2005 Minnesota Statutes

     424A.04 Volunteer relief associations; board of trustees.

    Subdivision 1.    Membership.  (a) A relief association 
 that is directly associated with a municipal fire department 
 must be managed by a board of trustees consisting of nine 
 members.  Six trustees must be elected from the membership of 
 the relief association and three trustees must be drawn from the 
 officials of the municipalities served by the fire department to 
 which the relief association is directly associated.  The bylaws 
 of a relief association which provides a monthly benefit service 
 pension may provide that one of the six trustees elected from 
 the relief association membership may be a retired member 
 receiving a monthly pension who is elected by the membership of 
 the relief association.  The three municipal trustees must be 
 one elected municipal official and one elected or appointed 
 municipal official who are designated as municipal 
 representatives by the municipal governing board annually and 
 the chief of the municipal fire department. 

    (b) A relief association that is a subsidiary of an 
 independent nonprofit firefighting corporation must be managed 
 by a board of trustees consisting of nine members.  Six trustees 
 must be elected from the membership of the relief association, 
 two trustees must be drawn from the officials of the 
 municipalities served by the fire department to which the relief 
 association is directly associated, and one trustee shall be the 
 fire chief serving with the independent nonprofit firefighting 
 corporation.  The bylaws of a relief association may provide 
 that one of the six trustees elected from the relief association 
 membership may be a retired member receiving a monthly pension 
 who is elected by the membership of the relief association.  The 
 two municipal trustees must be elected or appointed municipal 
 officials, selected as follows: 

    (1) if only one municipality contracts with the independent 
 nonprofit firefighting corporation, the municipal trustees must 
 be two officials of the contracting municipality who are 
 designated annually by the governing body of the municipality; 
 or 

    (2) if two or more municipalities contract with the 
 independent nonprofit corporation, the municipal trustees must 
 be one official from each of the two largest municipalities in 
 population who are designated annually by the governing bodies 
 of the applicable municipalities. 

    (c) The municipal trustees for a relief association that is 
 directly associated with a fire department operated as or by a 
 joint powers entity must be designated annually by the joint 
 powers board.  The municipal trustees for a relief association 
 that is directly associated with a fire department service area 
 township must be designated by the township board. 

    (d) If a relief association lacks the municipal board 
 members provided for in paragraph (a), (b), or (c) because the 
 fire department is not located in or associated with an 
 organized municipality, joint powers entity, or township, the 
 municipal board members must be appointed from the fire 
 department service area by the board of commissioners of the 
 applicable county.  

    (e) The term of these appointed municipal board members is 
 one year or until the person's successor is qualified, whichever 
 is later. 

    (f) A municipal trustee under paragraph (a), (b), (c), or 
 (d) has all the rights and duties accorded to any other trustee, 
 except the right to be an officer of the relief association 
 board of trustees.  

    (g) A board must have at least three officers, who are a 
 president, a secretary and a treasurer.  These officers must be 
 elected from among the elected trustees by either the full board 
 of trustees or by the membership, as specified in the bylaws.  
 In no event may any trustee hold more than one officer position 
 at any one time.  The terms of the elected trustees and of the 
 officers of the board must be specified in the bylaws of the 
 relief association, but may not exceed three years.  If the term 
 of the elected trustees exceeds one year, the election of the 
 various trustees elected from the membership must be staggered 
 on as equal a basis as is practicable. 

    Subd. 2.    Fiduciary duty.  The board of trustees shall 
 undertake their activities consistent with chapter 356A.  

    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. 

    HIST: 1979 c 201 s 14; 1980 c 607 art 15 s 12; 1981 c 224 s 
 210; 1983 c 219 s 8; 1989 c 319 art 8 s 27; 2000 c 461 art 15 s 
 10; 1Sp2001 c 10 art 16 s 1; 1Sp2005 c 8 art 9 s 14