1.1.................... moves to amend S.F. No. 545; H.F. No. 565, the delete everything
1.2amendment (S0545-2A) as follows:
1.3Page 108, after line 16, insert:

1.4    "Section 1. Minnesota Statutes 2016, section 352.03, subdivision 1, is amended to read:
1.5    Subdivision 1. Membership of board; election; term. (a) The policy-making function
1.6of the system is vested in a board of 11 members known as the board of directors. This
1.7board shall consist of:
1.8(1) three members appointed by the governor, one of whom must be a constitutional
1.9officer or appointed state official the commissioner of management and budget and two of
1.10whom must be public members knowledgeable in pension matters;
1.11(2) four state employees elected by active members and former members eligible for a
1.12deferred annuity from the general state employees retirement plan, excluding employees
1.13and deferred annuitants for whom a board member is designated;
1.14(3) one employee of the Metropolitan Council's transit operations or its successor agency
1.15designated by the executive committee of the labor organization that is the exclusive
1.16bargaining agent representing employees of the transit division;
1.17(4) one employee who is a member of the State Patrol retirement plan elected by active
1.18members and former members eligible for a deferred annuity from that plan;
1.19(5) one employee who is a member of the correctional state employees retirement plan
1.20established under this chapter elected by active members and former members eligible for
1.21a deferred annuity from that plan; and
1.22(6) one retired employee of a plan included in the system, elected by disabled and retired
1.23employees of the plans administered by the system at a time and in a manner determined
1.24by the board.
1.25(b) The terms of the four elected state employees under paragraph (a), clause (2), must
1.26be staggered, with two of the state employee board positions elected each biennium, whose
1.27terms of office begin on the first Monday in May after their election. Elected members and
1.28the appointed member of the Metropolitan Council's transit operations hold office for a term
1.29of four years and until their successors are elected or appointed, and have qualified.
1.30(c) An employee or former employee of the system is not eligible for membership on
1.31the board of directors. A state employee on leave of absence is not eligible for election or
1.32reelection to membership on the board of directors.
2.1(d) The term of any board member who is on leave for more than six months
2.2automatically ends on expiration of the term of office."
2.3Page 112, after line 23, insert:

2.4    "Sec. 2. Minnesota Statutes 2016, section 353.03, subdivision 1, is amended to read:
2.5    Subdivision 1. Management; composition; election. (a) The management of the Public
2.6Employees Retirement Association is vested in an 11-member board of trustees consisting
2.7of ten members and the state auditor commissioner of management and budget. The state
2.8auditor commissioner of management and budget may designate a deputy auditor an assistant
2.9commissioner with expertise in pension matters as the auditor's commissioner's representative
2.10on the board. The governor shall appoint five trustees to four-year terms, one of whom shall
2.11be designated to represent school boards, one to represent cities, one to represent counties,
2.12one who is a retired annuitant, and one who is a public member knowledgeable in pension
2.13matters. The membership of the association, including recipients of retirement annuities
2.14and disability and survivor benefits, shall elect five trustees for terms of four years, one of
2.15whom must be a member of the police and fire fund and one of whom must be a former
2.16member who met the definition of public employee under section 353.01, subdivisions 2
2.17and 2a, for at least five years prior to terminating membership and who is receiving a
2.18retirement annuity or a member who receives a disability benefit. Terms expire on January
2.1931 of the fourth year, and positions are vacant until newly elected members are seated.
2.20Except as provided in this subdivision, trustees elected by the membership of the association
2.21must be public employees and members of the association.
2.22(b) For seven days beginning October 1 of each year preceding a year in which an election
2.23is held, the association shall accept filings of candidates for the board of trustees. A candidate
2.24shall submit at the time of filing a nominating petition signed by 25 or more members of
2.25the association. No name may be withdrawn from nomination by the nominee after October
2.2615. At the request of a candidate for an elected position on the board of trustees, the board
2.27shall provide a statement of up to 300 words prepared by the candidate to all persons eligible
2.28to vote in the election of the candidate. The board may adopt policies and procedures to
2.29govern the form and length of these statements and the timing and deadlines for submitting
2.30materials to be distributed to the eligible voters.
2.31(c) By January 10 of each year in which elections are to be held, the board shall distribute
2.32to the eligible voters the instructions and materials necessary to vote for the candidates
2.33seeking terms on the board of trustees. Eligible voters are the members, retirees, and other
2.34benefit recipients. No voter may vote for more than one candidate for each board position
2.35to be filled. A vote for more than one person for any position is void. No special marking
3.1may be used to indicate incumbents. Votes cast by using paper ballots mailed to the
3.2association must be postmarked no later than January 31. Votes cast by using telephone or
3.3other electronic means authorized under the board's procedures must be entered by the end
3.4of the day on January 31. The design of the voting response media must ensure that each
3.5voter's vote is secret.
3.6(d) A candidate who receives contributions, who makes expenditures in excess of $100,
3.7or who has given implicit or explicit consent for any other person to receive contributions
3.8or make expenditures in excess of $100 for the purpose of bringing about the candidate's
3.9election shall file a report with the campaign finance and public disclosure board disclosing
3.10the source and amount of all contributions to the candidate's campaign. The campaign
3.11finance and public disclosure board shall prescribe forms governing these disclosures.
3.12Expenditures and contributions have the meaning defined in section 10A.01. These terms
3.13do not include any distribution made by the association board on behalf of the candidate.
3.14A candidate shall file a report within 30 days from the day that the results of the election
3.15are announced. The Campaign Finance and Public Disclosure Board shall maintain these
3.16reports and make them available for public inspection in the same manner as the board
3.17maintains and makes available other reports filed with it.
3.18(e) The secretary of state shall review and comment on the procedures defined by the
3.19board of trustees for conducting the elections specified in this subdivision, including board
3.20policies adopted under paragraph (b).
3.21(f) The board of trustees and the executive director shall undertake their activities
3.22consistent with chapter 356A."
3.23Renumber the sections in sequence
3.24Amend the title accordingly