1.2relating to volunteer firefighters relief associations; implementing the
1.3recommendations of the state auditor's volunteer firefighter working group;
1.4addressing various service credit and service pension eligibility issues; updating
1.5references to accommodate joint powers fire departments;amending Minnesota
1.6Statutes 2014, sections 424A.01, by adding subdivisions; 424A.015, by adding a
1.7subdivision; 424B.20, subdivision 4; proposing coding for new law in Minnesota
1.8Statutes, chapter 424A; repealing Minnesota Statutes 2014, section 424A.02,
1.9subdivision 13.
1.10BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.11    Section 1. [424A.003] CERTIFICATION OF SERVICE CREDIT.
1.12(a) When a municipal fire department, a joint powers fire department, or an
1.13independent nonprofit firefighting corporation is directly associated with the volunteer
1.14firefighters relief association, the fire chief shall certify annually by March 31 the service
1.15credit for the previous calendar year of each volunteer firefighter rendering active service
1.16with the fire department.
1.17(b) The certification shall be made to an officer of the relief association's board
1.18of trustees and to the municipal clerk or clerk-treasurer of the largest municipality in
1.19population served by the associated fire department.
1.20(c) The fire chief shall notify each volunteer firefighter rendering active service with
1.21the fire department of the amount of service credit rendered by the firefighter for the
1.22previous calendar year. The service credit notification and a description of the process and
1.23deadlines for the firefighter to challenge the fire chief's determination of service credit
1.24must be provided to the firefighter 60 days prior to its certification to the relief association
1.25and municipality. If the service credit amount is challenged, the fire chief shall accept
2.1and consider any additional pertinent information and shall make a final determination of
2.2service credit.
2.3(d) The service credit certification must be expressed as the number of completed
2.4months of the previous year during which an active volunteer firefighter rendered at least
2.5the minimum level of duties as specified and required by the fire department under the
2.6rules, regulations, and policies applicable to the fire department. No more than one year of
2.7service credit may be certified for a calendar year.
2.8(e) If a volunteer firefighter who is a member of the relief association leaves active
2.9firefighting service to render active military service that is required to be governed by the
2.10federal Uniformed Services Employment and Reemployment Rights Act, as amended,
2.11the firefighter must be certified as providing service credit for the period of the military
2.12service, up to the applicable limit of the federal Uniformed Services Employment
2.13and Reemployment Rights Act. If the volunteer firefighter does not return from the
2.14military service in compliance with the federal Uniformed Services Employment and
2.15Reemployment Rights Act, the service credits applicable to that military service credit
2.16period are forfeited and canceled at the end of the calendar year in which the time limit
2.17set by federal law occurs.
2.18EFFECTIVE DATE.This section is effective January 1, 2017.

2.19    Sec. 2. Minnesota Statutes 2014, section 424A.01, is amended by adding a subdivision
2.20to read:
2.21    Subd. 4a. Prohibition on receipt of concurrent service credit. No firefighter may
2.22be credited with service credit in a volunteer firefighters relief association for the same
2.23hours of service for which coverage is already provided in a fund operated pursuant to
2.24chapter 353.
2.25EFFECTIVE DATE.This section is effective January 1, 2017, and applies to
2.26service rendered on or after that date.

2.27    Sec. 3. Minnesota Statutes 2014, section 424A.01, is amended by adding a subdivision
2.28to read:
2.29    Subd. 5a. Volunteer emergency medical personnel. Volunteer emergency
2.30medical personnel are eligible to be members of the applicable volunteer firefighters
2.31relief association and to qualify for service pension or other benefit coverage of the relief
2.32association on the same basis as fire department personnel who perform or supervise fire
2.33suppression or fire prevention duties, if:
3.1(1) the fire department employs or otherwise uses the services of persons solely as
3.2volunteer emergency medical personnel to perform emergency medical response duties or
3.3supervise emergency medical response activities;
3.4(2) the bylaws of the relief association authorize the eligibility; and
3.5(3) the eligibility is approved by:
3.6(i) the municipality, if the fire department is a municipal department;
3.7(ii) the joint powers board, if the fire department is a joint powers entity; or
3.8(iii) the contracting municipality or municipalities, if the fire department is an
3.9independent nonprofit firefighting corporation.
3.10EFFECTIVE DATE.This section is effective January 1, 2017, and applies to
3.11service rendered on or after that date.

3.12    Sec. 4. Minnesota Statutes 2014, section 424A.015, is amended by adding a
3.13subdivision to read:
3.14    Subd. 7. Combined service pensions. (a) A volunteer firefighter with credit for
3.15service as an active firefighter in more than one volunteer firefighters relief association is
3.16entitled to a prorated service pension from each relief association if:
3.17(1) the articles of incorporation or bylaws of the relief associations provide;
3.18(2) the applicable requirements of paragraphs (b) and (c) are met; and
3.19(3) the volunteer firefighter otherwise qualifies.
3.20(b) A volunteer firefighter receiving a prorated service pension under this subdivision
3.21must have a total combined amount of service credit from the two or more relief
3.22associations of ten years or more, unless the bylaws of every affected relief association
3.23specify less than a ten-year service vesting requirement, in which case, the total amount of
3.24required service credit is the longest service vesting requirement of the relief associations.
3.25The member must have one year or more of service credit in each relief association. The
3.26prorated service pension must be based on:
3.27(1) for defined benefit relief associations, the service pension amount in effect for
3.28the relief association on the date on which active volunteer firefighting services covered
3.29by that relief association terminate; and
3.30(2) for defined contribution relief associations, the member's individual account
3.31balance on the date on which active volunteer firefighting services covered by that relief
3.32association terminate.
3.33(c) To receive a prorated service pension under this subdivision, the firefighter
3.34must become a member of the second or succeeding association and must give notice of
3.35membership to the prior association within two years of the date of termination of active
4.1service with the prior association. The second or subsequent relief association secretary
4.2must certify the notice.
4.3EFFECTIVE DATE.This section is effective January 1, 2017.

4.4    Sec. 5. Minnesota Statutes 2014, section 424B.20, subdivision 4, is amended to read:
4.5    Subd. 4. Benefit trust fund establishment. (a) After the settlement of nonbenefit
4.6legal obligations of the special fund of the volunteer firefighters relief association under
4.7subdivision 3, the board of the relief association shall transfer the remaining assets of the
4.8special fund, as securities or in cash, as applicable, to the chief financial official of the
4.9municipality in which the associated fire department was located if the fire department was
4.10a municipal fire department or to the chief financial official of the municipality with the
4.11largest population served by the fire department if the fire department was an independent
4.12nonprofit firefighting corporation. If the fire department was a joint powers entity, the
4.13remaining assets of the special fund shall be transferred to the chief financial official of
4.14the municipality designated as the fiscal agent in the joint powers agreement or, if the
4.15agreement does not designate a municipality as the fiscal agent, the remaining assets of
4.16the special fund shall be transferred to the chief financial official of the municipality with
4.17the largest population served by the joint powers fire department. The board shall also
4.18compile a schedule of the relief association members to whom a service pension is or will
4.19be owed, any beneficiary to whom a benefit is owed, the amount of the service pension or
4.20benefit payable based on the applicable bylaws and state law and the service rendered to
4.21the date of the dissolution, and the date on which the pension or benefit would first be
4.22payable under the bylaws of the relief association and state law.
4.23(b) The municipality in which is located receiving the remaining assets of the special
4.24fund of a volunteer firefighters relief association that is dissolving under this section shall
4.25establish a separate account in the municipal treasury which must function as a trust fund
4.26for members of the volunteer firefighters relief association and their beneficiaries to whom
4.27the volunteer firefighters relief association owes a service pension or other benefit under
4.28the bylaws of the relief association and state law. Upon proper application, on or after the
4.29initial date on which the service pension or benefit is payable, the municipal treasurer shall
4.30pay the pension or benefit due, based on the schedule prepared under paragraph (a) and the
4.31other records of the dissolved relief association. The trust fund under this section must be
4.32invested and managed consistent with chapter 356A and section 424A.095. Upon payment
4.33of the last service pension or benefit due and owing, any remaining assets in the trust
4.34fund cancel to the general fund of the municipality. or, if the fire department was a joint
4.35powers entity, any remaining assets in the trust fund cancel to the general fund of each
5.1municipality that was a contracting party to the joint powers agreement as specified in the
5.2joint powers agreement. If the joint powers agreement does not specify how the remaining
5.3assets are to be distributed among the contracting parties, each of the contracting parties
5.4shall receive a pro rata share of the remaining assets based on the proportion of total
5.5operating contributions each contracting municipality made to the joint powers entity over
5.6the most recent ten calendar years. If the special fund of the volunteer firefighters relief
5.7association had an unfunded actuarial accrued liability upon dissolution, the municipality
5.8is liable for that unfunded actuarial accrued liability. If the fire department was a joint
5.9powers entity, the contracting municipalities are liable for their share of the unfunded
5.10actuarial accrued liability as specified in the joint powers agreement. If the joint powers
5.11agreement does not specify liability for any unfunded actuarial accrued liability, the
5.12contracting municipalities are liable for their pro rata share of the unfunded actuarial
5.13accrued liability based on the proportion of total operating contributions each contracting
5.14municipality made to the joint powers entity over the most recent ten calendar years.
5.15EFFECTIVE DATE.This section is effective January 1, 2017.

5.16    Sec. 6. REPEALER.
5.17Minnesota Statutes 2014, section 424A.02, subdivision 13, is repealed.
5.18EFFECTIVE DATE.This section is effective January 1, 2017.