1.1 	A bill for an act
1.2 	relating to retirement; volunteer fire relief association working group 
1.3 	recommendations; clarifying countersigners on certain financial reports; 
1.4 	clarifying recipients of certain financial requirement determination certifications; 
1.5 	authorizing an expansion of relief association board salaries; authorizing filing 
1.6 	and application fees as authorized administrative expenses; modifying various 
1.7 	former firefighter return to service and relief association coverage provisions; 
1.8 	authorizing defined contribution relief association survivor benefit installment 
1.9 	payments; clarifying the disposition of member dues that are relief association 
1.10 	member contributions; making various technical amendments in volunteer 
1.11 	firefighter relief association provisions; amending Minnesota Statutes 2010, 
1.12 	sections 69.011, subdivision 1; 69.051, subdivisions 1, 1a, 3; 69.772, subdivision 
1.13 	4; 69.773, subdivision 5; 69.80; 424A.001, subdivision 4; 424A.01, subdivision 
1.14 	6; 424A.016, subdivision 5; 424A.02, subdivision 9; 424A.04, subdivision 3; 
1.15 	424A.06, subdivision 2.
1.16 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.17 	ARTICLE 1
1.18 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
1.19 	FINANCIAL REPORT COUNTERSIGNERS

1.20 	Section 1. Minnesota Statutes 2010, section 69.011, subdivision 1, is amended to read:
1.21 		Subdivision 1.Definitions. Unless the language or context clearly indicates that 
1.22 	a different meaning is intended, the following words and terms, for the purposes of this 
1.23 	chapter and chapters 423, 423A, 424 and 424A, have the meanings ascribed to them:
1.24 	(a) "Commissioner" means the commissioner of revenue.
1.25 	(b) "Municipality" means:
1.26 	(1) a home rule charter or statutory city;
1.27 	(2) an organized town;
1.28 	(3) a park district subject to chapter 398;
2.1 	(4) the University of Minnesota;
2.2 	(5) for purposes of the fire state aid program only, an American Indian tribal 
2.3 	government entity located within a federally recognized American Indian reservation;
2.4 	(6) for purposes of the police state aid program only, an American Indian tribal 
2.5 	government with a tribal police department which exercises state arrest powers under 
2.6 	section 626.90, 626.91, 626.92, or 626.93;
2.7 	(7) for purposes of the police state aid program only, the Metropolitan Airports 
2.8 	Commission; and
2.9 	(8) for purposes of the police state aid program only, the Department of Natural 
2.10 	Resources and the Department of Public Safety with respect to peace officers covered 
2.11 	under chapter 352B.
2.12 	(c) "Minnesota Firetown Premium Report" means a form prescribed by the 
2.13 	commissioner containing space for reporting by insurers of fire, lightning, sprinkler 
2.14 	leakage and extended coverage premiums received upon risks located or to be performed 
2.15 	in this state less return premiums and dividends.
2.16 	(d) "Firetown" means the area serviced by any municipality having a qualified fire 
2.17 	department or a qualified incorporated fire department having a subsidiary volunteer 
2.18 	firefighters' relief association.
2.19 	(e) "Market value" means latest available market value of all property in a taxing 
2.20 	jurisdiction, whether the property is subject to taxation, or exempt from ad valorem 
2.21 	taxation obtained from information which appears on abstracts filed with the commissioner 
2.22 	of revenue or equalized by the State Board of Equalization.
2.23 	(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 
2.24 	commissioner for reporting by each fire and casualty insurer of all premiums received 
2.25 	upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 
2.26 	during the preceding calendar year, with reference to insurance written for insuring against 
2.27 	the perils contained in auto insurance coverages as reported in the Minnesota business 
2.28 	schedule of the annual financial statement which each insurer is required to file with 
2.29 	the commissioner in accordance with the governing laws or rules less return premiums 
2.30 	and dividends.
2.31 	(g) "Peace officer" means any person:
2.32 	(1) whose primary source of income derived from wages is from direct employment 
2.33 	by a municipality or county as a law enforcement officer on a full-time basis of not less 
2.34 	than 30 hours per week;
2.35 	(2) who has been employed for a minimum of six months prior to December 31 
2.36 	preceding the date of the current year's certification under subdivision 2, clause (b);
3.1 	(3) who is sworn to enforce the general criminal laws of the state and local 
3.2 	ordinances;
3.3 	(4) who is licensed by the Peace Officers Standards and Training Board and is 
3.4 	authorized to arrest with a warrant; and
3.5 	(5) who is a member of the Minneapolis Police Relief Association, the State Patrol 
3.6 	retirement plan, or the public employees police and fire fund.
3.7 	(h) "Full-time equivalent number of peace officers providing contract service" means 
3.8 	the integral or fractional number of peace officers which would be necessary to provide 
3.9 	the contract service if all peace officers providing service were employed on a full-time 
3.10 	basis as defined by the employing unit and the municipality receiving the contract service.
3.11 	(i) "Retirement benefits other than a service pension" means any disbursement 
3.12 	authorized under section 424A.05, subdivision 3, clauses (3) and (4).
3.13 	(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means:
3.14 	(1) for the police state aid program and police relief association financial reports:
3.15 	(i) the person who was elected or appointed to the specified position or, in the 
3.16 	absence of the person, another person who is designated by the applicable governing body~~.~~;
3.17 	(ii) in a park district, the ~~clerk is the~~ secretary of the board of park district 
3.18 	commissioners~~.~~;
3.19 	(iii) in the case of the University of Minnesota, the ~~clerk is that~~ official designated 
3.20 	by the Board of Regents~~.~~;
3.21 	(iv) for the Metropolitan Airports Commission, the ~~clerk is the~~ person designated 
3.22 	by the commission~~.~~;
3.23 	(v) for the Department of Natural Resources or the Department of Public Safety, 
3.24 	the ~~clerk is the~~ respective commissioner~~.~~;
3.25 	(vi) for a tribal police department which exercises state arrest powers under section 
3.26 	626.90, 626.91, 626.92, or 626.93, the ~~clerk is the~~ person designated by the applicable 
3.27 	American Indian tribal government~~.~~; and
3.28 	(2) for the fire state aid program and fire relief association financial reports, the 
3.29 	person who was elected or appointed to the specified position, or, for governmental 
3.30 	entities other than counties, if the governing body of the governmental entity designates 
3.31 	the position to perform the function, the chief financial official of the governmental entity 
3.32 	or the chief administrative official of the governmental entity.
3.33 	(k) "Voluntary statewide lump-sum volunteer firefighter retirement plan" means the 
3.34 	retirement plan established by chapter 353G.

3.35 	EFFECTIVE DATE. This section is effective July 1, 2011.

4.1 	Sec. 2. Minnesota Statutes 2010, section 69.051, subdivision 1, is amended to read:
4.2 		Subdivision 1.Financial report and audit. (a) The board of each salaried 
4.3 	firefighters relief association, police relief association, and volunteer firefighters relief 
4.4 	association as defined in section 424A.001, subdivision 4, with assets of at least $200,000 
4.5 	or liabilities of at least $200,000 in the prior year or in any previous year, according to 
4.6 	the applicable actuarial valuation or financial report if no valuation is required, shall~~: (1)~~
4.7 	prepare a financial report covering the special and general funds of the relief association 
4.8 	for the preceding fiscal year ~~on a form prescribed by the state auditor~~, file the financial 
4.9 	report, and submit financial statements.
4.10 	(b) The financial report must contain financial statements and disclosures which 
4.11 	present the true financial condition of the relief association and the results of relief 
4.12 	association operations in conformity with generally accepted accounting principles and in 
4.13 	compliance with the regulatory, financing and funding provisions of this chapter and any 
4.14 	other applicable laws. The financial report must be countersigned by:
4.15 	(1) the municipal clerk or clerk-treasurer of the municipality in which the relief 
4.16 	association is located if the relief association is a firefighters relief association which is 
4.17 	directly associated with a municipal fire department or is a police relief association~~,~~; or 
4.18 	~~countersigned by the secretary of the independent nonprofit firefighting corporation and~~
4.19 	(2) by the municipal clerk or clerk-treasurer of the largest municipality in population 
4.20 	which contracts with the independent nonprofit firefighting corporation if the volunteer 
4.21 	firefighter relief association is a subsidiary of an independent nonprofit firefighting 
4.22 	corporation and by the secretary of the independent nonprofit firefighting corporation; or
4.23 	(3) by the chief financial official of the county in which the volunteer firefighter 
4.24 	relief association is located or primarily located if the relief association is associated with 
4.25 	a fire department that is not located in or associated with an organized municipality.
4.26 	~~(2) file~~(c) The financial report must be retained in its office for public inspection 
4.27 	and ~~present it to~~must be filed with the ~~city council~~governing body of the government 
4.28 	subdivision in which the associated fire department is located after the close of the fiscal 
4.29 	year. One copy of the financial report must be furnished to the state auditor after the 
4.30 	close of the fiscal year~~; and~~.
4.31 	~~(3) submit to the state auditor~~(d) Audited financial statements ~~which have been~~must 
4.32 	be attested to by a certified public accountant, public accountant, or the state auditor and 
4.33 	must be filed with the state auditor within 180 days after the close of the fiscal year. The 
4.34 	state auditor may accept this report in lieu of the report required in ~~clause (2)~~ paragraph (c).

4.35 	EFFECTIVE DATE. This section is effective July 1, 2011.

5.1 	Sec. 3. Minnesota Statutes 2010, section 69.051, subdivision 1a, is amended to read:
5.2 		Subd. 1a.Financial statement. (a) The board of each volunteer firefighters relief 
5.3 	association, as defined in section 424A.001, subdivision 4, that is not required to file 
5.4 	a financial report and audit under subdivision 1 must prepare a detailed statement of 
5.5 	the financial affairs for the preceding fiscal year of the relief association's special and 
5.6 	general funds in the style and form prescribed by the state auditor. The detailed statement 
5.7 	must show the sources and amounts of all money received; all disbursements, accounts 
5.8 	payable and accounts receivable; the amount of money remaining in the treasury; total 
5.9 	assets including a listing of all investments; the accrued liabilities; and all items necessary 
5.10 	to show accurately the revenues and expenditures and financial position of the relief 
5.11 	association.
5.12 	(b) The detailed financial statement required under paragraph (a) must be certified 
5.13 	by an independent public accountant or auditor or by the auditor or accountant who 
5.14 	regularly examines or audits the financial transactions of the municipality. In addition to 
5.15 	certifying the financial condition of the special and general funds of the relief association, 
5.16 	the accountant or auditor conducting the examination shall give an opinion as to the 
5.17 	condition of the special and general funds of the relief association, and shall comment 
5.18 	upon any exceptions to the report. The independent accountant or auditor must have at 
5.19 	least five years of public accounting, auditing, or similar experience, and must not be an 
5.20 	active, inactive, or retired member of the relief association or the fire or police department.
5.21 	(c) The detailed statement required under paragraph (a) must be countersigned by:
5.22 	(1) the municipal clerk or clerk-treasurer of the municipality~~,~~; or~~,~~
5.23 	(2) where applicable, by the ~~secretary of the independent nonprofit firefighting~~ 
5.24 	~~corporation and by the~~ municipal clerk or clerk-treasurer of the largest municipality in 
5.25 	population which contracts with the independent nonprofit firefighting corporation if the 
5.26 	relief association is a subsidiary of an independent nonprofit firefighting corporation~~.~~ and 
5.27 	by the secretary of the independent nonprofit firefighting corporation; or
5.28 	(3) by the chief financial official of the county in which the volunteer firefighter 
5.29 	relief association is located or primarily located if the relief association is associated with 
5.30 	a fire department that is not located in or associated with an organized municipality.
5.31 	(d) The volunteer firefighters' relief association board must file the detailed statement 
5.32 	required under paragraph (a) in the relief association office for public inspection and 
5.33 	present it to the city council within 45 days after the close of the fiscal year, and must 
5.34 	submit a copy of the detailed statement to the state auditor within 90 days of the close of 
5.35 	the fiscal year.

5.36 	EFFECTIVE DATE. This section is effective July 1, 2011.

6.1 	ARTICLE 2
6.2 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
6.3 	FUNDING REQUIREMENT DETERMINATION CERTIFICATIONS

6.4 	Section 1. Minnesota Statutes 2010, section 69.772, subdivision 4, is amended to read:
6.5 		Subd. 4.Certification of financial requirements and minimum municipal 
6.6 	obligation; levy. (a) The officers of the relief association shall certify the financial 
6.7 	requirements of the special fund of the relief association and the minimum obligation of 
6.8 	the municipality with respect to the special fund of the relief association as determined 
6.9 	under subdivision 3 ~~to the governing body of the municipality~~ on or before August 1 of 
6.10 	each year. The certification must be made to the entity that is responsible for satisfying 
6.11 	the minimum obligation with respect to the special fund of the relief association. If the 
6.12 	responsible entity is a joint powers entity, the certification must be made in the manner 
6.13 	specified in the joint powers agreement, or if the joint powers agreement is silent on this 
6.14 	point, the certification must be made to the chair of the joint powers board.
6.15 	(b) The financial requirements of the relief association and the minimum municipal 
6.16 	obligation must be included in the financial report or financial statement under section 
6.17 	69.051. The schedule forms related to the determination of the financial requirements 
6.18 	must be filed with the state auditor by March 31, annually, if the relief association is 
6.19 	required to file a financial statement under section 69.051, subdivision 1a, or by June 30, 
6.20 	annually, if the relief association is required to file a financial report and audit under 
6.21 	section 69.051, subdivision 1.
6.22 	~~(b)~~(c) The municipality shall provide for at least the minimum obligation of the 
6.23 	municipality with respect to the special fund of the relief association by tax levy or from 
6.24 	any other source of public revenue.
6.25 	~~(c)~~(d) The municipality may levy taxes for the payment of the minimum municipal 
6.26 	obligation without any limitation as to rate or amount and irrespective of any limitations 
6.27 	imposed by other provisions of law upon the rate or amount of taxation until the balance 
6.28 	of the special fund or any fund of the relief association has attained a specified level. In 
6.29 	addition, any taxes levied under this section must not cause the amount or rate of any other 
6.30 	taxes levied in that year or to be levied in a subsequent year by the municipality which are 
6.31 	subject to a limitation as to rate or amount to be reduced.
6.32 	~~(d)~~(e) If the municipality does not include the full amount of the minimum 
6.33 	municipal obligations in its levy for any year, the officers of the relief association shall 
6.34 	certify that amount to the county auditor, who shall spread a levy in the amount of the 
6.35 	certified minimum municipal obligation on the taxable property of the municipality.
7.1 	~~(e)~~(f) If the state auditor determines that a municipal contribution actually made 
7.2 	in a plan year was insufficient under section 69.771, subdivision 3, paragraph (c), clause 
7.3 	(5), the state auditor may request a copy of the certifications under this subdivision 
7.4 	from the relief association or from the city. The relief association or the city, whichever 
7.5 	applies, must provide the certifications within 14 days of the date of the request from 
7.6 	the state auditor.

7.7 	EFFECTIVE DATE. This section is effective July 1, 2011.

7.8 	Sec. 2. Minnesota Statutes 2010, section 69.773, subdivision 5, is amended to read:
7.9 		Subd. 5.Minimum municipal obligation. (a) The officers of the relief association 
7.10 	shall determine the minimum obligation of the municipality with respect to the special 
7.11 	fund of the relief association for the following calendar year on or before August 1 of each 
7.12 	year in accordance with the requirements of this subdivision.
7.13 	(b) The minimum obligation of the municipality with respect to the special fund is 
7.14 	an amount equal to the financial requirements of the special fund of the relief association 
7.15 	determined under subdivision 4, reduced by the estimated amount of any fire state 
7.16 	aid payable under sections 69.011 to 69.051 reasonably anticipated to be received by 
7.17 	the municipality for transmittal to the special fund of the relief association during the 
7.18 	following year and the amount of any anticipated contributions to the special fund 
7.19 	required by the relief association bylaws from the active members of the relief association 
7.20 	reasonably anticipated to be received during the following calendar year. A reasonable 
7.21 	amount of anticipated fire state aid is an amount that does not exceed the fire state aid 
7.22 	actually received in the prior year multiplied by the factor 1.035.
7.23 	(c) The officers of the relief association shall certify the financial requirements of 
7.24 	the special fund of the relief association and the minimum obligation of the municipality 
7.25 	with respect to the special fund of the relief association as determined under subdivision 4 
7.26 	and this subdivision ~~to the governing body of the municipality~~ by August 1 of each year.
7.27 	The certification must be made to the entity that is responsible for satisfying the minimum 
7.28 	obligation with respect to the special fund of the relief association. If the responsible 
7.29 	entity is a joint powers entity, the certification must be made in the manner specified in 
7.30 	the joint powers agreement, or if the joint powers agreement is silent on this point, the 
7.31 	certification must be made to the chair of the joint powers board.
7.32 	(d) The financial requirements of the relief association and the minimum municipal 
7.33 	obligation must be included in the financial report or financial statement under section 
7.34 	69.051.
8.1 	~~(d)~~(e) The municipality shall provide for at least the minimum obligation of the 
8.2 	municipality with respect to the special fund of the relief association by tax levy or from 
8.3 	any other source of public revenue. The municipality may levy taxes for the payment of the 
8.4 	minimum municipal obligation without any limitation as to rate or amount and irrespective 
8.5 	of any limitations imposed by other provisions of law or charter upon the rate or amount 
8.6 	of taxation until the balance of the special fund or any fund of the relief association has 
8.7 	attained a specified level. In addition, any taxes levied under this section must not cause 
8.8 	the amount or rate of any other taxes levied in that year or to be levied in a subsequent year 
8.9 	by the municipality which are subject to a limitation as to rate or amount to be reduced.
8.10 	~~(e)~~(f) If the municipality does not include the full amount of the minimum municipal 
8.11 	obligation in its levy for any year, the officers of the relief association shall certify that 
8.12 	amount to the county auditor, who shall spread a levy in the amount of the minimum 
8.13 	municipal obligation on the taxable property of the municipality.
8.14 	~~(f)~~(g) If the state auditor determines that a municipal contribution actually made 
8.15 	in a plan year was insufficient under section 69.771, subdivision 3, paragraph (c), clause 
8.16 	(5), the state auditor may request from the relief association or from the city a copy of 
8.17 	the certifications under this subdivision. The relief association or the city, whichever 
8.18 	applies, must provide the certifications within 14 days of the date of the request from 
8.19 	the state auditor.

8.20 	EFFECTIVE DATE. This section is effective July 1, 2011.

8.21 	ARTICLE 3
8.22 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
8.23 	BOARD SALARIES

8.24 	Section 1. Minnesota Statutes 2010, section 69.80, is amended to read:
8.25 	69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
8.26 	(a) Notwithstanding any provision of law to the contrary, the payment of the 
8.27 	following necessary, reasonable and direct expenses of maintaining, protecting and 
8.28 	administering the special fund, when provided for in the bylaws of the association and 
8.29 	approved by the board of trustees, constitutes authorized administrative expenses of a 
8.30 	police, salaried firefighters', or volunteer firefighters' relief association organized under 
8.31 	any law of this state:
8.32 	(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, 
8.33 	postage, periodical subscriptions, furniture, fixtures, and salaries of administrative 
8.34 	personnel;
9.1 	(2) salaries of the ~~president, secretary, and treasurer~~officers of the association, or 
9.2 	their designees, and ~~any other official~~salaries of the members of the board of trustees of 
9.3 	the ~~relief~~ association ~~to whom a salary is payable under bylaws or articles of incorporation~~ 
9.4 	~~in effect on January 1, 1986~~ if the salary amounts are approved by the governing body of 
9.5 	the entity that is responsible for meeting any minimum obligation under section 69.77, 
9.6 	69.772, or 69.773, and ~~their~~the itemized expenses of relief association officers and board 
9.7 	members that are incurred as a result of fulfilling their responsibilities as administrators 
9.8 	of the special fund;
9.9 	(3) tuition, registration fees, organizational dues, and other authorized expenses 
9.10 	of the officers or members of the board of trustees incurred in attending educational 
9.11 	conferences, seminars, or classes relating to the administration of the relief association;
9.12 	(4) audit, actuarial, medical, legal, and investment and performance evaluation 
9.13 	expenses;
9.14 	(5) reimbursement to the officers and members of the board of trustees, or their 
9.15 	designees, for reasonable and necessary expenses actually paid and incurred in the 
9.16 	performance of their duties as officers or members of the board; and
9.17 	(6) premiums on fiduciary liability insurance and official bonds for the officers, 
9.18 	members of the board of trustees, and employees of the relief association.
9.19 	(b) Any other expenses of the relief association must be paid from the general fund 
9.20 	of the association, if one exists. If a relief association has only one fund, that fund is the 
9.21 	special fund for purposes of this section. If a relief association has a special fund and 
9.22 	a general fund, and any expense of the relief association that is directly related to the 
9.23 	purposes for which both funds were established, the payment of that expense must be 
9.24 	apportioned between the two funds on the basis of the benefits derived by each fund.

9.25 	EFFECTIVE DATE. This section is effective July 1, 2011.

9.26 	ARTICLE 4
9.27 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
9.28 	FILING AND APPLICATION FEE EXPENSES

9.29 	Section 1. Minnesota Statutes 2010, section 69.80, is amended to read:
9.30 	69.80 AUTHORIZED ADMINISTRATIVE EXPENSES.
9.31 	(a) Notwithstanding any provision of law to the contrary, the payment of the 
9.32 	following necessary, reasonable and direct expenses of maintaining, protecting and 
9.33 	administering the special fund, when provided for in the bylaws of the association and 
9.34 	approved by the board of trustees, constitutes authorized administrative expenses of a 
10.1 	police, salaried firefighters', or volunteer firefighters' relief association organized under 
10.2 	any law of this state:
10.3 	(1) office expense, including, but not limited to, rent, utilities, equipment, supplies, 
10.4 	postage, periodical subscriptions, furniture, fixtures, and salaries of administrative 
10.5 	personnel;
10.6 	(2) salaries of the president, secretary, and treasurer of the association, or their 
10.7 	designees, and any other official of the relief association to whom a salary is payable 
10.8 	under bylaws or articles of incorporation in effect on January 1, 1986, and their itemized 
10.9 	expenses incurred as a result of fulfilling their responsibilities as administrators of the 
10.10 	special fund;
10.11 	(3) tuition, registration fees, organizational dues, and other authorized expenses 
10.12 	of the officers or members of the board of trustees incurred in attending educational 
10.13 	conferences, seminars, or classes relating to the administration of the relief association;
10.14 	(4) audit, actuarial, medical, legal, and investment and performance evaluation 
10.15 	expenses;
10.16 	(5) filing and application fees payable by the relief association to federal or other 
10.17 	governmental entities;
10.18 	~~(5)~~(6) reimbursement to the officers and members of the board of trustees, or 
10.19 	their designees, for reasonable and necessary expenses actually paid and incurred in the 
10.20 	performance of their duties as officers or members of the board; and
10.21 	~~(6)~~(7) premiums on fiduciary liability insurance and official bonds for the officers, 
10.22 	members of the board of trustees, and employees of the relief association.
10.23 	(b) Any other expenses of the relief association must be paid from the general fund 
10.24 	of the association, if one exists. If a relief association has only one fund, that fund is the 
10.25 	special fund for purposes of this section. If a relief association has a special fund and 
10.26 	a general fund, and any expense of the relief association that is directly related to the 
10.27 	purposes for which both funds were established, the payment of that expense must be 
10.28 	apportioned between the two funds on the basis of the benefits derived by each fund.

10.29 	EFFECTIVE DATE. This section is effective retroactively from January 1, 2010.

10.30 	ARTICLE 5
10.31 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATION
10.32 	RETURN TO SERVICE MODIFICATIONS

10.33 	Section 1. Minnesota Statutes 2010, section 424A.01, subdivision 6, is amended to 
10.34 	read:
11.1 		Subd. 6.Return to active firefighting after break in service. (a) The requirements 
11.2 	of this section apply to all breaks in service, except breaks in service mandated by federal 
11.3 	or state law.
11.4 	(b)(1) If a firefighter who has ceased to perform or supervise fire suppression and 
11.5 	fire prevention duties for at least 60 days resumes performing active firefighting with the 
11.6 	fire department associated with the relief association, if the bylaws of the relief association 
11.7 	so permit, the firefighter may again become an active member of the relief association. A 
11.8 	firefighter who returns to active service and membership is subject to the service pension 
11.9 	calculation requirements under this section.
11.10 	(2) A firefighter who has been granted an approved leave of absence not exceeding 
11.11 	one year by the fire department or by the relief association is exempt from the minimum 
11.12 	period of resumption service requirement of this section.
11.13 	(3) A person who has a break in service not exceeding one year but has not been 
11.14 	granted an approved leave of absence and who has not received a service pension or 
11.15 	disability benefit may be made exempt from the minimum period of resumption service 
11.16 	requirement of this section by the relief association bylaws.
11.17 	(4) If the bylaws so provide, a firefighter who returns to active relief association 
11.18 	membership under this paragraph may continue to collect a monthly service pension, 
11.19 	notwithstanding the service pension eligibility requirements under chapter 424A.
11.20 	(c) If a former firefighter who has received a service pension or disability benefit 
11.21 	returns to active relief association membership under paragraph (b), the firefighter may 
11.22 	qualify for the receipt of a service pension from the relief association for the resumption 
11.23 	service period if the firefighter meets the service requirements of section 424A.016, 
11.24 	subdivision 3, or 424A.02, subdivision 2. No firefighter may be paid a service pension 
11.25 	more than once for the same period of service.
11.26 	(d) If a former firefighter who has not received a service pension or disability benefit 
11.27 	returns to active relief association membership under paragraph (b), the firefighter may 
11.28 	qualify for the receipt of a service pension from the relief association for the original 
11.29 	and resumption service ~~period~~periods if the firefighter meets the ~~minimum period of~~ 
11.30 	~~resumption service specified in the relief association bylaws and the~~ service requirements 
11.31 	of section 424A.016, subdivision 3, or 424A.02, subdivision 2, based on the original and 
11.32 	resumption years of service credit.
11.33 	(e) A firefighter who returns to active lump-sum relief association membership 
11.34 	under paragraph (b) and who qualifies for a service pension under paragraph (c) ~~or (d)~~
11.35 	must have, upon a subsequent cessation of duties, any service pension for the resumption 
11.36 	service period calculated as a separate benefit. If a lump-sum service pension had 
12.1 	been paid to the firefighter upon the firefighter's previous cessation of duties, a second 
12.2 	lump-sum service pension for the resumption service period must be calculated ~~to apply~~
12.3 	by applying the service pension amount in effect on the date of the firefighter's termination 
12.4 	of the resumption service for all years of the resumption service. ~~No firefighter may be~~ 
12.5 	~~paid a service pension twice for the same period of service. If a lump-sum service pension~~ 
12.6 	~~had not been paid to the firefighter upon the firefighter's previous cessation of duties and~~ 
12.7 	~~the firefighter meets the minimum service requirement of section 424A.016, subdivision~~ 
12.8 	~~3, or 424A.02, subdivision 2, a service pension must be calculated to apply the service~~ 
12.9 	~~pension amount in effect on the date of the firefighter's termination of the resumption~~ 
12.10 	~~service for all years of service credit.~~
12.11 	(f) A firefighter who had not been paid a lump-sum service pension returns to 
12.12 	active relief association membership under paragraph (b), who ~~does~~did not ~~qualify for~~ 
12.13 	~~a service pension under paragraph (d)~~ meet the minimum period of resumption service 
12.14 	requirement specified in the relief association's bylaws, but who does meet the minimum 
12.15 	service requirement of section ~~424A.016, subdivision 3, or~~424A.02, subdivision 2, based 
12.16 	on the firefighter's ~~previous~~original and resumption years of active service, must have, 
12.17 	upon a subsequent cessation of duties, a service pension ~~calculated~~ for the ~~previous years~~ 
12.18 	~~of~~original and resumption service ~~based on~~periods calculated by applying the service 
12.19 	pension amount in effect on the date of the firefighter's termination of the resumption 
12.20 	service, or, if the bylaws so provide, based on the service pension amount in effect on the 
12.21 	date of the firefighter's previous cessation of duties. The service pension for a firefighter 
12.22 	who returns to active lump-sum relief association membership under this paragraph, but 
12.23 	who had met the minimum period of resumption service requirement specified in the relief 
12.24 	association's bylaws, must be calculated by applying the service pension amount in effect 
12.25 	on the date of the firefighter's termination of the resumption service.
12.26 	(g) If a firefighter receiving a monthly benefit service pension returns to active 
12.27 	monthly benefit relief association membership under paragraph (b), and if the relief 
12.28 	association bylaws do not allow for the firefighter to continue collecting a monthly service 
12.29 	pension, any monthly benefit service pension payable to the firefighter is suspended as 
12.30 	of the first day of the month next following the date on which the firefighter returns to 
12.31 	active membership. If the firefighter was receiving a monthly benefit service pension, and 
12.32 	qualifies for a service pension under paragraph (c), the firefighter is entitled to an additional 
12.33 	monthly benefit service pension upon a subsequent cessation of duties calculated based 
12.34 	on the resumption service credit and the service pension accrual amount in effect on the 
12.35 	date of the termination of the resumption service. A suspended initial service pension 
12.36 	resumes as of the first of the month next following the termination of the resumption 
13.1 	service. If the firefighter was not receiving a monthly benefit service pension and meets 
13.2 	the minimum service requirement of section 424A.02, subdivision 2, a service pension 
13.3 	must be calculated ~~to apply~~by applying the service pension amount in effect on the date 
13.4 	of the firefighter's termination of the resumption service for all years of service credit.
13.5 	(h) A firefighter who was not receiving a monthly benefit service pension returns to 
13.6 	active relief association membership under paragraph (b), who ~~does~~did not ~~qualify for~~ 
13.7 	~~a service pension under paragraph (d)~~ meet the minimum period of resumption service 
13.8 	requirement specified in the relief association's bylaws, but who does meet the minimum 
13.9 	service requirement of section 424A.02, subdivision 2, based on the firefighter's ~~previous~~
13.10 	original and resumption years of active service, must have, upon a subsequent cessation 
13.11 	of duties, a service pension ~~calculated~~ for the ~~previous years of~~original and resumption 
13.12 	service ~~based on~~periods calculated by applying the service pension amount in effect on 
13.13 	the date of the firefighter's termination of the resumption service, or, if the bylaws so 
13.14 	provide, based on the service pension amount in effect on the date of the firefighter's 
13.15 	previous cessation of duties. The service pension for a firefighter who returns to active 
13.16 	relief association membership under this paragraph, but who had met the minimum period 
13.17 	of resumption service requirement specified in the relief association's bylaws, must be 
13.18 	calculated by applying the service pension amount in effect on the date of the firefighter's 
13.19 	termination of the resumption service.
13.20 	(i) For defined contribution plans, a firefighter who returns to active relief 
13.21 	association membership under paragraph (b) and who qualifies for a service pension 
13.22 	under paragraph (c) or (d) must have, upon a subsequent cessation of duties, any service 
13.23 	pension for the resumption service period calculated as a separate benefit. If a service 
13.24 	pension had been paid to the firefighter upon the firefighter's previous cessation of duties, 
13.25 	and if the firefighter meets the minimum service requirement of section 424A.016, 
13.26 	subdivision 3, based on the resumption years of service, a second service pension for 
13.27 	the resumption service period must be calculated to include allocations credited to the 
13.28 	firefighter's individual account during the resumption period of service and deductions 
13.29 	for administrative expenses, if applicable.
13.30 	(j) For defined contribution plans, if a firefighter who had not been paid a service 
13.31 	pension returns to active relief association membership under paragraph (b), and who 
13.32 	meets the minimum service requirement of section 424A.016, subdivision 3, based on 
13.33 	the firefighter's original and resumption years of service, must have, upon a subsequent 
13.34 	cessation of duties, a service pension for the original and resumption service periods 
13.35 	calculated to include allocations credited to the firefighter's individual account during the 
14.1 	resumption period of service and deductions for administrative expenses, if applicable, 
14.2 	less any amounts previously forfeited under section 424A.016, subdivision 4.

14.3 	EFFECTIVE DATE. This section is effective July 1, 2011.

14.4 	ARTICLE 6
14.5 	DEFINED CONTRIBUTION VOLUNTEER FIREFIGHTER RELIEF 
14.6 	ASSOCIATION SURVIVOR BENEFIT INSTALLMENT PAYMENTS

14.7 	Section 1. Minnesota Statutes 2010, section 424A.016, subdivision 5, is amended to 
14.8 	read:
14.9 		Subd. 5.Service pension installment payments. (a) A defined contribution relief 
14.10 	association, if the governing bylaws so provide, may pay, at the option of the ~~retiring~~ 
14.11 	~~member~~intended recipient and in lieu of a single payment of a service pension or a 
14.12 	survivor benefit, the service pension  or survivor benefit in installments.
14.13 	(b) The election of installment payments is irrevocable and must be made by the 
14.14 	~~retiring member~~intended recipient in writing and filed with the secretary of the relief 
14.15 	association no later than 30 days before the commencement of payment of the service 
14.16 	pension or survivor benefit.
14.17 	(c) The amount of the installment payments must be the fractional portion of the 
14.18 	remaining account balance equal to one divided by the number of remaining annual 
14.19 	installment payments.

14.20 	EFFECTIVE DATE. This section is effective July 1, 2011.

14.21 	ARTICLE 7
14.22 	MEMBER DUES AS VOLUNTEER FIREFIGHTER
14.23 	RELIEF ASSOCIATION SPECIAL FUND CONTRIBUTIONS

14.24 	Section 1. Minnesota Statutes 2010, section 424A.06, subdivision 2, is amended to 
14.25 	read:
14.26 		Subd. 2.General fund assets and revenues. ~~To~~(a) The general fund, if established, 
14.27 	must be credited with the following:
14.28 	(1) all ~~moneys~~ money received from dues~~,~~other than dues payable as contributions 
14.29 	under the bylaws of the relief association to the special fund;
14.30 	(2) all money received from fines~~,~~;
14.31 	(3) all money received from  initiation fees~~,~~;
14.32 	(4) all money received as  entertainment revenues; and
15.1 	(5) any ~~moneys~~ money or property donated, given, granted or devised by any 
15.2 	person, either for the support of the general fund of the relief association or for unspecified 
15.3 	~~uses~~ purposes.
15.4 	(b) The treasurer of the relief association is the custodian of the assets of the general 
15.5 	fund and must be the recipient on behalf of the general fund of all revenues payable to the 
15.6 	general fund. The treasurer shall maintain adequate records documenting any transaction 
15.7 	involving the assets or the revenues of the general fund. These records must be open for 
15.8 	inspection by any member of the relief association at reasonable times and places.

15.9 	EFFECTIVE DATE. This section is effective July 1, 2011.

15.10 	ARTICLE 8
15.11 	TECHNICAL CHANGES RELATED TO
15.12 	VOLUNTEER FIREFIGHTER RELIEF ASSOCIATIONS

15.13 	Section 1. Minnesota Statutes 2010, section 69.051, subdivision 1, is amended to read:
15.14 		Subdivision 1.Financial report and audit. The board of each salaried firefighters 
15.15 	relief association, police relief association, and volunteer firefighters relief association as 
15.16 	defined in section 424A.001, subdivision 4, with assets of at least $200,000 or liabilities 
15.17 	of at least $200,000 in the prior year or in any previous year, according to the applicable 
15.18 	actuarial valuation or financial report if no valuation is required, shall:
15.19 	(1) prepare a financial report covering the special and general funds of the relief 
15.20 	association for the preceding fiscal year on a form prescribed by the state auditor. The 
15.21 	financial report must contain financial statements and disclosures which present the true 
15.22 	financial condition of the relief association and the results of relief association operations 
15.23 	in conformity with generally accepted accounting principles and in compliance with the 
15.24 	regulatory, financing and funding provisions of this chapter and any other applicable laws. 
15.25 	The financial report must be countersigned by the municipal clerk or clerk-treasurer of 
15.26 	the municipality in which the relief association is located if the relief association is a 
15.27 	firefighters relief association which is directly associated with a municipal fire department 
15.28 	or is a police relief association, or countersigned by the secretary of the independent 
15.29 	nonprofit firefighting corporation and by the municipal clerk or clerk-treasurer of the 
15.30 	largest municipality in population which contracts with the independent nonprofit 
15.31 	firefighting corporation if the volunteer firefighter relief association is a subsidiary of an 
15.32 	independent nonprofit firefighting corporation;
16.1 	(2) file the financial report in its office for public inspection and present it to the city 
16.2 	council after the close of the fiscal year. One copy of the financial report must be furnished 
16.3 	to the state auditor after the close of the fiscal year; and
16.4 	(3) submit to the state auditor audited financial statements which have been attested 
16.5 	to by a certified public accountant~~, public accountant,~~ or the state auditor within 180 
16.6 	days after the close of the fiscal year. The state auditor may accept this report in lieu of 
16.7 	the report required in clause (2).

16.8 	EFFECTIVE DATE. This section is effective the day following final enactment.

16.9 	Sec. 2. Minnesota Statutes 2010, section 69.051, subdivision 3, is amended to read:
16.10 		Subd. 3.Report by certain municipalities. (a) Each municipality which has 
16.11 	an organized fire department but which does not have a firefighters' relief association 
16.12 	governed by section 69.77 or sections 69.771 to 69.775 and which is not exempted 
16.13 	under paragraph (b) shall annually prepare a detailed financial report of the receipts and 
16.14 	disbursements by the municipality for fire protection service during the preceding calendar 
16.15 	year, on a form prescribed by the state auditor. The financial report must contain any 
16.16 	information which the state auditor deems necessary to disclose the sources of receipts 
16.17 	and the purpose of disbursements for fire protection service. The financial report must be 
16.18 	signed by the municipal clerk or clerk-treasurer of the municipality. The financial report 
16.19 	must be filed by the municipal clerk or clerk-treasurer with the state auditor on or before 
16.20 	July 1 annually. ~~The state auditor shall forward one copy to the county auditor of the~~ 
16.21 	~~county wherein the municipality is located.~~ The municipality shall not qualify initially to 
16.22 	receive, or be entitled subsequently to retain, state aid under this chapter if the financial 
16.23 	reporting requirement or the applicable requirements of this chapter or any other statute or 
16.24 	special law have not been complied with or are not fulfilled.
16.25 	(b) Each municipality that has an organized fire department and provides retirement 
16.26 	coverage to its firefighters through the voluntary statewide lump-sum volunteer firefighter 
16.27 	retirement plan under chapter 353G qualifies to have fire state aid transmitted to and 
16.28 	retained in the statewide lump-sum volunteer firefighter retirement fund without filing 
16.29 	a detailed financial report if the executive director of the Public Employees Retirement 
16.30 	Association certifies compliance by the municipality with the requirements of sections 
16.31 	353G.04 and 353G.08, paragraph (e), and by the applicable fire chief with the requirements 
16.32 	of section 353G.07.

16.33 	EFFECTIVE DATE. This section is effective the day following final enactment.

17.1 	Sec. 3. Minnesota Statutes 2010, section 424A.001, subdivision 4, is amended to read:
17.2 		Subd. 4.Relief association. (a) "Relief association" or "volunteer firefighters' 
17.3 	relief association" means ~~(1)~~ a volunteer firefighters' relief association or a volunteer 
17.4 	firefighters' division or account of a partially salaried and partially volunteer firefighters' 
17.5 	relief association that is:
17.6 	(1) organized and incorporated as a nonprofit corporation to provide retirement 
17.7 	benefits to volunteer firefighters under chapter 317A and any laws of the state~~,~~;
17.8 	(2) is governed by this chapter and ~~chapter 69,~~ sections 69.771 to 69.775; and
17.9 	(3) is directly associated with:
17.10 	(i) a fire department established by municipal ordinance; ~~or~~
17.11 	~~(2) any separately incorporated volunteer firefighters' relief association that is~~ 
17.12 	~~subsidiary to and that provides service pension and retirement benefit coverage for~~ 
17.13 	~~members of~~(ii) an independent nonprofit firefighting corporation that is organized under 
17.14 	the provisions of chapter 317A~~, is governed by this chapter,~~ and that operates ~~exclusively~~
17.15 	primarily for firefighting purposes; or
17.16 	(iii) a fire department operated as or by a joint powers entity that operates primarily 
17.17 	for firefighting purposes.
17.18 	(b) "Relief association" or "volunteer firefighters' relief association" does not mean:
17.19 	(1) the Bloomington Fire Department Relief Association governed by section 69.77; 
17.20 	Minnesota Statutes 2000, chapter 424; and Laws 1965, chapter 446, as amended;
17.21 	(2) the Minneapolis Firefighters Relief Association governed by section 69.77; 
17.22 	chapter 423A, and chapter 423C;
17.23 	(3) the Virginia Fire Department Relief Association governed by section 69.77; 
17.24 	chapter 423A; and Laws 1953, chapter 399, as amended; or
17.25 	(4) the voluntary statewide lump-sum volunteer firefighter retirement plan governed 
17.26 	by Minnesota Statutes, chapter 353G.
17.27 	(c) A relief association or volunteer firefighters' relief association is a governmental 
17.28 	entity that receives and manages public money to provide retirement benefits for 
17.29 	individuals providing the governmental services of firefighting and emergency first 
17.30 	response.

17.31 	EFFECTIVE DATE. This section is effective the day following final enactment.

17.32 	Sec. 4. Minnesota Statutes 2010, section 424A.02, subdivision 9, is amended to read:
17.33 		Subd. 9.Limitation on ancillary benefits. A defined benefit relief association, 
17.34 	including any volunteer firefighters relief association governed by section 69.77 or any 
17.35 	volunteer firefighters division of a relief association governed by chapter 424, may only 
18.1 	pay ancillary benefits which would constitute an authorized disbursement as specified in 
18.2 	section 424A.05 subject to the following requirements or limitations:
18.3 	(1) with respect to a defined benefit relief association in which governing bylaws 
18.4 	provide for a lump-sum service pension to a retiring member, no ancillary benefit may 
18.5 	be paid to any former member or paid to any person on behalf of any former member 
18.6 	after the former member (i) terminates active service with the fire department and active 
18.7 	membership in the relief association; and (ii) commences receipt of a service pension as 
18.8 	authorized under this section; and
18.9 	(2) with respect to any defined benefit relief association, no ancillary benefit paid or 
18.10 	payable to any member, to any former member, or to any person on behalf of any member 
18.11 	or former member, may exceed in amount the total earned service pension of the member 
18.12 	or former member. The total earned service pension must be calculated by multiplying 
18.13 	the service pension amount specified in the bylaws of the relief association at the time of 
18.14 	death or disability, whichever applies, by the years of service credited to the member or 
18.15 	former member. The years of service must be determined as of (i) the date the member or 
18.16 	former member became entitled to the ancillary benefit; or (ii) the date the member or 
18.17 	former member died entitling a survivor or the estate of the member or former member to 
18.18 	an ancillary benefit. The ancillary benefit must be calculated without regard to whether the 
18.19 	member had attained the minimum amount of service and membership credit specified in 
18.20 	the governing bylaws. For active members, the amount of a permanent disability benefit 
18.21 	or a survivor benefit must be equal to the member's total earned service pension except 
18.22 	that the bylaws of a defined benefit relief association may provide for the payment of a 
18.23 	survivor benefit in an amount not to exceed five times the yearly service pension amount 
18.24 	specified in the bylaws on behalf of any member who dies before having performed five 
18.25 	years of active service in the fire department with which the relief association is affiliated.
18.26 	(3)(i) If a lump sum survivor or death benefit is payable under the articles of 
18.27 	incorporation or bylaws, the benefit must be paid:
18.28 	(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
18.29 	(B) as a survivor benefit to the surviving children of the deceased firefighter if 
18.30 	no surviving spouse;
18.31 	(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
18.32 	surviving spouse or surviving children; or
18.33 	(D) as a death benefit to the estate of the deceased active or deferred firefighter if no 
18.34 	surviving spouse, no surviving children, and no beneficiary designated.
18.35 	(ii) If there are no surviving children, the surviving spouse may waive, in writing, 
18.36 	wholly or partially, the spouse's entitlement to a survivor benefit.
19.1 	(4)(i) If a monthly benefit survivor or death benefit is payable under the articles of 
19.2 	incorporation or bylaws, the benefit must be paid:
19.3 	(A) as a survivor benefit to the surviving spouse of the deceased firefighter;
19.4 	(B) as a survivor benefit to the surviving children of the deceased firefighter if 
19.5 	no surviving spouse;
19.6 	(C) as a survivor benefit to a designated beneficiary of the deceased firefighter if no 
19.7 	surviving spouse or surviving children; or
19.8 	(D) as a death benefit to the estate of the deceased active or deferred firefighter if no 
19.9 	surviving spouse, no surviving children, and no beneficiary designated.
19.10 	(ii) If there are no surviving children, the surviving spouse may waive, in writing, 
19.11 	wholly or partially, the spouse's entitlement to a survivor benefit.
19.12 	(iii) For purposes of this clause, if the relief association bylaws authorize a monthly 
19.13 	survivor benefit payable to a designated beneficiary, the relief association bylaws may 
19.14 	limit the total survivor benefit amount payable.
19.15 	(5) For purposes of this section, for a monthly benefit volunteer fire relief association 
19.16 	or for a combination lump-sum and monthly benefit volunteer fire relief association where 
19.17 	a monthly benefit service pension has been elected by or a monthly benefit is payable with 
19.18 	respect to a firefighter, a designated beneficiary must be a natural person. For purposes 
19.19 	of this section, for a lump-sum volunteer fire relief association or for a combination 
19.20 	lump-sum and monthly benefit volunteer fire relief association where a lump-sum service 
19.21 	pension has been elected by or a lump-sum benefit is payable with respect to a firefighter, 
19.22 	a trust created under chapter 501B may be a designated beneficiary. If a trust is payable to 
19.23 	the surviving children organized under chapter 501B as authorized by this section and 
19.24 	there is no surviving spouse, the survivor benefit may be paid to the trust, notwithstanding 
19.25 	a requirement of this section to the contrary.

19.26 	EFFECTIVE DATE. This section is effective the day following final enactment.

19.27 	Sec. 5. Minnesota Statutes 2010, section 424A.04, subdivision 3, is amended to read:
19.28 		Subd. 3.Conditions on relief association consultants. (a) If a volunteer firefighter 
19.29 	relief association employs or contracts with a consultant to provide legal or financial 
19.30 	advice, the secretary of the relief association shall obtain and the consultant shall provide 
19.31 	to the secretary of the relief association a copy of the consultant's certificate of insurance.
19.32 	(b) A consultant is any person who is employed under contract to provide legal or 
19.33 	financial advice and who is or who represents to the volunteer firefighter relief association 
19.34 	that the person is:
19.35 	(1) an actuary;
20.1 	(2) ~~a licensed public accountant or~~ a certified public accountant;
20.2 	(3) an attorney;
20.3 	(4) an investment advisor or manager, or an investment counselor;
20.4 	(5) an investment advisor or manager selection consultant;
20.5 	(6) a pension benefit design advisor or consultant; or
20.6 	(7) any other financial consultant.

20.7 	EFFECTIVE DATE. This section is effective the day following final enactment.