1.1                          A bill for an act 
  1.2             relating to retirement; various state retirement aid 
  1.3             programs; conditioning state aid receipt on compliance 
  1.4             with economic interest and investment business 
  1.5             recipient disclosure requirements; amending Minnesota 
  1.6             Statutes 2000, sections 10A.02, subdivision 8; 69.021, 
  1.7             subdivisions 4, 7, 7a; 354A.12, subdivision 3a; 
  1.8             356A.06, subdivision 5; 422A.101, subdivision 3. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 2000, section 10A.02, 
  1.11  subdivision 8, is amended to read: 
  1.12     Subd. 8.  [DUTIES.] (a) The board must report at the close 
  1.13  of each fiscal year to the legislature, the governor, and the 
  1.14  public concerning the action it has taken, the names, salaries, 
  1.15  and duties of all individuals in its employ, and the money it 
  1.16  has disbursed.  The board must include and identify in its 
  1.17  report any other reports it has made during the fiscal year.  It 
  1.18  may indicate apparent abuses and offer legislative 
  1.19  recommendations. 
  1.20     (b) The board must prescribe forms for statements and 
  1.21  reports required to be filed under this chapter and make the 
  1.22  forms available to individuals required to file them. 
  1.23     (c) The board must make available to the individuals 
  1.24  required to file the reports and statements a manual setting 
  1.25  forth the recommended uniform methods of bookkeeping and 
  1.26  reporting. 
  1.27     (d) The board must develop a filing, coding, and 
  2.1   cross-indexing system consistent with the purposes of this 
  2.2   chapter. 
  2.3      (e) The board must make the reports and statements filed 
  2.4   with it available for public inspection and copying by the end 
  2.5   of the second day following the day on which they were 
  2.6   received.  An individual may copy a report or statement by hand 
  2.7   or by duplicating machine and the board must provide duplicating 
  2.8   services at cost for this purpose.  
  2.9      (f) Notwithstanding section 138.163, the board must 
  2.10  preserve reports and statements for a period of five years from 
  2.11  the date of receipt. 
  2.12     (g) The board must compile and maintain a current list and 
  2.13  summary of all statements or parts of statements pertaining to 
  2.14  each candidate. 
  2.15     (h) The board must compile and maintain a current list of 
  2.16  pension plans filing economic interest statements required under 
  2.17  section 356A.06, subdivision 4, and must certify the list to the 
  2.18  commissioners of revenue and finance by August 1 annually. 
  2.19     (i) The board may prepare and publish reports it considers 
  2.20  appropriate. 
  2.21     Sec. 2.  Minnesota Statutes 2000, section 69.021, 
  2.22  subdivision 4, is amended to read: 
  2.23     Subd. 4.  [DETERMINATION OF QUALIFIED STATE AID RECIPIENTS; 
  2.24  CERTIFICATION TO COMMISSIONER OF FINANCE.] (a) The commissioner 
  2.25  shall determine which municipalities and independent nonprofit 
  2.26  firefighting corporations are qualified to receive fire state 
  2.27  aid and which municipalities and counties are qualified to 
  2.28  receive police state aid.  
  2.29     (b) The commissioner shall determine qualification for 
  2.30  state aid upon receipt of: 
  2.31     (1) the fire department personnel and equipment 
  2.32  certification or the police department and qualified peace 
  2.33  officers certificate, whichever applies, required under section 
  2.34  69.011; 
  2.35     (2) the financial compliance report required under section 
  2.36  6.495, subdivision 3, if applicable; ~~and~~ 
  3.1      (3) the economic interest statement filing certification 
  3.2   from the campaign finance and public disclosure board; 
  3.3      (4) the investment business recipient disclosure 
  3.4   certification from the executive director of the legislative 
  3.5   commission on pensions and retirement; and 
  3.6      (5) any other relevant information which comes to the 
  3.7   attention of the commissioner. 
  3.8      (c) Upon completion of the determination, on or before 
  3.9   October 1, the commissioner shall calculate the amount of: 
  3.10     (1) the police state aid which each county or municipality 
  3.11  is to receive under subdivisions 5, 6, 7a, and 10; and 
  3.12     (2) the fire state aid which each municipality or nonprofit 
  3.13  firefighting corporation is to receive under subdivisions 5 and 
  3.14  7. 
  3.15     (d) The commissioner shall certify to the commissioner of 
  3.16  finance the name of each county or municipality, and the amount 
  3.17  of state aid which each county or municipality is to receive, in 
  3.18  the case of police state aid.  The commissioner shall certify to 
  3.19  the commissioner of finance the name of each municipality or 
  3.20  independent nonprofit firefighting corporation and the amount of 
  3.21  state aid which each municipality or independent nonprofit 
  3.22  firefighting corporation is to receive, in the case of fire 
  3.23  state aid. 
  3.24     Sec. 3.  Minnesota Statutes 2000, section 69.021, 
  3.25  subdivision 7, is amended to read: 
  3.26     Subd. 7.  [APPORTIONMENT OF FIRE STATE AID TO 
  3.27  MUNICIPALITIES AND RELIEF ASSOCIATIONS.] (a) If the pension plan 
  3.28  associated with the municipality has complied with the filing 
  3.29  requirements of section 356A.06, subdivisions 4 and 5, during 
  3.30  the previous year, the commissioner shall apportion the fire 
  3.31  state aid relative to the premiums reported on the Minnesota 
  3.32  Firetown Premium Reports filed under this chapter to each 
  3.33  municipality and/or firefighters relief association.  
  3.34     (b) The commissioner shall calculate an initial fire state 
  3.35  aid allocation amount for each municipality or fire department 
  3.36  under paragraph (c) and a minimum fire state aid allocation 
  4.1   amount for each municipality or fire department under paragraph 
  4.2   (d).  The municipality or fire department must receive the 
  4.3   larger fire state aid amount. 
  4.4      (c) The initial fire state aid allocation amount is the 
  4.5   amount available for apportionment as fire state aid under 
  4.6   subdivision 5, without inclusion of any additional funding 
  4.7   amount to support a minimum fire state aid amount under section 
  4.8   423A.02, subdivision 3, allocated one-half in proportion to the 
  4.9   population as shown in the last official statewide federal 
  4.10  census for each fire town and one-half in proportion to the 
  4.11  market value of each fire town, including (1) the market value 
  4.12  of tax exempt property and (2) the market value of natural 
  4.13  resources lands receiving in lieu payments under sections 
  4.14  477A.11 to 477A.14, but excluding the market value of minerals.  
  4.15  In the case of incorporated or municipal fire departments 
  4.16  furnishing fire protection to other cities, towns, or townships 
  4.17  as evidenced by valid fire service contracts filed with the 
  4.18  commissioner, the distribution must be adjusted proportionately 
  4.19  to take into consideration the crossover fire protection 
  4.20  service.  Necessary adjustments shall be made to subsequent 
  4.21  apportionments.  In the case of municipalities or independent 
  4.22  fire departments qualifying for the aid, the commissioner shall 
  4.23  calculate the state aid for the municipality or relief 
  4.24  association on the basis of the population and the market value 
  4.25  of the area furnished fire protection service by the fire 
  4.26  department as evidenced by duly executed and valid fire service 
  4.27  agreements filed with the commissioner.  If one or more fire 
  4.28  departments are furnishing contracted fire service to a city, 
  4.29  town, or township, only the population and market value of the 
  4.30  area served by each fire department may be considered in 
  4.31  calculating the state aid and the fire departments furnishing 
  4.32  service shall enter into an agreement apportioning among 
  4.33  themselves the percent of the population and the market value of 
  4.34  each service area.  The agreement must be in writing and must be 
  4.35  filed with the commissioner. 
  4.36     (d) The minimum fire state aid allocation amount is the 
  5.1   amount in addition to the initial fire state allocation amount 
  5.2   that is derived from any additional funding amount to support a 
  5.3   minimum fire state aid amount under section 423A.02, subdivision 
  5.4   3, and allocated to municipalities with volunteer firefighters 
  5.5   relief associations based on the number of active volunteer 
  5.6   firefighters who are members of the relief association as 
  5.7   reported in the annual financial reporting for the calendar year 
  5.8   1993 to the office of the state auditor, but not to exceed 30 
  5.9   active volunteer firefighters, so that all municipalities or 
  5.10  fire departments with volunteer firefighters relief associations 
  5.11  receive in total at least a minimum fire state aid amount per 
  5.12  1993 active volunteer firefighter to a maximum of 30 
  5.13  firefighters.  If a relief association is established after 
  5.14  calendar year 1993 and before calendar year 2000, the number of 
  5.15  active volunteer firefighters who are members of the relief 
  5.16  association as reported in the annual financial reporting for 
  5.17  calendar year 1998 to the office of the state auditor, but not 
  5.18  to exceed 30 active volunteer firefighters, shall be used in 
  5.19  this determination.  If a relief association is established 
  5.20  after calendar year 1999, the number of active volunteer 
  5.21  firefighters who are members of the relief association as 
  5.22  reported in the first annual financial reporting submitted to 
  5.23  the office of the state auditor, but not to exceed 20 active 
  5.24  volunteer firefighters, must be used in this determination. 
  5.25     (e) The fire state aid must be paid to the treasurer of the 
  5.26  municipality where the fire department is located and the 
  5.27  treasurer of the municipality shall, within 30 days of receipt 
  5.28  of the fire state aid, transmit the aid to the relief 
  5.29  association if the relief association has filed a financial 
  5.30  report with the treasurer of the municipality and has met all 
  5.31  other statutory provisions pertaining to the aid apportionment. 
  5.32     (f) The commissioner may make rules to permit the 
  5.33  administration of the provisions of this section.  
  5.34     (g) Any adjustments needed to correct prior misallocations 
  5.35  must be made to subsequent apportionments. 
  5.36     (h) Fire state aid that is unpaid because of a failure to 
  6.1   qualify under paragraph (a) must be added to the amount of the 
  6.2   premiums available for allocation in the next subsequent year's 
  6.3   fire state aid. 
  6.4      Sec. 4.  Minnesota Statutes 2000, section 69.021, 
  6.5   subdivision 7a, is amended to read: 
  6.6      Subd. 7a.  [APPORTIONMENT OF POLICE STATE AID.] (a) If the 
  6.7   pension plan associated with the municipality has complied with 
  6.8   the filing requirements of section 356A.06, subdivisions 4 and 
  6.9   5, during the previous year, and subject to the reduction 
  6.10  provided for under subdivision 10, the commissioner shall 
  6.11  apportion the police state aid to each municipality and to the 
  6.12  county in the following manner: 
  6.13     (1) for all municipalities maintaining police departments, 
  6.14  counties, the department of natural resources, and the 
  6.15  department of public safety, the police state aid must be 
  6.16  distributed in proportion to the relationship that the total 
  6.17  number of peace officers, as determined under section 69.011, 
  6.18  subdivision 1, clause (g), and subdivision 2, clause (b), 
  6.19  employed by that employing unit for 12 calendar months and the 
  6.20  proportional or fractional number who were employed less than 12 
  6.21  months bears to the total number of peace officers employed by 
  6.22  all municipalities and counties subject to any reduction under 
  6.23  subdivision 10; 
  6.24     (2) for each municipality which contracts with the county 
  6.25  for police service, a proportionate amount of the state aid 
  6.26  distributed to the county based on the full-time equivalent 
  6.27  number of peace officers providing contract service to that 
  6.28  municipality must be credited against the municipality's 
  6.29  contract obligation; and 
  6.30     (3) for each municipality which contracts with another 
  6.31  municipality for police service, a proportionate amount of the 
  6.32  state aid distributed to the municipality providing contract 
  6.33  service based on the full-time equivalent number of peace 
  6.34  officers providing contract service to that municipality on a 
  6.35  full-time equivalent basis must be credited against the contract 
  6.36  obligation of the municipality receiving contract service. 
  7.1      (b) Police state aid that is unpaid because of a failure to 
  7.2   qualify under paragraph (a) must be added to the amount of the 
  7.3   premiums available for allocation in the subsequent year's 
  7.4   police state aid. 
  7.5      Sec. 5.  Minnesota Statutes 2000, section 354A.12, 
  7.6   subdivision 3a, is amended to read: 
  7.7      Subd. 3a.  [SPECIAL DIRECT STATE AID TO FIRST CLASS CITY 
  7.8   TEACHERS RETIREMENT FUND ASSOCIATIONS.] (a) In fiscal year 1998, 
  7.9   the state shall pay $4,827,000 to the St. Paul teachers 
  7.10  retirement fund association, $17,954,000 to the Minneapolis 
  7.11  teachers retirement fund association, and $486,000 to the Duluth 
  7.12  teachers retirement fund association.  In each subsequent fiscal 
  7.13  year, if the association has complied with the filing 
  7.14  requirements of section 356A.06, subdivisions 4 and 5, during 
  7.15  the previous year, these payments to the first class city 
  7.16  teachers retirement fund associations must be $2,827,000 for St. 
  7.17  Paul, $12,954,000 for Minneapolis, and $486,000 for Duluth. 
  7.18     (b) The direct state aids under this subdivision are 
  7.19  payable October 1 annually.  The commissioner of finance shall 
  7.20  pay the direct state aid.  The amount required under this 
  7.21  subdivision is appropriated annually from the general fund to 
  7.22  the commissioner of finance. 
  7.23     (c) If the aid is not payable in any year, the unpaid aid 
  7.24  is payable to the other qualifying associations.  If there are 
  7.25  no qualifying associations, the aid must be added to the 
  7.26  subsequent year's aid. 
  7.27     Sec. 6.  Minnesota Statutes 2000, section 356A.06, 
  7.28  subdivision 5, is amended to read: 
  7.29     Subd. 5.  [INVESTMENT BUSINESS RECIPIENT DISCLOSURE.] (a) 
  7.30  The chief administrative officer of a covered pension plan, with 
  7.31  respect to investments made by the plan, and the executive 
  7.32  director of the state board of investment, with respect to 
  7.33  investments of plan assets made by the board, shall annually 
  7.34  disclose in writing the recipients of investment business placed 
  7.35  with or investment commissions allocated among commercial banks, 
  7.36  investment bankers, brokerage organizations, or other investment 
  8.1   managers.  The disclosure document must be prepared within 60 
  8.2   days after the close of the fiscal year of the plan and must be 
  8.3   available for public inspection during regular office hours at 
  8.4   the office of the plan.  The disclosure document must also be 
  8.5   filed with the executive director of the legislative commission 
  8.6   on pensions and retirement within 90 days after the close of the 
  8.7   fiscal year of the plan.  For the state board of investment, a 
  8.8   disclosure document included as part of a regular annual report 
  8.9   of the board is considered to have been filed on a timely basis. 
  8.10     (b) The executive director of the legislative commission on 
  8.11  pensions and retirement must compile and maintain a current list 
  8.12  of pension plans filing the disclosure statement and must 
  8.13  certify the list to the commissioners of finance and revenue by 
  8.14  August 1 annually. 
  8.15     Sec. 7.  Minnesota Statutes 2000, section 422A.101, 
  8.16  subdivision 3, is amended to read: 
  8.17     Subd. 3.  [STATE CONTRIBUTIONS.] (a) Subject to the 
  8.18  limitation set forth in paragraph (c), if the pension plan has 
  8.19  complied with the filing requirements of section 356A.06, 
  8.20  subdivisions 4 and 5, during the previous year, the state shall 
  8.21  pay to the Minneapolis employees retirement fund annually an 
  8.22  amount equal to the amount calculated under paragraph (b). 
  8.23     (b) The payment amount is an amount equal to the financial 
  8.24  requirements of the Minneapolis employees retirement fund 
  8.25  reported in the actuarial valuation of the fund prepared by the 
  8.26  commission-retained actuary pursuant to section 356.215 for the 
  8.27  most recent year but based on a target date for full 
  8.28  amortization of the unfunded actuarial accrued liabilities by 
  8.29  June 30, 2020, less the amount of employee contributions 
  8.30  required pursuant to section 422A.10, and the amount of employer 
  8.31  contributions required pursuant to subdivisions 1a, 2, and 2a.  
  8.32  Payments shall be made September 15 annually.  
  8.33     (c) The annual state contribution under this subdivision 
  8.34  may not exceed $9,000,000, plus the cost of the annual 
  8.35  supplemental benefit determined under section 356.865. 
  8.36     (d) If the amount determined under paragraph (b) exceeds 
  9.1   $11,910,000, the excess must be allocated to and paid to the 
  9.2   fund by the employers identified in subdivisions 1a and 2, other 
  9.3   than units of metropolitan government.  Each employer's share of 
  9.4   the excess is proportionate to the employer's share of the 
  9.5   fund's unfunded actuarial accrued liability as disclosed in the 
  9.6   annual actuarial valuation prepared by the actuary retained by 
  9.7   the legislative commission on pensions and retirement compared 
  9.8   to the total unfunded actuarial accrued liability attributed to 
  9.9   all employers identified in subdivisions 1a and 2, other than 
  9.10  units of metropolitan government.  Payments must be made in 
  9.11  equal installments as set forth in paragraph (b). 
  9.12     Sec. 8.  [EFFECTIVE DATE.] 
  9.13     Sections 1 to 7 are effective the day following final 
  9.14  enactment and apply to state aid payable after that date.