1.1 	A bill for an act
1.2 	relating to fire aid; changing the definition of market value for purposes of the fire 
1.3 	aid distribution formula;amending Minnesota Statutes 2004, sections 69.011, 
1.4 	subdivision 1; 69.021, subdivision 7.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. Minnesota Statutes 2004, section 69.011, subdivision 1, is amended to read:
1.7 		Subdivision 1.Definitions. Unless the language or context clearly indicates that a 
1.8 	different meaning is intended, the following words and terms shall for the purposes of this 
1.9 	chapter and chapters 423, 423A, 424 and 424A have the meanings ascribed to them:
1.10 	(a) "Commissioner" means the commissioner of revenue.
1.11 	(b) "Municipality" means:
1.12 	(1) a home rule charter or statutory city;
1.13 	(2) an organized town;
1.14 	(3) a park district subject to chapter 398;
1.15 	(4) the University of Minnesota;
1.16 	(5) for purposes of the fire state aid program only, an American Indian tribal 
1.17 	government entity located within a federally recognized American Indian reservation;
1.18 	(6) for purposes of the police state aid program only, an American Indian tribal 
1.19 	government with a tribal police department which exercises state arrest powers under 
1.20 	section  626.90,  626.91,  626.92, or  626.93; 
1.21 	(7) for purposes of the police state aid program only, the Metropolitan Airports 
1.22 	Commission with respect to peace officers covered under chapter 422A; and
2.1 	(8) for purposes of the police state aid program only, the Department of Natural 
2.2 	Resources and the Department of Public Safety with respect to peace officers covered 
2.3 	under chapter 352B.
2.4 	(c) "Minnesota Firetown Premium Report" means a form prescribed by the 
2.5 	commissioner containing space for reporting by insurers of fire, lightning, sprinkler 
2.6 	leakage and extended coverage premiums received upon risks located or to be performed 
2.7 	in this state less return premiums and dividends.
2.8 	(d) "Firetown" means the area serviced by any municipality having a qualified fire 
2.9 	department or a qualified incorporated fire department having a subsidiary volunteer 
2.10 	firefighters' relief association.
2.11 	(e) "Market value" means the sum of: 
2.12 	(1) the latest available market value of all property in a taxing jurisdiction, whether 
2.13 	the property is subject to taxation, or exempt from ad valorem taxation obtained from 
2.14 	information which appears on abstracts filed with the commissioner of revenue or 
2.15 	equalized by the State Board of Equalization; and 
2.16 	(2) the quotient resulting from (i) the taxes paid in the preceding calendar year in 
2.17 	lieu of property taxes but not included in clause (1), including but not limited to the wind 
2.18 	energy production tax under chapter 272 and the taconite production tax under chapter 
2.19 	298, divided by (ii) three percent.
2.20 	(f) "Minnesota Aid to Police Premium Report" means a form prescribed by the 
2.21 	commissioner for reporting by each fire and casualty insurer of all premiums received 
2.22 	upon direct business received by it in this state, or by its agents for it, in cash or otherwise, 
2.23 	during the preceding calendar year, with reference to insurance written for insuring against 
2.24 	the perils contained in auto insurance coverages as reported in the Minnesota business 
2.25 	schedule of the annual financial statement which each insurer is required to file with 
2.26 	the commissioner in accordance with the governing laws or rules less return premiums 
2.27 	and dividends.
2.28 	(g) "Peace officer" means any person:
2.29 	(1) whose primary source of income derived from wages is from direct employment 
2.30 	by a municipality or county as a law enforcement officer on a full-time basis of not less 
2.31 	than 30 hours per week;
2.32 	(2) who has been employed for a minimum of six months prior to December 31 
2.33 	preceding the date of the current year's certification under subdivision 2, clause (b);
2.34 	(3) who is sworn to enforce the general criminal laws of the state and local 
2.35 	ordinances;
3.1 	(4) who is licensed by the Peace Officers Standards and Training Board and is 
3.2 	authorized to arrest with a warrant; and
3.3 	(5) who is a member of a local police relief association to which section  69.77
3.4 	applies, the State Patrol retirement plan, the public employees police and fire fund, or the 
3.5 	Minneapolis Employees Retirement Fund. 
3.6 	(h) "Full-time equivalent number of peace officers providing contract service" means 
3.7 	the integral or fractional number of peace officers which would be necessary to provide 
3.8 	the contract service if all peace officers providing service were employed on a full-time 
3.9 	basis as defined by the employing unit and the municipality receiving the contract service.
3.10 	(i) "Retirement benefits other than a service pension" means any disbursement 
3.11 	authorized under section  424A.05, subdivision 3, clauses (2), (3), and (4). 
3.12 	(j) "Municipal clerk, municipal clerk-treasurer, or county auditor" means the person 
3.13 	who was elected or appointed to the specified position or, in the absence of the person, 
3.14 	another person who is designated by the applicable governing body. In a park district, 
3.15 	the clerk is the secretary of the board of park district commissioners. In the case of the 
3.16 	University of Minnesota, the clerk is that official designated by the Board of Regents. 
3.17 	For the Metropolitan Airports Commission, the clerk is the person designated by the 
3.18 	commission. For the Department of Natural Resources or the Department of Public Safety, 
3.19 	the clerk is the respective commissioner. For a tribal police department which exercises 
3.20 	state arrest powers under section  626.90,  626.91,  626.92, or  626.93, the clerk is the person 
3.21 	designated by the applicable American Indian tribal government. 

3.22 	EFFECTIVE DATE. This section is effective for distributions made in 2007 and 
3.23 	thereafter.

3.24 	Sec. 2. Minnesota Statutes 2004, section 69.021, subdivision 7, is amended to read:
3.25 		Subd. 7.Apportionment of fire state aid to municipalities and relief associations.
 3.26 	(a) The commissioner shall apportion the fire state aid relative to the premiums reported 
3.27 	on the Minnesota Firetown Premium Reports filed under this chapter to each municipality 
3.28 	and/or firefighters relief association.
3.29 	(b) The commissioner shall calculate an initial fire state aid allocation amount for 
3.30 	each municipality or fire department under paragraph (c) and a minimum fire state aid 
3.31 	allocation amount for each municipality or fire department under paragraph (d). The 
3.32 	municipality or fire department must receive the larger fire state aid amount.
3.33 	(c) The initial fire state aid allocation amount is the amount available for 
3.34 	apportionment as fire state aid under subdivision 5, without inclusion of any additional 
3.35 	funding amount to support a minimum fire state aid amount under section   423A.02, 
4.1 	subdivision 3, allocated one-half in proportion to the population as shown in the last 
4.2 	official statewide federal census for each fire town and one-half in proportion to the market 
4.3 	value of each fire town, including (1) the market value of tax exempt property and, (2) 
4.4 	the market value of natural resources lands receiving in lieu payments under sections 
4.5 	477A.11 to 477A.14, but excluding the market value of minerals, and (3) the amount 
4.6 	under section 69.011, subdivision 1, paragraph (e), clause (2). In the case of incorporated 
4.7 	or municipal fire departments furnishing fire protection to other cities, towns, or townships 
4.8 	as evidenced by valid fire service contracts filed with the commissioner, the distribution 
4.9 	must be adjusted proportionately to take into consideration the crossover fire protection 
4.10 	service. Necessary adjustments shall be made to subsequent apportionments. In the case 
4.11 	of municipalities or independent fire departments qualifying for the aid, the commissioner 
4.12 	shall calculate the state aid for the municipality or relief association on the basis of the 
4.13 	population and the market value of the area furnished fire protection service by the fire 
4.14 	department as evidenced by duly executed and valid fire service agreements filed with the 
4.15 	commissioner. If one or more fire departments are furnishing contracted fire service to a 
4.16 	city, town, or township, only the population and market value of the area served by each 
4.17 	fire department may be considered in calculating the state aid and the fire departments 
4.18 	furnishing service shall enter into an agreement apportioning among themselves the 
4.19 	percent of the population and the market value of each service area. The agreement must 
4.20 	be in writing and must be filed with the commissioner. 
4.21 	(d)  The minimum fire state aid allocation amount is the amount in addition to the 
4.22 	initial fire state allocation amount that is derived from any additional funding amount 
4.23 	to support a minimum fire state aid amount under section   423A.02, subdivision 3, and 
4.24 	allocated to municipalities with volunteer firefighters relief associations based on the 
4.25 	number of active volunteer firefighters who are members of the relief association as 
4.26 	reported in the annual financial reporting for the calendar year 1993 to the Office of the 
4.27 	State Auditor, but not to exceed 30 active volunteer firefighters, so that all municipalities 
4.28 	or fire departments with volunteer firefighters relief associations receive in total at least 
4.29 	a minimum fire state aid amount per 1993 active volunteer firefighter to a maximum of 
4.30 	30 firefighters. If a relief association is established after calendar year 1993 and before 
4.31 	calendar year 2000, the number of active volunteer firefighters who are members of the 
4.32 	relief association as reported in the annual financial reporting for calendar year 1998 to 
4.33 	the Office of the State Auditor, but not to exceed 30 active volunteer firefighters, shall be 
4.34 	used in this determination. If a relief association is established after calendar year 1999, 
4.35 	the number of active volunteer firefighters who are members of the relief association as 
5.1 	reported in the first annual financial reporting submitted to the Office of the State Auditor, 
5.2 	but not to exceed 20 active volunteer firefighters, must be used in this determination. 
5.3 	(e)  The fire state aid must be paid to the treasurer of the municipality where the fire 
5.4 	department is located and the treasurer of the municipality shall, within 30 days of receipt 
5.5 	of the fire state aid, transmit the aid to the relief association if the relief association has 
5.6 	filed a financial report with the treasurer of the municipality and has met all other statutory 
5.7 	provisions pertaining to the aid apportionment.
5.8 	(f) The commissioner may make rules to permit the administration of the provisions 
5.9 	of this section.
5.10 	(g) Any adjustments needed to correct prior misallocations must be made to 
5.11 	subsequent apportionments.

5.12 	EFFECTIVE DATE. This section is effective for distributions made in 2007 and 
5.13 	thereafter.