least twice per
year and shall be consulted on plan offerings and vendor
selection. By October 1 of each year, the Minnesota state
retirement system shall give the advisory committee a statement
of fees collected and the use of the fees.
Subd. 7. [CONTRACTING WITH PRIVATE ENTITIES.] Nothing in
this section shall prohibit employers from contracting with
private entities to provide for postretirement health care
reimbursement plans.
Sec. 2. Minnesota Statutes 2000, section 356.24,
subdivision 1, is amended to read:
Subdivision 1. [RESTRICTION; EXCEPTIONS.] 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;
(3) to the individual retirement account plan established
by chapter 354B;
(4) to a plan that provides solely for severance pay under
section 465.72 to a retiring or terminating employee;
(5) for employees other than personnel employed by the
state university board or the community college board and
covered by the board of trustees of the Minnesota state colleges
and universities supplemental retirement plan under chapter
354C, if provided for in a personnel policy of the public
employer or in the collective bargaining agreement between the
public employer and 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;
(i) to the state of Minnesota deferred compensation plan
under section 352.96; or
(ii) in payment of the applicable portion of the
contribution made to any investment eligible under section
403(b) of the Internal Revenue Code, if the employing unit has
complied with any applicable pension plan provisions of the
Internal Revenue Code with respect to the tax-sheltered annuity
program during the preceding calendar year; or
(6) for personnel employed by the state university board or
the community college board and not covered by clause (5), to
the supplemental retirement plan under chapter 354C, 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
$2,700 a year for each employee;
(7) to a supplemental plan or to a governmental trust to
save for postretirement health care expenses qualified for
tax-preferred treatment under the Internal Revenue Code, if
provided for in a personnel policy or in the collective
bargaining agreement of a public employer with the exclusive
representative of the covered employees in an appropriate unit;
or
(8) to the laborer's national industrial pension fund for
the employees of a governmental subdivision who are covered by a
collective bargaining agreement that provides for coverage by
that fund and that sets forth a fund contribution rate, but not
to exceed an employer contribution of $2,000 per year per
employee.
Sec. 3. [EFFECTIVE DATE.]
Sections 1 and 2 are effective July 1, 2001.
ARTICLE 8
STATE PATROL RETIREMENT PLAN MEMBERSHIP EXPANSION
Section 1. Minnesota Statutes 2000, section 352.01,
subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] "State employee" does not
include:
(1) elective state officers;
(2) students employed by the University of Minnesota, the
state universities, and community colleges unless approved for
coverage by the board of regents or the board of trustees of the
Minnesota state colleges and universities, as the case may be;
(3) employees who are eligible for membership in the state
teachers retirement association except employees of the
department of children, families, and learning who have chosen
or may choose to be covered by the Minnesota state retirement
system instead of the teachers retirement association;
(4) employees of the University of Minnesota who are
excluded from coverage by action of the board of regents;
(5) officers and enlisted personnel in the national guard
and the naval militia who are assigned to permanent peacetime
duty and who under federal law are or are required to be members
of a federal retirement system;
(6) election officers;
(7) persons engaged in public work for the state but
employed by contractors when the performance of the contract is
authorized by the legislature or other competent authority;
(8) officers and employees of the senate and house of
representatives or a legislative committee or commission who are
temporarily employed;
(9) receivers, jurors, notaries public, and court employees
who are not in the judicial branch as defined in section 43A.02,
subdivision 25, except referees and adjusters employed by the
department of labor and industry;
(10) patient and inmate help in state charitable, penal,
and correctional institutions including the Minnesota veterans
home;
(11) persons employed for professional services where the
service is incidental to regular professional duties and whose
compensation is paid on a per diem basis;
(12) employees of the Sibley House Association;
(13) the members of any state board or commission who serve
the state intermittently and are paid on a per diem basis; the
secretary, secretary-treasurer, and treasurer of those boards if
their compensation is $5,000 or less per year, or, if they are
legally prohibited from serving more than three years; and the
board of managers of the state agricultural society and its
treasurer unless the treasurer is also its full-time secretary;
(14) state troopers;
(15) temporary employees of the Minnesota state fair
employed on or after July 1 for a period not to extend beyond
October 15 of that year; and persons employed at any time by the
state fair administration for special events held on the
fairgrounds;
(16) emergency employees in the classified service; except
that if an emergency employee, within the same pay period,
becomes a provisional or probationary employee on other than a
temporary basis, the employee shall be considered a "state
employee" retroactively to the beginning of the pay period;
(17) persons described in section 352B.01, subdivision 2,
clauses (2) to (5) (6);
(18) temporary employees in the classified service, and
temporary employees in the unclassified service appointed for a
definite period of not more than six months and employed less
than six months in any one-year period;
(19) trainee employees, except those listed in subdivision
2a, clause (10);
(20) persons whose compensation is paid on a fee basis;
(21) state employees who in any year have credit for 12
months service as teachers in the public schools of the state
and as teachers are members of the teachers retirement
association or a retirement system in St. Paul, Minneapolis, or
Duluth;
(22) employees of the adjutant general employed on an
unlimited intermittent or temporary basis in the classified and
unclassified service for the support of army and air national
guard training facilities;
(23) chaplains and nuns who are excluded from coverage
under the federal Old Age, Survivors, Disability, and Health
Insurance Program for the performance of service as specified in
United States Code, title 42, section 410(a)(8)(A), as amended,
if no irrevocable election of coverage has been made under
section 3121(r) of the Internal Revenue Code of 1986, as amended
through December 31, 1992;
(24) examination monitors employed by departments,
agencies, commissions, and boards to conduct examinations
required by law;
(25) persons appointed to serve as members of fact-finding
commissions or adjustment panels, arbitrators, or labor referees
under chapter 179;
(26) temporary employees employed for limited periods under
any state or federal program for training or rehabilitation
including persons employed for limited periods from areas of
economic distress except skilled and supervisory personnel and
persons having civil service status covered by the system;
(27) full-time students employed by the Minnesota
historical society intermittently during part of the year and
full-time during the summer months;
(28) temporary employees, appointed for not more than six
months, of the metropolitan council and of any of its statutory
boards, if the board members are appointed by the metropolitan
council;
(29) persons employed in positions designated by the
department of employee relations as student workers;
(30) members of trades employed by the successor to the
metropolitan waste control commission with trade union pension
plan coverage under a collective bargaining agreement first
employed after June 1, 1977;
(31) persons employed in subsidized on-the-job training,
work experience, or public service employment as enrollees under
the federal Comprehensive Employment and Training Act after
March 30, 1978, unless the person has as of the later of March
30, 1978, or the date of employment sufficient service credit in
the retirement system to meet the minimum vesting requirements
for a deferred annuity, or the employer agrees in writing on
forms prescribed by the director to make the required employer
contributions, including any employer additional contributions,
on account of that person from revenue sources other than funds
provided under the federal Comprehensive Employment and Training
Act, or the person agrees in writing on forms prescribed by the
director to make the required employer contribution in addition
to the required employee contribution;
(32) off-duty peace officers while employed by the
metropolitan council;
(33) persons who are employed as full-time police officers
by the metropolitan council and as police officers are members
of the public employees police and fire fund;
(34) persons who are employed as full-time firefighters by
the department of military affairs and as firefighters are
members of the public employees police and fire fund;
(35) foreign citizens with a work permit of less than three
years, or an H-1b/JV visa valid for less than three years of
employment, unless notice of extension is supplied which allows
them to work for three or more years as of the date the
extension is granted, in which case they are eligible for
coverage from the date extended; and
(36) persons who are employed by the board of trustees of
the Minnesota state colleges and universities and who elect to
remain members of the public employees retirement association or
the Minneapolis employees retirement fund, whichever applies,
under section 136C.75.
Sec. 2. Minnesota Statutes 2000, section 352B.01,
subdivision 2, is amended to read:
Subd. 2. [MEMBER.] "Member" means:
(a) persons referred to and (1) a state patrol member
currently employed after June 30, 1943, under Laws 1929, chapter
355, as amended or supplemented, currently employed section
299D.03 by the state, who is a peace officer under section
626.84, and whose salaries salary or compensation is paid out of
state funds;
(b) (2) a conservation officer employed under section
97A.201, currently employed by the state, whose salary or
compensation is paid out of state funds;
(c) (3) a crime bureau officer who was employed by the
crime bureau and was a member of the highway patrolmen's
retirement fund on July 1, 1978, whether or not that person has
the power of arrest by warrant after that date, or who is
employed as police personnel, with powers of arrest by warrant
under section 299C.04, and who is currently employed by the
state, and whose salary or compensation is paid out of state
funds;
(d) (4) a person who is employed by the state in the
department of public safety in a data processing management
position with salary or compensation paid from state funds, who
was a crime bureau officer covered by the state patrol
retirement plan on August 15, 1987, and who was initially hired
in the data processing management position within the department
during September 1987, or January 1988, with membership
continuing for the duration of the person's employment in that
position, whether or not the person has the power of arrest by
warrant after August 15, 1987; and
(e) (5) a public safety employees employee defined as a
peace officers officer in section 626.84, subdivision 1,
paragraph (c), and employed with the division of alcohol and
gambling enforcement under section 299L.01; and
(6) a fugitive apprehension unit officer after October 31,
2000, employed by the office of special investigations of the
department of corrections who is a peace officer under section
626.84.
Sec. 3. [DISPOSITION OF CERTAIN CONTRIBUTIONS.]
(a) The employee contributions for the period November 1,
2000, to the effective date of this section for a person
described in Minnesota Statutes, section 352B.01, subdivision 2,
clause (6), must be transferred, with 8.5 percent per annum
interest for the period from the date of the contribution to the
date of transfer, from the general state employees retirement
plan of the Minnesota state retirement system to the state
patrol retirement fund.
(b) The employer contributions associated with the employee
contributions governed by paragraph (a) also must be transferred
for the period from the date of the contribution to the date of
transfer, with 8.5 percent per annum interest, from the general
state employees retirement plan of the Minnesota state
retirement system to the state patrol retirement fund.
(c) A person described in Minnesota Statutes, section
352B.01, subdivision 2, clause (6), must pay, by additional
payroll deduction, to the state patrol retirement fund an amount
equal to the difference between the transferred employee
contributions and interest and the full member contribution
under Minnesota Statutes, section 352B.02, subdivision 1a, plus
8.5 percent per annum interest on the balance from March 1,
2001, to the date the additional payment is complete. The
additional payment must be completed by December 31, 2001, or by
the date of retirement, whichever is earlier.
(d) The department of corrections, for each person
described in Minnesota Statutes, section 352B.01, subdivision 2,
clause (6), must pay, in a lump sum on July 1, 2001, to the
state patrol retirement fund an amount equal to the difference
between the transferred employer contributions and interest and
the full employer contribution under Minnesota Statutes, section
352B.02, subdivision 1c, plus 8.5 percent per annum interest on
the amount from March 1, 2001, to July 1, 2001.
Sec. 4. [EFFECTIVE DATE.]
Sections 1 and 2 are effective retroactively to November 1,
2000. Section 3 is effective the day following final enactment.
ARTICLE 9
PRIVATIZED PUBLIC EMPLOYEE DISABILITY COVERAGE
Section 1. [352F.051] [CONTINUATION OF DISABILITY
COVERAGE.]
Subdivision 1. [ELIGIBILITY.] A terminated hospital
employee who is totally and permanently disabled under section
352.01, subdivision 17, and who had a medically documented
preexisting condition of the disability before January 1, 1997,
may apply under Minnesota Statutes 1996, section 352.113,
subdivision 1, for a disability benefit.
Subd. 2. [CALCULATION OF BENEFITS.] A person qualifying
under subdivision 1 is entitled to receive a disability benefit
calculated under Minnesota Statutes 1996, section 352.113,
subdivision 3. The disability benefit must be augmented under
section 352.72, subdivision 2, from January 1, 1997, to the date
on which the disability benefit begins to accrue.
Subd. 3. [APPLICABILITY OF GENERAL LAW.] Except as
otherwise provided, section 352.113 applies to a person who
qualifies for disability under subdivision 1.
Sec. 2. [353F.051] [CONTINUATION OF DISABILITY COVERAGE.]
Subdivision 1. [ELIGIBILITY.] A terminated medical
facility or other public employing unit employee who is totally
and permanently disabled under Minnesota Statutes 1998, section
353.01, subdivision 19, and who had a medically documented
preexisting condition of the disability before the termination
of coverage, may apply for a disability benefit.
Subd. 2. [CALCULATION OF BENEFITS.] A person qualifying
under subdivision 1 is entitled to receive a disability benefit
calculated under Minnesota Statutes 1998, section 353.33,
subdivision 3. The disability benefit must be augmented under
Minnesota Statutes 1998, section 353.71, subdivision 2, from the
date of termination to the date the disability benefit begins to
accrue.
Subd. 3. [APPLICABILITY OF GENERAL LAW.] Except as
otherwise provided, Minnesota Statutes 1998, section 353.33,
applies to a person who qualifies for disability under
subdivision 1.
Sec. 3. [EFFECTIVE DATE.]
(a) Sections 1 and 2 are effective the day following final
enactment.
(b) A disability benefit under section 1 is payable
retroactively to March 1, 2000, or to the first of the month
next following the date on which the eligible person attempted
to apply for a disability benefit from the general state
employees retirement plan of the Minnesota state retirement
system, whichever is later.
ARTICLE 10
PERA-GENERAL MEMBERSHIP INCLUSIONS
Section 1. Minnesota Statutes 2000, section 353.01,
subdivision 2a, is amended to read:
Subd. 2a. [INCLUDED EMPLOYEES.] Public employees whose
salary from one governmental subdivision exceeds $425 in any
month shall participate as members of the association. If the
salary of an employee is less than $425 in a subsequent month,
the employee retains membership eligibility. The following
persons are considered public employees:
(1) employees whose annual salary from one governmental
subdivision exceeds a stipulation prepared in advance, in
writing, to be not more than $5,100 per calendar year or per
school year for school employees for employment expected to be
of a full year's duration or more than the prorated portion of
$5,100 per employment period expected to be of less than a full
year's duration. If compensation from one governmental
subdivision to an employee under this clause exceeds $5,100 per
calendar year or school year after being stipulated in advance
not to exceed that amount, the stipulation is no longer valid
and contributions must be made on behalf of the employee under
section 353.27, subdivision 12, from the month in which the
employee's salary first exceeded $425;
(2) employees whose total salary from concurrent
nontemporary positions in one governmental subdivision exceeds
$425 in any month;
(3) elected officers for service to which they were elected
by the public-at-large, or persons appointed to fill a vacancy
in an elective office, who elect to participate by filing an
application for membership, but not for service on a joint or
regional board that is a governmental subdivision under
subdivision 6, paragraph (a), unless the salary earned for that
service exceeds $425 in any month. The option to become a
member, once exercised, may not be withdrawn during the
incumbency of the person in office;
(4) members who are appointed by the governor to be a state
department head and elect not to be covered by the Minnesota
state retirement system under section 352.021;
(5) employees of elected officers;
(6) persons who elect to remain members under section
480.181, subdivision 2;
(7) employees of a school district who receive separate
salaries for driving their own buses;
(8) employees of the Minnesota association of townships
when the board of the association, at its option, certifies to
the executive director that its employees are to be included for
purposes of retirement coverage, in which case coverage of all
employees of the association is permanent;
(9) employees of a county historical society who are county
employees;
(10) employees of a county historical society located in
the county whom the county, at its option, certifies to the
executive director to be county employees for purposes of
retirement coverage under this chapter, which status must be
accorded to all similarly situated county historical society
employees and, once established, must continue as long as a
person is an employee of the county historical society and is
not excluded under subdivision 2b; and
(11) employees who became members before July 1, 1988,
based on the total salary of positions held in more than one
governmental subdivision; and
(12) full-time employees of the Dakota county agricultural
society.
Sec. 2. Minnesota Statutes 2000, section 353.01,
subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] The following public
employees shall not participate as members of the association
with retirement coverage by the public employees retirement plan
or the public employees police and fire retirement plan:
(1) elected public officers, or persons appointed to fill a
vacancy in an elective office, who do not elect to participate
in the association by filing an application for membership;
(2) election officers;
(3) patient and inmate personnel who perform services in
charitable, penal, or correctional institutions of a
governmental subdivision;
(4) employees who are hired for a temporary position under
subdivision 12a, and employees who resign from a nontemporary
position and accept a temporary position within 30 days in the
same governmental subdivision, but not those employees who are
hired for an unlimited period but are serving a probationary
period. If the period of employment extends beyond six
consecutive months and the employee earns more than $425 from
one governmental subdivision in any one calendar month, the
department head shall report the employee for membership and
require employee deductions be made on behalf of the employee
under section 353.27, subdivision 4.
Membership eligibility of an employee who resigns or is
dismissed from a temporary position and within 30 days accepts
another temporary position in the same governmental subdivision
is determined on the total length of employment rather than on
each separate position. Membership eligibility of an employee
who holds concurrent temporary and nontemporary positions in one
governmental subdivision is determined by the length of
employment and salary of each separate position;
(5) employees whose actual salary from one governmental
subdivision does not exceed $425 per month, or whose annual
salary from one governmental subdivision does not exceed a
stipulation prepared in advance, in writing, that the salary
must not exceed $5,100 per calendar year or per school year for
school employees for employment expected to be of a full year's
duration or more than the prorated portion of $5,100 per
employment period for employment expected to be of less than a
full year's duration;
(6) employees who are employed by reason of work emergency
caused by fire, flood, storm, or similar disaster;
(7) employees who by virtue of their employment in one
governmental subdivision are required by law to be a member of
and to contribute to any of the plans or funds administered by
the Minnesota state retirement system, the teachers retirement
association, the Duluth teachers retirement fund association,
the Minneapolis teachers retirement association, the St. Paul
teachers retirement fund association, the Minneapolis employees
retirement fund, or any police or firefighters relief
association governed by section 69.77 that has not consolidated
with the public employees retirement association, or any local
police or firefighters consolidation account but who have not
elected the type of benefit coverage provided by the public
employees police and fire fund under sections 353A.01 to
353A.10, or any persons covered by section 353.665, subdivision
4, 5, or 6, who have not elected public employees police and
fire plan benefit coverage. This clause must not be construed
to prevent a person from being a member of and contributing to
the public employees retirement association and also belonging
to and contributing to another public pension fund for other
service occurring during the same period of time. A person who
meets the definition of "public employee" in subdivision 2 by
virtue of other service occurring during the same period of time
becomes a member of the association unless contributions are
made to another public retirement fund on the salary based on
the other service or to the teachers retirement association by a
teacher as defined in section 354.05, subdivision 2;
(8) persons who are excluded from coverage under the
federal Old Age, Survivors, Disability, and Health Insurance
Program for the performance of service as specified in United
States Code, title 42, section 410(a)(8)(A), as amended through
January 1, 1987, if no irrevocable election of coverage has been
made under section 3121(r) of the Internal Revenue Code of 1954,
as amended;
(9) full-time students who are enrolled and are regularly
attending classes at an accredited school, college, or
university and who are part-time employees as defined by a
governmental subdivision;
(10) resident physicians, medical interns, and pharmacist
residents and pharmacist interns who are serving in a degree or
residency program in public hospitals;
(11) students who are serving in an internship or residency
program sponsored by an accredited educational institution;
(12) persons who hold a part-time adult supplementary
technical college license who render part-time teaching service
in a technical college;
(13) foreign citizens working for a governmental
subdivision with a work permit of less than three years, or an
H-1b visa valid for less than three years of employment. Upon
notice to the association that the work permit or visa extends
beyond the three-year period, the foreign citizens are eligible
for membership from the date of the extension;
(14) public hospital employees who elected not to
participate as members of the association before 1972 and who
did not elect to participate from July 1, 1988, to October 1,
1988;
(15) except as provided in section 353.86, volunteer
ambulance service personnel, as defined in subdivision 35, but
persons who serve as volunteer ambulance service personnel may
still qualify as public employees under subdivision 2 and may be
members of the public employees retirement association and
participants in the public employees retirement fund or the
public employees police and fire fund on the basis of
compensation received from public employment service other than
service as volunteer ambulance service personnel;
(16) except as provided in section 353.87, volunteer
firefighters, as defined in subdivision 36, engaging in
activities undertaken as part of volunteer firefighter duties;
provided that a person who is a volunteer firefighter may still
qualify as a public employee under subdivision 2 and may be a
member of the public employees retirement association and a
participant in the public employees retirement fund or the
public employees police and fire fund on the basis of
compensation received from public employment activities other
than those as a volunteer firefighter;
(17) pipefitters and associated trades personnel employed
by independent school district No. 625, St. Paul, with
coverage under a collective bargaining agreement by the
pipefitters local 455 pension plan under a collective bargaining
agreement who were either first employed after May 1, 1997, or,
if first employed before May 2, 1997, elected to be excluded
under Laws 1997, chapter 241, article 2, section 12; and
(18) electrical workers, plumbers, carpenters, and
associated trades personnel employed by independent school
district No. 625, St. Paul, or the city of St. Paul, with
coverage under a collective bargaining agreement by the
electrical workers local 110 pension plan, the united
association plumbers local 34 pension plan, or the carpenters
local 87 pension plan under a collective bargaining agreement
who were either first employed after May 1, 2000, or, if first
employed before May 2, 2000, elected to be excluded under Laws
2000, chapter 461, article 7, section 5.;
(19) bricklayers, allied craftworkers, cement masons,
glaziers, glassworkers, painters, allied tradesworkers, and
plasterers employed by the city of St. Paul or independent
school district No. 625, St. Paul, with coverage under a
collective bargaining agreement by the bricklayers and allied
craftworkers local 1 pension plan, the cement masons local 633
pension plan, the glaziers and glassworkers local L-1324 pension
plan, the painters and allied trades local 61 pension plan, or
the Twin Cities plasterers local 265 pension plan who were
either first employed after May 1, 2001, or if first employed
before May 2, 2001, elected to be excluded under section 6; and
(20) plumbers employed by the metropolitan airports
commission, with coverage under a collective bargaining
agreement by the plumbers local 34 pension plan, who either were
first employed after May 1, 2001, or if first employed before
May 2, 2001, elected to be excluded under section 6.
Sec. 3. Minnesota Statutes 2000, section 353.01,
subdivision 6, is amended to read:
Subd. 6. [GOVERNMENTAL SUBDIVISION.] (a) "Governmental
subdivision" means a county, city, town, school district within
this state, or a department or unit of state government, or any
public body whose revenues are derived from taxation, fees,
assessments or from other sources.
(b) Governmental subdivision also means the public
employees retirement association, the league of Minnesota
cities, the association of metropolitan municipalities, public
hospitals owned or operated by, or an integral part of, a
governmental subdivision or governmental subdivisions, the
association of Minnesota counties, the metropolitan intercounty
association, the Minnesota municipal utilities association, the
metropolitan airports commission, the Minneapolis employees
retirement fund for employment initially commenced after June
30, 1979, the range association of municipalities and schools,
soil and water conservation districts, and economic development
authorities created or operating under sections 469.090 to
469.108, the Spring Lake Park fire department, incorporated, and
the Dakota county agricultural society.
(c) Governmental subdivision does not mean any municipal
housing and redevelopment authority organized under the
provisions of sections 469.001 to 469.047; or any port authority
organized under sections 469.048 to 469.089; or any hospital
district organized or reorganized prior to July 1, 1975, under
sections 447.31 to 447.37 or the successor of the district, nor
the Minneapolis community development agency.
Sec. 4. [383D.48] [METROPOLITAN INTER-COUNTY ASSOCIATION.]
Notwithstanding any other law to the contrary, Dakota
county may provide financial and accounting services, including
payroll management and records, to the Metropolitan Inter-county
Association. Notwithstanding this section, Metropolitan
Inter-county Association employees are not county employees for
any purpose.
Sec. 5. [383D.49] [AGRICULTURAL SOCIETY.]
Notwithstanding any other law to the contrary, Dakota
county may provide financial and accounting services, including
payroll management and records, to the Dakota county
agricultural society and may determine that employees of the
society are county employees for the purposes of section 471.61.
Dakota county agricultural society employees are not county
employees for any other purpose.
Sec. 6. [PUBLIC PENSION COVERAGE EXCLUSION FOR CERTAIN
TRADES PERSONNEL.]
Subdivision 1. [EXCLUSION ELECTION.] (a) A bricklayer,
allied craftworker, cement mason, glazier, glassworker, painter,
allied tradesworker, or plasterer who is employed by the city of
St. Paul or independent school district No. 625, St. Paul, on
the effective date of this section and who has pension coverage
under a collective bargaining agreement by the bricklayers and
allied craftworkers local 1 pension plan, the cement masons
local 633 pension plan, the glaziers and glassworkers local
L-1324 pension plan, the painters and allied trades local 61
pension plan, or the Twin Cities plasterers local 265 pension
plan may elect to be excluded from pension coverage by the
public employees retirement association.
(b) A plumber who is employed by the metropolitan airports
commission on the effective date of this section and who has
pension coverage under a collective bargaining agreement by the
plumbers local 34 pension plan may elect to be excluded from
pension coverage by the public employees retirement association.
(c) The exclusion election under this section must be made
in writing on a form prescribed by the executive director of the
public employees retirement association and must be filed with
the executive director. The exclusion election is irrevocable.
Authority to make the coverage exclusion expires on January 1,
2002.
Subd. 2. [ELIGIBILITY FOR MEMBER CONTRIBUTION REFUND.] A
person who has less than three years of allowable service in the
public employees retirement association and who elects the
pension coverage exclusion under subdivision 1 is entitled to
immediately apply for a refund under Minnesota Statutes, section
353.34, subdivisions 1 and 2, following the effective date of
the exclusion election.
Subd. 3. [DEFERRED ANNUITY ELIGIBILITY.] In lieu of the
refund under subdivision 2, a person who elects the pension
coverage exclusion under subdivision 1 is entitled to a deferred
retirement annuity under Minnesota Statutes, sections 353.34,
subdivision 3; and 353.71, subdivision 2, based on any length of
allowable service credit under Minnesota Statutes, section
353.01, subdivision 16, to the credit of the person as of the
date of the coverage exclusion election.
Sec. 7. [DAKOTA COUNTY AGRICULTURAL SOCIETY EMPLOYEE
PENSION CERTIFICATION.]
Notwithstanding Minnesota Statutes, section 383D.49, the
Dakota county board of commissioners may certify to the
executive director of the public employees retirement
association that full-time employees of the Dakota county
agricultural society are county employees for purposes of
retirement coverage under Minnesota Statutes, chapter 353, which
status must be accorded to all similarly situated Dakota county
agricultural society employees.
Sec. 8. [EFFECTIVE DATE; LOCAL APPROVAL.]
(a) Sections 1, 3, 4, and 5 are effective the day after the
governing body of Dakota county and its chief clerical officer
timely complete their compliance with Minnesota Statutes,
section 645.021, subdivisions 2 and 3.
(b) Section 7 is effective the day after the governing
board of Dakota county and its chief clerical officer timely
complete their compliance with Minnesota Statutes, section
645.021, subdivisions 2 and 3, and certification to the
executive director of the public employees retirement
association.
(c) Sections 2 and 6 are effective for bricklayers, allied
craftworkers, cement masons, glaziers, glassworkers, painters,
allied tradesworkers, and plasterers employed by the city of St.
Paul or independent school district No. 625, St. Paul, as
applicable, on the day following approval by majority vote of
the St. Paul city council or governing board of independent
school district No. 625, St. Paul, as applicable, and compliance
with Minnesota Statutes, section 645.021.
(d) Sections 2 and 6 are effective for plumbers employed by
the metropolitan airports commission on the day following
approval by majority vote of the metropolitan airports
commission and compliance with Minnesota Statutes, section
645.021.
ARTICLE 11
REMEDIAL MEASURES FOR THE PERA-GENERAL FUNDING DEFICIENCY
Section 1. Minnesota Statutes 2000, section 353.01,
subdivision 1, is amended to read:
Subdivision 1. [TERMS.] Unless the language or context
clearly indicates that a different meaning is intended, each of
the following terms, for the purposes of this chapter, shall
be has the meaning given the meanings subjoined to them it.
Sec. 2. Minnesota Statutes 2000, section 353.01,
subdivision 2, is amended to read:
Subd. 2. [PUBLIC EMPLOYEE.] "Public employee" means an a
governmental employee performing personal services for a
governmental subdivision under defined in subdivision 6, whose
salary is paid, in whole or in part, from revenue derived from
taxation, fees, assessments, or from other sources. The
term also includes special the classes of persons described or
listed in subdivision 2a, but. The term also includes persons
who elect association membership under subdivision 2d, paragraph
(a), and persons for whom the applicable governmental
subdivision had elected association membership under subdivision
2d, paragraph (b). The term excludes special the classes of
persons listed in subdivision 2b for purposes of membership in
the association. Public employee does not include independent
contractors and their employees. A reemployed annuitant under
section 353.37 must not be considered to be a public employee
for purposes of that reemployment.
Sec. 3. Minnesota Statutes 2000, section 353.01,
subdivision 2a, is amended to read:
Subd. 2a. [INCLUDED EMPLOYEES.] (a) Public employees whose
salary from one governmental subdivision exceeds $425 in any
month shall participate as members of the association. If the
salary of an employee is less than $425 in a subsequent month,
the employee retains membership eligibility. The following
persons are considered public employees:
(1) employees whose annual salary from one governmental
subdivision exceeds a stipulation prepared in advance, in
writing, to be not more than $5,100 per calendar year or per
school year for school employees for employment expected to be
of a full year's duration or more than the prorated portion of
$5,100 per employment period expected to be of less than a full
year's duration. If compensation from one governmental
subdivision to an employee under this clause exceeds $5,100 per
calendar year or school year after being stipulated in advance
not to exceed that amount, the stipulation is no longer valid
and contributions must be made on behalf of the employee under
section 353.27, subdivision 12, from the month in which the
employee's salary first exceeded $425;
(2) employees whose total salary from concurrent
nontemporary positions in one governmental subdivision exceeds
$425 in any month;
(3) elected officers for service to which they were elected
by the public-at-large, or persons appointed to fill a vacancy
in an elective office, who elect to participate by filing an
application for membership, but not for service on a joint or
regional board that is a governmental subdivision under
subdivision 6, paragraph (a), unless the salary earned for that
service exceeds $425 in any month. The option to become a
member, once exercised, may not be withdrawn during the
incumbency of the person in office;
(4) members who are appointed by the governor to be a state
department head and elect not to be covered by the Minnesota
state retirement system under section 352.021;
(5) employees of elected officers;
(6) persons who elect to remain members under section
480.181, subdivision 2;
(7) employees of a school district who receive separate
salaries for driving their own buses;
(8) employees of the Minnesota association of townships
when the board of the association, at its option, certifies to
the executive director that its employees are to be included for
purposes of retirement coverage, in which case coverage of all
employees of the association is permanent;
(9) employees of a county historical society who are county
employees;
(10) employees of a county historical society located in
the county whom the county, at its option, certifies to the
executive director to be county employees for purposes of
retirement coverage under this chapter, which status must be
accorded to all similarly situated county historical society
employees and, once established, must continue as long as a
person is an employee of the county historical society and is
not excluded under subdivision 2b; and
(11) employees who became members before July 1, 1988,
based on the total salary of positions held in more than one
governmental subdivision. shall participate as members of the
association with retirement coverage by the public employees
retirement plan or the public employees police and fire
retirement plan under this chapter, or the local government
correctional employees retirement plan under chapter 353E,
whichever applies, as a condition of their employment on the
first day of employment unless they:
(1) are specifically excluded under subdivision 2b;
(2) do not exercise their option to elect retirement
coverage in the association as provided in subdivision 2d,
paragraph (a); or
(3) are employees of the governmental subdivisions listed
in subdivision 2d, paragraph (b), where the governmental
subdivision has not elected to participate as a governmental
subdivision covered by the association.
(b) A public employee who was a member of the association
on June 30, 2002, based on employment that qualified for
membership coverage by the public employees retirement plan or
the public employees police and fire plan under this chapter, or
the local government correctional employees retirement plan
under chapter 353E as of June 30, 2002, retains that membership
until the employee terminates public employment under
subdivision 11a or terminates membership under subdivision 11b.
Sec. 4. Minnesota Statutes 2000, section 353.01,
subdivision 2b, is amended to read:
Subd. 2b. [EXCLUDED EMPLOYEES.] The following public
employees shall are not eligible to participate as members of
the association with retirement coverage by the public employees
retirement plan, the local government correctional employees
retirement plan under chapter 353E, or the public employees
police and fire retirement plan:
(1) elected public officers, other than county sheriffs,
who are elected to a governing body, or persons who are
appointed to fill a vacancy in an elective office, who do not
elect to participate in the association by filing an application
for membership of a governing body, whose term of office first
commences on or after July 1, 2002, for the service to be
rendered in that elective position. Elected governing body
officials who were active members of the association's
coordinated or basic retirement plans as of June 30, 2002,
continue participation throughout incumbency in office until
termination of public service occurs as defined in subdivision
11a;
(2) election officers or election judges;
(3) patient and inmate personnel who perform services in
charitable, penal, or correctional institutions of for a
governmental subdivision;
(4) employees who are hired for a temporary position under
subdivision 12a, and employees who resign from a nontemporary
position and accept a temporary position within 30 days in the
same governmental subdivision, but not those. An employer must
not apply the definition of temporary position so as to exclude
employees who are hired for an unlimited period to fill
positions that are permanent or that are for an unspecified
period but who are serving a probationary period at the start of
the employment. If the period of employment extends beyond six
consecutive months and the employee earns more than $425 from
one governmental subdivision in any one calendar month, the
department head shall report the employee for membership and
require employee deductions be made on behalf of the employee
under section 353.27, subdivision 4.
The membership eligibility of an employee who resigns or is
dismissed from a temporary position and within 30 days accepts
another temporary position in the same governmental subdivision
is determined on the total length of employment rather than on
each separate position. Membership eligibility of an employee
who holds concurrent temporary and nontemporary positions in one
governmental subdivision is determined by the length of
employment and salary of each separate position;
(5) employees whose actual salary from one governmental
subdivision does not exceed $425 per month, or whose annual
salary from one governmental subdivision does not exceed a
stipulation prepared in advance, in writing, that the salary
must not exceed $5,100 per calendar year or per school year for
school employees for employment expected to be of a full year's
duration or more than the prorated portion of $5,100 per
employment period for employment expected to be of less than a
full year's duration;
(6) employees who are employed by reason of work emergency
caused by fire, flood, storm, or similar disaster;
(7) (6) employees who by virtue of their employment in one
governmental subdivision are required by law to be a member of
and to contribute to any of the plans or funds administered by
the Minnesota state retirement system, the teachers retirement
association, the Duluth teachers retirement fund association,
the Minneapolis teachers retirement association, the St. Paul
teachers retirement fund association, the Minneapolis employees
retirement fund, or any police or firefighters relief
association governed by section 69.77 that has not consolidated
with the public employees retirement association, or any local
police or firefighters consolidation account but who have not
elected the type of benefit coverage provided by the public
employees police and fire fund under sections 353A.01 to
353A.10, or any persons covered by section 353.665, subdivision
4, 5, or 6, who have not elected public employees police and
fire plan benefit coverage. This clause must not be construed
to prevent a person from being a member of and contributing to
the public employees retirement association and also belonging
to and contributing to another public pension fund for other
service occurring during the same period of time. A person who
meets the definition of "public employee" in subdivision 2 by
virtue of other service occurring during the same period of time
becomes a member of the association unless contributions are
made to another public retirement fund on the salary based on
the other service or to the teachers retirement association by a
teacher as defined in section 354.05, subdivision 2;
(8) (7) persons who are members of a religious order and
are excluded from coverage under the federal Old Age, Survivors,
Disability, and Health Insurance Program for the performance of
service as specified in United States Code, title 42, section
410(a)(8)(A), as amended through January 1, 1987, if no
irrevocable election of coverage has been made under section
3121(r) of the Internal Revenue Code of 1954, as amended;
(9) full-time students who (8) employees who at the time
they are hired by a governmental subdivision are enrolled and on
a full-time basis to attend or are regularly attending classes
at an accredited school, college, or university and who are
part-time employees as defined by a governmental subdivision in
an undergraduate, graduate, or professional-technical program,
or a public or charter high school, if the employment is
predicated on the student status of the individual;
(10) (9) resident physicians, medical interns, and
pharmacist residents and pharmacist interns who are serving in a
degree or residency program in public hospitals;
(11) (10) students who are serving in an internship or
residency program sponsored by an accredited educational
institution;
(12) (11) persons who hold a part-time adult supplementary
technical college license who render part-time teaching service
in a technical college;
(13) (12) foreign citizens working for a governmental
subdivision with a work permit of less than three years, or an
H-1b visa valid for less than three years of employment. Upon
notice to the association that the work permit or visa extends
beyond the three-year period, the foreign citizens are eligible
for membership from the date of the extension;
(14) (13) public hospital employees who elected not to
participate as members of the association before 1972 and who
did not elect to participate from July 1, 1988, to October 1,
1988;
(15) (14) except as provided in section 353.86, volunteer
ambulance service personnel, as defined in subdivision 35, but
persons who serve as volunteer ambulance service personnel may
still qualify as public employees under subdivision 2 and may be
members of the public employees retirement association and
participants in the public employees retirement fund or the
public employees police and fire fund, whichever applies, on the
basis of compensation received from public employment service
other than service as volunteer ambulance service personnel;
(16) (15) except as provided in section 353.87, volunteer
firefighters, as defined in subdivision 36, engaging in
activities undertaken as part of volunteer firefighter duties;
provided that a person who is a volunteer firefighter may still
qualify as a public employee under subdivision 2 and may be a
member of the public employees retirement association and a
participant in the public employees retirement fund or the
public employees police and fire fund, whichever applies, on the
basis of compensation received from public employment activities
other than those as a volunteer firefighter;
(17) (16) pipefitters and associated trades personnel
employed by independent school district No. 625, St. Paul, with
coverage by the pipefitters local 455 pension plan under a
collective bargaining agreement who were either first employed
after May 1, 1997, or, if first employed before May 2, 1997,
elected to be excluded under Laws 1997, chapter 241, article 2,
section 12; and
(18) (17) electrical workers, plumbers, carpenters, and
associated trades personnel employed by independent school
district No. 625, St. Paul, or the city of St. Paul, with who
have retirement coverage by the electrical workers local 110
pension plan, the united association plumbers local 34 pension
plan, or the carpenters local 87 pension plan under a collective
bargaining agreement who were either first employed after May 1,
2000, or, if first employed before May 2, 2000, elected to be
excluded under Laws 2000, chapter 461, article 7, section 5.;
(18) employees who are hired after June 30, 2002, to fill
seasonal positions under subdivision 12b which are limited in
duration by the employer to 185 consecutive calendar days or
less in each business year of the governmental subdivision;
(19) persons who are provided supported employment or
work-study positions by a governmental subdivision and who
participate in an employment or industries program maintained
for the benefit of these persons where the governmental
subdivision limits the position's duration to three years or
less, including persons participating in a federal or state
subsidized on-the-job training, work experience, senior citizen,
youth, or unemployment relief program where the training or work
experience is not provided as a part of, or for, future
permanent public employment;
(20) independent contractors and the employees of
independent contractors; and
(21) reemployed annuitants of the association during the
course of that reemployment.
Sec. 5. Minnesota Statutes 2000, section 353.01, is
amended by adding a subdivision to read:
Subd. 2d. [OPTIONAL MEMBERSHIP.] (a) Membership in the
association is optional by action of the individual employee for
the following public employees who meet the conditions set forth
in subdivision 2a:
(1) members of the coordinated plan who are also employees
of labor organizations as defined in section 353.017,
subdivision 1, for their employment by the labor organization
only if they elect to have membership under section 353.017,
subdivision 2;
(2) persons who are elected or persons who are appointed to
elected positions other than local governing body elected
positions who elect to participate by filing a written election
for membership;
(3) members of the association who are appointed by the
governor to be a state department head and who elect not to be
covered by the general state employees retirement plan of the
Minnesota state retirement system under section 352.021; and
(4) city managers as defined in section 353.028,
subdivision 1, who do not elect to be excluded from membership
in the association under section 353.028, subdivision 2.
(b) Membership in the association is optional by action of
the governmental subdivision for the employees of the following
governmental subdivisions under the conditions specified:
(1) the Minnesota association of townships if the board of
the association, at its option, certifies to the executive
director that its employees are to be included for purposes of
retirement coverage, in which case the status of the association
as a participating employer is permanent; and
(2) a county historical society if the county in which the
historical society is located, at its option, certifies to the
executive director that the employees of the historical society
are to be county employees for purposes of retirement coverage
under this chapter. The status as a county employee must be
accorded to all similarly situated county historical society
employees and, once established, must continue as long as a
person is an employee of the county historical society.
(c) For employees who are covered by paragraph (a), clause
(1), (2), or (3), or covered by paragraph (b), if the necessary
membership election is not made, the employee is excluded from
retirement coverage under this chapter. For employees who are
covered by paragraph (a), clause (4), if the necessary election
is not made, the employee must become a member and have
retirement coverage under this chapter. The option to become a
member, once exercised under this subdivision, may not be
withdrawn until termination of public service as defined under
subdivision 11a.
Sec. 6. Minnesota Statutes 2000, section 353.01,
subdivision 7, is amended to read:
Subd. 7. [MEMBER.] "Member" means a person who accepts
employment as a "public employee" under subdivision 2, who is an
employee who works in one or more positions that require or
allow membership in the association under subdivision 2a or
2d, for whom contributions have been withheld from salary and
who is not covered by the plan established in chapter 353D or
excluded under subdivision 2b. A person who is a member remains
a member while performing services as a public employee and
while on an authorized leave of absence or an authorized
temporary layoff.
Sec. 7. Minnesota Statutes 2000, section 353.01,
subdivision 11b, is amended to read:
Subd. 11b. [TERMINATION OF MEMBERSHIP.] (a) "Termination
of membership" means the conclusion of membership in the
association and occurs:
(1) upon termination of public service under subdivision
11a;
(2) when a member who is a part-time employee is excluded
from membership as a full-time student under subdivision 2b,
clause (9);
(3) when a member does not return to work within 30 days of
the expiration of an authorized temporary layoff under
subdivision 12 or an authorized leave of absence under
subdivision 31. If the employee subsequently returns to a
position in the same governmental subdivision, the employee
shall not again be required to earn a salary in excess of $425
per month, unless the employee has taken a refund of accumulated
employee deductions plus interest under section 353.34,
subdivision 1 as evidenced by the appropriate record filed by
the governmental subdivision; or
(4) (3) when a person files a written election to
discontinue employee deductions under section 353.27,
subdivision 7, paragraph (a), clause (1).
(b) The termination of membership must be reported to the
association by the governmental subdivision.
Sec. 8. Minnesota Statutes 2000, section 353.01,
subdivision 12a, is amended to read:
Subd. 12a. [TEMPORARY POSITION.] (1) "Temporary position"
means an employment position predetermined by the employer at
the time of hiring to be a period of six months or less or.
Temporary position also means an employment position occupied by
a person hired by the employer as a temporary replacement who is
employed for a predetermined period of six months or less.
(2) "Temporary position" does not mean an employment
position for an unlimited period a specified term in which a
person serves a probationary period or works an irregular
schedule as a requirement for subsequent employment on a
permanent or unlimited basis.
Sec. 9. Minnesota Statutes 2000, section 353.01, is
amended by adding a subdivision to read:
Subd. 12b. [SEASONAL POSITION.] "Seasonal position" means
a position where the nature of the work or its duration are
related to a specific season or seasons of the year, regardless
of whether or not the employing agency anticipates that the same
employee will return to the position each season in which it
becomes available. The entire period of employment in a
business year must be used to determine whether or not a
position may be excluded as seasonal when there is less than a
30-day break between one seasonal position and a subsequent
seasonal position for employment with the same governmental
employer. Seasonal positions include, but are not limited to,
coaching athletic activities or employment to plow snow or to
maintain roads or parks, or to operate skating rinks, ski
lodges, golf courses, or swimming pools.
Sec. 10. Minnesota Statutes 2000, section 353.01,
subdivision 16, is amended to read:
Subd. 16. [ALLOWABLE SERVICE; LIMITS AND COMPUTATION.] (a)
"Allowable service" means:
(1) service during years of actual membership in the course
of which employee contributions were made, periods covered by
payments in lieu of salary deductions under section 353.35, and;
(2) service in years during which the public employee was
not a member but for which the member later elected, while a
member, to obtain credit by making payments to the fund as
permitted by any law then in effect.;
(b) "Allowable service" also means (3) a period of
authorized leave of absence with pay from which deductions for
employee contributions are made, deposited, and credited to the
fund.;
(c) "Allowable service" also means (4) a period of
authorized personal, parental, or medical leave of absence
without pay, including a leave of absence covered under the
federal Family Medical Leave Act, that does not exceed one year,
and during or for which a member obtained full or fractional
service credit for each month in the leave period by payments to
the fund made in place of salary deductions, provided that. The
payments are must be made in an amount or amounts based on the
member's average salary on which deductions were paid for the
last six months of public service, or for that portion of the
last six months while the member was in public service, to apply
to the period in either case that immediately preceding precedes
the commencement of the leave of absence. If the employee
elects to pay the employee contributions for the period of
any authorized personal, parental, or medical leave of absence
without pay, or for any portion of the leave, the employee shall
also, as a condition to the exercise of the election, pay to the
fund an amount equivalent to both the required employer and the
additional employer contributions, if any, for the employee.
The payment must be made within one year from the expiration of
the leave of absence or within 20 days after termination of
public service under subdivision 11a. The employer, if by
appropriate action of its governing body, which is made a part
of its official records, and which is adopted before the date of
the first payment of the employee contribution, may certify to
the association in writing its commitment to pay the employer
and additional employer contributions from the proceeds of a tax
levy made under section 353.28. Payments under this paragraph
must include interest at an annual rate of 8.5 percent
compounded annually from the date of the termination of the
leave of absence to the date payment is made. An employee shall
return to public service and receive render a minimum of three
months of allowable service in order to be eligible to pay
employee and employer contributions for a subsequent authorized
leave of absence without pay. Upon payment, the employee must
be granted allowable service credit for full calendar months or
fractions of a month during the leave period as described in
paragraph (d), clauses (1) and (2), based on the salary or the
compensated hours used in computing the payment amount;
(d) "Allowable service" also means (5) a periodic,
repetitive leave that is offered to all employees of a
governmental subdivision. The leave program may not exceed 208
hours per annual normal work cycle as certified to the
association by the employer. A participating member obtains
service credit by making employee contributions in an amount or
amounts based on the member's average salary that would have
been paid if the leave had not been taken. The employer shall
pay the employer and additional employer contributions on behalf
of the participating member. The employee and the employer are
responsible to pay interest on their respective shares at the
rate of 8.5 percent a year, compounded annually, from the end of
the normal cycle until full payment is made. An employer shall
also make the employer and additional employer contributions,
plus 8.5 percent interest, compounded annually, on behalf of an
employee who makes employee contributions but terminates public
service. The employee contributions must be made within one
year after the end of the annual normal working cycle or within
20 days after termination of public service, whichever is
sooner. The association shall prescribe the manner and forms to
be used by a governmental subdivision in administering a
periodic, repetitive leave. Upon payment, the member must be
granted allowable service credit for full calendar months or
fractions of a month during the leave period as described in
paragraph (d), clauses (1) and (2), based on the salary or the
compensated hours used in computing the payment amount;
(e) "Allowable service" also means a period during which a
member is on an authorized sick leave of absence, without pay,
limited to one year. An employee who has received one year of
allowable service shall return to public service and receive a
minimum of three months of allowable service to receive
allowable service for a subsequent authorized sick leave of
absence.
(f) "Allowable service" also means (6) an authorized
temporary layoff under subdivision 12,. For temporary layoffs
that begin before January 1, 2002, allowable service credit is
limited to three months allowable service per authorized
temporary layoff in one calendar year. An employee who has
received the maximum service allowed for an authorized temporary
layoff shall return to public service and receive a minimum of
three months of allowable service to receive allowable service
for a subsequent authorized temporary layoff. For temporary
layoffs that begin on or after January 1, 2002, allowable
service credit for the calendar month in which the member does
not receive salary due to the layoff must be determined using
the following formula:
(i) members who earned one month of allowable service
credit for each of the nine calendar months of compensated
employment with the governmental subdivision authorizing the
layoff that immediately preceded the layoff shall receive one
month of allowable service credit, limited to three months of
allowable service credit per year, for each month of the
temporary layoff; or
(ii) members who earned less than nine months of allowable
service credit in the year of compensated employment with the
governmental subdivision authorizing the layoff that immediately
preceded the layoff shall receive allowable service credit on a
fractional basis for each month of the authorized layoff,
limited to three months of allowable service credit, determined
by dividing the total number of months of service credit earned
for the compensated employment by nine and multiplying the
resulting number by the total number of months in the layoff
period that are not compensated; or
(g) Notwithstanding any law to the contrary, "allowable
service" also means a parental leave. The association shall
grant a maximum of two months service credit for a parental
leave, within six months after the birth or adoption, upon
documentation from the member's governmental subdivision or
presentation of a birth certificate or other evidence of birth
or adoption to the association.
(h) "Allowable service" also means (7) a period during
which a member is on an authorized leave of absence to enter
military service in the armed forces of the United States,
provided that the member returns to public service upon
discharge from military service under section 192.262 and pays
into the fund employee contributions based upon the employee's
salary at the date of return from military service. Payment
must be made within three times the length of the military leave
period, or five years of the date of discharge from the military
service, whichever is less. The amount of these contributions
must be in accord with the contribution rates and salary
limitations, if any, in effect during the leave, plus interest
at an annual rate of 8.5 percent compounded annually from the
date of return to public service to the date payment is made.
The matching employer contribution and additional employer
contribution under section 353.27, subdivisions 3 and 3a, must
be paid by the governmental subdivision employing the member
upon return to public service if the member makes the employee
contributions. The governmental subdivision involved may
appropriate money for those payments. A member may not receive
credit for a voluntary extension of military service at the
instance of the member beyond the initial period of enlistment,
induction, or call to active duty. Upon payment, the employee
must be granted allowable service credit for full calendar
months or fractions of a month during the leave period as
described in paragraph (d), clauses (1) and (2), based on the
salary or compensated hours used in computing the payment amount.
(i) (b) For calculating benefits under sections 353.30,
353.31, 353.32, and 353.33 for state officers and employees
displaced by the Community Corrections Act, chapter 401, and
transferred into county service under section 401.04, "allowable
service" means combined years of allowable service as defined in
paragraphs paragraph (a) to (i), clauses (1) to (6), and section
352.01, subdivision 11.
(j) (c) For a public employee who has prior service covered
by a local police or firefighters relief association that has
consolidated with the public employees retirement association or
to which section 353.665 applies, and who has elected the type
of benefit coverage provided by the public employees police and
fire fund either under section 353A.08 following the
consolidation or under section 353.665, subdivision 4,
"applicable service" is a period of service credited by the
local police or firefighters relief association as of the
effective date of the consolidation based on law and on bylaw
provisions governing the relief association on the date of the
initiation of the consolidation procedure.
(d) For persons who, after January 1, 2002, either first
become members or terminated membership under subdivision 11b,
and again become members, of the public employees retirement
plan, the public employees police and fire plan under this
chapter, or the local government correctional employee
retirement plan under chapter 353E, whichever applies,
"allowable service" means credit for compensated hours from
which deductions are made, or for which payments are made in
lieu of salary deductions as provided under this subdivision,
and which are deposited and credited in the fund as provided in
section 353.27, determined as follows:
(1) one month of allowable service credit for each month
during which the employee has received salary for 80 or more
compensated hours; or
(2) a fraction of one month of allowable service for each
month for which the employee has received salary for less than
80 compensated hours equal to the percentage relationship that
the number of compensated hours bear to 80 hours.
(e) Elected officials and other public employees who are
compensated solely on an annual basis shall be granted a full
year of credit for each year for which compensation is earned.
(f) Allowable service that is determined and credited on a
fractional basis must be used only in calculating the amount of
benefits payable. In determining the length of service required
for vesting, a member shall be granted a month of service credit
for each month in which the member received compensation from
which employee contributions were deducted. For periods of
part-time service that are duplicated service credit, section
356.30, subdivision 1, paragraphs (g) and (h), govern.
(g) No member shall receive more than 12 months of
allowable service credit in a year either for vesting purposes
or for benefit calculation purposes.
Sec. 11. Minnesota Statutes 2000, section 353.01, is
amended by adding a subdivision to read:
Subd. 38. [BUSINESS YEAR.] "Business year" means the first
day of the first full pay period through the last day of the
last full pay period of the 12-month fiscal year applicable to
the respective governmental subdivision.
Sec. 12. Minnesota Statutes 2000, section 353.01, is
amended by adding a subdivision to read:
Subd. 39. [COMPENSATED HOURS.] "Compensated hours" means
the hours during which an employee performs services in one or
more positions for a single governmental subdivision for which
the employee receives compensation. The term also includes the
following:
(1) paid holiday hours for which the employee is not
required to work;
(2) paid used sick leave hours;
(3) paid used personal leave hours and vacation hours; and
(4) the paid hours drawn from accrued compensatory time.
Sec. 13. Minnesota Statutes 2000, section 353.27,
subdivision 2, is amended to read:
Subd. 2. [EMPLOYEE CONTRIBUTION.] (a) The employee
contribution is an the following applicable percentage of total
salary amount (1) for a "basic member" equal to 8.75 percent of
total salary; and (2) for a "coordinated member" equal to 4.75
percent of total salary.:
Basic Program Coordinated Program
Before January 1, 2002 8.75 4.75
Effective January 1, 2002 9.10 5.10
(b) These contributions must be made by deduction from
salary in the manner provided in subdivision 4. Where any
portion of a member's salary is paid from other than public
funds, such member's employee contribution must be based on the
total salary received from all sources.
Sec. 14. Minnesota Statutes 2000, section 353.27,
subdivision 3, is amended to read:
Subd. 3. [EMPLOYER CONTRIBUTION.] (a) The employer
contribution is an the following applicable percentage of total
salary amount equal to the employee contribution under
subdivision 2.:
Basic Program Coordinated Program
Before January 1, 2002 8.75 4.75
Effective January 1, 2002 9.10 5.10
(b) This contribution must be made from funds available to
the employing subdivision by the means and in the manner
provided in section 353.28.
Sec. 15. Minnesota Statutes 2000, section 353.27,
subdivision 4, is amended to read:
Subd. 4. [EMPLOYER REPORTING REQUIREMENTS; CONTRIBUTIONS;
MEMBER STATUS.] (a) A representative authorized by the head of
each department shall deduct employee contributions from the
salary of each employee who qualifies for membership under this
chapter and remit payment in a manner prescribed by the
executive director for the aggregate amount of the employee
contributions, the employer contributions and the additional
employer contributions to be received within 14 calendar days.
The head of each department or the person's designee shall for
each pay period submit to the association a salary deduction
report in the format prescribed by the executive director. Data
to be submitted as part of salary deduction reporting must
include, but are not limited to:
(1) the legal names and social security numbers of
employees who are members;
(2) the amount of each employee's salary deduction;
(3) the amount of salary from which each deduction was
made;
(4) the beginning and ending dates of the payroll period
covered and the date of actual payment; and
(5) adjustments or corrections covering past pay periods;
and
(6) the number of compensated hours of each employee during
the payroll period.
(b) Employers must furnish the data required for enrollment
for each new employee who qualifies for membership in the format
prescribed by the executive director. The required enrollment
data on new employees must be submitted to the association prior
to or concurrent with the submission of the initial employee
salary deduction. The employer shall also report to the
association all member employment status changes, such as leaves
of absence, terminations, and death, and the effective dates of
those changes, on an ongoing basis for the payroll cycle in
which they occur. The employer shall furnish data, forms, and
reports as may be required by the executive director for proper
administration of the retirement system. Before implementing
new or different computerized reporting requirements, the
executive director shall give appropriate advance notice to
governmental subdivisions to allow time for system modifications.
(c) Notwithstanding paragraph (a), the association may
provide for less frequent reporting and payments for small
employers.
Sec. 16. Minnesota Statutes 2000, section 353.27,
subdivision 11, is amended to read:
Subd. 11. [EMPLOYERS; REQUIRED TO FURNISH REQUESTED
INFORMATION.] All governmental subdivisions shall furnish
promptly such other information relative to the employment
status of all employees or former employees, including but not
limited to payroll abstracts pertaining to all past and present
employees, as may be requested by the association or its
executive director, including schedules of salaries applicable
to various categories of employment, and the number of actual or
estimated compensated hours for employees. In the event payroll
abstract records have been lost or destroyed, for whatever
reason or in whatever manner, so that such schedules of salaries
cannot be furnished therefrom, the employing governmental
subdivision, in lieu thereof, shall furnish to the association
an estimate of the earnings of any employee or former employee
for any period as may be requested by the association or its
executive director. Should the association receive such
schedules of estimated earnings, the executive director is
hereby authorized to use the same as a basis for making whatever
computations might be necessary for determining obligations of
the employee and employer to the retirement fund. If estimates
are not furnished by the employer pursuant to the request of the
association or its executive director, the association may
estimate the obligations of the employee and employer to the
retirement fund based upon such records as are in its
possession. Where payroll abstracts have been lost or
destroyed, the governmental agency need not furnish any
information pertaining to employment prior to July 1, 1963. The
association shall make no estimate of any obligation of any
employee, former employee, or employer covering employment prior
to July 1, 1963.
Sec. 17. Minnesota Statutes 2000, section 353.86,
subdivision 1, is amended to read:
Subdivision 1. [PARTICIPATION.] Volunteer ambulance
service personnel, as defined in section 353.01, subdivision 35,
who are or become members of and participants in the public
employees retirement fund or the public employees police and
fire fund before July 1, 2002, and make contributions to either
of those funds based on compensation for service other than
volunteer ambulance service may elect to participate in that
same fund with respect to compensation received for volunteer
ambulance service, provided that the volunteer ambulance service
is not credited to another public or private pension plan
including the public employees retirement plan established by
chapter 353D and provided further that the volunteer ambulance
service is rendered for the same governmental unit for which the
nonvolunteer ambulance service is rendered.
Sec. 18. Minnesota Statutes 2000, section 356.215,
subdivision 4g, is amended to read:
Subd. 4g. [AMORTIZATION CONTRIBUTIONS.] (a) In addition to
the exhibit indicating the level normal cost, the actuarial
valuation must contain an exhibit indicating the additional
annual contribution sufficient to amortize the unfunded
actuarial accrued liability. For funds governed by chapters 3A,
352, 352B, 352C, 353, 354, 354A, and 490, the additional
contribution must be calculated on a level percentage of covered
payroll basis by the established date for full funding in effect
when the valuation is prepared. For funds governed by chapter
3A, sections 352.90 through 352.951, chapters 352B, 352C,
sections 353.63 through 353.68, and chapters 353C, 354A, and
490, the level percent additional contribution must be
calculated assuming annual payroll growth of 6.5 percent. For
funds governed by sections 352.01 through 352.86 and chapter
354, the level percent additional contribution must be
calculated assuming an annual payroll growth of five percent.
For the fund governed by sections 353.01 through 353.46, the
level percent additional contribution must be calculated
assuming an annual payroll growth of six percent. For all other
funds, the additional annual contribution must be calculated on
a level annual dollar amount basis.
(b) For any fund other than the Minneapolis employees
retirement fund and the public employees retirement association
general plan, after the first actuarial valuation date occurring
after June 1, 1989, if there has not been a change in the
actuarial assumptions used for calculating the actuarial accrued
liability of the fund, a change in the benefit plan governing
annuities and benefits payable from the fund, a change in the
actuarial cost method used in calculating the actuarial accrued
liability of all or a portion of the fund, or a combination of
the three, which change or changes by themselves without
inclusion of any other items of increase or decrease produce a
net increase in the unfunded actuarial accrued liability of the
fund, the established date for full funding for the first
actuarial valuation made after June 1, 1989, and each successive
actuarial valuation is the first actuarial valuation date
occurring after June 1, 2020.
(c) For any fund or plan other than the Minneapolis
employees retirement fund and the public employees retirement
association general plan, after the first actuarial valuation
date occurring after June 1, 1989, if there has been a change in
any or all of the actuarial assumptions used for calculating the
actuarial accrued liability of the fund, a change in the benefit
plan governing annuities and benefits payable from the fund, a
change in the actuarial cost method used in calculating the
actuarial accrued liability of all or a portion of the fund, or
a combination of the three, and the change or changes, by
themselves and without inclusion of any other items of increase
or decrease, produce a net increase in the unfunded actuarial
accrued liability in the fund, the established date for full
funding must be determined using the following procedure:
(i) the unfunded actuarial accrued liability of the fund
must be determined in accordance with the plan provisions
governing annuities and retirement benefits and the actuarial
assumptions in effect before an applicable change;
(ii) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the
unfunded actuarial accrued liability amount determined under
item (i) by the established date for full funding in effect
before the change must be calculated using the interest
assumption specified in subdivision 4d in effect before the
change;
(iii) the unfunded actuarial accrued liability of the fund
must be determined in accordance with any new plan provisions
governing annuities and benefits payable from the fund and any
new actuarial assumptions and the remaining plan provisions
governing annuities and benefits payable from the fund and
actuarial assumptions in effect before the change;
(iv) the level annual dollar contribution or level
percentage, whichever is applicable, needed to amortize the
difference between the unfunded actuarial accrued liability
amount calculated under item (i) and the unfunded actuarial
accrued liability amount calculated under item (iii) over a
period of 30 years from the end of the plan year in which the
applicable change is effective must be calculated using the
applicable interest assumption specified in subdivision 4d in
effect after any applicable change;
(v) the level annual dollar or level percentage
amortization contribution under item (iv) must be added to the
level annual dollar amortization contribution or level
percentage calculated under item (ii);
(vi) the period in which the unfunded actuarial accrued
liability amount determined in item (iii) is amortized by the
total level annual dollar or level percentage amortization
contribution computed under item (v) must be calculated using
the interest assumption specified in subdivision 4d in effect
after any applicable change, rounded to the nearest integral
number of years, but not to exceed 30 years from the end of the
plan year in which the determination of the established date for
full funding using the procedure set forth in this clause is
made and not to be less than the period of years beginning in
the plan year in which the determination of the established date
for full funding using the procedure set forth in this clause is
made and ending by the date for full funding in effect before
the change; and
(vii) the period determined under item (vi) must be added
to the date as of which the actuarial valuation was prepared and
the date obtained is the new established date for full funding.
(d) For the Minneapolis employees retirement fund, the
established date for full funding is June 30, 2020.
(e) For the public employees retirement association general
plan, the established date for full funding is June 30, 2031.
(f) For the retirement plans for which the annual actuarial
valuation indicates an excess of valuation assets over the
actuarial accrued liability, the valuation assets in excess of
the actuarial accrued liability must be recognized as a
reduction in the current contribution requirements by an amount
equal to the amortization of the excess expressed as a level
percentage of pay over a 30-year period beginning anew with each
annual actuarial valuation of the plan.
Sec. 19. [IMPLEMENTATION PLAN; MAJOR STATEWIDE RETIREMENT
SYSTEM ADMINISTRATIVE SERVICES CONSOLIDATION.]
(a) Based on the July 15, 2001, report required under Laws
1999, chapter 222, article 22, section 5, the executive
directors of the Minnesota state retirement system, the public
employees retirement association, and the teachers retirement
association jointly shall prepare a report detailing the
implementation steps that would be necessary to consolidate the
administrations of the three systems into a single
administrative structure if the legislature subsequently
determines that such a consolidation would be in the best
interests of the state, its taxpayers, and its public employees.
(b) The report must include the draft proposed legislation
that would be required to effect an administrative consolidation
as well as a detailed schedule and timetable of the completion
steps for a consolidation.
(c) The report must be filed by February 15, 2003, with the
chair of the legislative commission on pensions and retirement,
the chair of the senate committee on state and local government
operations, and the chair of the house committee on government
operations and veterans affairs policy.
Sec. 20. [IMPLEMENTATION PLAN; AGGREGATION OF TEACHER
RETIREMENT PLANS.]
(a) The executive director of the teachers retirement
association, the secretary of the Duluth teachers retirement
fund association, the executive director of the Minneapolis
teachers retirement fund association, and the secretary of the
St. Paul teachers retirement fund association jointly shall
prepare a report detailing the steps that would be necessary to
create a restructured teacher retirement plan if the legislature
subsequently determines that this restructuring would be in the
best interests of the state, its taxpayers, and the public
education community.
(b) In preparing the report, the pension plan
administrators must establish and consult with a task force.
The task force must consist of representatives of the affected
employing units and representatives of the collective bargaining
organizations representing members of the affected pension plans.
(c) The report must include the draft proposed legislation
that would be required to create a restructured teacher
retirement plan as well as a detailed schedule and timetable of
the completion steps for the creation of a restructured teacher
retirement plan.
(d) The report must be filed by February 15, 2002, with the
chair of the legislative commission on pensions and retirement,
the chair of the senate committee on state and local government
operations, and the chair of the house committee on government
operations and veterans affairs policy.
Sec. 21. [PERA-GENERAL FINANCING STUDY.]
The report prepared by the consulting actuary retained by
the legislative commission on pensions and retirement under
Minnesota Statutes, section 3.85, subdivision 11, paragraph (d),
following the completion of the July 1, 2001, actuarial
valuations must include a specific finding on the adequacy of
the financial support rates of the general employees retirement
plan of the public employees retirement association and a
specific recommendation on any needed increase in those
financial support rates.
Sec. 22. [EFFECTIVE DATE.]
(a) Section 4, as it relates to the exclusion of school
district employees, is effective June 30, 2001.
(b) Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 11, and 17 are
effective July 1, 2002.
(c) Section 18 is effective for actuarial valuations
prepared after June 1, 2001.
(d) Sections 12, 13, 14, 15, and 16 are effective July 1,
2001.
(e) Sections 19, 20, and 21 are effective the day following
final enactment.
ARTICLE 12
MINNESOTA STATE COLLEGES AND
UNIVERSITIES SYSTEM RETIREMENT PROVISIONS
Section 1. Minnesota Statutes 2000, section 354.41,
subdivision 4, is amended to read:
Subd. 4. [MEMBERSHIP ELIGIBILITY FOR LABOR ORGANIZATION
EMPLOYEES.] (a) A person who is a member on an authorized leave
of absence and is employed as an employee or officer by the
Minnesota federation of teachers or its affiliated branches
within the state, the Minnesota education association, the
Minnesota association of school principals, the Minnesota
association of secondary school principals or the Minnesota a
labor organization that is the exclusive bargaining agent or the
labor organization's state affiliate representing teachers
covered by this chapter or by an association of school
administrators may elect to be a coordinated member of the
association based on that employment, subject to the limitations
set forth in subdivisions 4a and 4b. However, no person is
entitled to membership under this section if the person also is
a member of a teachers retirement association in a city of the
first class organized under chapter 354A for the same period of
service.
(b) The election must be made within 90 days of commencing
employment by the labor organization.
Sec. 2. [354B.32] [TRANSFER OF FUNDS TO IRAP.]
A participant in the individual retirement account plan
established in this chapter who has less than ten years of
allowable service under the teachers retirement association or
the teachers retirement fund association may elect to transfer
an amount equal to the participant's accumulated member
contributions to the teachers retirement association or the
teachers retirement fund association, plus compound interest at
the rate of six percent per annum, to the individual retirement
account plan. The transfers are irrevocable fund to fund
transfers, and in no event may the participant receive direct
payment of the money transferred prior to retirement. If a
participant elects the contribution transfer, all of the
participant's allowable and formula service credit in the
teachers retirement association or the teachers retirement fund
association associated with the transferred amount is forfeited.
The executive director of the teachers retirement
association and the chief administrative officers of the
teachers retirement fund associations, in cooperation with the
chancellor of the Minnesota state colleges and universities
system, shall notify participants who are eligible to transfer
of their right to transfer and the amount that they are eligible
to transfer, and shall, upon request, provide forms to implement
the transfer. The chancellor of the Minnesota state colleges
and universities system shall assist the teachers retirement
association and the teachers retirement fund associations in
developing transfer forms and in implementing the transfers.
Authority to elect a transfer under this section expires on
July 1, 2004.
Sec. 3. [REPEALER.]
Minnesota Statutes 2000, section 354.41, subdivision 9, is
repealed.
Sec. 4. [EFFECTIVE DATE.]
(a) Sections 1 to 3 are effective the day following final
enactment.
(b) Coverage under section 1 applies to employment as an
officer of the interfaculty organization on or after July 1,
1996.
ARTICLE 13
CLOSED CHARTER SCHOOL RETIREMENT CONTRIBUTIONS
Section 1. [STUDY BY THE LEGISLATIVE COMMISSION ON
PENSIONS AND RETIREMENT.]
(a) The legislative commission on pensions and retirement
shall study and recommend the appropriate mechanism for
recovering unpaid member and employer retirement plan
contributions from charter schools that cease operations.
(b) The report must include the draft proposed legislation
that would be required to implement the mechanism recommended by
the commission.
(c) The report must be filed by February 15, 2002, with the
chairs of the senate committees on state and local government
operations and education and with the chairs of the house
committees on governmental operations and veterans affairs
policy and education.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective the day following final enactment.
ARTICLE 14
LOCAL POLICE AND PAID FIRE PENSION PLANS
Section 1. Minnesota Statutes 2000, section 423B.05, is
amended by adding a subdivision to read:
Subd. 4. [RIGHT TO PARTICIPATE BY MAIL-IN BALLOT.] Active
members, retired members, and surviving spouse members of the
relief association have the right to participate in the election
of board members of the association by mail-in ballot.
Sec. 2. Minnesota Statutes 2000, section 423B.05, is
amended by adding a subdivision to read:
Subd. 5. [MAIL-IN REFERENDUM ON VOTING BY MAIL.] (a) The
board of the association is authorized to submit the following
question in a binding member referendum to be conducted by mail:
"Shall the bylaws of the Minneapolis police relief
association be amended to allow future proposed
amendments to the bylaws of the relief association
to be approved by a vote of relief association members
by mail?
Yes ........
No ........"
(b) The board of the relief association shall conduct the
referendum by mailing a printed copy of the referendum question
and of the ballot to all active members, retired members, and
surviving spouse members in accordance with the voting
procedures that the board of the relief association used in the
most recent board election prior to March 1, 2001.
(c) Before submitting the referendum question to a vote by
the relief association membership, the relief association board
shall solicit the opinions of relief association members for the
question and against the question. The solicitation for member
comments must be included in the next regular relief association
communication to relief association members following the
proposal of the bylaw amendment and on the Web site of the
relief association. The comment period continues for 30 days.
The executive director of the relief association shall prepare a
summary of the comments of relief association members for and
against the question in a fair and impartial manner. A draft of
the summary document must be placed on the Web site of the
relief association for five days. If a relief association board
member challenges the objectivity of the draft summary, the
draft summary must be reviewed by a neutral third party. The
neutral third party must be an accredited professional
mediator. The relief association executive director shall
include the recommendations of the neutral third party in the
final summary document. The written summary prepared by the
relief association executive director must be included with the
question and the ballot mailed to relief association members.
(d) Balloting procedures must be designed to maintain
secrecy as to the identity of voting members. The receipt of
returned ballots and the counting of those ballots must be
conducted by an accounting firm designated by the relief
association board to perform those functions.
(e) For adoption, the question must receive favorable votes
from two-thirds of the relief association members who return
ballots on the question.
(f) If the question in paragraph (a) is approved in the
referendum, future bylaw amendments must be conducted in the
same manner as provided in this subdivision.
Sec. 3. [EVELETH RETIRED POLICE AND FIRE TRUST FUND; AD
HOC POSTRETIREMENT ADJUSTMENT.]
In addition to the current pensions and other retirement
benefits payable, the pensions and retirement benefits payable
to retired police officers and firefighters and their surviving
spouses by the Eveleth police and fire trust fund are increased
by $100 per month. Increases are retroactive to January 1, 2001.
Sec. 4. [EFFECTIVE DATE.]
(a) Sections 1 and 2 are effective on the day following
final enactment.
(b) If the referendum question in section 2 is approved, no
proposed bylaw amendment may be submitted for membership
approval by mail until January 1, 2002.
(c) Section 3 is effective on the day after the date on
which the Eveleth city council and the chief clerical officer of
the city of Eveleth complete in a timely manner their compliance
with Minnesota Statutes, section 645.021, subdivisions 2 and 3.
ARTICLE 15
MINNEAPOLIS FIREFIGHTERS RELIEF ASSOCIATION
BENEFIT PLAN CODIFICATION AND REVISION
Section 1. [423C.01] [MINNEAPOLIS FIREFIGHTERS RELIEF
ASSOCIATION; DEFINITIONS.]
Subdivision 1. [TERMS.] For purposes of this chapter,
unless the context clearly indicates otherwise, the terms
defined in this section have the meanings given them.
Subd. 2. [ACTIVE MEMBER.] "Active member" means a person
who was hired and duly appointed by the city of Minneapolis
before June 15, 1980, as a firefighter who is regularly entered
on the fire department payroll and who serves on active duty.
Subd. 3. [ACTIVE MEMBER PERCENTAGE.] "Active member
percentage" means the total number of units accrued by active
members divided by the sum of the total number of units to which
eligible members are entitled and active members have accrued.
Subd. 4. [ACTUARIAL EQUIVALENT OR ACTUARIALLY
EQUIVALENT.] "Actuarial equivalent" or "actuarially equivalent"
means the condition of one annuity or benefit having an equal
actuarial present value as another annuity or benefit determined
as of a given date at a specified age with each actuarial
present value based on the appropriate mortality table adopted
by the board based on the experience of the special fund and
approved by the actuary retained by the legislative commission
on pensions and retirement and using the applicable
preretirement or postretirement interest rate assumptions
specified in section 356.216.
Subd. 5. [AGE.] "Age" means a person's age at the person's
latest birthday.
Subd. 6. [ANNUAL POSTRETIREMENT ADJUSTMENT.] "Annual
postretirement adjustment" means the payment of a lump-sum,
postretirement benefit pursuant to section 423C.06, subdivision
1, to an eligible member on June 1 following the determination
date in any year.
Subd. 7. [ASSOCIATION.] "Association" means the
Minneapolis firefighters relief association.
Subd. 8. [BOARD.] "Board" means the board established in
section 423C.03 to govern the association.
Subd. 9. [CITY.] "City" means the city of Minneapolis.
Subd. 10. [DEFERRED MEMBER.] "Deferred member" means a
person who served on active duty and was regularly entered on
the fire department payroll and separated from active service
prior to attaining 50 years of age and is entitled to receive a
service pension upon reaching age 50 under the law existing at
the time the member separated from active service for at least
five years.
Subd. 11. [DEPENDENT.] "Dependent" means:
(1) a biological or adopted child of a deceased, active, or
retired member who is unmarried and under the age of 18;
(2) a biological or adopted child of a deceased, active, or
retired member who is between the ages of 18 and 22 and is
enrolled full time at an accredited educational institution
approved by the board; or
(3) a biological child of an active or retired member
conceived during the active or retired member's lifetime and
born after the active or retired member's death.
Subd. 12. [DETERMINATION DATE.] "Determination date" means
December 31 of each year.
Subd. 13. [DISABILITY.] "Disability" has the meaning
specified in the bylaws of the relief association on April 1,
2001.
Subd. 14. [DISCHARGE.] "Discharge" means a complete
separation from and termination of active service as a member of
the fire department.
Subd. 15. [ELIGIBLE MEMBER.] "Eligible member" means:
(1) for purposes of section 423C.06, subdivision 1, a
person, including a service pensioner, a disability pensioner, a
survivor, or dependent of a deceased active member, service
pensioner, or disability pensioner, who received a pension or
benefit from the relief association during the 12 months before
the determination date. A person who received a pension or
benefit for the entire 12 months before the determination date
is eligible for a full annual postretirement payment. A person
who received a pension or benefit for less than 12 months before
the determination date is eligible for a prorated annual
postretirement payment; and
(2) for purposes of section 423C.06, subdivision 4, a
person who receives a service, survivor, or disability pension
payable from the special fund of the association.
Subd. 16. [ENROLLED FULL TIME.] "Enrolled full time" means
the situation of an individual who is in full-time attendance as
a student at an educational institution, as determined by the
board of trustees of the relief association in light of the
standards and practices of the school involved. A person who is
paid by the person's employer while attending school at the
request of that employer may not be considered to be a full-time
student. A person may be considered a full-time student during
a period of up to four months of nonattendance during any
12-month period if the person shows to the satisfaction of the
board of trustees that the person intends to continue in
full-time school attendance immediately upon the conclusion of
the nonattendance period.
Subd. 17. [EXCESS INVESTMENT INCOME.] "Excess investment
income" means the amount, if any, by which the time-weighted
total rate of return earned by the special fund in the prior
five fiscal years has exceeded the actual percentage increase in
the current monthly salary of a first grade firefighter in the
most recent fiscal year plus two percent. The excess investment
income must be expressed as a dollar amount and may not exceed
one percent of the total assets of the special fund except when
the actuarial value of assets of the special fund, according to
the most recent annual actuarial valuation prepared in
accordance with sections 356.215 and 356.216, is greater than
102 percent of its actuarial accrued liabilities, in which case
the amount must not exceed 1.5 percent of the assets of the
special fund.
Subd. 18. [FIRE DEPARTMENT.] "Fire department" means the
Minneapolis fire department.
Subd. 19. [FUND.] "Fund" means the special fund of the
relief association.
Subd. 20. [NET EXCESS ASSET AMOUNT PAYMENT.] "Net excess
asset amount payment" means the payment of an additional
postretirement payment under section 423C.06, subdivision 4, to
an eligible member on June 1 following the determination date in
the given year.
Subd. 21. [NET TOTAL EXCESS ASSET AMOUNT.] "Net total
excess asset amount" means the total excess asset amount stated
in dollars and multiplied by one minus the active member
percentage.
Subd. 22. [PERIOD OF SERVICE.] "Period of service" means:
(1) any service rendered by a firefighter for any calendar
month when the member receives salary from which deductions are
made, deposited, and credited to the special fund. Leaves of
absence of more than 90 days, except those granted because of
disability due to sickness or accident or to enable a member to
accept an appointive position in the fire department, shall be
excluded in computing a member's period of service;
(2) any period in which the member, after entering the fire
department, leaves to enter the military forces of the United
States in a time of war or national emergency and subsequently
receives an honorable discharge from the military or leaves to
render fire prevention services to the United States government
in a time of war or national emergency, provided the member who
serves either applies for reinstatement in or resumes active
duty in the fire department within six months. During any
period of military or fire prevention service, the individual
shall not be considered an active member. Any period of service
a member qualifies for under this clause is limited as follows:
(i) credit shall be granted for service rendered subsequent
to July 1, 1961, but the credit shall not exceed six calendar
years;
(ii) no credit shall be granted for service rendered
subsequent to July 1, 1961, if the period of service rendered
prior to July 1, 1961, equals or exceeds six calendar years; and
(iii) if the period of service prior to July 1, 1961, is
less than six calendar years, credit for service subsequent to
July 1, 1961, shall be added to the prior service, but in no
case shall total service credit exceed six calendar years.
Subd. 23. [RETIRED MEMBER.] "Retired member" means a
former active member who has terminated active service with the
fire department and is entitled to receive a pension or benefit
under this chapter or any predecessor law.
Subd. 24. [RELIEF ASSOCIATION.] "Relief association" means
the Minneapolis firefighters relief association.
Subd. 25. [SURVIVING SPOUSE MEMBER.] "Surviving spouse
member" means a person who was:
(1) legally married to, and residing with, an active,
deferred, or retired member both during the time the member was
regularly entered on the payroll and serving on active duty in
the fire department and at the time of the member's death;
(2) not in a common law marriage; and
(3) in the event the person was married to a retired or
deferred member, married to that retired or deferred member for
at least two years prior to the member's discharge from the fire
department.
Subd. 26. [TIME-WEIGHTED TOTAL RATE OF
RETURN.] "Time-weighted total rate of return" means the
percentage amount determined by using the formula or formulas
established by the state board of investment under section
11A.04, clause (11), and in effect on January 1, 1987.
Subd. 27. [TOTAL EXCESS ASSET AMOUNT.] (a) "Total excess
asset amount" means the difference, if positive, expressed in
dollars, between the special fund's market value of assets after
any deductions required by section 423C.06, subdivision 3, and
110 percent of the actuarial accrued liabilities based on the
actuarial valuation indicated in paragraph (b).
(b) The total excess asset amount in paragraph (a) exists
if the actuarial liability funding ratio, according to the most
recent annual actuarial valuation of the special fund prepared
in accordance with sections 69.77, 356.215, and 356.216, with
adjustments required by section 423C.06, subdivision 3, equals
or exceeds 110 percent.
Subd. 28. [UNIT.] "Unit" means 1/80 of the maximum monthly
salary of a first grade firefighter on the first day of the
month in which the pension benefits provided by this chapter are
paid.
Sec. 2. [423C.02] [MINNEAPOLIS FIREFIGHTERS RELIEF
ASSOCIATION.]
Subdivision 1. [CREATION.] The active and retired members
of the fire department and their surviving spouses shall
maintain the association. The association shall be duly
incorporated under chapter 317A. The corporation shall have
perpetual corporate existence. The association shall create,
maintain, and administer those funds and accounts as set forth
in section 423C.04 for the benefit of its members, surviving
spouses, and dependents. The sources of revenue for each fund
and account are governed by section 423C.04. The authorized
disbursements from each fund and account are governed by
sections 423C.04, 423C.05, and 423C.06.
Subd. 2. [MEMBERSHIP.] Active members, deferred members,
retired members, and surviving spouse members as defined in
section 423C.01 are members of the association.
Subd. 3. [MANAGEMENT OF ASSOCIATION.] The board created in
section 423C.03 shall manage, control, and operate the
association, including the funds and accounts set forth in
section 423C.04, according to this chapter, other applicable
law, and the association's articles of incorporation and its
bylaws. Notwithstanding section 423A.01, subdivision 2, or any
other law to the contrary, the board shall continue to govern
the association until there are fewer than 100 members receiving
benefits under this chapter. Thereafter, the special fund shall
become a trust fund according to section 423A.01, subdivision 2.
Subd. 4. [DISPOSITION OF ASSETS UPON CONCLUSION OF BENEFIT
PAYMENTS.] Upon the death of the last benefit recipient and the
certification by the chief administrative officer of the city to
the state auditor of the absence of any remaining person
entitled to a benefit under this chapter, all assets of the
association or trust fund, whichever applies, shall revert to
the city. The city shall only use these assets for firefighting
expenditure purposes.
Sec. 3. [423C.03] [BOARD MEMBERSHIP; ELECTIONS; DUTIES;
COMPENSATION; BOND; MEETINGS; POWERS.]
Subdivision 1. [BOARD COMPOSITION AND ELECTIONS.] The
board shall consist of two persons appointed by the city and ten
other members selected by the members. Elections for active and
retired positions on the board shall be conducted pursuant to
the association's bylaws.
Subd. 2. [BOARD OFFICERS.] The officers of the association
shall consist of a president, one or more vice-presidents, an
executive secretary, a treasurer, an assistant executive
secretary, and an assistant treasurer. Only elected members of
the board are eligible to be officers. Officers shall have
those duties and responsibilities as set forth in this chapter,
other applicable law, and the association's bylaws. Officers
shall be compensated as provided in subdivision 3. All officers
shall be elected in even years at the association's annual
meeting. Officers shall hold their office for a term of two
years unless they are removed from the board before their
two-year term expires.
Subd. 3. [COMPENSATION OF OFFICERS AND BOARD
MEMBERS.] Notwithstanding any other law to the contrary, the
association may provide for payment of the following salaries to
its officers and board members:
(1) the executive secretary may receive a salary not
exceeding 30 percent of the maximum salary of a first grade
firefighter;
(2) the president may receive a salary not exceeding ten
percent of the maximum salary of a first grade firefighter; and
(3) all other elected members of the board may receive a
salary not exceeding 2.5 percent of the maximum salary of a
first grade firefighter.
Subd. 4. [BOND FOR EXECUTIVE SECRETARY AND TREASURER.] (a)
The executive secretary and the treasurer must furnish to the
relief association a corporate bond for the faithful performance
of the duties of that office in an amount as the board of
trustees from time to time may determine, subject to the minimum
amount specified in section 69.051, subdivision 2.
(b) The relief association must pay the premiums on these
bonds from the general fund of the relief association.
Subd. 5. [MEETINGS.] Each December, the board shall hold
an annual meeting. All other meetings of the board shall be
held as provided in the association's articles or bylaws. Board
members may participate in a board meeting by any means of
communication through which the trustee, other board members
participating, and all other board members physically present at
the meeting may simultaneously hear each other during the
meeting. Participating in a meeting by these means is the same
thing as being physically present at the meeting.
Subd. 6. [ADDITIONAL BOARD POWERS.] In addition to the
powers granted the board by this chapter, chapter 317A, other
applicable state and federal law, and its articles and bylaws,
the board shall authorize and create a board of examiners.
The board of examiners shall investigate and report on all
applications for disability pensions and make recommendations as
to the amount to be paid to each applicant; investigate and
report on all disability pensioners and make recommendations as
to the amount of pension to be paid to them, from year to year;
and investigate and report on all applications for service
pensions and claims for relief. This board shall consist of a
competent physician selected by the association and at least
three members of the relief association on active duty with the
fire department.
Sec. 4. [423C.04] [ASSOCIATION FUNDS AND ACCOUNTS.]
Subdivision 1. [DUTIES.] The association shall create,
maintain, and administer the funds and accounts in this
section. The sources of revenue and authorized disbursements of
each fund and account are governed by this section.
Subd. 2. [SPECIAL FUND; PURPOSE AND SOURCES OF
REVENUE.] (a) The special fund may only be used to pay for
defined and contingent benefits as set forth in sections 423C.05
and 423C.06; compensation for officers and board members as set
forth in section 423C.03, subdivision 3; expenses of officers
and employees of the association in connection with the
protection of the special fund; and expenses of operating,
administering, and maintaining the association as authorized by
this chapter, section 69.80, or other applicable law.
(b) The special fund is derived from the following sources:
(1) receipts from the state, including, but not limited to,
any fire state aid, any fire insurance premium surcharge amount,
or any additional amortization state aid;
(2) all money derived from taxation by the city under
section 69.77 for the support of the association and for the
payment of benefits set forth in sections 423C.05 and 423C.06;
(3) an amount equal to the minimum percentage specified in
section 69.77, subdivision 2a, of the salary of a first grade
firefighter deducted from the monthly salary of each active
member; and
(4) the proceeds of the investment of special fund assets.
Subd. 3. [GENERAL FUND.] The general fund is separate and
distinct from the special fund. The general fund may,
consistent with applicable law, be expended for those purposes
deemed appropriate by the relief association. The city finance
officer shall deduct from each active member's biweekly payroll
check a sum equal to one-half of one percent of the maximum
biweekly salary of a first grade firefighter. This sum shall be
forwarded to the association's treasurer and deposited in the
general fund. The general fund shall also consist of receipts
from private sources, such as gifts, charges, fundraising
projects, and dues paid by members; investment of, earnings on,
and interest of the general fund; and all other sources. Money
received from other sources may also be deposited in the general
fund.
Subd. 4. [HEALTH INSURANCE ACCOUNTS.] Notwithstanding any
law to the contrary, contributions of active members of the
association with at least 25 years of service made after the
25th year of service must be deposited in a separate account and
used to pay health care costs of the individual member upon
retirement. The board shall adopt rules regarding the frequency
and amounts of distributions from these accounts. A member with
an account established pursuant to this section is entitled,
upon retirement or disability, to receive periodic distributions
from the account, in the amount and with the frequency specified
by the retiring member consistent with the board's rules.
Sec. 5. [423C.05] [DEFINED BENEFITS.]
Subdivision 1. [DUTIES.] The association is authorized to
and shall pay the benefits in this section to its members in
accordance with this section. All benefits authorized in this
section shall be paid from the association's special fund.
Subd. 2. [SERVICE PENSION.] (a) An active member who has
performed duty for the fire department for five years or more,
upon written application after retiring from duty and reaching
at least age 50, is entitled to be paid monthly for life a
service pension under paragraph (b).
(b) Based on the percentage that the actuarial value of
assets of the special fund equal to the actuarial accrued
liabilities of the special fund according to the most recent
annual actuarial valuation of the relief association prepared in
accordance with sections 356.215 and 356.216, the amount of the
service pension is as follows:
Length of Service Service Service
allowable pension pension pension
service payable if payable payable if
credit under 90 if greater greater
percent than 89.99 than 92.49
percent and percent
less than
92.5 percent
5 years - 8.0 units 8.0 units
6 years - 9.6 units 9.6 units
7 years - 11.2 units 11.2 units
8 years - 12.8 units 12.8 units
9 years - 14.4 units 14.4 units
10 years 16.0 units 16.0 units 16.0 units
11 years 17.6 units 17.6 units 17.6 units
12 years 19.2 units 19.2 units 19.2 units
13 years 20.8 units 20.8 units 20.8 units
14 years 22.4 units 22.4 units 22.4 units
15 years 24.0 units 24.0 units 24.0 units
16 years 25.6 units 25.6 units 25.6 units
17 years 27.2 units 27.2 units 27.2 units
18 years 28.8 units 28.8 units 28.8 units
19 years 30.4 units 30.4 units 30.4 units
20 years 33.0 units 33.5 units 34.0 units
21 years 34.6 units 35.1 units 35.6 units
22 years 36.2 units 37.7 units 37.2 units
23 years 37.8 units 38.3 units 38.8 units
24 years 39.4 units 39.9 units 40.4 units
25 years
or more 41.0 units 41.5 units 42.0 units
(c) A member entitled to a benefit under this subdivision
may elect to have it paid as an optional retirement annuity
pursuant to the conditions set forth in subdivision 8. A member
receiving a benefit pursuant to subdivision 5 or 6 shall not
simultaneously be entitled to a benefit under this subdivision.
Subd. 3. [CALCULATION OF SERVICE PENSION FOR DEFERRED
MEMBERS.] An association member who has performed services for
the fire department for five years or more but has not reached
the age of 50 years shall be eligible to retire from the
department, without forfeiting service pension rights. The
member shall, upon application, be placed on the association's
deferred pension roll. The association shall, upon board
approval, pay the pension of any member on the deferred pension
roll who has attained 50 years of age from the date the
application is approved. The pension shall be paid in
accordance with the schedule in subdivision 2. Any person
making this application waives all other rights, claims, or
demands against the association for any cause that may have
arisen from or that may be attributable to the person's service
in the fire department. A member entitled to a benefit under
this subdivision may elect to have the benefit paid as an
optional retirement annuity pursuant to the conditions set forth
in subdivision 7.
Subd. 4. [TEMPORARY DISABILITY PENSION.] An active member
who, by sickness or accident, becomes temporarily disabled from
performing firefighter duties for the fire department shall be
entitled to a temporary disability pension. No allowance for
disability shall be made unless notice of the disability and an
application for benefits is made by or on behalf of the disabled
member within 90 days after the beginning of the disability.
This application shall include a certificate from a qualified
medical professional setting forth the cause, nature, and extent
of the disability. This certificate must also conclude that the
disability was incurred or sustained while the member was in the
service of the fire department. The board shall utilize the
board of examiners established pursuant to section 423C.03,
subdivision 6, to investigate and report on an application for
benefits pursuant to this section and make recommendations as to
eligibility and the benefit amount to be paid. A member
entitled to a disability pension shall receive benefits in the
amount and manner determined by the board.
Subd. 5. [SERVICE-RELATED PERMANENT DISABILITY
PENSION.] An active member who becomes permanently disabled as
the result of a service-related disease or injury shall, upon
application and approval of the board, be entitled to a pension
of 42 units or in the amount determined under subdivision 8.
The application for service-related permanent disability shall
include a certificate from a qualified medical professional
setting forth the permanent nature of the disability or disease
and that it was service related. The board shall utilize the
board of examiners established pursuant to section 423C.03,
subdivision 6, to investigate and make recommendations on an
application for a pension pursuant to this subdivision.
Subd. 6. [NON-SERVICE-RELATED PERMANENT DISABILITY
PENSION.] An active member who, by sickness or accident, becomes
permanently disabled from performing firefighter duties for the
fire department shall be entitled to a permanent disability
pension. No allowance for disability shall be made unless
notice of the disability and an application for benefits is made
by or on behalf of the disabled member within 90 days after the
beginning of the disability. This application shall include a
certificate from a qualified medical professional setting forth
the cause, nature, and extent of the disability. The board
shall utilize the board of examiners established pursuant to
section 423C.03, subdivision 6, to investigate and report on an
application for benefits pursuant to this section and make
recommendations as to eligibility and the benefit amount to be
paid. A member entitled to a disability pension shall receive
benefits in the amount and manner determined by the board, not
to exceed 41 units.
Subd. 7. [SURVIVING SPOUSE AND DEPENDENT
PENSIONS.] Notwithstanding any other law to the contrary, when a
service pensioner, disability pensioner, deferred pensioner, or
active member of the association dies, recipient beneficiaries
are entitled to a pension or pensions, as follows:
(1) to a surviving spouse, a pension of 22 units per month;
(2) a surviving spouse of a deceased service pensioner,
disability pensioner, or deferred pensioner who is otherwise not
qualified for a pension may receive a benefit if the surviving
spouse was legally married to the decedent for a period of two
years and was residing with the decedent at the time of death.
The surviving spouse benefit provided in this clause is the same
as that provided to those who meet the definition of surviving
spouse under section 423C.01, subdivision 25, except that if the
surviving spouse is younger than the decedent, the surviving
spouse benefit must be actuarially equivalent to a surviving
spouse benefit that would have been paid to the member's spouse
had the member been married to a person of the same or greater
age than the member's age prior to retirement. A benefit paid
in this circumstance may be less than 17 units notwithstanding
the minimum set out in this clause;
(3) to each dependent, if the dependent's other parent is
living, a pension not to exceed eight units per month.
Dependents between the ages of 18 and 22 may continue to receive
a pension upon board determination that the dependent complies
with the requirements of section 423C.01, subdivision 11, and
applicable association bylaws, except that if the dependent
marries before the age of 22 years the pension shall cease as of
the date of the marriage. The board shall make the final
determination with respect to eligibility for benefits and
compliance with section 423C.01, subdivision 11;
(4) each dependent of a deceased member after the death of
the dependent's other parent, or in the event the other parent
predeceases the member, is entitled to receive a pension in the
amount the board deems necessary to properly support each
dependent until the dependent reaches the age of not less than
16 and not more than 18 years. Dependents between the ages of
18 and 22 may be entitled to continue receiving a pension upon
board determination that the dependent complies with the
requirements of section 423C.01, subdivision 11, and applicable
association bylaws, except that if the dependent marries before
the age of 22 years the pension shall cease as of the date of
the marriage. The board shall make the final determination with
respect to eligibility for benefits and compliance; and
(5) the total pension payable to a surviving spouse and all
dependents of a deceased member shall in no event exceed 41
units per month.
Subd. 8. [OPTIONAL RETIREMENT ANNUITY ELECTION.] A member
of the association who retires under subdivision 2 or becomes
disabled under subdivision 6 may elect an optional retirement
annuity prior to the receipt of any benefits. The optional
retirement annuity may be a 50 percent, 75 percent, or 100
percent joint survivor annuity without reinstatement in the
event the designated beneficiary predeceases the member or a
joint and survivor annuity with reinstatement in the event the
member predeceases the designated beneficiary. An optional
retirement annuity must be actuarially equivalent to the service
pension and automatic survivor coverage otherwise payable to the
retired member and the member's beneficiaries. Once selected,
the optional annuity is irrevocable.
Subd. 9. [ALTERNATIVE SERVICE PENSION FOR UNMARRIED
MEMBER.] A retired member who is not legally married on
September 1, 1997, and remains unmarried on the effective date
of this article may select a service pension of 42.3 units in
lieu of a service pension under subdivision 2.
Sec. 6. [423C.06] [INVESTMENT-RELATED POSTRETIREMENT
ADJUSTMENTS.]
Subdivision 1. [ANNUAL ADJUSTMENTS.] Notwithstanding the
provisions of chapter 69, or any other law to the contrary, the
association may provide annual postretirement payments to
eligible members under this section. No provision of or payment
made under this section may be interpreted or relied upon by any
member of the association to guarantee or entitle a member to
annual postretirement adjustments for any period when the
requirements in this section have not been met.
Subd. 2. [ACTUARIAL ASSETS OF SPECIAL FUND LESS THAN 102
PERCENT.] (a) When the actuarial assets of the special fund in
any year are less than 102 percent of its accrued liabilities
according to the most recent annual actuarial valuation of the
special fund prepared in accordance with sections 356.215 and
356.216, investment-related postretirement adjustments shall be
determined and paid pursuant to this subdivision. Payment of
the annual postretirement adjustment may be made only if there
is excess investment income.
(b) The board shall determine by May 1 of each year whether
or not the special fund has excess investment income. The
amount of excess investment income, if any, must be stated as a
dollar amount and reported by the executive secretary to the
mayor and governing body of the city, the state auditor, the
commissioner of finance, and the executive director of the
legislative commission on pensions and retirement. The dollar
amount of excess investment income up to one percent of the
assets of the special fund must be applied for the purpose
specified in paragraph (c). Excess investment income must not
be considered as income to or assets of the special fund for
actuarial valuations of the special fund for that year under
this section and sections 69.77, 356.215, and 356.216, except to
offset the annual postretirement adjustment. Additional
investment income is any realized or unrealized investment
income other than the excess investment income and must be
included in the actuarial valuations performed under this
section and sections 69.77, 356.215, and 356.216.
(c) The amount determined under paragraph (b) must be
applied as follows: the association shall apply the first
one-half of one percent of assets that constitute excess
investment income to the payment of an annual postretirement
adjustment to eligible members and the second one-half of one
percent of assets which constitute excess investment income
shall be applied to reduce the state amortization state aid or
supplementary amortization state aid payments otherwise due the
association under section 423A.02 for the current calendar
year. The amounts of all payments to eligible members shall not
exceed one-half of one percent of the assets of the fund. The
amount of each eligible member's postretirement adjustment shall
be calculated by dividing the total number of units to which
eligible members are entitled into the excess investment income
available for distribution to eligible members, and then
multiplying that result by the number of units to which each
eligible member is entitled. If this amount exceeds the total
monthly benefit that the eligible member was entitled to in the
prior year under the terms of this chapter, the association
shall pay the eligible member the lesser amount. Payment of the
annual postretirement adjustment must be in a lump-sum amount on
June 1 following the determination date in any year. In the
event an eligible member dies prior to the payment of the annual
postretirement adjustment, the executive secretary shall pay the
eligible member's estate the amount to which the member was
entitled.
Subd. 3. [ACTUARIAL ASSETS OF SPECIAL FUND 102 PERCENT OR
MORE.] (a) When the actuarial assets of the special fund in any
year are 102 percent or more of its accrued liabilities
according to the most recent annual actuarial valuation of the
special fund prepared in accordance with sections 356.215 and
356.216, an investment-related postretirement adjustment shall
be determined and paid pursuant to this subdivision. Payment of
the annual postretirement adjustment may only be made if there
is excess investment income.
(b) The board shall determine by May 1 of each year whether
or not the special fund has excess investment income. The
amount of excess investment income, if any, must be stated as a
dollar amount and reported by the executive secretary to the
mayor and governing body of the city, the state auditor, the
commissioner of finance, and the executive director of the
legislative commission on pensions and retirement. The dollar
amount of excess investment income up to 1-1/2 percent of the
assets of the fund must be applied for the purpose specified in
paragraph (c). Excess investment income must not be considered
as income to or assets of the special fund for actuarial
valuations of the special fund for that year under this section
and sections 69.77, 356.215, and 356.216, except to offset the
annual postretirement adjustment. Additional investment income
is any realized or unrealized investment income other than the
excess investment income and must be included in the actuarial
valuations performed under this section and sections 69.77,
356.215, and 356.216.
(c) The amount determined under paragraph (b) must be
applied as follows: the association shall apply the 1-1/2
percent of assets that constitute excess investment income to
the payment of an annual postretirement adjustment to eligible
members. The amount of each eligible member's postretirement
adjustment shall be calculated by dividing the total number of
units to which eligible members are entitled into the excess
investment income available for distribution to eligible
members, and then multiplying that result by the number of units
to which each eligible member is entitled. Payment of the
annual postretirement adjustment must be in a lump-sum amount on
June 1 following the determination date in any year. In the
event an eligible member dies prior to the payment of the annual
postretirement adjustment, the executive secretary shall pay the
eligible member's estate the amount to which the member was
entitled.
Subd. 4. [ACTUARIAL ASSETS OF SPECIAL FUND 110 PERCENT OR
MORE.] (a) When the actuarial assets of the special fund in any
year are 110 percent or more of its accrued liabilities
according to the most recent annual actuarial valuation of the
special fund prepared in accordance with sections 356.215 and
356.216, an investment-related postretirement adjustment shall
be determined and paid pursuant to this subdivision. Payment of
the annual postretirement adjustment may be made only if a total
excess asset amount exists.
(b) The board shall determine by May 1 of each year whether
the special fund has a total excess asset amount for that year.
If a total excess asset amount exists for the given year, the
net total asset amount shall be determined. The executive
secretary shall report the total excess asset amount and net
total excess asset amount to the mayor and governing body of the
city, the state auditor, the commissioner of finance, and the
executive director of the legislative commission on pensions and
retirement. The portion of the net excess asset amount which is
distributed under this subdivision shall not be considered
income to or assets of the special fund for actuarial valuations
of the special fund for that year under sections 69.77, 356.215,
and 356.216 and Laws 2000, chapter 461, except to offset the
amount distributed.
(c) Twenty percent of the net total excess asset amount
determined under paragraph (b) is available for excess asset
amount payments under paragraph (d).
(d) Except as limited under paragraph (e), the net excess
asset amount payment to an eligible member is equal to the
amount determined under paragraph (c) multiplied by the units
applicable to the eligible member and divided by the total units
of all eligible members.
(e) A member who is an eligible member for the entire 12
months before the determination date is eligible for a full
excess asset amount payment pursuant to paragraph (d). A member
who is an eligible member for less than 12 months before the
determination date is eligible for a prorated excess asset
amount payment. If an eligible member dies before the
determination date and before the excess asset amount payment
commences, the association shall pay the eligible member's
excess asset amount payment to the eligible member's surviving
spouse or, if no surviving spouse, to the eligible member's
estate.
(f) The excess asset amount payments determined under this
subdivision commence on June 1 following the determination
date. The board may disburse payments to eligible members in a
lump sum, 12 monthly installments, or any other manner that the
board determines.
Subd. 5. [REPORT ON ANNUAL POSTRETIREMENT
ADJUSTMENTS.] The executive secretary shall submit a report on
the amount of all postretirement adjustments made under this
section and the manner in which those payments were determined
to the state auditor, the executive director of the legislative
commission on pensions and retirement, and the city clerk.
Subd. 6. [CITY TAX LEVY.] If in any year after the
actuarial value of special fund assets, according to the most
recent annual actuarial valuation prepared in accordance with
sections 356.215 and 356.216, is greater than 102 percent of the
actuarial accrued liabilities of the special fund and
subsequently the actuarial value of assets is less than 100
percent of the actuarial accrued liabilities according to the
most recent annual actuarial valuation prepared according to
sections 356.215 and 356.216, the city of Minneapolis is not
required to levy a property tax to fund any deficit unless the
fund has two successive years when the actuarial value of assets
is less than 100 percent of the actuarial accrued liabilities
according to the most recent annual actuarial valuation prepared
according to sections 356.215 and 356.216.
Sec. 7. [423C.07] [ACTUARIAL VALUATION DATE.]
Notwithstanding section 69.77, subdivision 2h, 356.215, or
356.216, the annual actuarial valuation of the association must
be completed by May 1 of each year.
Sec. 8. [423C.08] [MEMBER CONTRIBUTION REFUND TO
BENEFICIARY UPON DEATH.]
If an active, deferred, or retired member of the
association dies and no survivor benefit is payable, the
designated beneficiary of the decedent or, if none, the legal
representative of the estate of the decedent is entitled, upon
application, to a refund. The refund shall be an amount equal
to the member contributions to the credit of the decedent, plus
interest on those contributions at an annual compounded rate of
five percent from the first day of the month following the date
of death of the decedent, reduced by the sum of any service
pension or disability benefit previously paid by the fund to the
decedent.
Sec. 9. [423C.09] [PAYMENTS EXEMPT FROM PROCESS.]
All payments made, or to be made, by the association under
this chapter shall be totally exempt from garnishment,
execution, or other legal process, except as provided in section
518.58, 518.581, or 518.6111. No person entitled to a payment
shall have the right to assign the name, nor shall the
association have authority to recognize any assignment or to pay
any sum on account thereof. Any attempt to transfer any right
or claim, or any part thereof, shall be void.
Sec. 10. [423C.10] [LAW GOVERNING PENSIONS AND BENEFITS.]
A service pension or other retirement benefit for or on
behalf of a member of the Minneapolis firefighters relief
association must be calculated under the laws, articles of
incorporation, or relief association bylaws in effect on the day
that the active member terminated active employment in the
Minneapolis fire department as a firefighter.
Sec. 11. [423C.11] [WORKERS' COMPENSATION ACT NOT
AFFECTED.]
This chapter shall not be construed as abridging,
repealing, or amending the laws of this state relating to the
provisions of the law commonly known as the Workers'
Compensation Act.
Sec. 12. [423C.12] [RIGHT TO REDUCE PENSIONS.]
The relief association has the right and retains the right
to reduce the amount of pensions and benefits paid from its
special fund and to reduce and otherwise adjust those pensions
and benefits. For any pension or benefit that was reduced, the
relief association has the right and retains the right to
increase or otherwise adjust these pensions or benefits within
the limits of this chapter.
Sec. 13. [423C.13] [FINANCE DIRECTOR TO FILE REPORT WITH
THE REVENUE COMMISSIONER.]
(a) On or before March 1 each year, the Minneapolis finance
director shall file with the county auditor and the commissioner
of revenue a certificate stating that the Minneapolis
firefighters relief association exists and including any other
information that the commissioner or auditor may require.
(b) The commissioner of revenue shall provide the
Minneapolis finance director with the necessary documents for
the city of Minneapolis and the Minneapolis firefighters relief
association to carry out its duties and to receive the benefits
of sections 69.011 to 69.051, 297I.05, and 297I.10.
Sec. 14. [423C.14] [STATE AUDITOR TO EXAMINE BOOKS.]
(a) The state auditor, annually, shall examine the books
and accounts of the secretary and of the treasurer of the
Minneapolis firefighters relief association.
(b) If the state auditor finds that any money in the
special fund of the relief association was expended for purposes
that were not authorized by this chapter, the state auditor
shall report that to the governor, who shall then direct the
commissioner of finance not to issue any further warrants to the
relief association until the state auditor reports that the
money which was unlawfully expended has been replaced. The
governor additionally may take such further action as the
emergency may demand.
Sec. 15. [423C.15] [ACTUARIAL PROVISIONS.]
Subdivision 1. [CITY NORMAL COST CONTRIBUTION ADJUSTMENT.]
Notwithstanding sections 69.77, 356.215, and 356.216, or other
law to the contrary, the required city contributions toward the
association's normal cost, as determined by the actuary, are
reduced below that otherwise payable by the full amount of
active member contributions required by law to be directed to
the association's health insurance escrow account rather than to
the special fund.
Subd. 2. [SUSPENSION OF NORMAL COST
CONTRIBUTIONS.] Notwithstanding the provisions of section 69.77,
or any other law to the contrary, if a total excess asset amount
exists, as defined in section 423C.01, subdivision 27, paragraph
(a), the city is not required to make a contribution to the fund
for the normal cost of active members.
Subd. 3. [AMORTIZATION TREATMENT.] Notwithstanding section
69.77, subdivision 2b, 356.215, 356.216, or any other law to the
contrary, if the actuarial report for the Minneapolis
firefighters relief association indicates an unfunded actuarial
accrued liability, the unfunded obligation is to be amortized on
a level dollar basis by December 31 of the year occurring 15
years later. If subsequent actuarial valuations determine a net
actuarial experience loss incurred during the year which ended
as of the day before the most recent actuarial valuation date,
any unfunded liability due to that loss is to be amortized on a
level dollar basis by December 31 of the year occurring 15 years
later.
Subd. 4. [LIMITATION.] Notwithstanding subdivision 3, the
amortization period may not exceed the average life expectancy
of the remaining members.
Sec. 16. [EFFECT ON ACCRUED BENEFITS AND BENEFITS
PAYABLE.]
(a) The legislature intends by this article to recodify the
prior local laws applicable to the Minneapolis firefighters
relief association.
(b) This article is not intended to increase or reduce the
pensions or benefits currently payable to pension and benefit
recipients of the Minneapolis firefighters relief association,
except as provided in Minnesota Statutes, section 423C.05,
subdivision 9. All pensions and benefits payable from the
Minneapolis firefighters relief association in force on the
effective date of this section as reflected in the records of
the relief association as of that date continue.
(c) This article is not intended to modify, impair, or
diminish the pension or benefit entitlements accrued or service
credited to active or deferred members of the Minneapolis
firefighters relief association on the effective date of this
article as reflected in the records of the relief association as
of that date. If the secretary of the relief association
determines that any provision of this article, except as
provided in Minnesota Statutes, section 423C.05, subdivision 9,
does function to modify, impair, or diminish the pension or
benefit entitlements that had been accrued or service that had
been credited to an active or deferred relief association
member, the secretary shall certify that determination and a
recommendation as to the required legislative correction, if
any, to the chairs of the legislative commission on pensions and
retirement, the house governmental operations committee, the
senate governmental operations committee, and the executive
director of the legislative commission on pensions and
retirement.
Sec. 17. [REPEALER.]
(a) Laws 1907, chapter 24; Laws 1913, chapters 318 and 419;
Laws 1917, chapter 196; Laws 1919, chapters 515 and 523; Laws
1921, chapter 404; Laws 1923, chapter 61; and Laws 1945, chapter
322, are repealed.
(b) Laws 1959, chapter 491, is repealed. Laws 1959,
chapter 568, as amended by Extra Session Laws 1961, chapter 3,
section 1; and Laws 1973, chapter 361, section 1, is repealed.
(c) Laws 1961, chapter 109, and Extra Session Laws 1961,
chapter 3, are repealed. Laws 1963, chapter 318, as amended by
Laws 1965, chapter 578, section 1; Laws 1967, chapter 824,
section 1; and Laws 1969, chapter 287, sections 1 and 2, is
repealed. Laws 1965, chapter 519, as amended by Laws 1967,
chapter 819, section 1; Laws 1969, chapter 123, sections 1 and
2; Laws 1975, chapter 57, section 1; Laws 1977, chapter 164,
section 2; Laws 1990, chapter 589, article 1, section 5; Laws
1992, chapter 454, sections 2 and 3; Laws 1994, chapter 591,
article 1, section 1; Laws 1996, chapter 448, article 3, section
1; and Laws 1997, chapter 233, article 4, section 12, is
repealed. Laws 1965, chapter 578, as amended by Laws 1967,
chapter 824, section 1; and Laws 1969, chapter 287, section 1,
is repealed. Laws 1967, chapter 819, as amended by Laws 1969,
chapter 123, section 1; Laws 1975, chapter 57, section 1; Laws
1977, chapter 164, section 2; Laws 1990, chapter 589, article 1,
section 5; Laws 1992, chapter 454, sections 2 and 3; Laws 1994,
chapter 591, article 1, section 1; Laws 1996, chapter 448,
article 3, section 1; and Laws 1997, chapter 233, article 4,
section 12, is repealed. Laws 1967, chapter 824, as amended by
Laws 1969, chapter 287, section 1, is repealed. Laws 1969,
chapter 123, as amended by Laws 1975, chapter 57, section 1;
Laws 1977, chapter 164, section 2; Laws 1990, chapter 589,
article 1, section 5; Laws 1992, chapter 454, sections 2 and 3;
Laws 1994, chapter 591, article 1, section 1; Laws 1996, chapter
448, article 3, section 1; and Laws 1997, chapter 233, article
4, section 12, is repealed. Laws 1969, chapter 287, is repealed.
(d) Laws 1971, chapter 542, as amended by Laws 1993,
chapter 125, article 1, section 1, is repealed. Laws 1975,
chapter 57, as amended by Laws 1977, chapter 164, section 2;
Laws 1990, chapter 589, article 1, section 5; Laws 1992, chapter
454, sections 2 and 3; Laws 1995, chapter 591, article 1,
section 1; Laws 1996, chapter 448, article 3, section 1; and
Laws 1997, chapter 233, article 4, section 12, is repealed.
Laws 1977, chapter 164, section 2, as amended by Laws 1990,
chapter 589, article 1, section 5; Laws 1992, chapter 454,
sections 2 and 3; Laws 1994, chapter 591, article 1, section 1;
Laws 1996, chapter 448, article 3, section 1; and Laws 1997,
chapter 233, article 4, section 12, is repealed.
(e) Laws 1980, chapter 607, article XV, sections 8, as
amended by Laws 1992, chapter 471, article 2, section 2; 9, as
amended by Laws 1987, chapter 322, section 6; Laws 1987, chapter
372, article 2, section 5; Laws 1992, chapter 471, article 2,
section 2; and Laws 1993, chapter 125, article 1, section 1; and
10, as amended by Laws 1992, chapter 471, article 2, section 3,
is repealed. Laws 1988, chapters 572, section 4; and 574,
section 3, are repealed. Laws 1989, chapter 319, article 19,
sections 6, as amended by Laws 1992, chapter 471, article 2,
section 4; and 7, as amended by Laws 1990, chapter 570, article
12, section 63; Laws 1992, chapter 471, article 2, sections 5
and 6; Laws 1996, chapter 438, article 4, sections 12 and 13;
and Laws 1997, chapter 233, article 4, sections 13 to 16, is
repealed.
(f) Laws 1990, chapter 589, article 1, sections 5, as
amended by Laws 1996, chapter 448, article 3, section 1; and
Laws 1997, chapter 233, article 4, section 12; and 6, as amended
by Laws 1992, chapter 471, article 2, section 7, is repealed.
Laws 1992, chapter 429, is repealed. Laws 1992, chapter 454,
section 2, as amended by Laws 1994, chapter 591, article 1,
section 1; Laws 1996, chapter 448, article 3, section 1; and
Laws 1997, chapter 233, article 4, section 12, is repealed.
Laws 1992, chapter 471, article 2, as amended by Laws 1996,
chapter 438, article 4, sections 12 and 13; and Laws 1997,
chapter 233, article 4, sections 13 and 15, is repealed. Laws
1993, chapter 125, as amended by Laws 1997, chapter 233, article
4, section 17, is repealed. Laws 1993, chapter 192, section 32,
is repealed. Laws 1994, chapter 591, as amended by Laws 1997,
chapter 233, article 4, section 12, is repealed. Laws 1994,
chapter 632, article 3, section 14; Laws 1996, chapter 448,
articles 2, section 3; and 3, section 1; Laws 1997, chapter 233,
article 4, sections 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, and
22; Laws 1998, chapter 390, article 7, section 2; and Laws 2000,
chapter 461, article 17, sections 6, 7, 8, 9, 10, 11, 12, and
13, are repealed.
Sec. 18. [EFFECTIVE DATE.]
Sections 1 to 16 are effective on July 1, 2001, or on the
day after the city council of the city of Minneapolis and its
chief clerical officer timely complete their compliance with
Minnesota Statutes, section 645.021, subdivisions 2 and 3,
whichever is later.
ARTICLE 16
VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION PROVISIONS
Section 1. Minnesota Statutes 2000, section 424A.04, is
amended by adding a subdivision to read:
Subd. 3. [CONDITIONS ON RELIEF ASSOCIATION
CONSULTANTS.] (a) If a volunteer firefighter relief association
hires or contracts with a consultant to provide legal or
financial advice, the association shall obtain and the
consultant shall provide a copy of the consultant's certificate
of insurance.
(b) A consultant is any person who is employed under
contract to provide legal or financial advice and who is or who
represents to the volunteer firefighter relief association that
the person is:
(1) an actuary;
(2) a licensed public accountant or a certified public
accountant;
(3) an attorney;
(4) an investment advisor or manager, or an investment
counselor;
(5) an investment advisor or manager selection consultant;
(6) a pension benefit design advisor or consultant; or
(7) any other financial consultant.
Sec. 2. [EFFECTIVE DATE.]
Section 1 is effective July 1, 2001.
ARTICLE 17
ONE PERSON OR SMALL GROUP SERVICE CREDIT PURCHASES
Section 1. [TEACHERS RETIREMENT ASSOCIATION; SABBATICAL
LEAVE OF ABSENCE SERVICE CREDIT PURCHASE.]
(a) An eligible person described in paragraph (b) is
entitled to purchase 0.34 of a year of allowable and formula
service credit from the teachers retirement association.
(b) An eligible person is a person who:
(1) was born on August 7, 1942;
(2) was employed by independent school district No. 11,
Anoka-Hennepin, on August 28, 1970;
(3) was on a sabbatical leave of absence from July 1, 1977,
to June 30, 1978; and
(4) due to inadvertent clerical error by independent school
district No. 11, Anoka-Hennepin, did not have full contributions
for the sabbatical leave made in a timely fashion and 0.654 of a
year of service credit was credited rather than one year of
service for the sabbatical leave.
(c) To purchase the service credit under this section, the
eligible person must pay to the teachers retirement association
the amount of the shortage in member contributions for the
sabbatical leave period plus interest from June 30, 1978, to the
date on which payment is made at an annual compound rate of 8.5
percent. Authority to make this payment expires on July 1,
2002, or the date of termination of service, whichever is
earlier.
(d) If the eligible person makes the payment required in
paragraph (c) in a timely manner, independent school district
No. 11, Anoka-Hennepin, may pay the balance of the full prior
service credit purchase payment amount calculated under
Minnesota Statutes, section 356.55 or 356.551, whichever
applies. If independent school district No. 11, Anoka-Hennepin,
does not pay the balance within 30 days of notification by the
executive director of the teachers retirement association of the
payment of the member contribution payment by the eligible
person under paragraph (c), the executive director shall notify
the commissioner of finance of that fact and the commissioner
shall deduct from any state aid payable to independent school
district No. 11, Anoka-Hennepin, that amount, plus interest on
that amount of 1.5 percent per month for each month or portion
of a month that has elapsed from the effective date of this
section.
(e) The eligible person shall provide any relevant
documentation related to eligibility to make this service credit
purchase that is required by the executive director of the
teachers retirement association.
Sec. 2. [TEACHERS RETIREMENT ASSOCIATION; PURCHASE OF
EXTENDED LEAVE OF ABSENCE SERVICE CREDIT.]
(a) An eligible person, as described in paragraph (b), is
entitled to purchase allowable and formula service credit in the
teachers retirement association for the period specified in
paragraph (c) by making the payment specified in Minnesota
Statutes, section 356.55.
(b) An eligible person is a person who:
(1) was born on May 25, 1948;
(2) was employed by the Hutchinson public schools for 26
years;
(3) was granted an extended leave of absence on May 27,
1997; and
(4) due to a clerical error within the person's electrical
business, omitted payment of contributions under Minnesota
Statutes, section 354.094, for the 1997-1998 school year.
(c) The prior service credit purchase period is the
1997-1998, 1998-1999, and 1999-2000 school years.
(d) The service credit purchase authority expires on August
31, 2001, or the date of the person's retirement, whichever is
earlier.
Sec. 3. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE
OF PREVIOUSLY UNCREDITED WHITE BEAR LAKE PUBLIC SCHOOL CLERICAL
SERVICE.]
(a) An eligible person described in paragraph (b) is
entitled to receive credit for one year of allowable service
from the public employees retirement association on August 31,
2001.
(b) An eligible person is a person who:
(1) was born on July 24, 1939;
(2) was initially employed by independent school district
No. 624, White Bear Lake, as a casual clerical employee on March
15, 1971;
(3) was subsequently employed as a full-time clerical
employee by independent school district No. 624, White Bear
Lake, from the 1973-1974 school year until the 1990-1991 school
year;
(4) was subsequently employed as a teacher by independent
school district No. 624, White Bear Lake, from August 26, 1991;
and
(5) was not included in coverage by the public employees
retirement association for full-time clerical employment during
the 1973-1974 school year.
(c) The prior service credit purchase payment must be
determined under Minnesota Statutes, section 356.55 or 356.551,
whichever provision is in effect, and must include the impact of
the purchase on the eligible person's prospective retirement
annuity from the teachers retirement association.
Notwithstanding any provision of Minnesota Statutes, section
356.55 or 356.551, to the contrary, independent school district
No. 624, White Bear Lake, is obligated to pay the full required
service credit payment, including any amount attributable to the
teachers retirement association. If the school district does
not make payment of the service credit purchase amount by August
31, 2001, the executive director of the public employees
retirement association and the executive director of the
teachers retirement association shall notify the commissioner of
finance of the school district's failure. Following
notification, the commissioner of finance shall deduct the
required amount from any state aid otherwise payable to
independent school district No. 624, White Bear Lake, and shall
transfer the appropriate amounts to the public employees
retirement fund and the teachers retirement fund.
(d) The eligible person must provide the executive director
of the public employees retirement association with necessary
documentation of the applicability of this section and with any
other relevant information that the executive director may
require.
Sec. 4. [MINNEAPOLIS TEACHERS RETIREMENT FUND ASSOCIATION;
SERVICE CREDIT PURCHASE AUTHORIZATION.]
(a) Notwithstanding any provision of law to the contrary,
an eligible person described in paragraph (b) is authorized to
purchase allowable service credit under procedures specified in
Minnesota Statutes, section 356.55 or 356.551, whichever is in
effect, from the Minneapolis teachers retirement fund
association for the period described in paragraph (c).
(b) An eligible person is a person who:
(1) was born on July 21, 1941;
(2) initially was employed as a teacher by independent
school district No. 281, Robbinsdale, in December 1962;
(3) began employment as a teacher in special school
district No. 1, Minneapolis, in August 1985;
(4) currently is a special education teacher at the Webster
open school; and
(5) had no retirement contributions or social security
contributions withheld from compensation by special school
district No. 1, Minneapolis, for the 1985-1986 school year.
(c) The allowable service credit purchase period is the
1985-1986 school year.
(d) The eligible person must provide all relevant
documentation of the applicability of the requirements set forth
in paragraph (b) and any other applicable information that the
executive director of the Minneapolis teachers retirement fund
association may request.
(e) Allowable service credit for the purchase period must
be granted by the Minneapolis teachers retirement fund
association to the eligible person upon the receipt of the
payment amounts. If the service credit purchase created
additional liabilities in the teachers retirement association,
the applicable portion of the full payment amounts must be
transferred to that association.
(f) The prior service credit purchase authority expires on
September 1, 2001, or on the date of the termination of active
teaching service with special school district No. 1,
Minneapolis, by the eligible person, whichever occurs earlier.
Sec. 5. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT
OF OMITTED SALARY DEDUCTIONS.]
Subdivision 1. [APPLICATION.] A person who was born on
February 1, 1961, who was employed by Lac qui Parle county in
March 1989, June 1989, and July 1989, but who first had public
employees retirement association member contributions deducted
in August 1989, is entitled to purchase service credit from the
public employees retirement association for the service in
March, June, and July 1989.
Subd. 2. [PAYMENT.] (a) The purchase payment amount for
the service credit purchase authorized in subdivision 1 is
governed by Minnesota Statutes, section 356.55 or 356.551,
whichever is applicable.
(b) To purchase the allowable service credit, the eligible
person must pay an amount equal to the employee contribution
rate or rates in effect during the service credit purchase
period applied to the actual salary in effect during that
period, plus 8.5 percent compound annual interest from the date
the contributions should have been made until the date of actual
payment.
(c) Upon receipt of the payment by the eligible person as
specified under paragraph (b), the executive director of the
public employees retirement association shall notify the chief
administrative officer of Lac qui Parle county of that fact.
Within 30 days of that notification, Lac qui Parle county shall
pay to the public employees retirement association the balance
of the service credit purchase payment amount under Minnesota
Statutes, section 356.55 or 356.551, whichever is in effect,
that is not paid by the eligible person.
(d) If Lac qui Parle county does not make the payments
required by paragraph (c) in a timely fashion, the executive
director of the public employees retirement association shall
notify the commissioner of finance, who shall then deduct the
required amounts from any state aid payable to the county, plus
interest at the rate of one percent per month or part of a month
that has elapsed since the date on which the eligible person
made payment under paragraph (b).
Subd. 3. [APPLICATION; DOCUMENTATION.] A person described
in subdivision 1 must apply to the executive director of the
public employees retirement association to make the purchase.
The application must be on a form provided by the executive
director and must include all necessary documentation of the
applicability of this section and any other relevant information
that the executive director may require.
Subd. 4. [LIMITATION.] Authority under this section
expires on July 1, 2002, or upon termination of service,
whichever is earlier.
Sec. 6. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PAYMENT
OF OMITTED SALARY DEDUCTION.]
Subdivision 1. [APPLICATION.] (a) An eligible person
described in paragraph (b) and an eligible person described in
paragraph (c) are authorized to purchase service credit in the
public employees retirement association general plan for the
period specified in paragraph (d).
(b) An eligible person is a person who:
(1) was born on February 11, 1948;
(2) is currently a member of the public employees
retirement association general plan; and
(3) is currently employed by the Minneapolis park board and
was first employed by that board on March 8, 1983.
(c) An eligible person is a person who:
(1) was born on August 12, 1936;
(2) is currently a member of the public employees
retirement association general plan; and
(3) is currently employed by the Minneapolis park board and
was first employed by that board on April 4, 1983.
(d) The service credit purchase period is any period of
previously uncredited service, unless properly excluded under
law, during which the eligible person in paragraph (b) or (c),
as applicable, was employed by the Minneapolis park board
following the date on which, under applicable requirements of
public employees retirement association law, the applicable
eligible person should have been reported for plan membership.
Subd. 2. [PAYMENT.] The purchase payment for the service
credit purchases authorized in subdivision 1 is governed by
Minnesota Statutes, section 356.55 or 356.551, whichever is
applicable.
Subd. 3. [DOCUMENTATION.] A person described in
subdivision 1 must apply to the executive director of the public
employees retirement association to make the purchase. The
application must be in writing and must include all necessary
documentation of the applicability of this section and any other
relevant information required by the executive director.
Subd. 4. [APPLICATION DATE.] Authority to purchase service
credit under this section terminates on January 1, 2002, or upon
termination of the applicable person from service.
Sec. 7. [PERA-COORDINATED RETIREMENT PLAN; SERVICE CREDIT
PURCHASE AUTHORIZED.]
(a) Notwithstanding any provision of law to the contrary,
an eligible person described in paragraph (b) is authorized to
purchase allowable service credit from the coordinated plan of
the public employees retirement system for the period described
in paragraph (c) by making a prior service credit purchase
payment required under Minnesota Statutes, section 356.55 or
356.551, whichever is applicable. Notwithstanding the authority
in these sections, neither the Minneapolis employees retirement
fund nor the city of Minneapolis is authorized to pay any
portion of the purchase payment amount.
(b) An eligible person is a person who:
(1) is a current employee of the Minneapolis employees
retirement fund and is a current member of the coordinated plan
of the public employees retirement association and an inactive
member of the unclassified retirement plan of the Minnesota
state retirement system;
(2) was born on April 26, 1949;
(3) was employed as a full-time instructor temporary
classification on August 15, 1981, by the accounting department,
Carlson school of management, University of Minnesota; and
(4) was subsequently reappointed annually as a full-time
instructor temporary classification for an additional three
years and terminated employment on August 14, 1985.
(c) The allowable service credit purchase period is the
period described in paragraph (b), clauses (3) and (4).
(d) The eligible person must provide all relevant
documentation of the applicability of the requirements in
paragraph (b) and any other applicable information that the
executive director of the public employees retirement
association may request.
(e) Allowable service credit for the purchase period must
be granted by the coordinated plan of the public employees
retirement fund to the eligible person upon receipt of the prior
service credit purchase payment amount.
(f) The prior service credit purchase authority expires on
July 1, 2002, or on the date of termination of active service
covered by the public employees retirement association by the
eligible person, whichever occurs earlier.
Sec. 8. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE
OF PRIOR SERVICE CREDIT.]
Subdivision 1. [AUTHORIZATION.] A member of the public
employees retirement association police and fire plan who was
born on August 2, 1951, who was employed by the city of Brainerd
as a police officer before February 29, 1996, and who has at
least three years of allowable service credit with the public
employees retirement association police and fire fund is
entitled to purchase up to ten years of allowable service credit
for employment by the city of Brainerd as a full-time police
officer in a position that was not covered by the police and
fire fund but was covered by a local relief association governed
by Minnesota Statutes, section 69.77. This authorization
applies notwithstanding any contrary provision of Minnesota
Statutes, section 353A.10. To purchase service credit, an
eligible person must make payments required under Minnesota
Statutes, section 356.55 or 356.551, whichever is applicable.
This authorization applies only if the person is not entitled to
receive a current or deferred service pension or retirement
annuity or a current disability benefit from another Minnesota
public pension plan, including a local police relief
association, for that service.
Subd. 2. [APPLICATION AND DOCUMENTATION.] A person who
desires to purchase service credit under subdivision 1 must
apply in writing with the executive director of the public
employees retirement association to make the purchase. The
application must include all necessary documentation of the
person's qualifications to make the purchase, signed written
permission to allow the executive director to request and
receive necessary verification of applicable facts and
eligibility requirements, and any other relevant information
that the executive director may require.
Subd. 3. [SERVICE CREDIT GRANT.] Allowable service credit
for the purchase period must be granted by the public employees
retirement association to the purchasing person only upon
receipt of the purchase payment amount. Payment must be made
before the person's effective date of retirement.
Sec. 9. [PUBLIC EMPLOYEES RETIREMENT ASSOCIATION; PURCHASE
OF SERVICE FOR UNCREDITED SERVICE AS A MEMBER OF THE ST. PAUL
CITY COUNCIL.]
Subdivision 1. [APPLICABILITY.] This section applies to a
person:
(1) who was born September 10, 1938;
(2) who began service as a member of the St. Paul city
council in 1970;
(3) who was eligible for membership in the public employees
retirement association for the period from July 1, 1974, to
March 31, 1975;
(4) for whom no employer contributions were paid and no
employee contributions deducted by the city of St. Paul for the
period described in clause (3); and
(5) who retired September 1, 2000, and is currently
receiving retirement annuities from the St. Paul teachers
retirement fund association, the public employees retirement
association general plan, and the Minnesota state retirement
system general plan.
Subd. 2. [PURCHASE OF SERVICE.] (a) A person described in
subdivision 1 may purchase service credit under Minnesota
Statutes, section 356.55, in the public employees retirement
association general plan for the period described in subdivision
1, clause (3).
(b) To purchase the allowable service credit, the eligible
person must pay an amount equal to the employee contribution
rate or rates in effect during the service credit purchase
period applied to the actual salary in effect during that
period, plus 8.5 percent compound annual interest from the date
the contributions should have been made until the date of actual
payment.
(c) Upon receipt of the payment under paragraph (b) by the
eligible person, the executive director of the public employees
retirement association shall notify the chief administrative
officer of the city of St. Paul of that fact. Within 30 days of
that notification, the city of St. Paul shall pay to the public
employees retirement association the balance of the service
credit purchase payment amount under Minnesota Statutes, section
356.55, that is not paid by the eligible person.
(d) If the city of St. Paul does not make the payments
required by paragraph (c) in a timely fashion, the executive
director of the public employees retirement association shall
notify the commissioner of finance, who shall then deduct the
required amounts from any state aid payable to the city, plus
interest at the rate of one percent per month or part of a month
that has elapsed since the date on which the eligible person
made payment under paragraph (b).
Subd. 3. [APPLICATION; DOCUMENTATION.] A person described
in subdivision 1 must apply to the executive director of the
public employees retirement association to make the purchase.
The application must be on a form provided by the executive
director and must include all necessary documentation of the
applicability of this section and any other relevant information
that the executive director may require.
Subd. 4. [LIMITATION.] Authority under this section
expires on September 1, 2001.
Subd. 5. [BENEFIT REVISION DATE.] The annuity of the
eligible individual under subdivision 1 is to be revised on the
first day of the month following the month in which the full
purchase price determined under subdivision 2 is received by the
public employees retirement association.
Subd. 6. [LUMP-SUM PAYMENT.] The public employees
retirement association shall also pay the person described in
subdivision 1 a lump-sum amount equal to the difference between
the annuity received from the association from September 1,
2000, to the date of payment for the service credit and the
amount the person would have received with the additional
service credit purchased under this section.
Sec. 10. [PUBLIC EMPLOYEES POLICE AND FIRE PLAN; PURCHASE
OF SERVICE CREDIT FOR EMPLOYEE ERRONEOUSLY ENROLLED IN
PERA-GENERAL.]
(a) Notwithstanding any provision of law to the contrary,
because the legislature determines that the township made a
mistake in 1983 concerning the retirement coverage of the
part-time town constable, an eligible person described in
paragraph (b) is authorized to elect to transfer past service
credit for the period May 5, 1983, to August 29, 1987, in the
general employee retirement plan of the public employees
retirement association to the public employees police and fire
retirement plan. The transfer includes the transfer of assets
provided for in paragraph (c). The transfer occurs following
the receipt by the executive director of the public employees
retirement association of the payment amounts specified in
paragraphs (d) and (e).
(b) An eligible person is a person who:
(1) was born on October 23, 1956;
(2) was hired as a part-time town constable by White Bear
township from May 5, 1983, to August 29, 1987; and
(3) was covered by the general employees retirement plan of
the public employees retirement association rather than the
public employees police and fire retirement plan for this public
safety employer service.
(c) Assets equal to 86.31 percent of the actuarial accrued
liability of the general employees retirement plan of the public
employees retirement association determined with respect to the
eligible person by the actuary retained by the legislative
commission on pensions and retirement in accordance with
Minnesota Statutes, section 356.215, must be transferred from
the general employees retirement fund to the public employees
police and fire retirement fund. The expense of the legislative
commission on pensions and retirement related to these
calculations must be reimbursed by the public employees police
and fire fund. The transfer of assets must be made within 30
days of the date on which the eligible employee elects to
transfer past service credit to the public employees police and
fire retirement plan.
(d) To obtain the service credit transfer under this
section, the eligible person must pay to the public employees
police and fire retirement plan the difference between the
member contribution rate of the general employees retirement
plan of the public employees retirement association and the
member contribution rate of the public employees police and fire
retirement plan for the period May 5, 1983, to August 29, 1987,
applied to the eligible person's average salary for that period,
plus 8.5 percent compound annual interest on the total from July
1, 1985, to the date of payment. Authority for the eligible
person to make the payment under this paragraph expires on July
1, 2002.
(e) If the eligible person makes the required payment under
paragraph (d) in a timely manner, the executive director of the
public employees retirement association shall notify the
clerk-treasurer of White Bear township of that fact. Within 30
days of that notification, White Bear township shall pay to the
public employees police and fire fund: (1) the balance of the
payment amount calculated under Minnesota Statutes, section
356.55 or 356.551, whichever is in effect, that exceeds the
total of the amount transferred under paragraph (c) and the
amount paid by the eligible person under paragraph (d); and (2)
the cost associated with the actuarial calculation under
paragraph (c). If White Bear township does not make the payment
required by this paragraph in a timely fashion, the executive
director of the public employees retirement association shall
notify the commissioner of finance of that fact, who shall then
deduct the required amount from any subsequent state aid or
other state payments to the township, plus interest at the rate
of one percent per month or a part of a month that has elapsed
since the date on which the eligible person made payment under
paragraph (d).
(f) The eligible person must elect to make the service
credit transfer on a form prescribed by the executive director
of the public employees retirement association. The eligible
person must supply all necessary documentation of the
applicability of this section and any other relevant information
that the executive director may require.
(g) Authority under this section expires on July 1, 2002,
or upon the retirement of the eligible person from the general
employees retirement plan of the public employees retirement
association or from the public employees police and fire
retirement plan, whichever is earlier.
Sec. 11. [REPEALER.]
Section 8 is repealed effective May 16, 2002.
Sec. 12. [EFFECTIVE DATE.]
Sections 1 to 10 are effective the day following final
enactment.
ARTICLE 18
ELECTIONS
Section 1. Minnesota Statutes 2000, section 10A.31,
subdivision 3a, is amended to read:
Subd. 3a. [QUALIFICATION OF POLITICAL PARTIES.] (a) A
major political party qualifies for inclusion on the income tax
form and property tax refund return as provided in subdivision 3
if it qualifies as a major political party by July 1 of the
taxable year.
(b) A minor political party qualifies for inclusion on the
income tax form and property tax refund return as provided in
subdivision 3 if the secretary of state certifies to the
commissioner of revenue it qualifies as a minor party statewide
by July 1 of the taxable year that the party satisfies the
following conditions:
(1) in the last general election, the party ran a candidate
for the office of governor and lieutenant governor, secretary of
state, state auditor, or attorney general, who received votes in
each county that in the aggregate total at least one percent of
the total number of individuals who voted in the election;
(2) it is a political party, not a principal campaign
committee; and
(3) it has held a state convention in the last two years
and an officer of the party has filed with the secretary of
state a certification to that effect.
(c) The secretary of state shall notify each major and
minor political party by the first Monday in January of each
odd-numbered year of the conditions necessary for the party to
participate in income tax form and property tax refund return
programs.
(d) The secretary of state shall notify each political
party, the commissioner of revenue, and the campaign finance and
public disclosure board by July 1 of each year and following
certification of the results of each general election of the
political parties that qualify for inclusion on the income tax
form and property tax refund return as provided in subdivision 3.
Sec. 2. Minnesota Statutes 2000, section 10A.31,
subdivision 7, is amended to read:
Subd. 7. [DISTRIBUTION OF GENERAL ACCOUNT.] (a) Within two
weeks after certification by the state canvassing board of As
soon as the board has obtained the results of the general
primary election from the secretary of state, but no later than
one week after certification of the primary results by the state
canvassing board, the board must distribute the available money
in the general account, as certified by the commissioner of
revenue on November September 1 and according to allocations set
forth in subdivision 5, in equal amounts to all candidates of a
major political party whose names are to appear on the ballot in
the general election and who:
(1) have signed a spending limit agreement under section
10A.322;
(2) have filed the affidavit of contributions required by
section 10A.323;
(3) have filed the agreement required under paragraph (c);
and
(3) (4) were opposed in either the primary election or the
general election; and.
(4) are either a candidate for statewide office who
received at least five percent of the votes cast in the general
election for that office or a candidate for legislative office
who received at least ten percent of the votes cast in the
general election for that seat.
(b) The public subsidy under this subdivision may not be
paid in an amount that would cause the sum of the public subsidy
paid from the party account plus the public subsidy paid from
the general account to exceed 50 percent of the expenditure
limit for the candidate or 50 percent of the expenditure limit
that would have applied to the candidate if the candidate had
not been freed from expenditure limits under section 10A.25,
subdivision 10. Money from the general account not paid to a
candidate because of the 50 percent limit must be distributed
equally among all other qualifying candidates for the same
office until all have reached the 50 percent limit or the
balance in the general account is exhausted.
(c) No later than one week after the primary results have
been certified by the state canvassing board, a candidate
wishing to receive money distributed by the board under this
subdivision must execute and file an agreement with the board.
The agreement must provide that:
(1) if the candidate does not expend or promise to disburse
50 percent of the money distributed by the board under this
subdivision no later than the end of the final reporting period
preceding the general election, then the candidate agrees to
repay to the board the remainder of the money distributed to the
candidate under this subdivision no later than six months
following the date of the general election; and
(2) the candidate agrees to reimburse the board for all
reasonable costs, including litigation costs, incurred in
collecting any amount due following that date.
If the board determines that a candidate has failed to
repay money as required by an agreement under this subdivision,
the board may not distribute any additional money to the
candidate under this subdivision until the entirety of the
unexpended money is repaid or discharged.
Sec. 3. Minnesota Statutes 2000, section 103C.311,
subdivision 1, is amended to read:
Subdivision 1. [SUPERVISORS ELECTED AT LARGE.] (a) The
district board, after the initial election has been held, shall,
with the approval of the state board, divide a district into
five supervisor districts for purposes of nomination for
election. At each election after the division, one or more
supervisors shall be nominated from each supervisor district. A
supervisor must be a resident of the supervisor district to be
elected.
(b) If the boundary of a soil and water conservation
district has been substantially changed by a division of the
district, the district shall be divided into five supervisor
districts for nomination purposes.
(c) This subdivision does not disqualify a supervisor
during the term for which the supervisor was elected or
nominated for election. Supervisors nominated from the
supervisor districts shall be included on the ballot for
election from the entire area included in the soil and water
conservation district.
(d) A certified copy of the minutes or the resolution of
the supervisors establishing supervisor districts must be
promptly filed by the chair of the district board with the
county auditor of the counties where the district is located and
with the state board.
Sec. 4. Minnesota Statutes 2000, section 200.02,
subdivision 7, is amended to read:
Subd. 7. [MAJOR POLITICAL PARTY.] (a) "Major political
party" means a political party that maintains a party
organization in the state, political division or precinct in
question and: (a) which that has presented at least one
candidate for election to a partisan office the office of:
(1) governor and lieutenant governor, secretary of state,
state auditor, or attorney general at the last preceding state
general election for those offices; or
(2) presidential elector or U.S. senator at the last
preceding state general election, which for presidential
electors; and
whose candidate received votes in each county in that
election and received votes from not less than five percent of
the total number of individuals who voted in that election; or.
(b) "Major political party" also means a political party
that maintains a party organization in the state, political
subdivision, or precinct in question and whose members present
to the secretary of state a petition for a place on the state
partisan primary ballot, which petition contains signatures of a
number of the party members equal to at least five percent of
the total number of individuals who voted in the preceding state
general election.
(c) A political party whose candidate receives a sufficient
number of votes at a state general election described in
paragraph (a) becomes a major political party as of January 1
following that election and retains its major party status
notwithstanding that the party fails to present a candidate who
receives the number and percentage of votes required under
paragraph (a) at the following state general election.
(d) A major political party whose candidates fail to
receive the number and percentage of votes required under
paragraph (a) at either state general election described by
paragraph (a) loses major party status as of December 31
following the most recent state general election.
Sec. 5. Minnesota Statutes 2000, section 200.02,
subdivision 23, is amended to read:
Subd. 23. [MINOR POLITICAL PARTY.] (a) "Minor political
party" means a political party that is not a major political
party as defined by subdivision 7 and that has adopted a state
constitution, designated a state party chair, held a state
convention in the last two years, filed with the secretary of
state no later than December 31 following the most recent state
general election a certification that the party has met the
foregoing requirements, and met the requirements of paragraph
(b) or (c) (e), as applicable.
(b) To be considered a minor party in all elections
statewide, the political party must have presented at least one
candidate for a partisan office voted on statewide election to
the office of:
(1) governor and lieutenant governor, secretary of state,
state auditor, or attorney general, at the last preceding state
general election for those offices; or
(2) presidential elector or U.S. senator at the preceding
state general election for presidential electors; and
who received votes in each county that in the aggregate
equal at least one percent of the total number of individuals
who voted in the election, or its members must have presented to
the secretary of state a nominating petition in a form
prescribed by the secretary of state containing the signatures
of party members in a number equal to at least one percent of
the total number of individuals who voted in the preceding state
general election.
(c) A political party whose candidate receives a sufficient
number of votes at a state general election described in
paragraph (b) becomes a minor political party as of January 1
following that election and retains its minor party status
notwithstanding that the party fails to present a candidate who
receives the number and percentage of votes required under
paragraph (b) at the following state general election.
(d) A minor political party whose candidates fail to
receive the number and percentage of votes required under
paragraph (b) at either state general election described by
paragraph (b) loses minor party status as of December 31
following the most recent state general election.
(c) (e) To be considered a minor party in an election in a
legislative district, the political party must have presented at
least one candidate for a legislative office in that district
who received votes from at least ten percent of the total number
of individuals who voted for that office, or its members must
have presented to the secretary of state a nominating petition
in a form prescribed by the secretary of state containing the
signatures of party members in a number equal to at least ten
percent of the total number of individuals who voted in the
preceding state general election for that legislative office.
Sec. 6. [200.039] [PETITION REQUIREMENTS FOR BALLOT
QUESTIONS.]
If a statute:
(1) provides that a ballot question may or must be placed
on the ballot when a specified number of individuals have signed
a petition; and
(2) specifies the number of individuals required under the
statute as a percentage of the individuals who voted in a
previous election, the statute must be construed to mean that
the petition must be signed by a number of current voters equal
to the required percentage specified in the statute. The
statute must not be construed to restrict the eligibility to
sign the petition to only those individuals who were eligible to
cast ballots or who did cast ballots in the previous election.
Sec. 7. Minnesota Statutes 2000, section 201.016,
subdivision 1a, is amended to read:
Subd. 1a. [VIOLATIONS; PENALTY.] (a) The county auditor
shall mail a violation notice to any voter who the county
auditor can determine has voted in a precinct other than the
precinct in which the voter maintains residence. The notice
must be in the form provided by the secretary of state. The
county auditor shall also change the status of the voter in the
statewide registration system to "challenged" and the voter
shall be required to provide proof of residence to either the
county auditor or to the election judges in the voter's precinct
before voting in the next election. Any of the forms authorized
by section 201.061 for registration at the polling place may be
used for this purpose.
(b) A voter who votes in a precinct other than the precinct
in which the voter maintains residence after receiving an
initial violation notice as provided in this subdivision is
guilty of a petty misdemeanor. Any subsequent violation
(c) A voter who votes in a precinct other than the precinct
in which the voter maintains residence after having been found
to have committed a petty misdemeanor under paragraph (b) is
guilty of a misdemeanor.
(d) Reliance by the voter on inaccurate information
regarding the location of the voter's polling place provided by
the state, county, or municipality is an affirmative defense to
a prosecution under this subdivision.
Sec. 8. Minnesota Statutes 2000, section 201.022, is
amended to read:
201.022 [STATEWIDE REGISTRATION SYSTEM.]
Subdivision 1. [ESTABLISHMENT.] The secretary of state
shall develop and implement maintain a statewide voter
registration system to facilitate voter registration and to
provide a central database containing voter registration
information from around the state. The system must be
accessible to the county auditor of each county in the state.
Subd. 2. [RULES.] The secretary of state shall make
permanent rules necessary to administer the system required in
subdivision 1. The rules must at least:
(1) provide for voters to submit their registration to any
county auditor, the secretary of state, or the department of
public safety;
(2) provide for the establishment and maintenance of a
central database for all voter registration information;
(3) provide procedures for entering data into the statewide
registration system;
(4) provide for interaction with the computerized driver's
license records of the department of public safety;
(5) allow the offices of all county auditors and the
secretary of state to add, modify, and delete information from
the system to provide for accurate and up-to-date records;
(6) allow the offices of all county auditors and the
secretary of state's office to have access to the statewide
registration system for review and search capabilities;
(7) provide security and protection of all information in
the statewide registration system and to ensure that
unauthorized entry is not allowed;
(8) provide a system for each county to identify the
precinct to which a voter should be assigned for voting
purposes; and
(9) prescribe a procedure for phasing in or converting
existing computerized records to the statewide registration
system;
(10) prescribe a procedure for the return of completed
voter registration forms from the department of public safety to
the secretary of state or the county auditor; and.
(11) provide alternate procedures, effective until December
31, 1990, for updating voter records and producing polling place
rosters for counties. The secretary of state shall determine no
later than June 1, 1990, whether these alternate procedures will
be required.
Sec. 9. Minnesota Statutes 2000, section 202A.19,
subdivision 1, is amended to read:
Subdivision 1. [LIMITS ON LOCAL GOVERNMENT MEETINGS.]
No special taxing district governing body, school board, county
board of commissioners, township board, or city council may
conduct a meeting after 6:00 p.m. on the day of a major
political party precinct caucus. As used in this subdivision,
"special taxing district" has the meaning given in section
275.066.
Sec. 10. Minnesota Statutes 2000, section 203B.04,
subdivision 1, is amended to read:
Subdivision 1. [APPLICATION PROCEDURES.] Except as
otherwise allowed by subdivision 2, an application for absentee
ballots for any election may be submitted at any time not less
than one day before the day of that election. The county
auditor shall prepare absentee ballot application forms in the
format provided in the rules of the secretary of state and shall
furnish them to any person on request. An application submitted
pursuant to this subdivision shall be in writing and shall be
submitted to:
(a) the county auditor of the county where the applicant
maintains residence; or
(b) the municipal clerk of the municipality, or school
district if applicable, where the applicant maintains residence.
An application shall be approved if it is timely received,
signed and dated by the applicant, contains the applicant's name
and residence and mailing addresses, and states that the
applicant is eligible to vote by absentee ballot for one of the
reasons specified in section 203B.02. The application may
contain a request for the voter's date of birth, which must not
be made available for public inspection. An application may be
submitted to the county auditor or municipal clerk by an
electronic facsimile device, at the discretion of the auditor or
clerk. An application mailed or returned in person to the
county auditor or municipal clerk on behalf of a voter by a
person other than the voter must be deposited in the mail or
returned in person to the county auditor or municipal clerk
within ten days after it has been dated by the voter and no
later than six days before the election. The absentee ballot
applications or a list of persons applying for an absentee
ballot may not be made available for public inspection until the
close of voting on election day.
An application under this subdivision may contain an
application under subdivision 5 to automatically receive an
absentee ballot application.
Sec. 11. Minnesota Statutes 2000, section 203B.04,
subdivision 5, is amended to read:
Subd. 5. [PERMANENT ILLNESS OR DISABILITY.] (a) An
eligible voter who reasonably expects to be permanently unable
to go to the polling place on election day because of illness or
disability may apply to a county auditor or municipal clerk
under this section to automatically receive an absentee ballot
application before each election, other than an election by mail
conducted under section 204B.45, and to have the status as a
permanent absentee voter indicated on the voter's registration
record.
(b) The secretary of state shall adopt rules governing
procedures under this subdivision.
Sec. 12. Minnesota Statutes 2000, section 203B.06, is
amended by adding a subdivision to read:
Subd. 3a. [UNOFFICIAL BALLOTS.] If no official ballots are
ready at the time absentee balloting is scheduled to begin or
the supply is exhausted before absentee balloting ends, the
county auditor or municipal clerk shall prepare unofficial
ballots, printed or written as nearly as practicable in the form
of the official ballots. These ballots may be used until the
official ballots are available.
Sec. 13. Minnesota Statutes 2000, section 203B.07,
subdivision 1, is amended to read:
Subdivision 1. [DELIVERY OF ENVELOPES, DIRECTIONS.] The
county auditor or the municipal clerk shall prepare, print, and
transmit a return envelope, a ballot envelope, and a copy of the
directions for casting an absentee ballot to each applicant
whose application for absentee ballots is accepted pursuant to
section 203B.04. The directions for casting an absentee ballot
shall be printed in at least 14-point bold type with heavy
leading and may be printed on the ballot envelope. When a
person requests the directions in Braille or on cassette tape,
the county auditor or municipal clerk shall provide them in the
form requested. The secretary of state shall prepare Braille
and cassette copies and make them available.
When a voter registration card is sent to the applicant as
provided in section 203B.06, subdivision 4, the directions or
registration card shall include instructions for registering to
vote.
Sec. 14. Minnesota Statutes 2000, section 203B.16,
subdivision 1, is amended to read:
Subdivision 1. [MILITARY SERVICE; TEMPORARY RESIDENCE
OUTSIDE UNITED STATES.] Sections 203B.16 to 203B.27 provide
alternative voting procedures for eligible voters who are absent
from the precinct where they maintain residence because they are:
(a) (1) either in the military or the spouses or dependents
of individuals serving in the military; or
(b) (2) temporarily outside the territorial limits of the
United States.
Sections 203B.16 to 203B.27 are intended to implement the
federal Uniformed and Overseas Citizens Absentee Voting Act,
United States Code, title 42, section 1973ff.
Sec. 15. Minnesota Statutes 2000, section 203B.17,
subdivision 1, is amended to read:
Subdivision 1. [SUBMISSION OF APPLICATION.] (a) An
application for absentee ballots for a voter described in
section 203B.16 may be submitted in writing or by electronic
facsimile device, or by electronic mail upon determination by
the secretary of state that security concerns have been
adequately addressed. An application for absentee ballots for a
voter described in section 203B.16 may be submitted by that
voter or by that voter's parent, spouse, sister, brother, or
child over the age of 18 years. For purposes of an application
under this subdivision, a person's social security number, no
matter how it is designated, qualifies as the person's military
identification number if the person is in the military.
(b) An application for a voter described in section
203B.16, subdivision 1, shall be submitted to the county auditor
of the county where the voter maintains residence.
(c) An application for a voter described in section
203B.16, subdivision 2, shall be submitted to the county auditor
of the county where the voter last maintained residence in
Minnesota.
(d) An application for absentee ballots for a primary shall
also constitute an application for absentee ballots for the any
ensuing general or special election conducted during the same
calendar year in which the application is received.
(e) There shall be no limitation of time for filing and
receiving applications for ballots under sections 203B.16 to
203B.27.
Sec. 16. Minnesota Statutes 2000, section 204B.06,
subdivision 1, is amended to read:
Subdivision 1. [FORM OF AFFIDAVIT.] (a) An affidavit of
candidacy shall state the name of the office sought and shall
state that the candidate:
(a) (1) is an eligible voter;
(b) (2) has no other affidavit on file as a candidate for
any office at the same primary or next ensuing general election,
except that a candidate for soil and water conservation district
supervisor in a district not located in whole or in part in
Anoka, Hennepin, Ramsey, or Washington county, may also have on
file an affidavit of candidacy for mayor or council member of a
statutory or home rule charter city of not more than 2,500
population contained in whole or in part in the soil and water
conservation district or for town supervisor in a town of not
more than 2,500 population contained in whole or in part in the
soil and water conservation district; and
(c) (3) is, or will be on assuming the office, 21 years of
age or more, and will have maintained residence in the district
from which the candidate seeks election for 30 days before the
general election.
An affidavit of candidacy must include a statement that the
candidate's name as written on the affidavit for ballot
designation is the candidate's true name or the name by which
the candidate is commonly and generally known in the community.
An affidavit of candidacy for partisan office shall also
state the name of the candidate's political party or political
principle, stated in three words or less.
(b) This subdivision does not apply to a candidate for
president or vice-president of the United States.
Sec. 17. Minnesota Statutes 2000, section 204B.07,
subdivision 2, is amended to read:
Subd. 2. [PETITIONS FOR PRESIDENTIAL ELECTORS.] On
petitions nominating presidential electors, the names of the
candidates for president and vice-president shall be added to
the political party or political principle stated on the
petition. One petition may be filed to nominate a slate of
presidential electors equal in number to the number of electors
to which the state is entitled. This subdivision does not apply
to candidates for presidential elector nominated by major
political parties. Major party candidates for presidential
elector are certified under section 208.03.
Sec. 18. Minnesota Statutes 2000, section 204B.09,
subdivision 1, is amended to read:
Subdivision 1. [CANDIDATES IN STATE AND COUNTY GENERAL
ELECTIONS.] (a) Except as otherwise provided by this
subdivision, affidavits of candidacy and nominating petitions
for county, state, and federal offices filled at the state
general election shall be filed not more than 70 days nor less
than 56 days before the state primary. The affidavit may be
prepared and signed at any time between 60 days before the
filing period opens and the last day of the filing period.
(b) Notwithstanding other law to the contrary, the
affidavit of candidacy must be signed in the presence of a
notarial officer or an individual authorized to administer oaths
under section 358.10.
(c) This provision does not apply to candidates for
presidential elector nominated by major political parties.
Major party candidates for presidential elector are certified
under section 208.03. Other candidates for presidential
electors may file petitions on or before the state primary day.
Nominating petitions to fill vacancies in nominations shall be
filed as provided in section 204B.13. No affidavit or petition
shall be accepted later than 5:00 p.m. on the last day for
filing.
(d) Affidavits and petitions for offices to be voted on in
only one county shall be filed with the county auditor of that
county. Affidavits and petitions for offices to be voted on in
more than one county shall be filed with the secretary of state.
Sec. 19. Minnesota Statutes 2000, section 204B.09,
subdivision 3, is amended to read:
Subd. 3. [WRITE-IN CANDIDATES.] (a) A candidate for state
or federal office who wants write-in votes for the candidate to
be counted must file a written request with the filing office
for the office sought no later than the day before the general
election. The filing officer shall provide copies of the form
to make the request.
(b) A candidate for president of the United States who
files a request under this subdivision must include the name of
a candidate for vice-president of the United States. The
request must also include the name of at least one candidate for
presidential elector. The total number of names of candidates
for presidential elector on the request may not exceed the total
number of electoral votes to be cast by Minnesota in the
presidential election.
(c) A candidate for governor who files a request under this
subdivision must include the name of a candidate for lieutenant
governor.
Sec. 20. Minnesota Statutes 2000, section 204B.20, is
amended to read:
204B.20 [ELECTION BOARD; CHAIR HEAD ELECTION JUDGE;
DUTIES.]
The election judges appointed to serve in an election
precinct shall constitute the election board for that precinct.
The appointing authority shall designate one of the election
judges in each precinct to serve as the chair of the election
board head election judge. The chair head election judge shall
assign specific duties to the election judges of that precinct
as necessary or convenient to complete forms, obtain signatures,
and perform all the other duties required of election judges.
Sec. 21. Minnesota Statutes 2000, section 204B.22,
subdivision 1, is amended to read:
Subdivision 1. [MINIMUM NUMBER REQUIRED.] (a) A minimum of
three election judges shall be appointed for each precinct. In
a combined polling place under section 204B.14, subdivision 2,
at least one judge must be appointed from each municipality in
the combined polling place, provided that not less than three
judges shall be appointed for each combined polling place. The
appointing authorities may appoint election judges for any
precinct in addition to the number required by this subdivision
including additional election judges to count ballots after
voting has ended.
(b) An election judge may serve for all or part of election
day, at the discretion of the appointing authority, as long as
the minimum number of judges required is always present. The
head election judge designated under section 204B.20 must serve
for all of election day and be present in the polling place
unless another election judge has been designated by the head
election judge to perform the functions of the head election
judge during any absence.
Sec. 22. Minnesota Statutes 2000, section 204B.22,
subdivision 3, is amended to read:
Subd. 3. [MINIMUM NUMBER REQUIRED IN CERTAIN PRECINCTS.]
At each state primary or state general election in precincts
using lever voting machines or an electronic voting system with
marking devices and in which more than 400 votes were cast at
the last similar election, the minimum number of election judges
is three plus one judge to demonstrate the use of the voting
machine or device.
Sec. 23. Minnesota Statutes 2000, section 204B.23, is
amended to read:
204B.23 [VACANCIES AMONG ELECTION JUDGES.]
A vacancy on an election board occurs when any election
judge who is a member of that board:
(a) Fails to arrive at the polling place within 30 minutes
after the time when the polling place is scheduled to open;
(b) Becomes unable to perform the duties of the office
after assuming those duties; or
(c) For any reason fails or refuses to perform the duties
of the office as assigned by the chair of the election board
head election judge.
When a vacancy occurs, the remaining election judges of the
precinct shall elect an individual to fill the vacancy subject
to the provisions of section 204B.19. When possible the
election judges shall elect individuals who have been trained as
election judges pursuant to section 204B.25. The oath signed by
the new election judge shall indicate that the new election
judge was elected to fill a vacancy. The municipal clerk may
assign election judges to fill vacancies as they occur.
Sec. 24. Minnesota Statutes 2000, section 204B.27, is
amended by adding a subdivision to read:
Subd. 11. [TRANSLATION OF VOTING INSTRUCTIONS.] The
secretary of state may develop voting instructions in languages
other than English, to be posted and made available in polling
places during elections. The state demographer shall determine
and report to the secretary of state the languages that are so
common in this state that there is a need for translated voting
instructions.
Sec. 25. Minnesota Statutes 2000, section 204B.28,
subdivision 1, is amended to read:
Subdivision 1. [MEETING WITH ELECTION OFFICIALS.] At least
12 weeks before each regularly scheduled general election, each
county auditor shall conduct a meeting with local election
officials to review the procedures for the election. The county
auditor may require the chairs of the election boards head
election judges in the county to attend this meeting.
Sec. 26. [204B.48] [VOTING EQUIPMENT GRANT ACCOUNT.]
Subdivision 1. [ACCOUNT CREATED.] A voting equipment grant
account is created in the state treasury to provide grants to
political subdivisions to purchase precinct based optical scan
ballot tabulation equipment. The equipment must permit the
voter to verify and correct any errors on the ballot, including
both undervotes and overvotes. Any grants made by the federal
government to the state to improve election administration or
equipment must be credited to the account.
Subd. 2. [APPLICATION.] The commissioner of administration
may make a grant from the account to a political subdivision
only after receiving an application from the political
subdivision and a recommendation from the secretary of state
concerning the application. The application must contain the
following information:
(1) the date the application is submitted;
(2) the name of the political subdivision;
(3) the name and title of the individual who prepared the
application;
(4) the type of voting system currently used in each
precinct in the political subdivision;
(5) if the current system is an optical scan system, the
date the system was acquired and at what cost;
(6) the total number of registered voters, as of the date
of the application, in each precinct in the political
subdivision;
(7) the total amount of the grant requested;
(8) the total amount and source of the political
subdivision's money to be used to match a grant from the
account;
(9) the type of voting system to be acquired with the grant
money and whether the voting system will permit individuals with
disabilities to cast a secret ballot;
(10) the proposed schedule for purchasing and implementing
the new voting system and the precincts in which the new voting
system would be used;
(11) the proposed schedule for training election
administrators and election judges to operate the new voting
system;
(12) a proposed plan to educate voters, the media, and the
general public concerning the new voting system;
(13) the names and contact information for the individuals
and offices of the political subdivision responsible for
communications and reporting to the commissioner of
administration regarding the administration and implementation
of the grant by the political subdivision, authorizing the
purchase of voting systems, and implementing the training and
education plan for the voting system;
(14) whether the political subdivision has previously
applied for a grant from the account and the disposition of that
application;
(15) a certified statement by the political subdivision
that the grant will be used only to purchase precinct based
optical scan ballot tabulation equipment, that the political
subdivision will provide a dollar-for-dollar match that will not
come from state or federal money, and that the political
subdivision has insufficient resources to purchase the voting
system without obtaining a grant from the account.
The commissioner of administration must forward a copy of
the application to the secretary of state.
Subd. 3. [EVALUATION AND APPROVAL.] In evaluating the
application, the commissioner of administration may consider
only the information set forth in the application and is not
subject to chapter 14. If the commissioner of administration
determines that the application has been fully and properly
completed, and that there is a sufficient balance in the account
to fund the grant, either in whole or in part, the commissioner,
after receiving the recommendation of the secretary of state,
may approve the application.
Subd. 4. [PAYMENT.] The commissioner of administration may
then pay the grant to the political subdivision after certifying
that:
(1) the grant will be used only to purchase the kind of
ballot tabulation equipment prescribed by subdivision 1, which
may include equipment that makes it possible for individuals
with disabilities to cast a secret ballot;
(2) the political subdivision to receive the grant has
insufficient resources available to purchase the equipment; and
(3) the recipient of the grant will provide a
dollar-for-dollar match, which may not come from state or
federal money.
Sec. 27. Minnesota Statutes 2000, section 204C.03,
subdivision 1, is amended to read:
Subdivision 1. [SCHOOL DISTRICTS; COUNTIES;
MUNICIPALITIES; SPECIAL TAXING DISTRICTS.] No special taxing
district governing body, school board, county board of
commissioners, city council, or town board of supervisors shall
conduct a meeting between 6:00 p.m. and 8:00 p.m. on the day
that an election is held within the boundaries of the special
taxing district, school district, county, city, or town. As
used in this subdivision, "special taxing district" has the
meaning given in section 275.066.
Sec. 28. Minnesota Statutes 2000, section 204C.35, is
amended to read:
204C.35 [LEGISLATIVE AND FEDERAL, STATE, AND JUDICIAL
RACES.]
Subdivision 1. [AUTOMATIC RECOUNTS.] (a) In a state
primary when the difference between the votes cast for the
candidates for nomination to a statewide federal office, state
constitutional office, statewide judicial office, congressional
office, state legislative office, or to a district judicial
office is 100 or less, the difference:
(1) is less than ten one-half of one percent of the total
number of votes counted for that nomination; or
(2) is ten votes or less and the total number of votes cast
for the nomination is 400 votes or less;
and the difference determines the nomination, the canvassing
board with responsibility for declaring the results for that
office shall recount the vote.
(b) In a state general election when the difference between
the votes of a candidate who would otherwise be declared elected
to a statewide federal office, state constitutional office,
statewide judicial office, congressional office, state
legislative office, or to a district judicial office and the
votes of any other candidate for that office:
(1) is 100 or less than one-half of one percent of the
total number of votes counted for that office; or
(2) is ten votes or less if the total number of votes cast
for the office is 400 votes or less,
the canvassing board shall recount the votes.
(c) A recount shall must not delay any other part of the
canvass. The results of the recount shall must be certified by
the canvassing board as soon as possible.
(d) Time for notice of a contest for an office which is
recounted pursuant to this section shall begin to run upon
certification of the results of the recount by the canvassing
board.
(e) A losing candidate may waive a recount required
pursuant to this section by filing a written notice of waiver
with the canvassing board.
Subd. 2. [OPTIONAL RECOUNT.] (a) A losing candidate for
nomination or election to a statewide federal office, state
constitutional office, statewide judicial office, congressional
office, state legislative office, or to a district court
judicial office may request a recount in a manner provided in
this section at the candidate's own expense when the vote
difference is greater than the difference required by this
section. The votes shall be recounted as provided in this
section if the candidate files a request during the time for
filing notice of contest of the primary or election for which a
recount is sought.
(b) The requesting candidate shall file with the filing
officer a bond, cash, or surety in an amount set by the filing
officer for the payment of the recount expenses. The requesting
candidate is responsible for the following expenses: the
compensation of the secretary of state, or designees, and any
election judge, municipal clerk, county auditor, administrator,
or other personnel who participate in the recount; the costs of
computer operation, preparation of ballot counting equipment,
necessary supplies and travel related to the recount; the
compensation of the appropriate canvassing board and costs of
preparing for the canvass of recount results; and any attorney
fees incurred in connection with the recount by the governing
body responsible for the recount.
Sec. 29. Minnesota Statutes 2000, section 204C.36,
subdivision 1, is amended to read:
Subdivision 1. [REQUIRED RECOUNTS.] (a) Except as provided
in paragraph (b), a losing candidate for nomination or election
to a county, municipal, or school district office may request a
recount of the votes cast for the nomination or election to that
office if the difference between the vote cast for that
candidate and for a winning candidate for nomination or election
is:
(a) Five votes or less when the total vote cast for
nomination or election to that office is 100 votes or less;
(b) Ten votes or less when the total vote cast for
nomination or election to that office is more than 100 but not
more than 500 votes;
(c) Twenty votes or less when the total vote cast for
nomination or election to that office is more than 500 but not
more than 2,000 votes;
(d) One percent of the votes or less when the total vote
cast for nomination or election to that office is more than
2,000 but less than 10,000 votes; or
(e) One hundred votes or less when the total vote cast for
nomination or election to that office is 10,000 votes or
more. less than one-half of one percent of the total votes
counted for that office. In case of offices where two or more
seats are being filled from among all the candidates for the
office, the one-half of one percent difference is between the
elected candidate with the fewest votes and the candidate with
the most votes from among the candidates who were not elected.
(b) A losing candidate for nomination or election to a
county, municipal, or school district office may request a
recount of the votes cast for nomination or election to that
office if the difference between the vote cast for that
candidate and for a winning candidate for nomination or election
is ten votes or less, and the total number of votes cast for the
nomination or election of all candidates is no more than 400.
In cases of offices where two or more seats are being filled
from among all the candidates for the office, the ten vote
difference is between the elected candidate with the fewest
votes and the candidate with the most votes from among the
candidates who were not elected.
(c) Candidates for county offices shall file a written
request for the recount with the county auditor. Candidates for
municipal or school district offices shall file a written
request with the municipal or school district clerk as
appropriate. All requests shall be filed during the time for
notice of contest of the primary or election for which a recount
is sought.
(d) Upon receipt of a request made pursuant to this
section, the county auditor shall recount the votes for a county
office at the expense of the county, the governing body of the
municipality shall recount the votes for a municipal office at
the expense of the municipality, and the school board of the
school district shall recount the votes for a school district
office at the expense of the school district.
Sec. 30. Minnesota Statutes 2000, section 204C.36,
subdivision 3, is amended to read:
Subd. 3. [DISCRETIONARY BALLOT QUESTION RECOUNTS.] A
recount may be conducted for a ballot question when the
difference between the votes for and the votes against the
question is less than or equal to the difference provided in
subdivision 1, clauses (a) to (e). A recount may be requested
by any person eligible to vote on the ballot question. A
written request for a recount must be filed with the filing
officer of the county, municipality, or school district placing
the question on the ballot and must be accompanied by a petition
containing the signatures of 25 voters eligible to vote on the
question. If the difference between the votes for and the votes
against the question is greater than the difference provided in
subdivision 1, clauses (a) to (e), the person requesting the
recount shall also file with the filing officer of the county,
municipality, or school district a bond, cash, or surety in an
amount set by the appropriate governing body for the payment of
recount expenses. The written request, petition, and any bond,
cash, or surety required must be filed during the time for
notice of contest for the election for which the recount is
requested.
Sec. 31. Minnesota Statutes 2000, section 204D.04,
subdivision 2, is amended to read:
Subd. 2. [INSTRUCTIONS TO PRINTER; PRINTER'S BOND.] (a)
The official charged with the preparation and distribution of
the ballots shall prepare instructions to the printer for
rotation of the names of candidates and for layout of the ballot.
(b) Except as provided in paragraph (c), the instructions
shall be approved by the legal advisor of the official before
delivery to the printer.
(c) The legal advisor of a town official is only required
to approve instructions regarding the rotation of the names of
candidates on the ballot.
(d) Before a contract exceeding $1,000 is awarded for
printing ballots, the printer shall furnish a sufficient bond,
letter of credit, or certified check, acceptable to the official
responsible for printing the ballots, conditioned on printing
the ballots in conformity with the Minnesota Election Law and
the instructions delivered. The official responsible for
printing the ballots shall set the amount of the bond, letter of
credit, or certified check in an amount equal to the value of
the purchase.
Sec. 32. Minnesota Statutes 2000, section 204D.09, is
amended to read:
204D.09 [EXAMPLE BALLOTS; SAMPLE PRIMARY BALLOTS.]
Subdivision 1. [EXAMPLE BALLOT.] (a) No later than June 1
of each year, the secretary of state shall supply each auditor
with a copy of an example ballot. The example ballot must
illustrate the format required for the ballots used in the
primary and general elections that year.
(b) The county auditor shall distribute copies of the
example ballot to municipal and school district clerks in
municipalities and school districts holding elections that
year. The official ballot must conform in all respects to the
example ballot.
Subd. 2. [SAMPLE BALLOT.] At least two weeks before the
state primary the county auditor shall prepare a sample state
partisan primary ballot and a sample state and county
nonpartisan primary ballot for public inspection. The names of
all of the candidates to be voted for in the county shall be
placed on the sample ballots, with the names of the candidates
for each office arranged alphabetically according to the
surname. Only one sample state partisan primary ballot and one
sample state and county nonpartisan ballot shall be prepared for
any county. The county auditor shall post the sample ballots in
a conspicuous place in the auditor's office and shall cause them
to be published at least one week before the state primary in at
least one newspaper of general circulation in the county.
Sec. 33. Minnesota Statutes 2000, section 204D.11,
subdivision 4, is amended to read:
Subd. 4. [SPECIAL FEDERAL WHITE BALLOT.] (a) The names of
all candidates for the offices of president and vice-president
of the United States and senator and representative in Congress
shall be placed on a ballot printed on white paper which shall
be known as the "special federal white ballot."
(b) This ballot shall be prepared by the county auditor in
the same manner as the white ballot and shall be subject to the
rules adopted by the secretary of state pursuant to subdivision
1. This ballot must be prepared and furnished in accordance
with the federal Uniformed and Overseas Citizens Absentee Voting
Act, United States Code, title 42, section 1973ff.
(c) The special federal white ballot shall be the only
ballot sent to citizens of the United States who are eligible to
vote by absentee ballot for federal candidates in Minnesota.
Sec. 34. Minnesota Statutes 2000, section 204D.24,
subdivision 2, is amended to read:
Subd. 2. [VOTER REGISTRATION.] An individual may register
to vote at a special primary or special election at any time
before the day that the polling place rosters for the special
primary or special election are prepared by the secretary of
state. The secretary of state shall provide the county auditors
with notice of this date at least seven days before the printing
of the rosters. This subdivision does not apply to a special
election held on the same day as the presidential primary, state
primary, state general election, or the regularly scheduled
primary or general election of a municipality, school district,
or special district.
Sec. 35. Minnesota Statutes 2000, section 205.13,
subdivision 1a, is amended to read:
Subd. 1a. [FILING PERIOD.] An affidavit of candidacy for a
town office to be elected in March must be filed not more than
eight weeks nor less than six weeks before the town election.
In municipalities nominating candidates at a municipal primary,
an affidavit of candidacy for a city office or town office voted
on in November must be filed not more than 70 days nor less than
56 days before the first Tuesday after the second Monday in
September preceding the municipal general election. In all
other municipalities, an affidavit of candidacy must be filed
not more than 70 days and not less than 56 days before the
municipal general election.
Sec. 36. Minnesota Statutes 2000, section 205.17, is
amended by adding a subdivision to read:
Subd. 7. [EXAMPLE BALLOT.] No later than 30 days before
absentee ballots must be prepared and delivered under section
204B.35 for use in a town general election conducted in March,
the secretary of state shall supply each town clerk in a town
conducting a March general election with a copy of an example
ballot. The example ballot must illustrate the format required
for the ballots used in the general election that year.
Sec. 37. Minnesota Statutes 2000, section 205.185,
subdivision 3, is amended to read:
Subd. 3. [CANVASS OF RETURNS, CERTIFICATE OF ELECTION,
BALLOTS, DISPOSITION.] (a) Within seven days after an election,
the governing body of a city conducting any election or the
governing body of a town conducting the general election in
November shall canvass the returns and declare the results of
the election. The governing body of a town conducting the
general election in March shall canvass the returns and declare
the results of the election within two days after an election.
(b) After the time for contesting elections has passed, the
municipal clerk shall issue a certificate of election to each
successful candidate. In case of a contest, the certificate
shall not be issued until the outcome of the contest has been
determined by the proper court.
(c) In case of a tie vote, the governing body shall
determine the result by lot. The clerk shall certify the results
of the election to the county auditor, and the clerk shall be
the final custodian of the ballots and the returns of the
election.
Sec. 38. Minnesota Statutes 2000, section 206.81, is
amended to read:
206.81 [ELECTRONIC VOTING SYSTEMS; EXPERIMENTAL USE.]
(a) The secretary of state may license an electronic voting
system for experimental use at an election prior to its approval
for general use.
(b) The secretary of state must license one or more
touch-sensitive direct recording electronic voting systems for
experimental use at an election before their approval for
general use and may impose restrictions on their use. At least
one voting system licensed under this paragraph must permit
sighted persons to vote and at least one system must permit a
blind or visually impaired voter to cast a ballot independently
and privately.
(c) Experimental use must be observed by the secretary of
state or the secretary's designee and the results observed must
be considered at any subsequent proceedings for approval for
general use.
(d) The secretary of state may adopt rules consistent with
sections 206.55 to 206.90 relating to experimental use. The
extent of experimental use must be determined by the secretary
of state.
Sec. 39. Minnesota Statutes 2000, section 211A.02,
subdivision 4, is amended to read:
Subd. 4. [CONGRESSIONAL CANDIDATES.] Candidates for
election to the United States House of Representatives or Senate
and any political committees raising money and making
disbursements exclusively on behalf of any one of those
candidates may file copies of their financial disclosures
required by federal law in lieu of the financial statement
required by this section. A candidate or committee whose report
is published on the Federal Election Commission Web site has
complied with the filing requirements of this section.
Sec. 40. [211B.205] [PARTICIPATION IN PUBLIC PARADES.]
If a public parade allows candidates, a candidate must be
allowed to participate for a fee that is not greater than the
amount that is charged to other units participating in the
parade.
Sec. 41. Minnesota Statutes 2000, section 358.10, is
amended to read:
358.10 [OFFICIALS MAY ADMINISTER, WHEN.]
(a) All persons holding office under any law of this state,
or under the charter or ordinances of any municipal corporation
thereof, including judges and clerks of election, and all
committee members, commissioners, trustees, referees,
appraisers, assessors, and all others authorized or required by
law to act or report upon any matter of fact, shall have the
power to administer such oaths as they may deem necessary to the
proper discharge of their respective duties.
(b) Any employee of the secretary of state designated by
the secretary of state has the power to administer oaths to an
individual who wishes to file with the secretary of state an
affidavit of candidacy, nominating petition, declaration of
intent to be a write-in candidate, or any other document
relating to the conduct of elections.
Sec. 42. Minnesota Statutes 2000, section 367.03,
subdivision 6, is amended to read:
Subd. 6. [VACANCIES.] (a) When a vacancy occurs in a town
office, the town board shall fill the vacancy by appointment.
Except as provided in paragraph (b), the person appointed shall
hold office until the next annual town election, when a
successor shall be elected for the unexpired term.
(b) When a vacancy occurs in a town office:
(1) with more than one year remaining in the term; and
(2) on or after the 14th day before the first day to file
an affidavit of candidacy for the town election;
the vacancy must be filled by appointment. The person appointed
serves until the next annual town election following the
election for which affidavits of candidacy are to be filed, when
a successor shall be elected for the unexpired term.
(c) A vacancy in the office of supervisor shall must be
filled by an appointment committee comprised of the remaining
supervisors and the town clerk until the next annual town
election, when a successor shall be elected for the unexpired
term.
(d) Any person appointed to fill the vacancy in the office
of supervisor must, upon assuming the office, be an eligible
voter, be 21 years of age, and have resided in the town for at
least 30 days.
(e) When, because of a vacancy, more than one supervisor is
to be chosen at the same election, candidates for the offices of
supervisor shall file for one of the specific terms being filled.
(f) Law enforcement vacancies shall must be filled by
appointment by the town board.
Sec. 43. [APPLICATION OF NEW DEFINITIONS OF MAJOR AND
MINOR POLITICAL PARTY.]
Notwithstanding the amendments in this article to Minnesota
Statutes, section 200.02, subdivisions 7 and 23:
(1) a political party that qualified as a major political
party as a result of the votes cast for candidates of that party
on November 7, 2000, remains a major political party through
December 31, 2002, and may retain its status after that date by
complying with Minnesota Statutes, section 200.02, subdivision
7;
(2) a major political party that ceased to qualify as a
major political party as a result of votes cast for candidates
of that party on November 7, 2000, does not become a major
political party as a result of this article until it qualifies
at a subsequent state general election;
(3) a minor political party that ceased to qualify as a
minor political party under Minnesota Statutes, section 200.02,
subdivision 23, or as a political party under Minnesota
Statutes, section 200.02, subdivision 6, as a result of the
votes cast for candidates of that party on November 7, 2000,
does not become a minor political party or a political party as
a result of this article until it qualifies at a subsequent
state general election.
Sec. 44. [REPEALER.]
(a) Minnesota Statutes 2000, sections 204B.06, subdivision
1a, and 204C.15, subdivision 2a, are repealed.
(b) Minnesota Rules, part 8250.1400, is repealed.
Sec. 45. [EFFECTIVE DATE.]
Sections 1 to 25 and 27 to 44 are effective January 1, 2002.
Section 26 is effective July 1, 2001.
Presented to the governor June 30, 2001
Signed by the governor June 30, 2001, 8:50 p.m.
Official Publication of the State of Minnesota
Revisor of Statutes