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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.
History: 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